Document:

Exhibit 10.2

 

PLEDGE AGREEMENT

 

among

 

GLOBAL CASH ACCESS, INC.,

 

GLOBAL CASH ACCESS HOLDINGS, INC.,

 

CERTAIN SUBSIDIARIES OF GLOBAL CASH ACCESS HOLDINGS, INC.,

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as COLLATERAL AGENT

 

Dated as of March 1, 2011

 

 

PLEDGE AGREEMENT

 

PLEDGE AGREEMENT (as amended, modified, restated and/or supplemented from time to time, this “Agreement”), dated as of March 1, 2011, among each of the undersigned pledgors (each, a “Pledgor” and, together with any other entity that becomes a pledgor hereunder pursuant to Section 30 hereof, the “Pledgors”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, as collateral agent (together with any successor collateral agent, the “Pledgee”), for the benefit of the Secured Creditors (as defined below).  Except as otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used herein as therein defined.

 

W  I  T  N  E  S  S  E  T  H :

 

WHEREAS, Global Cash Access Holdings, Inc. (“Holdings”), Global Cash Access, Inc. (the “Borrower”), the lenders from time to time party thereto (the “Lenders”), and Deutsche Bank Trust Company Americas, as administrative agent (together with any successor administrative agent, the “Administrative Agent”), have entered into a Credit Agreement, dated as of March 1, 2011 (as amended, modified, restated and/or supplemented from time to time, the “Credit Agreement”), providing for the making of Loans to, and the issuance of, and participation in, Letters of Credit for the account of the Borrower, all as contemplated therein (the Lenders, each Issuing Lender, the Administrative Agent, the Collateral Agent, each other Agent and the Pledgee are herein called the “Lender Creditors”);

 

WHEREAS, the Borrower and/or one or more other Credit Parties may at any time and from time to time enter into one or more Interest Rate Protection Agreements with one or more Lenders or any affiliate thereof (each such Lender or affiliate, even if the respective Lender subsequently ceases to be a Lender under the Credit Agreement for any reason, together with such Lender’s or affiliate’s successors and assigns, if any, collectively, the “Other Creditors” and, together with the Lender Creditors, the “Secured Creditors”, with each such Interest Rate Protection Agreement with an Other Creditor being herein called a “Secured Hedging Agreement”);

 

WHEREAS, pursuant to the Holdings Guaranty, Holdings has guaranteed to the Secured Creditors the payment when due of all Guaranteed Obligations as described therein;

 

WHEREAS, pursuant to the Subsidiaries Guaranty, each Subsidiary Guarantor has jointly and severally guaranteed to the Secured Creditors the payment when due of all Guaranteed Obligations as described therein;

 

WHEREAS, it is a condition precedent to the making of Loans to the Borrower and the issuance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and to the Other Creditors entering into Secured Hedging Agreements that each Pledgor shall have executed and delivered to the Pledgee this Agreement; and

 

WHEREAS, each Pledgor will obtain benefits from the incurrence of Loans by the Borrower and the issuance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and the entering into by the Borrower and/or one or more other Credit Parties of Secured Hedging Agreements and, accordingly, desires to execute this Agreement in order to satisfy the condition described in the preceding paragraph and to induce the Lenders to make Loans to the Borrower and issue, and/or participate in, Letters of Credit for the account of the Borrower and the Other Creditors to enter into Secured Hedging Agreements with the Borrower and/or one or more other Credit Parties;

 

NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each Pledgor, the receipt and sufficiency of which are hereby acknowledged, each Pledgor hereby makes the following representations and warranties to the Pledgee for the benefit of the Secured Creditors and hereby covenants and agrees with the Pledgee for the benefit of the Secured Creditors as follows:

 

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SECURITY FOR OBLIGATIONS.  This Agreement is made by each Pledgor for the benefit of the Secured Creditors to secure:

 

the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations, liabilities and indebtedness (including, without limitation, principal, premium, interest (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding of any Pledgor or any Subsidiary thereof at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding), reimbursement obligations under Letters of Credit, fees, costs and indemnities) of such Pledgor owing to the Lender Creditors, whether now existing or hereafter incurred under, arising out of, or in connection with, each Credit Document to which such Pledgor is a party (including, in the case of each Pledgor that is a Guarantor, all such obligations, liabilities and indebtedness of such Pledgor under its Guaranty) and the due performance and compliance by such Pledgor with all of the terms, conditions and agreements contained in each such Credit Document (all such obligations, liabilities and indebtedness under this clause (i), except to the extent consisting of obligations, liabilities or indebtedness with respect to the Secured Hedging Agreements being herein collectively called the “Credit Document Obligations”);

 

the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations, liabilities and indebtedness (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding of any Pledgor at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding) owing by such Pledgor to the Other Creditors now existing or hereafter incurred under, arising out of or in connection with each Secured Hedging Agreement, whether such Secured Hedging Agreement is now in existence or hereinafter arising (including, in the case of a Pledgor that is a Guarantor, all obligations, liabilities and indebtedness of such Pledgor under its Guaranty in respect of each Secured Hedging Agreements), and the due performance and compliance by such Pledgor with all of the terms, conditions and agreements contained in each Secured Hedging Agreement (all such obligations, liabilities and indebtedness under this clause (ii) being herein collectively called the “Other Obligations”);

 

any and all sums advanced by the Pledgee in order to preserve the Collateral (as hereinafter defined) or preserve its security interest in the Collateral;

 

in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of such Pledgor referred to in clauses (i) and (ii) above, after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on the Collateral, or of any exercise by the Pledgee of its rights hereunder, together with reasonable attorneys’ fees and court costs;

 

all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement under Section 11 of this Agreement; and

 

all amounts owing to any Agent pursuant to any of the Credit Documents in its capacity as such;

 

all such obligations, liabilities, indebtedness, sums and expenses set forth in clauses (i) through (vi) of this Section 1 being herein collectively called the “Obligations”, it being acknowledged and agreed that the “Obligations” shall include extensions of credit of the types described above, whether outstanding on the date of this Agreement or extended from time to time after the date of this Agreement.

 

DEFINITIONS.  1.  Unless otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement shall be used herein as therein defined.  Reference to singular terms shall include the plural and vice versa.

 

The following capitalized terms used herein shall have the definitions specified below:

 

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“Administrative Agent” shall have the meaning set forth in the recitals hereto.

 

“Adverse Claim” shall have the meaning given such term in Section 8-102(a)(1) of the UCC.

 

“Agreement” shall have the meaning set forth in the first paragraph hereof.

 

“Borrower” shall have the meaning set forth in the recitals hereto.

 

“Certificated Security” shall have the meaning given such term in Section 8-102(a)(4) of the UCC.

 

“Clearing Corporation” shall have the meaning given such term in Section 8-102(a)(5) of the UCC.

 

“Collateral” shall have the meaning set forth in Section 3.1 hereof.

 

“Collateral Accounts” shall mean any and all accounts established and maintained by the Pledgee in the name of any Pledgor to which Collateral may be credited.

 

“Credit Agreement” shall have the meaning set forth in the recitals hereto.

 

“Credit Document Obligations” shall have the meaning set forth in Section 1(i) hereof.

 

“Domestic Corporation” shall have the meaning set forth in the definition of “Stock.”

 

“Event of Default” shall mean any Event of Default under, and as defined in, the Credit Agreement and shall in any event include, without limitation, any payment default on any of the Obligations after the expiration of any applicable grace period.

 

“Exempted Foreign Entity” shall mean any Foreign Corporation and any limited liability company organized under the laws of a jurisdiction other than the United States or any State or Territory thereof that, in any such case, is treated as a corporation or an association taxable as a corporation for U.S. federal income tax purposes.

 

“Financial Asset” shall have the meaning given such term in Section 8-102(a)(9) of the UCC.

 

“Foreign Corporation” shall have the meaning set forth in the definition of “Stock”.

 

“Holdings” shall have the meaning set forth in the recitals hereto.

 

“Indemnitees” shall have the meaning set forth in Section 11 hereof.

 

“Instrument” shall have the meaning given such term in Section 9-102(a)(47) of the UCC.

 

“Investment Property” shall have the meaning given such term in Section 9-102(a)(49) of the UCC.

 

“Lender Creditors” shall have the meaning set forth in the recitals hereto.

 

“Lenders” shall have the meaning set forth in the recitals hereto.

 

“Limited Liability Company Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all limited liability company capital and interest in other limited liability companies), at any time owned by any Pledgor or represented by any Limited Liability Company Interest.

 

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

 

“Location” of any Pledgor has the meaning given such term in Section 9-307 of the UCC.

 

“Non-Voting Equity Interests” shall mean all Equity Interests of any Person which are not Voting Equity Interests.

 

“Notes” shall mean (x) all intercompany notes at any time issued to a Pledgor and (y) all other promissory notes from time to time issued to, or held by, a Pledgor.

 

“Obligations” shall have the meaning set forth in Section 1 hereof.

 

“Other Creditors” shall have the meaning set forth in the recitals hereto.

 

“Other Obligations” shall have the meaning set forth in Section 1(ii) hereof.

 

“Partnership Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all partnership capital and interest in other partnerships), at any time owned by any Pledgor or represented by any Partnership Interest.

 

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

 

“Pledged Notes” shall mean all Notes at any time pledged or required to be pledged hereunder.

 

“Pledgee” shall have the meaning set forth in the first paragraph hereof.

 

“Pledgor” shall have the meaning set forth in the first paragraph hereof.

 

“Proceeds” shall have the meaning given such term in Section 9-102(a)(64) of the UCC.

 

“Registered Organization” shall have the meaning given such term in Section 9-102(a)(70) of the UCC.

 

“Required Secured Creditors” shall have the meaning provided in the Security Agreement.

 

“Secured Creditors” shall have the meaning set forth in the recitals hereto.

 

“Secured Debt Agreements” shall mean and includes (x) this Agreement, (y) the other Credit Documents and (z) the Secured Hedging Agreements.

 

“Secured Hedging Agreements” shall have the meaning set forth in the recitals hereto.

 

“Securities Account” shall have the meaning given such term in Section 8-501(a) of the UCC.

 

“Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

“Securities Intermediary” shall have the meaning given such term in Section 8-102(14) of the UCC.

 

“Security” and “Securities” shall have the meaning given such term in Section 8-102(a)(15) of the UCC and shall in any event also include all Stock and all Notes.

 

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“Security Entitlement” shall have the meaning given such term in Section 8-102(a)(17) of the UCC.

 

“Specified Default” shall have the meaning set forth in Section 5 hereof.

 

“Stock” shall mean (x) with respect to corporations incorporated under the laws of the United States or any State or territory thereof or the District of Columbia (each, a “Domestic Corporation”), all of the issued and outstanding shares of capital stock of any Domestic Corporation at any time owned by any Pledgor and (y) with respect to corporations not Domestic Corporations (each, a “Foreign Corporation”), all of the issued and outstanding shares of capital stock of any Foreign Corporation at any time owned by any Pledgor.

 

“Termination Date” shall have the meaning set forth in Section 20 hereof.

 

“Transmitting Utility” has the meaning given such term in Section 9-102(a)(80) of the UCC.

 

“UCC” shall mean the Uniform Commercial Code as in effect in the State of New York from time to time; provided that all references herein to specific Sections or subsections of the UCC are references to such Sections or subsections, as the case may be, of the Uniform Commercial Code as in effect in the State of New York on the date hereof.

 

“Uncertificated Security” shall have the meaning given such term in Section 8-102(a)(18) of the UCC.

 

“Voting Equity Interests” of any Person shall mean all classes of Equity Interests of such Person entitled to vote.

 

PLEDGE OF SECURITIES, ETC.

 

Pledge.  To secure the Obligations now or hereafter owed or to be performed by such Pledgor, each Pledgor does hereby grant, pledge and assign to the Pledgee for the benefit of the Secured Creditors, and does hereby create a continuing security interest (subject to those Liens permitted to exist with respect to the Collateral pursuant to the terms of all Secured Debt Agreements then in effect) in favor of the Pledgee for the benefit of the Secured Creditors in, all of its right, title and interest in and to the following, whether now existing or hereafter from time to time acquired (collectively, the “Collateral”):

 

each of the Collateral Accounts (to the extent a security interest therein is not created pursuant to the Security Agreement), including any and all assets of whatever type or kind deposited by such Pledgor in any such Collateral Account, whether now owned or hereafter acquired, existing or arising, including, without limitation, all Financial Assets, Investment Property, monies, checks, drafts, Instruments, Securities or interests therein of any type or nature deposited or required by the Credit Agreement or any other Secured Debt Agreement to be deposited in such Collateral Account, and all investments and all certificates and other Instruments (including depository receipts, if any) from time to time representing or evidencing the same, and all dividends, interest, distributions, cash and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing;

 

all Securities owned or held by such Pledgor from time to time and all options and warrants owned by such Pledgor from time to time to purchase Securities;

 

all Limited Liability Company Interests owned by such Pledgor from time to time and all of its right, title and interest in each limited liability company to which each such Limited Liability Company Interest relates, whether now existing or hereafter acquired, including, without limitation, to the fullest extent permitted under the terms and provisions of the documents and agreements governing such Limited Liability Company Interests and applicable law:

 

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all its capital therein and its interest in all profits, income, surpluses, losses, Limited Liability Company Assets and other distributions to which such Pledgor shall at any time be entitled in respect of such Limited Liability Company Interests;

 

all other payments due or to become due to such Pledgor in respect of Limited Liability Company Interests, whether under any limited liability company agreement or otherwise, whether as contractual obligations, damages, insurance proceeds or otherwise;

 

all of its claims, rights, powers, privileges, authority, options, security interests, liens and remedies, if any, under any limited liability company agreement or operating agreement, or at law or otherwise in respect of such Limited Liability Company Interests;

 

all present and future claims, if any, of such Pledgor against any such limited liability company in connection with such Limited Liability Company Interests for monies loaned or advanced, for services rendered or otherwise;

 

all of such Pledgor’s rights under any limited liability company agreement or operating agreement or at law to exercise and enforce every right, power, remedy, authority, option and privilege of such Pledgor relating to such Limited Liability Company Interests, including any power to terminate, cancel or modify any such limited liability company agreement or operating agreement, to execute any instruments and to take any and all other action on behalf of and in the name of any of such Pledgor in respect of such Limited Liability Company Interests and any such limited liability company, to make determinations, to exercise any election (including, but not limited to, election of remedies) or option or to give or receive any notice, consent, amendment, waiver or approval, together with full power and authority to demand, receive, enforce, collect or receipt for any of the foregoing or for any Limited Liability Company Asset, to enforce or execute any checks, or other instruments or orders, to file any claims and to take any action in connection with any of the foregoing; and

 

all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof;

 

all Partnership Interests owned by such Pledgor from time to time and all of its right, title and interest in each partnership to which each such Partnership Interest relates, whether now existing or hereafter acquired, including, without limitation, to the fullest extent permitted under the terms and provisions of the documents and agreements governing such Partnership Interests and applicable law:

 

all its capital therein and its interest in all profits, income, surpluses, losses, Partnership Assets and other distributions to which such Pledgor shall at any time be entitled in respect of such Partnership Interests;

 

all other payments due or to become due to such Pledgor in respect of Partnership Interests, whether under any partnership agreement or otherwise, whether as contractual obligations, damages, insurance proceeds or otherwise;

 

all of its claims, rights, powers, privileges, authority, options, security interests, liens and remedies, if any, under any partnership agreement or operating agreement, or at law or otherwise in respect of such Partnership Interests;

 

all present and future claims, if any, of such Pledgor against any such partnership in connection with such Partnership Interests for monies loaned or advanced, for services rendered or otherwise;

 

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all of such Pledgor’s rights under any partnership agreement or operating agreement or at law to exercise and enforce every right, power, remedy, authority, option and privilege of such Pledgor relating to such Partnership Interests, including any power to terminate, cancel or modify any partnership agreement or operating agreement, to execute any instruments and to take any and all other action on behalf of and in the name of such Pledgor in respect of such Partnership Interests and any such partnership, to make determinations, to exercise any election (including, but not limited to, election of remedies) or option or to give or receive any notice, consent, amendment, waiver or approval, together with full power and authority to demand, receive, enforce, collect or receipt for any of the foregoing or for any Partnership Asset, to enforce or execute any checks, or other instruments or orders, to file any claims and to take any action in connection with any of the foregoing; and

 

all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof;

 

all Financial Assets and Investment Property owned by such Pledgor from time to time;

 

all Security Entitlements owned by such Pledgor from time to time in any and all of the foregoing; and

 

all Proceeds of any and all of the foregoing;

 

provided that (x) no Pledgor shall be required at any time to pledge hereunder more than 65% of the total combined voting power of all classes of Voting Equity Interests of any Exempted Foreign Entity, (y) each Pledgor shall be required to pledge hereunder 100% of the Non-Voting Equity Interests of each Exempted Foreign Entity at any time and from time to time acquired by such Pledgor, which Non-Voting Equity Interests shall not be subject to the limitations described in preceding clause (x) and (z) no Pledgor shall be required to pledge the Equity Interests of Western Money Systems until such Equity Interests are required to be pledged pursuant to Section 13.20 of the Credit Agreement.

 

Procedures.  (a)  To the extent that any Pledgor at any time or from time to time owns, acquires or obtains any right, title or interest in any Collateral, such Collateral shall automatically (and without the taking of any action by such Pledgor) be pledged pursuant to Section 3.1 of this Agreement and, in addition thereto, such Pledgor shall (to the extent provided below) take the following actions as set forth below (as promptly as practicable and, in any event, within 30 days after it obtains such Collateral) for the benefit of the Pledgee and the other Secured Creditors:

 

with respect to a Certificated Security (other than a Certificated Security credited on the books of a Clearing Corporation or Securities Intermediary), such Pledgor shall physically deliver such Certificated Security to the Pledgee, endorsed to the Pledgee or endorsed in blank;

 

with respect to an Uncertificated Security (other than an Uncertificated Security credited on the books of a Clearing Corporation or Securities Intermediary), such Pledgor shall cause the issuer of such Uncertificated Security to duly authorize, execute, and deliver to the Pledgee, an agreement for the benefit of the Pledgee and the other Secured Creditors substantially in the form of Annex H hereto (appropriately completed to the satisfaction of the Pledgee and with such modifications, if any, as shall be satisfactory to the Pledgee) pursuant to which such issuer agrees to comply with any and all instructions originated by the Pledgee without further consent by the registered owner and not to comply with instructions regarding such Uncertificated Security (and any Partnership Interests and Limited Liability Company Interests issued by such issuer) originated by any other Person other than a court of competent jurisdiction;

 

with respect to a Certificated Security, Uncertificated Security, Partnership Interest or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary

 

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(including a Federal Reserve Bank, Participants Trust Company or The Depository Trust Company), such Pledgor shall promptly notify the Pledgee thereof and shall promptly take (x) all actions required (i) to comply with the applicable rules of such Clearing Corporation or Securities Intermediary and (ii) to perfect the security interest of the Pledgee under applicable law (including, in any event, under Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC) and (y) such other actions as the Pledgee deems necessary or desirable to effect the foregoing;

 

with respect to a Partnership Interest or a Limited Liability Company Interest (other than a Partnership Interest or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary), (1) if such Partnership Interest or Limited Liability Company Interest is represented by a certificate and is a Security for purposes of the UCC, the procedure set forth in Section 3.2(a)(i) hereof, and (2) if such Partnership Interest or Limited Liability Company Interest is not represented by a certificate or is not a Security for purposes of the UCC, the procedure set forth in Section 3.2(a)(ii) hereof;

 

with respect to any Note, physical delivery of such Note to the Pledgee, endorsed in blank, or, at the request of the Pledgee, endorsed to the Pledgee; and

 

with respect to cash proceeds from any of the Collateral described in Section 3.1 hereof, (i) establishment by the Pledgee of a cash account in the name of such Pledgor over which the Pledgee shall have “control” within the meaning of the UCC and at any time an Event of Default has occurred and is continuing no withdrawals or transfers may be made therefrom by any Person except with the prior written consent of the Pledgee and (ii) deposit of such cash in such cash account.

 

(b)   In addition to the actions required to be taken pursuant to Section 3.2(a) hereof, each Pledgor shall take the following additional actions with respect to the Collateral:

 

with respect to all Collateral of such Pledgor whereby or with respect to which the Pledgee may obtain “control” thereof within the meaning of Section 8-106 of the UCC (or under any provision of the UCC as same may be amended or supplemented from time to time, or under the laws of any relevant State other than the State of New York), such Pledgor shall take all actions as may be requested from time to time by the Pledgee so that “control” of such Collateral is obtained and at all times held by the Pledgee; and

 

each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the various relevant States, covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Pledgee), to be filed in the relevant filing offices so that at all times the Pledgee’s security interest in all Investment Property and other Collateral which can be perfected by the filing of such financing statements (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant States, including, without limitation, Section 9-312(a) of the UCC) is so perfected.

 

Subsequently Acquired Collateral.  If any Pledgor shall acquire (by purchase, stock dividend, distribution or otherwise) any additional Collateral at any time or from time to time after the date hereof, (i) such Collateral shall automatically (and without any further action being required to be taken) be subject to the pledge and security interests created pursuant to Section 3.1 hereof and, furthermore, such Pledgor will thereafter take (or cause to be taken) all action (as promptly as practicable and, in any event, within 30 days after it obtains such Collateral) with respect to such Collateral in accordance with the procedures set forth in Section 3.2 hereof, and will promptly thereafter deliver to the Pledgee (i) a certificate executed by an authorized officer of such Pledgor describing such Collateral and certifying that the same has been duly pledged in favor of the Pledgee (for the benefit of the Secured Creditors) hereunder and (ii) supplements to Annexes A through G hereto as are necessary to cause such Annexes to be complete and accurate at such time.  Without limiting the foregoing, each Pledgor shall be required to pledge hereunder the Equity Interests of any Exempted Foreign Entity at any time and from time to time after the date hereof acquired by such Pledgor, provided that (x) no Pledgor shall be required at any time to pledge hereunder more than 65% of the total combined voting power of all classes of Voting Equity Interests of any

 

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Exempted Foreign Entity and (y) each Pledgor shall be required to pledge hereunder 100% of the Non-Voting Equity Interests of each Exempted Foreign Entity at any time and from time to time acquired by such Pledgor.

 

Transfer Taxes.  Each pledge of Collateral under Section 3.1 or Section 3.3 hereof shall be accompanied by any transfer tax stamps required in connection with the pledge of such Collateral.

 

Certain Representations and Warranties Regarding the Collateral.  Each Pledgor represents and warrants that on the date hereof: (i) each Subsidiary of such Pledgor, and the direct ownership thereof, is listed in Annex B hereto; (ii) the Stock (and any warrants or options to purchase Stock) held by such Pledgor consists of the number and type of shares of the stock (or warrants or options to purchase any stock) of the corporations as described in Annex C hereto; (iii) such Stock referenced in clause (ii) of this paragraph constitutes that percentage of the issued and outstanding capital stock of the issuing corporation as is set forth in Annex C hereto; (iv) the Notes held by such Pledgor consist of the promissory notes described in Annex D hereto where such Pledgor is listed as the lender; (v) the Limited Liability Company Interests held by such Pledgor consist of the number and type of interests of the Persons described in Annex E hereto; (vi) each such Limited Liability Company Interest referenced in clause (v) of this paragraph constitutes that percentage of the issued and outstanding equity interest of the issuing Person as set forth in Annex E hereto; (vii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the Persons described in Annex F hereto; (viii) each such Partnership Interest referenced in clause (viii) of this paragraph constitutes that percentage or portion of the entire partnership interest of the Partnership as set forth in Annex F hereto; (ix) the exact address of each chief executive office of such Pledgor is listed on Annex G hereto; (x) the Pledgor has complied with the respective procedure set forth in Section 3.2(a) hereof with respect to each item of Collateral described in Annexes C through F hereto; and (xi) on the date hereof, such Pledgor owns no other Securities, Stock, Notes, Limited Liability Company Interests or Partnership Interests.

 

APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC.  The Pledgee shall have the right to appoint one or more sub-agents for the purpose of retaining physical possession of the Collateral, which may be held, in the discretion of the Pledgee after the occurrence and during the continuance of an Event of Default, in the name of the relevant Pledgor, endorsed or assigned in blank or in favor of the Pledgee or any nominee or nominees of the Pledgee or a sub-agent appointed by the Pledgee.

 

VOTING, ETC., WHILE NO EVENT OF DEFAULT OR SPECIFIED DEFAULT.  Unless and until there shall have occurred and be continuing an Event of Default under the Credit Agreement or a Default under Section 11.01 or 11.05 of the Credit Agreement (each such Default, a “Specified Default”), each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral owned by it, and to give consents, waivers or ratifications in respect thereof; provided that, in each case, no vote shall be cast or any consent, waiver or ratification given or any action taken or omitted to be taken which would violate, result in a breach of any covenant contained in, or be inconsistent with any of the terms of any Secured Debt Agreement.  All such rights of each Pledgor to vote and to give consents, waivers and ratifications shall cease in case an Event of Default has occurred and is continuing, and Section 7 hereof shall become applicable.

 

DIVIDENDS AND OTHER DISTRIBUTIONS.  Unless and until there shall have occurred and be continuing an Event of Default, all cash dividends, cash distributions, cash Proceeds and other cash amounts payable in respect of the Collateral shall be paid to the respective Pledgor.  The Pledgee shall be entitled to receive directly, and to retain as part of the Collateral:

 

all other or additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash dividends other than as set forth above) paid or distributed by way of dividend or otherwise in respect of the Collateral;

 

all other or additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash (although such cash may be paid directly to the respective Pledgor so long as no Event of Default then exists)) paid or distributed in respect of the Collateral by way of stock-split, spin-off, split-up, reclassification, combination of shares or similar rearrangement; and

 

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all other or additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash) which may be paid in respect of the Collateral by reason of any consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar corporate or other reorganization.

 

Nothing contained in this Section 6 shall limit or restrict in any way the Pledgee’s right to receive the proceeds of the Collateral in any form in accordance with Section 3 of this Agreement.   All dividends, distributions or other payments which are received by any Pledgor contrary to the provisions of this Section 6 or Section 7 hereof shall be received in trust for the benefit of the Pledgee, shall be segregated from other property or funds of such Pledgor and shall be forthwith paid over to the Pledgee as Collateral in the same form as so received (with any necessary endorsement).

 

REMEDIES IN CASE OF AN EVENT OF DEFAULT OR A SPECIFIED DEFAULT. (a) If there shall have occurred and be continuing an Event of Default, then and in every such case, the Pledgee shall be entitled to exercise all of the rights, powers and remedies (whether vested in it by this Agreement, any other Secured Debt Agreement or by law) for the protection and enforcement of its rights in respect of the Collateral, and the Pledgee shall be entitled to exercise all the rights and remedies of a secured party under the UCC as in effect in any relevant jurisdiction and also shall be entitled, without limitation, to exercise the following rights, which each Pledgor hereby agrees to be commercially reasonable:

 

to receive all amounts payable in respect of the Collateral otherwise payable under Section 6 hereof to the respective Pledgor;

 

to transfer all or any part of the Collateral into the Pledgee’s name or the name of its nominee or nominees;

 

to accelerate any Pledged Note which may be accelerated in accordance with its terms, and take any other lawful action to collect upon any Pledged Note (including, without limitation, to make any demand for payment thereon);

 

to vote (and exercise all rights and powers in respect of voting) all or any part of the Collateral (whether or not transferred into the name of the Pledgee) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto as though it were the outright owner thereof (each Pledgor hereby irrevocably constituting and appointing the Pledgee the proxy and attorney-in-fact of such Pledgor, with full power of substitution to do so);

 

at any time and from time to time to sell, assign and deliver, or grant options to purchase, all or any part of the Collateral, or any interest therein, at any public or private sale, without demand of performance, advertisement or, notice of intention to sell or of the time or place of sale or adjournment thereof or to redeem or otherwise purchase or dispose (all of which are hereby waived by each Pledgor), for cash, on credit or for other property, for immediate or future delivery without any assumption of credit risk, and for such price or prices and on such terms as the Pledgee in its absolute discretion may determine, provided at least 10 days’ written notice of the time and place of any such sale shall be given to the respective Pledgor. The Pledgee shall not be obligated to make any such sale of Collateral regardless of whether any such notice of sale has theretofore been given. Each Pledgor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security or the Obligations or otherwise. At any such sale, unless prohibited by applicable law, the Pledgee on behalf of the Secured Creditors may bid for and purchase all or any part of the Collateral so sold free from any such right or equity of redemption. Neither the Pledgee nor any other Secured Creditor shall be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing nor shall any of them be under any obligation to take any action whatsoever with regard thereto; and

 

to set off any and all Collateral against any and all Obligations, and to withdraw any and all cash or other Collateral from any and all Collateral Accounts and to apply such cash and other Collateral to the payment of any and all Obligations.

 

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(b)           If there shall have occurred and be continuing a Specified Default, then and in every such case, the Pledgee shall be entitled to vote (and exercise all rights and powers in respect of voting) all or any part of the Collateral (whether or not transferred into the name of the Pledgee) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto as though it were the outright owner thereof (each Pledgor hereby irrevocably constituting and appointing the Pledgee the proxy and attorney-in-fact of such Pledgor, with full power of substitution to do so).

 

REMEDIES, CUMULATIVE, ETC.  Each and every right, power and remedy of the Pledgee provided for in this Agreement or in any other Secured Debt Agreement, or now or hereafter existing at law or in equity or by statute shall be cumulative and concurrent and shall be in addition to every other such right, power or remedy. The exercise or beginning of the exercise by the Pledgee or any other Secured Creditor of any one or more of the rights, powers or remedies provided for in this Agreement or any other Secured Debt Agreement or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the Pledgee or any other Secured Creditor of all such other rights, powers or remedies, and no failure or delay on the part of the Pledgee or any other Secured Creditor to exercise any such right, power or remedy shall operate as a waiver thereof.  No notice to or demand on any Pledgor in any case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Pledgee or any other Secured Creditor to any other or further action in any circumstances without notice or demand.  The Secured Creditors agree that this Agreement may be enforced only by the action of the Pledgee, in each case, acting upon the instructions of the Required Secured Creditors, and that no other Secured Creditor shall have any right individually to seek to enforce or to enforce this Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Pledgee for the benefit of the Secured Creditors upon the terms of this Agreement and the Security Agreement.

 

APPLICATION OF PROCEEDS.  (c)  All monies collected by the Pledgee upon any sale or other disposition of the Collateral pursuant to the terms of this Agreement, together with all other monies received by the Pledgee hereunder, shall be applied in the manner provided in the Security Agreement.

 

It is understood and agreed that each Pledgor shall remain jointly and severally liable with respect to its Obligations to the extent of any deficiency between the amount of the proceeds of the Collateral pledged by it hereunder and the aggregate amount of such Obligations.

 

PURCHASERS OF COLLATERAL.  Upon any sale of the Collateral by the Pledgee hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the receipt of the Pledgee or the officer making such sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Pledgee or such officer or be answerable in any way for the misapplication or nonapplication thereof.

 

INDEMNITY.  Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Pledgee and each other Secured Creditor and their respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and collectively, the “Indemnitees”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from its performance of or any breach of this Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Secured Debt Agreement (but excluding any obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or willful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Pledgee hereunder be liable, in the absence of gross negligence or willful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), for any matter or thing in connection with this Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligations of any Pledgor under this Section 11 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is 

 

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permissible under applicable law. The indemnity obligations of each Pledgor contained in this Section 11 shall continue in full force and effect notwithstanding the full payment of all the Notes issued under the Credit Agreement, the termination of all Secured Hedging Agreements and Letters of Credit, and the payment of all other Obligations and notwithstanding the discharge thereof.

 

PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER.  (d)  Nothing herein shall be construed to make the Pledgee or any other Secured Creditor liable as a member of any limited liability company or as a partner of any partnership and neither the Pledgee nor any other Secured Creditor by virtue of this Agreement or otherwise (except as referred to in the following sentence) shall have any of the duties, obligations or liabilities of a member of any limited liability company or as a partner in any partnership.  The parties hereto expressly agree that, unless the Pledgee shall become the absolute owner of Collateral consisting of a Limited Liability Company Interest or a Partnership Interest pursuant hereto, this Agreement shall not be construed as creating a partnership or joint venture among the Pledgee, any other Secured Creditor, any Pledgor and/or any other Person.

 

Except as provided in the last sentence of paragraph (a) of this Section 12, the Pledgee, by accepting this Agreement, did not intend to become a member of any limited liability company or a partner of any partnership or otherwise be deemed to be a co-venturer with respect to any Pledgor, any limited liability company, partnership and/or any other Person either before or after an Event of Default shall have occurred.  The Pledgee shall have only those powers set forth herein and the Secured Creditors shall assume none of the duties, obligations or liabilities of a member of any limited liability company or as a partner of any partnership or any Pledgor except as provided in the last sentence of paragraph (a) of this Section 12.

 

The Pledgee and the other Secured Creditors shall not be obligated to perform or discharge any obligation of any Pledgor as a result of the pledge hereby effected.

 

The acceptance by the Pledgee of this Agreement, with all the rights, powers, privileges and authority so created, shall not at any time or in any event obligate the Pledgee or any other Secured Creditor to appear in or defend any action or proceeding relating to the Collateral to which it is not a party, or to take any action hereunder or thereunder, or to expend any money or incur any expenses or perform or discharge any obligation, duty or liability under the Collateral.

 

FURTHER ASSURANCES; POWER-OF-ATTORNEY.  (e)  Each Pledgor agrees that it will join with the Pledgee in executing and, at such Pledgor’s own expense, file and refile under the UCC or other applicable law such financing statements, continuation statements and other documents, in form reasonably acceptable to the Pledgee, in such offices as the Pledgee (acting on its own or on the instructions of the Required Secured Creditors) may reasonably deem necessary or appropriate and wherever required or permitted by law in order to perfect and preserve the Pledgee’s security interest in the Collateral hereunder and hereby authorizes the Pledgee to file financing statements and amendments thereto relative to all or any part of the Collateral (including, without limitation, (x) financing statements which list the Collateral specifically and/or “all assets” as collateral and (y) “in lieu of” financing statements) without the signature of such Pledgor where permitted by law, and agrees to do such further acts and things and to execute and deliver to the Pledgee such additional conveyances, assignments, agreements and instruments as the Pledgee may reasonably require or deem advisable to carry into effect the purposes of this Agreement or to further assure and confirm unto the Pledgee its rights, powers and remedies hereunder or thereunder.

 

Each Pledgor hereby constitutes and appoints the Pledgee its true and lawful attorney-in-fact, irrevocably, with full authority in the place and stead of such Pledgor and in the name of such Pledgor or otherwise, from time to time after the occurrence and during the continuance of an Event of Default, in the Pledgee’s discretion, to act, require, demand, receive and give acquittance for any and all monies and claims for monies due or to become due to such Pledgor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings and to execute any instrument which the Pledgee may deem necessary or advisable to accomplish the purposes of this Agreement, which appointment as attorney is coupled with an interest.

 

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THE PLEDGEE AS COLLATERAL AGENT.  The Pledgee will hold in accordance with this Agreement all items of the Collateral at any time received under this Agreement. It is expressly understood, acknowledged and agreed by each Secured Creditor that by accepting the benefits of this Agreement each such Secured Creditor acknowledges and agrees that the obligations of the Pledgee as holder of the Collateral and interests therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement and in Section 12 of the Credit Agreement.  The Pledgee shall act hereunder on the terms and conditions set forth herein and in Section 12 of the Credit Agreement.

 

TRANSFER BY THE PLEDGORS.  Except as permitted by the Credit Agreement, no Pledgor will sell or otherwise dispose of, grant any option with respect to, or mortgage, pledge or otherwise encumber any of the Collateral or any interest therein.

 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS.  (f)  Each Pledgor represents, warrants and covenants as to itself and each of its Subsidiaries that:

 

it is the legal, beneficial and record owner of, and has good and marketable title to, all of its Collateral consisting of one or more Securities, Partnership Interests and Limited Liability Company Interests and that it has sufficient interest in all of its Collateral in which a security interest is purported to be created hereunder for such security interest to attach (subject, in each case, to no pledge, lien, mortgage, hypothecation, security interest, charge, option, Adverse Claim or other encumbrance whatsoever, except the liens and security interests created by this Agreement or permitted under the Secured Debt Agreements);

 

it has full power, authority and legal right to pledge all the Collateral pledged by it pursuant to this Agreement;

 

this Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor or any of its Subsidiaries) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Agreement by such Pledgor, (b) the validity or enforceability of this Agreement against such Pledgor (except as set forth in clause (iii) above), (c) the perfection or enforceability of the Pledgee’s security interest in such Pledgor’s Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Pledgee of any of its rights or remedies provided herein;

 

neither the execution, delivery or performance by such Pledgor of this Agreement or any other Secured Debt Agreement to which it is a party, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein:  (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor or any of its Subsidiaries pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor or any of its Subsidiaries is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of incorporation, by-laws, certificate of partnership, partnership agreement, certificate of 

 

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formation or limited liability company agreement (or equivalent organizational documents), as the case may be, of such Pledgor or any of its Subsidiaries;

 

all of such Pledgor’s Collateral (consisting of Securities, Limited Liability Company Interests and Partnership Interests) has been duly and validly issued, is fully paid and non-assessable and is subject to no options to purchase or similar rights;

 

each of such Pledgor’s Pledged Notes constitutes, or when executed by the obligor thereof will constitute, the legal, valid and binding obligation of such obligor, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

the pledge, collateral assignment and delivery to the Pledgee of such Pledgor’s Collateral consisting of Certificated Securities and Pledged Notes pursuant to this Agreement creates a valid and perfected first priority security interest in such Certificated Securities and Pledged Notes, and the proceeds thereof, subject to no prior Lien or encumbrance or to any agreement purporting to grant to any third party a Lien or encumbrance on the property or assets of such Pledgor which would include the Securities (other than the liens and security interests permitted under the Secured Debt Agreements then in effect) and the Pledgee is entitled to all the rights, priorities and benefits afforded by the UCC or other relevant law as enacted in any relevant jurisdiction to perfect security interests in respect of such Collateral; and

 

“control” (as defined in Section 8-106 of the UCC) has been obtained by the Pledgee over all of such Pledgor’s Collateral consisting of Securities (including, without limitation, Notes which are Securities) with respect to which such “control” may be obtained pursuant to Section 8-106 of the UCC, except to the extent that the obligation of the applicable Pledgor to provide the Pledgee with “control” of such Collateral has not yet arisen under this Agreement; provided that in the case of the Pledgee obtaining “control” over Collateral consisting of a Security Entitlement, such Pledgor shall have taken all steps in its control so that the Pledgee obtains “control” over such Security Entitlement.

 

Each Pledgor covenants and agrees that it will defend the Pledgee’s right, title and security interest in and to such Pledgor’s Collateral and the proceeds thereof against the claims and demands of all persons whomsoever; and each Pledgor covenants and agrees that it will have like title to and right to pledge any other property at any time hereafter pledged to the Pledgee by such Pledgor as Collateral hereunder and will likewise defend the right thereto and security interest therein of the Pledgee and the other Secured Creditors.

 

LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; FEDERAL EMPLOYER IDENTIFICATION NUMBERS; CHANGES THERETO; ETC.  The exact legal name of each Pledgor, the type of organization of such Pledgor, whether or not such Pledgor is a Registered Organization, the jurisdiction of organization of such Pledgor, such Pledgor’s Location, the organizational identification number (if any) of each Pledgor, the Federal Employer Identification Number (if any) and whether or not such Pledgor is a Transmitting Utility, is listed on Annex A hereto for such Pledgor.  No Pledgor shall change its legal name, its type of organization, its status as a Registered Organization (in the case of a Registered Organization), its status as a Transmitting Utility or as a Person which is not a Transmitting Utility, as the case may be, its jurisdiction of organization, its Location, its organizational identification number (if any), or its Federal Employer Identification Number (if any) except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Secured Debt Agreements and so long as same do not involve (x) a Registered Organization ceasing to constitute same or (y) any Pledgor changing its jurisdiction of organization or Location from the United States or a State thereof to a jurisdiction of organization or Location, as the case may be, outside the United States or a State thereof) if (i) it shall have given to the Collateral Agent not less than 15 days’ prior written notice of each change to the information listed on Annex A (as adjusted for any subsequent changes thereto previously made in accordance with this sentence), together with a supplement to Annex A which shall correct all information contained therein for such Pledgor, and (ii) in connection with the respective such change or changes, it shall have taken all action reasonably requested by the Collateral Agent to maintain the security interests of the Collateral Agent in the Collateral intended 

 

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to be granted hereby at all times fully perfected and in full force and effect.  In addition, to the extent that any Pledgor does not have an organizational identification number on the date hereof and later obtains one, such Pledgor shall promptly thereafter deliver a notification of the Collateral Agent of such organizational identification number and shall take all actions reasonably satisfactory to the Collateral Agent to the extent necessary to maintain the security interest of the Collateral Agent in the Collateral intended to be granted hereby fully perfected and in full force and effect.

 

PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC.  The obligations of each Pledgor under this Agreement shall be absolute and unconditional and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever (other than termination of this Agreement pursuant to Section 20 hereof), including, without limitation:

 

any renewal, extension, amendment or modification of, or addition or supplement to or deletion from any Secured Debt Agreement (other than this Agreement in accordance with its terms), or any other instrument or agreement referred to therein, or any assignment or transfer of any thereof;

 

any waiver, consent, extension, indulgence or other action or inaction under or in respect of any such agreement or instrument including, without limitation, this Agreement (other than a waiver, consent or extension with respect to this Agreement in accordance with its terms);

 

any furnishing of any additional security to the Pledgee or its assignee or any acceptance thereof or any release of any security by the Pledgee or its assignee;

 

any limitation on any party’s liability or obligations under any such instrument or agreement or any invalidity or unenforceability, in whole or in part, of any such instrument or agreement or any term thereof; or

 

any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to any Pledgor or any Subsidiary of any Pledgor, or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding, whether or not such Pledgor shall have notice or knowledge of any of the foregoing.

 

SALE OF COLLATERAL WITHOUT REGISTRATION.  (g)  If an Event of Default shall have occurred and be continuing and any Pledgor shall have received from the Pledgee a written request or requests that such Pledgor cause any registration, qualification or compliance under any federal or state securities law or laws to be effected with respect to all or any part of the Collateral consisting of Securities, Limited Liability Company Interests or Partnership Interests, such Pledgor as soon as practicable and at its expense will use reasonable commercial efforts to cause such registration to be effected (and be kept effective) and will use reasonable commercial efforts to cause such qualification and compliance to be effected (and be kept effective) as may be so requested and as would permit or facilitate the sale and distribution of such Collateral consisting of Securities, Limited Liability Company Interests or Partnership Interests, including, without limitation, registration under the Securities Act, as then in effect (or any similar statute then in effect), appropriate qualifications under applicable blue sky or other state securities laws and appropriate compliance with any other governmental requirements; provided, that the Pledgee shall furnish to such Pledgor such information regarding the Pledgee as such Pledgor may request in writing and as shall be required in connection with any such registration, qualification or compliance.  Each Pledgor will cause the Pledgee to be kept reasonably advised in writing as to the progress of each such registration, qualification or compliance and as to the completion thereof, will furnish to the Pledgee such number of prospectuses, offering circulars and other documents incident thereto as the Pledgee from time to time may reasonably request, and will indemnify, to the extent permitted by law, the Pledgee and all other Secured Creditors participating in the distribution of such Collateral consisting of Securities, Limited Liability Company Interests or Partnership Interests against all claims, losses, damages and liabilities caused by any untrue statement (or alleged untrue statement) of a material fact contained therein (or in any related registration statement, notification or the like) or by any omission (or alleged omission) to state therein (or in any related registration statement, notification or the like) a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as the same may have been caused by an untrue statement or omission based upon information furnished in writing to such Pledgor by the Pledgee or such other Secured Creditor expressly for use therein.

 

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If at any time when the Pledgee shall determine to exercise its right to sell all or any part of the Collateral consisting of Securities, Limited Liability Company Interests or Partnership Interests pursuant to Section 7 hereof, and such Collateral or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under the Securities Act, as then in effect, the Pledgee may, in its sole and absolute discretion, sell such Collateral or part thereof by private sale in such manner and under such circumstances as the Pledgee may deem necessary or advisable in order that such sale may legally be effected without such registration.  Without limiting the generality of the foregoing, in any such event the Pledgee, in its sole and absolute discretion (i) may proceed to make such private sale notwithstanding that a registration statement for the purpose of registering such Collateral or part thereof shall have been filed under such Securities Act, (ii) may approach and negotiate with a single possible purchaser to effect such sale, and (iii) may restrict such sale to a purchaser who will represent and agree that such purchaser is purchasing for its own account, for investment, and not with a view to the distribution or sale of such Collateral or part thereof.  In the event of any such sale, the Pledgee shall incur no responsibility or liability for selling all or any part of the Collateral at a price which the Pledgee, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might be realized if the sale were deferred until the registration as aforesaid.

 

TERMINATION; RELEASE.  (h)  On the Termination Date (as defined below), this Agreement shall terminate (provided that all indemnities set forth herein including, without limitation, in Section 11 hereof shall survive any such termination) and the Pledgee, at the request and expense of such Pledgor, will execute and deliver to such Pledgor a proper instrument or instruments (including UCC termination statements) acknowledging the satisfaction and termination of this Agreement (including, without limitation, UCC termination statements and instruments of satisfaction, discharge and/or reconveyance), and will duly release from the security interest created hereby and assign, transfer and deliver to such Pledgor (without recourse and without any representation or warranty) such of the Collateral as may be in the possession of the Pledgee and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement, together with any moneys at the time held by the Pledgee or any of its sub-agents hereunder and, with respect to any Collateral consisting of an Uncertificated Security, a Partnership Interest or a Limited Liability Company Interest (other than an Uncertificated Security, Partnership Interest or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary), a termination of the agreement relating thereto executed and delivered by the issuer of such Uncertificated Security pursuant to Section 3.2(a)(ii) or by the respective partnership or limited liability company pursuant to Section 3.2(a)(iv)(2).  As used in this Agreement, “Termination Date” shall mean the date upon which the Total Commitment under the Credit Agreement has been terminated, no Letter of Credit under the Credit Agreement is outstanding and all Loans have been repaid in full, all Letters of Credit issued under the Credit Agreement have been terminated and all Obligations then due and payable have been paid in full (other than inchoate indemnification Obligations). For purposes of determining the Termination Date, the Collateral Agent shall be entitled to rely upon a certificate of the chief financial officer of Holdings stating the aggregate amount of Other Obligations then due and payable

 

In the event that any part of the Collateral is sold or otherwise disposed of (to a Person other than a Credit Party) (x) at any time prior to the time at which all Credit Document Obligations have been paid in full and all Commitments and Letters of Credit under the Credit Agreement have been terminated, in connection with a sale or disposition permitted by Section 10.02 of the Credit Agreement or is otherwise released at the direction of the Required Lenders (or all the Lenders if required by Section 13.12 of the Credit Agreement) or (y) at any time thereafter, to the extent permitted by the other Secured Debt Agreements, and in the case of clauses (x) and (y), the proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Credit Agreement or such other Secured Debt Agreement, as the case may be, to the extent required to be so applied, the Pledgee, at the request and expense of such Pledgor, will duly release from the security interest created hereby (and will execute and deliver such documentation, including termination or partial release statements and the like in connection therewith) and assign, transfer and deliver to such Pledgor (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so sold or released and as may be in the possession of the Pledgee (or, in the case of Collateral held by any sub-agent designated pursuant to Section 4 hereto, such sub-agent) and has not theretofore been released pursuant to this Agreement.

 

At any time that any Pledgor desires that Collateral be released as provided in the foregoing Section 20(a) or (b), it shall deliver to the Pledgee (and the relevant sub-agent, if any, designated pursuant to Section 4 hereof) a certificate signed by an authorized officer of such Pledgor stating that the release of the respective 

 

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Collateral is permitted pursuant to Section 20(a) or (b) hereof.  If reasonably requested by the Pledgee (although the Pledgee shall have no obligation to make any such request), the relevant Pledgor shall furnish appropriate legal opinions (from counsel, reasonably acceptable to the Pledgee) to the effect set forth in the immediately preceding sentence.

 

The Pledgee shall have no liability whatsoever to any other Secured Creditor as the result of any release of Collateral by it in accordance with (or which the Collateral Agent in good faith believes to be in accordance with) this Section 20.

 

NOTICES, ETC.  Except as otherwise specified herein, all notices, requests, demands or other communications to or upon the respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by courier, be effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the Pledgee or any Pledgor shall not be effective until received by the Pledgee or such Pledgor, as the case may be.  All notices and other communications shall be in writing and addressed as follows:

 

	
if to any Pledgor, at:
    
	
 
    	
 
    
	
 
    	
c/o   Global Cash Access Holdings, Inc.
    
	
 
    	
3525   E. Post Road
    
	
 
    	
Las   Vegas, NV 89120
    
	
 
    	
Attention:   
    	
Chief   Financial Officer
    
	
 
    	
 
    	
and General Counsel
    
	
 
    	
 
    
	
 
    	
Telephone   No:   [                ]
    
	
 
    	
Telecopier   No.:   [                ]
    
	
 
    	
 
    
	
if to the Pledgee, at:
    
	
 
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas
    
	
 
    	
60   Wall Street
    
	
 
    	
New   York, New York, 10005
    
	
 
    	
Attention:   Mary Kay Coyle
    
	
 
    	
Telephone   No.: 212-250-6039
    
	
 
    	
Telecopier   No.: 212-797-5690
    

 

if to any Lender Creditor, either (x) to the Administrative Agent, at the address of the Administrative Agent specified in the Credit Agreement, or (y) at such address as such Lender Creditor shall have specified in the Credit Agreement;

 

if to any Other Creditor, at such address as such Other Creditor shall have specified in writing to the Pledgors and the Pledgee;

 

or at such other address or addressed to such other individual as shall have been furnished in writing by any Person described above to the party required to give notice hereunder.

 

WAIVER; AMENDMENT.  Except as provided in Sections 30 and 32 hereof, none of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever except in accordance with the requirements specified in the Security Agreement.

 

SUCCESSORS AND ASSIGNS.  This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to release and/or termination as set forth in Section 20, (ii) be binding upon each Pledgor, its successors and assigns; provided, however, that no Pledgor shall assign any of 

 

18

 

its rights or obligations hereunder without the prior written consent of the Pledgee (with the prior written consent of the Required Secured Creditors), and (iii) inure, together with the rights and remedies of the Pledgee hereunder, to the benefit of the Pledgee, the other Secured Creditors and their respective successors, transferees and assigns.  All agreements, statements, representations and warranties made by each Pledgor herein or in any certificate or other instrument delivered by such Pledgor or on its behalf under this Agreement shall be considered to have been relied upon by the Secured Creditors and shall survive the execution and delivery of this Agreement and the other Secured Debt Agreements regardless of any investigation made by the Secured Creditors or on their behalf.

 

HEADINGS DESCRIPTIVE.  The headings of the several Sections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.

 

GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.  (i)  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PLEDGOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH PLEDGOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PLEDGOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS PERSONAL JURISDICTION OVER SUCH PLEDGOR.  EACH PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH PLEDGOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 21 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE PLEDGEE UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PLEDGOR IN ANY OTHER JURISDICTION.

 

EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

PLEDGOR’S DUTIES.  It is expressly agreed, anything herein contained to the contrary notwithstanding, that each Pledgor shall remain liable to perform all of the obligations, if any, assumed by it with respect to the Collateral and the Pledgee shall not have any obligations or liabilities with respect to any Collateral by reason of or arising out of this Agreement, except for the safekeeping of Collateral actually in Pledgor’s possession, nor shall 

 

19

 

the Pledgee be required or obligated in any manner to perform or fulfill any of the obligations of any Pledgor under or with respect to any Collateral.

 

COUNTERPARTS.  This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  A set of counterparts executed by all the parties hereto shall be lodged with each Pledgor and the Pledgee.

 

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.

 

RECOURSE.  This Agreement is made with full recourse to each Pledgor and pursuant to and upon all the representations, warranties, covenants and agreements on the part of such Pledgor contained herein and in the other Secured Debt Agreements and otherwise in writing in connection herewith or therewith.

 

ADDITIONAL PLEDGORS.  It is understood and agreed that any Subsidiary of Holdings that is required to become a party to this Agreement after the date hereof pursuant to the requirements of the Credit Agreement or any other Credit Document, shall become a Pledgor hereunder by (x) executing a counterpart hereof and delivering same to the Pledgee or executing a joinder agreement and delivering same to the Administrative Agent, in each case as may be required by (and in form and substance satisfactory to) the Administrative Agent, (y) delivering supplements to Annexes A through G, hereto as are necessary to cause such annexes to be complete and accurate with respect to such additional Pledgor on such date and (z) taking all actions as specified in this Agreement as would have been taken by such Pledgor had it been an original party to this Agreement, in each case with all documents required above to be delivered to the Pledgee and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledgee.

 

LIMITED OBLIGATIONS.  It is the desire and intent of each Pledgor and the Secured Creditors that this Agreement shall be enforced against each Pledgor to the fullest extent permissible under the laws applied in each jurisdiction in which enforcement is sought.  Notwithstanding anything to the contrary contained herein, in furtherance of the foregoing, it is noted that the obligations of each Pledgor constituting a Subsidiary Guarantor have been limited as provided in the Subsidiaries Guaranty.

 

RELEASE OF PLEDGORS.  If at any time all of the Equity Interests of any Pledgor owned by the Borrower or any of its Subsidiaries are sold (to a Person other than a Credit Party) in a transaction permitted pursuant to the Credit Agreement (and which does not violate the terms of any other Secured Debt Agreement then in effect), then, such Pledgor shall be released as a Pledgor pursuant to this Agreement without any further action hereunder (it being understood that the sale of all of the Equity Interests in any Person that owns, directly or indirectly, all of the Equity Interests in any Pledgor shall be deemed to be a sale of all of the Equity Interests in such Pledgor for purposes of this Section), and the Pledgee is authorized and directed to execute and deliver such instruments of release as are reasonably satisfactory to it.  At any time that the Borrower desires that a Pledgor be released from this Agreement as provided in this Section 32, the Borrower shall deliver to the Pledgee a certificate signed by a principal executive officer of the Borrower stating that the release of such Pledgor is permitted pursuant to this Section 32.  If requested by Pledgee (although the Pledgee shall have no obligation to make any such request), the Borrower shall furnish legal opinions (from counsel acceptable to the Pledgee) to the effect set forth in the immediately preceding sentence.  The Pledgee shall have no liability whatsoever to any other Secured Creditor as a result of the release of any Pledgor by it in accordance with, or which it believes in good faith to be in accordance with, this Section 32.

 

* * * *

 

20

 

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

 

 

	
 
    	
GLOBAL CASH ACCESS HOLDINGS, INC.,
    
	
 
    	
as a Pledgor
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Global Cash Access Holdings, Inc.,
    
	
 
    	
 
    	
Global Cash Access Holdings, Inc.
    
	
 
    	
 
    	
Pledgor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GLOBAL   CASH ACCESS, INC.,
    
	
 
    	
as a Pledgor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Global Cash Access, Inc.
    
	
 
    	
 
    	
Global Cash Access, Inc.
    
	
 
    	
 
    	
Pledgor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Accepted   and Agreed to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
DEUTSCHE   BANK TRUST COMPANY AMERICAS,
    	
 
    	
 
    
	
as Collateral Agent and Pledgee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Deutsche Bank Trust Company Americas
    	
 
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas
    	
 
    	
 
    
	
 
    	
Collateral   Agent and Pledgee
    	
 
    	
 
    

 

21

 

ANNEX A

to

PLEDGE AGREEMENT

 

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION
  (AND WHETHER A REGISTERED ORGANIZATION AND/OR
 A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION, 
 LOCATION, ORGANIZATIONAL IDENTIFICATION NUMBERS  
 AND FEDERAL EMPLOYER IDENTIFICATION NUMBERS

 

	
Exact Legal
   Name of Each
   Pledgor
    	
 
    	
Type of
   Organization
   (or, if the
   Pledgor is an
   Individual, so
   indicate)
    	
 
    	
Registered
   Organization?
   (Yes/No)
    	
 
    	
Jurisdiction
   of
   Organization
    	
 
    	
Pledgor’s
   Location
   (for
   purposes of
   NY UCC 
   § 9-307)
    	
 
    	
Pledgor’s
   Organization
   Identification
   Number (or, if
   it has none, so
   indicate)
    	
 
    	
Pledgor’s
   Federal
   Employer
   Identification
   Number (or, if
   it has none, so
   indicate)
    	
 
    	
Transmitting
   Utility?
   (Yes/No)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

NEWYORK 8029333 (2K)

 

 

ANNEX B

to

PLEDGE AGREEMENT

 

SCHEDULE OF SUBSIDIARIES

 

	
Entity
    	
 
    	
Ownership
    	
 
    	
Jurisdiction of Organization
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

ANNEX C

to

PLEDGE AGREEMENT

 

SCHEDULE OF STOCK

 

1.             [PLEDGOR]

 

	
Name of 
   Issuing
   Corporation
    	
 
    	
Type of
    Shares
    	
 
    	
Number of
    Shares
    	
 
    	
Certificate
    No.(1)
    	
 
    	
Percentage
   Owned(2)
    	
 
    	
Sub-clause of 
   Section 3.2(a)
   of Pledge
   Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

2.             [ADDITIONAL PLEDGOR(S)]

 

	
Name of
   Issuing
   Corporation
    	
 
    	
Type of
   Shares
    	
 
    	
Number of
   Shares
    	
 
    	
Certificate
   No.(16)
    	
 
    	
Percentage
   Owned(17)
    	
 
    	
Sub-clause of
   Section 3.2(a)
   of Pledge
   Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

(1)               Specify if uncertificated.

 

(2)               Specify for each Foreign Subsidiary the percentage owned of (x) Voting Equity Interests and (y) Non-Voting Equity Interests.

 

 

ANNEX D

to

PLEDGE AGREEMENT

 

SCHEDULE OF NOTES

 

1.             [PLEDGOR]

 

	
Amount
    	
 
    	
Maturity Date
    	
 
    	
Obligor
    	
 
    	
Sub-clause of
   Section 3.2(a)
   of Pledge Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

2.             [ADDITIONAL PLEDGOR(S)]

 

	
Amount
    	
 
    	
Maturity Date
    	
 
    	
Obligor
    	
 
    	
Sub-clause of
   Section 3.2(a)
   of Pledge Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

ANNEX E

to

PLEDGE AGREEMENT

 

SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS

 

1.             [PLEDGOR]

 

	
Name of
   Issuing Limited Liability
   Company
    	
 
    	
Type of
   Interest
    	
 
    	
Percentage Owned
    	
 
    	
Sub-clause of
   Section 3.2(a)
   of Pledge Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

2.             [ADDITIONAL PLEDGOR(S)]

 

	
Name of
   Issuing Limited Liability
   Company
    	
 
    	
Type of
   Interest
    	
 
    	
Percentage Owned
    	
 
    	
Sub-clause of
   Section 3.2(a)
   of Pledge Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

ANNEX F

to

PLEDGE AGREEMENT

 

SCHEDULE OF PARTNERSHIP INTERESTS

 

1.             [PLEDGOR]

 

	
Name of
   Issuing Partnership
    	
 
    	
Type of
   Interest
    	
 
    	
Percentage Owned
    	
 
    	
Sub-clause of
   Section 3.2(a)
   of Pledge Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

2.             [ADDITIONAL PLEDGOR(S)]

 

	
Name of
   Issuing Partnership
    	
 
    	
Type of
   Interest
    	
 
    	
Percentage Owned
    	
 
    	
Sub-clause of
   Section 3.2(a)
   of Pledge Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

ANNEX G

to

PLEDGE AGREEMENT

 

SCHEDULE OF CHIEF EXECUTIVE OFFICES

 

	
Name of Pledgor
    	
 
    	
Address(es) of Chief Executive Office(1)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

(1)               For each Pledgor, list the address of its chief executive office on the date of the Security Agreement and each other location (if any) of its chief executive office in the four calendar months preceding said date.

 

 

 

ANNEX H

to

PLEDGE AGREEMENT

 

Form of Agreement Regarding Uncertificated Securities, Limited Liability
 Company Interests and Partnership Interests

 

AGREEMENT (as amended, modified, restated and/or supplemented from time to time, this “Agreement”), dated as of [                   , 20    ], among the undersigned pledgor (the “Pledgor”), Deutsche Bank Trust Company Americas, not in its individual capacity but solely as Collateral Agent (the “Pledgee”), and [                    ], as the issuer of the Uncertificated Securities, Limited Liability Company Interests and/or Partnership Interests (each as defined below) (the “Issuer”).

 

W  I  T  N  E  S  S  E  T  H :

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

Deutsche Bank Trust Company Americas

60 Wall Street

New York, New York, 10005

Attention:  [                            ]

Telephone No.:  [                            ]

Telecopier No.:  [                            ]

 

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

 

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

 

(a)           if to the Pledgor, at:

 

 

 

2

 

	
Attention:
    	
 
    
	
Telephone   No.:
    	
 
    
	
Fax   No.:
    	
 
    

 

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

 

(c)           if to the Issuer, at:

 

 

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

 

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

 

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

 

3

 

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

 

 

	
 
    	
[                                                      ],
    	
 
    
	
 
    	
as Pledgor
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Global Cash Access Holdings, Inc.
    
	
 
    	
 
    	
Global   Cash Access Holdings, Inc.
    
	
 
    	
 
    	
Pledgor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Global Cash Access, Inc.
    
	
 
    	
 
    	
Global   Cash Access, Inc.
    
	
 
    	
 
    	
Pledgor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DEUTSCHE   BANK TRUST COMPANY AMERICAS,
    	
 
    
	
 
    	
 
    	
not   in its individual capacity but solely as Collateral Agent and Pledgee
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Deutsche Bank Trust Company Americas
    
	
 
    	
 
    	
Deutsche   Bank Trust Company Americas
    
	
 
    	
 
    	
Collateral   Agent and Pledgee
    
					

 

4

 

	
1. SECURITY FOR OBLIGATIONS
    	
3
    
	
 
    	
 
    
	
2. DEFINITIONS
    	
3
    
	
 
    	
 
    
	
3. PLEDGE OF SECURITIES, ETC.
    	
6
    
	
 
    	
 
    
	
3.1   Pledge
    	
6
    
	
3.2   Procedures
    	
8
    
	
3.3   Subsequently Acquired Collateral
    	
9
    
	
3.4   Transfer Taxes
    	
10
    
	
3.5   Certain Representations and Warranties Regarding the Collateral
    	
10
    
	
 
    	
 
    
	
4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC.
    	
10
    
	
 
    	
 
    
	
5. VOTING, ETC., WHILE NO EVENT OF DEFAULT OR   SPECIFIED DEFAULT
    	
10
    
	
 
    	
 
    
	
6. DIVIDENDS AND OTHER DISTRIBUTIONS
    	
10
    
	
 
    	
 
    
	
7. REMEDIES IN CASE OF AN EVENT OF DEFAULT OR A   SPECIFIED DEFAULT
    	
11
    
	
 
    	
 
    
	
8. REMEDIES, CUMULATIVE, ETC.
    	
12
    
	
 
    	
 
    
	
9. APPLICATION OF PROCEEDS
    	
12
    
	
 
    	
 
    
	
10. PURCHASERS OF COLLATERAL
    	
12
    
	
 
    	
 
    
	
11. INDEMNITY
    	
12
    
	
 
    	
 
    
	
12. PLEDGEE NOT A PARTNER OR LIMITED LIABILITY   COMPANY MEMBER
    	
13
    
	
 
    	
 
    
	
13. FURTHER ASSURANCES; POWER-OF-ATTORNEY
    	
13
    
	
 
    	
 
    
	
14. THE PLEDGEE AS COLLATERAL AGENT
    	
14
    
	
 
    	
 
    
	
15. TRANSFER BY THE PLEDGORS
    	
14
    
	
 
    	
 
    
	
16. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE   PLEDGORS
    	
14
    
	
 
    	
 
    
	
17. LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A   REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF   ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; CHANGES   THERETO; ETC.
    	
15
    

 

1

 

	
18. PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC.
    	
16
    
	
 
    	
 
    
	
19. SALE OF COLLATERAL WITHOUT REGISTRATION
    	
16
    
	
 
    	
 
    
	
20. TERMINATION; RELEASE
    	
17
    
	
 
    	
 
    
	
21. NOTICES, ETC.
    	
18
    
	
 
    	
 
    
	
22. WAIVER; AMENDMENT
    	
18
    
	
 
    	
 
    
	
23. SUCCESSORS AND ASSIGNS
    	
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24. HEADINGS DESCRIPTIVE
    	
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25. GOVERNING LAW; SUBMISSION TO JURISDICTION;   VENUE; WAIVER OF JURY TRIAL
    	
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26. PLEDGOR’S DUTIES
    	
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27. COUNTERPARTS
    	
20
    
	
 
    	
 
    
	
28. SEVERABILITY
    	
20
    
	
 
    	
 
    
	
29. RECOURSE
    	
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30. ADDITIONAL PLEDGORS
    	
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31. LIMITED OBLIGATIONS
    	
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32. RELEASE OF PLEDGORS
    	
20
    

 

	
ANNEX   A
    	
-
    	
SCHEDULE   OF LEGAL NAMES, TYPE OF ORGANIZATION, JURISDICTION OF ORGANIZATION, LOCATION, ORGANIZATIONAL   IDENTIFICATION NUMBERS AND FEDERAL EMPLOYER IDENTIFICATION NUMBERS
    
	
ANNEX B
    	
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SCHEDULE OF   SUBSIDIARIES
    
	
ANNEX C
    	
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SCHEDULE OF STOCK
    
	
ANNEX D
    	
-
    	
SCHEDULE OF NOTES
    
	
ANNEX E
    	
-
    	
SCHEDULE OF LIMITED   LIABILITY COMPANY INTERESTS
    
	
ANNEX F
    	
-
    	
SCHEDULE OF PARTNERSHIP   INTERESTS
    
	
ANNEX G
    	
-
    	
SCHEDULE OF CHIEF   EXECUTIVE OFFICES
    
	
ANNEX H
    	
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FORM OF AGREEMENT   REGARDING UNCERTIFICATED
    

 

2

 

	
 
    	
 
    	
SECURITIES, LIMITED   LIABILITY COMPANY INTERESTS AND PARTNERSHIP INTERESTS
    

 

3Exhibit 10.3

 

EXECUTION VERSION

 

SECURITY AGREEMENT

 

 

among

 

 

GLOBAL CASH ACCESS HOLDINGS, INC.,

 

GLOBAL CASH ACCESS, INC.

 

CERTAIN SUBSIDIARIES OF GLOBAL CASH ACCESS HOLDINGS, INC.,

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as COLLATERAL AGENT

 

 

 

Dated as of March 1, 2011

 

 

 

NEWYORK 8028595 (2K)

 

 

SECURITY AGREEMENT

 

SECURITY AGREEMENT, dated as of March 1, 2011, made by each of the undersigned assignors (each, an “Assignor” and, together with any other entity that becomes an assignor hereunder pursuant to Section 9.12 hereof, the “Assignors”) in favor of DEUTSCHE BANK TRUST COMPANY AMERICAS, as Collateral Agent (together with any successor Collateral Agent, the “Collateral Agent”), for the benefit of the Secured Creditors (as defined below).  Certain capitalized terms as used herein are defined in Article VIII hereof.  Except as otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used herein as therein defined.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, Global Cash Access Holdings, Inc. (“Holdings”), Global Cash Access, Inc. (the “Borrower”), the lenders from time to time party thereto (the “Lenders”), and Deutsche Bank Trust Company Americas, as administrative agent (together with any successor Administrative Agent, the “Administrative Agent”), have entered into a Credit Agreement, dated as of March 1, 2011 (as amended, modified, restated and/or supplemented from time to time, the “Credit Agreement”), providing for the making of Loans to, and the issuance of, and participation in, Letters of Credit for the account of the Borrower, all as contemplated therein (the Lenders, each Issuing Lender, the Administrative Agent, the Collateral Agent and each other Agent are herein called the “Lender Creditors”);

 

WHEREAS, the Borrower and/or one or more other Credit Parties may at any time and from time to time enter into one or more Interest Rate Protection Agreements with one or more Lenders or any affiliate thereof (each such Lender or affiliate, even if the respective Lender subsequently ceases to be a Lender under the Credit Agreement for any reason, together with such Lender’s or affiliate’s successors and assigns, if any, collectively, the “Other Creditors” and, together with the Lender Creditors, the “Secured Creditors”, with each such Interest Rate Protection Agreement with an Other Creditor being herein called a “Secured Hedging Agreement”);

 

WHEREAS, pursuant to the Holdings Guaranty, Holdings has guaranteed to the Secured Creditors the payment when due of all Guaranteed Obligations as described therein;

 

WHEREAS, pursuant to the Subsidiaries Guaranty, each Subsidiary Guarantor has jointly and severally guaranteed to the Secured Creditors the payment when due of all Guaranteed Obligations as described therein;

 

WHEREAS, it is a condition precedent to the making of Loans to the Borrower and the issuance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and to the Other Creditors entering into Secured Hedging Agreements that each Assignor shall have executed and delivered to the Collateral Agent this Agreement; and

 

WHEREAS, each Assignor will obtain benefits from the incurrence of Loans by the Borrower and the issuance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and the entering into by the Borrower and/or one or more other Credit Parties of Secured Hedging Agreements and, accordingly, desires to execute this Agreement in order to satisfy the condition described in the preceding paragraph and to induce the Lenders to make Loans to the Borrower and issue, and/or participate in, Letters of Credit for the account of the Borrower and the Other Creditors to enter into Secured Hedging Agreements with the Borrower and/or one or more other Credit Parties;

 

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NOW, THEREFORE, in consideration of the benefits accruing to each Assignor, the receipt and sufficiency of which are hereby acknowledged, each Assignor hereby makes the following representations and warranties to the Collateral Agent for the benefit of the Secured Creditors and hereby covenants and agrees with the Collateral Agent for the benefit of the Secured Creditors as follows:

 

SECURITY INTERESTS

 

Grant of Security Interests.  (a)  As security for the prompt and complete payment and performance when due of all of its Obligations, each Assignor does hereby assign and transfer unto the Collateral Agent, and does hereby pledge and grant to the Collateral Agent, for the benefit of the Secured Creditors, a continuing security interest in all of the right, title and interest of such Assignor in, to and under all of the following personal property and fixtures (and all rights therein) of such Assignor, or in which or to which such Assignor has any rights, in each case whether now existing or hereafter from time to time acquired:

 

each and every Account;

 

all cash;

 

the Cash Collateral Account and all monies, securities, Instruments and other investments deposited or required to be deposited in the Cash Collateral Account;

 

all Chattel Paper (including, without limitation, all Tangible Chattel Paper and all Electronic Chattel Paper);

 

all Commercial Tort Claims;

 

all computer programs of such Assignor and all intellectual property rights therein and all other proprietary information of such Assignor, including but not limited to Domain Names and rights in Trade Secrets;

 

Contracts, together with all Contract Rights arising thereunder;

 

all Copyrights;

 

all Equipment;

 

all Deposit Accounts and all other demand, deposit, time, savings, cash management, passbook and similar accounts maintained by such Assignor with any Person and all monies, securities, Instruments and other investments deposited or required to be deposited in any of the foregoing;

 

all Documents;

 

all General Intangibles;

 

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all Goods;

 

all Instruments;

 

all Inventory;

 

all Investment Property;

 

all Letter-of-Credit Rights (whether or not the respective letter of credit is evidenced by a writing);

 

all Marks, together with the registrations and right to all renewals thereof, the goodwill of the business of such Assignor symbolized by the Marks and all causes of action arising prior to or after the date hereof for infringement of any of the Marks or unfair competition regarding the same;

 

all Patents, together with all causes of action arising prior to or after the date hereof for infringement of any of the Patents or unfair competition regarding the same;

 

all Permits;

 

all Software and all Software licensing rights, all writings, plans, specifications and schematics, all engineering drawings, customer lists, goodwill and licenses, and all recorded data of any kind or nature, regardless of the medium of recording;

 

all Supporting Obligations; and

 

all Proceeds 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 (all of the above, the “Collateral”).

 

(b)           Notwithstanding anything herein to the contrary, in no event shall the security interest and lien granted under Section 1.1(a) hereof attach to, and the term “Collateral” (and the component terms thereof) shall not include, (i) any General Intangibles or other rights arising under leases, licenses, contracts, agreements or other documents for so long as the grant of such security interest shall constitute or result in (A) the abandonment, invalidation or unenforceability of any right, title or interest of any Assignor therein, (B) a breach or termination pursuant to the terms of, or a default under, any such General Intangible, lease, license, contract, agreement or other document, (C) a breach of any law or regulation which prohibits the creation of a security interest thereunder (other than to the extent that any such term specified in clause (A), (B) or (C) above is rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other then-applicable law (including the Bankruptcy Code) or principles of equity) or (D) require the consent of a Governmental Authority to permit the grant of a security interest therein (and such consent has not been obtained); provided, however, that such security interest shall attach immediately at such time as the condition causing such abandonment, invalidation, unenforceability breach or termination shall no longer be effective and to the extent severable, shall attach immediately to any portion of such General Intangible, lease, license, contract, agreement or other document that does not result in any of the consequences specified in clause (A), (B), (C) or (D) above, (ii) Pledge Agreement Collateral and (iii) the voting Equity Interests of a Foreign Subsidiary of any Assignor in excess of 65%

 

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of the total combined voting power of all classes of such Subsidiary of such Assignor entitled to vote (the assets described in clauses (i) through (iii) hereof collectively, the “Excluded Assets”); provided that immediately upon the amendment of the Code to allow the pledge of a greater percentage of the Equity Interests in a Foreign Subsidiary without repatriation of earnings or adverse tax consequences (in the reasonable judgment of such Assignor), the Collateral shall include, and the security interest granted by each Assignor shall attach to, such greater percentage of Equity Interests of each Foreign Subsidiary of such Assignor.

 

(c)           The security interest of the Collateral Agent under this Agreement extends to all Collateral which any Assignor may acquire, or with respect to which any Assignor may obtain rights, at any time during the term of this Agreement.

 

Power of Attorney.  Each Assignor hereby constitutes and appoints the Collateral Agent its true and lawful attorney, irrevocably, with full power after the occurrence of and during the continuance of an Event of Default (in the name of such Assignor or otherwise), to act, require, demand, receive, compound and give acquittance for any and all moneys and claims for moneys due or to become due to such Assignor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings which the Collateral Agent may deem to be necessary or advisable to protect the interests of the Secured Creditors, which appointment as attorney is coupled with an interest.

 

GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Each Assignor represents, warrants and covenants, which representations, warranties and covenants shall survive execution and delivery of this Agreement, as follows:

 

Necessary Filings.  All filings, registrations, recordings and other actions necessary or appropriate to create, preserve and perfect the security interest granted by such Assignor to the Collateral Agent hereby in respect of the Collateral have been accomplished (or will be accomplished within 10 days of the Effective Date) and the security interest granted to the Collateral Agent pursuant to this Agreement in and to the Collateral creates a valid and, together with all such filings, registrations, recordings and other actions, a perfected security interest therein prior to the rights of all other Persons therein and subject to no other Liens (other than Permitted Liens) and is entitled to all the rights, priorities and benefits afforded by the Uniform Commercial Code or other relevant law as enacted in any relevant jurisdiction to perfected security interests, in each case to the extent that the Collateral consists of the type of property in which a security interest may be perfected by filing a financing statement under the Uniform Commercial Code as enacted in any relevant jurisdiction or by a filing of a Grant of Security Interest in the respective form attached hereto in the United States Patent and Trademark Office or in the United States Copyright Office.

 

No Liens.  Such Assignor is, and as to all Collateral acquired by it from time to time after the date hereof such Assignor will be, the owner of all Collateral free from any Lien or other right, title or interest of any Person (other than Permitted Liens), and such Assignor shall use commercially reasonable efforts to defend the Collateral against all material claims and demands of all Persons at any time claiming the same or any interest therein adverse to the Collateral Agent.

 

Other Financing Statements.  As of the date hereof, there is no financing statement (or similar statement or instrument of registration under the law of any jurisdiction) covering or purporting to cover any interest of any kind in the Collateral (other than financing statements filed in respect of

 

5

 

Permitted Liens), and so long as the Termination Date has not occurred, such Assignor will not execute or authorize to be filed in any public office any financing statement (or similar statement or instrument of registration under the law of any jurisdiction) or statements relating to the Collateral, except financing statements filed or to be filed in respect of and covering the security interests granted hereby by such Assignor or in connection with Permitted Liens.

 

Legal Names; Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility); Jurisdiction of Organization; Location; Organizational Identification Numbers; Federal Employer Identification Number; Changes Thereto; etc.  The exact legal name of each Assignor, the type of organization of such Assignor, whether or not such Assignor is a Registered Organization, the jurisdiction of organization of such Assignor, such Assignor’s Location, the organizational identification number (if any) of such Assignor, the Federal Employer Identification Number (if any); and whether or not such Assignor is a Transmitting Utility, is listed on Annex A hereto for such Assignor.  Such Assignor shall not change its legal name, its type of organization, its status as a Registered Organization (in the case of a Registered Organization), its status as a Transmitting Utility or as a Person which is not a Transmitting Utility, as the case may be, its jurisdiction of organization, its Location, its organizational identification number (if any), or its Federal Employer Identification Number (if any) from that used on Annex A hereto, except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Secured Debt Agreements and so long as same do not involve (x) a Registered Organization ceasing to constitute same or (y) such Assignor changing its jurisdiction of organization or Location from the United States or a State thereof to a jurisdiction of organization or Location, as the case may be, outside the United States or a State thereof) if (i) it shall have given to the Collateral Agent not less than 15 days’ prior written notice of each change to the information listed on Annex A (as adjusted for any subsequent changes thereto previously made in accordance with this sentence), together with a supplement to Annex A which shall correct all information contained therein for such Assignor, and (ii) in connection with the respective such change or changes, it shall have taken all action reasonably requested by the Collateral Agent to maintain the security interests of the Collateral Agent in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect.  In addition, to the extent that such Assignor does not have an organizational identification number on the date hereof and later obtains one, such Assignor shall promptly thereafter notify the Collateral Agent of such organizational identification number and shall take all actions reasonably satisfactory to the Collateral Agent to the extent necessary to maintain the security interest of the Collateral Agent in the Collateral intended to be granted hereby fully perfected and in full force and effect.

 

Trade Names; Etc.  Such Assignor has or operates in any jurisdiction under, or in the preceding five years has had or has operated in any jurisdiction under, no trade names, fictitious names or other names except its legal name as specified in Annex A and such other trade or fictitious names as are listed on Annex B hereto for such Assignor.  Such Assignor shall not assume or operate in any jurisdiction under any new trade, fictitious or other name until (i) it shall have given to the Collateral Agent not less than 15 days’ written notice of its intention so to do, clearly describing such new name and the jurisdictions in which such new name will be used and providing such other information in connection therewith as the Collateral Agent may reasonably request and (ii) with respect to such new name, it shall have taken all action reasonably requested by the Collateral Agent to maintain the security interest of the Collateral Agent in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect.

 

Certain Significant Transactions.  During the one year period preceding the date of this Agreement, no Person shall have merged or consolidated with or into any Assignor, and no Person shall have liquidated into, or transferred all or substantially all of its assets to, any Assignor, in each case except as described in Annex C hereto.  With respect to any transactions so described in Annex C hereto, the respective Assignor shall have furnished such information with respect to the Person (and the assets of

 

6

 

the Person and locations thereof) which merged with or into or consolidated with such Assignor, or was liquidated into or transferred all or substantially all of its assets to such Assignor, and shall have furnished to the Collateral Agent such UCC lien searches as may have been requested with respect to such Person and its assets, to establish that no security interest (excluding Permitted Liens) continues perfected on the date hereof with respect to any Person described above (or the assets transferred to the respective Assignor by such Person), including without limitation pursuant to Section 9-316(a)(3) of the UCC.

 

Non-UCC Property and Non-Filing Collateral.  (a) The aggregate fair market value (as determined by the Assignors in good faith) of all Collateral of the Assignors of the types described in clauses (1), (2) and (3) of Section 9-311(a) of the UCC does not exceed $1,000,000.  If the aggregate value of all such property at any time owned by all Assignors exceeds $1,000,000, the Assignors shall provide prompt written notice thereof to the Collateral Agent and, upon the request of the Collateral Agent, the Assignors shall promptly (and in any event within 30 days) take such actions (at their own cost and expense) as may be required under the respective United States, State or other laws referenced in Section 9-311(a) of the UCC to perfect the security interests granted herein in any Collateral where the filing of a financing statement does not perfect the security interest in such property in accordance with the provisions of Section 9-311(a) of the UCC other than those assets as to which the Collateral Agent shall determine that the costs of perfection are excessive in relation to the value to be afforded thereby.

 

(b)           The aggregate fair market value of all Collateral (including, without limitation, the aggregate balance of deposits in all Permitted Unperfected Accounts) with respect to which the security interest of the Collateral Agent cannot be perfected by the filing of a financing statement (the “Non-Filing Collateral”) in which the Collateral Agent does not have a perfected security interest does not exceed $1,000,000 (the “Deminimis Collateral”).  If the fair market value of all Non-Filing Collateral with respect to which the Collateral Agent does not have a perfected security interest exceeds $1,000,000, the Assignors shall provide prompt written notice thereof to the Collateral Agent and, upon the request of the Collateral Agent, the Assignors shall promptly (and in any event within 30 days) take such actions (at their own cost and expense) as may be required to perfect the security interests granted herein in any Non-Filing Collateral such that the aggregate fair market value of Non-Filing Collateral in which the Collateral Agent does not have a perfected security interest is less than $1,000,000, excluding those assets as to which the Collateral Agent shall determine that the costs of perfection are excessive in relation to the value to be afforded thereby.  Notwithstanding any other provision of this Agreement to the contrary, the Assignors shall not be required to take actions to perfect the security interest in favor of the Collateral Agent in Deminimis Collateral, and all representations and warranties made by the Assignors with respect to the security interest in the Collateral shall be qualified by this Section 2.7.

 

As-Extracted Collateral; Timber-to-be-Cut.  On the date hereof, such Assignor does not own, or expect to acquire, any property which constitutes, or would constitute, As-Extracted Collateral or Timber-to-be-Cut.  If at any time after the date of this Agreement such Assignor owns, acquires or obtains rights to any As-Extracted Collateral or Timber-to-be-Cut, such Assignor shall furnish the Collateral Agent with prompt written notice thereof (which notice shall describe in reasonable detail the As-Extracted Collateral and/or Timber-to-be-Cut and the locations thereof) and shall take all actions as may be deemed reasonably necessary or desirable by the Collateral Agent to perfect the security interest of the Collateral Agent therein.

 

Collateral in the Possession of a Bailee.  If any Inventory or other Goods are at any time in the possession of a bailee, such Assignor shall promptly notify the Collateral Agent thereof and, if requested by the Collateral Agent, shall use its commercially reasonable efforts to promptly obtain an acknowledgment from such bailee, in form and substance reasonably satisfactory to the Collateral Agent, that the bailee holds such Collateral for the benefit of the Collateral Agent and shall act upon the instructions of the Collateral Agent, without the further consent of such Assignor. The Collateral Agent

 

7

 

agrees with such Assignor that the Collateral Agent shall not give any such instructions unless an Event of Default has occurred and is continuing or would occur after taking into account any action by the respective Assignor with respect to any such bailee.

 

Recourse.  This Agreement is made with full recourse to each Assignor and pursuant to and upon all the warranties, representations, covenants and agreements on the part of such Assignor contained herein, in the Secured Debt Agreements and otherwise in writing in connection herewith or therewith.

 

SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS;

CHATTEL PAPER AND CERTAIN OTHER COLLATERAL

 

Additional Representations and Warranties.  As of the time when each of its Accounts arises, each Assignor shall be deemed to have represented and warranted that each such Account, and all records, papers and documents relating thereto (if any) are genuine and what they purport to be, and that all papers and documents (if any) relating thereto (i) will, to the knowledge of such Assignor, represent the genuine, legal, valid and binding obligation of the account debtor evidencing indebtedness unpaid and owed by the respective account debtor arising out of the performance of labor or services or the sale or lease and delivery of the merchandise listed therein, or both, (ii) will be the only original writings evidencing and embodying such obligation of the account debtor named therein (other than copies created for general accounting purposes), (iii) will, to the knowledge of such Assignor, evidence true and valid obligations, enforceable in accordance with their respective terms, and (iv) will be in compliance and will conform in all material respects with all applicable federal, state and local laws and applicable laws of any relevant foreign jurisdiction.

 

Maintenance of Records.  Each Assignor will keep and maintain at its own cost and expense accurate records of its Accounts and Contracts, including, but not limited to, originals of all documentation (including each Contract) with respect thereto, records of all payments received, all credits granted thereon, all merchandise returned and all other dealings therewith, and such Assignor will make the same available on such Assignor’s premises to the Collateral Agent for inspection, at such Assignor’s own cost and expense, at any and all reasonable times upon prior notice to such Assignor and otherwise in accordance with the Credit Agreement.

 

Direction to Account Debtors; Contracting Parties; etc. Upon the occurrence and during the continuance of an Event of Default, if the Collateral Agent so directs any Assignor, such Assignor agrees (x) to cause all payments on account of the Accounts and Contracts to be made directly to the Cash Collateral Account, (y) that the Collateral Agent may, at its option, directly notify the obligors with respect to any Accounts and/or under any Contracts to make payments with respect thereto as provided in the preceding clause (x), and (z) that the Collateral Agent may enforce collection of any such Accounts and Contracts and may adjust, settle or compromise the amount of payment thereof, in the same manner and to the same extent as such Assignor.  Without notice to or assent by any Assignor, the Collateral Agent may, upon the occurrence and during the continuance of an Event of Default, apply any or all amounts then in, or thereafter deposited in, the Cash Collateral Account toward the payment of the Obligations in the manner provided in Section 6.4 of this Agreement.  The reasonable costs and expenses of collection (including reasonable attorneys’ fees), whether incurred by an Assignor or the Collateral Agent, shall be borne by the relevant Assignor.  The Collateral Agent shall deliver a copy of each notice referred to in the preceding clause (y) to the relevant Assignor, provided that (x) the failure by the Collateral Agent to so notify such Assignor shall not affect the effectiveness of such notice or the other rights of the Collateral Agent created by this Section 3.3 and (y) no such notice shall be required if an

 

8

 

Event of Default of the type described in Section 11.05 of the Credit Agreement has occurred and is continuing.

 

Modification of Terms; etc.  Except in accordance with such Assignor’s reasonable business judgment or as permitted by Section 3.5, no Assignor shall rescind or cancel any indebtedness evidenced by any Account or under any Contract, or modify any material term thereof or make any material adjustment with respect thereto, or extend or renew the same, or compromise or settle any material dispute, claim, suit or legal proceeding relating thereto, or sell any Account or Contract, or interest therein, without the prior written consent of the Collateral Agent not to be unreasonably withheld.

 

Collection.  Each Assignor shall endeavor in accordance with reasonable business practices to cause to be collected from the account debtor named in each of its Accounts or obligor under any Contract, as and when due (including, without limitation, amounts which are delinquent, such amounts to be collected in accordance with generally accepted lawful collection procedures) any and all amounts owing under or on account of such Account or Contract, and apply forthwith upon receipt thereof all such amounts as are so collected to the outstanding balance of such Account or under such Contract.  Except as otherwise directed by the Collateral Agent after the occurrence and during the continuation of an Event of Default, any Assignor may allow in the ordinary course of business as adjustments to amounts owing under its Accounts and Contracts (i) an extension or renewal of the time or times of payment, or settlement for less than the total unpaid balance, which such Assignor finds appropriate in accordance with reasonable business judgment and (ii) a refund or credit due as a result of returned or damaged merchandise or improperly performed services or for other reasons which such Assignor finds appropriate in accordance with reasonable business judgment.  The reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees) of collection, whether incurred by an Assignor or the Collateral Agent, shall be borne by the relevant Assignor.

 

Instruments.  If any Assignor owns or acquires Instruments constituting Collateral that are in the aggregate in excess of $1,000,000 (other than (x) checks and other payment instruments received and collected in the ordinary course of business and (y) any Instrument subject to pledge pursuant to the Pledge Agreement), such Assignor will within 10 Business Days notify the Collateral Agent thereof, and upon request by the Collateral Agent will promptly deliver such Instrument to the Collateral Agent appropriately endorsed to the order of the Collateral Agent.

 

Assignors Remain Liable Under Accounts.  Anything herein to the contrary notwithstanding, the Assignors shall remain liable under each of the Accounts to observe and perform all of the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise to such Accounts.  Neither the Collateral Agent nor any other Secured Creditor shall have any obligation or liability under any Account (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any other Secured Creditor of any payment relating to such Account pursuant hereto, nor shall the Collateral Agent or any other Secured Creditor be obligated in any manner to perform any of the obligations of any Assignor under or pursuant to any Account (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 them or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto), to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to them or to which they may be entitled at any time or times.

 

Assignors Remain Liable Under Contracts.  Anything herein to the contrary notwithstanding, the Assignors shall remain liable under each of the Contracts to observe and perform all of the conditions and obligations to be observed and performed by them thereunder, all in accordance with and pursuant to the terms and provisions of each Contract.  Neither the Collateral Agent nor any

 

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other Secured Creditor shall have any obligation or liability under any Contract by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any other Secured Creditor of any payment relating to such Contract pursuant hereto, nor shall the Collateral Agent or any other Secured Creditor be obligated in any manner to perform any of the obligations of any Assignor under or pursuant to any Contract, to make any payment, to make any inquiry as to the nature or the sufficiency of any performance by any party under any Contract, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to them or to which they may be entitled at any time or times.

 

Deposit Accounts; Etc.  (a) No Assignor maintains, or at any time after the date of this Agreement shall establish or maintain, any demand, time, savings, passbook or similar account, except for (x) such accounts maintained with a bank (as defined in Section 9-102 of the UCC) whose jurisdiction (determined in accordance with Section 9-304 of the UCC) is within a State of the United States or (y) such accounts listed on Annex D hereto and in existence on the date hereof and any new Permitted Unperfected Account acceptable to the Collateral Agent in its sole discretion, in each case, that are maintained with a bank (as defined in Section 9-102 of the UCC) whose jurisdiction (determined in accordance with Section 9-304 of the UCC) is outside of the United States. Annex D hereto accurately sets forth, as of the date of this Agreement, for each Assignor, each Deposit Account maintained by such Assignor (including a description thereof and the respective account number), the name of the respective bank with which such Deposit Account is maintained, and the jurisdiction of the respective bank with respect to such Deposit Account.  For each Deposit Account (other than a Permitted Unperfected Account, the Cash Collateral Account or any other Deposit Account maintained with the Collateral Agent), the respective Assignor shall cause the bank with which the Deposit Account is maintained to execute and deliver to the Collateral Agent, within 30 days after the date of this Agreement (as such date may be extended from time to time by the Collateral Agent in its sole discretion) or, if later, at the time of the establishment of the respective Deposit Account, a “control agreement” in form and substance reasonably acceptable to the Collateral Agent.  If any bank with which a Deposit Account is maintained refuses to, or does not, enter into such a “control agreement”, then the respective Assignor shall promptly (and in any event within 30 days after the date of this Agreement (as such date may be extended from time to time by the Collateral Agent in its sole discretion) or, if later, 30 days after the establishment of such account (as such date may be extended from time to time by the Collateral Agent in its sole discretion)) close the respective Deposit Account and transfer all balances therein to the Cash Collateral Account or another Deposit Account meeting the requirements of this Section 3.9.  If any bank with which a Deposit Account (other than a Permitted Unperfected Account) is maintained refuses to subordinate all its claims with respect to such Deposit Account to the Collateral Agent’s security interest therein on terms satisfactory to the Collateral Agent, then the Collateral Agent, at its option, may (x) require that such Deposit Account be terminated in accordance with the immediately preceding sentence or (y) agree to a “control agreement” without such subordination, provided that in such event the Collateral Agent may at any time, at its option, subsequently require that such Deposit Account be terminated (within 30 days after notice from the Collateral Agent (as such time period may be extended from time to time by the Collateral Agent in its sole discretion)) in accordance with the requirements of the immediately preceding sentence.

 

(b) After the date of this Agreement, no Assignor shall establish any new demand, time, savings, passbook or similar account, except for Deposit Accounts established and maintained with banks and meeting the requirements of preceding clause (a).  At the time any such Deposit Account is established, the appropriate “control agreement” shall be entered into in accordance with the requirements of preceding clause (a) and the respective Assignor shall furnish to the Collateral Agent a supplement to Annex D hereto containing the relevant information with respect to the respective Deposit Account and the bank with which same is established.

 

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Letter-of-Credit Rights.  If any Assignor is at any time a beneficiary under a letter of credit with a stated amount of $1,000,000 or more, such Assignor shall promptly notify the Collateral Agent thereof and, at the request of the Collateral Agent, such Assignor shall, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, use commercially reasonable efforts to (i) arrange for the issuer and any confirmer of such letter of credit to consent to an assignment to the Collateral Agent of the proceeds of any drawing under such letter of credit or (ii) arrange for the Collateral Agent to become the transferee beneficiary of such letter of credit, with the Collateral Agent agreeing, in each case, that the proceeds of any drawing under the letter of credit are to be (x) remitted to such Assignor within one Business Day if no Event of Default has occurred and is continuing, or (y) applied as provided in this Agreement after the occurrence and during the continuance of an Event of Default.

 

Commercial Tort Claims.  All Commercial Tort Claims of each Assignor in existence on the date of this Agreement are described in Annex E hereto.  If any Assignor shall at any time after the date of this Agreement acquire a Commercial Tort Claim in an amount (taking the greater of the aggregate claimed damages thereunder or the reasonably estimated value thereof) of $1,000,000 or more, such Assignor shall promptly notify the Collateral Agent thereof in a writing signed by such Assignor and describing the details thereof and shall grant to the Collateral Agent in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to the Collateral Agent.

 

Chattel Paper.  Upon the request of the Collateral Agent made at any time or from time to time, each Assignor shall promptly furnish to the Collateral Agent a list of all Electronic Chattel Paper held or owned by such Assignor.  Furthermore, if requested by the Collateral Agent, each Assignor shall promptly take all actions which are reasonably practicable so that the Collateral Agent has “control” of all Electronic Chattel Paper in accordance with the requirements of Section 9-105 of the UCC.  Each Assignor will promptly (and in any event within 10 days) following any request by the Collateral Agent, deliver all of its Tangible Chattel Paper to the Collateral Agent.

 

Further Actions.  Each Assignor will, at its own expense, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements, certificates and other assurances or instruments and take such further steps, including any and all actions as may be necessary or required under the Federal Assignment of Claims Act, relating to its Accounts, Contracts, Instruments and other property or rights covered by the security interest hereby granted, as the Collateral Agent may reasonably require.

 

SPECIAL PROVISIONS CONCERNING INTELLECTUAL PROPERTY

 

Additional Representations and Warranties.  Each of Annexes F, G, and H, respectively, contains a complete and accurate list of all (a) registered Marks and applications therefor, and material unregistered Marks; (b) Domain Names; (c) issued Patents and applications therefor owned by each Assignor; and (d) registered Copyrights and applications therefore; in each case indicating the owner, title or mark, application or registration number, and accompanying dates. Each Assignor represents and warrants that it is the true and lawful owner of and has the right to use the Marks, Domain Names, Patents, and Copyrights listed in Annexes F, G, and H hereto for such Assignor.  Each Assignor represents and warrants that all registrations and issuances listed in Annexes F, G, and H are valid, subsisting, have not been canceled and that such Assignor is not aware of any third-party claim that any of said registrations or issuances is invalid or unenforceable, and is not aware that there is any reason that

 

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any of said registrations or issuances is invalid or unenforceable, and is not aware that there is any reason that any application for registration or issuance listed in Annexes F, G, or H will not mature into a registration or issuance. To each Assignor’s knowledge, no third party is infringing, misappropriating, or otherwise violating such Assignor’s rights in any Mark, Domain Name, Patent, Copyright, Trade Secret, or other intellectual property.  Each Assignor agrees to prosecute diligently in accordance with reasonable business practices any Person infringing, misappropriating, or otherwise violating such Assignor’s rights in any Mark, Domain Name, Patent, Copyright, Trade Secret, or other intellectual property in any manner that could reasonably be expected to have a Material Adverse Effect.

 

Non-Infringement.  Each Assignor represents and warrants that, except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect, each Assignor owns, is licensed to use or otherwise has the right to use, all marks, domain names, patents, trademarks, trade secrets, and other intellectual property that it uses.  Each Assignor further warrants that it has no knowledge of any third party claim received by it that such Assignor or any aspect of such Assignor’s present or contemplated business operations (i) infringes or will infringe any trademark, service mark, trade name, patent, or copyright, (ii) has misappropriated any trade secret or other proprietary information, or (iii) otherwise violates or will violate any other intellectual property right of any other Person other than as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

Licenses and Assignments.  Except as otherwise permitted by the Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any right under any Mark, Domain Name, Patent, Copyright, or Trade Secret absent prior written approval of the Collateral Agent.

 

Notification of Infringements.  Each Assignor agrees, promptly upon learning thereof, to notify the Collateral Agent in writing of the name and address of, and to furnish such pertinent information that may be available with respect to, any party who such Assignor believes is, or may be, infringing, misappropriating, or otherwise violating any of such Assignor’s rights in and to any Mark, Domain Name, Patent, Copyright, Trade Secret, or other intellectual property in any manner that could reasonably be expected to have a Material Adverse Effect, or with respect to any party claiming that any Assignor or any aspect of such Assignor’s present or contemplated business infringes, misappropriates, or otherwise violates in any material respect any property right of that party.

 

Preservation of Marks and Domain Names.  Each Assignor agrees to use its Marks and Domain Names that are material to such Assignor’s business in interstate commerce during the time in which this Agreement is in effect and to take all such other actions as are reasonably necessary to preserve such Marks as trademarks or service marks under the laws of the United States (other than any such Marks which in the reasonable business judgment of such Assignor are not necessary in its business or operations).

 

Maintenance of Registrations and Issuances; Prosecution of Applications.  Each Assignor shall, at its own expense, (a) diligently process all documents reasonably required to maintain all registrations for Marks, Domain Name, and Copyrights, and all issued Patents, including but not limited to affidavits of use and applications for renewals of registration in the United States Patent and Trademark Office for all of its material registered Marks and Copyrights and issued Patents, and (b) diligently prosecute all material applications for Marks, Patents, and Copyrights listed in Annexes F, G, and H hereto for such Assignor; and in each case, shall pay all fees and disbursements in connection therewith and shall not abandon any such filing or affidavit of use, any such application of renewal, or any other such application prior to the exhaustion of all administrative and judicial remedies without prior written consent of the Collateral Agent (other than with respect to registrations and applications deemed by such Assignor in its reasonable business judgment to be no longer prudent to pursue).

 

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Future Intellectual Property Rights.  If any Assignor files a Patent application or an application for registration of any Mark or Copyright, or any of the foregoing is acquired by any Assignor, or any Mark or Copyright registration or Patent is issued hereafter to any Assignor as a result of any application now or hereafter pending before the United States Patent and Trademark Office or the United States Copyright Office, or any Domain Name is registered by Assignor, or any of the foregoing is acquired by any Assignor, then on or prior to the date of the delivery of the immediately proceeding compliance certificate required to be delivered pursuant to Section 9.01(e) of the Credit Agreement, such Assignor shall deliver to the Collateral Agent a copy of such registration certificate or similar indicia of ownership, and a grant of a security interest in such Mark, Domain Name, Patent, or Copyright to the Collateral Agent and at the expense of such Assignor, confirming the grant of a security interest in such Mark, Domain Name, Patent, or Copyright to the Collateral Agent hereunder, the form of such security to be substantially in the form of Annex I hereto or in such other form as may be reasonably satisfactory to the Collateral Agent.

 

Remedies.  If an Event of Default shall occur and be continuing, the Collateral Agent may, by written notice to the relevant Assignor, take any or all of the following actions:  (i) declare the entire right, title and interest of such Assignor in and to each of the Marks,  Domain Names, Patents, Copyrights, and Trade Secrets, together with all rights of protection to the same, vested in the Collateral Agent for the benefit of the Secured Creditors, in which event such rights, title and interest shall immediately vest, in the Collateral Agent for the benefit of the Secured Creditors, and the Collateral Agent shall be entitled to exercise the power of attorney referred to in Section 4.1 hereof to execute, cause to be acknowledged and notarized and record said absolute assignment with the applicable agency or registrar; (ii) take and use or sell the Marks or Domain Names and the goodwill of such Assignor’s business symbolized by the Marks or Domain Names and the right to carry on the business and use the assets of such Assignor in connection with which the Marks or Domain Names have been used; (iii) take and use or sell the Copyrights, Patents, and Trade Screts; and (iv) direct such Assignor to refrain, in which event such Assignor shall refrain, from using the Marks or Domain Names in any manner whatsoever, directly or indirectly, and such Assignor shall execute such further documents that the Collateral Agent may reasonably request to further confirm this and to transfer ownership of the Marks, Domain Names, Patents, Copyrights, and Trade Secrets and registrations and any pending trademark applications in the United States Patent and Trademark Office, the United States Copyright Office, or applicable Domain Name registrar to the Collateral Agent.   Each Assignor hereby grants to the Collateral Agent an absolute power of attorney to sign, upon the occurrence and during the continuance of an Event of Default, any document which may be required by the United States Patent and Trademark Office, United States Copyright Office or similar registrar in order to effect an absolute assignment of all right, title and interest in each Mark, Domain Name, Patent, and/or Copyright and record the same.

 

PROVISIONS CONCERNING ALL COLLATERAL

 

Protection of Collateral Agent’s Security.  Except as otherwise permitted by the Secured Debt Agreements, each Assignor will do nothing to impair the rights of the Collateral Agent in the Collateral.  Each Assignor will at all times maintain insurance, at such Assignor’s own expense to the extent and in the manner provided in the Secured Debt Agreements.  Except to the extent otherwise permitted to be retained by such Assignor or applied by such Assignor pursuant to the terms of the Secured Debt Agreements, the Collateral Agent shall, at the time any proceeds of such insurance are distributed to the Secured Creditors, apply such proceeds in accordance with Section 6.4 hereof.  Each Assignor assumes all liability and responsibility in connection with the Collateral acquired by it and the liability of such Assignor to pay the Obligations shall in no way be affected or diminished by reason of

 

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the fact that such Collateral may be lost, destroyed, stolen, damaged or for any reason whatsoever unavailable to such Assignor.

 

Warehouse Receipts Non-Negotiable.  To the extent practicable, each Assignor agrees that if any warehouse receipt or receipt in the nature of a warehouse receipt is issued with respect to any of its Inventory, such Assignor shall request that such warehouse receipt or receipt in the nature thereof shall not be “negotiable” (as such term is used in Section 7-104 of the Uniform Commercial Code as in effect in any relevant jurisdiction or under other relevant law).

 

Additional Information.  Each Assignor will, at its own expense, from time to time upon the reasonable request of the Collateral Agent, promptly (and in any event within 15 Business Days after its receipt of the respective request) furnish to the Collateral Agent such information with respect to the Collateral (including the identity of the Collateral or such components thereof as may have been requested by the Collateral Agent, the value and location of such Collateral, etc.) as may be requested by the Collateral Agent.  Without limiting the forgoing, each Assignor agrees that it shall promptly (and in any event within 15 Business Days after its receipt of the respective request) furnish to the Collateral Agent such updated Annexes hereto as may from time to time be reasonably requested by the Collateral Agent.

 

Further Actions.  Each Assignor will, at its own expense and upon the reasonable request of the Collateral Agent, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such lists, descriptions and designations of its Collateral, warehouse receipts, receipts in the nature of warehouse receipts, bills of lading, documents of title, vouchers, invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements, certificates, reports and other assurances or instruments and take such further steps relating to the Collateral and other property or rights covered by the security interest hereby granted, which the Collateral Agent deems reasonably appropriate or advisable to perfect, preserve or protect its security interest in the Collateral.

 

Financing Statements.  Each Assignor agrees to execute and deliver to the Collateral Agent such financing statements, in form reasonably acceptable to the Collateral Agent, as the Collateral Agent may from time to time reasonably request or as are reasonably necessary or desirable in the opinion of the Collateral Agent to establish and maintain a valid, enforceable, perfected security interest in the Collateral as provided herein and the other rights and security contemplated hereby.  Each Assignor will pay any applicable filing fees, recordation taxes and related expenses relating to its Collateral.  Each Assignor hereby authorizes the Collateral Agent to file any such financing statements without the signature of such Assignor where permitted by law (and such authorization includes describing the Collateral as “all assets” of such Assignor).

 

REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

 

Remedies; Obtaining the Collateral Upon Default. Each Assignor agrees that, if any Event of Default shall have occurred and be continuing, then and in every such case, the Collateral Agent, in addition to any rights now or hereafter existing under applicable law and under the other provisions of this Agreement, shall have all rights as a secured creditor under any UCC, and such additional rights and remedies to which a secured creditor is entitled under the laws in effect in all relevant jurisdictions and may:

 

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personally, or by agents or attorneys, immediately take possession of the Collateral or any part thereof, from such Assignor or any other Person who then has possession of any part thereof with or without notice or process of law, and for that purpose may enter upon such Assignor’s premises where any of the Collateral is located and remove the same and use in connection with such removal any and all services, supplies, aids and other facilities of such Assignor;

 

instruct the obligor or obligors on any agreement, instrument or other obligation (including, without limitation, the Accounts and the Contracts) constituting the Collateral to make any payment required by the terms of such agreement, instrument or other obligation directly to the Collateral Agent and may exercise any and all remedies of such Assignor in respect of such Collateral;

 

instruct all banks which have entered into a control agreement with the Collateral Agent to transfer all monies, securities and instruments held by such depositary bank to the Cash Collateral Account;

 

sell, assign or otherwise liquidate any or all of the Collateral or any part thereof in accordance with Section 6.2 hereof, or direct such Assignor to sell, assign or otherwise liquidate any or all of the Collateral or any part thereof, and, in each case, take possession of the proceeds of any such sale or liquidation;

 

take possession of the Collateral or any part thereof, by directing such Assignor in writing to deliver the same to the Collateral Agent at any reasonable place or places designated by the Collateral Agent, in which event such Assignor shall at its own expense:

 

(x)            forthwith cause the same to be moved to the place or places so designated by the Collateral Agent and there delivered to the Collateral Agent;

 

(y)           store and keep any Collateral so delivered to the Collateral Agent at such place or places pending further action by the Collateral Agent as provided in Section 6.2 hereof; and

 

(z)            while the Collateral shall be so stored and kept, provide such security and maintenance services as shall be reasonably necessary to protect the same and to preserve and maintain it in good condition;

 

license or sublicense, whether on an exclusive or nonexclusive basis, any Marks, Domain Names, Patents or Copyrights included in the Collateral for such term and on such conditions and in such manner as the Collateral Agent shall in its sole judgment determine;

 

apply any monies constituting Collateral or proceeds thereof in accordance with the provisions of Section 6.4; and

 

take any other action as specified in clauses (1) through (5), inclusive, of Section 9-607 of the UCC;

 

it being understood that each Assignor’s obligation so to deliver the Collateral is of the essence of this Agreement and that, accordingly, upon application to a court of equity having jurisdiction, the Collateral

 

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Agent shall be entitled to a decree requiring specific performance by such Assignor of said obligation.  By accepting the benefits of this Agreement and each other Security Document, the Secured Creditors expressly acknowledge and agree that this Agreement and each other Security Document may be enforced only by the action of the Collateral Agent acting upon the instructions of the Required Secured Creditors and that no other Secured Creditor shall have any right individually to seek to enforce or to enforce this Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Collateral Agent for the benefit of the Secured Creditors upon the terms of this Agreement and the other Security Documents.

 

Remedies; Disposition of the Collateral.  (a)   If any Event of Default shall have occurred and be continuing, then any Collateral repossessed by the Collateral Agent under or pursuant to Section 6.1 hereof and any other Collateral whether or not so repossessed by the Collateral Agent, may be sold, assigned, leased or otherwise disposed of under one or more contracts or as an entirety, and without the necessity of gathering at the place of sale the property to be sold, and in general in such manner, at such time or times, at such place or places and on such terms as the Collateral Agent may, in compliance with any mandatory requirements of applicable law, determine to be commercially reasonable.  Any of the Collateral may be sold, leased or otherwise disposed of, in the condition in which the same existed when taken by the Collateral Agent or after any overhaul or repair at the expense of the relevant Assignor which the Collateral Agent shall determine to be commercially reasonable.  Any such sale, lease or other disposition may be effected by means of a public disposition or private disposition, effected in accordance with the applicable requirements (in each case if and to the extent applicable) of Sections 9-610 through 9-613 of the UCC and/or such other mandatory requirements of applicable law as may apply to the respective disposition.  The Collateral Agent may, without notice or publication, adjourn any public or private disposition or cause the same to be adjourned from time to time by announcement at the time and place fixed for the disposition, and such disposition may be made at any time or place to which the disposition may be so adjourned.  To the extent permitted by any such requirement of law, the Collateral Agent may bid for and become the purchaser (and may pay all or any portion of the purchase price by crediting Obligations against the purchase price) of the Collateral or any item thereof, offered for disposition in accordance with this Section 6.2 without accountability to the relevant Assignor.  If, under applicable law, the Collateral Agent shall be permitted to make disposition of the Collateral within a period of time which does not permit the giving of notice to the relevant Assignor as hereinabove specified, the Collateral Agent need give such Assignor only such notice of disposition as shall be required by such applicable law.  Each Assignor agrees to do or cause to be done all such other acts and things as may be reasonably necessary to make such disposition or dispositions of all or any portion of the Collateral valid and binding and in compliance with any and all applicable laws, regulations, orders, writs, injunctions, decrees or awards of any and all courts, arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction over any such sale or sales, all at such Assignor’s expense.

 

(b)           Without limiting the generality of the foregoing, if an Event of Default shall have occurred and be continuing, each of the Assignors shall take any action which the Collateral Agent may reasonably request in order to effect the transfer of control or assignment to the Collateral Agent, or to such one or more third Persons as such Assignor may designate, or to a combination of the foregoing, of all Collateral controlled by such Assignor.

 

Waiver of Claims.  Except as otherwise provided in this Agreement, EACH ASSIGNOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH THE COLLATERAL AGENT’S TAKING POSSESSION OR THE COLLATERAL AGENT’S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES, and each Assignor hereby further waives, to the extent permitted by law:

 

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all damages occasioned by such taking of possession or any such disposition except any damages which are the direct result of the Collateral Agent’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision);

 

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

 

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

 

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

 

Application of Proceeds.  (a) All moneys collected by the Collateral Agent (or, to the extent the Pledge Agreement or any other Security Document requires proceeds of collateral under such other Security Document to be applied in accordance with the provisions of this Agreement, the Pledgee or collateral agent under such other Security Document) upon any sale or other disposition of the Collateral, together with all other moneys received by the Collateral Agent hereunder, shall be applied as follows:

 

first, to the payment of all amounts owing the Collateral Agent of the type described in clauses (iii), (iv) and (v) of the definition of “Obligations”;

 

second, to the extent proceeds remain after the application pursuant to the preceding clause (i), to the payment of all amounts owing to any Agent of the type described in clauses (v) and (vi) of the definition of “Obligations”;

 

third, to the extent proceeds remain after the application pursuant to the preceding clause (i) and (ii) an amount equal to the outstanding Primary Obligations shall be paid to the Secured Creditors as provided in Section 6.4(e) hereof, with each Secured Creditor receiving an amount equal to its outstanding Primary Obligations or, if the proceeds are insufficient to pay in full all such Primary Obligations, its Pro  Rata Share of the amount remaining to be distributed;

 

fourth, to the extent proceeds remain after the application pursuant to the preceding clauses (i) through (iii), inclusive, an amount equal to the outstanding Secondary Obligations shall be paid to the Secured Creditors as provided in Section 6.4(e) hereof, with each Secured Creditor receiving an amount equal to its outstanding Secondary Obligations or, if the proceeds are insufficient to pay in full all such Secondary Obligations, its Pro  Rata Share of the amount remaining to be distributed; and

 

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fifth, to the extent proceeds remain after the application pursuant to the preceding clauses (i) through (iv), inclusive, and following the termination of this Agreement pursuant to Section 9.8(a) hereof, to the relevant Assignor or to whomever may be lawfully entitled to receive such surplus.

 

(b)           For purposes of this Agreement, (x) “Pro Rata Share” shall mean, when calculating a Secured Creditor’s portion of any distribution or amount, that amount (expressed as a percentage) equal to a fraction the numerator of which is the then unpaid amount of such Secured Creditor’s Primary Obligations or Secondary Obligations, as the case may be, and the denominator of which is the then outstanding amount of all Primary Obligations or Secondary Obligations, as the case may be, (y) “Primary Obligations” shall mean (i) in the case of the Credit Document Obligations, all principal of, premium, fees and interest on, all Loans, all Unpaid Drawings, the Stated Amount of all outstanding Letters of Credit and all Fees and (ii) in the case of the Other Obligations, all amounts due under each Secured Hedging Agreement (other than indemnities, fees (including, without limitation, attorneys’ fees) and similar obligations and liabilities) and (z) “Secondary Obligations” shall mean all Obligations other than Primary Obligations.

 

(c)           When payments to Secured Creditors are based upon their respective Pro  Rata Shares, the amounts received by such Secured Creditors hereunder shall be applied (for purposes of making determinations under this Section 6.4 only) (i) first, to their Primary Obligations and (ii) second, to their Secondary Obligations.  If any payment to any Secured Creditor of its Pro  Rata Share of any distribution would result in overpayment to such Secured Creditor, such excess amount shall instead be distributed in respect of the unpaid Primary Obligations or Secondary Obligations, as the case may be, of the other Secured Creditors, with each Secured Creditor whose Primary Obligations or Secondary Obligations, as the case may be, have not been paid in full to receive an amount equal to such excess amount multiplied by a fraction the numerator of which is the unpaid Primary Obligations or Secondary Obligations, as the case may be, of such Secured Creditor and the denominator of which is the unpaid Primary Obligations or Secondary Obligations, as the case may be, of all Secured Creditors entitled to such distribution.

 

(d)           Each of the Secured Creditors, by their acceptance of the benefits hereof and of the other Credit Documents, agrees and acknowledges that if the Lender Creditors receive a distribution on account of undrawn amounts with respect to Letters of Credit issued under the Credit Agreement (which shall only occur after all outstanding Revolving Loans and Swingline Loans under the Credit Agreement and Unpaid Drawings have been paid in full), such amounts shall be paid to the Administrative Agent under the Credit Agreement and held by it, for the equal and ratable benefit of the Lender Creditors, as cash security for the repayment of Obligations owing to the Lender Creditors as such.  If any amounts are held as cash security pursuant to the immediately preceding sentence, then upon the termination of all outstanding Letters of Credit under the Credit Agreement, and after the application of all such cash security to the repayment of all Obligations owing to the Lender Creditors after giving effect to the termination of all such Letters of Credit, if there remains any excess cash, such excess cash shall be returned by the Administrative Agent to the Collateral Agent for distribution in accordance with Section 6.4(a) hereof.

 

(e)           All payments required to be made hereunder shall be made (x) if to the Lender Creditors, to the Administrative Agent for the account of the Lender Creditors and (y) if to the Other Creditors, to the trustee, paying agent or other similar representative (each, a “Representative”) for the Other Creditors or, in the absence of such a Representative, directly to the Other Creditors.

 

(f)            For purposes of applying payments received in accordance with this Section 6.4, the Collateral Agent shall be entitled to rely upon (i) the Administrative Agent and (ii) the Representative

 

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or, in the absence of such a Representative, upon the Other Creditors for a determination (which the Administrative Agent, each Representative and the Other Creditors agree (or shall agree) to provide upon request of the Collateral Agent) of the outstanding Primary Obligations and Secondary Obligations owed to the Lender Creditors or the Other Creditors, as the case may be.  Unless it has received written notice from a Lender Creditor or an Other Creditor to the contrary, the Administrative Agent and each Representative, in furnishing information pursuant to the preceding sentence, and the Collateral Agent, in acting hereunder, shall be entitled to assume that no Secondary Obligations are outstanding.  Unless it has written notice from an Other Creditor to the contrary, the Collateral Agent, in acting hereunder, shall be entitled to assume that no Secured Hedging Agreements are in existence.

 

(g)           It is understood that the Assignors shall remain jointly and severally liable to the extent of any deficiency between the amount of the proceeds of the Collateral and the aggregate amount of the Obligations.

 

Remedies Cumulative.  Each and every right, power and remedy hereby specifically given to the Collateral Agent shall be in addition to every other right, power and remedy specifically given to the Collateral Agent under this Agreement, the other Secured Debt Agreements or now or hereafter existing at law, in equity or by statute and each and every right, power and remedy whether specifically herein given or otherwise existing may be exercised from time to time or simultaneously and as often and in such order as may be deemed expedient by the Collateral Agent.  All such rights, powers and remedies shall be cumulative and the exercise or the beginning of the exercise of one shall not be deemed a waiver of the right to exercise any other or others.  No delay or omission of the Collateral Agent in the exercise of any such right, power or remedy and no renewal or extension of any of the Obligations shall impair any such right, power or remedy or shall be construed to be a waiver of any Default or Event of Default or an acquiescence thereof.  No notice to or demand on any Assignor in any case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Collateral Agent to any other or further action in any circumstances without notice or demand.  In the event that the Collateral Agent shall bring any suit to enforce any of its rights hereunder and shall be entitled to judgment, then in such suit the Collateral Agent may recover reasonable expenses, including reasonable attorneys’ fees, and the amounts thereof shall be included in such judgment.

 

Discontinuance of Proceedings.  In case the Collateral Agent shall have instituted any proceeding to enforce any right, power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Collateral Agent, then and in every such case the relevant Assignor, the Collateral Agent and each holder of any of the Obligations shall be restored to their former positions and rights hereunder with respect to the Collateral subject to the security interest created under this Agreement, and all rights, remedies and powers of the Collateral Agent shall continue as if no such proceeding had been instituted.

 

INDEMNITY

 

Indemnity.  (a)  Each Assignor jointly and severally agrees to indemnify, reimburse and hold the Collateral Agent, each other Secured Creditor, in each case in its capacity as such, and their respective successors, assigns, employees, affiliates and agents (hereinafter in this Section 7.1 referred to individually as “Indemnitee,” and collectively as “Indemnitees”) harmless from any and all liabilities, obligations, damages, injuries, penalties, claims, demands, actions, suits, judgments and any and all costs, expenses or disbursements (including reasonable attorneys’ fees and expenses) (for the purposes of this

 

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Section 7.1 the foregoing are collectively called “expenses”) of whatsoever kind and nature imposed on, asserted against or incurred by any of the Indemnitees in any way relating to or arising out of this Agreement, any other Secured Debt Agreement or any other document executed in connection herewith or therewith or in any other way connected with the administration of the transactions contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to or arising out of the manufacture, ownership, ordering, purchase, delivery, control, acceptance, lease, financing, possession, operation, condition, sale, return or other disposition, or use of the Collateral (including, without limitation, latent or other defects, whether or not discoverable), the violation of the laws of any country, state or other governmental body or unit, any tort (including, without limitation, claims arising or imposed under the doctrine of strict liability, or for or on account of injury to or the death of any Person (including any Indemnitee), or property damage), or contract claim; provided that no Indemnitee shall be indemnified pursuant to this Section 7.1(a) for losses, damages or liabilities to the extent caused by the gross negligence or willful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision).  Each Assignor agrees that upon written notice by any Indemnitee of the assertion of such a liability, obligation, damage, injury, penalty, claim, demand, action, suit or judgment, the relevant Assignor shall assume full responsibility for the defense thereof.  Each Indemnitee agrees to use its best efforts to promptly notify the relevant Assignor of any such assertion of which such Indemnitee has knowledge.

 

(b)           Without limiting the application of Section 7.1(a) hereof, each Assignor agrees, jointly and severally, to pay or reimburse the Collateral Agent for any and all reasonable fees, costs and expenses of whatever kind or nature incurred in connection with the creation, preservation or protection of the Collateral Agent’s Liens on, and security interest in, the Collateral, including, without limitation, all fees and taxes in connection with the recording or filing of instruments and documents in public offices, payment or discharge of any taxes or Liens upon or in respect of the Collateral, premiums for insurance with respect to the Collateral and all other fees, costs and expenses in connection with protecting, maintaining or preserving the Collateral and the Collateral Agent’s interest therein, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions, suits or proceedings arising out of or relating to the Collateral.

 

(c)           Without limiting the application of Section 7.1(a) or (b) hereof, each Assignor agrees, jointly and severally, to pay, indemnify and hold each Indemnitee harmless from and against any loss, costs, damages and expenses which such Indemnitee may suffer, expend or incur in consequence of or growing out of any representation given or made by any Assignor in this Agreement, any other Secured Debt Agreement or in any writing contemplated by or made or delivered pursuant to or in connection with this Agreement or any other Secured Debt Agreement proving to be untrue in any material respect on the date given or made.

 

(d)          If and to the extent that the obligations of any Assignor under this Section 7.1 are unenforceable for any reason, such Assignor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.

 

Indemnity Obligations Secured by Collateral; Survival.  Any amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Obligations secured by the Collateral.  The indemnity obligations of each Assignor contained in this Article VII shall continue in full force and effect notwithstanding the full payment of all of the other Obligations and notwithstanding the full payment of all the Notes issued, and Loans made, under the Credit Agreement, the termination of all Letters of Credit issued under the Credit Agreement, the termination of all Secured Hedging Agreements and the payment of all other Obligations and notwithstanding the discharge thereof and the occurrence of the Termination Date.

 

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DEFINITIONS

 

The following terms shall have the meanings herein specified.  Such definitions shall be equally applicable to the singular and plural forms of the terms defined.

 

“Account” shall mean any “account” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York, and in any event shall include but shall not be limited to, all rights to payment of any monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as winnings in a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by a State or governmental unit of a State.  Without limiting the foregoing, the term “account” shall include all Health-Care-Insurance Receivables.

 

“Administrative Agent” shall have the meaning provided in the recitals of this Agreement.

 

“Agreement” shall mean this Security Agreement, as the same may be amended, modified, restated and/or supplemented from time to time in accordance with its terms.

 

“As-Extracted Collateral” shall mean “as-extracted collateral” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Assignor” shall have the meaning provided in the first paragraph of this Agreement.

 

“Borrower” shall have the meaning provided in the recitals of this Agreement.

 

“Cash Collateral Account” shall mean a non-interest bearing cash collateral account maintained with, and in the sole dominion and control of, the Collateral Agent for the benefit of the Secured Creditors.

 

“Chattel Paper” shall mean “chattel paper” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.  Without limiting the foregoing, the term “Chattel Paper” shall in any event include all Tangible Chattel Paper and all Electronic Chattel Paper.

 

“Class” shall have the meaning provided in Section 9.2 of this Agreement.

 

“Collateral” shall have the meaning provided in Section 1.1(a) of this Agreement.

 

“Collateral Agent” shall have the meaning provided in the first paragraph of this Agreement.

 

“Commercial Tort Claims” shall mean “commercial tort claims” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

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“Contract Rights” shall mean all rights of any Assignor under each Contract, including, without limitation, (i) any and all rights to receive and demand payments under any or all Contracts, (ii) any and all rights to receive and compel performance under any or all Contracts and (iii) any and all other rights, interests and claims now existing or in the future arising in connection with any or all Contracts.

 

“Contracts” shall mean all contracts between any Assignor and one or more additional parties (including, without limitation, any Interest Rate Protection Agreements, Other Hedging Agreements, licensing agreements and any partnership agreements, joint venture agreements and limited liability company agreements).

 

“Copyrights” shall mean all United States and foreign copyrights now or hereafter owned by any Assignor, including all registrations of any copyrights in the United States Copyright Office or any foreign equivalent office, as well as all applications for copyright registrations now or hereafter made with the United States Copyright Office or any foreign equivalent office by any Assignor.

 

“Credit Agreement” shall have the meaning provided in the recitals of this Agreement.

 

“Credit Document Obligations” shall have the meaning provided in the definition of “Obligations” in this Article VIII.

 

“Deposit Accounts” shall mean all “deposit accounts” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Documents” shall mean “documents” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Domain Names” shall mean all Internet domain names and associated URL addresses in or to which any Assignor now or hereafter has any right, title or interest.

 

“Electronic Chattel Paper” shall mean “electronic chattel paper” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Equipment” shall mean any “equipment” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York, and in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by any Assignor and any and all additions, substitutions and replacements of any of the foregoing and all accessions thereto, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto.

 

“Excluded Assets” shall have the meaning provided in Section 1.1(b) of this Agreement.

 

“Event of Default” shall mean any Event of Default under, and as defined in, the Credit Agreement and shall in any event include, without limitation, any payment default on any of the Obligations after the expiration of any applicable grace period.

 

“General Intangibles” shall mean “general intangibles” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Goods” shall mean “goods” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

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“Health-Care-Insurance Receivable” shall mean any “health-care-insurance receivable” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Holdings” shall have the meaning provided in the recitals of this Agreement.

 

“Indemnitee” shall have the meaning provided in Section 7.1(a) of this Agreement.

 

“Instrument” shall mean “instruments” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Inventory” shall mean merchandise, inventory and goods, and all additions, substitutions and replacements thereof and all accessions thereto, wherever located, together with all goods, supplies, incidentals, packaging materials, labels, materials and any other items used or usable in manufacturing, processing, packaging or shipping same, in all stages of production from raw materials through work in process to finished goods, and all products and proceeds of whatever sort and wherever located any portion thereof which may be returned, rejected, reclaimed or repossessed by the Collateral Agent from any Assignor’s customers, and shall specifically include all “inventory” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Investment Property” shall mean “investment property” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Lender Creditors” shall have the meaning provided in the recitals of this Agreement.

 

“Lenders” shall have the meaning provided in the recitals of this Agreement.

 

“Letter-of-Credit Rights” shall mean “letter-of-credit rights” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Location” of any Assignor, shall mean such Assignor’s “location” as determined pursuant to Section 9-307 of the UCC.

 

“Marks” shall mean all United States and foreign trademarks, service marks and trade names now owned or hereafter acquired by any Assignor, including all registrations and applications for registration of any trademarks and service marks now owned or hereafter acquired by any Assignor that are registered or filed in the United States Patent and Trademark Office or the equivalent thereof in any state of the United States or any equivalent foreign office or agency, as well as all unregistered trademarks and service marks used by an Assignor and any trade dress including logos, designs, fictitious business names and other business identifiers used by any Assignor.

 

“Obligations” shall mean and include, as to any Assignor, all of the following:

 

(i)  the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations, liabilities and indebtedness (including, without limitation, principal, premium, interest (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding of any Assignor at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding), reimbursement obligations under Letters of Credit, fees, costs and indemnities) of such Assignor to the Lender Creditors, whether now existing or hereafter incurred under, arising out of, or in connection with, each Credit Document to which

 

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such Assignor is a party (including, without limitation, in the event such Assignor is a Guarantor, all such obligations, liabilities and indebtedness of such Assignor under its Guaranty) and the due performance and compliance by such Assignor with all of the terms, conditions and agreements contained in each such Credit Document (all such obligations, liabilities and indebtedness under this clause (i), except to the extent consisting of obligations or indebtedness with respect to Secured Hedging Agreements, being herein collectively called the “Credit Document Obligations”);

 

(ii) the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations, liabilities and indebtedness (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding of any Assignor at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding) owing by such Assignor to the Other Creditors, now existing or hereafter incurred under, arising out of or in connection with any Secured Hedging Agreement, whether such Secured Hedging Agreement is now in existence or hereinafter arising (including, without limitation, in the case of a Assignor that is a Guarantor, all obligations, liabilities and indebtedness of such Assignor under its Guaranty in respect of the Secured Hedging Agreements), and the due performance and compliance by such Assignor with all of the terms, conditions and agreements contained in each such Secured Hedging Agreement (all such obligations, liabilities and indebtedness under this clause (ii) being herein collectively called the “Other Obligations”);

 

(iii) any and all sums advanced by the Collateral Agent in order to preserve the Collateral or preserve its security interest in the Collateral;

 

(iv) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations, or liabilities of such Assignor referred to in clauses (i) and (ii) above, after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys’ fees and court costs;

 

(v) all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement under Section 7.1 of this Agreement; and

 

(vi) all amounts owing to any Agent pursuant to any of the Credit Documents in its capacity as such;

 

it being acknowledged and agreed that the “Obligations” shall include extensions of credit of the types described above, whether outstanding on the date of this Agreement or extended from time to time after the date of this Agreement.

 

“Other Creditors” shall have the meaning provided in the recitals of this Agreement.

 

“Other Obligations” shall have the meaning provided in the definition of “Obligations” in this Article VIII.

 

“Patents” shall mean all United States and foreign patents in or to which any Assignor now or hereafter has any right, title or interest, and all divisions, continuations (including, but not limited to, continuations-in-parts) and improvements thereof, as well as all applications for patents now or hereafter made by any Assignor.

 

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“Permitted Unperfected Account” shall mean, with respect to any Assignor, any Deposit Account of such Assignor maintained with a bank (as defined in Section 9-102 of the UCC) whose jurisdiction (determined in accordance with Section 9-304 of the UCC) is outside of the United States and that contains a balance of deposits equal to or less than $400,000; provided that such Deposit Account shall not cease to be a Permitted Unperfected Account if it contains a balance greater than $400,000 for not longer than 5 consecutive Business Days and provided that the balance of deposits in all such Deposit Accounts of the Assignors combined shall not exceed $1,000,000 in the aggregate at anytime. The Permitted Unperfected Accounts of the Assignors as of the Effective Date are so indicated on Annex D hereto.

 

“Permits” shall mean, to the extent permitted to be assigned by the terms thereof or by applicable law, all licenses, permits, rights, orders, variances, franchises or authorizations of or from any governmental authority or agency.

 

“Primary Obligations” shall have the meaning provided in Section 6.4(b) of this Agreement.

 

“Pro Rata Share” shall have the meaning provided in Section 6.4(b) of this Agreement.

 

“Proceeds” shall mean all “proceeds” as such term is defined in the Uniform Commercial Code as in effect in the State of New York on the date hereof and, in any event, shall also include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Collateral Agent or any Assignor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to any Assignor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or any person acting under color of governmental authority) and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral.

 

“Registered Organization” shall have the meaning provided in the Uniform Commercial Code as in effect in the State of New York.

 

“Representative” shall have the meaning provided in Section 6.4(e) of this Agreement.

 

“Required Secured Creditors” shall mean (i) at any time when any Credit Document Obligations or Letters of Credit are outstanding or any Commitments under the Credit Agreement exist, the Required Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement, each of the Lenders) and (ii) at any time after all of the Credit Document Obligations have been paid in full and all Commitments under the Credit Agreement have been terminated and no further Commitments and Letters of Credit may be provided thereunder, the holders of a majority of the Other Obligations.

 

“Requisite Creditors” shall have the meaning provided in Section 9.2 of this Agreement.

 

“Secondary Obligations” shall have the meaning provided in Section 6.4(b) of this Agreement.

 

“Secured Creditors” shall have the meaning provided in the recitals of this Agreement.

 

“Secured Debt Agreements” shall mean and include this Agreement, the other Credit Documents and each Secured Hedging Agreement.

 

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“Secured Hedging Agreement” shall have the meaning provided in the recitals to this Agreement.

 

“Software” shall mean “software” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Supporting Obligations” shall mean any “supporting obligation” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York, now or hereafter owned by any Assignor, or in which any Assignor has any rights, and, in any event, shall include, but shall not be limited to all of such Assignor’s rights in any Letter-of-Credit Right or secondary obligation that supports the payment or performance of, and all security for, any Account, Chattel Paper, Document, General Intangible, Instrument or Investment Property.

 

“Tangible Chattel Paper” shall mean “tangible chattel paper” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Termination Date” shall have the meaning provided in Section 9.8(a) of this Agreement.

 

“Timber-to-be-Cut” shall mean “timber-to-be-cut” as such term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.

 

“Trade Secrets” shall mean any secretly held existing engineering or other data, information, procedures and other know-how relating to the design, manufacture, assembly, installation, use, operation, marketing, sale and/or servicing of any products or business of an Assignor, worldwide, whether written or not.

 

“Transmitting Utility” shall have the meaning given such term in Section 9-102(a)(80) of the UCC.

 

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

 

MISCELLANEOUS

 

Notices.  Except as otherwise specified herein, all notices, requests, demands or other communications to or upon the respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by courier, be effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the Collateral Agent or any Assignor shall not be effective until received by the Collateral Agent or such Assignor, as the case may be.  All notices and other communications shall be in writing and addressed as follows:

 

(a)                                  if to any Assignor, c/o:

 

Global Cash Access, Inc.

 

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3525 E. Post Road

 

Las Vegas, NV 89120

 

Attention: Chief Financial Officer

and General Counsel

Telephone No.:                             

Telecopier No.:                             

 

(b)                             if to the Collateral Agent, at:

 

Deutsche Bank Trust Company Americas

 

60 Wall Street

 

New York, New York, 10005

 

Attention: Mary Kay Coyle

 

Telephone No.:  212-250-6039

 

Telecopier No.:  212-797-5690

 

(c)                                  if to any Lender Creditor (other than the Collateral Agent), at such address as such Lender Creditor shall have specified in the Credit Agreement;

 

(d)                                 if to any Other Creditor, at such address as such Other Creditor shall have specified in writing to each Assignor and the Collateral Agent;

 

or at such other address or addressed to such other individual as shall have been furnished in writing by any Person described above to the party required to give notice hereunder.

 

Waiver; Amendment.  Except as provided in Sections 9.8 and 9.12, none of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever unless in writing duly signed by each Assignor directly affected thereby (it being understood that the addition or release of any Assignor hereunder shall not constitute a change, waiver, discharge or termination affecting any Assignor other than the Assignor so added or released) and the Collateral Agent (with the written consent of the Required Secured Creditors); provided, however, that any change, waiver, modification or variance affecting the rights and benefits of a single Class of Secured Creditors (and not all Secured Creditors in a like or similar manner) also shall require the written consent of the Requisite Creditors of such affected Class.  For the purpose of this Agreement, the term “Class” shall mean each class of Secured Creditors, i.e., whether (x) the Lender Creditors as holders of the Credit Document Obligations or (y) the Other Creditors as the holders of the Other Obligations.  For the purpose of this Agreement, the term “Requisite Creditors” of any Class shall mean each of (x) with respect to the Credit Document Obligations, the Required Lenders (or, to the extent provided in Section 13.12 of the Credit

 

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Agreement, each of the Lenders), and (y) with respect to the Other Obligations, the holders of at least a majority of all Other Obligations outstanding from time to time.

 

Obligations Absolute.  The obligations of each Assignor hereunder shall remain in full force and effect without regard to, and shall not be impaired by, (a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of such Assignor; (b) any exercise or non-exercise, or any waiver of, any right, remedy, power or privilege under or in respect of this Agreement or any other Secured Debt Agreement; or (c) any amendment to or modification of any Secured Debt Agreement or any security for any of the Obligations; whether or not such Assignor shall have notice or knowledge of any of the foregoing.

 

Successors and Assigns.  This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to release and/or termination as set forth in Section 9.8, (ii) be binding upon each Assignor, its successors and assigns; provided, however, that no Assignor shall assign any of its rights or obligations hereunder without the prior written consent of the Collateral Agent (with the prior written consent of the Required Secured Creditors), and (iii) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent, the other Secured Creditors and their respective successors, transferees and assigns. All agreements, statements, representations and warranties made by each Assignor herein or in any certificate or other instrument delivered by such Assignor or on its behalf under this Agreement shall be considered to have been relied upon by the Secured Creditors and shall survive the execution and delivery of this Agreement and the other Secured Debt Agreements regardless of any investigation made by the Secured Creditors or on their behalf.

 

Headings Descriptive.  The headings of the several sections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.

 

GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.  (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH ASSIGNOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS.  EACH ASSIGNOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH ASSIGNOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS JURISDICTION OVER SUCH ASSIGNOR.  EACH ASSIGNOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH ASSIGNOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 9.1 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT

 

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THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL AGENT UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY ASSIGNOR IN ANY OTHER JURISDICTION.

 

(b)                                 EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c)                                  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

Assignor’s Duties.  It is expressly agreed, anything herein contained to the contrary notwithstanding, that each Assignor shall remain liable to perform all of the obligations, if any, assumed by it with respect to the Collateral and the Collateral Agent shall not have any obligations or liabilities with respect to any Collateral by reason of or arising out of this Agreement, nor shall the Collateral Agent be required or obligated in any manner to perform or fulfill any of the obligations of any Assignor under or with respect to any Collateral.

 

Termination; Release.  (a)   After the Termination Date, this Agreement shall terminate (provided that all indemnities set forth herein including, without limitation in Section 7.1 hereof, shall survive such termination) and the Collateral Agent, at the request and expense of the respective Assignor, will promptly execute and deliver to such Assignor a proper instrument or instruments (including Uniform Commercial Code termination statements on form UCC-3) acknowledging the satisfaction and termination of this Agreement, and will duly assign, transfer and deliver to such Assignor (without recourse and without any representation or warranty) such of the Collateral as may be in the possession of the Collateral Agent and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement.  As used in this Agreement, “Termination Date” shall mean the date upon which the Total Commitment under the Credit Agreement has been terminated and all Loans thereunder have been repaid in full, all Letters of Credit issued under the Credit Agreement have been terminated and all Obligations then due and payable have been paid in full (other than inchoate indemnification obligations).  For purposes of determining the Termination Date, the Collateral Agent shall be entitled to rely upon a certificate of the chief financial officer of Holdings stating the aggregate amount of Other Obligations then due and payable.

 

(b)                                 In the event that any part of the Collateral is sold or otherwise disposed of (to a Person other than a Credit Party) (x) at any time prior to the time at which all Credit Document Obligations have been paid in full and all Commitments and Letters of Credit under the Credit Agreement have been terminated, in connection with a sale or disposition permitted by Section 10.02 of the Credit Agreement or is otherwise released at the direction of the Required Lenders (or all the Lenders if required by Section 13.12 of the Credit Agreement) or (y) at any time thereafter, to the extent permitted by the other Secured Debt Agreements, and in the case of clauses (x) and (y), the proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Credit Agreement or

 

29

 

such other Secured Debt Agreement, as the case may be, to the extent required to be so applied, the Collateral Agent, at the request and expense of such Assignor, will duly release from the security interest created hereby (and will execute and deliver such documentation, including termination or partial release statements and the like in connection therewith) and assign, transfer and deliver to such Assignor (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so sold or otherwise disposed of, or released, and as may be in the possession of the Collateral Agent and has not theretofore been released pursuant to this Agreement.  Furthermore, upon the release of any Subsidiary Guarantor from the Subsidiaries Guaranty in accordance with the provisions thereof, such Assignor (and the Collateral at such time assigned by the respective Assignor pursuant hereto) shall be released from this Agreement.

 

(c)                                  At any time that an Assignor desires that the Collateral Agent take any action to acknowledge or give effect to any release of Collateral pursuant to the foregoing Section 9.8(a) or (b), such Assignor shall deliver to the Collateral Agent a certificate signed by a principal executive officer, chief financial officer, treasurer or general counsel of such Assignor stating that the release of the respective Collateral is permitted pursuant to such Section 9.8(a) or (b).  At any time that the Borrower or the respective Assignor desires that a Subsidiary of the Borrower which has been released from the Subsidiaries Guaranty be released hereunder as provided in the last sentence of Section 9.8(b), it shall deliver to the Collateral Agent a certificate signed by a principal executive officer, chief financial officer, treasurer or general counsel of the Borrower and the respective Assignor stating that the release of the respective Assignor (and its Collateral) is permitted pursuant to such Section 10.8(b). If reasonably requested by the Collateral Agent (although the Collateral Agent shall have no obligation to make such request), the relevant Assignor shall furnish appropriate legal opinions (from counsel, reasonably acceptable to the Collateral Agent) to the effect set forth in this Section 9.8(c).

 

(d)                                 The Collateral Agent shall have no liability whatsoever to any other Secured Creditor as the result of any release of Collateral by it in accordance with (or which the Collateral Agent in good faith believes to be in accordance with) this Section 9.8.

 

Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Collateral Agent.

 

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.

 

The Collateral Agent and the other Secured Creditors.  The Collateral Agent will hold in accordance with this Agreement all items of the Collateral at any time received under this Agreement.  It is expressly understood and agreed that the obligations of the Collateral Agent as holder of the Collateral and interests therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement and in Section 12 of the Credit Agreement.  The Collateral Agent shall act hereunder on the terms and conditions set forth herein and in Section 12 of the Credit Agreement.

 

Additional Assignors.  It is understood and agreed that any Subsidiary Guarantor that desires to become an Assignor hereunder, or is required to execute a counterpart of this Agreement after

 

30

 

the date hereof pursuant to the requirements of the Credit Agreement or any other Credit Document, shall become an Assignor hereunder by (x) executing a counterpart hereof and delivering same to the Collateral Agent or by executing a joinder agreement and delivering same to the Collateral Agent, in each case as may be requested by (and in form and substance satisfactory to) the Collateral Agent, (y) delivering supplements to Annexes A through H, inclusive, hereto as are necessary to cause such Annexes to be complete and accurate with respect to such additional Assignor on such date and (z) taking all actions as specified in this Agreement as would have been taken by such Assignor had it been an original party to this Agreement, in each case with all documents required above to be delivered to the Collateral Agent and with all documents and actions required above to be taken to the reasonable satisfaction of the Collateral Agent.

 

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

 

31

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their duly authorized officers as of the date first above written.

 

	
 
    	
GLOBAL   CASH ACCESS HOLDINGS, INC., as
   an Assignor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Global Cash Access Holdings, Inc.
    
	
 
    	
 
    	
Global   Cash Access Holdings, Inc.
    
	
 
    	
 
    	
Assignor
    
	
 
    	
 
    
	
 
    	
GLOBAL   CASH ACCESS, INC.,
   as an Assignor
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Global Cash Access, Inc. 
    
	
 
    	
 
    	
Global   Cash Access, Inc. 
    
	
 
    	
 
    	
Assignor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CENTRAL   CREDIT, LLC,
   as an Assignor 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Central Credit, LLC 
    
	
 
    	
 
    	
Central   Credit, LLC
    
	
 
    	
 
    	
Assignor
    
	
 
    	
 
    	
 
    
	
 
    	
WESTERN   MONEY SYSTEMS,
   as an Assignor
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Western Money Systems
    
	
 
    	
 
    	
Western   Money Systems
    
	
 
    	
 
    	
Assignor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CASH   SYSTEMS, INC.,
   as an Assignor
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Cash Systems, Inc.
    
	
 
    	
 
    	
Cash   Systems, Inc.
    
	
 
    	
 
    	
Assignor
    
	
 
    	
 
    
	
[continued   on next page]
    	
 
    
	
 
    	
 
    
	
 
    	
ARRIVA   CARD, INC.,
   as an Assignor
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Arriva Card, Inc.
    
	
 
    	
 
    	
Arriva   Card, Inc.
    
	
 
    	
 
    	
Assignor
    

 

32

 

Accepted and Agreed to:

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Collateral Agent

 

 

	
By:   
    	
/s/   Deutsche Bank Trust Company Americas
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas
    
	
 
    	
Collateral   Agent
    

 

33

 

ANNEX A

to

SECURITY AGREEMENT

 

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION
  (AND WHETHER A REGISTERED ORGANIZATION AND/OR
 A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION, 
 LOCATION, ORGANIZATIONAL IDENTIFICATION NUMBERS  
 AND FEDERAL EMPLOYER IDENTIFICATION NUMBERS

 

	
Exact Legal
   Name of Each
   Assignor
    	
 
    	
Type of
   Organization
   (or, if the
   Assignor is an
   Individual, so
   indicate)
    	
 
    	
Registered
   Organization?
   (Yes/No)
    	
 
    	
Jurisdiction
   of
   Organization
    	
 
    	
Assignor’s
   Location (for
   purposes of
   NY UCC 
   § 9-307)
    	
 
    	
Assignor’s
   Organization
   Identification
   Number (or, if it
   has none, so
   indicate)
    	
 
    	
Assignor’s
   Federal
   Employer
   Identification
   Number (or, if it
   has none, so
   indicate)
    	
 
    	
Transmitting
   Utility?
   (Yes/No)
    
	
Global   Cash Access Holdings, Inc.
    	
 
    	
Corporation
    	
 
    	
Yes
    	
 
    	
Delaware
    	
 
    	
Delaware
    	
 
    	
3760954
    	
 
    	
20-0723270
    	
 
    	
No
    
	
Global   Cash Access, Inc.
    	
 
    	
Corporation
    	
 
    	
Yes
    	
 
    	
Delaware
    	
 
    	
Delaware
    	
 
    	
2913302
    	
 
    	
94-3309549
    	
 
    	
No
    
	
Central   Credit, LLC
    	
 
    	
Limited   Liability Company
    	
 
    	
Yes
    	
 
    	
Delaware
    	
 
    	
Delaware
    	
 
    	
3001745
    	
 
    	
88-0431550
    	
 
    	
No
    
	
Western   Money Systems
    	
 
    	
Corporation
    	
 
    	
Yes
    	
 
    	
Nevada
    	
 
    	
Nevada
    	
 
    	
NV19851014463
    	
 
    	
88-0211078
    	
 
    	
No
    
	
Cash   Systems, Inc.
    	
 
    	
Corporation
    	
 
    	
Yes
    	
 
    	
Delaware
    	
 
    	
Delaware
    	
 
    	
2209473
    	
 
    	
87-0398535
    	
 
    	
No
    
	
Arriva   Card, Inc.
    	
 
    	
Corporation
    	
 
    	
Yes
    	
 
    	
Delaware
    	
 
    	
Delaware
    	
 
    	
4004255
    	
 
    	
20-3197675
    	
 
    	
No
    

 

 

ANNEX B

to

SECURITY AGREEMENT

 

SCHEDULE OF TRADE AND FICTITIOUS NAMES

 

None.

 

 

ANNEX C

to

SECURITY AGREEMENT

 

DESCRIPTION OF CERTAIN SIGNIFICANT TRANSACTIONS OCCURRING WITHIN ONE YEAR PRIOR TO THE DATE OF THE SECURITY AGREEMENT

 

	
Name of Assignor
    	
 
    	
Description of any
   Transactions as required by Section 2.6 of
   the Security Agreement
    
	
Global   Cash Access, Inc. (“GCA”)
    	
 
    	
On   April 19, 2010, Innovative Funds Transfer, LLC, a Delaware limited   liability company of which GCA held 60% of the membership interests, was   dissolved. In connection with such dissolution, GCA received certain assets   in a liquidating distribution.
    

 

 

ANNEX D

to

SECURITY AGREEMENT

 

Schedule of Deposit Accounts

 

	
Name of
   Assignor
    	
 
    	
Description
   of Deposit Account
    	
 
    	
Account
   Number
    	
 
    	
Name of Bank, Address
   and Contact
   Information
    	
 
    	
Jurisdiction of Bank
   (determined in
   accordance with UCC
   § 9-304)
    
	
Global   Cash Access, Inc.
    	
 
    	
Funds   deposited in escrow to satisfy and discharge senior subordinated notes
    	
 
    	
not   yet available
    	
 
    	
Bank   of New York Mellon Trust Company, N.A.
    	
 
    	
New   York
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to received Global Cash Access settlements for credit card cash   advances, ACH activities
    	
 
    	
1493205019
    	
 
    	
BANK   OF AMERICA;

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Control   Disbursement Account for AP
    	
 
    	
003359800011
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Control   Disbursement Account for Booths
    	
 
    	
003359807917
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Major   ATM account to receive daily sweep from ATM activity.  Amounts will sweep into 14933-05283 ATM   Account nightly and will retain a required balance of $50K.
    	
 
    	
1459121803
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Major   ATM account to fund ATMs throughout entire country.
    	
 
    	
1493305283
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   owned by BoA for ATM Contract Cash.    Account utilized to have all amounts settle to then sweep to GCA   Adjustment account.
    	
 
    	
1233442044
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Payroll
    	
 
    	
1493205090
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Employee   Reimbursement
    	
 
    	
1499411537
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash 
    	
 
    	
Capital   One Settlement
    	
 
    	
1499928752
    	
 
    	
BANK   OF AMERICA; 
    	
 
    	
California
    

 

 

	
Access, Inc.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
All   funding is settled to this account accept for commissions
    	
 
    	
1499826329
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Visa   Payment
    	
 
    	
1499613252
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Santa Ana booth activity and fund booth operations with cash
    	
 
    	
1475800121
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit all Quik Credits checks activity
    	
 
    	
1475300133
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
TSYS   Settlement
    	
 
    	
1499404768
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Morongo booth activity and fund booth operations with cash
    	
 
    	
1499102350
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Tulalip booth activity and fund booth operations with cash
    	
 
    	
1499107706
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Hollywood booth activity and fund booth operations with cash
    	
 
    	
1499030585
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Quil Ceda Creek booth activity and fund booth operations with   cash
    	
 
    	
1499727022
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Hon Dah booth activity and fund booth operations with cash
    	
 
    	
1499727041
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Odawa booth activity and fund booth
    	
 
    	
1499821817
    	
 
    	
BANK   OF AMERICA; Candice Williams
    	
 
    	
California
    

 

2

 

	
 
    	
 
    	
operations   with cash
    	
 
    	
 
    	
 
    	
275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Delaware Park booth activity and fund booth operations with   cash
    	
 
    	
1499923900
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit A.C. Hilton booth activity and fund booth operations with   cash
    	
 
    	
1499924339
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit A.C. Trump Taj Mahal booth activity and fund booth operations   with cash
    	
 
    	
1499924372
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit A.C. Borgata booth activity and fund booth operations with   cash
    	
 
    	
1499924377
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Choctaw Casino McAlester booth activity and fund booth   operations with cash
    	
 
    	
1499926692
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Newcastle booth activity and fund booth operations with cash
    	
 
    	
1499927021
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Choctaw Casino Grant booth activity and fund booth operations   with cash
    	
 
    	
1499927861
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   used to deposit Canterbury booth activity and fund booth operations with cash
    	
 
    	
1499925843
    	
 
    	
BANK   OF AMERICA; Candice Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Check   Clearing Concentration
    	
 
    	
5720446504
    	
 
    	
CAPITAL   ONE;

Connie   Delaney

333   Travis St rd Floor

Shreveport   LA 71101

318-674-3877
    	
 
    	
Louisiana
    
	
Global   Cash Access, Inc.
    	
 
    	
Check   Clearing - Laser
    	
 
    	
542073535
    	
 
    	
CAPITAL   ONE;

Connie   Delaney

333   Travis St rd Floor

Shreveport   LA 71101

318-674-3877
    	
 
    	
Louisiana
    
	
Global   Cash Access, Inc.
    	
 
    	
Check   Clearing -Preprinted
    	
 
    	
542051175
    	
 
    	
CAPITAL   ONE;

Connie   Delaney

333   Travis St rd Floor
    	
 
    	
Louisiana
    

 

3

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Shreveport   LA 71101

318-674-3877
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
GCA   Investment
    	
 
    	
5720446490
    	
 
    	
CAPITAL   ONE;

Connie   Delaney

333   Travis St rd Floor

Shreveport   LA 71101

318-674-3877
    	
 
    	
Louisiana
    
	
Global   Cash Access, Inc.
    	
 
    	
ATM   Settlement account for Shazam network activity
    	
 
    	
1098373
    	
 
    	
PALM   DESERT NATIONAL BANK; Angela Heck

72-750   El Paseo ste C-1

Palm   Desert CA 92260

phone   760-674-1490
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Reserve   Account
    	
 
    	
783904803
    	
 
    	
PALM   DESERT NATIONAL BANK; Angela Heck

72-750   El Paseo ste C-1

Palm   Desert CA 92260

phone   760-674-1490
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
PDNB-Owned   Business Checking Account
    	
 
    	
783904812
    	
 
    	
PALM   DESERT NATIONAL BANK; Angela Heck

72-750   El Paseo ste C-1

Palm   Desert CA 92260

phone   760-674-1490
    	
 
    	
California
    
	
Global   Cash Access, Inc.
    	
 
    	
Settlement   Account for IPS
    	
 
    	
2000035280181
    	
 
    	
WACHOVIA;

Betty   Crawford

1525   West W T Harris Boulevard 3rd Floor

Charlotte   NC 28262

704-444-6072
    	
 
    	
North   Carolina
    
	
Global   Cash Access, Inc.
    	
 
    	
Money   Market / Expense Escrow Account IPS
    	
 
    	
2000017268846
    	
 
    	
WACHOVIA;

Betty   Crawford

1525   West W T Harris Boulevard 3rd Floor

Charlotte   NC 28262

704-444-6072
    	
 
    	
North   Carolina
    
	
Global   Cash Access, Inc.
    	
 
    	
Account   owned by Wells Fargo Bank for ATM Contract Cash. Internal DDA GCA ATM   Settlement
    	
 
    	
4124524059
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Settlement
    	
 
    	
4122076532
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
A/P   Account (controlled disbursement)
    	
 
    	
9600142445
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash 
    	
 
    	
Booth   A/P (controlled 
    	
 
    	
9600142426
    	
 
    	
WELLS   FARGO
    	
 
    	
Nevada
    

 

4

 

	
Access, Inc.
    	
 
    	
disbursement)
    	
 
    	
 
    	
 
    	
Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ATM   account to receive daily sweep from ATM activity. Amounts will sweep into new   Wells Fargo Concentration Account opened in Nov 2010
    	
 
    	
4124512427
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Payroll
    	
 
    	
4122092521
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Employee   Reimbursement
    	
 
    	
4122092505
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Global   Cash Access (Capital One Settlement)
    	
 
    	
4122092547
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Western   Union funding
    	
 
    	
4122092539
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Visa   Payment
    	
 
    	
4122092513
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Check   cashing
    	
 
    	
4122092562
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Booth   Depository
    	
 
    	
4122092554
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Casino   Morongo
    	
 
    	
4947717104
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes 
    	
 
    	
Nevada
    

 

5

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pkwy,   Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
Tulalip
    	
 
    	
4947717112
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Hollywood   Booth
    	
 
    	
4947717096
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Quil   Ceda Creek Booth
    	
 
    	
4947717088
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Hon   Dah Booth
    	
 
    	
4947717070
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Delaware   Park
    	
 
    	
4947717054
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
A.C.   Hilton
    	
 
    	
4947717047
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
A.C.   Trump Taj Mahal
    	
 
    	
4947717039
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
A.C.   Borgata
    	
 
    	
4947717021
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Choctaw   Casino McAlester
    	
 
    	
4947717005
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169
    	
 
    	
Nevada
    

 

6

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
702-791-6272
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
Newcastle
    	
 
    	
4947716999
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Choctaw   Casino Grant
    	
 
    	
4947716981
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
Choctaw   Casino Idabel
    	
 
    	
4945497931
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access, Inc.
    	
 
    	
ATM   Chargeback
    	
 
    	
4124512435
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Global   Cash Access Holdings, Inc.
    	
 
    	
GCA   Holdings Concentration
    	
 
    	
1499027233
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Global   Cash Access Holdings, Inc.
    	
 
    	
GCA   Holdings Concentration
    	
 
    	
4122092646
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Central   Credit, LLC
    	
 
    	
Account   used to deposit CCI checks received as payments
    	
 
    	
1493005218
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Central   Credit, LLC
    	
 
    	
Depository   account for Central Credit
    	
 
    	
1499821350
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Central   Credit, LLC
    	
 
    	
Control   Disbursement Account for CC
    	
 
    	
003359800284
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Central   Credit, LLC
    	
 
    	
Central   Credit LLC (Cash - CC Non-Guarantee Acc)
    	
 
    	
1499926239
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    

 

7

 

	
Central   Credit, LLC
    	
 
    	
Central   Credit LLC (Cash - Ck Warranty Income/Exp)
    	
 
    	
1499926234
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Central   Credit, LLC
    	
 
    	
Central   Credit
    	
 
    	
4122092414
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Central   Credit, LLC
    	
 
    	
Central   Credit A/P (non-controlled disbursement)
    	
 
    	
4122092430
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Central   Credit, LLC
    	
 
    	
Central   Credit LLC (Cash — Check Warranty income/expense)
    	
 
    	
4122092422
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Central   Credit, LLC
    	
 
    	
Central   Credit funding reserve
    	
 
    	
4123022725
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Central   Credit, LLC
    	
 
    	
Check   warranty
    	
 
    	
4122092489
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Roll   up and consolidation
    	
 
    	
4121460067
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
POS   debit activity
    	
 
    	
4121460026
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Reimbursement   for NSF’s 
    	
 
    	
4121460034
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Revenue   Account (from US Bank)
    	
 
    	
4121466502
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes
    	
 
    	
Nevada
    

 

8

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pkwy,   Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
CSI   Disbursement
    	
 
    	
4121459986
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
IGS   ATM Interchange :Inactive
    	
 
    	
4121466528
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Account   used to deposit booth activity and fund booth operations with cash
    	
 
    	
4121460059
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Account   used to deposit Riverwind booth activity and fund booth operations with cash
    	
 
    	
4944853985
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Account   used to deposit Winstar booth activity and fund booth operations with cash
    	
 
    	
4944853993
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Account   used to deposit Canterbury booth activity and fund booth operations with cash
    	
 
    	
4944897453
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Account   used to deposit Choctaw booth activity and fund booth operations with cash
    	
 
    	
4944945815
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Account   used to deposit Choctaw Pocola booth activity and fund booth operations with   cash
    	
 
    	
4945142107
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Cash   Systems, Inc.
    	
 
    	
Account   used to deposit Fantasy Springs Resort booth activity and fund booth   operations with cash
    	
 
    	
4945157048
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169
    	
 
    	
Nevada
    

 

9

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
702-791-6272
    	
 
    	
 
    
	
Arriva   Card, Inc.
    	
 
    	
Arriva   Card, Inc
    	
 
    	
1499328910
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Arriva   Card, Inc.
    	
 
    	
Control   Disbursement Account for Arriva
    	
 
    	
003359803502
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Arriva   Card, Inc.
    	
 
    	
Arriva   Card Lockbox
    	
 
    	
4121224869
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Arriva   Card, Inc.
    	
 
    	
Non-controlled   disbursement
    	
 
    	
4122092455
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Western   Money Systems
    	
 
    	
Account   used to send wires and to deposit Western Money checks received as payments
    	
 
    	
1499803238
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Western   Money Systems
    	
 
    	
Western   Money Disbursement
    	
 
    	
3359809681
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Western   Money Systems
    	
 
    	
Account   used to send wires and to deposit WMS manufacturing checks received as   payments
    	
 
    	
1499803257
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Western   Money Systems
    	
 
    	
Western   Money (Syspro) Disbursement
    	
 
    	
3359810010
    	
 
    	
BANK   OF AMERICA

Candice   Williams

275   Valencia Avenue

Brea   CA 92823

888-841-8159
    	
 
    	
California
    
	
Western   Money Systems
    	
 
    	
Non-manufacturing   concentration
    	
 
    	
4122092463
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Western   Money Systems
    	
 
    	
Non-manufacturing   A/P (non-controlled disbursement)
    	
 
    	
4122092497
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    
	
Western
    	
 
    	
Manufacturing   concentration
    	
 
    	
4122092471
    	
 
    	
WELLS   FARGO
    	
 
    	
Nevada
    

 

10

 

	
Money   Systems
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
Manufacturing   A/P (non-controlled disbursement)
    	
 
    	
4122092448
    	
 
    	
WELLS   FARGO

Olga   E. Wisnicky

3800   Howard Hughes Pkwy, Suite 400 | Las Vegas, Nevada 89169

702-791-6272
    	
 
    	
Nevada
    

 

11

 

ANNEX E

to

SECURITY AGREEMENT

 

DESCRIPTION OF COMMERCIAL TORT CLAIMS

 

	
Name of Assignor
    	
 
    	
Description of Commercial Tort Claims
    
	
Global   Cash Access Holdings, Inc. (“Holdings”) and Global Cash   Access, Inc. (“GCA”)
    	
 
    	
On   April 16, 2010, Holdings and GCA commenced an action in the District   Court of Nevada, Clark County, against the three current principals of   Sightline Payments, LLC, all of whom are former executives of Holdings and   GCA. Holdings and GCA allege misappropriation of trade secrets, breach of   contract, breach of duty of good faith and fair dealing and seeks damages and   declaratory and injunctive relief.
    

 

 

ANNEX F

to

SECURITY AGREEMENT

 

SCHEDULE OF MARKS AND APPLICATIONS;
 INTERNET DOMAIN NAME REGISTRATIONS

 

1.                                      Marks and Applications:

 

Registered Marks

 

	
Owner
    	
 
    	
Mark
    	
 
    	
Registration No.
    	
 
    	
Reg. Date
    	
 
    	
Country / State
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
QUIK   CASH*
    	
 
    	
1578102
    	
 
    	
01/16/90
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
GLOBAL   CASH ACCESS
    	
 
    	
2133474
    	
 
    	
01/27/98
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CASINO   CASH PLUS
    	
 
    	
2224388
    	
 
    	
02/16/99
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ACM   (Stylized Letters)
    	
 
    	
2719608
    	
 
    	
05/27/03
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
QUIKMARKETING
    	
 
    	
2820232
    	
 
    	
03/02/04
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ACM
    	
 
    	
2800174
    	
 
    	
12/30/03
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
TRANSACTIONS   THAT COUNT
    	
 
    	
3695586
    	
 
    	
10/13/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
STRETCH   YOUR LIMITS
    	
 
    	
3695926
    	
 
    	
10/13/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CC   CENTRALCREDIT & Design
    	
 
    	
3914018
    	
 
    	
02/01/11
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CC &   Design
    	

    	
 
    	
3914016
    	
 
    	
02/01/11
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
REVOLUTIONIZING   CASH ACCESS TECHNOLOGY FOR THE GAMING INDUSTRY
    	
 
    	
3478721
    	
 
    	
08/05/08
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
CASINO   PC
    	
 
    	
3478726
    	
 
    	
08/05/08
    	
 
    	
USA
    
										

 

 

	
 
    	
 
    	
ANNEX   C
    
	
 
    	
 
    	
to
    
	
 
    	
 
    	
SECURITY   AGREEMENT
    

 

 

	
Global   Cash Access, Inc.
    	
 
    	
QUIKCASH
    	
 
    	
3081648
    	
 
    	
04/18/06
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
QUIKMEDIA
    	
 
    	
2947774
    	
 
    	
05/10/05
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ARRIVA
    	
 
    	
3320391
    	
 
    	
10/23/07
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ARRIVA
    	
 
    	
557875
    	
 
    	
05/15/07
    	
 
    	
Switzerland
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ARRIVA
    	
 
    	
985707
    	
 
    	
05/28/07
    	
 
    	
Mexico
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ARRIVA
    	
 
    	
26436
    	
 
    	
04/20/07
    	
 
    	
Aruba
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ARRIVA
    	
 
    	
300805022
    	
 
    	
06/08/07
    	
 
    	
Hong   Kong
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ARRIVA
    	
 
    	
N026595
    	
 
    	
07/30/07
    	
 
    	
Macau
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ARRIVA
    	
 
    	
1158622
    	
 
    	
10/11/07
    	
 
    	
Australia
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
CASH   SYSTEMS, INC.
    	
 
    	
3546937
    	
 
    	
12/16/08
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
ALL-IN-1   ATM
    	
 
    	
3570107
    	
 
    	
02/03/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
CASH   CLUB
    	
 
    	
3692614
    	
 
    	
10/06/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
TOTALCASH
    	
 
    	
3616088
    	
 
    	
05/05/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CASINO   DIRECT
    	
 
    	
2497578
    	
 
    	
04/17/09
    	
 
    	
UK
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CASINO   DIRECT
    	
 
    	
7299068
    	
 
    	
03/18/10
    	
 
    	
EU
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
WESTERN   MONEY SYSTEMS
    	
 
    	
3847071
    	
 
    	
09/14/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
WESTERN   MONEY SYSTEMS
    	
 
    	
3830350
    	
 
    	
08/10/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
WESTERN   MONEY SYSTEMS
    	
 
    	
3839900
    	
 
    	
08/31/10
    	
 
    	
USA
    

 

 

	
Global   Cash Access, Inc.
    	
 
    	
CC   Central Credit
    	
 
    	
Doc.   No. 20100445744-41
    	
 
    	
06/18/10
    	
 
    	
Nevada
    

 

* This mark is subject to a recorded security interest in favor of BT Commercial Corporation.

 

Applications for Marks

 

	
Owner
    	
 
    	
Mark
    	
 
    	
Application No.
    	
 
    	
Application Date
    	
 
    	
Country
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
ONE   CARD IS ALL YOU NEED
    	
 
    	
77070502
    	
 
    	
12/22/06
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
THE   COMPLETE CASH ACCESS PACKAGE
    	
 
    	
77074011
    	
 
    	
01/01/07
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
TABLECASH
    	
 
    	
77102447
    	
 
    	
02/08/07
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc
    	
 
    	
TRANSACTION   READY
    	
 
    	
77700369
    	
 
    	
03/26/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
TRANSACTIONS   THAT COUNT
    	
 
    	
77700381
    	
 
    	
03/26/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
TRANSACTION   READY
    	
 
    	
77700389
    	
 
    	
03/26/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
QUIKPLAY
    	
 
    	
77709127
    	
 
    	
04/07/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CARDXCHANGE
    	
 
    	
77891881
    	
 
    	
12/11/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CARDXCHANGE
    	
 
    	
77891903
    	
 
    	
12/11/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CARD   IN CARD OUT
    	
 
    	
77891925
    	
 
    	
12/11/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CARD   IN CARD OUT
    	
 
    	
77891936
    	
 
    	
12/11/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CICO
    	
 
    	
77893693
    	
 
    	
12/15/09
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
CICO
    	
 
    	
77893733
    	
 
    	
12/15/09
    	
 
    	
USA
    

 

 

	
Global   Cash Access, Inc.
    	
 
    	
CSI
    	
 
    	
85062249
    	
 
    	
06/14/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
GCA
    	
 
    	
85164038
    	
 
    	
10/28/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
GCA
    	
 
    	
85164082
    	
 
    	
10/28/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
GLOBAL   CASH ACCESS
    	
 
    	
85164098
    	
 
    	
10/28/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
GLOBAL   CASH ACCESS
    	
 
    	
85164118
    	
 
    	
10/28/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
QUIKCREDIT
    	
 
    	
85204212
    	
 
    	
12/22/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
CHANGEX
    	
 
    	
85066861
    	
 
    	
06/18/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
CHANGEX
    	
 
    	
85066889
    	
 
    	
06/18/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
TICKETXCHANGE
    	
 
    	
85089860
    	
 
    	
07/21/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
JACKPOTXCHANGE
    	
 
    	
85094245
    	
 
    	
07/27/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
JACKPOTXCHANGE
    	
 
    	
85128459
    	
 
    	
09/13/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
XCHANGE   MANAGER
    	
 
    	
85093937
    	
 
    	
07/27/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
CASINOXCHANGE
    	
 
    	
85093895
    	
 
    	
07/27/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
CASINOXCHANGE
    	
 
    	
85094274
    	
 
    	
07/27/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
XCHANGE   EXPLORER
    	
 
    	
85093992
    	
 
    	
07/27/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
POINTXCHANGE
    	
 
    	
85110215
    	
 
    	
08/18/10
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
POINTXCHANGE
    	
 
    	
85110247
    	
 
    	
08/18/10
    	
 
    	
USA
    

 

 

2.             Internet Domain Name Registrations:

 

	
Owner
    	
 
    	
Internet Domain Names
    	
 
    	
Country
    	
 
    	
Registration No.
   (or other applicable
   identifier)
    	
 
    	
Registration
   Date
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global Cash Access, Inc.
    	
 
    	
http://www.globalcashaccess.com/
    	
 
    	
USA
    	
 
    	
N/A
    	
 
    	
May 22, 1998
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global Cash Access, Inc.
    	
 
    	
http://www.gcainc.com/
    	
 
    	
USA
    	
 
    	
N/A
    	
 
    	
November 23, 2006
    

 

 

ANNEX G

to

SECURITY AGREEMENT

 

SCHEDULE OF PATENTS

 

Issued Patents

 

	
Owner
    	
 
    	
Title of Patent
    	
 
    	
Patent Number
    	
 
    	
Issue Date
    	
 
    	
Country
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
ATM   and POS terminal and method of use thereof
    	
 
    	
6081792
    	
 
    	
06/27/00
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
Method   and apparatus for providing money for operating a gaming machine
    	
 
    	
6843412
    	
 
    	
01/18/05
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for performing a quasi- cash transaction
    	
 
    	
6951302
    	
 
    	
10/04/05
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for checkless cash advance settlement
    	
 
    	
7461780
    	
 
    	
12/09/08
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
Retrofit   bill validator assembly
    	
 
    	
5544728
    	
 
    	
08/13/96
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
Method   and apparatus for low cost concurrent provision of gaming machine token   redemption and ATM services
    	
 
    	
7886961
    	
 
    	
02/15/11
    	
 
    	
USA
    

 

The following patents have expired and the applicable Assignor does not intend to revive them:

 

	
Western   Money Systems
    	
 
    	
Bill   validator kit for a gaming machine
    	
 
    	
D360227
    	
 
    	
07/11/95
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
Face   plate for a bill validator kit for a gaming machine
    	
 
    	
D360228
    	
 
    	
07/11/95
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Western   Money Systems
    	
 
    	
Mounting   plate for a bill validator kit and reel assembly for a gaming machine
    	
 
    	
D370031
    	
 
    	
05/21/96
    	
 
    	
USA
    

 

 

Applications for Patents

 

	
Owner
    	
 
    	
Title
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Country
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global   Cash Access, Inc.
    	
 
    	
Systems   for enhancing funding of gaming
    	
 
    	
11991814
    	
 
    	
03/10/08
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for performing a financial transaction within a casino
    	
 
    	
10417639
    	
 
    	
04/17/03
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for integrated player tracking and cash access
    	
 
    	
10957283
    	
 
    	
10/01/04
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for integrated player tracking and cash access
    	
 
    	
2540935
    	
 
    	
10/01/04
    	
 
    	
Canada
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
Multi-function   cashless gaming ATM
    	
 
    	
2541093
    	
 
    	
10/01/04
    	
 
    	
Canada
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for integrated player tracking and cash access
    	
 
    	
2004279142
    	
 
    	
10/01/04
    	
 
    	
Australia
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for integrated player tracking and cash access
    	
 
    	
2009233682
    	
 
    	
10/01/04
    	
 
    	
Australia
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
Multi-function   cashless gaming ATM
    	
 
    	
2004277430
    	
 
    	
10/01/04
    	
 
    	
Australia
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
Multi-function   cashless gaming ATM
    	
 
    	
2009213039
    	
 
    	
10/01/04
    	
 
    	
Australia
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
Multi-function   cashless gaming ATM
    	
 
    	
200480031999.0
    	
 
    	
10/01/04
    	
 
    	
PRC
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for integrated player tracking and cash access
    	
 
    	
200480031968.5
    	
 
    	
10/01/04
    	
 
    	
PRC
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for integrated player tracking and cash access
    	
 
    	
04793971.5
    	
 
    	
10/01/04
    	
 
    	
European   Patent Convention
    

 

 

	
Cash   Systems, Inc.
    	
 
    	
Multi-function   cashless gaming ATM
    	
 
    	
04793970.7
    	
 
    	
10/01/04
    	
 
    	
European   Patent Convention
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
Multi-function   cashless gaming ATM
    	
 
    	
10956644
    	
 
    	
10/01/04
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
Electronic   transaction access system and method using a player tracker card
    	
 
    	
11208100
    	
 
    	
08/18/05
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for performing a financial transaction in an entertainment center
    	
 
    	
11261974
    	
 
    	
10/28/05
    	
 
    	
USA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash   Systems, Inc.
    	
 
    	
System   and method for checkless cash advance settlement
    	
 
    	
12268857
    	
 
    	
11/11/08
    	
 
    	
USA
    

 

 

ANNEX H

to

SECURITY AGREEMENT

 

SCHEDULE OF COPYRIGHTS

 

None.

 

 

ANNEX I

to

SECURITY AGREEMENT

 

GRANT OF SECURITY INTEREST
  IN UNITED STATES TRADEMARKS

 

FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged, [Name of Grantor], a                                                          with principal offices at                                (the “Grantor”), hereby grants to Deutsche Bank Trust Company Americas, as Collateral Agent, with principal offices at 60 Wall Street, New York, New York, 10005 (the “Grantee”), a continuing security interest in (i) all of the Grantor’s right, title and interest in, to and under to the United States trademarks, trademark registrations and trademark applications (the “Marks”) set forth on Schedule A attached hereto, (ii) all Proceeds (as such term is defined in the Security Agreement referred to below) and products of the Marks, (iii) the goodwill of the businesses with which the Marks are associated and (iv) all causes of action arising prior to or after the date hereof for infringement of any of the Marks or unfair competition regarding the same.

 

THIS GRANT is made to secure the satisfactory performance and payment of all the Obligations of the Grantor, as such term is defined in the Security Agreement among the Grantor, the other assignors from time to time party thereto and the Grantee, dated as of March 1, 2011 (as amended, modified, restated and/or supplemented from time to time, the “Security Agreement”).  Upon the occurrence of the Termination Date (as defined in the Security Agreement), the Grantee shall execute, acknowledge, and deliver to the Grantor an instrument in writing releasing the security interest in the Marks acquired under this Grant.

 

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

 

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

 

 

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

 

	
 
    	
[NAME   OF GRANTOR], Grantor
    
	
 
    	
 
    
	
 
    	
 
    
	
DEUTSCHE   BANK TRUST COMPANY AMERICAS,
    	
 
    
	
 
    	
 
    
	
as   Collateral Agent and Grantee
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
/s/   Deutsche Bank Trust Company Americas
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Collateral   Agent and Grantee
    	
 
    

 

2

 

SCHEDULE A

 

	
MARK
    	
 
    	
REG. NO.
    	
 
    	
REG. DATE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

ANNEX J

to

SECURITY AGREEMENT

 

GRANT OF SECURITY INTEREST
  IN UNITED STATES PATENTS

 

FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged, [Name of Grantor], a                                         with principal offices at                                                          (the “Grantor”) , hereby grants to Deutsche Bank Trust Company Americas, as Collateral Agent, with principal offices at 60 Wall Street, New York, New York, 10005 (the “Grantee”), a continuing security interest in (i) all of the Grantor’s rights, title and interest in, to and under the United States patents (the “Patents”) set forth on Schedule A attached hereto, in each case together with (ii) all Proceeds (as such term is defined in the Security Agreement referred to below) and products of the Patents, and (iii) all causes of action arising prior to or after the date hereof for infringement of any of the Patents or unfair competition regarding the same.

 

THIS GRANT is made to secure the satisfactory performance and payment of all the Obligations of the Grantor, as such term is defined in the Security Agreement among the Grantor, the other assignors from time to time party thereto and the Grantee, dated as of March 1, 2011 (as amended, modified, restated and/or supplemented from time to time, the “Security Agreement”).  Upon the occurrence of the Termination Date (as defined in the Security Agreement), the Grantee shall execute, acknowledge, and deliver to the Grantor an instrument in writing releasing the security interest in the Patents acquired under this Grant.

 

 

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

 

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

 

2

 

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

 

	
 
    	
 
    	
[NAME   OF GRANTOR], Grantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
DEUTSCHE   BANK TRUST COMPANY AMERICAS,
    	
 
    
	
 
    	
 
    
	
as   Collateral Agent and Grantee
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Deutsche Bank Trust Company Americas
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Collateral   Agent and Grantee
    	
 
    
				

 

3

 

SCHEDULE A

 

	
PATENT
    	
 
    	
PATENT NO.
    	
 
    	
ISSUE DATE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

Annex K

 

GRANT OF SECURITY INTEREST
  IN UNITED STATES COPYRIGHTS

 

FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby acknowledged, [Name of Grantor], a[n]                                         with principal offices at                                                          (the “Grantor”), hereby grants to Deutsche Bank Trust Company Americas, with principal offices at 60 Wall Street, New York, New York, 10005, as Collateral Agent (the “Grantee”), a continuing security interest in (i) all of the Grantor’s rights, title and interest in, to and under the United States copyright registrations and applications for registration (the “Copyrights”) set forth on Schedule A attached hereto, in each case together with (ii) all Proceeds (as such term is defined in the Security Agreement referred to below) of the Copyrights, and (iii) all causes of action arising prior to or after the date hereof for infringement of any of the Copyrights or unfair competition regarding the same.

 

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

 

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

 

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

 

	
 
    	
[NAME   OF GRANTOR], Grantor
    
	
 
    	
 
    
	
 
    	
 
    
	
DEUTSCHE   BANK TRUST COMPANY AMERICAS,
    	
 
    
	
 
    	
 
    
	
as   Collateral Agent and Grantee
    	
 
    

 

1

 

Annex K

 

	
By:
    	
/s/   Deutsche Bank Trust Company Americas
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Deutsche   Bank Trust Company Americas
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Collateral   Agent and Grantee
    	
 
    

 

2

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I SECURITY INTERESTS
    	
 
    	
3
    
	
 
    	
 
    	
 
    
	
1.1 Grant   of Security Interests
    	
 
    	
3
    
	
1.2 Power   of Attorney
    	
 
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE II GENERAL REPRESENTATIONS, WARRANTIES   AND COVENANTS
    	
 
    	
5
    
	
 
    	
 
    	
 
    
	
2.1   Necessary Filings
    	
 
    	
5
    
	
2.2 No   Liens
    	
 
    	
5
    
	
2.3 Other   Financing Statements
    	
 
    	
5
    
	
2.4 Legal   Names; Type of Organization (and Whether a Registered Organization and/or a   Transmitting Utility); Jurisdiction of Organization; Location; Organizational   Identification Numbers; Federal Employer Identification Number; Changes   Thereto; etc.
    	
 
    	
6
    
	
2.5 Trade Names; Etc.
    	
 
    	
6
    
	
2.6 Certain Significant Transactions
    	
 
    	
6
    
	
2.7   Non-UCC Property and Non-Filing Collateral
    	
 
    	
7
    
	
2.8   As-Extracted Collateral; Timber-to-be-Cut
    	
 
    	
7
    
	
2.9   Collateral in the Possession of a Bailee
    	
 
    	
7
    
	
2.10   Recourse
    	
 
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE III SPECIAL PROVISIONS CONCERNING ACCOUNTS;   CONTRACT RIGHTS; INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL
    	
 
    	
8
    
	
 
    	
 
    	
 
    
	
3.1   Additional Representations and Warranties
    	
 
    	
8
    
	
3.2   Maintenance of Records
    	
 
    	
8
    
	
3.3   Direction to Account Debtors; Contracting Parties; etc.
    	
 
    	
8
    
	
3.4   Modification of Terms; etc.
    	
 
    	
9
    
	
3.5   Collection
    	
 
    	
9
    
	
3.6   Instruments
    	
 
    	
9
    
	
3.7   Assignors Remain Liable Under Accounts
    	
 
    	
9
    
	
3.8   Assignors Remain Liable Under Contracts
    	
 
    	
9
    
	
3.9   Deposit Accounts; Etc.
    	
 
    	
10
    
	
3.10   Letter-of-Credit Rights
    	
 
    	
11
    
	
3.11   Commercial Tort Claims
    	
 
    	
11
    
	
3.12   Chattel Paper
    	
 
    	
11
    
	
3.13   Further Actions
    	
 
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE IV SPECIAL PROVISIONS CONCERNING   INTELLECTUAL PROPERTY
    	
 
    	
11
    
	
 
    	
 
    	
 
    
	
4.1   Additional Representations and Warranties
    	
 
    	
11
    
	
4.2   Non-Infringement
    	
 
    	
12
    

 

 

	
4.3 Licenses   and Assignments
    	
 
    	
12
    
	
4.4   Notification of Infringements
    	
 
    	
12
    
	
4.5   Preservation of Marks and Domain Names
    	
 
    	
12
    
	
4.6   Maintenance of Registrations and Issuances; Prosecution of Applications
    	
 
    	
12
    
	
4.7   Future Intellectual Property Rights
    	
 
    	
13
    
	
4.8   Remedies
    	
 
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE V PROVISIONS CONCERNING ALL COLLATERAL
    	
 
    	
13
    
	
 
    	
 
    	
 
    
	
5.1   Protection of Collateral Agent’s Security
    	
 
    	
13
    
	
5.2   Warehouse Receipts Non-Negotiable
    	
 
    	
14
    
	
5.3   Additional Information
    	
 
    	
14
    
	
5.4   Further Actions
    	
 
    	
14
    
	
5.5   Financing Statements
    	
 
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE VI REMEDIES UPON OCCURRENCE OF AN EVENT   OF DEFAULT
    	
 
    	
14
    
	
 
    	
 
    	
 
    
	
6.1   Remedies; Obtaining the Collateral Upon Default
    	
 
    	
14
    
	
6.2   Remedies; Disposition of the Collateral
    	
 
    	
16
    
	
6.3   Waiver of Claims
    	
 
    	
16
    
	
6.4   Application of Proceeds
    	
 
    	
17
    
	
6.5   Remedies Cumulative
    	
 
    	
19
    
	
6.6   Discontinuance of Proceedings
    	
 
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE VII INDEMNITY
    	
 
    	
19
    
	
 
    	
 
    	
 
    
	
7.1   Indemnity
    	
 
    	
19
    
	
7.2   Indemnity Obligations Secured by Collateral; Survival
    	
 
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII DEFINITIONS
    	
 
    	
21
    
	
 
    	
 
    	
 
    
	
ARTICLE IX MISCELLANEOUS
    	
 
    	
26
    
	
 
    	
 
    	
 
    
	
9.1   Notices
    	
 
    	
26
    
	
9.2   Waiver; Amendment
    	
 
    	
27
    
	
9.3   Obligations Absolute
    	
 
    	
28
    
	
9.4   Successors and Assigns
    	
 
    	
28
    
	
9.5   Headings Descriptive
    	
 
    	
28
    
	
9.6   GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL
    	
 
    	
28
    
	
9.7   Assignor’s Duties
    	
 
    	
29
    
	
9.8   Termination; Release
    	
 
    	
29
    
	
9.9   Counterparts
    	
 
    	
30
    
	
9.10   Severability
    	
 
    	
30
    
	
9.11 The   Collateral Agent and the other Secured Creditors
    	
 
    	
30
    
	
9.12   Additional Assignors
    	
 
    	
30
    

 

 

	
ANNEX A
    	
 
    	
Schedule of Legal Names, Type of Organization (and Whether a   Registered Organization and/or a Transmitting Utility), Jurisdiction of   Organization, Location, Organizational Identification Numbers and Federal   Employer Identification Numbers
    
	
ANNEX B
    	
 
    	
Schedule of Trade and Fictitious Names
    
	
ANNEX C
    	
 
    	
Description of Certain Significant Transactions Occurring Within One   Year Prior to the Date of the Security Agreement
    
	
ANNEX D
    	
 
    	
Schedule of Deposit Accounts
    
	
ANNEX E
    	
 
    	
Schedule of Commercial Tort Claims
    
	
ANNEX F
    	
 
    	
Schedule of Marks and Applications; Internet Domain Name   Registrations
    
	
ANNEX G
    	
 
    	
Schedule of Patents
    
	
ANNEX H
    	
 
    	
Schedule of Copyrights
    
	
ANNEX I
    	
 
    	
Grant of Security Interest in United States Trademarks
    
	
ANNEX J
    	
 
    	
Grant of Security Interest in United States Patents
    
	
ANNEX K
    	
 
    	
Grant of Security Interest in United States Copyrights
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
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