Exhibit 10.2

 

EXECUTION VERSION

 


 



 

GUARANTEE AND COLLATERAL AGREEMENT

 

made by

 

RENT-A-CENTER, INC.

 

and certain of its Subsidiaries

 

in favor of

 

JPMORGAN CHASE BANK, N.A.,
 as Administrative Agent

 

Dated as of March 19, 2014

 


 



 











 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 1.
    	
 
    	
DEFINED TERMS
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.1.
    	
 
    	
Definitions
    	
 
    	
1
    
	
1.2.
    	
 
    	
Other Definitional Provisions
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 2.
    	
 
    	
GUARANTEE
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.1.
    	
 
    	
Guarantee
    	
 
    	
8
    
	
2.2.
    	
 
    	
Rights of Reimbursement, Contribution and Subrogation
    	
 
    	
9
    
	
2.3.
    	
 
    	
Amendments, etc. with respect to the Primary   Obligations
    	
 
    	
10
    
	
2.4.
    	
 
    	
Guarantee Absolute and Unconditional
    	
 
    	
10
    
	
2.5.
    	
 
    	
Reinstatement
    	
 
    	
11
    
	
2.6.
    	
 
    	
Payments
    	
 
    	
11
    
	
2.7.
    	
 
    	
Keepwell
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 3.
    	
 
    	
GRANT OF SECURITY INTEREST; CONTINUING LIABILITY UNDER   COLLATERAL
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 4.
    	
 
    	
REPRESENTATIONS AND WARRANTIES
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.1.
    	
 
    	
Representations in Credit Agreement
    	
 
    	
13
    
	
4.2.
    	
 
    	
Title; No Other Liens
    	
 
    	
13
    
	
4.3.
    	
 
    	
Perfected First Priority Liens
    	
 
    	
14
    
	
4.4.
    	
 
    	
Jurisdiction of Organization; Chief Executive Office
    	
 
    	
14
    
	
4.5.
    	
 
    	
Inventory and Equipment
    	
 
    	
14
    
	
4.6.
    	
 
    	
Farm Products
    	
 
    	
14
    
	
4.7.
    	
 
    	
Investment Property
    	
 
    	
14
    
	
4.8.
    	
 
    	
Receivables
    	
 
    	
15
    
	
4.9.
    	
 
    	
Intellectual Property
    	
 
    	
15
    
	
4.10.
    	
 
    	
Letter of Credit Rights
    	
 
    	
17
    
	
4.11.
    	
 
    	
Commercial Tort Claims
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 5.
    	
 
    	
COVENANTS
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.1.
    	
 
    	
Covenants in Credit Agreement
    	
 
    	
17
    
	
5.2.
    	
 
    	
Delivery and Control of Instruments, Chattel Paper,   Negotiable Documents and Investment Property
    	
 
    	
17
    
	
5.3.
    	
 
    	
Maintenance of Insurance
    	
 
    	
18
    
	
5.4.
    	
 
    	
Payment of Obligations
    	
 
    	
18
    
	
5.5.
    	
 
    	
Maintenance of Perfected Security Interest; Further   Documentation
    	
 
    	
19
    
	
5.6.
    	
 
    	
Changes in Locations, Name, Jurisdiction of   Incorporation, Etc.
    	
 
    	
19
    
	
5.7.
    	
 
    	
Notices
    	
 
    	
19
    
	
5.8.
    	
 
    	
Investment Property
    	
 
    	
19
    
	
5.9.
    	
 
    	
Receivables
    	
 
    	
21
    
	
5.10.
    	
 
    	
Intellectual Property
    	
 
    	
21
    
	
5.11.
    	
 
    	
Commercial Tort Claims
    	
 
    	
23
    


 

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SECTION 6.
    	
 
    	
REMEDIAL PROVISIONS
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.1.
    	
 
    	
Certain Matters Relating to Receivables
    	
 
    	
23
    
	
6.2.
    	
 
    	
Communications with Obligors; Grantors Remain Liable
    	
 
    	
24
    
	
6.3.
    	
 
    	
Pledged Securities
    	
 
    	
24
    
	
6.4.
    	
 
    	
Proceeds to be Turned Over To Administrative Agent
    	
 
    	
25
    
	
6.5.
    	
 
    	
Application of Proceeds
    	
 
    	
25
    
	
6.6.
    	
 
    	
Code and Other Remedies
    	
 
    	
26
    
	
6.7.
    	
 
    	
Registration Rights
    	
 
    	
27
    
	
6.8.
    	
 
    	
Waiver; Deficiency
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 7.
    	
 
    	
THE ADMINISTRATIVE AGENT
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.1.
    	
 
    	
Administrative Agent’s Appointment as   Attorney-in-Fact, Etc.
    	
 
    	
28
    
	
7.2.
    	
 
    	
Duty of Administrative Agent
    	
 
    	
30
    
	
7.3.
    	
 
    	
Execution of Financing Statements
    	
 
    	
30
    
	
7.4.
    	
 
    	
Authority of Administrative Agent
    	
 
    	
30
    
	
7.5.
    	
 
    	
Appointment of Co-Collateral Agents
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 8.
    	
 
    	
MISCELLANEOUS
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.1.
    	
 
    	
Amendments in Writing
    	
 
    	
31
    
	
8.2.
    	
 
    	
Notices
    	
 
    	
31
    
	
8.3.
    	
 
    	
No Waiver by Course of Conduct; Cumulative Remedies
    	
 
    	
31
    
	
8.4.
    	
 
    	
Enforcement Expenses; Indemnification
    	
 
    	
31
    
	
8.5.
    	
 
    	
Successors and Assigns
    	
 
    	
32
    
	
8.6.
    	
 
    	
Set-Off
    	
 
    	
32
    
	
8.7.
    	
 
    	
Counterparts
    	
 
    	
32
    
	
8.8.
    	
 
    	
Severability
    	
 
    	
32
    
	
8.9.
    	
 
    	
Section Headings
    	
 
    	
32
    
	
8.10.
    	
 
    	
Integration
    	
 
    	
32
    
	
8.11.
    	
 
    	
GOVERNING LAW
    	
 
    	
32
    
	
8.12.
    	
 
    	
Submission to Jurisdiction; Waivers
    	
 
    	
33
    
	
8.13.
    	
 
    	
Acknowledgments
    	
 
    	
33
    
	
8.14.
    	
 
    	
Additional Grantors
    	
 
    	
33
    
	
8.15.
    	
 
    	
Releases
    	
 
    	
33
    
	
8.16.
    	
 
    	
WAIVER OF JURY TRIAL
    	
 
    	
34
    


 

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SCHEDULES:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Schedule   1
    	
 
    	
Notice   Addresses of Guarantors
    	
 
    	
 
    
	
Schedule   2
    	
 
    	
Description   of Pledged Investment Property
    	
 
    	
 
    
	
Schedule   3
    	
 
    	
Filings   and Other Actions Required to Perfect Security Interests
    	
 
    	
 
    
	
Schedule   4
    	
 
    	
Exact   Legal Name, Jurisdiction of Organization and Location of Chief Executive Office
    	
 
    	
 
    
	
Schedule   5
    	
 
    	
Copyrights,   Patents, Trademarks, Intellectual Property Licenses, Other Intellectual   Property
    	
 
    	
 
    
	
Schedule   6
    	
 
    	
Letters   of Credit
    	
 
    	
 
    
	
Schedule   7
    	
 
    	
Commercial   Tort Claims
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBITS:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Exhibit A
    	
 
    	
Form of   Acknowledgment and Consent
    	
 
    	
 
    
	
Exhibit B-1
    	
 
    	
Form of   Intellectual Property Security Agreement
    	
 
    	
 
    
	
Exhibit B-2
    	
 
    	
Form of   After-Acquired Intellectual Property Security Agreement
    	
 
    	
 
    
	
Exhibit C
    	
 
    	
Form of   Control Agreement (Uncertificated Securities)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ANNEX:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Annex   1
    	
 
    	
Assumption   Agreement
    	
 
    	
 
    


 

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GUARANTEE AND COLLATERAL AGREEMENT

 

GUARANTEE AND COLLATERAL AGREEMENT, dated as of March 19, 2014, made by each of the signatories hereto (together with any other entity that may become a party hereto as provided herein, the “Grantors”), in favor of JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) for (i) the banks and other financial institutions or entities (the “Lenders”) from time to time parties to the Credit Agreement, dated as of March 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among RENT-A-CENTER, INC., a Delaware corporation (the “Borrower”), the Lenders and the Administrative Agent, and (ii) the other Secured Parties (as hereinafter defined).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject to the conditions set forth therein;

 

WHEREAS, the Borrower is a member of an affiliated group of companies that includes each other Grantor;

 

WHEREAS, the Borrower and the other Grantors are engaged in related businesses, and each Grantor will derive substantial direct and indirect benefit from the making of the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have executed and delivered this Agreement to the Administrative Agent for the ratable benefit of the Secured Parties;

 

NOW, THEREFORE, in consideration of the above premises and to induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each Grantor hereby agrees with the Administrative Agent, for the ratable benefit of the Secured Parties, as follows:

 

SECTION 1.     DEFINED TERMS

 

1.1.                            Definitions.

 

(b)                                 The following terms shall have the following meanings:

 

“After-Acquired Intellectual Property”:  as defined in Section 5.10(k).

 

“Agreement”:  this Guarantee and Collateral Agreement, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Collateral”:  as defined in Section 3.

 











 

“Collateral Account”:  (i) any collateral account established by the Administrative Agent as provided in Section 6.1 or 6.4 or (ii) any cash collateral account established as provided in Section 8 of the Credit Agreement.

 

“Copyright Licenses”:  any written agreement naming any Grantor as licensor or licensee (including, without limitation, those listed in Schedule 5), granting any right under any Copyright, including, without limitation, the grant of rights to reproduce, prepare derivative works, distribute, perform, display, exploit and sell materials derived from any Copyright, other than non-exclusive licenses to use products of third parties accepted in ordinary course in connection with purchases of software and similar items the absence of which would not have a Material Adverse Effect on the Grantors taken as a whole.

 

“Copyrights”:  (i) all domestic and foreign copyrights, whether or not the underlying works of authorship have been published, including but not limited to copyrights in software and databases, all Mask Works (as defined in 17 U.S.C. 901 of the U.S. Copyright Act) and all works of authorship and other intellectual property rights therein, all copyrights of works based on,  incorporated in, derived from or relating to works covered by such copyrights, all right, title and interest to make and exploit all derivative works based on or adopted from works covered by such copyrights, and all copyright registrations and copyright applications, and any renewals or extensions thereof, including, without limitation, each registration and application identified in Schedule 5, (ii) the rights to print, publish, reproduce, perform, display and distribute any of the foregoing, (iii) the right to sue or otherwise recover for any and all past, present and future infringements, misappropriations or violations (“Infringements”) thereof, (iv) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including, without limitation, payments under all Copyright Licenses entered into in connection therewith, payments arising out of any other sale, lease, license or other disposition thereof and damages and payments for past, present or future Infringements thereof), and (v) all other rights of any kind whatsoever accruing thereunder or pertaining thereto.

 

“Deposit Account”:  (i) all “deposit accounts” as defined in Article 9 of the UCC and (ii) all other accounts maintained with any financial institution (other than Securities Accounts or Commodity Accounts),  together, in each case, with all funds held therein and all certificates or instruments representing any of the foregoing.

 

“Excluded Assets”:  (i) motor vehicles, (ii) aircraft, (iii) vessels, (iv) leasehold interests in real property, (v) Intellectual Property registrations outside the United States, (vi) any lease, license, contract, property right or agreement to which any Grantor is a party or any of its rights or interests thereunder if and only for so long as the grant of a security interest hereunder shall constitute or result in a breach, termination or default under any such lease, license, contract, property right or agreement  (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC of any relevant jurisdiction or any other applicable law or principles of equity); provided, however, that such security interest shall attach immediately to any portion of such lease, license, contract, property rights or agreement that does not result in any of the consequences specified above and (vii) those assets as to which the Administrative Agent shall determine, in its sole discretion, that that cost of obtaining or perfecting such a security interest are excessive in relation to the value of the security to be afforded thereby.

 

“Excluded Foreign Subsidiary Voting Stock”:  the voting Capital Stock of any Excluded Foreign Subsidiary.

 

2











 

“General Intangibles”:  all “general intangibles” as such term is defined in Section 9-102(a)(42) of the Uniform Commercial Code in effect in the State of New York on the date hereof and, in any event, including, without limitation, with respect to any Grantor, all rights of such Grantor to receive any tax refunds, all Swap Agreements and all contracts, agreements, instruments and indentures and all licenses, permits, concessions, franchises and authorizations issued by Governmental Authorities in any form, and portions thereof, to which such Grantor is a party or under which such Grantor has any right, title or interest or to which such Grantor or any property of such Grantor is subject, as the same may from time to time be amended, supplemented, replaced or otherwise modified, including, without limitation, (i) all rights of such Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect thereto, (iii) all rights of such Grantor to damages arising thereunder, and (iv) all rights of such Grantor to terminate and to perform, compel performance and to exercise all remedies thereunder.

 

“Guarantor Obligations”:  with respect to any Guarantor (and without duplication of any Primary Obligations), all obligations and liabilities of such Guarantor which may arise under or in connection with this Agreement (including, without limitation, Section 2), in each case whether on account of guarantee obligations, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to any Secured Party that are required to be paid by such Guarantor pursuant to the terms of this Agreement).

 

“Guarantors”:  the collective reference to each Grantor; provided, that each Grantor shall be considered a Guarantor only with respect to the Primary Obligations of any other Loan Party.

 

“Intellectual Property”:  the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets and the Trade Secret Licenses, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Intellectual Property Collateral”:  all Intellectual Property of the Loan Parties, now owned or hereafter acquired, upon which a Lien is purported to be created by this Agreement.

 

“Intellectual Property Security Agreement”: all Intellectual Property Security Agreements to be executed and delivered by the Loan Parties, each substantially in the form of Exhibit B-1 to this Agreement, as the same may be amended, supplemented, replaced or otherwise modified from time to time in accordance with this Agreement.

 

“Insurance” shall mean all insurance policies covering any or all of the Collateral (regardless of whether the Administrative Agent is the loss payee thereof).

 

“Intercompany Note”:  any promissory note evidencing loans made by any Grantor to the Borrower or any of its Subsidiaries.

 

“Investment Property”:  the collective reference to (i) all “investment property” as such term is defined in Section 9-102(a)(49) of the Uniform Commercial Code in effect in the State of New York on the date hereof including, without limitation, all Certificated Securities and Uncertificated Securities, all Security Entitlements, all Securities Accounts, all Commodity

 

3











 

Contracts and all Commodity Accounts (other than any Excluded Foreign Subsidiary Voting Stock excluded from the definition of “Pledged Equity Interests”), (ii) security entitlements, in the case of any United States Treasury book-entry securities, as defined in 31 C.F.R. section 357.2, or, in the case of any United States federal agency book-entry securities, as defined in the corresponding United States federal regulations governing such book-entry securities, and (iii) whether or not constituting “investment property” as so defined, all Pledged Notes, all Pledged Equity Interests, all Pledged Security Entitlements and all Pledged Commodity Contracts.

 

“Issuers”:  the collective reference to each issuer of a Pledged Security.

 

“New York UCC”:  the Uniform Commercial Code as from time to time in effect in the State of New York.

 

“Obligations”:  with respect to any Loan Party, the collective reference to its Primary Obligations and Guarantor Obligations.

 

“Patent License”:  all agreements, whether written or oral, providing for the grant by or to any Grantor of any right to make, use or sell any invention covered in whole or in part by a Patent, including, without limitation, any of the foregoing referred to in Schedule 5.

 

“Patents”:  (i) all domestic and foreign patents, patent applications and patentable inventions, including, without limitation, each issued patent and patent application identified in Schedule 5, all certificates of invention or similar property rights, (ii) all inventions and improvements described and claimed therein, (iii) the right to sue or otherwise recover for any and all past, present and future Infringements thereof, (iv) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including, without limitation, payments under all Patent Licenses entered into in connection therewith, payments arising out of any other sale, lease, license or other disposition thereof and damages and payments for past, present or future Infringement thereof), and (v) all reissues, divisionals, continuations, continuations-in-part, substitutes, renewals, and extensions thereof, all improvements thereon and all other rights of any kind whatsoever accruing thereunder or pertaining thereto.

 

“Permitted Liens” the collective reference to (i) in the case of Collateral other than Pledged Equity Interests, Liens permitted by Section 7.3 of the Credit Agreement and (ii) in the case of Collateral consisting of Pledged Equity Interests, non-consensual Liens permitted by Section 7.3 of the Credit Agreement to the extent arising by operation of law and Liens permitted by Section 7.3(h) of the Credit Agreement.

 

“Pledged Alternative Equity Interests” shall mean all interests of any Grantor in participation or other interests in any equity or profits of any business entity and the certificates, if any, representing such interests and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such interests and any other warrant, right or option to acquire any of the foregoing; provided, however, that Pledged Alternative Equity Interests shall not include any Pledged Stock, Pledged Partnership Interests, Pledged LLC Interests and Pledged Trust Interests.

 

“Pledged Commodity Contracts”:  all commodity contracts listed on Schedule 2 (as such Schedule may be amended from time to time) and all other commodity contracts to which any Grantor is party from time to time.

 

4











 

“Pledged Debt Securities”:  all debt securities now owned or hereafter acquired by any Grantor, including, without limitation, the debt securities listed on Schedule 2, (as such Schedule may be amended from time to time) together with any other certificates, options, rights or security entitlements of any nature whatsoever in respect of the debt securities of any Person that may be issued or granted to, or held by, any Grantor while this Agreement is in effect.

 

“Pledged Equity Interests” shall mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests, Pledged Trust Interests and Pledged Alternative Equity Interests.

 

“Pledged LLC Interests” shall mean all interests of any Grantor now owned or hereafter acquired in any limited liability company including, without limitation, all limited liability company interests listed on Schedule 2 hereto under the heading “Pledged LLC Interests” (as such schedule may be amended from time to time) and the certificates, if any, representing such limited liability company interests and any interest of such Grantor on the books and records of such limited liability company and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such limited liability company interests and any other warrant, right or option to acquire any of the foregoing.

 

“Pledged Notes”:  all promissory notes now owned or hereafter acquired by any Grantor (other than promissory notes issued in connection with extensions of trade credit by any Grantor in the ordinary course of business) including, without limitation, those listed on Schedule 2 (as such Schedule may be amended from time to time) and all Intercompany Notes at any time issued to any Grantor.

 

“Pledged Partnership Interests” shall mean all interests of any Grantor now owned or hereafter acquired in any general partnership, limited partnership, limited liability partnership or other partnership including, without limitation, all partnership interests listed on Schedule 2 hereto under the heading “Pledged Partnership Interests” (as such schedule may be amended from time to time) and the certificates, if any, representing such partnership interests and any interest of such Grantor on the books and records of such partnership and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such partnership interests and any other warrant, right or option to acquire any of the foregoing.

 

“Pledged Securities”:  the collective reference to the Pledged Debt Securities, the Pledged Notes and the Pledged Equity Interests.

 

“Pledged Security Entitlements”:  all security entitlements with respect to the financial assets listed on Schedule 2 (as such Schedule may be amended from time to time) and all other security entitlements of any Grantor.

 

“Pledged Stock” shall mean all shares of capital stock now owned or hereafter acquired by such Grantor, including, without limitation, all shares of capital stock described on Schedule 2 hereto under the heading “Pledged Stock” (as such schedule may be amended from time to time), and the certificates, if any, representing such shares and any interest of such Grantor in the entries on the books of the issuer of such shares and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares and any other warrant, right or option to acquire any of the foregoing; provided, however, that in no event shall (i) more than 65% of the total outstanding Excluded Foreign Subsidiary Voting Stock

 

5











 

be required to be pledged hereunder and (ii) the capital stock of the Insurance Subsidiary be required to be pledged hereunder.

 

“Pledged Trust Interests” shall mean all interests of any Grantor now owned or hereafter acquired in a Delaware business trust or other trust including, without limitation, all trust interests listed on Schedule 2 hereto under the heading “Pledged Trust Interests” (as such schedule may be amended from time to time) and the certificates, if any, representing such trust interests and any interest of such Grantor on the books and records of such trust or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such trust interests and any other warrant, right or option to acquire any of the foregoing; provided, however, that in no event shall the interests of any Grantor in Legacy Trust be required to be pledged hereunder.

 

“Primary Obligations”:  with respect to any Loan Party (and without duplication of any Guarantor Obligations), the unpaid principal of and interest on (including interest accruing after the maturity of the Loans and Reimbursement Obligations and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to such Loan Party, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans and all other obligations and liabilities of such Loan Party to the Administrative Agent or to any Secured Party, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Credit Agreement, any other Loan Document (other than this Agreement), the Letters of Credit, any Specified Swap Agreement or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including all fees, charges and disbursements of counsel to the Administrative Agent or to any Lender that are required to be paid by such Loan Party pursuant hereto) or otherwise; provided, that (i) Primary Obligations of the Borrower or any other Loan Party under any Specified Swap Agreement (A) shall be secured and guaranteed pursuant to the Security Documents only to the extent that, and for so long as, the other Primary Obligations are so secured and guaranteed and (B) shall not include any such obligations entered into after the counterparty to such Specified Swap Agreement ceases to be a Lender or an Affiliate of a Lender or after assignment by such counterparty to another Person that is not a Lender or an Affiliate of a Lender, (ii) any release of Collateral or Guarantors effected in the manner permitted by the Credit Agreement or this Agreement shall not require the consent of holders of obligations under Specified Swap Agreements and (iii) the amount of secured Primary Obligations under any Specified Swap Agreements shall not exceed the net amount, including any net termination payments, that would be required to be paid to the counterparty to such Specified Swap Agreement on the date of termination of such Specified Swap Agreement.

 

“Proceeds”:  all “proceeds” as such term is defined in Section 9-102(a)(64) of the New York UCC on the date hereof and, in any event, shall include, without limitation, all dividends or other income from the Pledged Securities, collections thereon or distributions or payments with respect thereto.

 

“Qualified Keepwell Provider”: in respect of any Swap Obligation, each Loan Party that, at the time the relevant guarantee (or grant of the relevant security interest, as applicable) becomes effective with respect to such Swap Obligation, has total assets exceeding $10,000,000 or otherwise constitutes an “eligible contract participant” under the Commodity Exchange Act or

 

6












 

any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” with respect to such Swap Obligation at such time by entering into a keepwell or guarantee pursuant to Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Receivable”:  all Accounts and any other any right to payment for goods or other property sold, leased, licensed or otherwise disposed of or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper or classified as a Payment Intangible and whether or not it has been earned by performance.  References herein to Receivables shall include any Supporting Obligation or collateral securing such Receivable.

 

“Securities Act”:  the Securities Act of 1933, as amended.

 

“Trademark License”:  any agreement, whether written or oral, providing for the grant by or to any Grantor of any right to use any Trademark, including, without limitation, any of the foregoing referred to in Schedule 5.

 

“Trademarks”:  (i) all domestic and foreign trademarks, service marks, trade names, corporate names, company names, business names, trade dress, trade styles, logos, or other indicia of origin or source identification, Internet domain names, trademark and service mark registrations, and applications for trademark or service mark registrations and any renewals thereof, including, without limitation, each registration and application identified in Schedule 5, (ii) the right to sue or otherwise recover for any and all past, present and future Infringements thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including, without limitation, payments under all Trademark Licenses entered into in connection therewith, and damages and payments for past, present or future Infringements thereof), and (iv) all other rights of any kind whatsoever accruing thereunder or pertaining thereto, together in each case with the goodwill of the business connected with the use of, and symbolized by, each of the above.

 

“Trade Secret License”:  any agreement, whether written or oral, providing for the grant by or to any Grantor of any right to use any Trade Secret.

 

“Trade Secrets”:  (i) all trade secrets and all confidential and proprietary information, including know-how, manufacturing and production processes and techniques, inventions, research and development information, technical data, financial, marketing and business data, pricing and cost information, business and marketing plans, and customer and supplier lists and information, (ii) the right to sue or otherwise recover for any and all past, present and future Infringements thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including, without limitation, payments arising out of the sale, lease, license, assignment or other disposition thereof, and damages and payments for past, present or future Infringements thereof), and (iv) all other rights of any kind whatsoever of any Grantor accruing thereunder or pertaining thereto.

 

1.2.                            Other Definitional Provisions.  (a)             The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and Schedule references are to this Agreement unless otherwise specified.

 

(b)                                 The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

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(c)                                  Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof.

 

(d)                                 The expressions “payment in full,” “paid in full” and any other similar terms or phrases when used herein with respect to the Primary Obligations or the Guarantor Obligations shall mean the unconditional, final and irrevocable payment in full, in immediately available funds, of (i) the Loans, (ii) the payment in full in cash or posting of cash collateral in respect of all other obligations or amounts that are outstanding under the Credit Agreement or any other Loan Document, including the posting of the cash collateral for outstanding Letters of Credit as required by the terms of the Credit Agreement, (iii) the expiration or termination of all Commitments under the Credit Agreement and (iv) payment in full in cash of all amounts due and owing (or posting of collateral reasonably acceptable to the secured party under such Swap Agreement in respect of all such obligations) under, or the novation or termination of, each Swap Agreement giving rise to any Obligations.

 

SECTION 2.                            GUARANTEE

 

2.1.                            Guarantee.

 

(a)                                 Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees to the Administrative Agent, for the ratable benefit of the Secured Parties and their respective successors and permitted indorsees, transferees and assigns, the prompt and complete payment and performance by the Loan Parties when due (whether at the stated maturity, by acceleration or otherwise) of the Primary Obligations (other than, with respect to any Guarantor, any Excluded Swap Obligations of such Guarantor).

 

(b)                                 If and to the extent required in order for the Obligations of any Guarantor to be enforceable under applicable federal, state and other laws relating to the insolvency of debtors, the maximum liability of such Guarantor hereunder shall be limited to the greatest amount which can lawfully be guaranteed by such Guarantor under such laws, after giving effect to any rights of contribution, reimbursement and subrogation arising under Section 2.2.

 

(c)                                  Each Guarantor agrees that Primary Obligations may at any time and from time to time be incurred or permitted in an amount exceeding the maximum liability of such Guarantor under Section 2.1(b) without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of any Secured Party hereunder.

 

(d)                                 The guarantee contained in this Section 2 shall remain in full force and effect until payment in full of the Obligations, notwithstanding that from time to time during the term of the Credit Agreement the Borrower may be free from any Primary Obligations.

 

(e)                                  No payment made by the Borrower, any other Loan Party with Primary Obligations, any of the Guarantors, any other guarantor or any other Person or received or collected by any Secured Party from the Borrower, any other Loan Party with Primary Obligations, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Primary Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Primary Obligations or any payment received or collected from such Guarantor in respect of the Primary Obligations), remain liable for the Primary Obligations up to the maximum liability of such Guarantor hereunder until the Primary Obligations (other than Obligations in 

 

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respect of any Swap Agreement) are paid in full, no Letter of Credit shall be outstanding and the Commitments are terminated or have expired.

 

2.2.                            Rights of Reimbursement, Contribution and Subrogation.  In case any payment is made on account of the Obligations by any Grantor or is received or collected on account of the Obligations from any Grantor or its property:

 

(a)                                 If such payment is made by the Borrower or from its property, then, if and to the extent such payment is made on account of Obligations arising from or relating to a Loan made to the Borrower or a Letter of Credit issued for account of the Borrower, the Borrower shall not be entitled (A) to demand or enforce reimbursement or contribution in respect of such payment from any other Grantor or (B) to be subrogated to any claim, interest, right or remedy of any Secured Party against any other Person, including any other Grantor or its property; and

 

(b)                                 If such payment is made by a Guarantor or from its property, such Guarantor shall be entitled, subject to and upon payment in full of the Obligations, (A) to demand and enforce reimbursement for the full amount of such payment from the Borrower and (B) to demand and enforce contribution in respect of such payment from each other Guarantor which has not paid its fair share of such payment, as necessary to ensure that (after giving effect to any enforcement of reimbursement rights provided hereby) each Guarantor pays its fair share of the unreimbursed portion of such payment. For this purpose, the fair share of each Guarantor as to any unreimbursed payment shall be determined based on an equitable apportionment of such unreimbursed payment among all Guarantors based on the relative value of their assets and any other equitable considerations deemed appropriate by a court of competent jurisdiction.

 

(c)                                  If and whenever (after payment in full of the Obligations) any right of reimbursement or contribution becomes enforceable by any Grantor against any other Grantor under Sections 2.2(a) and 2.2(b), such Grantor shall be entitled, subject to and upon payment in full of the Obligations, to be subrogated (equally and ratably with all other Grantors entitled to reimbursement or contribution from any other Grantor as set forth in this Section 2.2) to any security interest that may then be held by the Administrative Agent upon any Collateral granted to it in this Agreement.  Such right of subrogation shall be enforceable solely against the Grantors, and not against the Secured Parties, and neither the Administrative Agent nor any other Secured Party shall have any duty whatsoever to warrant, ensure or protect any such right of subrogation or to obtain, perfect, maintain, hold, enforce or retain any Collateral for any purpose related to any such right of subrogation.  If subrogation is demanded by any Grantor, then (after payment in full of the Obligations) the Administrative Agent shall deliver to the Grantors making such demand, or to a representative of such Grantors or of the Grantors generally, an instrument satisfactory to the Administrative Agent transferring, on a quitclaim basis without any recourse, representation, warranty or obligation whatsoever, whatever security interest the Administrative Agent then may hold in whatever Collateral may then exist that was not previously released or disposed of by the Administrative Agent.

 

(d)                                 All rights and claims arising under this Section 2.2 or based upon or relating to any other right of reimbursement, indemnification, contribution or subrogation that may at any time arise or exist in favor of any Grantor as to any payment on account of the Obligations made by it or received or collected from its property shall be fully subordinated in all respects to the prior payment in full of all of the Obligations.  Until payment in full of the Obligations, no Grantor shall demand or receive any collateral security, payment or distribution whatsoever (whether in cash, property or securities or otherwise) on account of any such right or claim.  If any such payment or distribution is made or becomes available to any Grantor in any bankruptcy case or receivership, insolvency or liquidation proceeding, such payment or distribution shall be delivered by the person making such payment or distribution 

 

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directly to the Administrative Agent, for application to the payment of the Obligations.  If any such payment or distribution is received by any Grantor, it shall be held by such Grantor in trust, as trustee of an express trust for the benefit of the Secured Parties, and shall forthwith be transferred and delivered by such Grantor to the Administrative Agent, in the exact form received and, if necessary, duly endorsed.

 

(e)                                  The obligations of the Grantors under the Loan Documents, including their liability for the Obligations and the enforceability of the security interests granted thereby, are not contingent upon the validity, legality, enforceability, collectibility or sufficiency of any right of reimbursement, contribution or subrogation arising under this Section 2.2.  The invalidity, insufficiency, unenforceability or uncollectibility of any such right shall not in any respect diminish, affect or impair any such obligation or any other claim, interest, right or remedy at any time held by any Secured Party against any Grantor or its property.  The Secured Parties make no representations or warranties in respect of any such right and shall have no duty to assure, protect, enforce or ensure any such right or otherwise relating to any such right.

 

(f)                                   Each Grantor reserves any and all other rights of reimbursement, contribution or subrogation at any time available to it as against any other Grantor, but (i) the exercise and enforcement of such rights shall be subject to Section 2.2(d) and (ii) neither the Administrative Agent nor any other Secured Party shall ever have any duty or liability whatsoever in respect of any such right, except as provided in Section 2.2(c).

 

2.3.                            Amendments, etc. with respect to the Primary Obligations.  Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Primary Obligations made by any Secured Party may be rescinded by such Secured Party and any of the Primary Obligations continued, and the Primary Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, increased, extended, amended, modified, accelerated, compromised, waived, surrendered or released by any Secured Party, and the Credit Agreement and the other Loan Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required Lenders under the Credit Agreement or all Lenders, as the case may be) may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by any Secured Party for the payment of the Primary Obligations may be sold, exchanged, waived, surrendered or released.  No Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Primary Obligations or for the guarantee contained in this Section 2 or any property subject thereto.

 

2.4.                            Guarantee Absolute and Unconditional.  Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Primary Obligations and notice of or proof of reliance by any Secured Party upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Primary Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Loan Parties, on the one hand, and the Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2.  Each Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrower, any other Loan Party with Primary Obligations or any of the Guarantors with respect to the Primary Obligations.  Each Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment and performance without regard to (a) the validity or enforceability of the Credit Agreement or any other 

 

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Loan Document, any of the Primary Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by any Secured Party, (b) any defense, set-off or counterclaim (other than a defense of payment or performance hereunder) which may at any time be available to or be asserted by the Borrower or any other Person against any Secured Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower, any other Loan Party with Primary Obligations or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Loan Parties for the Primary Obligations, or of such Guarantor for its Guarantor Obligations, in bankruptcy or in any other instance.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, any Secured Party may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Borrower, any other Loan Party with Primary Obligations, any other Guarantor or any other Person or against any collateral security or guarantee for the Primary Obligations or any right of offset with respect thereto, and any failure by any Secured Party to make any such demand, to pursue such other rights or remedies or to collect any payments from the Borrower, any other Loan Party with Primary Obligations, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower, any other Loan Party with Primary Obligations, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of any Secured Party against any Guarantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

2.5.                            Reinstatement.  The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Primary Obligations is rescinded or must otherwise be restored or returned by any Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower, any other Loan Party with Primary Obligations or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower, any other Loan Party with Primary Obligations or any Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made.

 

2.6.                            Payments.  Each Guarantor hereby guarantees that payments hereunder will be paid to the Administrative Agent without set-off or counterclaim in Dollars in immediately available funds at the Funding Office.

 

2.7.                            Keepwell.  Each Qualified Keepwell Provider hereby jointly and severally absolutely, unconditionally, and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Loan Party to honor all of its obligations under this guarantee in respect of any Swap Obligation (provided, however, that each Qualified Keepwell Provider shall only be liable under this Section 2.7 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 2.7, or otherwise under this guarantee, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations of each Qualified Keepwell Provider under this Section 2.7 shall remain in full force and effect until payment in full or termination of the Obligations.   Each Qualified Keepwell Provider intends that this Section 2.7 constitute, and this Section 2.7 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Party for all purposes of section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

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SECTION 3.                            GRANT OF SECURITY INTEREST; 
 CONTINUING LIABILITY UNDER COLLATERAL

 

(a)                                 Each Grantor hereby assigns and transfers to the Administrative Agent, and hereby grants to the Administrative Agent, for the ratable benefit of the Secured Parties, a security interest in, all of the personal property of such Grantor, including, without limitation, the following property, in each case, wherever located and now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

 

(i)                                     all Accounts;

 

(ii)                                  all Chattel Paper;

 

(iii)                               all Deposit Accounts;

 

(iv)                              all Documents;

 

(v)                                 all Equipment;

 

(vi)                              all Fixtures;

 

(vii)                           all General Intangibles;

 

(viii)                        all Instruments;

 

(ix)                              Insurance

 

(x)                                 all Intellectual Property;

 

(xi)                              all Inventory;

 

(xii)                           all Investment Property;

 

(xiii)                        all Letter of Credit Rights;

 

(xiv)                       all Goods not otherwise described above;

 

(xv)                          any Collateral Account;

 

(xvi)                       all books, records, ledger cards, files, correspondence, customer lists, blueprints, technical specifications, manuals, computer software, computer printouts, tapes, disks and other electronic storage media and related data processing software and similar items that at any time evidence or contain information relating to any of the Collateral or are otherwise necessary or helpful in the collection thereof or realization thereupon;

 

(xvii)                    the Commercial Tort Claims set forth on Schedule 7; and

 

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(xviii)                 to the extent not otherwise included, all other property of the Grantor and all Proceeds, Supporting Obligations, and products accessions, rents and profits of any and all of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing.

 

Notwithstanding anything to the contrary in this Agreement, none of the Excluded Assets shall constitute Collateral.

 

(b)                                 Notwithstanding anything herein to the contrary, (i) each Grantor shall remain liable for all obligations under the Collateral and nothing contained herein is intended or shall be a delegation of duties to the Administrative Agent or any Secured Party, (ii) each Grantor shall remain liable under and each of the agreements included in the Collateral, including, without limitation, any Receivables and any agreements relating to Pledged Partnership Interests or Pledged LLC Interests, to perform all of the obligations undertaken by it thereunder all in accordance with and pursuant to the terms and provisions thereof and neither the Administrative Agent nor any Secured Party shall have any obligation or liability under any of such agreements by reason of or arising out of this Agreement or any other document related thereto nor shall the Administrative Agent nor any Secured Party have any obligation to make any inquiry as to the nature or sufficiency of any payment received by it or have any obligation to take any action to collect or enforce any rights under any agreement included in the Collateral, including, without limitation, any agreements relating to any Receivables, Pledged Partnership Interests or Pledged LLC Interests and (iii) the exercise by the Administrative Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral.

 

SECTION 4.                            REPRESENTATIONS AND WARRANTIES

 

To induce the Agents and the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each Grantor hereby represents and warrants to the Secured Parties that:

 

4.1.                            Representations in Credit Agreement.  In the case of each Guarantor, the representations and warranties set forth in Section 4 of the Credit Agreement as they relate to such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is hereby incorporated herein by reference, are true and correct in all material respects, except for representations and warranties expressly stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date, and the Secured Parties shall be entitled to rely on each of them as if they were fully set forth herein, provided that each reference in each such representation and warranty to the Borrower’s knowledge shall, for the purposes of this Section 4.l, be deemed to be a reference to such Guarantor’s knowledge.

 

4.2.                            Title; No Other Liens.  Such Grantor owns each item of the Collateral free and clear of any and all Liens or claims, including, without limitation, liens arising as a result of such Grantor becoming bound (as a result of merger or otherwise) as Grantor under a security agreement entered into by another Person, except for Permitted Liens.  No financing statement, mortgage or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except such as have been filed in favor of the Administrative Agent, for the ratable benefit of the Secured Parties pursuant to this Agreement or as are permitted by the Credit Agreement and financing statements for which duly authorized termination statements have been delivered to the Administrative Agent on or prior to the Closing Date.

 

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4.3.                            Perfected First Priority Liens.  (a) The security interests granted pursuant to this Agreement (i) upon completion of the filings and other actions specified on Schedule 3 (all of which, in the case of all filings and other documents referred to on such Schedule, have been delivered to the Administrative Agent in duly completed and duly executed form, as applicable, and may be filed by the Administrative Agent at any time) and payment of all filing fees, will constitute valid fully perfected security interests in all of the Collateral in favor of the Administrative Agent, for the ratable benefit of the Secured Parties, as collateral security for such Grantor’s Obligations, enforceable in accordance with the terms hereof and (ii) are prior to all other Liens on the Collateral except for, in the case of Collateral other than Pledged Equity Interests, Permitted Liens.  Without limiting the foregoing,  each Grantor has taken all actions necessary or desirable, including without limitation those specified in Section 5.2 to:  (i) establish the Administrative Agent’s “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over any portion of the Investment Property constituting Certificated Securities and Uncertificated Securities and Securities Accounts and all Securities Entitlements,  (ii) establish the Administrative Agent’s “control” (within the meaning of Section 9-107 of the UCC) over all Letter of Credit Rights, (iii) establish the Administrative Agent’s control (within the meaning of Section 9-105 of the UCC) over all Electronic Chattel Paper and (iv) establish the Administrative Agent’s “control” within the meaning of Section 16 of the Uniform Electronic Transaction Act as in effect in the applicable jurisdiction (the “UETA”) over all “transferable records” (as defined in UETA).

 

4.4.                            Jurisdiction of Organization; Chief Executive Office.  On the date hereof, such Grantor’s jurisdiction of organization, identification number from the jurisdiction of organization (if any), and the location of such Grantor’s chief executive office or sole place of business or principal residence, as the case may be, are specified on Schedule 4.  Such Grantor has furnished to the Administrative Agent a certified charter, certificate of incorporation or other organization document and long-form good standing certificate as of a date that is recent to the date hereof.

 

4.5.                            Inventory and Equipment.(a)                                 None of the Inventory or Equipment is in the possession of an issuer of a negotiable document (as defined in Section 7-104 of the UCC, a “Negotiable Document”) therefor or is otherwise in the possession of any bailee or warehouseman.

 

4.6.                            Farm Products.  None of the Collateral constitutes, or is the Proceeds of, Farm Products.

 

4.7.                            Investment Property.  (a)  Schedule 2 hereto (as such schedule may be amended from time to time) sets forth under the headings “Pledged Stock, “Pledged LLC Interests,” “Pledged Partnership Interests” and “Pledged Trust Interests,” respectively, all of the Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests owned by any Grantor and such Pledged Equity Interests constitute the percentage of issued and outstanding shares of stock, percentage of membership interests, percentage of partnership interests or percentage of beneficial interest of the respective issuers thereof indicated on such Schedule.  Schedule 2 hereto (as such schedule may be amended from time to time) sets forth under the heading “Pledged Debt Securities” or “Pledged Notes” all of the Pledged Debt Securities and Pledged Notes owned by any Grantor and all of such Pledged Debt Securities and Pledged Notes has been duly authorized, authenticated or issued, and delivered and is the legal, valid and binding obligation of the issuers thereof enforceable in accordance with their terms and is not in default and constitutes all of the issued and outstanding inter-company indebtedness evidenced by an instrument or certificated security of the respective issuers thereof owing to such Grantor.  No Grantor has consented to, and no Grantor is otherwise aware of, any Person (other than the Administrative Agent pursuant hereto) having “control” (within the meanings of Sections 8-106, 9-106 and 9-104 of the UCC) over, or any other interest in, any such Securities Account, Commodity Account or Deposit Account or any securities, commodities or other property credited thereto other than the securities intermediary or 

 

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depository bank in respect thereof which may have a lien on any such account being held by it to secure only the payment of fees and expenses owed to it in respect of the maintenance of such account.

 

(b)                                 The shares of Pledged Equity Interests pledged by such Grantor hereunder constitute all of the issued and outstanding shares of all classes of the Capital Stock of each Issuer owned by such Grantor or, in the case of Foreign Subsidiary Voting Stock, if less, 65% of the outstanding Excluded Foreign Subsidiary Voting Stock of each relevant Issuer.

 

(c)                                  All the shares of the Pledged Equity Interests have been duly and validly issued and are fully paid and nonassessable.

 

(d)                                 The terms of any uncertificated Pledged LLC Interests and Pledged Partnership Interests do not provide that they are securities governed by Article 8 of the Uniform Commercial Code in effect in any jurisdiction.

 

(e)                                  The terms of any certificated Pledged LLC Interests and Pledged Partnership Interests do not provide that they are securities governed by Article 8 of the Uniform Commercial Code in effect in any jurisdiction.

 

(f)                                   Such Grantor is the record and beneficial owner of, and has good and marketable title to, the Investment Property and Deposit Accounts pledged by it hereunder, free of any and all Liens or options in favor of, or claims of, any other Person, except Permitted Liens.

 

(g)                                  Each Issuer which is an Affiliate of the Borrower that is not a Grantor hereunder has executed and delivered to the Administrative Agent an Acknowledgment and Consent, in substantially the form of Exhibit A, to the pledge of the Pledged Securities pursuant to this Agreement.

 

4.8.                            Receivables.  (a)  No amount payable to such Grantor under or in connection with any Receivable is evidenced by any Instrument or Tangible Chattel Paper which has not been delivered to the Administrative Agent or constitutes Electronic Chattel Paper that has not been subjected to the control (within the meaning of Section 9-105 of the UCC) of the Administrative Agent.

 

(b)                                 The amounts represented by such Grantor to the Lenders from time to time as owing to such Grantor in respect of the Receivables will at such times be accurate, except for immaterial errors.

 

4.9.                            Intellectual Property.  (a)  Schedule 5 lists all Intellectual Property registered or applied to be registered in the United States (the “Registered IP”) owned by such Grantor in its own name on the date hereof.  Except as set forth in Schedule 5, such Grantor is the exclusive owner of the entire and unencumbered right, title and interest in and to such Registered IP and all Intellectual Property used in such Grantor’s business that is material to such business and proprietary to such Grantor (collectively, the “Company IP”), and such Grantor is otherwise entitled to use all such Company IP, without limitation, subject only to the license terms of the licensing or franchise agreements referred to in paragraph (c) below.

 

(b)                                 On the date hereof, all Registered IP is valid, subsisting, unexpired and enforceable, has not been abandoned and does not Infringe the intellectual property rights of any other Person in any respect that could reasonably be expected to have a Material Adverse Effect.

 

(c)                                  Except as set forth in Schedule 5, on the date hereof (i) none of the Intellectual Property is the subject of any licensing or franchise agreement pursuant to which such Grantor is the 

 

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licensor or franchisor, and (ii) there are no other obligations, orders or judgments which affect the use of any material Intellectual Property.

 

(d)                                 The rights of such Grantor in or to the Intellectual Property do not conflict with or Infringe upon the rights of any third party, and no claim (including any “cease and desist” letter or invitation to take a patent license)  has been asserted that Grantor’s use of such Intellectual Property does or may Infringe upon the rights of any third party, in either case, which conflict or Infringement could reasonably be expected to have a Material Adverse Effect.  There is currently no Infringement or unauthorized use of any item of Intellectual Property that could reasonably be expected to have a Material Adverse Effect.

 

(e)                                  No holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity or enforceability of, or such Grantor’s rights in, any Intellectual Property in any respect that could reasonably be expected to have a Material Adverse Effect.  With respect to any item of Intellectual Property the invalidity or unenforceability of which could reasonably be expected to have a Material Adverse Effect, such Grantor is not aware of any uses of any item of Intellectual Property that could reasonably be expected to lead to such item becoming invalid or unenforceable, including, without limitation, unauthorized uses by third parties and uses which were not supported by the goodwill of the business connected with Trademarks and Trademark Licenses.

 

(f)                                   No action or proceeding is pending, or, to the knowledge of such Grantor, threatened, on the date hereof (i) seeking to limit, cancel or question the validity of any material Intellectual Property or such Grantor’s ownership interest therein, (ii) alleging that any services provided by, processes used by, or products manufactured or sold by such Grantor materially Infringe any patent, trademark, copyright, or any other right of any third party, or (iii) alleging that any material Intellectual Property is being licensed, sublicensed or used in violation of any patent, trademark, copyright or any other right of any third party, or (iv) which, if adversely determined, would have a Material Adverse Effect on the value of any Collateral taken as a whole.  To the knowledge of such Grantor, no Person is engaging in any activity that Infringes upon the Intellectual Property or upon the rights of such Grantor therein which could reasonably be expected to have a Material Adverse Effect.  Except as set forth in Schedule 5 hereto, such Grantor has not granted any license, release, covenant not to sue or non-assertion assurance to any person with respect to any material part of the Intellectual Property.  The consummation of the transactions contemplated by this Agreement will not result in the termination or impairment of any of the Intellectual Property.

 

(g)                                  With respect to each material Copyright License, Trademark License and Patent License:  (i) such license is valid and binding and in full force and effect; (ii) such license will not cease to be valid and binding and in full force and effect on terms identical to those currently in effect as a result of the rights and interests granted herein, nor will the grant of such rights and interests constitute a breach or default under such license or otherwise give the licensor or licensee a right to terminate such license; (iii) such Grantor has not received any notice of termination or cancellation under such license; (iv) such Grantor has not received any notice of a breach or default under such license, which breach or default has not been cured; (v) such Grantor has not granted to any other third party any rights, adverse or otherwise, under such license; and (vi) such Grantor is not in breach or default in any material respect, and no event has occurred that, with notice and/or lapse of time, would constitute such a breach or default or permit termination, modification or acceleration under such license.

 

(h)                                 Except as set forth in Schedule 5, such Grantor has performed all acts and has paid all required fees and taxes to maintain each and every item of material Intellectual Property in full force and effect and to protect and maintain its interest therein as deemed advisable in the exercise of its

 

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reasonable business judgment.  Such Grantor has used proper statutory notice in connection with its use of each material Patent, Trademark and Copyright required by applicable Requirements of Law.

 

(i)                                     To the knowledge of such Grantor, none of the material Trade Secrets of such Grantor has been used, divulged, disclosed or appropriated to the detriment of such Grantor for the benefit of any other Person; no employee, independent contractor or agent of such Grantor has misappropriated any trade secrets of any other Person in the course of the performance of his or her duties as an employee, independent contractor or agent of such Grantor; and no employee, independent contractor or agent of such Grantor is in default or breach of any term of any employment agreement, non-disclosure agreement, assignment of inventions agreement or similar agreement or contract relating in any way to the protection, ownership, development, use or transfer of such Grantor’s material Intellectual Property.

 

(j)                                    As deemed advisable in the exercise of its reasonable business judgment, such Grantor has made all filings and recordations necessary to adequately protect its interest in its Intellectual Property including, without limitation, recordation of its interests in the Patents and Trademarks with the United States Patent and Trademark Office and in corresponding national, multinational and international patent offices, and recordation of any of its interests in the Copyrights with the United States Copyright Office and in corresponding national, multinational and international copyright offices.

 

(k)                                 Such Grantor is not subject to any settlement, consent, judgment, injunction, order, decree, covenant not to sue, non-assertion assurance or release that would impair the validity or enforceability of, or such Grantor’s rights in, any material Intellectual Property.

 

4.10.                     Letter of Credit Rights.  No Grantor is a beneficiary or assignee under any letter of credit other than the letters of credit described on Schedule 6 (as such schedule may be amended from time to time) hereto.  Each Grantor has caused all issuers and nominated persons under letters of credit in which the Grantor is the beneficiary or assignee to consent to the assignment provisions of such letter of credit to the Administrative Agent and has agreed that upon the occurrence of an Event of Default it will cause all payments thereunder to be made to the Collateral Account.

 

4.11.                     Commercial Tort Claims.  No Grantor has any commercial tort claims other than (i) as described in Schedule 7 or (ii) as to which the actions described in Section 5.11 have been taken.

 

SECTION 5.                            COVENANTS

 

Each Grantor covenants and agrees with the Secured Parties that, from and after the date of this Agreement until the Obligations (other than Obligations in respect of any Swap Agreement) shall have been paid in full, no Letter of Credit shall be outstanding and the Commitments shall have terminated or expired:

 

5.1.                            Covenants in Credit Agreement.  Each Guarantor shall take, or shall refrain from taking, as the case may be, each action that is necessary to be taken or not taken, as the case may be, so that no Default or Event of Default is caused by the failure to take such action or to refrain from taking such action by such Guarantor or any of its Subsidiaries.

 

5.2.                            Delivery and Control of Instruments, Chattel Paper, Negotiable Documents and Investment Property.  (a)  If any of the Collateral with a value in excess of $25,000 individually is or shall become evidenced or represented by any Instrument, Certificated Security, Negotiable Document or Tangible Chattel Paper, such Instrument (other than checks received in the ordinary course of business), Certificated Security, Negotiable Documents or Tangible Chattel Paper shall be immediately delivered to 

 

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the Administrative Agent, duly endorsed in a manner satisfactory to the Administrative Agent, to be held as Collateral pursuant to this Agreement.

 

(b)                                 If any of the Collateral with a value in excess of $25,000 individually or $200,000 in the aggregate is or shall become “Electronic Chattel Paper” such Grantor shall ensure that (i) a single authoritative copy exists which is unique, identifiable, unalterable (except as provided in clauses (iii), (iv) and (v) of this paragraph), (ii) such authoritative copy identifies the Administrative Agent as the assignee and is communicated to and maintained by the Administrative Agent or its designee, (iii) copies or revisions that add or change the assignee of the authoritative copy can only be made with the participation of the Administrative Agent, (iv) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy and not the authoritative copy and (v) any revision of the authoritative copy is readily identifiable as an authorized or unauthorized revision.

 

(c)                                  If any of the Collateral is or shall become evidenced or represented by an Uncertificated Security, such Grantor shall cause the Issuer thereof either (i) to register the Administrative Agent as the registered owner of such Uncertificated Security, upon original issue or registration of transfer or (ii) to agree in writing with such Grantor and the Administrative Agent that such Issuer will comply with instructions with respect to such Uncertificated Security originated by the Administrative Agent without further consent of such Grantor, such agreement to be in substantially the form of Exhibit C.

 

(d)                                 In addition to and not in lieu of the foregoing, if any Issuer of any Investment Property is organized under the law of, or has its chief executive office in, a jurisdiction outside of the United States, each Grantor shall take such additional actions, including, without limitation, causing the issuer to register the pledge on its books and records, as may be necessary or as may be reasonably requested by the Administrative Agent, under the laws of such jurisdiction to insure the validity, perfection and priority of the security interest of the Administrative Agent.

 

5.3.                            Maintenance of Insurance.  (a)  Such Grantor will maintain, with financially sound and reputable insurance companies, insurance on all its property (including, without limitation, all Inventory, Equipment and motor vehicles) in at least such amounts and against at least such risks as are usually insured against in the same general area by companies engaged in the same or a similar business, and furnish to the Administrative Agent with copies for each Secured Party, upon written request, full information as to the insurance carried.  All insurance shall (i) provide that no cancellation, material reduction in amount or material change in coverage thereof shall be effective until at least 30 days after receipt by the Administrative Agent of written notice thereof and (ii) be reasonably satisfactory in all other respects to the Administrative Agent. The Administrative Agent shall be named as additional insured on all such liability insurance policies of such Grantor and the Administrative Agent shall be named as loss payee on all property and casualty insurance policies of such Grantor.

 

(b)                                 The Borrower shall deliver annually to the Administrative Agent and the Lenders a certificate of a reputable insurance broker with respect to such insurance as promptly as practicable upon receipt thereof from such insurance broker and such supplemental reports with respect thereto as the Administrative Agent may from time to time reasonably request.

 

5.4.                            Payment of Obligations.  Such Grantor will pay and discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all material taxes, assessments and governmental charges or levies imposed upon the Collateral or in respect of income or profits therefrom, as well as all material claims of any kind (including, without limitation, claims for labor, materials and supplies) against or with respect to the Collateral, except that no such charge need be paid if the amount or validity thereof is currently being contested in good faith by appropriate 

 

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proceedings, reserves in conformity with GAAP with respect thereto have been provided on the books of such Grantor and such proceedings could not reasonably be expected to result in the sale, forfeiture or loss of any material portion of the Collateral or any material interest therein.

 

5.5.                            Maintenance of Perfected Security Interest; Further Documentation.  (a)  Such Grantor shall maintain the security interest created by this Agreement as a perfected security interest having at least the priority described in Section 4.3 and shall defend such security interest against the claims and demands of all Persons whomsoever.

 

(b)                                 Such Grantor will furnish to the Administrative Agent from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the assets and property of such Grantor as the Administrative Agent may reasonably request, all in reasonable detail.

 

(c)                                  At any time and from time to time, upon the written request of the Administrative Agent, and at the sole expense of such Grantor, such Grantor will promptly and duly authorize, execute and deliver, and have recorded, such further instruments and documents and take such further actions as the Administrative Agent may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, including, without limitation, (i) the filing of any financing or continuation statements under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security interests created hereby and (ii) in the case of Investment Property, Letter of Credit Rights and any other relevant Collateral, taking any actions necessary to enable the Administrative Agent to obtain “control” (within the meaning of the applicable UCC) with respect thereto.

 

5.6.                            Changes in Locations, Name, Jurisdiction of Incorporation, Etc.  Such Grantor will not, except upon 15 days’ prior written notice to the Administrative Agent and delivery to the Administrative Agent of duly authorized and, where required, executed copies of all additional financing statements and other documents reasonably requested by the Administrative Agent to maintain the validity, perfection and priority of the security interests provided for herein:

 

(a)                                 without limiting the prohibitions on mergers involving the Grantors contained in the Credit Agreement, change its legal name, jurisdiction of organization or the location of its chief executive office or sole place of business from that referred to in Section 4.4; or

 

(b)                                 change its legal name.

 

5.7.                            Notices.  Such Grantor will advise the Administrative Agent promptly, in reasonable detail, of:

 

(a)                                 any Lien (other than any Permitted Lien) on any material portion of the Collateral which would adversely affect the ability of the Administrative Agent to exercise any of its remedies hereunder; and

 

(b)                                 the occurrence of any other event which could reasonably be expected to have a material adverse effect on the aggregate value of the Collateral or on the security interests created hereby taken as a whole.

 

5.8.                            Investment Property.  (a)  If such Grantor shall become entitled to receive or shall receive any stock or other ownership certificate (including, without limitation, any certificate representing a stock dividend or a distribution in connection with any reclassification, increase or 

 

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reduction of capital or any certificate issued in connection with any reorganization), option or rights in respect of the Capital Stock or other Pledged Equity Interest of any Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any shares of or other ownership interests in the Pledged Securities, or otherwise in respect thereof, such Grantor shall accept the same as the agent of the Secured Parties, hold the same in trust for the Secured Parties and deliver the same forthwith to the Administrative Agent in the exact form received, duly endorsed by such Grantor to the Administrative Agent, if required, together with an undated stock power covering such certificate duly executed in blank by such Grantor and to be held by the Administrative Agent, subject to the terms hereof, as additional collateral security for the Obligations.  Any sums paid upon or in respect of the Pledged Securities upon the liquidation or dissolution of any Issuer shall be paid over to the Administrative Agent to be held by it hereunder as additional collateral security for the Obligations, and in case any distribution of capital shall be made on or in respect of the Pledged Securities or any property shall be distributed upon or with respect to the Pledged Securities pursuant to the recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the property so distributed shall, unless otherwise subject to a perfected security interest in favor of the Administrative Agent, be delivered to the Administrative Agent to be held by it hereunder as additional collateral security for the Obligations.  If any sums of money or property so paid or distributed in respect of the Pledged Securities shall be received by such Grantor, such Grantor shall, until such money or property is paid or delivered to the Administrative Agent, hold such money or property in trust for the Secured Parties, segregated from other funds of such Grantor, as additional collateral security for the Obligations.

 

(b)                                 Without the prior written consent of the Administrative Agent, such Grantor will not (i) vote to enable, or take any other action to permit, any Issuer to issue any stock, partnership interests, limited liability company interests or other equity securities of any nature or to issue any other securities convertible into or granting the right to purchase or exchange for any stock, partnership interests, limited liability company interests or other equity securities of any nature of any Issuer, (ii) sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, any of the Investment Property or Proceeds thereof or any interest therein (except, in each case, pursuant to a transaction expressly permitted by the Credit Agreement), (iii) create, incur or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, any of the Investment Property or Proceeds thereof, or any interest therein, except for the security interests created by this Agreement, (iv) enter into any agreement or undertaking restricting the right or ability of such Grantor or the Administrative Agent to sell, assign or transfer any of the Investment Property or Proceeds thereof or any interest therein or (v) without (a) the prior written notice to the Administrative Agent and (b) such Grantor taking all steps necessary or advisable to establish the Administrative Agent’s “control” thereof, cause or permit any Issuer of any Pledged Partnership Interests or Pledged LLC Interests which are not securities (for purposes of the UCC) on the date hereof to elect or otherwise take any action to cause such Pledged Partnership Interests or Pledged LLC Interests to be treated as securities for purposes of the UCC.

 

(c)                                  In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be bound by the terms of this Agreement relating to the Pledged Securities issued by it and will comply with such terms insofar as such terms are applicable to it, (ii) it will notify the Administrative Agent promptly in writing of the occurrence of any of the events described in Section 5.8(a) with respect to the Pledged Securities issued by it and (iii) the terms of Sections 6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all actions that may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the Pledged Securities issued by it.  In addition, each Grantor which is either an Issuer or an owner of any Pledged Security hereby consents to the grant by each other Grantor of the security interest hereunder in favor of the Administrative Agent and to the transfer of any Pledged Security to the Administrative Agent or its nominee upon the occurrence or during the continuation of an Event of Default and to the substitution of the Administrative Agent or its nominee as a partner, member or shareholder of the Issuer of the related Pledged Security.  The Administrative Agent agrees to notify any 

 

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Grantor before transferring the Pledged Securities pledged by such Grantor into the name of the Administrative Agent pursuant to this section.

 

5.9.                            Receivables.  (a)  Other than in the ordinary course of business consistent with its past practice, such Grantor will not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could materially adversely affect the value thereof.

 

(b)                                 Such Grantor will deliver to the Administrative Agent a copy of each material demand, notice or document received by it that questions or calls into doubt the validity or enforceability of outstanding Receivables constituting a material portion of the Collateral.

 

5.10.                     Intellectual Property.  (a)  Such Grantor (either itself or through licensees) will (i) as deemed advisable in the exercise of its reasonable business judgment, continue to use each material Trademark on each and every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force free from any claim of abandonment for non-use, (ii) maintain as in the past the quality of products and services offered under such Trademark and take all necessary steps to ensure that all licensed users of such Trademark maintain as in the past such quality, (iii) use such Trademark with the appropriate notice of registration and all other notices and legends required by applicable Requirements of Law, (iv) not adopt or use any mark which is confusingly similar or a colorable imitation of such Trademark unless the Administrative Agent, for the ratable benefit of the Secured Parties, shall obtain a perfected security interest in such mark pursuant to this Agreement and the Intellectual Property Security Agreement, and (v) not (and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way.

 

(b)                                 As deemed advisable in the exercise of its reasonable business judgment, such Grantor (either itself or through licensees) will not do any act, or omit to do any act, whereby any Patent may become forfeited, abandoned or dedicated to the public.

 

(c)                                  As deemed advisable in the exercise of its reasonable business judgment, such Grantor (either itself or through licensees) (i) will employ each Copyright and (ii) will not (and will not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any portion of the Copyrights may become invalidated or otherwise impaired.  As deemed advisable in the exercise of its reasonable business judgment, such Grantor will not (either itself or through licensees) do any act whereby any portion of the Copyrights may fall into the public domain.

 

(d)                                 Such Grantor (either itself or through licensees) will not do any act that knowingly uses any material Intellectual Property to Infringe the intellectual property rights of any other Person.

 

(e)                                  Except with respect to any Patent, Trademark or Copyright the invalidity of which would not have a Material Adverse Effect, such Grantor (either itself or through licensees) will use proper statutory notice in connection with the use of each Patent, Trademark and Copyright included in the Intellectual Property.

 

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(f)                                   To the extent as could be reasonably be expected to have a Material Adverse Effect, such Grantor will notify the Administrative Agent as promptly as practicable if it knows, or has reason to know, that any application or registration relating to any Intellectual Property may become forfeited, abandoned or dedicated to the public, or of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court or tribunal in any country) regarding such Grantor’s ownership of, or the validity of, any Intellectual Property or such Grantor’s right to register the same or to own and maintain the same.

 

(g)                                  As deemed advisable in the exercise of its reasonable business judgment, as promptly as practicable upon such Grantor’s acquisition or creation of any U.S. copyrightable work, invention, trademark or other similar property that is material to the business of Grantor, apply for registration thereof with the United States Copyright Office, the United States Patent and Trademark Office and any other appropriate office.  Whenever such Grantor, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any U.S. Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office or any other applicable Governmental Authority, such Grantor shall report such filing to the Administrative Agent concurrently with the next delivery of the Compliance Certificate pursuant to Section 6.2(b) of the Credit Agreement for the fiscal quarter in which such filing occurs and shall provide the Administrative Agent with an amended Schedule 5 hereto reflecting the same. Upon request of the Administrative Agent, such Grantor shall execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers as the Administrative Agent may request to evidence the Secured Parties’ security interest in any Copyright, Patent, Trademark or other Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby.

 

(h)                                 Except as provided in Section 5.10(i), such Grantor will take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of material Intellectual Property, including, without limitation, the payment of required fees and taxes, the filing of responses to office actions issued by the United States Patent and Trademark Office and the United States Copyright Office, the filing of applications for renewal or extension, the filing of affidavits of use and affidavits of incontestability, the filing of divisional, continuation, continuation-in-part, reissue, and renewal or substitute applications or extensions, the payment of maintenance fees, and the participation in interference, reexamination, opposition, cancellation, Infringement and misappropriation proceedings.

 

(i)                                     Such Grantor (either itself or through licensees) will not, without the prior written consent of the Administrative Agent, discontinue use of or otherwise abandon any Intellectual Property, or abandon any application or any right to file an application for letters patent, trademark, or copyright, unless such Grantor, in its reasonable business judgment, determines that such use or the pursuit or maintenance of such Intellectual Property is no longer desirable in the conduct of such Grantor’s business and that the loss thereof could not reasonably be expected to have a Material Adverse Effect.

 

(j)                                    In the event that any material Intellectual Property owned by a Grantor is Infringed by a third party, such Grantor shall (i) take such actions as such Grantor shall reasonably deem appropriate under the circumstances to protect such Intellectual Property and (ii) if such Intellectual Property is of material economic value, take such actions as are reasonably appropriate under the circumstances, including, as appropriate, sue for Infringement to seek injunctive relief where appropriate and to recover any and all damages for such Infringement and promptly notify the Administrative Agent 

 

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after it takes any such action, or promptly notify the Administrative Agent of any decision not to pursue or take any such action.

 

(k)                                 Such Grantor agrees that, should it obtain an ownership interest in any item of intellectual property which is not now a part of the Intellectual Property Collateral (the “After-Acquired Intellectual Property”), (i) the provisions of Section 3 shall automatically apply thereto and (ii) any such After-Acquired Intellectual Property, and in the case of trademarks, the goodwill of the business connected therewith or symbolized thereby, shall automatically become part of the Intellectual Property Collateral.

 

(l)                                     Such Grantor agrees to execute an Intellectual Property Security Agreement with respect to Registered IP owned by such Grantor in its own name as of the date hereof, in substantially the form of Exhibit B-1 in order to record the security interest granted herein to the Administrative Agent for the ratable benefit of the Secured Parties with the United States Patent and Trademark Office, the United States Copyright Office, and any other applicable Governmental Authority.

 

(m)                             Such Grantor agrees to execute an After-Acquired Intellectual Property Security Agreement with respect to its registered or applied to be registered U.S. After-Acquired Intellectual Property in substantially the form of Exhibit B-2 in order to record the security interest granted herein to the Administrative Agent for the ratable benefit of the Secured Parties with the United States Patent and Trademark Office, the United States Copyright Office, and any other applicable Governmental Authority.

 

(n)                                 Such Grantor shall take all steps reasonably necessary to protect the secrecy of all material Trade Secrets, including, without limitation, entering into confidentiality agreements with employees and labeling and restricting access to secret information and documents.

 

5.11.                     Commercial Tort Claims.  If such Grantor shall obtain an interest in any Commercial Tort Claim with an estimated value in excess of $25,000, such Grantor shall within 30 days of obtaining such interest sign and deliver documentation acceptable to the Administrative Agent granting a security interest under the terms and provisions of this Agreement in and to such Commercial Tort Claim.

 

SECTION 6.                            REMEDIAL PROVISIONS

 

6.1.                            Certain Matters Relating to Receivables.  (a)  The Administrative Agent shall have the right to make test verifications of the Receivables in any manner and through any medium that it reasonably considers advisable, and each Grantor shall furnish all such assistance and information as the Administrative Agent may require in connection with such test verifications.  After an Event of Default has occurred and is continuing, at any time and from time to time, upon the Administrative Agent’s request and at the expense of the relevant Grantor, such Grantor shall cause independent public accountants or others satisfactory to the Administrative Agent to furnish to the Administrative Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the Receivables.

 

(b)                                 The Administrative Agent hereby authorizes each Grantor to collect such Grantor’s Receivables, and each Grantor hereby agrees to continue to collect all amounts due or to become due to such Grantor under the Receivables and any Supporting Obligation and diligently exercise each material right it may have under any Receivable and any Supporting Obligation, in each case, at its own expense; provided, however, that the Administrative Agent may curtail or terminate said authority at any time after the occurrence and during the continuance of an Event of Default.  If required by the Administrative Agent at any time after the occurrence and during the continuance of an Event of Default, any payments of Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any event, 

 

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within two Business Days) deposited by such Grantor in the exact form received, duly endorsed by such Grantor to the Administrative Agent if required, in a Collateral Account maintained under the sole dominion and control of the Administrative Agent, subject to withdrawal by the Administrative Agent for the account of the Secured Parties only as provided in Section 6.5, and (ii) until so turned over, shall be held by such Grantor in trust for the Secured Parties, segregated from other funds of such Grantor.  Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit.

 

6.2.                            Communications with Obligors; Grantors Remain Liable.  (a)  The Administrative Agent in its own name or in the name of others may at any time during reasonable business hours after the occurrence and during the continuance of an Event of Default communicate with obligors under the Receivables to verify with them to the Administrative Agent’s satisfaction the existence, amount and terms of any Receivables.

 

(b)                                 If an Event of Default shall have occurred and be continuing, the Administrative Agent may at any time notify, or require any Grantor to so notify, the Account Debtor or counterparty on any Receivable of the security interest of the Administrative Agent therein.  In addition, after the occurrence and during the continuance of an Event of Default, the Administrative Agent may upon written notice to the applicable Grantor, notify, or require any Grantor to notify, the Account Debtor or counterparty to make all payments under the Receivables directly to the Administrative Agent.

 

(c)                                  Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each of the Receivables to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto.  No Secured Party shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by any Secured Party of any payment relating thereto, nor shall any Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

 

6.3.                            Pledged Securities.  (a)  Unless an Event of Default shall have occurred and be continuing and the Administrative Agent shall have given notice to the relevant Grantor of the Administrative Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to receive all cash dividends paid in respect of the Pledged Equity Interests and all payments made in respect of the Pledged Notes, in each case paid in the normal course of business of the relevant Issuer and consistent with past practice, to the extent permitted in the Credit Agreement,  and to exercise all voting and corporate rights with respect to the Pledged Securities not inconsistent with the purposes of this Agreement; provided, however, that no vote shall be cast or corporate or other ownership right exercised or other action taken which, in the Administrative Agent’s reasonable judgment, would materially impair the Collateral or which would be inconsistent with or result in any violation of any provision of the Credit Agreement, this Agreement or any other Loan Document.

 

(b)                                 If an Event of Default shall occur and be continuing and the Administrative Agent shall give notice of its intent to invoke the provisions of this Section 6.3(b) to the relevant Grantor(s):  (i)  all rights of each Grantor to exercise or refrain from exercising the voting and other consensual rights which it would otherwise be entitled to exercise pursuant hereto shall cease and all such rights shall thereupon become vested in the Administrative Agent who shall thereupon have the sole right, but shall be under no obligation, to exercise or refrain from exercising such voting and other consensual 

 

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rights and (ii) the Administrative Agent shall have the right to transfer all or any portion of the Investment Property to its name or the name of its nominee or agent.  In addition, the Administrative Agent shall have the right at any time to exchange any certificates or instruments representing any Investment Property for certificates or instruments of smaller or larger denominations.  In order to permit the Administrative Agent to exercise the voting and other consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder each Grantor shall promptly execute and deliver (or cause to be executed and delivered) to the Administrative Agent all proxies, dividend payment orders and other instruments as the Administrative Agent may from time to time reasonably request and each Grantor acknowledges that the Administrative Agent may utilize the power of attorney set forth herein.

 

(c)                                  Each Grantor hereby authorizes and instructs each Issuer of any Pledged Securities pledged by such Grantor hereunder to (i) comply with any instruction received by it from the Administrative Agent in writing that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other payments with respect to the Pledged Securities directly to the Administrative Agent.

 

6.4.                            Proceeds to be Turned Over To Administrative Agent.  In addition to the rights of the Secured Parties specified in Section 6.1 with respect to payments of Receivables, if an Event of Default shall occur and be continuing, all Proceeds received by any Grantor consisting of cash, Cash Equivalents, checks and other near-cash items shall be held by such Grantor in trust for the Secured Parties, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Administrative Agent in the exact form received by such Grantor (duly endorsed by such Grantor to the Administrative Agent, if required).  All Proceeds received by the Administrative Agent hereunder shall be held by the Administrative Agent in a Collateral Account maintained under its sole dominion and control.  All Proceeds while held by the Administrative Agent in a Collateral Account (or by such Grantor in trust for the Secured Parties) shall continue to be held as collateral security for all the Obligations and shall not constitute payment thereof until applied as provided in Section 6.5.

 

6.5.                            Application of Proceeds.  At such intervals as may be agreed upon by the Borrower and the Administrative Agent, or, if an Event of Default shall have occurred and be continuing, at any time at the Administrative Agent’s election, the Administrative Agent may, notwithstanding the provisions of Section 2.11 of the Credit Agreement, apply all or any part of the net Proceeds (after deducting costs and expenses as provided in Section 6.6(b) hereof) constituting Collateral realized through the exercise by the Administrative Agent of its remedies hereunder, whether or not held in any Collateral Account, and any proceeds of the guarantee set forth in Section 2, in payment of the Obligations in the following order:

 

First, to the Administrative Agent, to pay incurred and unpaid fees and expenses of the Secured Parties under the Loan Documents permitted under Section 10.5 of the Credit Agreement or Section 8.4 hereof;

 

Second, to the Administrative Agent, for application by it towards payment of amounts then due and owing and remaining unpaid in respect of the Obligations, pro rata among the Secured Parties according to the amounts of the Obligations then due and owing and remaining unpaid to the Secured Parties;

 

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Third, to the Administrative Agent, for application by it towards prepayment of the Obligations, pro rata among the Lenders according to the amounts of the Obligations then held by the Lenders; and

 

Fourth, any balance of such Proceeds remaining after the Obligations shall have been paid in full, no Letters of Credit shall be outstanding and the Commitments shall have terminated or expired shall be paid over to the Borrower or to whomsoever may be lawfully entitled to receive the same.

 

Notwithstanding the foregoing, no amounts received from any Guarantor shall be applied to any Excluded Swap Obligations of such Guarantor.

 

6.6.                            Code and Other Remedies.  (a)  If an Event of Default shall occur and be continuing, the Administrative Agent, on behalf of the Secured Parties, may exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured party under the New York UCC (whether or not the New York UCC applies to the affected Collateral) or its rights under any other applicable law or in equity.  Without limiting the generality of the foregoing, the Administrative Agent, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, license, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of any Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk.  Each Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby waived and released.  Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.  Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The Administrative Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  The Administrative Agent may sell the Collateral without giving any warranties as to the Collateral.  The Administrative Agent may specifically disclaim or modify any warranties of title or the like.  This procedure will not be considered to adversely effect the commercial reasonableness of any sale of the Collateral.  Each Grantor agrees that it would not be commercially unreasonable for the Administrative Agent to dispose of the Collateral or any portion thereof by using Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets.  Each Grantor hereby waives any claims against the Administrative Agent arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale, even if the Administrative Agent accepts the first offer received and does not offer such Collateral to more than one offeree.  Each Grantor further agrees, at the Administrative Agent’s request, to assemble the Collateral and make it available to the Administrative

 

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Agent at places which the Administrative Agent shall reasonably select, whether at such Grantor’s premises or elsewhere.  The Administrative Agent shall have the right to enter onto the property where any Collateral is located and take possession thereof with or without judicial process.

 

(b)           The Administrative Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.6, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Secured Parties hereunder, including, without limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations and only after such application and after the payment by the Administrative Agent of any other amount required by any provision of law, including, without limitation, Section 9-615(a) of the New York UCC, need the Administrative Agent account for the surplus, if any, to any Grantor.  If the Administrative Agent sells any of the Collateral upon credit, the Grantor will be credited only with payments actually made by the purchaser and received by the Administrative Agent and applied to indebtedness of the purchaser.  In the event the purchaser fails to pay for the Collateral, the Administrative Agent may resell the Collateral and the Grantor shall be credited with proceeds of the sale.  To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against any Secured Party arising out of the exercise by them of any rights hereunder.

 

(c)           In the event of any Disposition of any of the Intellectual Property and/or if an Event of Default shall have occurred and be continuing, the goodwill of the business connected with and symbolized by any Trademarks subject to such Disposition shall be included, and the applicable Grantor shall supply the Administrative Agent or its designee with such Grantor’s know-how and expertise, and with documents and things embodying the same, relating to the manufacture, distribution, advertising and sale of products or the provision of services relating to, and such Grantor’s use of,  any Intellectual Property subject to such Disposition, and such Grantor’s customer lists and other records and documents relating to such Intellectual Property and to the manufacture, distribution, advertising and sale of such products and services.

 

6.7.         Registration Rights. (a)   If the Administrative Agent shall determine to exercise its right to sell any or all of the Pledged Equity Interests or the Pledged Debt Securities pursuant to Section 6.6, and if in the opinion of the Administrative Agent it is necessary or advisable to have the Pledged Equity Interests or the Pledged Debt Securities, or that portion thereof to be sold, registered under the provisions of the Securities Act, the relevant Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the directors and officers of such Issuer to execute and deliver, all such instruments and documents, and do or cause to be done all such other acts as may be, in the opinion of the Administrative Agent, necessary or advisable to register the Pledged Equity Interests or the Pledged Debt Securities, or that portion thereof to be sold, under the provisions of the Securities Act, (ii) use its best efforts to cause the registration statement relating thereto to become effective and to remain effective for a period of one year from the date of the first public offering of the Pledged Equity Interests or the Pledged Debt Securities, or that portion thereof to be sold, provided, that the Administrative Agent shall furnish to the relevant Grantor such information regarding the Administrative Agent as shall be required in connection with such registration and requested by such Grantor in writing, and (iii) make all amendments thereto and/or to the related prospectus which, in the opinion of the Administrative Agent, are necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations of the SEC applicable thereto.  Each Grantor agrees to cause such Issuer to comply with the provisions of the securities or “Blue Sky” laws of any and all jurisdictions which the Administrative Agent shall designate and to make available to its security holders, as soon as practicable, an earnings statement (which need not be audited) which will satisfy the provisions of Section 11(a) of the Securities Act.

 

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(b)           Each Grantor recognizes that the Administrative Agent may be unable to effect a public sale of any or all the Pledged Equity Interests or the Pledged Debt Securities, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.  Each Grantor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner.  The Administrative Agent shall be under no obligation to delay a sale of any of the Pledged Equity Interests or the Pledged Debt Securities for the period of time necessary to permit the Issuer thereof to register such securities for public sale under the Securities Act, or under applicable state securities laws, even if such Issuer would agree to do so.

 

(c)           Each Grantor agrees to use its best efforts to do or cause to be done all such other acts as may be necessary to make such sale or sales of all or any portion of the Pledged Equity Interests or the Pledged Debt Securities pursuant to this Section 6.7 valid and binding and in compliance with any and all other applicable Requirements of Law.  Each Grantor further agrees that a breach of any of the covenants contained in this Section 6.7 will cause irreparable injury to the Secured Parties, that the Secured Parties have no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 6.7 shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no Event of Default has occurred and is continuing under the Credit Agreement or a defense of payment.

 

6.8.         Waiver; Deficiency.  Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by any Secured Party to collect such deficiency.

 

SECTION 7.         THE ADMINISTRATIVE AGENT

 

7.1.         Administrative Agent’s Appointment as Attorney-in-Fact, Etc. (a)  Each Grantor hereby irrevocably constitutes and appoints the Administrative Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the Administrative Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the following:

 

(i)            in the name of such Grantor or its own name, or otherwise, take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Receivable or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Administrative Agent for the purpose of collecting any and all such moneys due under any Receivable or with respect to any other Collateral whenever payable;

 

(ii)           in the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as the Administrative Agent may request to evidence the Secured Parties’ security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby;

 

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(iii)          pay or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or any insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof;

 

(iv)          execute, in connection with any sale provided for in Section 6.6 or 6.7, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and

 

(v)           (1) direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Administrative Agent or as the Administrative Agent shall direct; (2) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (3) sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (4) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the Administrative Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for such term or terms, on such conditions, and in such manner, as the Administrative Agent shall in its sole discretion determine; and (8) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Administrative Agent were the absolute owner thereof for all purposes, and do, at the Administrative Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and things which the Administrative Agent deems necessary to protect, preserve or realize upon the Collateral and the Secured Parties’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might do.

 

Anything in this Section 7.1(a) to the contrary notwithstanding, the Administrative Agent agrees that, except as provided in Section 7.1(b), it will not exercise any rights under the power of attorney provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be continuing.

 

(b)           If any Grantor fails to perform or comply with any of its agreements contained herein, the Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement; provided, however, that unless and Event of Default has occurred and is continuing or time is of the essence, the Administrative Agent shall not exercise this power without first making demand on the Grantor and the Grantor failing to immediately comply therewith.

 

(c)           The expenses of the Administrative Agent incurred in connection with actions undertaken as provided in this Section 7.1, together with interest thereon at a rate per annum equal to the rate per annum at which interest would then be payable on past due Revolving Loans that are Base Rate Loans under the Credit Agreement, from the date of payment by the Administrative Agent to the date reimbursed by the relevant Grantor, shall be payable by such Grantor to the Administrative Agent on demand.

 

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(d)           Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.

 

7.2.         Duty of Administrative Agent.  The Administrative Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the Administrative Agent deals with similar property for its own account.  Neither the Administrative Agent, nor any other Secured Party nor any of their respective officers, directors, partners, employees, agents, attorneys and other advisors, attorneys-in-fact or affiliates shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Secured Parties hereunder are solely to protect the Secured Parties’ interests in the Collateral and shall not impose any duty upon any Secured Party to exercise any such powers.  The Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, partners, employees, agents, attorneys and other advisors, attorneys-in-fact or affiliates shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct.

 

7.3.         Execution of Financing Statements.  Each Grantor hereby authorizes the Administrative Agent to file or record financing or continuation statements, and assignments and amendments thereto, and other filing or recording documents or instruments with respect to the Collateral without the signature of such Grantor (to the extent permitted by applicable law) in such form and in such offices as the Administrative Agent reasonably determines appropriate to perfect or maintain the perfection of the security interests of the Administrative Agent under this Agreement.  Each Grantor agrees that such financing statements may describe the collateral in the same manner as described in the Security documents or as “all assets” or “all personal property” of the undersigned, whether now owned or hereafter existing or acquired by the undersigned or such other description as the Administrative Agent, in its sole judgment, determines is necessary or advisable.

 

7.4.         Authority of Administrative Agent.  Each Grantor acknowledges that the rights and responsibilities of the Administrative Agent under this Agreement with respect to any action taken by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the Administrative Agent and the other Secured Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between the Administrative Agent and the Grantors, the Administrative Agent shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority.

 

7.5.         Appointment of Co-Collateral Agents.  At any time or from time to time and upon written notice to the Grantors, in order to comply with any Requirement of Law, the Administrative Agent may appoint another bank or trust company or one of more other persons, either to act as co-agent or agents on behalf of the Secured Parties with such power and authority as may be necessary for the effectual operation of the provisions hereof and which may be specified in the instrument of appointment (which may, in the discretion of the Administrative Agent, include provisions for indemnification and similar protections of such co-agent or separate agent).

 

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SECTION 8.         MISCELLANEOUS

 

8.1.         Amendments in Writing.  None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 10.1 of the Credit Agreement.

 

8.2.         Notices. All notices, requests and demands to or upon the Administrative Agent or any Grantor hereunder shall be effected in the manner provided for in Section 10.2 of the Credit Agreement; provided that any such notice, request or demand to or upon any Guarantor shall be addressed to such Guarantor at its notice address set forth on Schedule 1.

 

8.3.         No Waiver by Course of Conduct; Cumulative Remedies.  No Secured Party shall by any act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default.  No failure to exercise, nor any delay in exercising, on the part of any Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by any Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which such Secured Party would otherwise have on any future occasion.  The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

8.4.         Enforcement Expenses; Indemnification. (a)  Each Guarantor agrees to pay or reimburse each Lender and the Administrative Agent (in the case of each Lender, after the occurrence and during the continuance of an Event of Default) for all its costs and expenses incurred in collecting against such Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Agreement and the other Loan Documents to which such Guarantor is a party, including, without limitation, the fees and disbursements of counsel (including the allocated fees and expenses of in-house counsel (but not both outside and in-house counsel)) to each Secured Party and of counsel to the Administrative Agent.

 

(b)           Each Guarantor agrees to pay, and to save the Secured Parties harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement.

 

(c)           Each Guarantor agrees to pay, and to save the Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement to the extent the Borrower would be required to do so pursuant to Section 10.5 of the Credit Agreement.

 

(d)           The agreements in this Section shall survive repayment of the Obligations and all other amounts payable under the Credit Agreement and the other Loan Documents.

 

(e)           Each Guarantor agrees that the provisions of Section 2.19 of the Credit Agreement are hereby incorporated herein by reference, mutatis mutandis, and each Secured Party shall be entitled to rely on each of them as if they were fully set forth herein.

 

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8.5.         Successors and Assigns. This Agreement shall be binding upon the successors and assigns of each Grantor and shall inure to the benefit of the Secured Parties and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the Administrative Agent.

 

8.6.         Set-Off.  Each Grantor hereby irrevocably authorizes each Secured Party at any time and from time to time while an Event of Default pursuant to Section 8(a) of the Credit Agreement shall have occurred and be continuing, without notice to such Grantor or any other Grantor, any such notice being expressly waived by each Grantor, to set-off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Secured Party to or for the credit or the account of such Grantor, or any part thereof in such amounts as such Secured Party may elect, against and on account of the obligations and liabilities of such Grantor to such Secured Party hereunder and claims of every nature and description of such Secured Party against such Grantor, in any currency, whether arising hereunder, under the Credit Agreement, any other Loan Document or otherwise, as such Secured Party may elect, whether or not any Secured Party has made any demand for payment and although such obligations, liabilities and claims may be contingent or unmatured.  Each Secured Party shall notify such Grantor promptly of any such set-off and the application made by such Secured Party of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application; provided, further, that to the extent prohibited by applicable law as described in the definition of “Excluded Swap Obligation,” no amounts received from, or set off with respect to, any Guarantor shall be applied to any Excluded Swap Obligations of such Guarantor.  The rights of each Secured Party under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Secured Party may have.

 

8.7.         Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by email or telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

8.8.         Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

8.9.         Section Headings.  The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

 

8.10.       Integration.  This Agreement and the other Loan Documents represent the agreement of the Grantors, the Administrative Agent and the other Secured Parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by any Secured Party relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Loan Documents.

 

8.11.       GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

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8.12.       Submission to Jurisdiction; Waivers.  Each Grantor hereby irrevocably and unconditionally:

 

(a)           submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

 

(b)           consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)           agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Grantor at its address referred to in Section 8.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto;

 

(d)           agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

 

(e)           waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages.

 

8.13.       Acknowledgments.  Each Grantor hereby acknowledges that:

 

(a)           it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it is a party;

 

(b)           no Secured Party has any fiduciary relationship with or duty to any Grantor arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Grantors, on the one hand, and the Secured Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(c)           no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Secured Parties or among the Grantors and the Secured Parties.

 

8.14.       Additional Grantors.  Each Subsidiary of the Borrower that is required to become a party to this Agreement pursuant to Section 6.9 of the Credit Agreement shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

 

8.15.       Releases. (a)  At such time as the Loans, the Reimbursement Obligations and the other Obligations (other than Obligations in respect of any Specified Swap Agreement) shall have been paid in full, the Commitments have been terminated or expired and no Letters of Credit shall be outstanding, the Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Administrative Agent

 

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and each Grantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Grantors.  At the request and sole expense of any Grantor following any such termination, the Administrative Agent shall deliver to such Grantor any Collateral held by the Administrative Agent hereunder, and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

 

(b)           If any of the Collateral shall be Disposed of by any Grantor in a transaction permitted by the Credit Agreement, then the Administrative Agent, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other documents reasonably necessary or desirable for the release of the Liens created hereby on such Collateral.  At the request and sole expense of the Borrower, a Subsidiary Guarantor shall be released from its obligations hereunder in the event that all the Capital Stock of such Subsidiary Guarantor shall be Disposed of in a transaction permitted by the Credit Agreement; provided that the Borrower shall have delivered to the Administrative Agent, at least ten Business Days prior to the date of the proposed release, a written request for release identifying the relevant Subsidiary Guarantor and the terms of the Disposition in reasonable detail, including the price thereof and any expenses in connection therewith, together with a certification by the Borrower stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents and that the Proceeds of such Disposition will be applied in accordance therewith.

 

(c)           Each Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement originally filed in connection herewith without the prior written consent of the Administrative Agent subject to such Grantor’s rights under Section 9-509(d)(2) of the New York UCC.

 

8.16.       WAIVER OF JURY TRIAL.  EACH GRANTOR AND THE ADMINISTRATIVE AGENT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

34












 

IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Collateral Agreement to be duly executed and delivered as of the date first above written.

 

	
 
    	
RENT-A-CENTER, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
RENT-A-CENTER   EAST, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RENT-A-CENTER   TEXAS, L.L.C.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RENT-A-CENTER   TEXAS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
RENT-A-CENTER   ADDISON, L.L.C.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RENT-A-CENTER   FRANCHISING INTERNATIONAL, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RENT-A-CENTER   WEST, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    


 

35











 

	
 
    	
COLORTYME   FINANCE, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
REMCO   AMERICA, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RENT-A-CENTER   INTERNATIONAL, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
GET   IT NOW, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RAC   NATIONAL PRODUCT SERVICE, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RAC   ACCEPTANCE EAST, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RAC   ACCEPTANCE TEXAS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    


 

36











 

	
 
    	
RAC   ACCEPTANCE WEST, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RAC   WELTON, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
RAC   MEXICO HOLDINGS I, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
RAC   MEXICO HOLDINGS II, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert D. Davis
    
	
 
    	
 
    	
Name:
    	
Robert   D. Davis
    
	
 
    	
 
    	
Title:
    	
Treasurer
    


 

37











 

	
 
    	
JPMORGAN   CHASE BANK, N.A., as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gregory T. Martin
    
	
 
    	
 
    	
Name:
    	
Gregory   T. Martin
    
	
 
    	
 
    	
Title:
    	
Vice   President
    


 

38












 

Schedule 1

 

NOTICE ADDRESSES OF GUARANTORS

 

	
Guarantors
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
Rent-A-Center, Inc.
    	
 
    	
5501   Headquarters Drive
    
	
Get   It Now, LLC
    	
 
    	
Plano,   Texas 75024
    
	
RAC   National Product Service, LLC
    	
 
    	
 
    
	
Remco   America, Inc.
    	
 
    	
 
    
	
Rent-A-Center   Addison, L.L.C.
    	
 
    	
 
    
	
Rent-A-Center   East, Inc.
    	
 
    	
 
    
	
Rent-A-Center   International, Inc.
    	
 
    	
 
    
	
Rent-A-Center   Texas, L.P.
    	
 
    	
 
    
	
Rent-A-Center   West, Inc.
    	
 
    	
 
    
	
RAC   Acceptance East, LLC
    	
 
    	
 
    
	
RAC   Acceptance Texas, LLC
    	
 
    	
 
    
	
RAC   Acceptance West, LLC
    	
 
    	
 
    
	
Rent-A-Center   Texas, L.L.C.
    	
 
    	
 
    
	
RAC   Welton, Inc.
    	
 
    	
 
    
	
RAC   Mexico Holdings I, LLC
    	
 
    	
 
    
	
RAC   Mexico Holdings II, LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Rent-A-Center   Franchising International, Inc.
    	
 
    	
5000   Legacy Drive, Suite 210
    
	
ColorTyme   Finance, Inc.
    	
 
    	
Plano,   Texas 75024
    


 

39











 

Schedule 2

 

DESCRIPTION OF PLEDGED INVESTMENT PROPERTY

 

Pledged Stock:

 

	
Grantor
    	
 
    	
Issuer
    	
 
    	
Issuer’s Jurisdiction
   Under New York UCC
   Section 9-305(a)(2)
    	
 
    	
Class of
   Stock
    	
 
    	
Stock
   Certificate No.
    	
 
    	
Percentage
   of Shares
    	
 
    	
No. of
   Shares
    	
 
    
	
Rent-A-Center   East, Inc.
    	
 
    	
Rent-A-Center   Franchising International, Inc. (f/k/a ColorTyme, Inc.)
    	
 
    	
Texas
    	
 
    	
Common
    	
 
    	
003
    	
 
    	
100
    	
%
    	
1,000
    	
 
    
	
Rent-A-Center   West, Inc.
    	
 
    	
Remco America, Inc.
    	
 
    	
Delaware
    	
 
    	
Common
    	
 
    	
30
    	
 
    	
100
    	
%
    	
1,000
    	
 
    
	
Rent-A-Center   East, Inc.
    	
 
    	
Rent-A-Center   West, Inc.
    	
 
    	
Delaware
    	
 
    	
Common
    	
 
    	
4
    	
 
    	
100
    	
%
    	
1,000
    	
 
    
	
Rent-A-Center, Inc.
    	
 
    	
Rent-A-Center   East, Inc.
    	
 
    	
Delaware
    	
 
    	
Common
    	
 
    	
1
    	
 
    	
100
    	
%
    	
1,000
    	
 
    
	
Rent-A-Center   East, Inc.
    	
 
    	
Rent-A-Center   International, Inc.
    	
 
    	
Delaware
    	
 
    	
Common
    	
 
    	
1
    	
 
    	
100
    	
%
    	
1,000
    	
 
    
	
Rent-A-Center   East, Inc.
    	
 
    	
RAC Welton, Inc.
    	
 
    	
Texas
    	
 
    	
Common
    	
 
    	
1
    	
 
    	
100
    	
%
    	
1,000
    	
 
    
	
Rent-A-Center   Franchising International, Inc. (f/k/a ColorTyme, Inc.)
    	
 
    	
ColorTyme Finance, Inc.
    	
 
    	
Texas
    	
 
    	
Common
    	
 
    	
1
    	
 
    	
100
    	
%
    	
1,000
    	
 
    


 

Pledged Notes:

 

	
Grantor
    	
 
    	
Issuer
    	
 
    	
Payee
    	
 
    	
Principal Amount
    
	
None.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

Pledged Debt Securities:

 

	
Grantor
    	
 
    	
Issuer
    	
 
    	
Issuer’s Jurisdiction
   Under New York UCC
   Section 9-305(a)(2)
    	
 
    	
Payee
    	
 
    	
Principal Amount
    	
 
    
	
None.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    


 











 

Pledged Security Entitlements:

 

	
Grantor
    	
 
    	
Issuer of
   Financial Asset
    	
 
    	
Description of
   Financial Asset
    	
 
    	
Securities
   Intermediary
   (Name and Address)
    	
 
    	
Securities Account
   (Number and Location)
    	
 
    	
Securities Intermediary’s
   Jurisdiction Under New York
   UCC Section 9-305(a)(3)
    
	
None.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

Pledged Commodity Contracts:

 

	
Grantor
    	
 
    	
Description of
   Commodity Contract
    	
 
    	
Commodity Intermediary
   (Name and Address)
    	
 
    	
Commodity Account
   (Number and Location)
    	
 
    	
Commodity Intermediary’s
   Jurisdiction Under New York
   UCC Section 9-305(a)(4)
    
	
None.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

Pledged Partnership Interests:

 

	
Grantor
    	
 
    	
Issuer
    	
 
    	
Type of
   Partnership Interest (e.g.,
   General or Limited)
    	
 
    	
Certificated
   (Y/N)
    	
 
    	
Certificate No.
   (if any)
    	
 
    	
% of
   Outstanding
   Partnership
   Interests of the
   Partnership
    	
 
    
	
Rent-A-Center   East, Inc.
    	
 
    	
Rent-A-Center   Texas, L.P.
    	
 
    	
General partnership interest
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
0.1
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center   Texas, L.L.C.
    	
 
    	
Rent-A-Center   Texas, L.P.
    	
 
    	
Limited partnership interest
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
99.9
    	
%
    


 











 

Pledged LLC Interests:

 

	
Grantor
    	
 
    	
Issuer
    	
 
    	
Certificated
   (Y/N)
    	
 
    	
Certificate No.
   (if any)
    	
 
    	
No of
   Pledged Units
    	
 
    	
% of Outstanding LLC
   Interests of the Issuer
    	
 
    
	
Rent-A-Center   East, Inc.
    	
 
    	
Get It Now, LLC
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    
	
Rent-A-Center   East, Inc.
    	
 
    	
Rent-A-Center Texas,   L.L.C.
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    
	
Rent-A-Center   Texas, L.P.
    	
 
    	
Rent-A-Center Addison,   L.L.C.
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    
	
Rent-A-Center   Texas, L.P.
    	
 
    	
RAC Acceptance Texas,   LLC
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    
	
Rent-A-Center   East, Inc.
    	
 
    	
RAC National Product   Service, LLC
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    
	
Rent-A-Center   East, Inc.
    	
 
    	
RAC Acceptance East, LLC
    	
 
    	
No.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    
	
Rent-A-Center   West, Inc.
    	
 
    	
RAC Mexico Holdings I,   LLC
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    
	
Rent-A-Center   West, Inc.
    	
 
    	
RAC Mexico Holdings II,   LLC
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    
	
Rent-A-Center   West, Inc.
    	
 
    	
RAC Acceptance West, LLC
    	
 
    	
No
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
100
    	
%
    


 

Pledged Trust Interests:

 

	
Grantor
    	
 
    	
Issuer
    	
 
    	
Class of Trust
   Interests
    	
 
    	
Certificated
   (Y/N)
    	
 
    	
Certificate No.
   (if any)
    	
 
    	
% of Outstanding Trust
   Interests of the Issuer
    
	
None.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    


 












 

Schedule 3

 

FILINGS AND OTHER ACTIONS
 REQUIRED TO PERFECT SECURITY INTERESTS

 

Uniform Commercial Code Filings

 

File financing statement describing the Collateral in
 each office described in the table below.

 

	
Company:
    	
 
    	
UCC Filing Jurisdiction:
    
	
Rent-A-Center, Inc.
    	
 
    	
Delaware   Secretary of State
    
	
Rent-A-Center   East, Inc.
    	
 
    	
Delaware   Secretary of State
    
	
Rent-A-Center   Franchising International, Inc.
    	
 
    	
Texas   Secretary of State
    
	
ColorTyme   Finance, Inc.
    	
 
    	
Texas   Secretary of State
    
	
Remco   America, Inc.
    	
 
    	
Delaware   Secretary of State
    
	
Rent-A-Center   West, Inc.
    	
 
    	
Delaware   Secretary of State
    
	
Get   It Now, LLC
    	
 
    	
Delaware   Secretary of State
    
	
Rent-A-Center   Texas, L.L.C.
    	
 
    	
Nevada   Secretary of State
    
	
Rent-A-Center   Texas, L.P.
    	
 
    	
Texas   Secretary of State
    
	
Rent-A-Center   International, Inc.
    	
 
    	
Delaware   Secretary of State
    
	
RAC   National Product Service, LLC
    	
 
    	
Delaware   Secretary of State
    
	
RAC   Acceptance East, LLC
    	
 
    	
Delaware   Secretary of State
    
	
RAC   Welton, Inc.
    	
 
    	
Texas   Secretary of State
    
	
Rent-A-Center   Addison, L.L.C.
    	
 
    	
Delaware   Secretary of State
    
	
RAC   Acceptance Texas, LLC
    	
 
    	
Delaware   Secretary of State
    
	
RAC   Acceptance West, LLC
    	
 
    	
Delaware   Secretary of State
    
	
RAC   Mexico Holdings I, LLC
    	
 
    	
Delaware   Secretary of State
    
	
RAC   Mexico Holdings II, LLC
    	
 
    	
Delaware   Secretary of State
    


 

 











 

Patent and Trademark Filings

 

Recordation with the U. S. Patent and Trademark Office.

 

Copyright Filings

 

Recordation with the U.S. Copyright Office.

 

Actions with respect to Chattel Paper, Negotiable Documents and Instruments

 

File financing statement describing the Collateral in each office described in the table above or obtain possession with respect to Chattel Paper, Negotiable Documents and Instruments.

 

Actions with respect to Investment Property

 

File financing statement describing the Collateral in each office described in the table above or obtain control as described in the Uniform Commercial Code with respect to Investment Property.

 

Actions with respect to Letter of Credit Rights

 

Obtain control as described in Uniform Commercial Code with respect to Letter of Credit Rights.

 











 

Schedule 4

 

EXACT LEGAL NAME, JURISDICTION OF ORGANIZATION AND LOCATION OF CHIEF EXECUTIVE OFFICE

 

	
Exact Legal Name
    	
 
    	
Jurisdiction of
   Organization
    	
 
    	
Organizational
   I.D.
    	
 
    	
Location of Chief Executive Office
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center   Franchising International, Inc.
    	
 
    	
Texas
    	
 
    	
139914600
    	
 
    	
5000   Legacy Drive, Suite 210
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ColorTyme   Finance, Inc.
    	
 
    	
Texas
    	
 
    	
800716150
    	
 
    	
5000   Legacy Drive, Suite 210
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center, Inc.
    	
 
    	
Delaware
    	
 
    	
3595771
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center   West, Inc.
    	
 
    	
Delaware
    	
 
    	
2442248
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remco   America, Inc.
    	
 
    	
Delaware
    	
 
    	
2099358
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center   East, Inc.
    	
 
    	
Delaware
    	
 
    	
2101702
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Get   It Now, LLC
    	
 
    	
Delaware
    	
 
    	
3560682
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center   Texas, L.L.C.
    	
 
    	
Nevada
    	
 
    	
LLC 14630-02
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center   Texas, L.P.
    	
 
    	
Texas
    	
 
    	
800146329
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center   Addison, L.L.C.
    	
 
    	
Delaware
    	
 
    	
3735240
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
RAC   Welton, Inc.
    	
 
    	
Texas
    	
 
    	
801882809
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent-A-Center   International, Inc.
    	
 
    	
Delaware
    	
 
    	
3734129
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
RAC   National Product Service, LLC
    	
 
    	
Delaware
    	
 
    	
3780584
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
RAC   Acceptance East, LLC
    	
 
    	
Delaware
    	
 
    	
5244670
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
RAC   Acceptance Texas, LLC
    	
 
    	
Delaware
    	
 
    	
5244667
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
RAC   Acceptance West, LLC
    	
 
    	
Delaware
    	
 
    	
5244673
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    


 











 

	
Exact Legal Name
    	
 
    	
Jurisdiction of
   Organization
    	
 
    	
Organizational
   I.D.
    	
 
    	
Location of Chief Executive Office
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
RAC   Mexico Holdings I, LLC
    	
 
    	
Delaware
    	
 
    	
4810497
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
RAC   Mexico Holdings II, LLC
    	
 
    	
Delaware
    	
 
    	
4810500
    	
 
    	
5501   Headquarters Drive
   Plano, Texas 75024
    


 











 

Schedule 5

 

INTELLECTUAL PROPERTY

 

See Attached.

 











 

Schedule of Intellectual Property for Rent-A-Center, Inc.

 

U.S. TRADEMARKS, REGISTRATIONS AND APPLICATIONS

 

	
Mark
    	
 
    	
Application No./
   Registration No.
    	
 
    	
Application Date/
   Registration Date
    	
 
    	
Status
    	
 
    	
Owner
    
	
ACCEPTANCE   NOW
    	
 
    	
86/074,127

N/A
    	
 
    	
9/25/2013

N/A
    	
 
    	
Pending
    	
 
    	
Rent-A-Center   West, Inc.
    
	
ACCEPTANCE   NOW & Design (Horizontal)
    	
 
    	
86/113,407

N/A
    	
 
    	
11/8/2013

N/A
    	
 
    	
Pending
    	
 
    	
Rent-A-Center   West, Inc.
    
	
ACCEPTANCE   NOW & Design (Vertical)
    	
 
    	
86/113,415

N/A
    	
 
    	
11/8/2013

N/A
    	
 
    	
Pending
    	
 
    	
Rent-A-Center   West, Inc.
    
	
ACCEPTANCE   NOW BENEFITS PLUS
    	
 
    	
86/108,137

N/A
    	
 
    	
11/1/2013

N/A
    	
 
    	
Pending
    	
 
    	
Rent-A-Center   West, Inc.
    
	
AMERICA’S   HOME OF RENT TO OWN
    	
 
    	
75/161,025

2,125,173
    	
 
    	
8/28/1996

12/30/1997
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
BECAUSE   LIFE SHOULD BE COLORFUL
    	
 
    	
77/314,113

3,719,147
    	
 
    	
10/26/2007

12/1/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
BECAUSE   LIFE SHOULD BE COLORFUL
    	
 
    	
77/314,119

3,719,148
    	
 
    	
10/26/2007

12/1/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
BECAUSE   LIFE SHOULD BE COLORFUL
    	
 
    	
77/314,124

3,750,273
    	
 
    	
10/26/2007

2/16/2010
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
BECAUSE   LIFE SHOULD BE COLORFUL
    	
 
    	
77/314,191

3,722,927
    	
 
    	
10/26/2007

12/8/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
BECAUSE   LIFE SHOULD BE COLORFUL
    	
 
    	
77/314,199

3,722,928
    	
 
    	
10/26/2007

12/8/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
BECAUSE   LIFE SHOULD BE COLORFUL
    	
 
    	
77/314,204

3,722,929
    	
 
    	
10/26/2007

12/8/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
BECAUSE   LIFE SHOULD BE COLORFUL
    	
 
    	
77/314,210

3,722,930
    	
 
    	
10/26/2007

12/8/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
CASH   ADVANTEDGE
    	
 
    	
77/028,108

3,531,518
    	
 
    	
10/24/2006

11/11/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
CASH   ADVANTEDGE & Design
    	
 
    	
77/028,166

3,580,985
    	
 
    	
10/24/2006

2/24/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    


 











 

	
Mark
    	
 
    	
Application No./
   Registration No.
    	
 
    	
Application Date/
   Registration Date
    	
 
    	
Status
    	
 
    	
Owner
    
	
COLORTYME
    	
 
    	
73/290,829

1,216,129
    	
 
    	
12/22/1980

11/9/1982
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
ColorTyme
    	
 
    	
78/571,456

3,276,638
    	
 
    	
2/21/2005

8/7/2007
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
COLORTYME
    	
 
    	
75/029,755

2,048,813
    	
 
    	
12/8/1995

4/1/1997
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
COLORTYME
    	
 
    	
73/290,809

1,191,104
    	
 
    	
12/22/1980

3/2/1982
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
COLORTYME
    	
 
    	
74/470,558

1,872,515
    	
 
    	
12/17/1993

1/10/1995
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
COLORTYME
    	
 
    	
85/444,121

4,405,390
    	
 
    	
10/11/2011

9/24/2013
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
COLORTYME
    	
 
    	
85/466,382

4,157,885
    	
 
    	
11/7/2011

6/12/2012
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
COLORTYME &   Design
    	
 
    	
75/029,756

2,054,385
    	
 
    	
12/8/1995

4/22/1997
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
EASY   PAY NO CREDIT NO PROBLEM & Design (1)
    	
 
    	
77/287,981

3,466,283
    	
 
    	
9/25/2007

7/15/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
GET   IT NOW
    	
 
    	
76/461,852

2,850,252
    	
 
    	
10/28/2002

6/8/2004
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
GET   IT NOW & Design (1)
    	
 
    	
73/234,914

1,302,055
    	
 
    	
10/12/1979

10/23/1984
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc. (2)
    
	
GET   IT NOW! & Design
    	
 
    	
76/461,851

2,850,251
    	
 
    	
10/28/2002

6/8/2004
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
HOME   CHOICE
    	
 
    	
78/981,029

3,659,513
    	
 
    	
4/6/2006

7/21/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
OPERATION:   JUST LIKE HOME
    	
 
    	
85/525,159

4,277,107
    	
 
    	
1/25/2012

1/15/2013
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Texas, L.P.

 
    
	
RAC
    	
 
    	
85/267,791

4,048,564
    	
 
    	
3/15/2011

11/1/2011
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC
    	
 
    	
78/559,090

3,161,654
    	
 
    	
2/2/2005

10/24/2006
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    


 











 

	
Mark
    	
 
    	
Application No./
   Registration No.
    	
 
    	
Application Date/
   Registration Date
    	
 
    	
Status
    	
 
    	
Owner
    
	
RAC &   Design
    	
 
    	
74/038,721

1,667,049
    	
 
    	
3/15/1990

12/3/1991
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC &   Design
    	
 
    	
85/267,817

4,048,565
    	
 
    	
3/15/2011

11/1/2011
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   ACCEPTANCE
    	
 
    	
85/466,418

4,154,196
    	
 
    	
11/7/2011

6/5/2012
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   ACCEPTANCE
    	
 
    	
78/923,518

3,346,229
    	
 
    	
7/6/2006

11/27/2007
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   BENEFITS PLUS
    	
 
    	
78/558,985

3,054,671
    	
 
    	
2/2/2005

1/31/2006
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   FI
    	
 
    	
86/098,572

N/A
    	
 
    	
10/22/2013

N/A
    	
 
    	
Pending
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   FI AND DESIGN
    	
 
    	
86/098,566

N/A
    	
 
    	
10/22/2013

N/A
    	
 
    	
Pending
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   NATIONAL PRODUCT SERVICE
    	
 
    	
78/624,453

3,055,502
    	
 
    	
5/6/2005

1/31/2006
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   RENT-A-CENTER & Design
    	
 
    	
76/477,879

2,876,244
    	
 
    	
12/24/2002

8/24/2004
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   RENT-A-CENTER FURNITURE APPLIANCES ELECTRONICS COMPUTERS & Design   (Button Logo)
    	
 
    	
85/272,496

4,031,722
    	
 
    	
3/21/2011

9/27/2011
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   RENT-A-CENTER FURNITURE APPLIANCES ELECTRONICS COMPUTERS & Design   (Button Logo)
    	
 
    	
85/272,525

4,059,335
    	
 
    	
3/21/2011

11/22/2011
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   WORRY FREE GUARANTEE
    	
 
    	
77/287,249

3,620,129
    	
 
    	
9/24/2007

5/12/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   WORRY FREE GUARANTEE
    	
 
    	
77/287,277

3,620,130
    	
 
    	
9/24/2007

5/12/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    


 











 

	
Mark
    	
 
    	
Application No./
   Registration No.
    	
 
    	
Application Date/
   Registration Date
    	
 
    	
Status
    	
 
    	
Owner
    
	
RAC   WORRY FREE GUARANTEE
    	
 
    	
77/287,308

3,620,131
    	
 
    	
9/24/2007

5/12/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   WORRY FREE GUARANTEE
    	
 
    	
77/287,323

3,623,803
    	
 
    	
9/24/2007

5/19/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   WORRY FREE GUARANTEE
    	
 
    	
77/287,341

3,623,804
    	
 
    	
9/24/2007

5/19/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   WORRY FREE GUARANTEE
    	
 
    	
77/287,216

3,620,128
    	
 
    	
9/24/2007

5/12/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER
    	
 
    	
85/444,100

4,153,948
    	
 
    	
10/11/2011

6/5/2012
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER
    	
 
    	
85/466,404

4,154,195
    	
 
    	
11/7/2011

6/5/2012
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER
    	
 
    	
76/477,880

2,870,944
    	
 
    	
12/24/2002

8/10/2004
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER
    	
 
    	
73/382,791

1,264,550
    	
 
    	
8/30/1982

1/17/1984
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER
    	
 
    	
78/567,643

3,055,184
    	
 
    	
2/15/2005

1/31/2006
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER   SUPER VALUE & Design (circle with dollar sign)
    	
 
    	
77/622,305

3,646,658
    	
 
    	
11/26/2008

6/30/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER   SUPER VALUE & Design (circle with dollar sign)
    	
 
    	
77/622,280

3,646,656
    	
 
    	
11/26/2008

6/30/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER   SUPER VALUE & Design (circle with dollar sign)
    	
 
    	
77/622,334

3,646,663
    	
 
    	
11/26/2008

6/30/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENT-A-CENTER   SUPER VALUE & Design (circle with dollar sign)
    	
 
    	
77/622,326

3,646,662
    	
 
    	
11/26/2008

6/30/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    


 











 

	
Mark
    	
 
    	
Application No./
   Registration No.
    	
 
    	
Application Date/
   Registration Date
    	
 
    	
Status
    	
 
    	
Owner
    
	
RENT-A-CENTER   SUPER VALUE & Design (circle with dollar sign)
    	
 
    	
77/622,315

3,646,661
    	
 
    	
11/26/2008

6/30/2009
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENTERS   CHOICE
    	
 
    	
74/165,881

1,763,556
    	
 
    	
5/13/1991

4/6/1993
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RENTWAY
    	
 
    	
75/139,190

2,094,767
    	
 
    	
7/24/1996

9/9/1997
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   East, Inc.
    
	
RENT-WAY &   Design (Arrow)
    	
 
    	
75/015,035

2,011,934
    	
 
    	
11/6/1995

10/29/1996
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   East, Inc.
    
	
RENTWAY   (Stylized) & Design
    	
 
    	
75/139,176

2,097,244
    	
 
    	
7/24/1996

9/16/1997
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   East, Inc.
    
	
RIMTYME
    	
 
    	
78/893,263

3,341,976
    	
 
    	
5/25/2006

11/20/2007
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
RIMTYME
    	
 
    	
78/893,269

3,341,977
    	
 
    	
5/25/2006

11/20/2007
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
RIMTYME   CUSTOM WHEELS AND TIRES & Design
    	
 
    	
85/323,128

4,166,707
    	
 
    	
5/17/2011

7/3/2012
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
RIMTYME   CUSTOM WHEELS AND TIRES & Design
    	
 
    	
85/323,026

4,083,155
    	
 
    	
5/17/2011

1/10/2012
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    
	
THE   EDGE SIGNATURE LOAN (1)
    	
 
    	
77/007,751

3,310,465
    	
 
    	
9/26/2006

10/16/2007
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
THE   TAX ADVANTEDGE (1)
    	
 
    	
77/049,467

3,534,548
    	
 
    	
11/22/2006

11/18/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
THE   TAX ADVANTEDGE (1)
    	
 
    	
77/049,472

3,534,549
    	
 
    	
11/22/2006

11/18/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
TRS   HOME FURNISHINGS
    	
 
    	
76/587,753

3,075,173
    	
 
    	
4/21/2004

4/4/2006
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    


 











 

	
Mark
    	
 
    	
Application No./
   Registration No.
    	
 
    	
Application Date/
   Registration Date
    	
 
    	
Status
    	
 
    	
Owner
    
	
TRY   IT BEFORE YOU BUY IT
    	
 
    	
75/137,859

2,170,721
    	
 
    	
7/17/1996

7/7/1998
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
WANT   IT. GET IT. FAST. (1)
    	
 
    	
76/601,395

3,454,210
    	
 
    	
7/8/2004

6/24/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
WE   MAKE IT EASY TO MAKE IT YOUR HOME
    	
 
    	
78/970,998

3,490,677
    	
 
    	
9/11/2006

8/19/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
WE   MAKE IT EASY TO MAKE IT YOUR HOME
    	
 
    	
78/971,002

3,538,990
    	
 
    	
9/11/2006

11/25/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
WE   MAKE IT EASY TO MAKE IT YOUR HOME
    	
 
    	
78/971,007

3,490,678
    	
 
    	
9/11/2006

8/19/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
WE   MAKE IT EASY TO MAKE IT YOUR HOME
    	
 
    	
78/971,010

3,490,679
    	
 
    	
9/11/2006

8/19/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
WE   MAKE IT EASY TO MAKE IT YOUR HOME
    	
 
    	
78/971,013

3,490,680
    	
 
    	
9/11/2006

8/19/2008
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
WE   MAKE IT EASY TO MAKE IT YOUR OWN
    	
 
    	
78/835,816

3,201,581
    	
 
    	
3/13/2006

1/23/2007
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
WORRY   FREE GUARANTEE
    	
 
    	
77/736,343

3,891,827
    	
 
    	
5/13/2009

12/21/2010
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   West, Inc.
    
	
YOUR   HOMETOWN COLORTYME
    	
 
    	
78/843,976

3,314,479
    	
 
    	
3/23/2006

10/16/2007
    	
 
    	
Registered
    	
 
    	
Rent-A-Center   Franchising International, Inc.
    


 




(1)           Mark is registered, but not in use, and registration will be allowed to lapse.

 

(2)           The USPTO record reflects a recorded interest in favor of Signal Capital Corporation.

 











 

U.S. COPYRIGHT REGISTRATIONS

 

	
Title
    	
 
    	
Registration No.
    	
 
    	
Registration Date
    	
 
    	
Owner
    
	
Rent-A-Center

Renter   Defender; Rent-A-Center renter defender
    	
 
    	
VA518452
    	
 
    	
July 31,   1992
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RACA   PC Store Systems
    	
 
    	
TXU547160
    	
 
    	
November 2,   1992
    	
 
    	
Rent-A-Center   West, Inc.
    
	
PC   to AS400 High Performance Data File Transfer System
    	
 
    	
TX3237702
    	
 
    	
January 15,   1992
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RACA   PC Store System
    	
 
    	
TXU500938
    	
 
    	
December 30,   1991
    	
 
    	
Rent-A-Center   West, Inc.
    
	
File   Application Special Transfer
    	
 
    	
TX3189508
    	
 
    	
November 8,   1991
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   Revision 3.53
    	
 
    	
TXU471002
    	
 
    	
August 28,   1990
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RACA   PC Store System V353.BAS
    	
 
    	
TXU415494
    	
 
    	
May 5,   1990
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Store   Operations Training: Level 1
    	
 
    	
TXU448124
    	
 
    	
November 29,   1990
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Standards   of Operations
    	
 
    	
TXU445751
    	
 
    	
November 5,   1990
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Standards   of Operations: Evaluator Manual
    	
 
    	
TXU445750
    	
 
    	
November 5,   1990
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Identity   Standards and Usage Guidelines
    	
 
    	
TXU432800
    	
 
    	
August 15,   1990
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   Systems Computer Operations Manual
    	
 
    	
TXU429014
    	
 
    	
July 26,   1990
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Rental   Agreement

Consumer   friendly rental agreement
    	
 
    	
TX2809479
    	
 
    	
May 4,   1990
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RACS   Rev. 3.3
    	
 
    	
TXU376529
    	
 
    	
March 28,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Advanced   Sales Techniques
    	
 
    	
TXU375775
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Rent-A-Center   Selection Interviewing Workshop
    	
 
    	
TXU374311
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Selection   and training manual

Rent-A-Center   selection and training manual
    	
 
    	
TXU374310
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Zone   Certification Manager’s Manual
    	
 
    	
TXU374309
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
General   information manual

Rent-A-Center   general information manual
    	
 
    	
TXU374308
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Sales   and service manual

Rent-A-Center   sales and service manual
    	
 
    	
TXU374307
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Rent-A-Center   Collections Manual
    	
 
    	
TXU374218
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Account   Manager I Certification Packet
    	
 
    	
TXU369577
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Implementation   Kit for Human Resources Planning at Rent-A-Center Inc.
    	
 
    	
TXU369447
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Assistant   Manager Certification Packet
    	
 
    	
TXU369446
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Collections   Skills Workbook: Store Operations Training
    	
 
    	
TXU301483
    	
 
    	
May 7,   1987
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RACS   Rev. 2.30
    	
 
    	
TXU290611
    	
 
    	
July 31,   1987
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RACS   Rev. 3.0
    	
 
    	
TXU290610
    	
 
    	
July 31,   1987
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Store   Operations Training: Sales and Service Workbook
    	
 
    	
TXU281464
    	
 
    	
May 7,   1987
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Macntlin
    	
 
    	
TXU207428
    	
 
    	
August 16,   1985
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Our   10 Commitments to You
    	
 
    	
TX1663355
    	
 
    	
October 11,   1985
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Rent-A-Center   - A Special Place
    	
 
    	
PAU1230331
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Collection   Practices - One to Six Day Accounts
    	
 
    	
PAU1230330
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    


 











 

	
Title
    	
 
    	
Registration No.
    	
 
    	
Registration Date
    	
 
    	
Owner
    
	
The   Basics of Successful Renting and the Sales Track
    	
 
    	
PAU1230329
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Collection   Practices - Seven to Twenty-Nine Day Accounts
    	
 
    	
PAU1230328
    	
 
    	
May 26,   1989
    	
 
    	
Rent-A-Center   West, Inc.
    
	
THORN   Services International - Field Management System V.015
    	
 
    	
TXU676521
    	
 
    	
February 27,   1995
    	
 
    	
Rent-A-Center   West, Inc.
    
	
THORN   Services International - Warranty Claims V.012
    	
 
    	
TXU676519
    	
 
    	
February 27,   1995
    	
 
    	
Rent-A-Center   West, Inc.
    
	
THORN   Services International - Central Parts Procurement System V 3.0
    	
 
    	
TXU676518
    	
 
    	
February 27,   1995
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Credit   Analysis Package
    	
 
    	
TXU830675
    	
 
    	
December 23,   1997
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   Rent-A-Center : Apr./May 04
    	
 
    	
TX6002233
    	
 
    	
July 28,   2004
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   : Rent-A-Center, June-July 11
    	
 
    	
TX6069856
    	
 
    	
August 24,   2004
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC:   Rent-A-Center, July 11-Aug 28
    	
 
    	
TX6069857
    	
 
    	
August 24,   2004
    	
 
    	
Rent-A-Center   West, Inc.
    
	
RAC   : Rent-A-Center, May
    	
 
    	
TX6069858
    	
 
    	
August 24,   2004
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Consumer   Lease Agreement
    	
 
    	
TXU1777399
    	
 
    	
September 29,   2011
    	
 
    	
Rent-A-Center   West, Inc.
    
	
Carpe   Diem 2 / with an introd. by George Fink; compiled by Heidi Beale; edited by   Heidi Beale, Matt Campbell, George Fink... [et al.] ; cover design by Heidi   Beale, Connie Connor and George Fink; cover art by Connie Conner and Kelley   Walker
    	
 
    	
TX3572214
    	
 
    	
March 2,   1993
    	
 
    	
Remco   America, Inc.
    


 

U.S. PATENTS

 

None.

 

INTELLECTUAL PROPERTY LICENSES

 

	
Title
    	
 
    	
Date
    	
 
    	
Licensor
    	
 
    	
Licensee
    
	
Amended   and Restated Trademark License Agreement
    	
 
    	
September 1,   2013
    	
 
    	
Rent-A-Center   West, Inc.
    	
 
    	
Rent-A-Center   Franchising International, Inc. (formerly known as ColorTyme, Inc.)
    
	
Trademark   License Agreement
    	
 
    	
December 31,   2002, 
   as amended December 31, 2004
    	
 
    	
Rent-A-Center   West, Inc.
    	
 
    	
Rent-A-Center   Texas, L.P.
    
	
Trademark   License Agreement
    	
 
    	
December 31,   2002, 
   as amended December 31, 2004
    	
 
    	
Rent-A-Center   West, Inc..
    	
 
    	
Rent-A-Center   East, Inc.
    
	
Trademark   License Agreement
    	
 
    	
April 22,   2005
    	
 
    	
Rent-A-Center   West, Inc.
    	
 
    	
Get   It Now, LLC
    
	
Trademark   License Agreement
    	
 
    	
April 14,   2004
    	
 
    	
Rent-A-Center   West, Inc.
    	
 
    	
RAC   National Product Service, LLC
    


 

Franchise agreements with Rent-A-Center Franchising International, Inc. franchisees Other inter-company licenses

 











 

Schedule 6

 

LETTERS OF CREDIT

 

None.

 











 

Schedule 7

 

COMMERCIAL TORT CLAIMS

 

None.

 












 

Exhibit A to

Guarantee and Collateral Agreement

 

FORM OF ACKNOWLEDGMENT AND CONSENT

 

The undersigned hereby acknowledges receipt of a copy of the Guarantee and Collateral Agreement, dated as of March 19, 2014 (the “Agreement”; capitalized terms used but not defined herein have the meanings given such terms therein), made by the Grantors parties thereto for the benefit of JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) under the Credit Agreement, dated as of March 19, 2014 (as amended, supplemented or modified from time to time, the “Credit Agreement”), among Rent-A-Center, Inc., a Delaware corporation, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement and the Administrative Agent.  The undersigned agrees for the benefit of the Administrative Agent and the Secured Parties as follows:

 

1.                                      The undersigned will be bound by the terms of the Agreement and will comply with such terms insofar as such terms are applicable to the undersigned.

 

2.                                      The undersigned confirms the statements made in the Agreement with respect to the undersigned including, without limitation, in Section 4.7 and Schedule 2.

 

3.                                      The undersigned will notify the Administrative Agent promptly in writing of the occurrence of any of the events described in Section 5.8(a) of the Agreement.

 

4.                                      The terms of Sections 5.8(c), 6.3(c) and 6.7 of the Agreement shall apply to it, mutatis mutandis, with respect to all actions that may be required of it pursuant to Section 5.8(c), 6.3(c) or 6.7 of the Agreement.

 

	
 
    	
[NAME   OF ISSUER]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address   for Notices:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Fax:
    	
 
    
				


 

A-1











 

Exhibit B-1 to

Guarantee and Collateral Agreement

 

FORM OF [COPYRIGHT][PATENT][TRADEMARK] SECURITY AGREEMENT

 

This [COPYRIGHT][PATENT][TRADEMARK] SECURITY AGREEMENT, dated as of [     ], 2014 (as amended, supplemented or otherwise modified from time to time, the “Intellectual Property Security Agreement”), is made by each of the signatories hereto (collectively, the “Grantors”) in favor of JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the Secured Parties (as defined in the Credit Agreement referred to below).

 

WHEREAS, Rent-A-Center, Inc., a Delaware corporation (the “Borrower”) has entered into an Credit Agreement, dated as of March 19, 2014 (as amended, supplemented or modified from time to time, the “Credit Agreement”), among the Borrower, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement and the Administrative Agent.

 

WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have executed and delivered that certain Guarantee and Collateral Agreement, dated as of March 19, 2014 in favor of the Administrative Agent for the benefit of the Secured Parties (as amended, supplemented, replaced or otherwise modified from time to time, the “Guarantee and Collateral Agreement”).

 

WHEREAS, under the terms of the Guarantee and Collateral Agreement, the Grantors have granted a security interest in certain property, including, without limitation, certain Intellectual Property of the Grantors (the “[Copyrights][Patents][Trademarks]”) to the Administrative Agent for the ratable benefit of the Secured Parties, and have agreed as a condition thereof to execute this Intellectual Property Security Agreement for recording with the United States Patent and Trademark Office, the United States Copyright Office, and other applicable Governmental Authorities.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantors agree as follows:

 

SECTION 1.                            Definitions.  Unless otherwise defined herein or the context otherwise requires, terms used in this Intellectual Property Security Agreement, including its preamble and recitals, have the meanings provided or provided by reference in the Credit Agreement or the Guarantee and Collateral Agreement, as applicable.

 

SECTION 2.                            Grant of Security.  Each Grantor hereby pledges and grants to the Administrative Agent for the ratable benefit of the Secured Parties a continuing security interest in and to all of such Grantor’s right, title and interest in the [Copyrights][Patents][Trademarks] listed on Schedule A, as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations.

 

SECTION 3.                            Recordation.  This Intellectual Property Security Agreement has been executed and delivered by Grantor for the purpose of recording the grant of security interest herein with the Register of Copyrights, the Commissioner of Patents and Trademarks and any other applicable government officer.  Each Grantor authorizes and requests that the Register of Copyrights, the Commissioner of Patents and Trademarks and any other applicable government officer record this Intellectual Property Security Agreement.

 

B-1











 

SECTION 4.                            Execution in Counterparts.  This Agreement may be executed in any number of counterparts (including by telecopy), each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

SECTION 5.                            Governing Law.  This Intellectual Property Security Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

 

SECTION 6.                            Conflict Provision.  This Intellectual Property Security Agreement has been entered into in conjunction with the provisions of the Guarantee and Collateral Agreement and the Credit Agreement.  The rights and remedies of each party hereto with respect to the security interest granted herein are without prejudice to and are in addition to those set forth in the Guarantee and Collateral Agreement and the Credit Agreement, all terms and provisions of which are incorporated herein by reference.  In the event that any provisions of this Intellectual Property Security Agreement are in conflict with the Guarantee and Collateral Agreement or the Credit Agreement, the provisions of the Guarantee and Collateral Agreement or the Credit Agreement shall govern.

 

B-2











 

IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security Agreement to be duly executed and delivered as of the date first above written.

 

	
 
    	
[NAME   OF GRANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 

B-3











 

Schedule A

 

[COPYRIGHTS]

 

[PATENTS]

 

[TRADEMARKS]

 

[EXCLUSIVE INTELLECTUAL PROPERTY LICENSES]

 











 

Exhibit B-2 to

Guarantee and Collateral Agreement

 

FORM OF AFTER-ACQUIRED [COPYRIGHT][PATENT][TRADEMARK] SECURITY 

AGREEMENT 

 

([FIRST] SUPPLEMENTAL FILING)

 

This [COPYRIGHT][PATENT][TRADEMARK] SECURITY AGREEMENT ([FIRST] SUPPLEMENTAL FILING), dated as of                , 201_ (as amended, supplemented or otherwise modified from time to time, the “[First] Supplemental Intellectual Property Security Agreement”), is made by each of the signatories hereto (collectively, the “Grantors”) in favor of JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the Secured Parties (as defined in the Credit Agreement referred to below).

 

WHEREAS, Rent-A-Center, Inc., a Delaware corporation (the “Borrower”), has entered into an Credit Agreement, dated as of March 19, 2014 (as amended, supplemented or modified from time to time, the “Credit Agreement”), among the Borrower, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement and the Administrative Agent.

 

WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have executed and delivered that certain Guarantee and Collateral Agreement, dated as of March 19, 2014 in favor of the Administrative Agent for the benefit of the Secured Parties (as amended, supplemented, replaced or otherwise modified from time to time, the “Guarantee and Collateral Agreement”).

 

WHEREAS, under the terms of the Guarantee and Collateral Agreement, the Grantors have granted a security interest in certain property, including, without limitation, certain Intellectual Property, including but not limited to After-Acquired Intellectual Property of the Grantors (the “[Copyrights][Patents][Trademarks]”) to the Administrative Agent for the ratable benefit of the Secured Parties, and have agreed as a condition thereof to execute this [First] Supplemental Intellectual Property Security Agreement for recording with the United States Patent and Trademark Office, the United States Copyright Office, and other applicable Governmental Authorities.

 

WHEREAS, the Intellectual Property Security Agreement was recorded against certain United States Intellectual Property at [INSERT REEL/FRAME NUMBER] [IF SECOND OR LATER SUPPLEMENTAL, ADD PRIOR REEL/FRAME NUMBERS].

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantors agree as follows:

 

SECTION 1.                            Definitions.  Unless otherwise defined herein or the context otherwise requires, terms used in this Intellectual Property Security Agreement, including its preamble and recitals, have the meanings provided or provided by reference in the Credit Agreement or the Guarantee and Collateral Agreement, as applicable.

 

SECTION 2.                            Grant of Security.  Each Grantor hereby pledges and grants to the Administrative Agent for the ratable benefit of the Secured Parties a continuing security interest in and to all of such Grantor’s right, title and interest in the [Copyrights][Patents][Trademarks] listed on Schedule A, as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

 

B-2-1











 

SECTION 3.                            Recordation.  This Intellectual Property Security Agreement has been executed and delivered by Grantor for the purpose of recording the grant of security interest herein with the Register of Copyrights, the Commissioner of Patents and Trademarks and any other applicable government officer.  Each Grantor authorizes and requests that the Register of Copyrights, the Commissioner of Patents and Trademarks and any other applicable government officer record this [First] Supplemental Intellectual Property Security Agreement.

 

SECTION 4.                            Execution in Counterparts.  This Agreement may be executed in any number of counterparts (including by telecopy), each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

SECTION 5.                            Governing Law.  This [First] Supplemental Intellectual Property Security Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

 

SECTION 6.                            Conflict Provision.  This [First] Supplemental Intellectual Property Security Agreement has been entered into in conjunction with the provisions of the Guarantee and Collateral Agreement and the Credit Agreement.  The rights and remedies of each party hereto with respect to the security interest granted herein are without prejudice to, and are in addition to those set forth in the Guarantee and Collateral Agreement and the Credit Agreement, all terms and provisions of which are incorporated herein by reference.  In the event that any provisions of this [First] Supplemental Intellectual Property Security Agreement are in conflict with the Guarantee and Collateral Agreement or the Credit Agreement, the provisions of the Guarantee and Collateral Agreement or the Credit Agreement shall govern.

 

B-2-2











 

IN WITNESS WHEREOF, each of the undersigned has caused this [First] Supplemental Intellectual Property Security Agreement to be duly executed and delivered as of the date first above written.

 

	
 
    	
[NAME   OF GRANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 

B-2-3











 

Schedule A

 

[COPYRIGHTS]

 

[PATENTS]

 

[TRADEMARKS]

 

[EXCLUSIVE INTELLECTUAL PROPERTY LICENSES]

 












 

Exhibit C to
 Guarantee and Collateral Agreement

 

FORM OF CONTROL AGREEMENT

 

This CONTROL AGREEMENT (as amended, supplemented or otherwise modified from time to time, the “Control Agreement”) dated as of                      , 201  , is made by and among                               , a                      (the “Grantor”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the Secured Parties (as defined in the Guarantee and Collateral Agreement referred to below), and                         , a                          (the “Issuer”).

 

WHEREAS, the Grantor has granted to the Administrative Agent for the benefit of the Secured Parties a security interest in the uncertificated securities of the Issuer owned by the Grantor from time to time (collectively, the “Pledged Securities”), and all additions thereto and substitutions and proceeds thereof (collectively, with the Pledged Securities, the “Collateral”) pursuant to an Guarantee and Collateral Agreement, dated as of March 19, 2014 (as amended, supplemented, replaced or otherwise modified from time to time, the “Guarantee and Collateral Agreement”), among the Grantor and the other persons party thereto as grantors in favor of the Administrative Agent for the benefit of the Secured Parties.

 

WHEREAS, the following terms which are defined in Articles 8 and 9 of the Uniform Commercial Code in effect in the State of New York on the date hereof (the “UCC”) are used herein as so defined:  Adverse Claim, Control, Instruction, Proceeds and Uncertificated Security.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.                  Notice of Security Interest.  The Grantor, the Administrative Agent and the Issuer are entering into this Control Agreement to perfect, and to confirm the priority of, the Administrative Agent’s security interest in the Collateral.  The Issuer acknowledges that this Control Agreement constitutes written notification to the Issuer of the Administrative Agent’s security interest in the Collateral.  The Issuer agrees to promptly make all necessary entries or notations in its books and records to reflect the Administrative Agent’s security interest in the Collateral and, upon request by the Administrative Agent, to register the Administrative Agent as the registered owner of any or all of the Pledged Securities.  The Issuer acknowledges that the Administrative Agent has control over the Collateral.

 

SECTION 2.                  Collateral.  The Issuer hereby represents and warrants to, and agrees with the Grantor and the Administrative Agent that (i) the terms of any limited liability company interests or partnership interests included in the Collateral from time to time shall expressly provide that they are securities governed by Article 8 of the Uniform Commercial Code in effect from time to time in the State of [                    ],  (ii) the Pledged Securities are uncertificated securities, (iii) the issuer’s jurisdiction is, and during the term of this Control Agreement shall remain, the State of [                        ], (iv) Schedule 1 contains a true and complete description of the Pledged Securities as of the date hereof and (v) except for the claims and interests of the Administrative Agent and the Grantor in the Collateral, the Issuer does not know of any claim to or security interest or other interest in the Collateral.

 

SECTION 3.                  Control.  The Issuer hereby agrees, upon written direction from the Administrative Agent who shall have provided the Grantor with written notice to such written direction to the Issuer, and without further consent from the Grantor, (a) to comply with all instructions and directions

 

C-1











 

of any kind originated by the Administrative Agent concerning the Collateral, to liquidate or otherwise dispose of the Collateral as and to the extent directed by the Administrative Agent and to pay over to the Administrative Agent all proceeds without any setoff or deduction, and (b) except as otherwise directed by the Administrative Agent, not to comply with the instructions or directions of any kind originated by the Grantor or any other person.

 

SECTION 4.                  Other Agreements.  The Issuer shall notify promptly the Administrative Agent and the Grantor if any other person asserts any lien, encumbrance, claim (including any adverse claim) or security interest in or against any of the Collateral.  In the event of any conflict between the provisions of this Control Agreement and any other agreement governing the Pledged Securities or the Collateral, the provisions of this Control Agreement shall control.

 

SECTION 5.                  Protection of Issuer.  The Issuer may rely and shall be protected in acting upon any notice, instruction or other communication that it reasonably believes to be genuine and authorized.

 

SECTION 6.                  Termination.  This Control Agreement shall terminate automatically upon receipt by the Issuer of written notice executed by the Administrative Agent.

 

SECTION 7.                  Notices.  All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, to the Grantor’s and the Administrative Agent’s addresses as set forth in the Guarantee and Collateral Agreement, and to the Issuer’s address as set forth below, or to such other address as any party may give to the others in writing for such purpose:

 

[Name of Issuer]

[Address of Issuer]

Attention:                                         

Telephone: (     )      -                       

Telecopy:  (     )      -                        

 

SECTION 8.                  Amendments in Writing.  None of the terms or provisions of this Control Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the parties hereto.

 

SECTION 9.                  Entire Agreement.  This Control Agreement and the Guarantee and Collateral Agreement constitute the entire agreement and supersede all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.

 

SECTION 10.           Execution in Counterparts.  This Control Agreement may be executed in any number of counterparts (including by telecopy), each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

SECTION 11.           Successors and Assigns.  This Control Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that the Grantor may not assign, transfer or delegate any of its rights or obligations under this Control Agreement without the prior written consent of the Administrative Agent.

 

C-2











 

SECTION 12.           Governing Law and Jurisdiction.  This Control Agreement has been delivered to and accepted by the Administrative Agent and will be deemed to be made in the State of New York.  THIS CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  Each of the parties hereto submits for itself and its property in any legal action or proceeding relating to this Control Agreement, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof.

 

SECTION 13.        WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

C-3











 

IN WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be duly executed and delivered as of the date first above written.

 

	
 
    	
[NAME   OF GRANTOR]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JPMORGAN   CHASE BANK, N.A., as Administrative Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[NAME   OF ISSUER]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 

C-4











 

Annex 1 to
 Guarantee and Collateral Agreement

 

ASSUMPTION AGREEMENT, dated as of                         ,  201    , made by                                             , a                                (the “Additional Grantor”), in favor of JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for (i) the banks and other financial institutions and entities (the “Lenders”) parties to the Credit Agreement referred to below, and (ii) the other Secured Parties (as defined in the Guarantee and Collateral Agreement (as hereinafter defined)).  All capitalized terms not defined herein shall have the meaning ascribed to them in such Credit Agreement.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, Rent-A-Center, Inc. (the “Borrower”), the Lenders and the Administrative Agent have entered into an Credit Agreement dated as of March 19, 2014 (as amended, supplemented or modified from time to time, the “Credit Agreement”), among the Borrower, the Lenders and the Administrative Agent;

 

WHEREAS, in connection with the Credit Agreement, the Borrower and certain of its Subsidiaries (other than the Additional Grantor) have entered into the Guarantee and Collateral Agreement, dated as of March 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Guarantee and Collateral Agreement”) in favor of the Administrative Agent for the benefit of the Secured Parties;

 

WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the Guarantee and Collateral Agreement; and

 

WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Guarantee and Collateral Agreement;

 

NOW, THEREFORE, IT IS AGREED:

 

1.              Guarantee and Collateral Agreement.  By executing and delivering this Assumption Agreement, the Additional Grantor, as provided in Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor and Guarantor thereunder as of the date hereof and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Grantor and Guarantor thereunder.  The information set forth in Annex 1-A hereto is hereby added to the information set forth in Schedules 1 to 7 to the Guarantee and Collateral Agreement.  The Additional Grantor hereby represents and warrants that each of the representations and warranties contained in Section 4 of the Guarantee and Collateral Agreement is true and correct on and as the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such date (except for representations and warranties expressly stated to relate to a specific earlier date).

 

2.              GOVERNING LAW.  THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written.

 











 

	
 
    	
[ADDITIONAL   GRANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 

2











 

Annex 1-A

 

SUPPLEMENTAL INFORMATION