Document:

Exhibit 10.2

 

 

 

GUARANTEE AND COLLATERAL AGREEMENT

 

 

made by

 

 

ADVENT SOFTWARE, INC.

 

 

and certain of its Subsidiaries

 

 

in favor of

 

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

Dated as of November 30, 2011

 

 

 

 

TABLE OF CONTENTS

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 1.
    	
DEFINED TERMS
    	
1
    
	
1.1
    	
Definitions
    	
1
    
	
1.2
    	
Other Definitional Provisions
    	
4
    
	
 
    	
 
    	
 
    
	
SECTION 2.
    	
GUARANTEE
    	
4
    
	
2.1
    	
Guarantee
    	
4
    
	
2.2
    	
Right of Contribution
    	
5
    
	
2.3
    	
No Subrogation
    	
5
    
	
2.4
    	
Amendments, etc. with respect to the Borrower   Obligations
    	
6
    
	
2.5
    	
Guarantee Absolute and Unconditional
    	
6
    
	
2.6
    	
Reinstatement
    	
7
    
	
2.7
    	
Payments
    	
7
    
	
 
    	
 
    	
 
    
	
SECTION 3.
    	
GRANT OF SECURITY INTEREST
    	
7
    
	
 
    	
 
    	
 
    
	
SECTION 4.
    	
REPRESENTATIONS AND WARRANTIES
    	
8
    
	
4.1
    	
Title; No Other Liens
    	
8
    
	
4.2
    	
Perfected First Priority Liens
    	
9
    
	
4.3
    	
Jurisdiction of Organization; Chief Executive Office
    	
9
    
	
4.4
    	
Inventory and Equipment
    	
9
    
	
4.5
    	
Farm Products
    	
9
    
	
4.6
    	
Investment Property
    	
9
    
	
4.7
    	
Receivables
    	
9
    
	
4.8
    	
Intellectual Property
    	
10
    
	
4.9
    	
Commercial Tort Claims
    	
10
    
	
 
    	
 
    	
 
    
	
SECTION 5.
    	
COVENANTS
    	
10
    
	
5.1
    	
Delivery of Instruments, Certificated Securities and   Chattel Paper
    	
10
    
	
5.2
    	
Maintenance of Insurance
    	
11
    
	
5.3
    	
[Reserved]
    	
11
    
	
5.4
    	
Maintenance of Perfected Security Interest; Further   Documentation
    	
11
    
	
5.5
    	
Changes in Name, etc.
    	
11
    
	
5.6
    	
Notices
    	
12
    
	
5.7
    	
Investment Property
    	
12
    
	
5.8
    	
Receivables
    	
13
    
	
5.9
    	
Intellectual Property
    	
13
    
	
5.10
    	
Commercial Tort Claims
    	
14
    
	
 
    	
 
    	
 
    
	
SECTION 6.
    	
REMEDIAL PROVISIONS
    	
14
    
	
6.1
    	
Certain Matters Relating to Receivables
    	
14
    
	
6.2
    	
Communications with Obligors; Grantors Remain Liable
    	
15
    
	
6.3
    	
Pledged Stock
    	
15
    
	
6.4
    	
Proceeds to be Turned Over To Administrative Agent
    	
16
    
	
6.5
    	
Application of Proceeds
    	
16
    
	
6.6
    	
Code and Other Remedies
    	
16
    
	
6.7
    	
Registration Rights
    	
17
    
	
6.8
    	
Subordination
    	
18
    

 

i

 

	
6.9
    	
Deficiency
    	
18
    
	
 
    	
 
    	
 
    
	
SECTION 7.
    	
THE ADMINISTRATIVE AGENT
    	
18
    
	
7.1
    	
Administrative Agent’s Appointment as Attorney-in-Fact, etc.
    	
18
    
	
7.2
    	
Duty of Administrative Agent
    	
19
    
	
7.3
    	
Execution of Financing Statements
    	
20
    
	
7.4
    	
Authority of Administrative Agent
    	
20
    
	
 
    	
 
    	
 
    
	
SECTION 8.
    	
MISCELLANEOUS
    	
20
    
	
8.1
    	
Amendments in Writing
    	
20
    
	
8.2
    	
Notices
    	
20
    
	
8.3
    	
No Waiver by Course of Conduct; Cumulative Remedies
    	
20
    
	
8.4
    	
Enforcement Expenses; Indemnification
    	
21
    
	
8.5
    	
Successors and Assigns
    	
21
    
	
8.6
    	
Set-Off
    	
21
    
	
8.7
    	
Counterparts
    	
21
    
	
8.8
    	
Severability
    	
21
    
	
8.9
    	
Section Headings
    	
22
    
	
8.10
    	
Integration
    	
22
    
	
8.11
    	
GOVERNING LAW
    	
22
    
	
8.12
    	
Submission To Jurisdiction; Waivers
    	
22
    
	
8.13
    	
Acknowledgements
    	
22
    
	
8.14
    	
Additional Grantors
    	
23
    
	
8.15
    	
Releases
    	
23
    
	
8.16
    	
WAIVER OF JURY TRIAL
    	
23
    

 

ii

 

GUARANTEE AND COLLATERAL AGREEMENT

 

GUARANTEE AND COLLATERAL AGREEMENT, dated as of November 30, 2011, made by each of the signatories hereto (together with any other entity that may become a party hereto as provided herein, the “Grantors”), in favor of JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) for the banks and other financial institutions or entities (the “Lenders”) from time to time parties to the Credit Agreement, dated as of November 30, 2011 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Advent Software, Inc. (the “Borrower”), the Lenders and the Administrative Agent.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrower upon the terms and subject to the conditions set forth therein;

 

WHEREAS, the Borrower is a member of an affiliated group of companies that includes each other Grantor;

 

WHEREAS, the proceeds of the extensions of credit under the Credit Agreement will be used in part to enable the Borrower to make valuable transfers to one or more of the other Grantors in connection with the operation of their respective businesses;

 

WHEREAS, the Borrower and the other Grantors are engaged in related businesses, and each Grantor will derive substantial direct and indirect benefit from the making of the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the Credit Agreement that the Grantors shall have executed and delivered this Agreement to the Administrative Agent for the ratable benefit of the Secured Parties;

 

NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each Grantor hereby agrees with the Administrative Agent, for the ratable benefit of the Secured Parties, as follows:

 

SECTION 1.           DEFINED TERMS

 

1.1           Definitions.  (a)  Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement, and the following terms are used herein as defined in the New York UCC:  Accounts, Certificated Security, Chattel Paper, Commercial Tort Claims, Documents, Equipment, Farm Products, General Intangibles, Instruments, Inventory, Letter-of-Credit Rights and Supporting Obligations.

 

(b)   The following terms shall have the following meanings:

 

“Agreement”:  this Guarantee and Collateral Agreement, as the same may be amended, supplemented or otherwise modified from time to time.

 

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“Borrower Obligations”:  the collective reference to the unpaid principal of and interest on the Loans and Reimbursement Obligations and all other obligations and liabilities of the Borrower (including, without limitation, interest accruing at the then applicable rate provided in the Credit Agreement after the maturity of the Loans and Reimbursement Obligations and interest accruing at the then applicable rate provided in the Credit Agreement after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) to the Administrative Agent or any Lender (or, in the case of any Specified Swap Agreement or Specified Cash Management Agreement, any Affiliate of any Lender), whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Credit Agreement, this Agreement, the other Loan Documents, any Letter of Credit, any Specified Swap Agreement, any Specified Cash Management Agreement or any other document made, delivered or given in connection with any of the foregoing, in each case whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Administrative Agent or to the Lenders that are required to be paid by the Borrower pursuant to the terms of any of the foregoing agreements).

 

“Collateral”:  as defined in Section 3.

 

“Collateral Account”:  any collateral account established by the Administrative Agent as provided in Section 6.1 or 6.4.

 

“Copyrights”:  (i) all copyrights arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished (including, without limitation, those listed in Schedule 6 to the Disclosure Letter), all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations, recordings and applications in the United States Copyright Office, and (ii) the right to obtain all renewals thereof.

 

“Copyright Licenses”:  any written agreement naming any Grantor as licensor or licensee (including, without limitation, those listed in Schedule 6 to the Disclosure Letter), granting any right under any Copyright, including, without limitation, the grant of rights to manufacture, distribute, exploit and sell materials derived from any Copyright.

 

“Deposit Account”:  as defined in the Uniform Commercial Code of any applicable jurisdiction and, in any event, including, without limitation, any demand, time, savings, passbook or like account maintained with a depositary institution.

 

“Foreign Subsidiary”:  any Subsidiary organized under the laws of any jurisdiction outside the United States of America.

 

“Foreign Subsidiary Voting Stock”:  the voting Capital Stock of any Foreign Subsidiary.

 

“Guarantor Obligations”:  with respect to any Guarantor, all obligations and liabilities of such Guarantor which may arise under or in connection with this Agreement (including, without limitation, Section 2) or any other Loan Document, any Specified Swap Agreement or any Specified Cash Management Agreement to which such Guarantor is a party, in each case whether on account of guarantee obligations, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Administrative Agent or to the Lenders that are required to be paid by such Guarantor pursuant to the terms of this Agreement or any other Loan Document).

 

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“Guarantors”:  the collective reference to each Grantor other than the Borrower.

 

“Intellectual Property”:  the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark Licenses, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Intercompany Note”:  any promissory note evidencing loans made by any Grantor to the Borrower or any of its Subsidiaries.

 

“Investment Property”:  the collective reference to (i) all “investment property” as such term is defined in Section 9-102(a)(49) of the New York UCC (other than any Foreign Subsidiary Voting Stock excluded from the definition of “Pledged Stock”) and (ii) whether or not constituting “investment property” as so defined, all Pledged Notes and all Pledged Stock.

 

“Issuers”:  the collective reference to each issuer of any Investment Property.

 

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

 

“Obligations”:  (i) in the case of the Borrower, the Borrower Obligations, and (ii) in the case of each Guarantor, its Guarantor Obligations.

 

“Patents”:  (i) all letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof and all goodwill associated therewith, including, without limitation, any of the foregoing referred to in Schedule 6 to the Disclosure Letter, (ii) all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof, including, without limitation, any of the foregoing referred to in Schedule 6 to the Disclosure Letter, and (iii) all rights to obtain any reissues or extensions of the foregoing.

 

“Patent License”:  all agreements, whether written or oral, providing for the grant by or to any Grantor of any right to manufacture, use or sell any invention covered in whole or in part by a Patent, including, without limitation, any of the foregoing referred to in Schedule F to the Disclosure Letter.

 

“Pledged Notes”:  all promissory notes listed on Schedule B to the Disclosure Letter, all Intercompany Notes at any time issued to any Grantor and all other promissory notes issued to or held by any Grantor (other than promissory notes issued in connection with extensions of trade credit by any Grantor in the ordinary course of business).

 

“Pledged Stock”:  the shares of Capital Stock listed on Schedule B to the Disclosure Letter, together with any other shares, stock certificates, options, interests or rights of any nature whatsoever in respect of the Capital Stock of any Person that may be issued or granted to, or held by, any Grantor while this Agreement is in effect; provided that in no event shall more than 66% of the total outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be required to be pledged hereunder.

 

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“Proceeds”:  all “proceeds” as such term is defined in Section 9-102(a)(64) of the New York UCC and, in any event, shall include, without limitation, all dividends or other income from the Investment Property, collections thereon or distributions or payments with respect thereto.

 

“Receivable”:  any right to payment for goods sold or leased or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and whether or not it has been earned by performance (including, without limitation, any Account).

 

“Secured Parties”:  the collective reference to the Administrative Agent, the Lenders and any Affiliate of any Lender to which Borrower Obligations or Guarantor Obligations, as applicable, are owed.

 

“Securities Act”:  the Securities Act of 1933, as amended.

 

“Trademarks”:  (i) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, or otherwise, and all common-law rights related thereto, including, without limitation, any of the foregoing referred to in Schedule F to the Disclosure Letter, and (ii) the right to obtain all renewals thereof.

 

“Trademark License”:  any agreement, whether written or oral, providing for the grant by or to any Grantor of any right to use any Trademark, including, without limitation, any of the foregoing referred to in Schedule F to the Disclosure Letter.

 

“Vehicles”:  all cars, trucks, trailers, construction and earth moving equipment and other vehicles covered by a certificate of title law of any state and all tires and other appurtenances to any of the foregoing.

 

1.2           Other Definitional Provisions.  (a)  The words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and Schedule references are to this Agreement unless otherwise specified.

 

(b)           The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

(c)           Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof.

 

SECTION 2.           GUARANTEE

 

2.1           Guarantee.  (a)  Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees to the Administrative Agent, for the ratable benefit of the Secured Parties and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the Borrower Obligations.

 

4

 

(b)           Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable federal and state laws relating to the insolvency of debtors (after giving effect to the right of contribution established in Section 2.2).

 

(c)           Each Guarantor agrees that the Borrower Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of the Administrative Agent or any Lender hereunder.

 

(d)           The guarantee contained in this Section 2 shall remain in full force and effect until all the Borrower Obligations and the obligations of each Guarantor under the guarantee contained in this Section 2 shall have been satisfied by payment in full (other than unasserted contingent indemnification obligations and, in the absence of a Default or Event of Default, obligations under or in respect of Specified Swap Agreements or Specified Cash Management Agreements), no Letter of Credit shall be outstanding (unless it has been cash collateralized in a manner satisfactory to the Administrative Agent) and the Commitments shall be terminated, notwithstanding that from time to time during the term of the Credit Agreement the Borrower may be free from any Borrower Obligations.

 

(e)           No payment made by the Borrower, any of the Guarantors, any other guarantor or any other Person or received or collected by the Administrative Agent or any Lender from the Borrower, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Borrower Obligations or any payment received or collected from such Guarantor in respect of the Borrower Obligations), remain liable for the Borrower Obligations up to the maximum liability of such Guarantor hereunder until the Borrower Obligations are paid in full (other than unasserted contingent indemnification obligations and, in the absence of a Default or Event of Default, obligations under or in respect of Specified Swap Agreements or Specified Cash Management Agreements), no Letter of Credit shall be outstanding (unless it has been cash collateralized in a manner satisfactory to the Administrative Agent) and the Commitments are terminated.

 

2.2           Right of Contribution.  Each Subsidiary Guarantor hereby agrees that to the extent that a Subsidiary Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Subsidiary Guarantor shall be entitled to seek and receive contribution from and against any other Subsidiary Guarantor hereunder which has not paid its proportionate share of such payment.  Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2 shall in no respect limit the obligations and liabilities of any Subsidiary Guarantor to the Administrative Agent and the Lenders, and each Subsidiary Guarantor shall remain liable to the Administrative Agent and the Lenders for the full amount guaranteed by such Subsidiary Guarantor hereunder.

 

2.3           No Subrogation.  Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor by the Administrative Agent or any Lender, no Guarantor shall be entitled to be subrogated to any of the rights of the Administrative Agent or any Lender against the Borrower or any other Guarantor or any collateral security or guarantee or right of offset held by the Administrative Agent or any Lender for the payment of the Borrower Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder, until all amounts owing to the 

 

5

 

Administrative Agent and the Lenders by the Borrower on account of the Borrower Obligations are paid in full (other than unasserted contingent indemnification obligations and, in the absence of a Default or Event of Default, obligations under or in respect of Specified Swap Agreements or Specified Cash Management Agreements), no Letter of Credit shall be outstanding (unless it has been cash collateralized in a manner satisfactory to the Administrative Agent) and the Commitments are terminated.  If any amount shall be paid to any Guarantor on account of such subrogation rights in violation of the immediately preceding sentence, such amount shall be held by such Guarantor in trust for the Administrative Agent and the Lenders, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Administrative Agent in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Administrative Agent, if required), to be applied against the Borrower Obligations, whether matured or unmatured, in such order as the Administrative Agent may determine.

 

2.4           Amendments, etc. with respect to the Borrower Obligations.  Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Borrower Obligations made by the Administrative Agent or any Lender may be rescinded by the Administrative Agent or such Lender and any of the Borrower Obligations continued, and the Borrower Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Administrative Agent or any Lender, and the Credit Agreement and the other Loan Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required Lenders or all Lenders, as the case may be) may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Administrative Agent or any Lender for the payment of the Borrower Obligations may be sold, exchanged, waived, surrendered or released.

 

2.5           Guarantee Absolute and Unconditional.  Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Borrower Obligations and notice of or proof of reliance by the Administrative Agent or any Lender upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Borrower Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Borrower and any of the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2.  Each Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrower or any of the Guarantors with respect to the Borrower Obligations.  Each Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of the Credit Agreement or any other Loan Document, any of the Borrower Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Administrative Agent or any Lender, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by the Borrower or any other Person against the Administrative Agent or any Lender, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower for the Borrower Obligations, or of such Guarantor under the guarantee contained in this Section 2, in bankruptcy or in any other instance.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Administrative Agent or any Lender may, but shall be under no obligation to, make a similar demand on or otherwise pursue 

 

6

 

such rights and remedies as it may have against the Borrower, any other Guarantor or any other Person or against any collateral security or guarantee for the Borrower Obligations or any right of offset with respect thereto, and any failure by the Administrative Agent or any Lender to make any such demand, to pursue such other rights or remedies or to collect any payments from the Borrower, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Administrative Agent or any Lender against any Guarantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

2.6           Reinstatement.  The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Borrower Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made.

 

2.7           Payments.  Each Guarantor hereby guarantees that payments hereunder will be paid to the Administrative Agent without set-off or counterclaim in Dollars at the Funding Office.

 

SECTION 3.           GRANT OF SECURITY INTEREST

 

Each Grantor hereby grants to the Administrative Agent, for the ratable benefit of the Secured Parties, a security interest in, all of the following property now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations:

 

(a)           all Accounts;

 

(b)           all Chattel Paper;

 

(c)           all Contracts;

 

(d)           all Deposit Accounts;

 

(e)           all Documents (other than title documents with respect to Vehicles);

 

(f)            all Equipment;

 

(g)           all Fixtures;

 

(h)           all General Intangibles;

 

(i)            all Instruments;

 

(j)            all Intellectual Property;

 

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(k)           all Inventory;

 

(l)            all Investment Property;

 

(m)          all Letter-of-Credit Rights;

 

(n)           all Commercial Tort Claims specified on Schedule G to the Disclosure Letter;

 

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

 

(p)           all books and records pertaining to the Collateral; and

 

(q)           to the extent not otherwise included, all Proceeds, Supporting Obligations and products of any and all of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing;

 

provided, however, that notwithstanding any of the other provisions set forth in this Section 3, this Agreement shall not constitute a grant of a security interest in (i) any property to the extent that such grant of a security interest is prohibited by any Requirements of Law of a Governmental Authority, requires a consent not obtained of any Governmental Authority pursuant to such Requirement of Law or is prohibited by, or constitutes a breach or default under or results in the termination of or requires any consent not obtained under, any contract, license, agreement, instrument or other document evidencing or giving rise to such property or, in the case of any Investment Property, Pledged Stock or Pledged Note, any applicable shareholder or similar agreement, except to the extent that such Requirement of Law or the term in such contract, license, agreement, instrument or other document or shareholder or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable law or (ii) “intent-to-use” trademark applications filed in the United States Patent and Trademark Office unless and until acceptable evidence of first use thereof, whether by the actual use thereof in commerce, the recording of a statement of use with the United States Patent and Trademark Office or otherwise, exists, solely to the extent that granting a security interest in such applications prior to such time would adversely affect the enforceability or validity of such applications.

 

SECTION 4.           REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrower thereunder, each Grantor hereby represents and warrants to the Administrative Agent and each Lender that:

 

4.1           Title; No Other Liens.  Except for the security interest granted to the Administrative Agent for the ratable benefit of the Secured Parties pursuant to this Agreement and the other Liens permitted to exist on the Collateral by the Credit Agreement, such Grantor owns each item of the Collateral free and clear of any and all Liens or claims of others.  No financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except such as have been filed in favor of the Administrative Agent, for the ratable benefit of the Secured Parties, pursuant to this Agreement or as are permitted by the Credit Agreement.  For the avoidance of doubt, it is understood and agreed that any Grantor may, as part of its business, grant licenses to third parties to use Intellectual Property owned or developed by a Grantor.  For purposes of this Agreement and the other Loan Documents, such licensing activity shall not constitute a “Lien” on such Intellectual Property.  Each 

 

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of the Administrative Agent and each Lender understands that any such licenses may be exclusive to the applicable licensees, and such exclusivity provisions may limit the ability of the Administrative Agent to utilize, sell, lease or transfer the related Intellectual Property or otherwise realize value from such Intellectual Property pursuant hereto.

 

4.2           Perfected First Priority Liens.  The security interests granted pursuant to this Agreement (a) upon completion of the filings and other actions specified on Schedule C to the Disclosure Letter (which, in the case of all filings and other documents referred to on said Schedule, have been delivered to the Administrative Agent in completed and duly executed form) will constitute valid perfected security interests in all of the Collateral in favor of the Administrative Agent, for the ratable benefit of the Secured Parties, as collateral security for such Grantor’s Obligations, enforceable in accordance with the terms hereof against all creditors of such Grantor and any Persons purporting to purchase any Collateral from such Grantor and (b) are prior to all other Liens on the Collateral in existence on the date hereof except for Liens permitted by the Credit Agreement which have priority over the Liens on the Collateral by operation of law, in each case to the extent that the security interest in the Collateral can be perfected by the taking of actions specified on Schedule C to the Disclosure Letter.

 

4.3           Jurisdiction of Organization; Chief Executive Office.  On the Closing Date, such Grantor’s name, jurisdiction of organization, identification number from the jurisdiction of organization (if any), and the location of such Grantor’s chief executive office or sole place of business or principal residence, as the case may be, are specified on Schedule D to the Disclosure Letter.

 

4.4           Inventory and Equipment.  On the Closing Date, the Inventory and the Equipment (other than mobile goods) are kept at the locations listed on Schedule E to the Disclosure Letter.

 

4.5           Farm Products.  None of the Collateral constitutes, or is the Proceeds of, Farm Products.

 

4.6           Investment Property.  (a)  The shares of Pledged Stock pledged by such Grantor hereunder constitute all the issued and outstanding shares of all classes of the Capital Stock of each Issuer owned by such Grantor or, in the case of Foreign Subsidiary Voting Stock, if less, 66% (or, if so indicated on Schedule B to the Disclosure Letter, 65%) of the outstanding Foreign Subsidiary Voting Stock of each relevant Issuer.

 

(b)           All the shares of the Pledged Stock have been, or, in the case of Pledged Stock issued by Issuers that are not Subsidiaries, to such Grantor’s knowledge have been, duly and validly issued and are fully paid and nonassessable.

 

(c)           To such Grantor’s knowledge, each of the Pledged Notes pledged by such Grantor constitutes the legal, valid and binding obligation of the obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

(d)           Such Grantor is the record and beneficial owner of, and has good and marketable title to, the Investment Property pledged by it hereunder, free of any and all Liens except the security interest created by this Agreement.

 

4.7           Receivables.  (a)  No amount payable to such Grantor under or in connection with any Receivable is evidenced by any Instrument or Chattel Paper which has not been delivered to the Administrative Agent, except as permitted by Section 5.1.

 

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(b)           None of the obligors on any Receivables is a United States federal Governmental Authority.

 

(c)           The amounts represented by such Grantor to the Administrative Agent from time to time as owing to such Grantor in respect of the Receivables will at such times be determined in good faith.

 

4.8           Intellectual Property.  (a)  Schedule F to the Disclosure Letter lists all registered Intellectual Property owned by such Grantor in its own name on the Closing Date.

 

(b)           On the date hereof, all Intellectual Property owned by such Grantor is valid, subsisting, unexpired and enforceable, has not been abandoned and does not infringe the intellectual property rights of any other Person, in each case except as could not reasonably be expected to have a Material Adverse Effect.

 

(c)           No holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or invalidate any Intellectual Property owned by such Grantor or such Grantor’s ownership interest therein in any respect that could reasonably be expected to have a Material Adverse Effect.

 

(d)           No action or proceeding is pending, or, to the knowledge of such Grantor, threatened in writing, on the date hereof, seeking to limit, cancel or invalidate any material Intellectual Property owned by such Grantor or such Grantor’s ownership interest therein.

 

4.9           Commercial Tort Claims

 

(a)           On the Closing Date, except to the extent listed in Schedule C to the Disclosure Letter, no Grantor has rights in any Commercial Tort Claim with potential value in excess of $250,000.

 

(b)           Upon the filing of a financing statement covering any Commercial Tort Claim referred to in Section 5.11 hereof against such Grantor in the jurisdiction specified in Schedule 3 hereto, the security interest granted in such Commercial Tort Claim will constitute a valid perfected security interest in favor of the Administrative Agent, for the ratable benefit of the Secured Parties, as collateral security for such Grantor’s Obligations, enforceable in accordance with the terms hereof against all creditors of such Grantor and any Persons purporting to purchase such Collateral from Grantor, which security interest shall be prior to all other Liens on such Collateral except for unrecorded liens permitted by the Credit Agreement which have priority over the Liens on such Collateral by operation of law.

 

SECTION 5.           COVENANTS

 

Each Grantor covenants and agrees with the Administrative Agent and the Lenders that, from and after the date of this Agreement until the Obligations shall have been paid in full, no Letter of Credit shall be outstanding and the Commitments shall have terminated:

 

5.1           Delivery of Instruments, Certificated Securities and Chattel Paper.  If any amount in excess of $1,000,000 in the aggregate payable under or in connection with any of the Collateral shall be or become evidenced by any Instrument, Certificated Security or Chattel Paper, such Instrument, Certificated Security or Chattel Paper shall be promptly delivered to the Administrative Agent, duly indorsed in a manner satisfactory to the Administrative Agent, to be held as Collateral pursuant to this Agreement.

 

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5.2           Maintenance of Insurance.  (a)  Such Grantor will maintain the insurance of the type and in the amounts required by Section 6.5 of the Credit Agreement.

 

(b)           Such Grantor’s insurance policies shall (i) provide that no cancellation, material reduction in amount or material change in coverage thereof shall be effective until at least 30 days after receipt by the Administrative Agent of written notice thereof, (ii) name the Administrative Agent as insured party or loss payee, (iii) if reasonably requested by the Administrative Agent, include a breach of warranty clause and (iv) be reasonably satisfactory in all other respects to the Administrative Agent.

 

(c)           The Borrower shall deliver to the Administrative Agent and the Lenders a report of a reputable insurance broker with respect to such insurance as the Administrative Agent may from time to time reasonably request (but not more frequently than once per calendar year unless a Default or Event of Default exists).

 

5.3           [Reserved].

 

5.4           Maintenance of Perfected Security Interest; Further Documentation.  (a)  Such Grantor shall maintain the security interest created by this Agreement as a perfected security interest having at least the priority described in Section 4.2 and shall defend such security interest against any claims and demands of any Person at any time claiming any interest in the Collateral that is adverse to the Administrative Agent or the Lenders, subject to the rights of such Grantor under the Loan Documents to dispose of the Collateral. Neither the Administrative Agent nor any Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Borrower Obligations or for the guarantee contained in Section 2 or any property subject thereto.

 

(b)           Such Grantor will furnish to the Administrative Agent and the Lenders from time to time statements and schedules further identifying and describing the assets and property of such Grantor and such other reports in connection therewith as the Administrative Agent may reasonably request, all in reasonable detail.

 

(c)           At any time and from time to time, upon the written request of the Administrative Agent, and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver, and have recorded, such further instruments and documents and take such further actions as the Administrative Agent may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, including, without limitation, (i) filing any financing or continuation statements under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security interests created hereby and (ii) in the case of Investment Property, Deposit Accounts, Letter-of-Credit Rights and any other relevant Collateral, taking any actions necessary to enable the Administrative Agent to obtain “control” (within the meaning of the applicable Uniform Commercial Code) with respect thereto, subject to the exceptions contained in Sections 5.1 and 5.7.

 

(d)           Notwithstanding anything contained in this Agreement to the contrary, the Administrative Agent shall not require any Grantor to take any action with respect to the Collateral or the security interest granted therein to the extent the Administrative Agent determines, in its sole discretion, that the cost of taking such action is excessive in relation to the value of the security to be afforded thereby.

 

5.5           Changes in Name, etc.  Such Grantor will not, except upon 15 days’ prior written notice to the Administrative Agent (or such other period of time as agreed to by the Administrative Agent) and delivery to the Administrative Agent of all additional executed financing statements and other documents

 

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reasonably requested by the Administrative Agent to maintain the validity, perfection and priority of the security interests provided for herein, (i) change its jurisdiction of organization or the location of its chief executive office or sole place of business or principal residence from that referred to in Section 4.3 or (ii) change its name.

 

5.6                   Notices.  Such Grantor will advise the Administrative Agent promptly, in reasonable detail, of:

 

(a)           any Lien (other than security interests created hereby or Liens permitted under the Credit Agreement) on any of the Collateral which would materially and adversely affect the ability of the Administrative Agent to exercise any of its remedies hereunder; and

 

(b)           of the occurrence of any other event which could reasonably be expected to have a material adverse effect on the aggregate value of the Collateral or on the security interests created hereby.

 

5.7           Investment Property.  (a)  Subject to the exceptions contained in Section 5.1, if such Grantor shall receive any certificate (including, without limitation, any certificate representing a dividend or a distribution in connection with any reclassification, increase or reduction of capital or any certificate issued in connection with any reorganization), option or rights in respect of the Capital Stock of any Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the same as the agent of the Administrative Agent and the Lenders, hold the same in trust for the Administrative Agent and the Lenders and, in the case of a certificate or instrument, deliver the same forthwith to the Administrative Agent in the exact form received, duly indorsed by such Grantor to the Administrative Agent, if required, together with an undated stock power covering such certificate duly executed in blank by such Grantor and with, if the Administrative Agent so requests, signature guaranteed, to be held by the Administrative Agent, subject to the terms hereof, as additional collateral security for the Obligations.  Any sums paid upon or in respect of the Investment Property upon the liquidation or dissolution of any Issuer, unless otherwise subject to a perfected security interest in favor of the Administrative Agent, shall be paid over to the Administrative Agent to be held by it hereunder as additional collateral security for the Obligations, and in case any distribution of capital shall be made on or in respect of the Investment Property or any property shall be distributed upon or with respect to the Investment Property pursuant to the recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the property so distributed shall, unless otherwise subject to a perfected security interest in favor of the Administrative Agent, be delivered to the Administrative Agent to be held by it hereunder as additional collateral security for the Obligations.  If any sums of money or property so paid or distributed in respect of the Investment Property shall be received by such Grantor, such Grantor shall, until such money or property is paid or delivered to the Administrative Agent, hold such money or property in trust for the Administrative Agent and the Lenders, segregated from other funds of such Grantor, as additional collateral security for the Obligations.

 

(b)           Without the prior written consent of the Administrative Agent, such Grantor will not (i) vote to enable, or take any other action to permit, any Issuer that is a Subsidiary to issue any Capital Stock of any nature or to issue any other securities convertible into or granting the right to purchase or exchange for any Capital Stock of any nature of any Issuer that is a Subsidiary, (ii) sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, the Investment Property or Proceeds thereof (except pursuant to a transaction expressly permitted by the Credit Agreement), (iii) create, incur or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, any of the Investment Property or Proceeds thereof, or any interest therein, except for the security interests created by this Agreement or (iv) enter into any agreement or undertaking restricting the right or ability of such

 

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Grantor or the Administrative Agent to sell, assign or transfer any of the Investment Property or Proceeds thereof.

 

(c)           In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be bound by the terms of this Agreement relating to the Investment Property issued by it and will comply with such terms insofar as such terms are applicable to it, (ii) it will notify the Administrative Agent promptly in writing of the occurrence of any of the events described in Section 5.7(a) with respect to the Investment Property issued by it and (iii) the terms of Sections 6.3(c) and 6.7 shall apply to it, mutatis  mutandis, with respect to all actions that may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the Investment Property issued by it.

 

(d)           Unless an Event of Default shall have occurred and be continuing and the Administrative Agent shall have given notice to the relevant Grantor of the Administrative Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to receive all cash dividends paid in respect of the Pledged Stock and all payments made in respect of the Pledged Notes, to the extent permitted in the Credit Agreement, and to exercise all voting and corporate or other organizational rights with respect to the Investment Property; provided, however, that no vote shall be cast or corporate or other organizational right exercised or other action taken which, in such Grantor’s good faith judgment, would impair the Collateral or which would result in any violation of any provision of the Credit Agreement, this Agreement or any other Loan Document.

 

5.8           Receivables.  (a)  Other than in the ordinary course of business, such Grantor will not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could reasonably be expected to materially and adversely affect the value thereof.

 

5.9           Intellectual Property.  (a)  Such Grantor will (i) maintain each material Trademark in full force free from any claim of abandonment for non-use, (ii) use such Trademark with the appropriate notice of registration and all other notices and legends required by applicable Requirements of Law, and (iii) not do any act or knowingly omit to do any act whereby such Trademark could reasonably be expected to become invalidated or impaired in material respect.

 

(b)           Such Grantor will not do any act, or omit to do any act, whereby any material Patent could reasonably be expected to become forfeited, abandoned or dedicated to the public.

 

(c)           Such Grantor (i) will employ each material Copyright and (ii) will not do any act or knowingly omit to do any act whereby any material portion of the Copyrights could reasonably be expected to become invalidated or otherwise impaired.  Such Grantor will not do any act whereby any material portion of the Copyrights could reasonably be expected to fall into the public domain.

 

(d)           Such Grantor will not do any act that knowingly uses any material Intellectual Property to infringe the Intellectual Property rights of any other Person.

 

(e)           Such Grantor will notify the Administrative Agent and the Lenders promptly if it knows, or has reason to know, that any application or registration relating to any material Intellectual Property may become forfeited, abandoned or dedicated to the public, or of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court or tribunal in any country) regarding such Grantor’s ownership of, or the validity of, any

 

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material Intellectual Property or such Grantor’s right to register the same or to own and maintain the same.

 

(f)            Whenever such Grantor, either by itself or through any agent, employee, licensee or designee, shall become an exclusive licensee of any U.S. Intellectual Property application or registration, or acquire or file an application or registration of any Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, such Grantor shall report such filing to the Administrative Agent as required by Section 6.2 of the Credit Agreement.  Upon request of the Administrative Agent, such Grantor shall execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers as the Administrative Agent may request to evidence and perfect the Administrative Agent’s and the Lenders’ security interest in any Copyright, Patent or Trademark and the goodwill and general intangibles of such Grantor relating thereto or represented thereby.

 

(g)           Such Grantor will take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of the material Intellectual Property, including, without limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability.

 

(h)           In the event that any material Intellectual Property is infringed, misappropriated or diluted by a third party, such Grantor shall (i) take such actions as such Grantor shall reasonably deem appropriate under the circumstances to protect such Intellectual Property and (ii) if such Intellectual Property is of material economic value, promptly notify the Administrative Agent after it learns thereof.

 

5.10         Commercial Tort Claims.  If such Grantor shall obtain an interest in any Commercial Tort Claim with a potential value in excess of $500,000, such Grantor shall within 30 days of obtaining such interest sign and deliver documentation reasonably acceptable to the Administrative Agent granting a security interest under the terms and provisions of this Agreement in and to such Commercial Tort Claim.

 

SECTION 6.           REMEDIAL PROVISIONS

 

6.1           Certain Matters Relating to Receivables.  (a)  If required by the Administrative Agent at any time after the occurrence and during the continuance of an Event of Default, any Receivable may be collected by or on behalf of the Administrative Agent and any payments of Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any event, within two Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the Administrative Agent if required, in a Collateral Account maintained under the sole dominion and control of the Administrative Agent, subject to withdrawal by the Administrative Agent for the account of the Lenders only as provided in Section 6.5, and (ii) until so turned over, shall be held by such Grantor in trust for the Administrative Agent and the Lenders, segregated from other funds of such Grantor.  Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit.

 

(b)           After the occurrence and during the continuation of an Event of Default, at the Administrative Agent’s request, each Grantor shall deliver to the Administrative Agent all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the Receivables, including, without limitation, all original orders, invoices and shipping receipts.

 

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6.2           Communications with Obligors; Grantors Remain Liable.  (a)  The Administrative Agent in its own name may at any time after the occurrence and during the continuance of an Event of Default communicate with obligors under the Receivables to verify with them to the Administrative Agent’s satisfaction the existence, amount and terms of any Receivables.

 

(b)           Upon the request of the Administrative Agent at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall notify obligors on the Receivables that the Receivables have been assigned to the Administrative Agent for the ratable benefit of the Secured Parties and that payments in respect thereof shall be made directly to the Administrative Agent.

 

(c)           Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each of the Receivables to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto.  Neither the Administrative Agent nor any Lender shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Administrative Agent or any Lender of any payment relating thereto, nor shall the Administrative Agent or any Lender be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

 

6.3           Pledged Stock.  (a)  If an Event of Default shall occur and be continuing and the Administrative Agent shall give notice of its intent to exercise such rights to the relevant Grantor or Grantors, (i) the Administrative Agent shall have the right to receive any and all cash dividends, payments or other Proceeds paid in respect of the Investment Property and make application thereof to the Obligations in such order as the Administrative Agent may determine, and (ii) any or all of the Investment Property shall be registered in the name of the Administrative Agent or its nominee, and the Administrative Agent or its nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to such Investment Property at any meeting of shareholders of the relevant Issuer or Issuers or otherwise and (y) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such Investment Property as if it were the absolute owner thereof (including, without limitation, the right to exchange at its discretion any and all of the Investment Property upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the corporate or other organizational structure of any Issuer, or upon the exercise by any Grantor or the Administrative Agent of any right, privilege or option pertaining to such Investment Property, and in connection therewith, the right to deposit and deliver any and all of the Investment Property with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Administrative Agent may determine), all without liability except to account for property actually received by it, but the Administrative Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing.

 

(b)           Each Grantor hereby authorizes and instructs each Issuer of any Investment Property pledged by such Grantor hereunder to (i) comply with any instruction received by it from the Administrative Agent in writing that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other payments with respect to the Investment Property directly to the Administrative Agent.

 

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6.4           Proceeds to be Turned Over To Administrative Agent.  In addition to the rights of the Administrative Agent and the Lenders specified in Section 6.1 with respect to payments of Receivables, if an Event of Default shall occur and be continuing, all Proceeds received by any Grantor consisting of cash, checks and other near-cash items shall be held by such Grantor in trust for the Administrative Agent and the Lenders, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Administrative Agent in the exact form received by such Grantor (duly indorsed by such Grantor to the Administrative Agent, if required).  All Proceeds received by the Administrative Agent hereunder shall be held by the Administrative Agent in a Collateral Account maintained under its sole dominion and control.  All Proceeds while held by the Administrative Agent in a Collateral Account (or by such Grantor in trust for the Administrative Agent and the Lenders) shall continue to be held as collateral security for all the Obligations and shall not constitute payment thereof until applied as provided in Section 6.5.

 

6.5           Application of Proceeds.  If an Event of Default shall have occurred and be continuing, at any time at the Administrative Agent’s election, the Administrative Agent may apply all or any part of Proceeds constituting Collateral, whether or not held in any Collateral Account, and any proceeds of the guarantee set forth in Section 2, in payment of the Obligations in the following order:

 

First, to pay incurred and unpaid fees and expenses of the Administrative Agent under the Loan Documents;

 

Second, to the Administrative Agent, for application by it towards payment of amounts then due and owing and remaining unpaid in respect of the Obligations, pro  rata among the Secured Parties according to the amounts of the Obligations then due and owing and remaining unpaid to the Secured Parties;

 

Third, to the Administrative Agent, for application by it towards prepayment of the Obligations, pro  rata among the Secured Parties according to the amounts of the Obligations then held by the Secured Parties; and

 

Fourth, any balance remaining after the Obligations (other than unasserted contingent indemnification obligations) shall have been paid in full, no Letters of Credit shall be outstanding (unless cash collateralized in a manner satisfactory to the Administrative Agent) and the Commitments shall have terminated shall be paid over to the Borrower or to whomsoever may be lawfully entitled to receive the same.

 

6.6           Code and Other Remedies.  If an Event of Default shall occur and be continuing, the Administrative Agent, on behalf of the Lenders, may exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured party under the New York UCC or any other applicable law.  Without limiting the generality of the foregoing, the Administrative Agent, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of the Administrative Agent or any Lender or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk.  The Administrative Agent or any Lender shall have the right upon any such public sale or sales, and, to the

 

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extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby waived and released.  Each Grantor further agrees, at the Administrative Agent’s request, to assemble the Collateral and make it available to the Administrative Agent at places which the Administrative Agent shall reasonably select, whether at such Grantor’s premises or elsewhere.  The Administrative Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.6, after deducting all reasonable costs and expenses to which it is entitled pursuant to Section 10.5 of the Credit Agreement and Section 8.4 hereof incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Administrative Agent and the Lenders hereunder, including, without limitation, reasonable attorneys’ fees and disbursements to the extent required by Section 10.5 of the Credit Agreement and Section 8.4 hereof, to the payment in whole or in part of the Obligations, in such order as the Administrative Agent may elect, and only after such application and after the payment by the Administrative Agent of any other amount required by any provision of law, including, without limitation, Section 9-615(a)(3) of the New York UCC, need the Administrative Agent account for the surplus, if any, to any Grantor.  To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against the Administrative Agent or any Lender arising out of the exercise by them of any rights hereunder.  If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least 10 days before such sale or other disposition.

 

6.7           Registration Rights.  (a)  If the Administrative Agent shall determine to exercise its right to sell any or all of the Pledged Stock pursuant to Section 6.6, and if in the opinion of the Administrative Agent it is necessary or advisable to have the Pledged Stock, or that portion thereof to be sold, registered under the provisions of the Securities Act, the relevant Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the directors and officers of such Issuer to execute and deliver, all such instruments and documents, and do or cause to be done all such other acts as may be, in the opinion of the Administrative Agent, necessary or advisable to register the Pledged Stock, or that portion thereof to be sold, under the provisions of the Securities Act, (ii) use its best efforts to cause the registration statement relating thereto to become effective and to remain effective for a period of one year from the date of the first public offering of the Pledged Stock, or that portion thereof to be sold, and (iii) make all amendments thereto and/or to the related prospectus which, in the opinion of the Administrative Agent, are necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations of the Securities and Exchange Commission applicable thereto.  Each Grantor agrees to cause such Issuer to comply with the provisions of the securities or “Blue Sky” laws of any and all jurisdictions which the Administrative Agent shall designate and to make available to its security holders, as soon as practicable, an earnings statement (which need not be audited) which will satisfy the provisions of Section 11(a) of the Securities Act.

 

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

 

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(c)           Each Grantor agrees to use its commercially reasonable efforts to do or cause to be done all such other acts as may be necessary to make such sale or sales of all or any portion of the Pledged Stock pursuant to this Section 6.7 valid and binding and in compliance with any and all other applicable Requirements of Law.  Each Grantor further agrees that a breach of any of the covenants contained in this Section 6.7 will cause irreparable injury to the Administrative Agent and the Lenders, that the Administrative Agent and the Lenders have no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 6.7 shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no Event of Default has occurred under the Credit Agreement.

 

(d)           For the avoidance of doubt, this Section 6.7 shall not apply to Pledged Stock to the extent that the Issuer thereof is not a Subsidiary of a Grantor.

 

6.8           Subordination.  Each Grantor hereby agrees that, upon the occurrence and during the continuance of an Event of Default, unless otherwise agreed by the Administrative Agent, all Indebtedness owing by it to any Subsidiary of the Borrower shall be fully subordinated to the payment in full in cash of such Grantor’s Obligations (other than unasserted contingent indemnification obligations).

 

6.9           Deficiency.  Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by the Administrative Agent or any Lender to collect such deficiency (to the extent that the Administrative Agent and the Lenders are entitled to reimbursement pursuant to Section 10.5 of the Credit Agreement and Section 8.4 hereof).

 

SECTION 7.           THE ADMINISTRATIVE AGENT

 

7.1           Administrative Agent’s Appointment as Attorney-in-Fact, etc.  (a)  Each Grantor hereby irrevocably constitutes and appoints the Administrative Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, 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 Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the Administrative Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the following:

 

(i)            in the name of such Grantor or its own name, or otherwise, take possession of and indorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Receivable or Contract or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Administrative Agent for the purpose of collecting any and all such moneys due under any Receivable or Contract or with respect to any other Collateral whenever payable;

 

(ii)           in the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as the Administrative Agent may request to evidence and perfect the Administrative Agent’s and the Lenders’ security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby;

 

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(iii)          pay or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or any insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof;

 

(iv)          execute, in connection with any sale provided for in Section 6.6 or 6.7, any indorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and

 

(v)           (1)  direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Administrative Agent or as the Administrative Agent shall direct;  (2)   ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral;  (3)   sign and indorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral;  (4) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the Administrative Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for such term or terms, on such conditions, and in such manner, as the Administrative Agent shall in its sole discretion determine; and (8) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Administrative Agent were the absolute owner thereof for all purposes, and do, at the Administrative Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and things which the Administrative Agent deems necessary to protect, preserve or realize upon the Collateral and the Administrative Agent’s and the Lenders’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might do.

 

Anything in this Section 7.1(a)  to the contrary notwithstanding, the Administrative Agent agrees that it will not exercise any rights under the power of attorney provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be continuing.

 

(b)           If any Grantor fails to perform or comply with any of its agreements contained herein, the Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement.

 

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

 

7.2           Duty of Administrative Agent.  The Administrative Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the Administrative Agent deals with similar property for its own account.  Neither the Administrative Agent, any Lender nor any of their respective officers, directors, employees or agents shall be liable 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

 

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Administrative Agent and the Lenders hereunder are solely to protect the Administrative Agent’s and the Lenders’ interests in the Collateral and shall not impose any duty upon the Administrative Agent or any Lender to exercise any such powers.  The Administrative Agent and the Lenders shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct.

 

7.3           Execution of Financing Statements.  Pursuant to any applicable law, each Grantor authorizes the Administrative Agent to file or record financing statements and other filing or recording documents or instruments with respect to the Collateral without the signature of such Grantor in such form and in such offices as the Administrative Agent determines appropriate to perfect the security interests of the Administrative Agent under this Agreement.  Each Grantor authorizes the Administrative Agent to use the collateral description “all personal property” in any such financing statements.  Each Grantor hereby ratifies and authorizes the filing by the Administrative Agent of any financing statement with respect to the Collateral made prior to the date hereof.

 

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

 

SECTION 8.           MISCELLANEOUS

 

8.1           Amendments in Writing.  None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 10.1 of the Credit Agreement.

 

8.2           Notices.  All notices, requests and demands to or upon the Administrative Agent or any Grantor hereunder shall be effected in the manner provided for in Section 10.2 of the Credit Agreement; provided that any such notice, request or demand to or upon any Guarantor shall be addressed to such Guarantor at its notice address set forth on Schedule A to the Disclosure Letter or such other address as may be notified to the Administrative Agent from time to time.

 

8.3           No Waiver by Course of Conduct; Cumulative Remedies.  Neither the Administrative Agent nor any Lender shall by any act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default.  No failure to exercise, nor any delay in exercising, on the part of the Administrative Agent or any Lender, any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by the Administrative Agent or any Lender of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Administrative Agent or such Lender would otherwise have on any future occasion.  The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

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8.4                                 Enforcement Expenses; Indemnification.  (a)  Each Guarantor agrees to pay or reimburse each Lender and the Administrative Agent for all its reasonable and (if required) documented costs and out-of-pocket expenses incurred in collecting against such Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Agreement and the other Loan Documents to which such Guarantor is a party, including, without limitation, the reasonable and documented fees and disbursements of one firm of counsel to the Lenders and the Administrative Agent, one local counsel, as necessary, in each appropriate jurisdiction and, in the case of an actual or perceived conflict of interest where the Person affected by such conflict informs such Guarantor of such conflict and thereafter retains its own counsel, of another firm of counsel for each such affected Person.

 

(b)                                 Each Guarantor agrees to pay, and to save the Administrative Agent and the Lenders harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement.

 

(c)                                  Each Guarantor agrees to pay, and to save the Administrative Agent and the Lenders harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement to the extent the Borrower would be required to do so pursuant to Section 10.5 of the Credit Agreement.

 

(d)                                 The agreements in this Section 8.4 shall survive repayment of the Obligations and all other amounts payable under the Credit Agreement and the other Loan Documents.

 

8.5                                 Successors and Assigns.  This Agreement shall be binding upon the successors and assigns of each Grantor and shall inure to the benefit of the Administrative Agent and the Lenders and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the Administrative Agent.

 

8.6                                 Set-Off.  In addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior notice to any Grantor, any such notice being expressly waived by each Grantor to the extent permitted by applicable law, upon any Obligations becoming due and payable by any Grantor (whether at the stated maturity, by acceleration or otherwise), to apply to the payment of such Obligations, by setoff or otherwise, any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender, any affiliate thereof or any of their respective branches or agencies to or for the credit or the account of such Grantor.  Each Lender agrees promptly to notify the relevant Grantor and the Administrative Agent after any such application made by such Lender, provided that the failure to give such notice shall not affect the validity of such application.

 

8.7                                 Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

8.8                                 Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating 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.

 

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8.9                                 Section Headings.  The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

 

8.10                           Integration.  This Agreement and the other Loan Documents represent the agreement of the Grantors, the Administrative Agent and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Loan Documents.

 

8.11                        GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

8.12                           Submission To Jurisdiction; Waivers.  Each party hereto hereby irrevocably and unconditionally:

 

(a)                                  submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

 

(b)                                 consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)                                  agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to a Grantor at its address referred to in Section 8.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto or to the Administrative Agent at its address referred to in Section 10.2 of the Credit Agreement;

 

(d)                                 agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

 

(e)                                  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages.

 

8.13                           Acknowledgements.  Each Grantor hereby acknowledges that:

 

(a)                                  it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it is a party;

 

(b)                                 neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to any Grantor arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Grantors, on the one hand, and the Administrative Agent and Lenders, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

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(c)                                  no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Grantors and the Lenders.

 

8.14                           Additional Grantors.  Each Subsidiary of the Borrower that is required to become a party to this Agreement pursuant to Section 6.9 of the Credit Agreement shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

 

8.15                           Releases.  (a)  At such time as the Loans, the Reimbursement Obligations and the other Obligations (other than unasserted contingent indemnification obligations and, in the absence of a Default or Event of Default, obligations under or in respect of Specified Swap Agreements or Specified Cash Management Agreements) shall have been paid in full, the Commitments have been terminated and no Letters of Credit shall be outstanding (unless they have been cash collateralized in a manner reasonably satisfactory to the Administrative Agent), the Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Administrative Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Grantors.  At the request and sole expense of any Grantor following any such termination, the Administrative Agent shall deliver to such Grantor any Collateral held by the Administrative Agent hereunder, and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

 

(b)                                 If any of the Collateral shall be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the Credit Agreement, then such Collateral shall be deemed released from the security interest granted herein, and the Administrative Agent, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other documents reasonably necessary or desirable for the release of the Liens created hereby on such Collateral.  At the request and sole expense of the Borrower, a Subsidiary Guarantor shall be released from its obligations hereunder in the event that all the Capital Stock of such Subsidiary Guarantor shall be sold, transferred or otherwise disposed of in a transaction permitted by the Credit Agreement.

 

8.16                        WAIVER OF JURY TRIAL.  EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

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IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Collateral Agreement to be duly executed and delivered as of the date first above written.

 

 

	
 
    	
ADVENT   SOFTWARE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
    /s/   James S. Cox
    
	
 
    	
 
    	
Name:   James S. Cox
    
	
 
    	
 
    	
Title:   Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HUB   DATA INCORPORATED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
    /s/   James S. Cox
    
	
 
    	
 
    	
Name:   James S. Cox
    
	
 
    	
 
    	
Title:   Chief Financial Officer, Treasurer and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BLACK   DIAMOND PERFORMANCE REPORTING, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
    /s/   James S. Cox
    
	
 
    	
 
    	
Name:   James S. Cox
    
	
 
    	
 
    	
Title:   President and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JPMORGAN   CHASE BANK, N.A.,
    
	
 
    	
As   Administrative Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
    /s/ Gerardo B. Loera
    
	
 
    	
 
    	
Name: Gerardo B. Loera
    
	
 
    	
 
    	
Title:   Authorized Officer
    

 

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Annex 1 to
 Guarantee and Collateral Agreement

 

ASSUMPTION AGREEMENT, dated as of                           , 2011, made by                                                         (the “Additional Grantor”), in favor of JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the banks and other financial institutions or entities (the “Lenders”) parties to the Credit Agreement referred to below.  All capitalized terms not defined herein shall have the meaning ascribed to them in such Credit Agreement.

 

W  I  T  N  E  S  S  E  T  H :

 

WHEREAS, Advent Software, Inc. (the “Borrower”), the Lenders and the Administrative Agent have entered into the Credit Agreement, dated as of November      , 2011 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”);

 

WHEREAS, in connection with the Credit Agreement, the Borrower and certain of its Affiliates (other than the Additional Grantor) have entered into the Guarantee and Collateral Agreement, dated as of November __, 2011 (as amended, supplemented or otherwise modified from time to time, the “Guarantee and Collateral Agreement”) in favor of the Administrative Agent for the ratable benefit of the Secured Parties;

 

WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the Guarantee and Collateral Agreement; and

 

WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Guarantee and Collateral Agreement;

 

NOW, THEREFORE, IT IS AGREED:

 

1.  Guarantee and Collateral Agreement.  By executing and delivering this Assumption Agreement, the Additional Grantor, as provided in Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor thereunder with the same force and effect as if originally named therein as a Grantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Grantor thereunder.  The information set forth in Annex 1-A hereto is hereby added to the information set forth in the Disclosure Letters.  The Additional Grantor hereby represents and warrants that each of the representations and warranties contained in Section 4 of the Guarantee and Collateral Agreement is true and correct on and as the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such date (except, to the extent such representations and warranties specifically refer to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as if made on and as of such earlier date).

 

2.  Governing Law.  THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

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IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written.

 

 

	
 
    	
[ADDITIONAL   GRANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

2

 

Annex 1-A to
 Assumption Agreement

 

Supplement to Schedule A

 

Supplement to Schedule B

 

Supplement to Schedule C

 

Supplement to Schedule D

 

Supplement to Schedule E

 

Supplement to Schedule F

 

Supplement to Schedule GExhibit 10.1

 

EXECUTION COPY

 

AMENDED AND RESTATED DEPOSIT ACCOUNT CONTROL AGREEMENT

 

(Contingency)

 

This Amended and Restated Deposit Account Control Agreement (this “Agreement”) is made and entered into as of                        , 2011 by and among U.S. Bank National Association, a national banking association, solely as trustee under the Indenture referred to below (the “Trustee”), The Bank of the West (the “Bank”), River Rock Entertainment Authority (the “Depositor”), an unincorporated governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians, a federally recognized Indian tribe (the “Tribe”), and the Tribe (solely as to its obligations under Section 11), and executed as of the Operative Date (as defined below) by Deutsche Bank Trust Company Americas, a state banking corporation duly organized and existing under the laws of the State of New York, as trustee under the New Indenture referred to below (the “New Indenture Trustee”) and Deutsche Bank Trust Company Americas, a state banking corporation duly organized and existing under the laws of the State of New York, as collateral trustee under the Collateral Trust Agreement referred to below (the “Collateral Trustee” and, together with the Trustee, the “Secured Party”).  All capitalized terms not expressly defined herein shall have the meanings ascribed to them in Annex A attached hereto, unless the context otherwise requires.

 

BACKGROUND

 

(A)  The Trustee, the Bank, the Tribe and the Depositor entered into that certain Deposit Account Control Agreement dated as of January 11, 2010 (the “Old Agreement”) in connection with the Indenture.

 

(B)  Pursuant to (i) that certain indenture, dated as of November 7, 2003 among the Depositor, the Tribe and the Trustee, as amended by the First Supplemental Indenture, dated as of the date hereof (as so amended, and as further amended, modified, restated and/or supplemented from time to time, the “Indenture”) and the Collateral Documents related thereto and (ii) that certain indenture to be dated as of the Operative Date among the Depositor, the Tribe and the New Indenture Trustee (as amended, modified, restated and/or supplemented from time to time, the “New Indenture”) and the Parity Lien Collateral Documents related thereto, Depositor has granted Secured Party security interests in the deposit accounts maintained by Bank for Depositor at Bank’s San Francisco office (“Banking Office”) as set forth on the attached Schedule A and in all checks, drafts and all funds and other instruments now in or hereafter deposited into those accounts, including any interest earned thereon (collectively, the “Control Collateral”).

 

(C) The parties are entering into this Agreement to amend and restate the Old Agreement and to perfect Secured Party’s security interests in the Control Collateral.  The parties acknowledge the following security interests: (a) with respect to the Trustee, pursuant to the Second Lien Pledge and Security Agreement and in reliance on the UCC and the Tribal UCC, to secure the payment and performance of the 9 3⁄4% Notes and certain other obligations, the Depositor has granted to the Trustee a security interest in and to the Control Collateral; and (b) with respect to the Collateral Trustee, pursuant to the Parity Lien Collateral Documents and in reliance on the UCC and the Tribal UCC, to secure the payment and performance of the Parity Lien Debt, the Depositor has granted to the Collateral Trustee a separate security interest in and to the Control Collateral.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, the parties, intending to be legally bound hereby, agree as follows:

 

 

1.             The Accounts

 

Bank represents and warrants to Secured Party that:  Bank maintains the deposit account numbers set forth next to the respective deposit accounts listed on Schedule A (the “Accounts”) and, if it is a certificate of deposit or other time deposit, any renewal thereof shall be referred to as an “Account”) for Depositor at the Banking Office; and Bank does not know of any claim to or interest in the Accounts, except for claims and interests of the parties referred to in this Agreement. Bank is a “bank,” and this Agreement constitutes an “authenticated record” within the meaning of Article 9 of the Uniform Commercial Code.  From and after the Operative Date, the Depositor shall deposit all Pledged Revenues (net of cage cash) in the Accounts.

 

2.             Control of Accounts by Secured Party; Depositor’s Rights in Accounts

 

a.  Bank will not agree with any third party that Bank will comply with instructions concerning the account originated by any party other than Depositor and Secured Party without the prior mutual written consent of Depositor and Secured Party.  So long as the Collateral Trustee is the Control Party, the Depositor hereby irrevocably instructs and authorizes the Bank within two Business Days after the Bank’s receipt of a written direction from the Collateral Trustee in the form of Exhibit A attached hereto (the “Activation Notice”) to transfer all amounts credited to the Accounts at the commencement of each Business Day thereafter to a bank and account as shall be designated by the Collateral Trustee and referred to herein as the “Waterfall Account”, by ACH transfer or by wire or electronic transfer, not later than the close of each such Business Day, all without any further consent from the Depositor or direction from the Collateral Trustee.  Any such Activation Notice shall remain in effect until the Bank has received a written direction from the Collateral Trustee in the form of (i) Exhibit B attached hereto (a “Notice of Revocation of Activation Notice”) notifying the Bank that the Collateral Trustee revokes the subject Activation Notice or (ii) Exhibit C attached hereto (a “Termination Notice”) notifying the Bank that all Parity Lien Debt has been indefeasibly paid in cash in full.  At any time following the receipt by the Bank of a Termination Notice, the Depositor hereby irrevocably instructs and authorizes the Bank within two Business Days after the Bank’s receipt of written direction from the Trustee in the form of Exhibit D attached hereto (the “Notice of Exclusive Control”) to transfer all amounts credited to the Accounts at the commencement of each Business Day thereafter to a bank and account as shall be designated by the Trustee, by ACH transfer or by wire or electronic transfer, not later than the close of each such Business Day, all without further consent from the Depositor or direction from the Collateral Trustee.

 

So long as an Activation Notice or Notice of Exclusive Control is not in effect, Bank shall comply with instructions originated by Depositor or its representatives concerning the Accounts.

 

Notwithstanding any other provision of this Agreement, the Bank shall not comply with any instruction from (a) the Trustee until receipt from the Collateral Trustee of a Termination Notice or Notice of Revocation of Activation Notice, (b) the Depositor at any time during which an Activation Notice or Notice of Exclusive Control is in effect, or (c) the Tribe under any circumstances.

 

b.  Secured Party agrees that before it attempts to give Bank any Orders concerning the Accounts, Secured Party shall deliver to the Banking Office such documentation as Bank may from time to time reasonably request to evidence the authority of those partners, officers, employees or agents whom Secured Party may designate to give Orders.

 

c.  The Accounts shall be maintained at all times until the termination of this Agreement.

 

3.             Priority of Secured Party’s Security Interest; Rights Reserved by Bank

 

a.  Bank agrees that all of its present and future rights against the Accounts are subordinate to Secured Party’s security interest therein; provided, however, that Secured Party agrees that nothing herein subordinates or waives, and that Bank expressly reserves, all of its present and future rights (whether described as rights of setoff, banker’s lien, chargeback or otherwise, and whether available to Bank under the law or under any other agreement between Bank and Depositor concerning the Accounts,

 

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(“Account Agreement”) or otherwise) with respect to: (i) items deposited to the Accounts and returned unpaid, whether for insufficient funds or for any other reason, and without regard to the timeliness of such returns or the occurrence or timeliness of any drawee’s notice of non-payment of such items; (ii) ACH entries initiated from the Accounts for which Bank is obligated; (iii) ACH entries credited to the Accounts and later reversed, whether for insufficient funds or for any other reason, and without regard to the timeliness of such entries’ reversal; (iv) claims of breach of transfer or presentment warranties under the Uniform Commercial Code, as adopted in the applicable state, made against Bank in connection with items deposited to the Accounts; (v) chargebacks to the Accounts of credit card transactions; (vi) erroneous entries to the Accounts; (vii) any item charged to the Accounts based on Bank’s obligation to indemnify a third party for a banking service to which the Accounts are tied; and (viii) Bank’s usual and customary charges for services rendered in connection with the Accounts and other banking services (“Account Fees”).  Subsections (i) through (viii) of this paragraph are hereinafter referred to collectively as “Returned Items.”

 

b.  Except as otherwise required by law, Bank will not agree with any third party that Bank will comply with Orders originated by such third party.

 

4.             Returned Item Amounts and Account Fees

 

Depositor and Control Party understand and agree that Bank will pay Returned Items by debiting the related Account.  Depositor agrees to pay the amount of any Returned Items immediately upon demand to the extent there are not sufficient funds in the Accounts to cover such amounts on the day of such debits.  Control Party shall pay to Bank, within twenty days after Bank’s demand on Control Party, the aggregate amount of Returned Items that have not been paid in full by Depositor within ten days after Bank’s demand on Depositor, but only in an amount not to exceed the amount of any funds received by Control Party from the Accounts pursuant to Orders originated by Control Party; provided,  however, that if Bank is stayed from making such demand upon Depositor as a result of a bankruptcy or similar proceeding, then Bank shall be deemed to have made such demand upon Depositor at the commencement of such proceeding.  Bank agrees that any demand upon Control Party for payment of such amount shall be made within 30 days after termination of this Agreement.

 

5.             Statements; Notices of Adverse Claims

 

Bank will send copies of all statements for the Accounts to Depositor and, upon request, to Secured Party.  Depositor and Secured Party have 30 days after receipt of a statement for the Accounts to notify Bank of any error in such statement.  Bank’s liability for any such error is limited in accordance with Section 6 hereof.  Bank may disclose to Secured Party such other information concerning the Accounts as Secured Party may from time to time request; provided, however, that Bank shall have no duty or obligation to comply with any such request or to disclose to Secured Party any information which Bank does not ordinarily make available to its depositors.  Bank will use reasonable efforts to promptly notify Secured Party and Depositor if any other person claims that it has a property interest in the Accounts.

 

6.             Bank’s Responsibility

 

a. Bank undertakes to perform only such duties as are expressly set forth herein and in any Account Agreement.  Notwithstanding any other provisions of this Agreement, the parties hereto agree that Bank shall not be liable for, and Depositor and Secured Party hereby waive any claim, loss, liability or damages incurred against Bank related to this Agreement or with respect to any action taken by Bank or any of its directors, officers, agents or employees in accordance with this Agreement or arising , including, without limitation, any action so taken at the request of the Secured Party, except for the Bank’s or such person’s own gross negligence or willful misconduct.  In no event shall the Bank be liable for losses or delays resulting from causes beyond the Bank’s reasonable control or for indirect, special or consequential damages whether any claim for such damages is based on tort or contract or whether Bank knew or should have known of the likelihood of such damages in any circumstances.

 

3

 

b.  Except for permitting a withdrawal in violation of Section 2, Bank will not be liable to Control Party for complying with Orders from Depositor that are received by Bank before Bank receives and has a reasonable opportunity to act on a contrary Order from Control Party.  In that regard, Secured Party recognizes that Depositor is not required by the Bank to maintain a positive balance in the Accounts; that Bank is under no duty to monitor the balance in the Accounts; and that any Account may close if the balance is $0.

 

c.  Bank will not be liable to Depositor for complying with Orders originated by Control Party, even if Depositor notifies Bank that Control Party is not legally entitled to issue Orders, unless Bank takes the action after it is served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order or other legal process.

 

d.  This Agreement does not create any obligation of Bank except for those expressly set forth in this Agreement.  In particular, Bank need not investigate whether the Control Party is entitled under Control Party’s agreements with Depositor to give Orders.  Bank may rely on notices and communications it believes are given by the appropriate party.

 

e.  Bank will follow its usual procedures in the event the Depositor, Secured Party, the Accounts or any check should be or become the subject of any writ, levy, order or other similar judicial or regulatory order or process (“Legal Process”), provided, however, no deposits from the Accounts may be turned over to Depositor or a third party without first having advised Secured Party of the Legal Process,  if permitted by law.  Bank will honor a Legal Process unless the Depositor and/or Secured Party obtain a release from the Legal Process or a court order binding on all parties prior to the due date of the Legal Process.  The Bank shall not be liable to either Depositor or Secured Party for honoring a Legal Process in good faith.

 

f.  Nothing in this Agreement shall impose on Bank a duty to restrict Depositor’s deposits such that Depositor is permitted to make deposits solely to the Accounts nor shall Bank have a duty to prevent Depositor from opening other deposit accounts at Bank and depositing checks or other items payable to Depositor into such accounts.  It is agreed between Depositor, Secured Party and Bank that the duties undertaken by and between Depositor and Secured Party under the lending arrangements between them, do not in any way impose a duty on Bank beyond the express duties agreed to by Bank in this Agreement.  Secured Party shall look solely to Depositor for any damages or losses to Secured Party caused by Depositor’s breach of any duties owed to Secured Party in this regard.

 

7.             Indemnity

 

a.  Depositor will indemnify Bank, its officers, directors, employees, and agents against claims, liabilities, and expenses arising out of this Agreement (including reasonable attorneys’ fees and disbursements and the reasonable estimate of the allocated costs and expenses of in-house legal counsel and staff), except to the extent the claims, liabilities, or expenses are caused by Bank’s gross negligence or willful misconduct.

 

b.  Control Party will indemnify Bank, its officers, directors, employees, and agents against claims, liabilities, and expenses (including reasonable attorneys’ fees and disbursements and the reasonable estimate of the allocated costs and expenses of in-house legal counsel and staff), arising in any manner out of Bank’s acting on Control Party’s Orders concerning the Accounts. Notwithstanding anything to the contrary contained in this Agreement, and for the avoidance of doubt, the obligation of the Control Party to indemnify or reimburse the Bank under the terms of this Agreement, shall be (i) an obligation of the Control Party, in the case of the Trustee, solely in its capacity as Trustee under the Indenture and, in the case of the Collateral Trustee, solely in its capacity as Collateral Trustee under the Collateral Trust Agreement;(ii) in the case of the Trustee, limited solely to funds available under the Indenture at any point in time and, in the case of the Collateral Trustee, limited solely to funds available under the New Indenture at any point in time; (iii) limited solely to the scope of the Control Party’s request

 

4

 

of the Bank; and (iv) not applicable in the event of negligent or intentional misconduct of the Bank. The obligation of the Trustee to indemnify, or to reimburse or pay any amounts, under the terms of this Agreement shall not be an obligation of U.S. Bank National Association in its individual or corporate capacity. The obligation of the Collateral Trustee to indemnify, or to reimburse or pay any amounts, under the terms of this Agreement shall not be an obligation of Deutsche Bank Trust Company Americas in its individual or corporate capacity. No such indemnification, reimbursement or other payment by the Control Party shall prejudice its indemnification or other rights against the Authority or the Tribe (as defined in the Indenture) as obligated issuers under the provisions of the Indenture and the New Indenture, as applicable.

 

8.             Termination; Survival

 

a.  Secured Party may terminate this Agreement by notice to the Banking Office and Depositor.  Bank may terminate this Agreement on 30 day’s notice to Secured Party and Depositor; provided however that this Agreement may be terminated immediately by notice from Bank to Secured Party and Depositor, should Secured Party fail to make any payment when due from Secured Party to Bank hereunder.

 

b.  The Control Party may terminate this Agreement by notice to the Bank after repayment in full in cash of the Indenture Debt and all Parity Lien Debt.

 

c.  Sections 4, “Returned Items Amounts and Account Fees;” 6, “Bank’s Responsibility;” and 7, “Indemnity,” will survive termination of this Agreement.

 

9.         Wire Transfers

 

If Control Party delivers to Bank Orders to do so, Bank will wire, on each business day, collected balances in the Accounts:

 

	
x As directed
    
	
 
    
	
o To:
    
	
 
    
	
                                                                        (Name   of Bank)
    
	
                                                                        (Street)
    
	
                                                                        (City,   State, Zip)
    
	
For the account of                                             (Secured   Party)
    
	
Account Number                                                                        
    
	
ABA Number                                                                      ,
    

 

or to such other financial institution or account as Control Party may hereafter instruct Bank in a writing that includes all of the identifying information set forth above.

 

Control Party and Depositor acknowledge notice that under the State of New York’s Commercial Code if a beneficiary of a wire transfer is designated by both name and account number the payment may be made according to the account number even if the name and account number are inconsistent and identify different parties.

 

Reliance on Identifying Numbers.  If Control Party indicates a name and an identifying number for the bank of the person or entity to receive funds transfers out of the Account, Control Party and Depositor understand and agree that Bank may rely on the number Control Party indicates even if that number identifies a bank different from the bank Control Party named.  If Control Party indicates a name and an account number for the person or entity to receive funds transfers out of the Account, Control Party and Depositor understand and agree that Bank may rely on the account number Control Party indicates even if that account number is not the account number for the person or entity who is to receive the transfers.  Notwithstanding the foregoing, and solely as between Depositor and Control Party, any such identification by Control Party shall not impact the application of such funds as required by the terms of the security agreement and other loan documents evidencing the Depositor’s debt to Control Party.

 

5

 

Reporting Errors in Transfers.  If Depositor learns of any error in a funds transfer or any unauthorized funds transfer, then Depositor must notify Bank as soon as possible by telephone and provide written confirmation to Bank of such telephone notice within two Business Days at the address given for Bank on the signature page of this Agreement.  In no case may such notice to Bank by Depositor be made more than fifteen (15) calendar days after Depositor learns of the erroneous or unauthorized transfer.  If a funds transfer is made in error and Bank suffers a loss because Depositor breached its agreement to notify Bank of such error within the time limits specified in this Section, then Depositor shall reimburse Bank for the loss promptly upon demand by Bank.

 

10.           Governing Law, Entire Agreement, Amendments, Severability, Other Agreements, Successors and Assigns, Notices, Counterparts

 

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.  THE DEPOSITOR, THE BANK AND THE SECURED PARTY AGREE THAT THE TRANSACTIONS UNDER THIS AGREEMENT, INCLUDING THE EXECUTION OF THIS AGREEMENT, OCCURRED OUTSIDE THE TRIBE’S RESERVATION, IN THE STATE OF NEW YORK. This Agreement, together with the Account Agreement, is the entire agreement and supersedes any prior agreements and contemporaneous oral agreements of the parties concerning its subject matter.  No amendment of, or waiver of a right under, this Agreement will be binding unless it is in writing and signed by the party to be charged.  To the extent a provision of this Agreement is unenforceable, this Agreement will be construed as if the unenforceable provision were omitted.  For so long as this Agreement remains in effect transactions involving the Accounts shall be subject, except to the extent inconsistent herewith, to the provisions of such deposit account agreements, disclosures, and fee schedules as are in effect from time to time for accounts like the Accounts.  The provisions of this Agreement shall be binding upon and inure to the benefit of Bank, Secured Party,  Depositor and the Tribe (solely with respect to Section 11) and their respective successors and assigns.  A notice or other communication to a party under this Agreement will be in writing and will be sent to the party’s address or addresses set forth below or to such other address as the party may notify the other parties and will be effective on receipt.  This Agreement may be executed in counterparts, each of which shall be an original, and all of which shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page of this Agreement by telecopier or electronic image scan transmission (e.g., a “pdf” file) shall be effective as delivery of a manually executed counterpart of the Agreement.

 

11.           Limited Waiver of Sovereign Immunity; Waiver as to Tribal Courts; Consent to Jurisdictions; Applicable Courts.

 

a. Waiver of Sovereign Immunity.  Each of the Depositor (for itself) and the Tribe (for itself and each other Tribal Party) unconditionally and irrevocably waives its or their sovereign immunity from any suit, action, proceeding or legal process of any nature, and any and all defenses based thereon, with respect to any claim, demand, dispute, action or cause of action related or incidental to this Agreement, the 9 3⁄4% Notes, the New Indenture Notes, the Collateral Documents or the Parity Lien Collateral Documents, whether now existing or hereafter arising and whether sounding in tort, contract, or otherwise (collectively “Permitted Claims”). Such unconditional and irrevocable waiver extends (i) to permit the interpretation, enforcement and the seeking of legal or equitable relief and remedies (whether through an award or granting of specific performance, injunction, mandamus, damages or otherwise) through judicial proceedings and other legal process as hereinafter provided, (ii) to permit judicial actions in any of the Applicable Courts (as defined below) to compel, enter judgment upon, enforce, modify or vacate any award or interim injunctive relief related to the arbitration proceedings described below, and (iii) to permit a judgment or order issued by an Applicable Court or arbitrator as provided hereunder to be enforced in any court of competent jurisdiction (including the Federal and State Courts in California); provided, however, such waiver shall be subject to the following limitations:  (a) no Person may seek enforcement or recover any damages as a result of such waiver against any property or rights of the Depositor or the

 

6

 

Tribe, except as against Gaming Assets (other than Excluded Assets) (as each such term is defined in the Indenture) and Gaming Assets distributed or otherwise transferred or conveyed (either directly or indirectly) to the Tribe in contravention of the Indenture, except in the case of a breach by the Tribe of its obligations under the Indenture in which it receives any payment or amount in violation of the Indenture, in which case a Person may seek enforcement against assets of the Tribe and the Depositor other than Gaming Assets, in each case other than Excluded Assets, but only to the extent of such payment or amount received by the Tribe, (b) no Person will be entitled to enforce such waiver except the Trustee, the New Indenture Trustee, the Collateral Trustee, holders of the 9 3⁄4% Notes, holders of the Parity Lien Debt, Persons entitled to be indemnified under this Agreement, and the respective successors and assigns of the Trustee, New Indenture Trustee, the Collateral Trustee and such holders and Persons (each, a “Permitted Party”); (c) no Person shall be entitled to assert a claim because of such waiver except a Permitted Claim; (d) claims permitted by such waiver may be brought only in the Applicable Courts or in arbitration proceedings as described below; and (e) all Permitted Claims shall be interpreted and subject to the internal law of the State of New York.

 

b.  Waiver of Tribal Court.  Each of the Depositor and the Tribe unconditionally and irrevocably waives the jurisdiction and right of any tribal court or forum, now or hereafter existing or created, to hear or resolve any Permitted Claim.  Each of the Depositor and the Tribe unconditionally and irrevocably waives the application of any rule or doctrine relating to the exhaustion of tribal remedies, abstention or comity that might otherwise require or permit a Permitted Claim to be heard or resolved (either initially or finally) in a tribal court or other tribal forum.

 

c.  Jurisdiction.  Each of the Depositor and the Tribe irrevocably consents to arbitration as described below and for the resolution and enforcement of Permitted Claims and actions permitted by the waivers described above, to the following courts (the “Applicable Courts”): the United States District Court for the Northern District of California or the Superior Court of the State of California located in San Francisco, California.

 

d.  Arbitration.  At the election of the Secured Party, any Permitted Claims must be resolved by binding arbitration in Los Angeles, California under the Streamlined Arbitration Rules of JAMS.  An arbitration proceeding may be commenced only by the Secured Party, or to the extent remedies may be enforced directly by a holder of 9 3⁄4% Notes or New Indenture Notes, by the holder upon the filing with JAMS of a claim (within the meaning of the JAMS Streamlined Arbitration Rules and serving a copy thereof on the Depositor.  A single arbitrator shall hear the Permitted Claim, and shall be selected in accordance with the rules of JAMS.  No person shall be eligible to serve as an arbitrator if the person is related to, affiliated with or has represented in a legal capacity any party to the arbitration proceeding or any party to this Agreement.  Any party shall be permitted to engage in any discovery permitted under the rules of JAMS.  However, all discovery shall be completed within 90 days following the initial filing of the claim.  The hearing on the arbitration must be held in the City of Los Angeles, California, and commence and be completed no more than 30 days after the close of discovery, and the arbitrator shall render an award in writing within 30 days of the completion of the hearing, which shall contain findings of facts and conclusions of law.  Any arbitrator appointed hereunder may award interim injunctive relief before the final arbitration award.  Any controversy concerning whether an issue is arbitrable shall be determined by the arbitrator.

 

e.  Service of Process.  Service of any process, summons, notice or document by mail to such party’s address set forth below shall be effective service of process for any suit, action or other proceeding brought in any proper court.

 

f.  Non-Impairment.  None of the Depositor, the Tribe nor any of their respective Affiliates will: (i) adopt, enact, promulgate or otherwise place into effect any law or legal requirement that impairs or interferes, or could impair or interfere, in any manner, with any right or remedy of another party hereunder or their successors and assigns (it being understood and agreed that any such law or legal requirement that is adopted, enacted, promulgated or otherwise placed into effect without the prior written consent of any affected party, successor or assign shall be void and of no effect); or (ii) demand, impose or receive any tax, charge, assessment, fee or other imposition or impose any regulatory or licensing requirement

 

7

 

against a party, their successors or assigns, except in connection with licensing required by the Compact entered into between the Tribe and the State of California, as amended from time to time.

 

g.  IGRA Savings Provisions.  It is not the intent of the parties hereto that this Agreement, whether considered alone, or together with any other one or more documents, constitute a management contract within the meaning of IGRA and its implementing regulations. Accordingly, to the extent any reasonable basis exists therefore, each and every provision hereof shall be interpreted in a manner that does not cause this Agreement to constitute a management contract, whether considered alone, or together with any other one or more documents.  In no event shall any provision of this Agreement be applied, or deemed in effect or enforceable, to the extent such provision allows any action or influence by the Secured Party or any other Person that constitutes management of gaming in violation of IGRA and its implementing regulations.  Notwithstanding any other provision herein, if any term or condition herein should cause this Agreement, alone, or together with any one or more other documents, to constitute a management contract within the meaning of IGRA and its implementing regulations, such provision shall be null and void without any further force and effect, with all other provisions not similarly null and void remaining in full force and effect.  This Section shall survive as an agreement separate and apart from the remainder of this Agreement in the event of any determination that any provision of this Agreement causes the Agreement to constitute a management contract within the meaning of IGRA and its implementing regulations.

 

12.           WAIVER OF JURY TRIAL.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION ARISING HEREUNDER OR IN ANY WAY CONNECTED WITH OR INCIDENTAL TO THE DEALINGS OF THE PARTIES WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACCOUNTS OR FUNDS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES TO THE WAIVER OF THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY.

 

13.           Litigation.  In the event of litigation between the parties with respect to this Agreement or to the transaction(s) contemplated herein, the prevailing party’s reasonable attorneys’ fees and expenses shall be reimbursed upon demand by the losing party.

 

14.           Management Activities Limitations. Notwithstanding any provision in this Agreement, any Collateral Document or any Parity Lien Collateral Document, or any other right to enforce the provisions of this Agreement, any Collateral Document or any Parity Lien Collateral Document, none of the Collateral Trustee, the Trustee, the holders of the 9 3⁄4% Notes, the holders of the New Indenture Notes or the holders of other Parity Lien Debt (each, a “Creditor Party”) shall engage in any of the following: planning, organizing, directing, coordinating or controlling of all or any portion of a Tribal Party’s gaming operations (collectively, “Management Activities”), including, but not limited to:

 

(a)          the training, supervision, direction, hiring, firing, retention, compensation (including benefits) of any employee (whether or not a management employee) or contractor;

 

(b)           any working or employment policies or practices;

 

(c)           the hours or days of operation;

 

(d)           any accounting systems or procedures;

 

(e)           any advertising, promotions or other marketing activities;

 

(f)            the purchase, lease, or substitution of any gaming device or related equipment or software, including player tracking equipment;

 

(g)           the vendor, type, theme, percentage of pay-out, display or placement of any gaming

 

8

 

device or equipment; or

 

(h)           budgeting, allocating, or conditioning payments of the Depositor’s operating expenses;

 

provided, however, that no Creditor Party will be in violation of the foregoing restriction as a result of any such Creditor Party:

 

(i)           enforcing (or directing the enforcement of) compliance with any term or condition in this Agreement, any other Collateral Document or any other Parity Lien Collateral Document that does not require the Tribal Party’s gaming operations to be subject to any third-party decision-making as to any Management Activities; or

 

(ii)           requiring (or directing the requirement) that all or any portion of any revenues constituting Collateral be applied to satisfy terms or conditions of this Agreement, any other Collateral Document or any other Parity Lien Collateral Document; or

 

(iii)         otherwise foreclosing (or directing the foreclosure) on all or any portion of the Collateral.

 

15.           Sole Proprietary Interest.  The parties agree that this Agreement is not intended to convey or provide in any way a proprietary interest in the Tribe’s gaming operations.

 

16.           Amendment and Restatement of the Old Agreement.  The parties agree that this Agreement hereby amends and restates the Old Agreement in its entirety.

 

17.           Operative Effect.  This Agreement shall become effective upon its execution by the Trustee, the Bank, the Depositor and the Tribe but shall not become (a) operative until the date (the “Operative Date”) the Depositor pays the consent consideration due for consents validly delivered with respect to 9 3⁄4% Notes tendered and accepted for exchange as provided for in the Offering Circular and Consent Solicitation Statement of the Depositor dated November 18, 2011 and (b) effective as to the New Indenture Trustee and Collateral Trustee until the New Indenture Trustee and Collateral Trustee execute this Agreement on the Operative Date.

 

[Signature Pages Follow]

 

9

 

IN WITNESS WHEREOF, the Bank, the Trustee, the Depositor and the Tribe have each caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written.

 

BANK OF THE WEST, as Bank

 

(BANK)

 

	
Address:
    	
180   Montgomery St; 3rd Floor
    
	
(Banking   office)
    	
San   Francisco, CA 94104
    
	
 
    	
 
    
	
Facsimile:
    	
415-399-7235
    
	
(Banking   office)
    	
 
    
	
 
    	
 
    
	
Telephone:
    	
415-399-7219
    
	
(Banking   office)
    	
 
    
	
 
    	
 
    
	
Address:
    	
1977   Saturn St.
    
	
 
    	
Monterey   Park, CA 91755
    
	
 
    	
 
    
	
Facsimile:
    	
866-239-0919
    
	
 
    	
 
    
	
Telephone:
    	
888-727-2692   ext 4498
    

 

 

	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Title:
    	
 
    	
Title:
    
	
Date:                            , 2011
    	
 
    	
Date:                         , 2011
    

 

U.S. BANK NATIONAL ASSOCIATION, as Trustee

 

(TRUSTEE)

 

	
Address:
    	
 
    	
PD   - OR - P6TD
    
	
 
    	
 
    	
555   SW Oak Street, PL-6
    
	
 
    	
 
    	
Portland,   OR 97204
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
503-275-5738
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
503-275-3006
    

 

	
By:
    	
 
    	
 
    
	
Title:   Vice President
    	
 
    
	
Date:                            , 2011
    	
 
    

 

Signature Page to Amended and Restated Deposit Account Control Agreement

 

 

RIVER ROCK ENTERTAINMENT AUTHORITY

 

(DEPOSITOR)

 

	
Address:
    	
 
    	
3250 Highway 128 East
    
	
 
    	
 
    	
Geyserville, CA 95441
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
707-735-2000
    
	
Telephone:
    	
 
    	
707-735-2000
    

 

 

	
By:
    	
 
    	
 
    
	
Name: Harvey Hopkins
    	
 
    
	
Title: Chairman
    	
 
    
	
Date:                          , 2011
    	
 
    

 

DRY CREEK RANCHERIA BAND OF POMO INDIANS

 

(TRIBE)

 

	
Address:
    	
 
    	
3250 Highway 128 East
    
	
 
    	
 
    	
Geyserville, CA 95441
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
3250 Highway 128 East
    
	
 
    	
 
    	
Geyserville, CA 95441
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
707-735-2000
    
	
Telephone:
    	
 
    	
707-735-2000
    

 

 

	
By:
    	
 
    	
 
    
	
Name: Harvey Hopkins
    	
 
    
	
Title: Chairman
    	
 
    
	
Date:                          , 2011
    	
 
    

 

Signature Page to Amended and Restated Deposit Account Control Agreement

 

 

IN WITNESS WHEREOF, the New Indenture Trustee and the Collateral Trustee have each caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the Operative Date.

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as New Indenture Trustee

 

(NEW INDENTURE TRUSTEE)

 

	
Address:
    	
 
    	
Corporate   Trust Americas 
    
	
 
    	
 
    	
MS   NYC60-2715
    
	
 
    	
 
    	
60   Wall Street, 27th Floor
    
	
 
    	
 
    	
New   York, New York 10005
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
(212)   797-8618
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
(212)   250-7848
    

 

	
By:
    	
 
    	
 
    
	
Title:
    	
 
    
	
Date:   December     , 2011
    	
 
    

 

	
By:
    	
 
    	
 
    
	
Title:
    	
 
    
	
Date:   December     , 2011
    	
 
    

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Collateral Trustee

 

(COLLATERAL TRUSTEE)

 

	
Address:
    	
 
    	
Corporate   Trust Americas 
    
	
 
    	
 
    	
MS   NYC60-2715
    
	
 
    	
 
    	
60   Wall Street, 27th Floor
    
	
 
    	
 
    	
New   York, New York 10005
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
(212)   797-8618
    
	
 
    	
 
    	
 
    
	
Telephone:
    	
 
    	
(212)   250-7848
    

 

	
By:
    	
 
    	
 
    
	
Title:
    	
 
    
	
Date:   December     , 2011
    	
 
    

 

	
By:
    	
 
    	
 
    
	
Title:
    	
 
    
	
Date:   December     , 2011
    	
 
    

 

Signature Page to Amended and Restated Deposit Account Control Agreement

 

 

ANNEX A

 

“Board of Directors” means:

 

(1)  with respect to a corporation, the board of directors of the corporation;

 

(2)  with respect to a partnership, the managing partner or partners of the partnership and, if a managing partner is a corporation, the board of directors of such corporation;

 

(3)  with respect to the Depositor, its board of directors;

 

(4)  with respect to the Tribe, its board of directors; and

 

(5)  with respect to any other Person, the board or committee of such Person serving a similar function.

 

“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in San Francisco, California are authorized by law, regulation or executive order to remain closed.

 

“Collateral Documents” has the meaning ascribed thereto in the Indenture.

 

“Collateral Trust Agreement” has the meaning ascribed thereto in the New Indenture.

 

“Collateral” means, at any time of determination, all property of the Depositor and the Tribe in which each of the Collateral Trustee and the Trustee has, pursuant to the Collateral Documents and the Parity Lien Collateral Documents, respectively, a Lien.

 

“Control Party” means (x) for so long as any Parity Lien Debt is outstanding, at any time, the Collateral Trustee and (y) only at such time as no Parity Lien Debt is outstanding, the Trustee.

 

“Excluded Assets” has the meaning ascribed thereto in the New Indenture.

 

“IGRA” means the Indian Gaming Regulatory Act of 1988, PL 100-497, 25 U.S.C, §2701 et seq., as the same may from time to time be amended.

 

“Indenture Debt” means the 9 3⁄4% Notes and all Obligations (as defined in the Indenture) of the Depositor thereunder, under the Indenture and under the Collateral Documents (as defined in the Indenture).

 

“New Indenture Notes” means the Depositor’s up to $200,000,000 aggregate principal amount of 9% Series A Senior Notes due 2018 and 7 1⁄2% Series B Tax-Exempt Senior Notes due 2018, issued pursuant to the New Indenture.

 

“9 3⁄4% Notes” means the Depositor’s 9 3⁄4% Senior Notes due 2011 issued pursuant to the Indenture.

 

“Orders” mean written instructions originated by the Control Party or the Control Party’s representatives concerning the Accounts.

 

“Parity Lien Collateral Documents” has the meaning ascribed thereto in the New Indenture.

 

“Parity Lien Debt” has the meaning ascribed thereto in the New Indenture.

 

“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity, including the Depositor and the Tribe.

 

Signature Page to Amended and Restated Deposit Account Control Agreement

 

 

“Second Lien Pledge and Security Agreement” means the Pledge and Security Agreement dated as November 7, 2003, among the Trustee, the Depositor and the Tribe, as amended by Amendment No. 1 to Pledge and Security Agreement dated as of the date hereof.

 

“Tribal Party” means the Tribe, the Depositor and any other committee, commission, department, board, instrumentality or political subdivision of the Tribe or the Depositor or other entity wholly-owned or directly or indirectly controlled by the Tribal Council of the Tribe, the Board of Directors of the Tribe or the Board of Directors of the Depositor; provided that the Tribal Gaming Agency shall not be deemed a “Tribal Party” for any purpose hereunder.

 

“Tribal UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect pursuant to the Dry Creek Governmental Secured Transactions Ordinance adopted by the Tribe on October 25, 2003, as Ordinance No. 03-10-25-004.

 

“UCC” means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of New York; provided, that to the extent that the Code is used to define any term herein and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, the Trustee’s or Collateral Trustee’s lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York (including without limitation the Tribal UCC), the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.

 

 

EXHIBIT A

 

[Letterhead of Collateral Trustee]

 

ACTIVATION NOTICE

 

The Bank of the West

180 Montgomery St; 3rd Floor

San Francisco, CA 94104

 

Re:

 

Ladies and Gentleman:

 

Reference is made to that certain Amended and Restated Deposit Account Control Agreement dated as of                        , 2011 (as further amended, supplemented, amended and restated or otherwise modified from time to time, the “Agreement”) by and among U.S. Bank National Association, as Trustee, River Rock Entertainment Authority, an unincorporated governmental instrumentally of the Dry Creek Rancheria Band of Pomo Indians, a federally recognized Indian tribe (the “Tribe”), the Tribe, you, Deutsche Bank Trust Company Americas, as New Indenture Trustee, and us.  All capitalized terms used but not defined herein are used with the meanings given such terms in the Agreement.  In accordance with Section 2 of the Agreement, this letter constitutes an Activation Notice in respect of the Accounts.  You are hereby instructed not to accept direction, instructions or entitlement orders with respect to the Accounts from any person other than the undersigned.  We hereby instruct you to transfer funds to the following account:

 

[Bank Name:                                 

ABA No.:                                 

Account Name:                                 

Account No.:                                  ](1)

 

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas, as Collateral Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(1)  Insert account details for “Waterfall Account” established under the Waterfall Agreement.

 

 

EXHIBIT B

 

[Letterhead of Collateral Trustee]

 

NOTICE OF REVOCATION OF ACTIVATION NOTICE

 

To:

 

The Bank of the West

180 Montgomery St; 3rd Floor

San Francisco, CA 94104

 

Re:

 

Ladies and Gentleman:

 

Reference is made to that certain Amended and Restated Deposit Account Control Agreement dated as of                        , 2011 (as further amended, supplemented, amended and restated or otherwise modified from time to time, the “Agreement”) by and among U.S. Bank National Association, as Trustee, River Rock Entertainment Authority, an unincorporated governmental instrumentally of the Dry Creek Rancheria Bank of Pomo Indians, a federally recognized Indian tribe (the “Tribe”), the Tribe, you, Deutsche Bank Trust Company Americas, as New Indenture Trustee, and us.  All capitalized terms used but not defined herein are used with the meanings given such terms in the Agreement.

 

This Notice of Revocation of Activation Notice is delivered to you pursuant to Section 2 of the Agreement.  The undersigned, an authorized signatory of the Collateral Trustee, hereby notifies you that the Activation Notice in effect as of                   , 20       is no longer in effect.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas, as Collateral Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

EXHIBIT C

 

[Letterhead of Collateral Trustee]

 

TERMINATION NOTICE

 

The Bank of the West

180 Montgomery St; 3rd Floor

San Francisco, CA 94104

 

Re:

 

Ladies and Gentleman:

 

Reference is made to that certain Amended and Restated Deposit Account Control Agreement dated as of                        , 2011 (as further amended, supplemented, amended and restated or otherwise modified from time to time, the “Agreement”) by and among U.S. Bank National Association, as Trustee, River Rock Entertainment Authority an unincorporated governmental instrumentally of the Dry Creek Rancheria Bank of Pomo Indians, a federally recognized Indian tribe (the “Tribe”), the Tribe, you, Deutsche Bank Trust Company Americas, as New Indenture Trustee, and us.  All capitalized terms used but not defined herein are used with the meanings given such terms in the Agreement.  You are hereby notified that all Parity Lien Debt has been indefeasibly paid in cash in full, the Agreement is hereby terminated with respect to the undersigned, and you have no further obligations to the undersigned thereunder.  This notice terminates any obligations you may have to the undersigned with respect to the Control Collateral; however, nothing contained in this notice shall alter any obligations that you may otherwise owe to the Tribe, the Depositor or any other parties to the Agreement.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas, as Collateral Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

EXHIBIT D

 

FORM OF NOTICE OF EXCLUSIVE CONTROL

 

                  , 20    

 

The Bank of the West

180 Montgomery St; 3rd Floor

San Francisco, CA 94104

 

RE:                              Notice of Exclusive Control

 

Ladies and Gentlemen:

 

Reference is made to that certain Amended and Restated Deposit Account Control Agreement dated as of                        , 2011 (as further amended, supplemented, amended and restated or otherwise modified from time to time, the “Agreement”) by and among River Rock Entertainment Authority an unincorporated governmental instrumentally of the Dry Creek Rancheria Bank of Pomo Indians, a federally recognized Indian tribe (the “Tribe”), the Tribe, you, Deutsche Bank Trust Company Americas, as New Indenture Trustee and Collateral Trustee, and us.  All capitalized terms used but not defined herein are used with the meanings given such terms in the Agreement.

 

This Notice of Exclusive Control is delivered to you pursuant to Section 2 of the Agreement.  The undersigned, an authorized signatory of the Control Party, hereby notifies you that only the undersigned Control Party shall be entitled to withdraw funds from the Accounts, to give at any time the Bank instructions as to the withdrawal or disposition of any funds from time to time credited to the Accounts, or as to any other matters relating to the Accounts or any other Control Collateral, without further consent from the Depositor.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
U.S.   Bank National Association, as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:

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