Document:

Debtor-in-Possession Guaranty and Security Agreement

 Exhibit 10.2 

EXECUTION VERSION 

DEBTOR-IN-POSSESSION 

GUARANTY AND SECURITY AGREEMENT 

dated as of July 7, 2010 

among 
 MEDICAL
STAFFING NETWORK, INC. , 
 EACH GRANTOR 

FROM TIME TO TIME PARTY HERETO 

and 
 GENERAL
ELECTRIC CAPITAL CORPORATION, 
 as Administrative Agent and Collateral Agent 

 TABLE OF CONTENTS 

 

					
	 	  	Page
	 ARTICLE I DEFINED TERMS
	  	2
			
	 Section 1.1
	 	 Definitions
	  	2
	 Section 1.2
	 	 Certain Other Terms
	  	4
		
	 ARTICLE II GUARANTY
	  	4
			
	 Section 2.1
	 	 Guaranty
	  	4
	 Section 2.2
	 	 Limitation of Guaranty
	  	5
	 Section 2.3
	 	 Contribution
	  	5
	 Section 2.4
	 	 Authorization; Other Agreements
	  	5
	 Section 2.5
	 	 Guaranty Absolute and Unconditional
	  	6
	 Section 2.6
	 	 Waivers
	  	7
	 Section 2.7
	 	 Reliance
	  	7
		
	 ARTICLE III GRANT OF SECURITY INTEREST
	  	7
			
	 Section 3.1
	 	 Collateral
	  	7
	 Section 3.2
	 	 Grant of Security Interest in Collateral
	  	8
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	8
			
	 Section 4.1
	 	 Title; No Other Liens
	  	8
	 Section 4.2
	 	 Perfection and Priority
	  	9
	 Section 4.3
	 	 Jurisdiction of Organization; Chief Executive Office
	  	9
	 Section 4.4
	 	 Locations of Inventory, Equipment and Books and Records
	  	10
	 Section 4.5
	 	 Pledged Collateral
	  	10
	 Section 4.6
	 	 Instruments and Tangible Chattel Paper Formerly Accounts
	  	10
	 Section 4.7
	 	 Intellectual Property
	  	10
	 Section 4.8
	 	 Commercial Tort Claims
	  	11
	 Section 4.9
	 	 Specific Collateral
	  	11
	 Section 4.10
	 	 Enforcement
	  	11
	 Section 4.11
	 	 Representations and Warranties of the Credit Agreement
	  	11
		
	 ARTICLE V COVENANTS
	  	11
			
	 Section 5.1
	 	 Maintenance of Perfected Security Interest; Further Documentation and Consents
	  	11
	 Section 5.2
	 	 Changes in Locations, Name, Etc.
	  	12
	 Section 5.3
	 	 Pledged Collateral
	  	13
	 Section 5.4
	 	 Accounts
	  	13
	 Section 5.5
	 	 Commodity Contracts
	  	14

  

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	 Section 5.6
	 	 Delivery of Instruments and Tangible Chattel Paper and Control of Investment Property, Letter-of-Credit Rights and Electronic
Chattel Paper
	  	14
	 Section 5.7
	 	 Intellectual Property
	  	14
	 Section 5.8
	 	 Notices
	  	15
	 Section 5.9
	 	 Notice of Commercial Tort Claims
	  	16
	 Section 5.10
	 	 Compliance with Credit Agreement
	  	16
		
	 ARTICLE VI REMEDIAL PROVISIONS
	  	16
			
	 Section 6.1
	 	 Code and Other Remedies
	  	16
	 Section 6.2
	 	 Accounts and Payments in Respect of General Intangibles
	  	19
	 Section 6.3
	 	 Pledged Collateral
	  	20
	 Section 6.4
	 	 Proceeds to be Turned over to and Held by Administrative Agent
	  	21
	 Section 6.5
	 	 Registration Rights
	  	21
	 Section 6.6
	 	 Deficiency
	  	22
		
	 ARTICLE VII THE ADMINISTRATIVE AGENT
	  	22
			
	 Section 7.1
	 	 Administrative Agent’s Appointment as Attorney-in-Fact
	  	22
	 Section 7.2
	 	 Authorization to File Financing Statements
	  	24
	 Section 7.3
	 	 Authority of Administrative Agent
	  	24
	 Section 7.4
	 	 Duty; Obligations and Liabilities
	  	25
		
	 ARTICLE VIII MISCELLANEOUS
	  	25
			
	 Section 8.1
	 	 Reinstatement
	  	25
	 Section 8.2
	 	 Release of Collateral
	  	26
	 Section 8.3
	 	 Independent Obligations
	  	26
	 Section 8.4
	 	 No Waiver by Course of Conduct
	  	26
	 Section 8.5
	 	 Amendments in Writing
	  	27
	 Section 8.6
	 	 Additional Grantors; Additional Pledged Collateral
	  	27
	 Section 8.7
	 	 Notices
	  	27
	 Section 8.8
	 	 Successors and Assigns
	  	27
	 Section 8.9
	 	 Counterparts
	  	27
	 Section 8.10
	 	 Severability
	  	28
	 Section 8.11
	 	 Governing Law
	  	28
	 Section 8.12
	 	 WAIVER OF JURY TRIAL
	  	28

  

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 ANNEXES AND SCHEDULES 

 

			
	Annex 1	  	Form of Pledge Amendment
	Annex 2	  	Form of Joinder Agreement
	Annex 3	  	Form of Intellectual Property Security Agreement
		
	Schedule 1	  	Commercial Tort Claims
	Schedule 2	  	Filings
	Schedule 3	  	Jurisdiction of Organization; Chief Executive Office
	Schedule 4	  	Location of Inventory and Equipment
	Schedule 5	  	Pledged Collateral
	Schedule 6	  	Intellectual Property

  

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 DEBTOR-IN-POSSESSION GUARANTY AND SECURITY AGREEMENT, dated as of July 7, 2010, by
Medical Staffing Network, Inc. (the “Borrower”) and each of the other entities listed on the signature pages hereof or that becomes a party hereto pursuant to Section 8.6 (together with the Borrower, the
“Grantors”), in favor of General Electric Capital Corporation (“GE Capital”), as administrative agent and collateral agent (in such capacity, together with its successors and permitted assigns, the
“Administrative Agent”) for the Lenders and each other Secured Party (each as defined in the Credit Agreement referred to below). 

W I T N E S S E T H: 

WHEREAS, on July 2, 2010 (the “Petition Date”), the Borrower, Medical Staffing Holdings, LLC, a Delaware limited
liability company, and Medical Staffing Network Holdings, Inc., a Delaware corporation (collectively, “Holdings”) and each other Grantor (each a “Debtor” and collectively, the “Debtors”), commenced
Chapter 11 Case Nos. 10-29101 through 10-29112, administratively consolidated as Case No. 10-29101-EPK (each a “Case” and collectively, the “Cases”) under the Bankruptcy Code (as defined below) with the United
States Bankruptcy Court for the Southern District of Florida, Palm Beach Division (the “Bankruptcy Court”); 

WHEREAS, in connection with and during the pendency of the Cases and pursuant to the Senior Secured Priming and Superpriority
Debtor-in-Possession Credit Agreement dated as of July 7, 2010 (as the same may be modified from time to time, the “Credit Agreement”) among the Borrower, Holdings, the Lenders from time to time party thereto and GE Capital, as
administrative agent and collateral agent for the Lenders, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject to the conditions set forth therein; 

WHEREAS, each Grantor (other than the Borrower) has agreed to guaranty the Obligations of the Borrower, and each Grantor has agreed,
subject to entry of the Interim Order and the Final Order, to secure such Grantor’s obligations under the Loan Documents pursuant to Sections 364(c) and 364(d) of the Bankruptcy Code; 

WHEREAS, each Grantor will derive substantial direct and indirect benefits from the making of the extensions of credit under the Credit
Agreement; 
 WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of
credit to the Borrower under the Credit Agreement that the Grantors shall have executed and delivered this Agreement to the Administrative Agent; 

WHEREAS, the Interim Order and the Final Order will authorize the execution, delivery and performance of this Agreement and the grant of
a security interest, pledge and Lien on all of the Collateral (as hereinafter defined) of the Grantors and the proceeds thereof to secure the Secured Obligations (as hereinafter defined) pursuant to Sections 364(c)(2), 364(c)(3) and 364(d)(1) of the
Bankruptcy Code; 

 WHEREAS, from and after entry of the Final Order, the Secured Obligations will constitute
allowed administrative expense claims in the Cases having priority over all administrative expense claims and unsecured claims against the Grantors now existing or hereafter arising, of any kind whatsoever, including without limitation, all
administrative expense claims of the kind specified in Sections 105, 326, 330, 331, 503(b), 506(c), 507(a), 507(b), 546(c), 726, 1114, or any other provision of the Bankruptcy Code or otherwise, as provided under section 364(c)(1) of the Bankruptcy
Code, subject, as to priority only, to the Carve-Out; and 
 WHEREAS, to supplement the Interim Order and the Final Order
without in any way diminishing or limiting the effect of either the Interim Order or the Final Order or the respective security interests, pledges and Liens granted thereunder, the parties hereto desire to more fully set forth their respective
rights in connection with such security interests, pledges and Liens; 
 NOW, THEREFORE, in consideration of the premises and to
induce the Lenders and the Administrative Agent to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each Grantor hereby agrees with the Administrative Agent as
follows: 
 ARTICLE I 

DEFINED TERMS 

Section 1.1 Definitions. (a) Capital terms used herein without definition are used as defined in the Credit Agreement.

 (b) The following terms have the meanings given to them in the UCC and terms used herein without definition that are defined
in the UCC have the meanings given to them in the UCC (such meanings to be equally applicable to both the singular and plural forms of the terms defined): “account”, “account debtor”, “as-extracted
collateral”, “certificated security”, “chattel paper”, “commercial tort claim”, “commodity contract”, “deposit account”, “electronic chattel
paper”, “equipment”, “farm products”, “fixture”, “general intangible”, “goods”, “healthcare-insurance receivable”,
“instruments”, “inventory”, “investment property”, “letter-of-credit right”, “proceeds”, “record”, “securities account”,
“security”, “supporting obligation” and “tangible chattel paper”. 
 (c) The
following terms shall have the following meanings: 
 “Agreement” means this Debtor-in-Possession Guaranty and
Security Agreement. 
 “Applicable IP Office” means the United States Patent and Trademark Office, the United
States Copyright Office or any similar office or agency within or outside the United States. 
 “Avoidance
Actions” means any claims, demands, actions or causes of action available to the Debtors or their bankruptcy estates through the exercise of the powers granted pursuant to Chapter 5 of the Bankruptcy Code. 

“Avoidance Action Proceeds” means the proceeds of Avoidance Actions, including the proceeds received through demand,
settlement or trial of Avoidance Actions. 
  

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 “Collateral” has the meaning specified in Section 3.1.

 “Excluded Equity” means any voting stock in excess of 66% of the outstanding voting stock of any Excluded
Foreign Subsidiary. For the purposes of this definition, “voting stock” means, with respect to any issuer, the issued and outstanding shares of each class of Stock of such issuer entitled to vote (within the meaning of Treasury
Regulations § 1.956-2(c)(2)). 
 “Excluded Property” means, except as otherwise provided by the Interim
Order or the Final Order, Avoidance Actions and Avoidance Action Proceeds. 
 “Guaranteed Obligations” has the
meaning set forth in Section 2.1. 
 “Guarantor” means each Grantor other than the Borrower.

 “Guaranty” means the guaranty of the Guaranteed Obligations made by the Guarantors as set forth in this
Agreement. 
 “Material Intellectual Property” means Intellectual Property that is owned by or licensed to a
Grantor and material to the conduct of any Grantor’s business. 
 “Pledged Certificated Stock” means all
certificated securities and any other Stock or Stock Equivalent of any Person evidenced by a certificate, instrument or other similar document (as defined in the UCC), in each case owned by any Grantor, and any distribution of property made on, in
respect of or in exchange for the foregoing from time to time, exceeding $250,000 in the aggregate including all Stock and Stock Equivalents listed on Schedule 5. Pledged Certificated Stock excludes any Excluded Property and any Cash
Equivalents that are not held in Controlled Securities Accounts to the extent permitted by Section 7.11 of the Credit Agreement. 

“Pledged Collateral” means, collectively, the Pledged Stock and the Pledged Debt Instruments. 

“Pledged Debt Instruments” means all right, title and interest of any Grantor in instruments evidencing any Indebtedness
owed to such Grantor or other obligations, and any distribution of property made on, in respect of or in exchange for the foregoing from time to time, exceeding $250,000 in the aggregate including all Indebtedness described on Schedule 5,
issued by the obligors named therein. Pledged Debt Instruments excludes any Cash Equivalents that are not held in Controlled Securities Accounts to the extent permitted by Section 7.11 of the Credit Agreement. 

“Pledged Investment Property” means any investment property of any Grantor, and any distribution of property made on, in
respect of or in exchange for the foregoing from time to time, exceeding $250,000 in the aggregate other than any Pledged Stock or Pledged Debt Instruments. Pledged Investment Property excludes any Cash Equivalents that are not held in Controlled
Securities Accounts to the extent permitted by Section 7.11 of the Credit Agreement. 
 “Pledged
Stock” means all Pledged Certificated Stock and all Pledged Uncertificated Stock. 
  

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 “Pledged Uncertificated Stock” means any Stock or Stock Equivalent of any
Person that is not Pledged Certificated Stock, including all right, title and interest of any Grantor as a limited or general partner in any partnership not constituting Pledged Certificated Stock or as a member of any limited liability company, all
right, title and interest of any Grantor in, to and under any Constituent Document of any partnership or limited liability company to which it is a party, and any distribution of property made on, in respect of or in exchange for the foregoing from
time to time, exceeding $250,000 in the aggregate including in each case those interests set forth on Schedule 5, to the extent such interests are not certificated. Pledged Uncertificated Stock excludes any Excluded Property and any Cash
Equivalents that are not held in Controlled Securities Accounts to the extent permitted by Section 7.11 of the Credit Agreement. 

“Software” means (a) all computer programs, including source code and object code versions, (b) all data,
databases and compilations of data, whether machine readable or otherwise, and (c) all documentation, training materials and configurations related to any of the foregoing. 

“Subsidiary Guarantor” means any Guarantor that is a Subsidiary of the Borrower. 

“UCC” means 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 any applicable Requirements of Law, any of the attachment, perfection or priority of the Administrative Agent’s or any other Secured Party’s security interest in
any Collateral is governed by the Uniform Commercial Code of a jurisdiction other than the State of New York, “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 the definitions related to or otherwise used in such provisions. 

“Vehicles” means all vehicles covered by a certificate of title law of any state. 

Section 1.2 Certain Other Terms. (a) The meanings given to terms defined herein shall be equally applicable to both
the singular and plural forms of such terms. The terms “herein”, “hereof” and similar terms refer to this Agreement as a whole and not to any particular Article, Section or clause in this Agreement. References
herein to an Annex, Schedule, Article, Section or clause refer to the appropriate Annex or Schedule to, or Article, Section or clause in this Agreement. Where the context requires, provisions relating to any Collateral when used in relation to a
Grantor shall refer to such Grantor’s Collateral or any relevant part thereof. 
 (b) Section 1.5
(Interpretation) of the Credit Agreement is applicable to this Agreement as and to the extent set forth therein. 

ARTICLE II 

GUARANTY 

Section 2.1 Guaranty. To induce the Lenders to make the Loans, each Guarantor hereby, jointly and severally, absolutely,
unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, the full and punctual payment when due, whether at stated maturity or earlier, by reason of acceleration, mandatory prepayment or otherwise in accordance with
any Loan Document, of all the Obligations of the Borrower whether existing on the date hereof or hereinafter incurred or created (the “Guaranteed Obligations”). This Guaranty by each Guarantor hereunder constitutes a guaranty of
payment and not of collection. 
  

 4 

 Section 2.2 Limitation of Guaranty. Any term or provision of this Guaranty or
any other Loan Document to the contrary notwithstanding, the maximum aggregate amount for which any Subsidiary Guarantor shall be liable hereunder shall not exceed the maximum amount for which such Subsidiary Guarantor can be liable without
rendering this Guaranty or any other Loan Document, as it relates to such Subsidiary Guarantor, subject to avoidance under applicable Requirements of Law relating to fraudulent conveyance or fraudulent transfer (including the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act and Section 548 of title 11 of the United States Code or any applicable provisions of comparable Requirements of Law) (collectively, “Fraudulent Transfer Laws”). Any analysis
of the provisions of this Guaranty for purposes of Fraudulent Transfer Laws shall take into account the right of contribution established in Section 2.3 and, for purposes of such analysis, give effect to any discharge of intercompany
debt as a result of any payment made under the Guaranty. 
 Section 2.3 Contribution. To the extent that any
Subsidiary Guarantor shall be required hereunder to pay any portion of any Guaranteed Obligation exceeding the greater of (a) the amount of the economic benefit actually received by such Subsidiary Guarantor from the Loans and other Obligations
and (b) the amount such Subsidiary Guarantor would otherwise have paid if such Subsidiary Guarantor had paid the aggregate amount of the Guaranteed Obligations (excluding the amount thereof repaid by the Borrower and Holdings) in the same
proportion as such Subsidiary Guarantor’s net worth on the date enforcement is sought hereunder bears to the aggregate net worth of all the Subsidiary Guarantors on such date, then such Guarantor shall be reimbursed by such other Subsidiary
Guarantors for the amount of such excess, pro rata, based on the respective net worth of such other Subsidiary Guarantors on such date. 

Section 2.4 Authorization; Other Agreements. The Secured Parties are hereby authorized, without notice to or demand upon
any Guarantor and without discharging or otherwise affecting the obligations of any Guarantor hereunder and without incurring any liability hereunder, from time to time, to do each of the following: 

(a) (i) modify, amend, supplement or otherwise change, (ii) accelerate or otherwise change the time of payment of or
(iii) waive or otherwise consent to noncompliance with, any Guaranteed Obligation or any Loan Document pursuant to the terms thereof; 

(b) apply to the Guaranteed Obligations any sums by whomever paid or however realized to any Guaranteed Obligation in such order as
provided in the Loan Documents; 
 (c) refund at any time any payment received by any Secured Party in respect of any Guaranteed
Obligation; 
  

 5 

 (d) (i) Sell, exchange, enforce, waive, substitute, liquidate, terminate, release, abandon,
fail to perfect, subordinate, accept, substitute, surrender, exchange, affect, impair or otherwise alter or release any Collateral for any Guaranteed Obligation or any other guaranty therefor in any manner, (ii) receive, take and hold
additional Collateral to secure any Guaranteed Obligation, (iii) add, release or substitute any one or more other Guarantors, makers or endorsers of any Guaranteed Obligation or any part thereof and (iv) otherwise deal in any manner with
the Borrower and any other Guarantor, maker or endorser of any Guaranteed Obligation or any part thereof; and 
 (e) settle,
release, compromise, collect or otherwise liquidate the Guaranteed Obligations. 
 Section 2.5 Guaranty Absolute and
Unconditional. Each Guarantor hereby waives and agrees not to assert any defense, whether arising in connection with or in respect of any of the following or otherwise, and hereby agrees that its obligations under this Guaranty are irrevocable,
absolute and unconditional and shall not be discharged as a result of or otherwise affected by any of the following (which may not be pleaded and evidence of which may not be introduced in any proceeding with respect to this Guaranty, in each case
except as otherwise agreed in writing by the Administrative Agent): 
 (a) the invalidity or unenforceability of any obligation
of the Borrower or any other Guarantor under any Loan Document or any other agreement or instrument relating thereto (including any amendment, consent or waiver thereto), or any security for, or other guaranty of, any Guaranteed Obligation or any
part thereof, or the lack of perfection or continuing perfection or failure of priority of any security for the Guaranteed Obligations or any part thereof; 

(b) the absence of (i) any attempt to collect any Guaranteed Obligation or any part thereof from the Borrower or any other Guarantor
or other action to enforce the same or (ii) any action to enforce any Loan Document or any Lien thereunder; 
 (c) the
failure by any Person to take any steps to perfect and maintain any Lien on, or to preserve any rights with respect to, any Collateral; 

(d) any workout, insolvency, bankruptcy proceeding, reorganization, arrangement, liquidation or dissolution by or against the Borrower,
any other Guarantor or any of the Borrower’s other Subsidiaries or any procedure, agreement, order, stipulation, election, action or omission thereunder, including any discharge or disallowance of, or bar or stay against collecting, any
Guaranteed Obligation (or any interest thereon) in or as a result of any such proceeding; 
 (e) any foreclosure, whether or not
through judicial sale, and any other Sale of any Collateral or any election following the occurrence of an Event of Default by any Secured Party to proceed separately against any Collateral in accordance with such Secured Party’s rights under
any applicable Requirements of Law; or 
 (f) any other defense, setoff, counterclaim or any other circumstance that might
otherwise constitute a legal or equitable discharge of the Borrower, any other Guarantor or any of the Borrower’s other Subsidiaries, in each case other than the payment in full of the Guaranteed Obligations. 

 

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 Section 2.6 Waivers. Each Guarantor hereby unconditionally and irrevocably
waives and agrees not to assert any claim, defense, setoff or counterclaim based on diligence, promptness, presentment, requirements for any demand or notice hereunder including any of the following: (a) any demand for payment or performance
and protest and notice of protest, (b) any notice of acceptance, (c) any presentment, demand, protest or further notice or other requirements of any kind with respect to any Guaranteed Obligation (including any accrued but unpaid interest
thereon) becoming immediately due and payable and (d) any other notice in respect of any Guaranteed Obligation or any part thereof, and any defense arising by reason of any disability or other defense of the Borrower or any other Guarantor.
Except as provided hereunder, each Guarantor further unconditionally and irrevocably agrees not to (x) enforce or otherwise exercise any right of subrogation or any right of reimbursement or contribution or similar right against the Borrower or
any other Guarantor by reason of any Loan Document or any payment made thereunder or (y) assert any claim, defense, setoff or counterclaim it may have against any other Loan Party or set off any of its obligations to such other Loan Party
against obligations of such Loan Party to such Guarantor. No obligation of any Guarantor hereunder shall be discharged other than by complete performance. 

Section 2.7 Reliance. Each Guarantor hereby assumes responsibility for keeping itself informed of the financial condition
of the Borrower, each other Guarantor and any other guarantor, maker or endorser of any Guaranteed Obligation or any part thereof, and of all other circumstances bearing upon the risk of nonpayment of any Guaranteed Obligation or any part thereof
that diligent inquiry would reveal, and each Guarantor hereby agrees that no Secured Party shall have any duty to advise any Guarantor of information known to it regarding such condition or any such circumstances. In the event any Secured Party, in
its sole discretion, undertakes at any time or from time to time to provide any such information to any Guarantor, such Secured Party shall be under no obligation to (a) undertake any investigation not a part of its regular business routine,
(b) disclose any information that such Secured Party, pursuant to accepted or reasonable commercial finance or banking practices, wishes to maintain confidential or (c) make any future disclosures of such information or any other
information to any Guarantor. 
 ARTICLE III 

GRANT OF SECURITY INTEREST 

Section 3.1 Collateral. For the purposes of this Agreement, all of the following property now owned or at any time
hereafter acquired by a Grantor or in which a Grantor now has or at any time in the future may acquire any right, title or interest is collectively referred to as the “Collateral”: 

(a) all accounts, chattel paper, deposit accounts, documents (as defined in the UCC), equipment, general intangibles, instruments,
inventory, investment property and any supporting obligations related thereto; 
  

 7 

 (b) the commercial tort claims described on Schedule 1 and on any supplement
thereto received by the Administrative Agent pursuant to Section 5.9; 
 (c) all books and records pertaining to the
other property described in this Section 3.1; 
 (d) all property of such Grantor held by any Secured Party, including
all property of every description, in the custody of or in transit to such Secured Party for any purpose, including safekeeping, collection or pledge, for the account of such Grantor or as to which such Grantor may have any right or power, including
but not limited to cash; 
 (e) all other goods (including but not limited to fixtures) and personal property of such Grantor,
whether tangible or intangible and wherever located; and 
 (f) to the extent not otherwise included, all proceeds of the
foregoing; 
 provided, however, that “Collateral” shall not include any Excluded Property; and provided,
further, that if and when any property shall cease to be Excluded Property, such property shall be deemed at all times from and after the date hereof to constitute Collateral. 

Section 3.2 Grant of Security Interest in Collateral. Each Grantor, as collateral security for the prompt and complete
payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Obligations of such Grantor (the “Secured Obligations”), hereby mortgages, pledges and hypothecates to the Administrative Agent for
the benefit of the Secured Parties, and grants to the Administrative Agent for the benefit of the Secured Parties a Lien on and security interest in, all of its right, title and interest in, to and under the Collateral of such Grantor. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

To induce the Lenders and the Administrative Agent to enter into the Loan Documents, each Grantor hereby represents and warrants each of
the following to the Administrative Agent, the Lenders and the other Secured Parties: 
 Section 4.1 Title; No Other
Liens. Except for the Lien granted to the Administrative Agent pursuant to this Agreement and other Permitted Liens (except for those Permitted Liens not permitted to exist on any Collateral) under any Loan Document (including
Section 4.2), such Grantor owns each item of the Collateral free and clear of any and all Liens or claims of others. Such Grantor (a) is the record and beneficial owner of the Collateral pledged by it hereunder constituting
instruments or certificates and (b) has rights in or the power to transfer each other item of Collateral in which a Lien is granted by it hereunder, free and clear of any other Lien. 

 

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 Section 4.2 Perfection and Priority. (a) The security interest granted
pursuant to this Agreement constitutes a valid and continuing perfected security interest in favor of the Administrative Agent in all Collateral subject, for the following Collateral, to the occurrence of the following: (i) in the case of all
Collateral in which a security interest may be perfected by filing a financing statement under the UCC, the completion of the filings and other actions specified on Schedule 2 (which, in the case of all filings and other documents referred to
on such schedule, have been delivered to the Administrative Agent in completed and duly authorized form), (ii) with respect to any deposit account, the execution of Control Agreements, (iii) in the case of all Copyrights, Trademarks and
Patents for which UCC filings are insufficient, all appropriate filings having been made with the United States Copyright Office or the United States Patent and Trademark Office, as applicable, (iv) in the case of letter-of-credit rights that
are not supporting obligations of Collateral, the execution of a Contractual Obligation granting control to the Administrative Agent over such letter-of-credit rights, (v) in the case of electronic chattel paper, the completion of all steps
necessary to grant control to the Administrative Agent over such electronic chattel paper and (vi) in the case of Vehicles, the actions required under Section 5.1(e). Such security interest shall be prior to all other Liens on the
Collateral except for Customary Permitted Liens having priority over the Administrative Agent’s Lien by operation of law or unless otherwise permitted by any Loan Document upon (i) in the case of all Pledged Certificated Stock, Pledged
Debt Instruments and Pledged Investment Property, the delivery thereof to the Administrative Agent of such Pledged Certificated Stock, Pledged Debt Instruments and Pledged Investment Property consisting of instruments and certificates, in each case
properly endorsed for transfer to the Administrative Agent or in blank, (ii) in the case of all Pledged Investment Property not in certificated form, the execution of Control Agreements with respect to such investment property and (iii) in
the case of all other instruments and tangible chattel paper that are not Pledged Certificated Stock, Pledged Debt Instruments or Pledged Investment Property, the delivery thereof to the Administrative Agent of such instruments and tangible chattel
paper. Except as set forth in this Section 4.2, all actions by such Grantor necessary or desirable to perfect the Lien granted hereunder on the Collateral have been duly taken. 

(b) The provisions of this Agreement, the Interim Order and the Final Order are effective to create in favor of the Administrative Agent,
for the benefit of the Secured Parties, legal, valid and perfected Liens on and security interests (having the priority provided for herein, in the Interim Order and in the Final Order) in all right, title and interest in the Collateral, enforceable
against each Grantor. Pursuant to clause (c) of Section 364 of the Bankruptcy Code, the Interim Order and the Final Order, all Obligations of Grantors under this Agreement and the Credit Agreement and each other Loan Document at all times
shall constitute allowed super-priority administrative expense claims in each of the Cases having priority over all administrative expenses of the kinds specified in, or ordered pursuant to, Sections 105, 326, 328, 330, 331, 503(b), 506(c), 507(a),
507(b), 546(c), 726, 1114 or any other provision of the Bankruptcy Code or otherwise, and shall at all times be senior to the rights of Loan Parties, the estates of Loan Parties, and any successor trustee or estate representative in the Cases or any
subsequent proceeding or case under the Bankruptcy Code, subject only to amounts then outstanding pursuant to the Carve-Out and the Pre-Petition Protective Advances. 

Section 4.3 Jurisdiction of Organization; Chief Executive Office. Such Grantor’s jurisdiction of organization, legal
name and organizational identification number, if any, and the location of such Grantor’s chief executive office or sole place of business, in each case as of the date hereof, are specified on Schedule 3 and such
Schedule 3 also lists all jurisdictions of incorporation, legal names and locations of such Grantor’s chief executive office or sole place of business for the five years preceding the date hereof. 

 

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 Section 4.4 Locations of Inventory, Equipment and Books and Records. On the
date hereof, such Grantor’s inventory and equipment (other than inventory or equipment in transit) and books and records concerning the Collateral are kept at the locations listed on Schedule 4 and such Schedule 4 also
lists the locations of such inventory, equipment and books and records for the five years preceding the date hereof. 

Section 4.5 Pledged Collateral. (a) The Pledged Stock pledged by such Grantor hereunder (a) is listed on
Schedule 5 and constitutes that percentage of the issued and outstanding equity of all classes of each issuer thereof as set forth on Schedule 5, (b) has been duly authorized and validly issued and is fully paid and
nonassessable (other than Pledged Stock in limited liability companies and partnerships) and (c) constitutes the legal, valid and binding obligation of the obligor with respect thereto, enforceable in accordance with its terms. 

(b) As of the Closing Date, all Pledged Collateral (other than Pledged Uncertificated Stock) and all Pledged Investment Property
consisting of instruments and certificates has been delivered to the Administrative Agent in accordance with Section 5.3(a). 

(c) Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent shall be entitled to exercise all of
the rights of the Grantor granting the security interest in any Pledged Stock, and a transferee or assignee of such Pledged Stock shall become a holder of such Pledged Stock to the same extent as such Grantor and be entitled to participate in the
management of the issuer of such Pledged Stock to the same extent as such Grantor and, upon the transfer of the entire interest of such Grantor, such Grantor shall, by operation of law, cease to be a holder of such Pledged Stock. 

Section 4.6 Instruments and Tangible Chattel Paper Formerly Accounts. No amount payable to such Grantor under or in
connection with any account is evidenced by any instrument or tangible chattel paper that has not been delivered to the Administrative Agent, properly endorsed for transfer, to the extent delivery is required by Section 5.6(a).

 Section 4.7 Intellectual Property. (a) Schedule 6 sets forth a true and complete list of the
following Intellectual Property such Grantor owns, licenses or otherwise has the right to use: (i) Intellectual Property that is registered or subject to applications for registration, (ii) Internet Domain Names and (iii) Material
Intellectual Property and material Software, separately identifying that owned and licensed to such Grantor and including for each of the foregoing items (1) the owner, (2) the title, (3) the jurisdiction in which such item has been
registered or otherwise arises or in which an application for registration has been filed, (4) as applicable, the registration or application number and registration or application date and (5) any IP Licenses or other rights (including
franchises) granted by the Grantor with respect thereto. 
 (b) To such Grantor’s knowledge, on the Closing Date, all
Material Intellectual Property owned by such Grantor is valid, in full force and effect, subsisting, unexpired and enforceable, and no Material Intellectual Property has been abandoned. No breach or default of any material IP License shall be caused
by, and the ownership, use, validity or enforceability of, or any rights of such Grantor in, any Material Intellectual Property shall not be limited or impaired by, the consummation of the transactions contemplated by any Loan Document. There are no
pending (or, to the knowledge of such Grantor, threatened) actions, investigations, suits, proceedings, audits, claims, demands, orders or disputes challenging the ownership, use, validity, enforceability of, or such Grantor’s rights in, any
Material Intellectual Property of such Grantor. To such Grantor’s knowledge, no Person has been or is infringing, misappropriating, diluting, violating or otherwise impairing any Material Intellectual Property of such Grantor. Such Grantor, and
to such Grantor’s knowledge each other party thereto, is not in material breach or default of any material IP License. 
  

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 Section 4.8 Commercial Tort Claims. The only commercial tort claims of any
Grantor existing on the date hereof (regardless of whether the amount, defendant or other material facts can be determined and regardless of whether such commercial tort claim has been asserted, threatened or has otherwise been made known to the
obligee thereof or whether litigation has been commenced for such claims) are those listed on Schedule 1, which sets forth such information separately for each Grantor. 

Section 4.9 Specific Collateral. None of the Collateral is or is proceeds or products of farm products, as-extracted
collateral, health-care-insurance receivables or timber to be cut. 
 Section 4.10 Enforcement. Subject to
Section 4.2, no Permit, notice to or filing with any Governmental Authority or any other Person or any consent from any Person and, subject to entry of the Interim Order and the Final Order, no further order of the Bankruptcy Court is
required for the exercise by the Administrative Agent of its rights (including voting rights) provided for in this Agreement or the enforcement of remedies in respect of the Collateral pursuant to this Agreement, including the transfer of any
Collateral, except as may be required in connection with the disposition of any portion of the Pledged Collateral by laws affecting the offering and sale of securities generally or any approvals that may be required to be obtained from any bailees
or landlords to collect the Collateral. 
 Section 4.11 Representations and Warranties of the Credit Agreement.
The representations and warranties as to such Grantor and its Subsidiaries made by the Borrower in Article IV (Representations and Warranties) of the Credit Agreement are true and correct on each date as required by
Section 3.2(b) of the Credit Agreement. 
 ARTICLE V 

COVENANTS 
 Each
Grantor agrees with the Administrative Agent to the following, as long as any Obligation or Commitment remains outstanding and, in each case, unless the Required Lenders otherwise consent in writing: 

Section 5.1 Maintenance of Perfected Security Interest; Further Documentation and Consents. (a) Generally.
Such Grantor shall (i) not use or permit any Collateral to be used unlawfully or in violation of any provision of any Loan Document, any Requirements of Law or any policy of insurance covering the Collateral and (ii) not enter into any
Contractual Obligation or undertaking restricting the right or ability of such Grantor or the Administrative Agent to Sell any Collateral if such restriction would have a Material Adverse Effect. 

 

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 (b) Such Grantor shall maintain the security interest created by this Agreement as a
perfected security interest having at least the priority described in Section 4.2 and shall defend such security interest and such priority against the claims and demands of all Persons. 

(c) Such Grantor shall furnish to the Administrative Agent such documents in connection with the Collateral as the Administrative Agent
may reasonably request, all in reasonable detail and in form and substance satisfactory to the Administrative Agent. 
 (d) At
any time and from time to time, upon the written request of the Administrative Agent, such Grantor shall, for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, (i) promptly
and duly execute and deliver, and have recorded, such further documents, including an authorization to file (or, as applicable, the filing) of any financing statement or amendment under the UCC (or other filings under similar Requirements of Law) in
effect in any jurisdiction with respect to the security interest created hereby and (ii) take such further action as the Administrative Agent may reasonably request, including (A) using commercially reasonable efforts to secure all
approvals necessary or appropriate for the assignment to or for the benefit of the Administrative Agent of any Contractual Obligation, including any IP License, held by such Grantor and to enforce the security interests granted hereunder and
(B) executing and delivering any Control Agreements with respect to deposit accounts and securities accounts. 
 (e) If
requested by the Administrative Agent, the Grantor shall arrange for the Administrative Agent’s security interest to be noted on the certificate of title of each Vehicle and shall file any other necessary documentation in each jurisdiction that
the Administrative Agent shall deem advisable to perfect its security interests in any Vehicle. 
 (f) To ensure that any of the
Excluded Property set forth in clause (ii) of the definition of “Excluded Property” becomes part of the Collateral, such Grantor shall use commercially reasonable efforts to obtain any required consents from any Person other
than the Borrower and its Affiliates with respect to any permit or license or any Contractual Obligation with such Person entered into by such Grantor that requires such consent as a condition to the creation by such Grantor of a Lien on any right,
title or interest in such permit, license or Contractual Obligation or any Stock or Stock Equivalent related thereto. 

Section 5.2 Changes in Locations, Name, Etc. Except upon 30 days’ prior written notice to the Administrative
Agent and delivery to the Administrative Agent of (a) all documents reasonably requested by the Administrative Agent to maintain the validity, perfection and priority of the security interests provided for herein and (b) if applicable, a
written supplement to Schedule 4 showing any additional locations at which inventory or equipment shall be kept, such Grantor shall not do any of the following: 

(i) permit any inventory or equipment to be kept at a location other than those listed on Schedule 4, except for
inventory or equipment in transit; 
 (ii) change its jurisdiction of organization or the location of its chief
executive office, in each case from that referred to in Section 4.3; or 
  

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 (iii) change its legal name or organizational identification number, if any,
or corporate, limited liability company, partnership or other organizational structure to such an extent that any financing statement filed in connection with this Agreement would become misleading. 

Section 5.3 Pledged Collateral. (a) Delivery of Pledged Collateral. Such Grantor shall (i) deliver to
the Administrative Agent, in suitable form for transfer and in form and substance satisfactory to the Administrative Agent, (A) all Pledged Certificated Stock, (B) all Pledged Debt Instruments and (C) all certificates and instruments
evidencing Pledged Investment Property and (ii) maintain all other Pledged Investment Property in a Controlled Securities Account. 

(b) Event of Default. During the continuance of an Event of Default, the Administrative Agent shall have the right, at any time in
its discretion and without notice to the Grantor, to (i) transfer to or to register in its name or in the name of its nominees any Pledged Collateral or any Pledged Investment Property and (ii) exchange any certificate or instrument
representing or evidencing any Pledged Collateral or any Pledged Investment Property for certificates or instruments of smaller or larger denominations. 

(c) Cash Distributions with respect to Pledged Collateral. Except as provided in Article VI, such Grantor shall be entitled to
receive all cash distributions paid in respect of the Pledged Collateral. 
 (d) Voting Rights. Except as provided in
Article VI, such Grantor shall be entitled to exercise all voting, consent and corporate, partnership, limited liability company and similar rights with respect to the Pledged Collateral; provided, however, that no vote shall be
cast, consent given or right exercised or other action taken by such Grantor that would impair the Collateral or be inconsistent with or result in any violation of any provision of any Loan Document. 

Section 5.4 Accounts. (a) Such Grantor shall not, other than in the ordinary course of business, (i) grant
any extension of the time of payment of any account, (ii) compromise or settle any account for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any account, (iv) allow any
credit or discount on any account or (v) amend, supplement or modify any account in any manner that could adversely affect the value thereof. 

(b) The Administrative Agent shall have the right to make test verifications of the Accounts in any manner and through any medium that it
reasonably considers advisable, and such Grantor shall furnish all such assistance and information as the Administrative Agent may reasonably require in connection therewith. At any time and from time to time, upon the Administrative Agent’s
request, such Grantor shall cause independent public accountants or others satisfactory to the Administrative Agent to furnish to the Administrative Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the
accounts; provided, however, that unless a Default shall be continuing, the Administrative Agent shall request no more than one such report during any calendar year. 

 

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 Section 5.5 Commodity Contracts. Such Grantor shall not have any
commodity contract other than with a Person approved by the Administrative Agent and subject to a Control Agreement. 

Section 5.6 Delivery of Instruments and Tangible Chattel Paper and Control of Investment Property, Letter-of-Credit Rights
and Electronic Chattel Paper. (a) If any amount in excess of $250,000 payable under or in connection with any Collateral owned by such Grantor shall be or become evidenced by an instrument or tangible chattel paper other than such
instrument delivered in accordance with Section 5.3(a) and in the possession of the Administrative Agent, such Grantor shall mark all such instruments and tangible chattel paper with the following legend: “This writing and the
obligations evidenced or secured hereby are subject to the security interest of General Electric Capital Corporation, as Administrative Agent” and, at the request of the Administrative Agent, shall promptly deliver such instrument or tangible
chattel paper to the Administrative Agent, duly indorsed in a manner satisfactory to the Administrative Agent. 
 (b) Such
Grantor shall not grant “control” (within the meaning of such term under Article 9-106 of the UCC) over any investment property to any Person other than the Administrative Agent. 

(c) If such Grantor is or becomes the beneficiary of a letter of credit that is (i) not a supporting obligation of any Collateral
and (ii) in excess of $250,000, such Grantor shall promptly, and in any event within 2 Business Days after becoming a beneficiary, notify the Administrative Agent thereof and enter into a Contractual Obligation with the Administrative Agent,
the issuer of such letter of credit or any nominated person with respect to the letter-of-credit rights under such letter of credit. Such Contractual Obligation shall assign such letter-of-credit rights to the Administrative Agent and such
assignment shall be sufficient to grant control for the purposes of Section 9-107 of the UCC (or any similar section under any equivalent UCC). Such Contractual Obligation shall also direct all payments thereunder to a Cash Collateral Account.
The provisions of the Contractual Obligation shall be in form and substance reasonably satisfactory to the Administrative Agent. 

(d) If any amount in excess of $250,000 payable under or in connection with any Collateral owned by such Grantor shall be or become
evidenced by electronic chattel paper, such Grantor shall take all steps necessary to grant the Administrative Agent control of all such electronic chattel paper for the purposes of Section 9-105 of the UCC (or any similar section under any
equivalent UCC) and all “transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act. 

Section 5.7 Intellectual Property. (a) Within 30 days after any change to Schedule 6 for such Grantor,
such Grantor shall provide the Administrative Agent notification thereof and the short-form intellectual property agreements and assignments as described in this Section 5.7 and other documents that the Administrative Agent reasonably
requests with respect thereto. 
  

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 (b) Such Grantor shall (and shall cause all its licensees to) (i) (1) continue to
use each Trademark included in the Material Intellectual Property in order to maintain such Trademark in full force and effect with respect to each class of goods for which such Trademark is currently used, free from any claim of abandonment for
non-use, (2) maintain at least the same standards of quality of products and services offered under such Trademark as are currently maintained, (3) use such Trademark with the appropriate notice of registration and all other notices and
legends required by applicable Requirements of Law and (4) not adopt or use any other Trademark that is confusingly similar or a colorable imitation of such Trademark unless the Administrative Agent shall obtain a perfected security interest in
such other Trademark pursuant to this Agreement and (ii) not do any act or omit to do any act whereby (w) such Trademark (or any goodwill associated therewith) may become destroyed, invalidated, impaired or harmed in any material way,
(x) any Patent included in the Material Intellectual Property may become forfeited, misused, unenforceable, abandoned or dedicated to the public, (y) any portion of the Copyrights included in the Material Intellectual Property may become
invalidated, otherwise impaired or fall into the public domain or (z) any Trade Secret included in the Material Intellectual Property may become publicly available or otherwise unprotectable. 

(c) Such Grantor shall notify the Administrative Agent promptly if it knows that any application or registration relating to any Material
Intellectual Property may become forfeited, misused, unenforceable, abandoned or dedicated to the public, or of any adverse determination regarding the validity or enforceability or such Grantor’s ownership of, interest in, right to use,
register, own or maintain any Material Intellectual Property (including the institution of, or any such determination or development in, any proceeding relating to the foregoing in any Applicable IP Office). Such Grantor shall take all actions that
are necessary or reasonably requested by the Administrative Agent to maintain and pursue each application (and to obtain the relevant registration or recordation) and to maintain each registration and recordation included in the Material
Intellectual Property. 
 (d) Such Grantor shall not knowingly do any act or omit to do any act to infringe, misappropriate,
dilute, violate or otherwise impair the Intellectual Property of any other Person. In the event that any Material Intellectual Property of such Grantor is or has been infringed, misappropriated, violated, diluted or otherwise impaired by a third
party, upon having knowledge thereof, such Grantor shall take such action as it reasonably deems appropriate under the circumstances in response thereto, such as promptly bringing suit and recovering all damages therefor. 

(e) Such Grantor shall execute and deliver to the Administrative Agent in form and substance reasonably acceptable to the Administrative
Agent and suitable for (i) filing in the Applicable IP Office the short-form intellectual property security agreements in the form attached hereto as Annex 3 for all Copyrights, Trademarks, Patents and IP Licenses of such Grantor and
(ii) recording with the appropriate Internet domain name registrar, a duly executed form of assignment for all Internet Domain Names of such Grantor (together with appropriate supporting documentation as may be requested by the Administrative
Agent). 
 Section 5.8 Notices. Such Grantor shall promptly notify the Administrative Agent in writing of its
acquisition of any interest hereafter in property that is of a type where a security interest or lien must be or may be registered, recorded or filed under, or notice thereof given under, any federal statute or regulation. 

 

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 Section 5.9 Notice of Commercial Tort Claims. Such Grantor agrees that,
if it shall acquire any interest in any commercial tort claim (whether from another Person or because such commercial tort claim shall have come into existence), (i) such Grantor shall, promptly upon such acquisition, deliver to the
Administrative Agent, in each case in form and substance satisfactory to the Administrative Agent, a notice of the existence and nature of such commercial tort claim and a supplement to Schedule 1 containing a specific description of such
commercial tort claim, (ii) Section 3.1 shall apply to such commercial tort claim and (iii) such Grantor shall execute and deliver to the Administrative Agent, in each case in form and substance satisfactory to the
Administrative Agent, any document, and take all other action, deemed by the Administrative Agent to be reasonably necessary or appropriate for the Administrative Agent to obtain, on behalf of the Lenders, a perfected security interest having at
least the priority set forth in Section 4.2 in all such commercial tort claims. Any supplement to Schedule 1 delivered pursuant to this Section 5.9 shall, after the receipt thereof by the Administrative Agent, become
part of Schedule 1 for all purposes hereunder other than in respect of representations and warranties made prior to the date of such receipt. 

Section 5.10 Compliance with Credit Agreement. Such Grantor agrees to comply with all covenants and other provisions
applicable to it under the Credit Agreement, including Sections 2.17 (Taxes), 11.4 (Costs and Expenses) and 11.5 (Indemnities) of the Credit Agreement and agrees to the same submission to jurisdiction as
that agreed to by the Borrower in the Credit Agreement. 
 ARTICLE VI 

REMEDIAL PROVISIONS 

Section 6.1 Code and Other Remedies. (a) UCC Remedies. During the continuance of an Event of Default,
subject to the Interim Order and the Final Order, and without further order from the Bankruptcy Court except as otherwise provided by the Interim Order or the Final Order, the Administrative Agent may exercise, in addition to all other rights and
remedies granted to it in this Agreement and in any other instrument or agreement securing, evidencing or relating to any Secured Obligation, all rights and remedies of a secured party under the UCC or any other applicable law. 

(b) Disposition of Collateral. Without limiting the generality of the foregoing, the Administrative Agent may, without demand of
performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and
notices are hereby waived), during the continuance of any Event of Default (personally or through its agents or attorneys), subject to the terms of the Interim Order and the Final Order, (i) enter upon the premises where any Collateral is
located, without any obligation to pay rent, through self-help, without judicial process, without first obtaining a final judgment or giving any Grantor or any other Person notice or opportunity for a hearing on the Administrative Agent’s claim
or action, (ii) collect, receive, appropriate and realize upon any Collateral and (iii) Sell, grant option or options to purchase and deliver any Collateral (or enter into Contractual Obligations to do any of the foregoing), in one or more
parcels at public or private sale or sales, at any exchange, broker’s board or office of any Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk. The Administrative Agent shall have the right, upon any such public sale or sales and, to the extent permitted by the UCC and other applicable Requirements of Law, upon any such private sale, to
purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption of any Grantor, which right or equity is hereby waived and released. 
  

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 (c) Management of the Collateral. Each Grantor further agrees, that, during the
continuance of any Event of Default, (i) at the Administrative Agent’s request, it shall assemble the Collateral and make it available to the Administrative Agent at places that the Administrative Agent shall reasonably select, whether at
such Grantor’s premises or elsewhere, (ii) without limiting the foregoing, the Administrative Agent also has the right to require that each Grantor store and keep any Collateral pending further action by the Administrative Agent and, while
any such Collateral is so stored or kept, provide such guards and maintenance services as shall be necessary to protect the same and to preserve and maintain such Collateral in good condition, (iii) until the Administrative Agent is able to
Sell any Collateral, the Administrative Agent shall have the right to hold or use such Collateral to the extent that it deems appropriate for the purpose of preserving the Collateral or its value or for any other purpose deemed appropriate by the
Administrative Agent and (iv) the Administrative Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of any Collateral and to enforce any of the Administrative Agent’s remedies (for the benefit of
the Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment. The Administrative Agent shall not have any obligation to any Grantor to maintain or preserve the rights of any Grantor as against third
parties with respect to any Collateral while such Collateral is in the possession of the Administrative Agent. 
 (d)
Application of Proceeds. The Administrative Agent shall apply the cash proceeds of any action taken by it pursuant to this Section 6.1, after deducting all reasonable costs and expenses of every kind incurred in connection
therewith or incidental to the care or safekeeping of any Collateral or in any way relating to the Collateral or the rights of the Administrative Agent and any other Secured Party hereunder, including reasonable attorneys’ fees and
disbursements, to the payment in whole or in part of the Secured Obligations, as set forth in the Credit Agreement, and only after such application and after the payment by the Administrative Agent of any other amount required by any Requirements of
Law, need the Administrative Agent account for the surplus, if any, to any Grantor. 
 (e) Direct Obligation. Neither the
Administrative Agent nor any other Secured Party shall be required to make any demand upon, or pursue or exhaust any right or remedy against, any Grantor, any other Loan Party or any other Person with respect to the payment of the Obligations or to
pursue or exhaust any right or remedy with respect to any Collateral therefor or any direct or indirect guaranty thereof. All of the rights and remedies of the Administrative Agent and any other Secured Party under any Loan Document shall be
cumulative, may be exercised individually or concurrently and not exclusively of any other rights or remedies provided by any Requirements of Law. To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes
the benefit and advantage of, and covenants not to assert against the Administrative Agent or any Lender, any valuation, stay, appraisement, extension, redemption or similar laws and any and all rights or defenses it may have as a surety, now or
hereafter existing, arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or other disposition of any Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least 10
days before such sale or other disposition. 
  

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 (f) Commercially Reasonable. To the extent that applicable Requirements of Law impose
duties on the Administrative Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for the Administrative Agent to do any of the following: 

(i) fail to incur significant costs, expenses or other Liabilities reasonably deemed as such by the Administrative Agent
to prepare any Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished products for disposition; 

(ii) fail to obtain Permits, or other consents, for access to any Collateral to Sell or for the collection or Sale of any
Collateral, or, if not required by other Requirements of Law, fail to obtain Permits or other consents for the collection or disposition of any Collateral; 

(iii) fail to exercise remedies against account debtors or other Persons obligated on any Collateral or to remove Liens on
any Collateral or to remove any adverse claims against any Collateral; 
 (iv) advertise dispositions of any
Collateral through publications or media of general circulation, whether or not such Collateral is of a specialized nature or to contact other Persons, whether or not in the same business as any Grantor, for expressions of interest in acquiring any
such Collateral; 
 (v) exercise collection remedies against account debtors and other Persons obligated on any
Collateral, directly or through the use of collection agencies or other collection specialists, hire one or more professional auctioneers to assist in the disposition of any Collateral, whether or not such Collateral is of a specialized nature or,
to the extent deemed appropriate by the Administrative Agent, obtain the services of other brokers, investment bankers, consultants and other professionals to assist the Administrative Agent in the collection or disposition of any Collateral, or
utilize Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets to dispose of any Collateral; 

(vi) dispose of assets in wholesale rather than retail markets; 

(vii) disclaim disposition warranties, such as title, possession or quiet enjoyment; or 

(viii) purchase insurance or credit enhancements to insure the Administrative Agent against risks of loss, collection or
disposition of any Collateral or to provide to the Administrative Agent a guaranteed return from the collection or disposition of any Collateral. 
  

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 Each Grantor acknowledges that the purpose of this Section 6.1 is to provide a non-exhaustive
list of actions or omissions that are commercially reasonable when exercising remedies against any Collateral and that other actions or omissions by the Secured Parties shall not be deemed commercially unreasonable solely on account of not being
indicated in this Section 6.1. Without limitation upon the foregoing, nothing contained in this Section 6.1 shall be construed to grant any rights to any Grantor or to impose any duties on the Administrative Agent that would
not have been granted or imposed by this Agreement or by applicable Requirements of Law in the absence of this Section 6.1. 

(g) IP Licenses. For the purpose of enabling the Administrative Agent to exercise rights and remedies under this
Section 6.1 (including in order to take possession of, collect, receive, assemble, process, appropriate, remove, realize upon, Sell or grant options to purchase any Collateral) at such time as the Administrative Agent shall be lawfully
entitled to exercise such rights and remedies, each Grantor hereby grants to the Administrative Agent, for the benefit of the Secured Parties, (i) an irrevocable, nonexclusive, worldwide license (exercisable without payment of royalty or other
compensation to such Grantor), including in such license the right to sublicense, use and practice any Intellectual Property now owned or hereafter acquired by such Grantor and access to all media in which any of the licensed items may be recorded
or stored and to all Software and programs used for the compilation or printout thereof and (ii) an irrevocable license (without payment of rent or other compensation to such Grantor) to use, operate and occupy all real property owned,
operated, leased, subleased or otherwise occupied by such Grantor. 
 Section 6.2 Accounts and Payments in
Respect of General Intangibles. (a) In addition to, and not in substitution for, any similar requirement in the Credit Agreement, if required by the Administrative Agent at any time during the continuance of an Event of Default, any payment
of accounts or payment in respect of general intangibles, when collected by any Grantor, shall be promptly (and, in any event, within 2 Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the
Administrative Agent, in a Cash Collateral Account, subject to withdrawal by the Administrative Agent as provided in Section 6.4. Until so turned over, such payment shall be held by such Grantor in trust for the Administrative Agent,
segregated from other funds of such Grantor. Each such deposit of proceeds of accounts and payments in respect of general intangibles shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in
the deposit. 
 (b) At any time during the continuance of an Event of Default: 

(i) each Grantor shall, upon the Administrative Agent’s request, deliver to the Administrative Agent all original and
other documents evidencing, and relating to, the Contractual Obligations and transactions that gave rise to any account or any payment in respect of general intangibles, including all original orders, invoices and shipping receipts and notify
account debtors that the accounts or general intangibles have been collaterally assigned to the Administrative Agent and that payments in respect thereof shall be made directly to the Administrative Agent; 

 

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 (ii) the Administrative Agent may, without notice, at any time during the
continuance of an Event of Default, limit or terminate the authority of a Grantor to collect its accounts or amounts due under general intangibles or any thereof and, in its own name or in the name of others, communicate with account debtors to
verify with them to the Administrative Agent’s satisfaction the existence, amount and terms of any account or amounts due under any general intangible. In addition, the Administrative Agent may at any time enforce such Grantor’s rights
against such account debtors and obligors of general intangibles; and 
 (iii) each Grantor shall take all
actions, deliver all documents and provide all information necessary or reasonably requested by the Administrative Agent to ensure any Internet Domain Name is registered. 

(c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each account and each payment in respect of
general intangibles to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto. No Secured Party shall have any obligation or
liability under any agreement giving rise to an account or a payment in respect of a general intangible by reason of or arising out of any Loan Document or the receipt by any Secured Party of any payment relating thereto, nor shall any Secured Party
be obligated in any manner to perform any obligation of any Grantor under or pursuant to any agreement giving rise to an account or a payment in respect of a general intangible, to make any payment, to make any inquiry as to the nature or the
sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts that may have been
assigned to it or to which it may be entitled at any time or times. 
 Section 6.3 Pledged Collateral.
(a) Voting Rights. During the continuance of an Event of Default, upon notice by the Administrative Agent to the relevant Grantor or Grantors, the Administrative Agent or its nominee may exercise (A) any voting, consent, corporate
and other right pertaining to the Pledged Collateral at any meeting of shareholders, partners or members, as the case may be, of the relevant issuer or issuers of Pledged Collateral or otherwise and (B) any right of conversion, exchange and
subscription and any other right, privilege or option pertaining to the Pledged Collateral as if it were the absolute owner thereof (including the right to exchange at its discretion any Pledged Collateral upon the merger, amalgamation,
consolidation, reorganization, recapitalization or other fundamental change in the corporate or equivalent structure of any issuer of Pledged Stock, the right to deposit and deliver any Pledged Collateral with any committee, depositary, transfer
agent, registrar or other designated agency upon such terms and conditions as the Administrative Agent may determine), all without liability except to account for property actually received by it; provided, however, that the
Administrative Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing. 

 

 20 

 (b) Proxies. In order to permit the Administrative Agent to exercise the voting and
other consensual rights that it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions that it may be entitled to receive hereunder, (i) each Grantor shall promptly execute and deliver (or cause to be
executed and delivered) to the Administrative Agent all such proxies, dividend payment orders and other instruments as the Administrative Agent may from time to time reasonably request and (ii) without limiting the effect of clause
(i) above, such Grantor hereby grants to the Administrative Agent an irrevocable proxy to vote all or any part of the Pledged Collateral and to exercise all other rights, powers, privileges and remedies to which a holder of the Pledged
Collateral would be entitled (including giving or withholding written consents of shareholders, partners or members, as the case may be, calling special meetings of shareholders, partners or members, as the case may be, and voting at such meetings),
which proxy shall be effective, automatically and without the necessity of any action (including any transfer of any Pledged Collateral on the record books of the issuer thereof) by any other person (including the issuer of such Pledged Collateral
or any officer or agent thereof) during the continuance of an Event of Default and which proxy shall only terminate upon the payment in full of the Secured Obligations. 

(c) Authorization of Issuers. Each Grantor hereby expressly irrevocably authorizes and instructs, without any further instructions
from such Grantor, each issuer of any Pledged Collateral pledged hereunder by such Grantor to (i) comply with any instruction received by it from the Administrative Agent in writing that states that an Event of Default is continuing and is
otherwise in accordance with the terms of this Agreement and each Grantor agrees that such issuer shall be fully protected from Liabilities to such Grantor in so complying and (ii) upon receipt of such instruction, unless otherwise expressly
permitted hereby, pay any dividend or make any other payment with respect to the Pledged Collateral directly to the Administrative Agent. 

Section 6.4 Proceeds to be Turned over to and Held by Administrative Agent. Except as otherwise provided by the
Interim Order or the Final Order and unless otherwise expressly provided in the Credit Agreement or this Security Agreement, all proceeds of any Collateral received by any Grantor hereunder in cash or Cash Equivalents shall be held by such Grantor
in trust for the Administrative Agent and the other Secured Parties, segregated from other funds of such Grantor, and shall, promptly upon receipt by any Grantor, be turned over to the Administrative Agent in the exact form received (with any
necessary endorsement). All such proceeds of Collateral and any other proceeds of any Collateral received by the Administrative Agent in cash or Cash Equivalents shall be held by the Administrative Agent in a Cash Collateral Account. All proceeds
being held by the Administrative Agent in a Cash Collateral Account (or by such Grantor in trust for the Administrative Agent) shall continue to be held as collateral security for the Secured Obligations and shall not constitute payment thereof
until applied as provided in the Credit Agreement. 
 Section 6.5 Registration Rights. (a) If, in the
opinion of the Administrative Agent, it is necessary or advisable to Sell any portion of the Pledged Collateral by registering such Pledged Collateral under the provisions of the Securities Act of 1933 (the “Securities Act”), except
as otherwise provided by the Interim Order or the Final Order, each relevant Grantor shall cause the issuer thereof to do or cause to be done all acts as may be, in the opinion of the Administrative Agent, necessary or advisable to register such
Pledged Collateral or that portion thereof to be Sold under the provisions of the Securities Act, all as directed by the Administrative Agent in conformity with the requirements of the Securities Act and the rules and regulations of the Securities
and Exchange Commission applicable thereto and in compliance with the securities or “Blue Sky” laws of any jurisdiction that the Administrative Agent shall designate. 

 

 21 

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

(c) Except as otherwise provided by the Interim Order or the Final Order, each Grantor agrees to use its best efforts to do or cause to
be done all such other acts as may be necessary to make such sale or sales of any portion of the Pledged Collateral pursuant to this Section 6.5 valid and binding and in compliance with all applicable Requirements of Law. Each Grantor
further agrees that a breach of any covenant contained in this Section 6.5 will cause irreparable injury to the Administrative Agent and other Secured Parties, that the Administrative Agent and the other Secured Parties have no adequate
remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 6.5 shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any
defense against an action for specific performance of such covenants except for a defense that no Event of Default has occurred under the Credit Agreement. 

Section 6.6 Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other
disposition of any Collateral are insufficient to pay the Secured Obligations and the fees and disbursements of any attorney employed by the Administrative Agent or any other Secured Party to collect such deficiency. 

 

 22 

 ARTICLE VII 

THE ADMINISTRATIVE AGENT 

Section 7.1 Administrative Agent’s Appointment as Attorney-in-Fact. (a) Except as may be limited by the
Interim Order or the Final Order, each Grantor hereby irrevocably constitutes and appoints the Administrative Agent and any Related Person thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power
and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of the Loan Documents, to take any appropriate action and to execute any document or instrument that
may be necessary or desirable to accomplish the purposes of the Loan Documents, and, without limiting the generality of the foregoing, each Grantor hereby gives the Administrative Agent and its Related Persons the power and right, on behalf of such
Grantor, without notice to or assent by such Grantor, to do any of the following when an Event of Default shall be continuing: 

(i) in the name of such Grantor, in its own name or otherwise, take possession of and indorse and collect any check,
draft, note, acceptance or other instrument for the payment of moneys due under any account or general intangible or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or
otherwise deemed appropriate by the Administrative Agent for the purpose of collecting any such moneys due under any account or general intangible or with respect to any other Collateral whenever payable; 

(ii) in the case of any Intellectual Property owned by or licensed to the Grantors, execute, deliver and have recorded any
document that the Administrative Agent may request to evidence, effect, publicize or record the Administrative Agent’s security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or
represented thereby; 
 (iii) pay or discharge taxes and Liens levied or placed on or threatened against any
Collateral, effect any repair or pay any insurance called for by the terms of the Credit Agreement (including all or any part of the premiums therefor and the costs thereof); 

(iv) execute, in connection with any sale provided for in Section 6.1 or Section 6.5, any document
to effect or otherwise necessary or appropriate in relation to evidence the Sale of any Collateral; or 
 (v)(A)
direct any party liable for any payment under any Collateral to make payment of any moneys due or to become due thereunder directly to the Administrative Agent or as the Administrative Agent shall direct, (B) ask or demand for, and collect and
receive payment of and receipt for, any moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral, (C) sign and indorse any invoice, freight or express bill, bill of lading, storage or
warehouse receipt, draft against debtors, assignment, verification, notice and other document in connection with any Collateral, (D) commence and prosecute any suit, action or proceeding at law or in equity in any court of competent
jurisdiction to collect any Collateral and to enforce any other right in respect of any Collateral, (E) defend any actions, suits, proceedings, audits, claims, demands, orders or disputes brought against such Grantor with respect to any
Collateral, (F) settle, compromise or adjust any such actions, suits, proceedings, audits, claims, demands, orders or disputes and, in connection therewith, give such discharges or releases as the Administrative Agent may deem appropriate,
(G) assign any Intellectual Property owned by the Grantors or any IP Licenses of the Grantors throughout the world on such terms and conditions and in such manner as the Administrative Agent shall in its sole discretion determine, including the
execution and filing of any document necessary to effectuate or record such assignment and (H) generally, Sell, grant a Lien on, make any Contractual Obligation with respect to and otherwise deal with, any Collateral as fully and completely as
though the Administrative Agent were the absolute owner thereof for all purposes and do, at the Administrative Agent’s option, at any time or from time to time, all acts and things that the Administrative Agent deems necessary to protect,
preserve or realize upon any Collateral and the Secured Parties’ security interests therein and to effect the intent of the Loan Documents, all as fully and effectively as such Grantor might do. 

 

 23 

 (b) If any Grantor fails to perform or comply with any Contractual Obligation contained
herein, the Administrative Agent, at its option, but without any obligation so to do, may (except as otherwise provided by the Interim Order or the Final Order) perform or comply, or otherwise cause performance or compliance, with such Contractual
Obligation. 
 (c) Except as otherwise provided by the Interim Order or the Final Order, the expenses of the Administrative
Agent incurred in connection with actions undertaken as provided in this Section 7.1, together with interest thereon at a rate set forth in Section 2.9 (Interest) of the Credit Agreement, from the date of payment by
the Administrative Agent to the date reimbursed by the relevant Grantor, shall be payable by such Grantor to the Administrative Agent on demand. 

(d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue of this Section 7.1.
All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released. 

Section 7.2 Authorization to File Financing Statements. Each Grantor authorizes the Administrative Agent and its
Related Persons, at any time and from time to time, to file or record financing statements, amendments thereto, and other filing or recording documents or instruments with respect to any Collateral in such form and in such offices as the
Administrative Agent reasonably determines appropriate to perfect the security interests of the Administrative Agent under this Agreement, and such financing statements and amendments may describe the Collateral covered thereby as “all assets
of the debtor”. A photographic or other reproduction of this Agreement shall be sufficient as a financing statement or other filing or recording document or instrument for filing or recording in any jurisdiction. Such Grantor also hereby
ratifies its authorization for the Administrative Agent to have filed any initial financing statement or amendment thereto under the UCC (or other similar laws) in effect in any jurisdiction if filed prior to the date hereof. 

Section 7.3 Authority of Administrative Agent. Each Grantor acknowledges that the rights and responsibilities of the
Administrative Agent under this Agreement with respect to any action taken by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any option, voting right, request, judgment or other right or remedy provided for
herein or resulting or arising out of this Agreement shall, as between the Administrative Agent and the other Secured Parties, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among
them, but, as between the Administrative Agent and the Grantors, the Administrative Agent shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor
shall be under any obligation or entitlement to make any inquiry respecting such authority. 
  

 24 

 Section 7.4 Duty; Obligations and Liabilities. (a) Duty of
Administrative Agent. The Administrative Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession shall be to deal with it in the same manner as the Administrative Agent deals
with similar property for its own account. The powers conferred on the Administrative Agent hereunder are solely to protect the Administrative Agent’s interest in the Collateral and shall not impose any duty upon the Administrative Agent to
exercise any such powers. The Administrative Agent shall be accountable only for amounts that it receives as a result of the exercise of such powers, and neither it nor any of its Related Persons shall be responsible to any Grantor for any act or
failure to act hereunder, except for their own gross negligence or willful misconduct as finally determined by a court of competent jurisdiction. In addition, the Administrative Agent shall not be liable or responsible for any loss or damage to any
Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehousemen, carrier, forwarding agency, consignee or other bailee if such Person has been selected by the Administrative Agent in good faith.

 (b) Obligations and Liabilities with respect to Collateral. No Secured Party and no Related Person thereof shall be
liable for failure to demand, collect or realize upon any Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any
other action whatsoever with regard to any Collateral, except for their own gross negligence or willful misconduct as finally determined by a court of competent jurisdiction. The powers conferred on the Administrative Agent hereunder shall not
impose any duty upon any other Secured Party to exercise any such powers. The other Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their
respective officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct as finally determined by a court of competent jurisdiction.

 ARTICLE VIII 

MISCELLANEOUS 

Section 8.1 Reinstatement. Each Grantor agrees that, if any payment made by any Loan Party or other Person and applied
to the Secured 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 any Collateral are required to be returned
by any Secured Party to such Loan Party, its estate, trustee, receiver or any other party, including any Grantor, under any bankruptcy law, state or federal 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. If, prior to any of the foregoing, (a) any Lien or other Collateral securing such Grantor’s
liability hereunder shall have been released or terminated by virtue of the foregoing or (b) any provision of the Guaranty hereunder shall have been terminated, cancelled or surrendered, such Lien, other Collateral or provision shall be
reinstated in full force and effect and such prior release, termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligations of any such Grantor in respect of any Lien or other Collateral
securing such obligation or the amount of such payment. 
  

 25 

 Section 8.2 Release of Collateral. (a) At the time provided in
clause (b)(iii) of Section 10.10 (Release of Collateral or Guarantors) of the Credit Agreement, the Collateral shall be released from the Lien created hereby and this Agreement and all obligations (other than those
expressly stated to survive such termination) of the Administrative Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the
Grantors. Each Grantor is hereby authorized to file UCC amendments at such time evidencing the termination of the Liens so released. At the request of any Grantor following any such termination, the Administrative Agent shall deliver to such Grantor
any Collateral of such Grantor held by the Administrative Agent hereunder and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination. 

(b) If the Administrative Agent shall be directed or permitted pursuant to clause (i) or (ii) of
Section 10.10(b) of the Credit Agreement to release any Lien or any Collateral, such Collateral shall be released from the Lien created hereby to the extent provided under, and subject to the terms and conditions set forth in, such
clauses (i) and (ii). In connection therewith, the Administrative Agent, at the request of any Grantor, shall execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such release.

 (c) At the time provided in Section 10.10(a) of the Credit Agreement and at the request of the Borrower, a
Grantor shall be released from its obligations hereunder in the event that all the Securities of such Grantor shall be Sold to any Person that is not an Affiliate of Holdings, the Borrower and the Subsidiaries of the Borrower in a transaction
permitted by the Loan Documents. 
 Section 8.3 Independent Obligations. The obligations of each Grantor
hereunder are independent of and separate from the Secured Obligations and the Guaranteed Obligations. Upon any Event of Default, except as otherwise provided by the Interim Order or the Final Order, the Administrative Agent may, at its sole
election, proceed directly and at once, without notice, against any Grantor and any Collateral to collect and recover the full amount of any Secured Obligation or Guaranteed Obligation then due, without first proceeding against any other Grantor,
any other Loan Party or any other Collateral and without first joining any other Grantor or any other Loan Party in any proceeding. 

Section 8.4 No Waiver by Course of Conduct. No Secured Party shall by any act (except by a written instrument pursuant
to Section 8.6), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part
of any Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. A waiver by any Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that such Secured Party would otherwise have on any future occasion.

  

 26 

 Section 8.5 Amendments in Writing. None of the terms or provisions of
this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 11.1 of the Credit Agreement; provided, however, that annexes to this Agreement may be supplemented (but no
existing provisions may be modified and no Collateral may be released) through Pledge Amendments and Joinder Agreements, in substantially the form of Annex 1 and Annex 2, respectively, in each case duly executed by the Administrative
Agent and each Grantor directly affected thereby. 
 Section 8.6 Additional Grantors; Additional Pledged
Collateral. (a) Joinder Agreements. If, at the option of the Borrower or as required pursuant to Section 7.10 of the Credit Agreement, the Borrower shall cause any Subsidiary that is not a Grantor to become a Grantor
hereunder, such Subsidiary shall execute and deliver to the Administrative Agent a Joinder Agreement substantially in the form of Annex 2 and shall thereafter for all purposes be a party hereto and have the same rights, benefits and
obligations as a Grantor party hereto on the Closing Date. 
 (b) Pledge Amendments. To the extent any Pledged Collateral
has not been delivered as of the Closing Date, such Grantor shall deliver a pledge amendment duly executed by the Grantor in substantially the form of Annex 1 (each, a “Pledge Amendment”). Such Grantor authorizes the
Administrative Agent to attach each Pledge Amendment to this Agreement. 
 Section 8.7 Notices. All notices,
requests and demands to or upon the Administrative Agent or any Grantor hereunder shall be effected in the manner provided for in Section 11.12 of the Credit Agreement; provided, however, that any such notice, request or
demand to or upon any Grantor shall be addressed to the Borrower’s notice address set forth in such Section 11.12. 

Section 8.8 Successors and Assigns. This Agreement shall be binding upon the successors and assigns of each Grantor
and shall inure to the benefit of each Secured Party and their successors and assigns; provided, however, that no Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written
consent of the Administrative Agent. 
 Section 8.9 Counterparts. This Agreement may be executed in any
number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Signature pages may be detached
from multiple separate counterparts and attached to a single counterpart. Delivery of an executed signature page of this Agreement by facsimile transmission or by Electronic Transmission shall be as effective as delivery of a manually executed
counterpart hereof. 
  

 27 

 Section 8.10 Severability. Any provision of this Agreement being held
illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such provision not held illegal, invalid or unenforceable, any other provision of this Agreement or any part of such provision in any other jurisdiction. 

Section 8.11 Governing Law. This Agreement and the rights and obligations of the parties hereto shall be governed by,
and construed and interpreted in accordance with, the law of the State of New York and the Bankruptcy Code. 

Section 8.12 WAIVER OF JURY TRIAL.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES TRIAL BY JURY IN ANY
SUIT, ACTION OR PROCEEDING WITH RESPECT TO, OR DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH, ANY LOAN DOCUMENT OR
THE TRANSACTIONS CONTEMPLATED THEREIN OR RELATED THERETO (WHETHER FOUNDED IN
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT
NO OTHER PARTY AND NO RELATED PERSON OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 8.13. 
 [SIGNATURE PAGES FOLLOW] 

 

 28 

 IN WITNESS WHEREOF, each of the undersigned has caused this Debtor-in-Possession Guaranty
and Security Agreement to be duly executed and delivered as of the date first above written. 
  

			
	 MEDICAL STAFFING NETWORK, INC., as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	President
	
	 MEDICAL STAFFING HOLDINGS, LLC, AS HOLDINGS

		
	By:	 	 MEDICAL STAFFING NETWORK HOLDINGS, INC., its Sole Member

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	President
	
	 MEDICAL STAFFING NETWORK HOLDINGS, INC., as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	President

			
	 MSN-ILLINOIS HOLDINGS, INC., as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	Treasurer
	
	 MEDICAL STAFFING NETWORK OF ILLINOIS, LLC, as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	Manager
	
	 MEDICAL STAFFING NETWORKS ASSETS, LLC, as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	Manager
	
	 INTELISTAF HOLDINGS, INC., as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	Treasurer

  

 30 

			
	 INTELISTAF GROUP, INC., as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	President
	
	 INTELISTAF HEALTHCARE, INC., as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	President
	
	 INTELISTAF PARTNERS NO. 1, LLC, as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	President
	
	 INTELISTAF PARTNERS NO. 2, LLC, as Grantor

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	President

			
	 INTELISTAF HEALTHCARE MANAGEMENT, L.P., as Grantor

		
	By:	 	 INTELISTAF PARTNERS NO. 1, LLC, its General Partner

		
	By:	 	 /s/ Kevin Little

	Name:	 	Kevin Little
	Title:	 	President

			
	 ACCEPTED AND AGREED

as of the date first above written:

	
	 GENERAL ELECTRIC CAPITAL CORPORATION, as Administrative Agent 

		
	By:	 	 /s/ Jennifer Aghazadeh

	Name:	 	Jennifer Aghazadeh
	Title:	 	Duly Authorized SignatoryWritten Agreement

 Exhibit 10.1 

UNITED STATES OF AMERICA 

BEFORE THE 
 BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 
 WASHINGTON, D.C. 

STATE CORPORATION COMMISSION 

BUREAU OF FINANCIAL INSTITUTIONS 

RICHMOND, VIRGINIA 
  

			
	Written Agreement by and among	  	
		  	
	 COMMONWEALTH BANKSHARES, INC.

Norfolk, Virginia
	  	 Docket Nos.10-109 -WA/RB-HC

10-109 -WA/RB-SM

		  	
	BANK OF THE COMMONWEALTH	  	
	Norfolk, Virginia	  	
		  	
	FEDERAL RESERVE BANK OF RICHMOND	  	
	Richmond, Virginia	  	
		  	
	and	  	
		  	
	STATE CORPORATION COMMISSION	  	
	BUREAU OF FINANCIAL INSTITUTIONS	  	
	Richmond, Virginia	  	

 WHEREAS, in recognition of their common goal to maintain the financial soundness of Commonwealth
Bankshares, Inc., Norfolk, Virginia (“Commonwealth”), a registered bank holding company, and its subsidiary bank, Bank of the Commonwealth, Norfolk, Virginia (the “Bank”), a state-chartered bank that is a member of the Federal
Reserve System, Commonwealth, the Bank, the Federal Reserve Bank of Richmond (the “Reserve Bank”), and the State Corporation Commission Bureau of Financial Institutions (the “Bureau”) have mutually agreed to enter into this
Written Agreement (the “Agreement”); and 
  

 WHEREAS, on 6/22, 2010, Commonwealth’s and the Bank’s boards of directors, at duly
constituted meetings, adopted resolutions authorizing and directing Richard J. Tavss to consent to this Agreement on behalf of Commonwealth and the Bank, and consenting to compliance with each and every applicable provision of this Agreement by
Commonwealth, the Bank, and their institution-affiliated parties, as defined in sections 3(u) and 8(b)(3) of the Federal Deposit Insurance Act, as amended (the “FDI Act”) (12 U.S.C. §§ 1813(u) and 1818(b)(3)). 

NOW, THEREFORE, Commonwealth, the Bank, the Reserve Bank, and the Bureau agree as follows: 

Source of Strength 
 1.
The board of directors of Commonwealth shall take appropriate steps to fully utilize Commonwealth’s financial and managerial resources, pursuant to section 225.4(a) of Regulation Y of the Board of Governors of the Federal Reserve System (the
“Board of Governors”) (12 C.F.R. § 225.4(a)) to serve as a source of strength to the Bank, including, but not limited to, taking steps to ensure that the Bank complies with this Agreement and any other supervisory action taken by the
Bank’s federal or state regulator. 
 Board Oversight 

2. Within 60 days of this Agreement, the board of directors of the Bank shall submit to the Reserve Bank and the Bureau a written plan to
strengthen the board’s oversight of the management and operations of the Bank. The plan shall, at a minimum, address, consider, and include: 

(a) The actions that the board of directors will take to improve the Bank’s condition and maintain effective control over, and
supervision of, the Bank’s senior management 
  

 2 

 
and major operations and activities, including but not limited to, lending, credit risk management, credit administration, capital, earnings, funds management, audit and examination findings;

 (b) the establishment of measures to ensure Bank staffs adherence to approved policies, procedures, and applicable laws and
regulations; 
 (c) an assessment of the structure of senior management, the board of directors, including committees, and
specific staffing needs; 
 (d) a description of the information and reports that will be regularly reviewed by the board of
directors in its oversight of the operations and management of the Bank; and 
 (e) the maintenance of adequate and complete
minutes of board of directors meetings that detail board discussions. 
 Credit Risk Management 

3. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the Bureau an acceptable written plan to strengthen
credit risk management practices. The plan shall, at a minimum, address, consider, and include: 
 (a) The responsibility of the
board of directors to establish appropriate risk tolerance guidelines and risk limits; 
 (c) periodic review and revision of
risk exposure limits to address changes in market conditions; 
 (c) timely and accurate identification and quantification of
credit risk within the loan portfolio; 
 (d) enhanced stress testing of loans and portfolio segments; 

 

 3 

 (e) enhancements to the Bank’s internal loan grading system to ensure timely and
accurate risk ratings; and 
 (f) strategies to minimize credit losses and reduce the level of problem assets. 

Lending and Credit Administration 

4. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the Bureau acceptable enhanced written lending policies
and procedures that shall, at a minimum, address, consider, and include: 
 (a) Underwriting standards regarding the appropriate
use of interest reserves and the renewal, extension, and refinancing of loans with interest reserves; 
 (b) procedures to
ensure that current financial information on all borrowers and guarantors is obtained, and contacts with borrowers are documented in credit files; 

(c) procedures to ensure that real estate appraisals are consistent with the Interagency Statement on Independent Appraisal and
Evaluation Guidelines, dated October 27, 2003 (SR 03-18), and the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994 (SR 94-55), as well as, with the requirements of Subpart G of Regulation Y of the Board of Governors
(12 C.F.R. Part 225, Subpart G) made applicable to state member banks by section 208.50 of Regulation H of the Board of Governors (12 C.F.R. § 208.50), and 

(d) enhanced appraisal review procedures to ensure that appraisal deficiencies noted by the reviewer are corrected. 

5. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the Bureau acceptable written procedures for credit
administration that shall, at a minimum, address, consider, and include: 
 (a) Separation of duties among the lending, credit
administration, and loan operations functions; 
  

 4 

 (b) provision for the retention of sufficient experienced staff to resolve problem credits;

 (c) controls to ensure that loan payments are applied according to loan terms; and 

(d) standards for placing loans on timely non-accrual status. 

Concentrations of Credit 

6. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the Bureau an acceptable written plan to strengthen the
Bank’s management of commercial real estate (“CRE”) concentrations, including steps to reduce the risk of concentrations. The plan shall, at a minimum, include: 

(a) Procedures to identify, limit, and manage concentrations of credit that are consistent with the Interagency Guidance on
Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices, dated December 12, 2006 (SR 07-1); 

(b) a schedule for reducing and the means by which the Bank will reduce the level of CRE concentrations, and timeframes for achieving the
reduced levels; and 
 (c) enhanced monitoring and reporting of CRE concentrations to management and the board of directors.

 Asset Improvement 

7. The Bank shall not, directly or indirectly, extend, renew, or restructure any credit to or for the benefit of any borrower, including
any related interest of the borrower, whose loans or other extensions of credit are criticized in the report of examination of the Bank conducted by 

 

 5 

 
the Reserve Bank and the Bureau that commenced on October 19, 2009 (the “Report of Examination”) or in any subsequent report of examination, without the prior approval of a
majority of the full board of directors or a designated committee thereof. The board of directors or its committee shall document in writing the reasons for the extension of credit, renewal, or restructuring, specifically certifying that:
(i) the Bank’s risk management policies and practices for loan workout activity are acceptable; (ii) the extension of credit is necessary to improve and protect the Bank’s interest in the ultimate collection of the credit already
granted and maximize its potential for collection; (iii) the extension of credit reflects prudent underwriting based on reasonable repayment terms and is adequately secured; and all necessary loan documentation has been properly and accurately
prepared and filed; (iv) the Bank has performed a comprehensive credit analysis indicating that the borrower has the willingness and ability to repay the debt as supported by an adequate workout plan, as necessary; and (v) the board of
directors or its designated committee reasonably believes that the extension of credit will not impair the Bank’s interest in obtaining repayment of the already outstanding credit and that the extension of credit or renewal will be repaid
according to its terms. The written certification shall be made a part of the minutes of the meetings of the board of directors or its committee, as appropriate, and a copy of the signed certification, together with the credit analysis and related
information that was used in the determination, shall be retained by the Bank in the borrower’s credit file for subsequent supervisory review. For purposes of this Agreement, the term “related interest” is defined as set forth in
section 215.2(n) of Regulation O of the Board of Governors (12 C.F.R. § 215.2(n)). 
 8. (a) Within 60 days of this
Agreement, the Bank shall submit to the Reserve Bank and the Bureau an acceptable written plan designed to improve the Bank’s position through repayment, amortization, liquidation, additional collateral, or other means on each loan or other

  

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asset in excess of $1,000,000, including other real estate owned (“OREO”), that (i) is past due as to principal or interest more than 90 days as of the date of this Agreement;
(ii) is on the Bank’s problem loan list; or (iii) was adversely classified in the Report of Examination. In developing the plan for each loan, the Bank shall, at a minimum, review, analyze, and document the financial position of the
borrower, including source of repayment, repayment ability, and alternative repayment sources, as well as the value and accessibility of any pledged or assigned collateral, and any possible actions to improve the Bank’s collateral position.

 (b) Within 30 days of the date that any additional loan or other asset in excess of $1,000,000, including OREO, that
(i) becomes past due as to principal or interest for more than 90 days; (ii) is on the Bank’s problem loan list; or (iii) is adversely classified in any subsequent report of examination of the Bank, the Bank shall submit to the
Reserve Bank and the Bureau an acceptable written plan to improve the Bank’s position on such loan or asset. 
 (c) Within
30 days after the end of each calendar quarter thereafter, the Bank shall submit a written progress report to the Reserve Bank and the Bureau to update each asset improvement plan, which shall include, at a minimum, the carrying value of the loan or
other asset and changes in the nature and value of supporting collateral, along with a copy of the Bank’s current problem loan list, a list of all loan renewals and extensions without full collection of interest in the last quarter, and past
due/non-accrual report. The board of directors shall review the progress reports before submission to the Reserve Bank and the Bureau and shall document the review in the minutes of the board of directors’ meetings. 

Allowance for Loan and Lease Losses 

9. (a) Within 10 days of this Agreement, the Bank shall eliminate from its books, by charge-off or collection, all assets or portions
of assets classified “loss” in the Report 
  

 7 

 
of Examination that have not been previously collected in full or charged off. Thereafter the Bank shall, within 30 days from the receipt of any federal or state report of examination, charge off
all assets classified “loss” unless otherwise approved in writing by the Reserve Bank and the Bureau. 
 (b) Within 60
days of this Agreement, the Bank shall review and revise its allowance for loan and lease losses (“ALLL”) methodology consistent with relevant supervisory guidance, including the Interagency Policy Statements on the Allowance for Loan and
Lease Losses, dated July 2, 2001 (SR 01-17 (Sup)) and December 13, 2006 (SR 06-17), and the findings and recommendations regarding the ALLL set forth in the Report of Examination, and submit a description of the revised methodology to the
Reserve Bank and the Bureau. The revised ALLL methodology shall be designed to maintain an adequate ALLL and shall address, consider, and include, at a minimum, the reliability of the Bank’s loan grading system, the volume of criticized loans,
concentrations of credit, the current level of past due and nonperforming loans, past loan loss experience, evaluation of probable losses in the Bank’s loan portfolio, including adversely classified loans, and the impact of market conditions on
loan and collateral valuations and collectability. 
 (c) Within 90 days of this Agreement, the Bank shall submit to the Reserve
Bank and the Bureau an acceptable written program for the maintenance of an adequate ALLL. The program shall include policies and procedures to ensure adherence to the revised ALLL methodology and provide for periodic reviews and updates to the ALLL
methodology, as appropriate. The program shall also provide for a review of the ALLL by the board of directors on at least a quarterly calendar basis. Any deficiency found in the ALLL shall be remedied in the quarter it is discovered, prior to the
filing of the Consolidated Reports of Condition and Income, 
  

 8 

 
by additional provisions. The board of directors shall maintain written documentation of its review, including the factors considered and conclusions reached by the Bank in determining the
adequacy of the ALLL. During the term of this Agreement, the Bank shall submit to the Reserve Bank and the Bureau, within 30 days after the end of each calendar quarter, a written report regarding the board of directors’ quarterly review of the
ALLL and a description of any changes to the methodology used in determining the amount of ALLL for that quarter. 
 Capital Plan

 10. Within 60 days of this Agreement, Commonwealth and the Bank shall submit to the Reserve Bank and the Bureau an
acceptable joint written plan to maintain sufficient capital at Commonwealth on a consolidated basis and the Bank as a separate legal entity on a stand-alone basis. The plan shall, at a minimum, address, consider, and include: 

(a) Commonwealth’s current and future capital requirements, including compliance with the Capital Adequacy Guidelines for Bank
Holding Companies: Risk-Based Measure and Tier 1 Leverage Measure, Appendices A and D of Regulation Y of the Board of Governors (12 C.F.R. Part 225, App. A and D); 

(b) the Bank’s current and future capital requirements, including compliance with the Capital Adequacy Guidelines for State Member
Banks: Risk-Based Measure and Tier 1 Leverage Measure, Appendices A and B of Regulation H of the Board of Governors (12 C.F.R. Part 208, App. A and B); 

(c) the adequacy of the Bank’s capital, taking into account the volume of classified assets, concentrations of credit, the adequacy
of the ALLL, current and projected asset growth, projected retained earnings, and anticipated and contingency funding needs; 
  

 9 

 (d) the source and timing of additional funds to fulfill Commonwealth’s and the
Bank’s future capital requirements; and 
 (e) the requirements of section 225.4(a) of Regulation Y of the Board of
Governors that Commonwealth serve as a source of strength to the Bank. 
 11. Commonwealth and the Bank shall notify the Reserve
Bank and the Bureau, in writing, no more than 30 days after the end of any calendar quarter in which any of Commonwealth’s consolidated capital ratios or the Bank’s capital ratios (total risk-based, Tier 1 risk-based, or leverage) fall
below the approved capital plan’s minimum ratios. Together with the notification, the Commonwealth and the Bank shall submit an acceptable written plan that details the steps Commonwealth or the Bank, as appropriate, will take to increase
Commonwealth’s or the Bank’s capital ratios to or above the approved capital plan’s minimums. 
 Liquidity and Funds
Management 
 12. Within 60 days of this Agreement, the Bank shall submit to the Reserve Bank and the Bureau an acceptable
enhanced written plan designed to improve management of the Bank’s liquidity position and funds management practices. 
 Brokered
Deposits 
 13. (a) At all times during the term of this Agreement that the Bank is well capitalized, the Bank shall not
accept any new brokered deposits. For purposes of this subparagraph, the term “brokered deposits” is defined as set forth in section 337.6(a) of the regulations of the Federal Deposit Insurance Corporation (“FDIC”) (12 C.F.R.
§ 337.6(a)) and includes deposits funded by third party agents or nominees for depositors; and the term “new brokered deposits” is defined not to include contractual renewals or rollovers of brokered deposits. 

 

 10 

 (b) Within 30 days of this Agreement, the Bank shall submit to the Reserve Bank and the
Bureau an acceptable written plan for reducing its reliance on brokered deposits. The plan shall detail the current composition of the Bank’s brokered deposits by maturity and explain the means by which such deposits will be paid at maturity.

 14. The Bank shall comply with the provisions of section 29 of the FDI Act (12 U.S.C. § 1831f) and the FDIC’s
accompanying regulations at 12 C.F.R. § 337 that are applicable to the Bank. The Bank shall notify the Reserve Bank and the Bureau, in writing, if the Bank requests any waiver of the restrictions imposed by section 29 from the FDIC and shall
notify the Reserve Bank of the FDIC’s disposition of any request for such a waiver. 
 Dividends and Distributions 

15. (a) The Bank shall not declare or pay any dividends without the prior written approval of the Reserve Bank, the Director of the
Division of Banking Supervision and Regulation of the Board of Governors (the “Director”), and the Bureau. 
 (b)
Commonwealth shall not declare or pay any dividends without the prior written approval of the Reserve Bank, the Director, and the Bureau. 

(c) Commonwealth shall not take any other form of payment representing a reduction in capital from the Bank without the prior written
approval of the Reserve Bank and the Bureau. 
 (d) Commonwealth and its nonbank subsidiary shall not make any distributions of
interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the Reserve Bank, the Director, and the Bureau. 

(e) All requests for prior approval shall be received at least 30 days prior to the proposed dividend declaration date, proposed
distribution on subordinated debentures, and 
  

 11 

 
required notice of deferral on trust preferred securities. All requests shall contain, at a minimum, current and projected information, as appropriate, on the parent’s capital, earnings, and
cash flow; the Bank’s capital, asset quality, earnings, and ALLL needs; and identification of the sources of funds for the proposed payment or distribution. For requests to declare or pay dividends, Commonwealth and the Bank, as appropriate,
must also demonstrate that the requested declaration or payment of dividends is consistent with the Board of Governors’ Policy Statement on the Payment of Cash Dividends by State Member Banks and Bank Holding Companies, dated November 14,
1985 (Federal Reserve Regulatory Service, 4-877 at page 4-323) and Section 6.1-56 of the Code of Virginia. 
 Debt and Stock Redemption

 16. (a) Commonwealth and its nonbank subsidiary, shall not, directly or indirectly, incur, increase, or guarantee any debt
without the prior written approval of the Reserve Bank and the Bureau. All requests for prior written approval shall contain, but not be limited to, a statement regarding the purpose of the debt, the terms of the debt, and the planned source(s) for
debt repayment, and an analysis of the cash flow resources available to meet such debt repayment. 
 (b) Commonwealth shall not,
directly or indirectly, purchase or redeem any shares of its stock without the prior written approval of the Reserve Bank and the Bureau. 

Compliance with Laws and Regulations 

17. (a) The Bank shall immediately take all necessary steps to correct all violations of law and regulation cited in the Report of
Examination. In addition, the board of directors of the Bank shall take the necessary steps to ensure the Bank’s future compliance with all applicable laws and regulations. 

 

 12 

 (b) Within 60 days of this Agreement, the Bank shall submit acceptable policies and
procedures to ensure compliance with section 106 of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. § 1972) including, but not limited to, policies and procedures that prevent the Bank from requiring that loan customers of the Bank
utilize real estate title insurance services provided by affiliates of the Bank. 
 (c) In appointing any new director or senior
executive officer, or changing the responsibilities of any senior executive officer so that the officer would assume a different senior executive officer position, Commonwealth and the Bank shall comply with the notice provisions of section 32 of
the FDI Act (12 U.S.C. § 1831i) and Subpart H of Regulation Y of the Board of Governors (12 C.F.R. §§ 225.71 et seq.) and also provide notice to the Bureau. Commonwealth and the Bank shall not appoint any individual to
Commonwealth’s or the Bank’s board of directors or employ or change the responsibilities of any individual as a senior executive officer if the Reserve Bank or the Bureau notifies Commonwealth or the Bank of disapproval within the time
limits prescribed by Subpart H of Regulation Y. 
 (d) Commonwealth and the Bank shall comply with the restrictions on
indemnification and severance payments of section 18(k) of the FDI Act (12 U.S.C. § 1828(k)) and Part 359 of the Federal Deposit Insurance Corporation’s regulations (12 C.F.R. Part 359). 

Compliance with Agreement 

18. (a) Within 10 days of this Agreement, Commonwealth and the Bank’s boards of directors shall appoint a joint compliance
committee (the “Compliance Committee”) to monitor and coordinate Commonwealth’s and the Bank’s compliance with the provisions of this Agreement. The Compliance Committee shall include a majority of outside directors who are

  

 13 

 
not executive officers or principal shareholders of Commonwealth and the Bank, as defined in sections 215.2(e)(1) and 215.2(m)(1) of Regulation O of the Board of Governors (12 C.F.R. §§
215.2(e)(1) and 215.2(m)(1)). At a minimum, the Compliance Committee shall meet at least monthly, keep detailed minutes of each meeting, and report its findings to the boards of directors of Commonwealth and the Bank. 

Progress Reports 
 19.
Within 30 days after the end of each calendar quarter following the date of this Agreement, the Bank shall submit to the Reserve Bank and the Bureau written progress reports detailing the form and manner of all actions taken to secure compliance
with the provisions of this Agreement and the results thereof. 
 Approval and Implementation of Plans, Policies, Procedures, and Program

 20. (a) The Bank and Commonwealth, as applicable, shall submit written plans, policies, procedures, and a program that are
acceptable to the Reserve Bank and the Bureau within the applicable time periods set forth in paragraphs 3, 4, 5, 6, 8, 9(c), 10, 11, 12, 13(b), and 17(b) of this Agreement. 

(b) Within 10 days of approval by the Reserve Bank and the Bureau, the Bank and Commonwealth, as applicable, shall adopt the approved
plans, policies, procedures, and program. Upon adoption, the Bank and Commonwealth, as applicable, shall promptly implement the approved plans, policies, procedures, and program, and thereafter fully comply with them. 

(c) During the term of this Agreement, the approved plans, policies, procedures, and program shall not be amended or rescinded without
the prior written approval of the Reserve Bank and the Bureau. 
  

 14 

 Communications 

21. All communications regarding this Agreement shall be sent to: 

 

	 	(a)	Mr. A. Linwood Gill, III 

	 	  	Vice President 

	 	  	Department of Banking Supervision and Regulation 

	 	  	Federal Reserve Bank of Richmond 

	 	  	Post Office Box 27622 

	 	  	Richmond, Virginia 23261-7622 

  

	 	(b)	Mr. John M. Crockett 

	 	  	Deputy Commissioner 

	 	  	State Corporation Commission 

	 	  	Bureau of Financial Regulation 

	 	  	Post Office Box 640 

	 	  	Richmond, Virginia 23218-0640 

  

	 	(c)	Ms. Cynthia A. Sabol, 

	 	  	Executive Vice President & Chief Financial Officer 

	 	  	Commonwealth Bankshares, Inc. 

	 	  	Bank of the Commonwealth 

	 	  	Post Office Box 1177 

	 	  	Norfolk, Virginia 23501-1177 

 Miscellaneous

 22. Notwithstanding any provision of this Agreement, the Reserve Bank and the Bureau may, in their sole discretion, grant
written extensions of time to Commonwealth and the Bank to comply with any provision of this Agreement. 
 23. The provisions of
this Agreement shall be binding upon Commonwealth, the Bank, and their institution-affiliated parties, in their capacities as such, and their successors and assigns. 

24. Each provision of this Agreement shall remain effective and enforceable until stayed, modified, terminated, or suspended in writing
by the Reserve Bank and the Bureau. 
 25. The provisions of this Agreement shall not bar, estop, or otherwise prevent the Board
of Governors, the Reserve Bank, the Bureau, or any other federal or state agency from taking any other action affecting Commonwealth, the Bank, or any of their current or former institution-affiliated parties and their successors and assigns.

  

 15 

 26. Pursuant to Section 50 of the FDI Act (12 U.S.C. § 1831aa), this Agreement is
enforceable by the Board of Governors under Section 8 of the FDI Act (12 U.S.C. § 1818). 
 IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the
2nd day of July, 2010. 

 

									
	COMMONWEALTH BANKSHARES, INC.	 		 	FEDERAL RESERVE BANK OF RICHMOND
				
	BANK OF THE COMMONWEALTH	 		 	By:	 	 /s/ A. Linwood Gill, III

		 		 		 	A. Linwood Gill, III
		 		 		 		 	Vice President
					
	By:	 	 /s/ Richard J. Tavss
	 		 		 	
		 	 Richard J. Tavss

Chairman
	 		 		 	
				
		 		 		 	 STATE CORPORATION COMMISSION BUREAU OF FINANCIAL INSTITUTIONS

					
		 		 		 	By:	 	 /s/ John M. Crockett

		 		 		 		 	John M. Crockett
		 		 		 		 	Deputy Commissioner

  

 16

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