Document:

exhibit102vivintsecurity

                                                                     Exhibit 10.2                                                                POSTING VERSION                               SECURITY AGREEMENT                                     dated as of                                  September 6, 2018                                       among                        THE GRANTORS IDENTIFIED HEREIN                                        and                              BANK of AMERICA, N.A.,                               as Administrative Agent    Reference is made to the Intercreditor and Collateral Agency Agreement, dated as of November  16, 2012, among APX Group, Inc., a Delaware corporation, the other grantors party thereto,  Bank of America, N.A., in its capacity as collateral agent for the Credit Agreement Secured Par- ties (as defined therein) and Wilmington Trust, National Association, in its capacity as collateral  agent for the Senior Secured Notes Secured Parties (as defined therein), and each additional col- lateral agent from time to time party thereto as collateral agent for any First Lien Obligations (as  defined therein) of any other Class (as defined therein), and as it may be amended from time to  time in accordance with the Credit Agreement (as defined below) (the “Closing Date Intercred- itor Agreement”).  Each Secured Party (as defined in the Credit Agreement referred to below)  (a) consents to the terms of the Closing Date Intercreditor Agreement, including the priority of payment provisions of such Closing Date Intercreditor Agreement, (b) agrees that it will be bound by and will take no actions contrary to the provisions of the Closing Date Intercreditor Agreement and (c) authorizes and instructs the Administrative Agent to enter into the Closing Date Intercreditor Agreement as “Collateral Agent,” and on behalf of such Secured Party. 

 

                                TABLE OF CONTENTS                                                                              Page                                      ARTICLE I                                                                              Definitions   SECTION 1.01    Credit Agreement ..............................................................................................1  SECTION 1.02    Other Defined Terms ........................................................................................1                                     ARTICLE II                                                                            Pledge of Securities    SECTION 2.01   Pledge ...............................................................................................................4   SECTION 2.02   Delivery of the Pledged Equity .........................................................................5   SECTION 2.03   Representations, Warranties and Covenants .....................................................5   SECTION 2.04   Certification of Limited Liability Company and Limited                     Partnership Interests .....................................................................................7   SECTION 2.05   Registration in Nominee Name; Denominations ..............................................8   SECTION 2.06   Voting Rights; Dividends and Interest .............................................................8                                     ARTICLE III                                                                    Security Interests in Personal Property    SECTION 3.01   Security Interest ..............................................................................................10   SECTION 3.02   Representations and Warranties .....................................................................12   SECTION 3.03   Covenants .......................................................................................................14                                     ARTICLE IV                                                                                Remedies    SECTION 4.01   Remedies Upon Default ..................................................................................16   SECTION 4.02   Application of Proceeds ..................................................................................18   SECTION 4.03   Grant of License to Use Intellectual Property ................................................18                                     ARTICLE V                                                                              Subordination    SECTION 5.01   Subordination ..................................................................................................19                                           -i-  

 

                                                                           Page                                     ARTICLE VI                                                                              Miscellaneous    SECTION 6.01   Notices ............................................................................................................20   SECTION 6.02   Waivers; Amendment .....................................................................................20   SECTION 6.03   Administrative Agent’s Fees and Expenses; Indemnification ........................21   SECTION 6.04   Successors and Assigns ..................................................................................21  SECTION 6.05    Survival of Agreement ....................................................................................21  SECTION 6.06    Counterparts; Effectiveness; Several Agreement ...........................................21   SECTION 6.07   Severability .....................................................................................................22   SECTION 6.08   Governing Law; Jurisdiction; Venue; Waiver of Jury Trial;                     Consent to Service of Process ....................................................................22   SECTION 6.09   Headings .........................................................................................................22  SECTION 6.10    Security Interest Absolute ...............................................................................22   SECTION 6.11   Termination or Release ...................................................................................22   SECTION 6.12   Additional Grantors ........................................................................................23   SECTION 6.13   Administrative Agent Appointed Attorney-in-Fact ........................................23  SECTION 6.14    General Authority of the Administrative Agent .............................................24  SECTION 6.15    Reasonable Care .............................................................................................24  SECTION 6.16    Delegation; Limitation ....................................................................................24  SECTION 6.17    Reinstatement .................................................................................................25  SECTION 6.18    Miscellaneous .................................................................................................25    Schedules   Schedule I  Subsidiary Parties  Schedule II Pledged Equity and Pledged Debt  Schedule III Commercial Tort Claims   Exhibits   Exhibit I   Form of Security Agreement Supplement  Exhibit II  Perfection Certificate  Exhibit III Form of Patent Security Agreement  Exhibit IV  Form of Trademark Security Agreement  Exhibit V   Form of Copyright Security Agreement                                          -ii-  

 

              SECURITY AGREEMENT dated as of September [   ], 2018, among the Gran- tors (as defined below) and Bank of America, N.A., as Administrative Agent for the Secured  Parties (in such capacity, the “Administrative Agent”).               Reference is made to the Credit Agreement dated as of September [   ], 2018 (as  amended, supplemented or otherwise modified from time to time, the “Credit Agreement”),  among APX Group Inc., a Delaware corporation, (“Borrower”), APX Group Holdings, Inc., a  Delaware corporation, (the “Holdings”), the other Guarantors party thereto from time to time,  each lender from time to time party thereto (collectively, the “Lenders” and individually, a  “Lender”), and Bank of America, N.A., as Administrative Agent.  The Lenders have agreed to  extend credit to the Borrower subject to the terms and conditions set forth in the Credit Agree- ment.  The obligations of the Lenders to extend such credit are conditioned upon, among other  things, the execution and delivery of this Agreement.  Holdings and the Subsidiary Parties are  affiliates of the Borrower, will derive substantial benefits from the extension of credit to the Bor- rower pursuant to the Credit Agreement, and are willing to execute and deliver this Agreement in  order to induce the Lenders to extend such credit.  Accordingly, the parties hereto agree as fol- lows:                                    ARTICLE I                                                                             Definitions               SECTION 1.01   Credit Agreement.               (a)   Capitalized terms used in this Agreement and not otherwise defined herein  have the meanings specified in the Credit Agreement.  All terms defined in the UCC (as defined  herein) and not defined in this Agreement have the meanings specified therein; the term “instru- ment” shall have the meaning specified in Article 9 of the UCC.               (b)   The rules of construction specified in Article I of the Credit Agreement al- so apply to this Agreement.               SECTION 1.02   Other Defined Terms.  As used in this Agreement, the follow- ing terms have the meanings specified below:               “Account Debtor” means any Person who is or who may become obligated to  any Grantor under, with respect to or on account of an Account.              “Accounts” has the meaning specified in Article 9 of the UCC.               “Administrative Agent” has the meaning assigned to such term in the recitals of  the Agreement.               “Agreement” means this Security Agreement.               “Article 9 Collateral” has the meaning assigned to such term in Section 3.01(a).      

 

               “Borrower” has the meaning assigned to such term in the recitals of this Agree- ment.               “Collateral” means the Article 9 Collateral and the Pledged Collateral.               “Copyright License” means any written agreement, now or hereafter in effect,  granting any right to any third party under any Copyright now or hereafter owned by any Grantor  or that such Grantor otherwise has the right to license, or granting any right to any Grantor under  any Copyright now or hereafter owned by any third party, and all rights of such Grantor under  any such agreement.               “Copyrights” means all of the following now owned or hereafter acquired by any  Grantor: (a) all copyright rights in any work subject to the copyright laws of the United States,  whether as author, assignee, transferee or otherwise, and (b) all registrations and applications for  registration of any such copyright in the United States, including registrations, recordings, sup- plemental registrations and pending applications for registration in the USCO.               “Credit Agreement” has the meaning assigned to such term in the preliminary  statement of this Agreement.               “General Intangibles” has the meaning specified in Article 9 of the UCC.               “Grantor” means the Borrower, each Guarantor that is a party hereto, and each  Guarantor that becomes a party to this Agreement after the Closing Date.               “Intellectual Property” means all intellectual and similar property of every kind  and nature now owned or hereafter acquired by any Grantor, including inventions, designs, Pa- tents, Copyrights, Licenses, Trademarks, trade secrets, the intellectual property rights in software  and databases and related documentation and all additions and improvements to the foregoing.                “Intellectual Property Security Agreements” means the short-form Patent Se-  curity Agreement, short-form Trademark Security Agreement, and short-form Copyright Securi-  ty Agreement, each substantially in the form attached hereto as Exhibits III, IV and V, respec-  tively.                “License” means any Patent License, Trademark License, Copyright License or   other Intellectual Property license or sublicense agreement to which any Grantor is a party, to-  gether with any and all (i) renewals, extensions, supplements and continuations thereof, (ii) in- come, fees, royalties, damages, claims and payments now and hereafter due and/or payable  thereunder or with respect thereto including damages and payments for past, present or future  infringements or violations thereof, and (iii) rights to sue for past, present and future violations  thereof.               “Patent License” means any written agreement, now or hereafter in effect, grant-  ing to any third party any right to make, use or sell any invention on which a Patent, now or   hereafter owned by any Grantor or that any Grantor otherwise has the right to license, is in exist-  ence, or granting to any Grantor any right to make, use or sell any invention on which a Patent,                                          -2-  

 

    now or hereafter owned by any third party, is in existence, and all rights of any Grantor under   any such agreement.                “Patents” means all of the following now owned or hereafter acquired by any   Grantor: (a) all letters Patent of the United States in or to which any Grantor now or hereafter has   any right, title or interest therein, all registrations and recordings thereof, and all applications for   letters Patent of the United States, including registrations, recordings and pending applications in   the USPTO, and (b) all reissues, continuations, divisions, continuations-in-part, renewals, im- provements or extensions thereof, and the inventions disclosed or claimed therein, including the  right to make, use and/or sell the inventions disclosed or claimed therein.                “Perfection Certificate” means a certificate substantially in the form of Exhib-  it II, completed and supplemented with the schedules and attachments contemplated thereby, and   duly executed by a Responsible Officer of each of the Grantors.                “Pledged Collateral” has the meaning assigned to such term in Section 2.01.                “Pledged Debt” has the meaning assigned to such term in Section 2.01.                “Pledged Equity” has the meaning assigned to such term in Section 2.01.                “Pledged Securities” means the Pledged Equity and Pledged Debt.                “Secured Obligations” means the “Obligations” (as defined in the Credit Agree-  ment).                “Secured Parties” means, collectively, the Administrative Agent, the Lenders,   the Hedge Banks and each co-agent or sub-agent appointed by the Administrative Agent from   time to time pursuant to Section 9.05 of the Credit Agreement.                “Security Agreement Supplement” means an instrument substantially in the  form of Exhibit I hereto.                “Subsidiary Parties” means (a) the Restricted Subsidiaries identified on Sched-  ule I and (b) each other Restricted Subsidiary that becomes a party to this Agreement as a Sub-  sidiary Party after the Closing Date.                “Trademark License” means any written agreement, now or hereafter in effect,   granting to any third party any right to use any Trademark now or hereafter owned by any Gran-  tor or that any Grantor otherwise has the right to license, or granting to any Grantor any right to   use any Trademark now or hereafter owned by any third party, and all rights of any Grantor un-  der any such agreement.                “Trademarks” means all of the following now owned or hereafter acquired by   any Grantor: (a) all trademarks, service marks, trade names, corporate names, trade dress, logos,   designs, fictitious business names other source or business identifiers, now existing or hereafter   adopted or acquired, all registrations and recordings thereof, and all registration and recording   applications filed in connection therewith, including registrations and registration applications in                                         -3-  

 

  the USPTO or any similar offices in any State of the United States or any political subdivision  thereof, and all extensions or renewals thereof, as well as any unregistered trademarks and ser- vice marks used by a Grantor and (b) all goodwill connected with the use of and symbolized  thereby.               “UCC” means the Uniform Commercial Code as from time to time in effect in the  State of New York; provided that, if perfection or the effect of perfection or non-perfection or  the priority of the security interest in any Collateral is governed by the Uniform Commercial  Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform  Commercial Code as in effect from time to time in such other jurisdiction for purposes of the  provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.               “USCO” means the United States Copyright Office.               “USPTO” means the United States Patent and Trademark Office.                                    ARTICLE II                                                                        Pledge of Securities               SECTION 2.01   Pledge.  As security for the payment or performance, as the  case may be, in full of the Secured Obligations, including the Guarantees, each of the Grantors  hereby assigns and pledges to the Administrative Agent, its successors and assigns, for the bene- fit of the Secured Parties, and hereby grants to the Administrative Agent, its successors and as- signs, for the benefit of the Secured Parties, a security interest in all of such Grantors’ right, title  and interest in, to and under:               (i)   all Equity Interests held by it that are listed on Schedule II and any other        Equity Interests obtained in the future by such Grantor and the certificates representing        all such Equity Interests (the “Pledged Equity”); provided that the Pledged Equity shall        not include (A) Excluded Assets or (B) for the avoidance of doubt, Equity Interests in ex-       cess of 65% of the issued and outstanding Equity Interests of (1) any Restricted Subsidi-       ary that is a wholly owned Material Domestic Subsidiary that is directly owned by the        Borrower or by any Subsidiary Guarantor and that (x) is treated as a disregarded entity        for federal income tax purposes and (y) substantially all of the assets of which consist of        the Equity Interests and/or Indebtedness of one or more CFCs and any other assets inci-       dental thereto and (2) any Restricted Subsidiary that is a wholly owned Material Foreign        Subsidiary that is directly owned by the Borrower or by any Subsidiary Guarantor;              (ii)  (A) the debt securities owned by it and listed opposite the name of such       Grantor on Schedule II, (B) any debt securities obtained in the future by such Grantor and        (C) the promissory notes and any other instruments evidencing such debt securities (the        “Pledged Debt”); provided that the Pledged Debt shall not include any Excluded Assets;              (iii)  all other property that may be delivered to and held by the Administrative        Agent pursuant to the terms of this Section 2.01;                                         -4-  

 

               (iv)   subject to Section 2.06, all payments of principal or interest, dividends,         cash, instruments and other property from time to time received, receivable or otherwise         distributed in respect of, in exchange for or upon the conversion of, and all other Pro-        ceeds received in respect of, the securities referred to in clauses (i) and (ii) above;                (v)   subject to Section 2.06, all rights and privileges of such Grantor with re-        spect to the securities and other property referred to in clauses (i), (ii), (iii) and (iv)        above; and               (vi)  all Proceeds of any of the foregoing   (the items referred to in clauses (i) through (vi) above being collectively referred to as the  “Pledged Collateral”).   TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest, powers,  privileges and preferences pertaining or incidental thereto, unto the Administrative Agent, its  successors and assigns, for the benefit of the Secured Parties, forever, subject, however, to the  terms, covenants and conditions hereinafter set forth.                SECTION 2.02   Delivery of the Pledged Equity.                (a)   Each Grantor agrees promptly (but in any event within 30 days after re- ceipt by such Grantor or such longer period as the Administrative Agent may agree in its reason- able discretion) to deliver or cause to be delivered to the Administrative Agent, for the benefit of  the Secured Parties, any and all (i) Pledged Equity to the extent certificated and (ii) to the extent  required to be delivered pursuant to paragraph (b) of this Section 2.02, Pledged Debt.               (b)   Each Grantor will cause any Indebtedness for borrowed money having an  aggregate principal amount in excess of $5,000,000 owed to such Grantor by any Person that is  evidenced by a duly executed promissory note to be pledged and delivered to the Administrative  Agent, for the benefit of the Secured Parties, pursuant to the terms hereof.                (c)   Upon delivery to the Administrative Agent, any Pledged Securities shall   be accompanied by stock or security powers duly executed in blank or other instruments of trans-  fer reasonably satisfactory to the Administrative Agent and by such other instruments and docu-  ments as the Administrative Agent may reasonably request (other than instruments or documents   governed by or requiring actions in any non-U.S. jurisdiction related to Equity Interests of For-  eign Subsidiaries).  Each delivery of Pledged Securities shall be accompanied by a schedule de-  scribing the securities, which schedule shall be deemed to supplement Schedule II and made a   part hereof; provided that failure to supplement Schedule II shall not affect the validity of such   pledge of such Pledged Equity.  Each schedule so delivered shall supplement any prior schedules   so delivered.                SECTION 2.03   Representations, Warranties and Covenants.  Each Grantor rep-  resents, warrants and covenants to and with the Administrative Agent, for the benefit of the Se-  cured Parties, that:                                          -5-  

 

                      (a)   As of the date hereof, Schedule II includes all Equity Interests, debt secu-  rities and promissory notes required to be pledged by such Grantor hereunder in order to   satisfy the Collateral and Guarantee Requirement;          (b)   the Pledged Equity issued by the Borrower, each other Borrower, or a   wholly-owned Restricted Subsidiary have been duly and validly authorized and issued by  the issuers thereof and are fully paid and nonassessable;          (c)   except for the security interests granted hereunder, such Grantor (i) is,   subject to any transfers made in compliance with the Credit Agreement, the direct owner,   beneficially and of record, of the Pledged Equity indicated on Schedule II, (ii) holds the   same free and clear of all Liens, other than (A) Liens created by the Collateral Docu-  ments and any Liens expressly permitted by Section 7.01 of the Credit Agreement that   are governed by any Intercreditor Agreement and (B) nonconsensual Liens expressly   permitted pursuant to Section 7.01 of the Credit Agreement, and (iii) if requested by the   Administrative Agent, will defend its title or interest thereto or therein against any and all   Liens (other than the Liens permitted pursuant to this Section 2.03(c)), however arising,   of all Persons whomsoever;          (d)   except for restrictions and limitations (i) that are imposed or permitted by   the Loan Documents or securities laws generally, (ii) in the case of Pledged Equity of   Persons that are not Subsidiaries, that are transfer restrictions that exist at the time of ac-  quisition of Equity Interests in such Persons, and (iii) that are described in the Perfection   Certificate, the Pledged Collateral is freely transferable and assignable, and none of the   Pledged Collateral is subject to any option, right of first refusal, shareholders agreement,   charter or by-law provisions or contractual restriction of any nature that might prohibit,   impair, delay or otherwise affect in any manner material and adverse to the Secured Par-  ties the pledge of such Pledged Collateral hereunder, the sale or disposition thereof pur-  suant hereto or the exercise by the Administrative Agent of rights and remedies hereun-  der;          (e)   the execution and performance by the Grantors of this Agreement are   within each Grantor’s corporate or limited liability company powers and have been duly   authorized by all necessary corporate or limited liability company action or other organi-  zational action;          (f)   no consent or approval of any Governmental Authority, any securities ex-  change or any other Person was or is necessary to the validity of the pledge effected   hereby, except for (i) filings and registrations necessary to perfect the Liens on the Col-  lateral granted by the Loan Parties in favor of the Administrative Agent (for the benefit of   the Secured Parties) and (ii) approvals, consents, exemptions, authorizations, actions, no-  tices and filings which have been duly obtained, taken, given or made and are in full   force and effect (except to the extent not required to be obtained, taken, given, or made or   to be in full force and effect pursuant to the Collateral and Guarantee Requirement);          (g)   by virtue of the execution and delivery by each Grantor of this Agreement,   and delivery of the Pledged Securities to and continued possession by the Administrative                                   -6-  

 

          Agent or its bailee pursuant to the Closing Date Intercreditor Agreement, the Administra-        tive Agent for the benefit of the Secured Parties has a legal, valid and perfected lien upon         and security interest in such Pledged Security as security for the payment and perfor-        mance of the Secured Obligations to the extent such perfection is governed by the UCC,         subject only to nonconsensual Liens permitted by Section 7.01 of the Credit Agreement         and any Lien expressly permitted by Section 7.01 of the Credit Agreement that are gov-       erned by any Intercreditor Agreement; and               (h)   the pledge effected hereby is effective to vest in the Administrative Agent,        for the benefit of the Secured Parties, the rights of the Administrative Agent in the        Pledged Collateral to the extent intended hereby.               Subject to the terms of this Agreement, each Grantor hereby agrees that upon the  occurrence and during the continuance of an Event of Default, it will comply with instructions of  the Administrative Agent with respect to the Equity Interests in such Grantor that constitute  Pledged Equity hereunder that are not certificated without further consent by the applicable own- er or holder of such Equity Interests.               Notwithstanding anything to the contrary in this Agreement, to the extent any  provision of this Agreement or the Credit Agreement excludes any assets from the scope of the  Pledged Collateral, or from any requirement to take any action to perfect any security interest in  favor of the Administrative Agent for the benefit of the Secured Parties in the Pledged Collateral,  the representations, warranties and covenants made by any relevant Grantor in this Agreement  with respect to the creation, perfection or priority (as applicable) of the security interest granted  in favor of the Administrative Agent for the benefit of the Secured Parties (including, without  limitation, this Section 2.03) shall be deemed not to apply to such excluded assets.                SECTION 2.04   Certification of Limited Liability Company and Limited Part-  nership Interests.  No interest in any limited liability company or limited partnership controlled   by any Grantor that constitutes Pledged Equity shall be represented by a certificate unless (i) the   limited liability company agreement or partnership agreement expressly provides that such inter-  ests shall be a “security” within the meaning of Article 8 of the UCC of the applicable jurisdic-  tion, and (ii) such certificate shall be delivered to the Administrative Agent in accordance with   Section 2.02.  Any limited liability company and any limited partnership controlled by any Gran-  tor shall either (a) not include in its operative documents any provision that any Equity Interests   in such limited liability company or such limited partnership be a “security” as defined under   Article 8 of the Uniform Commercial Code or (b) certificate any Equity Interests in any such   limited liability company or such limited partnership.  To the extent an interest in any limited   liability company or limited partnership controlled by any Grantor and pledged under Section   2.01 is certificated or becomes certificated, (i) each such certificate shall be delivered to the Ad-  ministrative Agent, pursuant to Section 2.02(a) and (ii) such Grantor shall fulfill all other re-  quirements under Section 2.02 applicable in respect thereof.  Such Grantor hereby agrees that if   any of the Pledged Collateral are at any time not evidenced by certificates of ownership, then   each applicable Grantor shall, to the extent permitted by applicable law, if necessary or, upon the   request of the Administrative Agent, desirable to perfect a security interest in such Pledged Col-  lateral, cause such pledge to be recorded on the equity holder register or the books of the issuer,   execute any customary pledge forms or other documents necessary or appropriate to complete                                         -7-  

 

    the pledge and give the Administrative Agent the right to transfer such Pledged Collateral under   the terms hereof.                SECTION 2.05   Registration in Nominee Name; Denominations.  If an Event of   Default shall have occurred and be continuing and the Administrative Agent shall have given the   Borrower prior written notice of its intent to exercise such rights, (a) the Administrative Agent,   on behalf of the Secured Parties, shall have the right to hold the Pledged Securities in its own   name as pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of the appli-  cable Grantor, endorsed or assigned in blank or in favor of the Administrative Agent and each   Grantor will promptly give to the Administrative Agent copies of any written notices or other   written communications received by it with respect to Pledged Equity registered in the name of   such Grantor and (b) the Administrative Agent shall have the right to exchange the certificates   representing Pledged Equity for certificates of smaller or larger denominations for any purpose   consistent with this Agreement, to the extent permitted by the documentation governing such   Pledged Securities.                SECTION 2.06   Voting Rights; Dividends and Interest.                (a)   Unless and until an Event of Default shall have occurred and be continu-  ing and the Administrative Agent shall have provided prior notice to the Borrower that the rights  of the Grantor under this Section 2.06 are being suspended:                (i)   Each Grantor shall be entitled to exercise any and all voting and/or other         consensual rights and powers inuring to an owner of Pledged Securities or any part there-        of and each Grantor agrees that it shall exercise such rights for purposes consistent with         the terms of this Agreement, the Credit Agreement and the other Loan Documents.               (ii)  The Administrative Agent shall promptly (after reasonable advance no-        tice) execute and deliver to each Grantor, or cause to be executed and delivered to such         Grantor, all such proxies, powers of attorney and other instruments as such Grantor may         reasonably request for the purpose of enabling such Grantor to exercise the voting and/or        consensual rights and powers it is entitled to exercise pursuant to subparagraph (i) above.               (iii) Each Grantor shall be entitled to receive and retain any and all dividends,        interest, principal and other distributions paid on or distributed in respect of the Pledged        Securities to the extent and only to the extent that such dividends, interest, principal and        other distributions are permitted by, and otherwise paid or distributed in accordance with,        the terms and conditions of the Credit Agreement, the other Loan Documents and appli-       cable Laws; provided that any noncash dividends, interest, principal or other distributions        that would constitute Pledged Equity or Pledged Debt, whether resulting from a subdivi-       sion, combination or reclassification of the outstanding Equity Interests of the issuer of        any Pledged Securities or received in exchange for Pledged Securities or any part thereof,        or in redemption thereof, or as a result of any merger, consolidation, acquisition or other        exchange of assets to which such issuer may be a party or otherwise, shall be and become        part of the Pledged Collateral, and, if received by any Grantor, shall not be commingled        by such Grantor with any of its other funds or property but shall be held separate and        apart therefrom, shall be held in trust for the benefit of the Administrative Agent and the                                         -8-  

 

          Secured Parties and shall be promptly (and in any event within 10 Business Days or such         longer period as the Administrative Agent may agree in its reasonable discretion) deliv-        ered to the Administrative Agent in the same form as so received (with any necessary en-        dorsement reasonably requested by the Administrative Agent).  So long as no Default or         Event of Default has occurred and is continuing, the Administrative Agent shall promptly         deliver to each Grantor any Pledged Securities in its possession if requested to be deliv-        ered to the issuer thereof in connection with any exchange or redemption of such Pledged         Securities permitted by the Credit Agreement in accordance with this Section 2.06(a)(iii).                (b)   Upon the occurrence and during the continuance of an Event of Default,   after the Administrative Agent shall have notified the Borrower of the suspension of the Gran-  tors’ rights under paragraph (a)(iii) of this Section 2.06, then all rights of any Grantor to divi-  dends, interest, principal or other distributions that such Grantor is authorized to receive pursuant  to paragraph (a)(iii) of this Section 2.06 shall cease, and all such rights shall thereupon become  vested in the Administrative Agent, which shall have the sole and exclusive right and authority to  receive and retain such dividends, interest, principal or other distributions subject to the terms of  the Closing Date Intercreditor Agreement.  All dividends, interest, principal or other distributions  received by any Grantor contrary to the provisions of this Section 2.06 shall be held in trust for  the benefit of the Administrative Agent, shall be segregated from other property or funds of such  Grantor and shall be promptly (and in any event within 10 days or such longer period as the Ad- ministrative Agent may agree in its reasonable discretion) delivered to the Administrative Agent  upon demand in the same form as so received (with any necessary endorsement reasonably re- quested by the Administrative Agent).  Any and all money and other property paid over to or re- ceived by the Administrative Agent pursuant to the provisions of this paragraph (b) shall be re- tained by the Administrative Agent in an account to be established by the Administrative Agent  upon receipt of such money or other property and shall be applied in accordance with the provi- sions of Section 4.02.  After all Events of Default have been cured or waived, the Administrative  Agent shall promptly repay to each Grantor (without interest) all dividends, interest, principal or  other distributions that such Grantor would otherwise be permitted to retain pursuant to the terms  of paragraph (a)(iii) of this Section 2.06 and that remain in such account.               (c)   Upon the occurrence and during the continuance of an Event of Default,  after the Administrative Agent shall have provided the Borrower with notice of the suspension of  its rights under paragraph (a)(i) of this Section 2.06, then all rights of any Grantor to exercise the  voting and consensual rights and powers it is entitled to exercise pursuant to paragraph (a)(i) of  this Section 2.06, and the obligations of the Administrative Agent under paragraph (a)(ii) of this  Section 2.06, shall cease, and all such rights shall thereupon become vested in the Administrative  Agent, which shall have the sole and exclusive right and authority to exercise such voting and  consensual rights and powers; provided that, unless otherwise directed by the Required Lenders,  the Administrative Agent shall have the right from time to time following and during the contin- uance of an Event of Default to permit the Grantors to exercise such rights.  After all Events of  Default have been cured or waived, each Grantor shall have the exclusive right to exercise the  voting and/or consensual rights and powers that the Borrower would otherwise be entitled to ex- ercise pursuant to the terms of paragraph (a)(i) above, and the obligations of the Administrative  Agent under paragraph (a)(ii) of this Section 2.06 shall be reinstated.                                          -9-  

 

             (d)   Any notice given by the Administrative Agent to the Borrower under Sec- tion 2.05 or Section 2.06 (i) shall be given in writing, (ii) may be given with respect to one or  more Grantors at the same or different times and (iii) may suspend the rights of the Grantors un- der paragraph (a)(i) or paragraph (a)(iii) of this Section 2.06 in part without suspending all such  rights (as specified by the Administrative Agent in its sole and absolute discretion) and without  waiving or otherwise affecting the Administrative Agent’s rights to give additional notices from  time to time suspending other rights so long as an Event of Default has occurred and is continu- ing.                                    ARTICLE III                                                                 Security Interests in Personal Property               SECTION 3.01   Security Interest.               (a)   As security for the payment or performance, as the case may be, in full of  the Secured Obligations, including the Guarantees, each Grantor hereby assigns and pledges to  the Administrative Agent, its successors and assigns, for the benefit of the Secured Parties, and  hereby grants to the Administrative Agent, its successors and assigns, for the benefit of the Se- cured Parties, a security interest (the “Security Interest”) in, all right, title or interest in or to any  and all of the following assets and properties now owned or at any time hereafter acquired by  such Grantor or in which such Grantor now has or at any time in the future may acquire any  right, title or interest (collectively, the “Article 9 Collateral”):               (i)   all Accounts;              (ii)  all Chattel Paper;              (iii) all Documents;              (iv)   all Equipment;               (v)   all General Intangibles;              (vi)   all Goods;             (vii)  all Instruments;             (viii) all Inventory;              (ix)  all Investment Property;               (x)  all books and records pertaining to the Article 9 Collateral;              (xi)  all Fixtures;                                          -10-  

 

            (xii)  all Letter-of-Credit Rights, but only to the extent constituting a supporting        obligation for other Article 9 Collateral as to which perfection of security interests in        such Article 9 Collateral is accomplished by the filing of a UCC financing statement;             (xiii) all Intellectual Property;             (xiv)   all Commercial Tort Claims listed on Schedule III and on any supplement        thereto received by the Administrative Agent pursuant to Section 3.03(g); and              (xv)  to the extent not otherwise included, all Proceeds and products of any and       all of the foregoing and all Supporting Obligations, collateral security and guarantees       given by any Person with respect to any of the foregoing;   provided that, notwithstanding anything to the contrary in this Agreement, this Agreement shall  not constitute a grant of a security interest in any Excluded Assets and the term “Article 9 Col- lateral” shall not include any Excluded Assets.               (b)   Subject to Section 3.01(e), each Grantor hereby irrevocably authorizes the  Administrative Agent for the benefit of the Secured Parties at any time and from time to time to  file in any relevant jurisdiction any initial financing statements with respect to the Article 9 Col- lateral or any part thereof and amendments thereto that (i) indicate the Article 9 Collateral as “all  assets” or “all personal property” of such Grantor or words of similar effect as being of an equal  or lesser scope or with greater detail and (ii) contain the information required by Article 9 of the  Uniform Commercial Code or the analogous legislation of each applicable jurisdiction for the  filing of any financing statement or amendment, including whether such Grantor is an organiza- tion, the type of organization and, if required, any organizational identification number issued to  such Grantor.  Each Grantor agrees to provide such information to the Administrative Agent  promptly upon any reasonable request.               (c)   The Security Interest is granted as security only and shall not subject the  Administrative Agent or any other Secured Party to, or in any way alter or modify, any obliga- tion or liability of any Grantor with respect to or arising out of the Article 9 Collateral.               (d)   Each Grantor hereby further authorizes the Administrative Agent to file  with the USPTO or the USCO (or any successor office) one or more Intellectual Property Securi- ty Agreements substantially in the form of Exhibits III, IV or V, as applicable, and such other  documents as may be necessary or advisable for the purpose of perfecting, confirming, continu- ing, enforcing or protecting the Security Interest in United States Intellectual Property of each  Grantor in which a security interest has been granted by each Grantor, without the signature of  any Grantor, and naming any Grantor or the Grantor as debtors and the Administrative Agent as  secured party.  No Grantor shall be required to complete any filings governed by non-United  States laws or take any other action with respect to the perfection of the Security Interests created  hereby in any Intellectual Property subsisting in any non-United States jurisdiction.               (e)   Notwithstanding anything to the contrary in the Loan Documents, none of  the Grantors shall be required, nor is the Administrative Agent authorized, (i) to perfect the Se- curity Interests granted by this Security Agreement (including Security Interests in Investment  Property and Fixtures) by any means other than by (A) filings pursuant to the Uniform Commer-                                       -11-  

 

    cial Code in the office of the secretary of state (or similar central filing office) of the relevant   State(s), and filings in the applicable real estate records with respect to any fixtures relating to   Mortgaged Properties, (B) filings in United States government offices with respect to Intellectual  Property of Grantor as expressly required elsewhere herein, (C) delivery to the Administrative  Agent to be held in its possession of all Collateral consisting of Instruments and certificated  Pledged Equity as expressly required elsewhere herein or (D) other methods expressly provided  herein, (ii) to enter into any deposit account control agreement, securities account control agree-  ment or any other control agreement with respect to any deposit account, securities account or   any other Collateral that requires perfection by “control” except as otherwise set forth in this   Section 3.01(e), (iii) to take any action (other than the actions listed in clauses (i)(A) and (C)   above) with respect to any assets located outside of the United States, (iv) to perfect in any assets   subject to a certificate of title statute or (v) to deliver any Equity Interests except as expressly   provided in Section 2.01.                SECTION 3.02   Representations and Warranties.  Each Grantor jointly and sev-  erally represents and warrants, as to itself and the other Grantors, to the Administrative Agent   and the Secured Parties that:                (a)   Subject to Liens permitted by Section 7.01 of the Credit Agreement, each         Grantor has good and valid rights in and title (except as otherwise permitted by the Loan         Documents) to the Article 9 Collateral with respect to which it has purported to grant a         Security Interest hereunder and has full power and authority to grant to the Administra-        tive Agent the Security Interest in such Article 9 Collateral pursuant hereto and to exe-        cute, deliver and perform its obligations in accordance with the terms of this Agreement,         without the consent or approval of any other Person other than any consent or approval         that has been obtained.                (b)   The Perfection Certificate has been duly prepared, completed and execut-        ed and the information set forth therein is correct and complete in all material respects         (except the information therein with respect to the exact legal name of each Grantor shall         be correct and complete in all respects) as of the Closing Date.  Subject to Section         3.01(e), the Uniform Commercial Code financing statements or other appropriate filings,         recordings or registrations prepared by the Administrative Agent based upon the infor-        mation provided to the Administrative Agent in the Perfection Certificate for filing in the         applicable filing office (or specified by notice from the Borrower to the Administrative         Agent after the Closing Date in the case of filings, recordings or registrations (other than         filings required to be made in the USPTO and the USCO in order to perfect the Security         Interest in Article 9 Collateral consisting of United States Patents, Trademarks and Copy-        rights), in each case, as required by Section 6.11 of the Credit Agreement), are all the fil-        ings, recordings and registrations that are necessary to establish a legal, valid and perfect-        ed security interest in favor of the Administrative Agent (for the benefit of the Secured         Parties) in respect of all Article 9 Collateral in which the Security Interest may be per-        fected by filing, recording or registration in the United States (or any political subdivision         thereof) and its territories and possessions pursuant to the Uniform Commercial Code,         and no further or subsequent filing, re-filing, recording, rerecording, registration or         re-registration is necessary in any such jurisdiction, except as provided under applicable         Law with respect to the filing of continuation statements.                                         -12-  

 

                     (c)   Each Grantor represents and warrants that short-form Intellectual Property  Security Agreements containing a description of all Article 9 Collateral consisting of ma- terial United States registered Patents (and Patents for which United States registration  applications are pending), United States registered Trademarks (and Trademarks for  which United States registration applications are pending) and United States registered  Copyrights, respectively (other than, in each case, any Excluded Assets), have been de- livered to the Administrative Agent for recording by the USPTO and the USCO pursuant  to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. § 205 and the regulations thereunder,  as applicable, (for the benefit of the Secured Parties) in respect of all Article 9 Collateral  consisting of registrations and applications for Patents, Trademarks and Copyrights.  To  the extent a security interest may be perfected by filing, recording or registration in  USPTO or USCO under the Federal intellectual property laws, then no further or subse- quent filing, re-filing, recording, rerecording, registration or re-registration is necessary  (other than (i) such filings and actions as are necessary to perfect the Security Interest  with respect to any Article 9 Collateral consisting of Patents, Trademarks and Copyrights  (or registration or application for registration thereof) acquired or developed by any  Grantor after the date hereof and (ii) the UCC financing and continuation statements con- templated in Section 3.02(b)).         (d)   The Security Interest constitutes (i) a legal and valid security interest in all  the Article 9 Collateral securing the payment and performance of the Secured Obligations  and (ii) subject to the filings described in Section 3.02(b), a perfected security interest in  all Article 9 Collateral in which a security interest may be perfected by filing, recording  or registering a financing statement or analogous document in the United States (or any  political subdivision thereof) and its territories and possessions pursuant to the Uniform  Commercial Code.  Subject to Section 3.01(e) of this Agreement, the Security Interest is  and shall be prior to any other Lien on any of the Article 9 Collateral, other than any  Liens expressly permitted pursuant to Section 7.01 of the Credit Agreement.         (e)   The Article 9 Collateral is owned by the Grantors free and clear of any  Lien, except for Liens expressly permitted pursuant to Section 7.01 of the Credit Agree- ment.  None of the Grantors has filed or consented to the filing of (i) any financing state- ment or analogous document under the Uniform Commercial Code or any other applica- ble Laws covering any Article 9 Collateral, (ii) any assignment in which any Grantor as- signs any Article 9 Collateral or any security agreement or similar instrument covering  any Article 9 Collateral with the USPTO or the USCO or (iii) any assignment in which  any Grantor assigns any Article 9 Collateral or any security agreement or similar instru- ment covering any Article 9 Collateral with any foreign governmental, municipal or other  office, which financing statement or analogous document, assignment, security agree- ment or similar instrument is still in effect, except, in each case, for Liens expressly per- mitted pursuant to Section 7.01 of the Credit Agreement and assignments permitted by  the Credit Agreement.          (f)   As of the date hereof, no Grantor has any Commercial Tort Claim in ex-  cess of $8,000,000 other than the Commercial Tort Claims listed on Schedule III.                                    -13-  

 

                SECTION 3.03   Covenants.                (a)   The Borrower agrees to notify the Administrative Agent in writing   promptly, but in any event within 60 days (or such longer period as the Administrative Agent   may agree in its reasonable discretion), after any change in (i) the legal name of any Grantor, (ii)   the identity or type of organization or corporate structure of any Grantor, (iii) the jurisdiction of   organization of any Grantor or (iv) the organizational identification number of such Grantor, if   any.                (b)   Subject to Section 3.01(e), each Grantor shall, at its own expense, upon   the reasonable request of the Administrative Agent, take any and all commercially reasonable   actions necessary to defend title to the Article 9 Collateral against all Persons and to defend the   Security Interest of the Administrative Agent in the Article 9 Collateral and the priority thereof   against any Lien not expressly permitted pursuant to Section 7.01 of the Credit Agreement; pro-  vided that, nothing in this Agreement shall prevent any Grantor from discontinuing the operation   or maintenance of any of its assets or properties if such discontinuance is (x) determined by such   Grantor to be desirable in the conduct of its business and (y) permitted by the Credit Agreement.                (c)   Subject to Section 3.01(e), each Grantor agrees, at its own expense, to ex- ecute, acknowledge, deliver and cause to be duly filed all such further instruments and docu- ments and take all such actions as the Administrative Agent may from time to time reasonably  request to better assure, preserve, protect and perfect the Security Interest and the rights and  remedies created hereby, including the payment of any fees and taxes required in connection  with the execution and delivery of this Agreement, the granting of the Security Interest and the  filing of any financing statements (including amendments or continuations thereof) or other doc- uments in connection herewith or therewith.  If any amount payable under or in connection with  any of the Article 9 Collateral that is in excess of $5,000,000 shall be or become evidenced by  any promissory note, other instrument or debt security, such note, instrument or debt security  shall be promptly (and in any event within 30 days of its acquisition or such longer period as the  Administrative Agent may agree in its reasonable discretion) pledged and delivered to the Ad- ministrative Agent, for the benefit of the Secured Parties, duly endorsed in a manner reasonably  satisfactory to the Administrative Agent.               (d)   At its option, the Administrative Agent may discharge past due taxes, as- sessments, charges, fees, Liens, security interests or other encumbrances at any time levied or  placed on the Article 9 Collateral and not permitted pursuant to Section 7.01 of the Credit  Agreement, and may pay for the maintenance and preservation of the Article 9 Collateral to the  extent any Grantor fails to do so as required by the Credit Agreement or any other Loan Docu- ment and within a reasonable period of time after the Administrative Agent has requested that it  do so, and each Grantor jointly and severally agrees to reimburse the Administrative Agent with- in 10 Business Days after demand for any payment made or any reasonable expense incurred by  the Administrative Agent pursuant to the foregoing authorization; provided, however, the Gran- tors shall not be obligated to reimburse the Administrative Agent with respect to any Intellectual  Property that any Grantor has failed to maintain or pursue, or otherwise allowed to lapse, termi- nate, expire or be put into the public domain in accordance with Section 3.03(f)(iv).  Nothing in  this paragraph shall be interpreted as excusing any Grantor from the performance of, or imposing  any obligation on the Administrative Agent or any Secured Party to cure or perform, any cove-                                        -14-  

 

    nants or other promises of any Grantor with respect to taxes, assessments, charges, fees, Liens,   security interests or other encumbrances and maintenance as set forth herein or in the other Loan   Documents.                (e)   Each Grantor (rather than the Administrative Agent or any Secured Party)   shall remain liable (as between itself and any relevant counterparty) to observe and perform all   the conditions and obligations to be observed and performed by it under each contract, agree- ment or instrument relating to the Article 9 Collateral, all in accordance with the terms and con-  ditions thereof.                (f)   If at any time any Grantor shall take a security interest in any property of   an Account Debtor or any other Person the value of which is in excess of $5,000,000 to secure   payment and performance of an Account, such Grantor shall promptly assign such security inter-  est to the Administrative Agent for the benefit of the Secured Parties provided that, notwith- standing anything to the contrary in this Agreement, this Agreement shall not constitute a grant  of a security interest in any Excluded Assets.  Such assignment need not be filed of public record  unless necessary to continue the perfected status of the security interest against creditors of and  transferees from the Account Debtor or other Person granting the security interest.                (g)   Intellectual Property Covenants.                (i)   Other than to the extent not prohibited herein or in the Credit Agreement   or with respect to registrations and applications no longer used or useful, except to the extent   failure to act would not, as deemed by the applicable Grantor in its reasonable business judg-  ment, reasonably be expected to have a Material Adverse Effect, with respect to registration or   pending application of each item of its Intellectual Property for which such Grantor has standing   to do so, each Grantor agrees to take, at its expense, all reasonable steps, including, without limi-  tation, in the USPTO, the USCO and any other governmental authority located in the United   States, to pursue the registration and maintenance of each Patent, Trademark, or Copyright regis-  tration or application now or hereafter included in the Intellectual Property of such Grantor that   are not Excluded Assets.               (ii)  Other than to the extent not prohibited herein or in the Credit Agreement,  or with respect to registrations and applications no longer used or useful, or except as would not,  as deemed by the applicable Grantor in its reasonable business judgment, reasonably be expected  to have a Material Adverse Effect, no Grantor shall do or permit any act or knowingly omit to do  any act whereby any of its Intellectual Property, excluding Excluded Assets, may lapse, be ter- minated, or become invalid or unenforceable or placed in the public domain (or in the case of a  trade secret, become publicly known).               (iii) Other than as excluded or as not prohibited herein or in the Credit Agree- ment, or with respect to Patents, Copyrights or Trademarks which are no longer used or useful in  the applicable Grantor’s business operations or except where failure to do so would not, as  deemed by the applicable Grantor in its reasonable business judgment, reasonably be expected to  have a Material Adverse Effect, each Grantor shall take all reasonable steps to preserve and pro- tect each item of its Intellectual Property, including, without limitation, maintaining the quality  of any and all products or services used or provided in connection with any of the Trademarks,                                         -15-  

 

    consistent with the quality of the products and services as of the date hereof, and taking reasona-  ble steps necessary to ensure that all licensed users of any of the Trademarks abide by the appli- cable license’s terms with respect to standards of quality.               (iv)  Notwithstanding any other provision of this Agreement, nothing in this  Agreement or any other Loan Document prevents or shall be deemed to prevent any Grantor  from disposing of, discontinuing the use or maintenance of, failing to pursue, or otherwise allow- ing to lapse, terminate or be put into the public domain, any of its Intellectual Property to the ex- tent permitted by the Credit Agreement if such Grantor determines in its reasonable business  judgment that such discontinuance is desirable in the conduct of its business.                (v)  Within the same delivery period as required for the delivery of the annual  Compliance Certificate required to be delivered under Section 6.02(a) of the Credit Agreement  the Borrower shall provide a list of any additional registrations of Intellectual Property of all  Grantors not previously disclosed to the Administrative Agent including such information as is  necessary for such Grantor to make appropriate filings in the USPTO and USCO.               (h)   Commercial Tort Claims.  If the Grantors shall at any time hold or acquire  a Commercial Tort Claim in an amount reasonably estimated by such Grantor to exceed  $5,000,000 for which this clause has not been satisfied and for which a complaint in a court of  competent jurisdiction has been filed, such Grantor shall within 45 days (or such longer period as  the Administrative Agent may agree in its reasonable discretion) after the end of the fiscal quar- ter in which such complaint was filed notify the Administrative Agent thereof in a writing signed  by such Grantor including a summary description of such claim and grant to the Administrative  Agent, for the benefit of the Secured Parties, in such writing a security interest therein and in the  proceeds thereof, all upon the terms of this Agreement.                                     ARTICLE IV                                                                               Remedies                SECTION 4.01   Remedies Upon Default.  Upon the occurrence and during the   continuance of an Event of Default, it is agreed that the Administrative Agent shall have the right  to exercise any and all rights afforded to a secured party with respect to the Secured Obligations,  including the Guarantees, under the Uniform Commercial Code or other applicable Law and also   may (i) require each Grantor to, and each Grantor agrees that it will at its expense and upon re-  quest of the Administrative Agent, promptly assemble all or part of the Collateral as directed by   the Administrative Agent and make it available to the Administrative Agent at a place and time   to be designated by the Administrative Agent that is reasonably convenient to both parties; (ii)   occupy any premises owned or, to the extent lawful and permitted, leased by any of the Grantors   where the Collateral or any part thereof is assembled or located for a reasonable period in order   to effectuate its rights and remedies hereunder or under Law, without obligation to such Grantor   in respect of such occupation; provided that the Administrative Agent shall provide the applica-  ble Grantor with notice thereof prior to such occupancy; (iii) exercise any and all rights and rem-  edies of any of the Grantors under or in connection with the Collateral, or otherwise in respect of   the Collateral; provided that the Administrative Agent shall provide the applicable Grantor with   notice thereof prior to such exercise; and (iv) subject to the mandatory requirements of applica-                                        -16-  

 

    ble Law and the notice requirements described below, sell or otherwise dispose of all or any part   of the Collateral securing the Secured Obligations at a public or private sale or at any broker’s   board or on any securities exchange, for cash, upon credit or for future delivery as the Adminis-  trative Agent shall deem appropriate. The Administrative Agent shall be authorized at any such   sale of securities (if it deems it advisable to do so) to restrict the prospective bidders or purchas-  ers to Persons who will represent and agree that they are purchasing the Collateral for their own   account for investment and not with a view to the distribution or sale thereof, and upon consum-  mation of any such sale the Administrative Agent shall have the right to assign, transfer and de-  liver to the purchaser or purchasers thereof the Collateral so sold.  Each such purchaser at any   sale of Collateral shall hold the property sold absolutely, free from any claim or right on the part  of any Grantor, and each Grantor hereby waives (to the extent permitted by Law) all rights of  redemption, stay and appraisal which such Grantor now has or may at any time in the future have   under any Law now existing or hereafter enacted.                The Administrative Agent shall give the applicable Grantors 10 days’ written no-  tice (which each Grantor agrees is reasonable notice within the meaning of Section 9-611 of the   UCC or its equivalent in other jurisdictions) of the Administrative Agent’s intention to make any   sale of Collateral.  Such notice, in the case of a public sale, shall state the time and place for such   sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board   or exchange at which such sale is to be made and the day on which the Collateral, or portion   thereof, will first be offered for sale at such board or exchange.  Any such public sale shall be   held at such time or times within ordinary business hours and at such place or places as the Ad-  ministrative Agent may fix and state in the notice (if any) of such sale.  At any such sale, the   Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate par-  cels, as the Administrative Agent may (in its sole and absolute discretion) determine.  The Ad-  ministrative Agent shall not be obligated to make any sale of any Collateral if it shall determine   not to do so, regardless of the fact that notice of sale of such Collateral shall have been given.    The Administrative Agent may, without notice or publication, adjourn any public or private sale   or cause the same to be adjourned from time to time by announcement at the time and place fixed   for sale, and such sale may, without further notice, be made at the time and place to which the   same was so adjourned.  In case any sale of all or any part of the Collateral is made on credit or   for future delivery, the Collateral so sold may be retained by the Administrative Agent until the   sale price is paid by the purchaser or purchasers thereof, but the Administrative Agent shall not   incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the   Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like   notice.  At any public (or, to the extent permitted by Law, private) sale made pursuant to this   Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by Law)   from any right of redemption, stay, valuation or appraisal on the part of any Grantor (all said   rights being also hereby waived and released to the extent permitted by Law), the Collateral or   any part thereof offered for sale and may make payment on account thereof by using any claim   then due and payable to such Secured Party from any Grantor as a credit against the purchase   price, and such Secured Party may, upon compliance with the terms of sale, hold, retain and dis-  pose of such property without further accountability to any Grantor therefor.  For purposes here-  of, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale   thereof; the Administrative Agent shall be free to carry out such sale pursuant to such agreement   and no Grantor shall be entitled to the return of the Collateral or any portion thereof subject   thereto, notwithstanding the fact that after the Administrative Agent shall have entered into such                                         -17-  

 

    an agreement all Events of Default shall have been remedied and the Secured Obligations paid in   full.  As an alternative to exercising the power of sale herein conferred upon it, the Administra-  tive Agent may proceed by a suit or suits at Law or in equity to foreclose this Agreement and to   sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts  having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver.  Any   sale pursuant to the provisions of this Section 4.01 shall be deemed to conform to the commer- cially reasonable standards as provided in Section 9-610(b) of the UCC or its equivalent in other   jurisdictions.                Each Grantor irrevocably makes, constitutes and appoints the Administrative   Agent (and all officers, employees or agents designated by the Administrative Agent) as such   Grantor’s true and lawful agent (and attorney-in-fact) during the continuance of an Event of De-  fault (provided that the Administrative Agent shall provide the applicable Grantor with notice   thereof prior to, to the extent reasonably practicable, or otherwise promptly after, exercising such   rights), for the purpose of (i) making, settling and adjusting claims in respect of Article 9 Collat-  eral under policies of insurance, endorsing the name of such Grantor on any check, draft, instru-  ment or other item of payment for the proceeds of such policies if insurance, (ii) making all de-  terminations and decisions with respect thereto and (iii) obtaining or maintaining the policies of   insurance required by Section 6.07 of the Credit Agreement or to pay any premium in whole or   in part relating thereto.  All sums disbursed by the Administrative Agent in connection with this   paragraph, including reasonable attorneys’ fees, court costs, expenses and other charges relating   thereto, shall be payable, within 10 days of demand, by the Grantors to the Administrative Agent   and shall be additional Secured Obligations secured hereby.                SECTION 4.02   Application of Proceeds.  The Administrative Agent shall ap-  ply the proceeds of any collection or sale of Collateral, including any Collateral consisting of   cash in accordance with Section 8.03 of the Credit Agreement.                The Administrative Agent shall have absolute discretion as to the time of applica-  tion of any such proceeds, moneys or balances in accordance with this Agreement.  Upon any   sale of Collateral by the Administrative Agent (including pursuant to a power of sale granted by   statute or under a judicial proceeding), the receipt of the Administrative Agent or of the officer   making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so   sold and such purchaser or purchasers shall not be obligated to see to the application of any part   of the purchase money paid over to the Administrative Agent or such officer or be answerable in   any way for the misapplication thereof.                The Administrative Agent shall have no liability to any of the Secured Parties for   actions taken in reliance on information supplied to it as to the amounts of unpaid principal and   interest and other amounts outstanding with respect to the Secured Obligations, provided that   nothing in this sentence shall prevent any Grantor from contesting any amounts claimed by any   Secured Party in any information so supplied.  All distributions made by the Administrative   Agent pursuant to this Section 4.02 shall be (subject to any decree of any court of competent ju-  risdiction) final (absent manifest error).                SECTION 4.03   Grant of License to Use Intellectual Property.  For the exclu-  sive purpose of enabling the Administrative Agent to exercise rights and remedies under this                                         -18-  

 

  Agreement at such time as the Administrative Agent shall be lawfully entitled to exercise such  rights and remedies at any time after and during the continuance of an Event of Default, each  Grantor hereby grants to the Administrative Agent a non-exclusive, royalty-free, limited license  (until the termination or cure of the Event of Default) for cash, upon credit or for future delivery  as the Administrative Agent shall deem appropriate to use, license or sublicense any of the Intel- lectual Property now owned or hereafter acquired by such Grantor, and wherever the same may  be located, and including in such license reasonable access to all media in which any of the li- censed items may be recorded or stored and to all computer software and programs used for the  compilation or printout thereof; provided, however, that all of the foregoing rights of the Admin- istrative Agent to use such licenses, sublicenses and other rights, and (to the extent permitted by  the terms of such licenses and sublicenses) all licenses and sublicenses granted thereunder, shall  expire immediately upon the termination or cure of all Events of Default and shall be exercised  by the Administrative Agent solely during the continuance of an Event of Default and upon 10  Business Days’ prior written notice to the applicable Grantor, and nothing in this Section 4.03  shall require Grantors to grant any license that is prohibited by any rule of law, statute or regula- tion, or is prohibited by, or constitutes a breach or default under or results in the termination of  any contract, license, agreement, instrument or other document evidencing, giving rise to or  theretofore granted, to the extent permitted by the Credit Agreement, with respect to such proper- ty or otherwise unreasonably prejudices the value thereof to the relevant Grantor; provided, fur- ther, that any such license and any such license granted by the Administrative Agent to a third  party shall include reasonable and customary terms and conditions necessary to preserve the ex- istence, validity and value of the affected Intellectual Property, including without limitation, pro- visions requiring the continuing confidential handling of trade secrets, requiring the use of ap- propriate notices and prohibiting the use of false notices, quality control and inurement provi- sions with regard to Trademarks, patent designation provisions with regard to Patents, copyright  notices and restrictions on decompilation and reverse engineering of copyrighted software (it be- ing understood and agreed that, without limiting any other rights and remedies of the Adminis- trative Agent under this Agreement, any other Loan Document or applicable Law, nothing in the  foregoing license grant shall be construed as granting the Administrative Agent rights in and to  such Intellectual Property above and beyond (x) the rights to such Intellectual Property that each  Grantor has reserved for itself and (y) in the case of Intellectual Property that is licensed to any  such Grantor by a third party, the extent to which such Grantor has the right to grant a sublicense  to such Intellectual Property hereunder).  For the avoidance of doubt, the use of such license by  the Administrative Agent may be exercised, at the option of the Administrative Agent, only dur- ing the continuation of an Event of Default.  Upon the occurrence and during the continuance of  an Event of Default, the Administrative Agent may also exercise the rights afforded under Sec- tion 4.01 of this Agreement with respect to Intellectual Property contained in the Article 9 Col- lateral.                                    ARTICLE V                                                                           Subordination               SECTION 5.01   Subordination.               (a)   Notwithstanding any provision of this Agreement to the contrary, all rights  of the Grantors to indemnity, contribution or subrogation under applicable law or otherwise shall                                        -19-  

 

    be fully subordinated to the payment in full in cash of the Secured Obligations.  No failure on the   part of the Borrower or any Grantor to make the payments required under applicable law or oth-  erwise shall in any respect limit the obligations and liabilities of any Grantor with respect to its   obligations hereunder, and each Grantor shall remain liable for the full amount of the obligations   of such Grantor hereunder.                (b)   Each Grantor hereby agrees that upon the occurrence and during the con-  tinuance of an Event of Default and after notice from the Administrative Agent, all Indebtedness   owed to it by any other Grantor shall be fully subordinated to the payment in full in cash of the   Secured Obligations.                                     ARTICLE VI                                                                              Miscellaneous                SECTION 6.01   Notices.  All communications and notices hereunder shall (ex-  cept as otherwise expressly permitted herein) be in writing and given as provided in Section   10.02 of the Credit Agreement.  All communications and notices hereunder to the Borrower or   any other Grantor shall be given to it in care of the Borrower as provided in Section 10.02 of the   Credit Agreement.                SECTION 6.02   Waivers; Amendment.                (a)   No failure or delay by any Secured Party in exercising any right, remedy,   power or privilege hereunder or under any other Loan Document shall operate as a waiver there-  of, nor shall any single or partial exercise of any such right, remedy, power or privilege hereun-  der preclude any other or further exercise thereof or the exercise of any other right, remedy,   power or privilege.  The rights, remedies, powers and privileges of the Secured Parties herein   provided, and provided under each other Loan Document, are cumulative and are not exclusive   of any rights, remedies, powers and privileges provided by Law.  No waiver of any provision of   this Agreement or consent to any departure by any Grantor therefrom shall in any event be effec-  tive unless the same shall be permitted by paragraph (b) of this Section 6.02, and then such   waiver or consent shall be effective only in the specific instance and for the purpose for which   given.  Without limiting the generality of the foregoing, the making of a Loan, the issuance of a  Letter of Credit or the provision of services under Treasury Services Agreements or Secured  Hedge Agreements shall not be construed as a waiver of any Default, regardless of whether any  Secured Party may have had notice or knowledge of such Default at the time.                (b)   Neither this Agreement nor any provision hereof may be waived, amended   or modified except pursuant to an agreement or agreements in writing entered into by the Ad-  ministrative Agent and the Grantor or Grantors with respect to which such waiver, amendment or   modification is to apply, subject to any consent required in accordance with Section 10.01 of the   Credit Agreement.                                          -20-  

 

                SECTION 6.03   Administrative Agent’s Fees and Expenses; Indemnification.                (a)   The parties hereto agree that the Administrative Agent shall be entitled to   reimbursement of its reasonable out-of-pocket expenses incurred hereunder and indemnity for its   actions in connection herewith as provided in Sections 10.04 and 10.05 of the Credit Agreement.               (b)   Any such amounts payable as provided hereunder shall be additional Se- cured Obligations secured hereby and by the other Collateral Documents.  The provisions of this  Section 6.03 shall remain operative and in full force and effect regardless of the termination of  this Agreement or any other Loan Document, the consummation of the transactions contemplat- ed hereby, the repayment of any of the Secured Obligations, the invalidity or unenforceability of  any term or provision of this Agreement or any other Loan Document, or any investigation made  by or on behalf of the Administrative Agent or any other Secured Party.  All amounts due under  this Section 6.03 shall be payable within 30 days of written demand therefor.                SECTION 6.04   Successors and Assigns.  The provisions of this Agreement   shall be binding upon and inure to the benefit of the parties hereto and their respective successors   and assigns.                SECTION 6.05   Survival of Agreement.  All covenants, agreements, representa-  tions and warranties made by the Grantors hereunder and in the other Loan Documents and in the   certificates or other instruments prepared or delivered in connection with or pursuant to this   Agreement shall be considered to have been relied upon by the Secured Parties and shall survive   the execution and delivery of the Loan Documents, the making of any Loans and issuance of any  Letters of Credit and the provision of services under Treasury Services Agreements or Secured  Hedge Agreements, regardless of any investigation made by any Secured Party or on its behalf  and notwithstanding that any Secured Party may have had notice or knowledge of any Default at  the time any credit is extended under the Credit Agreement, and shall continue in full force and  effect as long as this Agreement has not been terminated or released pursuant to Section 6.11 be-  low.                SECTION 6.06   Counterparts; Effectiveness; Several Agreement.  This Agree-  ment may be executed in one or more counterparts, each of which shall be deemed an original,   but all of which together shall constitute one and the same instrument.  Delivery by facsimile or   other electronic communication of an executed counterpart of a signature page to this Agreement   shall be effective as delivery of an original executed counterpart of this Agreement.  This   Agreement shall become effective as to any Grantor when a counterpart hereof executed on be-  half of such Grantor shall have been delivered to the Administrative Agent and a counterpart   hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be   binding upon such Grantor and the Administrative Agent and their respective permitted succes-  sors and assigns, and shall inure to the benefit of such Grantor, the Administrative Agent and the   other Secured Parties and their respective permitted successors and assigns, except that no Gran-  tor shall have the right to assign or transfer its rights or obligations hereunder or any interest   herein or in the Collateral (and any such assignment or transfer shall be void) except as expressly   contemplated by this Agreement or the Credit Agreement.  This Agreement shall be construed as   a separate agreement with respect to each Grantor and may be amended, modified, supplement-                                         -21-  

 

  ed, waived or released with respect to any Grantor without the approval of any other Grantor and  without affecting the obligations of any other Grantor hereunder.               SECTION 6.07   Severability.  If any provision of this Agreement is held to be  illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provi- sions of this Agreement shall not be affected or impaired thereby.  The invalidity of a provision  in a particular jurisdiction shall not invalidate or render unenforceable such provision in any oth- er jurisdiction.               SECTION 6.08   Governing Law; Jurisdiction; Venue; Waiver of Jury Trial;  Consent to Service of Process.               (a)   The terms of Sections 10.15 and 10.16 of the Credit Agreement with re- spect to governing law, submission of jurisdiction, venue and waiver of jury trial are incorpo- rated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.               (b)   Each party to this Agreement irrevocably consents to service of process in  the manner provided for notices in Section 6.01.  Nothing in this Agreement will affect the right  of any party to this Agreement to serve process in any other manner permitted by Law.               SECTION 6.09   Headings.  Article and Section headings and the Table of Con- tents used herein are for convenience of reference only, are not part of this Agreement and are  not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.               SECTION 6.10   Security Interest Absolute.  To the extent permitted by Law, all  rights of the Administrative Agent hereunder, the Security Interest, the grant of a security interest  in the Pledged Collateral and all obligations of each Grantor hereunder shall be absolute and un- conditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any  other Loan Document, any agreement with respect to any of the Secured Obligations or any other  agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or  place of payment of, or in any other term of, all or any of the Secured Obligations, or any other  amendment or waiver of or any consent to any departure from the Credit Agreement, any other  Loan Document or any other agreement or instrument, (c) any exchange, release or non- perfection of any Lien on other collateral, or any release or amendment or waiver of or consent  under or departure from any guarantee, securing or guaranteeing all or any of the Secured Obli- gations or (d) any other circumstance that might otherwise constitute a defense available to, or a  discharge of, any Grantor in respect of the Secured Obligations or this Agreement.               SECTION 6.11   Termination or Release.               (a)   This Agreement, the Security Interest and all other security interests  granted hereby shall terminate with respect to all Secured Obligations and any Liens arising  therefrom shall be automatically released upon termination of the Aggregate Commitments and  payment in full of all Obligations (other than (i) obligations under Treasury Services Agreements  or obligations under Secured Hedge Agreements not yet due and payable and (ii) contingent ob- ligations not yet accrued and payable).                                         -22-  

 

               (b)   A Subsidiary Party shall automatically be released from its obligations  hereunder and the Security Interest in the Collateral of such Subsidiary Party shall be automati- cally released upon the consummation of any transaction permitted by the Credit Agreement as a  result of which such Subsidiary Party ceases to be a Subsidiary of the Borrower or becomes an   Excluded Subsidiary; provided that the Required Lenders shall have consented to such transac-  tion (if and to the extent required by the Credit Agreement) and the terms of such consent did not   provide otherwise.                (c)   Upon any sale or transfer by any Grantor of any Collateral that is permit-  ted under the Credit Agreement (other than a sale or transfer to another Loan Party), or upon the   effectiveness of any written consent to the release of the security interest granted hereby in any   Collateral pursuant to Section 10.01 of the Credit Agreement, the security interest in such Collat-  eral shall be automatically released.                (d)   In connection with any termination or release pursuant to paragraph (a),   (b) or (c) of this Section 6.11, the Administrative Agent shall execute and deliver to any Grantor,   at such Grantor’s expense, all documents that such Grantor shall reasonably request to evidence   such termination or release and shall perform such other actions reasonably requested by such   Grantor to effect such release, including delivery of certificates, securities and instruments.  Any   execution and delivery of documents pursuant to this Section 6.11 shall be without recourse to or   warranty by the Administrative Agent.                SECTION 6.12   Additional Grantors.  Pursuant to Section 6.11 of the Credit   Agreement, certain additional Restricted Subsidiaries of the Grantors may be required to enter in   this Agreement as Grantors.  Upon execution and delivery by the Administrative Agent and a   Restricted Subsidiary of a Security Agreement Supplement, such Restricted Subsidiary shall be-  come a Grantor hereunder with the same force and effect as if originally named as a Grantor   herein.  The execution and delivery of any such instrument shall not require the consent of any   other Grantor hereunder.  The rights and obligations of each Grantor hereunder shall remain in   full force and effect notwithstanding the addition of any new Grantor as a party to this Agree-  ment.                SECTION 6.13   Administrative Agent Appointed Attorney-in-Fact.  Each Gran-  tor hereby appoints the Administrative Agent the attorney-in-fact of such Grantor for the purpose   of carrying out the provisions of this Agreement and taking any action and executing any instru-  ment that the Administrative Agent may deem necessary or advisable to accomplish the purposes   hereof at any time after and during the continuance of an Event of Default, which appointment is   irrevocable and coupled with an interest.  Without limiting the generality of the foregoing, the   Administrative Agent shall have the right, upon the occurrence and during the continuance of an   Event of Default and notice by the Administrative Agent to the applicable Grantor of the Admin-  istrative Agent’s intent to exercise such rights, with full power of substitution either in the Ad-  ministrative Agent’s name or in the name of such Grantor (a) to receive, endorse, assign and/or   deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of pay-  ment relating to the Collateral or any part thereof; (b) to demand, collect, receive payment of,   give receipt for and give discharges and releases of all or any of the Collateral; (c) to sign the   name of any Grantor on any invoice or bill of lading relating to any of the Collateral; (d) to send   verifications of Accounts Receivable to any Account Debtor; (e) to commence and prosecute any                                         -23-  

 

    and all suits, actions or proceedings at Law or in equity in any court of competent jurisdiction to   collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of   any Collateral; (f) to settle, compromise, compound, adjust or defend any actions, suits or pro-  ceedings relating to all or any of the Collateral; (g) to notify, or to require any Grantor to notify,   Account Debtors to make payment directly to the Administrative Agent; and (h) to use, sell, as-  sign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of   the Collateral, and to do all other acts and things necessary to carry out the purposes of this   Agreement, as fully and completely as though the Administrative Agent were the absolute owner  of the Collateral for all purposes; provided that nothing herein contained shall be construed as  requiring or obligating the Administrative Agent to make any commitment or to make any in-  quiry as to the nature or sufficiency of any payment received by the Administrative Agent, or to   present or file any claim or notice, or to take any action with respect to the Collateral or any part   thereof or the moneys due or to become due in respect thereof or any property covered thereby.    The Administrative Agent and the other Secured Parties shall be accountable only for amounts   actually received as a result of the exercise of the powers granted to them herein, and neither   they nor their 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, bad faith, or willful mis-  conduct or that of any of their Affiliates, directors, officers, employees, counsel, agents or attor- neys-in-fact, in each case, as determined by a final non-appealable judgment of a court of com- petent jurisdiction.                SECTION 6.14   General Authority of the Administrative Agent.  By acceptance   of the benefits of this Agreement and any other Collateral Documents, each Secured Party   (whether or not a signatory hereto) shall be deemed irrevocably (a) to consent to the appointment   of the Administrative Agent as its agent hereunder and under such other Collateral Documents,   (b) to confirm that the Administrative Agent shall have the authority to act as the exclusive agent   of such Secured Party for the enforcement of any provisions of this Agreement and such other   Collateral Documents against any Grantor, the exercise of remedies hereunder or thereunder and  the giving or withholding of any consent or approval hereunder or thereunder relating to any  Collateral or any Grantor’s obligations with respect thereto, (c) to agree that it shall not take any  action to enforce any provisions of this Agreement or any other Collateral Document against any  Grantor, to exercise any remedy hereunder or thereunder or to give any consents or approvals  hereunder or thereunder except as expressly provided in this Agreement or any other Collateral   Document and (d) to agree to be bound by the terms of this Agreement and any other Collateral   Documents.                SECTION 6.15   Reasonable Care.  The Administrative Agent is required to use   reasonable care in the custody and preservation of any of the Collateral in its possession; provid- ed, that the Administrative Agent shall be deemed to have used reasonable care in the custody  and preservation of any of the Collateral, if such Collateral is accorded treatment substantially  similar to that which the Administrative Agent accords its own property.                SECTION 6.16   Delegation; Limitation.  The Administrative Agent may exe-  cute any of the powers granted under this Agreement and perform any duty hereunder either di-  rectly or by or through agents or attorneys-in-fact, and shall not be responsible for the gross neg- ligence or willful misconduct of any agents or attorneys-in-fact selected by it with reasonable  care and without gross negligence or willful misconduct.                                         -24-  

 

                SECTION 6.17   Reinstatement.  The obligations of the Grantors under this Se-  curity Agreement shall be automatically reinstated if and to the extent that for any reason any   payment by or on behalf of the Borrower or other Loan Party in respect of the Secured Obliga-  tions is rescinded or must be otherwise restored by any holder of any of the Secured Obligations,   whether as a result of any proceedings in bankruptcy or reorganization or otherwise.                SECTION 6.18   Miscellaneous.  The Administrative Agent shall not be deemed   to have actual, constructive, direct or indirect notice or knowledge of the occurrence of any   Event of Default unless and until the Administrative Agent shall have received a notice of Event   of Default or a notice from the Grantor or the Secured Parties to the Administrative Agent in its   capacity as Administrative Agent indicating that an Event of Default has occurred.                SECTION 6.19   Intercreditor Agreement.  Notwithstanding any other provision   contained herein, this Agreement, the Liens created hereby and the rights, remedies, duties and   obligations provided for herein are subject in all respects to the provisions of the Closing Date   Intercreditor Agreement.  In the event of any conflict or inconsistency between the provisions of  this Agreement and the Closing Date Intercreditor Agreement, the provisions of the Closing Date  Intercreditor Agreement shall control.  Notwithstanding anything herein to the contrary, require-  ments of this Agreement to deliver or grant control (to the extent that only one person can have   control of such Collateral) with respect to Collateral to the Administrative Agent shall be deemed   satisfied by delivery of such Collateral or grant of control with respect to Collateral to a Bailee   Administrative Agent (as defined in the Closing Date Intercreditor Agreement) as required pur-  suant to Section 4.01 of the Closing Date Intercreditor Agreement.                                                [Signature Pages Follow]                                             -25-  

 

               IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement  as of the day and year first above written.                                       APX HOLDINGS, INC.                                        By: /s/ Dale R. Gerard                                                                Name: Dale R. Gerard                                            Title: Senior Vice President of Finance &                                           Treasurer                                        APX GROUP, INC.                                        By: /s/ Dale R. Gerard                                                                Name: Dale R. Gerard                                            Title: Senior Vice President of Finance &                                           Treasurer                                        VIVINT, INC.                                       SMART HOME PROS. INC.                                       313 AVIATION, LLC                                       AP AL LLC                                       VIVINT WIRELESS, INC.                                       FARMINGTON IP LLC                                       IPR LLC                                       SMARTROVE INC.                                       SPACE MONKEY LLC                                       VIVINT FIREWILD, LLC                                       VIVINT PURCHASING, LLC                                       VIVINT GROUP, INC.                                       VIVINT LOUISIANA LLC                                        By: /s/ Dale R. Gerard                                                                Name: Dale R. Gerard                                            Title: Senior Vice President of Finance &                                           Treasurer                                          S-1  

 

               BANK OF AMERICA, N.A., as Administrative     Agent     By: /s/ Don B. Pinzon                            Name: Don B. Pinzon       Title: Vice President      S-2  

 

                                                                           SCHEDULE I                            Subsidiary Parties   1.    Vivint, Inc.    2.    Smart Home Pros, Inc.   3.    Vivint Purchasing, LLC   4.    AP AL LLC   5.    313 Aviation, LLC   6.    Vivint Wireless, Inc.   7.    Farmington IP LLC   8.    IPR LLC   9.    Smartrove Inc.   10.   Space Monkey, LLC   11.   Vivint FireWild, LLC   12.   Vivint Group, Inc.   13.   Vivint Louisiana LLC   14.   APX Group Holdings, Inc.                   

 

                                                                   SCHEDULE II                                   Pledged Equity         Pledgor              Issuer        Shares/ Ownership Inter-   Certificate                                                  est Pledged          Number                                                        APX Group Holdings, APX Group, Inc.      100 common shares        1  Inc.                                                                       Vivint Group, Inc.  Vivint, Inc.         100 common shares        Certificated1                                             APX Group, Inc.     Vivint Wireless, Inc. 9,000                   C-1                                                                      Vivint, Inc.        Smart Home Pros, Inc. 1,000 common shares                                                                    2                                           (100% owner)  Vivint, Inc.        Vivint Purchasing,                      LLC                  100% owner               N/A                        Vivint, Inc.        AP AL LLC            100% owner               N/A   Vivint Group, Inc.  313 Aviation, LLC    100% owner               N/A   Vivint Group, Inc.  Vivint Wireless, Inc. 850,000 shares          Uncertificated   IPR LLC             Farmington IP LLC    100% owner               N/A   AP AL LLC           IPR LLC              100% owner               N/A   Ramsesh Kalkunte    Smartrove Inc.       428.6                    2                                              Venkat Kalkunte                          571.4                    1                                                                                      (1,000 combined shares)  Vivint Group, Inc.  Space Monkey, LLC    100% owner               N/A   Vivint Wireless, Inc. Vivint FireWild, LLC 100% owner             N/A   APX Group, Inc.     Vivint Group, Inc.   1,065,857,126 shares     2   Vivint, Inc.        Vivint Louisiana LLC 100% owner               N/A                                   1 Certificate to be updated to reflect the current owners as described in Schedule 6.16 of the Credit Agreement.       

 

                                       Pledged Debt   1.  the Intercompany Note, dated as of November 16, 2012, among APX Group Holdings, Inc.,  313 Group, Inc. (which merged with and into APX Group, Inc.), the other guarantors party there- to from time to time, and Bank of America, N.A., as Administrative Agent, Swing Line Lender  and L/C Lender.      

 

                                                                      SCHEDULE III                                Commercial Tort Claims   None.        

 

                                                                      Exhibit I to the                                                                 Security Agreement                 SUPPLEMENT NO. ___ dated as of [●] (the “Supplement”), to the Security  Agreement (the “Security Agreement”), dated as of September [   ], 2018, among the Grantors  identified therein and Bank of America, N.A., as Administrative Agent.               A.    Reference is made to that certain Credit Agreement dated as of September  [   ], 2018 (as amended, restated, extended, supplemented or otherwise modified in writing from  time to time, the “Credit Agreement”), among APX Group, Inc., a Delaware corporation, (the  “Borrower”), APX Group Holdings, Inc., a Delaware corporation (“Holdings”), the other  Guarantors party thereto from time to time, each Lender from time to time party thereto  (collectively, the “Lenders” and individually, a “Lender”), Bank of America, N.A., as  Administrative Agent, and the other agents named therein.               B.    Capitalized terms used herein and not otherwise defined herein shall have  the meanings assigned to such terms in the Credit Agreement and the Security Agreement.               C.    The Grantors have entered into the Security Agreement in order to induce  the Lenders to make Loans.  Section 6.12 of the Security Agreement provides that additional  Restricted Subsidiaries of the Borrower may become Grantors under the Security Agreement by  execution and delivery of an instrument in the form of this Supplement.  The undersigned (the  “New Grantor”) is executing this Supplement in accordance with the requirements of the Credit  Agreement to become a Grantor under the Security Agreement in order to induce the Lenders to  make additional Loans and as consideration for Loans previously made.               Accordingly, the Administrative Agent and the New Grantor agree as follows:               SECTION 1.  In accordance with Section 6.12 of the Security Agreement, the  New Grantor by its signature below becomes a Grantor under the Security Agreement with the  same force and effect as if originally named therein as a Grantor and the New Grantor hereby (a)  agrees to all the terms and provisions of the Security Agreement applicable to it as a Grantor  thereunder and (b) represents and warrants that the representations and warranties made by it as a  Grantor thereunder are true and correct on and as of the date hereof.  In furtherance of the  foregoing, the New Grantor, as security for the payment and performance in full of the Secured  Obligations, does hereby create and grant to the Administrative Agent, its successors and  assigns, for the benefit of the Secured Parties, their successors and assigns, a security interest in  and lien on all of the New Grantor’s right, title and interest in and to the Collateral (as defined in  the Security Agreement) of the New Grantor.  Each reference to a “Grantor” in the Security  Agreement shall be deemed to include the New Grantor.  The Security Agreement is hereby  incorporated herein by reference.               SECTION 2.  The New Grantor represents and warrants to the Administrative  Agent and the other Secured Parties that this Supplement has been duly authorized, executed and  delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in                                           2  

 

   accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws  and by general principles of equity.               SECTION 3.  This Supplement may be executed in counterparts (and by different  parties hereto on different counterparts), each of which shall constitute an original, but all of  which when taken together shall constitute a single contract.  This Supplement shall become  effective when the Administrative Agent shall have received a counterpart of this Supplement  that bears the signature of the New Grantor and the Administrative Agent has executed a  counterpart hereof.  Delivery of an executed signature page to this Supplement by facsimile  transmission or other electronic communication shall be as effective as delivery of a manually  signed counterpart of this Supplement.               SECTION 4.  The New Grantor hereby represents and warrants that (a) set forth  on Schedule I attached hereto is a true and correct schedule of the information required by  Schedules II and III to the Security Agreement applicable to it and (b) set forth under its  signature hereto is the true and correct legal name of the New Grantor, its jurisdiction of  formation and the location of its chief executive office.               SECTION 5.  Except as expressly supplemented hereby, the Security Agreement  shall remain in full force and effect.               SECTION 6.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.               SECTION 7.  If any provision of this Supplement is held to be illegal, invalid or  unenforceable, the legality, validity and enforceability of the remaining provisions of this  Supplement shall not be affected or impaired thereby.  The invalidity of a provision in a  particular jurisdiction shall not invalidate or render unenforceable such provision in any other  jurisdiction.                SECTION 8.  All communications and notices hereunder shall be in writing and  given as provided in Section 6.01 of the Security Agreement.               SECTION 9.  The New Grantor agrees to reimburse the Administrative Agent for  its reasonable out-of-pocket expenses in connection with the execution and delivery of this  Supplement, including the reasonable fees, other charges and disbursements of counsel for the  Administrative Agent.                               [Signature pages follow.]                                          3  

 

               IN WITNESS WHEREOF, the New Grantor and the Administrative Agent have  duly executed this Supplement to the Security Agreement as of the day and year first above  written.                                       [NAME OF NEW GRANTOR]                                                                             By:                                                                       Name:                                                                     Title:                                                                     Legal Name:                                      Jurisdiction of Formation:                                      Location of Chief Executive office:                             [Signature Page – Security Agreement Supplement]  

 

                           BANK OF AMERICA, N.A.,             as Administrative Agent                           By:                                              Name:                                            Title:                                                                [Signature Page – Security Agreement Supplement]  

 

                                                                                                                                                      Schedule I                                                       to the Supplement No __ to the                                                               Security Agreement                      PLEDGED EQUITY AND PLEDGED DEBT                                           1.  Pledged Equity:      Current Legal Entities     Record Owner       Certificate    No. Shares           Owned                                      No.                                                      (to the                                                     extent                                                   certificated)                                                                            2.  Pledged Debt:   [List]        

 

                                                                           Schedule I                                                       to the Supplement No __ to the                                                               Security Agreement                           COMMERCIAL TORT CLAIMS                                             [List]                                          2  

 

                                                                                                             Exhibit II to the                                      Security Agreement                                PERFECTION CERTIFICATE                         [Attached]                3  

 

                                                                     Exhibit III to the                                                                Security Agreement                                                                               FORM OF                 PATENT SECURITY AGREEMENT (SHORT FORM)                                                                  PATENT SECURITY AGREEMENT    THIS PATENT SECURITY AGREEMENT IS SUBJECT TO THE PROVISIONS OF THE  INTERCREDITOR AGREEMENT, DATED AS OF NOVEMBER 16, 2012 (AS  AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME  TO TIME), AMONG APX GROUP, INC., THE GRANTORS PARTY THERETO, BANK  OF AMERICA, N.A., AS CREDIT AGREEMENT COLLATERAL AGENT (AS DEFINED  THEREIN), AND WILMINGTON TRUST, NATIONAL ASSOCIATION,  AS NOTES COLLATERAL AGENT (AS DEFINED THEREIN), AND EACH   ADDITIONAL COLLATERAL AGENT (AS DEFINED THEREIN) FROM TIME TO TIME   PARTY THERETO.                  Patent Security Agreement, dated as of [             ], by [        ] and [_________]   (individually, a “Grantor”, and, collectively, the “Grantors”), in favor of BANK OF   AMERICA, N.A., in its capacity as administrative agent pursuant to the Credit Agreement (in   such capacity, the “Administrative Agent”).                                  W I T N E S S E T H:          WHEREAS, the Grantors are party to a Security Agreement dated as of September [   ],  2018 (as amended, amended and restated, supplemented or otherwise modified from time to  time, the “Security Agreement”) and related Intellectual Property Security Agreements (as  defined therein) in favor of the Administrative Agent pursuant to which the Grantors are required  to execute and deliver this Patent Security Agreement;        NOW, THEREFORE, in consideration of the premises and to induce the Administrative   Agent, for the benefit of the Secured Parties, to enter into the Credit Agreement, the Grantors   hereby agree with the Administrative Agent as follows:         SECTION 1.  Defined Terms.  Unless otherwise defined herein, terms defined in the   Security Agreement and used herein have the meaning given to them in the Security Agreement.         SECTION 2.  Grant of Security Interest in Patent Collateral.  Each Grantor hereby   pledges and grants to the Administrative Agent for the benefit of the Secured Parties a lien on  and security interest in and to all of its right, title and interest in, to and under all the following  Collateral (excluding any Excluded Assets) of such Grantor:         (a)  Patents of such Grantor listed on Schedule I attached hereto.         SECTION 3.  The Security Agreement.  The security interest granted pursuant to this   Patent Security Agreement is granted in conjunction with the security interest granted to the   Administrative Agent pursuant to the Security Agreement and Grantors hereby acknowledge and       

 

     affirm that the rights and remedies of the Administrative Agent with respect to the security   interest in the Patents made and granted hereby are more fully set forth in the Security   Agreement.  In the event that any provision of this Patent Security Agreement is deemed to   conflict with the Security Agreement, the provisions of the Security Agreement shall control   unless the Administrative Agent shall otherwise determine.         SECTION 4.  Termination.  Upon the termination of the Security Agreement in   accordance with Section 6.13 thereof, the Administrative Agent shall, at the expense of such  Grantor, execute, acknowledge, and deliver to the Grantors an instrument in writing in  recordable form releasing the lien on and security interest in the Patents under this Patent  Security Agreement.         SECTION 5.  Counterparts.  This Patent Security Agreement may be executed in any   number of counterparts, all of which shall constitute one and the same instrument, and any party   hereto may execute this Patent Security Agreement by signing and delivering one or more   counterparts.                                  [Signature pages follow.]       

 

                     [GRANTOR]        By:                                               Name:             Title:     [Patent Security Agreement]  

 

                     BANK OF AMERICA, N.A.,       as Administrative Agent        By:                                               Name:             Title:     [Patent Security Agreement]  

 

                                                                                                                     Schedule I                                         to                         PATENT SECURITY AGREEMENT              PATENT REGISTRATIONS AND PATENT APPLICATIONS                                                                                     Patents:                   REGISTRATION      OWNER          NUMBER                   DESCRIPTION                                         Patent Applications:                   APPLICATION      OWNER          NUMBER                  DESCRIPTION                                                                                        

 

                                                                                                                                                   Exhibit IV to the                                                                Security Agreement                                      FORM OF               TRADEMARK SECURITY AGREEMENT (SHORT FORM)                                                                TRADEMARK SECURITY AGREEMENT    THIS TRADEMARK SECURITY AGREEMENT IS SUBJECT TO THE PROVISIONS OF   THE INTERCREDITOR AGREEMENT, DATED AS OF NOVEMBER 16, 2012 (AS   AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME   TO TIME), AMONG APX GROUP, INC., THE GRANTORS PARTY THERETO, BANK   OF AMERICA, N.A., AS CREDIT AGREEMENT COLLATERAL AGENT (AS DEFINED   THEREIN), AND WILMINGTON TRUST, NATIONAL ASSOCIATION,   AS NOTES COLLATERAL AGENT (AS DEFINED THEREIN), AND EACH   ADDITIONAL COLLATERAL AGENT (AS DEFINED THEREIN) FROM TIME TO TIME   PARTY THERETO.            Trademark Security Agreement, dated as of [                    ], by [        ] and [_________]   (individually, a “Grantor”, and, collectively, the “Grantors”), in favor of BANK OF   AMERICA, N.A., in its capacity as administrative agent pursuant to the Credit Agreement (in   such capacity, the “Administrative Agent”).                                  W I T N E S S E T H:          WHEREAS, the Grantors are party to a Security Agreement dated as of September [   ],  2018 (as amended, amended and restated, supplemented or otherwise modified from time to  time, the “Security Agreement”) and related Intellectual Property Security Agreements (as  defined therein) in favor of the Administrative Agent pursuant to which the Grantors are required  to execute and deliver this Trademark Security Agreement;        NOW, THEREFORE, in consideration of the premises and to induce the Administrative   Agent, for the benefit of the Secured Parties, to enter into the Credit Agreement, the Grantors   hereby agree with the Administrative Agent as follows:         SECTION 1.  Defined Terms.  Unless otherwise defined herein, terms defined in the   Security Agreement and used herein have the meaning given to them in the Security Agreement.         SECTION 2.  Grant of Security Interest in Trademark Collateral.  Each Grantor hereby   pledges and grants to the Administrative Agent for the benefit of the Secured Parties a lien on   and security interest in and to all of its right, title and interest in, to and under all the following   Collateral (excluding any Excluded Assets) of such Grantor:         (a)  registered Trademarks of such Grantor listed on Schedule I attached hereto.         SECTION 3.  The Security Agreement.  The security interest granted pursuant to this   Trademark Security Agreement is granted in conjunction with the security interest granted to the   Administrative Agent pursuant to the Security Agreement and Grantors hereby acknowledge and   affirm that the rights and remedies of the Administrative Agent with respect to the security                                                

 

   interest in the Trademarks made and granted hereby are more fully set forth in the Security  Agreement.  In the event that any provision of this Trademark Security Agreement is deemed to  conflict with the Security Agreement, the provisions of the Security Agreement shall control  unless the Administrative Agent shall otherwise determine.        SECTION 4.  Termination.  Upon the termination of the Security Agreement in  accordance with Section 6.13 thereof, the Administrative Agent shall, at the expense of such  Grantor, execute, acknowledge, and deliver to the Grantors an instrument in writing in  recordable form releasing the lien on and security interest in the Trademarks under this  Trademark Security Agreement.        SECTION 5.  Counterparts.  This Trademark Security Agreement may be executed in  any number of counterparts, all of which shall constitute one and the same instrument, and any  party hereto may execute this Trademark Security Agreement by signing and delivering one or  more counterparts.                               [Signature pages follow.]                                          2  

 

                      [GRANTOR]         By:                                                Name:              Title:     [Trademark Security Agreement]  

 

                      BANK OF AMERICA, N.A.,        as Administrative Agent         By:                                                Name:              Title:                             [Trademark Security Agreement]  

 

                                     Schedule I                    Trademark Registrations and Use Applications   Registrations:                 REGISTRATION     OWNER          NUMBER                   TRADEMARK                                     Applications:                   APPLICATION      OWNER           NUMBER                  TRADEMARK                                                                                   

 

                                                                                                                                                    Exhibit V to the                                                                Security Agreement                                                                               FORM OF               COPYRIGHT SECURITY AGREEMENT (SHORT FORM)                                                                 COPYRIGHT SECURITY AGREEMENT    THIS COPYRIGHT SECURITY AGREEMENT IS SUBJECT TO THE PROVISIONS OF  THE INTERCREDITOR AGREEMENT, DATED AS OF NOVEMBER 16, 2012 (AS  AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME   TO TIME), AMONG APX GROUP, INC., THE GRANTORS PARTY THERETO, BANK   OF AMERICA, N.A., AS CREDIT AGREEMENT COLLATERAL AGENT (AS DEFINED   THEREIN), AND WILMINGTON TRUST, NATIONAL ASSOCIATION,   AS NOTES COLLATERAL AGENT (AS DEFINED THEREIN), AND EACH   ADDITIONAL COLLATERAL AGENT (AS DEFINED THEREIN) FROM TIME TO TIME   PARTY THERETO.            Copyright Security Agreement, dated as of [                    ], by [        ] and [_________]   (individually, a “Grantor”, and, collectively, the “Grantors”), in favor of BANK OF   AMERICA, N.A., in its capacity as administrative agent pursuant to the Credit Agreement (in   such capacity, the “Administrative Agent”).                                  W I T N E S S E T H:          WHEREAS, the Grantors are party to a Security Agreement dated as of September [   ],  2018 (as amended, amended and restated, supplemented or otherwise modified from time to  time, the “Security Agreement”) and related Intellectual Property Security Agreements (as  defined therein) in favor of the Administrative Agent pursuant to which the Grantors are required  to execute and deliver this Copyright Security Agreement;        NOW, THEREFORE, in consideration of the premises and to induce the Administrative   Agent, for the benefit of the Secured Parties, to enter into the Credit Agreement, the Grantors   hereby agree with the Administrative Agent as follows:         SECTION 1.  Defined Terms.  Unless otherwise defined herein, terms defined in the   Security Agreement and used herein have the meaning given to them in the Security Agreement.         SECTION 2.  Grant of Security Interest in Copyright Collateral.  Each Grantor hereby   pledges and grants to the Administrative Agent for the benefit of the Secured Parties a lien on   and security interest in and to all of its right, title and interest in, to and under all the following   Collateral (excluding any Excluded Assets) of such Grantor:         (a)  registered Copyrights of such Grantor listed on Schedule I attached hereto.         SECTION 3.  The Security Agreement.  The security interest granted pursuant to this   Copyright Security Agreement is granted in conjunction with the security interest granted to the   Administrative Agent pursuant to the Security Agreement and Grantors hereby acknowledge and       

 

   affirm that the rights and remedies of the Administrative Agent with respect to the security  interest in the Copyrights made and granted hereby are more fully set forth in the Security  Agreement.  In the event that any provision of this Copyright Security Agreement is deemed to  conflict with the Security Agreement, the provisions of the Security Agreement shall control  unless the Administrative Agent shall otherwise determine.        SECTION 4.  Termination.  Upon termination of the Security Agreement in accordance  with Section 6.13 thereof, the Administrative Agent shall, at the expense of such Grantor,  execute, acknowledge, and deliver to the Grantors an instrument in writing in recordable form  releasing the lien on and security interest in the Copyrights under this Copyright Security  Agreement.        SECTION 5.  Counterparts.  This Copyright Security Agreement may be executed in any  number of counterparts, all of which shall constitute one and the same instrument, and any party  hereto may execute this Copyright Security Agreement by signing and delivering one or more  counterparts.                                                                       [Signature pages follow.]      

 

                                    [GRANTOR]         By:                                                Name:              Title:     [Copyright Security Agreement]  

 

                                        BANK OF AMERICA, N.A.,            as Administrative Agent         By:                                                Name:              Title:                 [Copyright Security Agreement]  

 

                                             Schedule I                         Copyright Registrations                                                                                                                       REGISTRATION  OWNER                   TITLE                        NUMBER                                                                                                                                                                                                               S-1exhibit103vivintjoindert

                                                                     Exhibit 10.3                                                                                                                                                Execution Version                                                                                        COLLATERAL AGENT JOINDER AGREEMENT NO. 1, dated as of September 6,  2018 (this “Joinder Agreement”) to the INTERCREDITOR AND COLLATERAL AGENCY  AGREEMENT dated as of November 16, 2012 (the “Intercreditor Agreement”), among APX  GROUP, INC., a Delaware corporation (the “Borrower”), GRANTORS party thereto, BANK OF  AMERICA, N.A., as the Credit Agreement Collateral Agent, WILMINGTON TRUST,  NATIONAL ASSOCIATION, as Notes Collateral Agent, and each ADDITIONAL  COLLATERAL AGENT from time to time party thereto.               A.    Capitalized terms used herein but not otherwise defined herein shall have  the meanings assigned to such terms in the Intercreditor Agreement.               B.    The Borrower proposes to issue or incur Additional First Lien Obligations  and the Person identified in the signature pages hereto as the “Additional Collateral Agent” (the  “Additional Collateral Agent”) will serve as the collateral agent, collateral trustee or a similar  representative for the Additional Secured Parties.  The Additional First Lien Obligations are be- ing designated as such by the Borrower in accordance with Article VII of the Intercreditor  Agreement.               C.    The Additional Collateral Agent wishes to become a party to the Inter- creditor Agreement and to acquire and undertake, for itself and on behalf of the Additional Se- cured Parties, the rights and obligations of an “Additional Collateral Agent” thereunder.  The  Additional Collateral Agent is entering into this Joinder Agreement in accordance with the provi- sions of the Intercreditor Agreement in order to become an Additional Collateral Agent thereun- der.               Accordingly, the Additional Collateral Agent and the Borrower agree as follows,  for the benefit of the Additional Collateral Agent, the Borrower and each other party to the Inter- creditor Agreement:               SECTION 1.  Accession to the Intercreditor Agreement.  The Additional Collat- eral Agent (a) hereby accedes and becomes a party to the Intercreditor Agreement as an Addi- tional Collateral Agent for the Additional Secured Parties from time to time in respect of the Ad- ditional First Lien Obligations, (b) agrees, for itself and on behalf of the Additional Secured Par- ties from time to time in respect of the Additional First Lien Obligations, to all the terms and  provisions of the Intercreditor Agreement and (c) shall have all the rights and obligations of an  Additional Collateral Agent under the Intercreditor Agreement.               SECTION 2.  Counterparts.  This Joinder Agreement may be executed in multiple  counterparts, each of which shall constitute an original, but all of which when taken together  shall constitute a single contract.  This Joinder Agreement shall become effective when each  Collateral Agent shall have received a counterpart of this Joinder Agreement that bears the signa- ture of the Additional Collateral Agent.  Delivery of an executed signature page to this Joinder  Agreement by facsimile or other electronic transmission shall be effective as delivery of a manu- ally signed counterpart of this Joinder Agreement.  

 

             SECTION 3.  Benefit of Agreement.  The agreements set forth herein or un-  dertaken pursuant hereto are for the benefit of, and may be enforced by, any party to the   Intercreditor Agreement.                SECTION 4.  Governing Law.  THIS JOINDER AGREEMENT SHALL BE   GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE   STATE OF NEW YORK.                SECTION 5.  Severability.  In case any one or more of the provisions contained   in this Joinder Agreement should be held invalid, illegal or unenforceable in any respect, none of   the parties hereto shall be required to comply with such provision for so long as such provision is   held to be invalid, illegal or unenforceable, but the validity, legality and enforceability of the re-  maining provisions contained herein and in the Intercreditor Agreement shall not in any way be   affected or impaired.  The parties hereto shall endeavor in good-faith negotiations to replace the   invalid, illegal or unenforceable provisions with valid provisions the economic effect of which   comes as close as possible to that of the invalid, illegal or unenforceable provisions.                SECTION 6.  Notices.  All communications and notices hereunder shall be in   writing and given as provided in Section 9.01 of the Intercreditor Agreement.  All communica- tions and notices hereunder to the Additional Collateral Agent shall be given to it at the address  set forth under its signature hereto, which information supplements Section 9.01 of the Intercred- itor Agreement.                SECTION 7.  Expense Reimbursement.  The Borrower agrees to reimburse each   Collateral Agent for its reasonable and invoiced out-of-pocket expenses in connection with this  Joinder Agreement, including the reasonable and invoiced fees, other charges and disbursements  of counsel for each Collateral Agent.  

 

            IN WITNESS WHEREOF, the Additional Collateral Agent and the Borrower  have duly executed this Joinder Agreement to the Intercreditor Agreement as of the day and year  first above written.                                             BANK OF AMERICA N.A., as                                            ADDITIONAL COLLATERAL AGENT                                            for the ADDITIONAL SECURED                                            PARTIES                                             By:  /s/ Don B. Pinzon                                                      Name: Don B. Pinzon                                            Title: Vice President                                             Address for notices:                                                                                                                                                                                                       attention of:                                                                Telecopy:                                                                    APX GROUP, INC.                                             By:  /s/ Dale R. Gerard                                                     Name: Dale R. Gerard                                            Title: Senior Vice President of Finance &                                            Treasurer  

 

Acknowledged by:   BANK OF AMERICA, N.A.,  as Credit Agreement Collateral Agent   By:  /s/ Don B. Pinzon                Name: Don B. Pinzon     Title: Vice President   WILMINGTON TRUST, NATIONAL ASSOCIATION,  as Notes Collateral Agent   By:  /s/ Sarah Vilhauer               Name: Sarah Vilhauer     Title: Banking Officer

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