Document:

kodk-ex102_272.htm

Exhibit 10.2

AMENDED AND RESTATED SECURITY AGREEMENT

Dated May 26, 2016

From

The Grantors referred to herein

as Grantors

to

Bank of America, N.A.

as Agent

*** - Certain confidential information contained in this document has been omitted from public filing pursuant to a request for confidential treatment submitted to the U.S. Securities and Exchange Commission. The omitted information, which has been identified with the symbol “***,” has been filed separately with the U.S. Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

 

 

Table of Contents

 

	
 
	
 
	
 
	
 
	
Page

	
Section 1.
	
 
	
Grant of Security
	
 
	
2

	
 
	
 
	
 
	
 
	
 

	
Section 2.
	
 
	
Security for Obligations
	
 
	
4

	
 
	
 
	
 
	
 
	
 

	
Section 3.
	
 
	
Grantors Remain Liable
	
 
	
5

	
 
	
 
	
 
	
 
	
 

	
Section 4.
	
 
	
Delivery and Control of Security Collateral
	
 
	
5

	
 
	
 
	
 
	
 
	
 

	
Section 5.
	
 
	
Delivery and Possession of Certain Cash Collateral
	
 
	
5

	
 
	
 
	
 
	
 
	
 

	
Section 6.
	
 
	
Representations and Warranties
	
 
	
6

	
 
	
 
	
 
	
 
	
 

	
Section 7.
	
 
	
Further Assurances
	
 
	
9

	
 
	
 
	
 
	
 
	
 

	
Section 8.
	
 
	
As to Equipment and Inventory
	
 
	
9

	
 
	
 
	
 
	
 
	
 

	
Section 9.
	
 
	
Insurance
	
 
	
9

	
 
	
 
	
 
	
 
	
 

	
Section 10.
	
 
	
Post-Closing Changes; Collections on Assigned Agreements and Receivables
	
 
	
11

	
 
	
 
	
 
	
 
	
 

	
Section 11.
	
 
	
As to Intellectual Property Collateral
	
 
	
11

	
 
	
 
	
 
	
 
	
 

	
Section 12.
	
 
	
Voting Rights; Dividends; Etc.
	
 
	
12

	
 
	
 
	
 
	
 
	
 

	
Section 13.
	
 
	
As to the Assigned Agreements
	
 
	
12

	
 
	
 
	
 
	
 
	
 

	
Section 14.
	
 
	
As to Letter-of-Credit Rights and Commercial Tort Claims
	
 
	
12

	
 
	
 
	
 
	
 
	
 

	
Section 15.
	
 
	
Transfers and Other Liens; Additional Shares
	
 
	
13

	
 
	
 
	
 
	
 
	
 

	
Section 16.
	
 
	
Agent Appointed Attorney in Fact
	
 
	
13

	
 
	
 
	
 
	
 
	
 

	
Section 17.
	
 
	
Agent May Perform
	
 
	
14

	
 
	
 
	
 
	
 
	
 

	
Section 18.
	
 
	
The Agent’s Duties
	
 
	
14

	
 
	
 
	
 
	
 
	
 

	
Section 19.
	
 
	
Remedies
	
 
	
14

	
 
	
 
	
 
	
 
	
 

	
Section 20.
	
 
	
Grant of Intellectual Property License
	
 
	
15

	
 
	
 
	
 
	
 
	
 

	
Section 21.
	
 
	
Indemnity and Expenses
	
 
	
15

	
 
	
 
	
 
	
 
	
 

	
Section 22.
	
 
	
Amendments; Waivers; Additional Grantors; Etc.
	
 
	
15

	
 
	
 
	
 
	
 
	
 

	
Section 23.
	
 
	
Confidentiality; Notices; References
	
 
	
16

	
 
	
 
	
 
	
 
	
 

	
Section 24.
	
 
	
Continuing Security Interest; Assignments Under the Credit Agreement
	
 
	
16

	
 
	
 
	
 
	
 
	
 

	
Section 25.
	
 
	
Release; Termination
	
 
	
17

	
 
	
 
	
 
	
 
	
 

	
Section 26.
	
 
	
Execution in Counterparts
	
 
	
17

	
 
	
 
	
 
	
 
	
 

	
Section 27.
	
 
	
Governing Law
	
 
	
17

	
 
	
 
	
 
	
 
	
 

	
Section 28.
	
 
	
Jurisdiction; Waiver of Jury Trial
	
 
	
17

	
 
	
 
	
 
	
 
	
 

	
Section 29.
	
 
	
Intercreditor Agreement
	
 
	
18

	
 
	
 
	
 
	
 
	
 

	
Section 30.
	
 
	
Continuation of Security Interests; No Novation
	
 
	
18

 

 

i

Schedules

 

	
Schedule I
	
–
	
Investment Property

	
Schedule II
	
–
	
Deposit Accounts and Securities Accounts

	
Schedule III
	
–
	
Receivables and Agreement Collateral

	
Schedule IV
	
–
	
Intellectual Property

	
Schedule V
	
–
	
Legal Name, Trade Names, Location, Chief Executive Office, Type of Organization, Jurisdiction of  Organization, Organizational Identification Number and Federal Employer Identification Number

	
Schedule VI
	
–
	
Changes in Name, Location, Etc.

	
Schedule VII
	
–
	
Letters of Credit

	
Schedule VIII
	
–
	
Equipment Locations

	
Schedule IX
	
–
	
Inventory Locations

	
Schedule X
	
–
	
Commercial Tort Claims

	
Schedule XI
	
–
	
Mergers and Acquisitions

	
Schedule XII
	
–
	
Locations of Books and Records

	
Schedule XIII
	
–
	
Filing Offices

	
Schedule XIV
	
–
	
Other Actions

	
Exhibits
	
 
	
 

	
Exhibit A
	
–
	
Form of Intellectual Property Security Agreement

	
Exhibit B
	
–
	
Form of Intellectual Property Security Agreement Supplement

	
Exhibit C
	
–
	
Form of Security Agreement Supplement

 

 

 

ii

AMENDED AND RESTATED SECURITY AGREEMENT

AMENDED AND RESTATED SECURITY AGREEMENT dated May 26, 2016 (as it may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”), made by Eastman Kodak Company, a New Jersey corporation (“Borrower”, and the other Persons listed on the signature pages hereof, or which at any time execute and deliver a Security Agreement Supplement in substantially the form attached hereto as Exhibit C (the Borrower and such Persons so listed being, collectively, the “Grantors”), to Bank of America, N.A., as administrative and collateral agent (in such capacity, together with any successor Agent appointed pursuant to Article VIII of the Credit Agreement (as hereinafter defined) and assigns, the “Agent”) for the Secured Parties (as defined in the Credit Agreement).

PRELIMINARY STATEMENTS.

(1) Borrower and certain subsidiaries of the Borrower have entered into a senior secured revolving credit facility with Agent and certain other parties as set forth in that certain Credit Agreement, dated as of September 3, 2013, by and among the Borrower, certain subsidiaries of the Borrower, the lenders party thereto from time to time and Agent (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”).

(2) In connection with the Existing Credit Agreement, the Borrower and certain Grantors entered into a Security Agreement, dated as of September 3, 2013, (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Security Agreement”) in favor of the Agent for the benefit of the lenders party to the Existing Credit Agreement and certain other secured parties.

(3) Concurrently with the execution and delivery of this Agreement, the Borrower and certain subsidiaries of the Borrower are entering into the Amended and Restated Credit Agreement, dated of even date herewith, by and among the Borrower, certain subsidiaries of the Borrower, the lenders party thereto from time to time (the “Lenders”), certain non-consenting lenders party thereto and Agent (as it may be further amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), in order to amend and restate the Existing Credit Agreement in its entirety.

(4) The parties hereto have agreed to amend and restate the Existing Security Agreement in its entirety as provided herein.

(5) Borrower is a member of an affiliated group of companies that includes each other Grantor.

(6) Part I of Schedule I hereto lists all Equity Interests (other than Excluded Property) directly owned by such Grantor as of the date hereof (the “Initial Pledged Equity”).  Each Grantor is the holder of the indebtedness owed to such Grantor as of the date hereof (the “Initial Pledged Debt”) set forth opposite such Grantor’s name on and as otherwise described in Part II of Schedule I hereto and issued by the obligors named therein.

(7) Each Grantor is the owner of the deposit accounts set forth opposite such Grantor’s name on Schedule II hereto (together with all deposit accounts now owned or hereafter acquired by the Grantors, the “Pledged Deposit Accounts”).

(8) Company is the owner of a L/C Cash Deposit Account (as defined in the Credit Agreement) created in accordance with the Credit Agreement and subject to the security interest granted under this Agreement.

(9) Company is the owner of the Pledged Cash Account (Eligible Cash) created in accordance with the Credit Agreement and subject to the security interest granted under this Agreement.

(10) It is a condition precedent to the making of Revolving Loans and the issuance of additional Letters of Credit by the Lenders under the Credit Agreement that the Grantors shall have granted the security interest contemplated by this Agreement.

(11) Each Grantor will derive substantial direct or indirect benefit from the transactions contemplated by this Agreement, the Credit Agreement and the other Loan Documents.

(12) Terms defined in the Credit Agreement and not otherwise defined in this Agreement are used in this Agreement as defined in the Credit Agreement. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  Further, unless otherwise defined in this Agreement or in the Credit Agreement, terms defined in Article 8 or 9 of the UCC (as defined below) are used in this Agreement (whether or not capitalized) as such terms are defined in such Article 8 or 9.  “UCC” means the Uniform Commercial Code as in effect from time to time 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.

 

 

NOW, THEREFORE, in consideration of the premises and in order to induce the Agent and Lenders to make Revolving Loans and issue Letters of Credit under the Credit Agreement, each Grantor hereby agrees with the Agent for the benefit of the Secured Parties as follows:

Section 1. Grant of Security. Each Grantor hereby grants to the Agent, for the benefit of the Secured Parties, a security interest in such Grantor’s right, title and interest in and to the following, in each case, as to each type of property described below, whether now owned or hereafter acquired by such Grantor, wherever located, and whether now or hereafter existing or arising (collectively, the “Collateral”):

(a) all equipment in all of its forms, including all machinery, tools, motor vehicles, vessels, aircraft and furniture (excepting all fixtures), and all parts thereof and all accessions thereto, including computer programs and supporting information that constitute equipment within the meaning of the UCC (any and all such property being the “Equipment”);

(b) all inventory in all of its forms, including (i) all raw materials, work in process, finished goods and materials used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor has an interest in mass or a joint or other interest or right of any kind (including goods in which such Grantor has an interest or right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by such Grantor, and all accessions thereto and products thereof and documents therefor, including computer programs and supporting information that constitute inventory within the meaning of the UCC (any and all such property being the “Inventory”);

(c) (i) all accounts, instruments (including promissory notes), deposit accounts, chattel paper, general intangibles (including 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 X hereto;

(d) the following (the “Security Collateral”):

(i) the Initial Pledged Equity and the certificates, if any, representing the Initial Pledged Equity, and all dividends, distributions, return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Equity and all warrants, rights or options issued thereon or with respect thereto;

(ii) the Initial Pledged Debt and the instruments, if any, evidencing the Initial Pledged Debt, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Debt;

(iii) all additional equity interests (other than Excluded Property) from time to time acquired by such Grantor in any manner (such equity interests, together with the Initial Pledged Equity, being the “Pledged Equity”), and the certificates, if any, representing such additional equity interests, and all dividends, distributions, return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such equity interests and all warrants, rights or options issued thereon or with respect thereto;

(iv) all additional indebtedness from time to time owed to such Grantor (such indebtedness, together with the Initial Pledged Debt, being the “Pledged Debt”) and the instruments, if any, evidencing such indebtedness, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such indebtedness;

(v) all security entitlements or commodity contracts carried in, or from time to time credited to, as applicable, a securities account or commodity account, all financial assets, and all dividends, distributions, return of capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such security entitlements or financial assets and all warrants, rights or options issued thereon with respect thereto; and

(vi) all other investment property (including all (A) securities, whether certificated or uncertificated, (B) security entitlements, (C) securities accounts, (D) commodity contracts and (E) commodity accounts, but excluding any equity interest excluded from the Pledged Equity) in which such Grantor has now, or acquires from time to time hereafter, any right, title or interest in any manner, and the certificates or instruments, if any, representing or evidencing such investment property, and all dividends, distributions, return of capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such investment property and all warrants, rights or options issued thereon or with respect thereto (“Investment Property”);

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(e) each Hedging Agreement to which such Grantor is now or may hereafter become a party, in each case as such agreements may be amended, amended and restated, supplemented or otherwise modified from time to time (collectively, the “Assigned Agreements”), including (i) all rights of such Grantor to receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Assigned Agreements, (iii) claims of such Grantor for damages arising out of or for breach of or default under the Assigned Agreements and (iv) the right of such Grantor to terminate the Assigned Agreements, to perform thereunder and to compel performance and otherwise exercise all remedies thereunder (all such Collateral being the “Agreement Collateral”);

(f) the following (collectively, the “Account Collateral”):

(i) the Pledged Deposit Accounts, the L/C Cash Deposit Account, the Pledged Cash Account (Eligible Cash) and all funds and financial assets from time to time credited thereto (including all cash equivalents), and all certificates and instruments, if any, from time to time representing or evidencing the Pledged Deposit Accounts, the L/C Cash Deposit Account or the Pledged Cash Account (Eligible Cash);

(ii) all promissory notes, certificates of deposit, checks and other instruments from time to time delivered to or otherwise possessed by the Agent for or on behalf of such Grantor in substitution for or in addition to any or all of the then existing Account Collateral; and

(iii) all interest, dividends, distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Account Collateral; and

(g) the following (collectively, the “Intellectual Property Collateral”):

(i) all patents, patent applications, utility models and statutory invention registrations, all inventions claimed or disclosed therein and all improvements thereto (“Patents”);

(ii) all trademarks, service marks, uniform resource locators (“URLs”), domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and other source identifiers, whether registered or unregistered, together, in each case, with the goodwill symbolized thereby (“Trademarks”);

(iii) all copyrights, including copyrights in computer software, internet web sites and the content thereof, whether registered or unregistered (“Copyrights”); all confidential and proprietary information, including know-how, trade secrets, manufacturing and production processes and techniques, inventions, research and development information, databases and data, including technical data, financial, marketing and business data, pricing and cost information, business and marketing plans and customer and supplier lists and information (collectively, “Trade Secrets”), and all other intellectual, industrial and intangible property of any type, including industrial designs and mask works;

(iv) except as set forth above, all registrations and applications for registration for any of the foregoing, including those registrations and applications for registration, together with all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations thereof;

(v) all agreements, permits, consents, orders and franchises relating to the license, development, use or disclosure of any of the foregoing to which such Grantor, now or hereafter, is a party or a beneficiary (“IP Agreements”); and

(vi) any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, such damages;

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

(i) all books and records and documents (including databases, customer lists, credit files, computer files,  printouts, other computer output materials and records and other records) of the Grantors pertaining to any of the Grantors’ Collateral;

(j) all other property not otherwise described above (except for any property specifically excluded from any clause in this section, and any property specifically excluded from any defined term used in any clause of this section); and

(k) all proceeds of and payments under business interruption insurance; and

3

(l) all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the Collateral (including proceeds, collateral and supporting obligations that constitute property of the types described in clauses (a) through (h) of this Section 1) and, to the extent not otherwise included, all (A) payments under insurance (whether or not the Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, and (B) cash and cash equivalents, including all Eligible Cash and US Cash;

provided, that, notwithstanding any of the other provisions set forth in this Section 1 or in any Loan Document, no Excluded Property shall constitute Collateral under this Agreement. For purposes of this Agreement and the other Loan Documents, “Excluded Property” shall mean (1) any property to the extent that such grant of a security interest (x) is prohibited by any applicable Requirements of Law, (y) requires a consent not obtained of any Governmental Authority pursuant to such applicable Requirement of Law or (z) is prohibited by, or constitutes a breach or default under or results in the termination of or requires any consent not obtained under, any contract, license, agreement, instrument or other document evidencing or giving rise to such property or, in the case of any Security Collateral (other than any of the foregoing issued by a Grantor), any applicable shareholder or similar agreement, except to the extent that such Requirement of Law or the term in such contract, license, agreement, instrument or other document or shareholder or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable law, (2) any lease, license or other agreement or any property that is subject to a purchase money Lien or capital lease or similar arrangement (in each case permitted by the Credit Agreement and for so long as subject to such purchase money Lien, capital lease or similar arrangement), in each case to the extent that a grant of a Lien therein would violate or invalidate such lease, license or agreement or such purchase money, capital lease or similar arrangement or create a right of termination in favor of any party thereto (other than a Loan Party), except to the extent that such lease, license or other agreement or other document providing for such violation or invalidation or termination right is ineffective under applicable law (it being understood that Excluded Property shall not include proceeds and Receivables in respect of the foregoing), (3) any United States trademark or service mark application filed on the basis of a Grantor’s “intent-to-use” such trademark or service mark pursuant to Section 1(b) the Lanham Act, 15 U.S.C. § 1051, in each case, to the extent the inclusion in the Collateral of any such application would void, impair or invalidate any such application or any resulting registration, unless and until an Amendment to Allege Use or a Statement of Use under Section 1(c) or 1(d) of said Act is filed with and accepted by the United States Patent and Trademark Office, (4) any property to the extent a security interest in such property would result in material adverse tax consequences as reasonably determined by the Borrower and the Agent, including any of the equity interests of any domestic Subsidiary of the Borrower that is a direct or indirect Subsidiary of a CFC, (5) any fee-owned real property and all leasehold interests in real property, (6) any Excluded Account, (7) any of the equity interests of any Foreign Subsidiary of the Borrower that is not a Material First-Tier Foreign Subsidiary, each of which, as of the date hereof, is indicated on Part III of Schedule I hereto, (8) any of the equity interests of any Subsidiary of the Borrower that is a Material First-Tier Foreign Subsidiary in excess of 65% of all of the issued and outstanding shares of capital stock of such Material First-Tier Foreign Subsidiary entitled to vote (within the meaning of Treasury Regulation Section 1.956-2), and (9) any assets of Borrower, Qualex, Inc. or Kodak (Near East), Inc. which have been Disposed of on or before the Initial Closing Date pursuant to the KPP Global Settlement. Notwithstanding anything herein or in any other Loan Document, the Grantors shall not be required to perfect the Agent’s security interest in (i) motor vehicles and other assets subject to certificates of title to the extent a Lien thereon cannot be perfected by the filing of a UCC financing statement, (ii) Letter-of-Credit Rights, (iii) disbursement accounts and (iv) any property as to which the Agent shall agree in writing that the cost of obtaining a security interest or perfection thereof would be excessive in relation to the value of the security to be afforded thereby. For purposes of this Agreement, “Requirements of Law” shall mean, as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

Section 2. Security for Obligations. This Agreement secures, in the case of each Grantor, the payment of all obligations of such Grantor and the Subsidiaries of the Company now or hereafter existing under (a) the Loan Documents, (b) the Specified Secured Creditor Agreements, and (c) the Bank Product Agreements, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, fees, premiums, penalties, indemnifications, contract causes of action, costs, expenses or otherwise (all such obligations being the “Secured Obligations”) owing to the Secured Parties.  Without limiting the generality of the foregoing, this Agreement secures, as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by such Grantor or Subsidiary of the Company, as applicable, to any Secured Party under the Loan Documents, the Specified Secured Creditor Agreements or the Bank Product Agreements but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving any of the Loan Parties and other Subsidiaries of the Company.

4

Section 3. Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included in such Grantor’s Collateral to perform all of its duties and obligations thereunder to the extent set forth therein to the same extent as if this Agreement had not been executed, (b) the exercise by the Agent of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) no Secured Party shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

Section 4. Delivery and Control of Security Collateral. (a)  Subject to the Intercreditor Agreement, all certificates or instruments representing or evidencing Pledged Equity or Pledged Debt shall be promptly delivered to and held by or on behalf of the Agent pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Agent except to the extent that such transfer or assignment is prohibited by applicable law. With respect to any Pledged Equity existing on the Closing Date, the transfer or assignment of which is subject to (x) certain corporate actions by the holders of or issuers of Initial Pledged Equity issued by Foreign Subsidiaries which have not occurred as of the Closing Date despite the Grantors’ use of commercially reasonable efforts to cause such corporate actions to occur prior to the Closing Date or (y) governmental approvals or consents which have not been obtained as of the Closing Date despite the Grantors’ use of commercially reasonable efforts to cause such approvals or consents to be obtained prior to the Closing Date, the Grantors shall cause such corporate actions to occur or shall obtain such approvals or consents within 45 days after the Closing Date (or such later date as the Administrative Agent shall reasonably agree).

(b) With respect to any Security Collateral representing interests in which any Grantor has any right, title or interest and that constitutes an uncertificated security, such Grantor will use commercially reasonable efforts (or in the case of a wholly-owned Subsidiary, take all actions necessary) to cause (i) the issuers of such Security Collateral and (ii) any securities intermediary which is the holder of any such Security Collateral, to cause the Agent to have and retain, subject to the Intercreditor Agreement, Control over such Security Collateral.  Without limiting the foregoing, such Grantor will, with respect to any such Security Collateral held with a securities intermediary, use commercially reasonable efforts to cause such securities intermediary to enter into a control agreement with the Agent, in form and substance reasonably satisfactory to the Agent, giving the Agent Control, subject to the Intercreditor Agreement.

(c) With respect to any securities or commodity account and any Security Collateral that constitutes a security entitlement (other than a security entitlement which is an uncertificated security, which for the avoidance of doubt shall be subject to the preceding Section 4(b)), within 60 days after the Closing Date (or such later date as the Administrative Agent shall reasonably agree), the relevant Grantor will cause the securities intermediary with respect to such security or commodity account or security entitlement to identify in its records the Agent as the entitlement holder thereof or enter into a control agreement with the Agent, in form and substance reasonably satisfactory to the Agent, giving the Agent Control, subject to the Intercreditor Agreement.

(d) Subject to the Intercreditor Agreement and upon the occurrence and during the continuance of an Event of Default, each Grantor shall cause the Security Collateral to be registered in the name of the Agent or such of its nominees as the Agent shall direct, subject only to the revocable rights specified in Section 12(a).  In addition, the Agent shall have the right upon the occurrence and during the continuance of an Event of Default to convert Security Collateral consisting of financial assets credited to any securities account or the L/C Cash Deposit Account to Security Collateral consisting of financial assets held directly by the Agent, and to convert Security Collateral consisting of financial assets held directly by the Agent to Security Collateral consisting of financial assets credited to any securities or commodity account or the L/C Cash Deposit Account.

(e) Upon the occurrence and during the continuance of an Event of Default, each Grantor will notify each issuer of Security Collateral granted by it hereunder that such Security Collateral is subject to the security interest granted hereunder.

Section 5. Delivery and Possession of Certain Cash Collateral. Borrower may, from time to time, deposit or cause to be deposited with Agent cash denominated in dollars (such amounts, the “Eligible Cash Collateral”) by federal funds wire transfer (or other means reasonably acceptable to Agent) to the Pledged Cash Account (Eligible Cash). The Eligible Cash Collateral shall be held in and released from the Pledged Cash Account (Eligible Cash) pursuant to and in accordance with the terms and conditions of the Credit Agreement, this Agreement, and to the extent applicable, the terms of the Pledged Cash Account Agreement (Eligible Cash) and the relevant documentation establishing the Pledged Cash Account (Eligible Cash).

5

Section 6. Representations and Warranties. Each Grantor represents and warrants as follows:

(a) Such Grantor’s exact legal name, chief executive office, type of organization, jurisdiction of organization, organizational identification number and Federal Employer Identification Number as of the date hereof is set forth in Schedule V hereto.  Within the five years preceding the date hereof, such Grantor has not changed its legal name, chief executive office, type of organization, jurisdiction of organization, organizational identification number or Federal Employer Identification Number from those set forth in Schedule V hereto except as set forth in Schedule VI hereto.  Each of the trade names owned and used by the any Grantor in the operation of its business (e.g. billing, advertising, etc.) are set forth in Schedule V hereto.

(b) Since the date of four (4) months prior to the date hereof, each Grantor has made or entered into only the mergers and acquisitions set forth on Schedule XI hereto.

(c) The books and records of each Grantor pertaining to accounts, contract rights, inventory, and other assets are located at the addresses indicated for each Grantor on Schedule XII hereto.

(d) Such Grantor is the legal and beneficial owner of the Collateral and has rights in, the power to transfer, or a valid right to use, the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of any Lien, claim, option or right of others, except for the security interest created under this Agreement or Liens permitted under the Credit Agreement, and has full power and authority to grant to the Agent the security interest in such Collateral granted hereunder pursuant to the terms hereof.  No effective financing statement or other instrument similar in effect covering all or any part of such Collateral or listing such Grantor or any trade name of such Grantor as debtor is on file in any recording office, except such as may exist on the date of this Agreement, have been filed in favor of the Agent relating to the Loan Documents or are otherwise permitted under the Credit Agreement.

(e) When financing statements naming such Grantor as debtor and the Agent as secured party and providing a description of the Collateral with respect to which such Grantor has purported to grant a security interest hereunder have been filed in the appropriate offices against such Grantor in the locations listed on Schedule XIII, the Agent will have a fully perfected and, subject to the Intercreditor Agreement, first priority security interest (except as enforceability may be affected by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditor’s rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing), subject only to Liens permitted under the Credit Agreement, in that Collateral of the Grantor in which a security interest may be perfected by filing of an initial financing statement in the appropriate office against such Grantor; provided that (i) the filing of Intellectual Property security agreements with the United States Patent and Trademark Office and the United States Copyright Office may be necessary to perfect the security interest of the Agent in respect of any registered U.S. Patents, U.S. Patent applications, registered or applied for U.S. Trademarks and registered or applied for U.S. Copyrights, (ii) additional filings may be necessary to perfect the Agent’s security interest in any registered U.S. Patents, U.S. Patent applications, registered or applied for U.S. Trademarks and registered or applied for U.S. Copyrights acquired by such Grantor after the date hereof, and (iii) upon completion of the filings referred to in this Section 6(e) and the other actions specified on Schedule XIV, the security interests granted pursuant to this Agreement will constitute valid perfected security interests in all of the Collateral (other than Excluded Property) in favor of the Agent as collateral security for the Secured Obligations.  Notwithstanding the foregoing, nothing in this Agreement shall require any Grantor to make any filings or take any other actions to record or perfect the Agent’s Lien on and security interest in any Intellectual Property outside the United States (or to reimburse the Agent for the same).

(f) All of such Grantor’s locations where Equipment and Inventory having a value in excess of $1,000,000 is located as of the date hereof are specified in Schedule VIII and Schedule IX hereto, respectively (other than Collateral in transit in the ordinary course of business, in use or on display at any trade show, conference or similar event in the ordinary course of business, maintained with customers (or otherwise on the premises of customers) and consignees in the ordinary course of business or in the possession of employees in the ordinary course of business).  Such Grantor has exclusive possession and control of its Inventory, other than Inventory stored at any leased premises or third party warehouse.

(g) None of the Receivables or Agreement Collateral is evidenced by a promissory note or other instrument in excess of $3,750,000 that has not been delivered to the Agent.  All such Receivables or Agreement Collateral valued in excess of $3,750,000 is listed on Schedule III attached hereto.

(h) Subject to the Intercreditor Agreement, all Security Collateral consisting of certificated securities and instruments with an aggregate fair market value in excess of $10,000,000 for all such Security Collateral of the Grantors have been delivered to the Agent.

(i) If such Grantor is an issuer of Security Collateral, such Grantor confirms that it has received notice of the security interest granted hereunder.

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(j) The Pledged Equity pledged by such Grantor hereunder has been duly authorized and validly issued and is fully paid and non-assessable (to the extent such concepts are applicable), provided that the foregoing representation and warranty, insofar as it relates to the Pledged Equity issued by a Person other than a Subsidiary of a Grantor, is made to the knowledge of the Grantors.  Each interest in any limited liability company or limited partnership wholly-owned by such Grantor, pledged hereunder and represented by a certificate is a “security” within the meaning of Article 8 of the UCC and is governed by Article 8 of the UCC and each such interest shall at all times hereafter be represented by a certificate. Each interest in any limited liability company or limited partnership controlled by such Grantor, pledged hereunder and not represented by a certificate either (1) is not a “security” within the meaning of Article 8 of the UCC and is not governed by Article 8 of the UCC and such Grantor shall at no time elect to treat any such interest as a “security” within the meaning of Article 8 of the UCC or issue any certificate representing such interest or (2) is a “security” within the meaning of Article 8 of the UCC and is governed by Article 8 of the UCC and, with respect to any such Pledged Equity having a value in excess of $1,000,000, such Grantor shall have entered into a control agreement with the issuer of such “security” and the Agent to establish Control with respect to such “security.”  The Pledged Debt pledged by such Grantor hereunder has been duly authorized, authenticated or issued and delivered, is the legal, valid and binding obligation of the issuers thereof and, if  evidenced by any promissory notes, such promissory notes have been delivered to the Agent, and is not in default.

(k) The Initial Pledged Equity in Foreign Subsidiaries pledged by such Grantor constitutes, as of the date hereof, 65% of the issued and outstanding equity interests entitled to vote (within the meaning of Treasury Regulation Section 1.956-1) of the issuers thereof indicated on Part I of Schedule I hereto, each of which is a Material First-Tier Foreign Subsidiary.  The Initial Pledged Debt constitutes all of the outstanding Debt for Borrowed Money owed to such Grantor by the issuers thereof (other than intercompany Indebtedness in respect of the KPP Global Settlement).

(l) Such Grantor has no Investment Property with a market value in excess of $1,000,000 as of the date hereof, other than the Investment Property listed on Part IV of Schedule I hereto.

(m) The Assigned Agreements to which such Grantor is a party have been duly authorized, executed and delivered by such Grantor and, to such Grantor’s knowledge, any material Assigned Agreements are in full force and effect and are binding upon and enforceable against all parties thereto in accordance with their terms.

(n) Such Grantor has no deposit accounts or securities accounts as of the date hereof, other than the deposit accounts and securities accounts listed on Schedule II hereto (other than deposit accounts or securities accounts that have less than $750,000 in the aggregate on deposit).

(o) Such Grantor is not a beneficiary or assignee under any letter of credit with a stated amount in excess of $2,500,000 and issued by a United States financial institution as of the date hereof, other than the letters of credit described in Schedule VII hereto.

(p) This Agreement creates in favor of the Agent for the benefit of the Secured Parties a valid security interest in the Collateral granted by such Grantor under this Agreement, securing the payment of the Secured Obligations except to the extent that Control or possession by the Agent is required for the creation of the security interest; all filings and other actions necessary to perfect the security interest in the Collateral granted by such Grantor have been duly made or taken and are in full force and effect other than (i) actions necessary to perfect the Agent’s security interest with respect to Collateral evidenced by a certificate of title or Collateral consisting of vessels or aircraft and (ii) actions necessary to transfer and prior approval of or filings with any governmental entity required in connection with any interest in Pledged Equity.

(q) No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or any other third party is required for (i) the grant by such Grantor of the security interest granted hereunder or for the execution, delivery or performance of this Agreement by such Grantor, (ii) the perfection or maintenance of the security interest created hereunder (including, subject to the Intercreditor Agreement, the first priority nature of such security interest in Collateral), except for (A) the filing of financing and continuation statements under the UCC, (B) the recordation of the Intellectual Property Security Agreement with respect to certain registered Intellectual Property Collateral attached thereto, and the actions described in Section 4 with respect to the Security Collateral, (C) subject to certain corporate actions by the holders or issuers of Non-U.S. Initial Pledged Equity which have not occurred as of the Effective Date, necessary to transfer or assign, (D) the governmental filings required to be made or approvals obtained prior to the creation of a security interest in any Pledged Equity issued by a non-US Person and any filings or approvals required prior to realizing on any such Pledged Equity, and (E) the Control of certain assets as provided in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC, or (iii) the exercise by the Agent of its voting or other rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement, except as set forth above and as may be required in connection with the disposition of any portion of the Security Collateral by laws affecting the offering and sale of securities generally.

(r) The Inventory that has been produced or distributed by such Grantor has been produced in compliance with all requirements of applicable law except where the failure to so comply would not have a Material Adverse Effect.

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(s) As to itself and its Intellectual Property Collateral:

(i) The operation of such Grantor’s business as currently conducted or as contemplated to be conducted and the use of the Intellectual Property Collateral in connection therewith do not conflict with, infringe, misappropriate, dilute, misuse or otherwise violate the intellectual property rights of any third party, except as are not expected to have a Material Adverse Effect.

(ii) Such Grantor is the exclusive owner of all right, title and interest in and to Patents, Trademarks and Copyrights contained in the Intellectual Property Collateral, except as set forth in Schedule IV Part I hereto with respect to co-ownership of certain Patents, and such Grantor is entitled to use all such Intellectual Property Collateral in accordance with applicable law, subject to the terms of the IP Agreements.

(iii) The Intellectual Property Collateral set forth on Schedule IV Part I hereto includes all of the registered patents, patent applications, domain names, trademark registrations and applications, copyright registrations and applications owned by such Grantor as of the date set forth therein.

(iv) The issued Patents and registered Trademarks contained in the Intellectual Property Collateral have not been adjudged invalid or unenforceable in whole or part, and to the knowledge of the Company, are valid and enforceable, except to the extent Grantor has ceased use of any such registered Trademarks, and except as would not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

(v) Such Grantor has made or performed all filings, recordings and other acts and has paid all required fees and taxes, as deemed necessary by Grantor in its reasonable business discretion, to maintain and protect its interest in each and every material item of Intellectual Property Collateral owned by such Grantor in full force and effect.

(vi) No claim has been asserted and is pending by any Person challenging or questioning the use of any Intellectual Property Collateral or the validity of effectiveness of any such Intellectual Property Collateral, nor does the Company know of any valid basis for any such claim, except, in either case, for such claims that in the aggregate are not reasonably expected to have a Material Adverse Effect.  The conduct of the business of the Company and its Subsidiaries does not infringe on the rights of any Person except for such claims and infringements that, in the aggregate, are not reasonably expected to have a Material Adverse Effect.  The consummation of the transactions contemplated by the Loan Documents will not result in the termination or impairment (other than impairment contemplated by the Loan Documents) of any of the Intellectual Property Collateral.

(vii) Except as set forth on Schedule IV Part II hereto, with respect to each IP Agreement that is not Excluded Property: (A) to the knowledge of the Company, such IP Agreement is valid and binding and in full force and effect; (B) such IP Agreement will not cease to be valid and binding and in full force and effect on terms identical to those currently in effect as a result of the rights and interest granted herein, nor will the grant of such rights and interest constitute a breach or default under such IP Agreement or otherwise give any party thereto a right to terminate such IP Agreement; (C) such Grantor has not received any notice of termination or cancellation under such IP Agreement within the six months immediately preceding the date of this Agreement; (D) within the six months immediately preceding the date of this Agreement, such Grantor has not received any notice of a breach or default under such IP Agreement, which breach or default has not been cured; and (E) neither such Grantor nor, to such Grantor’s knowledge, any other party to such IP Agreement is in breach or default thereof in any material respect, and no event has occurred that, with notice or lapse of time or both, would constitute such a breach or default or permit termination or modification under such IP Agreement, in each case as would not reasonably be expected to have a Material Adverse Effect.

(viii) To the Company’s knowledge, none of the material Trade Secrets of such Grantor has been used, divulged, disclosed or appropriated to the detriment of such Grantor for the benefit of any other Person other than such Grantor within the past two years.

(ix) This Agreement is effective to create a valid and continuing Lien and, upon filing of appropriate financing statements in the offices listed on Schedule XIII and appropriate releases (which releases have been filed or will be filed substantially simultaneously with the entering into of this Agreement) and Intellectual Property security agreements with the United States Copyright Office and the United States Patent and Trademark Office (to the extent a security interest may be perfected by filing, recording or registering a security agreement, financing statement or analogous document in the United States Copyright Office or the United States Patent and Trademark Office, as applicable), fully perfected and, subject to the Intercreditor Agreement, first priority security interests in favor of the Agent on such Grantor’s U.S. Patents, U.S. Trademarks and U.S. Copyrights and such perfected security interests are enforceable as such as against any and all creditor of and purchasers from such Grantor.

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Section 7. Further Assurances.

(a) Each Grantor agrees that from time to time, in accordance with the terms of this Agreement at the expense of such Grantor and at the reasonable request of the Agent, such Grantor will promptly execute and deliver, or otherwise authenticate, all further instruments and documents, and take all further action that may be reasonably necessary or desirable, or that the Agent may reasonably request, in order to perfect and protect any pledge or security interest granted or purported to be granted by such Grantor hereunder or to enable the Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral of such Grantor. Without limiting the generality of the foregoing, each Grantor will, at the reasonable request of the Agent, promptly with respect to the Collateral of such Grantor:  (i) mark conspicuously each document included in Inventory, each chattel paper included in Receivables each Assigned Agreement and, at the request of the Agent, each of its records pertaining to such Collateral with a legend, in form and substance reasonably satisfactory to the Agent, indicating that such document, Assigned Agreement or Collateral is subject to the security interest granted hereby; if any such Collateral shall be evidenced by a promissory note or other instrument or chattel paper, deliver and pledge to the Agent hereunder such note or instrument or chattel paper duly indorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance reasonably satisfactory to the Agent; (iii) file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be reasonably necessary or desirable, or as the Agent may reasonably request, in order to perfect and preserve the security interest granted or purported to be granted by such Grantor hereunder; (iv) prepare, sign, and file for recordation in any intellectual property registry, appropriate evidence of the lien and security interest granted herein in any Intellectual Property in the name of such Grantor as debtor; and (v) deliver to the Agent evidence that all other actions that the Agent may deem reasonably necessary or desirable in order to perfect and protect the security interest granted or purported to be granted by such Grantor under this Agreement has been taken.

(b) Each Grantor hereby authorizes the Agent to file one or more financing or continuation statements, and amendments thereto in the applicable UCC filing office, including one or more financing statements indicating that such financing statements cover all assets or all personal property (or words of similar effect) of such Grantor in the United States, or any real property or fixtures, regardless of whether any particular asset described in such financing statements falls within the scope of the UCC.  A photocopy or other reproduction of this Agreement shall be sufficient as a financing statement where permitted by law.  Each Grantor ratifies its authorization for the Agent to have filed such financing statements, continuation statements or amendments filed prior to the date hereof.

(c) Each Grantor will furnish to the Agent from time to time statements and schedules further identifying and describing the Collateral of such Grantor and such other reports in connection with such Collateral as the Agent may reasonably request, all in reasonable detail.

Section 8. As to Equipment and Inventory. (a)  Each Grantor will keep its Equipment having a value in excess of $1,000,000 and Inventory having a value in excess of $1,000,000 (other than Inventory sold in the ordinary course of business) at the locations therefor specified in Schedule VIII and Schedule IX, respectively, or, upon 30 days’ prior written notice to the Agent (or such lesser time as may be agreed by the Agent), at such other places designated by such Grantor in such notice.  Schedule VIII and Schedule IX respectively set forth whether each such location is owned, leased or operated by third parties, and, if leased or operated by third parties, their names and addresses.

(b) Each Grantor will pay promptly when due all property and other taxes, assessments and governmental charges or levies imposed upon, and all claims (including claims for labor, materials and supplies) against, its Equipment and Inventory, except to the extent payment thereof is not required by Section 5.01(b) of the Credit Agreement.  In producing its Inventory, each Grantor will comply with all requirements of applicable law, except where the failure to so comply will not have a Material Adverse Effect.

Section 9. Insurance. (a)  Each Grantor will, and will cause each Restricted Subsidiary to, at its own expense, maintain, insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Company or such Restricted Subsidiary operates; provided, that, the Company and its Restricted Subsidiaries may self-insure to the extent consistent with prudent business practice. Each policy of each Grantor for liability insurance shall provide for all losses to be paid on behalf of the Agent and such Grantor as their interests may appear, and each policy for property damage insurance shall provide for all losses to be paid, in accordance with the Credit Agreement, the Intercreditor Agreement and the Lender loss payee provisions which were requested pursuant to clause (iv) below, directly to the Agent. Each such policy shall in addition (i) name such Grantor and the Agent as insured parties thereunder (without any representation or warranty by or obligation upon the Agent) as their interests may appear, (ii) provide that (A) there shall be no recourse against the Agent for payment of premiums or other amounts with respect thereto and (B) if agreed by the insurer (which agreement such Grantor shall use commercially reasonable efforts to obtain), at least 10 days’ prior written notice of cancellation or of lapse shall be given to the Agent by the insurer, and (iv) contain such other customary lender loss payee provisions as the Agent shall reasonably request.  Each Grantor will, if so requested by the Agent, deliver to the Agent certificates of insurance evidencing such insurance and, as often as the Agent may reasonably request, a report of a reputable insurance broker or the insurer with respect to such insurance.  Further, each Grantor will, at the request of the Agent, duly execute 

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and deliver instruments of assignment of such insurance policies to comply with the requirements of Section 1(l) and cause the insurers to acknowledge notice of such assignment. Each Grantor will, if so requested by the Agent, deliver to the Agent certificates of insurance evidencing such insurance and, as often as the Agent may reasonably request, a report of a reputable insurance broker or the insurer with respect to such insurance.  Further, each Grantor will, at the request of the Agent, duly execute and deliver instruments of assignment of such insurance policies to comply with the requirements of Section 1(k) and 1(l) and use its commercially reasonable efforts to cause the insurers to acknowledge notice of such assignment.

(b) In case of any loss involving damage to Equipment or Inventory when subsection (c) of this Section 9 is not applicable, the applicable Grantor, to the extent determined to be in the business interest of such Grantor, will make or cause to be made the necessary repairs to or replacements of such Equipment or Inventory, and any proceeds of insurance properly received by or released to such Grantor shall be used by such Grantor, except as otherwise required hereunder or by the Credit Agreement, to pay or as reimbursement for the costs of such repairs or replacements or, if such Grantor determines not to repair or replace such Equipment or Inventory, treat the loss or damage as a disposition under Section 5.02(e)(vii) of the Credit Agreement.

Section 10. Post-Closing Changes; Collections on Assigned Agreements and Receivables. (a)  If any Grantor changes its name, type of organization, jurisdiction of organization or organizational identification number from those set forth in Schedule V of this Agreement it will give written notice to the Agent within 15 days of such change and will take all action reasonably required by the Agent for the purpose of perfecting or protecting the security interest granted by this Agreement.  Each Grantor will hold and preserve its records relating to the Collateral, including the Assigned Agreements and Related Contracts, and will permit representatives of the Agent at any time during normal business hours to inspect and make abstracts from such records and other documents to the extent provided in Section 5.01(e) of the Credit Agreement.  If any Grantor does not have an organizational identification number and later obtains one, it will promptly notify the Agent of such organizational identification number.

(b) Agent shall have the right at any time or times, in Agent’s name or in the name of a nominee of Agent, to verify the validity, amount or any other matter relating to any Receivables or other Collateral, by mail, telephone, facsimile transmission or otherwise (provided any visits shall be done during normal business hours and at times to be mutually agreed).  Except as otherwise provided in this subsection (b), each Grantor, at its own expense and in the ordinary course of business undertaken in a commercially reasonable manner and consistent with applicable law, will continue to collect, adjust, settle, compromise the amount or payment of, all amounts due or to become due such Grantor under the Assigned Agreements and Receivables.  In connection with such collections, adjustments, settlements, compromises and other exercises of rights, such Grantor may take (and, at the Agent’s direction upon the occurrence and during the continuance of an Event of Default, will take) such action as such Grantor (or, upon the occurrence and during the continuance of an Event of Default, the Agent) may deem necessary or advisable; provided, that, the Agent shall have the right at any time, upon the occurrence and during the continuance of an Event of Default and upon written notice to such Grantor of its intention to do so, to notify the Obligors under any Assigned Agreements and Receivables of the assignment of such Assigned Agreements to the Agent and to direct such Obligors to make payment of all amounts due or to become due to such Grantor thereunder directly to the Agent and, upon such notification and at the expense of such Grantor, to enforce collection of any such Assigned Agreements and Receivables, to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done, and to otherwise exercise all rights with respect to such Assigned Agreements and Receivables, including those set forth in Section 9-607 of the UCC.  After receipt by any Grantor of the notice from the Agent referred to in the proviso to the preceding sentence, (i) all amounts and proceeds (including instruments) received by such Grantor in respect of the Assigned Agreements and Receivables of such Grantor shall be received in trust for the benefit of the Secured Parties, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Agent in the same form as so received (with any necessary indorsement) to be deposited in the Agent Sweep Account in the United States and applied as provided in Section 19(b) of this Agreement or as provided in Section 2.18(h) of the Credit Agreement, and (ii) such Grantor will not adjust, settle or compromise the amount or payment of any Receivable or amount due on any Assigned Agreement, release wholly or partly any Obligor thereof or allow any credit or discount thereon other than credits or discounts given in the ordinary course of business.

(c) No Grantor will authorize the filing of any financing statement naming it as debtor covering all or any portion of the Collateral owned by it, except for financing statements (i) naming the Agent on behalf of the Secured Parties as the secured party, and (ii) in respect to other Liens permitted by the Credit Agreement.  Each Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement naming the Agent as secured party without the prior written consent of the Agent, subject to such Grantor’s rights under the UCC.

Section 11. As to Intellectual Property Collateral. (a)  With respect to each item of its Intellectual Property Collateral material to the business of the Company and its Restricted Subsidiaries, each Grantor agrees to take, at its expense, commercially reasonable steps as determined in Grantor’s reasonable discretion, including in the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other Governmental Authority, to (i) maintain (in accordance with the exercise of such Grantor’s reasonable business discretion) the validity and enforceability of such Intellectual Property Collateral and maintain such Intellectual Property Collateral in full force and effect, and (ii) pursue the registration and maintenance (in accordance with the exercise of such Grantor’s reasonable business discretion) of each patent, trademark, or copyright registration or application, now or hereafter included in such Intellectual Property 

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Collateral of such Grantor, including the payment of required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and Trademark Office, the U.S. Copyright Office or other Governmental Authorities, the filing of applications for renewal or extension, the filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, and the participation in interference, reexamination, opposition, cancellation, infringement and misappropriation proceedings, in each case except where the failure to so file, register or maintain is not reasonably likely to have a Material Adverse Effect.  No Grantor shall, without the written consent of the Agent, which shall not be unreasonably withheld or delayed, discontinue use of any material Trademark or otherwise abandon any such material Intellectual Property Collateral unless such Grantor shall have determined that such use or the pursuit or maintenance of such Intellectual Property Collateral is no longer material to the conduct of such Grantor’s business.

(b) Until the termination of the Credit Agreement, each Grantor agrees to provide to the Agent, concurrently with any delivery of Financial Statements pursuant to Section 5.01(h)(ii) of the Credit Agreement, an updated Schedule of its registered U.S. Patents, U.S. Patent applications, registered or applied for U.S. Trademarks and registered or applied for U.S. Copyrights.

(c) In the event that any Grantor becomes aware that any item of Intellectual Property Collateral is being infringed or misappropriated by a third party, such Grantor shall take such commercially reasonable actions determined in its reasonable discretion, at its expense, to protect or enforce such Intellectual Property Collateral, including suing for infringement or misappropriation and for an injunction against such infringement or misappropriation.

(d) Each Grantor shall take all reasonable steps which it deems appropriate under the circumstances to preserve and protect each item of its material Trademarks included in the Intellectual Property Collateral, including maintaining substantially the quality of any and all products or services used or provided in connection with any such Trademarks, consistent with the general quality of the products and services as of the date hereof, and taking steps reasonably necessary to ensure that all licensed users of any such Trademarks use such consistent standards of quality.

(e) With respect to its Intellectual Property Collateral, each Grantor agrees to execute or otherwise authenticate an agreement, in substantially the form set forth in Exhibit A hereto or otherwise in form and substance satisfactory to the Agent (an “Intellectual Property Security Agreement”), for recording the security interest granted hereunder to the Agent in such Intellectual Property Collateral with the U.S. Patent and Trademark Office, the U.S. Copyright Office, and any other Governmental Authorities necessary to perfect the security interest hereunder in such Intellectual Property Collateral.

(f) Each entity which executes a Security Agreement Supplement as Grantor shall execute and deliver to the Agent with such written notice, or otherwise authenticate, an agreement substantially in the form of Exhibit B hereto or otherwise in form and substance satisfactory to the Agent (an “IP Security Agreement Supplement”) covering such Intellectual Property, which IP Security Agreement Supplement shall be recorded with the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other Governmental Authorities necessary to perfect the security interest hereunder in such Intellectual Property.

Section 12. Voting Rights; Dividends; Etc. So long as no Event of Default shall have occurred and be continuing:

(i) Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of such Grantor or any part thereof for any purpose.

(ii) Each Grantor shall be entitled to receive and retain any and all dividends, interest and other distributions paid in respect of the Security Collateral of such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Loan Documents; provided, that, any and all dividends, interest and other distributions paid or payable in the form of instruments or certificates in respect of, or in exchange for, any Security Collateral, shall be promptly delivered to the Agent to hold as Security Collateral (to the extent it is not Excluded Property) and shall, if received by such Grantor, be received in trust for the benefit of the Secured Parties, be segregated from the other property or funds of such Grantor and be promptly delivered to the Agent as Security Collateral in the same form as so received (with any necessary indorsement).

(iii) The Agent will execute and deliver (or cause to be executed and delivered) to each Grantor all such proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above and to receive the dividends or interest payments that it is authorized to receive and retain pursuant to paragraph (ii) above.

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(b) Upon the occurrence and during the continuance of an Event of Default:

(i) All rights of each Grantor (A) to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 12(a)(i) shall, upon notice to such Grantor by the Agent, cease and (B) to receive the dividends, interest and other distributions that it would otherwise be authorized to receive and retain pursuant to Section 12(a)(ii) shall automatically cease, and all such rights shall, subject to the Intercreditor Agreement, thereupon become vested in the Agent for the benefit of the Secured Parties, which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights and to receive and hold as Security Collateral such dividends, interest and other distributions.

(ii) All dividends, interest and other distributions that are received by any Grantor contrary to the provisions of paragraph (i) of this Section 12(b) shall be received in trust for the benefit of the Secured Parties, shall be segregated from other funds of such Grantor and shall be promptly paid over to the Agent as Security Collateral in the same form as so received (with any necessary indorsement).

Section 13. As to the Assigned Agreements.

(a) Each Grantor will at its expense:

(i) perform and observe in all material respects all terms and provisions of the Assigned Agreements to be performed or observed by it to the extent consistent with its past practice or reasonable business judgment, maintain the Assigned Agreements to which it is a party in full force and effect, enforce the Assigned Agreements to which it is a party in accordance with the terms thereof and take all such action to such end as may be requested from time to time by the Agent; and

(ii) furnish to the Agent promptly upon receipt thereof copies of all notices of defaults relating to agreements involving monetary liability of or to any Person in an amount in excess of $5,000,000 received by such Grantor under or pursuant to the Assigned Agreements to which it is a party, and from time to time (A) furnish to the Agent such information and reports regarding the Assigned Agreements and such other Collateral of such Grantor as the Agent may reasonably request and (B) upon request of the Agent, make to each other party to any Assigned Agreement to which it is a party such demands and requests for information and reports or for action as such Grantor is entitled to make thereunder.

(b) Each Grantor hereby consents on its behalf and on behalf of its Subsidiaries to the assignment and pledge to the Agent for benefit of the Secured Parties of each Assigned Agreement to which it is a party by any other Grantor hereunder.

(c) Each Grantor agrees, upon the reasonable request of Agent, to instruct each other party to each Assigned Agreement to which it is a party, that all payments due or to become due under or in connection with such Assigned Agreement will be made directly to a Pledged Deposit Account.

(d) All moneys received or collected pursuant to subsection (c) above shall be (i) released to the applicable Grantor on the terms set forth in the Credit Agreement so long as no Event of Default shall have occurred and be continuing or (ii) if any Event of Default shall have occurred and be continuing, applied as provided in Section 19(b).

Section 14. As to Letter-of-Credit Rights and Commercial Tort Claims. (a)  Except as otherwise permitted by the Credit Agreement and this Agreement, each Grantor, by granting a security interest in its Receivables consisting of letter-of-credit rights to the Agent, hereby assigns to the Agent such rights (including its contingent rights) to the proceeds of all Related Contracts consisting of letters of credit of which it is or hereafter becomes a beneficiary or assignee.  Upon request of the Agent, each Grantor will promptly use commercially reasonable efforts to cause the issuer of each letter-of-credit with a stated amount in excess of $2,500,000 and each nominated person (as defined in Section 5-102 of the UCC) (if any) with respect thereto to consent to such assignment of the proceeds thereof pursuant to a consent in form and substance reasonably satisfactory to the Agent and deliver written evidence of such consent to the Agent.

(b) Upon the occurrence and during the continuance of an Event of Default, each Grantor will, promptly upon request by the Agent, (i) notify (and such Grantor hereby authorizes the Agent to notify) the issuer and each nominated person with respect to each of the Related Contracts consisting of letters of credit that the proceeds thereof have been assigned to the Agent hereunder and any payments due or to become due in respect thereof are to be made directly to the Agent or its designee and (ii) arrange for the Agent to become the transferee beneficiary of letter of credit.

(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 $5,000,000 in the aggregate, it shall, promptly after such claim has been filed with such court, deliver a supplement to Schedule X hereto, identifying such new commercial tort claim.

12

Section 15. Transfers and Other Liens; Additional Shares. (a)  Each Grantor agrees that it will not (i) sell, assign or otherwise dispose of, or grant any option with respect to, any of the Collateral, other than sales, assignments and other dispositions of Collateral, and options relating to Collateral, permitted under the terms of the Credit Agreement or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral of such Grantor except for the pledge, assignment and security interest created under this Agreement and Liens permitted under the Credit Agreement.

(b) Subject to the terms of the Credit Agreement and this Agreement, each Grantor agrees that it will (i) cause each issuer of the Pledged Equity pledged by such Grantor not to issue any equity interests or other securities in addition to or in substitution for the Pledged Equity issued by such issuer except to such Grantor or its Affiliates, and (ii) pledge hereunder, promptly upon its acquisition (directly or indirectly) thereof, any and all additional equity interests or other securities as required by Section 5.01(i) of the Credit Agreement from time to time acquired by such Grantor in any manner.

Section 16.Agent Appointed Attorney in Fact. Each Grantor hereby irrevocably appoints the Agent such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time, in the Agent’s discretion, to take any action and to execute any instrument that the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including:

(a) to obtain, an upon the occurrence and during the continuance of an Event of Default, adjust insurance required to be paid to the Agent pursuant to Section 9,

(b) upon the occurrence and during the continuation of any Event of Default, to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral,

(c) upon the occurrence and during the continuance of a Cash Control Trigger Event, to receive, indorse and collect any drafts or other instruments, documents and chattel paper, in connection with clause (a) or (b) above,

(d) upon the occurrence and during the continuation of any Event of Default to file any claims or take any action or institute any proceedings that the Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce compliance with the terms and conditions of any Assigned Agreement or the rights of the Agent with respect to any of the Collateral;

(e) upon the occurrence and during the continuation of any Event of Default, to use any Intellectual Property or IP Agreements (solely pursuant to the terms thereof) that are not Excluded Property of such Grantor, including any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, or advertising matter, in preparing for sale, advertising for sale, or selling Inventory or other Collateral;

(f) to take or cause to be taken all actions necessary to perform or comply or cause performance or compliance with the terms of this Agreement, including actions to pay or discharge taxes or Liens (other than Permitted Liens) levied or placed upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by Agent in its sole discretion, any such payments made by Agent to become obligations of such Grantor to Agent, due and payable immediately without demand;

(g) (i) upon the occurrence and during the continuation of any Event of Default, generally to sell, transfer, lease, license, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though Agent were the absolute owner thereof for all purposes, and (ii) to do, at Agent’s option and such Grantor’s expense, at any time or from time to time, all acts and things that Agent deems reasonably necessary to protect, preserve or realize upon the Collateral and Agent’s security interest therein in order to effect the intent of this Agreement, all as fully and effectively as such Grantor might do;

(h) upon the occurrence and during the continuation of any Event of Default, to repair, alter, or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any Person obligated to the Borrower or such other Grantor in respect of any Account of the Borrower or such other Grantor; and

(i) upon the occurrence and during the continuance of any Event of Default, to take exclusive possession of all locations where the Borrower or other Grantor conducts its business or has rights of possession, with prompt notice to the Borrower or any Grantor and to use such locations to store, process, manufacture, sell, use, and liquidate or otherwise dispose of items that are Collateral, without obligation to pay rent or other compensation for the possession or use of any location.

13

Section 17. Agent May Perform. If any Grantor fails to perform any agreement contained herein, the Agent may, but without any obligation to do so, upon notice to the Company of at least five Business Days in advance and if the Company fails to cure within such period, itself perform, or cause performance of, such agreement, and the expenses of the Agent incurred in connection therewith shall be payable by such Grantor under Section 21.

Section 18. The Agent’s Duties. (a)  The powers conferred on the Agent hereunder are solely to protect the Secured Parties’ interest in the Collateral and shall not impose any duty upon it to exercise any such powers.  Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral.  The Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which it accords its own property.

(b) Anything contained herein to the contrary notwithstanding, the Agent may from time to time, when the Agent deems it to be necessary, appoint one or more of its Affiliates (or, with the consent of the Company, any other Persons) subagents (each a “Subagent”) for the Agent hereunder with respect to all or any part of the Collateral.  In the event that the Agent so appoints any Subagent with respect to any Collateral, (i) the assignment and pledge of such Collateral and the security interest granted in such Collateral by each Grantor hereunder shall be deemed for purposes of this Agreement to have been made to such Subagent, in addition to the Agent, for the benefit of the Secured Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall automatically be vested, in addition to the Agent, with all rights, powers, privileges, interests and remedies of the Agent hereunder with respect to such Collateral, and (iii) the term “Agent,” when used herein in relation to any rights, powers, privileges, interests and remedies of the Agent with respect to such Collateral, shall include such Subagent; provided, however, that no such Subagent shall be authorized to take any action with respect to any such Collateral unless and except to the extent expressly authorized in writing by the Agent.

Section 19. Remedies. If any Event of Default shall have occurred and be continuing and such Event of Default has resulted in the acceleration of the Secured Obligations, which acceleration has not been rescinded or otherwise terminated:

(a) The Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and also may:  (i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Agent forthwith, assemble all or part of the Collateral as directed by the Agent and make it available to the Agent at a place and time to be designated by the Agent that is reasonably convenient to both parties; (ii) subject to applicable law, without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Agent may deem commercially reasonable; (iii) occupy, consistent with Section 5.01(e) of the Credit Agreement, on a non-exclusive basis any premises owned or 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; and (iv) exercise any and all rights and remedies of any of the Grantors under or in connection with the Collateral, or otherwise in respect of the Collateral, including (A) any and all rights of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, the Assigned Agreements, the Receivables and the other Collateral, (B) withdraw, or cause or direct the withdrawal, of all funds with respect to the Account Collateral, and (C) exercise all other rights and remedies with respect to the Assigned Agreements, the Receivables and the other Collateral, including those set forth in Section 9-607 of the UCC. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to such Grantor of the time and place of any public sale, or of the time after which any private sale is to be made shall constitute reasonable notification.  The Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  Each Grantor agrees that (A) the internet shall constitute a “place” for purposes of Section 9-610(b) of the UCC and (B) to the extent notification of sale shall be required by law, notification by mail of the URL where a sale will occur and the time when a sale will commence at least ten (10) days prior to the sale shall constitute a reasonable notification for purposes of Section 9-611(b) of the UCC.

(b) Any cash held by or on behalf of the Agent and all cash proceeds received by or on behalf of the Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of the Agent, be held by the Agent as collateral for, and/or then or at any time thereafter shall be applied in whole or in part by the Agent for the benefit of the Secured Parties against, all or any part of the Secured Obligations, in accordance with Section 6.04 of the Credit Agreement.

14

(c) All payments received by any Grantor under or in connection with any Assigned Agreement or otherwise in respect of the Collateral shall be received in trust for the benefit of the Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Agent in the same form as so received (with any necessary indorsement).

(d) Subject to the provisions of Section 9.06 of the Credit Agreement, the Agent may, without notice to any Grantor except as required by law and at any time or from time to time, charge, set off and otherwise apply all or any part of the Secured Obligations against any funds held with respect to the Account Collateral or in any other deposit account.

(e) In the event of any sale or other disposition of any of the Intellectual Property Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to such sale or other disposition shall be included therein, and such Grantor shall supply to the Agent or its designee, documents and things relating to any Intellectual Property Collateral subject to such sale or other disposition, and such Grantor’s customer lists and other records and documents relating to such Intellectual Property Collateral and to the manufacture, distribution, advertising and sale of products and services of such Grantor.

(f) In each case under this Agreement in which the Agent takes any action with respect to the Collateral, including proceeds, the Agent shall provide to the Company such records and information regarding the possession, control, sale and any receipt of amounts with respect to such Collateral as may be reasonably requested by the Company as a basis for the preparation of the company’s financial statements in accordance with GAAP.

Section 20. Grant of Intellectual Property License. For the purpose of enabling Agent, upon the occurrence and during the continuance of an Event of Default, to exercise rights and remedies under Section 19 hereof at such time as Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to Agent, to the extent assignable, an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to such Grantor), subject, in the case of Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor to avoid the risk of invalidation of such Trademarks, to use, assign, license or sublicense any of the Intellectual Property, including any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, and advertising matter, now owned or hereafter acquired, developed or created by such Grantor, wherever the same may be located.  Such license shall include access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout hereof, solely to the extent such Grantor has all rights necessary to provide such access.

Section 21. Indemnity and Expenses. (a)  Each Grantor agrees to indemnify, defend and save and hold harmless each Secured Party and each of their Affiliates and their respective officers, directors, employees, trustees, agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or resulting from this Agreement (including enforcement of this Agreement), except to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct.

(b) Each Grantor will upon demand pay to the Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, that the Agent may incur in connection with (i) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral of such Grantor, (ii) the exercise or enforcement of any of the rights of the Agent or the other Secured Parties hereunder or (iii) the failure by such Grantor to perform or observe any of the provisions hereof.

Section 22. Amendments; Waivers; Additional Grantors; Etc. (a)  No amendment or waiver of any provision of this Agreement, and no consent to any departure by any Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Agent and, with respect to any amendment, the Company on behalf of the Grantors, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  No failure on the part of the Agent or any other Secured Party to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.

(b) Upon the execution and delivery by any Person of a security agreement supplement in substantially the form of Exhibit C hereto (each a “Security Agreement Supplement”), such Person shall be referred to as an “Additional Grantor” and shall be and become a Grantor hereunder, and each reference in this Agreement and the other Loan Documents to “Grantor” shall also mean and be a reference to such Additional Grantor, each reference in this Agreement and the other Loan Documents to the “Collateral” shall also mean and be a reference to the Collateral granted by such Additional Grantor and each reference in this Agreement to a Schedule shall also mean and be a reference to the schedules attached to such Security Agreement Supplement.

15

Section 23. Confidentiality; Notices; References. (a)  The confidentiality provisions of Section 9.09 of the Credit Agreement shall apply to all information received by the Agent or any Lender under this Agreement.

(b) All notices and other communications provided for hereunder shall be delivered as provided in Section 9.02 of the Credit Agreement.

(c) The definitions of certain terms used in this Agreement are set forth in the following locations:

 

	
Account Collateral
	
Section 1(f)

	
Additional Grantor
	
Section 22(b)

	
Agreement
	
Preamble

	
Agreement Collateral
	
Section 1(e)

	
Assigned Agreements
	
Section 1(e)

	
Borrower
	
Preamble

	
Collateral
	
Section 1

	
Copyrights
	
Section 1 (g)(iii)

	
Credit Agreement
	
Recitals (1)

	
Equipment
	
Section 1(a)

	
Excluded Property
	
Section 1

	
Grantor, Grantors
	
Preamble

	
Indemnified Party
	
Section 21(a)

	
Initial Pledged Equity
	
Recitals (4)

	
Initial Pledged Debt
	
Recitals (5)

	
Intellectual Property Collateral
	
Section 1(g)

	
Intellectual Property Security Agreement
	
Section 11(e)

	
Inventory
	
Section 1(b)

	
Intercreditor Agreement
	
Section 29

	
Investment Property
	
Section 1(d)(vi)

	
IP Agreements
	
Section 1(g)(v)

	
IP Security Agreement Supplement
	
Section 11

	
Lenders
	
Recitals (1)

	
Patents
	
Section 1(g)(i)

	
Pledged Debt
	
Section 1(d)(iv)

	
Pledged Deposit Accounts
	
Recitals (5)

	
Pledged Equity
	
Section 1(d)(iii)

	
Receivables
	
Section 1(c)

	
Related Contracts
	
Section 1(c)

	
Secured Obligations
	
Section 2

	
Security Agreement Supplement
	
Section 22(b)

	
Security Collateral
	
Section 1(d)

	
Subagent
	
Section 18(b)

	
Trademarks
	
Section 1(g)(ii)

	
Trade Secrets
	
Section 1(g)(iii)

	
UCC
	
Recitals (10)

	
URLs
	
Section 1(g)(ii)

 

Section 24. Continuing Security Interest; Assignments Under the Credit Agreement. This Agreement shall create a continuing security interest in the Collateral and shall (a) except as otherwise provided in Section 9.16 of the Credit Agreement, remain in full force and effect until the latest of (i) the payment in full in cash of the Secured Obligations, (ii) the Termination Date and (iii) the termination, expiration, Cash Collateralization or backstopping of all Letters of Credit, (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the rights and remedies of the Agent hereunder, to the benefit of the Secured Parties and their respective successors, permitted transferees and permitted assigns.  Without limiting the generality of the foregoing clause (c), to the extent permitted in Section 9.08 of the Credit Agreement, any Lender may assign or otherwise transfer all or any portion of its rights and obligations under the Credit Agreement (including all or any portion of its Commitments, the Revolving Loans owing to it and the Note or Notes, if any, held by it) to any permitted transferee, and such permitted transferee shall thereupon become vested with all the benefits in respect thereof granted to such Lender herein or otherwise.

16

Section 25. Release; Termination. (a)  (i)  Upon (A) any Disposition of any item of Collateral of any Grantor as permitted by the Loan Documents, and (B) any Subsidiary that is not an Excluded Subsidiary becoming an Excluded Subsidiary in a manner permitted by the Loan Documents, and (ii) upon any Foreign Subsidiary ceasing to be a Material First-Tier Foreign Subsidiary in a manner permitted by the Loan Documents, and, in each case (other than with respect to Dispositions of Collateral not comprising TMM Assets), receipt by the Agent of a written certification by Borrower that such Disposition or other event, as applicable, is permitted under the terms of the Loan Documents (which written certification the Agent shall be entitled to rely conclusively without further inquiry), then in the case of the foregoing clause (i), the security interests granted under this Agreement by such Grantor in such Collateral or in the assets of such Subsidiary, as applicable, shall immediately terminate and automatically be released, and in the case of the foregoing clause (ii), the security interests granted under this Agreement in the equity interests of such Foreign Subsidiary shall immediately terminate and automatically be released, and Agent will, in each case and subject to the Intercreditor Agreement, promptly deliver at the Grantor’s request to such Grantor all certificates representing any Pledged Equity released and all notes and other instruments representing any Pledged Debt, Receivables or other Collateral so released, and Agent will, at such Grantor’s expense, promptly execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted hereby; provided, that, no such documents shall be required unless such Grantor shall have delivered to the Agent, at least five Business Days prior to the date such documents are required by Grantor, or such lesser period of time agreed by the Agent, a written request for release describing the item of Collateral and the consideration to be received in the sale, transfer or other disposition and any expenses in connection therewith, together with a form of release for execution by the Agent (which form shall be reasonably acceptable to the Agent) and a certificate of such Grantor to the effect that the transaction will be in compliance with the Loan Documents.

(b) The pledge and security interest granted hereby will be terminated as set forth in Section 9.16(b) of the Credit Agreement and upon such termination all rights to the Collateral shall revert to the applicable Grantor and the Agent will promptly deliver to the applicable Grantors all certificates representing any Pledged Equity or Pledged Debt, Receivables or other Collateral.

Section 26. Execution in Counterparts. This Agreement 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 Agreement by telecopier or .pdf shall be effective as delivery of an original executed counterpart of this Agreement.

Section 27. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

Section 28. Jurisdiction; Waiver of Jury Trial. (a)  Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the extent permitted by law, in such federal court.  Each Grantor hereby further irrevocably consents to the service of process in any action or proceeding in such courts by the mailing thereof by any parties hereto by registered or certified mail, postage prepaid, to the Borrower at its address specified pursuant to Section 9.02 of the Credit Agreement.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement in the courts of any jurisdiction.

(b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any New York State or federal court.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

(c) Each of the parties hereto hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or the actions of the Agent or any Secured Party in the negotiation, administration, performance or enforcement thereof.

17

Section 29. Intercreditor Agreement. Notwithstanding anything herein to the contrary, the Lien granted to the Agent, for the benefit of the Secured Parties, pursuant to this Security Agreement and the exercise of any right or remedy by the Agent and the other Secured Parties hereunder are subject to the provisions of the Intercreditor Agreement, dated as of the Initial Closing Date, among the Agent, as ABL Agent, JPMorgan Chase Bank, N.A, as Exit First Lien Term Loan Agent, Barclays Bank PLC, as Exit Second Lien Term Loan Agent, the Company and the Guarantors (the “Intercreditor Agreement”).  In the event of any conflict or inconsistency between the provisions of the Intercreditor Agreement and this Security Agreement, the provisions of the Intercreditor Agreement shall control.  Notwithstanding anything herein to the contrary, any provision hereof that requires any Grantor to (a) deliver any Collateral to the Agent or (b) cause the Agent to have Control over such Collateral, may be satisfied prior to the Maturity Date by (i) the delivery of such Collateral by such Grantor to the Agent for the benefit of itself and the Lenders and (ii) providing that the Agent be provided with Control with respect to such Collateral of such Grantor for the benefit of the itself and the other Credit Parties.

Section 30. Continuation of Security Interests; No Novation. All security interests, Liens and obligations created by the Existing Security Agreement are continued in full force and effect under this Agreement.  This Agreement amends and restates the Existing Security Agreement in its entirety and shall not be deemed to constitute a novation of the Existing Security Agreement.

[Remainder of Page Intentionally Left Blank]

 

 

 

18

IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

 

		
	
EASTMAN KODAK COMPANY

	
 

	
By: 
	
/s/ William G. Love

	
Name:
	
William G. Love

	
Title:
	
Treasurer

 

	
	
Address for Notices:

	
 

	
Eastman Kodak Company

	
345 State Street

	
Rochester, NY 14650

	
 

	
FAR EAST DEVELOPMENT LTD.

	
FPC INC.

	
KODAK (NEAR EAST), INC.

	
KODAK AMERICAS, LTD.

	
KODAK REALTY, INC.

	
LASER-PACIFIC MEDIA CORPORATION

	
QUALEX INC.

 

		
	
KODAK PHILIPPINES, LTD.

	
 

	
By: 
	
/s/ William G. Love

	
Name:
	
William G. Love

	
Title:
	
Treasurer

 

	
	
Address for Notices:

	
 

	
c/o Eastman Kodak Company

	
345 State Street

	
Rochester, NY 14650

[Signature Page to ABL A&R Security Agreement]

 

		
	
NPEC INC.

	
 

	
By: 
	
/s/ William G. Love

	
Name:
	
William G. Love

	
Title:
	
Assistant Treasurer

	
 
	
 

	
Address for Notices:

	
 

	
c/o Eastman Kodak Company

	
345 State Street

	
Rochester, NY 14650

[Signature Page to ABL A&R Security Agreement]

 

		
	
BANK OF AMERICA, N.A., as Agent

	
 

	
By: 
	
/s/ Matthew T. O’Keefe

	
Name:
	
Matthew T. O’Keefe

	
Title:
	
Senior Vice President

	
 
	
 

	
Address for Notices:

	
 

	
Bank of America, N.A.

	
225 Franklin Street

	
Boston, MA 02110

 

 

 

[Signature Page to ABL A&R Security Agreement]

SCHEDULE I

INVESTMENT PROPERTY

PART I

INITIAL PLEDGED EQUITY

 

	
Issuer
	
Jurisdiction of Organization of Issuer
	
Holder
	
# of Shares Owned
	
Total Shares Outstanding
	
Ownership Percentage
	
Percentage of Outstanding Stock Pledged
	
Certificate Number(s) and Number of Shares

	
Eastman Kodak Holdings B.V.
	
The Netherlands
	
Eastman Kodak Company
	
N/A
	
N/A
	
100%
	
65%
	
Uncertificated

	
Eastman Kodak International Capital Company, Inc.
	
Delaware
	
Eastman Kodak Company
	
8,200
	
8,200
	
100%
	
65%
	
No. 5- 5,330 shares

	
Far East Development Ltd.
	
Delaware
	
Eastman Kodak Company
	
10
	
10
	
100%
	
100%
	
No. 1- 10 shares

	
FPC Inc.
	
California
	
Laser-Pacific Media Corporation
	
80
	
80
	
100%
	
100%
	
No. 2- 80 shares

	
Kodak (Near East), Inc.
	
New York
	
Eastman Kodak Company
	
5,000
	
5,000
	
100%
	
100%
	
No. 4- 5,000 shares

	
Kodak Americas, Ltd.
	
New York
	
Eastman Kodak Company
	
34,500
	
34,500
	
100%
	
100%
	
No. 6- 34,500 shares

	
Kodak Holding GmbH
	
Germany
	
Eastman Kodak Company
	
N/A
	
N/A
	
100%
	
65%
	
Uncertificated

	
Kodak Limited
	
United Kingdom
	
Eastman Kodak Company
	
130,000,000
	
130,000,000
	
100%
	
65%
	
No. 93- 19,500,000 shares

No. 89- 65,000,000 shares

	
Kodak Philippines, Ltd.
	
New York
	
Eastman Kodak Company
	
6,000
	
6,000
	
100%
	
100%
	
No. 3- 1,000 shares

No. 4- 1,500 shares

No. 5- 2,000 shares

No. 6- 1,500 shares

	
Kodak Polychrome Graphics Company Ltd.
	
Barbados
	
Eastman Kodak Company
	
4
	
4
	
100%
	
65%
	
No. 6- 2.6 shares

	
Kodak Realty, Inc.
	
New York
	
Eastman Kodak Company
	
100
	
100
	
100%
	
100%
	
No. 3- 100 shares

 

	
Laser-Pacific Media Corporation
	
Delaware
	
Eastman Kodak Company
	
1,110
	
1,110
	
100%
	
100%
	
No. 1- 1,000 shares

No. 2- 100 shares

No. 3- 10 shares

	
NPEC Inc.
	
California
	
Eastman Kodak Company
	
100
	
100
	
100%
	
100%
	
No. 2- 100 shares

	
Qualex Inc. 
	
Delaware
	
Eastman Kodak Company
	
1,000
	
1,000
	
100%
	
100%
	
No. C-1- 1,000 shares

 

1

SCHEDULE I

INVESTMENT PROPERTY

PART II

INITIAL PLEDGED DEBT

 

	
Grantor
	
Debt Issuer
	
Principal Amount1 
	
Currency

	
Eastman Kodak Company
	
Kodak Canada ULC
	
$85,853,909
	
USD

	
Eastman Kodak Company
	
Kodak International Finance Ltd.
	
$30,000,000
	
USD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Amount reflects outstanding principal and accrued interest as of April 30, 2016

2

SCHEDULE I

INVESTMENT PROPERTY

PART III

FOREIGN SUBSIDIARIES OTHER THAN MATERIAL FIRST-TIER FOREIGN SUBSIDIARIES

 

	
Subsidiary
	
Jurisdiction
of
Formation
	
Class of Equity
	
Number of Shares Authorized
	
Number of Shares Outstanding
	
Percentage of Shares Owned by Parent Entity
	
Parent Entity
	
Number of Shares Covered by all Outstanding Derivatives

	
1680382 Ontario Limited
	
Canada
	
Common equity
	
100
	
100
	
100%
	
Kodak Canada Inc. in its capacity as Administrator of the Kodak Canada Income Plan
	
—

	
Eastman Kodak Sarl
	
Switzerland
	
 
	
1,900,000
	
1,900,000
	
100%
	
Eastman Kodak Holdings B.V.
	
—

	
Horsell Graphic Industries Ltd.
	
United Kingdom
	
 
	
31,648,053
	
2
	
100%
	
Kodak Limited
	
—

	
Kodak (Australasia) Pty. Ltd.
	
Australia
	
Ordinary shares
	
66,901,626
	
66,901,626
	
97.1576%
	
Eastman Kodak Company
	
—

	
2.8424%
	
Kodak Graphic Communications Canada Company

	
Kodak (China) Company Limited
	
China
	
 
	
N/A
	
N/A
	
100%
	
Kodak (China) Investment Company Limited
	
—

	
Kodak (China) Graphic Communications Company Ltd.
	
China
	
 
	
N/A
	
N/A
	
75%
	
Kodak (China) Company Ltd.
	
—

	
25%
	
Kodak (China) Investment Company Ltd.

	
Kodak (China) Investment Company Limited
	
China
	
 
	
N/A
	
N/A
	
100%
	
Kodak (China) Limited
	
—

	
Kodak (China) Limited
	
China
	
 
	
N/A
	
N/A
	
100%
	
Eastman Kodak Holdings B.V.
	
—

	
Kodak (Guangzhou) Technology Service Company Limited 
	
China
	
 
	
N/A
	
N/A
	
90%
	
Kodak (China) Limited
	
—

	
10%
	
Canton Hotel

	
Kodak (Hong Kong) Limited
	
Hong Kong
	
 
	
N/A
	
N/A
	
100%
	
Eastman Kodak Holdings B.V.
	
—

	
Kodak (Malaysia) Sdn. Bhd.
	
Malaysia
	
Ordinary shares
	
10,000,000
	
8,509,343
	
99.98%
	
Eastman Kodak Company
	
—

	
.01%
	
Eastman Kodak International Capital Company, Inc.

	
.01%
	
Then Tze Keen, Director

	
Kodak (Shanghai) International Trading Co. Ltd.
	
China
	
 
	
N/A
	
N/A
	
100%
	
Kodak (China) Limited
	
—

	
Kodak (Singapore) Pte. Limited
	
Singapore
	
Ordinary shares
	
N/A
	
90,000
	
100%
	
Eastman Kodak Company
	
—

3

	
Subsidiary
	
Jurisdiction
of
Formation
	
Class of Equity
	
Number of Shares Authorized
	
Number of Shares Outstanding
	
Percentage of Shares Owned by Parent Entity
	
Parent Entity
	
Number of Shares Covered by all Outstanding Derivatives

	
Kodak (Thailand) Limited
	
Thailand
	
Common shares
	
 
	
78,000
	
99.974359%
	
Eastman Kodak International Capital Company, Inc.
	
 

	
.025641%
	
10 shares held by Chuanchart Prukpaisal and 10 shares held by Pat Sheller

	
Kodak (Wuxi) Company Limited
	
China
	
 
	
N/A
	
N/A
	
100%
	
Kodak (China) Investment Company Limited
	
—

	
Kodak (Xiamen) Company Limited 
	
China
	
 
	
N/A
	
N/A
	
95%
	
Kodak (China) Investment Company Limited
	
—

	
5%
	
Xiamen State-Owned Assets Investment Com

	
Kodak (Xiamen) Digital Imaging Products Company Limited
	
China
	
 
	
N/A
	
N/A
	
75%
	
Kodak (China) Company Limited
	
—

	
25%
	
Kodak (China) Investment Company Limited

	
Kodak
	
France
	
 
	
N/A
	
N/A
	
100%
	
Eastman Kodak Company
	
—

	
Kodak A/S
	
Denmark
	
 
	
1,000,000
	
1,000,000
	
100%
	
Eastman Kodak International Capital Company, Inc.
	
—

	
Kodak Argentina S.A.I.C.
	
Argentina
	
Capital stock
	
989,437
	
527,668
	
53.34%
	
Eastman Kodak Company
	
—

	
461,769
	
46.66%
	
Eastman Kodak Holdings, B.V.

	
Kodak Brasileira Comercio de Produtos Para Imagem e Serviços Ltda.
	
Brazil
	
N/A
	
 
	
136,566,397 quotas
	
99.9999987%
	
Eastman Kodak Holdings, B.V.
	
—

	
189 quotas
	
.000001383%
	
Kodak Americas, Ltd.

	
Kodak Canada ULC
	
Canada
	
Common shares
	
unlimited number of Common Shares and one (1) Preference share
	
334,000
	
99.999997%
	
Kodak Graphic Communications Canada Company
	
—

	
Preference share
	
1
	
.000003%
	
Eastman Kodak Company

	
Kodak Chilena S.A.F. 
	
Chile
	
Capital stock
	
N/A
	
129,246,565
	
99.9962%
	
Eastman Kodak Company
	
—

	
.0038%
	
Eastman Kodak International Capital Company, Inc.

4

	
Subsidiary
	
Jurisdiction
of
Formation
	
Class of Equity
	
Number of Shares Authorized
	
Number of Shares Outstanding
	
Percentage of Shares Owned by Parent Entity
	
Parent Entity
	
Number of Shares Covered by all Outstanding Derivatives

	
Kodak da Amazônia Indústria e Comécio Ltda.
	
Brazil
	
N/A
	
 
	
149,798,463 quotas
	
99.9999987%
	
Kodak Brasileira Comercio de Produtos para Imagem e Serviços Ltda.
	
—

	
2 quotas
	
0.0000013%
	
Kodak Americas, Ltd.

	
Kodak de Colombia, SAS
	
Colombia
	
Capital stock
	
5,000
	
704
	
100%
	
Kodak Mexicana S.A. de C.V.
	
—

	
Kodak de Mexico S.A. de C.V.
	
Mexico
	
Capital stock
	
179,341,945
	
179,341,945
	
99.99%
	
Eastman Kodak International Capital Company, Inc.
	
—

	
.01%
	
Kodak Americas, Ltd.

	
Kodak Electronic Products (Shanghai) Company Limited
	
China
	
 
	
N/A
	
N/A
	
100%
	
Kodak (China) Investment Co., Inc.
	
—

	
Kodak GmbH
	
Austria
	
 
	
N/A
	
N/A
	
100%
	
Eastman Kodak Company
	
—

	
Kodak GmbH
	
Germany
	
 
	
N/A
	
N/A
	
100%
	
Kodak Graphic Communications GmbH
	
 

	
Kodak Graphic Communications EAD
	
Bulgaria
	
 
	
N/A
	
N/A
	
100%
	
Kodak Graphic Communications GmbH
	
—

	
Kodak Graphic Communications GmbH
	
Germany
	
 
	
N/A
	
N/A
	
100%
	
Kodak Holding GmbH
	
—

	
Kodak Graphic Communications Limited 
	
United Kingdom
	
 
	
52,000,002
	
52,000,002
	
100%
	
Kodak Limited
	
—

	
Kodak IL Ltd.
	
Israel
	
Common shares
	
312,774
	
294,774
	
7%
	
Eastman Kodak Holdings B.V.
	
—

	
93%
	
Kodak Polychrome Graphics Finance (Barbados) SRL
	
—

	
Kodak India Private Limited
	
India
	
Equity and Preference
	
327,500,000
	
9,734,506
	
99.99999979%
	
Kodak Limited
	
 

	
2
	
.00000021%
	
Kodak International Finance Limited

	
Kodak International Finance Limited
	
England
	
 
	
N/A
	
28,061,408
	
100%
	
Kodak Limited
	
—

	
Kodak Japan Ltd.
	
Japan
	
Common stock
	
400,000
	
396,071
	
77.097%
	
Kodak Polychrome Graphics Company Ltd.
	
—

	
12.674%
	
Eastman Kodak Holdings B.V.

	
10.229%
	
Kodak Graphic Communications Canada Company

5

	
Subsidiary
	
Jurisdiction
of
Formation
	
Class of Equity
	
Number of Shares Authorized
	
Number of Shares Outstanding
	
Percentage of Shares Owned by Parent Entity
	
Parent Entity
	
Number of Shares Covered by all Outstanding Derivatives

	
Kodak Korea Ltd.
	
South Korea
	
Common stock
	
3,000,000
	
964,000
	
100%
	
Eastman Kodak Company
	
—

	
Kodak Mexicana S.A. de C.V.
	
Mexico
	
Capital stock
	
262,870,350
	
262,875,350
	
99.99%
	
Eastman Kodak International Capital Company, Inc.
	
—

	
.01%
	
Kodak Americas, Ltd.

	
Kodak Nederland B.V.
	
Netherlands
	
 
	
 
	
80,000
	
100%
	
Eastman Kodak Holdings B.V.
	
—

	
Kodak New Zealand Limited
	
New Zealand
	
Ordinary shares
	
1,000,000
	
1,000,000
	
100%
	
Eastman Kodak Company
	
—

	
Kodak Nordic AB
	
Sweden
	
 
	
270,000
	
270,000
	
100%
	
Eastman Kodak Company
	
—

	
Kodak OOO
	
Russia
	
 
	
N/A
	
N/A
	
100%
	
Eastman Kodak Company
	
—

	
Kodak Oy
	
Finland
	
 
	
534,000
	
534,000
	
100%
	
Eastman Kodak Company
	
—

	
Kodak Polska Sp.zo.o
	
Poland
	
 
	
Share capital PLN 24,022,650
	
25,287 (shares are uncertificated)
	
100%
	
Eastman Kodak Company
	
—

	
Kodak Polychrome Graphics China Co. Ltd.
	
China
	
 
	
N/A
	
N/A
	
100%
	
Kodak Polychrome Graphics Company Ltd.
	
—

	
Kodak Polychrome Graphics Cono Sur SA 
	
Uruguay
	
Capital stock
	
375,000
	
375,000
	
100%
	
Kodak Polychrome Graphics Company Ltd.
	
—

	
Kodak Polychrome Graphics Export SAFI 
	
Uruguay
	
Capital stock
	
5,000
	
5,000
	
100%
	
Kodak Polychrome Graphics Company Ltd.
	
—

	
Kodak Polychrome Graphics Madeira Servicos Ltd.
	
Barbados
	
N/A
	
2 quotas
	
1 quota
	
50%
	
Kodak Polychrome Graphics Company Ltd.
	
—

	
1 quota
	
50%
	
Merrydown Limited

	
Kodak SA/NV
	
Belgium
	
 
	
 
	
324,542
	
35.0217%
	
Eastman Kodak International Capital Company, Inc.
	
—

	
296,295
	
31.9735%
	
Eastman Kodak Holdings B.V.

	
287,231
	
30.9955%
	
Kodak Nederland BV

	
18,613
	
2.0085%
	
Kodak Graphic Communications Canada Company

	
5
	
.0008%
	
Eastman Kodak Company

6

	
Subsidiary
	
Jurisdiction
of
Formation
	
Class of Equity
	
Number of Shares Authorized
	
Number of Shares Outstanding
	
Percentage of Shares Owned by Parent Entity
	
Parent Entity
	
Number of Shares Covered by all Outstanding Derivatives

	
Kodak S.p.A.
	
Italy
	
Common stock
	
N/A
	
73,000,000
	
99.998%
	
Eastman Kodak Company
	
—

	
.002%
	
Eastman Kodak International Capital Company, Inc.

	
Kodak Societe Anonyme
	
Switzerland
	
 
	
28,000 shares  to a par value of 500 CHF each =

14,000,000 CHF – all shares owned by EKICC
	
 
	
100%
	
Eastman Kodak International Capital Company, Inc.
	
—

	
Kodak Unterstützungsgesellschaft mbH
	
Germany
	
 
	
N/A
	
N/A
	
100%
	
Kodak Holding GmbH
	
—

	
Kodak Venezuela, S.A.
	
Venezuela
	
Capital stock
	
16,830
	
16,830
	
100%
	
Eastman Kodak Company
	
—

	
Kodak, S.A.
	
Spain
	
Ordinary shares
	
284,760
	
284,759
	
99.99%
	
Eastman Kodak Company
	
—

	
1
	
.01%
	
Eastman Kodak International Capital Company, Inc.

	
KodakIT (Singapore) Pte. Ltd
	
Singapore
	
Ordinary shares
	
10,000
	
10,000
	
100%
	
Eastman Kodak Holdings B.V.
	
—

	
KP Services (Jersey) Limited
	
Jersey
	
Limited Shares
	
5,000
	
5,000
	
80%
	
Kodak Limited
	
Co-owner has the right to earn additional shares and an option to buy the shares owned by Kodak Limited

	
20%
	
The Guiton Group Limited

	
KPG Finance (Barbados) SRL
	
Barbados
	
 
	
Unlimited number of quotas
	
100,000 quotas
	
100%
	
Kodak Polychrome Graphics Company Ltd.
	
—

	
KPSJ P Co 1 Limited
	
Jersey
	
Limited Shares
	
5,000
	
5,000
	
100%
	
KP Services (Jersey) Limited
	
—

	
KPSJ P Co 2 Limited
	
Jersey
	
Limited Shares
	
5,000
	
5,000
	
100%
	
KP Services (Jersey) Limited
	
—

	
Laboratoires Kodak S.A.S. 
	
France
	
 
	
 
	
454,399
	
100%
	
Kodak
	
—

	
Miraclon Belgium
	
Belgium
	
 
	
50
	
50
	
99%
	
Miraclon Corporation
	
—

	
1%
	
Miraclon Europe Limited

	
Miraclon Canada, Inc.
	
Canada
	
Common stock
	
100
	
100
	
100%
	
Miraclon Corporation
	
—

	
Miraclon Comercializadora, S.A. de C.V. 
	
Mexico
	
Common stock
	
80,000
	
80,000
	
99%
	
Miraclon Corporation
	
—

	
1%
	
Miraclon de Mexico, S.A. de C.V.

	
Miraclon Corporation
	
Delaware
	
Common stock
	
100
	
100
	
100%
	
Eastman Kodak Company
	
—

7

	
Subsidiary
	
Jurisdiction
of
Formation
	
Class of Equity
	
Number of Shares Authorized
	
Number of Shares Outstanding
	
Percentage of Shares Owned by Parent Entity
	
Parent Entity
	
Number of Shares Covered by all Outstanding Derivatives

	
Miraclon de Mexico, S.A. de 

C.V.
	
Mexico
	
Common stock
	
80,000
	
80,000
	
99%
	
Miraclon Corporation
	
—

	
1%
	
Miraclon Comercializadora, S.A. de C.V.

	
Miraclon Europe Limited
	
England
	
Ordinary stock
	
1
	
1
	
100%
	
Miraclon Corporation
	
—

	
Miraclon India Private Limited
	
India
	
Equity shares
	
9,999
	
9,999
	
100%
	
Miraclon Corporation
	
—

	
Miraclon Israel Ltd.
	
Israel
	
Ordinary stock
	
1
	
1
	
100%
	
Miraclon Corporation
	
—

	
Miraclon Singapore Pte. Ltd.
	
Singapore
	
Ordinary stock
	
2
	
2
	
50%
	
Miraclon Corporation
	
—

	
50%
	
Kodak (Singapore) Pte. Ltd.

	
RPB Marketing Company
	
Japan
	
Common stock
	
100
	
3
	
100%
	
Kodak Japan Ltd.
	
—

	
Shanghai Da Hai Camera Co., Ltd. 
	
China
	
 
	
N/A
	
N/A
	
75%
	
Kodak (China) Investment Company Limited
	
—

	
25%
	
Kodak (China) Limited

	
Yamanashi RPB Supply Company
	
Japan
	
Common stock
	
32,000
	
31,227
	
100%
	
Kodak Japan Ltd.
	
—

 

8

SCHEDULE I

INVESTMENT PROPERTY

PART IV

OTHER INVESTMENT PROPERTY

NONE.

9

*** - Certain confidential information contained in this document has been omitted from public filing pursuant to a request for confidential treatment submitted to the U.S. Securities and Exchange Commission. The omitted information, which has been identified with the symbol “***,” has been filed separately with the U.S. Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

SCHEDULE II

DEPOSIT ACCOUNTS

 

	
Grantor
	
Name and Address 

of Bank
	
Account Number
	
Contact
	
Contact

Information

	
Eastman Kodak Company
	
***
	
***
	
***
	
***

	
Eastman Kodak Company
	
***
	
***
	
***
	
***

	
Eastman Kodak Company
	
***
	
***
	
***
	
***

	
Eastman Kodak Company
	
***
	
***
	
***
	
***

	
Eastman Kodak Company
	
***
	
***
	
***
	
***

	
Eastman Kodak Company
	
***
	
***
	
***
	
***

 

10

*** - Certain confidential information contained in this document has been omitted from public filing pursuant to a request for confidential treatment submitted to the U.S. Securities and Exchange Commission. The omitted information, which has been identified with the symbol “***,” has been filed separately with the U.S. Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

FOREIGN DEPOSIT ACCOUNTS

 

	
Account Holder
	
Account Number
	
Branch Name

	
 Kodak (Near East), Inc.
	
***
	
***

	
 Kodak (Near East), Inc.
	
***
	
***

	
 Kodak (Near East), Inc.
	
***
	
***

	
Kodak Polychrome Graphics Company LTD
	
***
	
***

	
Kodak Polychrome Graphics Finance Barbados SRL
	
***
	
***

 

11

SCHEDULE III

RECEIVABLES AND AGREEMENT COLLATERAL

None.

12

SCHEDULE IV

INTELLECTUAL PROPERTY

PART I

Patents

	
1.
	
See Annex 4.1.

13

Trademarks

	
1.
	
See Annex 4.2.

14

Domain Names*

*As of May 20, 2016

 

	
	
adventprinter.com

	
analogcloud.com

	
analoguecloud.com

	
creo.com

	
creoservers.com

	
d2ls.com

	
design2launch.com

	
eastmanbusinesspark.com

	
encad.com

	
filmworthy.co

	
gallery.com

	
getnoticed.com

	
imsibiz.com

	
kildistributor.com

	
kodachrome.com

	
kodak.ac

	
kodak.ag

	
kodak.am

	
kodak.as

	
kodak.asia

	
kodak.at

	
kodak.be

	
kodak.bi

	
kodak.ca

	
kodak.cd

	
kodak.cg

	
kodak.ch

	
kodak.cl

	
kodak.co

	
kodak.co.ae

	
kodak.co.at

	
kodak.co.ck

	
kodak.co.gg

	
kodak.co.id

	
kodak.co.im

	
kodak.co.in

	
kodak.co.je

	
kodak.co.jp

	
kodak.co.ke

	
kodak.co.kr

	
kodak.co.ma

	
kodak.co.nz

	
kodak.co.th

	
kodak.co.tt

	
kodak.co.uk

	
kodak.co.ve

	
kodak.co.vi

	
kodak.co.za

	
kodak.com

	
kodak.com.ag

	
kodak.com.ar

	
kodak.com.au

	
kodak.com.az

	
kodak.com.br

	
kodak.com.co

	
kodak.com.dm

	
kodak.com.do

	
kodak.com.ec

	
kodak.com.fj

15

	
	
kodak.com.gi

	
kodak.com.gr

	
kodak.com.gt

	
kodak.com.gy

	
kodak.com.hk

	
kodak.com.jm

	
kodak.com.kn

	
kodak.com.lc

	
kodak.com.lv

	
kodak.com.mt

	
kodak.com.mx

	
kodak.com.my

	
kodak.com.nf

	
kodak.com.ni

	
kodak.com.pa

	
kodak.com.pe

	
kodak.com.ph

	
kodak.com.pl

	
kodak.com.pr

	
kodak.com.pt

	
kodak.com.ru

	
kodak.com.sc

	
kodak.com.sg

	
kodak.com.sv

	
kodak.com.tr

	
kodak.com.tw

	
kodak.com.ua

	
kodak.com.uy

	
kodak.com.vc

	
kodak.com.ve

	
kodak.com.vn

	
kodak.cx

	
kodak.cz

	
kodak.de

	
kodak.dk

	
kodak.dm

	
kodak.dpmlblock

	
kodak.ee

	
kodak.es

	
kodak.eu

	
kodak.fi

	
kodak.fm

	
kodak.fr

	
kodak.gd

	
kodak.gl

	
kodak.gm

	
kodak.gr

	
kodak.gs

	
kodak.gy

	
kodak.hm

	
kodak.ie

	
kodak.in

	
kodak.info

	
kodak.io

	
kodak.is

	
kodak.it

	
kodak.jp

	
kodak.kg

	
kodak.kn

	
kodak.ky

	
kodak.kz

	
kodak.la

	
kodak.li

16

	
	
kodak.lk

	
kodak.lt

	
kodak.lu

	
kodak.lv

	
kodak.ly

	
kodak.mn

	
kodak.mobi

	
kodak.ms

	
kodak.mw

	
kodak.net

	
kodak.net.cn

	
kodak.nl

	
kodak.no

	
kodak.nu

	
kodak.off.ai

	
kodak.org

	
kodak.org.cn

	
kodak.ph

	
kodak.pl

	
kodak.pt

	
kodak.ru

	
kodak.rw

	
kodak.sa.com

	
kodak.se

	
kodak.sh

	
kodak.sn

	
kodak.st

	
kodak.tc

	
kodak.tm

	
kodak.to

	
kodak.tv

	
kodak.us

	
kodak.vc

	
kodak.vg

	
kodak.vu

	
kodak.ws

	
kodak.xxx

	
kodakcenter.com

	
kodakdeveloper.com

	
kodak-dpt.com

	
kodakeprint.com

	
kodakexpress.asia

	
kodakexpress.be

	
kodakexpress.biz.pk

	
kodakexpress.ch

	
kodakexpress.cl

	
kodakexpress.cn

	
kodakexpress.co

	
kodakexpress.co.in

	
kodakexpress.co.ke

	
kodakexpress.co.kr

	
kodakexpress.co.nz

	
kodakexpress.co.th

	
kodakexpress.co.uk

	
kodakexpress.co.ve

	
kodakexpress.co.za

	
kodakexpress.com

	
kodakexpress.com.ar

	
kodakexpress.com.au

	
kodakexpress.com.br

	
kodakexpress.com.cn

	
kodakexpress.com.do

	
kodakexpress.com.es

17

	
	
kodakexpress.com.gt

	
kodakexpress.com.hk

	
kodakexpress.com.lv

	
kodakexpress.com.mx

	
kodakexpress.com.my

	
kodakexpress.com.pa

	
kodakexpress.com.pe

	
kodakexpress.com.ph

	
kodakexpress.com.pk

	
kodakexpress.com.pr

	
kodakexpress.com.sg

	
kodakexpress.com.tr

	
kodakexpress.com.uy

	
kodakexpress.com.ve

	
kodakexpress.cz

	
kodakexpress.de

	
kodak-express.de

	
kodakexpress.dk

	
kodakexpress.es

	
kodakexpress.eu

	
kodakexpress.fi

	
kodakexpress.fr

	
kodakexpress.gr

	
kodakexpress.in

	
kodakexpress.info

	
kodakexpress.it

	
kodakexpress.la

	
kodakexpress.lv

	
kodakexpress.md

	
kodakexpress.net

	
kodakexpress.nl

	
kodak-express.nl

	
kodakexpress.org

	
kodakexpress.ph

	
kodakexpress.pt

	
kodakexpress.tm

	
kodakexpress.xxx

	
kodakgalerie.fr

	
kodakgallery.at

	
Kodakgallery.ca

	
kodakgallery.cl

	
kodakgallery.co

	
kodakgallery.co.in

	
kodakgallery.co.kr

	
kodakgallery.co.nz

	
kodakgallery.com

	
kodakgallery.com.au

	
kodakgallery.com.es

	
kodakgallery.com.hk

	
kodakgallery.com.mx

	
kodakgallery.com.my

	
kodakgallery.com.ph

	
kodakgallery.com.sg

	
kodakgallery.com.tw

	
kodakgallery.cz

	
kodakgallery.de

	
kodakgallery.es

	
kodakgallery.eu

	
kodakgallery.info

	
kodakgallery.it

	
kodakgallery.org

	
kodakgallery.se

	
kodakgallery.xxx

18

	
	
kodakit.com

	
kodakit.info

	
kodakit.net

	
kodakit.org

	
kodakmcs.com

	
kodakminute.com

	
kodakmms.com

	
kodakmobile.com

	
kodakmobile.com.ph

	
kodakmoment.ca

	
kodakmoment.cn

	
kodakmoment.co.nz

	
kodak-moment.co.uk

	
kodakmoment.com

	
kodakmoment.com.au

	
kodakmoment.com.br

	
kodakmoment.com.cn

	
kodakmoment.com.mx

	
kodakmoment.de

	
kodakmoment.es

	
kodakmoment.eu

	
kodakmoment.fr

	
kodakmoment.it

	
kodakmoment.kr

	
kodakmoment.ru

	
kodakmomentapp.co.uk

	
kodakmomentapp.com

	
kodakmomentapp.de

	
kodakmomentapp.eu

	
kodakmomentapp.fr

	
kodakmoments.ca

	
kodakmoments.cn

	
kodakmoments.co.nz

	
kodak-moments.co.uk

	
kodakmoments.com

	
kodakmoments.com.ar

	
kodakmoments.com.au

	
kodakmoments.com.br

	
kodakmoments.com.cn

	
kodakmoments.com.mx

	
kodakmoments.de

	
kodakmoments.es

	
kodakmoments.eu

	
kodakmoments.fr

	
kodakmoments.it

	
kodakmoments.kr

	
kodakmoments.ru

	
kodakmomentsapp.co.uk

	
kodakmomentsapp.com

	
kodakmomentsapp.de

	
kodakmomentsapp.eu

	
kodakmomentsapp.fr

	
kodakonline.co.kr

	
kodakonline.com.br

	
kodakphones.com

	
kodakprintplace.co.nz

	
kodakprintplace.com

	
kodakprintplace.com.au

	
kodakprintplace.net.au

	
kodakprintplace.net.nz

	
kodakpulse.com

	
kodakromania.com.ro

	
kodakromania.ro

19

	
	
kodaksilverscreen.com

	
kodakversamark.com

	
kodalink.net

	
kodapak.com

	
kpgraphics.com

	
leblogkodak.fr

	
miraclon.be

	
miraclon.ca

	
miraclon.ch

	
miraclon.cn

	
miraclon.co.il

	
miraclon.com.ar

	
miraclon.de

	
miraclon.eu

	
miraclon.in

	
miraclon.jp

	
miraclon.mx

	
miraclon.net.br

	
miraclon.sg

	
miraclon.uk

	
mycarestream.be

	
mycarestreamhealth.be

	
mygua.org

	
mykodakmomentsapp.co.uk

	
mykodakmomentsapp.com

	
mykodakmomentsapp.de

	
mykodakmomentsapp.eu

	
mykodakmomentsapp.fr

	
nexpress.com

	
ofoto.com

	
photonet.com

	
photonet.org

	
photopostage.cn

	
photostamps.cn

	
picturestamps.cn

	
pod-wf.com

	
prinergy.com

	
printkodak.com

	
printondemandsolutions.com

	
thekodakery.com

 

20

Copyrights

	
1.
	
See Annex 4.3.

21

PART II IP AGREEMENTS

NONE.

22

SCHEDULE V

LOCATION, CHIEF EXECUTIVE OFFICE, TYPE OF ORGANIZATION, JURISDICTION OF ORGANIZATION AND 

ORGANIZATIONAL IDENTIFICATION NUMBER

 

	
Grantor
	
Trade Name(s)
	
Chief Executive Office
	
Type of Organization
	
Jurisdiction of Organization
	
Organizational ID Number
	
Federal Employer ID Number

	
·     Eastman Kodak Company
	
 
	
343 State Street 

Rochester, New York 

14650
	
Corporation
	
New Jersey
	
3590801000
	
16-0417150

	
Far East Development Ltd.
	
 
	
343 State Street 

Rochester, NY   14650
	
Corporation
	
Delaware
	
0899514
	
16-1152300

	
FPC Inc.
	
Pro-Tek
	
343 State Street 

Rochester, NY 14650
	
Corporation
	
California
	
C0957735
	
95-3519183

	
Kodak (Near East), Inc.
	
 
	
343 State Street 

Rochester, NY   14650
	
Corporation
	
New York
	
81040
	
16-6027936

	
Kodak Americas, Ltd.
	
 
	
343 State Street 

Rochester, NY 14650
	
Corporation
	
New York
	
109088
	
66-0216256

	
Kodak Philippines, Ltd.
	
 
	
343 State Street 

Rochester, NY 14650
	
Corporation
	
New York
	
24429
	
16-0747862

	
Kodak Realty, Inc.
	
 
	
343 State Street 

Rochester, NY 14650
	
Corporation
	
New York
	
2133251
	
16-0912045

	
Laser-Pacific Media Corporation
	
Laser Edit, Inc. Pacific 

Video, Inc.
	
343 State Street 

Rochester, NY 14650
	
Corporation
	
Delaware
	
2236415
	
95-3824617

	
NPEC Inc.
	
 
	
343 State Street 

Rochester, NY 14650
	
Corporation
	
California
	
C1513754
	
16-1375677

	
Qualex Inc.
	
QLX Photoprocessing 

QLX Photoprocessing,

Inc. QLX Imaging 

Kodalux Processing 

Services Event Imaging 

Solutions
	
343 State Street 

Rochester, NY 14650
	
Corporation
	
Delaware
	
2133251
	
16-1306019

 

 

23

SCHEDULE VI

CHANGES IN NAME, LOCATION, ETC. WITHIN FIVE YEARS 
PRIOR TO THE DATE OF THE AGREEMENT

 

	
Grantor
	
Previous Chief Executive Office
	
Type of Organization
	
Jurisdiction of Organization
	
Organizational ID Number

	
FPC Inc.
	
6721 Romaine Street

Los Angeles, CA 90038
	
Corporation
	
California
	
C0957735

	
Laser-Pacific Media Corporation
	
809 N. Cahuenga Blvd.

Los Angeles, CA 90038
	
Corporation
	
Delaware
	
2236415

	
Qualex Inc.
	
4020 Stirrup Creek Drive

Suite 100

Durham, NC 27703
	
Corporation
	
Delaware
	
2133251

 

 

24

SCHEDULE VII

LETTERS OF CREDIT

None.

25

SCHEDULE VIII

EQUIPMENT LOCATIONS

 

	
Grantor
	
Location
	
Owned/Leased/Operated  by Third-Parties

	
Eastman Kodak Company
	
Eastman Business Park

1964 & 1991 Lake Avenue

Rochester, NY 14652
	
Owned

	
Eastman Kodak Company
	
Kodak Office

343 State Street

Rochester, NY 14650
	
Owned

	
Eastman Kodak Company
	
One Polychrome Park

Columbus, GA 31907-2934
	
Owned

	
Eastman Kodak Company
	
3000 Research Blvd

Dayton, OH 45420
	
Leased from:

Fifteenth Dayton, LLC

c/o Lewiston Investment Company

67 Lewiston Road

Grosse Pointe Farms, MI 48236

	
Eastman Kodak Company
	
2600 Manitou Road

Rochester, NY 14624
	
Leased from:

Tech Park Owner LLC

190 North Street, Suite 306

Brooklyn NY  11211

	
Eastman Kodak Company
	
4585 Cargo Drive

Columbus, GA 31907
	
Lease from:

Columbus Economic Development 

Corporation, 1200 Sixth Ave., Columbus, 

GA  31901

 

Operated by:

Ryder Integrated Logistics, Inc.

11690 NW 105th Street

Miami, FL 33178

 

 

26

SCHEDULE IX

INVENTORY LOCATIONS

 

	
Grantor
	
Location
	
Owned/Leased/Operated  by Third-Parties

	
Eastman Kodak Company
	
Eastman Business Park

Rochester, NY 14652
	
Owned

	
Eastman Kodak Company
	
2600 Manitou Road

Rochester, NY 14624
	
Leased from:

Tech Park Owner LLC

190 North Street

Brooklyn NY  11211

	
Eastman Kodak Company
	
4585 Cargo Drive

Columbus, GA 31907
	
Leased from:

Columbus Economic Development 

Corporation, 1200 Sixth Ave., Columbus, 

GA  31901

 

Operated by:

Ryder Integrated Logistics, Inc.

11690 NW 105th Street, Miami FL 33178

	
Eastman Kodak Company
	
3000 Research Blvd

Dayton, OH 45420
	
Leased from:

Fifteenth Dayton, LLC

c/o Lewiston Investment Company

67 Lewiston Road

Grosse Pointe Farms, MI 48236

	
Eastman Kodak Company
	
1025 Sandhill Road

Reno, NV 89521
	
Leased from:

Sandhill, LLC, c/o Panattoni Development 

Company, Inc., 730 Sandhill Road, Suite 110, 

Reno, NV 89521

Operated by:

Ryder Integrated Logistics, Inc.

11690 NW 105th Street, Miami FL 33178

	
Eastman Kodak Company
	
One Polychrome Park

Columbus, GA 31907-2934
	
Owned

	
Eastman Kodak Company
	
2720 Frontage Road, Weatherford, OK, 73096
	
Owned

	
Eastman Kodak Company
	
EI RDC

100 Latona Road, Building 326, Rochester, NY 14652
	
Owned

	
Eastman Kodak Company
	
1669 Lake Avenue

Rochester, NY 14650
	
Operated by:  Rochester Silver Works, LLC

PO Box 15397

Rochester, NY 14615-5397

 

 

27

SCHEDULE X

COMMERCIAL TORT CLAIMS

 

	
Case No.
	
Parties
	
Venue

	
6:14-CV-06429
	
Eastman Kodak Company vs. The Goldman Sachs Group,

Inc., Metro International Trade Services LLC, JP Morgan

Chase & Company, Henry Bath LLC, Glencore Xstrata,

PLC, Glencore Ltd., Pacorini Metals USA LLC, Pacorini

Metals Vlissingen BV, and London Metal Exchange, Ltd.
	
United States District Court for the Western 

District of New York

	
 
	
 
	
 

 

28

SCHEDULE XI

MERGERS AND ACQUISITIONS

NONE.

29

SCHEDULE XII
LOCATIONS OF BOOKS AND RECORDS

 

	
Grantor
	
Locations of Books and Records

	
·     Eastman Kodak Company
	
343 State Street

Rochester, New York 14650

	
Far East Development Ltd.

 
	
343 State Street

Rochester, NY   14650

	
FPC Inc.

 
	
343 State Street

Rochester, NY   14650

	
Kodak (Near East), Inc.
	
343 State Street

Rochester, NY   14650

	
Kodak Americas, Ltd.

 
	
343 State Street

Rochester, NY  14650

	
Kodak Philippines, Ltd.

 
	
343 State Street

Rochester, NY  14650

	
Kodak Realty, Inc.

 
	
343 State Street

Rochester, NY    14650

	
Laser-Pacific Media Corporation
	
343 State Street

Rochester, NY 14650

	
NPEC Inc.

 
	
343 State Street

Rochester, NY    14650

	
Qualex Inc.

 
	
343 State Street

Rochester, NY   14650

 

 

30

SCHEDULE XIII
FILING OFFICES

 

	
Grantor
	
State

	
Eastman Kodak Company
	
New Jersey Department of the Treasury

	
Far East Development Ltd.
	
Delaware Secretary of State

	
FPC Inc.
	
California Secretary of State

	
Kodak (Near East), Inc.
	
New York Secretary of State

	
Kodak Americas, Ltd. 
	
New York Secretary of State

	
Kodak Philippines, Ltd. 
	
New York Secretary of State

	
Kodak Realty, Inc.
	
New York Secretary of State

	
Laser-Pacific Media Corporation
	
Delaware Secretary of State

	
NPEC Inc.
	
California Secretary of State

	
Qualex Inc.
	
Delaware Secretary of State

 

31

SCHEDULE XIV
OTHER ACTIONS

NONE.

32

ANNEX 4.1

PATENTS

33

ANNEX 4.2

TRADEMARKS

34

ANNEX 4.3

COPYRIGHTS

 

 

35

 

Exhibit A to the

Amended and Restated Security Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT

This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, amended and restated, supplemented or otherwise modified from time to time, the “IP Security Agreement”) dated _________, 201__, is made by the Persons listed on the signature pages hereof (collectively, the “Grantors”) in favor of Bank of America, N.A., as Agent (the “Agent”) for the Secured Parties (as defined in the Credit Agreement referred to below).

WHEREAS, Eastman Kodak Company, a New Jersey corporation, has entered into an Amended and Restated Credit Agreement dated as of May 26, 2016 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), with Bank of America, N.A., as Agent, and the Lenders party thereto. Terms defined in the Credit Agreement and not otherwise defined herein are used herein as defined in the Credit Agreement.

WHEREAS, as a condition precedent to the making of Revolving Loans and the issuance of Letters of Credit by the Lenders under the Credit Agreement, each Grantor has executed and delivered that certain Amended and Restated Security Agreement dated as of May 26, 2016, made by the Grantors to the Agent (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”).

WHEREAS, under the terms of the Security Agreement, the Grantors have granted to the Agent, for the benefit of the Secured Parties, a security interest in, among other property, certain intellectual property of the Grantors, and have agreed as a condition thereof to execute this IP Security Agreement for recording with the United States Copyright Office, the United States Patent and Trademark Office and other governmental authorities.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees as follows:

SECTION 1. Grant of Security. Each Grantor hereby grants to the Agent for the benefit of the Secured Parties a security interest in all of such Grantor’s right, title and interest in and to the following (the “Collateral”):

(i) the patents and patent applications set forth in Schedule A hereto (the “Patents”);

(ii) the trademark and service mark registrations and applications set forth in Schedule B hereto (provided that no security interest shall be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law), together with the goodwill symbolized thereby (the “Trademarks”);

(iii) all copyrights, whether registered or unregistered, now owned or hereafter acquired by such Grantor, including the copyright registrations and applications and exclusive copyright licenses set forth in Schedule C hereto (the “Copyrights”);

(iv) all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the foregoing, all rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto;

(v) any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, such damages; and 

(vi) any and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the Collateral of or arising from any of the foregoing.

A - 1

 

SECTION 2. Security for Obligations. The grant of a security interest in, the Collateral by each Grantor under this IP Security Agreement secures the payment of all obligations of such Grantor now or hereafter existing under or in respect of the Loan Documents, the Bank Product Agreements and the Secured Creditor Agreements, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action, costs, expenses or otherwise. Without limiting the generality of the foregoing, this IP Security Agreement secures, as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and that would be owed by such Grantor to any Secured Party under the Loan Documents, the Bank Product Agreements and the Secured Creditor Agreements but for the fact that such Secured Obligations are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party.

SECTION 3. Recordation. Each Grantor authorizes and requests that the Register of Copyrights, the Commissioner for Patents or Trademarks and any other applicable government officer record this IP Security Agreement.

SECTION 4. Execution in Counterparts. This IP Security Agreement 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.

SECTION 5. Grants, Rights and Remedies. This IP Security Agreement has been entered into in conjunction with the provisions of the Security Agreement. Each Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the rights and remedies of, the Agent with respect to the Collateral are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated herein by reference as if fully set forth herein.

SECTION 6. Governing Law. This IP Security Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

A - 2

 

IN WITNESS WHEREOF, each Grantor has caused this IP Security Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

 

		
	
EASTMAN KODAK COMPANY

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

	
	
Address for Notices:

	
 

	
 

	
 

	
 

 

		
	
[NAME OF GRANTOR]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

	
	
Address for Notices:

	
 

	
 

	
 

	
 

 

		
	
[NAME OF GRANTOR]

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

	
	
Address for Notices:

	
 

	
 

	
 

	
 

 

 

 

A - 3

 

Exhibit B to the

Amended and Restated Security Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT 

SUPPLEMENT

This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT (this “IP Security Agreement Supplement”) dated _________, 201__, is made by the Person listed 
on the signature page hereof (the “Grantor”) in favor of Bank of America, N.A., as Agent (the “Agent”) for the Secured Parties (as defined in the Credit Agreement referred to below).

WHEREAS, Eastman Kodak Company, a New Jersey corporation, has entered into an Amended and Restated Credit Agreement dated as of May 26, 2016 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), with Bank of America, N.A., as Agent, and the Lenders party thereto. Terms defined in the Credit Agreement and not otherwise defined herein are used herein as defined in the Credit Agreement.

WHEREAS, pursuant to the Credit Agreement, the Grantor and certain other Persons have executed and delivered that certain Amended and Restated Security Agreement dated May 26, 2016 made by the Grantor and such other Persons to the Agent (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”) and that certain Intellectual Property Security Agreement dated May 26, 2016 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “IP Security Agreement”).

WHEREAS, under the terms of the Security Agreement, the Grantor has granted to the Agent, for the benefit of the Secured Parties, a security interest in the Collateral (as defined in Section 1 below) of the Grantor and has agreed as a condition thereof to execute this IP Security Agreement Supplement for recording with the United States Copyright Office, the United States Patent and Trademark Office and other governmental authorities.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees as follows:

SECTION 1. Grant of Security. Each Grantor hereby grants to the Agent, for the benefit of the Secured Parties, a security interest in all of such Grantor’s right, title and interest in and to the following (the “Collateral”):

(i) the patents and patent applications set forth in Schedule A hereto (the “Patents”);

(ii) the trademark and service mark registrations and applications set forth in Schedule B hereto (provided that no security interest shall be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law), together with the goodwill symbolized thereby (the “Trademarks”);

(iii) the copyright registrations and applications and exclusive copyright licenses set forth in Schedule C hereto (the “Copyrights”);

(iv) all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the foregoing, all rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto;

(v) all any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, such damages; and

(vi) any and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the foregoing or arising from any of the foregoing.

B - 1

 

SECTION 2. Security for Obligations. The grant of a security interest in the Additional Collateral by the Grantor under this IP Security Agreement Supplement secures the payment of all obligations of the Grantor now or hereafter existing under or in respect of the Loan Documents, the Specified Secured Creditor Agreements, and the Bank Product Agreements, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action, costs, expenses or otherwise.

SECTION 3. Recordation. The Grantor authorizes and requests that the Register of Copyrights, the Commissioner for Patents or Trademarks and any other applicable government officer to record this IP Security Agreement Supplement.

SECTION 4. Grants, Rights and Remedies. This IP Security Agreement Supplement has been entered into in conjunction with the provisions of the Security Agreement. The Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the rights and remedies of, the Agent with respect to the Additional Collateral are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated herein by reference as if fully set forth herein.

SECTION 5. Governing Law. This IP Security Agreement Supplement shall be governed by, and construed in accordance with, the laws of the State of New York.

B - 2

 

IN WITNESS WHEREOF, the Grantor has caused this IP Security Agreement Supplement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

 

	
	
Address for Notices:

	
 

	
 

	
 

	
 

 

 

 

B - 3

 

Exhibit C to the

Amended and Restated Security Agreement

FORM OF SECURITY AGREEMENT SUPPLEMENT

 

	
	
[Date of Security Agreement Supplement]

	
Bank of America, N.A., as the Agent for

	
the Secured Parties referred to in the

	
Credit Agreement referred to below

	
 

	
Bank of America Business Capital

	
Bank of America Merrill Lynch

	
Bank of America, NA

	
Merrill Lynch, Pierce, Fenner & Smith Incorporated

	
225 Franklin Street

	
MA1-225-02-05

	
Boston, MA 02110

	
Attn:  Matthew T. O’Keefe

Eastman Kodak Company

Ladies and Gentlemen:

Reference is made to (i) the Amended and Restated Credit Agreement dated as of May 26, 2016 (as amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Eastman Kodak Company, a New Jersey corporation, as the Borrower, the Lenders party thereto, Bank of America, N.A., as Agent (together with any successor Agent appointed pursuant to Article VII of the Credit Agreement, the “Agent”), and as administrative agent for the Lenders, and (ii) the Amended and Restated Security Agreement May 26, 2016 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”) made by the Grantors from time to time party thereto in favor of the Agent for the Secured Parties. Terms defined in the Credit Agreement or the Security Agreement and not otherwise defined herein are used herein as defined in the Credit Agreement or the Security Agreement.

SECTION 1. Grant of Security. The undersigned hereby grants to the Agent, for the benefit of the Secured Parties, a security interest in all of its right, title and interest in and to its Collateral consisting of the following, in each case, whether now owned or hereafter acquired by the undersigned, wherever located and whether now or hereafter existing or arising (collectively, the undersigned’s “Collateral”): all Equipment, Inventory, Security Collateral (including the indebtedness set forth on Schedule A hereto and the securities and securities/deposit accounts set forth on Schedule B hereto), Receivables, Related Contracts, Agreement Collateral, Account Collateral (including the deposit accounts set forth on Schedule C hereto), Intellectual Property Collateral, all books and records (including customer lists, credit files, computer files, printouts and other computer output materials and records) of the undersigned pertaining to any of the undersigned’s Collateral, and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the undersigned’s Collateral (including proceeds, collateral and supporting obligations that constitute property of the types described in this Section 1) and, to the extent not otherwise included, all (A) payments under insurance (whether or not the Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, and (B) cash.

SECTION 2. Security for Obligations. The grant of a security interest in, the Collateral by the undersigned under this Security Agreement Supplement and the Security Agreement secures the payment of all Secured Obligations of the undersigned now or hereafter existing under or in respect of the Loan Documents, the Specified Secured Creditor Agreements, and the Bank Product Agreements, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action, costs, expenses or otherwise. Without limiting the generality of the foregoing, this Security Agreement Supplement and the Security Agreement secures the payment of all amounts that constitute part of the Secured Obligations and that would be owed by the undersigned to any Secured Party under the Loan Documents, the Specified Secured Creditor Agreements, and the Bank Product Agreements but for the fact that such Secured Obligations are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party.

C - 1

 

SECTION 3. Representations and Warranties.  (a) The undersigned’s exact legal name, chief executive office, type of organization, jurisdiction of organization and organizational identification number is set forth in Schedule D hereto. Within the twelve months preceding the date hereof, the undersigned has not changed its name, chief executive office, type of organization, jurisdiction of organization or organizational identification number from those set forth in Schedule E hereto except as set forth in Schedule F hereto.

(b) All Equipment having a value in excess of $1,000,000 and all Inventory having a value in excess of $1,000,000 as of the date hereof of the undersigned is located at the places specified therefor in Schedule H hereto.

(c) The undersigned is not a beneficiary or assignee under any letter of credit, other than the letters of credit described in Schedule I hereto.

(d) The undersigned hereby makes each other representation and warranty set forth in Section 6 of the Security Agreement with respect to itself and the Collateral granted by it.

SECTION 4. Obligations Under the Security Agreement. The undersigned hereby agrees, as of the date first above written, to be bound as a Grantor by all of the terms and provisions of the Security Agreement to the same extent as each of the other Grantors. The undersigned further agrees, as of the date first above written, that each reference in the Security Agreement to an “Additional Grantor” or a “Grantor” shall also mean and be a reference to the undersigned, that each reference to the “Collateral” or any part thereof shall also mean and be a reference to the undersigned’s Collateral or part thereof, as the case may be, and that each reference in the Security Agreement to a Schedule shall also mean and be a reference to the schedules attached hereto.

SECTION 5. Governing Law. This Security Agreement Supplement shall be governed by, and construed in accordance with, the laws of the State of New York.1

 

		
	
Very truly yours,

	
[NAME OF ADDITIONAL GRANTOR]

	
 
	
 

	
By:
	
 

	
 
	
Title:

 

	
	
Address for notices:

	
 

	
 

	
 

	
 

 

	
	 

	
1 
	
 If the Additional Grantor is not concurrently executing a guaranty or other Loan Document containing provisions relating to submission to jurisdiction and jury trial waiver, include them here.

C - 2kodk-ex103_328.htm

Exhibit 10.3

 

 

June 20, 2016

 

Re:Employment Agreement

 

Dear David:

This mutually agreeable form of employment agreement (this “Agreement”), will be your employment agreement with Eastman Kodak Company and will be effective on July 1, 2016 (the “Effective Date”).  For purposes of this Agreement, the term “Company” shall refer to Eastman Kodak Company.

 

1.Terms Schedule

Some of the terms of your employment are in the attached schedule (your “Schedule”), which is part of this Agreement.

2.Your Position, Performance and Other Activities

(a)Position.  You will be employed in the position stated in your Schedule.  

(b)Authority, Responsibilities, and Reporting.  Your authority, responsibilities and reporting relationships will correspond to your position and will include any particular authority, responsibilities and reporting relationships that the Company’s Board of Directors (the “Board”) or any officer of the Company to whom you report may assign to you from time to time.

(c)Performance.  You are expected to devote your best efforts and all of your business time to the affairs of the Company.  You may, however, engage in any charitable, civic and community activities, provided, however, such activities do not materially interfere with your duties and responsibilities.

3.Your Compensation

(a)Salary.  You will receive an annual base salary (your “Salary”).   Commencing on the Effective Date, your Salary will be the amount set forth in your Schedule.  Your Salary will be paid in accordance with the Company’s normal payroll practices.

(b)Annual Incentive.  You will be eligible to participate in the Company’s short-term variable pay plan for its management level employees, known as Executive Compensation for Excellence and Leadership (“EXCEL”) (your “Annual Incentive”).  Your annual target award under EXCEL will be determined in accordance with your Schedule.  Any actual award in a given annual performance period will depend upon performance against corporate goals selected by management and approved by the appropriate committee 

 

-2-

 

of the Board and will be paid in the discretion of such committee and management.  The terms of the EXCEL plan itself govern and control all interpretations of the plan. 

(c)Long-Term Incentive Awards.  You will be eligible to participate in the Company’s Long-Term Incentive (LTI) program under the Eastman Kodak Company 2013 Omnibus Incentive Plan (the “Omnibus Plan”).  The amount and form of the award (the “Long-Term Equity Award”) to be granted to you will be determined by the Company in accordance with the terms of the Omnibus Plan and your Schedule.  The specific terms, conditions and restrictions on any Long-Term Equity Award will be contained in the Administrative Guide and Award Notice delivered to you within twenty (20) business days of the grant date.

(d)Promotion Equity Awards.  On or shortly after the Effective Date, you will be granted the promotion equity awards stated in your Schedule (your “Promotion Equity Awards”) under the Omnibus Plan, which will be subject to the terms and conditions set forth in your Schedule and the applicable Award Notice.  Your Promotion Equity Awards are stated on your Schedule in terms of dollar ($) value. The actual number of restricted stock units that you will be granted will be calculated by dividing the target dollar value to be delivered in restricted stock units by the closing price of the Company’s stock on the New York Stock Exchange on the grant date.  The actual number of stock options that you will be granted will be calculated by dividing the target dollar value to be delivered in stock options by the fair value of the stock options, which will be estimated pursuant to the Black-Scholes model used by the Company for such purpose.

4.Your Benefits

Employee Benefit Plans.

  During your employment, you will be entitled to participate in the Company’s employee benefit plans, including plans that provide retirement and welfare benefits.

(b)Vacation.  You will be entitled to paid annual vacation on the same basis as immediately prior to the Effective Date.

(c)Additional Benefits.  During your employment, you will be provided any additional benefits stated in your Schedule.

5.Termination of Your Employment

(a)No Reason Required.  Neither you nor the Company is under any obligation to continue your employment.  In addition, you or the Company may terminate your employment at any time for any reason, or for no reason, subject to compliance with Section 5(c).

(b)Related Definitions.

(1)“Cause” means any of the following:  (A) your continued failure, for a period of at least 30 calendar days following a written warning, to perform your duties in a manner deemed satisfactory by your supervisor, in the exercise of his or her sole discretion; (B) your failure to follow a lawful written directive of the Chief Executive Officer, your supervisor or the Board; (C) your willful violation of any material rule, regulation, or policy that may be established from time to time for the conduct of the Company’s business; (D) your unlawful possession, use or sale of narcotics or other controlled substances, or performing job duties while illegally used controlled substances are present in your system; (E) any act or omission or 

 

-3-

 

commission by you in the scope of your employment (a) which results in the assessment of a civil or criminal penalty against you or the Company, or (b) which in the reasonable judgment of your supervisor could result in a material violation of any foreign or U.S. federal, state or local law or regulation having the force of law; (F) your conviction of or plea of guilty or no contest to any crime involving moral turpitude; (G) any misrepresentation of a material fact to, or concealment of a material fact from, your supervisor or any other person in the Company to whom you have a reporting relationship in any capacity; or (H) your breach of the Company’s Business Conduct Guide or the Eastman Kodak Company Employee’s Agreement. 

(2) “Disability” means disability under the terms of the Company’s Long-Term Disability Plan.

(3)“Good Reason” means any of the following:  (A) a material diminution in your total target cash compensation, comprised of your Salary and target Annual Incentive; (B) a material diminution in your authority or responsibilities as provided in Section 2(b); (C) the transfer of your primary work site to a new primary work site that increases your one-way commute to work by more than 35 miles; (D) any material breach of this Agreement by the Company; (E) any purported termination by the Company of your employment other than as expressly permitted by this Agreement; or (F) a Change of Control (as defined below) event followed by your involuntary termination (as determined by the Board or the appropriate committee of the Board) within two years of the Change of Control event.

(4) “Change of Control” means the occurrence of any of the following events:

(A)any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (“Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of the Company’s securities representing 50% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (“Company Voting Securities”); provided, however, that the event described in this paragraph (A) shall not be deemed to be a Change of Control by virtue of an acquisition of Company Voting Securities: (a) by the Company or any Subsidiary, (b) by any beneficial owner of the Company’s securities as of the Effective Date, (c) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (d) by any underwriter temporarily holding securities pursuant to an offering of such securities or (e) pursuant to a Non-Qualifying Transaction (as defined in paragraph (B) of this definition);

(B)the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company that requires the approval of the Company’s shareholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (a) more than 50% of the total voting power of (x) the entity resulting from such Business Combination (the “Surviving Entity”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of at least 95% of the voting power, is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted 

 

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pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (b) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Entity or the parent), is or becomes the beneficial owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect directors of the parent (or, if there is no parent, the Surviving Entity) and (c) at least a majority of the members of the board of directors of the parent (or, if there is no parent, the Surviving Entity) following the consummation of the Business Combination were Incumbent Directors (as defined in the Omnibus Plan) at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (a), (b) and (c) of this paragraph (B) shall be deemed to be a “Non-Qualifying Transaction”); 

(C)the consummation of a sale of all or substantially all of the Company’s assets (other than to an Affiliate); or

(D)approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because any person acquires beneficial ownership of more than 50% of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding; provided that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially owned by such person (and in all cases results in beneficial ownership of more than 50% of the Company Voting Securities), a Change of Control shall then occur.

Advance Notice Generally Required.

  

(1)To terminate your employment, either you or the Company must provide a Termination Notice to the other.  A “Termination Notice” is a written notice that states the specific provision of this Agreement on which termination is based, including, if applicable, the specific clause of the definition of Cause or Good Reason and a reasonably detailed description of the facts that permit termination under that clause; provided, that the failure to include any fact in a Termination Notice that contributes to a showing of Cause or Good Reason does not preclude either party from asserting that fact in enforcing its rights under this Agreement.

If you do not give a Termination Notice within 90 days after you have knowledge that an event constituting Good Reason has occurred, the event will no longer constitute Good Reason.  In addition, you must give the Company 30 days to cure the first event constituting Good Reason.

(2)You and the Company agree to provide at least 30 days’ advance Termination Notice of any termination, unless your employment is terminated by the Company for Cause or because of your Disability or death.  If you die or become Disabled after you provide a valid Termination Notice with Good Reason or the Company provides Termination Notice without Cause, your termination will be 

 

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treated as a termination with Good Reason or without Cause, effective as of the date of your Disability or death. 

Following receipt of such notice, the Company may, at its sole discretion, choose to either (1) waive that notice period (thereby immediately terminating your employment) or (2) place you on paid leave, at your then-current salary for any or all of the notice period.

(d)With Good Reason or Without Cause.  If the Company terminates your employment without Cause or you terminate your employment with Good Reason:

(1)The Company will pay the following as of the end of your employment:  (A) accrued but unpaid Salary up to the last day of your employment, and (B) any accrued expense reimbursements and other cash entitlements (including for accrued expense reimbursement for which supporting documentation is submitted within 30 days after termination of your employment) (together, your “Accrued Compensation”).  In addition, the Company will timely pay you any amounts and provide you any benefits that are required, or to which you are entitled, under any plan, contract or arrangement of the Company as of the end of your employment (together, your “Other Benefits”).

(2)The Company will pay you severance (“Severance Payments”) in an amount equal to (A) the sum of your Base Salary for the fiscal year in which the Termination Notice is given multiplied by (B) the severance multiplier provided on your Schedule (your “Severance Multiplier”).  

(3)Your Annual Incentive will be governed by the terms of the EXCEL plan and any applicable Administrative Guide or Award Notice.

(4)Your Long-Term Equity Awards and Promotion Equity Awards will continue to vest and remain exercisable according to the terms of the applicable Award Agreement.  The benefits in this Section 5(d)(4) are referred to as “Continued Vesting.”

(e)For Cause or without Good Reason.  If the Company terminates your employment for Cause or you terminate your employment without Good Reason, the Company will pay your Accrued Compensation and your Other Benefits; however, you will forfeit any unvested equity.

(f)For Your Disability or Death.  If your employment terminates as a result of your Disability or death, the Company will pay your Accrued Compensation and will provide Continued Vesting and your Other Benefits.

(g)Benefits Bearing.  In no event shall any of the severance payments or benefits provided under this Section 5 be “benefits bearing.”

(h)Clawback.  In the event you breach any of the terms of the Eastman Kodak Company Employees’ Agreement, this Agreement or the release described in Section 5(i) below, in addition to and not in lieu of any other remedies that the Company may pursue against you, no further severance payments will be made to you pursuant to this Section 5 and you agree to immediately repay to the Company all moneys previously paid to you pursuant to this Section 5.

 

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(i)Timing.  The benefits provided in this Section 5 will begin at the end of your employment, and any cash payments owed to you under this Section 5 will be paid in one lump sum 65 days following your date of termination except for Severance Payments, which will be made consistently with the Company’s normal payroll cycles and begin as soon as administratively practicable after your separation from service subject to Section 5(j).  Notwithstanding the foregoing, any Severance Payments and any Continued Vesting will only be provided if, at the time of your termination, you provide a release of any and all claims you may have with respect to the Company (other than the benefits provided in Section 4 and the other rights under this Agreement that continue following your employment) in a form provided by the Company such that you have taken all action necessary for such release to become effective and irrevocable no later than 65 days following your date of termination.  The Termination Allowance Plan (“TAP”) provides broad-based severance benefits to eligible Company employees.  In accordance with the terms of TAP, you acknowledge that the amount of TAP benefits for which you may become eligible is calculated by reducing the benefit determined under the TAP formula by the Severance Payments under this Agreement.  Since the Severance Payments (a minimum of one year’s base salary) exceed the maximum benefit payable under TAP (six month’s base salary), you agree that if you become eligible for Severance Payments under this Agreement you will not be entitled to TAP benefits.  Should a court nevertheless award you TAP benefits in such circumstances, you agree that the amount of Severance Payments will be reduced by such award and be immediately repaid to the Company. 

(j)Section 409A.  This Agreement is intended to comply with or be exempt from the requirements of Section 409A of the Code (“Section 409A”) with respect to amounts, if any, subject thereto and shall be interpreted, construed and performed consistent with such intent.  To the extent you would otherwise be entitled to any payment that under this Agreement, or any plan or arrangement of the Company or its affiliates, constitutes “deferred compensation” subject to Section 409A, and that if paid during the six months beginning on the date of termination of your employment would be subject to the Section 409A additional tax because you are a “specified employee” (within the meaning of Section 409A and as determined by the Company), the payment, together with any earnings on it, will be paid to you on the earlier of the six-month anniversary of your date of termination or your death.  Similarly, to the extent you would otherwise be entitled to any benefit (other than a payment) during the six months beginning on termination of your employment that would be subject to the Section 409A additional tax, the benefit will be delayed and will begin being provided (together, if applicable, with an adjustment to compensate you for the delay) on the earlier of the six-month anniversary of your date of termination or your death or change in control (within the meaning of Section 409A).  In addition, any payment or benefit due upon a termination of your employment that represents “deferred compensation” subject to Section 409A shall be paid or provided to you only upon a “separation from service” as defined in Treas. Reg. § 1.409A-1(h).  Each payment under this Agreement shall be deemed to be a separate payment for purposes of Section 409A, amounts payable under Sections 5(d)(1) and 5(d)(2) shall be deemed not to be “deferred compensation” subject to Section 409A to the extent provided in the exceptions in Treas. Reg. Sections 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exception under subparagraph (iii)) and other applicable provisions of Treas. Reg. Section 1.409A-1 through A-6.

Notwithstanding anything to the contrary in this Agreement or elsewhere, any payment or benefit under this Agreement or otherwise that is exempt from Section 409A pursuant to Treas. Reg. Section 1.409A-1(b)(9)(v)(A) or (C) shall be paid or provided to you only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of your second taxable year following your taxable year in which the “separation from service” occurs; and provided further that such expenses are reimbursed no 

 

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later than the last day of your third taxable year following the taxable year in which your “separation from service” occurs.  Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement is determined to be subject to Section 409A, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except for any life-time or other aggregate limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. 

 

6.On-going Restrictions on Your Activities

(a)Employee’s Agreement.  You acknowledge and agree that your Eastman Kodak Company Employee’s Agreement is and will remain in full force and effect, including, without limitation, the provisions therein regarding nondisclosure of confidential information, non-competition with the Company during, and for up to eighteen (18) months following any termination of, your employment and non-solicitation of Company employees, customers and suppliers during, and for up to twelve (12) months following any termination of, your employment.  

(b)Your Importance to the Company and the Effect of this Section 6.  You acknowledge that:

(1)In the course of your involvement in the Company’s activities, you will have access to confidential information and the Company’s client base and will profit from the goodwill associated with the Company.  On the other hand, in view of your access to confidential information and your importance to the Company, if you compete with the Company for some time after your employment, the Company will likely suffer significant harm.  In return for the benefits you will receive from the Company and to induce the Company to enter into this Agreement, and in light of the potential harm you could cause the Company, you agree to the provisions of this Section 6.  The Company would not have entered into this Agreement if you did not agree to this Section 6.

(2)This Section 6 may limit your ability to earn a livelihood.  You acknowledge, however, that complying with this Section 6 will not result in severe economic hardship for you or your family.

(c)Transition Assistance.  During the 90 days after Termination Notice has been given, you will take all actions the Company may reasonably request to maintain for the Company the business, goodwill and business relationships with any Clients.

(d)Notice to New Employers.  Before you accept employment with any other person or entity while your Eastman Kodak Company Employee’s Agreement is in effect, you will provide the prospective employer with written notice of the provisions of your Eastman Kodak Company Employee’s Agreement and will deliver a copy of the notice to the Company.

7.Effect on Other Agreements

(a)Prior Employment Agreements.  As of the Effective Date, this Agreement will supersede your Emergence Contract dated July 30, 2013; provided, however, your Eastman Kodak Company Employee’s Agreement will remain in effect.

 

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(b)Effect on Other Agreements; Entire Agreement.  This Agreement and your Eastman Kodak Company Employee’s Agreement are the entire agreement between you and the Company with respect to the relationship contemplated by this Agreement and supersedes any earlier agreement, written or oral, with respect to the subject matter of this Agreement.  In entering into this Agreement, no party has relied on or made any representation, warranty, inducement, promise or understanding that is not in this Agreement.  

8.  Successors

(a)Assignment by You.  You may not assign this Agreement without the Company’s consent.  Also, except as required by law, your right to receive payments or benefits under this Agreement may not be subject to execution, attachment, levy or similar process.  Any attempt to effect any of the preceding in violation of this Section 8(a), whether voluntary or involuntary, will be void.

(b)Assumption by Any Surviving Company.  Before the effectiveness of any merger, consolidation, statutory share exchange or similar transaction (including an exchange offer combined with a merger or consolidation) involving the Company (a “Reorganization”) or any sale, lease or other disposition (including by way of a series of transactions or by way of merger, consolidation, stock sale or similar transaction involving one or more subsidiaries) of all or substantially all of the Company’s consolidated assets (a “Sale”), the Company will cause (1) the Surviving Company to unconditionally assume this Agreement in writing and (2) a copy of the assumption to be provided to you.  After the Reorganization or Sale, the Surviving Company will be treated for all purposes as the Company under this Agreement.  The “Surviving Company” means (i) in a Reorganization, the entity resulting from the Reorganization or (ii) in a Sale, the entity that has acquired all or substantially all of the assets of the Company.

9.  General Provisions

(a)Administrator.  All compensation and benefits provided under this Agreement will be administered by the Chief Human Resources Officer for the Company (the “Administrator”).  The Administrator will have total and exclusive responsibility to control, operate, manage and administer such compensation and benefits in accordance with their terms and all the authority that may be necessary or helpful to enable him to discharge his responsibilities with respect to them.  Without limiting the generality of the preceding sentence, the Administrator will have the exclusive right to: interpret this Agreement, decide all questions concerning eligibility for and the amount of compensation and benefits payable, construe any ambiguous provision, correct any default, supply any omission, reconcile any inconsistency, and decide all questions arising in the administration, interpretation and application of this Agreement.  The Administrator will have full discretionary authority in all matters related to the discharge of his responsibilities and the exercise of his authority, including, without limitation, his construction of the terms of this Agreement and his determination of eligibility for compensation and benefits.  It is the intent of the parties hereto, that the decisions of the Administrator and his actions with respect to this Agreement will be final and binding upon all persons having or claiming to have any right or interest in or under this Agreement and that no such decision or actions shall be modified upon judicial review unless such decision or action is proven to be arbitrary or capricious.

(b)Withholding.  You and the Company will treat all payments to you under this Agreement as compensation for services.  Accordingly, the Company may withhold from any payment any taxes that are required to be withheld under any law, rule or regulation.

 

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(c)Confidentiality.  You agree to keep the existence of this letter confidential except that you may review it with your financial advisor, attorney or spouse/partner and with the Administrator. 

(d)Severability.  If any provision of this Agreement is found by any court of competent jurisdiction (or legally empowered agency) to be illegal, invalid or unenforceable for any reason, then (1) the provision will be amended automatically to the minimum extent necessary to cure the illegality or invalidity and permit enforcement and (2) the remainder of this Agreement will not be affected.  In particular, if any provision of Section 6 is so found to violate law or be unenforceable because it applies for longer than a maximum permitted period or to greater than a maximum permitted area, it will be automatically amended to apply for the maximum permitted period and maximum permitted area.

(e)No Set-Off.  Your and the Company’s respective obligations under this Agreement will not be affected by any set-off, counterclaim, recoupment or other right you or any member of the Company may have against each other or anyone else (except as this Agreement specifically states).  You do not need to seek other employment or take any other action to mitigate any amounts owed to you under this Agreement, and those amounts will not be reduced if you do obtain other employment.  

(f)Notices.  All notices, requests, demands and other communications under this Agreement must be in writing and will be deemed given (1) on the business day sent, when delivered by hand or facsimile transmission (with confirmation) during normal business hours, (2) on the business day after the business day sent, if delivered by a nationally recognized overnight courier or (3) on the third business day after the business day sent if delivered by registered or certified mail, return receipt requested, in each case to the following address or number (or to such other addresses or numbers as may be specified by notice that conforms to this Section 9(f)):

If to you, to your address set forth above.

If to the Company or any other member of the Company, to:

Eastman Kodak Company

343 State Street

Rochester, New York 14650

Attention:  General Counsel

Facsimile:  585-724-9448 

(g)Amendments and Waivers.  Any provision of this Agreement may be amended or waived but only if the amendment or waiver is in writing and signed, in the case of an amendment, by you and the Company or, in the case of a waiver, by the party that would have benefited from the provision waived.  Except as this Agreement otherwise provides, no failure or delay by you or the Company to exercise any right or remedy under this Agreement will operate as a waiver, and no partial exercise of any right or remedy will preclude any further exercise.

(h)Jurisdiction; Choice of Forum; Costs. You and the Company irrevocably submit to the exclusive jurisdiction of any state or federal court located in the County of New York over any controversy or claim arising out of or relating to or concerning this Agreement or any aspect of your employment with the Company (together, an “Employment Matter”).  Both you and the Company (1) acknowledge that the forum stated in this Section 9(h) has a reasonable relation to this Agreement and to the relationship between you and the Company and that the submission to the forum will apply even if the forum chooses to apply 

 

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non-forum law, (2) waive, to the extent permitted by law, any objection to personal jurisdiction or to the laying of venue of any action or proceeding covered by this Section 9(h) in the forum stated in this Section, (3) agree not to commence any such action or proceeding in any forum other than the forum stated in this Section 9(h) , and (4) agree that, to the extent permitted by law, a final and non-appealable judgment in any such action or proceeding in any such court will be conclusive and binding on you and the Company.  However, nothing in this Agreement precludes you or the Company from bringing any action or proceeding in any court for the purpose of enforcing the provisions of this Section 9(h).  To the extent permitted by law, the Company will pay or reimburse any reasonable expenses, including reasonable attorney’s fees, you incur as a result of any Employment Matter.   

(i)Governing Law.  This Agreement will be governed by and construed in accordance with the law of the State of New York applicable to contracts made and to be performed entirely within that state.

(j)Counterparts.  This Agreement may be executed in counterparts, each of which will constitute an original and all of which, when taken together, will constitute one agreement.

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written.

 

 

 

			
	
EASTMAN KODAK COMPANY

	
 

	
 

	
 

	
By:
	
/s/ Jeffrey J. Clarke

	
 
	
Name
	
Jeffrey J. Clarke

	
 
	
Title
	
Chief Executive Officer

 

 

	
	
EXECUTIVE

	
 

	
 

	
 

	
/s/ David E. Bullwinkle

	
David E. Bullwinkle

 

 

 

Exhibit 10.3

 

 

David e bullwinkle

Employment Agreement Terms Schedule

 

		
	
Position
	
Chief Financial Officer and Senior Vice President, Eastman Kodak Company

	
Base Salary
	
$400,000

	
Annual Cash Performance Incentive under Company’s Executive Compensation for Excellence and Leadership (EXCEL) Plan1

 
	
The target level for your Annual Incentive will be 65% of your Base Salary.

 

The maximum payout under the EXCEL Plan is 200%.

 

Total Target Cash Compensation is $660,000.

	
Long-Term Incentive Compensation
	
Annual equity grants are determined by the Executive Compensation Committee each year at its discretion.

	
Promotion Equity Grant

 

 
	
Target Award Value:  $600,000

 

Your promotion equity grant will be comprised of 50% Restricted Stock Units (RSUs) and 50% Non-Qualified Stock Options (NQSOs), each with vesting in three substantially equal annual installments on the first, second and third anniversaries of the grant date.  An award notice will be issued to you within 20 days of the grant date.

	
Severance Multiplier
	
1X  Base Salary

	
Change of Control
	
In the case of a Change of Control event followed by an involuntary termination2 within two years following the Change of Control, severance would be paid after the 409(a) waiting period.

	
Additional Benefits
	
None

 

 

1EXCEL Plan performance metrics are determined annually by the Executive Compensation Committee

2 Leaving Reasons and associated eligibility are reviewed and approved by the Executive Compensation Committee

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