Document:

exv10w2

Exhibit 10.2

SUPERVISORY AGREEMENT

     This Supervisory Agreement (Agreement) is made this 27th day of January, 2010
(Effective Date), by and through the Board of Directors (Board) of Flagstar Bancorp, Inc., Troy,
Michigan, OTS Docket No. H2224 (Holding Company) and the Office of Thrift Supervision (OTS), acting
by and through its Regional Director for the Central Region (Regional Director).

     WHEREAS, the Holding Company is subject to examination, regulation and supervision by the
OTS; and

     WHEREAS, based on its August 3, 2009 examination of the Holding Company, the OTS finds that
the Holding Company has engaged in unsafe or unsound practices in conducting its consolidated
operations; and

     WHEREAS, in furtherance of their common goal to ensure that the Holding Company addresses
the unsafe or unsound practices identified by the OTS, the Holding Company and the OTS have
mutually agreed to enter into this Agreement.

     NOW THEREFORE, in consideration of the above premises, it is agreed as follows:
Capital Plan. 

	1.	 	(a) Within forty-five (45) days, the Holding Company shall submit to the Regional Director an
acceptable written plan for enhancing the consolidated capital and earnings of the Holding
Company (Capital Plan). The Capital Plan shall cover the period beginning with the quarter
starting January 1, 2010 through the quarter ending December 31, 2011. At a minimum, the
Capital Plan shall include:

	 	 	 	(i) establishment of a minimum tangible capital ratio of tangible equity
capital to total tangible assets commensurate with the Holding Company’s
consolidated risk profile;

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	 	 	 	(ii) specific plans to ensure conformance with the Business Plan of the Holding
Company’s wholly-owned savings association subsidiary, Flagstar Bank, FSB, Troy,
Michigan, OTS Docket No. 08412 (Association), including capital levels projected
by the Association;
	 
	 	 	 	(iii) operating strategies to achieve net income levels that will result in
profitability and adequate debt service throughout the term of the Capital Plan;
	 
	 	 	 	(iv) quarterly cash flow projections for the Holding Company on a stand alone
basis from the quarter starting January 1, 2010 through the quarter ending
December 31, 2011 that identify both the sources of funds and the expected uses of
funds without reliance on dividends from the Association;
	 
	 	 	 	(v) detailed, quarterly pro forma Holding Company balance sheets and income
statements, including both consolidated and consolidating entries, for the period
beginning January 1, 2010 through the quarter ending
December 31, 2011 that reflect maintenance throughout the period of the Board
established minimum tangible equity capital ratio;
	 
	 	 	 	(vi) detailed scenarios to stress-test the consolidated minimum capital targets
based on continuing operating results, economic conditions and risk profile of
consolidated assets; and
	 
	 	 	 	(vii) detailed descriptions of all relevant assumptions and projections and the
supporting documentation for all relevant assumptions and projections.

	 	 	(b) Within thirty (30) days after receiving any written comments from the Regional
Director, the Holding Company shall revise the Capital Plan based on such comments and the
Board shall adopt the Capital Plan. The Capital Plan shall be incorporated

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	 	 	herein by reference and become a part of this Agreement and any material
deviation1 of the adopted Capital Plan shall be a violation of this Agreement. A
copy of the Capital Plan shall be provided to the Regional Director within five (5) days
after Board approval.

	 	 	(c) Once the Capital Plan is implemented, the Holding Company shall operate within the
parameters of its Capital Plan. Any proposed material deviations from or changes to the
Capital Plan shall be submitted for the prior, written non-objection of the Regional
Director. Requests for any material deviations or changes must be submitted at least
forty-five (45) days before a proposed deviation or change is implemented.

	 	 	(d) The Holding Company shall notify the Regional Director regarding any material event
affecting or that may affect the consolidated balance sheet, capital, or the cash flow of
the Holding Company within five (5) days after such event.

	2.	 	(a) On a quarterly basis, beginning with the quarter ending March 31, 2010, the Board shall
review a written report that compares projected operating results contained within the Capital
Plan to actual results (Capital Plan Variance Report). The Board shall review each Capital
Plan Variance Report and address external and internal risks that may affect the Holding
Company’s ability to successfully implement the Capital Plan. This review shall include, but
not be limited to, adverse scenarios relating to asset or liability mixes, interest rates,
staffing levels and expertise, operating expenses, marketing costs, and economic conditions in
the markets where the Holding Company is operating. The Board shall discuss and approve
corrective actions, if needed, to ensure the Holding

 

			
	1	 	A deviation shall be considered material
under this Paragraph of the Agreement if the Holding Company plans to: (a)
engage in any activity that is inconsistent with the Business Plan; or (b)
exceed the level of any activity contemplated in the Business Plan or fail to
meet target amounts established in the Business Plan by more than ten percent
(10%), unless the activity involves assets risk-weighted fifty percent (50%) or
less, in which case a variance of more than twenty-five percent (25%) shall be
deemed to be a material deviation.

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	 	 	Company’s adherence to its Capital Plan. The Board’s review of each Capital Plan Variance
Report and assessment of the Holding Company’s compliance with the Capital Plan shall be
fully documented in the appropriate Board meeting minutes.

	 	 	(b) Within sixty (60) days after the close of each quarter beginning with the quarter
ending March 31, 2010, the Board shall provide the Regional Director with a copy of each
Capital Plan Variance Report.

Dividends. 

3. Effective immediately, the Holding Company shall not declare, make, or pay any cash dividends or
other capital distributions, as that term is defined in 12 C.F.R. § 563.141, or purchase,
repurchase or redeem or commit to purchase, repurchase, or redeem any Holding Company equity stock
without the prior written non-objection of the Regional Director. The Holding Company shall submit
its written request for non-objection to the Regional Director at least forty-five (45) days prior
to the anticipated date of the proposed dividend, capital distribution, or stock transaction. The
written request for such notice of non-objection shall: (a) contain current and pro forma
projections regarding the Holding Company’s capital, asset quality, and earnings; and (b) address
compliance with the Capital Plan required by Paragraph 1 of this Agreement.

Debt Restrictions. 

4. Effective immediately, the Holding Company shall not, directly or indirectly, incur, issue,
renew, roll over, or increase any debt or commit to do so without the prior written non-objection
of the Regional Director. The Holding Company shall submit its written request for non- objection
to the Regional Director at least forty-five (45) days prior to the anticipated date of the
proposed debt transaction. The Holding Company’s written requests for Regional Director non-

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objection to engage in such debt transactions, at a minimum, shall: (a) describe the purpose of the
proposed debt; (b) set forth and analyze the terms of the proposed debt and covenants; (c) analyze
the Holding Company’s current cash flow resources available to satisfy such debt repayment; and (d)
set forth the anticipated source(s) of repayment of the proposed debt. For purposes of this
Paragraph of the Agreement, the term “debt” includes, but is not limited to, loans, bonds,
cumulative preferred stock, hybrid capital instruments such as subordinated debt or trust preferred
securities, and guarantees of debt. For purposes of this Paragraph of the Agreement, the term
“debt” does not include liabilities incurred in the ordinary course of business to acquire goods
and services and that are normally recorded as accounts payable under generally accepted accounting
principles.

Affiliate Transactions. 

5. Effective immediately, the Holding Company shall not engage in transactions with any subsidiary
or affiliate without the prior written non-objection of the Regional Director, except: (a) exempt
transactions under 12 C.F.R. Part 223; and (b) intercompany cost-sharing transactions identified in
executed written agreements between the parties. The Holding Company shall provide thirty (30) days
advance written notice to the Regional Director of any proposed affiliate transaction, include in
the written notice a full description of the transaction, and ensure that the transaction complies
with the requirements of 12 C.F.R. § 563.41 and Regulation W, 12 C.F.R. Part 223.

Severance and Indemnification Payments. 

6. Effective immediately, the Holding Company shall not make any golden parachute
payment2 or any prohibited indemnification payment3 unless, with respect to
each such payment,

 

			
	2	 	The term “golden parachute payment” is
defined at 12 C.F.R. § 359.1(f).
	 
	3	 	The term “prohibited indemnification payment”
is defined at 12 C.F.R. § 359.1(1).

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the Holding Company has complied with the requirements of 12 CFR Part 359.

Directorate and Management Changes. 

7. Effective immediately, the Holding Company shall comply with the prior notification requirements
for changes in directors and Senior Executive Officers4 set forth in 12 C.F.R. Part 563,
Subpart H.

Employment Contracts and Compensation Arrangements. 

8. Effective immediately, the Holding Company shall not enter into, renew, extend, or revise any
contractual arrangement related to compensation or benefits with any director or Senior Executive
Officer of the Holding Company, unless it first provides the Regional Director with not less than
thirty (30) days prior written notice of the proposed transaction. The notice to the Regional
Director shall include a copy of the proposed employment contract or compensation arrangement, or a
detailed written description of the compensation arrangement to be offered to such director or
officer, including all benefits and perquisites. The Board shall ensure that any contract,
agreement, or arrangement submitted to the Regional Director fully complies with the requirements
of 12 C.F.R. Part 359.

Effective Date. 

9. This Agreement is effective on the Effective Date as shown on the first page.

Duration. 

10. This Agreement shall remain in effect until terminated, modified or suspended, by written
notice of such action by the OTS, acting by and through its authorized representatives.

Time Calculations. 

11. Calculation of time limitations for compliance with the terms of this Agreement run from
the Effective Date and shall be based on calendar days, unless otherwise noted.

 

			
	4	 	The term “Senior Executive Officer” is
defined at 12 C.F.R. § 563.555.

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12. The Regional Director or an OTS authorized representative may extend any of the deadlines
set forth in the provisions of this Agreement upon written request by the Holding Company that
includes reasons in support for any extension. Any OTS extension shall be made in writing.

Submissions and Notices. 

13. All submissions, including progress reports, to the OTS that are required by or
contemplated by the Agreement shall be submitted within the specified timeframes.

14. Except as otherwise provided herein, all submissions, requests, communications, consents or
other documents relating to this Agreement shall be in writing and sent by first class U.S.
mail (or by reputable overnight carrier, electronic facsimile transmission or hand delivery by
messenger) addressed as follows:

	 	(a)	 	To the OTS:

Regional Director

Office of Thrift Supervision

One South Wacker Drive, Suite 2000

Chicago, Illinois 60606

Facsimile: (312) 917-5001

	 	(b)	 	To the Holding Company:

Chairman of the Board

Flagstar Bancorp, Inc.

5151 Corporate Drive

Troy, Michigan 48098

Facsimile: (248) 312-6823

No Violations Authorized. 

15. Nothing in this Agreement shall be construed as allowing the Holding Company, its Board,
officers or employees to violate any law, rule, or regulation.

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OTS Authority Not Affected. 

16. Nothing in this Agreement shall inhibit, estop, bar or otherwise prevent the OTS from
taking any other action affecting the Holding Company if at any time the OTS deems it
appropriate to do so to fulfill the responsibilities placed upon the OTS by law.

Other Governmental Actions Not Affected. 

17. The Holding Company acknowledges and agrees that its execution of the Agreement is solely for
the purpose of resolving the matters addressed herein, consistent with Paragraph 16 above, and does
not otherwise release, discharge, compromise, settle, dismiss, resolve, or in any way affect any
actions, charges against, or liability of the Holding Company that arise pursuant to this action or
otherwise, and that may be or have been brought by any governmental entity other than the OTS.

Miscellaneous. 

18. The laws of the United States of America shall govern the construction and validity of this
Agreement.

19. If any provision of this Agreement is ruled to be invalid, illegal, or unenforceable by the
decision of any Court of competent jurisdiction, the validity, legality, and enforceability of the
remaining provisions hereof shall not in any way be affected or impaired thereby, unless the
Regional Director in his or her sole discretion determines otherwise.

20. All references to the OTS in this Agreement shall also mean any of the OTS’s predecessors,
successors, and assigns.

21. The section and paragraph headings in this Agreement are for convenience only and shall not
affect the interpretation of this Agreement.

22. The terms of this Agreement represent the final agreement of the parties with respect to

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the subject matters thereof, and constitute the sole agreement of the parties with respect to such
subject matters.

Enforceability of Agreement. 

23. This Agreement is a “written agreement” entered into with an agency within the meaning and for
the purposes of 12 U.S.C. § 1818.

Signature of Directors/Board Resolution. 

24. Each Director signing this Agreement attests that he or she voted in favor of a Board
Resolution authorizing the consent of the Holding Company to the issuance and execution of the
Agreement. This Agreement may be executed in counterparts by the directors after approval of
execution of the Agreement at a duly called board meeting.

     WHEREFORE, the OTS, acting by and through its Regional Director, and the Board of the Holding
Company, hereby execute this Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Accepted by:	 	 
	FLAGSTAR BANCORP, INC.	 	 	 	Office of Thrift Supervision	 	 
	Troy, Michigan
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Joseph P. Campanelli

	 	 	 	By:
	 	/s/ Daniel T. McKee	 	 
	 

Joseph P. Campanelli, Chairman

	 	 	 	 	 	 

Daniel T. McKee
	 	 
	 

	 	 	 	 	 	Regional Director, Central Region	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Walter N. Carter	 	 	 	Date: See Effective Date on page 1	 	 
	 

Walter N. Carter, Director

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ James D. Coleman
	 	 	 	 	 	 	 	 
	 

James D. Coleman, M.D., Director

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Gregory Eng
	 	 	 	 	 	 	 	 
	 

Gregory Eng, Director

	 	 	 	 	 	 	 	 

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	/s/ Lesley Goldwasser
	 	 
	 

Lesley Goldwasser, Director

	 	 
	 
	 	 
	/s/ Jay J. Hansen
	 	 
	 

Jay J. Hansen, Director

	 	 
	 
	 	 
	/s/ David J. Matlin
	 	 
	 

David J. Matlin, Director

	 	 
	 
	 	 
	/s/ Mark R. Patterson
	 	 
	 

Mark R. Patterson, Director

	 	 
	 
	 	 
	/s/ David L. Treadwell
	 	 
	 

David L. Treadwell, Director

	 	 

Flagstar Bancorp, Inc.

Supervisory Agreement

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Exhibit 4.13

Execution Version

FIRST AMENDMENT

TO SECURITY AGREEMENT

     This
FIRST AMENDMENT TO SECURITY AGREEMENT, dated as of January 27, 2010 (this “Amendment”),
is entered into by EASTMAN KODAK COMPANY, a New Jersey corporation (the “Company”), and each direct
or indirect subsidiary of the Company listed on the signature pages hereof (the Company and such
subsidiaries, collectively, the “Grantors”, and each, individually, a “Grantor”), in favor of THE
BANK OF NEW YORK MELLON, as collateral agent (in such capacity, together with its successors and
assigns from time to time, the “Collateral Agent”) for the Second Lien Secured Parties, and is made
with reference to that certain Security Agreement, dated as of September 29, 2009 (as amended,
amended and restated, supplemented or otherwise modified through the date hereof, the “Security
Agreement”), among the Company, the other Grantors party thereto and the Collateral Agent.
Capitalized terms used herein without definition shall have the same meanings herein as set forth
in the Security Agreement after giving effect to this Amendment.

RECITALS

     WHEREAS, the Company and the other Grantors have requested that the Collateral Agent agree to
amend certain provisions of the Security Agreement as provided for herein; and

     WHEREAS, the holders of a majority of the outstanding principal amount of the Notes have
consented to the amendments set forth herein; and

     WHEREAS, all actions necessary to make this Amendment the legal, valid and binding obligation
of each of the Grantors have been taken or are being taken simultaneously with the execution and
delivery of this Amendment by the Grantors.

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

SECTION I. AMENDMENTS TO US SECURITY AGREEMENT

1.1 Amendments to Preliminary Statements.

     The sixth Preliminary Statement to the Security Agreement is hereby amended by inserting the
words “(as such schedule may be amended or supplemented by the Company from time to time as
necessary to implement the exclusion from Collateral set forth in clause (F) of the proviso at the
end of Section 1)” immediately after the words “Part I of Schedule I hereto” appearing in the third
line thereof.

1.2 Amendments to Section 1: Grant of Security.

     (a) Section 1 of the Security Agreement is hereby amended by deleting clause (c) thereof in
its entirety and inserting the following in lieu thereof:

 

 

     “(c) (i) all accounts, instruments (including, without limitation, promissory notes),
deposit accounts, chattel paper, general intangibles (including, without limitation, payment
intangibles) and other obligations of any kind owing to the Grantors, whether or not arising
out of or in connection with the sale or lease of goods or the rendering of services and
whether or not earned by performance (any and all such instruments, deposit accounts,
chattel paper, general intangibles and other obligations to the extent not referred to in
clause (d), (e) or (f) below, being the “Receivables”), and all supporting obligations,
security agreements, Liens, leases, letters of credit and other contracts owing to the
Grantors or supporting the obligations owing to the Grantors under the Receivables
(collectively, the “Related Contracts”), and (ii) all commercial tort claims now or
hereafter described on Schedule XII;”.

     (b) Section 1 of the Security Agreement is hereby amended by deleting the words “subject to
restrictions on assignment and/or transfer,” appearing in clauses (d)(v), (d)(vi), (e), (g)(v) and
(g)(vi) thereof.

     (c) Section 1 of the Security Agreement is hereby amended by deleting “5%” in each instance
appearing in clause (d)(iii) thereof and inserting “2%” in lieu thereof.

     (d) Section 1 of the Security Agreement is hereby amended by deleting clause (g)(i) thereof in
its entirety and inserting the following in lieu thereof:

     “(i) all patents, patent applications, utility models and statutory invention
registrations, all inventions claimed or disclosed therein and all improvements thereto
(other than those patents and related rights currently contemplated to be sold by the
Company or any other Grantor to the extent identified as such in Schedule IV(A)(i) attached
hereto) (“Patents”);”

     (e) Section 1 of the Security Agreement is hereby amended by (i) re-lettering existing clause
(h) as clause (i), (ii) deleting the word “and” at the end of clause (g)(vi) thereof and inserting
a new clause (h) immediately following clause (g)(vi) thereof as follows:

     “(h) all documents, all money and all letter-of-credit rights; and”.

     (f) Section 1 of the Security Agreement is hereby amended by deleting the word “or” at the end
of clause (D) of the proviso at the end of such Section and inserting a new clause (F) immediately
after clause (E) thereof as follows:

     “or (F) any “securities” of any of the Company’s “affiliates” (as the terms
“securities” and “affiliates” are used in Rule 3-16 of Regulation S-X under the Securities
Act) to the extent that Rule 3-16 of Regulation S-X under the Securities Act requires or
would require (or is replaced with another rule or regulation, or any other law, rule or
regulation is adopted, that would require) the filing with the SEC of separate financial
statements of the applicable “affiliate” that are not otherwise required to be filed due to
the fact that a security interest in the “securities” of such “affiliate” has been granted
hereunder as security for the payment or performance of the Secured Obligations, but only to
the extent necessary, and only for so long as required, to cause the applicable “affiliate”
to not be subject to such requirement”.

2

 

1.3 Amendments to Section 9: Insurance.

     Section 9 of the Security Agreement is hereby amended by deleting the reference to “Section
1(h)” in the last sentence of clause (a) thereof and inserting “Section 1(i)” in lieu thereof.

1.4 Amendments to Section 14 As to Letter-of-Credit-Rights.

     (a) Section 14 of the Security Agreement is hereby amended by inserting the words “and
Commercial Tort Claims” after the words “Letter-of-Credit-Rights” appearing in the heading of such
Section.

     (b) Section 14 of the Security Agreement is hereby amended by inserting a new clause (c) at
the end of clause (b) thereof as follows:

     “(c) In the event that any Grantor hereafter acquires or has any commercial tort claim
that has been filed with any court in excess of $25,000,000 in the aggregate, it shall,
promptly after such claim has been filed with such court, deliver a supplement to Schedule
XII hereto, identifying such new commercial tort claim; provided, however, that, with
respect to any commercial tort claim in respect of Intellectual Property Collateral, the
obligation set forth in this Section 14(c) shall only be applicable with respect to any such
commercial tort claim to the extent relating to Intellectual Property Collateral with
respect to which the applicable Grantors have executed or otherwise authenticated (or have
an obligation pursuant to Section 11(e) to execute or otherwise authenticate) an
Intellectual Property Security Agreement.”.

1.5 Other Amendments.

     (a) Sections 4, 5, 9, 10, 11, 13, 14, 15, 16 and 19 of the Security Agreement are hereby
amended by deleting the words “Event of Default” in each instance appearing therein and inserting
the words “Actionable Default” in lieu thereof in each such instance.

     (b) The Security Agreement is hereby amended by inserting a new Section 28 immediately after
Section 27 thereof as follows:

     “Section 28. Local Law Pledges. As it relates to the percentage of Equity Interests of
any Material Subsidiary that shall constitute Collateral hereunder, in the event of any
conflict between this Agreement and any local law security documents delivered pursuant to
this Agreement with respect to any Material Subsidiary, the terms of this Agreement shall
govern. At any time when clause (F) of the proviso at the end of Section 1 would apply to
reduce the amount of Equity Interests in any Material Subsidiary that are included in the
Collateral, the Pledged Equity of such Material Subsidiary shall, for all purposes under
this Agreement, be automatically deemed reduced as of the end of the prior fiscal year to a
level that would not require the filing of separate financial statements for such Material
Subsidiary with the Securities and Exchange Commission.”

3

 

1.6 Amendments to Schedules.

     (a) Part I of Schedule I to the Security Agreement is hereby amended and restated in its
entirety as set forth in Exhibit A attached hereto.

     (b) The Security Agreement is hereby amended by inserting a new Schedule XII as set forth in
Exhibit B attached hereto.

1.7 Amendments to Exhibits.

     Exhibit C to the Security Agreement is hereby amended by deleting the words “subject to
restrictions on assignment or transfer,” appearing in Section 1 thereof.

SECTION II. CONDITIONS TO EFFECTIVENESS

     This Amendment shall become effective as of the date hereof only upon the satisfaction of all
of the following conditions precedent (the “First Amendment Effective Date”):

     A. Execution. The Collateral Agent shall have received counterparts of this
Amendment duly executed and delivered by the Company, each other Grantor and the Collateral Agent.

     B. Payment of Fees and Expenses. The Grantors shall have paid to the Collateral
Agent all fees, costs and expenses owing to the Collateral Agent (and its officers, directors,
employees and agents) as of such date (including, without limitation, the reasonable fees,
disbursements and other charges of Latham & Watkins LLP) required to be reimbursed or paid by the
Grantors hereunder, under the Collateral Trust Agreement or under any Second Lien Collateral
Document (as defined in the Collateral Trust Agreement) (the “Security Documents”).

     C. Representations and Warranties. Each of the representations and warranties in
Section III below shall be true and correct in all material respects.

SECTION III. REPRESENTATIONS AND WARRANTIES

     In order to induce the Collateral Agent to enter into this Amendment and to amend the Security
Agreement in the manner provided herein, each Grantor represents and warrants to the Collateral
Agent that the following statements are true and correct in all material respects:

     A. Corporate Power and Authority. Each Grantor has all requisite power and
authority to enter into this Amendment and to carry out the transactions contemplated by, and
perform its obligations under, this Amendment and under the Security Agreement as amended by this
Amendment (the “Amended Agreement”).

     B. Authorization; No Conflict. The execution and delivery of this Amendment and
the performance by each Grantor of its obligations under this Amendment and under the Amended
Agreement have been duly authorized by all necessary corporate, partnership or other applicable

4

 

entity action on its part (including, without limitation, any required shareholder approvals),
and do not and will not conflict with, or result in a breach of, or require any consent under, the
charter or by-laws or other constitutive document of any Grantor, or any applicable law or
regulation, or any order, writ, injunction or decree of any federal, state, foreign or other
governmental authority or regulatory body, or any agreement or instrument to which any Grantor or
any of its subsidiaries is a party or by which any of them or any of their property is bound or to
which any of them is subject, or constitute a default under any such agreement or instrument, or
(except for Liens created pursuant to the Security Documents and Permitted Liens) result in the
creation or imposition of any Lien upon any property of any Grantor or any of its subsidiaries
pursuant to the terms of any such agreement or instrument.

     C. Governmental Consents. No authorizations, approvals or consents of, and except
for filings and recordings in respect of the Liens created pursuant to the Security Documents, no
filings or registrations with, any federal, state, foreign or other governmental authority or
regulatory body, or any securities exchange, are necessary for the execution or delivery by any
Grantor of this Amendment, or the performance by any Grantor of this Amendment or the Amended
Agreement or for the legality, validity or enforceability hereof or thereof.

     D. Binding Effect. This Amendment has been duly and validly executed and
delivered by each Grantor. Each of this Amendment and the Amended Agreement constitutes a legal,
valid and binding obligation of each Grantor, enforceable against each Grantor in accordance with
its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency,
reorganization, moratorium or similar laws of general applicability affecting the enforcement of
creditors’ rights and (ii) the application of general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

     E. Absence of Default. No Default (as defined in the Indenture) or Actionable
Default (as defined in the Collateral Trust Agreement) has occurred and is continuing or would
result from the consummation of the transactions contemplated by this Amendment or the Amended
Agreement.

SECTION IV. MISCELLANEOUS

     A. Reference to and Effect on the Security Agreement and the Other Second Lien
Documents.

     (i) On and after the First Amendment Effective Date, each reference in the Security
Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import
referring to the Security Agreement, and each reference in the other Second Lien Documents
to the “Security Agreement”, “thereunder”, “thereof” or words of like import referring to
the Security Agreement shall mean and be a reference to the Amended Agreement.

     (ii) Except as specifically amended by this Amendment, the Security Agreement and
the other Second Lien Documents (including any exhibits, schedules and annexes thereto)
shall remain in full force and effect and are hereby ratified and confirmed in all respects.
Without limiting the foregoing, the Security Agreement and

5

 

the other Second Lien Collateral Documents and all of the Collateral described therein
do and shall continue to secure the payment of all Second Lien Obligations to the extent
provided in the Second Lien Collateral Documents.

     (iii) The execution, delivery and performance of this Amendment shall not
constitute a waiver of any provision of, or operate as a waiver of any right, power or
remedy of the Collateral Agent or any other Second Lien Secured Party under, the Security
Agreement or any of the other Second Lien Documents.

     B. Headings. Section and subsection headings appearing herein are included solely
for convenience of reference and are not intended to affect the interpretation of any provision of
this Amendment.

     C. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns.

     D. Severability. Any provision of this Amendment that is prohibited or
unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     E. Counterparts. This Amendment may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement. Delivery of an executed counterpart of a signature
page to this Amendment by telecopier or other electronic transmission shall be effective as
delivery of an original executed counterpart of this Amendment.

     F. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

     G. Second Lien Document. This Amendment is a “Second Lien Collateral Document”
and a “Second Lien Document” under and as defined in the Collateral Trust Agreement and shall
(unless otherwise expressly indicated herein) be construed, administered and applied in accordance
with the terms and provisions thereof. The Grantors and the Collateral Agent hereby acknowledge
and agree to Sections 5 and 6 of the Collateral Trust Agreement.

     H. Miscellaneous. The provisions of the Collateral Trust Agreement under the
headings “Consent to Jurisdiction” and “Waiver of Jury Trial” are incorporated herein by this
reference and such incorporation shall survive any termination of the Collateral Trust Agreement.
The recitals contained herein are deemed to be those of the Company and the other Grantors and not
of the Collateral Agent.

     I. Foreign Pledge Documents. Notwithstanding anything to the contrary in the
Second Lien Documents, (i) the Company shall have 90 days from the date of this Amendment to
deliver a deed of pledge of shares governed by Dutch law, duly executed and delivered by all
parties thereto and in form and substance reasonably satisfactory to the Collateral Agent, with
respect to the pledge of the capital stock of Eastman Kodak Holdings B.V. in favor of the
Collateral Agent and (ii) with respect to any security documents under local law to be delivered
with respect to

6

 

additional Material Subsidiaries as of the date of this Amendment that were not Material
Subsidiaries immediately prior to giving effect to this Amendment, the Company shall have 120 days
from the date of this Amendment to deliver such security documents to the Collateral Agent (it
being understood that no such security documents shall be required to be delivered with respect to
any such Material Subsidiaries to the extent that applicable foreign law prohibits the creation of
a security interest in favor of the Collateral Agent), and no Actionable Default shall arise as a
result of any failure by the Company to deliver such security documents prior to the applicable
time set forth above. The Company and the Collateral Agent shall use commercially reasonable
efforts to include in any security documents under local law such provisions, and to execute all
documents and instruments, as are necessary to implement the exclusion from Collateral set forth in
clause (F) of the proviso at the end of Section 1 of the Amended Agreement, within the time periods
required for compliance with Rule 3-16 of Regulation S-X to be effective as of the prior fiscal
year end.

[Remainder of page left blank intentionally]

7

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their respective officers thereunto duly authorized as of the day and year first above
written.

	 	 	 	 	 
	 	EASTMAN KODAK COMPANY

 	 
	 	By:  	/s/
William G. Love
 	 
	 	 	Name:  	William G. Love 	 
	 	 	Title:  	Treasurer 	 
	 
	 	CREO MANUFACTURING AMERICA LLC

KODAK AVIATION LEASING LLC

 	 
	 	By:  	/s/
William G. Love
 	 
	 	 	Name:  	William G. Love 	 
	 	 	Title:  	Manager 	 
	 
	 	EASTMAN GELATINE CORPORATION

EASTMAN KODAK INTERNATIONAL

CAPITAL COMPANY, INC.

FAR EAST DEVELOPMENT LTD.

FPC INC.

KODAK (NEAR EAST), INC.

KODAK AMERICAS, LTD.

KODAK IMAGING NETWORK, INC.

KODAK PORTUGUESA LIMITED

KODAK REALTY, INC.

LASER EDIT, INC.

LASER-PACIFIC MEDIA CORPORATION

PACIFIC VIDEO, INC.

PAKON, INC.

QUALEX INC.

 	 
	 	By:  	/s/
William G. Love
 	 
	 	 	Name:  	William G. Love 	 
	 	 	Title:  	Treasurer 	 
	 

First Amendment to Security Agreement

 

 

	 	 	 	 	 
	 	KODAK PHILIPPINES, LTD.

NPEC INC.

 	 
	 	By:  	/s/
William G. Love
 	 
	 	 	Name:  	William G. Love 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

First Amendment to Security Agreement

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Collateral Agent

 	 
	 	By:  	/s/
Franca M. Ferrera
 	 
	 	 	Name:  	Franca M. Ferrera 	 
	 	 	Title:  	Senior Associate 	 
	 

First Amendment to Security Agreement

 

 

Exhibit A

Schedule I, Part I to the

Security Agreement

as of January 27, 2010

INVESTMENT PROPERTY

Part I

Initial Pledged Equity

 

 

Exhibit B

Schedule XII to the

Security Agreement

COMMERCIAL TORT CLAIMS

None.

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