Exhibit 10.23

 

ASSUMPTION AGREEMENT

 

ASSUMPTION AGREEMENT, dated as of February 6, 2014, made by HD SUPPLY FM SERVICES, LLC, a Delaware limited liability company (the “Additional Grantor”), in favor of WILMINGTON TRUST, NATIONAL ASSOCIATION, as collateral agent (in such capacity, the “Note Collateral Agent”) for the Secured Parties (as defined in the First Lien Collateral Agreement referred to below).  All capitalized terms not defined herein shall have the meaning ascribed to them in the First Lien Collateral Agreement referred to below.

 

W I T N E S S E T H :

 

WHEREAS, HD Supply, Inc., a Delaware corporation (“the “Company”), the Subsidiary Guarantors from time to time party thereto, and Wilmington Trust, National Association, as indenture trustee (in such capacity, and together with any successors and assigns in such capacity, the “Trustee”) on behalf of the Holders (as defined in the First Lien Indenture) and as Note Collateral Agent, are parties to a First Lien Indenture, dated as of April 12, 2012 (as amended by that First Supplemental Indenture, dated as of April 12, 2012, and as the same may be further amended, amended and restated, waived, supplemented or otherwise, modified from time to time, the “First Lien Indenture”);

 

WHEREAS, in connection with the First Lien Indenture, the Company and certain of its Subsidiaries are, or are to become, parties to the First Lien Collateral Agreement, dated as of April 12, 2012 (as amended, supplemented, waived or otherwise modified from time to time, the “First Lien Collateral Agreement”), in favor of the Note Collateral Agent, for the benefit of the Secured Parties;

 

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

 

WHEREAS, the First Lien Indenture requires the Additional Grantor to become a party to the First Lien Collateral Agreement; and

 

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

 

NOW, THEREFORE, IT IS AGREED:

 

1.             First Lien Collateral Agreement.  By executing and delivering this Assumption Agreement, the Additional Grantor, as provided in subsection 9.15 of the First Lien Collateral Agreement, hereby becomes a party to the First Lien Collateral Agreement as a Grantor thereunder with the same force and effect as if originally named therein as a Grantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Grantor thereunder.  The information set forth in Annex 1-A hereto is hereby added to the information set forth in Schedules 1, 3 and 4 to the First Lien Collateral Agreement, and such Schedules are hereby amended and modified to include such information.  The Additional Grantor hereby represents and warrants that each of the representations and warranties of such Additional Grantor, in its capacities as a Grantor contained in Section 4 of the First Lien Collateral Agreement is true and correct in all material respects on and as the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such date.  The Additional Grantor hereby grants, as and to the same extent as provided in the First Lien Collateral Agreement, to the Note Collateral Agent, for the benefit of the Secured Parties, a continuing security interest in the Collateral (as such term is defined in subsection 3.1 of the First Lien Collateral Agreement) of the Additional Grantor, except as provided in subsection 3.3 of the First Lien Collateral Agreement.

 

1











 

2.             GOVERNING LAW.  THIS ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

2











 

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

 

	
 
    	
HD   SUPPLY FM SERVICES, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ricardo Nunez
    
	
 
    	
 
    	
Name:
    	
Ricardo   Nunez
    
	
 
    	
 
    	
Title:
    	
Vice   President and Secretary
    


 

[Signature Page to Assumption Agreement (First Lien Notes)]

 











 

	
Acknowledged and Agreed to as
    
	
of the date hereof by:
    
	
 
    
	
WILMINGTON TRUST, NATIONAL ASSOCIATION,
    
	
as Note Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Lynn M. Steiner
    	
 
    
	
 
    	
Name:
    	
Lynn   M. Steiner
    	
 
    
	
 
    	
Title:
    	
Vice   President
    	
 
    


 

[Signature Page to Assumption Agreement (First Lien Notes)]

 











 

Annex 1-A to
  Assumption Agreement

 

Supplement to
 First Lien Collateral Agreement
  Schedule 1

 

	
HD   Supply FM Services, LLC
    
	
3100   Cumberland Boulevard,
    
	
Suite 1700
    
	
Atlanta,   GA 30339
    
	
Attention:   Ricardo Nunez
    
	
Telephone:   (770) 852-9321
    
	
 
    
	
with   copies to
    
	
 
    
	
Debevoise &   Plimpton LLP
    
	
919   Third Avenue
    
	
New   York, New York 10022
    
	
Attention:   Paul Brusiloff, Esq.
    
	
Facsimile:   (212) 521-7015
    
	
Telephone:   (212) 909-6000
    


 

Supplement to
 First Lien Collateral Agreement
  Schedule 3

 

UCC Filings

 

	
Granting Party
    	
 
    	
State
    	
 
    	
Filing Office
    	
 
    	
Document Filed
    
	
HD   Supply FM Services, LLC
    	
 
    	
Delaware
    	
 
    	
Secretary   of State
    	
 
    	
UCC-1   Financial Statement
    


 

Supplement to
 First Lien Collateral Agreement
  Schedule 4

 

	
Legal Name
    	
 
    	
Jurisdiction of Organization
    
	
HD   Supply FM Services, LLC
    	
 
    	
Delaware
    


 

1-A-1