Exhibit 4.3

 

AMENDED AND RESTATED PLEDGE AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AGREEMENT, dated as of August 11, 2015 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the provisions hereof and of each First Lien Agreement (as defined below), this “Pledge Agreement”) is hereby entered into among First Data Corporation, a Delaware corporation (the “Company”), each of the Subsidiaries of the Company listed on the signature pages hereto or that becomes a party hereto pursuant to Section 9 (each such Subsidiary being a “Subsidiary Pledgor” and, collectively, the “Subsidiary Pledgors”; the Subsidiary Pledgors and the Company are referred to collectively as the “Pledgors”) and Wells Fargo Bank, National Association, in its capacity as collateral agent (in such capacity and together with any successors in such capacity, the “Collateral Agent”), pursuant to each First Lien Agreement (as amended, amended and restated, supplemented or otherwise modified from time to time) defining the rights of the holders of Obligations (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to Section 9.01 of each of the Existing First Lien Agreements (as defined below), this Pledge Agreement amends and restates the Pledge Agreement, dated as of August 20, 2010 (the “Original Pledge Agreement”), among the Pledgors and the Collateral Agent;

 

WHEREAS, each Guarantor (as defined in the Existing First Lien Agreements) has, pursuant to the guarantee provisions under each applicable First Lien Agreement, unconditionally guaranteed the Obligations;

 

WHEREAS, each Pledgor has received substantial benefits from the proceeds of the Obligations existing on the date hereof and will receive substantial benefits from future Obligations and each is, therefore, willing to be a party to this Pledge Agreement;

 

WHEREAS, this Pledge Agreement is given by each Pledgor in favor of the Collateral Agent for the benefit of the Secured Parties (as defined in the Amended and Restated Security Agreement, dated as of August 11, 2015 (the “Security Agreement”), among the Company, the Subsidiary Grantors named therein and the Collateral Agent) to secure the payment and performance of all of the Obligations;

 

WHEREAS, in order to secure the obligations under the Senior Credit Facility, the Pledgors have also granted to the administrative agent for the benefit of the holders of the obligations under the Senior Credit Facility, a first priority security interest in the Collateral (as defined below) (subject to certain priorities upon realization of any value from the Collateral as set forth in the Intercreditor Agreement (as defined in the Security Agreement));

 

WHEREAS, from time to time after the date hereof, the Company may, subject to the terms and conditions of the First Lien Agreements and the Security Documents, incur Additional First Lien Obligations (as defined below), that the Company desires to secure by the

 











 

Collateral on a pari passu basis with the Obligations existing prior to the incurrence of such Additional First Lien Obligations;

 

WHEREAS, each Subsidiary Pledgor is a Subsidiary of the Company; and

 

WHEREAS, (a) the Pledgors are the legal and beneficial owners of the Equity Interests, described in Schedule 1 hereto and issued by the entities named therein (the pledged Equity Interests are, together with any Equity Interests of the issuer of such Equity Interests or any other Subsidiary directly held by any Pledgor in the future (the “After-acquired Shares”), in each case, except to the extent excluded from the Collateral for the applicable Obligations pursuant to the last paragraph of Section 2 below, referred to collectively herein as the “Pledged Shares”) and (b) each of the Pledgors is the legal and beneficial owner of the Indebtedness described in Schedule 1 hereto (together with any other Indebtedness owed to any Pledgor hereafter and required to be pledged pursuant to the First Lien Agreements, the “Pledged Debt”);

 

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Pledgor and the Collateral Agent hereby agree to amend and restate the Original Pledge Agreement in its entirety as follows:

 

1.                                      Defined Terms.

 

(a)                                 Unless otherwise defined herein, terms defined in the Indenture (as defined in the Security Agreement) and used herein shall have the meanings given to them in the Indenture.

 

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

 

“Additional First Lien Agreement” shall have the meaning assigned to such term in the Security Agreement.

 

“Additional First Lien Obligations” shall have the meaning assigned to such term in the Security Agreement.

 

“Collateral” shall have the meaning provided in Section 2.

 

“Existing First Lien Agreements” shall have the meaning assigned to such term in the Security Agreement.

 

“First Lien Agreements” shall have the meaning assigned to such term in the Security Agreement.

 

“First Lien Documents” shall have the meaning assigned to such term in the Security Agreement.

 

“Obligations” shall have the meaning assigned to such term in the Security Agreement.

 

2











 

“Original Pledge Agreement” shall have the meaning assigned to such term in the preamble hereof.

 

“Proceeds” and any other term used herein or in other First Lien Documents without definition that is defined in the UCC has the meaning given to it in the UCC.

 

“Secured Parties” shall have the meaning assigned to such term in the Security Agreement.

 

As used herein, the term “Equity Interests” shall mean, collectively, Stock and Stock Equivalents (each as defined in the Security Agreement).

 

As used herein, the term “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the State of New York; provided, however, that, in the event that, by reason of mandatory provisions of law, any of the attachment, perfection or priority of the Collateral Agent’s and the Secured Parties’ security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions

 

(c)                                  The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Pledge Agreement shall refer to this Pledge Agreement as a whole and not to any particular provision of this Pledge Agreement, and Section references are to Sections of this Pledge Agreement unless otherwise specified.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.

 

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

 

2.                                      Grant of Security.  Each Pledgor hereby transfers, assigns and pledges to the Collateral Agent, for the benefit of the Secured Parties, and grants to the Collateral Agent, for the benefit of the Secured Parties and confirms its prior grant to the Collateral Agent for the benefit of the Secured Parties of, a lien on and a security interest in (the “Security Interest”) all of such Pledgor’s right, title and interest in, to and under the following, whether now owned or existing or at any time hereafter acquired or existing (collectively, the “Collateral”):

 

(a)                                 the Pledged Shares held by such Pledgor and the certificates representing such Pledged Shares and any interest of such Pledgor in the entries on the books of the issuer of the Pledged Shares or any financial intermediary pertaining to the Pledged Shares and all dividends, cash, warrants, rights, instruments 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 the Pledged Shares.

 

(b)                                 the Pledged Debt and the instruments evidencing the Pledged Debt owed to such Pledgor, and all interest, cash, instruments 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 Pledged Debt; and

 

3











 

(c)                                  to the extent not covered by clauses (a) and (b) above, respectively, all Proceeds of any or all of the foregoing Collateral.

 

This Pledge Agreement amends and restates the Original Pledge Agreement. The obligations of the Grantors under the Original Pledge Agreement and the grant of security interest in the Collateral by the Pledgors under the Original Pledge Agreement shall continue under this Pledge Agreement, and shall not in any event be terminated, extinguished or annulled, but shall hereafter be governed by this Pledge Agreement. All references to the Pledge Agreement in any First Lien Document shall be deemed to refer to this Pledge Agreement and the provisions hereof.  To the extent applicable, the Pledgors hereby acknowledge, confirm and agree that any pledge of Collateral and any delivery of any instruments related to such pledge previously made in favor of the Collateral Agent under the Original Pledge Agreement are in full force and effect as of the date hereof and effectuate the perfection of the security interests granted under this Pledge Agreement.  For the avoidance of doubt, all Security Interests in the Collateral granted with respect to the Original Pledge Agreement will be deemed granted with respect to this Pledge Agreement at the same time and in the same manner as they were granted under the Original Pledge Agreement, and nothing in this Pledge Agreement shall be construed to impair any previous grant of such Security Interests in the Collateral.

 

Notwithstanding the foregoing, the Collateral for the Obligations shall not include any Excluded Stock and Stock Equivalents (as defined in the Security Agreement), nor shall it include any of the following:

 

(i)                                     any Stock (as defined in the Security Agreement) and other securities of a Subsidiary to the extent that the pledge of such Stock and other securities would result in the Company being required to file separate financial statements of such Subsidiary with the Securities and Exchange Commission (the “SEC”), but only to the extent necessary to not be subject to such requirement and only for so long as such requirement is in existence and only with respect to the relevant Obligations affected; provided that neither the Company nor any Subsidiary shall take any action in the form of a reorganization, merger or other restructuring a principal purpose of which is to provide for the release of the Lien on any Stock pursuant to this clause (i).  In addition, in the event that Rule 3-16 of Regulation S-X under the Securities Act of 1933, as amended (“Rule 3-16”), is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other Governmental Authority (as defined in the Security Agreement)) of separate financial statements of any Subsidiary of the Company due to the fact that such Subsidiary’s Stock secures the Obligations affected thereby, then the Stock of such Subsidiary will automatically be deemed not to be part of the Collateral securing the relevant Obligations affected thereby but only to the extent necessary to not be subject to such requirement and only for so long as required to not be subject to such requirement.  In such event, this Pledge Agreement may be amended or modified, without the consent of any Secured Party, to the extent necessary to release the Security Interests in favor of the Collateral Agent on the shares of Stock that are so deemed to no longer constitute part of the Collateral for the relevant Obligations only.  In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would

 

4











 

permit) such Subsidiary’s Stock to secure the Obligations in excess of the amount then pledged without the filing with the SEC (or any other Governmental Authority) of separate financial statements of such Subsidiary, then the Stock of such Subsidiary will automatically be deemed to be a part of the Collateral for the relevant Obligations.  For the avoidance of doubt and notwithstanding anything to the contrary in this Security Agreement, nothing in this clause (i) shall limit the pledge of such Stock and other securities from securing the Credit Agreement Obligations (as defined in the Security Agreement) at all times or from securing any Obligations that are not in respect of securities subject to regulation by the SEC.

 

3.                                      Security for Obligations.  This Pledge Agreement secures the payment of all the Obligations of each Pledgor.  Without limiting the generality of the foregoing, this Pledge Agreement secures the payment of all amounts that constitute part of the Obligations and would be owed by any of the Pledgors to the Secured Parties under the First Lien Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving any Pledgor.

 

4.                                      Delivery of the Collateral.  Subject to the terms of the Intercreditor Agreement, all certificates or instruments, if any, representing or evidencing the Collateral shall be promptly delivered to and held by or on behalf of the Collateral Agent pursuant hereto to the extent required by the First Lien Agreements and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Collateral Agent.  Subject to the terms of the Intercreditor Agreement, the Collateral Agent shall have the right, at any time after the occurrence and during the continuance of an Event of Default and with notice to the relevant Pledgor, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Pledged Shares.  Each delivery of Collateral (including any After-acquired Shares) shall be accompanied by a notice to the Collateral Agent describing the securities theretofore and then being pledged hereunder.

 

5.                                      Representations and Warranties.  Each Pledgor represents and warrants as follows:

 

(a)                                 Schedule 1 hereto (i) correctly represents as the date hereof (A) the issuer, the certificate number, the Pledgor and the record and beneficial owner, the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Pledged Shares and (B) the issuer, the initial principal amount, the Pledgor and holder, date of issuance and maturity date of all Pledged Debt and (ii) together with the comparable schedule to each supplement hereto, includes all Equity Interests, debt securities and promissory notes required to be pledged hereunder.  Except as set forth on Schedule 1, and except for Excluded Stock and Stock Equivalents, the Pledged Shares represent all (or 65% in the case of pledges of the Voting Stock of Foreign Subsidiaries) of the issued and outstanding Equity Interests of each class of Equity Interests in the issuer on the date hereof.

 

5











 

(b)                                 Such Pledgor is the legal and beneficial owner of the Collateral pledged or assigned by such Pledgor hereunder free and clear of any Lien, except for Permitted Liens and the Lien created by this Pledge Agreement.

 

(c)                                  As of the date hereof, the Pledged Shares pledged by such Pledgor hereunder have been duly authorized and validly issued and, in the case of Pledged Shares issued by a corporation, are fully paid and non-assessable.

 

(d)                                 The execution and delivery by such Pledgor of this Pledge Agreement and the pledge of the Collateral pledged by such Pledgor hereunder pursuant hereto create a legal, valid and enforceable security interest in such Collateral to the extent the creation of such security interest in the Stock of Foreign Subsidiaries is governed by the UCC and, upon delivery of such Collateral to the Collateral Agent in the State of New York, shall constitute a fully perfected Lien on and security interest in the Collateral, securing the payment of the Obligations, in favor of the Collateral Agent for the benefit of the Secured Parties to the extent the creation and perfection of such security interest in the stock of Foreign Subsidiaries is governed by the UCC, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity. For the avoidance of doubt, nothing in this Pledge Agreement shall be construed to impair in any manner any previous perfections obtained with respect to the security interests in the Collateral pursuant to the Original Pledge Agreement.

 

(e)                                  Such Pledgor has full power, authority and legal right to pledge all the Collateral pledged by such Pledgor pursuant to this Pledge Agreement, and this Pledge Agreement constitutes a legal, valid and binding obligation of each Pledgor to the extent the creation and perfection of such security interest in the Stock of the Foreign Subsidiaries is governed by the UCC, enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity.

 

6.                                      Certification of Limited Liability Company, Limited Partnership Interests, Equity Interests in Foreign Subsidiaries and Pledged Debt.

 

(a)                                 In the event that any Equity Interests in any Subsidiary that is organized as a limited liability company or limited partnership and pledged hereunder shall be represented by a certificate, the applicable Pledgor shall cause the issuer of such interests to elect to treat such interests as a “security” within the meaning of Article 8 of the UCC of its jurisdiction of organization or formation, as applicable, by including in its organizational documents language substantially similar to the following and, accordingly, such interests shall be governed by Article 8 of the UCC of its jurisdiction of organization:

 

“The Partnership/Company hereby irrevocably elects that all membership interests in the Partnership/Company shall be securities governed by Article 8 of the Uniform Commercial Code of [jurisdiction of organization or formation, as applicable].  Each certificate evidencing partnership/membership interests in the Partnership/Company shall bear the following legend:  “This certificate evidences

 

6











 

an interest in [name of Partnership/LLC] and shall be a security for purposes of Article 8 of the Uniform Commercial Code.”  No change to this provision shall be effective until all outstanding certificates have been surrendered for cancellation and any new certificates thereafter issued shall not bear the foregoing legend.”

 

(b)                                 The Company agrees that all Indebtedness in excess of $10,000,000 of any Pledgor or any Subsidiary thereof that is owing to the Company or any Subsidiary Pledgor shall be evidenced by one or more promissory notes.

 

(c)                                  In the event that any Equity Interests in any Foreign Subsidiary pledged hereunder are not represented by a certificate, the Pledgors agree not to permit such Foreign Subsidiary to issue Equity Interests represented by a certificate to any other Person.

 

7.                                      Further Assurances.  Each Pledgor agrees that at any time and from time to time, at the expense of such Pledgor, it will execute or otherwise authorize the filing of any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements, fixture filings, mortgages, deeds of trust and other documents), which may be required under any applicable law, or which, the Collateral Agent may reasonably request, in order (x) to perfect and protect any pledge, assignment or security interest granted or purported to be granted hereby (including the priority thereof) or (y) to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral. Each Pledgor agrees that, in the event any Pledgor takes any action to grant or perfect a Lien in favor of the Credit Agreement Collateral Agent in any assets, such Pledgor shall also take such action to grant or perfect a Lien in favor of the Collateral Agent to secure the Obligations, whether or not such action was requested by the Collateral Agent.

 

8.                                      Voting Rights; Dividends and Distributions; Etc.

 

(a)                                 So long as no Event of Default shall have occurred and be continuing:

 

(i)                                     Each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral or any part thereof for any purpose not prohibited by the terms of this Pledge Agreement, the other First Lien Documents or any Additional First Lien Agreement.

 

(ii)                                  The Collateral Agent shall execute and deliver (or cause to be executed and delivered) to each Pledgor all such proxies and other instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above.

 

(b)                                 Subject to paragraph (c) below, each Pledgor shall be entitled to receive and retain and use, free and clear of the Lien created by this Pledge Agreement, any and all dividends, distributions, principal and interest made or paid in respect of the Collateral to the extent permitted by each First Lien Agreement, as applicable; provided, however, that any and all noncash dividends, interest, principal or other distributions that would constitute Pledged Shares or Pledged Debt, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Shares or received in exchange for

 

7











 

Pledged Shares or Pledged Debt or any part thereof, or in redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be, and shall be forthwith delivered to the Collateral Agent to hold as, Collateral and shall, if received by such Pledgor, be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of such Pledgor and be forthwith delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary endorsement).

 

(c)                                  Subject to the terms of the Intercreditor Agreement, upon written notice to a Pledgor by the Collateral Agent following the occurrence and during the continuance of an Event of Default,

 

(i)                                     all rights of such Pledgor to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 8(a)(i) shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights during the continuance of such Event of Default, provided that, the Collateral Agent shall have the right from time to time following the occurrence and during the continuance of an Event of Default to permit the Pledgors to exercise such rights.  After all Events of Default have been cured or waived, each Pledgor will have the right to exercise the voting and consensual rights that such Pledgor would otherwise be entitled to exercise pursuant to the terms of Section 8(a)(i) (and the obligations of the Collateral Agent under Section 8(a)(ii) shall be reinstated);

 

(ii)                                  all rights of such Pledgor to receive the dividends, distributions and principal and interest payments that such Pledgor would otherwise be authorized to receive and retain pursuant to Section 8(b) shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to receive and hold as Collateral such dividends, distributions and principal and interest payments during the continuance of such Event of Default.  After all Events of Default have been cured or waived, the Collateral Agent shall repay to each Pledgor (without interest) all dividends, distributions and principal and interest payments that such Pledgor would otherwise be permitted to receive, retain and use pursuant to the terms of Section 8(b);

 

(iii)                               all dividends, distributions and principal and interest payments that are received by such Pledgor contrary to the provisions of Section 8(b) shall be received in trust for the benefit of the Collateral Agent shall be segregated from other property or funds of such Pledgor and shall forthwith be delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary endorsements); and

 

(iv)                              in order to permit the Collateral Agent to receive all dividends, distributions and principal and interest payments to which it may be entitled under Section 8(b) above, to exercise the voting and other consensual rights that it may be entitled to exercise pursuant to Section 8(c)(i) above, and to receive all dividends, distributions and principal and interest payments that it may be entitled to under Sections 8(c)(ii) and (c)(iii) above, such Pledgor shall from time to time execute and deliver to the

 

8











 

Collateral Agent, appropriate proxies, dividend payment orders and other instruments as the Collateral Agent may reasonably request in writing.

 

9.                                      Transfers and Other Liens; Additional Collateral; Etc.  Each Pledgor shall:

 

(a)                                 not (i) except as permitted by each First Lien Agreement and the Intercreditor Agreement, sell or otherwise dispose of, or grant any option or warrant with respect to, any of the Collateral or (ii) create or suffer to exist any consensual Lien upon or with respect to any of the Collateral, except for the Lien created by this Pledge Agreement, provided that in the event such Pledgor sells or otherwise disposes of assets as permitted by each First Lien Agreement and the Intercreditor Agreement, and such assets are or include any of the Collateral, upon the request of the applicable Pledgor the Collateral Agent shall release such Collateral to such Pledgor free and clear of the Lien created by this Pledge Agreement concurrently with the consummation of such sale;

 

(b)                                 pledge and, if applicable, cause each Subsidiary to pledge, to the Collateral Agent for the benefit of the Secured Parties, immediately upon acquisition thereof, all the Equity Interests and all evidence of Indebtedness held or received by such Pledgor or Subsidiary required to be pledged hereunder pursuant to each First Lien Agreement, in each case pursuant to a supplement to this Pledge Agreement substantially in the form of Annex A hereto (it being understood that the execution and delivery of such a supplement shall not require the consent of any Pledgor hereunder and that the rights and obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary Pledgor as a party to this Pledge Agreement); and

 

(c)                                  defend its and the Collateral Agent’s title or interest in and to all the Collateral (and in the Proceeds thereof) against any and all Liens (other than Permitted Liens and the Lien created by this Pledge Agreement), however arising, and any and all Persons whomsoever.

 

10.                               Collateral Agent Appointed Attorney-in-Fact.  Each Pledgor hereby appoints, which appointment is irrevocable and coupled with an interest, the Collateral Agent as such Pledgor’s attorney-in-fact, with full authority in the place and stead of such Pledgor and in the name of such Pledgor or otherwise, to take any action and to execute any instrument, in each case after the occurrence and during the continuance of an Event of Default and with notice to such Pledgor, that the Collateral Agent may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement, including to receive, indorse and collect all instruments made payable to such Pledgor representing any dividend, distribution or principal or interest payment in respect of the Collateral or any part thereof and to give full discharge for the same.

 

11.                               The Collateral Agent’s Duties.  The powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.  Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls,

 

9











 

conversions, exchanges, maturities, tenders or other matters relative to any Pledged Shares, whether or not the Collateral Agent or any other Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral.  The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property.

 

12.                               Remedies.  Subject to the terms of the Intercreditor Agreement, if any Event of Default shall have occurred and be continuing:

 

(a)                                 The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and also may with notice to the relevant Pledgor, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any exchange broker’s board or at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, at such price or prices and upon such other terms as are commercially reasonable irrespective of the impact of any such sales on the market price of the Collateral.  The Collateral Agent shall be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers of Collateral to Persons who will represent and agree that they are purchasing the Collateral for their own account for investment and not with a view to the distribution or sale thereof, and, upon consummation of any such sale, the Collateral Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold.  Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Pledgor, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay and/or appraisal that it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.  The Collateral Agent or any Secured Party shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase all or any part of the Collateral so sold, and the Collateral Agent or such Secured Party may pay the purchase price by crediting the amount thereof against the Obligations.  Each Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to such Pledgor 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 Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Collateral 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.  To the extent permitted by law, each Pledgor hereby waives any claim against the Collateral 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 that might have been obtained at a public sale, even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree.

 

10












 

(b)                                 The Collateral Agent shall apply the Proceeds of any collection or sale of the Collateral in the manner specified in the Intercreditor Agreement.  Upon any sale of the Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof.

 

(c)                                  Subject to the Intercreditor Agreement, the Collateral Agent may exercise any and all rights and remedies of each Pledgor in respect of the Collateral.

 

(d)                                 All payments received by any Pledgor in respect of the Collateral after the occurrence and during the continuance of an Event of Default shall be received in trust for the benefit of the Collateral Agent shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary endorsement).

 

13.                               Amendments, etc. with Respect to the Obligations; Waiver of Rights.  Each Pledgor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Pledgor and without notice to or further assent by any Pledgor, (a) any demand for payment of any of the Obligations made by the Collateral Agent or any other Secured Party may be rescinded by such party and any of the Obligations continued, (b) the Obligations, or the liability of any other party 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, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Collateral Agent or any other Secured Party, (c) any First Lien Agreement or any other First Lien Document and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Collateral Agent or the other Secured Parties, as applicable, may deem advisable from time to time, and (d) any collateral security, guarantee or right of offset at any time held by the Collateral Agent or any other Secured Party for the payment of the Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Collateral Agent nor any other Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for this Pledge Agreement or any property subject thereto.  When making any demand hereunder against any Pledgor, the Collateral Agent or any other Secured Party may, but shall be under no obligation to, make a similar demand on the Company or any other Pledgor or any other person, and any failure by the Collateral Agent or any other Secured Party to make any such demand or to collect any payments from the Company or any other Pledgor or any other person or any release of the Company or any other Pledgor or any other person shall not relieve any Pledgor in respect of which a demand or collection is not made or any Pledgor not so released of its several obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the Collateral Agent or any other Secured Party against any Pledgor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

11











 

14.                               Continuing Security Interest; Assignments Under the First Lien Agreements; Release.

 

(a)                                 This Pledge Agreement shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon each Pledgor and the successors and assigns thereof, and shall inure to the benefit of the Collateral Agent and the other Secured Parties and their respective successors, endorsees, transferees and assigns until all the Obligations (other than any contingent indemnity obligations not then due) under the First Lien Documents and each Additional First Lien Agreement shall have been satisfied by payment in full.

 

(b)                                 A Subsidiary Pledgor shall automatically be released from its obligations hereunder as relates to any First Lien Agreement and the Collateral of such Subsidiary Pledgor shall be automatically released with respect to such First Lien Agreement upon such Subsidiary Pledgor ceasing to be a Guarantor under such First Lien Agreement in accordance with the applicable provision(s) of such First Lien Agreement.

 

(c)                                  The Collateral shall be automatically released from the Liens of this Pledge Agreement with respect to the Liens securing the Obligations of any series, in whole or in part, as provided in the applicable First Lien Agreement governing such obligations.  Any such release in connection with any sale, transfer or other disposition of such Collateral shall result in such Collateral being sold, transferred or disposed of, as applicable, free and clear of the applicable Liens of this Pledge Agreement.

 

(d)                                 In connection with any termination or release pursuant to the foregoing paragraph (a), (b) or (c), the Collateral Agent shall execute and deliver to any Pledgor or authorize the filing of, at such Pledgor’s expense, all documents that such Pledgor shall reasonably request to evidence such termination or release.  Any execution and delivery of documents pursuant to this Section 14 shall be without recourse to or warranty by the Collateral Agent.

 

15.                               Reinstatement.  Each Pledgor further agrees that, if any payment made by any Pledgor or other Person and applied to the Obligations is at any time annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or the Proceeds of Collateral are required to be returned by any Secured Party to such Pledgor, its estate, trustee, receiver or any other party, including any other Pledgor, under any bankruptcy law, state, federal or foreign law, common law or equitable cause, then, to the extent of such payment or repayment, any Lien or other Collateral securing such liability shall be and remain in full force and effect, as fully as if such payment had never been made or, if prior thereto the Lien granted hereby or other Collateral securing such liability hereunder shall have been released or terminated by virtue of such cancellation or surrender), such Lien or other Collateral shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect any Lien or other Collateral securing the obligations of any Pledgor in respect of the amount of such payment.

 

16.                               Notices.  All notices, requests and demands pursuant hereto shall be made in accordance with Section 13.02 of the Indenture.  All communications and notices hereunder to

 

12











 

any Subsidiary Pledgor shall be given to it in care of the Company at the Company’s address set forth in Section 13.02 of the Indenture and all notices to any Authorized Representative (as defined in the Security Agreement) of any Additional First Lien Obligations, at its address set forth in the Additional First Lien Secured Party Consent, as such address may be changed by written notice to the Collateral Agent and the Company.

 

17.                               Counterparts.  This Pledge Agreement may be executed by one or more of the parties to this Pledge Agreement on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

18.                               Severability.  Any provision of this Pledge Agreement that 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.  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

19.                               Integration.  This Pledge Agreement together with the other First Lien Documents represents the agreement of each of the Pledgors with respect to the subject matter hereof and there are no promises, undertakings, representations or warranties by the Collateral Agent or any other Secured Party relative to the subject matter hereof not expressly set forth or referred to herein or in the other First Lien Documents.

 

20.                               Amendments in Writing; No Waiver; Cumulative Remedies.

 

(a)                                 None of the terms or provisions of this Pledge Agreement or any of the First Lien Documents may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the affected Pledgor and the Collateral Agent in accordance with the terms of each applicable First Lien Agreement and the Intercreditor Agreement.

 

(b)                                 Neither the Collateral Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section 20(a) hereof), 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 or in any breach of any of the terms and conditions hereof.  No failure to exercise, nor any delay in exercising, on the part of the Collateral Agent or any other 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 the Collateral Agent or any other Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that the Collateral Agent or such other Secured Party would otherwise have on any future occasion.

 

13











 

(c)                                  The rights, remedies, powers and privileges herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

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

 

22.                               Successors and Assigns.  This Pledge Agreement shall be binding upon the successors and assigns of each Pledgor and shall inure to the benefit of the Collateral Agent and the other Secured Parties and their respective successors and assigns, except that no Pledgor may assign, transfer or delegate any of its rights or obligations under this Pledge Agreement without the prior written consent of the Collateral Agent.

 

23.                               WAIVER OF JURY TRIAL.  EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS PLEDGE AGREEMENT, ANY OTHER FIRST LIEN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

24.                               Submission to Jurisdiction; Waivers.  Each party hereto irrevocably and unconditionally:

 

(a)                                 submits for itself and its property in any legal action or proceeding relating to this Pledge Agreement and the other First Lien 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 Person at its address referred to in Section 16 or at such other address of which the Collateral Agent shall have been notified pursuant thereto;

 

(d)                                 agrees that nothing herein shall affect the right of any other party hereto (or any Secured Party) to effect service of process in any other manner permitted by law or shall limit the right of any party hereto (or any Secured Party) 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 24 any special, exemplary, punitive or consequential damages.

 

14











 

25.                               GOVERNING LAW.  THIS PLEDGE AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

26.                               Subject to Intercreditor Agreement.  Notwithstanding anything herein to the contrary, the Liens and security interests granted to the Collateral Agent pursuant to this Pledge Agreement and the exercise of any right or remedy by the Collateral Agent hereunder are subject to the terms of the Intercreditor Agreement.  In the event of any conflict between the terms of the Intercreditor Agreement and the terms of this Pledge Agreement, the terms of the Intercreditor Agreement shall govern and control.  Notwithstanding anything herein to the contrary, prior to the Discharge of the Credit Agreement Obligations, all requirements of any Pledgor pursuant to this Pledge Agreement to endorse, assign, transfer or otherwise deliver or grant control over any Collateral to the Collateral Agent shall be deemed satisfied by endorsement, assignment, delivery or control of such Collateral to the Credit Agreement Collateral Agent pursuant to the Credit Agreement Documents.  Any endorsement, assignment, transfer or delivery to or Control by the Credit Agreement Collateral Agent shall be deemed an endorsement, assignment, transfer or delivery to or Control by the Collateral Agent for all purposes hereunder.

 

THIS PLEDGE AGREEMENT IS SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT DATED AS OF AUGUST 20, 2010 (AS AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME), AMONG THE COMPANY, THE COLLATERAL AGENT AND THE CREDIT AGREEMENT COLLATERAL AGENT, AND ACKNOWLEDGED BY THE PLEDGORS.

 

27.                               Additional First Lien Obligations.  On or after the date hereof and so long as expressly permitted by the Senior Credit Facility and any First Lien Agreement then outstanding, the Company may from time to time designate Indebtedness at the time of incurrence to be secured on a pari passu basis with the Obligations as Additional First Lien Obligations hereunder by delivering to the Collateral Agent, the Credit Agreement Collateral Agent and each other Authorized Representative (a) a certificate signed by an Officer of the Company (i) identifying the obligations so designated and the initial aggregate principal amount or face amount thereof, (ii) stating that such obligations are designated as Additional First Lien Obligations for purposes hereof, (iii) representing that such designation of such obligations as Additional First Lien Obligations complies with the terms of the Senior Credit Facility and any First Lien Agreement then outstanding and (iv) specifying the name and address of the Authorized Representative for such obligations, (b) a fully executed Additional First Lien Secured Party Consent (as defined in the Security Agreement) and (c) a fully executed joinder to the Intercreditor Agreement.  Each Authorized Representative agrees that upon the satisfaction of all conditions set forth in the preceding sentence, the Collateral Agent shall act as agent under and subject to the terms of the Security Documents for the benefit of all Secured Parties, including, without limitation, any Secured Parties that hold any such Additional First Lien Obligations, and each Authorized Representative agrees to the appointment, and acceptance of the appointment, of the Collateral Agent as agent for the holders of such Additional First Lien Obligations as set forth in each Additional First Lien Secured Party Consent and agrees, on

 

15











 

behalf of itself and each Secured Party it represents, to be bound by this Pledge Agreement and the Intercreditor Agreement.

 

28.                               Force Majeure.  In no event shall the Collateral Agent be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Collateral Agent shall use reasonable efforts that are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances

 

[Signature Pages Follow]

 

16











 

IN WITNESS WHEREOF, each of the undersigned has caused this Pledge Agreement to be duly executed and delivered by its duly authorized officer as of the day and year first above written.

 

	
 
    	
 
    	
       FIRST   DATA CORPORATION, as Pledgor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael K. Neborak
    
	
 
    	
 
    	
Name:   Michael K. Neborak
    
	
 
    	
 
    	
Title:   Executive Vice President, Director of Finance
    


 

[Signature Page to Pledge Agreement]

 











 

	
 
    	
The   following entities, each as Pledgor:
    
	
 
    	
 
    
	
 
    	
BANKCARD   INVESTIGATIVE GROUP INC.

BUYPASS   INCO CORPORATION

CALL   INTERACTIVE HOLDINGS LLC

CESI   HOLDINGS, INC.

CLOVER   MARKETPLACE, LLC

CLOVER   NETWORK, INC.

CONCORD   COMPUTING CORPORATION

CONCORD   CORPORATE SERVICES, INC.

CONCORD   EFS FINANCIAL SERVICES, INC.

CONCORD   EFS, INC.

CONCORD   EMERGING TECHNOLOGIES, INC.

CONCORD   FINANCIAL TECHNOLOGIES, INC.

CONCORD   ONE, LLC

CONCORD   PAYMENT SERVICES, INC.

CONCORD   PROCESSING, INC.

CONCORD   TRANSACTION SERVICES, LLC

CTS   HOLDINGS, LLC

CTS, INC.

EPSF   CORPORATION

FDFS   HOLDINGS, LLC

FDGS   GROUP LLC

FDR   IRELAND LIMITED

FDR   MISSOURI INC.

FDS   HOLDINGS INC.

FIRST   DATA CAPITAL, INC.

FIRST   DATA CARD SOLUTIONS, INC.

FIRST   DATA COMMERCIAL SERVICES HOLDINGS, INC.

FIRST   DATA COMMUNICATIONS CORPORATION

FIRST   DATA EC, LLC

FIRST   DATA GOVERNMENT SOLUTIONS, INC.

FIRST   DATA GOVERNMENT SOLUTIONS, LP

FIRST   DATA LATIN AMERICA INC.

FIRST   DATA MERCHANT SERVICES CORPORATION

FIRST   DATA MERCHANT SERVICES NORTHEAST, LLC

FIRST   DATA MERCHANT SERVICES SOUTHEAST, L.L.C.

FIRST   DATA MOBILE HOLDINGS, INC.

FIRST   DATA PAYMENT SERVICES, LLC

FIRST   DATA REAL ESTATE HOLDINGS L.L.C.

FIRST   DATA REPORTING SERVICES LLC

FIRST   DATA RESOURCES, LLC

FIRST   DATA RETAIL ATM SERVICES L.P.

FIRST   DATA SOLUTIONS INC.

FIRST   DATA TECHNOLOGIES, INC.
    


 

[Signature Page to Pledge Agreement]

 











 

	
 
    	
FIRST   DATA TRANSPORTATION SERVICES INC.

FIRST   DATA VOICE SERVICES

FSM   SERVICES INC.

FUNDSXPRESS, INC.

FUNDSXPRESS   FINANCIAL NETWORK, INC.

GIFT   CARD SERVICES, INC.

GYFT, INC.

IGNITE   PAYMENTS, LLC

INSTANT   CASH SERVICES, LLC

LINKPOINT   INTERNATIONAL, INC.

MAS   INCO CORPORATION

MAS   OHIO CORPORATION

NATIONAL   PAYMENT SYSTEMS INC.

NEW   PAYMENT SERVICES, INC.

PAYPOINT   ELECTRONIC PAYMENT SYSTEMS, LLC

PAYSYS   INTERNATIONAL, INC.

PERKA, INC.

REMITCO   LLC

SAGEBRUSH   HOLDINGS LLC

SIZE   TECHNOLOGIES, INC.

STAR   NETWORKS, INC.

STAR   PROCESSING, INC.

STAR   SYSTEMS ASSETS, INC.

STAR   SYSTEMS, INC.

STAR   SYSTEMS, LLC

STRATEGIC   INVESTMENT ALTERNATIVES LLC

TASQ   LLC

TASQ   TECHNOLOGY, INC.

TELECHECK   INTERNATIONAL, INC.

TRANSACTION   SOLUTIONS, LLC

UNIFIED   MERCHANT SERVICES

VALUELINK,   LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael K. Neborak
    
	
 
    	
 
    	
Name:
    	
Michael   K. Neborak
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President, Director of Finance
    


 

[Signature Page to Pledge Agreement]

 











 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION,

as   Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stefan Victory
    
	
 
    	
 
    	
Name:   Stefan Victory
    
	
 
    	
 
    	
Title:   Vice President
    


 

[Signature Page to Pledge Agreement]

 












 

ANNEX A
 TO THE PLEDGE AGREEMENT

 

SUPPLEMENT NO. [    ], dated as of [            ] (this “Supplement”), to the AMENDED AND RESTATED PLEDGE AGREEMENT, dated as of August 11, 2015 (the “Pledge Agreement”), among First Data Corporation, a Delaware corporation (the “Company”), each of the Subsidiaries of the Company listed on the signature pages hereto (each such Subsidiary being a “Subsidiary Pledgor” and, collectively, the “Subsidiary Pledgors”;  the Subsidiary Pledgors and the Company are referred to collectively as the “Pledgors”) and Wells Fargo Bank, National Association, as Collateral Agent (in such capacity, the “Collateral Agent”) under the First Lien Agreements referred to below.

 

A.                                    Reference is made to the Credit Agreement dated as of September 24, 2007 (as the same may be amended, restated, supplemented or otherwise modified, refinanced or replaced from time to time, the “Credit Agreement”) among the Company, the lenders or other financial institutions or entities from time to time parties thereto (the “Lenders”), Credit Suisse, Cayman Islands Branch, as Administrative Agent and as Collateral Agent and the Guarantee dated as of September 24, 2007 (as the same may be amended, restated, supplemented and or otherwise modified from time to time, the “Guarantee”), among the Company, the Guarantors party thereto and the Collateral Agent.

 

B.                                    Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Pledge Agreement.

 

C.                                    The Pledgors have received substantial benefits from the proceeds of the Obligations existing on the date hereof and will receive substantial benefits from future Obligations and each, therefore, has entered into the Pledge Agreement.

 

D.                                    The undersigned Guarantors (each an “Additional Pledgor”) are (a) the legal and beneficial owners of the Equity Interests described in Schedule 1 hereto and issued by the entities named therein (such pledged Equity Interests, together with any Equity Interests of the issuer of such Pledged Shares or any other Subsidiary held directly by any Additional Pledgor in the future, in each case, except to the extent excluded from the Collateral for the applicable Obligations pursuant to the penultimate paragraph of Section 1 below (the “After-acquired Additional Pledged Shares”), referred to collectively herein as the “Additional Pledged Shares”) and (b) the legal and beneficial owners of the Indebtedness described under Schedule 1 hereto (together with any other Indebtedness owed to any Additional Pledgor hereafter and required to be pledged pursuant to the First Lien Agreements, the “Additional Pledged Debt”).

 

E.                                     The First Lien Agreements and Section 9(b) of the Pledge Agreement provide that additional Subsidiaries may become Subsidiary Pledgors under the Pledge Agreement by execution and delivery of an instrument in the form of this Supplement.  Each undersigned Additional Pledgor is executing this Supplement in accordance with the

 

A-1











 

requirements of Section 9(b) of the Pledge Agreement to pledge to the Collateral Agent for the benefit of the Secured Parties the Additional Pledged Shares and the Additional Pledged Debt and to become a Subsidiary Pledgor under the Pledge Agreement as consideration for credit previously extended to the Company.

 

Accordingly, the Collateral Agent and each undersigned Additional Pledgor agree as follows:

 

SECTION 1.                            In accordance with Section 9(b) of the Pledge Agreement, each Additional Pledgor by its signature hereby transfers, assigns and pledges to the Collateral Agent, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, for the benefit of the Secured Parties, a security interest in all of such Additional Pledgor’s right, title and interest in the following, whether now owned or existing or hereafter acquired or existing (collectively, the “Additional Collateral”):

 

(a)                                 the Additional Pledged Shares held by such Additional Pledgor and the certificates representing such Additional Pledged Shares and any interest of such Additional Pledgor in the entries on the books of the issuer of the Additional Pledged Shares or any financial intermediary pertaining to the Additional Pledged Shares and all dividends, cash, warrants, rights, instruments 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 the Additional Pledged Shares;

 

(b)                                 the Additional Pledged Debt and the instruments evidencing the Additional Pledged Debt owed to such Additional Pledgor, and all interest, cash, instruments 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 Additional Pledged Debt; and

 

Notwithstanding the foregoing, the Additional Collateral for the Obligations shall not include any Excluded Stock and Stock Equivalents.

 

For purposes of the Pledge Agreement, the Collateral shall be deemed to include the Additional Collateral.

 

SECTION 2.                            Each Additional Pledgor by its signature below becomes a Pledgor under the Pledge Agreement with the same force and effect as if originally named therein as a Pledgor, and each Additional Pledgor hereby agrees to all the terms and provisions of the Pledge Agreement applicable to it as a Pledgor thereunder.  Each reference to a “Subsidiary Pledgor” or a “Pledgor” in the Pledge Agreement shall be deemed to include each Additional Pledgor.  The Pledge Agreement is hereby incorporated herein by reference.

 

SECTION 3.                            Each Additional Pledgor represents and warrants as follows:

 

A-2











 

(a)                                 Schedule 1 hereto correctly represents as of the date hereof (A) the issuer, the certificate number, the Additional Pledgor and registered owner, the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Additional Pledged Shares and (B) the issuer, the initial principal amount, the Additional Pledgor and holder, date of and maturity date of all Additional Pledged Debt. Except as set forth on Schedule 1 and except for Excluded Stock and Stock Equivalents, the Pledged Shares represent all (or 65% in the case of pledges of the Voting Stock of Foreign Subsidiaries) of the issued and outstanding Equity Interests of each class of Equity Interests of the issuer on the date hereof.

 

(b)                                 Such Additional Pledgor is the legal and beneficial owner of the Additional Collateral pledged or assigned by such Additional Pledgor hereunder free and clear of any Lien, except for (i) the Lien created by this Supplement to the Pledge Agreement or (ii) Liens permitted by the First Lien Agreements.

 

(c)                                  As of the date hereof, the Additional Pledged Shares pledged by such Additional Pledgor hereunder have been duly authorized and validly issued and, in the case of Additional Pledged Shares issued by a corporation, are fully paid and non-assessable.

 

(d)                                 The execution and delivery by such Additional Pledgor of this Supplement and the pledge of the Additional Collateral pledged by such Additional Pledgor hereunder pursuant hereto create a valid and perfected first-priority security interest in the Additional Collateral to the extent the creation of such security interest in the Stock of Foreign Subsidiaries is governed by the UCC, as applicable, and upon delivery of such Additional Collateral to the Collateral Agent in the State of New York, shall constitute a fully perfected lien and security interest in the Additional Collateral to the extent the creation and perfection of such security interest in the Stock of Foreign Subsidiaries is governed by the UCC, securing the payment of the Obligations, in favor of the Collateral Agent for the benefit of the Secured Parties.

 

(e)                                  Such Additional Pledgor has full power, authority and legal right to pledge all the Additional Collateral pledged by such Additional Pledgor pursuant to this Supplement, and this Supplement constitutes a legal, valid and binding obligation of each Additional Pledgor to the extent the creation and perfection of such security interest in the Stock of Foreign Subsidiaries is governed by the UCC, enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity.

 

SECTION 4.                            This Supplement may be executed by one or more of the parties to this Supplement on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  A set of the copies of this Supplement signed by all

 

A-3











 

the parties shall be lodged with the Collateral Agent and the Company.  This Supplement shall become effective as to each Additional Pledgor when the Collateral Agent shall have received counterparts of this Supplement that, when taken together, bear the signatures of such Additional Pledgor and the Collateral Agent.

 

SECTION 5.                            Except as expressly supplemented hereby, the Pledge Agreement shall remain in full force and effect.

 

SECTION 6.                         THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 7.                            Any provision of this Supplement that 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 in the Pledge Agreement, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 8.                            All notices, requests and demands pursuant hereto shall be made in accordance with Section 16 of the Pledge Agreement.  All communications and notices hereunder to each Additional Pledgor shall be given to it in care of the Company at the Company’s address set forth in Section 13.02 of the Indenture.

 

A-4











 

IN WITNESS WHEREOF, each Additional Pledgor and the Collateral Agent have duly executed this Supplement to the Pledge Agreement as of the day and year first above written.

 

	
 
    	
[NAME   OF ADDITIONAL PLEDGOR]
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
[                      ],   as Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    


 











 

SCHEDULE 1
 TO SUPPLEMENT NO. [   ]
 TO THE PLEDGE AGREEMENT

 

Pledged Shares

 

	
Record
   owner
    	
 
    	
Issuer
    	
 
    	
Certificate
   No.
    	
 
    	
Number of
   Shares
    	
 
    	
% of Shares
   Owned
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    


 

Pledged Debt

 

	
Payee
    	
 
    	
Issuer
    	
 
    	
Principal
   Amount
    	
 
    	
Date of
   Instrument
    	
 
    	
Maturity
   Date