Document:

exv10w12

 

Exhibit 10.12

AMENDED AND RESTATED SECURITIES COLLATERAL PLEDGE AGREEMENT

     AMENDED AND RESTATE SECURITIES COLLATERAL PLEDGE AGREEMENT (this
“Agreement”) dated as of June 21, 2004 by and among each of:

     GAMESTOP, INC., a corporation organized under the laws of the State
of Minnesota having a place of business at 2250 William D. Tate Avenue,
Grapevine, Texas (hereinafter, the “Pledgor”); and

     FLEET RETAIL GROUP, INC., a Delaware corporation, as collateral
agent (in such capacity, the “Collateral Agent” for the Secured Parties
(as defined herein), in consideration of the mutual covenants contained
herein and benefits to be derived herefrom.

WITNESSETH:

     WHEREAS, the Pledgor is party to a loan arrangement dated as of February
19, 2002, which loan arrangement is evidenced by, among other things, (i) a
certain Credit Agreement dated as of February 19, 2002 by and GameStop Corp.
(in such capacity, the “Existing Borrower”), the “Banks” as defined therein,
Fleet National Bank as “Administrative Agent” as defined therein, UBS Warburg
LLC, as Documentation Agent, Fleet National Bank as “Issuing Bank” as defined
therein, and Fleet Securities, Inc., as Arranger (as amended and in effect, the
“Existing Credit Agreement”); (ii) a certain Guaranty dated as of February 19,
2002 (as amended and in effect, the “Existing Guaranty”) by Pledgor,
GameStop.Com, Inc., Babbage’s Etc. LLC and Sunrise Publications, Inc. (in such
capacity, collectively, the “Existing Guarantors”) in favor of Fleet National
Bank of the payment of the obligations of the Existing Borrower under the
Existing Credit Agreement; (iii) those certain Security Agreements dated as of
February 19, 2002 (as amended and in effect, individually, an “Existing
Security Agreement” and collectively, the “Existing Security Agreements”) by
each of the Existing Borrower and Pledgor and each other Existing Guarantor in
favor of Fleet National Bank to secure the obligations of the Existing Borrower
under the Existing Credit Agreement and the Pledgor and each other Existing
Guarantor under the Existing Guaranty, as applicable and (iv) that certain
Securities Collateral Pledge Agreement dated as of February 19, 2002 (as
amended and in effect, the “Existing Pledge Agreement”) by Pledgor in favor of
Fleet National Bank to secure the obligations of the Pledgor under the Existing
Guaranty (the Existing Credit Agreement, the Existing Guaranty, the Existing
Security Agreements, and all other documents and instruments executed and
delivered in connection therewith, the “Existing Loan Documents”);

     WHEREAS, Fleet National Bank is contemporaneously herewith resigning as
Agent under the Existing Loan Documents and Fleet Retail Group, Inc. is hereby
being appointed as successor Agent under the Existing Loan Documents; and

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     WHEREAS, the Pledgor, among others, has entered into a certain Amended and
Restated Credit Agreement dated as of even date herewith (as such may be
amended, modified, supplemented or restated hereafter, the “Credit Agreement”)
by and among (i) the Pledgor and the other Borrowers named therein, (ii) the
Lenders named therein, (iii) Fleet Retail Group, Inc., as Administrative Agent
and Collateral Agent for the Lenders and the Issuing Bank, and (iv) Fleet
National Bank, as Issuing Bank, which Credit Agreement amends and restates the
Existing Credit Agreement, and pursuant to which Credit Agreement the Lenders
have agreed to make Loans to the Borrowers, and the Issuing Bank has agreed to
issue Letters of Credit for the account of the Borrowers, upon the terms and
subject to the conditions specified in, the Credit Agreement; and

     WHEREAS, the Pledgor, among others has entered into a certain Amended and
Restated Guaranty of even date herewith in favor of the Secured Parties (as
such may be amended, modified, supplemented or restated hereafter, the
“Guaranty”), which Guaranty amends and restates the Existing Guaranty, and
pursuant to which Guaranty the Pledgor guarantees the Obligations of the other
Borrowers; and

     WHEREAS, the obligations of the Lenders to make Loans and of the Issuing
Bank to issue Letters of Credit are each conditioned upon, among other things,
the execution and delivery by the Pledgor of an agreement in the form hereof to
secure the Obligations (as defined herein); and

     WHEREAS, the Pledgor and the Collateral Agent desire to amend and restate
the Existing Pledge Agreement as provided herein.

     NOW, THEREFORE, in consideration of the mutual conditions and agreements
set forth in this Agreement, and for good and valuable consideration, the
receipt of which is hereby acknowledged, the Pledgor and the Collateral Agent
hereby agree that the Existing Pledge Agreement shall be amended and restated
in its entirety to read as follows:

SECTION 1

Definitions

     1.1 Generally. Unless the context otherwise requires, all capitalized
terms used but not defined herein shall have the meanings set forth in the
Credit Agreement, and all references to the UCC shall mean the Uniform
Commercial Code as in effect from time to time in the Commonwealth of
Massachusetts; provided, however, that if a term is defined in Article 9 of the
UCC differently that in another Article thereof, the term shall have the
meaning set forth in Article 9, and provided further that if by reason of
mandatory provisions of law, perfection, or the effect of perfection or
non-perfection, of the Security Interest in any Collateral or the availability
of any remedy hereunder is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than Massachusetts, “UCC” means the Uniform Commercial
Code as in

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effect in such other jurisdiction for purposes of the provisions hereof
relating to such perfection or effect of perfection or non-perfection or
availability of such remedy, as the case may be.

     1.2 Definitions of Certain Terms Used Herein. As used herein, the
following terms shall have the following meanings:

     “Blue Sky Laws” shall have the meaning assigned to such term in Section
7.7 of this Agreement.

     “Credit Agreement” shall have the meaning assigned to such term in the
preliminary statement of this Agreement.

     “Guaranty” shall have the meaning assigned to such term in the preliminary
statement of this Agreement.

     “Guaranty Obligations” shall mean the obligations and liabilities
guarantied by the Guarantors pursuant to the Guaranty.

     “Investment Property” shall have the meaning given that term in the UCC.

     “Obligations” shall mean “Obligations” as defined in the Credit Agreement
and the Guaranty Obligations.

     “Pledged Collateral” shall have the meaning assigned to such term in
Section 2.5 of this Agreement.

     “Pledged Securities” shall have the meaning assigned to such term in
Section 2.1 of this Agreement.

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

     “Securities Act” shall have the meaning assigned to such term in Section
7.7 of this Agreement.

     “Security Agreement” shall mean that certain Amended and Restated Security
Agreement dated as of even date herewith executed and delivered by the Pledgor
and the other Grantors named therein to Fleet Retail Group, Inc., as Collateral
Agent for the benefit of the Secured Parties, as amended and in effect from
time to time.

     1.3 Rules of Interpretation. The rules of interpretation specified in
Section 1.02 of the Credit Agreement shall be applicable to this Agreement.

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SECTION 2

Pledge

     As security for the payment and performance, as the case may be, in full
of the Obligations, the Pledgor hereby transfers, grants, bargains, sells,
conveys, hypothecates, pledges, sets over and delivers unto the Collateral
Agent, its successors and assigns, and hereby grants to the Collateral Agent,
its successors and assigns, for the ratable benefit of the Secured Parties, a
security interest in all of the Pledgor’s right, title and interest in, to and
under:

     2.1 the shares of capital stock and other ownership interests owned by the
Pledgor and listed on Schedule I hereto, and any shares of capital stock or
other equity interest of any Subsidiary obtained in the future by the Pledgor,
and the stock certificates or other securities representing all such shares or
equity interests; provided that with respect to each Material Foreign
Subsidiary whose capital stock is pledged hereunder by the Pledgor, the Pledgor
has pledged stock representing 65% of the outstanding shares of Voting Stock of
such Material Foreign Subsidiary (or such lesser percentage as is owned by
Pledgor) (the “Pledged Securities”);

     2.2 all other Investment Property that may be delivered to, and held by,
the Collateral Agent pursuant to the terms hereof;

     2.3 subject to Section Section 6, all dividends, cash, instruments and
other property from time to time received, receivable or otherwise distributed
or distributable, in respect of, or in exchange for, the Pledged Securities
referred to in clauses 2.1 and 2.2 above;

     2.4 subject to Section Section 6, all rights and privileges of the Pledgor
with respect to the Pledged Securities and other Investment Property referred
to in clauses 2.1, 2.2, and 2.3 above; and

     2.5 all proceeds of any of the foregoing (the items referred to in clauses
2.1 through 2.5 being collectively referred to as the “Pledged Collateral”).

     TO HAVE AND TO HOLD the Pledged Collateral, together with all right,
title, interest, powers, privileges and preferences pertaining or incidental
thereto, unto the Collateral Agent, its successors and assigns, for the benefit
of the Secured Parties, until the Obligations have been paid in full in cash,
the Lenders have no further commitment to lend, the Letter of Credit
Outstandings have been reduced to zero or fully cash collateralized in a manner
satisfactory to the Issuing Bank and the Administrative Agent, and the Issuing
Bank has no further obligation to issue Letters of Credit under the Credit
Agreement; subject, however, to the terms, covenants and conditions hereinafter
set forth.

     Upon delivery to the Collateral Agent pursuant to Section 3 of this
Agreement, (a) all stock certificates or other securities now or hereafter
included in the Pledged Securities shall be accompanied by stock powers duly
executed in blank or other instruments of transfer satisfactory to the
Collateral Agent and by such other instruments and documents as the Collateral
Agent

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may reasonably request, and (b) all other Investment Property comprising
part of the Pledged Collateral shall be accompanied by proper instruments of
assignment duly executed by the Pledgor and such other instruments or documents
as the Collateral Agent may reasonably request. Each delivery of Pledged
Securities shall be accompanied by a schedule describing the Pledged Securities
theretofore and then being pledged hereunder, which schedule shall be attached
hereto as Schedule I and made a part hereof. Each schedule so delivered shall
supersede any prior schedules so delivered.

SECTION 3

Delivery of the Pledged Collateral

     3.1 On or before the Closing Date, the Pledgor shall deliver or cause to
be delivered to the Collateral Agent any and all Pledged Securities, any and
all Investment Property, and any and all certificates or other instruments or
documents representing the Pledged Collateral as set forth in Section 4.15 of
the Security Agreement.

     3.2 The Pledgor hereby irrevocably authorizes the Collateral Agent at any
time and from time to time to sign (if required) and file in any appropriate
filing office, wherever located, any Financing Statement that contains any
information required by the UCC of the applicable jurisdiction for the
sufficiency or filing office acceptance of any Financing Statement. The
Pledgor also authorizes the Collateral Agent to file a copy of this Agreement
in lieu of a Financing Statement, and to take any and all actions required by
any earlier versions of the UCC or by any other Applicable Law. The Pledgor
shall provide the Collateral Agent with any information the Collateral Agent
shall reasonably request in connection with any of the foregoing.

SECTION 4

Representations, Warranties and Covenants

     The Pledgor hereby represents, warrants and covenants, as to itself and
the Pledged Collateral pledged by it hereunder, to and with the Collateral
Agent that:

     4.1 the Pledged Securities represent that percentage of the issued and
outstanding shares of each class of the capital stock or other equity interest
of the Issuer with respect thereto as set forth on Schedule I, provided that
with respect to each Material Foreign Subsidiary whose capital stock is pledged
hereunder by the Pledgor, the Pledgor has pledged stock representing 65% of the
outstanding shares of Voting Stock of such Material Foreign Subsidiary (or such
lesser percentage as is owned by Pledgor);

     4.2 except for the security interest granted hereunder, and except as
otherwise permitted in the Credit Agreement and the other Loan Documents, the
Pledgor (i) is and will at all times continue to be the direct owner,
beneficially and of record, of the Pledged Securities

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indicated on Schedule I, (ii) holds the Pledged Collateral free and clear
of all Liens, other than Permitted Encumbrances and Liens in favor of the
Collateral Agent, (iii) will make no assignment, pledge, hypothecation or
transfer of, or create or permit to exist any security interest in, or other
Lien on, the Pledged Collateral, other than pursuant hereto and other than
Permitted Encumbrances, and (iv) subject to Section 6, will cause any and all
Pledged Collateral to be forthwith deposited with the Collateral Agent and
pledged or assigned hereunder;

     4.3 except as expressly permitted under the Credit Agreement, the Pledgor
will not consent to or approve the issuance of (a) any additional shares of any
class of capital stock of any Issuer of the Pledged Securities, or the issuance
of any membership or other ownership interest in any such Person, (b) any
securities convertible voluntarily by the holder thereof or automatically upon
the occurrence or nonoccurrence of any event or condition into, or exchangeable
for, any such shares or interests, or (c) any warrants, options, rights, or
other commitments entitling any person to purchase or otherwise acquire any
such shares or interests except pursuant to an employee stock option plan of
such Person authorizing the grant of no more than 30% of such Peron’s shares or
interests;

     4.4 the Pledgor (i) has the power and authority to pledge the Pledged
Collateral in the manner hereby done or contemplated and (ii) will defend its
title or interest thereto or therein against any and all Liens (other than
Permitted Encumbrances and the Lien created by this Agreement or the other Loan
Documents), however arising, of all Persons whomsoever;

     4.5 no consent of any other Person (including stockholders or creditors of
the Pledgor), and no consent or approval of any Governmental Authority or any
securities exchange, was or is necessary to the validity of the pledge effected
hereby or to the disposition of the Pledged Collateral upon an Event of Default
in accordance with the terms of this Agreement and the Security Agreement;

     4.6 by virtue of the execution and delivery by the Pledgor of this
Agreement, and the delivery by the Pledgor to the Collateral Agent of the stock
certificates or other certificates or documents representing or evidencing the
Pledged Collateral in accordance with the terms of this Agreement, the
Collateral Agent will obtain a valid and perfected first lien upon, and
security interest in, the Pledged Collateral as security for the payment and
performance of the Obligations, to the extent such security interest may be
perfected by possession;

     4.7 the pledge effected hereby is effective to vest in the Collateral
Agent, on behalf of the Secured Parties, the rights of the Collateral Agent in
the Pledged Collateral as set forth herein;

     4.8 all the Pledged Securities have been duly authorized and validly
issued and are fully paid and nonassessable;

     4.9 all information set forth herein relating to the Pledged Collateral is
accurate and complete in all material respects as of the date hereof; and

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     4.10 none of the Pledged Securities constitutes margin stock, as defined
in Regulation U of the Board of Governors of the Federal Reserve System.

SECTION 5

Registration in Nominee Name; Copies of Notices

     Upon the occurrence and during the continuance of an Event of Default, the
Collateral Agent, on behalf of the Secured Parties, shall have the right (in
its reasonable discretion) to hold the Pledged Securities in its own names as
pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of
the Pledgor, endorsed or assigned in blank or in favor of the Collateral Agent.
The Pledgor will promptly give to the Collateral Agent copies of any notices
or other communications received by it with respect to Pledged Securities
registered in the name of the Pledgor.

SECTION 6

Voting Rights; Dividends and Interest, Etc.

     6.1 Unless and until an Event of Default shall have occurred and be
continuing, the Pledgor shall be entitled to exercise any and all voting and/or
other consensual rights and powers inuring to an owner of the Pledged
Securities or any part thereof to the extent, and only to the extent, that such
rights are exercised for any purpose consistent with, and not otherwise in
violation of, the terms and conditions of this Agreement, the Credit Agreement,
the other Loan Documents and Applicable Law; provided, however, that the
Pledgor will not be entitled to exercise any such right if the result thereof
could materially and adversely affect the rights inuring to a holder of the
Pledged Securities or the rights and remedies of any of the Secured Parties
under this Agreement, the Credit Agreement or any other Loan Document or the
ability of the Secured Parties to exercise the same.

     6.2 Unless and until a Cash Dominion Event shall have occurred and be
continuing, the Pledgor shall be entitled to receive and retain any and all
cash dividends paid on the Pledged Collateral to the extent, and only to the
extent, that such cash dividends are permitted by, and otherwise paid in
accordance with, the terms and conditions of this Agreement, the Credit
Agreement, the other Loan Documents and Applicable Law. All noncash dividends,
and all dividends paid or payable in cash or otherwise in connection with a
partial or total liquidation or dissolution, return of capital, capital surplus
or paid-in surplus, and all other distributions (other than dividends and
distributions referred to in the preceding sentence) made on or in respect of
the Pledged Collateral, whether paid or payable in cash or otherwise, whether
resulting from a subdivision, combination or reclassification of the
outstanding capital stock or partnership interests of the issuer of any Pledged
Securities or received in exchange for Pledged Securities or any part thereof,
or in redemption thereof, or as a result of any merger, amalgamation,
arrangement, consolidation, acquisition or other exchange of assets to which
such issuer may be a party or otherwise, shall be and become part of the
Pledged Collateral, and, if received by the

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Pledgor, to the extent required to be paid to the Collateral Agent
pursuant to the terms of the Credit Agreement or the other Loan Documents,
shall not be commingled by the Pledgor with any of its other funds or property
but shall be held separate and apart therefrom, shall be held in trust for the
benefit of the Collateral Agent and shall be forthwith delivered to the
Collateral Agent in the same form as so received (with any necessary
endorsement).

     6.3 Upon the occurrence and during the continuance of an Cash Dominion
Event, all rights of the Pledgor to dividends that the Pledgor is authorized to
receive pursuant to Section 6.2 above shall cease, and all such rights shall
thereupon become vested in the Collateral Agent, which shall have the sole and
exclusive right and authority to receive and retain such dividends. All
dividends received by the Pledgor contrary to the provisions of this Section
6.3 shall be held in trust for the benefit of the Collateral Agent, shall be
segregated from other property or funds of the Pledgor and shall be forthwith
delivered to the FRG Concentration Account in accordance with the provisions of
Section 2.22 of the Credit Agreement in the same form as so received (with any
necessary endorsement). Any and all money and other property paid over to or
received by the Collateral Agent pursuant to the provisions of this Section 6.3
shall be applied in accordance with the provisions of Section 8.

     6.4 Upon the occurrence and during the continuance of an Event of Default,
all rights of the Pledgor to exercise the voting and consensual rights and
powers it is entitled to exercise pursuant to 6.1 shall cease, and all such
rights shall thereupon become vested in the Collateral Agent, which shall have
the sole and exclusive right and authority to exercise such voting and
consensual rights and powers; provided that the Collateral Agent shall have the
right from time to time following and during the continuance of an Event of
Default to permit the Pledgor to exercise such rights. After all Events of
Default have been cured or waived in writing by the Collateral Agent, the
Pledgor will have the right to exercise the voting and consensual rights and
powers that they would otherwise be entitled to exercise pursuant to the terms
of 6.1.

SECTION 7

Remedies upon Default

     Upon the occurrence of an Event of Default, it is agreed that the
Collateral Agent shall have in any jurisdiction in which enforcement hereof is
sought, in addition to all other rights and remedies, the rights and remedies
of a secured party under the UCC or other Applicable Law. The rights and
remedies of the Collateral Agent shall include, without limitation, the right
to take any of or all the following actions at the same or different times:

     7.1 The Collateral Agent may sell or otherwise dispose of all or any part
of the Pledged Collateral, at public or private sale or at any broker’s board
or on any securities exchange, for cash, upon credit or for future delivery as
the Collateral Agent shall deem appropriate. Each purchaser at any such sale
shall hold the property sold absolutely, free from any claim or right on the
part of the Pledgor.

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     7.2 The Collateral Agent shall give the Pledgor at least ten (10) days’
prior written notice, by authenticated record, of the Collateral Agent’s
intention to make any sale of the Pledged Collateral. Such notice, (i) in the
case of a public sale, shall state the date, time and place for such sale, (ii)
in the case of a sale at a broker’s board or on a securities exchange, shall
state the board or exchange at which such sale is to be made and the day on
which the Pledged Collateral, or portion thereof, will first be offered for
sale at such board or exchange, and (iii) in the case of a private sale, shall
state the date after which any private sale or other disposition of the Pledged
Collateral shall be made. The Pledgor agrees that such written notice shall
satisfy all requirements for notice to the Pledgor which are imposed under the
UCC with respect to the exercise of the Collateral Agent’s rights and remedies
upon default. The Collateral Agent shall not be obligated to make any sale or
other disposition of any Pledged Collateral if it shall determine not to do so,
regardless of the fact that notice of sale or other disposition of such
Collateral shall have been given. The Collateral Agent may, without notice or
publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may, without further notice, be made at the time and place
to which the same was so adjourned.

     7.3 Any public sale shall be held at such time or times within ordinary
business hours and at such place or places as the Collateral Agent may fix and
state in the notice of such sale.

     7.4 At any public (or, to the extent permitted by Applicable Law, private)
sale made pursuant to this Section 7, the Collateral Agent or any other Secured
Party may bid for or purchase, free (to the extent permitted by Applicable Law)
from any right of redemption, stay, valuation or appraisal on the part of the
Pledgor, the Pledged Collateral or any part thereof offered for sale and may
make payment on account thereof by using any claim then due and payable to the
Collateral Agent or such other Secured Party from the Pledgor on account of the
Obligations as a credit against the purchase price, and the Collateral Agent or
such other Secured Party may, upon compliance with the terms of sale, hold,
retain and dispose of such property without further accountability to the
Pledgor therefor.

     7.5 For purposes hereof, a written agreement to purchase the Pledged
Collateral or any portion thereof shall be treated as a sale thereof. The
Collateral Agent shall be free to carry out such sale pursuant to such
agreement and the Pledgor shall not be entitled to the return of the Pledged
Collateral or any portion thereof subject thereto, notwithstanding the fact
that after the Collateral Agent shall have entered into such an agreement all
Events of Default shall have been remedied and the Obligations paid in full.

     7.6 As an alternative to exercising the power of sale herein conferred
upon it, the Collateral Agent may proceed by a suit or suits at law or in
equity to foreclose upon the Pledged Collateral and to sell the Pledged
Collateral or any portion thereof pursuant to a judgment or decree of a court
or courts having competent jurisdiction or pursuant to a proceeding by a
court-appointed receiver.

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     7.7 The Pledgor recognizes that (a) the Collateral Agent may be unable to
effect a public sale of all or a part of the Pledged Collateral by reason of
certain prohibitions contained in the Securities Act of 1933, 15 U.S.C. §77,
(as amended and in effect, the “Securities Act”) or the Securities laws of
various states (the “Blue Sky Laws”), but may be compelled to resort to one or
more private sales to a restricted group of purchasers who will be obliged to
agree, among other things, to acquire the Pledged Collateral for their own
account, for investment and not with a view to the distribution or resale
thereof, (b) that private sales so made may be at prices and upon other terms
less favorable to the seller than if the Pledged Collateral were sold at public
sales, (c) that neither the Collateral Agent nor any Secured Party has any
obligation to delay sale of any of the Pledged Collateral for the period of
time necessary to permit the Pledged Collateral to be registered for public
sale under the Securities Act or the Blue Sky Laws, and (d) that private sales
made under the foregoing circumstances shall be deemed to have been made in a
commercially reasonable manner.

     7.8 To the extent permitted by Applicable Law, the Pledgor hereby waives
all rights of redemption, stay, valuation and appraisal which the Pledgor now
has or may at any time in the future have under any rule of law or statute now
existing or hereafter enacted.

SECTION 8

Application of Proceeds of Sale

     The proceeds of any sale of Pledged Collateral pursuant to Section 7, as
well as any Pledged Collateral consisting of cash, shall be applied by the
Collateral Agent as required pursuant to the terms of Section 6.2 of the
Security Agreement.

     The Collateral Agent shall have absolute discretion as to the time of
application of any such proceeds, moneys or balances in accordance with this
Agreement. Upon any sale or other disposition of the Pledged Collateral by the
Collateral Agent (including pursuant to a power of sale granted by statute or
under a judicial proceeding), the receipt of the purchase money by the
Collateral Agent or of the officer making the sale or other disposition shall
be a sufficient discharge to the purchaser or purchasers of the Pledged
Collateral so sold or otherwise disposed of 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.

SECTION 9

Registration, Etc.

     If the Collateral Agent reasonably determines that it is necessary to sell
any of the Pledged Securities at a public sale, the Pledgor agrees that, upon
the occurrence and during the continuance of an Event of Default hereunder, the
Pledgor will, at any time and from time to

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time, upon the written request of the Collateral Agent, use its best
efforts to take or to cause the Issuer of such Pledged Securities to take such
action and prepare, distribute and/or file such documents, as are required or
advisable in the reasonable opinion of counsel for the Collateral Agent to
permit the public sale of such Pledged Securities. Without limiting any of its
other indemnification obligations under the Loan Documents, the Pledgor agrees
to indemnify, defend and hold harmless the Collateral Agent, each other Secured
Party, any underwriter and their respective officers, directors, Affiliates and
controlling Persons from and against all loss, liability, expenses, costs of
counsel (including the reasonable fees and expenses of legal counsel to the
Collateral Agent), and claims (including the reasonable costs of investigation)
that any of them may incur insofar as such loss, liability, expense or claim
arises out of, or is based upon, any alleged untrue statement of a material
fact contained in any prospectus (or any amendment or supplement thereto) or in
any notification or offering circular, or arises out of or is based upon any
alleged omission to state a material fact required to be stated therein or
necessary to make the statements in any thereof not misleading, except insofar
as the same may have been caused by any untrue statement or omission based upon
information furnished in writing to the Pledgor or the Issuer of such Pledged
Securities by the Collateral Agent or any other Secured Party expressly for use
therein. The Pledgor further agrees, upon such written request referred to
above, to use its best efforts to qualify, file or register, or cause the
Issuer of such Pledged Securities to qualify, file or register, any of the
Pledged Securities under the Securities Act, Blue Sky Laws or other securities
laws of such states as may be requested by the Collateral Agent and keep
effective, or cause to be kept effective, all such qualifications, filings or
registrations. The Pledgor will bear all costs and expenses of carrying out
their obligations under this Section 9. The Pledgor acknowledges that there is
no adequate remedy at law for failure by them to comply with the provisions of
this Section 9 and that such failure would not be adequately compensable in
damages, and therefore agree that their agreements contained in this Section 9
may be specifically enforced.

SECTION 10

Further Assurances

     The Pledgor agrees to do such further acts and things, and to execute and
deliver such additional conveyances, assignments, agreements and instruments,
as the Collateral Agent may at any time reasonably request in connection with
the administration and enforcement of this Agreement or with respect to the
Pledged Collateral or any part thereof or in order better to assure and confirm
unto the Collateral Agent its rights and remedies hereunder.

SECTION 11

Intent

     This Agreement is being executed and delivered by the Pledgor for the
purpose of confirming the grant of the security interest of the Collateral
Agent in the Pledged Collateral. It is intended that the security interest
granted pursuant to this Agreement is granted as a

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supplement to, and not in limitation of, the Security Interest granted to
the Collateral Agent, for the ratable benefit of the Secured Parties, under the
Security Agreement. All provisions of the Security Agreement shall apply to
the Pledged Collateral. The Collateral Agent shall have the same rights,
remedies, powers, privileges and discretions with respect to the security
interests created in the Pledged Collateral as in all other Collateral. In the
event of a conflict between this Agreement and the Security Agreement, the
terms of this Agreement shall control with respect to the Pledged Collateral
and the Security Agreement with respect to all other Collateral.

SECTION 12

Governing Law

     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAW OF THE COMMONWEALTH OF MASSACHUSETTS.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
under seal as of the day and year first above written.

	 	 	 	 	 
	PLEDGOR:	 	GAMESTOP, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ David W. Carlson
	

	 	 	 	
 
	 	 	Name: David W. Carlson
	 	 	Title: Executive Vice President and Chief
Financial Officer
	 
	 	 	 	 
	COLLATERAL AGENT:	 	FLEET RETAIL GROUP, INC., as Collateral Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Keith Vercauteren
	

	 	 	 	
 
	

	 	 	 	Keith Vercauteren
	

	 	 	 	Director

-13-exv10w13

 

Exhibit 10.13

SECURITIES COLLATERAL PLEDGE AGREEMENT

     SECURITIES COLLATERAL PLEDGE AGREEMENT (this “Agreement”) dated as of June
21, 2004 by and among each of:

     GAMESTOP OF TEXAS (GP), LLC, a limited liability company organized
under the laws of the State of Delaware having a place of business at
2250 William D. Tate Avenue, Grapevine, Texas (hereinafter, the
“Pledgor”); and

     FLEET RETAIL GROUP, INC., a Delaware corporation, as collateral
agent (in such capacity, the “Collateral Agent” for the Secured Parties
(as defined herein), in consideration of the mutual covenants contained
herein and benefits to be derived herefrom.

WITNESSETH:

     WHEREAS, the Pledgor, among others, has entered into a certain Amended and
Restated Credit Agreement dated as of even date herewith (as such may be
amended, modified, supplemented or restated hereafter, the “Credit Agreement”)
by and among (i) the Pledgor and the other Borrowers named therein, (ii) the
Lenders named therein, (iii) Fleet Retail Group, Inc., as Administrative Agent
and Collateral Agent for the Lenders and the Issuing Bank, and (iv) Fleet
National Bank, as Issuing Bank, pursuant to which Credit Agreement the Lenders
have agreed to make Loans to the Borrowers, and the Issuing Bank has agreed to
issue Letters of Credit for the account of the Borrowers, upon the terms and
subject to the conditions specified in, the Credit Agreement; and

     WHEREAS, the Pledgor, among others has entered into a certain Amended and
Restated Guaranty of even date herewith in favor of the Secured Parties (as
such may be amended, modified, supplemented or restated hereafter, the
“Guaranty”), pursuant to which Guaranty the Pledgor guarantees the Obligations
of the other Borrowers; and

     WHEREAS, the obligations of the Lenders to make Loans and of the Issuing
Bank to issue Letters of Credit are each conditioned upon, among other things,
the execution and delivery by the Pledgor of an agreement in the form hereof to
secure the Obligations (as defined herein).

     NOW, THEREFORE, in consideration of the mutual conditions and agreements
set forth in this Agreement, and for good and valuable consideration, the
receipt of which is hereby acknowledged, the Pledgor and the Collateral Agent
hereby agree as follows:

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SECTION 1

Definitions

     1.1 Generally. Unless the context otherwise requires, all capitalized
terms used but not defined herein shall have the meanings set forth in the
Credit Agreement, and all references to the UCC shall mean the Uniform
Commercial Code as in effect from time to time in the Commonwealth of
Massachusetts; provided, however, that if a term is defined in Article 9 of the
UCC differently that in another Article thereof, the term shall have the
meaning set forth in Article 9, and provided further that if by reason of
mandatory provisions of law, perfection, or the effect of perfection or
non-perfection, of the Security Interest in any Collateral or the availability
of any remedy hereunder is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than Massachusetts, “UCC” means the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such perfection or effect of perfection or non-perfection or
availability of such remedy, as the case may be.

     1.2 Definitions of Certain Terms Used Herein. As used herein, the
following terms shall have the following meanings:

     “Blue Sky Laws” shall have the meaning assigned to such term in Section
7.7 of this Agreement.

     “Credit Agreement” shall have the meaning assigned to such term in the
preliminary statement of this Agreement.

     “Guaranty” shall have the meaning assigned to such term in the preliminary
statement of this Agreement.

     “Guaranty Obligations” shall mean the obligations and liabilities
guarantied by the Guarantors pursuant to the Guaranty.

     “Investment Property” shall have the meaning given that term in the UCC.

     “Obligations” shall mean “Obligations” as defined in the Credit Agreement
and the Guaranty Obligations.

     “Pledged Collateral” shall have the meaning assigned to such term in
Section 2.5 of this Agreement.

     “Pledged Securities” shall have the meaning assigned to such term in
Section 2.1 of this Agreement.

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

     “Securities Act” shall have the meaning assigned to such term in Section
7.7 of this Agreement.

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     “Security Agreement” shall mean that certain Amended and Restated Security
Agreement dated as of even date herewith executed and delivered by the Pledgor
and the other Grantors named therein to Fleet Retail Group, Inc., as Collateral
Agent for the benefit of the Secured Parties, as amended and in effect from
time to time.

     1.3 Rules of Interpretation. The rules of interpretation specified in
Section 1.02 of the Credit Agreement shall be applicable to this Agreement.

SECTION 2

Pledge

     As security for the payment and performance, as the case may be, in full
of the Obligations, the Pledgor hereby transfers, grants, bargains, sells,
conveys, hypothecates, pledges, sets over and delivers unto the Collateral
Agent, its successors and assigns, and hereby grants to the Collateral Agent,
its successors and assigns, for the ratable benefit of the Secured Parties, a
security interest in all of the Pledgor’s right, title and interest in, to and
under:

     2.1 the partnership interests owned by the Pledgor and listed on Schedule
I hereto, and any other equity interest of any Subsidiary obtained in the
future by the Pledgor, and all securities representing all such equity
interests (the “Pledged Securities”);

     2.2 all other Investment Property that may be delivered to, and held by,
the Collateral Agent pursuant to the terms hereof;

     2.3 subject to Section 6, all distributions, cash, instruments and other
property from time to time received, receivable or otherwise distributed or
distributable, in respect of, or in exchange for, the Pledged Securities
referred to in clauses 2.1 and 2.2 above;

     2.4 subject to Section Section 6, all rights and privileges of the Pledgor
with respect to the Pledged Securities and other Investment Property referred
to in clauses 2.1, 2.2, and 2.3 above; and

     2.5 all proceeds of any of the foregoing (the items referred to in clauses
2.1 through 2.5 being collectively referred to as the “Pledged Collateral”).

     TO HAVE AND TO HOLD the Pledged Collateral, together with all right,
title, interest, powers, privileges and preferences pertaining or incidental
thereto, unto the Collateral Agent, its successors and assigns, for the benefit
of the Secured Parties, until the Obligations have been paid in full in cash,
the Lenders have no further commitment to lend, the Letter of Credit
Outstandings have been reduced to zero or fully cash collateralized in a manner
satisfactory to the Issuing Bank and the Administrative Agent, and the Issuing
Bank has no further obligation to issue Letters of Credit under the Credit
Agreement; subject, however, to the terms, covenants and conditions hereinafter
set forth.

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     Upon delivery to the Collateral Agent pursuant to Section 3 of this
Agreement, (a) all securities now or hereafter included in the Pledged
Securities shall be accompanied by instruments of transfer satisfactory to the
Collateral Agent and by such other instruments and documents as the Collateral
Agent may reasonably request, and (b) all other Investment Property comprising
part of the Pledged Collateral shall be accompanied by proper instruments of
assignment duly executed by the Pledgor and such other instruments or documents
as the Collateral Agent may reasonably request. Each delivery of Pledged
Securities shall be accompanied by a schedule describing the Pledged Securities
theretofore and then being pledged hereunder, which schedule shall be attached
hereto as Schedule I and made a part hereof. Each schedule so delivered shall
supersede any prior schedules so delivered.

SECTION 3

Delivery of the Pledged Collateral

     3.1 On or before the Closing Date, the Pledgor shall deliver or cause to
be delivered to the Collateral Agent any and all Pledged Securities, any and
all Investment Property, and any and all certificates or other instruments or
documents representing the Pledged Collateral.

     3.2 The Pledgor hereby irrevocably authorizes the Collateral Agent at any
time and from time to time to sign (if required) and file in any appropriate
filing office, wherever located, any Financing Statement that contains any
information required by the UCC of the applicable jurisdiction for the
sufficiency or filing office acceptance of any Financing Statement. The
Pledgor also authorizes the Collateral Agent to file a copy of this Agreement
in lieu of a Financing Statement, and to take any and all actions required by
any earlier versions of the UCC or by any other Applicable Law. The Pledgor
shall provide the Collateral Agent with any information the Collateral Agent
shall reasonably request in connection with any of the foregoing.

SECTION 4

Representations, Warranties and Covenants

     The Pledgor hereby represents, warrants and covenants, as to itself and
the Pledged Collateral pledged by it hereunder, to and with the Collateral
Agent that:

     4.1 the Pledged Securities represent that percentage of equity interest of
the Issuer with respect thereto as set forth on Schedule I,;

     4.2 except for the security interest granted hereunder, and except as
otherwise permitted in the Credit Agreement and the other Loan Documents, the
Pledgor (i) is and will at all times continue to be the direct owner,
beneficially and of record, of the Pledged Securities indicated on Schedule I,
(ii) holds the Pledged Collateral free and clear of all Liens, other than
Permitted Encumbrances and Liens in favor of the Collateral Agent, (iii) will
make no assign-

-4-

 

ment, pledge, hypothecation or transfer of, or create or permit to exist
any security interest in, or other Lien on, the Pledged Collateral, other than
pursuant hereto and other than Permitted Encumbrances, and (iv) subject to
Section 6, will cause any and all Pledged Collateral to be forthwith deposited
with the Collateral Agent and pledged or assigned hereunder;

     4.3 except as expressly permitted under the Credit Agreement, the Pledgor
(a) shall not vote for, or agree or consent to, the admission of any new
partners or the substitution of any partner of any Issuer the Pledged
Securities, (b) shall not vote for, or agree or consent to, the sale, transfer,
pledge or encumbrance of any partnership, interest in any Issuer of the Pledged
Securities, (c) shall not resign as a partner of any Issuer of the Pledged
Securities or take any action which could result in the termination of
Pledgor’s rights as a partner of any Issuer of the Pledged Securities, (d)
shall not vote for, or agree or consent to, the discontinuance of the business
or the dissolution or liquidation of any Issuer of any Pledged Securities, (e)
shall not vote for, or agree or consent to, the substitution, removal, or other
change of any limited partner of any Issuer of the Pledged Securities, (f)
shall not vote for, or agree or consent to, any modifications to the
organizational documents of any Issuer of the Pledged Securities, and (g) shall
not enter into any new agreements which restrict, limit or otherwise impair the
transferability of its partnership interest in any Issuer of the Pledged
Securities;

     4.4 the Pledgor (i) has the power and authority to pledge the Pledged
Collateral in the manner hereby done or contemplated and (ii) will defend its
title or interest thereto or therein against any and all Liens (other than
Permitted Encumbrances and the Lien created by this Agreement or the other Loan
Documents), however arising, of all Persons whomsoever;

     4.5 no consent of any other Person (including any other partner of any
Issuer of the Pledged Securities or stockholders or creditors of the Pledgor),
and no consent or approval of any Governmental Authority or any securities
exchange, was or is necessary to the validity of the pledge effected hereby or
to the disposition of the Pledged Collateral upon an Event of Default in
accordance with the terms of this Agreement and the Security Agreement;

     4.6 by virtue of the execution and delivery by the Pledgor of this
Agreement, and the delivery by the Pledgor to the Collateral Agent of the
certificates or documents representing or evidencing the Pledged Collateral in
accordance with the terms of this Agreement, the Collateral Agent will obtain a
valid and perfected first lien upon, and security interest in, the Pledged
Collateral as security for the payment and performance of the Obligations, to
the extent such security interest may be perfected by possession;

     4.7 the pledge effected hereby is effective to vest in the Collateral
Agent, on behalf of the Secured Parties, the rights of the Collateral Agent in
the Pledged Collateral as set forth herein;

     4.8 all the Pledged Securities have been duly authorized and validly
issued and are fully paid and nonassessable; and

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     4.9 all information set forth herein relating to the Pledged Collateral is
accurate and complete in all material respects as of the date hereof.

SECTION 5

Registration in Nominee Name; Copies of Notices

     Upon the occurrence and during the continuance of an Event of Default, the
Collateral Agent, on behalf of the Secured Parties, shall have the right (in
its reasonable discretion) to hold the Pledged Securities in its own names as
pledge or the name of its nominee (as pledgee or as sub-agent). The Pledgor
will promptly give to the Collateral Agent copies of any notices or other
communications received by it with respect to Pledged Securities registered in
the name of the Pledgor.

SECTION 6

Voting Rights; Distributions and Interest, Etc.

     6.1 Unless and until an Event of Default shall have occurred and be
continuing, the Pledgor shall be entitled to exercise any and all voting and/or
other consensual rights and powers inuring to an owner of the Pledged
Securities or any part thereof to the extent, and only to the extent, that such
rights are exercised for any purpose consistent with, and not otherwise in
violation of, the terms and conditions of this Agreement, the Credit Agreement,
the other Loan Documents and Applicable Law; provided, however, that the
Pledgor will not be entitled to exercise any such right if the result thereof
could materially and adversely affect the rights inuring to a holder of the
Pledged Securities or the rights and remedies of any of the Secured Parties
under this Agreement, the Credit Agreement or any other Loan Document or the
ability of the Secured Parties to exercise the same.

     6.2 Unless and until a Cash Dominion Event shall have occurred and be
continuing, the Pledgor shall be entitled to receive and retain any and all
cash distributions paid on the Pledged Collateral to the extent, and only to
the extent, that such cash distributions are permitted by, and otherwise paid
in accordance with, the terms and conditions of this Agreement, the Credit
Agreement, the other Loan Documents and Applicable Law. All noncash
distributions, and all distributions paid or payable in cash or otherwise in
connection with a partial or total liquidation or dissolution, return of
capital, capital surplus or paid-in surplus, and all other distributions (other
than distributions and distributions referred to in the preceding sentence)
made on or in respect of the Pledged Collateral, whether paid or payable in
cash or otherwise, whether resulting from a subdivision, combination or
reclassification of the outstanding partnership interests of the issuer of any
Pledged Securities or received in exchange for Pledged Securities or any part
thereof, or in redemption thereof, or as a result of any merger, amalgamation,
arrangement, consolidation, acquisition or other exchange of assets to which
such issuer may be a party or otherwise, shall be and become part of the
Pledged Collateral, and, if received by the Pledgor, to the extent required to
be paid to the Collateral Agent pursuant to the

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terms of the Credit Agreement or the other Loan Documents, shall not be
commingled by the Pledgor with any of its other funds or property but shall be
held separate and apart therefrom, shall be held in trust for the benefit of
the Collateral Agent and shall be forthwith delivered to the Collateral Agent
in the same form as so received (with any necessary endorsement).

     6.3 Upon the occurrence and during the continuance of an Cash Dominion
Event, all rights of the Pledgor to distributions that the Pledgor is
authorized to receive pursuant to Section 6.2 above shall cease, and all such
rights shall thereupon become vested in the Collateral Agent, which shall have
the sole and exclusive right and authority to receive and retain such
distributions. All distributions received by the Pledgor contrary to the
provisions of this Section 6.3 shall be held in trust for the benefit of the
Collateral Agent, shall be segregated from other property or funds of the
Pledgor and shall be forthwith delivered to the FRG Concentration Account in
accordance with the provisions of Section 2.22 of the Credit Agreement in the
same form as so received (with any necessary endorsement). Any and all money
and other property paid over to or received by the Collateral Agent pursuant to
the provisions of this Section 6.3 shall be applied in accordance with the
provisions of Section 8.

     6.4 Upon the occurrence and during the continuance of an Event of Default,
all rights of the Pledgor to exercise the voting and consensual rights and
powers it is entitled to exercise pursuant to 6.1 shall cease, and all such
rights shall thereupon become vested in the Collateral Agent, which shall have
the sole and exclusive right and authority to exercise such voting and
consensual rights and powers; provided that the Collateral Agent shall have the
right from time to time following and during the continuance of an Event of
Default to permit the Pledgor to exercise such rights. After all Events of
Default have been cured or waived in writing by the Collateral Agent, the
Pledgor will have the right to exercise the voting and consensual rights and
powers that they would otherwise be entitled to exercise pursuant to the terms
of 6.1.

SECTION 7

Remedies upon Default

     Upon the occurrence of an Event of Default, it is agreed that the
Collateral Agent shall have in any jurisdiction in which enforcement hereof is
sought, in addition to all other rights and remedies, the rights and remedies
of a secured party under the UCC or other Applicable Law. The rights and
remedies of the Collateral Agent shall include, without limitation, the right
to take any of or all the following actions at the same or different times:

     7.1 The Collateral Agent may sell, resell, assign and deliver, or
otherwise dispose of all or any part of the Pledged Collateral, at public or
private sale, for cash, upon credit or for future delivery as the Collateral
Agent shall deem appropriate. Each purchaser at any such sale shall hold the
property sold absolutely, free from any claim or right on the part of the
Pledgor.

     7.2 The Collateral Agent shall give the Pledgor at least ten (10) days’
prior written notice, by authenticated record, of the Collateral Agent’s
intention to make any sale of the

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Pledged Collateral. Such notice, (i) in the case of a public sale, shall
state the date, time and place for such sale, and (ii) in the case of a private
sale, shall state the date after which any private sale or other disposition of
the Pledged Collateral shall be made. The Pledgor agrees that such written
notice shall satisfy all requirements for notice to the Pledgor which are
imposed under the UCC with respect to the exercise of the Collateral Agent’s
rights and remedies upon default. The Collateral Agent shall not be obligated
to make any sale or other disposition of any Pledged Collateral if it shall
determine not to do so, regardless of the fact that notice of sale or other
disposition of such Collateral shall have been given. The Collateral Agent may,
without notice or publication, adjourn any public or private sale or cause the
same to be adjourned from time to time by announcement at the time and place
fixed for sale, and such sale may, without further notice, be made at the time
and place to which the same was so adjourned.

     7.3 Any public sale shall be held at such time or times within ordinary
business hours and at such place or places as the Collateral Agent may fix and
state in the notice of such sale.

     7.4 At any public (or, to the extent permitted by Applicable Law, private)
sale made pursuant to this Section 7, the Collateral Agent or any other Secured
Party may bid for or purchase, free (to the extent permitted by Applicable Law)
from any right of redemption, stay, valuation or appraisal on the part of the
Pledgor, the Pledged Collateral or any part thereof offered for sale and may
make payment on account thereof by using any claim then due and payable to the
Collateral Agent or such other Secured Party from the Pledgor on account of the
Obligations as a credit against the purchase price, and the Collateral Agent or
such other Secured Party may, upon compliance with the terms of sale, hold,
retain and dispose of such property without further accountability to the
Pledgor therefor.

     7.5 For purposes hereof, a written agreement to purchase the Pledged
Collateral or any portion thereof shall be treated as a sale thereof. The
Collateral Agent shall be free to carry out such sale pursuant to such
agreement and the Pledgor shall not be entitled to the return of the Pledged
Collateral or any portion thereof subject thereto, notwithstanding the fact
that after the Collateral Agent shall have entered into such an agreement all
Events of Default shall have been remedied and the Obligations paid in full.

     7.6 As an alternative to exercising the power of sale herein conferred
upon it, the Collateral Agent may proceed by a suit or suits at law or in
equity to foreclose upon the Pledged Collateral and to sell the Pledged
Collateral or any portion thereof pursuant to a judgment or decree of a court
or courts having competent jurisdiction or pursuant to a proceeding by a
court-appointed receiver.

     7.7 The Pledgor recognizes that (a) the Collateral Agent may be unable to
effect a public sale of all or a part of the Pledged Collateral by reason of
certain prohibitions contained in the Securities Act of 1933, 15 U.S.C. §77,
(as amended and in effect, the “Securities Act”) or the Securities laws of
various states (the “Blue Sky Laws”), but may be compelled to resort to one or
more private sales to a restricted group of purchasers who will be obliged to
agree, among other things, to acquire the Pledged Collateral for their own
account, for investment and not with a

-8-

 

view to the distribution or resale thereof, (b) that private sales so made
may be at prices and upon other terms less favorable to the seller than if the
Pledged Collateral were sold at public sales, (c) that neither the Collateral
Agent nor any Secured Party has any obligation to delay sale of any of the
Pledged Collateral for the period of time necessary to permit the Pledged
Collateral to be registered for public sale under the Securities Act or the
Blue Sky Laws, and (d) that private sales made under the foregoing
circumstances shall be deemed to have been made in a commercially reasonable
manner.

     7.8 To the extent permitted by Applicable Law, the Pledgor hereby waives
all rights of redemption, stay, valuation and appraisal which the Pledgor now
has or may at any time in the future have under any rule of law or statute now
existing or hereafter enacted.

SECTION 8

Application of Proceeds of Sale

     The proceeds of any sale of Pledged Collateral pursuant to Section 7, as
well as any Pledged Collateral consisting of cash, shall be applied by the
Collateral Agent as required pursuant to the terms of Section 6.2 of the
Security Agreement.

     The Collateral Agent shall have absolute discretion as to the time of
application of any such proceeds, moneys or balances in accordance with this
Agreement. Upon any sale or other disposition of the Pledged Collateral by the
Collateral Agent (including pursuant to a power of sale granted by statute or
under a judicial proceeding), the receipt of the purchase money by the
Collateral Agent or of the officer making the sale or other disposition shall
be a sufficient discharge to the purchaser or purchasers of the Pledged
Collateral so sold or otherwise disposed of 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.

SECTION 9

Registration, Etc.

     If the Collateral Agent reasonably determines that it is necessary to sell
any of the Pledged Securities at a public sale, the Pledgor agrees that, upon
the occurrence and during the continuance of an Event of Default hereunder, the
Pledgor will, at any time and from time to time, upon the written request of
the Collateral Agent, use its best efforts to take or to cause the Issuer of
such Pledged Securities to take such action and prepare, distribute and/or file
such documents, as are required or advisable in the reasonable opinion of
counsel for the Collateral Agent to permit the public sale of such Pledged
Securities. Without limiting any of its other indemnification obligations
under the Loan Documents, the Pledgor agrees to indemnify, defend and hold
harmless the Collateral Agent, each other Secured Party, any underwriter and
their

-9-

 

respective officers, directors, Affiliates and controlling Persons from
and against all loss, liability, expenses, costs of counsel (including the
reasonable fees and expenses of legal counsel to the Collateral Agent), and
claims (including the reasonable costs of investigation) that any of them may
incur insofar as such loss, liability, expense or claim arises out of, or is
based upon, any alleged untrue statement of a material fact contained in any
prospectus (or any amendment or supplement thereto) or in any notification or
offering circular, or arises out of or is based upon any alleged omission to
state a material fact required to be stated therein or necessary to make the
statements in any thereof not misleading, except insofar as the same may have
been caused by any untrue statement or omission based upon information
furnished in writing to the Pledgor or the Issuer of such Pledged Securities by
the Collateral Agent or any other Secured Party expressly for use therein. The
Pledgor further agrees, upon such written request referred to above, to use its
best efforts to qualify, file or register, or cause the Issuer of such Pledged
Securities to qualify, file or register, any of the Pledged Securities under
the Securities Act, Blue Sky Laws or other securities laws of such states as
may be requested by the Collateral Agent and keep effective, or cause to be
kept effective, all such qualifications, filings or registrations. The Pledgor
will bear all costs and expenses of carrying out their obligations under this
Section 9. The Pledgor acknowledges that there is no adequate remedy at law
for failure by them to comply with the provisions of this Section 9 and that
such failure would not be adequately compensable in damages, and therefore
agree that their agreements contained in this Section 9 may be specifically
enforced.

SECTION 10

Further Assurances

     The Pledgor agrees to do such further acts and things, and to execute and
deliver such additional conveyances, assignments, agreements and instruments,
as the Collateral Agent may at any time reasonably request in connection with
the administration and enforcement of this Agreement or with respect to the
Pledged Collateral or any part thereof or in order better to assure and confirm
unto the Collateral Agent its rights and remedies hereunder.

SECTION 11

Intent

     This Agreement is being executed and delivered by the Pledgor for the
purpose of confirming the grant of the security interest of the Collateral
Agent in the Pledged Collateral. It is intended that the security interest
granted pursuant to this Agreement is granted as a supplement to, and not in
limitation of, the Security Interest granted to the Collateral Agent, for the
ratable benefit of the Secured Parties, under the Security Agreement. All
provisions of the Security Agreement shall apply to the Pledged Collateral.
The Collateral Agent shall have the same rights, remedies, powers, privileges
and discretions with respect to the security interests created in the Pledged
Collateral as in all other Collateral. In the event of a conflict between this

-10-

 

Agreement and the Security Agreement, the terms of this Agreement shall
control with respect to the Pledged Collateral and the Security Agreement with
respect to all other Collateral.

SECTION 12

Governing Law

     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAW OF THE COMMONWEALTH OF MASSACHUSETTS.

[SIGNATURE PAGE FOLLOWS]

-11-

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
under seal as of the day and year first above written.

	 	 	 	 	 
	PLEDGOR:	 	GAMESTOP OF TEXAS (GP), LLC
	 
	 	 	 	 
	

	 	By:
	 	GameStop, Inc.
	 
	 	 	 	 
	

	 	By:
	 	/s/ David W. Carlson
	

	 	 	 	
 
	 	 	Name: David W. Carlson
	 	 	Title: Executive Vice President and Chief
Financial Officer
	 
	 	 	 	 
	COLLATERAL AGENT:	 	FLEET RETAIL GROUP, INC., as Collateral Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Keith Vercauteren
	

	 	 	 	
 
	

	 	 	 	Keith Vercauteren
	

	 	 	 	Director

-12-

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