Document:

Exhibit 10.1

 

EXECUTION VERSION

 

PLEDGE AND SECURITY AGREEMENT

 

THIS PLEDGE AND SECURITY AGREEMENT (this “Agreement”) is made as of December 15, 2011, by A.M. CASTLE & CO., a corporation organized under the laws of the State of Maryland (the “Company”) and the subsidiaries of the Company listed on the signature pages hereof as grantors (collectively, together with the Company, the “Grantors” and each one a “Grantor”), whose principal place of business and chief executive office (as those terms are used in the Uniform Commercial Code of the State of New York (the “New York UCC”)) are set forth beneath the corresponding signature for each such Grantor on the signature pages hereto, in favor of U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but as collateral agent (in such capacity “Collateral Agent”), for the benefit of the Secured Parties, as hereinafter defined.  The Grantors hereby agree with Collateral Agent as follows:

 

1.             Definitions.

 

(a)           Except as specifically defined in this Agreement, (i) capitalized terms used but not defined in this Agreement that are defined in the Indenture shall have their respective meanings ascribed to them in the Indenture, and the principles of construction and interpretation provided in Section 1.04 of the Indenture shall be incorporated herein by reference and (ii) all terms used herein and defined in the New York UCC, including the terms accessions, account debtor, certificated security, chattel paper, clearing corporation, commercial tort claim, deposit account, document, electronic chattel paper, equipment, financial asset, fixtures, goods, inventory, instrument, investment property, letter-of-credit rights, payment intangibles, proceeds, securities accounts, securities intermediary, security, security entitlement, software, supporting obligations, tangible chattel paper and uncertificated security, shall have the meaning given therein unless otherwise defined herein or unless the context provides otherwise.

 

(b)           As used in this Agreement, the following terms shall have the meanings indicated below:

 

“Accounts” shall mean and include as to each Grantor, all of such Grantor’s “accounts” as defined in the UCC, whether now owned or hereafter acquired including, without limitation all present and future rights of such Grantor to payment of a monetary obligation, whether or not earned by performance, which is not evidenced by chattel paper or an instrument, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a secondary obligation incurred or to be incurred, or (iv) arising out of the use of a credit or charge card or information contained on or for use with any such card.

 

“Capital Stock” shall mean, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of such Person’s capital stock or partnership, limited liability company or other equity interests at any time outstanding, and any and all rights, warrants or options exchangeable for or convertible into such capital stock or other interests (but excluding any debt security that is exchangeable for or convertible into such

 

 

capital stock or other equity interests and/or cash based on the value of such capital stock or other equity interest).

 

“Collateral” shall mean all tangible and intangible property of each Grantor, all personal and real property of each Grantor, all movable and immovable property of each Grantor, in each case whether now owned or hereafter acquired and wherever located, including, but not limited to, the following of each Grantor:

 

(a)                                  all Accounts and other Receivables;

 

(b)                                 all certificated and uncertificated securities;

 

(c)                                  all chattel paper, including electronic chattel paper;

 

(d)                                 all Computer Hardware and Software and all rights with respect thereto, including, any and all licenses, options, warranties, service contracts, program services, test rights, maintenance rights, supporting information, improvement rights, renewal rights and indemnifications, and any substitutions, replacements, additions or model conversions of any of the foregoing;

 

(e)                                  all Contract Rights;

 

(f)                                    all commercial tort claims, (including, without limitation any commercial tort claims from time to time described on Schedule 3 (as such Schedule 3 may from time to time be updated));

 

(g)                                 all deposit accounts;

 

(h)                                 all documents;

 

(i)                                     all financial assets;

 

(j)                                     all General Intangibles, including payment intangibles and software;

 

(k)                                  all goods (including all Equipment and Inventory), and all embedded software, accessions, additions, attachments, improvements, substitutions and replacements thereto and therefor;

 

(l)                                     all instruments;

 

(m)                               all Intellectual Property;

 

(n)                                 all Investment Property;

 

(o)                                 all of the Capital Stock issued by each Grantor (other than the Company) and each of their Subsidiaries including, without limitation, any shares, membership interests, Partnership Interests, Limited Liability Company

 

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Interests or other equity interests set forth on Schedule 1 hereto (the “Pledged Interests”);

 

(p)                                 all leasehold interests;

 

(q)                                 all cash, cash equivalents or other money;

 

(r)                                    all letter of credit rights;

 

(s)                                  all security entitlements;

 

(t)                                    all supporting obligations;

 

(u)                                 all of each Grantor’s right, title and interest in and to (i) all of its respective goods and other property including, but not limited to, all merchandise returned or rejected by customers, relating to or securing any of the Receivables; (ii) all of each Grantor’s rights as a consignor, a consignee, an unpaid vendor, mechanic, artisan, or other lienor, including stoppage in transit, setoff, compensation, detinue, replevin, reclamation and repurchase; (iii) all supporting obligations and all additional amounts due to any Grantor from any customer relating to the Receivables; (iv) all other property of any kind whatsoever of each Grantor, including, but not limited to, warranty claims, relating to any goods; (v) all of each Grantor’s Contract Rights, rights of payment which have been earned under a Contract Right, letter of credit rights (whether or not the letter of credit is evidenced by a writing), instruments (including promissory notes), documents, chattel paper (whether tangible or electronic), warehouse receipts, deposit accounts, money and securities; (vi) if and when obtained by any Grantor, all real, immovable, movable and personal property of third parties in which such Grantor has been granted a Lien; and (vii) any other goods, movable or personal property or real or immovable property of any kind or description, wherever located, now or hereafter owned or acquired by any Grantor; and

 

(v)                                 all books, records, writings, data bases, information and other property relating to, used or useful in connection with, or evidencing, embodying, incorporating or referring to any of the foregoing, and all proceeds, products, offspring, rents, issues, profits and returns of and from any of the foregoing;

 

provided, however, that, no Excluded Assets shall be included in Collateral.

 

“Collateral Agreements” means, collectively, the Intercreditor Agreement, this Agreement, each Mortgage and any other agreement, document or instrument pursuant to which a Lien is granted by a Guarantor to secure any Indenture Obligations or under which rights or remedies with respect to any such Lien are governed, in each case, as the same may be in force from time to time.

 

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“Computer Hardware and Software” shall mean all of each Grantor’s rights (including rights as licensee and lessee) with respect to (a) computer and other electronic data processing hardware, including all integrated computer systems, central processing units, memory units, display terminals, printers, computer elements, card readers, tape drives, hard and soft disk drives, cables, electrical supply hardware, generators, power equalizers, accessories, peripheral devices and other related computer hardware; (b) all software and all software programs designed for use on the computers and electronic data processing hardware described in clause (a) above, including all operating system software, utilities and application programs in whatsoever form (source code and object code in magnetic tape, disk or hard copy format or any other listings whatsoever); (c) any firmware associated with any of the foregoing; and (d) any documentation for hardware, software and firmware described in clauses (a), (b) and (c) above, including flow charts, logic diagrams, manuals, specifications, training materials, charts and pseudo codes.

 

“Contract Right” shall mean any right of each Grantor to payment under a contract for the sale or lease of goods or the rendering of services, which right is at the time not yet earned by performance.

 

“Contracts” shall mean all contracts between any Grantor and one or more additional parties (including any licensing agreements and any partnership agreements, joint venture agreements and limited liability company agreements).

 

“Copyrights” shall mean all of each Grantor’s now existing or hereafter acquired right, title, and interest in and to all of such Grantor’s copyrights, rights to any works of authorship or other copyrightable subject material and all applications for registration, registrations and recordings relating to the foregoing as may at any time be filed in the United States Copyright Office, the Canadian Intellectual Property Office or in any similar office or agency in the United States of America or Canada, any State or Province thereof, any political subdivision thereof or in any other country, together with all rights and privileges arising under applicable law with respect to such Grantor’s use of any copyrights and all reissues, divisions, continuations and renewals thereof.

 

“Customer” shall mean and include the account debtor with respect to any Receivable and/or the prospective purchaser of goods, services or both with respect to any contract or Contract Right, and/or any party who enters into or proposes to enter into any contract or other arrangement with any Grantor, pursuant to which such Grantor is to deliver any personal property or perform any services.

 

“Domain Names” shall mean all Internet domain names and associated uniform resource locator addresses.

 

“Equipment” shall mean and include as to each Grantor, all of such Grantor’s, whether now owned or hereafter acquired and wherever located equipment,

 

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machinery, apparatus, motor vehicles, fittings, furniture, furnishings, fixtures, parts, accessories, and all other goods (other than Inventory) and all replacements and substitutions therefor or accessions thereto.

 

“Excluded Assets”

 

(1)                                  the Voting Stock of any direct Foreign Subsidiary of the Company or a Guarantor in excess of 65% of all of the outstanding Voting Stock of such Foreign Subsidiary;

 

(2)                                  rights under any contracts, leases or other instruments that contain a valid and enforceable prohibition on assignment of such rights (other than to the extent that any such prohibition would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the UCC of any relevant jurisdiction or any other applicable law or principles of equity), but only for so long as such prohibition exists and is effective and valid;

 

(3)                                  property and assets owned by the Company or any Guarantor that are the subject of Permitted Liens described in clause (7) of the definition thereof for so long as such Permitted Liens are in effect and the Indebtedness secured thereby constitutes Permitted Debt described in clause (4) of the definition thereof and the agreements or instruments evidencing or governing such Indebtedness otherwise prohibits any other Liens thereon, but only for so long as such prohibition exists and is effective and valid;

 

(4)                                  (i)  deposit and securities accounts the balance of which consists exclusively of (a) withheld income taxes and federal, state or local employment taxes in such amounts as are required to be paid to the Internal Revenue Service or state or local government agencies within the following two months with respect to employees of the Company or any of the Guarantors, and (b) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. Sec. 2510.3-102 on behalf of or for the benefit of employees of the Company or any Guarantor, and (ii) all segregated deposit accounts constituting (and the balance of which consists solely of funds set aside in connection with) tax accounts and trust accounts;

 

(5)                                  motor vehicles or other equipment covered by certificates of title or ownership to the extent that a security interest cannot be perfected solely by filing a UCC-1 financing statement (or similar instrument);

 

(6)                                  intent-to-use trademark applications prior to the filing of a ‘‘statement of use’’ with respect thereto, to the extent and for so long as creation by the Company or a Guarantor of a security interest therein would result in the abandonment, invalidation or unenforceability thereof;

 

(7)                                  any Capital Stock of the Company’s Subsidiaries to the extent that the pledge of such Capital Stock results in the Company being required to file

 

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separate financial statements of such Subsidiary with the SEC, but only to the extent necessary for the Company not to be subject to such requirement and only for so long as such requirement is in existence; provided that neither the Company nor any of its Subsidiaries shall take any action in the form of a reorganization, merger or other restructuring a principal purpose of which is to provide for the release of the Lien on any securities pursuant to this clause;

 

(8)                                  real property owned by the Company or any of the Guarantors that has a Fair Market Value not exceeding $1,500,000 either individually or in the aggregate and any real property leased by the Company or any Guarantor (other than any Existing Specified Leased Property); and

 

(9)                                  proceeds and products from any and all of the foregoing excluded collateral described in clauses (1) through (8), unless such proceeds or products would otherwise constitute Collateral securing the Notes;

 

provided, that notwithstanding anything to the contrary, to the extent that the Company or a Guarantor grants a Lien on any asset or right described in clause (1) through (9) above (other than clause (7)) to secure Obligations under the Senior Credit Facility, such asset or right shall not constitute an “Excluded Asset.”

 

“General Intangibles” shall mean and include as to each Grantor all of such Grantor’s general intangibles (as such term is defined in the UCC), whether now owned or hereafter acquired including, without limitation, all payment intangibles, choses in action, commercial tort claims, causes of action, corporate or other business records, inventions, designs, patents, patent applications, equipment formulations, manufacturing procedures, quality control procedures, trademarks, service marks, trade secrets, goodwill, copyrights, design rights, registrations, licenses, franchises, customer lists, tax refunds, tax refund claims, computer programs and computer software, all claims under guaranties, Liens or other security held by or granted to such Grantor to secure payment of any of the Receivables by a Customer, all rights of indemnification and all other intangible property of every kind and nature (other than Receivables).

 

“Indenture” means the Indenture dated as of December 15, 2011, by and among the Company, the other Grantors party thereto, the Trustee and the Collateral Agent, as amended, supplemented or otherwise modified from time to time.

 

“Indenture Documents” means the Notes, the Indenture, the Guarantees and the Collateral Agreements.

 

“Indenture Obligations” means all Obligations in respect of the Notes or arising under the other Indenture Documents.

 

“Intellectual Property” shall mean, as to each Grantor, such Grantor’s now owned and hereafter arising or acquired:  patents, patent rights, patent applications,

 

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copyrights, works which are the subject matter of copyrights, copyright applications, copyright registrations, trademarks, service marks, trade names, trade styles, trademark and service mark applications and designs, and licenses and rights to use any of the foregoing and all applications, registrations and recordings relating to any of the foregoing as may be filed in the United States Copyright Office, the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof, any political subdivision thereof or in any other country or jurisdiction, together with all rights and privileges arising under applicable law with respect to any Grantor’s use of any of the foregoing; all extensions, renewals, reissues, divisions, continuations, and continuations-in-part of any of the foregoing; all rights to sue for past, present and future infringement of any of the foregoing; inventions, trade secrets, formulae, processes, compounds, drawings, designs, blueprints, surveys, reports, manuals, and operating standards; goodwill (including any goodwill associated with any trademark or service mark, or the license of any trademark or service mark); customer and other lists in whatever form maintained; trade secret rights, copyright rights, rights in works of authorship, domain names and domain name registrations; software and contract rights relating to computer software programs, in whatever form created or maintained.

 

“Intellectual Property Rights” shall mean all Copyrights, Marks, and Patents, as well as any right, title, and interest in or to trade secrets and Domain Names.

 

“Intercreditor Agreement” means the Intercreditor Agreement between the Senior Credit Facility Agent and the Collateral Agent, dated as of the date hereof and acknowledged by the Grantors, as the same may be amended, supplemented or modified from time to time.

 

“Inventory” shall mean and include as to each Grantor, all of such Grantor’s now owned or hereafter acquired inventory (as such term is defined in the UCC), goods, merchandise and other personal property, wherever located, to be furnished under any contract of service or held for sale or lease, all raw materials, work in process, finished goods and materials and supplies of any kind, nature or description which are or might be used or consumed in such Grantor’s or  business or used in selling or furnishing such goods, merchandise and other personal property, all other inventory of such Grantor, and all documents of title or other documents representing them.

 

“Investment Property” shall mean any “investment property” as such term is defined in Section 9-102 of the UCC now owned or hereafter acquired by any Grantor, wherever located, including (a) all securities, whether certificated or uncertificated, including stocks, bonds, interests in limited liability companies, partnership interests, treasuries, certificates of deposit, and mutual fund shares; (b) all securities entitlements of any Grantor, including the rights of any Grantor to any securities account and the financial assets held by a securities intermediary in such securities account and any free credit balance or other money owing by any securities intermediary with respect to that account; (c) all securities accounts

 

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of any Grantor; (d) all commodity contracts of any Grantor; and (e) all commodity accounts held by any Grantor.

 

“Limited Liability Company Interests” shall mean the entire limited liability company membership interest at any time owned by any Grantor in any limited liability company.

 

“Marks” shall mean all of each Grantor’s now existing or hereafter acquired right, title, and interest in and to all of such Grantor’s trademarks, tradenames, trade styles, trade dress, service marks and other protectable indicia of origin and all applications for registration, registrations and recordings relating to the foregoing as may at any time be filed in the United States Patent and Trademark Office, the Canadian Intellectual Property Office or in any similar office or agency in the United States of America or Canada, any State or Province thereof, any political subdivision thereof or in any other country, together with all rights and privileges arising under applicable law with respect to such Grantor’s use of any trademarks, tradenames, trade styles and service marks, and all reissues, extensions, continuation and renewals thereof.

 

“Material Adverse Effect” shall mean a material adverse effect on (a) the financial condition, operations, assets,  or business of the Company and its Subsidiaries, taken as a whole, (b) the ability of the Company and the other Grantors, taken as a whole, to perform their material obligations under the Indenture Documents, (c) the value of any material portion of the Collateral, or the Collateral Agent’s Liens (on behalf of itself and the Secured Parties) on material Collateral or the priority of such Liens, or (d) the Collateral Agent’s ability to realize on a material portion of the Collateral or enforce the terms of this Agreement or the Indenture Documents.

 

“Mortgage” shall mean each of the mortgages, deeds of trust, leasehold mortgages, leasehold deeds of trust, collateral assignments of leases or other real estate security documents delivered by any Grantor to Collateral Agent on behalf of itself and Holders with respect to the Real Property.

 

“New York UCC” is defined in the preamble hereto.

 

“Organizational Information” is defined in Section 3(h).

 

“Partnership Interest” shall mean the entire general partnership interest or limited partnership interest at any time owned by any Grantor in any general partnership or limited partnership.

 

“Patents” shall mean any patent, and any divisions, continuations (including, but not limited to, continuations-in-parts) and improvements thereof, as well as any application for a patent now or hereafter.

 

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“Pledged Company” means, each Person listed on Schedule 1 hereto as a “Pledged Company”, together with each other Person, all or a portion of whose Capital Stock, is acquired or otherwise owned by Grantor after the Issue Date.

 

“Pledged Interests” is defined in clause (o) of the definition of “Collateral”.

 

“PPSA” shall mean the Personal Property Security Act (Ontario), the Personal Property Security Act (Manitoba), the Civil Code of Quebec or any other applicable Canadian federal or provincial statute pertaining to the granting, perfecting, priority or ranking of security interests, liens, hypothecs on personal property, and any successor statutes, together with any regulations thereunder, in each case as in effect from time to time.  References to sections of the PPSA shall be construed to also refer to any successor sections.

 

“Real Property” shall mean all of each Grantor’s right, title and interest in and to its owned and leased premises.

 

“Receivables” shall mean and include, as to each Grantor, all of such Grantor’s Accounts, Contract Rights, instruments (including promissory notes and instruments evidencing indebtedness owed to Grantors by their Affiliates), documents, chattel paper (whether tangible or electronic), general intangibles relating to Accounts, drafts and acceptances, and all other forms of obligations owing to such Grantor arising out of or in connection with the sale, lease or other disposition of Inventory or the rendition of services, all guarantees and other security therefor, whether secured or unsecured, now existing or hereafter created, and whether or not specifically sold or assigned to Collateral Agent hereunder.

 

“Secured Party” shall refer to each of the Holders, the Trustee and the Collateral Agent.

 

“Security Agreement Joinder” means a Pledge and Security Agreement Joinder, substantially in the form of the attached Annex E, executed and delivered to the Collateral Agent by a Subsidiary for the purpose of adding an additional Grantor as a party to this Agreement.

 

“Termination Date” shall mean the earliest to occur of the date on which (a) all Indenture Obligations have been paid in full in cash; (b) the Company exercises its legal defeasance option or covenant defeasance option described in Article 8 of the Indenture; and (c) the satisfaction and discharge of the Indenture occurs in accordance with Article 8 thereof.

 

“Trustee” shall refer to U.S. Bank National Association, in its capacity as indenture trustee under the Indenture.

 

“UCC” shall mean the Uniform Commercial Code as in effect from time to time in the relevant jurisdiction.

 

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2.             Security Interest.

 

(a)           Granting Clause.  In consideration of and as collateral security for the prompt full and complete payment and performance when due of the Indenture Obligations now existing or hereafter arising, each Grantor, for value received, does hereby assign, mortgage, pledge and hypothecate to Collateral Agent, for the benefit of the Secured Parties, and does hereby grant to Collateral Agent, for the ratable benefit of the Secured Parties, an absolute, unconditional and continuing security interest in all of such Grantor’s Collateral.

 

(b)           Voting, etc.  Until the occurrence and continuance of an Event of Default, each Grantor shall be entitled to vote any and all of the Capital Stock; provided, however, that no vote shall be cast or any action taken by such Grantor with respect to any Capital Stock which would materially violate or be materially inconsistent with any of the terms of this Agreement, the Indenture, any other Indenture Document, or which would have the effect of materially impairing the security interest of Collateral Agent or which would authorize or effect actions prohibited under the terms of the Indenture or any Indenture Document; and provided  further, that the foregoing proviso shall not apply to Capital Stock described in clause (1) of the definition of Excluded Assets.  All such rights of such Grantor to vote any Capital Stock (not subject to the provisos in the preceding sentence) shall cease upon the occurrence and during the continuance of an Event of Default; provided, however, that upon the cure or waiver of such Event of Default, any rights of Collateral Agent to vote any and all of the Capital Stock shall cease and all such rights of such Grantor to vote any and all of the Capital Stock shall resume.

 

(c)           Payments and Other Distributions.  Until the occurrence and continuance of an Event of Default, all cash, dividends or distributions payable in respect of the Capital Stock (to the extent such payments shall be permitted pursuant to the terms and provisions of the Indenture or the Intercreditor Agreement) shall be paid to the applicable Grantor; provided, however, that upon the occurrence and during the continuance of an Event of Default, all cash dividends or distributions payable in respect of the Capital Stock shall be paid to Collateral Agent as security for the Indenture Obligations; provided, further that upon the cure or waiver of such Event of Default, all cash dividends or distributions payable in respect of the Capital Stock shall be paid to such Grantor.  The Collateral Agent shall be entitled to receive directly, and to retain as part of the Capital Stock:

 

(i)            all other or additional securities or Investment Property, or rights to subscribe for or purchase any of the foregoing, or property (other than cash) paid or distributed by way of dividend in respect of the Capital Stock; and

 

(ii)           all other or additional securities, Investment Property or property (including cash) paid or distributed in respect of the Capital Stock by way of split, spin-off, split-up, reclassification, combination of shares or similar rearrangement.

 

If at any time any Grantor shall obtain or possess any Capital Stock, such Grantor shall be deemed to hold such Capital Stock in trust for Collateral Agent for the benefit of Collateral Agent and the other Secured Parties, and such Grantor shall promptly surrender and deliver such Capital Stock to Collateral Agent; provided, that the foregoing shall not apply to Capital Stock described in clause (1) of the definition of Excluded Assets.

 

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3.             Representations, Warranties and Agreements.  In addition to any representations and warranties of any Grantor set forth in the Indenture Documents, which are incorporated herein by this reference, each Grantor hereby represents and warrants the following to Collateral Agent:

 

(a)           Authority.  The execution, delivery and performance of this Agreement and all of the other Indenture Documents to which such Grantor is a party have been duly authorized by all necessary action of such Grantor.

 

(b)           Accuracy of Information.  As of the Issue Date, the exact legal name of such Grantor is correctly shown on the signature pages hereof.

 

(c)           Enforceability.  This Agreement and the other Indenture Documents to which such Grantor is a party constitute legal, valid and binding obligations of such Grantor, enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles.

 

(d)           Ownership and Liens.

 

(i)            At the time the Collateral becomes subject to Collateral Agent’s Lien, each Grantor shall be the sole owner of and fully authorized and able to sell, transfer, pledge and/or grant a Lien (subject to Permitted Liens) in each and every item of its respective Collateral to Collateral Agent; and, except for Permitted Liens, the Collateral shall be free and clear of all Liens and encumbrances whatsoever;

 

(ii)           All of the Pledged Interests (including, without limitation, the Pledged Interests indicated on Schedule 1) have been (to the extent such concepts are relevant with respect to such Pledged Interests) duly authorized and validly issued, are fully paid and non-assessable and other than in connection with a disposition permitted pursuant to the Indenture, there are no options to purchase or similar rights.  As of the Issue Date, or, with respect to any additional Grantor, such other date such Grantor becomes a party hereto, except as set forth on Schedule 1 hereto, such Grantor owns 100% of the issued and outstanding shares of capital stock or membership, partnership, limited liability company or other equity interests of each of the direct Subsidiaries of such Grantor, and the Pledged Interests constitute or will constitute the percentage of the issued and outstanding Capital Stock of such Pledged Companies of Grantor identified on Schedule 1 hereto;

 

(iii)          With respect to all Collateral of Grantor whereby or with respect to which the Collateral Agent may obtain “control” thereof within the meaning of Section 8-106 of the UCC or under any provision of the UCC as the same may be amended or supplemented from time to time, or under the laws of any relevant

 

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State, Grantor shall take all actions as may be necessary so that “control” of such Collateral is obtained and at all times held by the Collateral Agent; and

 

(iv)          Each Grantor represents, warrants, covenants and agrees that as of the Issue Date (a) the certificated Pledged Interests listed on Schedule 1 are the only equity interests owned by such Grantor which are certificated; and (b) the uncertificated Pledged Interests listed on Schedule 1 are the only equity interests of any domestic subsidiary owned by such Grantor which are uncertificated.

 

(e)           Capital Stock.

 

(i)            As of the Issue Date, all of the issued and outstanding shares of Capital Stock, membership interests, Limited Liability Company Interests, Partnership Interests, or other similar equity interests, as applicable, of such Grantor have been duly authorized and validly issued, are fully paid and nonassessable and were not issued in violation of, and are not subject to, any preemptive or similar rights.  As of the Issue Date, all of the outstanding shares of Capital Stock, membership interests, Limited Liability Company Interests, Partnership Interests, or other similar equity interests of its Subsidiaries are owned directly or indirectly by the Company, free and clear of all Liens other than (A) Permitted Liens, (B) those imposed by the Securities Act, the rules and regulations of the SEC and the securities or “Blue Sky” laws of certain U.S. state or non-U.S. jurisdictions and (C) those set forth in the corporate organizational documents of the relevant entities.  As of the Issue Date, no issuer of Capital Stock is party to any agreement granting “control” (as defined in Section 8-106 of the UCC) of such Grantor’s Capital Stock to any third party, except as permitted pursuant to the Indenture Documents.  As of the Issue Date, all such Capital Stock is held by such Grantor directly and not through any securities intermediary.

 

(ii)           All Capital Stock of each Grantor is, as of the Issue Date, and shall be at all times during the term of this Agreement, freely transferrable without restriction or limitation, except as limited (A) by the terms of this Agreement, (B) in agreements relating to liens permitted under the definition of Permitted Liens in the Indenture) and (C) by foreign laws in connection with the pledge of Capital Stock of issuers organized under the laws of a jurisdiction outside of the United States.

 

(iii)          As of the Issue Date, there are no outstanding options, warrants, convertible securities or other rights, contingent or absolute, to acquire the Capital Stock and no Capital Stock is subject to any shareholder, voting trust or similar agreement.  No consent of any Person is necessary or desirable in connection with the creation or perfection of the security interest in any Capital Stock or the exercise by Collateral Agent of the voting or other rights and remedies in respect thereof provided for in this Agreement, except as may be required in connection with (A) any disposition by laws affecting the offering and sale of securities generally or (B) the Capital Stock of issuers organized under the laws of a jurisdiction outside the United States.

 

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(f)            No Conflicts or Consents.  Neither the ownership or intended use of the Collateral by any Grantor, nor the grant of the security interest by each Grantor to Collateral Agent herein, will (i) materially conflict with any provision of (A) any material federal, state or local law, statute, rule or regulation, (B) any material provision of the organizational documents of any of the Grantors, or (C) any material agreement, judgment, license, order or permit applicable to or binding upon any of the Grantors, or (ii) result in or require the creation of any lien, charge or encumbrance upon any of the Collateral except as may be contemplated or permitted in the Indenture Documents.  Except as expressly contemplated in the Indenture Documents, no consent, approval, authorization or order of, and no notice to or filing with, any court, governmental authority or other Person is required in connection with the grant by each Grantor of the security interest herein or the exercise by Collateral Agent of its rights and remedies hereunder, other than (x) those previously or contemporaneously obtained or received, (y) as may be required in connection with any disposition by laws affecting the offering and sale of securities generally or (z) as may be required in connection with the Capital Stock of issuers organized under the laws of a jurisdiction outside the United States.

 

(g)           Security Interest.  This Agreement creates a legal, valid and binding security interest in favor of Collateral Agent in the Collateral securing the Indenture Obligations.

 

(h)           Location/Identity.  As of the Issue Date, each Grantor’s principal place of business and chief executive office (as those terms are used in the New York UCC), is located at the address set forth on Schedule 2 hereto.  Each Grantor’s organizational structure and state of organization (the “Organizational Information”), as of the Issue Date, are as set forth on Schedule 2 hereto.

 

4.             Covenants.  In addition to all covenants and agreements of each Grantor set forth in the Indenture Documents, which are incorporated herein by this reference, the Grantors will comply with the covenants contained in this Section 4 at all times during the period of time this Agreement is effective unless Collateral Agent shall otherwise consent in writing.

 

(a)           Inspection and Further Identification of Collateral.  Grantors will keep adequate records concerning the Collateral and will permit Collateral Agent and all representatives and agents appointed by Collateral Agent to inspect, at the Company’s expense and upon reasonable prior notice to the Grantors (and unless an Event of Default is continuing, not more than once per calendar year), any of the Collateral and the books, records, audits, correspondence and all other documents relating to the Collateral at any time during normal business hours, to make and take away photocopies, photographs and printouts thereof and to write down and record any such information.  Each Grantor will furnish to Collateral Agent from time to time statements and schedules further identifying and describing the Collateral as Collateral Agent or any other Secured Party may reasonably request, all in reasonable detail.

 

(b)           Payment of Taxes.  Grantors will timely pay, when due, all taxes, assessments and governmental charges or levies lawfully imposed upon the Collateral or any part thereof, except such taxes, charges or levies as to which the failure to pay would

 

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not reasonably be expected to result in a Material Adverse Effect.  Grantors may, however, delay paying or discharging any such taxes, assessments or charges so long as the validity thereof is contested in good faith by proper proceedings and provided Grantors have set aside on Grantors’ books adequate reserves therefor.

 

(c)           Perfection of Security Interest.  Each Grantor shall take all action as may be reasonably necessary so as at all times to maintain the validity, perfection, enforceability and priority (subject to the terms of the Intercreditor Agreement) of Collateral Agent’s security interest in and Lien on the Collateral or to enable Collateral Agent to protect, exercise or enforce its rights hereunder and in the Collateral, including (i) promptly discharging all Liens other than Permitted Liens, (ii) to the extent required under the Senior Credit Facility, obtaining Lien waiver agreements and (iii) executing and delivering financing statements, control agreements, instruments of pledge, mortgages, notices and assignments, in each case relating to the creation, validity, perfection, priority, maintenance or continuation of the Collateral Agent’s security interest and Lien under the UCC or other applicable law, provided, however, that (A) the Grantors shall not be required to cause the Collateral Agent to have “control” with respect to any deposit or securities account so long as the average five-day closing balance for all such deposit and securities accounts does not exceed $500,000, and (B) to the extent required, the Grantors shall use commercially reasonable efforts to cause any securities intermediary to enter into an agreement with the Collateral Agent to cause the Collateral Agent to have “control” with respect to any securities account.

 

(d)           Inventory and Equipment.  Each Grantor covenants and agrees that such Grantor shall keep such Grantor’s Inventory and Equipment other than (i) Inventory and Equipment in transit, (ii) Inventory with an aggregate fair market or book value (whichever is more) less than $500,000 and (iii) Equipment with an aggregate fair market or book value (whichever is more) less than $500,000, only at the locations identified on Schedule 2 and its chief executive offices only at the locations identified on Schedule 2 (as such Schedule may from time to time be updated in accordance with Section 4(m).  Each Grantor covenants and agrees that all Inventory held for sale or lease by any Grantor has been and will be produced by such Grantor in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations and orders thereunder in all material respects.  All material Equipment used or useful in the conduct of any Grantor’s business shall be maintained in good operating condition and repair (reasonable wear and tear excepted) and all necessary replacements of and repairs thereto shall be made so that the value and operating efficiency of such Equipment shall be maintained and preserved (reasonable wear and tear excepted).  Each Grantor shall use or operate any Equipment in compliance with applicable law in all material respects.  Except as permitted under the Indenture, no Grantor shall sell or otherwise dispose of any of its Equipment.  Each Grantor agrees that, upon the request of the Collateral Agent (as directed by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding), such Grantor will promptly provide the Collateral Agent with confirmation of the specific location of any Equipment.

 

(e)           Direction to Account Debtors; Contracting Parties; etc.  Subject to the Intercreditor Agreement, upon the occurrence and during the continuance of an Event of

 

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Default, if the Collateral Agent so directs any Grantor, such Grantor agrees (i) to cause all payments on account of the Accounts and Contracts to be made directly to a cash account held by the Collateral Agent (the “Cash Collateral Account”), (ii) that the Collateral Agent may directly notify the obligors with respect to any Accounts and/or under any Contracts to make payments with respect thereto as provided in the preceding clause (i), and (iii) that the Collateral Agent may enforce collection of any such Accounts and Contracts and may adjust, settle or compromise the amount of payment thereof, in the same manner and to the same extent as such Grantor.  Without notice to or assent by any Grantor, the Collateral Agent may, upon the occurrence and during the continuance of an Event of Default, apply any or all amounts then in, or thereafter deposited in, the Cash Collateral Account toward the payment of the Indenture Obligations in the manner provided in Section 4.01 of the Indenture and Section 4.1 of the Intercreditor Agreement.  The reasonable out-of-pocket costs and expenses of collection (including reasonable attorneys’ fees), whether incurred by a Grantor or the Collateral Agent, shall be borne by the relevant Grantor.  The Collateral Agent shall deliver a copy of each notice referred to in the preceding clause (ii) to the relevant Grantor; provided, that (x) the failure by the Collateral Agent to so notify such Grantor shall not affect the effectiveness of such notice or the other rights of the Collateral Agent created by this Section 4 and (y) no such notice shall be required if an Event of Default of the type described in Section 6.01(9) of the Indenture has occurred and is continuing.

 

(f)            Collection.  (i) Subject to the terms of the Intercreditor Agreement, from and after the occurrence and during the continuance of an Event of Default, upon the demand of Collateral Agent (acting at the direction of the Holders or the Trustee), each Grantor shall deliver to Collateral Agent, in original form and on the date of receipt thereof, all checks, drafts, notes, money orders, acceptances, cash and other evidences of Indebtedness at any time received by Grantors.  (ii) Subject to the terms of the Intercreditor Agreement, following the occurrence and during the continuance of any Event of Default, at its option, Collateral Agent (acting at the direction of the Holders or the Trustee), shall have the exclusive right to collect the Accounts and other Receivables of each Grantor, take possession of the Collateral, or both.  In such case, Collateral Agent’s actual collection expenses, including but not limited to, stationery and postage, telephone and facsimile, secretarial and clerical expenses and the salaries of any collection personnel used for collection, shall be for the account of the Company and added to the Indenture Obligations.

 

(g)           Instruments and Documents.  If any Grantor owns or acquires any instrument or document (as defined in the New York UCC) evidencing or forming a part of the Collateral in excess of (x) so long as no Event of Default has occurred and is continuing, $1,000,000, or (y) so long as an Event of Default has occurred and is continuing, $250,000, constituting Collateral (other than checks and other payment instruments received and collected in the ordinary course of business), such Grantor will within ten (10) Business Days deliver such instrument or document to the Collateral Agent appropriately endorsed to the order of the Collateral Agent.

 

(h)           Grantors Remain Liable Under Accounts and Contracts.  Anything herein to the contrary notwithstanding, the Grantors shall remain liable under each of the

 

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Accounts and Contracts to observe and perform all of the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise to such Accounts or Contracts.  Neither the Collateral Agent nor any other Secured Party shall have any obligation or liability under any Account (or any agreement giving rise thereto) or Contract, in each case by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any other Secured Party of any payment relating to such Account or Contract pursuant hereto, nor shall the Collateral Agent or any other Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Account (or any agreement giving rise thereto) or any Contract, to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by them or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto) or Contract, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to them or to which they may be entitled at any time or times.

 

(i)            Letter-of-Credit Rights.   If any Grantor is at any time a beneficiary under a letter of credit with a stated amount of $375,000 or more, such Grantor shall use its commercially reasonable efforts to (i) arrange for the issuer and any confirmer of such letter of credit to consent in writing to an assignment to the Collateral Agent of the proceeds of any drawing under such letter of credit or (ii) arrange for the Collateral Agent to become the transferee beneficiary of such letter of credit, with the Collateral Agent agreeing, in each case, that the proceeds of any drawing under the letter of credit are to be applied as provided in this Agreement upon the occurrence and during the continuance of an Event of Default.

 

(j)            Commercial Tort Claims.   All commercial tort claims of each Grantor in an amount of $500,000 or more in existence on the date of this Agreement are described in Schedule 3 hereto.  If any Grantor shall at any time after the date of this Agreement acquire a commercial tort claim in an amount (taking the greater of the aggregate claimed damages thereunder or the reasonably estimated value thereof) of $500,000 or more, such Grantor shall promptly (i) notify the Collateral Agent thereof in a writing signed by such Grantor and describing the details thereof; (ii) grant to the Collateral Agent in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement; and (iii) take such actions as may be reasonably necessary to perfect such security interest, including filing a UCC-1 financing statement or UCC-3 statement of amendment in such filing office as may be appropriate, and provide evidence thereof to the Collateral Agent.

 

(k)           Chattel Paper.   Upon the reasonable request of the Collateral Agent made at any time or from time to time, each Grantor shall promptly furnish to the Collateral Agent a list of all electronic chattel paper held or owned by such Grantor.  Furthermore, if requested by the Collateral Agent, each Grantor shall promptly take all actions which are reasonably practicable so that the Collateral Agent has “control” of all electronic chattel paper with a value of (x) so long as no Event of Default has occurred and is continuing, $1,000,000, or (y) so long as an Event of Default has occurred and is continuing, $250,000, in accordance with the requirements of Section 9-105 of the UCC.

 

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Each Grantor will promptly (and in any event within ten (10) days) following any request by the Collateral Agent, deliver all of its tangible chattel paper to the Collateral Agent.

 

(l)            Additional Procedures.   To the extent that any Grantor at any time or from time to time owns, acquires or obtains any right, title or interest in any Capital Stock intended to be pledged as Collateral hereunder or the form or nature of any Capital Stock shall change, the Collateral Agent shall automatically (and without the taking of any action by any Grantor) have a security interest in all of the right, title and interest of such Grantor in, to and under such Capital Stock pursuant to Section 2(a) of this Agreement and, in addition thereto, such Grantor shall (to the extent provided below) take the following actions as set forth below (as promptly as practicable and, in any event, within fifteen (15) Business Days after it obtains such Capital Stock) for the benefit of the Collateral Agent and the other Secured Parties, subject to the terms of the Intercreditor Agreement:

 

(i)            with respect to a certificated security (other than a certificated security credited on the books of a clearing corporation or securities intermediary), such Grantor shall physically deliver such certificated security to the Collateral Agent, endorsed to the Collateral Agent or endorsed in blank;

 

(ii)           with respect to an uncertificated security (other (x) than an uncertificated security credited on the books of a clearing corporation or securities intermediary or (y) an uncertificated security of an Immaterial Subsidiary), such Grantor shall use commercially reasonable efforts to cause the issuer of such uncertificated security to duly authorize, execute, and deliver to the Collateral Agent, an agreement for the benefit of the Collateral Agent and the other Secured Parties substantially in the form of Annex A hereto pursuant to which such issuer agrees to comply with any and all instructions originated by the Collateral Agent without further consent by the registered owner and not to comply with instructions regarding such uncertificated security (and any Partnership Interests and Limited Liability Company Interests issued by such issuer) originated by any other Person other than a court of competent jurisdiction;

 

(iii)          with respect to a certificated security, uncertificated security, Partnership Interest or Limited Liability Company Interest credited on the books of a clearing corporation or securities intermediary (including a Federal Reserve Bank, Participants Trust Company or The Depository Trust Company), such Grantor shall promptly notify the Collateral Agent in writing thereof and shall use commercially reasonable efforts (x) to comply with the applicable rules of such clearing corporation or securities intermediary and (y) (A) in the case of a clearing corporation, to perfect the security interest of the Collateral Agent under applicable law (including, in any event, under Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC) or (B) in the case of a securities intermediary, if required to perfect the security interest of the Collateral Agent under applicable law (including, in any event, under Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC);

 

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(iv)          with respect to a Partnership Interest or a Limited Liability Company Interest (other than a Partnership Interest or Limited Liability Company Interest credited on the books of a clearing corporation or securities intermediary), (1) if such Partnership Interest or Limited Liability Company Interest is represented by a certificate and is a security for purposes of the UCC, the procedure set forth in Section 4(l)(i) hereof, and (2) if such Partnership Interest or Limited Liability Company Interest is not represented by a certificate or is not a security for purposes of the UCC, the procedure set forth in Section 4(l)(ii) hereof; and

 

(v)           with respect to cash proceeds from any of the Collateral, except as otherwise permitted under the Indenture Documents, (x) establishment by the Collateral Agent of a cash account in the name of such Grantor over which the Collateral Agent shall have “control” within the meaning of the UCC and at any time any Event of Default is in existence no withdrawals or transfers may be made therefrom by any Person except with the prior written consent of the Collateral Agent and (y) deposit of such cash in such cash account.

 

(m)          Further Actions.  Without limitation of any other covenant herein, no Grantor shall change or permit to be changed the jurisdiction in which it is incorporated or otherwise organized, or change its legal name (or use a different name), location of chief executive office or location of any of the Collateral, unless such Grantor has given Collateral Agent not less than ten (10) Business Days prior written notice thereof (along with an update of Schedule 2, as applicable) and Grantors have taken (or caused to be taken) all steps required by Collateral Agent to maintain Collateral Agent’s Lien on such Collateral, as well as the priority and effectiveness of such Lien (including, without limitation, in the case of Collateral located in Canada, the filing of a PPSA financing statement); provided, that, except as expressly permitted under the Indenture, no Grantor shall change its jurisdiction of incorporation or organization or location of any of its Collateral, in each case, to a jurisdiction or location outside of the United States or Canada.

 

(n)           Insurance.

 

(i)            Each Grantor shall:

 

(A)          keep its properties adequately insured at all times by financially sound and reputable insurers, as is customary with companies in the same or similar businesses operating in the same or similar locations;

 

(B)           maintain such other insurance, to such extent and against such risks (and with such deductibles, retentions and exclusions), including fire and other risks insured against by extended coverage and coverage for acts of terrorism, as is customary with companies in the same or similar businesses operating in the same or similar locations, including public liability insurance against claims for personal injury or death or

 

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property damage occurring upon, in, about or in connection with the use of any properties owned, occupied or controlled by them; and

 

(C)           maintain such other insurance as may be required by law.

 

(ii)           Each Grantor shall furnish to the Collateral Agent no more than once each fiscal year full information as to its property and liability insurance carriers.  The Collateral Agent shall be named as an additional insured on all insurance policies of any Grantor and the Collateral Agent shall be named as loss payee, with 30 days’ notice of cancellation or material change, on all property and casualty insurance policies of any Grantor.

 

(o)           Leasehold Obligations.  Each Grantor shall, and shall cause each of its Subsidiaries to, at all times pay, when and as due, its rental obligations under all leases under which it is a tenant, and shall otherwise comply, in all material respects, with all other terms of such leases and keep them in full force and effect, except, in each case, where the failure to do so could not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

(p)           Exculpation of Liability.   Nothing herein contained shall be construed to constitute Collateral Agent or any Holder as any Grantor’s agent for any purpose whatsoever, nor shall Collateral Agent or any Holder be responsible or liable for any shortage, discrepancy, damage, loss or destruction of any part of the Collateral wherever the same may be located and regardless of the cause thereof, except with respect to Collateral Agent’s or such Holder’s gross (not mere) negligence or willful misconduct as determined by a final and non-appealable order of a court of competent jurisdiction.  Neither Collateral Agent nor any Holder, whether by anything herein or in any assignment or otherwise, assumes any of any Grantor’s obligations under any contract or agreement to which it is a party, and neither Collateral Agent nor any Holder shall be responsible in any way for the performance by any Grantor of any of the terms and conditions thereof.

 

(q)           Deposit Accounts; Etc.

 

(i)            Schedule 5 hereto accurately sets forth, as of the date of this Agreement, for each Grantor, each deposit account maintained by such Grantor (including a description thereof and the respective account number) and the name of the respective bank with which such deposit account is maintained.  Subject to Section 4(c) hereof and the terms of the Intercreditor Agreement, for each deposit account that is Collateral (other than the Cash Collateral Account or any other deposit account maintained with the Collateral Agent), the respective Grantor shall use commercially reasonable efforts to cause the bank with which the deposit account is maintained to execute and deliver to the Collateral Agent, (x) in the case of an account located at a bank which is a lender under the Senior Credit Facility, within 30 days after the date of this Agreement (or, if later, the date of the establishment of the respective deposit account), or (y) in the case of an account located at a bank which is a not lender under the Senior Credit Facility,

 

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within 45 days after the date of this Agreement (or, if later, the date of the establishment of the respective deposit account), a “control agreement” in form and substance consistent with the deposit account control agreements entered into by the Company pursuant to the Senior Credit Facility, or otherwise acceptable to the Collateral Agent.  Subject to Section 10(n)(iii) hereof, if any bank with which a deposit account is maintained refuses to, or does not, enter into such a “control agreement”, then the respective Grantor shall promptly (and in any event within 30 days after the date of this Agreement or, if later, 30 days after the establishment of such account) close the respective deposit account and transfer all balances therein to the Cash Collateral Account or another deposit account meeting the requirements of this Section 4(q).  If any bank with which a deposit account is maintained refuses to subordinate all its claims with respect to such deposit account to the Collateral Agent’s security interest therein on terms satisfactory to the Collateral Agent, then the Collateral Agent, at its option, may (x) require that such deposit account be terminated in accordance with the immediately preceding sentence or (y) agree to a “control agreement” without such subordination, provided that in such event the Collateral Agent may at any time, at its option, subsequently require that such deposit account be terminated (within 30 days after notice from the Collateral Agent) in accordance with the requirements of the immediately preceding sentence.

 

(ii)           Subject to Section 4(c) hereof and the terms of the Intercreditor Agreement, at the time any such deposit account is established, the appropriate “control agreement” shall be entered into in accordance with the requirements of preceding clause (i) and the respective Grantor shall furnish to the Collateral Agent a supplement to Schedule 5 hereto containing the relevant information with respect to the respective deposit account and the bank with which same is established.

 

(r)            Membership.         In accordance with this Agreement, each Grantor hereby acknowledges and agrees that Collateral Agent or any of its successors and assigns (or any designee of Collateral Agent), shall, at Collateral Agent’s option, upon written notice to any Grantor (such Grantor, the “Parent Grantor”) of Collateral Agent’s intent to be admitted as a member of any other Grantor (in the place of the Parent Grantor) at any time an Event of Default exists or has occurred and is continuing and following delivery of any required notice hereunder, be admitted as a member of the relevant Grantor without any further approval of the Parent Grantor and without compliance by Collateral Agent or any other person with any of the conditions or other requirements of the applicable membership agreement and without conferring upon any Person any option (whether under the applicable membership agreement or otherwise) to acquire the stock or membership interests so transferred to Collateral Agent, its successors or assigns, or its designees.  At such time, each Grantor agrees to take such other action and execute such further documents as Collateral Agent may reasonably request from time to time in order to give effect to the provisions of this Agreement.

 

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5.             Special Provisions Concerning Intellectual Property.

 

(a)           Additional Representations and Warranties.  Each Grantor represents and warrants (i) that the Intellectual Property Rights listed in Schedule 4 hereto for such Grantor include all Intellectual Property Rights that such Grantor owns or uses in connection with its business as of the date hereof which are registered at the United States Patent and Trademark Office, the United States Copyright Office, or an equivalent thereof in any state of the United States or any foreign jurisdiction, and (ii) that except as set forth in Schedule 4 it is the true and lawful owner of all registrations and applications for registration of Intellectual Property Rights listed in Schedule 4 hereto.  Except as disclosed in the Offering Memorandum or as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, each Grantor owns, or is licensed under, and has the right to use, all Intellectual Property Rights used in its businesses as currently conducted and the Intellectual Property Rights are free and clear of all Liens, other than Permitted Liens. No claims or notices of any potential claim have been asserted by any Person challenging the use of any such Intellectual Property Rights by any Grantor or questioning the validity, effectiveness of or Grantor’s rights to any Intellectual Property Right or any license or agreement related thereto, other than any claims that, if successful, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, and no Grantor is aware of any basis for such claims.

 

(b)           Licenses and Assignments.   Except as otherwise permitted by the Indenture Documents, each Grantor hereby agrees not to divest itself of any Intellectual Property Right.

 

(c)           Infringements.   Except as such Grantor in its reasonable business judgment determines is not necessary in the conduct of the Grantor’s business, each Grantor agrees to prosecute diligently in accordance with reasonable business practices any Person infringing, misappropriating, misusing, diluting, or violating the Grantor’s material Intellectual Property Rights.

 

(d)           Preservation of Marks.   Each Grantor agrees to use its Marks which are material to such Grantor’s business in interstate commerce during the time in which this Agreement is in effect and to take all such other actions as are reasonably necessary to preserve such material Marks as trademarks or service marks under the laws of the United States (in each case, other than any such Marks which, in the Grantor’s reasonable business judgment, are no longer necessary in the conduct of the Grantor’s business).

 

(e)           Maintenance of Registration.   Each Grantor shall, at its own expense, take all commercially reasonable actions to maintain all registrations and applications for registration of its material Intellectual Property Rights.

 

(f)            Future Registered Intellectual Property.   At its own expense, each Grantor shall take all commercially reasonable efforts to diligently prosecute all material applications for registrations of Intellectual Property Rights listed on Schedule 4, in each case for such Grantor and shall not abandon any such application prior to exhaustion of

 

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all administrative and judicial remedies (other than applications (i) deemed by such Grantor in its reasonable business judgment to be no longer prudent to pursue or (ii) that are deemed by such Grantor in its reasonable business judgment to no longer be necessary in the conduct of the Grantor’s business). If any Grantor makes an application for registration of an Intellectual Property Right before the United States Patent and Trademark Office the United States Copyright Office, or an equivalent thereof in any state of the United States, within sixty (60) days of the submission of such application or, if later, as soon as legally permissible, such Grantor shall deliver to the Collateral Agent a grant of a security interest in such application, to the Collateral Agent and at the expense of such Grantor, confirming the grant of a security interest in such Intellectual Property Right to the Collateral Agent hereunder, the form of such security to be substantially in the form of Annex B hereto in the case of Marks, Annex C hereto in the case of Patents and Annex D hereto in the case of Copyrights or in such other form as may be reasonably satisfactory to the Collateral Agent. Where a registration of an Intellectual Property Right is issued hereafter to any Grantor as a result of any application now or hereafter pending, if a security interest in such application has not already been granted to or recorded on behalf of the Collateral Agent hereunder, such Grantor shall deliver to the Collateral Agent a grant of security interest within sixty (60) days.

 

(g)           Remedies.   Each Grantor hereby grants to the Collateral Agent a limited power of attorney to sign, upon the occurrence and during the continuance of an Event of Default at the direction of the Trustee or the requisite Holders in accordance with the Indenture, any document which may be required by the United States Patent and Trademark Office or similar registrar in order to effect an absolute assignment of all right, title and interest in each registered Intellectual Property Right and each application for such registration, and record the same. If an Event of Default shall occur and be continuing, the Collateral Agent may at the direction of the Trustee or the requisite Holders in accordance with the Indenture, by written notice to the relevant Grantor, take any or all of the following actions: (i) declare the entire right, title and interest of such Grantor in and to the Intellectual Property Rights, vested in the Collateral Agent for the benefit of the Secured Parties, in which event such rights, title and interest shall immediately vest, in the Collateral Agent for the benefit of the Secured Parties, and the Collateral Agent shall be entitled to exercise the power of attorney referred to in this Section 6(g) hereof to execute, cause to be acknowledged and notarized and record said absolute assignment with the applicable agency or registrar; (ii) take and use or sell the Intellectual Property Rights; (iii) take and use or sell the goodwill of such Grantor’s business symbolized by the Marks and the right to carry on the business and use the assets of such Grantor in connection with which the Marks or Domain Names have been used; and (iv) direct such Grantor to refrain, in which event such Grantor shall refrain, from using the Intellectual Property Rights in any manner whatsoever, directly or indirectly, and such Grantor shall execute such further documents that the Collateral Agent may reasonably request to further confirm this and to transfer ownership of the Intellectual Property Rights and registrations and any pending applications in the United States Copyright Office, United States Patent and Trademark Office, equivalent office in a state of the United States or a foreign jurisdiction or applicable Domain Name registrar to the Collateral Agent.

 

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(h)           Discontinuance.  Nothing in this Agreement shall prevent any Grantor from discontinuing the use or maintenance of any Intellectual Property Rights if (i) such Grantor so determines in its reasonable business judgment and (ii) it is not prohibited by the Indenture Documents.

 

6.             Rights of Collateral Agent.  Collateral Agent shall have the rights contained in this Section 6 at all times during the period of time this Agreement is effective.

 

(a)           Financing Statements Filings.  Each Grantor hereby authorizes Collateral Agent to file (or any Secured Party to file on behalf of the Collateral Agent), without the signature of such Grantor, (but the Collateral Agent shall not be obligated to so file) one or more financing or continuation statements, and amendments thereto, relating to the Collateral (which statements may describe the Collateral as “all assets” of such Grantor); provided, however, such authorization shall not relieve any Grantor from its respective obligations to take all actions necessary to perfect and maintain the perfection of the Collateral Agent’s Lien on the Collateral.  All charges, expenses and fees that the Collateral Agent may incur in doing any of the foregoing, and any local taxes relating thereto, shall be paid by the Grantors to the Collateral Agent within ten (10) Business Days of demand.

 

(b)           Power of Attorney.  Each Grantor hereby irrevocably appoints Collateral Agent as such Grantor’s attorney-in-fact, such power of attorney being coupled with an interest, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, after the occurrence and during the continuance of an Event of Default, to take any action and to execute any instrument that Collateral Agent or any Secured Party may deem necessary or appropriate to accomplish the purposes of this Agreement, including without limitation: (i) to demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of the Collateral; (ii) to receive, endorse and collect any drafts or other instruments, documents and chattel paper in connection with clause (i) above; and (iii) to file any claims or take any action or institute any proceedings that Collateral Agent or any Secured Party may deem necessary or appropriate for the collection and/or preservation of the Collateral or otherwise to enforce the rights of Collateral Agent and the Secured Parties with respect to the Collateral.

 

(c)           Further Rights.  Collateral Agent has been appointed as the Collateral Agent hereunder pursuant to the Indenture and shall be entitled to the benefits of the  Indenture Documents.  Notwithstanding anything contained herein to the contrary, Collateral Agent may employ agents, trustees, or attorneys-in-fact and may vest any of them with any property (including, without limitation, any Collateral pledged hereunder), title, right or power deemed necessary for the purposes of such appointment.  Notwithstanding anything to the contrary herein, the following provisions shall govern the Collateral Agent’s rights, powers, obligations and duties under this Agreement:

 

(i)         The Collateral Agent shall have no duty to act, consent or request any action of the Grantors or any other Person in connection with this Agreement (including all schedules and exhibits attached hereto) unless the Collateral Agent

 

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shall have received written direction from the Trustee or the requisite Holders in accordance with the Indenture.

 

(ii)        The Collateral Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals with similar property for its own account.  Neither any Secured Party nor any of its officers, directors, employees or agents shall be liable to the Grantors for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Collateral Agent hereunder are solely to protect the interests of the Secured Parties in the Collateral and shall not impose any duty upon any of them to exercise any such powers.  The Collateral Agent shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither it nor any of its officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for its own gross negligence or willful misconduct.  The Collateral Agent shall not be responsible for, nor incur any liability with respect to, (A) the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the security interest in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part under this Agreement or any of the other Indenture Documents, except to the extent such action or omission constitutes gross negligence or willful misconduct on the part of the Collateral Agent, (B) the validity or sufficiency of the Collateral or any agreement or assignment contained therein, (C) the validity of the title of the Grantors to the Collateral, (D) insuring the Collateral or (E) the payment of taxes, charges or assessments upon the Collateral or otherwise as to the maintenance of the Collateral.

 

(iii)       Notwithstanding any provision to the contrary elsewhere in this Agreement or any other Indenture Documents the Collateral Agent shall not have any duties or responsibilities, except those expressly set forth in this Agreement or such other Indenture Documents and no implied covenants, functions or responsibilities shall be read into this Agreement or otherwise exist against Collateral Agent.

 

(iv)       The Collateral Agent shall not be deemed to be in a relationship of trust or confidence with any Secured Party, or any other Person (including any beneficiary under the Intercreditor Agreement) by reason of this Agreement, and shall not owe any fiduciary, trust or other special duties to the  any Secured Party, or any other Person (including any beneficiary under the   Intercreditor Agreement) by reason of this Agreement.  The parties hereto acknowledge that Collateral Agent’s duties do not include any discretionary authority,

 

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determination, control or responsibility with respect to any Indenture Documents or any Collateral, notwithstanding any rights or discretion that may be granted to the Collateral Agent in such Indenture Documents.  The provisions of this Agreement, including, without limitation those provisions relating to the rights, duties, powers, privileges, protections and indemnification of the Collateral Agent shall apply with respect to any actions taken or not taken by the Collateral Agent under any Indenture Documents.

 

(v)        Notwithstanding anything herein to the contrary, in no event shall the Collateral Agent have any obligation to inquire or investigate as to the correctness, veracity, or content of any instruction received from any party to this Agreement or any other Indenture Documents.  In no event shall the Collateral Agent have any liability in respect of any such instruction received by it and relied on with respect to any action or omission taken pursuant thereto.

 

(vi)       With respect to the Collateral Agent’s duties under this Agreement or any of the Indenture Documents, the Collateral Agent may act through its attorneys, accountants, experts and such other professionals as the Collateral Agent deems necessary, advisable or appropriate and shall not be responsible for the misconduct or negligence of any attorney, accountant, expert or other such professional appointed with due care.

 

(vii)      Neither the Collateral Agent nor any of its experts, officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (x) liable for any action lawfully taken or omitted to be taken by it under or in connection with this Agreement or any of the Indenture Documents (except for its gross negligence or willful misconduct), or (y) responsible in any manner for any recitals, statements, representations or warranties (other than its own recitals, statements, representations or warranties) made in this Agreement or any of the other Indenture Documents or in any certificate, report, statement or other document referred to or provided for in, or received by the Collateral Agent under or in connection with, this Agreement or any of the Indenture Documents or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any of the Indenture Documents or for any failure of the Grantors or any other Person to perform their obligations hereunder and thereunder.  The Collateral Agent shall not be under any obligation to any Person to ascertain or to inquire as to (A) the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any of the Indenture Documents  or to inspect the properties, books or records of the Grantors, (B) whether or not any representation or warranty made by any Person in connection with this Agreement or any Indenture Documents is true, (C) the performance by any Person of its obligations under this Agreement or any of the Indenture Documents or (D) the breach of or default by any Person of its obligations under this Agreement or any of the Indenture Documents.

 

(viii)     The Collateral Agent shall not be bound or required to take any action that it believes, based on advice of counsel, is in conflict with any

 

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applicable law, this Agreement or any of the other Indenture Documents, or any order of any court or administrative agency.

 

(ix)       The Collateral Agent shall be authorized to but shall not be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or monitoring or maintaining the perfection of any security interest in the Collateral.  It is expressly agreed, to the maximum extent permitted by applicable law, that the Collateral Agent shall have no responsibility for (x) taking any necessary steps to preserve rights against any Person with respect to any Collateral or (y) taking any action to protect against any diminution in value of the Collateral, but, in each case (A) subject to the requirement that the Collateral Agent may not act or omit to take any action if such act or omission would constitute gross negligence or willful misconduct and (B) the Collateral Agent may do so and all expenses reasonably incurred in connection therewith shall be part of the Indenture Documents.

 

(x)        The Collateral Agent shall not be liable or responsible for any loss or diminution in the value of any Collateral, by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Agent in good faith, except to the extent of the Collateral Agent’s gross negligence or willful misconduct.

 

(xi)       Notwithstanding anything in this Agreement or any of the Indenture Documents to the contrary, (A) in no event shall the Collateral Agent or any officer, director, employee, representative or agent of the Collateral Agent be liable under or in connection with this Agreement or any of the Indenture Documents for indirect, special, incidental, punitive or consequential losses or damages of any kind whatsoever, including but not limited to lost profits or loss of opportunity, whether or not foreseeable, even if the Collateral Agent has been advised of the possibility thereof and regardless of the form of action in which such damages are sought; and (B) the Collateral Agent shall be afforded all of the rights, powers, immunities and indemnities set forth in this Agreement or in all of the other Indenture Documents to which it is a signatory as if such rights, powers, immunities and indemnities were specifically set out in each such Indenture Documents.  In no event shall the Collateral Agent be obligated to invest any amounts received by it hereunder.

 

(xii)      The Collateral Agent shall be entitled conclusively to rely, and shall be fully protected in relying, upon any note, writing, resolution, request, direction, certificate, notice, consent, affidavit, letter, cablegram, telegram, telecopy, email, telex or teletype message, statement, order or other document or conversation believed by it in good faith to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and/or upon advice and/or statements of legal counsel, independent accountants and other experts reasonably selected by the Collateral Agent and need not investigate any fact or matter stated in any such document.  Any such statement of legal counsel shall be

 

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full and complete authorization and protection in respect of any action taken or suffered by it hereunder in accordance therewith.  The Collateral Agent shall be fully justified in failing or refusing to take any action under this Agreement or any of the other Indenture Documents (A) if such action would, in the reasonable opinion of the Collateral Agent (which may be based on the opinion of legal counsel), be contrary to applicable law or any of the Indenture Documents, (B) if such action is not provided for in this Agreement or any of the other Indenture Documents, (C) if, in connection with the taking of any such action hereunder or under any of the Indenture Documents that would constitute an exercise of remedies hereunder or under any of the Indenture Documents it shall not first be indemnified to its satisfaction by the Holders against any and all risk of nonpayment, liability and expense that may be incurred by it, its agents or its counsel by reason of taking or continuing to take any such action, or (D) if, notwithstanding anything to the contrary contained in this Agreement, in connection with the taking of any such action that would constitute a payment due under any agreement or document, it shall not first have received from the Holders or the applicable Grantor funds equal to the amount payable. The Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any of the other Indenture Documents in accordance with a request of the Trustee or the requisite Holders in accordance with the Indenture, and such request and any action taken or failure to act pursuant thereto shall be binding upon all the other Holders and the Trustee.

 

(xiii)     The Collateral Agent shall not be deemed to have actual, constructive, direct or indirect knowledge or notice of the occurrence of any Default or Event of Default unless and until the Collateral Agent has received a written notice or a certificate from a Grantor, a Holder or the Trustee stating that a Default or Event of Default has occurred.  The Collateral Agent shall have no obligation whatsoever either prior to or after receiving such notice or certificate to inquire whether a Default or Event of Default has in fact occurred and shall be entitled to rely conclusively, and shall be fully protected in so relying, on any notice or certificate so furnished to it.  No provision of this Agreement, the Intercreditor Agreement or any of the Indenture Documents shall require the Collateral Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties under this Agreement, any of the other Indenture Documents or the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability including an advance of moneys necessary to perform work or to take the action requested is not reasonably assured to it, the Collateral Agent may decline to act unless it receives indemnity satisfactory to it in its sole discretion, including an advance of moneys necessary to take the action requested. The Collateral Agent shall be under no obligation or duty to take any action under this Agreement or any of the other Indenture Documents or otherwise if taking such action (x) would subject the Collateral Agent to a tax in any jurisdiction where it is not then subject to a tax or (y) would require the Collateral Agent to qualify to do business in any jurisdiction where it is not then so qualified.

 

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7.             Remedies and Related Rights.  Subject to the terms of the Intercreditor Agreement, if an Event of Default shall have occurred and be continuing, then and in every such case, Collateral Agent, in addition to any rights now or hereafter existing under applicable law and under the other provisions of this Agreement, shall have all rights as a secured creditor under any UCC, and such additional rights and remedies to which a secured creditor is entitled under the laws in effect in all relevant jurisdictions when a debtor is in default under a security agreement and may exercise one or more of the rights and remedies provided in this Section.

 

(a)           Remedies. If an Event of Default shall have occurred and be continuing, Collateral Agent may from time to time at the written direction of the Trustee or the requisite Holders in accordance with the Indenture, without limitation and without notice except as expressly provided in any of the Indenture Documents:

 

(i)            exercise in respect of the Collateral all the rights and remedies of a secured party under the UCC (whether or not the UCC applies to the affected Collateral);

 

(ii)           require the Grantors to, and such Grantors hereby agree that they will at their expense and upon request of Collateral Agent, assemble the Collateral as directed by Collateral Agent and make it available to Collateral Agent at a place where such Collateral is permitted to be kept pursuant to Section 3(h);

 

(iii)          reduce the Secured Parties’ claim to judgment or foreclose or otherwise enforce, in whole or in part, the security interest granted hereunder by any available judicial procedure;

 

(iv)          sell or otherwise dispose of, at its office, on the premises of any Grantor or elsewhere, the Collateral, for cash, on credit, and upon such terms as may be commercially reasonable, as a unit or in parcels, by public or private proceedings, and by way of one or more contracts (it being agreed that the sale or other disposition of any part of the Collateral shall not exhaust Collateral Agent’s power of sale, but sales or other dispositions may be made from time to time until all of the Collateral has been sold or disposed of or until the Indenture Obligations have been paid and performed in full), and at any such sale or other disposition it shall not be necessary to exhibit any of the Collateral;

 

(v)           buy the Collateral, or any portion thereof, at any public sale;

 

(vi)          buy the Collateral, or any portion thereof, at any private sale, for cash, on credit, and upon such other terms as may be commercially reasonable, if the Collateral is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations;

 

(vii)         apply for the appointment of a receiver for the Collateral, and Grantors hereby consent to any such appointment; and

 

(viii)        at the option of and if instructed by the requisite Holders, retain the Collateral on behalf of the Holders or distribute the Collateral to the Holders,

 

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in each case in satisfaction of the Indenture Obligations, whenever the circumstances are such that Collateral Agent is entitled to do so under the UCC or otherwise; to the full extent permitted by the UCC, Collateral Agent shall be permitted to elect whether such retention shall be in full or partial satisfaction of the Indenture Obligations.

 

In the event Collateral Agent shall elect (at the instruction of the requisite Holders) to sell the Collateral, Collateral Agent may sell the Collateral without giving any warranties and shall be permitted to specifically disclaim any warranties of title or the like.  In the event the purchaser fails to pay for the Collateral, Collateral Agent may resell the Collateral and Grantors shall be credited with the proceeds of the sale.  Each Grantor agrees that in the event such Grantor or any obligor is entitled to receive any notice under the UCC, as it exists in the state governing any such notice, of the sale or other disposition of any Collateral, reasonable notice shall be deemed given when such notice is deposited in a depository receptacle under the care and custody of the United States Postal Service, postage prepaid, at such party’s address set forth on the signature pages hereof, ten (10) days prior to the date of any public sale, or after which a private sale, of any of such Collateral is to be held.  Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  Collateral 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.

 

(b)           Application of Proceeds.  If any Event of Default shall have occurred and be continuing, any cash held by Collateral Agent as Collateral, and any cash proceeds received by Collateral Agent in respect of any sale or other disposition of, collection from, or other realization upon, all or any part of the Collateral shall be transferred, conveyed or distributed to the Trustee to be applied in accordance with the Indenture or as otherwise may be directed by the Trustee pursuant to the Indenture Documents.

 

(c)           Deficiency.  In the event that the proceeds of any sale of, collection from, or other realization upon, all or any part of the Collateral by Collateral Agent are insufficient to pay all amounts to which Collateral Agent is legally entitled, the Company, the other Grantors and any other Person who guaranteed or is otherwise obligated to pay all or any portion of the Indenture Obligations shall be liable for the deficiency, together with interest thereon as provided in the Indenture Documents, to the full extent permitted by the UCC.

 

(d)           Waiver.   Except as otherwise provided in this Agreement, EACH GRANTOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH COLLATERAL AGENT’S TAKING POSSESSION OR COLLATERAL AGENT’S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH RIGHT WHICH ANY GRANTOR WOULD OTHERWISE HAVE UNDER THE CONSTITUTION OR ANY STATUTE OF THE UNITED STATES OR OF ANY STATE, and each Grantor hereby

 

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further waives, to the extent permitted by applicable law, and releases Collateral Agent from:

 

(i)            all claims, damages and demands against the Collateral Agent arising out of the repossession, retention or sale of all or any part of the Collateral, except any damages which are the direct result of Collateral Agent’s gross negligence or willful misconduct;

 

(ii)           all claims, damages and demands against Collateral Agent arising by reason of the fact that the price at which the Collateral, or any part thereof, may have been sold at a private sale was less than the price which might have been obtained at public sale or was less than the aggregate amount of the Indenture Obligations, even if Collateral Agent accepts the first offer received which Collateral Agent in good faith deems to be commercially reasonable under the circumstances and does not offer the Collateral, or any portion thereof, to more than one offeree;

 

(iii)          all other requirements as to the time, place and terms of sale or other requirements with respect to the enforcement of Collateral Agent’s rights hereunder; and

 

(iv)          all equities or rights of redemption, appraisal, valuation, stay, extension or moratorium now or hereafter in force under any applicable law in order to prevent or delay the enforcement of this Agreement or the absolute sale or other disposition of the Collateral or any portion thereof, and each Grantor, for itself and all who may claim under it, insofar as it or they now or hereafter lawfully may, hereby waives the benefit of all such laws.

 

Any sale of, or the grant of options to purchase, or any other realization upon, any Collateral shall operate to divest all right, title, interest, claim and demand, either at law or in equity, of each Grantor therein and thereto, and shall be a perpetual bar both at law and in equity against each Grantor and against any and all Persons claiming or attempting to claim the Collateral so sold, optioned or realized upon, or any part thereof, from, through and under the Grantor.

 

(e)           Remedies Cumulative.  No right, power or remedy herein conferred upon or reserved to Collateral Agent is intended to be exclusive of any other right, power or remedy, and every such right, power and remedy shall, to the extent permitted by applicable Law, be cumulative and in addition to every other right, power and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent or later assertion or employment of any other appropriate right, power or remedy.

 

(f)            Delay Not Waiver.  No delay or omission of Collateral Agent or any other Secured Party to exercise any right, power or remedy accruing upon the occurrence and during the continuance of any Event of Default shall impair any such right or power or

 

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shall be construed to be a waiver of any such Event of Default or an acquiescence therein; and every right, power and remedy given by this Agreement may be exercised from time to time, and as often as shall be deemed expedient, by Collateral Agent.

 

(g)           Restoration of Rights and Powers.  In case Collateral Agent shall have instituted any action or proceeding to enforce any right, power or remedy under this Agreement by foreclosure, sale, entry, leasing, conveyance, assignment, transfer, other disposition, other realization or otherwise, and such action or proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to Collateral Agent, then and in every such case each Grantor, Collateral Agent and each other Secured Party shall be restored to their former positions and rights hereunder with respect to the Collateral subject to the security interest created under this Agreement, and all rights, remedies and powers of Collateral Agent and each Grantor shall continue as if no such actions or proceedings had been instituted.

 

(h)           Environmental Liability.  In the event that the Collateral Agent is requested to acquire title to an asset for any reason, or take any managerial action of any kind in regard thereto, which in the Collateral Agent’s sole discretion may cause the Collateral Agent to be considered an “owner or operator” under any environmental laws or otherwise cause the Collateral Agent to incur, or be exposed to, any environmental liability or any liability under any other federal, state or local law, the Collateral Agent reserves the right to not follow such direction, to resign as Collateral Agent or to arrange for the transfer of the title or control of the asset to a court appointed receiver.  Neither the Trustee nor the Collateral Agent will be liable to any Person for any environmental liability or any environmental claims or contribution actions under any federal, state or local law, rule or regulation by reason of the Collateral Agent’s actions and conduct as authorized, empowered and directed hereunder or relating to any kind of discharge or release or threatened discharge or release of any hazardous materials into the environment.  Neither the Trustee nor the Collateral Agent shall be responsible for any loss incurred by the Secured Parties by the Collateral Agent’s refusal to take actions to acquire title or other actions that may result in it being considered an “owner or operator”.

 

8.             Security Interest Absolute.  All rights of the Collateral Agent and the security interests granted to the Collateral Agent hereunder, and all obligations of Grantors hereunder, are absolute and unconditional, irrespective of:

 

(a)           Any lack of validity or enforceability of the Indenture, the Notes or any other Indenture Document; or

 

(b)           The failure of the Collateral Agent or any holder of a Note:

 

(i)            To assert any claim or demand or to enforce any right or remedy under the provisions of the Notes or any other Indenture Document or otherwise, or

 

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(ii)           To exercise any right or remedy against any collateral securing any obligations of Grantors owing to the Secured Parties; or

 

(c)                   Any change in the time, manner or place of payment of, or in any other term of, all or any of the Indenture Obligations or any other extension, compromise or renewal of any Indenture Obligations; or

 

(d)                   Any reduction, limitation, impairment or termination of any Indenture Obligations for any reason (other than the satisfaction and discharge of the Indenture Obligations in full), including any claim of waiver, release, surrender, alteration or compromise (and Grantors hereby waive any right to or claim of any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of any invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Indenture Obligations); or

 

(e)                   Any amendment to, rescission, waiver, or other modification of, or any consent to departure from, the Notes or any other Indenture Document; or

 

(f)                    Any addition, exchange, release, surrender or nonperfection of any collateral (including the Collateral), or any amendment to or waiver or release of or addition to or consent to departure from any guaranty, for any of the Indenture Obligations; or

 

(g)                   Any other circumstances which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Grantor, including, without limitation, any and all suretyship defenses.

 

9.                                       Indemnity.

 

(a)           Each Grantor jointly and severally agrees to indemnify, reimburse and hold the Collateral Agent, each other Secured Party and their respective successors, assigns, officers, directors, employees, affiliates and agents (hereinafter in this Section 9 referred to individually as “Indemnitee,” and collectively as “Indemnitees”) harmless from any and all liabilities, obligations, damages, injuries, penalties, claims, demands, actions, suits, judgments and any and all out-of-pocket costs, expenses or disbursements (including reasonable attorneys’ fees and expenses) (for the purposes of this Section 9 the foregoing are collectively called “expenses”) of whatsoever kind and nature imposed on, asserted against or incurred by any of the Indemnitees in any way relating to or arising out of this Agreement, any other Indenture Document or any other document executed in connection herewith or therewith or in any other way connected with the administration of the transactions contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to or arising out of the manufacture, ownership, ordering, purchase, delivery, control, acceptance, lease, financing, possession, operation, condition, sale, return or other disposition, or use of the Collateral (including latent or other defects, whether or not discoverable), the violation of the laws of any country, state or other governmental body or unit, any tort (including claims arising or imposed under the doctrine of strict liability, or for or on

 

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account of injury to or the death of any Person (including any Indemnitee), or property damage), or contract claim; provided, that no Indemnitee shall be indemnified pursuant to this Section 9(a) for losses, damages or liabilities to the extent caused by the gross negligence or willful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision).  Each Grantor agrees that upon written notice by any Indemnitee of the assertion of such a liability, obligation, damage, injury, penalty, claim, demand, action, suit or judgment, the relevant Grantor shall assume full responsibility for the defense thereof.  Each Indemnitee agrees to promptly notify the relevant Grantor of any such assertion of which such Indemnitee has knowledge.

 

(b)           Without limiting the application of Section 9(a) hereof, each Grantor agrees, jointly and severally, to pay or reimburse the Collateral Agent for any and all reasonable fees, out-of-pocket costs and expenses of whatever kind or nature incurred in connection with the creation, preservation or protection of the Collateral Agent’s Liens on, and security interest in, the Collateral, including all fees and taxes in connection with the recording or filing of instruments and documents in public offices, payment or discharge of any taxes or Liens upon or in respect of the Collateral, premiums for insurance with respect to the Collateral and all other fees, out-of-pocket costs and expenses in connection with protecting, maintaining or preserving the Collateral and the Collateral Agent’s interest therein, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions, suits or proceedings arising out of or relating to the Collateral.

 

(c)           Without limiting the application of Section 9(a) or (b) hereof, each Grantor agrees, jointly and severally, to pay, indemnify and hold each Indemnitee harmless from and against any loss, out-of-pocket costs, damages and expenses which such Indemnitee may suffer, expend or incur in consequence of or growing out of any misrepresentation by any Grantor in this Agreement, any other Indenture Document or in any writing contemplated by or made or delivered pursuant to or in connection with this Agreement or any other Indenture Documents.

 

(d)           If and to the extent that the obligations of any Grantor under this Section 9 are unenforceable for any reason, such Grantor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.

 

(e)           Any amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Indenture Obligations secured by the Collateral.  The indemnity obligations of each Grantor contained in this Section 9 shall continue in full force and effect notwithstanding the full payment of all of the other Indenture Obligations and notwithstanding the full payment of all the Notes issued under the Indenture and the payment of all other Indenture Obligations and notwithstanding the discharge thereof and the occurrence of the Termination Date.

 

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(f)            The agreements in this Section shall survive repayment of the Indenture Obligations, all other amounts payable under the Indenture Documents and the resignation or removal of the Collateral Agent.

 

10.           Miscellaneous.

 

(a)           Amendment.  None of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever unless in writing duly signed by each Grantor and the Collateral Agent (with the written consent of the Holders in accordance with the Indenture).

 

(b)           Waiver by Collateral Agent.  Collateral Agent may waive any Event of Default without waiving any other prior or subsequent Event of Default.  Neither the failure by Collateral Agent to exercise, nor the delay by Collateral Agent in exercising, any right or remedy upon any Event of Default shall be construed as a waiver of such Event of Default or as a waiver of the right to exercise any such right or remedy at a later date.  No single or partial exercise by Collateral Agent of any right or remedy hereunder shall exhaust the same or shall preclude any other or further exercise thereof, and every such right or remedy hereunder may be exercised at any time.  No waiver of any provision hereof or consent to any departure by any Grantor therefrom shall be effective unless the same shall be in writing and signed by Collateral Agent and then such waiver or consent shall be effective only in the specific instances, for the purpose for which given and to the extent therein specified.  No notice to or demand on any Grantor in any case shall of itself entitle such Grantor to any other or further notice or demand in similar or other circumstances.

 

(c)           Costs and Expenses.  The Grantors will upon demand pay to Collateral Agent and the Secured Parties the amount of any and all reasonable out-of-pocket costs and expenses (including without limitation, reasonable attorneys’ fees and expenses), which Collateral Agent and the Secured Parties may incur in connection with the enforcement of any of the rights of Collateral Agent and the Secured Parties under the Indenture Documents in connection with any Event of Default.

 

(d)           No Third Party Beneficiaries.   The agreements of the parties hereto are solely for the benefit of the Grantors, Collateral Agent, and the other Secured Parties and their respective successors and assigns and no other Person shall have any rights hereunder.

 

(e)           Termination; Release.  After the Termination Date, this Agreement (including any provision providing for the appointment of Collateral Agent as attorney-in-fact for any Grantor) and the Liens and security interests granted hereunder shall terminate automatically and without further action by any party, and Collateral Agent, at the request and expense of the Company, will execute and deliver to each Grantor the proper instruments acknowledging the termination of this Agreement, and will duly assign, transfer and deliver to each Grantor (without recourse and without any representation or warranty) such of the Collateral as may be in possession of the Collateral Agent and has not theretofore been sold or otherwise applied or released pursuant to this

 

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Agreement.  Collateral Agent shall also execute and deliver, at the request and expense of the Company, upon termination of this Agreement, such UCC termination statements, and such other documentation as shall be reasonably requested by any Grantor to effect the termination and release of the Liens and security interests granted by this Agreement.

 

(f)            Governing Law; Submission to Jurisdiction.

 

(i)            THIS AGREEMENT, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE AND MATTERS RELATING TO THE CREATION, VALIDITY, ENFORCEMENT OR PRIORITY OF THE LIENS CREATED BY THIS AGREEMENT, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAWS RULES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATION LAW) EXCEPT AS MAY BE REQUIRED BY OTHER MANDATORY PROVISIONS OF LAW.

 

(ii)           Each Grantor hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State court sitting in New York City for the purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby.  Each Grantor hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.  To the extent permitted by applicable law, each Grantor further irrevocably agrees to the service of process of any of the aforementioned courts in any suit, action or proceeding by the mailing of copies thereof by certified mail, postage prepaid, return receipt requested, to such Grantor at the address referenced in Section 10(i), such service to be effective upon the date indicated on the postal receipt returned from the Grantor.

 

(iii)          To the extent any Grantor may, in any action or proceeding arising out of or relating to this Agreement, be entitled under any applicable law to require or claim that Collateral Agent or any Secured Party post security for costs or take similar action, such Grantor hereby irrevocably (to the extent permitted by applicable law) waives and agrees not to claim the benefit of such entitlement.

 

(g)           WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY RELATING HERETO OR THERETO.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE SECURED PARTIES TO ENTER INTO THIS AGREEMENT AND THE OTHER INDENTURE DOCUMENTS.

 

35

 

(h)           Severability.  If any provision of this Agreement is held by a court of competent jurisdiction to be illegal, invalid or unenforceable under present or future laws, such provision shall be fully severable, shall not impair or invalidate the remainder of this Agreement and the effect thereof shall be confined to the provision held to be illegal, invalid or unenforceable.

 

(i)            Notices.  All notices to permitted or required under this Agreement may be sent as follows:

 

If to any Grantor: to the address of each Grantor set forth on the signature page hereto.

 

If to Collateral Agent:  U.S. Bank National Association, Corporate Trust Services, 60 Livingston Avenue, St. Paul, MN 55107-1419, Attention of Raymond S. Haverstock, A.M. Castle Administrator, Facsimile No. (651) 495-8097;

 

All notices to any Secured Party permitted or required under this Agreement may be sent to Collateral Agent with a copy to the Trustee.

 

Any notice required to be given to any Grantor shall be given to all Grantors.

 

Unless otherwise specifically provided herein, any notices or other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if made by hand delivery, by telecopier or registered or certified mail, postage prepaid, return receipt requested, addressed as set forth below each party’s name on the signature pages hereto.  Each of the parties by written notice to each other may designate additional or different addresses for notices to such Person.  Any notice or communication to the parties shall be deemed to have been given or made as of the date so delivered if personally delivered; when receipt is acknowledged, if faxed; and five (5) calendar days after mailing if sent by registered or certified mail, postage prepaid (except that a notice of change of address or a notice sent by mail to the Collateral Agent shall not be deemed to have been given until actually received by the addressee).

 

(j)            Binding Effect and Assignment.  This Agreement (i) creates a continuing security interest in the Collateral, (ii) shall be binding on each Grantor and its successors and assigns, and (iii) shall inure to the benefit of Collateral Agent and its successors and assigns.  Neither Collateral Agent’s nor Grantors’ rights and obligations hereunder may be assigned or otherwise transferred without the prior written consent of the other party, except that Collateral Agent’s rights under the Agreement may be assigned to any Person to whom the Indenture Obligations are validly assigned in accordance with the Indenture Documents.

 

(k)           Cumulative Rights.  All rights and remedies of Collateral Agent hereunder are cumulative of each other and of every other right or remedy that Collateral Agent

 

36

 

may otherwise have at law or in equity or under any of the other Indenture Documents, and the exercise of one or more of such rights or remedies shall not prejudice or impair the concurrent or subsequent exercise of any other rights or remedies.  Further, except as specifically noted as a waiver herein, no provision of this Agreement is intended by the parties to this Agreement to waive any rights, benefits or protection afforded to Collateral Agent under the UCC.

 

(l)            Gender and Number.  Within this Agreement, words of any gender shall be held and construed to include the other gender, and words in the singular number shall be held and construed to include the plural and words in the plural number shall be held and construed to include the singular, unless in each instance the context requires otherwise.

 

(m)          Descriptive Headings.  The headings in this Agreement are for convenience only and shall in no way enlarge, limit or define the scope or meaning of the various and several provisions hereof.

 

(n)           Intercreditor Agreement.

 

(i)            The Liens, security interests and rights granted hereunder or under any other Collateral Agreement in favor of Collateral Agent for the benefit of itself, the Trustee and the Holders in respect of the Collateral and the exercise of any right related thereto thereby shall be subject, in each case, to the terms of the Intercreditor Agreement.

 

(ii)           In the event of any direct conflict between the express terms and provisions of this Agreement or any Collateral Agreement and of the Intercreditor Agreement, the terms and provisions of the Intercreditor Agreement shall control.

 

(iii)          Notwithstanding anything to the contrary herein, any provision hereof that requires any Grantor to (i) deliver any Collateral to Collateral Agent or (ii) provide that the Collateral Agent have control over such Collateral may be satisfied by (A) the delivery of such Collateral by such Grantor to the Senior Credit Facility Agent for the benefit of the lenders party to the Senior Credit Facility and Collateral Agent for the benefit of itself, the Trustee and the Holders pursuant to Section 5.1 of the Intercreditor Agreement and (B) providing that the Senior Credit Facility Agent be provided with control with respect to such Collateral of such Grantor for the benefit of the lenders party to the Senior Credit Facility and Collateral Agent for the benefit of itself, the Trustee and the Holders pursuant to Section 5.1 of the Intercreditor Agreement.

 

(o)           Additional Grantors.  Additional Subsidiaries may become a party to this Agreement by the execution of a Security Agreement Joinder and delivery of such other supporting documentation, corporate governance and authorization documents, and an opinion of counsel, as required by Section 4.21 of the Indenture.

 

37

 

[Signature Pages Follow]

 

38

 

EXECUTED as of the date first written above.

 

	
GRANTORS:
    	
 
    	
COLLATERAL   AGENT:
    
	
 
    	
 
    	
 
    
	
A. M.   CASTLE & CO., a Maryland corporation
    	
 
    	
U.S.   BANK NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott F. Stephens
    	
 
    	
By:   
    	
/s/   Lynn Gosselin
    
	
Name:   Scott F. Stephens
    	
 
    	
Name:   Lynn Gosselin
    
	
Title:   Vice President & Chief Financial Officer 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
1420   Kensington Road—Suite 220
   Oak Brook, IL 60523
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ADVANCED   FABRICATING TECHNOLOGY, LLC, a Delaware limited liability company
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott F. Stephens
    	
 
    	
 
    
	
Name:   Scott F. Stephens
    	
 
    	
 
    
	
Title:   Vice President & Treasurer 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
687   Byrne Industrial Drive
   Rockford, MI 49341
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
KEYSTONE   TUBE COMPANY, LLC, a Delaware limited liability company
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/ Scott F. Stephens
    	
 
    	
 
    
	
Name:   Scott F. Stephens
    	
 
    	
 
    
	
Title:   Treasurer 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
1420   Kensington Road—Suite 220
   Oak Brook, IL 60523
    	
 
    	
 
    

 

 

	
 
    	
 
    	
 
    
	
OLIVER   STEEL PLATE CO., a Delaware corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott F. Stephens
    	
 
    	
 
    
	
Name:   Scott F. Stephens
    	
 
    	
 
    
	
Title:   Director & Treasurer 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
7851   Bavaria Road
   Twinsburg, OH 44087
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PARAMONT   MACHINE COMPANY, LLC, a Delaware limited liability company
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott F. Stephens
    	
 
    	
 
    
	
Name:   Scott F. Stephens
    	
 
    	
 
    
	
Title:   Vice President 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
963   Commercial Ave., SE
   New Philadelphia, OH 44663
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TOTAL   PLASTICS, INC. a Michigan corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott F. Stephens
    	
 
    	
 
    
	
Name:   Scott F. Stephens
    	
 
    	
 
    
	
Title:   Vice President 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
2810   N. Burdick Street
   Kalamazoo, MI 49004
    	
 
    	
 
    

 

 

	
TRANSTAR   INVENTORY CORP., a Delaware corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott F. Stephens
    	
 
    	
 
    
	
Name:   Scott F. Stephens
    	
 
    	
 
    
	
Title:   Vice President & Chief Financial Officer 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
1420   Kensington Road—Suite 220
   Oak Brook, IL 60523
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TRANSTAR   METALS CORP., a Delaware corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott F. Stephens
    	
 
    	
 
    
	
Name:   Scott F. Stephens
    	
 
    	
 
    
	
Title:   Vice President 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
1420   Kensington Road—Suite 220
   Oak Brook, IL 60523
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TUBE   SUPPLY, LLC, a Texas limited liability company
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott F. Stephens 
    	
 
    	
 
    
	
Name:   Scott F. Stephens 
    	
 
    	
 
    
	
Title:   Director & Treasurer 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
5169   Ashley Court
   Houston, TX 77041
    	
 
    	
 
    

 

 

SCHEDULE 1

 

PLEDGED COMPANIES AND INTERESTS

 

Certificated Interests

 

	
Subsidiary
    	
 
    	
Parent
    	
 
    	
Jurisdiction of
   Formation
    	
 
    	
Class of Shares
    	
 
    	
Shares
   Outstanding
    	
 
    	
Percentage of
   Ownership
    
	
A.   M. Castle Metals UK, Limited
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
United   Kingdom
    	
 
    	
Common   Stock
    	
 
    	
1
    	
 
    	
100%
    
	
A.   M. Castle & Co. (Canada) Inc.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Ontario
    	
 
    	
Common   Stock
    	
 
    	
100
    	
 
    	
100%
    
	
A.   M. Castle & Co. (Singapore) Pte. Ltd.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Singapore
    	
 
    	
Common   Stock
    	
 
    	
1
    	
 
    	
100%
    
	
A.   M. Castle Metal Materials (Shanghai) Co., Ltd.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Shanghai
    	
 
    	
Percentage   Ownership Interest
    	
 
    	
100
    	
 
    	
100%
    
	
Castle   Metals de Mexico, S.A. de C.V.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Mexico
    	
 
    	
Percentage   Ownership Interest
    	
 
    	
100
    	
 
    	
100%
    
	
Datamet, Inc.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Illinois
    	
 
    	
Common   Stock
    	
 
    	
1,000
    	
 
    	
100%
    
	
HY-Alloy   Steels Company
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Delaware
    	
 
    	
Common   Stock
    	
 
    	
10
    	
 
    	
100%
    
	
Keystone   Service, Inc.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Indiana
    	
 
    	
Common   Stock
    	
 
    	
10,000
    	
 
    	
100%
    
	
Oliver   Steel Plate Co.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Delaware
    	
 
    	
Common   Stock
    	
 
    	
1,000
    	
 
    	
100%
    
	
Pacific   Metals Company
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
California
    	
 
    	
Common   Stock
    	
 
    	
1,000
    	
 
    	
100%
    
	
Total   Plastics, Inc.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Michigan
    	
 
    	
Common   Stock
    	
 
    	
510
    	
 
    	
100%
    
	
Transtar   Metals Corp.
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Delaware
    	
 
    	
Common   Stock
    	
 
    	
1,000
    	
 
    	
100%
    
	
Transtar   Inventory Corp.
    	
 
    	
Transtar   Metals Corp.
    	
 
    	
Delaware
    	
 
    	
Common   Stock
    	
 
    	
1,000
    	
 
    	
100%
    
	
Transtar   Marine Corp.
    	
 
    	
Transtar   Metals Corp.
    	
 
    	
Delaware
    	
 
    	
Common   Stock
    	
 
    	
1,000
    	
 
    	
100%
    
	
Transtar   Metals Limited
    	
 
    	
Transtar   Metals Corp.
    	
 
    	
United   Kingdom
    	
 
    	
Cumulative   Redeemable Preference Shares
    	
 
    	
3,528,160
    	
 
    	
100%
    
	
Transtar   Metals Limited
    	
 
    	
Transtar   Metals Corp.
    	
 
    	
United   Kingdom
    	
 
    	
Ordinary   Shares
    	
 
    	
5,497,491
    	
 
    	
100%
    
	
Transtar   Metals Limited
    	
 
    	
Transtar   Metals Corp.
    	
 
    	
United   Kingdom
    	
 
    	
Redeemable   Preference Shares
    	
 
    	
500,000
    	
 
    	
100%
    

 

 

Uncertificated Interests

 

	
Subsidiary
    	
 
    	
Parent
    	
 
    	
Jurisdiction of
   Formation
    	
 
    	
Class of Shares
    	
 
    	
Shares
   Outstanding
    	
 
    	
Percentage of
   Ownership
    
	
Keystone   Tube Company, LLC
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Delaware
    	
 
    	
Percentage   Ownership Interest
    	
 
    	
100
    	
 
    	
100%
    
	
KSI,   LLC
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Indiana
    	
 
    	
Common   Stock
    	
 
    	
10,000
    	
 
    	
100%
    
	
Tube   Supply, LLC
    	
 
    	
A.   M. Castle & Co.
    	
 
    	
Texas
    	
 
    	
Membership   Interests
    	
 
    	
n/a(1)
    	
 
    	
100%
    
	
Advanced   Fabricating Technology, LLC
    	
 
    	
Total   Plastics, Inc.
    	
 
    	
Delaware
    	
 
    	
Membership   Units
    	
 
    	
1,000
    	
 
    	
100%
    
	
Paramont   Machine Company, LLC
    	
 
    	
Total   Plastics, Inc.
    	
 
    	
Delaware
    	
 
    	
Percentage   Ownership Interest
    	
 
    	
100
    	
 
    	
100%
    

 

(1)Tube Supply, LLC’s operating agreement does not provide for a set number of membership interests.

 

 

SCHEDULE 2

 

CORPORATE EXISTENCE; SUBSIDIARIES

 

	
Grantor
    	
 
    	
Jurisdiction of Organization/
   Formation
    	
 
    	
Entity Type
    	
 
    	
Chief Executive Office
    
	
A.   M. Castle & Co.
    	
 
    	
Maryland
    	
 
    	
Corporation
    	
 
    	
1420   Kensington Road—Suite 220

Oak   Brook, IL 60523
    
	
Advanced   Fabricating Technology, LLC
    	
 
    	
Delaware
    	
 
    	
Limited   Liability Company
    	
 
    	
687   Byrne Industrial Drive

Rockford,   MI 49341
    
	
Keystone   Tube Company, LLC
    	
 
    	
Delaware
    	
 
    	
Limited   Liability Company
    	
 
    	
1420   Kensington Road—Suite 220

Oak   Brook, IL 60523
    
	
Oliver   Steel Plate Co.
    	
 
    	
Delaware
    	
 
    	
Corporation
    	
 
    	
7851   Bavaria Road

Twinsburg,   OH 44087
    
	
Paramont   Machine Company, LLC
    	
 
    	
Delaware
    	
 
    	
Limited   Liability Company
    	
 
    	
963   Commercial Ave., SE

New   Philadelphia, OH 44663
    
	
Total   Plastics, Inc.
    	
 
    	
Michigan
    	
 
    	
Corporation
    	
 
    	
2810   N. Burdick St.

Kalamazoo,   MI 49004
    
	
Transtar   Inventory Corp.
    	
 
    	
Delaware
    	
 
    	
Corporation
    	
 
    	
1420   Kensington Road—Suite 220

Oak   Brook, IL 60523
    
	
Transtar   Metals Corp.
    	
 
    	
Delaware
    	
 
    	
Corporation
    	
 
    	
1420   Kensington Road—Suite 220

Oak   Brook, IL 60523
    
	
Tube   Supply, LLC
    	
 
    	
Texas
    	
 
    	
Limited   Liability Company
    	
 
    	
5169   Ashley Court

Houston,   Texas 77041
    

 

 

Locations of Collateral:

 

	
Address
    
	
3900   Pinson Valley Parkway, Birmingham, AL 35217
    
	
3400   N. Wolf Road, Franklin Park, IL 60131
    
	
70   Quinsigamond Avenue, Worcester, MA 01610
    
	
3100   82nd Lane N.E., Blaine, MN 55449
    
	
11125   Metromont Parkway, Charlotte, NC 28269
    
	
26800   Miles Road, Bedford Heights, OH 44146
    
	
299   Canal Road, Fairless, PA 19030
    
	
2602   Pinewood Drive, Grand Prairie, TX 75051
    
	
6501   Bingle Road, Houston, TX 77092
    
	
1652   Gezon Parkway, Grand Rapids, MI 49509
    
	
2302   E. Magnolia Street, Suite A, Phoenix, AZ 85034
    
	
14001   Orange Avenue, Paramount, CA 90723
    
	
1625   Tillie Lewis Drive, Stockton, CA 95206
    
	
1420   Kensington Road, Suite 220, Oak Brook, IL 60523
    
	
4527   Columbia Ave., Hammond, IN 46327
    
	
3050   S. Hydraulic, Wichita, KS 67216
    
	
128   Thru-Way Parkway, Broussard, LA 70508
    
	
136   Dwight Rd., Longmeadow, MA
    
	
6100   Stilwell Street, Kansas City, MO 64120
    
	
4412   Dixie Highway, Fairfield, OH 45014
    
	
1134-A   N. Garnett Road, Tulsa, OK 74116
    
	
19500   Texas State Hwy 249 Ste 260, Houston, TX 77092
    
	
20826   68th Avenue South, Kent, WA 98032
    
	
5323   N. 118th Court, Milwaukee, WI 53225
    
	
2150   Argentia Road, Mississauga, Ontario, L5N 2K7
    
	
3635   Thatcher Avenue, Saskatoon, SK
    
	
835   Selkirk Avenue, Pointe Claire, Quebec
    
	
5515   - 42 Street, Edmonton, Alberta T6B 3P2
    
	
687   Byrne Industrial Drive, Rockford, MI 49341
    
	
7851   Bavaria Road, Twinsburg, OH 44087
    
	
963   Commercial Ave., SE, New Philadelphia, OH 44663
    
	
203-F   Kelsey Lane, Tampa, FL 33619
    
	
505   Busse Road, Elk Grove Village, IL 60007
    
	
7508   Honeywell Drive Fort Wayne, IN 46825
    
	
3316   Pogosa Court., Indianapolis, IN 46226
    
	
5242   Pulaski Highway, Baltimore, MD 21205
    
	
2810   North Burdick St., Kalamazoo, MI 49004
    
	
1661   Northfield Dr., Rochester Hills, MI 48309
    
	
1313   Old Kings Hwy, Maple Shade, NJ 08691
    
	
590   Franklin Avenue, Mt. Vernon, NY 10550
    
	
17851   Englewood Dr., Middleburg Heights, OH 44130
    
	
7561   B Derry St, Harrisburg, PA 17111
    
	
1800   Columbus Avenue, Pittsburgh, PA 15233
    
	
1518   Pontiac Avenue, Cranston, RI
    
	
3311   N. Park Blvd 10, Suite A, Alcoa, TN 37701
    
	
14400   South Figueroa St., Gardena, CA 92048
    

 

 

	
Address
    
	
12   Cascade Blvd., Orange, CT 06477
    
	
15   Executive Boulevard, Orange, CT 06477
    
	
3745   Cherokee Street, Suite 202, Kennesaw, GA 30144
    
	
2950   All Hallows, Wichita, KS
    
	
4611   East 31st Street South, Wichita, KS
    
	
2100   Design Road Suite 120, Arlington, TX
    
	
5169 Ashley Court, Houston, Texas 77041
    
	
4669 Brittmoore Road, Houston, Texas 77041
    
	
11441 Brittmoore Park Dr., Houston, Texas 77041
    
	
5500 Crawford, Houston, Texas 77041
    
	
2503-84   Avenue Sherwood Park, Edmonton, Alberta, Canada T6P 1K1
    
	
8411   Irvington Blvd, Houston, 77022
    
	
1018   Rankin Road, Houston, TX
    
	
2186   Grand Caillou Road, Houma, LA 70363
    
	
301   Redmond Rd., Houma, LA 70363
    

 

 

SCHEDULE 3

 

COMMERCIAL TORT CLAIMS

 

None.

 

 

SCHEDULE 4

 

INTELLECTUAL PROPERTY RIGHTS

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Alloy Steel Bars
    	
 
    	
Copyright
    	
 
    	
A 816722
    	
 
    	
1/12/1977
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals-Stock Catalogue
    	
 
    	
Copyright
    	
 
    	
A 875677
    	
 
    	
7/18/1977
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Starweld   Tubing
    	
 
    	
Copyright
    	
 
    	
A 911815
    	
 
    	
11/14/1977
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Outside   Sales Representative Training Program - Steel Plate Products
    	
 
    	
Copyright
    	
 
    	
TX 0-625-908
    	
 
    	
6/18/1980
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Outside   Sales Representative Training Program - Steel Plate Products Territory Plan   Book
    	
 
    	
Copyright
    	
 
    	
TX 0-625-909
    	
 
    	
6/18/1980
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Inside   Sales Representative Training Program - Steel Plate Products Workbook
    	
 
    	
Copyright
    	
 
    	
TX 0-625-910
    	
 
    	
6/18/1980
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Inside   Sales Representative Training Program - Steel Plate Products
    	
 
    	
Copyright
    	
 
    	
TX 0-625-911
    	
 
    	
6/18/1980
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Outside   Sales Representative Training Program - Steel Plate Products Administrator’s   Manual
    	
 
    	
Copyright
    	
 
    	
TX 0-625-912
    	
 
    	
6/18/1980
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Inside   Sales Representatives Training Program - Steel Plate Products Administrators’   Manual
    	
 
    	
Copyright
    	
 
    	
TX 0-662-011
    	
 
    	
6/18/1980
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Outside &   Inside Sales Representative Training Program - Stainless Steel Bar Products   Administrator’s Manual
    	
 
    	
Copyright
    	
 
    	
TX 0-987-081
    	
 
    	
10/7/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Inside   Sales Representative Training Program - Stainless Steel Bar Products Workbook
    	
 
    	
Copyright
    	
 
    	
TX 0-987-082
    	
 
    	
10/7/1982
    	
 
    	
N/A
    	
 
    	
USA
    

 

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
Inside   sales representative training program, stainless steel bar products: prework   assignment
    	
 
    	
Copyright
    	
 
    	
TX 0-987-083
    	
 
    	
10/7/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Outside   Sales Representative Training Program - Stainless Steel Bar Update Prework   Assignment
    	
 
    	
Copyright
    	
 
    	
TX 1-001-811
    	
 
    	
10/7/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Outside   Sales Representative Training Program - Stainless Steel Bar Updates Territory   Plan Book
    	
 
    	
Copyright
    	
 
    	
TX 1-001-812
    	
 
    	
10/7/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Alloy Catalogue
    	
 
    	
Copyright
    	
 
    	
TX 1-075-354
    	
 
    	
6/11/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Inside Sales Representative Training Program - Nickel Alloy Products   Prework Assignment
    	
 
    	
Copyright
    	
 
    	
TX 1-075-355
    	
 
    	
12/10/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Outside Sales Representative Training Program - Nickel Alloy Products   Territory Plan Book
    	
 
    	
Copyright
    	
 
    	
TX 1-075-356
    	
 
    	
12/10/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Outside Sales Representative Training Program - Nickel Alloy Products   Prework Assignment
    	
 
    	
Copyright
    	
 
    	
TX 1-075-357
    	
 
    	
12/10/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Inside Sales Representative Training Program - Nickel Alloy Products   Workbook
    	
 
    	
Copyright
    	
 
    	
TX 1-075-358
    	
 
    	
12/10/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Outside & Inside Sales Representative Training Program -   Nickel Alloy Products Administrator’s Manual
    	
 
    	
Copyright
    	
 
    	
TX 1-075-359
    	
 
    	
12/10/1982
    	
 
    	
N/A
    	
 
    	
USA
    

 

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
Hy-Alloys   Steels Company Catalogue
    	
 
    	
Copyright
    	
 
    	
TX 1-109-429
    	
 
    	
10/4/1982
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Tube-Pipe Catalog
    	
 
    	
Copyright
    	
 
    	
TX 2-116-469
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Alloy Catalog
    	
 
    	
Copyright
    	
 
    	
TX 2-118-500
    	
 
    	
7/22/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle for Tubing. Especially Dom.
    	
 
    	
Copyright
    	
 
    	
TX 2-118-959
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle For Stainless Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-118-960
    	
 
    	
7/20/9187
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle For Metals, Especially to Better Your Bottom Line
    	
 
    	
Copyright
    	
 
    	
TX 2-118-961
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Doesn’t Make Steel Plate, But We’re The One to Call to Make If You Make   It With Steel Plate.
    	
 
    	
Copyright
    	
 
    	
TX 2-118-962
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle for Alloy Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-120-564
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Nickel Alloys
    	
 
    	
Copyright
    	
 
    	
TX 2-120-585
    	
 
    	
7/23/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Titanium
    	
 
    	
Copyright
    	
 
    	
TX 2-121-356
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Copper Brass & Bronze
    	
 
    	
Copyright
    	
 
    	
TX 2-121-357
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Stainless Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-121-358
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle For Metals. Especially to Better Your Bottom Line
    	
 
    	
Copyright
    	
 
    	
TX 2-121-359
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle for Tubing. Especially D O M.
    	
 
    	
Copyright
    	
 
    	
TX 2-121-360
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Hy-Alloy   Steels Co. Catalog
    	
 
    	
Copyright
    	
 
    	
TX 2-121-364
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Stainless Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-124-131
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Cold Finished Carbon Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-124-132
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Alloy Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-124-133
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Alloy For Aerospace
    	
 
    	
Copyright
    	
 
    	
TX 2-124-134
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    

 

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Carbon & Alloy Rough Turned Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-124-135
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Metaline   Electronic Order Entry
    	
 
    	
Copyright
    	
 
    	
TX 2-124-162
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Nickel Alloys
    	
 
    	
Copyright
    	
 
    	
TX 2-126-049
    	
 
    	
7/23/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Alloy Catalog
    	
 
    	
Copyright
    	
 
    	
TX 2-127-934
    	
 
    	
8/5/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle for Alloy Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-139-138
    	
 
    	
7/20/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Catalog
    	
 
    	
Copyright
    	
 
    	
TX 2-150-475
    	
 
    	
9/3/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Policy Learning Guide
    	
 
    	
Copyright
    	
 
    	
TX 2-157-596
    	
 
    	
9/24/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Aluminum Cold Finished Rod & Bar
    	
 
    	
Copyright
    	
 
    	
TX 2-181-733
    	
 
    	
3/24/1986
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle For Stainless Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-181-739
    	
 
    	
12/24/1984
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Call   Castle For High Nickel Alloys
    	
 
    	
Copyright
    	
 
    	
TX 2-187-532
    	
 
    	
12/15/1984
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
What’s   New?...
    	
 
    	
Copyright
    	
 
    	
TX 2-207-916
    	
 
    	
10/30/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Hydra   Brite Hydraulic Line Tubing
    	
 
    	
Copyright
    	
 
    	
TX 2-278-736
    	
 
    	
3/21/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Giants
    	
 
    	
Copyright
    	
 
    	
TX 2-294-263
    	
 
    	
12/30/1987
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Quik   Guide Carbon & Alloy Tubing
    	
 
    	
Copyright
    	
 
    	
TX 2-294-297
    	
 
    	
2/19/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Cut-Off Lathe
    	
 
    	
Copyright
    	
 
    	
TX 2-328-646
    	
 
    	
3/1/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Plate   Facility to Serve the Great Southwest
    	
 
    	
Copyright
    	
 
    	
TX 2-328-982
    	
 
    	
7/29/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Alloy Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-402-998
    	
 
    	
9/14/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Your   Alloy Advantage Castle Metals
    	
 
    	
Copyright
    	
 
    	
TX 2-413-785
    	
 
    	
9/6/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Alloy   A-286 Alloys for Aerospace
    	
 
    	
Copyright
    	
 
    	
TX 2-431-668
    	
 
    	
10/6/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Announcing   A New Castle Metals Location
    	
 
    	
Copyright
    	
 
    	
TX 2-448-591
    	
 
    	
11/2/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Aluminum Plate
    	
 
    	
Copyright
    	
 
    	
TX 2-467-693
    	
 
    	
12/2/1988
    	
 
    	
N/A
    	
 
    	
USA
    

 

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Aluminum Plate & Extruded Rod & Bar
    	
 
    	
Copyright
    	
 
    	
TX 2-483-544
    	
 
    	
12/12/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Garbon & Alloy Plate
    	
 
    	
Copyright
    	
 
    	
TX 2-506-545
    	
 
    	
2/13/1984
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Your   Alloy Advantage - Machinability
    	
 
    	
Copyright
    	
 
    	
TX 2-507-331
    	
 
    	
2/2/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
We’re   First Again Supercut 150
    	
 
    	
Copyright
    	
 
    	
TX 2-512-452
    	
 
    	
8/25/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Supercut   150 Specifications
    	
 
    	
Copyright
    	
 
    	
TX 2-512-453
    	
 
    	
9/14/1988
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Turn   to Castle for Great Savings
    	
 
    	
Copyright
    	
 
    	
TX 2-524-505
    	
 
    	
3/9/1989
    	
 
    	
NA
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Alloys   For Aerospace
    	
 
    	
Copyright
    	
 
    	
TX 2-528-481
    	
 
    	
3/8/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Great   In Stainless Plate
    	
 
    	
Copyright
    	
 
    	
TX 2-555-608
    	
 
    	
4/11/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Copper Brass & Bronze
    	
 
    	
Copyright
    	
 
    	
TX 2-555-858
    	
 
    	
4/11/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
New   Dimensions In Flats!
    	
 
    	
Copyright
    	
 
    	
TX 2-574-503
    	
 
    	
1/18/1990
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Giants - Some Very Big Reasons Why Castle Metals Is Great In Plate
    	
 
    	
Copyright
    	
 
    	
TX 2-576-414
    	
 
    	
4/26/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide - Alloy Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-577-729
    	
 
    	
5/10/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide - Titanium
    	
 
    	
Copyright
    	
 
    	
TX 2-577-730
    	
 
    	
5/15/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Alloy Steel
    	
 
    	
Copyright
    	
 
    	
TX 2-612-114
    	
 
    	
7/10/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Quik Guide Processing
    	
 
    	
Copyright
    	
 
    	
TX 2-616-173
    	
 
    	
7/12/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
EDI   - The Wave Of The Future
    	
 
    	
Copyright
    	
 
    	
TX 2-633-254
    	
 
    	
8/9/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Quik   Guide Products
    	
 
    	
Copyright
    	
 
    	
TX 2-747-823
    	
 
    	
12/27/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Cal-Al
    	
 
    	
Copyright
    	
 
    	
TX 2-747-831
    	
 
    	
1/11/1990
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
One   Hundred Years Ago, We Supplied Metals To People Breaking New Frontiers
    	
 
    	
Copyright
    	
 
    	
TX 2-747-909
    	
 
    	
11/8/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Quik   Guide - Stainless Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-747-910
    	
 
    	
12/27/1989
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Only   From The Alloy Professionals
    	
 
    	
Copyright
    	
 
    	
TX 2-748-240
    	
 
    	
11/27/1989
    	
 
    	
N/A
    	
 
    	
USA
    

 

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
New   Dimensions In Flats!
    	
 
    	
Copyright
    	
 
    	
TX 2-754-503
    	
 
    	
1/30/1990
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Alloys   For Aerospace
    	
 
    	
Copyright
    	
 
    	
TX 2-789-914
    	
 
    	
2/13/1990
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Telcut
    	
 
    	
Copyright
    	
 
    	
TX 2-792-501
    	
 
    	
3/13/1990
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
The   Electronic Castle Metals
    	
 
    	
Copyright
    	
 
    	
TX 2-805-862
    	
 
    	
2/13/1990
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Quik   Guide Cold Finished Carbon Steel Bars
    	
 
    	
Copyright
    	
 
    	
TX 2-838-507
    	
 
    	
8/2/1990
    	
 
    	
N/A
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals Financial Management Training Program Unit 1 Financial Management   Concepts *Revised
    	
 
    	
Copyright
    	
 
    	
TX 3-408-701
    	
 
    	
2/1/1983
    	
 
    	
N/A
    	
 
    	
USA
    
	
HY-Alloy   Steels Co.
    	
 
    	
hA   Block Design B/W
    	
 
    	
Trademark
    	
 
    	
1,128,438
    	
 
    	
12/25/1979
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
The   One Call To Make If You Make It With Metal
    	
 
    	
Servicemark
    	
 
    	
1,218,678
    	
 
    	
11/30/1982
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
(ROOK)   Castle Metals The One Call to Make if you Make it with Metal.
    	
 
    	
Servicemark
    	
 
    	
1,218,679
    	
 
    	
11/30/1982
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
HY-ALLOY   (BLOCK hA) STEELS
    	
 
    	
Servicemark
    	
 
    	
1,272,222
    	
 
    	
3/27/1984
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
ROOK   DESIGN IN CIRCLE
    	
 
    	
Servicemark
    	
 
    	
1,297,178
    	
 
    	
9/18/1984
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   METALS
    	
 
    	
Servicemark
    	
 
    	
1,336,048
    	
 
    	
5/14/1985
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
hA   [BLOCK]
    	
 
    	
Servicemark
    	
 
    	
1,336,058
    	
 
    	
5/14/1985
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Metalink
    	
 
    	
Servicemark
    	
 
    	
1,494,616
    	
 
    	
6/28/1988
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Processed   With Pride
    	
 
    	
Servicemark
    	
 
    	
1,868,639
    	
 
    	
12/20/1994
    	
 
    	
40
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
HA   Industries (BLOCK)
    	
 
    	
Servicemark
    	
 
    	
2,053,333
    	
 
    	
4/15/1997
    	
 
    	
40
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Quik   Buy
    	
 
    	
Servicemark
    	
 
    	
2,093,452
    	
 
    	
9/2/1997
    	
 
    	
42
    	
 
    	
USA
    
	
Total   Plastics, Inc.
    	
 
    	
Total   Plastics, Inc.
    	
 
    	
Servicemark
    	
 
    	
2,112,867
    	
 
    	
11/11/1997
    	
 
    	
42
    	
 
    	
USA
    
	
Total   Plastics, Inc.
    	
 
    	
TPI
    	
 
    	
Servicemark
    	
 
    	
2,120,410
    	
 
    	
12/9/1997
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Advanced Materials SPG
    	
 
    	
Servicemark
    	
 
    	
2,130,876
    	
 
    	
1/20/1998
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
StressFree
    	
 
    	
Servicemark
    	
 
    	
2,248,378
    	
 
    	
5/25/1999
    	
 
    	
35
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
STRESSFree   [BOLD]
    	
 
    	
Servicemark
    	
 
    	
2,248,387
    	
 
    	
5/25/1999
    	
 
    	
35
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
WE   MAKE A GOOD PLATE GREAT
    	
 
    	
Servicemark
    	
 
    	
2,672,116
    	
 
    	
1/7/2003
    	
 
    	
40
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
STRESSFREE   with Smoke Design
    	
 
    	
Servicemark
    	
 
    	
2,534,390
    	
 
    	
1/29/2002
    	
 
    	
35
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
CMQ
    	
 
    	
Servicemark
    	
 
    	
2,314,848
    	
 
    	
2/1/2000
    	
 
    	
35
    	
 
    	
USA
    

 

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
The   Bar Professionals
    	
 
    	
Servicemark
    	
 
    	
2,920,641
    	
 
    	
1/25/2005
    	
 
    	
35
    	
 
    	
USA
    
	
Total   Plastics, Inc.
    	
 
    	
The   Plastics Store
    	
 
    	
Servicemark
    	
 
    	
3,080,973
    	
 
    	
4/11/2006
    	
 
    	
35
    	
 
    	
USA
    
	
Total   Plastics, Inc.
    	
 
    	
The   Plastics store (red and black)
    	
 
    	
Servicemark
    	
 
    	
3,088,906
    	
 
    	
5/2/2006
    	
 
    	
34
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
#1   Your First Choice in... Plate (BLOCK)
    	
 
    	
Servicemark
    	
 
    	
3,314,426
    	
 
    	
10/16/2007
    	
 
    	
35
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
#1   Your First Choice in Plate
    	
 
    	
Servicemark
    	
 
    	
3,321,166
    	
 
    	
10/23/2007
    	
 
    	
35
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Oliver
    	
 
    	
Servicemark
    	
 
    	
3,477,543
    	
 
    	
7/29/2008
    	
 
    	
40
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Oliver   Steel Plate
    	
 
    	
Servicemark
    	
 
    	
3,473,178
    	
 
    	
7/22/2008
    	
 
    	
40
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Design
    	
 
    	
Servicemark
    	
 
    	
3,466,370
    	
 
    	
7/15/2008
    	
 
    	
40
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   METALS
    	
 
    	
Servicemark
    	
 
    	
3,466,369
    	
 
    	
7/15/2008
    	
 
    	
40
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   METALS PLUS
    	
 
    	
Servicemark
    	
 
    	
3,896,853
    	
 
    	
12/28/2010
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Supercut   150
    	
 
    	
Trademark
    	
 
    	
3,297,988
    	
 
    	
9/25/2007
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
(ROOK)   Castle Metals
    	
 
    	
Trademark
    	
 
    	
1,009,462
    	
 
    	
4/29/1975
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Procut
    	
 
    	
Trademark
    	
 
    	
2,482,989
    	
 
    	
8/28/2001
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Truhard
    	
 
    	
Trademark
    	
 
    	
1,841,174
    	
 
    	
6/21/1994
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Ultra-Tuff
    	
 
    	
Trademark
    	
 
    	
1,796,753
    	
 
    	
10/5/1993
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
ROOK   BLACK & WHITE CIRCLE IN SQUARE
    	
 
    	
Trademark
    	
 
    	
1,338,782
    	
 
    	
6/4/1985
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
ROOK   BLACK & WHITE - CIRCLE
    	
 
    	
Trademark
    	
 
    	
1,295,685
    	
 
    	
9/18/1984
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
PURECUT
    	
 
    	
Trademark
    	
 
    	
1,681,773
    	
 
    	
4/7/1992
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Purecut   40
    	
 
    	
Trademark
    	
 
    	
1,658,801
    	
 
    	
10/1/1991
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Purecut   20
    	
 
    	
Trademark
    	
 
    	
1,655,225
    	
 
    	
9/3/1991
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
TELCUT
    	
 
    	
Trademark
    	
 
    	
1,932,161
    	
 
    	
10/31/1995
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Telcut   40
    	
 
    	
Trademark
    	
 
    	
1,654,717
    	
 
    	
8/27/1991
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
CPR-H
    	
 
    	
Trademark
    	
 
    	
2,373,599
    	
 
    	
8/1/2000
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
CPR
    	
 
    	
Trademark
    	
 
    	
2,373,598
    	
 
    	
8/1/2000
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Formable   400F
    	
 
    	
Trademark
    	
 
    	
2,385,887
    	
 
    	
9/12/2000
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
SUPERCUT   150 and DESIGN
    	
 
    	
Trademark
    	
 
    	
1,544,169
    	
 
    	
6/20/1989
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
OLIVER   STEEL PLATE & Design
    	
 
    	
Trademark
    	
 
    	
3,576,860
    	
 
    	
2/17/2009
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
OLIVER
    	
 
    	
Trademark
    	
 
    	
3,573,220
    	
 
    	
2/10/2009
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
Q   and DESIGN
    	
 
    	
Servicemark
    	
 
    	
1,509,629
    	
 
    	
10/18/1988
    	
 
    	
6
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
METAL   EXPRESS
    	
 
    	
Servicemark
    	
 
    	
2,091,773
    	
 
    	
8/26/1997
    	
 
    	
42
    	
 
    	
USA
    
	
A.   M. Castle & Co.
    	
 
    	
HA   Design [SHADED H] (Canada)
    	
 
    	
Trademark
    	
 
    	
355,830
    	
 
    	
5/12/1989
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
HA   DESIGN [SHADED A] (Canada)
    	
 
    	
Trademark
    	
 
    	
355,839
    	
 
    	
5/12/1989
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
ROOK   IN CIRCLE (Canada)
    	
 
    	
Trademark
    	
 
    	
358,007
    	
 
    	
6/30/1989
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
Metaline   (Canada)
    	
 
    	
Trademark
    	
 
    	
357,679
    	
 
    	
6/30/1989
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
Q &   ROOK Design (Canada)
    	
 
    	
Trademark
    	
 
    	
360,429
    	
 
    	
9/15/1989
    	
 
    	
46
    	
 
    	
Canada
    

 

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
HY-ALLOY   [HA DESIGN] STEELS (Canada)
    	
 
    	
Trademark
    	
 
    	
349,591
    	
 
    	
12/23/1988
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
[ROOK   IN CIRCLE] CASTLE METALS (Canada)
    	
 
    	
Trademark
    	
 
    	
357,849
    	
 
    	
6/30/1989
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
The   One to Call if You Make it With Metal (Canada)
    	
 
    	
Trademark
    	
 
    	
344,674
    	
 
    	
9/9/1988
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Metals (Canada)
    	
 
    	
Trademark
    	
 
    	
344,673
    	
 
    	
9/9/1988
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
ROOK   IN CIRCLE DESIGN (Canada)
    	
 
    	
Trademark
    	
 
    	
346,095
    	
 
    	
10/7/1988
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
[ROOK   IN CIRCLE] CASTLE METALS - The one call to make if you make it with metal   (Canada)
    	
 
    	
Trademark
    	
 
    	
346,195
    	
 
    	
10/14/1988
    	
 
    	
46
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
INNOVATIVE   SUPPLY-CHAIN SOLUTION FOR YOUR SPECIALTY METALS NEEDS (Canada)
    	
 
    	
Trademark
    	
 
    	
1,517,749
    	
 
    	
3/4/2011
    	
 
    	
 
    	
 
    	
Canada
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   METALS (China)
    	
 
    	
Trademark
    	
 
    	
6,553,994
    	
 
    	
8/7/2010
    	
 
    	
40
    	
 
    	
China
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Design (China)
    	
 
    	
Trademark
    	
 
    	
6,553,656
    	
 
    	
3/28/2010
    	
 
    	
40
    	
 
    	
China
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   METALS (China)
    	
 
    	
Trademark   Application
    	
 
    	
6,553,997
    	
 
    	
9/28/2010
    	
 
    	
35
    	
 
    	
China
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Design (China)
    	
 
    	
Trademark   Application
    	
 
    	
6,553,996
    	
 
    	
9/28/2010
    	
 
    	
35
    	
 
    	
China
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   METALS (China)
    	
 
    	
Trademark   Application
    	
 
    	
6,553,998
    	
 
    	
2/15/2008
    	
 
    	
6
    	
 
    	
China
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Design (China)
    	
 
    	
Trademark
    	
 
    	
6,553,995
    	
 
    	
3/28/2010
    	
 
    	
6
    	
 
    	
China
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   METALS (European Community)
    	
 
    	
Trademark
    	
 
    	
6,561,121
    	
 
    	
1/8/2008
    	
 
    	
6-40-42
    	
 
    	
European Community
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   DESIGN (European Community)
    	
 
    	
Trademark
    	
 
    	
6,583,926
    	
 
    	
1/16/2008
    	
 
    	
6-40-42
    	
 
    	
European Community
    
	
A.   M. Castle & Co.
    	
 
    	
INNOVATIVE   SUPPLY-CHAIN SOLUTION FOR YOUR SPECIALTY METALS NEEDS (European Community)
    	
 
    	
Trademark
    	
 
    	
009788415
    	
 
    	
3/4/2011
    	
 
    	
 
    	
 
    	
European Community
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   METALS (Mexico)
    	
 
    	
Trademark
    	
 
    	
504,223
    	
 
    	
11/1/2004
    	
 
    	
42
    	
 
    	
Mexico
    
	
A.   M. Castle & Co.
    	
 
    	
CASTLE   (Mexico)
    	
 
    	
Trademark
    	
 
    	
497,189
    	
 
    	
1/12/2005
    	
 
    	
6
    	
 
    	
Mexico
    

 

 

	
Owner
    	
 
    	
Description
    	
 
    	
Intellectual Property
   Type
    	
 
    	
Registration
   #
    	
 
    	
Registration
   Date
    	
 
    	
Class
    	
 
    	
Country
    
	
A.   M. Castle & Co.
    	
 
    	
Castle   Design (Mexico)
    	
 
    	
Trademark
    	
 
    	
514,648
    	
 
    	
1/12/2005
    	
 
    	
6
    	
 
    	
Mexico
    
	
A.   M. Castle & Co.
    	
 
    	
PURECUT   (Mexico)
    	
 
    	
Trademark
    	
 
    	
496,128
    	
 
    	
1/12/2005
    	
 
    	
6
    	
 
    	
Mexico
    
	
A.   M. Castle & Co.
    	
 
    	
TRUHARD   (Mexico)
    	
 
    	
Trademark
    	
 
    	
496,129
    	
 
    	
1/12/2005
    	
 
    	
6
    	
 
    	
Mexico
    
	
A.   M. Castle & Co.
    	
 
    	
ULTRA-TUFF   (Mexico)
    	
 
    	
Trademark
    	
 
    	
196,127
    	
 
    	
1/12/2005
    	
 
    	
6
    	
 
    	
Mexico
    
	
A.   M. Castle & Co.
    	
 
    	
B&W   Castle Design w/o denomination (MEXICO)
    	
 
    	
Trademark
    	
 
    	
654,120
    	
 
    	
11/16/2004
    	
 
    	
42
    	
 
    	
Mexico
    
	
A.   M. Castle & Co.
    	
 
    	
INNOVATIVE   SUPPLY-CHAIN SOLUTION FOR YOUR SPECIALTY METALS NEEDS (Mexico)
    	
 
    	
Trademark
    	
 
    	
1,160,485
    	
 
    	
App.3/4/11
    	
 
    	
35
    	
 
    	
Mexico
    

 

Domain Names

 

	
Domain
    	
 
    	
Country
    	
 
    	
Registrant
    	
 
    	
Registrar
    
	
aftechintl.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
aftech-intl.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
amcastle.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
Castle   Metals
   c/o Network Solutions
   PO Box 447
   Herndon, VA 20172
    	
 
    	
Network   Solutions, LLC
    
	
amcastle.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
amcastle.com.mx
    	
 
    	
Mexico
    	
 
    	
Network   Team
   Franklin Park, Illinois
    	
 
    	
GoDaddy.com
    
	
amcastle.de
    	
 
    	
Germany
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
 
    
	
amcastle.net
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    

 

 

	
Domain
    	
 
    	
Country
    	
 
    	
Registrant
    	
 
    	
Registrar
    
	
Ame-sa.com
    	
 
    	
US
    	
 
    	
A.   M. Castle & Co
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
GoDaddy.com
    
	
castledirect.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
 
    
	
castle-direct.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
castlemetals.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
castlemetals.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
castlemetalsaerospace.com
    	
 
    	
US
    	
 
    	
Narasimhan   Mandyam
   37, Kemapura, Hebbal
   Bangalore, 560024 
   INDIA
    	
 
    	
Register.com, Inc.
    
	
castlemetalsdirect.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
castlemetalsuk.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
A.M.   Castle and Company
   3400 North Wolf Road
   Franklin Park, IL 60131
    	
 
    	
GoDaddy.com
    
	
castlemetalsuk.com
    	
 
    	
US
    	
 
    	
A.   M. Castle and Company
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
GoDaddy.com
    
	
castlemetalsuk.de
    	
 
    	
Germany
    	
 
    	
Leonie   Rudman
   4479 Holly Street
   Kansas City, Missouri 64157
    	
 
    	
Not   listed

    
	
castlemetalsuk.fr
    	
 
    	
France
    	
 
    	
Not   Listed
    	
 
    	
Key-Systems   GmbH
    
	
castlesystem.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
cutterprecision.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    

 

 

	
Domain
    	
 
    	
Country
    	
 
    	
Registrant
    	
 
    	
Registrar
    
	
devamcastle.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
GoDaddy.com
    
	
e-castlemetals.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
eharding.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
E.   Harding & Sons Ltd.

    	
 
    	
1&1   Internet AG
    
	
Ehardings.com
    	
 
    	
US
    	
 
    	
A.   M. Castle and Company
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
GoDaddy.com
    
	
haindustries.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
hyalloy.com
    	
 
    	
US
    	
 
    	
Castle   Metals
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
Network   Solutions, LLC
    
	
kksstainless.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
Dan   Chippendale

    	
 
    	
1&1   Internet AG
    
	
KKSStainless.com
    	
 
    	
US
    	
 
    	
Castle   Metals UK Ltd
   Unit 10 & 11
   Guide, Blackburn BB1 2QE, Great Britain
    	
 
    	
GoDaddy.com
    
	
lean-duplex.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
Metals   UK
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60527
    	
 
    	
1&1   Internet AG
    
	
Loksplasma.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
Castle   Metals UK Ltd

    	
 
    	
1&1   Internet AG
    
	
loks-profiles.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
Castle   Metals UK Ltd
    	
 
    	
1&1   Internet AG
    
	
loksprofiles.co.uk
    	
 
    	
United   Kingdom
    	
 
    	
Awareness   Software Ltd
    	
 
    	
1&1   Internet AG
    
	
loks-profiles.com
    	
 
    	
US
    	
 
    	
Castle   Metals UK Ltd
   Unit 10 & 11
   Guide, Blackburn BB1 2QE, Great Britain
    	
 
    	
GoDaddy.com
    
	
metalsgroupinc.com
    	
 
    	
US
    	
 
    	
Castle   Metals UK Ltd
   Unit 10 & 11
   Guide, Blackburn BB1 2QE, Great Britain
    	
 
    	
GoDaddy.com
    

 

 

	
Domain
    	
 
    	
Country
    	
 
    	
Registrant
    	
 
    	
Registrar
    
	
metalsgroupindia.com
    	
 
    	
US
    	
 
    	
Castle   Metals UK Ltd
   Unit 10 & 11
   Guide, Blackburn BB1 2QE, Great Britain
    	
 
    	
GoDaddy.com
    
	
MetalsUK.com
    	
 
    	
US
    	
 
    	
Castle   Metals UK Ltd
   Unit 10 & 11
   Guide, Blackburn BB1 2QE, Great Britain
    	
 
    	
GoDaddy.com
    
	
oliversteel.com
    	
 
    	
US
    	
 
    	
Oliver   Steel Plate Corp.
   7851 Bavaria Road
   Twinsburg, OH 44087
    	
 
    	
ENOM, Inc.
    
	
paramontmachinecompany.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
pioneeraluminum.com
    	
 
    	
US
    	
 
    	
A.   M. Castle and Company
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
GoDaddy.com
    
	
plasticsdistributor.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
pmcplastic.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
sfsgonline.biz
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
sfsgonline.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
storefixturesolutionsgroup.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
themetalsgroup.com
    	
 
    	
US
    	
 
    	
Castle   Metals UK Ltd
   Unit 10 & 11
   Guide, Blackburn BB1 2QE, Great Britain
    	
 
    	
GoDaddy.com
    
	
theplasticsstore.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
tiernay.com
    	
 
    	
US
    	
 
    	
A.   M. Castle and Company
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
GoDaddy.com
    
	
totalplastics.biz
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    

 

 

	
Domain
    	
 
    	
Country
    	
 
    	
Registrant
    	
 
    	
Registrar
    
	
totalplastics.com
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
totalplastics.org
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
totalplastics.us
    	
 
    	
US
    	
 
    	
Total   Plastics, Inc.
   2810 N. Burdick St
   Kalamazoo, MI 49004-3615
    	
 
    	
Network   Solutions, LLC
    
	
transtarmetals.com
    	
 
    	
US
    	
 
    	
A.   M. Castle and Company
   1420 Kensington Road, Suite 220
   Oak Brook, IL 60523
    	
 
    	
GoDaddy.com
    
	
tubesupply.ca
    	
 
    	
Canada
    	
 
    	
Tube   Supply, Inc.
   Noel Tovar
   2503 84 Avenue
   Edmonton AB T6P1K4 Canada
    	
 
    	
Tucows.com
    
	
tubesupply.com
    	
 
    	
US
    	
 
    	
Tube   Supply, Inc.
   5169 Ashley Court
   Houston, TX 77041
    	
 
    	
Network   Solutions, LLC
    
	
tubesupply.net
    	
 
    	
US
    	
 
    	
Tube   Supply, Inc.
   5169 Ashley Court
   Houston, TX 77041
    	
 
    	
Network   Solutions, LLC
    
	
tubesupply.org
    	
 
    	
US
    	
 
    	
Tube   Supply, Inc.
   5169 Ashley Court
   Houston, TX 77041
    	
 
    	
Network   Solutions, LLC
    
	
tubesupply.us
    	
 
    	
US
    	
 
    	
Tube   Supply, Inc.
   5169 Ashley Court
   Houston, TX 77041
    	
 
    	
Tucows.com
    

 

 

SCHEDULE 5

 

Deposit Accounts

 

[On file with Agent]

 

 

ANNEX A

 

FORM OF AGREEMENT REGARDING UNCERTIFICATED SECURITIES,
 LIMITED LIABILITY COMPANY INTERESTS AND PARTNERSHIP INTERESTS

 

AGREEMENT (as amended, modified, restated and/or supplemented from time to time, this “Agreement”), dated as of [                   , 201  ], among the undersigned pledgor (the “Pledgor”), [                        ], not in its individual capacity but solely as Collateral Agent (the “Pledgee”), and [                    ], as the issuer of the Uncertificated Securities, Limited Liability Company Interests and/or Partnership Interests (each as defined below) (the “Issuer”).

 

W I T N E S S E T H :

 

WHEREAS, the Pledgor[, certain of its affiliates] and the Pledgee have entered into a Pledge and Security Agreement, dated as of December 15, 2011 (as amended, modified, restated and/or supplemented from time to time, the “Security Agreement”), under which, among other things, in order to secure the payment of the Indenture Obligations (as defined in the Security Agreement), the Pledgor has or will pledge to the Pledgee for the benefit of the Secured Parties (as defined in the Security Agreement), and grant a security interest in favor of the Pledgee for the benefit of the Secured Parties in, all of the right, title and interest of the Pledgor in and to any and all [“uncertificated securities” (as defined in Section 8-102(a)(18) of the Uniform Commercial Code, as adopted in the State of New York) (“Uncertificated Securities”)] [Partnership Interests (as defined in the Security Agreement)] [Limited Liability Company Interests (as defined in the Security Agreement)], from time to time issued by the Issuer, whether now existing or hereafter from time to time acquired by the Pledgor (with all of such [Uncertificated Securities] [Partnership Interests] [Limited Liability Company Interests] being herein collectively called the “Issuer Pledged Interests”); and

 

WHEREAS, the Pledgor desires the Issuer to enter into this Agreement in order to perfect the security interest of the Pledgee under the Pledge Agreement in the Issuer Pledged Interests, to vest in the Pledgee control of the Issuer Pledged Interests and to provide for the rights of the parties under this Agreement;

 

NOW THEREFORE, in consideration of the premises and the mutual promises and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.  The Pledgor hereby irrevocably authorizes and directs the Issuer, and the Issuer hereby agrees, to comply with any and all instructions and orders originated by the Pledgee (and its successors and assigns) regarding any and all of the Issuer Pledged Interests without the further consent by the registered owner (including the Pledgor), and, following its receipt of a notice from the Pledgee stating that the Pledgee is exercising exclusive control of the Issuer Pledged Interests, not to comply with any instructions or orders regarding any or all of the Issuer

 

 

Pledged Interests originated by any person or entity other than the Pledgee (and its successors and assigns) or a court of competent jurisdiction.

 

2.  The Issuer hereby certifies that (i) no notice of any security interest, lien or other encumbrance or claim affecting the Issuer Pledged Interests (other than the security interest of the Pledgee) has been received by it, and (ii) the security interest of the Pledgee in the Issuer Pledged Interests has been registered in the books and records of the Issuer.

 

3.  The Issuer hereby represents and warrants that (i) the pledge by the Pledgor of, and the granting by the Pledgor of a security interest in, the Issuer Pledged Interests to the Pledgee, for the benefit of the Secured Parties, does not violate the charter, by-laws, partnership agreement, membership agreement or any other agreement governing the Issuer or the Issuer Pledged Interests, and (ii) the Issuer Pledged Interests consisting of capital stock of a corporation are fully paid and nonassessable.

 

4.  All notices, statements of accounts, reports, prospectuses, financial statements and other communications to be sent to the Pledgor by the Issuer in respect of the Issuer will also be sent to the Pledgee at the following address:

 

[                                    ]

[                                    ]

Attention:  [                            ]

Telephone No.:  [                            ]

Telecopier No.:  [                            ]

 

5.  Following its receipt of a notice from the Pledgee stating that the Pledgee is exercising exclusive control of the Issuer Pledged Interests and until the Pledgee shall have delivered written notice to the Issuer that all of the Indenture Obligations have been paid in full and this Agreement is terminated, the Issuer will send any and all redemptions, distributions, interest or other payments in respect of the Issuer Pledged Interests from the Issuer for the account of the Pledgee only by wire transfers to such account as the Pledgee shall instruct.

 

6.  Except as expressly provided otherwise in Sections 4 and 5, all notices, instructions, orders and communications hereunder shall be sent or delivered by mail, telegraph, telex, telecopy, cable or overnight courier service and all such notices and communications shall, when mailed, telexed, telecopied, cabled or sent by overnight courier, be effective when deposited in the mails or delivered to overnight courier, prepaid and properly addressed for delivery on such or the next Business Day, or sent by telex or telecopier, except that notices and communications to the Pledgee or the Issuer shall not be effective until received.  All notices and other communications shall be in writing and addressed as follows:

 

(a)                                  if to the Pledgor, at:

 

                                     
                                     
                                     
 Attention:                    

 

	
Telephone   
    	
No.:
    

Fax No.:

 

(b)                                 if to the Pledgee, at the address given in Section 4 hereof;

 

(c)                                  if to the Issuer, at:

 

 

 

 

 

or at such other address as shall have been furnished in writing by any person described above to the party required to give notice hereunder.  As used in this Section 6, “Business Day” means any day other than a Saturday, Sunday, or other day in which banks in New York are authorized to remain closed.

 

7.  This Agreement shall be binding upon the successors and assigns of the Pledgor and the Issuer and shall inure to the benefit of and be enforceable by the Pledgee and its successors and assigns.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one instrument.  In the event that any provision of this Agreement shall prove to be invalid or unenforceable, such provision shall be deemed to be severable from the other provisions of this Agreement which shall remain binding on all parties hereto.  None of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever except in writing signed by the Pledgee, the Issuer and the Pledgor.

 

8.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to its principles of conflict of laws.

 

IN WITNESS WHEREOF, the Pledgor, the Pledgee and the Issuer have caused this Agreement to be executed by their duly elected officers duly authorized as of the date first above written.

 

 

	
 
    	
[
    	
],
    
	
 
    	
 
    	
as   Pledgor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[                                                  ],
    
	
 
    	
 
    	
not   in its individual capacity but solely as Collateral Agent and Pledgee
    
				

 

 

	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[
    	
],
    
	
 
    	
 
    	
as   the Issuer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

 

ANNEX B

 

GRANT OF SECURITY INTEREST
  IN UNITED STATES TRADEMARKS

 

FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged, [Name of Grantor], a                                         (the “Grantor”) with principal offices at                                                         , hereby grants to [Name of Collateral Agent], as Collateral Agent, with principal offices at [Address], (the “Grantee”), a continuing security interest in (i) all of the Grantor’s right, title and interest in, to and under to the United States trademarks, trademark registrations and trademark applications (the “Marks”) set forth on Schedule A attached hereto, (ii) all proceeds (as such term is defined in the Uniform Commercial Code of the State of New York as in effect from time to time) and products of the Marks, (iii) the goodwill of the businesses with which the Marks are associated and (iv) all causes of action arising prior to or after the date hereof for infringement of any of the Marks or unfair competition regarding the same.

 

THIS GRANT is made to secure the satisfactory performance and payment of all the Obligations of the Grantor, as such term is defined in the Pledge and Security Agreement among the Grantor, the other Grantors from time to time party thereto and the Grantee, dated as of December 15, 2011 (as amended, modified, restated and/or supplemented from time to time, the “Security Agreement”).  Upon the occurrence of the Termination Date (as defined in the Security Agreement), the Grantee shall execute, acknowledge, and deliver to the Grantor an instrument in writing releasing the security interest in the Marks acquired under this Grant.

 

This Grant has been granted in conjunction with the security interest granted to the Grantee under the Security Agreement.  The rights and remedies of the Grantee with respect to the security interest granted herein are as set forth in the Security Agreement, all terms and provisions of which are incorporated herein by reference.  In the event that any provisions of this

 

 

Grant are deemed to conflict with the Security Agreement, the provisions of the Security Agreement shall govern.

 

[Remainder of this page intentionally left blank; signature page follows]

 

 

IN WITNESS WHEREOF, the undersigned have executed this Grant as of the          day of                         ,         .

 

	
 
    	
[NAME   OF GRANTOR], Grantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

IN WITNESS WHEREOF, the undersigned have executed this Grant as of the          day of                         ,         .

 

	
 
    	
[NAME   OF COLLATERAL AGENT],
    
	
 
    	
as   Collateral Agent and Grantee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

	
STATE   OF
    	
)
    
	
 
    	
) ss.:
    
	
COUNTY OF
    	
)
    

 

On this          day of                   ,         , before me personally came                                                   who, being by me duly sworn, did state as follows:  that [s]he is                              of [Name of Grantor], that [s]he is authorized to execute the foregoing Grant on behalf of said                          and that [s]he did so by authority of the [Board of Directors] of said                         .

 

	
 
    	
 
    
	
 
    	
Notary Public
    

 

 

	
STATE   OF
    	
)
    
	
 
    	
)   ss:
    
	
COUNTY   OF
    	
)
    

 

On this          day of                   ,         , before me personally came                                                             who, being by me duly sworn, did state as follows:  that [s]he is                                      of [Name of Collateral Agent], that [s]he is authorized to execute the foregoing Grant on behalf of said                          and that [s]he did so by authority of the Board of Directors of said                           .

	
 
    	
 
    
	
 
    	
Notary Public
    

 

 

SCHEDULE A

 

	
MARK
    	
 
    	
REG. NO.
    	
 
    	
REG. DATE
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

ANNEX C

 

GRANT OF SECURITY INTEREST
  IN UNITED STATES PATENTS

 

FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged, [Name of Grantor], a                                         (the “Grantor”) with principal offices at                                                         , hereby grants to [Name of Collateral Agent], as Collateral Agent, with principal offices at [Address], (the “Grantee”), a continuing security interest in (i) all of the Grantor’s rights, title and interest in, to and under the United States patents (the “Patents”) set forth on Schedule A attached hereto, in each case together with (ii) all proceeds (as such term is defined in the Uniform Commercial Code of the State of New York as in effect from time to time) and products of the Patents, and (iii) all causes of action arising prior to or after the date hereof for infringement of any of the Patents or unfair competition regarding the same.

 

THIS GRANT is made to secure the satisfactory performance and payment of all the Obligations of the Grantor, as such term is defined in the Pledge and Security Agreement among the Grantor, the other Grantors from time to time party thereto and the Grantee, dated as of December 15, 2011 (as amended, modified, restated and/or supplemented from time to time, the “Security Agreement”).  Upon the occurrence of the Termination Date (as defined in the Security Agreement), the Grantee shall execute, acknowledge, and deliver to the Grantor an instrument in writing releasing the security interest in the Patents acquired under this Grant.

 

 

 

This Grant has been granted in conjunction with the security interest granted to the Grantee under the Security Agreement.  The rights and remedies of the Grantee with respect to the security interest granted herein are as set forth in the Security Agreement, all terms and provisions of which are incorporated herein by reference.  In the event that any provisions of this Grant are deemed to conflict with the Security Agreement, the provisions of the Security Agreement shall govern.

 

[Remainder of this page intentionally left blank; signature page follows]

 

 

IN WITNESS WHEREOF, the undersigned have executed this Grant as of the          day of                         ,         .

 

	
 
    	
[NAME   OF GRANTOR], Grantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

IN WITNESS WHEREOF, the undersigned have executed this Grant as of the          day of                         ,         .

 

 

	
 
    	
[NAME   OF COLLATERAL AGENT],
    
	
 
    	
as   Collateral Agent and Grantee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

	
STATE   OF
    	
)
    
	
 
    	
)   ss:
    
	
COUNTY   OF
    	
)
    

 

On this          day of                   ,         , before me personally came                                                   who, being by me duly sworn, did state as follows:  that [s]he is                              of [Name of Grantor], that [s]he is authorized to execute the foregoing Grant on behalf of said                          and that [s]he did so by authority of the Board of Directors of said                         .

 

	
 
    	
 
    
	
 
    	
Notary Public
    

 

 

	
STATE   OF
    	
)
    
	
 
    	
)   ss:
    
	
COUNTY   OF 
    	
)
    

 

On this          day of                   ,         , before me personally came                                                             who, being by me duly sworn, did state as follows:  that [s]he is                                      of [Name of Collateral Agent], that [s]he is authorized to execute the foregoing Grant on behalf of said                          and that [s]he did so by authority of the Board of Directors of said                           .

 

	
 
    	
 
    
	
 
    	
Notary Public
    

 

 

SCHEDULE A

 

	
PATENT
    	
 
    	
PATENT NO.
    	
 
    	
ISSUE DATE
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

ANNEX D

 

GRANT OF SECURITY INTEREST
  IN UNITED STATES COPYRIGHTS

 

WHEREAS, [Name of Grantor], a                                                           (the “Grantor”), having its chief executive office at                                               ,                       , is the owner of all right, title and interest in and to the United States copyrights and associated United States copyright registrations and applications for registration set forth in Schedule A attached hereto;

 

WHEREAS, [NAME OF COLLATERAL AGENT], as Collateral Agent, having its principal offices at [address] (the “Grantee”), desires to acquire a security interest in said copyrights and copyright registrations and applications therefor; and

 

WHEREAS, the Grantor is willing to grant to the Grantee a security interest in and lien upon the copyrights and copyright registrations and applications therefor described above.

 

NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, and subject to the terms and conditions of the Pledge and Security Agreement, dated as of December 15, 2011, made by the Grantor, the other Grantors from time to time party thereto and the Grantee (as amended, modified, restated and/or supplemented from time to time, the “Security Agreement”), the Grantor hereby assigns to the Grantee as collateral security, and grants to the Grantee a continuing security interest in, to and under (i) the copyrights and copyright registrations and applications therefore set forth in Schedule A attached hereto (the “Copyrights”), (ii) all proceeds (as such term is defined in the Uniform Commercial Code of the State of New York as in effect from time to time) and products of the Copyrights, and (iii) all causes of action arising prior to or after the date hereof for infringement of any of the Copyrights or unfair competition regarding the same.

 

Upon the occurrence of the Termination Date (as defined in the Security Agreement), the Grantee shall execute, acknowledge, and deliver to the Grantor an instrument in writing releasing the security interest in the Copyrights acquired under this Grant.

 

This Grant has been granted in conjunction with the security interest granted to the Grantee under the Security Agreement.  The rights and remedies of the Grantee with respect to the security interest granted herein are as set forth in the Security Agreement, all terms and provisions of which are incorporated herein by reference.  In the event that any provisions of this Grant are deemed to conflict with the Security Agreement, the provisions of the Security Agreement shall govern.

 

[Remainder of this page intentionally left blank; signature page follows]

 

 

IN WITNESS WHEREOF, the undersigned have executed this Grant as of the          day of                         ,         .

 

	
 
    	
[NAME   OF GRANTOR], Grantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

IN WITNESS WHEREOF, the undersigned have executed this Grant as of the          day of                         ,         .

 

 

	
 
    	
[NAME   OF COLLATERAL AGENT],
    
	
 
    	
as   Collateral Agent and Grantee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

	
STATE   OF
    	
)
    
	
 
    	
)   ss:
    
	
COUNTY   OF
    	
)
    

 

On this      day of                   ,         , before me personally came                                                    , who being duly sworn, did depose and say that [s]he is                                        of [Name of Grantor], that [s]he is authorized to execute the foregoing Grant on behalf of said corporation and that [s]he did so by authority of the Board of Directors of said corporation.

 

	
 
    	
 
    
	
 
    	
Notary Public
    

 

 

	
STATE   OF 
    	
)
    
	
 
    	
)   ss.:
    
	
COUNTY   OF
    	
)
    

 

On this          day of                   ,         , before me personally came                                                       who, being by me duly sworn, did state as follows:  that [s]he is                                      of [Name of Collateral Agent], that [s]he is authorized to execute the foregoing Grant on behalf of said                      and that [s]he did so by authority of the Board of Directors of said                           .

 

	
 
    	
 
    
	
 
    	
Notary Public
    

 

 

ANNEX E

 

FORM OF

PLEDGE AND SECURITY AGREEMENT JOINDER

 

This SECURITY AGREEMENT JOINDER (as the same may from time to time be amended, restated, supplemented or otherwise modified, this “Agreement”), is made as of the [    ] day of [            ,           ] by [                                            ], a [                      ] [                      ] (“New Grantor”), in favor of U.S. BANK NATIONAL ASSOCIATION, a national banking association, as the collateral agent (“Collateral Agent”), for the benefit of the Secured Parties (as defined in the Security Agreement).

 

WHEREAS, A.M. Castle & Co., a Maryland corporation (the “Company”) entered into an Indenture, dated as of December 15, 2011, (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), pursuant to which the Company has issued 12.750% Senior Secured Notes due 2016 in a principal amount of [                                     ] (and, together with any additional notes that may be issued by the Company from time to time thereunder or exchanged therefor or for such additional notes, the “Notes”);

 

WHEREAS, in connection with the Indenture, certain of the Company’s subsidiaries (such subsidiaries, together with the Company, each, a “Grantor” and, collectively, the “Grantors”) entered into that certain Pledge and Security Agreement, dated as of December 15, 2011 (as the same may from time to time be amended, restated or otherwise modified, the “Security Agreement”), pursuant to which the Grantors granted to the Collateral Agent, for the benefit of the Secured Party, a security interest in and pledge of substantially all of their assets;

 

WHEREAS, New Grantor, a subsidiary of the Company, deems it to be in the direct pecuniary and business interests of New Grantor that the Company continue to obtain from the Secured Parties the financial accommodations provided for in the Indenture;

 

WHEREAS, New Grantor understands that the Secured Parties are willing to continue grant such financial accommodations only upon certain terms and conditions, one of which is that New Grantor grant to the Collateral Agent, for the benefit of the Secured Parties, a security interest in and a collateral assignment of New Grantor’s Collateral, as hereinafter defined, and this Agreement is being executed and delivered in consideration of each financial accommodation granted to the Company by the Secured Parties, and for other valuable consideration;

 

WHEREAS, pursuant to Section 4.21 of the Indenture and Section 10(o) of the Security Agreement, New Grantor has agreed that, effective on [              ], [        ] (the “Joinder Effective Date”), New Grantor shall become a party to the Security Agreement and shall become a “Grantor” thereunder; and

 

WHEREAS, except as specifically defined herein, capitalized terms used herein that are defined in the Security Agreement shall have their respective meanings ascribed to them in the Security Agreement;

 

 

NOW, THEREFORE, in consideration of the benefits accruing to New Grantor, the receipt and sufficiency of which are hereby acknowledged, New Grantor hereby makes the following representations and warranties to the Collateral Agent and the Secured Parties, covenants to the Collateral Agent and the Secured Parties, and agrees with the Collateral Agent as follows:

 

Section 1.                                            Assumption and Joinder.  On and after the Joinder Effective Date:

 

(a)                                  New Grantor hereby irrevocably and unconditionally assumes, agrees to be liable for, and agrees to perform and observe, each and every one of the covenants, rights, promises, agreements, terms, conditions, obligations, appointments, duties and liabilities of a “Grantor” under the Security Agreement and all of the other Indenture Documents (as defined in the Indenture) applicable to it as a Grantor under the Security Agreement;

 

(b)                                 New Grantor shall become bound by all representations, warranties, covenants, provisions and conditions of the Security Agreement and each other Indenture Document applicable to it as a Grantor under the Security Agreement, as if New Grantor had been the original party making such representations, warranties and covenants; and

 

(c)                                  all references to the term “Grantor” in the Security Agreement or in any other Indenture Document, or in any document or instrument executed and delivered or furnished, or to be executed and delivered or furnished, in connection therewith shall be deemed to be a reference to, and shall include, New Grantor.

 

Section 2.                                            Grant of Security Interests.  In consideration of and as security for the full and complete payment, and performance when due, of all of the Obligations, New Grantor hereby grants to the Collateral Agent, for the benefit of the Secured Parties, a security interest in all of New Grantor’s Collateral.

 

Section 3.                                            Representations and Warranties of New Grantor.  New Grantor hereby represents and warrants to Collateral Agent and each Secured Party that:

 

(a)                                  New Grantor has the requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder and under the Security Agreement and any other Indenture Document to which it is a party.  The execution, delivery and performance of this Agreement by New Grantor and the performance of its obligations under this Agreement, the Security Agreement, and any other Indenture Document have been duly authorized by the board of directors of New Grantor and no other corporate proceedings on the part of New Grantor are necessary to authorize the execution, delivery or performance of this Agreement, the transactions contemplated hereby or the performance of its obligations under this Agreement, the Security Agreement or any other Indenture Document.  This Agreement has been duly executed and delivered by New Grantor.  This Agreement, the Security Agreement and each Indenture Document constitutes the legal, valid and binding obligation of New Grantor enforceable against it in accordance with its respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and

 

 

by general principles of equity, whether such enforceability is considered in a proceeding at law or in equity.

 

(b)                                 Attached hereto as Exhibit A are supplemental schedules to the Indenture, which schedules set forth the information required by the Indenture with respect to New Grantor.

 

(c)                                  Each of the representations and warranties set forth in the Security Agreement are true and correct in all material respects on as and as of the date hereof as such representations and warranties apply to New Grantor (except to the extent that any such representations and warranties expressly relate to an earlier date) with the same force and effect as if made on the date hereof.

 

Section 4.                                            Further Assurances.  At any time and from time to time, upon Collateral Agent’s request and at the sole expense of New Grantor, New Grantor will promptly and duly execute and deliver to Collateral Agent any and all further instruments and documents and take such further action as Collateral Agent reasonably deems necessary or appropriate to effect the purposes of this Agreement.

 

Section 5.                                            Notice.  All notices, requests, demands and other communications to New Grantor provided for under the Security Agreement and any other Indenture Document shall be addressed to New Grantor at the address specified on the signature page of this Agreement, or at such other address as shall be designated by New Grantor in a written notice to Collateral Agent and the Secured Parties.

 

Section 6.                                            Binding Nature of Agreement.  All provisions of the Security Agreement and the other Indenture Documents shall remain in full force and effect and be unaffected hereby.  This Agreement shall be binding upon New Grantor and shall inure to the benefit of Collateral Agent and the Secured Parties, and their respective successors and permitted assigns.

 

Section 7.                                            Miscellaneous.  This Agreement may be executed by facsimile signature, that, when so executed and delivered, shall be deemed to be an original.

 

Section 8.                                            Governing Law.  This Agreement shall be construed in accordance with, and governed by, the laws of the State of New York, without regard to principles of conflicts of laws.

 

[Remainder of page left intentionally blank]

 

 

JURY TRIAL WAIVER.  NEW GRANTOR HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG NEW GRANTOR, THE COMPANY, COLLATERAL AGENT AND THE SECURED PARTIES, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

 

IN WITNESS WHEREOF, the undersigned have executed and delivered this Security Agreement Joinder as of the date first written above.

 

 

	
Address:
    	
 
    	
 
    	
[NEW   GRANTOR]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
Attention:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
						

 

 

EXHIBIT A

 

Supplemental SchedulesEXHIBIT 10.2

 

[EXECUTION FINAL]

 

INTERCREDITOR AGREEMENT

 

INTERCREDITOR AGREEMENT dated as of December 15, 2011 (this “Intercreditor Agreement” as hereinafter further defined), among Wells Fargo Bank, National Association, in its capacity as administrative and collateral agent for the First Lien Secured Parties (in such capacity, “First Lien Agent” as hereinafter further defined) and U.S. Bank National Association, a national banking association, in its capacity as trustee and collateral agent for the Second Lien Secured Parties (in such capacity, “Second Lien Agent” as hereinafter further defined).

 

W I T N E S S E T H:

 

WHEREAS, Borrowers (as hereinafter defined) and First Lien Guarantors (as hereinafter defined) have entered into a secured revolving credit facility with First Lien Agent and the lenders for whom it is acting as agent as set forth in the First Lien Loan Agreement (as hereinafter defined) pursuant to which such lenders have made and from time to time may make loans and provide other financial accommodations to Borrowers which are guaranteed by First Lien Guarantors and secured by substantially all of the assets of Borrowers and First Lien Guarantors;

 

WHEREAS, the Company and Second Lien Guarantors have entered into (i) an Indenture (as hereinafter defined) with Second Lien Agent pursuant to which Borrowers have issued notes that are guaranteed by Second Lien Guarantors and (ii) a Second Lien Security Agreement (as hereinafter defined) pursuant to which the notes and obligations under the Indenture are secured by substantially all of the assets of the Company and Second Lien Guarantors; and

 

WHEREAS, First Lien Agent, First Lien Secured Parties, and Second Lien Secured Parties desire and the Second Lien Agent is directed by the other Second Lien Secured Parties to enter into this Intercreditor Agreement to (i) confirm the relative priority of the security interests of First Lien Agent and Second Lien Agent in the assets and properties of Borrowers and Guarantors, (ii) provide for the orderly sharing among them, in accordance with such priorities, of proceeds of such assets and properties upon any foreclosure thereon or other disposition thereof and (iii) address related matters.

 

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and obligations herein set forth and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

Section 1.                                            DEFINITIONS; INTERPRETATION

 

1.1                                 Definitions.  As used in this Intercreditor Agreement, the following terms have the meanings specified below:

 

“Agents” shall mean, collectively, First Lien Agent and Second Lien Agent, sometimes being referred to herein individually as an “Agent”.

 

 

“Asset Sale” shall mean “Asset Sale” as defined in the Indenture.

 

“Bank Product Agreement” shall mean any agreement for any service or facility extended to any Grantor or any of its subsidiaries by a First Lien Secured Party including:  (a) credit cards, (b) debit cards, (c) purchase cards, (d) credit card, debit card and purchase card processing services, (e) treasury, cash management or related services (including the Automated Clearing House processing of electronic funds transfers through the direct Federal Reserve Fedline system) and the Large Value Transfer System operated by the Canadian Payments Association for the processing of electronic funds), (f) cash management, including controlled disbursement, accounts or services, (g) return items, netting, overdraft and interstate depositary network services or (h) Hedging Agreements.

 

“Bank Product Obligations” shall mean and include all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by any Grantor or any of its subsidiaries to a First Lien Secured Party pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all such amounts that any Grantor or any of its subsidiaries is obligated to reimburse to a First Lien Secured Party as a result of such Person purchasing participations or executing indemnities or reimbursement obligations with respect to the products provided to any Grantor or any of its subsidiaries pursuant to the Bank Product Agreements..

 

“Bankruptcy Code” shall mean the United States Bankruptcy Code, being Title 11 of the United States Code, as the same now exists or may from time to time hereafter be amended, modified, recodified or supplemented.

 

“Bankruptcy Law” shall mean the (a) Bankruptcy Code, (b) the BIA, (c) the CCAA, (d) the Winding-up and Restructuring Act (Canada), and (e) any similar Federal, state, provincial or foreign law for the relief of debtors.

 

“BIA” shall mean the Bankruptcy and Insolvency Act (Canada), as now and hereafter in effect, and any successor statute.

 

“Borrowers” shall mean collectively, the US Borrowers (as defined in the First Lien Loan Agreement as in effect on the date hereof); sometimes being referred to herein individually as a “Borrower”.

 

“Business Day” shall mean any day other than a Saturday, a Sunday or a day that is a legal holiday under the laws of the State of New York or on which banking institutions in the State of New York are required or authorized by law or other governmental action to close.

 

“CCAA” shall mean the Companies’ Creditors Arrangement Act (Canada), as now and hereafter in effect, and any successor statute.

 

“Collateral” shall mean all of the property and interests in property, real or personal, tangible or intangible, now owned or hereafter acquired by any Grantor in or upon which any First Lien Secured Party or Second Lien Secured Party at any time has a Lien, and including, without limitation, all proceeds of such property and interests in property.

 

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“Company” means A. M. Castle & Co., a corporation organized under the laws of the State of Maryland.

 

“DIP Financing” shall have the meaning set forth in Section 6.2(a) hereof.

 

“Discharge of First Lien Debt” shall mean (a) the termination of the commitments of the First Lien Lenders and the financing arrangements provided by First Lien Agent and the other First Lien Lenders to Grantors under the First Lien Documents, (b) except to the extent otherwise provided in Sections 6.1 and 6.2 hereof, the payment in full in cash of the First Lien Debt (other than the First Lien Debt described in clause (c) of this definition) and (c) payment in full in cash of cash collateral, or at First Lien Agent’s option, the delivery to First Lien Agent of a letter of credit payable to First Lien Agent, in either case as required under the terms of the First Lien Loan Agreement, in respect of letters of credit issued under the First Lien Documents (but in no event more than 105% of the aggregate undrawn face amount thereof), Bank Product Obligations, continuing obligations of First Lien Agent and First Lien Lenders under control agreements and other contingent First Lien Debt for which a claim has been asserted.  If after receipt of any payment of, or proceeds of Collateral applied to the payment of, the First Lien Debt, First Lien Agent or any other First Lien Secured Party is required to surrender or return such payment or proceeds to any person pursuant to an order of a court of competent jurisdiction, then the First Lien Debt intended to be satisfied by such payment or proceeds shall be reinstated and continue and this Intercreditor Agreement shall continue in full force and effect as if such payment or proceeds had not been received by such First Lien Agent or other First Lien Secured Party, as the case may be, and no Discharge of First Lien Debt shall be deemed to have occurred.

 

“Discharge of First Lien Debt Notice” shall have the meaning set forth in Section 9.10(b) hereof.

 

“Discharge of Second Lien Debt” shall mean (a) either (i) payment in full in cash of the principal of and interest (including interest accruing during the pendency of any Insolvency or Liquidation Proceeding, regardless of whether allowed or allowable in such Insolvency or Liquidation Proceeding) and premium, if any, on all Second Lien Debt or (ii) legal defeasance or covenant defeasance pursuant to the terms of the applicable Second Lien Debt Document, (b) payment in full of all First Lien Debt acquired by the Second Lien Agent and/or any of the Second Lien Secured Parties as contemplated by Section 7  hereof, and (c) payment in full in cash of all other Second Lien Debt that is due and payable at or prior to the time such principal and interest are paid. If after receipt of any payment of, or proceeds of Collateral applied to the payment of, the Second Lien Debt, Second Lien Agent or any other Second Lien Secured Party is required to surrender or return such payment or proceeds to any person pursuant to an order of a court of competent jurisdiction, then the Second Lien Debt intended to be satisfied by such payment or proceeds shall be reinstated and continue and this Intercreditor Agreement shall continue in full force and effect as if such payment or proceeds had not been received by such Second Lien Agent or other Second Lien Secured Party, as the case may be, and no Discharge of Second Lien Debt shall be deemed to have occurred.

 

“Excess Cash Flow” shall have the meaning set forth in the Indenture as in effect on the date hereof.

 

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“Excess Claims Permitted Actions” shall have the meaning set forth in Section 3.5(a) hereof.

 

“Exigent Circumstance” shall have the meaning set forth in Section 7.5 hereof.

 

“First Lien Agent” shall mean Wells Fargo Bank, National Association, a national banking association, and its successors and assigns in its capacity as administrative and collateral agent pursuant to the First Lien Documents acting for and on behalf of the other First Lien Secured Parties and any successor or replacement agent.

 

“First Lien Borrowing Base” means, as of any date, an amount equal to the sum of:

 

(a)          85% of the accounts receivable (net of any reserves and allowances for doubtful accounts in accordance with GAAP) of the Company and its Restricted Subsidiaries that are not more than 90 days past their due date and that were entered into in the ordinary course of business on normal payment terms as shown on the most recent consolidated balance sheet of the Company and its Restricted Subsidiaries as of the end of the most recently ended fiscal quarter for which internal financial statements have been made available or received by First Lien Agent, all in accordance with GAAP; plus

 

(b)         70% of the inventory of the Company and its Restricted Subsidiaries as of the end of the most recently ended fiscal quarter for which internal financial statements have been made available or received by First Lien Agent.

 

“First Lien Debt” shall mean all “Obligations” as such term is defined in the First Lien Loan Agreement, including, without limitation, obligations, liabilities and indebtedness of every kind, nature and description owing by any Grantor to any First Lien Secured Party, including principal, interest, charges, fees, premiums, indemnities and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, arising under any of the First Lien Documents, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of the First Lien Documents or after the commencement of any case with respect to any Grantor under any Bankruptcy Law or any other Insolvency or Liquidation Proceeding (and including, without limitation, any principal, interest, fees, costs, expenses and other amounts, which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or in part in such case or similar proceeding), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured.

 

“First Lien Debt Excess” shall mean the principal amount of any First Lien Debt in excess of the Maximum Priority First Lien Debt, together with the amount of any interest thereupon or fees in respect thereof.

 

“First Lien Debt Purchase” shall have the meaning set forth in Section 7.2(a) hereof.

 

“First Lien Documents” shall mean, collectively, the First Lien Loan Agreement and all agreements, documents and instruments at any time executed and/or delivered by any Grantor or any other person to, with or in favor of any First Lien Secured Party in connection therewith or related thereto, as all of the foregoing now exist or, subject to any limitations set forth in this Intercreditor

 

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Agreement, may hereafter be amended, modified, supplemented, extended, renewed, restated, refinanced, replaced or restructured (in whole or in part and including any agreements with, to or in favor of any other lender or group of lenders that at any time refinances, replaces or succeeds to all or any portion of the First Lien Debt).

 

“First Lien Event of Default” shall mean any “Event of Default” as defined in the First Lien Loan Agreement.

 

“First Lien Guarantors” shall mean, collectively, (a) Transtar Inventory Corp., a corporation organized under the laws of the state of Delaware, (b) Keystone Tube Company, LLC, a corporation organized under the laws of the state of Delaware, (c) any other person that at any time after the date hereof becomes a party to a guarantee in favor of First Lien Agent or the First Lien Lenders in respect of any of the First Lien Debt  and (d) their respective successors and assigns.

 

“First Lien Lenders” shall mean, collectively, any person party to the First Lien Documents as lender (and including any other lender or group of lenders that at any time refinances, replaces or succeeds to all or any portion of the First Lien Debt or is otherwise party to the First Lien Documents as a lender); subject to the restrictions set forth in this Intercreditor Agreement; sometimes being referred to herein individually as a “First Lien Lender”.

 

“First Lien Loan Agreement” shall mean the Loan and Security Agreement, dated as of the date hereof, by and among Grantors, First Lien Agent and First Lien Lenders, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.

 

“First Lien Secured Parties” shall mean, collectively, (a) First Lien Agent, (b) the First Lien Lenders, (c) the issuing bank or banks of letters of credit or similar instruments under the First Lien Loan Agreement, (d) each other person to whom any of the First Lien Debt (including First Lien Debt constituting Bank Product Obligations) is owed and (e) the successors, replacements and assigns of each of the foregoing; sometimes being referred to herein individually as a “First Lien Secured Party”.

 

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect from time to time.

 

“Grantors” shall mean, collectively, (a) Borrowers, (b) Guarantors, (c) each Subsidiary of Borrowers or Guarantors that is organized or formed under the laws of the United States, any state or commonwealth of the United States or the District of Columbia that shall have created or purported to create a Lien on its assets to secure any First Lien Debt or Second Lien Debt and (d) their respective successors and assigns; sometimes being referred to herein individually as a “Grantor”.

 

“Guarantors” shall mean, collectively, the First Lien Guarantors and the Second Lien Guarantors; sometimes being referred to herein individually as a “Guarantor”.

 

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“Hedging Agreement” shall mean an agreement between any Grantor or any of its subsidiaries and any financial institution that is a rate swap agreement, basis swap, forward rate agreement, commodity swap, interest rate option, forward foreign exchange agreement, spot foreign exchange agreement, rate cap agreement rate, floor agreement, rate collar agreement, currency swap agreement, cross-currency rate swap agreement, currency option, any other similar agreement (including any option to enter into any of the foregoing or a master agreement for any of the foregoing together with all supplements thereto) for the purpose of protecting against fluctuations in or managing exposure with respect to interest or exchange rates, currency valuations or commodity prices.

 

“Hedging Obligations” shall mean, with respect to any Person, the obligations of such Person under any Hedging Agreements.

 

“Indebtedness” shall mean any “Indebtedness” as defined in the Indenture.

 

“Indenture” shall mean the Indenture, dated as of the date hereof, by and among Grantors and Second Lien Agent, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.

 

“Insolvency or Liquidation Proceeding” shall mean (a) any voluntary or involuntary case or proceeding under any Bankruptcy Law with respect to any Grantor, (b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding, or any receivership, interim receivership, liquidation, reorganization or other similar case or proceeding with respect to any Grantor or with respect to any of their respective assets, (c) any proceeding seeking the appointment of any trustee, receiver, interim receiver, receiver and manager, liquidator, custodian or other insolvency official with similar powers with respect to such Grantor or any or all of its assets or properties, (d) any proceedings for liquidation, dissolution or other winding up of the business of such Grantor, or (e) any assignment or trust mortgage for the benefit of creditors or any other marshalling of assets and liabilities of any Grantor.

 

“Intercreditor Agreement” shall mean this Intercreditor Agreement, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, all in accordance with the terms hereof.

 

“Lien” shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, security interest, encumbrance (including, but not limited to, easements, rights of way and the like), lien (statutory or other), charge, security agreement or transfer intended as security, including without limitation, any conditional sale or other title retention agreement, the interest of a lessor under a capital lease or any financing lease having substantially the same economic effect as any of the foregoing.

 

“Lien Enforcement Action” shall mean (a) any action by any Secured Party to foreclose on or otherwise enforce the Lien of such Person in all or a material portion of the Collateral or exercise any right of repossession, levy, attachment, setoff or liquidation against all or a material portion of the Collateral, (b) any action by any Secured Party to take possession of, sell or otherwise realize (judicially or non judicially) upon all or a material portion of the Collateral (including, without limitation, by setoff), (c) any action by any Secured Party to facilitate the possession of, sale

 

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of or realization upon all or a material portion of the Collateral including the solicitation of bids from third parties to conduct the liquidation of all or any material portion of the Collateral, the engagement or retention of sales brokers, marketing agents, investment bankers, accountants, auctioneers or other third parties for the purpose of valuing, marketing, promoting or selling all or any material portion of the Collateral, (d) the commencement by any Secured Party of any legal proceedings against or with respect to all or a material portion of the Collateral to facilitate the actions described in (a) through (c) above, or (e) any action to seek or request relief from or modification of the automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of all or a material portion of the Collateral, or any proceeds thereof.  For the purposes hereof, (i) the notification of account debtors to make payments to First Lien Lenders or First Lien Agent shall constitute a Lien Enforcement Action if and only if such action is coupled with an action to take possession of all or a material portion of the Collateral or the commencement of any legal proceedings or actions against or with respect to Grantors or all or a material portion of the Collateral, and (ii) a material portion of the Collateral shall mean Collateral having a value in excess of $5,000,000.

 

“Maximum Priority First Lien Debt” shall mean, as of any date of determination, (a) the amount of indebtedness incurred by the Company or any Restricted Subsidiary of the Company of revolving credit Indebtedness and letters of credit under the First Lien Documents in an aggregate principal amount at any one time outstanding, not to exceed the excess of (i) the greater of (A) $100,000,000 and (B) an amount equal to 35% of the First Lien Borrowing Base as of the date of such incurrence, minus (ii) the sum of (A) the aggregate amount of all repayments, optional or mandatory, of the principal of any term Indebtedness under the First Lien Documents that have been made by the Company or any of its Restricted Subsidiaries since the date of the Indenture as in effect on the date thereof (1) as a result of the application of any Net Proceeds of Asset Sales pursuant to clause (b)(i) of Section 4.10 of the Indenture (Asset Sales) or (2) that was included in clause (E) in the calculation of Excess Cash Flow for any fiscal year, and (B) the aggregate amount of all permanent commitment reductions with respect to any revolving credit extensions thereunder that have been made by the Company or any of its Restricted Subsidiaries since the date of the Indenture (1) as a result of the application of any Net Proceeds of Asset Sales pursuant to clause (b)(i) of Section 4.10 of the Indenture (Asset Sales) or (2) that was included in clause (E) in the calculation of Excess Cash Flow for any fiscal year, plus (b) $10,000,000, plus (c) any interest on such amount (and including, without limitation, any interest which would accrue and become due but for the commencement of an Insolvency or Liquidation Proceeding, whether or not such amounts are allowed or allowable in whole or in part in such case or similar proceeding), plus (d) Bank Product Obligations, plus (e) any fees, costs, expenses and indemnities payable under any of the First Lien Documents (and including, without limitation, any fees, costs, expenses and indemnities which would accrue and become due but for the commencement of an Insolvency or Liquidation Proceeding, whether or not such amounts are allowed or allowable in whole or in part in such case or similar proceeding in respect of the amounts in clauses (a), (b), (c) and (d)).

 

“Net Proceeds” means the aggregate cash proceeds received by the Company or any of its Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of the direct costs relating to such Asset Sale, including, without limitation, legal, accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale, taxes paid or payable as a result of the Asset Sale, in each case, after taking into

 

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account any available tax credits or deductions and any tax sharing arrangements, and amounts required to be applied to the repayment of Indebtedness, other than Indebtedness under the First Lien Documents, secured by a Lien on the asset or assets that were the subject of such Asset Sale and any reserve for adjustment in respect of the sale price of such asset or assets established in accordance with GAAP.

 

“Non-Domestic Subsidiaries” shall mean, individually and collectively, each Subsidiary of any Borrower or Guarantor that is not organized or formed under the laws of the United States, any state or commonwealth of the United States or the District of Columbia.

 

“Permitted Discretion” shall mean a determination made by the relevant Agent in the exercise of reasonable (from the perspective of an asset-based secured lender) business judgment.

 

“Permitted Second Lien Action” shall mean, with respect to the Second Lien Debt and Second Lien Documents, any of the following by Second Lien Agent:

 

(a)                                  initiating, commencing or filing a petition for, or joining with any Person in initiating, commencing or filing a petition for, any Insolvency or Liquidation Proceeding;

 

(b)                                 filing a claim, proof of claim or statement of interest with respect to the Second Lien Debt in connection with any Insolvency or Liquidation Proceeding;

 

(c)                                  taking any action (not adverse to the priority status of the Liens securing the First Lien Debt, or the rights of First Lien Agent to exercise remedies in respect thereof) in order to create, perfect, preserve or protect the Liens securing the Second Lien Debt;

 

(d)                                 filing any necessary responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims for any of the Second Lien Debt, including any claims secured by the Collateral, if any, in each case in accordance with the terms of this Intercreditor Agreement;

 

(e)                                  filing any pleadings, objections, motions or agreements which assert rights or interests available to unsecured creditors arising under any Insolvency or Liquidation Proceeding or under any applicable non-Bankruptcy Law, in each case not inconsistent with the terms of this Intercreditor Agreement;

 

(f)                                    taking any action to the extent necessary to prevent the running of any applicable statute of limitation or similar restriction on claims, or to assert a compulsory cross-claim or counterclaim against any Grantor;

 

(g)                                 taking any action to seek and obtain specific performance or injunctive relief to compel a Grantor to comply with (or not violate or breach) an obligation under the Second Lien Documents, in each case not inconsistent with the terms of this Intercreditor Agreement;

 

(h)                                 voting on any proposal, plan of arrangement, compromise or reorganization, filing any proof of claim, making other filings and making any arguments and motions that are, in

 

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each case, in accordance with the terms of this Intercreditor Agreement, with respect to the Second Lien Debt;

 

(i)                                     making a cash bid on all or any portion of the Collateral up to the amount of First Lien Debt then outstanding and making a cash or credit bid for the remainder of the Second Lien Debt in any foreclosure proceeding or action, to the extent permitted by applicable law; or

 

(j)                                     inspecting or appraising the Collateral or requesting information or reports concerning the Collateral pursuant to the Second Lien Documents.

 

“Person” or “person” shall mean any individual, sole proprietorship, partnership, corporation (including, without limitation, any corporation which elects subchapter S status under the Internal Revenue Code of 1986, as amended), limited liability company, limited liability partnership, business trust, unincorporated association, joint stock company, trust, joint venture, or other entity or any government or any agency or instrumentality or political subdivision thereof.

 

“Pledged Collateral” shall have the meaning set forth in Section 5.1 hereof.

 

“PPSA” shall mean the Personal Property Security Act of any province to which relevant Collateral is subject, and any other applicable federal or provincial statute (including the Civil Code of Quebec) pertaining to the granting, perfecting, priority or ranking of Liens or personal property, and any successor statutes, together with any regulations thereunder, in each case as in effect from time to time.

 

“Recovery” shall have the meaning set forth in Section 6.8 hereof.

 

“Reorganization Subordinated Securities” shall mean any debt or equity securities of any Grantor or any other Person that are distributed to any Second Lien Secured Party in respect of the Second Lien Debt pursuant to a confirmed plan of reorganization or adjustment and that (a) are subordinated in right of payment to the First Lien Debt (or any debt or equity securities issued in substitution of all or any portion of the First Lien Debt) to at least the same extent as the Second Lien Debt is subordinated to the First Lien Debt, (b) do not have the benefit of any obligation of any Person (whether as issuer, guarantor or otherwise) unless the First Lien Debt has at least the same benefit of the obligation of such Person and (c) do not have any terms, and are not subject to or entitled to the benefit of any agreement or instrument that has terms, that are more burdensome to the issuer of or other obligor on such debt or equity securities than are the terms of the First Lien Debt.

 

“Restricted Subsidiary” shall mean any “Restricted Subsidiary” as defined in the Indenture.

 

“Retained First Lien Obligations” shall have the meaning set forth in Section 7.2(a) hereof.

 

“Second Lien Agent” shall mean U.S. Bank National Association, a national banking association, in its capacity as trustee and collateral agent under the Second Lien Documents, and also includes any successor, replacement or agent acting on its behalf as Second Lien Agent for the Second Lien Secured Parties under the Second Lien Documents.

 

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“Second Lien Debt” shall mean all “Obligations” as such term is defined in the Indenture, including, without limitation, obligations, liabilities and indebtedness of every kind, nature and description owing by any Grantor to any Second Lien Secured Party, including principal, interest, charges, fees, premiums, indemnities and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, arising under any of the Second Lien Documents, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of the Second Lien Documents or after the commencement of any case with respect to any Grantor under any Bankruptcy Law or any other Insolvency or Liquidation Proceeding (and including, without limitation, any principal, interest, fees, costs, expenses and other amounts, which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or in part in such case or similar proceeding), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured.

 

“Second Lien Default Notice” shall mean a written notice delivered to Grantors and First Lien Agent by Second Lien Agent, which notice describes the applicable Second Lien Event of Default.

 

“Second Lien Documents” shall mean, collectively, the Indenture, the Second Lien Security Agreement and all agreements, documents and instruments at any time executed and/or delivered by any Grantor or any other person to, with or in favor of any Second Lien Secured Party in connection therewith or related thereto, as all of the foregoing now exist or, subject to any restrictions set forth in this Intercreditor Agreement, may hereafter be amended, modified, supplemented, extended, renewed, restated, refinanced, replaced or restructured (in whole or in part and including any agreements with, to or in favor of any other lender or group of lenders that at any time refinances, replaces or succeeds to all or any portion of the Second Lien Debt).

 

“Second Lien Event of Default” shall mean any “Event of Default” under the Indenture.

 

“Second Lien Guarantors” shall mean, collectively, (a) the “Guarantors”, as such term is defined in the Indenture, (b) any other person that at any time after the date hereof becomes a party to a guarantee in favor of Second Lien Agent or the Second Lien Lenders in respect of any of the Second Lien Debt and (c) their respective successors and assigns.

 

“Second Lien Lenders” shall mean, collectively, the “Holders”, as defined in the Indenture (and including any other lender or group of lenders that at any time refinances, replaces or succeeds to all or any portion of the Second Lien Debt); sometimes being referred to herein individually as a “Second Lien Lender”.

 

“Second Lien Non-Payment Default” shall mean any “Event of Default” as defined in the Second Lien Documents resulting from anything other than a Second Lien Payment Default.

 

“Second Lien Payment Default” shall mean any “Default” as defined in the Second Lien Documents resulting from the failure of Grantors to pay, when due, any principal, premium, if any, interest, fees or other monetary obligations under the Second Lien Documents.

 

“Second Lien Secured Parties” shall mean, collectively, (a) Second Lien Agent, (b) the Second Lien Lenders, (c) each other person to whom any of the Second Lien Debt is owed and (d)

 

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the successors, replacements and assigns of each of the foregoing; sometimes being referred to herein individually as a “Second Lien Secured Party”.

 

“Second Lien Security Agreement” shall mean the Security Agreement, dated as of the date hereof, by and among Grantors and Second Lien Agent, as collateral agent, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.

 

“Secured Parties” shall mean, collectively, the First Lien Secured Parties and the Second Lien Secured Parties; sometimes being referred to herein individually as a “Secured Party”.

 

“Standstill Period” shall have the meaning set forth in Section 3.1(a) hereof.

 

“Subsidiary” shall mean any “Subsidiary” of any Grantor as defined in the First Lien Loan Agreement.

 

“Transferring Lenders” shall have the meaning set forth in Section 7.2(b) hereof.

 

“Triggering Event” shall mean any of the following: (a) an acceleration of the maturity of all or any material portion of the First Lien Debt, (b) the exercise of any Lien Enforcement Action by the First Lien Secured Parties in respect of a material portion of First Lien Collateral, (c) if a First Lien Event of Default exists and is continuing, First Lien Lenders elect not to make any additional loans or advances or issue or cause to be issued letters of credit under the First Lien Documents at a time when (i) there is Global Undrawn Availability (as defined in the First Lien Documents) to make such loans or advances or issue or cause to be issued letters of credit under the First Lien Documents and (ii) such loans or advances or letters of credit issued under the First Lien Documents would not cause the First Lien Debt to exceed the Maximum Priority First Lien Debt, (d) the occurrence of a Second Lien Payment Default that remains uncured or unwaived for a period of thirty (30) days after the receipt by First Lien Agent of a Second Lien Default Notice with respect to such Second Lien Payment Default, or (e) the commencement of an Insolvency or Liquidation Proceeding by or against any Grantor and the occurrence of any one or more of the following: (i) the termination or non-renewal of the First Lien Documents as provided for in any financing order and/or the termination of obligations of First Lien Lenders to make loans or advances or issue or cause to be issued letters of credit under the First Lien Documents, (ii) the entry of an order of the Bankruptcy Court pursuant to Section 363 of any Bankruptcy Law authorizing the sale of substantially all of the assets and properties of the Collateral, (iii) the entry of an order of the Bankruptcy Court pursuant to Section 362 of the Bankruptcy Code vacating the automatic stay in favor of the First Lien Secured Parties in respect of a material portion of the Collateral or (iv) the election by First Lien Secured Parties not to provide DIP Financing to the Grantors.

 

“Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the State of New York.

 

1.2                                 Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context

 

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requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified, (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, and as to any Borrower, any Guarantor or any other Grantor shall be deemed to include a receiver, trustee or debtor-in-possession on behalf of any of such person or on behalf of any such successor or assign, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Intercreditor Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections shall be construed to refer to Sections of this Intercreditor Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

Section 2.                                            LIEN PRIORITIES

 

2.1                                 Acknowledgment of Liens.

 

(a)                                  First Lien Agent, on behalf of itself and each First Lien Secured Party, hereby acknowledges that Second Lien Agent, acting for and on behalf of  the Second Lien Secured Parties, has been granted Liens upon all of the Collateral pursuant to the Second Lien Agreements to secure the Second Lien Debt.

 

(b)                                 Second Lien Agent, on behalf of itself and each Second Lien Secured Party, hereby acknowledges that First Lien Agent, acting for and on behalf of the First Lien Secured Parties, has been granted Liens upon all of the Collateral pursuant to the First Lien Documents to secure the First Lien Debt.

 

2.2                                 Relative Priorities.

 

(a)                                  Notwithstanding the date, manner or order of grant, attachment or perfection of any Liens granted to First Lien Agent or the First Lien Secured Parties or Second Lien Agent or the Second Lien Secured Parties and notwithstanding any provision of the UCC, or any applicable law or any provisions of the First Lien Documents or the Second Lien Documents or any other circumstance whatsoever:

 

(i)                                     Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, hereby agrees that: (A) any Lien on the Collateral securing the First Lien Debt (other than the First Lien Debt Excess) now or hereafter held by or for the benefit or on behalf of any First Lien Secured Party or any agent or trustee therefor shall be senior in right, priority, operation, effect and in all other respects to any Lien on the Collateral securing the Second Lien Debt now or hereafter held by or for the benefit or on behalf of any Second Lien Secured Party or any agent or trustee therefor; and (B) any Lien on the Collateral securing any of the Second Lien Debt now or hereafter held by or for the benefit or on behalf of any Second Lien Secured Party or any agent or trustee therefor regardless of how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall be junior and subordinate in all respects to all Liens on the Collateral securing any First Lien Debt (other than the First Lien Debt Excess).

 

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(ii)                                  First Lien Agent, for itself and on behalf of the other First Lien Secured Parties, hereby agrees that: (A) any Lien on the Collateral securing the Second Lien Debt now or hereafter held by or for the benefit or on behalf of any Second Lien Secured Party or any agent or trustee therefor shall be senior in right, priority, operation, effect and in all other respects to any Lien on the Collateral securing the First Lien Debt Excess now or hereafter held by or for the benefit or on behalf of any First Lien Secured Party or any agent or trustee therefor; and (B) any Lien on the Collateral securing the First Lien Debt Excess now or hereafter held by or for the benefit or on behalf of any First Lien Secured Party or any agent or trustee therefor regardless of how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall be junior and subordinate in all respects to all Liens on the Collateral securing any Second Lien Debt.

 

(b)                                 All Liens on the Collateral securing any First Lien Debt (other than the First Lien Debt Excess) shall be and remain senior in all respects and prior to all Liens on the Collateral securing any Second Lien Debt for all purposes, whether or not such Liens securing any First Lien Debt are subordinated to any Lien securing any other obligation of any Grantor or any other Person.

 

2.3                                 Prohibition on Contesting Liens.  Each of First Lien Agent, for itself and on behalf of the other First Lien Secured Parties, and Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, agrees that it shall not (and hereby waives any right to) contest or support any other Person in contesting, in any proceeding (including any Insolvency or Liquidation Proceeding), the perfection, priority, validity or enforceability of a Lien held by or for the benefit or on behalf of any First Lien Secured Party in any Collateral or by or on behalf of any Second Lien Secured Party in any Collateral, as the case may be; provided, that, nothing in this Intercreditor Agreement shall be construed to prevent or impair the rights of the any First Lien Secured Party or Second Lien Secured Party to enforce this Intercreditor Agreement.

 

2.4                                 No New Liens.  So long as the Discharge of First Lien Debt (other than the First Lien Debt Excess) has not occurred, the parties hereto agree that, after the date hereof, if any Second Lien Secured Party shall hold any Lien on any assets of any Grantor securing any Second Lien Debt that are not also subject to the first priority Lien of First Lien Agent under the First Lien Documents (unless as a result of the written waiver by First Lien Agent of such Lien), such Second Lien Secured Party, upon demand by First Lien Agent or such Grantor, will, at First Lien Agent’s option, either release such Lien or assign it to First Lien Agent as security for the First Lien Debt or such Grantor shall grant a Lien thereon to First Lien Agent in a manner and on terms satisfactory to First Lien Agent.  To the extent that the provisions of this Section 2.4 are not complied with for any reason, without limiting any other right or remedy available to First Lien Agent or any other First Lien Secured Party, Second Lien Agent agrees, for itself and on behalf of the other Second Lien Secured Parties, that any amount received by or distributed to any Second Lien Secured Party pursuant to or as a result of any Lien granted in contravention of this Section shall be subject to Section 4 hereof.  To the extent that the provisions of this Section 2.4 are not complied with for any reason, without limiting any other right or remedy available to Second Lien Agent or any other Second Lien Secured Party, First Lien Agent agrees, for itself and on behalf of the other First Lien Secured Parties, that any amount relating to First Lien Debt Excess received by or distributed to any First Lien Secured Party pursuant to or as a result of any Lien granted in contravention of this Section shall be subject to Section 4 hereof.

 

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2.5                                 Similar Liens and Agreements; Non-Domestic Subsidiaries.

 

(a)                                  The parties hereto agree, subject to the other provisions of this Intercreditor Agreement, upon request by First Lien Agent or Second Lien Agent, as the case may be, to advise the other from time to time of the Collateral for which such party has taken steps to perfect its Liens and to identify the parties obligated under the First Lien Documents or the Second Lien Documents, as the case may be.

 

(b)                                 The parties acknowledge that (i) the First Lien Agent may be granted Liens upon assets of Non-Domestic Subsidiaries as security for the First Lien Debt, (ii) for the purposes of this Intercreditor Agreement, the definition of Collateral shall not include such assets, and (iii) for the purposes of this Intercreditor Agreement, the definition of Grantors shall not include any Non-Domestic Subsidiaries.

 

Section 3.                                            ENFORCEMENT

 

3.1                                 Exercise of Rights and Remedies.  Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties:

 

(a)                                  will not, so long as the Discharge of First Lien Debt (other than the First Lien Debt Excess) has not occurred, enforce or exercise, or seek to enforce or exercise, any rights or remedies (including any right of setoff or notification of account debtors) with respect to any Collateral (including the enforcement of any right under any lockbox agreement, account control agreement, landlord waiver or bailee’s letter or any similar agreement or arrangement to which Second Lien Agent or any other Second Lien Secured Party is a party) or commence or join with any Person (other than First Lien Agent) in commencing, or filing a petition for, any action or proceeding with respect to such rights or remedies (including any such enforcement or exercise in any foreclosure action or proceeding or any Insolvency or Liquidation Proceeding); provided, that, subject at all times to the provisions of Section 4 of this Intercreditor Agreement, Second Lien Agent may enforce or exercise any or all such rights and remedies, or commence or petition for any such action or proceeding, after a period ending (i) with respect to any Second Lien Non-Payment Default, the date which is one hundred eighty (180) days after the receipt by First Lien Agent of a Second Lien Default Notice from the Second Lien Agent declaring, in writing, the occurrence of such Second Lien Non-Payment Default or (ii) with respect to any Second Lien Payment Default, the date which is one hundred twenty (120) days after the receipt by First Lien Agent of a Second Lien Default Notice from the Second Lien Agent declaring, in writing, the occurrence of such Second Lien Payment Default (the “Standstill Period”); provided, that, as of the expiration of the Standstill Period, the applicable Second Lien Event of Default that was the subject of the Second Lien Default Notice received by First Lien Agent which commenced the applicable Standstill Period remains uncured, unremedied or unwaived as of the expiration of the Standstill Period; provided, further, however,  that, notwithstanding the expiration of the Standstill Period or anything herein to the contrary, in no event shall Second Lien Agent or any other Second Lien Secured Party enforce or exercise any rights or remedies with respect to any Collateral, or commence or petition for any such action or proceeding (including the taking such enforcement or exercise in any foreclosure action or proceeding or any Insolvency or Liquidation Proceeding), if First Lien Agent or any other First Lien Secured Party shall have commenced, prior to the expiration of the Standstill Period, a Lien Enforcement Action and shall be pursuing the same in good faith (including, without limitation, any of the following, if undertaken and pursued to consummate the sale of such Collateral within a commercially reasonable time: solicitation of bids from third parties to conduct the liquidation of all

 

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or any material portion of the Collateral, the engagement or retention of sales brokers, marketing agents, investment bankers, accountants, auctioneers or other third parties for the purpose of valuing, marketing, promoting or selling all or any material portion of the Collateral, the notification of account debtors to make payments to First Lien Agent or its agents, the initiation of any action to take possession of all or any material portion of the Collateral or the commencement of any legal proceedings or actions against or with respect to all or any material portion of the Collateral);

 

(b)                                 will not contest, protest or object to any Lien Enforcement Action brought by First Lien Agent or any other First Lien Secured Party, or any other enforcement or exercise by any First Lien Secured Party of any rights or remedies relating to the Collateral under the First Lien Documents or otherwise, so long as the Liens of Second Lien Agent attach to the proceeds thereof subject to the relative priorities set forth in Section 2.2 and such actions or proceedings are being pursued in good faith;

 

(c)                                  will not object to the forbearance by First Lien Agent or the other First Lien Secured Parties from commencing or pursuing any Lien Enforcement Action or any other enforcement or exercise of any rights or remedies with respect to any of the Collateral;

 

(d)                                 will not, so long as the Discharge of First Lien Debt (other than the First Lien Debt Excess) has not occurred and except for actions permitted under Sections 3.1(a) above, take or receive any Collateral, or any proceeds thereof or payment with respect thereto, in connection with the exercise of any right or remedy (including any right of setoff) with respect to any Collateral or in connection with any insurance policy award or any condemnation award (or deed in lieu of condemnation);

 

(e)                                  will not take any action that would, or could reasonably be expected to, hinder, in any manner, any exercise of remedies under the First Lien Documents, including any sale or other disposition of any Collateral, whether by foreclosure or otherwise and acknowledges and agrees that no covenant, agreement or restriction contained in any Second Lien Document shall be deemed to restrict in any way the rights and remedies of First Lien Agent or the other First Lien Secured Parties with respect to the Collateral as set forth in this Intercreditor Agreement and the First Lien Documents;

 

(f)                                    will not object to the manner in which First Lien Agent or any other First Lien Secured Party may seek to enforce or collect the First Lien Debt or the Liens of such First Lien Secured Party, regardless of whether any action or failure to act by or on behalf of First Lien Agent or any other First Lien Secured Party is, or could be, adverse to the interests of the Second Lien Secured Parties, and will not assert, and hereby waive, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or claim the benefit of any marshalling, appraisal, valuation or other similar right that may be available under applicable law with respect to the Collateral or any other rights a junior secured creditor may have under applicable law with respect to the matters described in this clause (f); provided, that, at all times First Lien Agent is acting in good faith; and

 

(g)                                 will not attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge or question the validity or enforceability of any First Lien Debt or any Lien

 

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of First Lien Agent or this Intercreditor Agreement, or the validity or enforceability of the priorities, rights or obligations established by this Intercreditor Agreement.

 

Notwithstanding anything to the contrary set forth in this Section 3.1 or elsewhere in this Intercreditor Agreement, the Second Lien Secured Parties shall at all times be permitted to take any Permitted Second Lien Action against any Grantor.

 

3.2                                 Rights As Unsecured Creditors.  To the extent not inconsistent or otherwise prohibited by the terms of this Intercreditor Agreement, Second Lien Agent and the other Second Lien Secured Parties may exercise rights and remedies as an unsecured creditor against any Grantor in accordance with the terms of the Second Lien Documents and applicable law.  For purposes hereof, the rights of an unsecured creditor do not include a creditor that holds a judgment Lien.  Nothing in this Intercreditor Agreement shall prohibit the receipt by Second Lien Agent or any other Second Lien Secured Parties of the required payments of interest, principal, fees and premium, if any, so long as such receipt is not the direct or indirect result of the exercise by Second Lien Agent or any other Second Lien Secured Party of foreclosure rights or other remedies as a secured creditor or enforcement in contravention of this Intercreditor Agreement of any Lien held by any of them or any other act in contravention of this Intercreditor Agreement.

 

3.3                                 Release of Second Priority Liens.

 

(a)                                  If in connection with any sale, lease, license, exchange, transfer or other disposition of any Collateral permitted under the terms of the First Lien Documents (whether or not an event of default or equivalent event thereunder, and as defined therein, has occurred and is continuing) or consented to or approved by First Lien Agent or in connection with the exercise of First Lien Agent’s remedies in respect of the Collateral provided for in Section 3.1 (provided, that, after giving effect to the release, First Lien Debt secured by the first priority Liens on the remaining Collateral remain outstanding and the Net Proceeds of any such sale, lease, license, exchange, transfer or other disposition are applied in accordance with Section 4.1(a)), First Lien Agent, for itself or on behalf of any of the other First Lien Secured Parties, releases any of its Liens on any part of the Collateral, then effective upon the consummation of such sale, lease, license, exchange, transfer or other disposition:

 

(i)                                     the Liens, if any, of Second Lien Agent, for itself or for the benefit of the Second Lien Secured Parties, on such Collateral shall be automatically, unconditionally and simultaneously released to the same extent as the release of First Lien Agent’s Lien,

 

(ii)                                  Second Lien Agent, for itself or on behalf of the Second Lien Secured Parties, shall promptly upon the request of First Lien Agent execute and deliver such release documents and confirmations of the authorization to file UCC amendments and terminations or PPSA discharges or financing change statements provided for herein, as applicable, in each case as First Lien Agent may require in its Permitted Discretion in connection with such sale or other disposition by First Lien Agent, First Lien Agent’s agents or any Grantor with the consent of First Lien Agent to evidence and effectuate such termination and release; provided, that, any such release, UCC amendment or termination or PPSA discharges or financing change statements by Second Lien Agent shall not extend to or otherwise affect any of the rights, if any, of Second Lien Agent to the proceeds from any such sale or other disposition of Collateral,

 

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(iii)                               Second Lien Agent, for itself or on behalf of the other Second Lien Secured Parties, shall be deemed to have authorized First Lien Agent to file UCC amendments and terminations covering the Collateral so sold or otherwise disposed of as to UCC financing statements between any Grantor and Second Lien Agent or any other Second Lien Secured Party (in the case of Collateral subject tot the UCC) to evidence such release and termination, and

 

(iv)                              Second Lien Agent, for itself or on behalf of the Second Lien Secured Parties, shall be deemed to have consented under the Second Lien Documents to such sale, lease, license, exchange, transfer or other disposition to the same extent as the consent of First Lien Agent and the other First Lien Secured Parties.

 

(b)                                 Until the Discharge of First Lien Debt (other than the First Lien Debt Excess) has occurred, Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, hereby irrevocably constitutes and appoints First Lien Agent and any officer or agent of First Lien Agent, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Second Lien Agent or such holder or in First Lien Agent’s own name, from time to time in First Lien Agent’s discretion, for the limited purpose of carrying out the terms of this Section 3.3, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Section 3.3, including any termination statements, endorsements or other instruments of transfer or release.  The power of attorney granted herein is a power coupled with an interest, shall survive the legal incapacity of the Second Lien Agent and extends to the successors of the Second Lien Agent.  Nothing contained in this Intercreditor Agreement shall be construed to modify the obligation of First Lien Agent to act in a commercially reasonable manner in the exercise of its rights to sell, lease, license, exchange, transfer or otherwise dispose of any Collateral.

 

3.4                                 Insurance and Condemnation Awards.  So long as the Discharge of First Lien Debt (other than the First Lien Debt Excess) has not occurred, First Lien Agent and the other First Lien Secured Parties shall have the sole and exclusive right, subject to the rights of Grantors under the First Lien Documents, to settle and adjust claims in respect of Collateral under policies of insurance and to approve any award granted in any condemnation or similar proceeding, or any deed in lieu of condemnation in respect of the Collateral.  So long as the Discharge of First Lien Debt has not occurred, all proceeds of any such policy and any such award, or any payments with respect to a deed in lieu of condemnation, shall be applied in accordance with Section 4.1(a).  Until the Discharge of First Lien Debt (other than the First Lien Debt Excess), if Second Lien Agent or any other Second Lien Secured Party shall, at any time, receive any proceeds of any such insurance policy or any such award or payment, it shall pay such proceeds over to First Lien Agent in accordance with the terms of Section 4.2.

 

3.5                                 Rights of First Lien Debt Excess Holders.  (a) From and after the date that Second Lien Agent receives a Discharge of First Lien Debt Notice, and provided, that as of such date the Discharge of Second Lien Debt has not occurred, whether or not any Insolvency or Liquidation Proceeding has been commenced, the Second Lien Agent and the other Second Lien Secured Parties shall have the exclusive right to enforce rights and exercise remedies (including any right of setoff) with respect to the Collateral (including making determinations regarding the release, disposition or restrictions with respect to the Collateral), or to commence or seek to commence any action or proceeding with respect to such rights or remedies (including any foreclosure action or proceeding or

 

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any Insolvency or Liquidation Proceeding), in each case, without any consultation with or the consent of any First Lien Secured Parties; provided, that notwithstanding the foregoing, (i) in any Insolvency or Liquidation Proceeding, any such First Lien Secured Party may file a proof of claim or statement of interest with respect to any First Lien Debt Excess; (ii) any such First Lien Secured Party may take any action to preserve or protect the validity and enforceability of the Liens that secure any First Lien Debt Excess; provided, that that no such action is, or could reasonably be expected to be, (A) adverse to the Liens securing the Second Lien Debt or the rights of the Second Lien Agent or any other Second Lien Secured Party to exercise remedies in respect thereof or (B) otherwise inconsistent with the terms of this Intercreditor Agreement, including the automatic release of such Liens provided in Section 3.5(d); (iii) any such First Lien Secured Party may file any responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims of such First Lien Secured Party, including any claims secured by the Collateral or otherwise make any agreements or file any motions pertaining to the First Lien Debt Excess, in each case, to the extent not inconsistent with the terms of this Intercreditor Agreement; (iv) any such First Lien Secured Party may exercise rights and remedies as unsecured creditors, as provided in Section 3.2 (the actions described in this proviso being referred to herein as the “Excess Claims Permitted Actions”).  Except for Excess Claims Permitted Actions, unless and until the Discharge of Second Lien Debt has occurred, the sole right of any First Lien Secured Party with respect to the Collateral from and after the Discharge of First Lien Debt, other than the First Lien Debt Excess, shall be to receive the proceeds of the Collateral, if any, remaining after the Discharge of Second Lien Debt and in accordance with the agreements, instruments and other documents evidencing or governing First Lien Debt Excess and applicable law.

 

(b)                                 First Lien Secured Parties hereby acknowledge and agree that no covenant, agreement or restriction contained in any agreement, instrument or other document that evidences or governs any First Lien Debt Excess (other than the provisions of this Intercreditor Agreement that inure to the benefit of the First Lien Secured Parties) shall be deemed to restrict in any way the rights and remedies of the Second Lien Agent or the other Second Lien Secured Parties with respect to the Collateral as set forth in this Intercreditor Agreement and the other Second Lien Debt Documents.

 

(c)                                  Each First Lien Secured Party agrees that, from and after the date that Second Lien Agent receives a Discharge of First Lien Debt Notice and so long as the Discharge of Second Lien Claims has not occurred, whether or not any Insolvency or Liquidation Proceeding has been commenced, such First Lien Secured Party will not, except for Excess Claims Permitted Actions, (i) enforce or exercise, or seek to enforce or exercise, any rights or remedies (including any right of setoff) with respect to any Collateral (including the enforcement of any right under any account control agreement, landlord waiver or bailee’s letter or any similar agreement or arrangement to which such First Lien Secured Party is a party) or (B) commence or join with any Person (other than the Second Lien Agent) in commencing, or petition for or vote in favor of any resolution for, any action or proceeding with respect to such rights or remedies (including any foreclosure action).

 

(d)                                 If, after the date that Second Lien Agent receives a Discharge of First Lien Debt Notice, there is a release of Liens on Collateral by Second Lien Agent, then the Liens securing the First Lien Debt Excess on such Collateral shall be automatically, unconditionally and simultaneously released, and First Lien Agent shall promptly execute and deliver to the Second Lien Agent such termination statements, releases and other documents as the Second Lien Agent may

 

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reasonably request to effectively confirm such release, in each case, at the sole cost and expense of the Grantors.

 

(e)                                  From and after the date that Second Lien Agent receives a Discharge of First Lien Debt Notice, until the Discharge of Second Lien Debt has occurred, each First Lien Secured Party hereby irrevocably constitutes and appoints Second Lien Agent and any officer or agent of Second Lien Agent, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such holder or in such holder’s own name, from time to time in Second Lien Agent’s discretion, for the limited purpose of carrying out the terms of this Section 3.5, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Section 3.5, including any termination statements, endorsements or other instruments of transfer or release.  The power of attorney granted herein is a power coupled with an interest, shall survive the legal incapacity of such holder and extends to the successors of such holder.  Nothing contained in this Intercreditor Agreement shall be construed to modify the obligation of Second Lien Agent to act in a commercially reasonable manner in the exercise of its rights to sell, lease, license, exchange, transfer or otherwise dispose of any Collateral.

 

Section 4.                                            PAYMENTS

 

4.1                                 Application of Proceeds.

 

(a)                                  So long as the Discharge of First Lien Debt (other than the First Lien Debt Excess) has not occurred, the Collateral or proceeds thereof received in connection with the sale or other disposition of, or collection on, such Collateral upon the exercise of remedies (including without limitation in connection with an Insolvency or Liquidation Proceeding), shall be applied in the following order of priority:

 

(i)                                     first, to the First Lien Debt and for cash collateral as required under the First Lien Documents (other than the First Lien Debt Excess), and in such order as specified in the relevant First Lien Documents until the Discharge of First Lien Debt (other than the First Lien Debt Excess) has occurred;

 

(ii)                                  second, to the Second Lien Debt in such order as specified in the relevant Second Lien Documents until the Discharge of Second Lien Debt has occurred;

 

(iii)                               third, to the First Lien Debt Excess; and

 

(iv)                              fourth, to the applicable Grantor or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct.

 

(b)                                 After the Discharge of First Lien Debt (other than the First Lien Debt Excess), so long as the Discharge of Second Lien Debt has not occurred, to the extent permitted under applicable law and without risk of legal liability to First Lien Agent or any other First Lien Secured Party, First Lien Agent shall deliver to Second Lien Agent, without representation or recourse, any proceeds of Collateral held by it at such time in the same form as received, with any necessary endorsements or as a court of competent jurisdiction may otherwise direct.  After the Discharge of First Lien Debt (other than the First Lien Debt Excess), so long as the Discharge of Second Lien

 

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Debt has not occurred, the Collateral or proceeds thereof received in connection with the sale or other disposition of, or collection on, such Collateral upon the exercise of remedies (including without limitation in connection with an Insolvency or Liquidation Proceeding), shall be applied in the following order of priority:

 

(i)                                     first, to the Second Lien Debt in such order as specified in the relevant Second Lien Documents until the Discharge of Second Lien Debt has occurred;

 

(ii)                                  second, to the First Lien Debt Excess; and

 

(iii)                               third, to the applicable Grantor or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct.

 

(c)                                  The foregoing provisions of this Intercreditor Agreement are intended solely to govern the respective Lien priorities as between Second Lien Agent and First Lien Agent and shall not impose on First Lien Agent or any other First Lien Secured Party any obligations in respect of the disposition of proceeds of foreclosure on any Collateral which would conflict with prior perfected claims therein in favor of any other person or any order or decree of any court or other governmental authority or any applicable law.

 

4.2                                 Payments Over.

 

(a)                                  So long as the Discharge of First Lien Debt has not occurred (other than the First Lien Debt Excess), whether or not any Insolvency or Liquidation Proceeding has been commenced by or against any Grantor, Second Lien Agent agrees, for itself and on behalf of the other Second Lien Secured Parties, that any Collateral or proceeds thereof or payment with respect thereto received by Second Lien Agent or any other Second Lien Secured Party (including any right of set-off) with respect to the Collateral, and including in connection with any insurance policy claim or any condemnation award (or deed in lieu of condemnation), shall be segregated and held in trust and promptly transferred or paid over to First Lien Agent for the benefit of the First Lien Secured Parties in the same form as received, with any necessary endorsements or assignments or as a court of competent jurisdiction may otherwise direct.  First Lien Agent is hereby authorized to make any such endorsements or assignments as agent for Second Lien Agent.  This authorization is coupled with an interest and is irrevocable.

 

(b)                                 So long as the Discharge of First Lien Debt has occurred (excluding any First Lien Debt Excess) and the Discharge of Second Lien Debt has not occurred, whether or not any Insolvency or Liquidation Proceeding has been commenced by or against any Grantor, the First Lien Agent agrees that any Collateral or proceeds thereof or payment with respect thereto received by First Lien Agent (including any right of set-off) with respect to the Collateral, and including in connection with any insurance policy claim or any condemnation award (or deed in lieu of condemnation), shall be segregated and held in trust and promptly transferred or paid over to Second Lien Agent for the benefit of the Second Lien Secured Parties in the same form as received, with any necessary endorsements or assignments or as a court of competent jurisdiction may otherwise direct.  Second Lien Agent is hereby authorized to make any such endorsements or assignments as agent for such holders.  This authorization is coupled with an interest and is irrevocable.

 

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Section 5.                                            BAILEE FOR PERFECTION

 

5.1                                 Each Agent as Bailee.

 

(a)                                  Each Agent agrees to hold any Collateral that can be perfected by the possession or control of such Collateral or of any account in which such Collateral is held, and if such Collateral or any such account is in fact in the possession or under the control of such Agent, or of agents or bailees of such Agent (such Collateral being referred to herein as the “Pledged Collateral”) as bailee and agent for and on behalf of the other Agent solely for the purpose of perfecting the Lien granted to the other Agent in such Pledged Collateral (including, but not limited to, any securities or any deposit accounts or securities accounts, if any) pursuant to the First Lien Documents or Second Lien Documents, as applicable, subject to the terms and conditions of this Section 5.

 

(b)                                 Until the Discharge of First Lien Debt (other than the First Lien Debt Excess) has occurred, First Lien Agent shall be entitled to deal with the Pledged Collateral in accordance with the terms of the First Lien Documents as if the Liens of Second Lien Agent under the Second Lien Documents did not exist.  Until the Discharge of First Lien Debt (other than the First Lien Debt Excess) has occurred, the rights of Second Lien Agent shall at all times be subject to the terms of this Intercreditor Agreement and to First Lien Agent’s rights under the First Lien Documents.  After the date that Second Lien Agent receives a Discharge of First Lien Debt Notice, and until the Discharge of Second Lien Debt has occurred, Second Lien Agent shall be entitled to deal with the Pledged Collateral in accordance with the terms of the Second Lien Documents as if the Liens of any holder of First Lien Debt Excess did not exist.  From and after the date that Second Lien Agent receives a Discharge of First Lien Debt Notice, the rights of any First Lien Secured Party shall be subject to the terms of this Intercreditor Agreement and to Second Lien Agent’s rights under the Second Lien Documents.

 

(c)                                  Each Agent shall have no obligation whatsoever to the other Agent or any other Secured Party to assure that the Pledged Collateral is genuine or owned by any of the Grantors or to preserve rights or benefits of any Person except as expressly set forth in this Section 5.  The duties or responsibilities of each Agent under this Section 5 shall be limited solely to holding the Pledged Collateral as bailee and agent for and on behalf of the other Agent for purposes of perfecting the Lien held by the other Agent.

 

(d)                                 Each Agent shall not have by reason of the First Lien Documents, the Second Lien Documents or this Intercreditor Agreement or any other document a fiduciary relationship in respect of the other Agent or any of the other Secured Parties and shall not have any liability to the other Agent or any other Secured Party in connection with its holding the Pledged Collateral, other than for its gross negligence or willful misconduct as determined by a final, non-appealable order of a court of competent jurisdiction.

 

5.2                                 Transfer of Pledged Collateral.  Upon the Discharge of First Lien Debt (excluding any First Lien Debt Excess), to the extent permitted under applicable law, First Lien Agent shall, without recourse or warranty, transfer the possession and control of the Pledged Collateral, if any, then in its possession or control to Second Lien Agent, except in the event and to the extent (a) First Lien Agent or any other First Lien Secured Party has retained or otherwise acquired such Collateral

 

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(i) in full or partial satisfaction of any of the First Lien Debt (other than any First Lien Debt Excess), or (ii) as cash collateral as contemplated under clause (c) of the definition of “Discharge of First Lien Debt” except to the extent the reimbursement obligations collateralized thereby may constitute First Lien Debt Excess, (b) such Collateral is sold or otherwise disposed of by First Lien Agent or any other First Lien Secured Party or by a Grantor as provided herein or (c) it is otherwise required by any order of any court or other governmental authority or applicable law or would result in the risk of liability of First Lien Agent or any First Lien Secured Party to any third party.  The foregoing provision shall not impose on First Lien Agent or any other First Lien Secured Party any obligations which would conflict with prior perfected claims therein in favor of any other person or any order or decree of any court or other governmental authority or any applicable law.  In connection with any transfer described herein to Second Lien Agent, First Lien Agent agrees to take reasonable actions in its power (with all costs and expenses in connection therewith to be for the account of and to be paid by Grantors) as shall be reasonably requested by Second Lien Agent to permit Second Lien Agent to obtain, for the benefit of the Second Lien Secured Parties, a first priority Lien in the Pledged Collateral.  From and after the date that Second Lien Agent receives a Discharge of First Lien Debt Notice and upon the Discharge of Second Lien Debt, the Second Lien Agent shall transfer the possession and control of the Pledged Collateral, together with any necessary endorsements but without recourse or warranty, (i) if any First Lien Debt Excess is outstanding at such time, to First Lien Agent, and (ii) if no First Lien Debt Excess is outstanding at such time, to the applicable Grantor, in each case so as to allow such Person to obtain possession and control of such Pledged Collateral.  In connection with any transfer under clause (i) of the immediately preceding sentence, the Second Lien Agent agrees, at the sole cost and expense of the Grantors, to take all actions in its power as shall be reasonably requested by the First Lien Agent to permit First Lien Agent to obtain a first priority security interest in the Pledged Collateral.

 

Section 6.                                            INSOLVENCY OR LIQUIDATION PROCEEDINGS

 

6.1                                 General Applicability.  This Intercreditor Agreement shall be applicable both before and after the institution of any Insolvency or Liquidation Proceeding involving Borrowers or any other Grantor, including, without limitation, the filing or application of any petition by or against any Borrower or any other Grantor under the Bankruptcy Code or under any other Bankruptcy Law and all converted or subsequent cases in respect thereof, and all references herein to Borrowers or any Grantor shall be deemed to apply to the trustee for Borrowers or such Grantor and Borrowers or such Grantor as debtor-in-possession.  The relative rights of the First Lien Secured Parties and the Second Lien Secured Parties in or to any distributions from or in respect of any Collateral or proceeds of Collateral shall continue after the institution of any Insolvency or Liquidation Proceeding involving Borrowers or any other Grantor, including, without limitation, the filing or application of any petition by or against Borrowers or any other Grantor under the Bankruptcy Code or under any other Bankruptcy Law and all converted cases and subsequent cases, on the same basis as prior to the date of such institution, subject to any court order approving the financing of, or use of cash collateral by, Borrowers or any other Grantor as debtor-in-possession, or any other court order affecting the rights and interests of the parties hereto not in conflict with this Intercreditor Agreement.  This Intercreditor Agreement shall constitute a Subordination Agreement for the purposes of Section 510(a) of the Bankruptcy Code and shall be enforceable in any Insolvency or Liquidation Proceeding in accordance with its terms.

 

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6.2                                 Bankruptcy Financing.  If any Grantor becomes subject to any Insolvency or Liquidation Proceeding, until the Discharge of First Lien Debt (other than the First Lien Debt Excess) has occurred, Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, agrees that:

 

(a)                                  each Second Lien Secured Party will raise no objection to, nor support any other Person objecting to, and will be deemed to have consented to, the use of any Collateral constituting cash collateral under Section 363 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law or any post-petition or post-filing financing, provided by any First Lien Secured Party under Section 364 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law or pursuant to an order granted in any Insolvency or Liquidation Proceeding granting a priority debtor-in-possession or interim financing charge (a “DIP Financing”), will not request or accept adequate protection or any other relief in connection with the use of such cash collateral or such DIP Financing except as set forth in Section 6.4 below and will subordinate (and will be deemed hereunder to have subordinated) the Liens granted to Second Lien Secured Parties to such DIP Financing on the same terms as such Liens are subordinated to the Liens granted to First Lien Agent hereunder (and such subordination will not alter in any manner the terms of this Intercreditor Agreement), to any adequate protection provided to the First Lien Secured Parties and to any “carve out” agreed to by First Lien Agent; provided, that:

 

(i)                                     First Lien Agent does not oppose or object to such use of cash collateral or DIP Financing,

 

(ii)                                  the aggregate principal amount of such DIP Financing, together with the First Lien Debt as of such date, does not exceed the Maximum Priority First Lien Debt, and the DIP Financing is treated as First Lien Debt hereunder,

 

(iii)                               the Liens granted to the First Lien Secured Parties in connection with such DIP Financing are subject to this Intercreditor Agreement and considered to be Liens of First Lien Agent for purposes hereof,

 

(iv)                              Second Lien Agent retains a Lien on the Collateral (including proceeds thereof) with the same priority as existed prior to such Insolvency or Liquidation Proceeding (except to the extent of any “carve out” agreed to by First Lien Agent),

 

(v)                                 Second Lien Agent receives replacement Liens on all post-petition or post-filing assets of any Grantor in which any of First Lien Agent obtains a replacement Lien, or which secure the DIP Financing, with the same priority relative to the Liens of First Lien Agent as existed prior to such Insolvency or Liquidation Proceeding, and

 

(vi)                              the Second Lien Secured Parties may oppose or object to such use of Cash Collateral or DIP Financing on the same bases as an unsecured creditor, so long as such opposition or objection is not based on the Second Lien Secured Parties’ status as secured creditors and in connection with such opposition or objection, the Second Lien Secured Parties affirmatively state that the Second Lien Secured Parties are undersecured secured creditors; and

 

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(b)                                 no Second Lien Secured Party shall, directly or indirectly, provide, or seek to provide, DIP Financing secured by Liens equal or senior in priority to the Liens on the Collateral of First Lien Agent, without the prior written consent of First Lien Agent.

 

6.3                                 Relief from the Automatic Stay.  Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, agrees that, so long as the Discharge of First Lien Debt (other than the First Lien Debt Excess) has not occurred, no Second Lien Secured Party shall, without the prior written consent of First Lien Agent, seek or request relief from or modification of the automatic stay or any other stay proceedings in any Insolvency or Liquidation Proceeding in respect of any part of the Collateral, any proceeds thereof or any Lien securing any of the Second Lien Debt.

 

6.4                                 Adequate Protection.

 

(a)                                  Second Lien Agent, on behalf of itself and the other Second Lien Secured Parties, agrees that none of them shall object, contest, or support any other Person objecting to or contesting, (i) any request by First Lien Agent or any of the other First Lien Secured Parties for adequate protection or any adequate protection provided to First Lien Agent or other First Lien Secured Parties or (ii) any objection by First Lien Agent or any of the other First Lien Secured Parties to any motion, relief, action or proceeding based on a claim of a lack of adequate protection or (iii) the payment of interest, fees, expenses or other amounts to First Lien Agent or any other First Lien Secured Party under Section 506(b) or 506(c) of the Bankruptcy Code or under any comparable provision of any other Bankruptcy Law.

 

(b)                                 Second Lien Agent, on behalf of itself and the other Second Lien Secured Parties, agrees that none of them shall seek or accept adequate protection without the prior written consent of First Lien Agent; except, that, Second Lien Agent, for itself or on behalf of the other Second Lien Secured Parties, shall be permitted (i) to obtain adequate protection in the form of the benefit of additional or replacement Liens on the Collateral (including proceeds thereof arising after the commencement of any Insolvency or Liquidation Proceeding), or additional or replacement collateral to secure the Second Lien Debt, in connection with any DIP Financing or use of cash collateral as provided for in Section 6.2 above, or in connection with any such adequate protection obtained by First Lien Agent and the other First Lien Secured Parties, as long as in each case, First Lien Agent is also granted such additional or replacement Liens or additional or replacement collateral and such Liens of Second Lien Agent or any other Second Lien Secured Party are subordinated to the Liens securing the First Lien Debt to the same extent as the Liens of Second Lien Agent and the other Second Lien Secured Parties on the Collateral are subordinated to the Liens of First Lien Agent and the other First Lien Secured Parties hereunder and (ii) to obtain adequate protection in the form of reports, notices, inspection rights and similar forms of adequate protection to the extent granted to First Lien Agent.

 

6.5                                 Reorganization Securities.  If, in any Insolvency or Liquidation Proceeding, debt obligations of any reorganized Grantor secured by Liens upon any property of such reorganized Grantor are distributed, pursuant to a proposal or plan of compromise, arrangement or reorganization, on account of both the First Lien Debt and the Second Lien Debt, then, to the extent the debt obligations distributed on account of the First Lien Debt and on account of the Second Lien Debt are secured by Liens upon the same assets or property, the provisions of this Intercreditor 

 

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Agreement will survive the distribution of such debt obligations pursuant to such plan and will apply with like effect to the Liens securing such debt obligations.

 

6.6                                 Separate Classes.  Each of the parties hereto irrevocably acknowledges and agrees that (a) the claims and interests of the First Lien Secured Parties and the Second Lien Secured Parties are not “substantially similar” within the meaning of Section 1122 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law, (b) the grants of the Liens to secure the First Lien Debt and the grants of the Liens to secure the Second Lien Debt constitute two separate and distinct grants of Liens, (c) the First Lien Secured Parties’ rights in the Collateral are fundamentally different from the Second Lien Secured Parties’ rights in the Collateral and (d) as a result of the foregoing, among other things, the First Lien Debt and the Second Lien Debt must be separately classified in any proposal or plan of compromise, arrangement or reorganization proposed or adopted in any Insolvency or Liquidation Proceeding.

 

6.7                                 Asset Dispositions.  Until the Discharge of First Lien Debt (other than First Lien Debt Excess) has occurred, Second Lien Secured Parties shall consent and not otherwise object to a sale or other disposition of any Collateral under the Bankruptcy Code, including Sections 363, 365 and 1129 or under any comparable provision of any other Bankruptcy Law, free and clear of any Liens thereon securing Second Lien Debt, if the First Lien Secured Parties have consented to such sale or other disposition so long as the net cash proceeds are applied in accordance with Section 4.1(a).  Nothing in this Section 6.7 shall preclude any Secured Party from seeking to be the purchaser, assignee or other transferee of any Collateral in connection with any such sale or other disposition of Collateral under any Bankruptcy Law.  The Second Lien Secured Parties agree that the First Lien Secured Parties shall have the right to credit bid under Section 363(k) of the Bankruptcy Code or under any comparable provision of any other Bankruptcy Law with respect to, or otherwise object to any such sale or other disposition of, the Collateral.

 

6.8                                 Preference Issues.  If any First Lien Secured Party is required in any Insolvency or Liquidation Proceeding or otherwise to turn over or otherwise pay to the estate of any Grantor any amount (a “Recovery”), then the First Lien Debt shall be reinstated to the extent of such Recovery and the First Lien Secured Parties shall be entitled to a Discharge of First Lien Debt up to the Maximum Priority First Lien Debt but, until the Discharge of Second Lien Debt, not including any First Lien Debt Excess, with respect to all such recovered amounts.  If this Intercreditor Agreement shall have been terminated prior to such Recovery, this Intercreditor Agreement shall be reinstated in full force and effect, and such prior termination shall not diminish, release, discharge, impair or otherwise affect the obligations of the parties hereto from such date of reinstatement.

 

6.9                                 Certain Waivers as to Section 1111(b)(2) of Bankruptcy Code.  Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, waives any claim any Second Lien Secured Party may hereafter have against any First Lien Secured Party arising out of the election by any First Lien Secured Party of the application of Section 1111(b)(2) of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law.  First Lien Agent, for itself and on behalf of the other First Lien Secured Parties, waives any claim any First Lien Secured Party may hereafter have against any Second Lien Secured Party arising out of the election by any Second Lien Secured Party of the application of Section 1111(b)(2) of the Bankruptcy Code or any comparable provision of any other Bankruptcy Law.

 

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6.10                           No Challenges to Claims.  Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, agrees that no Second Lien Secured Party shall oppose or seek to challenge any claim by any First Lien Secured Party for allowance in any Insolvency or Liquidation Proceeding of any First Lien Debt, including those consisting of post-petition interest, fees or expenses.  First Lien Agent, for itself and on behalf of the other First Lien Secured Parties, agrees that no First Lien Secured Party shall oppose or seek to challenge any claim by any Second Lien Secured Party for allowance in any Insolvency or Liquidation Proceeding of any Second Lien Debt, including those consisting of post-petition interest, fees or expenses.

 

6.11                           Other Bankruptcy Laws.  In the event that an Insolvency or Liquidation Proceeding is filed in a jurisdiction other than the United States or is governed by any Bankruptcy Law other than the Bankruptcy Code, each reference in this Intercreditor Agreement to a section of the Bankruptcy Code shall be deemed to refer to the substantially similar or corresponding provision of the Bankruptcy Law applicable to such Insolvency or Liquidation Proceeding, or in the absence of any specific similar or corresponding provision of the Bankruptcy Law, such other general Bankruptcy Law as may be applied in order to achieve substantially the same result as would be achieved under each applicable section of the Bankruptcy Code.

 

Section 7.                                            SECOND LIEN SECURED PARTIES’ PURCHASE OPTION

 

7.1                                 Exercise of Option.  At any time following the occurrence and during the continuance of a Triggering Event, the Second Lien Secured Parties shall have the option at any time within sixty (60) days of such Triggering Event (the “Purchase Option Period”) to purchase all (but not less than all) of the First Lien Debt (other than the First Lien Debt Excess) from the First Lien Secured Parties.  Second Lien Agent shall give at least five (5) Business Days written notice to First Lien Agent of its election to exercise such purchase option (the “Purchase Option Notice”).  A Purchase Option Notice from Second Lien Agent to First Lien Agent shall be irrevocable.

 

7.2                                 Purchase and Sale.

 

(a)                                  On the date within the Purchase Option Period specified by Second Lien Agent in the Purchase Option Notice (which shall not be less than five (5) Business Days, nor more than twenty (20) days, after the receipt by First Lien Agent of the Purchase Option Notice), the First Lien Secured Parties shall, subject to any required approval of any court or other regulatory or governmental authority then in effect, if any, sell to the Second Lien Lenders electing to purchase (the “Purchasing Parties”), and the Purchasing Parties shall purchase from the First Lien Secured Parties, all of the First Lien Debt other than the First Lien Debt Excess (the “First Lien Debt Purchase”).  Notwithstanding anything to the contrary contained herein, in connection with any such purchase and sale, the First Lien Secured Parties shall retain all rights under the First Lien Documents (i) to receive payments in respect of any First Lien Debt other than the First Lien Debt Excess (the “Retained First Lien Obligations”) and (ii) to be indemnified or held harmless by Grantors in accordance with the terms thereof.

 

(b)                                 In connection with the First Lien Debt Purchase, each First Lien Lender and each Purchasing Party shall execute and deliver an assignment and acceptance agreement pursuant to which, among other things, each First Lien Lender shall assign to each Purchasing Party, such First Lien Lender’s pro rata share of the Commitments and First Lien Debt relating to the First Lien Debt 

 

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Purchase.  In addition to and not in limitation of the foregoing, (i) contemporaneously with the consummation of the First Lien Debt Purchase, First Lien Agent shall resign as the “Agent” under the First Lien Documents and Second Lien Agent (subject to the Second Lien Agent’s consent to act as Agent , which it may withhold in its sole discretion) or such other Person as the Purchasing Parties shall designate, be designated as the successor “Agent” under the First Lien Documents; and (ii) from and after the closing date of the First Lien Debt Purchase, each of the First Lien Lenders who execute and deliver an assignment and acceptance agreement with the Purchasing Parties (the “Transferring Lenders”) shall continue to be, and shall have all rights and remedies of, a “Lender” under the First Lien Documents; except, that, each such Transferring Lender shall have no further obligation whatsoever to make any loans, advances or other financial accommodations to or for the benefit of any Grantor under any First Lien Documents.  Subject to the other provisions of this Intercreditor Agreement, interest with respect to the Retained First Lien Obligations shall continue to be paid in accordance with the terms of the First Lien Documents, the Retained First Lien Obligations shall continue to be secured by the Collateral, the Retained First Lien Obligations shall be repaid, subject to Section 7.3(a)(iv) below, in accordance with the terms of the First Lien Loan Agreement and, subject to the terms of this Intercreditor Agreement, each Transferring Lender shall continue to have all rights and remedies of a Lender under the First Lien Loan Agreement and the other First Lien Documents.  First Lien Agent hereby represents and warrants that, as of the date hereof, no approval of any court or other regulatory or governmental authority is required for the First Lien Debt Purchase.  From and after the First Lien Debt Purchase, Second Lien Agent and the other Second Lien Secured Parties shall have the sole right to enforce all rights and remedies under the First Lien Documents and shall be permitted, notwithstanding anything to the contrary contained in Section 3.1 hereof, to immediately enforce any and all of its rights and remedies under the First Lien Documents and/or the Second Lien Documents.

 

7.3                                 Payment of Purchase Price.

 

(a)                                  Upon the date of such purchase and sale, the Purchasing Parties shall (i) pay to First Lien Agent for the account of the First Lien Secured Parties as the purchase price therefor the full amount of all of the First Lien Debt (other than First Lien Debt Excess) then outstanding and unpaid (including principal, interest, fees and expenses, including reasonable attorneys’ fees and legal expenses), (ii),without duplication of amounts paid under clause (i), furnish cash collateral to First Lien Agent in such amounts as First Lien Agent determines is reasonably necessary to secure the First Lien Secured Parties in connection with any issued and outstanding letters of credit issued under the First Lien Documents (but not in any event in an amount greater than one hundred five (105%) percent of the aggregate undrawn face amount of such letters of credit) to the extent not constituting First Lien Debt Excess (iii) agree to reimburse the First Lien Secured Parties for any loss, cost, damage or expense (including reasonable attorneys’ fees and legal expenses) in connection with any commissions, fees, costs or expenses related to any issued and outstanding letters of credit as described above and any checks or other payments provisionally credited to the First Lien Debt, and/or as to which the First Lien Secured Parties have not yet received final payment, (iv) agree to reimburse the First Lien Secured Parties in respect of indemnification obligations of Grantors under the First Lien Documents as to matters or circumstances known to the First Lien Secured Parties and disclosed in writing to Second Lien Agent (unless such disclosure is not permitted under applicable law) at the time of the purchase and sale which would reasonably be expected to result in any loss, cost, damage or expense (including reasonable attorneys’ fees and legal expenses) to the First Lien Secured Parties and (v) after the payment in full in cash of the 

 

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Second Lien Debt and the First Lien Debt purchased by the Purchasing Parties pursuant to this Section 7, including principal, interest and fees thereon and costs and expense of collection thereof (including reasonable attorneys’ fees and legal expenses), the Purchasing Parties shall remit to First Lien Agent, for the benefit of the First Lien Lenders, in accordance with Section 6.1 hereof, any amounts received by the Purchasing Parties from the Grantors or the Collateral.

 

(b)                                 Such purchase price and cash collateral shall be remitted by wire transfer in federal funds to such bank account of First Lien Agent as First Lien Agent may designate in writing to Second Lien Agent for such purpose.  Interest shall be calculated to but excluding the Business Day on which such purchase and sale shall occur if the amounts so paid by the Purchasing Parties to the bank account designated by First Lien Agent are received in such bank account prior to 12:00 noon, New York City, New York time and interest shall be calculated to and including such Business Day if the amounts so paid by the Purchasing Parties to the bank account designated by First Lien Agent are received in such bank account later than 12:00 noon, New York City, New York time.

 

(c)                                  Ninety (90) days after all letters of credit outstanding under the First Lien Documents have been cancelled with the consent of the beneficiary thereof, expired or have been fully drawn, any remaining cash collateral will be returned to the Purchasing Parties that exercised their option to purchase.

 

7.4                                 Representations Upon Purchase and Sale.  Such purchase shall be expressly made without representation or warranty of any kind by the First Lien Secured Parties as to the First Lien Debt, the Collateral or otherwise and without recourse to the First Lien Secured Parties; except, that, each First Lien Secured Party shall represent and warrant, severally, as to it:  (a) the amount of the First Lien Debt being purchased from it are as reflected in the books and records of such First Lien Secured Party (but without representation or warranty as to the collectability, validity or enforceability thereof), (b) that such First Lien Secured Party owns the First Lien Debt being sold by it free and clear of any Lien and (c) such First Lien Secured Party has the right to assign the First Lien Debt being sold by it and the assignment is duly authorized.

 

7.5                                 Notice from First Lien Agent Prior to Enforcement Action.  In the absence of an Exigent Circumstance (as defined below), First Lien Agent agrees that it will give Second Lien Agent five (5) Business Days prior written notice of its intention to commence a Lien Enforcement Action.  In the event that during such five (5) Business Day period, Second Lien Agent shall send to First Lien Agent the irrevocable notice of the intention of the Second Lien Lenders to exercise the purchase option given by the First Lien Secured Parties to the Second Lien Lenders under this Section 7, the First Lien Secured Parties shall not commence any foreclosure or other action to sell or otherwise realize upon the Collateral; provided, that, the purchase and sale with respect to the First Lien Debt provided for herein shall have closed within five (5) Business Days thereafter and the First Lien Secured Parties shall have received final payment in full of the First Lien Debt as provided for herein within such five (5) Business Day period.  Notwithstanding the foregoing, if an Exigent Circumstance exists, First Lien Agent will give Second Lien Agent notice as soon as practicable and in any event contemporaneously with the taking of such action.  As used herein “Exigent Circumstance” shall mean an event or circumstance that materially and imminently threatens the ability of First Lien Agent to realize upon all or a material portion of the Collateral, 

 

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such as, without limitation, fraudulent removal, concealment, destruction (other than to the extent covered by insurance), material waste or abscondment thereof.

 

Section 8.                                            RELIANCE; WAIVERS; REPRESENTATIONS; ETC.

 

8.1                                 Reliance.  The consent by the First Lien Secured Parties to the execution and delivery of the Second Lien Documents and the grant to Second Lien Agent on behalf of the Second Lien Secured Parties of a Lien on the Collateral and all loans and other extensions of credit made or deemed made on and after the date hereof by the First Lien Secured Parties to any Grantor shall be deemed to have been given and made in reliance upon this Intercreditor Agreement.

 

8.2                                 No Warranties or Liability.

 

(a)                                  Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, acknowledges and agrees that each of First Lien Agent and the other First Lien Secured Parties have made no express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the First Lien Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon.  Second Lien Agent agrees, for itself and on behalf of the other Second Lien Secured Parties, that the First Lien Secured Parties will be entitled to manage and supervise their respective loans and extensions of credit under the First Lien Documents in accordance with law and as they may otherwise, in their sole discretion, deem appropriate, and the First Lien Secured Parties may manage their loans and extensions of credit without regard to any rights or interests that Second Lien Agent or any of the other Second Lien Secured Parties have in the Collateral or otherwise, except as otherwise provided in this Intercreditor Agreement.  Neither First Lien Agent nor any of the other First Lien Secured Parties shall have any duty to Second Lien Agent or any of the other Second Lien Secured Parties to act or refrain from acting in a manner which allows, or results in, the occurrence or continuance of an event of default or default under any agreements with any Grantor (including the Second Lien Documents), regardless of any knowledge thereof which they may have or be charged with.

 

(b)                                 First Lien Agent, for itself and on behalf of the other First Lien Secured Parties, acknowledges and agrees that each of Second Lien Agent and the other Second Lien Secured Parties have made no express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the First Lien Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon.  First Lien Agent agrees, for itself and on behalf of the other First Lien Secured Parties, that the Second Lien Secured Parties will be entitled to manage and supervise their respective loans and notes under the Second Lien Documents in accordance with law and as they may otherwise, in their sole discretion, deem appropriate, and the Second Lien Secured Parties may manage their loans and notes without regard to any rights or interests that First Lien Agent or any of the other First Lien Secured Parties have in the Collateral or otherwise, except as otherwise provided in this Intercreditor Agreement. Neither Second Lien Agent nor any of the other Second Lien Secured Parties shall have any duty to First Lien Agent or any of the other First Lien Secured Parties to act or refrain from acting in a manner which allows, or results in, the occurrence or continuance of an event of default or default under any agreements with any Grantor (including the First Lien Documents), regardless of any knowledge thereof which they may have or be charged with.

 

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8.3                                 No Waiver of Lien Priorities.  No right of First Lien Agent or any of the other First Lien Secured Parties to enforce any provision of this Intercreditor Agreement or any of the First Lien Documents shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of any Grantor or by any act or failure to act by First Lien Agent or any other First Lien Secured Party, or by any noncompliance by any Person with the terms, provisions and covenants of this Intercreditor Agreement, any of the First Lien Documents or any of the Second Lien Documents, regardless of any knowledge thereof which First Lien Agent or any of the other First Lien Secured Parties may have or be otherwise charged with.

 

8.4                                 Representations by Second Lien Secured Parties.  Second Lien Agent, on behalf of Second Lien Secured Parties, represents and warrants to First Lien Agent that:

 

(a)                                  the execution, delivery and performance of this Intercreditor Agreement by Second Lien Agent (i) is within the powers of Second Lien Agent, (ii) has been duly authorized by Second Lien Secured Parties, and (iii) does not contravene any law, any provision of any of the Second Lien Documents;

 

(b)                                 the Second Lien Agent is duly authorized to enter into, execute, deliver and carry out the terms of this Intercreditor Agreement on behalf of the Second Lien Secured Parties; and

 

(c)                                  this Intercreditor Agreement constitutes the legal, valid and binding obligations of Second Lien Agent, enforceable in accordance with its terms and shall be binding on Second Lien Agent.

 

8.5                                 Representations by First Lien Secured Parties.  First Lien Agent, on behalf of First Lien Secured Parties, hereby represents and warrants to Second Lien Agent that:

 

(a)                                  the execution, delivery and performance of this Intercreditor Agreement by First Lien Agent (i) is within the powers of First Lien Agent, (ii) has been duly authorized by First Lien Secured Parties, and (iii) does not contravene any law, any provision of the First Lien Documents or any agreement to which First Lien Agent is a party or by which it is bound;

 

(b)                                 the First Lien Agent is duly authorized to enter into, execute, deliver and carry out the terms of this Intercreditor Agreement on behalf of the First Lien Secured Parties; and

 

(c)                                  this Intercreditor Agreement constitutes the legal, valid and binding obligations of First Lien Agent, enforceable in accordance with its terms and shall be binding on First Lien Agent and First Lien Secured Parties.

 

8.6                                 Waivers.  Notice of acceptance hereof, the making of loans, advances and extensions of credit or other financial accommodations to, and the incurring of any expenses by or in respect of, Grantors by First Lien Secured Parties, and presentment, demand, protest, notice of protest, notice of nonpayment or default and all other notices to which Second Lien Secured Parties and Grantors are or may be entitled are hereby waived (except as expressly provided for herein or as to Grantors in the First Lien Documents).  Second Lien Agent, for itself and on behalf of the other Second Lien Secured Parties, also waives notice of, and hereby consents to: (a) subject to Section 9.4 hereof, any amendment, modification, supplement, renewal, restatement or extensions of time of payment of or increase or decrease in the amount of any of the First Lien Debt or to the First Lien Documents or 

 

30

 

any Collateral at any time granted to or held by First Lien Agent, (b) except as expressly set forth herein, the taking, exchange, surrender and releasing of Collateral at any time granted to or held by any First Lien Secured Parties or guarantees now or at any time held by or available to any First Lien Secured Parties for the First Lien Debt or any other person at any time liable for or in respect of the First Lien Debt, (c) except as expressly set forth herein, the exercise of, or refraining from the exercise of any rights against any Grantor or any Collateral at any time granted to or held by any First Lien Secured Parties, and/or (d) the settlement, compromise or release of, or the waiver of any default with respect to, any of the First Lien Debt.  Any of the foregoing shall not, in any manner, affect the terms hereof or impair the obligations of Second Lien Secured Parties hereunder.  All of the First Lien Debt shall be deemed to have been made or incurred in reliance upon this Intercreditor Agreement.

 

Section 9.                                            MISCELLANEOUS

 

9.1                                 Conflicts.  In the event of any conflict between the provisions of this Intercreditor Agreement and the provisions of the First Lien Documents or the Second Lien Documents, the provisions of this Intercreditor Agreement shall govern.

 

9.2                                 Continuing Nature of this Intercreditor Agreement; Severability.  This Intercreditor Agreement shall continue to be effective until the Discharge of First Lien Debt (including, for the avoidance of doubt, any First Lien Debt Excess) shall have occurred or the final payment in full in cash of the Second Lien Debt and the termination and release by each Second Lien Secured Party of any Liens to secure the Second Lien Debt.  This is a continuing agreement of lien subordination and the First Lien Secured Parties may continue, at any time and without notice to Second Lien Agent or any other Second Lien Secured Party, to extend credit and other financial accommodations and lend monies to or for the benefit of any Grantor constituting First Lien Debt in reliance hereof.  Second Lien Agent, for itself and on behalf of the Second Lien Secured Parties, hereby waives any right it may have under applicable law to revoke this Intercreditor Agreement or any of the provisions of this Intercreditor Agreement.  The terms of this Intercreditor Agreement shall survive, and shall continue in full force and effect, in any Insolvency or Liquidation Proceeding.  Any provision of this Intercreditor Agreement which is prohibited or unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

9.3                                 When Discharge of First Lien Debt Deemed Not To Have Occurred.  If substantially contemporaneously with the Discharge of First Lien Debt (including, for the avoidance of doubt, any First Lien Debt Excess), Borrowers refinance indebtedness outstanding under the First Lien Documents, then after written notice to Second Lien Agent, (a) the indebtedness and other obligations arising pursuant to such refinancing of the then outstanding indebtedness under the First Lien Documents shall automatically be treated as First Lien Debt for all purposes of this Intercreditor Agreement, including for purposes of the Lien priorities and rights in respect of Collateral set forth herein, (b) the credit agreement and the other loan documents evidencing such new indebtedness shall automatically be treated as the First Lien Loan Agreement and the First Lien Documents for all purposes of this Intercreditor Agreement and (c) the administrative agent under the new First Lien Loan Agreement shall be deemed to be First Lien Agent for all purposes of this Intercreditor Agreement, so long as, in each such case the new First Lien Agent agrees, on behalf of itself and the refinancing lenders, to be bound by the terms of this Intercreditor Agreement.  Upon

 

31

 

receipt of notice of such refinancing (including the identity of the new First Lien Agent), Second Lien Agent shall promptly enter into such documents and agreements (including amendments or supplements to this Intercreditor Agreement) as Borrowers or the new First Lien Agent may reasonably request in order to provide to the new First Lien Agent the rights of First Lien Agent contemplated hereby.

 

9.4                                 Amendments to First Lien Documents.  First Lien Agent and any of the other First Lien Secured Parties may, at any time and from time to time, without the consent of, or notice to, Second Lien Agent or any other Second Lien Secured Party, without incurring any liabilities to Second Lien Agent or any other Second Lien Secured Party and without impairing or releasing the Lien priorities and other benefits provided in this Intercreditor Agreement (even if any right of subrogation or other right or remedy of Second Lien Agent or any other Second Lien Secured Party is affected, impaired or extinguished thereby) do any one or more of the following:

 

(a)                                  change the manner, place or terms of payment or change or extend the time of payment of, or amend, renew, exchange, increase or alter, the terms of any of the First Lien Debt or any Lien on any Collateral or guaranty thereof or any liability of any Grantor, or any liability incurred directly or indirectly in respect thereof (including any increase in or extension of the First Lien Debt, without any restriction as to the amount, tenor or terms of any such increase or extension) or otherwise amend, renew, exchange, extend, modify or supplement in any manner any Liens held by First Lien Agent or any of the other First Lien Secured Parties, the First Lien Debt or any of the First Lien Documents; except, that, Second Lien Secured Parties shall not be deemed to consent to any amendment, modification or waiver to the First Lien Documents that would:

 

(i)                                     increase the “Applicable Margins” or similar component of the interest rate under the First Lien Loan Agreement in a manner that would result in the total yield on the First Lien Debt to exceed by more than two (2%) percent per annum the total yield on the First Lien Debt that is calculated as if the highest level of the pricing grid set forth in the “Applicable Margins” or similar component of the interest rate under the First Lien Loan Agreement were in effect on the date hereof (excluding increases resulting from the accrual or payment of interest at the default rate),

 

(ii)                                  modify or add any covenant or event of default under the First Lien Documents that directly restricts Grantors from making payments of the Second Lien Debt that would otherwise be permitted under the First Lien Documents as in effect on the date hereof,

 

(iii)                               contractually subordinate the Liens of the First Lien Secured Parties to any other debt of Grantors,

 

(iv)                              extend the stated maturity date of the First Lien Debt to a date beyond the stated maturity date of the Second Lien Debt under the Indenture (as in effect on the date hereof or as hereafter extended), or

 

(v)                                 contravene the provisions of this Intercreditor Agreement,

 

(b)                                 sell, exchange, release, surrender, realize upon, enforce or otherwise deal with in any manner and in any order any part of the Collateral or any liability of any Grantor to First Lien Agent or any of the other First Lien Secured Parties, or any liability incurred directly or indirectly in respect thereof in accordance with the terms hereof,

 

32

 

(c)                                  settle or compromise any of the First Lien Debt or any other liability of any Grantor or any security therefor or any liability incurred directly or indirectly in respect thereof and apply any sums by whomsoever paid and however realized to any liability (including the First Lien Debt) in any manner or order except to the extent that such proceeds are to be applied in accordance with Section 4.1, and

 

(d)                                 exercise or delay in or refrain from exercising any right or remedy against any Grantor or any other Person, elect any remedy and otherwise deal freely with any Grantor or any Collateral and any security and any guarantor or any liability of any Grantor to any of the First Lien Secured Parties or any liability incurred directly or indirectly in respect thereof.

 

9.5                                 Amendments to Second Lien Documents.  Without the prior written consent of First Lien Agent, no Second Lien Document may be amended, supplemented or otherwise modified, and no new Second Lien Document may be entered into, to the extent such amendment, supplement or other modification or new document would:

 

(a)                                  contravene the provisions of this Intercreditor Agreement,

 

(b)                                 increase the “Applicable Percentage” or similar component of the interest rate under the Second Lien Documents in a manner that would result in the total yield on the Second Lien Debt to exceed by more than two (2%) percent the total yield on the Second Lien Debt as in effect on the date of the Second Lien Documents (excluding increases resulting from the accrual of interest at the default rate or any additional interest that is payable-in-kind),

 

(c)                                  change to earlier dates any scheduled dates for payment of principal of or interest on Second Lien Debt,

 

(d)                                 change any covenant, default or event of default provisions set forth in the Second Lien Documents in a manner adverse to the Grantors or the First Lien Secured Parties,

 

(e)                                  change the prepayment provisions set forth in the Second Lien Documents to increase the amount of any required prepayment,

 

(f)                                    add to the Collateral for the Second Lien Debt other than as specifically provided by this Intercreditor Agreement, or

 

(g)                                 confer additional rights on the Second Lien Secured Parties that would be adverse to the First Lien Secured Parties.

 

9.6                                 Amendments; Waivers.  No amendment, modification or waiver of any of the provisions of this Intercreditor Agreement by Second Lien Agent or First Lien Agent shall be deemed to be made unless the same shall be in writing signed on behalf of the party making the same or its authorized agent and each waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in no way impair the rights of the parties making such waiver or the obligations of the other parties to such party in any other respect or at any other time.  The Grantors shall not have any right to consent to or approve any amendment, modification or waiver of any provision of this Intercreditor Agreement except to the extent their rights or obligations are directly affected.

 

33

 

9.7                                 Subrogation; Marshalling.  Until the Discharge of First Lien Debt (other than the First Lien Debt Excess), the Second Lien Secured Parties agree that they shall not exercise any rights of subrogation in respect of any payments or distributions received by the First Lien Secured Parties up to the amount of the Maximum Priority First Lien Debt nor shall they be entitled to any assignment of any First Lien Debt or Second Lien Debt or of any Collateral for or guarantees or evidence of any thereof.   Following the Discharge of First Lien Debt (other than the First Lien Debt Excess), each First Lien Secured Party agrees to execute such documents, agreements, and instruments as any Second Lien Secured Party may reasonably request to evidence the transfer by subrogation to any such Person of an interest in the First Lien Debt resulting from payments or distributions to such First Lien Secured Party by such Person. Until the Discharge of First Lien Debt (other than the First Lien Debt Excess), Second Lien Agent agrees not to assert and hereby waives, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or otherwise claim the benefit of, any marshalling, appraisal, valuation or other similar right that may otherwise be available under applicable law with respect to the Collateral or any other similar rights a junior secured creditor may have under applicable law.

 

9.8                                 Consent to Jurisdiction; Waivers.  The parties hereto consent to the jurisdiction of the Supreme Court of the State of New York in New York County and the United States District Court for the Southern District of New York and consent that all service of process may be made by registered mail directed to such party as provided in Section 9.9 below for such party.  Service so made shall be deemed to be completed three (3) days after the same shall be posted as aforesaid.  The parties hereto waive any objection to any action instituted hereunder based on forum non conveniens, and any objection to the venue of any action instituted hereunder.  Each of the parties hereto waives any right it may have to trial by jury in respect of any litigation based on, or arising out of, under or in connection with this Intercreditor Agreement, any First Lien Document or any Second Lien Document, or any course of conduct, course of dealing, verbal or written statement or action of any party hereto.

 

9.9                                 Notices.  All notices to the Second Lien Secured Parties and the First Lien Secured Parties permitted or required under this Intercreditor Agreement may be sent to Second Lien Agent and First Lien Agent, respectively.  Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given shall be in writing and may be personally served, electronically mailed or sent by courier service, facsimile transmission or U.S.  mail and shall be deemed to have been given when delivered in person or by courier service, upon receipt of a facsimile transmission or electronic mail or five (5) Business Days after deposit in the U.S.  mail (registered or certified, with postage prepaid and properly addressed).  For the purposes hereof, the addresses of the parties hereto shall be as set forth below, or, as to each party, at such other address as may be designated by such party in a written notice to all of the other parties.

 

	
First Lien Agent:
    	
Wells   Fargo Bank, National Association
    
	
 
    	
150   South Wacker Drive, Suite 2200
    
	
 
    	
Chicago,   Illinois 60606-4202
    
	
 
    	
Attention:
    	
Portfolio   Administrator - A.M.Castle
    
	
 
    	
Telephone   No.: 
    	
312-332-0420
    
	
 
    	
Telecopy   No.: 
    	
312-332-0424
    
	
 
    	
E-Mail:   
    	
brandi.whittington@wellsfargo.com
    

 

34

 

	
with copies to:
    	
Otterbourg,   Steindler, Houston & Rosen, P.C.
    
	
 
    	
230   Park Avenue
    
	
 
    	
New   York, New York 10169
    
	
 
    	
Attention:   
    	
 Mitchell   M. Brand, Esq.
    
	
 
    	
Telephone:   
    	
212-661-9100
    
	
 
    	
Facsimile:   
    	
212-682-6104
    
	
 
    	
E-mail:   
    	
mbrand@oshr.com
    
	
 
    	
 
    
	
Second Lien Agent:
    	
U.S.   Bank National Association
    
	
 
    	
60   Livingston Avenue
    
	
 
    	
Mail   Code EP-MN-WS3C
    
	
 
    	
St.   Paul, Minnesota 55107-1419
    
	
 
    	
Attention:   Raymond   S. Haverstock
    
	
 
    	
Telephone:   651-495-3909
    
	
 
    	
Facsimile   No.:   651-495-8097
    
	
 
    	
E-mail:           Raymond.haverstock@usbank.com
    
	
 
    	
 
    
	
with copies to:
    	
Dorsey   & Whitney LLP
    
	
 
    	
51   West 52nd Street
    
	
 
    	
New   York, New York 10019-6119
    
	
 
    	
Attention:   
    	
Mark   Jutsen
    
	
 
    	
Telephone:   
    	
212-415-9335
    
	
 
    	
Facsimile:   
    	
212-953-7201
    
	
 
    	
E-mail:   
    	
jutsen.mark@dorsey.com
    

 

9.10                           Further Assurances.

 

(a)                                  Each Agent agrees that it shall take such further action and shall execute and deliver to the other Agent such additional documents and instruments (in recordable form, if requested) as such Agent may reasonably request to effectuate the terms of and the lien priorities contemplated by this Intercreditor Agreement.

 

(b)                                 Upon the Discharge of First Lien Debt other than the First Lien Debt Excess), First Lien Agent agrees to provide written notice thereof to Second Lien Agent, which notice shall also advise Second Lien Agent of the amount, if any, of any First Lien Debt Excess (“Discharge of First Lien Debt Notice”).  First Lien Agent covenants and agrees to provide such Discharge of First Lien Debt Notice to Second Lien Agent within two (2) Business Days after the Discharge of First Lien Debt (other than the First Lien Debt Excess).

 

9.11                           Governing Law.  The validity, construction and effect of this Intercreditor Agreement shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or any other rule of law that would result in the application of the law of any jurisdiction other than the laws of the State of New York.

 

35

 

9.12                           Binding on Successors and Assigns.

 

(a)                                  This Intercreditor Agreement shall be binding upon First Lien Agent, the other First Lien Secured Parties, Second Lien Agent, the other Second Lien Secured Parties, Grantors and their respective permitted successors and assigns.

 

(b)                                 In connection with any participation or other transfer or assignment, a First Lien Secured Party or a Second Lien Secured Party (i) may disclose to such assignee, participant or other transferee or assignee all documents and information which such Person now or hereafter may have relating to Grantors or the Collateral and (ii) shall disclose to such participant or other transferee or assignee the existence and terms and conditions of this Intercreditor Agreement.  In the case of an assignment or transfer, the assignee or transferee acquiring the First Lien Debt or the Second Lien Debt, as the case may be, shall execute and deliver to First Lien Agent or Second Lien Agent, as the case may be, a written acknowledgement of receipt of a copy of this Intercreditor Agreement and the written agreement by such Person to be bound by the terms of this Intercreditor Agreement.

 

9.13                           Specific Performance.  First Lien Agent may demand specific performance of this Intercreditor Agreement.  Second Lien Agent, for itself and on behalf of the Second Lien Secured Parties, hereby irrevocably waives any defense based on the adequacy of a remedy at law and any other defense which might be asserted to bar the remedy of specific performance in any action which may be brought by First Lien Agent.

 

9.14                           Section Titles; Time Periods.  The section titles contained in this Intercreditor Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of this Intercreditor Agreement.

 

9.15                           Counterparts.  This Intercreditor Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Intercreditor Agreement by telefacsimile or other electronic method of transmission shall have the same force and effect as the delivery of an original executed counterpart of this Intercreditor Agreement.  Any party delivering an executed counterpart of this Intercreditor Agreement by telefacsimile or other electronic method of transmission shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Intercreditor Agreement.

 

9.16                           Authorization.  By its signature, each Person executing this Intercreditor Agreement on behalf of a party hereto represents and warrants to the other parties hereto that it is duly authorized to execute this Intercreditor Agreement.

 

9.17                           No Third Party Beneficiaries.  This Intercreditor Agreement and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and their respective successors and assigns and shall inure to the benefit of each of the holders of First Lien Debt and Second Lien Debt.  No Grantor or other Person shall have or be entitled to assert rights or benefits hereunder.

 

9.18                           No  Second Lien Agent Duties or Waiver.  The Second Lien Agent shall not have any duties or obligations except those expressly set forth herein and in the Second Lien Documents to which it is a party. Without limiting the generality of the foregoing, the Second Lien Agent:

 

36

 

(a)                                  shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or an Event of Default has occurred and is continuing;

 

(b)                                 shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the Second Lien Documents that the Second Lien Agent is required to exercise as directed in writing by the applicable authorized representative; provided that the Second Lien Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Second Lien Agent to liability or that is contrary to any Second Lien Document, applicable law or court or administrative order;

 

(c)                                  shall not, except as expressly set forth in this Agreement and in the Second Lien Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Grantor or any of their Subsidiaries or any of their respective affiliates that is communicated to or obtained by the Person serving as the Second Lien Agent or any of its affiliates in any capacity;

 

(d)                                 shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the applicable authorized representative or (ii) in the absence of its own gross negligence or wilful misconduct or (iii) in reliance on an Officers’ Certificate stating that such action is permitted by the terms of this Agreement;

 

(e)                                  shall be deemed not to have knowledge of any Default or Event of Default under any First Lien Documents unless and until notice describing such Default or Event Default is given to the Second Lien Agent by the First Lien Agent or the Second Lien Lenders; and

 

(f)                                    shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any First Lien Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any First Lien Documents or any other agreement, instrument or document, or the validity, attachment, creation, perfection, priority or enforceability of any Lien purported to be created by the First Lien Documents, (v) the value or the sufficiency of any Collateral for First Lien Debt or (vi) the satisfaction of any condition set forth in any First Lien Documents, other than to confirm receipt of items expressly required to be delivered to the Second Lien Agent.

 

Nothing in this Agreement shall be construed to operate as a waiver by the Second Lien Agent, with respect to any First Lien Secured Parties, any Grantor, any Guarantor, the Trustee, or any other Second Lien Secured Parties, of the benefit of any exculpatory rights, privileges, immunities, indemnities, or reliance rights contained in the Indenture or any of the other Indenture Loan Documents.  For all purposes of this Agreement, the Second Lien Agent may (i) rely in good faith, as to matters of fact, on any representation of fact believed by the Second Lien Agent to be true (without any duty of investigation) and that is contained in a written certificate of any authorized representative of any First Lien Secured Parties and (ii) assume in good faith (without any duty of investigation), and rely upon, the genuineness, due authority, validity, and accuracy of any 

 

37

 

certificate, instrument, notice, or other document believed by it in good faith to be genuine and presented by the proper person.  First Lien Agent and each of the other First Lien Secured Parties expressly acknowledge that the subordination and related agreements set forth herein by the Second Lien Agent are made solely in its capacity as Collateral Agent under the Indenture and Second Lien Documents to which it is a party with respect to the Second Lien Debt issued thereunder and are not made by the Second Lien Agent in its individual capacity.

 

[SIGNATURE PAGES FOLLOW]

 

38

 

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

 

	
 
    	
FIRST   LIEN AGENT:
    
	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
 as First Lien Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas Blackman
    
	
 
    	
Name:
    	
Thomas   Blackman
    
	
 
    	
Title:
    	
Vice   President
    

 

 

[SIGNATURES CONTINUED ON NEXT PAGE]

 

[Signature Page to Intercreditor Agreement]

 

 

[SIGNATURES CONTINUED FROM PREVIOUS NEXT PAGE]

 

 

	
 
    	
SECOND   LIEN AGENT:
    
	
 
    	
 
    
	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
 as Second Lien Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lynn Gosselin
    
	
 
    	
Name:
    	
Lynn   Gosselin
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Intercreditor Agreement]

 

 

ACKNOWLEDGMENT AND AGREEMENT

 

Each of the undersigned hereby acknowledges and agrees to the representations, terms and provisions of the annexed Intercreditor Agreement among Wells Fargo Bank, National Association, in its capacity as agent for the First Lien Secured Parties (in such capacity, the “First Lien Agent”) and U.S. Bank National Association, in its capacity as agent for the Second Lien Secured Parties (in such capacity, “Second Lien Agent”).  By its signature below, the undersigned agrees that it will, together with its successors and assigns, be bound by the provisions hereof.

 

Each of the undersigned agrees that any Secured Party holding Collateral does so as bailee (under the UCC or PPSA) for the other and is hereby authorized to and may turn over to such other Secured Party upon request therefore any such Collateral, after all obligations and indebtedness of the undersigned to the bailee Secured Party have been fully paid and performed.

 

Each of the undersigned acknowledges and agrees that: (i) although it may sign this intercreditor Agreement it is not a party hereto and does not and will not receive any right, benefit, priority or interest under or because of the existence of the foregoing Agreement, (ii) in the event of a breach by the undersigned of any of the terms and provisions contained in the foregoing Agreement, such a breach shall constitute a First Lien Event of Default and a Second Lien Event of Default and (iii) it will execute and deliver such additional documents and take such additional action as may be necessary or desirable in the opinion of any Secured Party to effectuate the provisions and purposes of the foregoing Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

[Acknowledgment and Agreement to Intercreditor Agreement]

 

 

	
 
    	
GRANTORS:
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Vice   President & Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TRANSTAR METALS CORP.
    
	
 
    	
PARAMONT MACHINE COMPANY, LLC
    
	
 
    	
TOTAL PLASTICS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ADVANCED   FABRICATING TECHNOLOGY, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Vice   President & Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OLIVER STEEL PLATE CO.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Director &   Treasurer
    

 

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TUBE SUPPLY, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Director &   Treasurer
    

 

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[Acknowledgment and Agreement to Intercreditor Agreement]

 

 

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A.M.   CASTLE & CO. (CANADA) INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Vice   President—Finance, CFO & Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TUBE SUPPLY CANADA ULC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Director
    

 

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TRANSTAR INVENTORY CORP.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KEYSTONE TUBE COMPANY, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott F. Stephens
    
	
 
    	
Name:
    	
Scott   F. Stephens
    
	
 
    	
Title:
    	
Treasurer
    

 

[Acknowledgment and Agreement to Intercreditor Agreement]

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