Document:

Exhibit 4.5

 

EXECUTION COPY

 

 

 

PLEDGE AND SECURITY AGREEMENT

 

 

among

 

 

AFFINITY GROUP, INC.,

 

CERTAIN SUBSIDIARIES OF AFFINITY GROUP, INC.,

 

 

and

 

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as COLLATERAL AGENT

 

 

 

Dated as of November 30, 2010

 

 

 

 

 

PLEDGE AND SECURITY AGREEMENT

 

THIS PLEDGE AND SECURITY AGREEMENT, dated as of November 30, 2010, made by Affinity Group, Inc. (the “Issuer”) and each of the undersigned grantors (including the Issuer, each a “Grantor” and, together with any other entity that becomes a grantor hereunder pursuant to Section 11.13 hereof, the “Grantors”) in favor of The Bank of New York Mellon Trust Company, N.A., (“BNYMTC”) as Collateral Agent (together with any successor Collateral Agent, the “Collateral Agent”), for the benefit of itself and the other Secured Parties.  Certain capitalized terms as used herein are defined in Article X hereof.  Except as otherwise defined herein, all capitalized terms used herein and defined in the Indenture shall be used herein as therein defined.

 

W I T N E S S E T H:

 

WHEREAS, the Issuer, Affinity Group Holding, Inc., the other Grantors, BNYMTC, in its capacity as Collateral Agent and in its capacity as trustee (in such capacity, the “Trustee”) have entered into an Indenture, dated as of the date hereof (the “Indenture”) pursuant to which Issuer will issue its 11.50% Senior Secured Notes due 2016 (the “Notes”) (the Holders, the Trustee, the Collateral Agent and each other Agent are herein called the “Secured Parties”);

 

WHEREAS, it is a condition precedent to the issuance and purchase of the Notes under the Indenture Documents that each Grantor shall have executed and delivered to the Collateral Agent this Agreement; and

 

WHEREAS, each Grantor will obtain benefits from the issuance and sale of the Notes under the Indenture Documents and, accordingly, desires to execute this Agreement in order to satisfy the condition described in the preceding paragraph and to induce the Holders to purchase the Notes;

 

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

 

ARTICLE I

 

GRANT OF SECURITY INTERESTS AND PLEDGE

 

1.1  Grant of Security Interests.  (a)  As security for the prompt and complete payment and performance when due of all of the Secured Obligations, each Grantor 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 Parties, a continuing security interest in all of the right, title and interest of such Grantor in, to and under all of the following personal property and fixtures (and all rights therein) of such Grantor, or in which or to which such Grantor has any rights, in

 

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each case whether now existing or hereafter from time to time acquired (collectively, as listed below in this Section 1.1, the “Collateral”):

 

(i)            each and every Account;

 

(ii)           all cash;

 

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

 

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

 

(v)           all Commercial Tort Claims;

 

(vi)          all computer programs and Software of such Grantor and all Intellectual Property therein and all other proprietary information of such Grantor, including but not limited to Domain Names and Trade Secret Rights;

 

(vii)         Contracts, together with all Contract Rights arising thereunder;

 

(viii)        all Copyrights;

 

(ix)           all Equipment;

 

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

 

(xi)           all Documents;

 

(xii)          all General Intangibles;

 

(xiii)         all Goods;

 

(xiv)        all Instruments;

 

(xv)         all Inventory;

 

(xvi)        all Financial Assets and Investment Property;

 

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

 

(xviii)      all Marks, together with the registrations and right to all renewals thereof, the goodwill of the business of such Grantor symbolized by the Marks and all causes of action arising prior to or after the date hereof for

 

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infringement of any of the Marks or unfair competition regarding the same;

 

(xix)         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;

 

(xx)          all Permits;

 

(xxi)         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;

 

(xxii)        all Supporting Obligations; and

 

(xxiii)       all Proceeds and products of any and all of the foregoing;

 

provided that the Collateral shall not include any Excluded Collateral.

 

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

 

1.2  Power of Attorney.  Each Grantor 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 Grantor 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 Grantor 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 Parties, which appointment as attorney is coupled with an interest.

 

1.3  Delivery of Certificates.  Subject to the Intercreditor Agreement, with respect to any Investment Property represented by or consisting of certificated securities, all certificates, notes and other instruments representing or evidencing such Investment Property shall be delivered to and held by or on behalf of, and, in the case of notes, endorsed to the order of, Collateral Agent, or its designee pursuant hereto, in the manner set forth in Article VI.

 

ARTICLE II

 

GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

 

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

 

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2.1  Necessary Filings.  All filings, registrations, recordings and other actions necessary or appropriate to create, preserve and perfect the security interest granted by such Grantor to the Collateral Agent hereby in respect of the Collateral have been accomplished (other than with respect to the Post Closing Filings) 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 (other than with respect to the Post Closing Filings), 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 possession or control (within the meaning of the UCC as in effect on the date hereof in the State of New York), 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.

 

2.2  No Liens.  Such Grantor is, and as to all Collateral acquired by it from time to time after the date hereof such Grantor 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 Grantor shall defend the Collateral against all claims and demands of all Persons at any time claiming the same or any interest therein adverse to the Collateral Agent.

 

2.3  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 Permitted Liens), and such Grantor 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 Grantor or in connection with Permitted Liens.

 

2.4  No Consent, Approval, and Authorization Required.  As of the date hereof, no consent, approval, authorization or other order or other action by, and no notice to or filing with, any governmental authority or any other Person is required (i) for the grant of a Security Interest by such Grantor in and to the Collateral pursuant to this Agreement or for the execution, delivery or performance of this Agreement by such Grantor, or (ii) for the exercise by the Collateral Agent of the voting or other rights provided for in this Agreement with respect to the Investment Property or the remedies in respect of the Collateral pursuant to this Agreement, except as may be required in connection with such disposition of Investment Property by laws affecting the offering and sale of securities generally.

 

2.5  Chief Executive Office, Record Locations.  The chief executive office of such Grantor is, on the date of this Agreement, located at the address indicated on Annex A hereto for such Grantor.  During the period of the four calendar months preceding the date of this Agreement, the chief executive office of such Grantor has not been located at any address other

 

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than that indicated on Annex A in accordance with the immediately preceding sentence, in each case unless each such other address is also indicated on Annex A hereto for such Grantor.

 

2.6  Location of Inventory and Equipment2.7  .  All Inventory and Equipment held on the date hereof, or held at any time during the four calendar months prior to the date hereof, by each Grantor is located at one of the locations shown on Annex B hereto for such Grantor.

 

2.8  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 Grantor, the type of organization of such Grantor, whether or not such Grantor is a Registered Organization, the jurisdiction of organization of such Grantor, such Grantor’s Location, the organizational identification number (if any) of such Grantor, the Federal Employer Identification Number (if any), and whether or not such Grantor is a Transmitting Utility, is listed on Annex C hereto for such Grantor.  Such Grantor 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 C hereto, except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Indenture Documents and so long as same do not involve (x) a Registered Organization ceasing to constitute same or (y) such Grantor 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 30 days’ prior written notice of each change to the information listed on Annex C (as adjusted for any subsequent changes thereto previously made in accordance with this sentence), together with a supplement to Annex C which shall correct all information contained therein for such Grantor, and (ii) in connection with the respective such change or changes, it shall have taken all action reasonably necessary 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 Grantor does not have an organizational identification number on the date hereof and later obtains one, such Grantor shall promptly thereafter notify the Collateral Agent of such organizational identification number and shall take all actions reasonably 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.

 

2.9  Trade Names; Etc.  Such Grantor 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 C and such other trade or fictitious names as are listed on Annex D hereto for such Grantor.  Such Grantor 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 30 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 may be necessary to perfect a security interest therein and (ii) with respect to such new name, it shall have taken all action to

 

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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.

 

2.10  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 Grantor, and no Person shall have liquidated into, or transferred all or substantially all of its assets to, any Grantor, in each case except as described in Annex E hereto.  With respect to any transactions so described in Annex E hereto, the respective Grantor shall have furnished such information with respect to the Person (and the assets of the Person and locations thereof) which merged with or into or consolidated with such Grantor, or was liquidated into or transferred all or substantially all of its assets to such Grantor, and shall have furnished 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 Grantor by such Person), including without limitation pursuant to Section 9-316(a)(3) of the UCC.

 

2.11  Non-UCC Property.  The aggregate fair market value (as determined by the Grantors in good faith) of all property of the Grantors of the types described in clauses (1), (2) and (3) of Section 9-311(a) of the UCC does not exceed $100,000.  If the aggregate value of all such property at any time owned by all Grantors exceeds $100,000, the Grantors shall provide prompt written notice thereof to the Collateral Agent and the Grantors shall promptly (and in any event within thirty (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.

 

2.12  As-Extracted Collateral; Timber-to-be-Cut.  On the date hereof, such Grantor 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 Grantor owns, acquires or obtains rights to any As-Extracted Collateral or Timber-to-be-Cut, such Grantor 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 to perfect the security interest of the Collateral Agent therein.

 

2.13  Collateral in the Possession of a Bailee.  If any Inventory or other Goods are at any time in the possession of a bailee, such Grantor shall promptly notify the Collateral Agent thereof and shall use its reasonable best efforts to promptly obtain an acknowledgment from such bailee 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 Grantor. The Collateral Agent agrees with such Grantor 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 Grantor with respect to any such bailee.

 

2.14  Recourse.  This Agreement is made with full recourse to each Grantor and pursuant to and upon all the warranties, representations, covenants and agreements on the part of

 

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such Grantor contained herein, in the Indenture Documents and otherwise in writing in connection herewith or therewith.

 

2.15  Certain Representations and Warranties Regarding Equity Interests.  Each Grantor represents and warrants that on the date hereof: (i) each Subsidiary of such Grantor, and the direct ownership thereof, is listed in Annex P hereto; (ii) the Capital Stock (and any warrants or options to purchase Capital Stock) held by such Grantor 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 P hereto; (iii) such Capital 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 P hereto; (iv) the exact address of each chief executive office of such Grantor is listed on Annex A hereto; and (v) the Grantor has complied with the procedures set forth in Article VI hereof with respect to each item of Collateral described in Annex P hereto.

 

ARTICLE III

 

SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL

 

3.1  Additional Representations and Warranties.  As of the time when each of its Accounts arises, each Grantor 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 Grantor, 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 Grantor, 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.

 

3.2  Maintenance of Records.  Each Grantor 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 Grantor will make the same available on such Grantor’s premises to the Collateral Agent for inspection, at such Grantor’s own cost and expense, at any and all reasonable times upon prior notice to such Grantor and otherwise in accordance with the Indenture Documents.  Upon the occurrence and during the continuance of an Event of Default and at the request of the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture), such Grantor shall, at its own cost and expense, deliver all tangible evidence of its Accounts and Contract Rights (including, without limitation, all documents evidencing the Accounts and all Contracts) and such books and records to the Collateral Agent or to its representatives (copies of which evidence and books and records may be retained by such Grantor).  Upon the occurrence

 

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and during the continuance of an Event of Default and if the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture) so directs, such Grantor shall legend, in form and manner satisfactory to the Collateral Agent, the Accounts and the Contracts, as well as books, records and documents (if any) of such Grantor evidencing or pertaining to such Accounts and Contracts with an appropriate reference to the fact that such Accounts and Contracts have been assigned to the Collateral Agent and that the Collateral Agent has a security interest therein.

 

3.3  Direction to Account Debtors; Contracting Parties; etc.  Upon the occurrence and during the continuance of an Event of Default, if the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture) so directs any Grantor, such Grantor 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 Grantor.  Without notice to or assent by any Grantor, the Collateral Agent may, upon the occurrence and during the continuance of an Event of Default, apply any or all amounts then in, or thereafter deposited in, the Cash Collateral Account toward the payment of the Secured Obligations in the manner provided in Section 8.4 of this Agreement.  The reasonable costs and expenses of collection (including reasonable attorneys’ fees and expenses), whether incurred by a Grantor or the Collateral Agent, shall be borne by the relevant Grantor.  The Collateral Agent shall deliver a copy of each notice referred to in the preceding clause (y) to the relevant Grantor; provided that the failure by the Collateral Agent to so notify such Grantor shall not affect the effectiveness of such notice or the other rights of the Collateral Agent created by this Section 3.3.

 

3.4  Modification of Terms; etc.  Except in accordance with such Grantor’s ordinary course of business and consistent with reasonable business judgment or as permitted by Section 3.5, no Grantor 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 (acting at the written request of the Requisite Noteholders under the Indenture).  No Grantor will do anything to impair the rights of the Collateral Agent in the Accounts or Contracts.

 

3.5  Collection.  Each Grantor 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 (acting at the written request of the Requisite Noteholders under the Indenture) after the occurrence and during the continuation of an Event of Default, any Grantor may allow in the ordinary course of business as adjustments to amounts owing under its Accounts and Contracts

 

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(i) an extension or renewal of the time or times of payment, or settlement for less than the total unpaid balance, which such Grantor 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 Grantor finds appropriate in accordance with reasonable business judgment.  The reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) of collection, whether incurred by a Grantor or the Collateral Agent, shall be borne by the relevant Grantor.

 

3.6  Instruments.  Subject to the Intercreditor Agreement, if any Grantor owns or acquires any Instrument in excess of $1,000,000 constituting Collateral (other than checks and other payment instruments received and collected in the ordinary course of business), such Grantor will within ten (10) Business Days notify the Collateral Agent thereof, and will promptly deliver such Instrument to the Collateral Agent appropriately endorsed to the order of the Collateral Agent.

 

3.7  Grantors Remain Liable Under Accounts.  Anything herein to the contrary notwithstanding, the Grantors 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 Party 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 Party of any payment relating to such Account pursuant hereto, nor shall the Collateral Agent or any other Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Account (or any agreement giving rise thereto), 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.

 

3.8  Grantors Remain Liable Under Contracts.  Anything herein to the contrary notwithstanding, the Grantors 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 other Secured Party 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 Party of any payment relating to such Contract pursuant hereto, nor shall the Collateral Agent or any other Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any 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.

 

3.9  Deposit Accounts; Etc.  (a) No Grantor maintains, or at any time after the date of this Agreement shall establish or maintain, any demand, time, savings, passbook or

 

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similar account, except for 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. Annex F hereto accurately sets forth, as of the date of this Agreement, for each Grantor, each Deposit Account (other than the Excluded Deposit Accounts) maintained by such Grantor (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 the Excluded Deposit Accounts, the Cash Collateral Account or any other Deposit Account maintained with the Collateral Agent), the respective Grantor shall cause the bank with which such Deposit Account is maintained to execute and deliver to the Collateral Agent, within 30 days after the date of this Agreement or, if later, at the time of the establishment of the respective Deposit Account, a “control agreement” substantially in the form of Annex G hereto (appropriately completed), with such changes thereto as may be reasonably required by the parties thereto and acceptable to the Collateral Agent.  If any bank with which a Deposit Account (other than an Excluded Deposit Account) is maintained refuses to, or does not, enter into such a “control agreement”, then the respective Grantor shall promptly (and in any event within thirty (30) days after the date of this Agreement or, if later, 30 days after the establishment of such account) close the respective Deposit Account and transfer all balances therein to the Cash Collateral Account or another Deposit Account meeting the requirements of this Section 3.9.  If any bank with which a Deposit Account (other than an Excluded Deposit Account) is maintained refuses to subordinate all its claims (other than those customary carve-outs set forth in Annex G) with respect to such Deposit Account to the Collateral Agent’s security interest therein, then the Grantor shall terminate such Deposit Account in accordance with the immediately preceding sentence.

 

(b)           After the date of this Agreement, no Grantor 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) and Excluded Deposit Accounts.  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 Grantor shall furnish to the Collateral Agent a supplement to Annex F hereto containing the relevant information with respect to the respective Deposit Account and the bank with which same is established.

 

3.10  Letter-of-Credit Rights.  If any Grantor is at any time a beneficiary under a letter of credit with a stated amount of $1,000,000 or more, such Grantor shall promptly notify the Collateral Agent thereof in writing and such Grantor shall use its reasonable best 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 applied as provided in this Agreement after the occurrence and during the continuance of an Event of Default.

 

3.11  Commercial Tort Claims.  All Commercial Tort Claims of each Grantor in existence on the date of this Agreement are described in Annex H hereto.  If any Grantor shall at any time after the date of this Agreement acquire a Commercial Tort Claim in an amount (taking 

 

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the greater of the aggregate claimed damages thereunder or the reasonably estimated value thereof) of $1,000,000 or more, such Grantor shall promptly notify the Collateral Agent thereof in a writing signed by such Grantor 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.

 

3.12  Further Actions.  Each Grantor will, at its own expense, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such vouchers, invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements, certificates, reports 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 may be reasonably necessary to perfect the security interest of the Collateral Agent therein.

 

ARTICLE IV

 

SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES

 

4.1  Additional Representations and Warranties.  Each Grantor represents and warrants that it is the true and lawful owner of or otherwise has the valid right to use the registered Marks and Domain Names listed in Annex I hereto for such Grantor and that said listed Marks and Domain Names include all United States Marks and applications for United States Marks registered in the United States Patent and Trademark Office or in any foreign office that issues or registers intellectual property and all Domain Names that such Grantor owns or uses in connection with its business as of the date hereof.  Each Grantor represents and warrants that it owns, is licensed to use or otherwise has the valid right to use, all Marks and Domain Names that it uses.  Each Grantor further warrants that it has not received any third party claim that any aspect of such Grantor’s present or contemplated business operations infringes or will infringe any Intellectual Property of any other Person.  Each Grantor represents and warrants that it is the true and lawful owner of or otherwise has the valid right to use all United States trademark registrations and applications and Domain Name registrations listed in Annex I hereto and that said trademark registrations and Domain Name registrations are valid, subsisting, have not been canceled and that such Grantor is not aware of any third-party claim that any of said registrations is invalid or unenforceable, and is not aware that there is any reason that any of said registrations is invalid or unenforceable, and is not aware that there is any reason that any of said applications will not mature into registrations.  Each Grantor 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 or in any foreign office that issues or registers intellectual property or similar registrar in order to effect an absolute assignment of all right, title and interest in each Mark and/or Domain Name, and record the same.

 

4.2  Licenses and Assignments.  Except as otherwise permitted by the Indenture Documents, each Grantor hereby agrees not to divest itself of any right under any Mark or Domain Name absent prior written approval of the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture).

 

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4.3  Infringements.  Each Grantor agrees, promptly upon learning thereof, to notify the Collateral Agent in writing within fifteen (15) days, of the name and address of, and to furnish such pertinent information that may be available with respect to, any party who such Grantor believes is, or may be, infringing or diluting or otherwise violating any of such Grantor’s rights in and to any Mark or Domain Name or with respect to any party claiming that such Grantor’s use of any Mark or Domain Name violates in any material respect any property right of that party.  Each Grantor further agrees to prosecute diligently in accordance with reasonable business practices any Person infringing any Mark or Domain Name in any manner.

 

4.4  Preservation of Marks and Domain Names.  Each Grantor agrees to use its Marks and Domain Names which are used in connection with Grantor’s business in interstate commerce during the time in which this Agreement is in effect and to take all such other actions as are reasonably necessary to preserve such Marks as trademarks or service marks under the laws of the United States or any foreign law (other than any such Marks which are no longer used or useful in its business or operations).

 

4.5  Maintenance of Registration.  Each Grantor shall, at its own expense, diligently process all documents reasonably required to maintain all Mark and/or Domain Name registrations, including but not limited to affidavits of use and applications for renewals of registration in the United States Patent and Trademark Office or in any foreign office that issues or registers intellectual property for all of its material registered Marks, and all filings and registrations with an appropriate Domain Name registrar, and shall pay all fees and disbursements in connection therewith and shall not abandon any such filing of affidavit of use or any such application of renewal prior to the exhaustion of all administrative and judicial remedies without prior written consent of the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture) (other than with respect to registrations and applications deemed by such Grantor in its reasonable business judgment to be no longer prudent to pursue).

 

4.6  Future Registered Marks and Domain Names.  If any Mark registration is issued hereafter to any Grantor as a result of any application to register a Mark now or hereafter pending before the United States Patent and Trademark Office or in any foreign office that registers intellectual property or any Domain Name is registered with an appropriate domain name registrar by Grantor, within thirty (30) days of receipt of such certificate or similar indicia of ownership, such Grantor 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 and/or Domain Name, to the Collateral Agent and at the expense of such Grantor, confirming the grant of a security interest in such Mark and/or Domain Name to the Collateral Agent hereunder, the form of such security to be substantially in the form of Annex L hereto.

 

4.7  Remedies.  If an Event of Default shall occur and be continuing, the Collateral Agent may (acting at the written request of the Requisite Noteholders under the Indenture), by written notice to the relevant Grantor, take any or all of the following actions:  (i) declare the entire right, title and interest of such Grantor in and to each of the Marks and Domain Names, together with all trademark rights and rights of protection to the same, vested in the Collateral Agent for the benefit of the Secured Parties, in which event such rights, title and interest shall immediately vest, in the Collateral Agent for the benefit of the Secured Parties, and 

 

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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 associated therewith of such Grantor’s business symbolized by the Marks or Domain Names and the right to carry on the business and use the assets of such Grantor in connection with which the Marks or Domain Names have been used; and (iii) direct such Grantor to refrain, in which event such Grantor shall refrain, from using the Marks or Domain Names in any manner whatsoever, directly or indirectly, and such Grantor shall execute such further documents that the Collateral Agent may reasonably request to further confirm this and to transfer ownership of the Marks or Domain Names and registrations and any pending trademark applications in the United States Patent and Trademark Office or in any foreign office that registers intellectual property or applicable Domain Name registrar to the Collateral Agent.

 

4.8  Notice of Adverse Proceeding.  Grantors shall promptly notify the Collateral Agent in writing of any proceeding, or notice of such, in the United States Patent and Trademark Office or in any foreign office that registers intellectual property or any federal, state, local, or foreign court or administrative bodies, regarding Grantors’ claim of ownership to any Mark or Domain Name.

 

ARTICLE V

 

SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS

 

5.1  Additional Representations and Warranties.  Each Grantor represents and warrants that it is the true and lawful owner of all rights in (i) all Trade Secret Rights, (ii) the Patents listed in Annex J hereto for such Grantor and that said Patents include all the United States patents and United States patent applications that such Grantor owns as of the date hereof and (iii) the Copyrights listed in Annex K hereto for such Grantor and that said Copyrights include all the United States copyrights registered with the United States Copyright Office or in any foreign office that registers intellectual property and applications to United States copyrights that such Grantor owns as of the date hereof.  Each Grantor further warrants that it has not received any third party claim that any aspect of such Grantor’s present or contemplated business operations infringes or will infringe any patent of any other Person or such Grantor has misappropriated any Trade Secret or proprietary information.  Each Grantor hereby grants to the Collateral Agent an absolute power of attorney to sign, upon the occurrence and during the continuance of any Event of Default, any document which may be required by the United States Patent and Trademark Office or the United States Copyright Office or in any foreign office that registers intellectual property in order to effect an absolute assignment of all right, title and interest in each Patent or Copyright, and to record the same.

 

5.2  Licenses and Assignments.  Except as otherwise permitted by the Indenture Documents, each Grantor hereby agrees not to divest itself of any right under any Patent or Copyright absent prior written approval of the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture).

 

5.3  Infringements.  Each Grantor agrees, promptly upon learning thereof, to furnish the Collateral Agent in writing, within fifteen (15) days, with all pertinent information 

 

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available to such Grantor with respect to any infringement, contributing infringement or active inducement to infringe or other violation of such Grantor’s rights in any Patent or Copyright or to any claim that the practice of any Patent or use of any Copyright violates any property right of a third party, or with respect to any misappropriation of any Trade Secret Right or any claim that practice of any Trade Secret Right violates any property right of a third party.  Each Grantor further agrees to diligently prosecute, in accordance with its reasonable business judgment, any Person infringing any Patent or Copyright or any Person misappropriating any Trade Secret Right.

 

5.4  Maintenance of Patents or Copyrights.  At its own expense, each Grantor shall make timely payment of all post-issuance fees required to maintain in force its rights under each Patent or Copyright, absent prior written consent of the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture) (other than any such Patents or Copyrights which are no longer used or are deemed by such Grantor in its reasonable business judgment to no longer be useful in its business or operations).

 

5.5  Prosecution of Patent or Copyright Applications.  At its own expense, each Grantor shall diligently prosecute all applications for (i) United States Patents listed in Annex J hereto and (ii) Copyrights listed on Annex K hereto, in each case for such Grantor and shall not abandon any such application prior to exhaustion of all administrative and judicial remedies (other than applications that are deemed by such Grantor in its reasonable business judgment to no longer be necessary in the conduct of the Grantor’s business).

 

5.6  Future Patents and Copyrights.  Within thirty (30) days of the acquisition or issuance of a United States Patent, registration of a Copyright, or acquisition of a registered Copyright, or of filing of an application for a United States Patent or Copyright, the relevant Grantor shall deliver to the Collateral Agent a copy of said Copyright or Patent, or certificate or registration of, or application therefor, as the case may be, with a grant of a security interest as to such Patent or Copyright, as the case may be, to the Collateral Agent and at the expense of such Grantor, confirming the grant of a security interest, the form of such grant of a security interest to be substantially in the form of Annex M or N hereto, as appropriate.

 

5.7  Remedies.  If an Event of Default shall occur and be continuing, the Collateral Agent may (acting at the written request of the Requisite Noteholders under the Indenture), by written notice to the relevant Grantor, take any or all of the following actions:  (i) declare the entire right, title, and interest of such Grantor in each of the Patents and Copyrights vested in the Collateral Agent for the benefit of the Secured Parties, in which event such right, title, and interest shall immediately vest in the Collateral Agent for the benefit of the Secured Parties, in which case the Collateral Agent shall be entitled to exercise the power of attorney referred to in Section 5.1 hereof to execute, cause to be acknowledged and notarized and to record said absolute assignment with the applicable agency; (ii) take and practice or sell the Patents and Copyrights; and (iii) direct such Grantor to refrain, in which event such Grantor shall refrain, from practicing the Patents and using the Copyrights directly or indirectly, and such Grantor shall execute such further documents as may be reasonably necessary to confirm this and to transfer ownership of the Patents and Copyrights to the Collateral Agent for the benefit of the Secured Parties.

 

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5.8  Notice of Adverse Proceeding.  Grantors shall promptly notify the Collateral Agent in writing of any proceeding, or notice of such, in the United States Patent and Trademark Office or United States Copyright Office or in any foreign office that registers intellectual property or any federal, state, local, or foreign court or administrative bodies, regarding Grantors’ claim of ownership to any Patent or Copyright.

 

ARTICLE VI

 

SPECIAL PROVISIONS CONCERNING EQUITY INTERESTS

 

6.1  Delivery of Certificated Equity Interests.  All certificates or instruments representing or evidencing Equity Interests shall be delivered to and held by or on behalf of the Collateral Agent pursuant to Section 1.3 and this Section 6.1.  All such certificates or instruments shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance acceptable to Collateral Agent.  Collateral Agent shall have the right (acting at the written request of the Requisite Noteholders under the Indenture), at any time in its discretion and without prior notice to any Grantor, following the occurrence and during the continuation of an Event of Default, to transfer to or to register in the name of Collateral Agent or any of its nominees any or all of the Collateral and to exchange certificates or instruments representing or evidencing Collateral for certificates or instruments of smaller or larger denominations; provided, however, that once such Event of Default has been cured, Collateral Agent will promptly transfer to or register in the name or cause its nominees to transfer to or register in the name of any applicable Grantor all such Collateral.  In furtherance of the foregoing and subject to the Intercreditor Agreement, each Grantor shall further execute and deliver to Collateral Agent an irrevocable stock power in the form of Annex O with respect to the ownership interest(s) of each Pledged Entity owned by each applicable Grantor.

 

6.2  Delivery of Uncertificated Equity Interests.  If any Equity Interests are uncertificated, the Grantor owning or holding such Equity Interests shall cause the issuer thereof to duly authorize, execute and deliver to the Collateral Agent a control agreement for the benefit of the Collateral Agent and the other Secured Parties pursuant to which such issuer agrees to comply with any and all instructions originated by the Collateral Agent without further consent by the registered owner and not to comply with instructions regarding such Equity Interests originated by any other Person other than a court of competent jurisdiction.   If any Equity Interests are credited on the books of a clearing corporation or securities intermediary (each as defined in the UCC), the Grantor owing or holding such Equity Interest shall promptly notify the Collateral Agent thereof in writing and shall promptly take 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 Collateral Agent under applicable law.

 

6.3  Voting Rights.  For so long as any Grantor shall have the right to vote the interests of Investment Property owned by it, such Grantor covenants and agrees that it will not, without the prior written consent of the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture), vote or take any consensual action with respect to such Investment Property interests which would materially adversely affect the rights of the Collateral Agent and the other Secured Parties or the value of the Investment Property.

 

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ARTICLE VII

 

PROVISIONS CONCERNING ALL COLLATERAL

 

7.1  Protection of Collateral Agent’s Security.  Except as otherwise permitted by the Indenture Documents, each Grantor will do nothing to impair the rights of the Collateral Agent in the Collateral.  Each Grantor will at all times maintain insurance, at such Grantor’s own expense to the extent and in the manner provided in the Indenture Documents.  Except to the extent otherwise permitted to be retained by such Grantor or applied by such Grantor pursuant to the terms of the Indenture Documents, the Collateral Agent shall, at the time any proceeds of such insurance are distributed to it, apply such proceeds in accordance with the requirements of the Indenture.  Each Grantor assumes all liability and responsibility in connection with the Collateral acquired by it and the liability of such Grantor to pay the Secured Obligations shall in no way be affected or diminished by reason of the fact that such Collateral may be lost, destroyed, stolen, damaged or for any reason whatsoever unavailable to such Grantor.

 

7.2  Maintenance of Collateral.  Each Grantor will endeavor to maintain, at such Grantor’s own expense, all physical Collateral in good order and repair, normal wear excepted.  This provision does not apply to Collateral that is obsolete and no longer used in Grantors’ businesses.

 

7.3  Warehouse Receipts Non-Negotiable.  To the extent practicable, each Grantor 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 Grantor 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).

 

7.4  Additional Information.  Each Grantor will, at its own expense, from time to time, promptly (and in any event within 10 days of the occurrence of any such event) furnish to the Collateral Agent such information with respect to any changes in the Collateral (including the acquisition and identity of any new Collateral or such components thereof, the value and location of such Collateral, etc.) as may necessary to perfect the security interest of the Collateral Agent therein.  Without limiting the forgoing, each Grantor agrees that it shall promptly (and in any event within 10 days after the occurrence of any change) furnish to the Collateral Agent updates to the Annexes hereto.

 

7.5  Further Actions.  Each Grantor 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 may be reasonably necessary to perfect, preserve or protect the security interest of the Collateral Agent in the Collateral.

 

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7.6  Financing Statements.  Each Grantor agrees to execute and deliver to the Collateral Agent such financing statements as may be reasonably necessary 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 Grantor will pay any applicable filing fees, recordation taxes and related expenses relating to its Collateral.  Each Grantor hereby authorizes the Collateral Agent to file any such financing statements without the signature of such Grantor where permitted by law (and such authorization includes describing the Collateral as “all assets” or “all personal property” of such Grantor).

 

ARTICLE VIII

 

REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

 

8.1  Remedies; Obtaining the Collateral Upon Default.  Each Grantor agrees that, if any Event of Default shall have occurred and be continuing, then and in every such case and subject to the terms of the Intercreditor Agreement, the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture), 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, subject to the terms of the Intercreditor Agreement, may:

 

(i)            personally, or by agents or attorneys, immediately take possession of the Collateral or any part thereof, from such Grantor 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 Grantor’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 Grantor;

 

(ii)           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 Grantor in respect of such Collateral;

 

(iii)          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;

 

(iv)          sell, assign or otherwise liquidate any or all of the Collateral or any part thereof in accordance with Section 8.2 hereof, or direct such Grantor 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;

 

(v)           take possession of the Collateral or any part thereof, by directing such Grantor in writing to deliver the same to the Collateral Agent at any reasonable place or 

 

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places designated by the Collateral Agent, in which event such Grantor 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 8.2 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;

 

(vi)          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;

 

(vii)         apply any monies constituting Collateral or proceeds thereof in accordance with the provisions of Section 8.4; and

 

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

 

it being understood that each Grantor’s obligation so to deliver the Collateral is of the essence of this Agreement and that, accordingly, subject to the terms of the Intercreditor Agreement and upon application to a court of equity having jurisdiction, the Collateral Agent shall be entitled to a decree requiring specific performance by such Grantor of said obligation.

 

8.2  Remedies; Disposition of the Collateral.  If any Event of Default shall have occurred and be continuing, then any Collateral repossessed by the Collateral Agent under or pursuant to Section 8.1 hereof, in accordance with the terms of the Intercreditor Agreement 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 may, in compliance with any mandatory requirements of applicable law, 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 Grantor in a commercially reasonable manner.  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 

 

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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 or its nominee may bid for and become the purchaser (and may pay all or any portion of the purchase price by crediting Secured Obligations against the purchase price) of the Collateral or any item thereof, offered for disposition in accordance with this Section 8.2 without accountability to the relevant Grantor.  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 Grantor as hereinabove specified, the Collateral Agent need give such Grantor only such notice of disposition as shall be required by such applicable law.  Each Grantor 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 Grantor’s expense.

 

8.3  Waiver of Claims.  Except as otherwise provided in this Agreement, EACH GRANTOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH 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 Grantor hereby further waives, to the extent permitted by law:

 

(i)            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);

 

(ii)           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

 

(iii)          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 Grantor, for itself and all who may claim under it, insofar as it or they now or hereafter lawfully may, hereby waives the benefit of all such laws.

 

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

 

8.4  Application of Proceeds.  (a)  All moneys collected by the Collateral Agent upon any sale or other disposition of the Collateral in accordance with the terms of this

 

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Agreement and the Intercreditor Agreement, together with all other moneys received by the Collateral Agent hereunder, shall be applied in accordance with the provisions of the Indenture.

 

(b)           All payments required to be made hereunder shall be made to the Collateral Agent for the account of the Secured Parties.  It is understood that the Grantors 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.

 

8.5  Right of Use.  The Collateral Agent is hereby granted a license or other right to use, without liability for royalties or any other charge, each Grantor’s labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names, Trademarks, service markets and advertising matter, URLs, domain names, industrial designs, other industrial or intellectual property or any property of a similar nature, whether owned by any of Grantors or with respect to which any of Grantors have rights under license, sublicense or other agreements, as it pertains to the Collateral, in preparing for sale, advertising for sale and selling any Collateral, and each Grantor’s rights under all licenses and all franchise agreements shall inure to the benefit of the Collateral Agent.

 

8.6  Right to Perform Contracts.  Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent (or its designee) may proceed to perform any and all of the obligations of any Grantor contained in any contract, lease or other agreement and exercise any and all rights of any Grantor therein contained as fully as such Grantor itself could.

 

8.7  Voting Rights.  Upon the occurrence and during the continuation of an Event of Default, (i) the Collateral Agent may, at its option, and with prior notice to any Grantor, and in addition to all rights and remedies available to the Collateral Agent under any other agreement, at law, in equity or otherwise, exercise all voting rights, and all other ownership or consensual rights in respect of the Investment Property owned by such Grantor, but under no circumstances is the Collateral Agent obligated by the terms of this Agreement to exercise such rights, and (ii) if the Collateral Agent duly exercises its right to vote any of such Investment Property, each Grantor hereby appoints the Collateral Agent such Grantor’s true and lawful attorney-in-fact and IRREVOCABLE PROXY to vote such Investment Property interests in any manner the Collateral Agent (acting at the written request of the Requisite Noteholders under the Indenture) deems advisable for or against all matters submitted or which may be submitted to a vote of shareholders, partners or members, as the case may be.  The power-of-attorney granted hereby is coupled with an interest and shall be irrevocable.

 

8.8  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 Indenture Documents 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 Secured Obligations shall

 

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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 Grantor 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 expenses, and the amounts thereof shall be included in such judgment.

 

8.9  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 Grantor, the Collateral Agent and each holder of any of the Secured 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.

 

ARTICLE IX

 

INDEMNITY

 

9.1  Indemnity.  (a)  Each Grantor jointly and severally agrees to indemnify, reimburse and hold the Collateral Agent, each other Secured Party and their respective successors, assigns, officers, directors, employees, affiliates and agents (hereinafter in this Section 9.1 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 Section 9.1 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 Indenture Document or any other document executed in connection herewith or therewith or in any other way connected with the administration of the transactions contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to or arising out of the manufacture, ownership, ordering, purchase, delivery, control, acceptance, lease, financing, possession, operation, condition, sale, return or other disposition, or use of the Collateral (including, 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 9.1(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 Grantor agrees that upon written notice by any Indemnitee of the assertion of such a liability, obligation, damage, injury, penalty, claim, demand, action, suit or judgment, at the Indemnitee’s sole discretion, the

 

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relevant Grantor shall defend any such liability, obligation, damage, injury, penalty, claim, demand, action, suit or judgment asserted against the Indemnitee, with counsel satisfactory to the Indemnitee, and the Indemnitee shall cooperate in the defense at the Issuer’s and the Grantor’s expense.  The Indemnitee may have one separate counsel and the Issuer and the Grantor shall pay the reasonable fees and expenses of such counsel.  The Issuer and the Grantor need not pay for any settlement made without their consent, which consent shall not be unreasonably withheld.  Each Indemnitee agrees to use its best efforts to promptly notify the relevant Grantor of any such assertion of which such Indemnitee has knowledge.

 

(b)           Without limiting the application of Section 9.1(a) hereof, each Grantor 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 9.1(a) or (b) hereof, each Grantor 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 misrepresentation by any Grantor in this Agreement, any other Indenture Document or in any writing contemplated by or made or delivered pursuant to or in connection with this Agreement or any other Indenture Document.

 

(d)           If and to the extent that the obligations of any Grantor under this Section 9.1 are unenforceable for any reason, such Grantor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.

 

9.2  Indemnity Obligations Secured by Collateral; Survival.  Any amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Secured Obligations secured by the Collateral.  The indemnity obligations of each Grantor contained in this Article IX shall continue in full force and effect notwithstanding the full payment of all of the Secured Obligations and notwithstanding the full payment of all the Notes issued under the Indenture Documents, and the occurrence of the Termination Date.

 

ARTICLE X

 

DEFINITIONS

 

The following terms shall have the meanings herein specified.  Capitalized terms used in this Agreement and not otherwise defined herein shall have the meaning assigned to

 

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them in the Indenture.  The rules of construction set forth in Section 1.04 of the Indenture shall be applicable to this Agreement and are incorporated herein by this reference.

 

“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.

 

“Agreement” shall mean this Pledge and 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.

 

“BNYMTC” shall have the meaning provided in the first paragraph 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 Parties.

 

“CFC” shall mean a controlled foreign corporation within the meaning of Section 957(a) of the Internal Revenue Code of 1986 and any entity that wholly-owns the stock of a CFC and which is disregarded for United States federal income tax purposes as an entity that is separate from its owner.

 

“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.

 

“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 Grantor 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 Grantor and one or more additional parties (including, without limitation, any licensing agreements and any partnership agreements, joint venture agreements and limited liability company agreements).

 

“Copyrights” shall mean any United States or foreign copyright now or hereafter held by any Grantor, including any registrations of any copyrights in the United States Copyright Office or any foreign equivalent office, as well as any application for a copyright registration now or hereafter made, including copyrightable works for which a registration is or will be filed, with the United States Copyright Office or any foreign equivalent office by any Grantor.

 

“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 Grantor 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 Grantor 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.

 

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

 

“Excluded Collateral” shall mean:

 

(1)           the voting Capital Stock of any CFC in excess of 65% of all of the outstanding voting Capital Stock of such CFC;

 

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

 

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

 

(4)           property and assets owned by a Grantor that are the subject of Permitted Liens described in clause (7) of the definition thereof for so long as such Permitted Liens are in effect and the Indebtedness secured thereby otherwise prohibits any other Liens thereon;

 

(5)           Excluded Deposit Accounts; and

 

(6)           any Equity Interests of the Issuer’s Subsidiaries to the extent that the pledge of such Equity Interests results in the Issuer being required to file separate financial statements of such Subsidiary with the SEC, but only to the extent necessary for the Issuer not to be subject to such requirement and only for so long as such requirement is in existence; provided  that neither the Issuer nor any of its Subsidiaries shall take any action in the form of a reorganization, merger or other restructuring a principal purpose of which is to provide for the release of the Lien on any securities pursuant to this clause.

 

“Excluded Deposit Accounts” shall mean deposit accounts of the Issuer or any other Grantor exclusively used for payroll, payroll taxes and other employee wage and benefit payments or for governmental authorities in connection with licenses and permits.

 

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

 

“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.

 

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

 

“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.

 

“Indemnitee” shall have the meaning provided in Section 9.1(a) of this Agreement.

 

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“Indenture Document Obligations” shall have the meaning provided in the definition of “Secured Obligations” in this Article X.

 

“Intellectual Property”  means any of the following in any jurisdiction throughout the world:  (a) patents, patent applications, patent disclosures and inventions, including any continuations, divisions, continuations-in-part, renewals and reissues for any of the foregoing; (b) Internet domain names, trademarks, service marks, trade dress, trade names, logos, slogans, and corporate names, and registrations and applications for registration thereof, together with all of the goodwill associated therewith; (c) copyrights (registered or unregistered) and copyrightable works and registrations and applications for registration thereof; (d) mask works and registrations and applications for registration thereof; (e) computer software, data, databases and documentation thereof; (f) rights or privacy and rights of publicity; (g) trade secrets and other confidential information (including ideas, formulas, compositions, inventions (whether patentable or unpatentable and whether or not reduced to practice), know-how, manufacturing and production processes and techniques, research and development information, drawings, specifications, designs, plans, proposals, technical data, copyrightable works, financial and marketing plans and customer and supplier lists and information) (h) all of the intellectual property or industrial property recognized by applicable Law; and (i) copies and tangible embodiments thereof (in whatever form or medium).

 

“Intercreditor Agreement” shall mean the intercreditor agreement, dated as of the date hereof, among SunTrust Bank in its capacity as the Collateral Agent thereunder, BNYMTC in its capacity as collateral agent thereunder, the Issuer and certain other Grantors from time to time party thereto, as it may be amended, restated, supplemented and/or otherwise modified from to time to time in accordance with the Indenture.

 

“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 Grantor’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.

 

“Issuer” shall have the meaning provided in the preamble 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.

 

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

 

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

 

“Marks” shall mean all right, title and interest in any jurisdiction throughout the world in and to any trademarks, service marks, trade dress, trade names, logos, slogans, and corporate names and registrations, intent-to-use applications and applications for registrations thereof, together with all the goodwill associated therewith, now held or hereafter acquired by any Grantor which 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 any unregistered trademarks and service marks used by a Grantor and any trade dress including logos, designs, fictitious business names and other business identifiers used by any Grantor.

 

“Parent Pledge Agreement” shall mean the Nonrecourse Guaranty and Pledge Agreement dated as of the date hereof between Affinity Group Holdings, Inc. and the Collateral Agent.

 

“Partnership Interest” shall mean the entire general partnership interest or limited partnership interest at any time owned by any Grantor in any general partnership or limited partnership; provided that the term “Partnership Interest” shall not include any partnership interest (general or limited) in any partnership that is not a Subsidiary of any Grantor to the extent (and only for so long as) the partnership agreement for such partnership or applicable law prohibits the assignment of, or granting of a security interest in, the partnership interests of such partnership and such prohibitions are not rendered invalid by Section 9-406 or Section 9-408 of the UCC, it being understood and agreed, however, any such excluded partnership interest shall otherwise be subject to the security interests created by this Agreement (and shall become a “Partnership Interest” for all purposes of this Agreement) upon the receipt by such Grantor of any necessary approvals or waivers permitting the assignment thereof or the granting of a security interest therein.

 

“Patents” shall mean any United States or foreign registered patent or patent application, published or otherwise, in or to which any Grantor now or hereafter has any right, title or interest therein, and any divisions, continuations (including, but not limited to, continuations-in-parts), renewals and reissues for the foregoing and improvements thereof, as well as any United States or foreign patent application for now or hereafter made by any Grantor, and any inventions or patent disclosures for which a patent application may be filed.

 

“Permitted Liens” shall have the meaning provided in the Indenture.

 

“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.

 

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“Post Closing Filings” shall mean the actions required to be taken within ninety (90) days following the Issue Date pursuant to Sections 5.25 and 13.12 of the Indenture.

 

“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 Grantor 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 Grantor 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.

 

“Requisite Noteholders” shall mean the Holders of a majority in aggregate principal amount of the then outstanding Notes.

 

“Secured Obligations” shall mean and include 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 Grantor at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding), fees, costs and indemnities) of such Grantor to the Secured Parties, whether now existing or hereafter incurred under, arising out of, or in connection with, each Indenture Document to which such Grantor is a party (including, without limitation, in the event such Grantor is a Guarantor, all such obligations, liabilities and indebtedness of such Grantor under its Guarantee) and the due performance and compliance by such Grantor with all of the terms, conditions and agreements contained in each such Indenture Document (all such obligations, liabilities and indebtedness under this clause (i) being herein collectively called the “Indenture Document Obligations”);

 

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

 

(iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations, or liabilities of such Grantor 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;

 

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(iv) all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement under Section 9.1 of this Agreement; and

 

(v) all amounts owing to the Collateral Agent or any other Secured Party pursuant to any of the Indenture Documents in its capacity as such.

 

“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 Grantor, or in which any Grantor has any rights, and, in any event, shall include, but shall not be limited to all of such Grantor’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 mean the date on which this Agreement may be terminated and the liens evidenced hereby may be released pursuant to Section 13.05 of the Indenture.

 

“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, production procedures, ideas, formulae, compositions, inventions (whether patentable or unpatentable and whether or not reduced to practice) and other know-how relating to the design, manufacture, production processes and techniques, assembly, research and development information, drawings, specifications, plans, proposals, technical data, copyrightable works, installation, use, operation, financial plans, marketing plans, customer lists, supplier lists, marketing, sale and/or servicing of any products or business of a Grantor worldwide whether written or not.

 

“Trade Secret Rights” shall mean the rights of a Grantor in any Trade Secret it holds.

 

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

 

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

 

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

 

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ARTICLE XI

 

MISCELLANEOUS

 

11.1  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, fax or courier service and all such notices and communications shall, when mailed, faxed or sent by courier, be effective when deposited in the mails, delivered to the overnight courier, as the case may be, or sent by fax, except that notices and communications to the Collateral Agent or any Grantor shall not be effective until received by the Collateral Agent or such Grantor, as the case may be.  All notices and other communications shall be in writing and addressed as follows:

 

(a)           if to any Grantor, to them c/o:

 

Affinity Group, Inc.

2575 Vista Del Mar Drive

Ventura, California 93001

Attention: Chief Financial Officer

Fax No.: 805-667-4419

 

(b)           if to the Collateral Agent at:

 

The Bank of New York Mellon Trust Company, N.A.

700 South Flower Street

Suite 500

Los Angeles, California 90017

Attention:  Corporate Trust Administration

Fax No.:  213-630-6298

 

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.

 

11.2  Waiver; Amendment.  Except as provided in Sections 11.8 and 11.13, none of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever unless in writing duly signed by each Grantor directly affected thereby (it being understood that the addition or release of any Grantor hereunder shall not constitute a change, waiver, discharge or termination affecting any Grantor other than the Grantor so added or released) and the Collateral Agent (with the written consent of the Requisite Noteholders).

 

11.3  Obligations Absolute.  The obligations of each Grantor 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 Grantor; (b) any exercise or non-exercise, or any waiver of, any right, remedy, power or privilege under or in respect of this Agreement, the Intercreditor Agreement or any other Indenture Document; or (c) any amendment to or modification of any Indenture Document,

 

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the Intercreditor Agreement or any security for any of the Obligations; whether or not such Grantor shall have notice or knowledge of any of the foregoing.

 

11.4  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 11.8, (ii) be binding upon each Grantor, its successors and assigns; provided, however, that no Grantor 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 Requisite Noteholders), and (iii) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent, the other Secured Parties and their respective successors, transferees and assigns. All agreements, statements, representations and warranties made by each Grantor herein or in any certificate or other instrument delivered by such Grantor or on its behalf under this Agreement shall be considered to have been relied upon by the Secured Parties and shall survive the execution and delivery of this Agreement and the Indenture Documents regardless of any investigation made by the Secured Parties or on their behalf.

 

11.5  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.

 

11.6  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 INDENTURE 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 GRANTOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS.  EACH GRANTOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH GRANTOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INDENTURE DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS JURISDICTION OVER SUCH GRANTOR.  EACH GRANTOR 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 GRANTOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 11.1 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  EACH GRANTOR 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 INDENTURE DOCUMENT THAT SUCH SERVICE OF PROCESS

 

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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 GRANTOR IN ANY OTHER JURISDICTION.

 

(b)           EACH GRANTOR 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 INDENTURE 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 INDENTURE DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

11.7  Grantor’s Duties.  It is expressly agreed, anything herein contained to the contrary notwithstanding, that each Grantor 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 Grantor under or with respect to any Collateral.

 

11.8  Termination; Release.  (a)  After the Termination Date, this Agreement shall terminate (provided that all indemnities set forth herein including, without limitation in Section 9.1 hereof, shall survive such termination) and the Collateral Agent, at the request and expense of the respective Grantor, will promptly execute and deliver to such Grantor a proper instrument or instruments (in form and substance satisfactory to the Collateral Agent) (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 Grantor (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.

 

(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 date on which the Indenture Discharge Date has occurred and all Notes have been paid in full and are no longer outstanding in accordance with the Indenture, or (y) at any time thereafter, to the extent permitted by the Indenture Documents and the Intercreditor Agreement, 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 any such other Indenture Document or the Intercreditor Agreement, as the case may be,

 

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to the extent required to be so applied, the Collateral Agent, at the request and expense of such Grantor, 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 in form and substance satisfactory to the Collateral Agent) and assign, transfer and deliver to such Grantor (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 Guarantor from a Note Guarantee in accordance with the provisions thereof, such Grantor (and the Collateral at such time assigned by the respective Grantor pursuant hereto) shall be released from this Agreement.

 

(c)           At any time that a Grantor desires that the Collateral Agent take any action to acknowledge or give effect to any release of Collateral pursuant to the foregoing Section 11.8(a) or (b), such Grantor shall deliver to the Collateral Agent a certificate signed by a principal executive officer of such Grantor stating that the release of the respective Collateral is permitted pursuant to such Section 11.8(a) or (b).  At any time that the Issuer or the respective Grantor desires that a Subsidiary of the Issuer which has been released from a Note Guarantee be released hereunder as provided in the last sentence of Section 11.8(b), it shall deliver to the Collateral Agent a certificate signed by a principal executive officer of the Issuer and the respective Grantor stating that the release of the respective Grantor (and its Collateral) is permitted pursuant to such Section 11.8(b). In addition, the relevant Grantor shall furnish to the Collateral Agent appropriate legal opinions (from counsel, reasonably acceptable to the Collateral Agent) to the effect set forth in this Section 11.8(c).

 

(d)           The Collateral Agent shall have no liability whatsoever to any other Secured Party 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 11.8.

 

11.9  Counterparts.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page to this Agreement by facsimile transmission or other electronic means shall be as effective as delivery of a manually signed counterpart of this Agreement.

 

11.10  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.

 

11.11  The Collateral Agent and the other Secured Parties.  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, the Intercreditor Agreement and in Article 13 of the Indenture,.  The Collateral Agent shall act

 

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hereunder on the terms and conditions set forth herein, the Intercreditor Agreement and in Article 13 of the Indenture.

 

11.12  Marshaling.  The Collateral Agent shall not be required to marshal any present or future collateral security (including but not limited to the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security of other assurances of payment in any particular order, and all of its rights and remedies hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising.  To the extent that it lawfully may, each Grantor hereby agrees that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of the Collateral Agent’s rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which and of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefits of all such laws.

 

11.13  Additional Grantors.  It is understood and agreed that any Guarantor that desires to become a Grantor hereunder, or is required to execute a counterpart of this Agreement after the date hereof pursuant to the requirements of the Indenture Documents, shall become a Grantor hereunder by (x) executing a counterpart hereof and delivering same to the Collateral Agent or by executing a joinder agreement substantially in the form of Annex Q hereto 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 F, inclusive, H through K, inclusive, and P hereto as are necessary to cause such Annexes to be complete and accurate with respect to such additional Grantor on such date and (z) taking all actions as specified in this Agreement as would have been taken by such Grantor 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.

 

11.14  Maximum Liability of Each Grantor and Rights of Contribution.  Anything in this Agreement or any other Indenture Document to the contrary notwithstanding, in no event shall the amount of the Secured Obligations secured by this Agreement by any Grantor exceed the maximum amount that (after giving effect to the incurring of the obligations hereunder and to any rights to contribution of such Grantor from other affiliates of the Issuer) would not render the rights to payment of the Collateral Agent and the Secured Parties hereunder void, voidable or avoidable under any applicable fraudulent transfer law.  Grantors hereby agree as among themselves that, in connection with the payments made hereunder, each Grantor shall have a right of contribution from each other Grantor in accordance with applicable law.  Such contribution rights shall be waived until such time as the Obligations have been irrevocably paid in full, and no Grantor shall exercise any such contribution rights until the Secured Obligations have been irrevocably paid in full.

 

11.15  Liability of Collateral Agent.  The parties hereto agree that the Collateral Agent shall be afforded all of the rights, privileges, protections, indemnities and immunities

 

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afforded to the Collateral Agent under the Indenture in connection with its execution of this Agreement and the performance of its duties hereunder.

 

11.16  Intercreditor Agreement.  Notwithstanding anything to the contrary herein, any provision hereof that requires any Grantor to (i) deliver any Credit Facility Priority Collateral to the Collateral Agent or (ii) provide that the Collateral Agent have control over such Collateral may be satisfied by (A) the delivery of such Collateral by such Grantor to the Administrative Agent for the benefit of the Lenders and the Collateral Agent for the benefit of the Secured Parties pursuant to the Intercreditor Agreement, and (B) providing that the Administrative Agent be provided with control with respect to such Collateral of such Grantor for the benefit of the Lenders and the Collateral Agent for the benefit of the Secured Parties pursuant to the Intercreditor Agreement.

 

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

 

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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.

 

 

	
 
    	
GRANTORS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AFFINITY GROUP, INC., as a Grantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Wolfe
    
	
 
    	
 
    	
Name:
    	
Thomas   F. Wolfe
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    	
and   Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AFFINITY   BROKERAGE, INC.
    
	
 
    	
AFFINITY   GUEST SERVICES, INC.
    
	
 
    	
AFFINITY   ROAD AND TRAVEL CLUB, INC.
    
	
 
    	
AGI   PRODUCTIONS, INC.
    
	
 
    	
CAMP   COAST TO COAST INC.
    
	
 
    	
COAST   MARKETING GROUP, INC.
    
	
 
    	
EHLERT   PUBLISHING GROUP, INC.
    
	
 
    	
GOLF   CARD INTERNATIONAL CORP.
    
	
 
    	
GOLF   CARD RESORT SERVICES, INC.
    
	
 
    	
GSS   ENTERPRISES, INC.
    
	
 
    	
POWER   SPORTS MEDIA, INC.
    
	
 
    	
TL   ENTERPRISES, INC.
    
	
 
    	
VBI, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Wolfe
    
	
 
    	
 
    	
Name:
    	
Thomas   F. Wolfe
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    	
and Chief Financial Officer
    

 

AFFINITY GROUP, INC.

Pledge and Security Agreement

 

 

	
 
    	
GRANTORS
    
	
 
    	
 
    
	
 
    	
CAMPING WORLD, INC.
    
	
 
    	
CAMPING WORLD CARD SERVICES, INC.
    
	
 
    	
CAMPING WORLD INSURANCE SERVICES OF KENTUCKY, INC.
    
	
 
    	
CAMPING WORLD INSURANCE SERVICES OF NEVADA, INC.
    
	
 
    	
CAMPING WORLD INSURANCE SERVICES OF TEXAS, INC.
    
	
 
    	
CWI, INC.
    
	
 
    	
CW MICHIGAN, INC.
    
	
 
    	
OUTDOOR BUYS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth Marshall
    
	
 
    	
 
    	
Name:
    	
Kenneth   Marshall
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President
    
	
 
    	
 
    	
 
    	
of   Finance and Information
    

 

AFFINITY GROUP, INC.

Pledge and Security Agreement

 

 

	
Accepted and Agreed to:
    	
 
    
	
 
    	
 
    
	
THE BANK OF NEW YORK MELLON TRUST
    	
 
    
	
COMPANY, N.A., as Collateral Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Raymond Torres
    	
 
    
	
 
    	
Name:
    	
Raymond Torres
    	
 
    
	
 
    	
Title:
    	
Senior Associate
    	
 
    

 

AFFINITY GROUP, INC.

Pledge and Security AgreementExhibit 4.6

 

EXECUTION COPY

 

 

 

INTERCREDITOR AGREEMENT

 

among

 

 

SUNTRUST BANK, 
 in its capacity as Administrative Agent,

 

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

in its capacity as Indenture Agent,

 

 

AFFINITY GROUP, INC.,

 

 

CAMPING WORLD, INC.,

 

 

CWI, INC.,

 

 

AND THE OTHER ENTITIES PARTY HERETO AS GRANTORS

 

Dated and effective as of November 30, 2010

 

 

 

 

INTERCREDITOR AGREEMENT

 

INTERCREDITOR AGREEMENT dated and effective as of November 30, 2010 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this “Intercreditor Agreement”), by and among SUNTRUST BANK, as the administrative agent for the benefit of itself and the other Credit Facility Secured Parties defined below (in such capacity, the “Administrative Agent”), THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., (“BNYMTC”) for the benefit of itself in its capacity as collateral agent for the Indenture Secured Parties and as trustee under the Indenture (in such capacities, the “Indenture Agent”) and acknowledged by AFFINITY GROUP, INC., a Delaware corporation (“AGI”) and by CAMPING WORLD, INC., a Kentucky corporation (“Camping World”), CWI, INC., a Kentucky corporation (“CWI”; and together with Camping World, each individually, a “Borrower” and, collectively, the “Borrowers”), and each of the other Grantors that acknowledge this Intercreditor Agreement from time to time.

 

RECITALS:

 

WHEREAS, a certain Intercreditor Agreement was entered into as of March 1, 2010 among the Administrative Agent, Wilmington Trust FSB in its capacity as term loan administrative agent, and the other parties thereto (the “Original Intercreditor Agreement”) and on such date the Term Loan Credit Agreement, the Term Loan Security Agreement (as each such term is defined in the Original Intercreditor Agreement), the Credit Agreement and the Credit Facility Security Agreement were entered into by the respective parties thereto;

 

WHEREAS, in connection with the transactions contemplated in the Indenture Documents, as of the date hereof, the Term Loan Credit Agreement and the Term Loan Security Agreement (as each such term is defined in the Original Intercreditor Agreement) have been terminated in accordance with their terms and the Term Loan Obligations (as defined in the Original Intercreditor Agreement) have been paid and otherwise satisfied in full;

 

WHEREAS, AGI, Holdings, the Guarantors and BNYMTC in its capacity as trustee for the Note Holders (in such capacity, the “Trustee”) and in its capacity as collateral agent (the “Collateral Agent”) are parties to that certain Indenture, dated as of the date hereof (the “Indenture”) pursuant to which AGI has issued its 11.50% Senior Secured Notes due 2016 (the “Notes”);

 

WHEREAS, pursuant to the terms of the Indenture and the other Indenture Documents, the Note Holders have agreed to purchase the Notes from AGI on the condition, among others, that AGI and the Grantors grant to the Indenture Agent, for the benefit of the Indenture Secured Parties as security for the Indenture Obligations, Indenture Liens on, and security interests in, the Indenture Collateral, and Junior Liens on, and security interests in, the Credit Facility Collateral;

 

WHEREAS, in connection with the sale of the Notes and pursuant to the terms of the Indenture and the other Indenture Documents, AGI, Holdings, the Borrowers, the Grantors and the Administrative Agent, for and on behalf of the Credit Facility Lenders, each desire to amend, supplement or otherwise modify the Credit Agreement as of the date hereof (the Credit

 

 

Agreement as so amended, supplemented or otherwise modified, the “Amended Credit Agreement”);

 

WHEREAS, pursuant to the terms of the Amended Credit Agreement, the Credit Facility Lenders have agreed to continue to make loans and other extensions of credit to the Borrowers on the condition, among others, that the First Priority Claims shall continue to be secured by Senior Liens on, and security interests in, the Credit Facility Collateral;

 

WHEREAS, the Indenture and the Amended Credit Agreement require, among other things, that the parties thereto set forth in this Intercreditor Agreement, among other things, their respective rights, obligations and remedies with respect to the Collateral; and

 

NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS.

 

SECTION 1.01.                      Certain Defined Terms

 

As used in the Intercreditor Agreement, the following terms have the meanings specified below:

 

“Additional New Mortgage Properties” has the meaning assigned thereto in Section 10.06(d).

 

“Administrative Agent” has the meaning assigned to such term in the preamble to this Intercreditor Agreement and includes any successor or replacement Administrative Agent appointed in accordance with the terms of the Credit Facility Documents.

 

“Affinity Pledge Agreement” has the meaning assigned thereto in the Credit Agreement.

 

“AGI” has the meaning assigned to such term in the preamble to this Intercreditor Agreement.

 

“AGI Stock Collateral” means capital stock issued by Camping World, Inc. to AGI subject to Liens in favor of the Administrative Agent pursuant to the Affinity Pledge Agreement and to the Term Loan Administrative Agent (as defined in the Original Intercreditor Agreement) pursuant to the Term Loan Pledge Agreement (as defined in the Original Intercreditor Agreement).

 

“Amended Credit Agreement” has the meaning assigned thereto in the recitals to this Intercreditor Agreement.

 

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereinafter in effect, or any successor statute.

 

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“Bankruptcy Law” means the Bankruptcy Code and any other federal, state or foreign bankruptcy, insolvency, receivership or similar law.

 

“Business Day” means any day that is a “Business Day” under each of the Credit Agreement and the Indenture, as such term is defined in each of the foregoing.

 

“Camping World” has the meaning assigned to such term in the preamble to this Intercreditor Agreement.

 

“Cap Excess Amount” means amounts in excess of the sum of $20,000,000 principal amount plus up to $5,000,000 in face amount of outstanding letters of credit and any accrued interest, fees and expenses constituting First Priority Claims.

 

“Collateral Processing and Sale Period” has the meaning assigned to such term in Section 5.03.

 

“Common Collateral” means collectively, the Credit Facility Collateral and the Indenture Collateral other than any Credit Facility Exclusive Collateral and any Indenture Exclusive Collateral.

 

“Credit Agreement” means the Credit Agreement, dated as of March 1, 2010, among each of the Borrowers, the Credit Facility Lenders and the Administrative Agent.

 

“Credit Facility Collateral” means all “Collateral”, as defined in the Credit Facility Security Agreement, and any other assets of any Grantor now or at any time hereafter subject to Liens securing (or purporting to secure) any First Priority Claims pursuant to any Credit Facility Security Document.

 

“Credit Facility Documents” means the “Loan Documents”, as defined in the Credit Agreement as any of the foregoing are amended, amended and restated, supplemented or otherwise modified from time to time subject to the terms and conditions of this Intercreditor Agreement and any other agreement, document or instrument pursuant to which a Lien is granted by any Grantor to secure any First Priority Claims or under which rights or remedies with respect to any such Lien are governed, in any case, subject to the terms of this Intercreditor Agreement.

 

“Credit Facility Exclusive Collateral” means any assets constituting Credit Facility Collateral that are not also Indenture Collateral.

 

“Credit Facility First Lien Collateral Transition Date” means the date on which all Liens created under the Credit Facility Security Documents on the Credit Facility Collateral shall have been released pursuant to the terms of the Credit Facility Security Documents.

 

“Credit Facility Lenders” means the lenders from time to time party to the Credit Agreement.

 

“Credit Facility Liens” means Liens on the Credit Facility Collateral created under Credit Facility Security Documents to secure any First Priority Claims.

 

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“Credit Facility Secured Parties” means, at any time, (a) the Credit Facility Lenders, (b) the Administrative Agent, (c) SunTrust Bank (or an affiliate thereof) in its capacity as holder or obligee of any First Priority Claims and (d) the successors and assigns of each of the foregoing.

 

“Credit Facility Security Agreement” means the Guaranty and Collateral Agreement, dated as of March 1, 2010, among the Administrative Agent, the Borrowers and the Grantors party thereto.

 

“Credit Facility Security Documents” means the Credit Facility Security Agreement, and each Trademark Security Agreement (as defined in the Credit Facility Security Agreement) and any other agreement, document or instrument pursuant to which a Lien is granted or purported to be granted by any Grantor to secure any First Priority Claims or under which rights or remedies with respect to any such Lien are governed as any of the foregoing are amended, amended and restated, supplemented or otherwise modified from time to time subject to the terms and conditions of this Intercreditor Agreement.

 

“CWI” has the meaning assigned to such term in the preamble to this Intercreditor Agreement.

 

“Debt Documents” means, collectively, the Credit Facility Documents and the Indenture Documents.

 

“Defaulting Creditor” has the meaning assigned to such term in Section 9.06(c) hereof.

 

“DIP Financing” has the meaning assigned to such term in Section 6.01(a)(ii) hereof.

 

“DIP Financing Liens” has the meaning assigned to such term in Section 6.01(a)(ii) hereof.

 

“Disposition” means, with respect to any asset, any sale, lease, exchange, transfer or other disposition of such asset or any interest therein, including, without limitation, the creation of any Lien on or with respect to such asset.  “Dispose” shall have a correlative meaning.

 

“Enforcement Action” means (a) the taking of any action to enforce or realize upon any Lien on the Collateral, including the institution of any foreclosure proceedings or the noticing of any public or private sale or other disposition pursuant to Article 9 of the UCC or other applicable law, (b) the exercise of any right or remedy provided to a secured creditor or otherwise on account of a Lien under the Credit Facility Documents, the Indenture Documents (including the enforcement of any right under any account control agreement, landlord waiver or bailee’s letter or any similar agreement or arrangement), applicable law, in an Insolvency Proceeding or otherwise, including the election to retain Collateral in satisfaction of a Lien, (c) the taking of any action or the exercise of any right or remedy in respect of the collection on, set off against, marshaling of, or foreclosure on the Collateral or the proceeds of Collateral, (d) the Disposition of all or any portion of the Collateral, by private or public sale, other disposition or any other means permissible under applicable law, (e) the exercise of any other enforcement right relating to the Collateral (including the exercise of any voting rights relating to any stock or other equity interests and including any right of recoupment or set-off) whether under the Credit Facility Documents, the Indenture Documents, applicable law, in an Insolvency Proceeding or

 

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otherwise, or (f) the commencement of, or the joinder with any creditor in commencing, any Insolvency Proceeding against any Grantor or other Indenture Obligor or any assets of any Grantor or other Indenture Obligor.

 

“Event of Default” has the meaning assigned to such term in the Credit Agreement or the Indenture (in each case as in effect on the date hereof) as the context may require.

 

“First Priority Claims” means (a) Indebtedness under the Credit Facility Documents up to the Maximum Credit Obligations Amount, (b) First Priority Hedging Obligations and (c) all other Obligations of the Company and the Grantors under the Credit Facility Documents described in clauses (a) and (b) above (including, all amounts accruing on or after the commencement of any Insolvency Proceeding relating to any Grantor, or that would have accrued or become due under the terms of the Debt Documents but for the effect of the Insolvency Proceeding or other applicable law, and irrespective of whether a claim for all or any portion of such amount is allowable or allowed in such Insolvency Proceeding).

 

“First Priority Hedging Obligations” means any net payment obligations under interest rate swaps, caps, collars or similar agreements or foreign currency hedges, exchanges or similar agreements that are permitted to be incurred under clause (vii) of the definition of the term “Permitted Debt” in Section 5.09(b) of the Indenture as in effect on the date hereof and that are secured by any collateral under the First Priority Collateral Documents.

 

“Grantors” means AGI, the Borrowers and each of their subsidiaries that shall have created or purported to create any Lien in favor of the Administrative Agent or the Indenture Agent on all or any part of its assets (whether real or personal, or tangible or intangible) constituting Common Collateral to secure any of the Indenture Obligations or First Priority Claims.  Notwithstanding anything to the contrary contained herein or in any Credit Facility Document, CWFR Capital Corp. and its subsidiaries shall not constitute Grantors.

 

“Guarantors” means (i) the Initial Guarantors and (ii) each Person that executes a Note Guarantee (as defined in the Indenture) after the date hereof in accordance with the provisions thereof, until, in the case of clauses (i) and (ii), the Note Guarantee (as defined in the Indenture) of any such Person is released in accordance with the provisions of the Indenture.

 

“Holdings” means Affinity Group Holding, Inc., a Delaware corporation.

 

“Indebtedness” has the meaning assigned to such term in the Indenture as in effect on the date hereof.

 

“Indenture” has the meaning assigned to such term in the recitals to this Intercreditor Agreement.

 

“Indenture Agent” has the meaning assigned to such term in the preamble to this Intercreditor Agreement.

 

“Indenture Collateral” means all “Collateral” as defined in the Indenture Security Agreement, including the Leasehold Mortgage Properties and any other agreement, document or

 

5

 

instrument pursuant to which a Lien is granted by AGI or any Guarantor to secure any Indenture Obligations or under which rights or remedies with respect to any such Lien are governed.

 

“Indenture Collateral Documents” means the Indenture Security Agreement, the Mortgages (as defined in the Indenture), the Parent Pledge Agreement and any other agreement, document or instrument pursuant to which a Lien is granted by Holdings, AGI or any Guarantor to secure any Indenture Obligations or under which rights or remedies with respect to any such Lien are governed.

 

“Indenture Documents” means this Intercreditor Agreement, the Notes, the Indenture, the Note Guarantees (as defined in the Indenture) and the Indenture Collateral Documents.

 

“Indenture Exclusive Collateral” means any assets constituting Indenture Collateral that are not also Credit Facility Collateral.

 

“Indenture Liens” means Liens on the Indenture Collateral created under the Indenture Collateral Documents to secure any Indenture Obligations.

 

“Indenture Mortgage Property” means any Leasehold Mortgage Collateral that is Indenture Exclusive Collateral.

 

“Indenture Obligations” means, collectively, the “Secured Obligations” as defined in the Indenture Security Agreement as in effect on the date hereof (including, all amounts accruing on or after the commencement of any Insolvency Proceeding relating to any Grantor, or that would have accrued or become due under the terms of the Indenture Documents but for the effect of the Insolvency Proceeding or other applicable law, and irrespective of whether a claim for all or any portion of such amount is allowable or allowed in such Insolvency Proceeding).

 

“Indenture Obligors” means each Grantor, Holdings, AGI, and all other subsidiaries of AGI party to any Indenture Collateral Document at any time.

 

“Indenture Secured Parties” means, at any time, (a) each Note Holder, (b) the Collateral Agent, (c) the Trustee, (d) each other secured party to which any Indenture Obligations are owed, and (e) the successors and assigns of each of the foregoing.

 

“Indenture Security Agreement” means the Pledge and Security Agreement, to be dated as of the date hereof, among AGI and the Guarantors in favor of the Collateral Agent.

 

“Initial Guarantors” means Affinity Brokerage, Inc., a Delaware corporation, Affinity Guest Services, Inc., a Delaware corporation, Affinity Road and Travel Club, Inc., a Texas corporation, AGI Productions, Inc., a Delaware corporation, Camp Coast to Coast Inc., a Delaware corporation, Outdoor Buys, Inc., a Kentucky corporation, Camping World Card Services, Inc., an Ohio corporation, Camping World, Inc., a Kentucky corporation, Camping World Insurance Services of Kentucky, Inc., a Delaware corporation, Camping World Insurance Services of Nevada, Inc., a Nevada corporation, Camping World Insurance Services of Texas, Inc., a Texas corporation, Coast Marketing Group, Inc., a Delaware corporation, CWI, Inc., a Kentucky corporation, CW Michigan, Inc., a Delaware corporation, Ehlert Publishing Group, Inc., a Minnesota corporation, Golf Card International Corp., a Delaware corporation, Golf Card

 

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Resort Services, Inc., a Delaware corporation, GSS Enterprises, Inc., a Delaware corporation, Power Sports Media, Inc., a Delaware corporation, TL Enterprises, Inc., a Delaware corporation, and VBI, Inc., a Delaware corporation.

 

“Insolvency Proceeding” means (a) any voluntary or involuntary proceeding under the Bankruptcy Code or any other Bankruptcy Law with respect to any Grantor, or other Indenture Obligor (b) any voluntary or involuntary appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Grantor or other Indenture Obligor or for a substantial part of the property or assets of any Grantor, or other Indenture Obligor (c) any voluntary or involuntary winding-up or liquidation of any Grantor or other Indenture Obligor, or (d) a general assignment for the benefit of creditors by any Grantor or other Indenture Obligor.

 

“Intercreditor Agreement” has the meaning assigned to such term in the preamble to this Intercreditor Agreement.

 

“Junior Liens” means, with respect to any Credit Facility Collateral, the Indenture Liens on such Credit Facility Collateral.

 

“Leasehold Mortgage Collateral” means those certain leasehold mortgages covering the Leasehold Mortgage Properties.

 

“Leasehold Mortgage Enforcement Action” has the meaning assigned to such term in Section 5.03.

 

“Leasehold Mortgage Properties” means (i) those properties listed on Schedule 1 attached hereto, on which the Administrative Agent has been, and will be, granted a leasehold mortgage and the Indenture Agent is to be granted a leasehold mortgage on or before February 28, 2011 (the “Schedule 1 Properties”) pursuant to Section 10.06(d) hereof, (ii) those properties listed on Schedule 2 attached hereto which constitute Credit Facility Exclusive Collateral and (iii) the Additional New Mortgage Properties.

 

“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third person with respect to such securities.

 

“Maximum Credit Obligations Amount” means, on any date, the amount of First Priority Claims outstanding on such date, excluding any Cap Excess Amounts.

 

“Notes” has the meaning assigned to such term in the recitals to this Intercreditor Agreement.

 

“Note Holders” means the holders from time to time of (or in respect of) the Notes.

 

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“Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness.

 

“Original Intercreditor Agreement” has the meaning assigned to such term in the recitals to this Intercreditor Agreement.

 

“Parent Pledge Agreement” means the Nonrecourse Guaranty and Pledge Agreement dated as of the date hereof from Holdings to the Indenture Agent.

 

“Permitted Enforcement Actions” has the meaning assigned to such term in Section 3.01(a) hereof.

 

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, joint-stock company, trust, unincorporated organization, association, corporation, government or any agency or political subdivision thereof or any other entity.

 

“Purchase Date” has the meaning assigned to such term in Section 9.02(a) hereof.

 

“Purchase Event” has the meaning assigned to such term in Section 9.01 hereof.

 

“Purchase Notice” means notice delivered pursuant to, and in accordance with the requirements, set forth in Section 9.02(a) hereof.

 

“Purchase Price” has the meaning assigned to such term in Section 9.03 hereof.

 

“Purchasing Creditors” has the meaning assigned to such term in Section 9.02(a) hereof.

 

“Refinance” means, in respect of any indebtedness or commitments to provide indebtedness, including, without limitation, any First Priority Claims or Indenture Obligations, as applicable, to refinance, extend, renew, restructure (including by the amendment and restatement of any instrument or agreement evidencing such indebtedness) or replace or to issue other indebtedness or commitments to provide indebtedness in exchange or replacement for, such indebtedness or commitments to provide indebtedness, in whole or in part, whether with the same or different lenders, arrangers, Note Holders or agents.  “Refinanced” and “Refinancing” shall have correlative meanings.

 

“Refinancing Notice” has the meaning assigned to such term in Section 7.02(a) hereof.

 

“Representative” means (a) with respect to the Credit Facility Secured Parties, the Administrative Agent and (b) with respect to the Indenture Secured Parties, the Indenture Agent.

 

“Secured Parties” means the Indenture Secured Parties and the Credit Facility Secured Parties.

 

“Security Agreement” means the Credit Facility Security Agreement or the Indenture Security Agreement.

 

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“Security Documents” means the Credit Facility Security Documents, and the Indenture Collateral Documents.

 

“Senior Discharge Date” means, subject to the terms of Section 7.02 hereof, the earlier of (a) the Credit Facility First Lien Collateral Transition Date and (b) the payment in full in cash of the Maximum Credit Obligations Amount (other than contingent indemnification obligations arising under the Credit Facility Documents which by their express terms survive the termination of the Credit Facility Documents) and the termination of the commitments of the Credit Facility Lenders to provide loans or other extensions of credit pursuant to the Credit Agreement (or, in the case of contingent reimbursement obligations with respect to Letters of Credit, providing cash collateral in an amount equal to 105% of such obligations).

 

“Senior Liens” means the Credit Facility Liens but only to the extent securing amounts not exceeding the Maximum Credit Obligations Amount.

 

“Standstill Period” means the period described in Section 3.01(a)(i)-(iii), as it may be tolled from time to time pursuant to the proviso therein.

 

“Trustee” has the meaning assigned thereto in the recitals to this Intercreditor Agreement.

 

“Uniform Commercial Code” or “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect from time to time in any applicable jurisdiction.

 

SECTION 1.02.                      Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified, (b) any reference herein (i) to any Person shall be construed to include such Person’s successors and assigns and (ii) to any Borrower or any other Grantor shall be construed to include such Borrower or such Grantor as debtor and debtor-in-possession and any receiver or trustee for any Borrower or any other Grantor, as the case may be, in any Insolvency Proceeding, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Intercreditor Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections or Annexes shall be construed to refer to Articles or Sections of, or Annexes to, this Intercreditor Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

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ARTICLE II

 

LIEN PRIORITIES.

 

SECTION 2.01.                      Relative Priorities  Notwithstanding the time, manner, order or method of grant, creation, attachment or perfection of any Junior Lien or any Senior Lien, and notwithstanding any provision of the UCC or any other applicable law, the provisions of any Security Document or any other Debt Document, any defect or deficiency or alleged deficiency in any of the foregoing or any other circumstance whatsoever, each Representative, for itself and on behalf of its respective Secured Parties, hereby agrees that, until the Senior Discharge Date, (a) any Senior Lien now or hereafter held by or for the benefit of any Credit Facility Secured Party shall be senior in right, priority, perfection, operation, effect and all other respects to any and all Junior Liens and (b) any Junior Lien now or hereafter held by or for the benefit of any Indenture Secured Party shall be junior and subordinate in right, priority, operation, effect and all other respects to any and all Senior Liens, in each case, on the terms set forth herein.  Until the Senior Discharge Date, the Senior Liens shall be and remain senior in right, priority, operation, effect and all other respects to any Junior Liens for all purposes, in each case, on the terms set forth herein, whether or not any Senior Liens are subordinated in any respect to any other Lien securing any other obligation of any Grantor or any other Person and whether or not any such Liens are voided, avoided, invalidated, lapsed or unperfected.  Except with respect to Permitted Liens (as defined in the Amended Credit Agreement as in effect on the date hereof), the Administrative Agent agrees not to subordinate, or otherwise voluntarily relinquish the benefits of, its Senior Lien in any Credit Facility Collateral to the Lien, indebtedness or claim of any other creditor of AGI, Holdings, any Borrower or any Grantor or any Guarantor without the prior written consent of the Indenture Agent (acting at the written direction of the requisite Note Holders in accordance with the terms of the Indenture).

 

SECTION 2.02.                      Prohibition on Contesting Liens.

 

(a)           Each of the Administrative Agent, for itself and on behalf of the other Credit Facility Secured Parties, and the Indenture Agent, for itself and on behalf of the other Indenture Secured Parties, agrees that it will not, and hereby waives any right to, contest or support any other Person in contesting, in any proceeding (including any Insolvency Proceeding), the priority, validity or enforceability of any Junior Lien or any Senior Lien, as the case may be; provided, that nothing in this Intercreditor Agreement shall be construed to prevent or impair the rights of the Administrative Agent or any other Credit Facility Secured Party, on the one hand, and the Indenture Agent or any other Indenture Secured Party, on the other hand, to enforce this Intercreditor Agreement or their respective rights hereunder.

 

(b)           The Administrative Agent, for itself and on behalf of the other Credit Facility Secured Parties, agrees that it will not, and hereby waives any right to, contest or support any other Person in contesting, in any proceeding (including any Insolvency Proceeding), the priority, validity or enforceability of any Lien of any Indenture Secured Party on any of the Indenture Collateral; provided, that nothing in this Intercreditor Agreement shall be construed to prevent or impair the rights of the Administrative Agent or any other Credit Facility Secured Party, on the one hand, and the Indenture Agent or any other Indenture Secured Party, on the other hand, to enforce this Intercreditor Agreement or their respective rights hereunder.

 

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SECTION 2.03.                      No New Liens.  The Indenture Agent, for itself and on behalf of the other Indenture Secured Parties agrees that, until the Senior Discharge Date, no Grantor shall grant or permit any additional Liens on any Credit Facility Collateral to secure any Indenture Obligation unless such Grantor has granted, or substantially concurrently therewith grants, a Senior Lien on such Credit Facility Collateral to secure the First Priority Claims, with each such Lien to be subject to the provisions of this Intercreditor Agreement. To the extent that the provisions of the immediately preceding sentence are not complied with for any reason, without limiting any other right or remedy available to the Administrative Agent or the other Credit Facility Secured Parties, the Indenture Agent agrees, for itself and on behalf of the other Indenture Secured Parties, that any amounts received by or distributed to any Indenture Secured Party pursuant to or as a result of any Lien granted and existing in contravention of this Section 2.03 shall be subject to Section 4.02(a).  The Administrative Agent, for itself and on behalf of the other Credit Facility Secured Parties agrees that, until the Senior Discharge Date, no Grantor shall grant or permit any additional Liens on any asset to secure any First Priority Claim unless such Grantor has granted, or substantially concurrently therewith grants, a Junior Lien on such asset to the Indenture Agent to secure the Indenture Obligations, with each such Lien to be subject to the provisions of this Intercreditor Agreement.  To the extent that the provisions of the immediately preceding sentence are not complied with for any reason, without limiting any other right or remedy available to the Indenture Agent or the other Indenture Secured Parties, the Administrative Agent agrees, for itself and on behalf of the other Credit Facility Secured Parties, that any amounts received by or distributed to any Credit Facility Secured Party pursuant to or as a result of any Lien granted and existing in contravention of this Section 2.03 shall be subject to a Junior Lien.  Notwithstanding the foregoing or any other provision in this Intercreditor Agreement to the contrary, the provisions of this Section are not intended to, nor shall they be deemed to, affect in any manner the enforceability against any Grantor of any such Lien granted and existing contrary to the terms of this Section.

 

SECTION 2.04.                      Similar Liens and Agreements.  Each Representative, for itself and on behalf of its respective Secured Parties, agrees that it is their intention that the specific assets comprising the Common Collateral which are included in the Credit Facility Collateral and the Indenture Collateral be identical.  In furtherance of the foregoing, the parties hereto agree to cooperate in good faith in order to determine, upon any reasonable request by the Administrative Agent or the Indenture Agent, as the case may be, the specific assets comprising the Common Collateral, the steps taken to perfect the Liens thereon in accordance with this Intercreditor Agreement and the identity of the respective parties obligated under the Credit Facility Documents and the Indenture Documents in respect of the First Priority Claims and the Indenture Obligations, respectively.

 

ARTICLE III

 

ENFORCEMENT RIGHTS WITH RESPECT TO THE COLLATERAL.

 

SECTION 3.01.                     Exercise of Rights and Remedies.

 

(a)           Until the earliest to occur of any of the following:

 

(i)                 the Senior Discharge Date;

 

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(ii)                receipt by the Indenture Agent of written notice from the Administrative Agent that any Enforcement Action has been completed in consequence of which the Administrative Agent consents to the Indenture Agent commencing any Enforcement Action; or

 

(iii)               the later of

 

(x) 180 days after the declaration by the Administrative Agent or the Indenture Agent (the “declaring agent”) of an Event of Default in consequence of which the declaring agent has given written notice to the other Representative that the Indenture Obligations or the First Priority Claims of the Grantors owed to such agent’s Secured Parties are then immediately due and payable (whether by acceleration or otherwise; unless: (1) the declaring agent, with the consent of its requisite required lenders or Note Holders, as applicable, has entered into a forbearance agreement with the Grantors with respect to such Event of Default, (2) the Administrative Agent is diligently pursuing an Enforcement Action with respect to all or a material portion of the Credit Facility Collateral or (3) the acceleration of the applicable Indenture Obligations or First Priority Claims by the declaring agent has been rescinded); or (y) the date on which the Administrative Agent, for a period of thirty (30) days or more, has ceased to diligently pursue such Enforcement Action against all or a material portion of the Credit Facility Collateral, whether or not any Insolvency Proceeding has been commenced;

 

the Administrative Agent and the Credit Facility Secured Parties shall have the exclusive right to take any Enforcement Action with respect to the Credit Facility Collateral, in each case, without any consultation with or the consent of the Indenture Agent or any other Indenture Secured Party;  provided, that, the 180 day and 30 day periods referenced in clause (iii) above may be tolled if the Administrative Agent is prohibited from undertaking any Enforcement Action due to (and during the pendency of) any stay or other order prohibiting the exercise of remedies with respect to the Credit Facility Collateral that has been entered by a court of competent jurisdiction.

 

Notwithstanding the foregoing, the Indenture Secured Parties may:

 

(1)           in any Insolvency Proceeding, file a claim, proof of claim or statement of interest with respect to the Indenture Obligations; provided, that, in the event the Indenture Agent has failed to file any such proof of claim or statement of interest within five (5) days prior to the bar date applicable to such claim, the Administrative Agent may (but shall not be obligated to) file any such proof of claim or statement of interest on behalf of the Indenture Agent and the Indenture Secured Parties; provided, further, that, (A) if the Administrative Agent files any such proof of claim as contemplated above and the Indenture Secured Parties shall

 

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subsequently timely file a proper proof of claim in such Insolvency Proceeding, such subsequent proper proof of claim filed by the Indenture Secured Parties shall supersede any such proof of claim theretofore filed by the Administrative Agent on behalf of the Indenture Agent and the Indenture Secured Parties and such proof of claim theretofore filed by the Administrative Agent on behalf of the Indenture Agent and the Indenture Secured Parties shall thereupon be deemed to be withdrawn, and (B) the foregoing provisions of this clause (1) shall not be construed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Indenture Secured Party any plan of reorganization, arrangement, adjustment or composition affecting the Indenture Obligations;

 

(2)           take any action to create, perfect, preserve or protect the validity and enforceability of the Junior Liens; provided, that no such action is, or could reasonably be expected to be, (A) adverse to the priority, validity or enforceability status of the Senior Liens or the rights of the Administrative Agent or any other Credit Facility Secured Party to exercise remedies in respect thereof or (B) inconsistent with the terms of this Intercreditor Agreement, including, without limitation, the automatic release of Junior Liens provided for in Section 3.04;

 

(3)           file any responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims of the Indenture Secured Parties, including any claims secured by the Credit Facility Collateral, or otherwise make any agreements or file any motions pertaining to the Indenture Obligations, in each case, to the extent not inconsistent with the terms of this Intercreditor Agreement;

 

(4)           join (but not exercise any control with respect to) any judicial foreclosure proceeding or other judicial lien enforcement proceeding with respect to the Credit Facility Collateral initiated by the Administrative Agent to the extent that any such action could not reasonably be expected, in any material respect, to restrain, hinder, limit, delay for any material period or otherwise interfere with the exercise of remedies by the Administrative Agent (it being understood that neither the Indenture Agent nor any Indenture Secured Party shall be entitled to receive any proceeds thereof unless otherwise expressly permitted herein);

 

(5)           engage consultants, valuation firms, investment bankers, and perform or engage third parties to perform audits, examinations and appraisals of the Credit Facility Collateral for the sole purpose of valuing the Credit Facility Collateral and not for the purpose of marketing or conducting a disposition of such Credit Facility Collateral; provided, however, that the Indenture Secured Parties shall not take any of the foregoing actions if they would interfere with the exercise of remedies by the Administrative Agent;

 

(6)           vote on any plan of reorganization, file any proof of claim, or make any other filings or motions that are, in each case, not inconsistent with the terms of

 

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this Intercreditor Agreement, with respect to the Indenture Obligations and the Credit Facility Collateral;

 

(7)           file and pursue a lawsuit against the Administrative Agent and/or any Credit Facility Lender for breach or non-performance of any payment obligations pursuant hereto;

 

(8)           impose the default interest (and interest on interest) under the Indenture; and

 

(9)           exercise rights and remedies as unsecured creditors to the extent (and only to the extent) provided in Section 3.03 (the actions described in clauses (a)(1) through (a)(9) above of this Section 3.01 being referred to herein as the “Permitted Enforcement Actions”).

 

Except for the Permitted Enforcement Actions, unless and until the Standstill Period has expired), the sole rights of the Indenture Agent and the other Indenture Secured Parties with respect to the Credit Facility Collateral shall be to enforce the terms of this Intercreditor Agreement and receive such Credit Facility Collateral (or the proceeds thereof), if any, remaining after the Senior Discharge Date has occurred (to the extent (and only to the extent) required by the Indenture Documents).  NOTHING IN THIS SECTION 3.01(a) OR OTHERWISE IN THIS INTERCREDITOR AGREEMENT SHALL LIMIT, WAIVE, DIMINISH, DELAY, FORBEAR, RELEASE, RELINQUISH, TERMINATE, SURRENDER, SUBORDINATE, SUSPEND, OR OTHERWISE IMPAIR ANY OF THE INDENTURE SECURED PARTIES’ RIGHTS AND REMEDIES UNDER THE INDENTURE DOCUMENTS, APPLICABLE LAW, OR OTHERWISE AGAINST ANY INDENTURE OBLIGOR THAT IS NOT A GRANTOR OR AGAINST THE INDENTURE COLLATERAL, AND THE PRODUCTS AND PROCEEDS THEREOF ALL OF WHICH RIGHTS AND REMEDIES ARE HEREBY EXPRESSLY RESERVED AND AFFIRMED.

 

After the expiration of the Standstill Period, the Indenture Agent may take any Enforcement Action including any Disposition with respect to the Credit Facility Collateral; provided that the Indenture Agent shall provide notice to the Administrative Agent of its election to take such Enforcement Action.  In the event of any Disposition of the Credit Facility Collateral, the Administrative Agent and the Credit Facility Secured Parties shall (i) upon the request of the Indenture Agent with respect to such Credit Facility Collateral, and concurrent with such Disposition, release or otherwise terminate its Liens on such Credit Facility Collateral (it being understood that the Credit Facility Secured Parties shall still, subject to this Intercreditor Agreement, have a security interest with respect to the proceeds of such Credit Facility Collateral) and (ii) deliver such terminations of financing statements, partial lien releases, mortgage satisfactions and discharges, endorsements, assignments or other instruments of transfer, termination or release and take such further actions as the Indenture Secured Parties may reasonably require in connection therewith; provided, that the Indenture Liens and security interest on such Credit Facility Collateral that is subject to such Disposition are concurrently released or terminated and the Indenture Agent shall have provided to the relevant Indenture Obligors comparable terminations of financing statements, partial lien releases, mortgage satisfactions and discharges, endorsements, assignments or other instruments of transfer,

 

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termination or release and, subject to and in accordance with Section 4.01, the Indenture Agent shall cause to be paid and/or delivered directly to the Credit Facility Agent all proceeds of any such Disposition of Credit Facility Collateral.

 

(b)           In exercising rights and remedies with respect to the Credit Facility Collateral, the Administrative Agent and the other Credit Facility Secured Parties may enforce the provisions of the Credit Facility Security Documents and exercise remedies thereunder, all in such order and in such manner as they may determine in their sole discretion.  Such exercise and enforcement shall include, without limitation, the rights of an agent appointed by them to Dispose of Credit Facility Collateral upon foreclosure, to incur expenses in connection with any such Disposition and to exercise all the rights and remedies of a secured creditor under the Uniform Commercial Code in effect in any jurisdiction, the Bankruptcy Code or any other Bankruptcy Law, with respect to such Collateral.  The Administrative Agent agrees, unless it is unable or impractical to do so in order to preserve the value of the Credit Facility Collateral (as reasonably determined by the Administrative Agent) or the rights and remedies of the Credit Facility Secured Parties therein, to provide at least seven (7) Business Days’ prior written notice to the Indenture Agent of its intention to take any Enforcement Action with respect to the Credit Facility Collateral; provided, however, that the failure to give any such notice shall not in any way limit its ability hereunder to take any such Enforcement Action.

 

(c)           The Indenture Agent, for itself and on behalf of the other Indenture Secured Parties, hereby acknowledges and agrees that no covenant, agreement or restriction contained in any Indenture Security Agreement or any other Indenture Document shall be deemed to prohibit, restrain or otherwise restrict in any way the rights and remedies of the Administrative Agent or the other Credit Facility Secured Parties with respect to the Credit Facility Collateral as set forth in this Intercreditor Agreement and the other Credit Facility Documents.

 

SECTION 3.02.                      No Interference.  The Indenture Agent, for itself and on behalf of the other Indenture Secured Parties, agrees that, whether or not any Insolvency Proceeding has been commenced, the Indenture Secured Parties will not take any of the following with respect to the Credit Facility Collateral:

 

(a)           will not, prior to the expiration of the Standstill Period, except for Permitted Enforcement Actions, take any Enforcement Action against the Credit Facility Collateral;

 

(b)           will not contest, protest or object to any foreclosure action or proceeding brought by the Administrative Agent or any other Credit Facility Secured Party, or any other enforcement or exercise by any Credit Facility Secured Party of any rights or remedies relating to the Credit Facility Collateral under the Credit Facility Documents or otherwise, so long as Junior Liens attach to the proceeds thereof subject to the relative priorities set forth in Section 2.01;

 

(c)           will not object to the forbearance by the Administrative Agent or any other Credit Facility Secured Party from commencing or pursuing any foreclosure action or proceeding

 

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or any other enforcement or exercise of any rights or remedies with respect to the Credit Facility Collateral;

 

(d)           will not, prior to the Senior Discharge Date, take or receive any Credit Facility Collateral, or any proceeds thereof or payment with respect thereto, in connection with the exercise of any right or enforcement of any remedy (including any right of setoff) with respect to any such Credit Facility Collateral or in connection with any insurance policy award under a policy of insurance relating to any such Credit Facility Collateral or any condemnation award (or deed in lieu of condemnation) relating to any such Credit Facility Collateral;

 

(e)           will not, except for Permitted Enforcement Actions, take any action that would, or could reasonably be expected to, hinder, in any manner, any exercise of rights or remedies under the Credit Facility Documents or the rights or remedies of the Credit Facility Secured Parties under applicable law, including any Disposition of any Credit Facility Collateral, whether by foreclosure or otherwise; provided, that this clause (e) shall in no way apply to any action with respect to any Indenture Exclusive Collateral;

 

(f)            will not, except for Permitted Enforcement Actions or material breaches by any Credit Facility Secured Party of the terms of this Intercreditor Agreement, object to the manner in which the Administrative Agent or any other Credit Facility Secured Party may seek to enforce or collect the First Priority Claims from Grantors other than AGI or the Senior Liens, regardless of whether any action or failure to act by or on behalf of the Administrative Agent or any other Credit Facility Secured Party is, or could possibly be, adverse to the interests of the Indenture Secured Parties, and will not assert, and hereby waive, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or claim the benefit of any marshalling, appraisal, valuation or other similar right that may be available under applicable law with respect to the Credit Facility Collateral or any similar rights a junior secured creditor may have under applicable law; and

 

(g)           will not attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge or question the validity or enforceability of any First Priority Claims or any Credit Facility Security Document with respect to Liens provided by Grantors on Credit Facility Collateral, including this Intercreditor Agreement, or the validity or enforceability of the priorities, rights or obligations established by this Intercreditor Agreement.

 

SECTION 3.03.                      Rights as Unsecured Creditors.  Each Representative and the other Secured Parties may, in accordance with the terms of the applicable Debt Documents and applicable law, enforce rights and exercise remedies against any Grantor as unsecured creditors; provided, that no such action is otherwise inconsistent with the terms of this Intercreditor Agreement.  Nothing in this Intercreditor Agreement shall prohibit the receipt by the Indenture Agent or any other Indenture Secured Party of the required payments of principal, premium, interest, fees and other amounts due under the Indenture Documents so long as such receipt is not the direct or indirect result of (x) the enforcement or exercise by the Indenture Agent or any other Indenture Secured Party of rights or remedies as a secured creditor (including any right of setoff) or (y) any contravention of this Intercreditor Agreement (including any receipt as a result of any judgment lien resulting from the exercise of remedies available to an unsecured creditor that is not turned over pursuant to Section 4.02 hereof).

 

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SECTION 3.04.                      Automatic Release of Junior Liens.

 

(a)           The Indenture Agent and each other Indenture Secured Party agree that in the event of a Disposition of Credit Facility Collateral subject to any Junior Lien to a Person that is not an affiliate of any Grantor (regardless of whether or not an Event of Default has occurred and is continuing under the Indenture Documents at the time of such Disposition), such Junior Lien on such Collateral (and, if such Collateral is all of the equity interests of a Grantor, all obligations of such Grantor under the Indenture Documents) shall terminate and be released automatically, unconditionally, simultaneously and without further action if the applicable Senior Liens on such Collateral (and, if such Collateral is all of the equity interests of a Grantor, all obligations of such Grantor under the Credit Facility Documents) are released and if such Disposition either (x) is then not prohibited by the Indenture Documents or (y) occurs in connection with the foreclosure upon or other exercise of rights and remedies with respect to such Credit Facility Collateral; provided, that, in the case of a Disposition pursuant to subclause (y) above, the proceeds of any such Disposition received by any Credit Facility Secured Party shall be applied to repay First Priority Claims in accordance with Section 4.01; provided, further, that, in the case of a Disposition pursuant to subclause (x) or (y) above, the Junior Lien shall remain in full force and effect with respect to any proceeds of such Disposition that remain after the satisfaction in full of the First Priority Claims.

 

(b)           The Indenture Agent agrees to execute and deliver (at the sole cost and expense of the Grantors) all such releases and other instruments as shall reasonably be requested by the Administrative Agent to evidence and confirm any release of Credit Facility Collateral provided for in this Section 3.04.  In the event of the failure of the Indenture Agent or any Indenture Secured Party to deliver any such release to the Administrative Agent within two (2) Business Days after receipt of written request therefor from the Administrative Agent, the Administrative Agent and any of its officers or agents are hereby irrevocably authorized to enter into any such release or instrument to carry out the provisions of this Section 3.04(b) and the Indenture Agent hereby irrevocably appoints the Administrative Agent as the lawful attorney in fact of the Indenture Agent and Indenture Secured Parties solely for the purpose of entering into such releases in the name of the Indenture Agent or any Indenture Secured Party.

 

SECTION 3.05.                      Insurance and Condemnation Awards.  Until the Senior Discharge Date shall have occurred, the Administrative Agent and the other Credit Facility Secured Parties shall have the exclusive right, subject to the rights (if any) of the Grantors under the Credit Facility Documents, to settle and adjust any insurance policy or claim covering or constituting Credit Facility Collateral and to approve any award granted in any condemnation or similar proceeding, or any deed in lieu of condemnation, in respect of any Credit Facility Collateral.  All proceeds of any such policy and any such award, or any payments with respect to a deed in lieu of condemnation, shall constitute Credit Facility Collateral, subject to the rights (if any) of the Grantors under the Credit Facility Documents, and shall be paid in accordance with Section 4.01.  Until the Senior Discharge Date, if any of the Indenture Agent or any other Indenture Secured Party shall, at any time, receive any proceeds of any such insurance policy or any such award or payment in violation of this Section 3.05, it shall immediately transfer and pay over such proceeds to the Administrative Agent in accordance with Section 4.02.

 

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ARTICLE IV

 

PAYMENTS.

 

SECTION 4.01.                      Application of Proceeds.  Until the Senior Discharge Date, any Credit Facility Collateral or proceeds thereof received by a Representative shall be applied by such Representative (a) first, to the Maximum Credit Obligations Amount, (b) second, to the Indenture Obligations, (c) third, to any First Priority Claims that constitute Cap Excess Amounts, and (d) fourth, to the applicable Grantor, or in each case as a court of competent jurisdiction may otherwise direct.  After the Senior Discharge Date, the Administrative Agent shall deliver to the Indenture Agent or its nominee any remaining Collateral and any proceeds thereof then held by it, together with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct, to be applied by the Indenture Agent (a) first, to the Indenture Obligations and (b) second, to the applicable Grantor, or in each case as a court of competent jurisdiction may otherwise direct.

 

SECTION 4.02.                      Payment Over.

 

(a)           Until the Senior Discharge Date, each Indenture Secured Party (other than the Indenture Agent) hereby agrees that any Credit Facility Collateral or any proceeds thereof (together with assets or proceeds subject to Liens referred to in the penultimate sentence of Section 2.03) received directly or indirectly by such Indenture Secured Party in contravention of this Intercreditor Agreement shall be segregated and held in trust and forthwith transferred or paid over to the Administrative Agent for the benefit of the Credit Facility Secured Parties in the same form as received, together with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct.  Until the Senior Discharge Date, the Indenture Agent hereby agrees that any Credit Facility Collateral or any proceeds thereof (together with assets or proceeds subject to Liens referred to in the penultimate sentence of Section 2.03) received directly or indirectly by the Indenture Agent (w) in connection with any Disposition of, or collection on, such Credit Facility Collateral upon any Enforcement Action, (x) in connection with any insurance policy claim or any condemnation award (or deed in lieu of condemnation) or (y) as contemplated under Sections 2.03, 3.02, 3.05, 6.01 or 6.02 (whether as a matter of law or otherwise), shall be segregated and held in trust and forthwith transferred or paid over to the Administrative Agent for the benefit of the Credit Facility Secured Parties in the same form as received, together with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct.   In the event of the failure of the Indenture Agent or any Indenture Secured Party to make any such endorsement or assignment to the Administrative Agent within two (2) Business Days after receipt of written request therefor from the Administrative Agent, the Administrative Agent and any of its officers or agents are hereby irrevocably authorized to make such endorsement or assignment and the Indenture Agent hereby irrevocably appoints the Administrative Agent as the lawful attorney in fact of the Indenture Agent and Indenture Secured Parties solely for the purpose of enabling the Administrative Agent to make such endorsement or assignment in the name of the Indenture Agent or any Indenture Secured Party.

 

(b)           Each Credit Facility Secured Party hereby agrees that any Indenture Exclusive Collateral or any proceeds thereof received directly or indirectly by such Credit Facility Secured Parties in contravention of this Intercreditor Agreement shall be segregated and

 

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held in trust and forthwith transferred or paid over to the Indenture Agent for the benefit of the Indenture Secured Parties in the same form as received, together with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct.  The Administrative Agent hereby agrees that any Indenture Exclusive Collateral or any proceeds thereof received directly or indirectly by the Administrative Agent (x) in connection with any Disposition of, or collection on, such Indenture Exclusive Collateral upon any Enforcement Action or (y) in connection with any insurance policy claim or any condemnation award (or deed in lieu of condemnation), shall be segregated and held in trust and forthwith transferred or paid over to the Indenture Agent for the benefit of the Indenture Secured Parties in the same form as received, together with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct.   In the event of the failure of the Administrative Agent or any other Credit Facility Secured Parties to make any such endorsement or assignment to the Indenture Agent within two (2) Business Days after receipt of written request therefor from the Indenture Agent, the Indenture Agent and any of its officers or agents are hereby irrevocably authorized to make such endorsement or assignment and the Administrative Agent hereby irrevocably appoints the Indenture Agent as the lawful attorney in fact of the Administrative Agent and the Credit Facility Secured Parties solely for the purpose of enabling the Indenture Agent to make such endorsement or assignment in the name of the Administrative Agent or any Credit Facility Secured Party.

 

SECTION 4.03.                      Unenforceable Liens.

 

(a)           Notwithstanding anything to the contrary contained herein, if in any Insolvency Proceeding a determination is made that any Senior Lien is not enforceable for any reason (other than any reason arising from the willful misconduct, fraud, or gross negligence of the Credit Facility Secured Parties), then the Indenture Agent and the Indenture Secured Parties agree that, any distribution or recovery they may receive with respect to, or allocable to, the value of the assets intended to constitute such Credit Facility Collateral or any proceeds thereof, to the extent that such assets constitute Indenture Collateral, shall (until the Senior Discharge Date) be segregated and held in trust and forthwith paid over to the Administrative Agent for the benefit of the Credit Facility Secured Parties in the same form as received without recourse, representation or warranty (other than a representation of the Indenture Agent that it has not otherwise sold, assigned, transferred or pledged any right, title or interest in and to such distribution or recovery) but with any necessary endorsements or as a court of competent jurisdiction may otherwise direct until the Senior Discharge Date.  In the event of the failure of the Indenture Agent or any Indenture Secured Party to execute any such document required by this Section 4.03(a), within two (2) Business Days after receipt of written request therefor from the Administrative Agent, the Administrative Agent and any of its officers or agents are hereby irrevocably authorized to execute such documents and the Indenture Agent hereby irrevocably appoints the Administrative Agent as the lawful attorney in fact of the Indenture Agent and Indenture Secured Parties solely for the purpose of enabling the Administrative Agent to execute such documents in the name of the Indenture Agent or any Indenture Secured Party.

 

(b)           Notwithstanding anything to the contrary contained herein, if in any Insolvency Proceeding a determination is made that any Junior Lien is not enforceable for any reason (other than any reason arising from the willful misconduct, fraud, or gross negligence of the Indenture Secured Parties), then, after the Senior Discharge Date, the Administrative Agent

 

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and the Credit Facility Secured Parties agree that any distribution or recovery they may receive with respect to, or allocable to, the value of the assets intended to constitute such Credit Facility Collateral or any proceeds thereof, to the extent that such assets constitute Credit Facility Collateral, shall be segregated and held in trust and forthwith paid over to the Indenture Agent for the benefit of the Indenture Secured Parties in the same form as received without recourse, representation or warranty (other than a representation of the Administrative Agent that it has not otherwise sold, assigned, transferred or pledged any right, title or interest in and to such distribution or recovery) but with any necessary endorsements or as a court of competent jurisdiction may otherwise direct.  In the event of the failure of the Administrative Agent or any Credit Facility Secured Party to execute any such document required by this Section 4.03(b), within two (2) Business Days after receipt of written request therefor from the Indenture Agent, the Indenture Agent and any of its officers or agents are hereby irrevocably authorized to execute such documents and the Administrative Agent hereby irrevocably appoints the Indenture Agent as the lawful attorney in fact of the Administrative Agent and Credit Facility Secured Parties solely for the purpose of enabling the Indenture Agent to execute such documents in the name of the Administrative Agent or any Credit Facility Secured Party.

 

ARTICLE V

 

PLEDGED OR CONTROLLED COLLATERAL AND ACCESS RIGHTS.

 

SECTION 5.01.                      General.  The Administrative Agent agrees that if it shall at any time hold a Senior Lien on any Common Collateral that can or is required to be perfected or the priority of which can be enhanced by the possession or control of such Common Collateral or of any account in which such Common Collateral is held, and if such Common Collateral or any such account is in fact in the possession or under the control of the Administrative Agent, or of agents or bailees of the Administrative Agent, the Administrative Agent shall, solely for the purpose of perfecting the Junior Liens granted under the Indenture Security Documents and, subject to the terms and conditions of this Article V, also hold and/or maintain control of such Common Collateral for the benefit of the Indenture Agent and the other Indenture Secured Parties as agent on behalf of and representative (as defined in Section 1-201(35) of the UCC) of the Indenture Agent and on behalf and for the benefit of the Indenture Agent and Indenture Secured Parties.  It is agreed that the obligations of the Administrative Agent and the rights of the Indenture Agent and the other Indenture Secured Parties in connection with any such bailment arrangement will be in all respects subject to the provisions of Articles II and III.  Notwithstanding anything to the contrary herein, the Administrative Agent will be deemed to make no representation as to the adequacy of the steps taken by it to perfect the Junior Lien on any such Common Collateral and shall have no responsibility, duty, obligation or liability to the Indenture Agent or other Indenture Secured Party or any other Person for such perfection or failure to perfect, it being understood that the sole purpose of this Article is to enable the Indenture Secured Parties to obtain a perfected Junior Lien in such Common Collateral to the extent, if any, that such perfection results from the possession or control of such Collateral or any such account by the Administrative Agent.  Subject to Section 7.04, on the Senior Discharge Date, the Administrative Agent shall use its commercially reasonable efforts to promptly take all such actions in its power (at the sole cost and expense of the Grantors) as shall be reasonably requested by the Indenture Agent or the applicable Grantor, as the case may be, to transfer the possession and control of such Common Collateral or any such account, together with any

 

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necessary endorsements but without recourse or warranty, (i) if the Indenture Obligations are outstanding at such time, to the Indenture Agent (in each case, to the extent that the Indenture Agent has a Lien on such Common Collateral or account after giving effect to any prior or concurrent releases of Liens), and (ii) if no Indenture Obligations are outstanding at such time, to the applicable Grantor.

 

SECTION 5.02.                      Control Accounts.

 

(a)           Grantors, to the extent required by the Credit Agreement or Security Documents, shall maintain deposit accounts and securities accounts (collectively, together with all accounts and sub-accounts relating to any such deposit account or securities account, the “Control Accounts”) which are subject to the Administrative Agent’s control.  The Administrative Agent will act as agent on behalf of the Indenture Agent and the other Indenture Secured Parties for the purpose of perfecting the Liens of the Indenture Agent and the other Indenture Secured Parties granted under the Indenture Security Documents in all such Control Accounts and the cash, funds, checks, notes, “securities entitlements” (as such terms are defined in the UCC), instruments and other assets from time to time on deposit in any Control Account as provided in Section 5.01 (but will have no duty, responsibility or obligation to the Indenture Secured Parties except as set forth in the last sentence of this Section 5.02(a)).  Unless the Junior Liens on such Collateral shall have been or concurrently are released, after the occurrence of the Senior Discharge Date, (a) the Administrative Agent shall transfer control of all cash and other assets in any such Control Account maintained with it to the Indenture Agent, and (b) the Administrative Agent, Grantors, and the Indenture Agent (at the expense of Grantors) shall have each control agreement assigned to the Indenture Agent or otherwise have control of any other Control Accounts to be transferred to the Indenture Agent, in each case (in the case of clauses (a) and (b)), to the extent that the Indenture Documents would entitle the Indenture Agent, or would entitle any Grantors, to take such actions if such assets or cash were held by such Grantors.

 

(b)           For purposes of Section 5.02(a), as security for the payment and performance in full of all the Indenture Obligations each Grantor hereby grants to the Administrative Agent for the benefit of the Indenture Agent and the other Indenture Secured Parties a Lien on and security interest in all of the right, title and interest of such Grantor, in and to and under the Control Accounts and the cash, funds, checks, notes, “securities entitlements” (as such terms are defined in the UCC), instruments and other assets from time to time on deposit in any Control Account, wherever located and whether now existing or hereafter arising or acquired from time to time.

 

SECTION 5.03.                      Access Rights of Administrative Agent.

 

(a)           If the Indenture Agent commences any action or proceeding with respect to any of its rights or remedies (including any action with respect to a current or future foreclosure, enforcement, collection, taking of possession or execution) with respect to any Indenture Mortgage Properties (a “Leasehold Mortgage Enforcement Action”), then, subject to the rights of any landlord or other third party, the Grantors, the Indenture Agent and the other Indenture Secured Parties shall not hinder or restrict in any respect the Administrative Agent, the other Credit Facility Secured Parties and their employees, agents, advisers and representatives to enter upon and have access to such Indenture Mortgage Properties and use any Credit Facility

 

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Collateral (including, without limitation, equipment, processors, computers and other machinery related to the storage or processing of records, documents or files and intellectual property located at such Indenture Mortgage Properties), for a period commencing on (i) the date of the initial Leasehold Mortgage Enforcement Action, and (ii) ending on the earlier of (x) ten (10) days prior to any planned foreclosure, planned deed in lieu of foreclosure or any planned sale or other transfer of any Indenture Mortgage Property, (y) the date on which all Credit Facility Collateral has been removed from such property and (z) one hundred fifty (150) days after the date of the initial Leasehold Mortgage Enforcement Action (such period, the “Collateral Processing and Sale Period”), for purposes of

 

(A)            assembling and storing the Credit Facility Collateral;

 

(B)            selling any or all of the Credit Facility Collateral, whether in bulk, in lots or to customers in the ordinary course of business or otherwise;

 

(C)            removing and transporting any or all of the Credit Facility Collateral;

 

(D)            otherwise processing, shipping, producing, storing, supplying, leasing, selling or otherwise handling, dealing with, assembling or disposing of, in any lawful manner, the Credit Facility Collateral; and/or

 

(E)             taking reasonable actions to protect, secure and otherwise enforce the rights or remedies of the Administrative Agent and the other Credit Facility Secured Parties (including with respect to any Leasehold Mortgage Enforcement Action), or any of them, in and to the Credit Facility Collateral;

 

provided, however, that nothing contained in this Intercreditor Agreement shall restrict the rights of the Indenture Agent from selling, assigning or otherwise transferring any Indenture Mortgage Properties prior to the expiration of such Collateral Processing and Sale Period if the purchaser, assignee or transferee thereof agrees in writing (for the benefit of the Administrative Agent and the other Credit Facility Secured Parties) to be bound by the provisions of this Section 5.03.  If any stay or other order prohibiting the exercise of remedies with respect to the Credit Facility Collateral has been entered by a court of competent jurisdiction, such Collateral Processing and Sale Period shall be tolled during the pendency of any such stay or other order.

 

(b)           During the period of actual access and use by the Administrative Agent and the other Credit Facility Secured Parties, or any of them (or their respective employees, agents, advisers and representatives), of the Indenture Mortgaged Properties, the Administrative Agent and the other Credit Facility Secured Parties shall be obligated to repair at their expense any physical damage to the Indenture Mortgage Properties resulting from such access or use, and to leave any such Indenture Mortgage Property in substantially the same condition as it was at the commencement of such access or use, ordinary wear and tear excepted.  Notwithstanding the foregoing, in no event shall the Administrative Agent and the other Credit Facility Secured Parties, or any of them, have any liability to the Indenture Agent or the other Indenture Secured Parties pursuant to this Section 5.03 as a result of any condition (including any environmental condition, claim or liability) on or with respect to the Indenture Mortgage Properties to the extent it existed prior to the date of the exercise by the Administrative Agent (or the other Credit

 

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Facility Secured Parties, as the case may be) of their rights under this Section 5.03 and the Credit Facility Secured Parties shall have no duty or liability to maintain the Indenture Mortgage Properties in a condition or manner better than that in which they were maintained prior to the use thereof by the Credit Facility Secured Parties, or for any diminution in the value of the Indenture Mortgage Properties that results from ordinary wear and tear resulting from the use of the Indenture Mortgage Properties by the Credit Facility Secured Parties in the manner and for the time periods specified under this Section 5.03.  Without limiting the rights granted in this Section 5.03, the Administrative Agent and the other Credit Facility Secured Parties shall not hinder or restrict in any respect the Indenture Secured Parties and/or the Indenture Agent in connection with any efforts made by the Indenture Secured Parties and/or the Indenture Agent to exercise any of their rights with respect to the Indenture Mortgage Properties.

 

ARTICLE VI

 

INSOLVENCY PROCEEDINGS.

 

SECTION 6.01.                      DIP Financing and Asset Sales.

 

(a)           Until the Senior Discharge Date, in the event of any Insolvency Proceeding, each Indenture Secured Party agrees that it:

 

(i)            will not oppose or object to the use by any Grantor of any Credit Facility Collateral constituting cash collateral under Section 363 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law, which the Administrative Agent, or a representative authorized by the Administrative Agent, has consented to or is providing, so long as the terms of such use of cash collateral are commercially reasonable, and subject to Section 6.01(c), permit the Indenture Secured Parties to assert that they are entitled to receive adequate protection and replacement liens in consideration of any diminution in value resulting from any Grantor’s use of any Credit Facility Collateral constituting cash collateral;

 

(ii)           will not oppose or object to (or join with any third party in opposing or objecting to) any post-petition financing provided to any Grantor by the Credit Facility Secured Parties under Section 364 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law (a “DIP Financing”), or the Liens on the Credit Facility Collateral securing any DIP Financing (“DIP Financing Liens”), unless (A) the terms of such financing are not commercially reasonable, (B) such financing is also extended to AGI or any of its affiliates other than Grantors or is to be received or guaranteed by them, (C) the Credit Facility Secured Parties, or a representative authorized by the Credit Facility Secured Parties, shall then oppose or object to such DIP Financing or such DIP Financing Liens, or (D) the terms of such DIP Financing do not permit the Indenture Secured Parties to assert, subject to Section 6.01(c) hereof, that they are entitled to receive adequate protection and replacement liens in consideration of any diminution in value resulting from any Credit Facility Collateral granted to secure Grantor’s obligations under the DIP Financing  and, to the extent that such

 

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DIP Financing Liens are senior to, or rank pari passu with, the Senior Liens, the Indenture Agent will, for itself and on behalf of the other Indenture Secured Parties, subordinate the Junior Liens to the Senior Liens and the DIP Financing Liens on substantially similar terms as set forth in this Intercreditor Agreement (as reasonably determined by the Administrative Agent); provided, that the foregoing shall not prevent the Indenture Secured Parties from proposing a DIP Financing to any Grantors or to a court of competent jurisdiction so long as such financing is not, without the Administrative Agent’s consent, secured by a lien that is pari passu or senior in priority to the Credit Facility Liens; and

 

(iii)          except to the extent permitted by clause (b) and (c) of this Section 6.01, whether in connection with the use of cash collateral as described in clause (a)(i) above or a DIP Financing or otherwise, will not request adequate protection or any other relief from such Grantors in connection with such use of cash collateral, DIP Financing or DIP Financing Liens.

 

(b)           If, in connection with any DIP Financing or use of cash collateral, (i) any Credit Facility Secured Party is granted adequate protection in the form of a Lien on additional collateral, the Indenture Agent may (acting at the written request of required Note Holders), for itself and on behalf of the other Indenture Secured Parties, seek or request adequate protection in the form of a Lien on such additional collateral, which Lien will be subordinated to the Senior Liens and DIP Financing Liens on the same basis as the other Junior Liens are subordinated to the Senior Liens under this Intercreditor Agreement, (ii) any Indenture Secured Party is granted adequate protection in the form of a Lien on additional collateral, the Administrative Agent shall, to the extent permitted by court order, for itself and on behalf of the other Credit Facility Secured Parties, be granted adequate protection in the form of a Lien on such additional collateral that is senior to such Junior Lien as security for the First Priority Claims (with the understanding that (A) whether or not any such senior Lien is granted to the Administrative Agent on such collateral, any amounts or other proceeds received in respect of such Lien shall be subject to the provisions of Section 4.02 and (B) no Credit Facility Secured Party will object to or oppose any adequate protection granted to an Indenture Secured Party as contemplated by this clause (ii)).

 

(c)           Indenture Secured Parties may also seek adequate protection in the form of (i) payment of interest during an Insolvency Proceeding at a rate not in excess of the default rate under the Indenture Documents and of pre-petition fees and expenses, provided that the failure of the Indenture Secured Parties to obtain such adequate protection shall not entitle the Indenture Secured Parties to challenge any DIP Financing or cash collateral use consented to by the Credit Facility Secured Party, except as provided in Section 6.01(a)(i) and (ii); and (ii) administrative expense claim status, provided that the failure of the Indenture Secured Parties to obtain such adequate protection shall not entitle the Indenture Secured Parties to challenge any DIP Financing or cash collateral use consented to by the Credit Facility Secured Parties, except as provided in Section 6.01(a)(i) or (ii), and any such claim by the Indenture Secured Parties shall be subordinate to the claims of the Credit Facility Secured Parties.

 

(d)           Notwithstanding the foregoing, the applicable provisions of Section 6.01(a), (b) and (c) shall only be binding on the Indenture Secured Parties with respect to any DIP Financing to the extent the amount of such DIP Financing plus the aggregate outstanding

 

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principal amount of all First Priority Claims as of the date of such DIP Financing does not exceed the Maximum Credit Obligations Amount.

 

SECTION 6.02.                      Reorganization Securities.  If, in any Insolvency Proceeding, debt obligations of the reorganized debtor secured by Liens upon any property of the reorganized debtor are distributed, pursuant to a plan of reorganization or similar dispositive restructuring plan, on account of both the First Priority Claims and the Indenture Obligations, then, to the extent the debt obligations distributed on account of the First Priority Claims and on account of the Indenture Obligations are secured by Liens upon the same assets or property, the provisions of this Intercreditor Agreement will survive the distribution of such debt obligations pursuant to such plan and will apply with like effect to the Liens securing such debt obligations.

 

SECTION 6.03.                      Asset Dispositions.  Until the Senior Discharge Date, each Indenture Secured Party agrees that it will consent to Dispositions under Section 363 of the Bankruptcy Code, or any comparable provision in any other Bankruptcy Law, and will not object or oppose a motion for Disposition of (including any bid procedures with respect thereto), any Credit Facility Collateral free and clear of the Liens or the claims that are in favor of Indenture Secured Parties if the Administrative Agent on behalf of the requisite Credit Facility Secured Parties  under the Credit Agreement has consented to such Disposition of such assets and such sale is pursued in good faith by such Credit Facility Secured Parties within a commercially reasonable time.

 

ARTICLE VII

 

MODIFICATIONS TO DEBT DOCUMENTS; REFINANCINGS.

 

SECTION 7.01.                      Matters Relating to Debt Documents.

 

(a)           Subject to the limitations contained in Section 7.01(b) and (c), the Credit Facility Documents and the Indenture Documents may be amended, restated, supplemented or otherwise modified by the requisite Credit Facility Secured Parties and the requisite Indenture Secured Parties, as applicable, in accordance with their terms and the First Priority Claims and Indenture Obligations may be supplemented, waived, repaid, refunded, Refinanced, amended or otherwise modified from time to time, all without affecting the subordination of the Junior Liens hereunder or the provisions of this Intercreditor Agreement defining the relative rights of the Credit Facility Secured Parties and the Indenture Secured Parties, in each case, without notice to, or the consent of, any Credit Facility Secured Party or any Indenture Secured Party and without affecting the subordination of the Junior Liens hereunder or the provisions of this Intercreditor Agreement defining the relative rights of the Credit Facility Secured Parties and the Indenture Secured Parties; provided, however, that the holders of the indebtedness (and the Liens securing such indebtedness) resulting from any Refinancing, or a duly authorized agent on their behalf, shall execute and deliver to the other parties hereto an accession agreement, substantially in the form attached hereto as Exhibit B, and such other documents or agreements (including amendments or supplements to this Intercreditor Agreement) as the Administrative Agent or the Indenture Agent, as the case may be, shall reasonably request and in form and substance reasonably acceptable to the Administrative Agent or the Indenture Agent, as the case may be.  The lien priorities provided for herein shall not be altered or otherwise affected by any

 

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amendment, modification, supplement, increase, restatement or Refinancing of either the First Priority Claims or the Indenture Obligations, by the release of any Credit Facility Collateral or of any guarantees securing any First Priority Claims or by any action that any Secured Party may take or fail to take in respect of any Credit Facility Collateral.

 

(b)           With respect to any amendment, supplement, modification, or Refinancing, without the prior written consent of the Indenture Secured Parties, it is acknowledged and agreed that (i) the aggregate principal amount of the First Priority Claims may not be increased to any amount in excess of the Maximum Credit Obligations Amount, (ii) a portion of the First Priority Claims consists or may consist of indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time or from time to time may be repaid and subsequently reborrowed, (iii) the interest rate at which the First Priority Claims, or any category thereof, accrue may be increased by no more than, in the aggregate, three hundred (300) basis points after the date hereof (excluding any default rate of interest), except that the Credit Facility Secured Parties may charge customary bona fide fees for amendments, consents, waivers, refinancings or granting forbearances and may receive reimbursement for reasonable documented out-of-pocket expenses and indemnification claims (including reasonable fees of attorneys, appraisers, consultants and advisors in accordance with the terms of the Credit Facility Documents in effect on the date hereof), (iv) the date of maturity of the Credit Agreement may not be extended beyond the date which is the stated maturity of the Notes, (v) the amount, or time, of any scheduled or mandatory payments of principal of the First Priority Claims may not be modified, except to the extent such change results in an increase in the amount paid to the Indenture Secured Parties or results in the Indenture Secured Parties receiving payment in the same amount as they would otherwise have been paid, but such amount is paid earlier than it would otherwise have been paid, (vi) the Credit Facility Documents may not be amended to increase the required percentage of cash necessary to cash collateralize outstanding contingent obligations, (vii) the Credit Facility Documents may not be amended to prohibit payments with respect to the Indenture Obligations to the extent such payments are permitted as of the date hereof, and (viii) except with respect to Permitted Liens (as defined in the Credit Facility Documents as in effect on the date hereof), Credit Facility Liens will not be subordinated to other indebtedness (including modifications which results in a first-out/last-out arrangement or layered tranches of debt).

 

(c)           With respect to any amendment, supplement, modification, or Refinancing, without the prior written consent of the Administrative Agent, it is acknowledged and agreed that (i) the interest rate at which the Indenture Obligations, or any category thereof, accrue may be increased by no more than, in the aggregate, three hundred (300) basis points after the date hereof (excluding any default rate of interest), except that the Indenture Secured Parties may charge customary bona fide fees for amendments, consents, waivers, refinancings or granting forbearances and may receive reimbursement for out-of-pocket expenses and indemnification claims (including fees of attorneys, appraisers, consultants and advisors in accordance with the terms of the Indenture Documents in effect on the date hereof), (ii) the maturity date of December 1, 2016 of the Notes may not be shortened or advanced unless the term of the Credit Agreement is shortened and the date of maturity advanced by an equal period of time, (iii) the principal amount of the Indenture Obligations may be increased so long as such increased principal amount has the same date of maturity as the other Indenture Obligations and the date of maturity of such Indenture Obligations is not modified in a manner prohibited by the

 

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foregoing clause, and (iv) no covenant or condition giving rise to an Event of Default in the Indenture Documents may be modified to cause such covenant or Event of Default, as applicable, to be more restrictive on any Grantor (other than AGI) than the analogous covenant or condition in the Credit Facility Documents; provided, however, that to the extent there is no analogous covenant or condition in the Credit Facility Documents, no such modification or addition of such covenant or condition is permitted.

 

SECTION 7.02.                      Additional Credit Facility Secured Parties.

 

(a)           If, substantially contemporaneously with the Senior Discharge Date, Grantors Refinance indebtedness outstanding (including in respect of committed amounts in respect of which no indebtedness is outstanding) under the Credit Facility Documents and such entities give to the Indenture Agent written notice at least twenty (20) days prior to the anticipated closing date of such Refinancing (the “Refinancing Notice” electing to apply the provisions of this Section 7.02 to such Refinancing indebtedness, then (i) the Senior Discharge Date shall automatically be deemed not to have occurred for all purposes of this Intercreditor Agreement, (ii) such Refinancing indebtedness and all other obligations under or in connection with the loan, security, guarantee and credit documents evidencing such indebtedness, including, without limitation, any additional indebtedness or commitment increases not in violation of Section 7.01(b) (the “Replacement First Priority Claims”) shall automatically be treated as First Priority Claims for all purposes of this Intercreditor Agreement, including for purposes of the Lien priorities and rights in respect of Collateral set forth herein, (iii) the Credit Agreement and other documents evidencing or relating to such Refinancing indebtedness (the “Replacement Credit Facility Documents”) shall automatically be treated as the Credit Agreement and the Credit Facility Documents and, in the case of Replacement Credit Facility Documents that are security documents pursuant to which any Grantor has granted a Lien to secure any Replacement First Priority Claims, as the Credit Facility Security Documents for all purposes of this Intercreditor Agreement, and (iv) the Administrative Agent under the Replacement Credit Facility Documents (the “Replacement Administrative Agent”) shall be deemed to be the Administrative Agent for all purposes of this Intercreditor Agreement; provided, however, that in no event shall the principal amount of the Refinancing indebtedness exceed the Maximum Credit Obligations Amount or the maturity date of the Refinancing indebtedness extend beyond the Maturity Date (as defined in the Credit Agreement) of the Credit Agreement as in effect on the date hereof, without the consent of the Indenture Secured Parties. For clarity, in the event of a partial Refinancing, the Replacement First Priority Claims and the portion of the First Priority Claims that were not Refinanced shall both be entitled to the benefits of this Intercreditor Agreement but shall be represented under this Intercreditor Agreement by a single Representative.  Upon receipt of a Refinancing Notice, which notice shall include the identity of the Replacement Administrative Agent, the Indenture Agent shall promptly execute and deliver to the Replacement Administrative Agent an accession agreement, substantially in the form attached hereto as Exhibit B, and such other documents and agreements (including amendments or supplements to this Intercreditor Agreement) as such Replacement Administrative Agent may reasonably request in order to provide to the Replacement Administrative Agent the rights, remedies and powers and authorities contemplated hereby, in each case consistent in all respects with the terms of this Intercreditor Agreement.

 

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(b)           On or after the date hereof, and prior to the Senior Discharge Date, Grantors will each be permitted to designate as a Credit Facility Secured Party hereunder each Person who is, or who becomes, the holder of indebtedness incurred by any Grantor that is permitted to constitute First Priority Claims hereunder and is permitted under the terms of the Credit Facility Documents to be equally and ratably secured with the obligations in respect of such First Priority Claims, it being understood and agreed that while any First Priority Claims are outstanding (and prior to the Senior Discharge Date of such First Priority Claims) the interests of such new Credit Facility Secured Parties shall be represented by the Administrative Agent in accordance with the terms hereof.  Grantors shall effect such designation by delivering to each other party hereto (other than its affiliates) a notice; provided, however, that the failure to so deliver a copy of such notice shall not affect the status of such debt as First Priority Claims if the other requirements of this Section are complied with.  Notwithstanding the foregoing, nothing in this Section will be construed to allow Grantors to incur additional indebtedness unless otherwise permitted by the terms of all Credit Facility Documents and Indenture Documents in effect at the time of such incurrence.

 

SECTION 7.03.                      No Waiver by Credit Facility Secured Parties.  Other than the Permitted Enforcement Actions, nothing contained herein shall prohibit or in any way limit the Administrative Agent or any other Credit Facility Secured Party from opposing, challenging or objecting to, in any Insolvency Proceeding or otherwise, any action taken, or any claim made, by the Indenture Agent or any other Indenture Secured Party with respect to any Credit Facility Collateral in breach of this Intercreditor Agreement, including any request by the Indenture Agent or any other Indenture Secured Party for adequate protection (other than any such request made pursuant to Section 6.01) or any exercise by the Indenture Agent or any other Indenture Secured Party of any of its rights and remedies under the Indenture Documents or otherwise.

 

SECTION 7.04.                      Reinstatement.  If, in any Insolvency Proceeding or otherwise, all or part of any payment with respect to any First Priority Claims previously made shall be rescinded for any reason whatsoever, then such First Priority Claims shall be reinstated to the extent of the amount so rescinded and, if theretofore terminated, this Intercreditor Agreement shall be reinstated in full force and effect and such prior termination shall not diminish, release, discharge, impair or otherwise affect the Lien priorities and the relative rights and obligations of the Credit Facility Secured Parties and the Indenture Secured Parties provided for herein.

 

ARTICLE VIII

 

REPRESENTATIVE MATTERS.

 

SECTION 8.01.                      No Reliance; Information.  Each Representative, for itself (other than in the case of the Indenture Agent) and on behalf of its respective Secured Parties, acknowledges that (a) it and/or such Secured Parties have, independently and without reliance upon, in the case of the Credit Facility Secured Parties, any Indenture Secured Party and, in the case of the Indenture Secured Parties, any Credit Facility Secured Party, to the extent such Representative shall have conducted a credit analysis, made their own credit analysis and decision to enter into the Debt Documents to which they are party based on such documents and information as they have deemed appropriate and (b) it and/or such Secured Parties will, independently and without reliance upon, in the case of the Credit Facility Secured Parties, any

 

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Indenture Secured Party and, in the case of the Indenture Secured Parties, any Credit Facility Secured Party, and based on such documents and information as they shall from time to time deem appropriate, continue to make their own credit decision in taking or not taking any action under this Intercreditor Agreement or any other Debt Document to which they are party.  The Credit Facility Secured Parties and the Indenture Secured Parties shall have no duty to disclose to any Indenture Secured Party or to any Credit Facility Secured Party, respectively, any information relating to AGI or any of its subsidiaries (including any Grantor), or any other circumstance bearing upon the risk of nonpayment of any of the First Priority Claims or the Indenture Obligations, as the case may be, that is known or becomes known to any of them or any of their affiliates.  In the event any Credit Facility Secured Party or any Indenture Secured Party, in its sole discretion, undertakes at any time or from time to time to provide any such information to, respectively, any Indenture Secured Party or any Credit Facility Secured Party, it shall be under no obligation (i) to make, and shall not make or be deemed to have made, any express or implied representation or warranty, including with respect to the accuracy, completeness, truthfulness or validity of the information so provided, (ii) to provide any additional information or to provide any such information on any subsequent occasion or (iii) to undertake any investigation.

 

SECTION 8.02.                      Authorization of Representatives.  By accepting the benefits of this Intercreditor Agreement and the other Credit Facility Security Documents, each Credit Facility Secured Party hereby authorizes the Administrative Agent to enter into this Intercreditor Agreement and to act on its behalf as collateral agent hereunder and in connection herewith.  By accepting the benefits of this Intercreditor Agreement and the other Indenture Security Documents, each Indenture Secured Party hereby authorizes the Indenture Agent to enter into this Intercreditor Agreement and to act on its behalf as collateral agent hereunder and in connection herewith.

 

SECTION 8.03.                      Representations and Warranties of Each Representative.  Each Representative represents and warrants to the other parties hereto that it has been authorized by the Secured Parties under and as defined in the Credit Agreement or the Indenture, as applicable, to enter into this Intercreditor Agreement.

 

SECTION 8.04.                      Further Assurances.  Each of the Administrative Agent, for itself and on behalf of the other Credit Facility Secured Parties, and the Indenture Agent, for itself and on behalf of the other Indenture Secured Parties, agrees that it will execute, or will cause to be executed, any and all further documents, agreements and instruments, and take all such further actions, as may be required under any applicable law, or which the Administrative Agent or the Indenture Agent may reasonably request, to effectuate the terms of this Intercreditor Agreement, including the relative Lien priorities provided for herein.  Without limiting the foregoing, whenever a Representative shall be required, in connection with the exercise of its rights or the performance of its obligations hereunder, to determine the existence or amount of any First Priority Claims (or the existence of any commitment to extend credit that would constitute First Priority Claims) or Indenture Obligations, or the existence of any Lien securing any such obligations, or the Collateral subject to any such Lien, it may request that such information be furnished to it in writing by the other Representative and shall be entitled to make such determination on the basis of the information so furnished; provided, however, that if a Representative shall fail or refuse reasonably promptly to provide the requested information, the

 

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requesting Representative shall be entitled to make any such determination by such method as it (or in the case of the Indenture Agent, the requisite Note Holders under the Indenture) may, in the exercise of its reasonable discretion after consultation with Borrowers, determine, including by reliance upon a certificate of Borrowers.  Each Representative may rely conclusively, and shall be fully protected in so relying, on any determination made by it in accordance with the provisions of the preceding sentence (or as otherwise directed by a court of competent jurisdiction) and shall have no liability to Borrowers or any of their subsidiaries, any Secured Party or any other Person as a result of such determination.

 

SECTION 8.05.                                         No Warranties or Liability.

 

(a)                                  The Administrative Agent, for itself and on behalf of the other Credit Facility Secured Parties, acknowledges and agrees that, except for the representations and warranties set forth in Section 8.03, neither the Indenture Agent nor any other Indenture Secured Party has made any express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Indenture Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon.  The Indenture Agent, for itself and on behalf of the other Indenture Secured Parties, acknowledges and agrees that, except for the representations and warranties set forth in Section 8.03, neither the Administrative Agent nor any other Credit Facility Secured Party has made any express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Credit Facility Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon.

 

(b)                                 Each Indenture Secured Party acknowledges and agrees that neither the Administrative Agent nor any other Credit Facility Secured Party shall have any duties or other obligations to such Indenture Secured Party with respect to any Collateral, other than to transfer to the Indenture Agent any proceeds of any such Collateral that constitutes Collateral remaining in its possession following any Disposition of such Collateral (in each case, unless the Junior Liens on all such Collateral are terminated and released prior to or concurrently with such sale, transfer, disposition, payment or satisfaction), on the Senior Discharge Date, or, if the Administrative Agent shall be in possession of all or any part of such Collateral after such payment and satisfaction in full and termination, such Collateral or any part thereof remaining, in each case without representation or warranty on the part of the Administrative Agent or any Credit Facility Secured Party.

 

(c)                                  In furtherance of the foregoing, each Indenture Secured Party acknowledges and agrees that until the Senior Discharge Date, the Administrative Agent shall be entitled, for the benefit of the holders of the First Priority Claims, to sell, transfer or otherwise dispose of or deal with Collateral as provided herein and in the Credit Facility Security Documents without regard to any Junior Lien or any rights to which the holders of the Indenture Obligations would otherwise be entitled as a result of such Junior Lien, other than any such rights set forth herein.  Without limiting the foregoing, each Indenture Secured Party agrees that neither the Administrative Agent nor any other Credit Facility Secured Party shall have any duty or obligation first to marshal or realize upon any type of Collateral, or to sell, dispose of or otherwise liquidate all or any portion of such Collateral (or any other collateral securing the First Priority Claims), in any manner that would maximize the return to the Indenture Secured Parties,

 

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notwithstanding that the order and timing of any such realization, sale, disposition or liquidation may affect the amount of proceeds actually received by Indenture Secured Parties from such realization, sale, disposition or liquidation.

 

(d)                                 Without limiting the rights of the Indenture Agent with respect to Permitted Enforcement Actions and except for a breach of this Intercreditor Agreement, the Indenture Agent, for itself and on behalf of the other Indenture Secured Parties, agrees no Credit Facility Secured Party shall have any liability (other than any liability which may arise from the gross negligence or willful misconduct of a Credit Facility Secured Party) to the Indenture Agent or any other Indenture Secured Party, and hereby waives any claim (other than any claims which may arise from the gross negligence or willful misconduct of a Credit Facility Secured Party) against any Credit Facility Secured Party, arising out of any and all actions which the Administrative Agent or any other Credit Facility Secured Party may take or permit or omit to take with respect to (i) the Credit Facility Documents (other than this Intercreditor Agreement), (ii) the collection of the First Priority Claims, (iii) the maintenance of, the preservation of, the foreclosure upon or the Disposition of any Collateral, (iv) any election by the Administrative Agent or any Credit Facility Secured Parties, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b) of the Bankruptcy Code or (v) any extensions of credit by Credit Facility Lenders, or grant of a security interest or administrative expense priority under Section 364 of the Bankruptcy Code by AGI or any of its subsidiaries, as debtor-in-possession, in favor of the Credit Facility Secured Parties.

 

ARTICLE IX

 

PURCHASE OPTION

 

SECTION 9.01.                                         Purchase Option.  If (1) any of the First Priority Claims is accelerated prior to maturity, (2) the Administrative Agent commences any Enforcement Actions (excluding activation of blocked account, the exercise of control over any deposit accounts, or notification of account debtors of the Grantors to remit payment to the Administrative Agent or its designee in lieu of such Grantors), (3) a payment default under the Indenture Documents or the Credit Facility Documents remains uncured and unwaived for a period of thirty (30) days in the aggregate, or (4) an Insolvency Proceeding commences (each a “Purchase Event”), then the Indenture Secured Parties (excluding the Indenture Agent) may purchase all, but not less than all, of the Maximum Credit Obligations Amount. Such purchase will (A) include all principal of, and all accrued and unpaid interest, fees and expenses in respect of, all First Priority Claims (exclusive of Cap Excess Amounts, if any) outstanding at the time of purchase, (B) be made pursuant to an assignment and acceptance  in the form attached as Exhibit A to the Credit Agreement as in effect on the date hereof (the “Assignment and Acceptance”) whereby the Indenture Secured Parties will assume all funding commitments and First Priority Claims of the Credit Facility Secured Parties under the Credit Facility Documents, and (C) otherwise be subject to the terms and conditions of this Article IX.  Each Credit Facility Secured Party will retain all rights to indemnification provided in the relevant Credit Facility Documents for all periods prior to the purchase of the First Priority Claims pursuant to this Article IX.

 

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SECTION 9.02.                                         Purchase Notice.

 

(a)                                  Indenture Secured Parties desiring to purchase all of the First Priority Claims (the “Purchasing Creditors”) will deliver notice to the Administrative Agent no later than five (5) Business Days after receipt of notice from the Administrative Agent of a Purchase Event giving rise to the purchase option under this Article IX that (1) is signed by the Purchasing Creditors, (2) states that it is a Purchase Notice under this Article IX, (3) states that each Purchasing Creditor is irrevocably electing to purchase, in accordance with this Article IX, the percentage of all of the First Priority Claims stated in the Purchase Notice for that Purchasing Creditor, which percentages must aggregate exactly 100% for all Purchasing Creditors, (4) represents and warrants that the Purchase Notice is in conformity with the terms hereof, and (5) designates a date  on which the purchase will occur, that is not more than five (5) Business Days after the receipt of the Purchase Notice (the “Purchase Date”).

 

(b)                                 A Purchase Notice will be ineffective if it is received by the Administrative Agent after the occurrence giving rise to the Purchase Event is waived, cured or otherwise ceases to exist.

 

(c)                                  Upon the Administrative Agent’s receipt of an effective Purchase Notice conforming to this Section 9.02, the Purchasing Creditors will be irrevocably obligated to purchase, and the Credit Facility Secured Parties will be irrevocably obligated to sell, the First Priority Claims in accordance with and subject to this Article IX.

 

(d)                                 Following the Administrative Agent’s receipt of an effective Purchase Notice, the Administrative Agent shall not commence any Enforcement Action to sell or otherwise realize upon the Credit Facility Collateral; provided, that, the purchase and sale with respect to the First Priority Claims provided for herein shall have closed within five (5) Business Days thereafter.

 

SECTION 9.03.                                         Purchase Price.  The purchase price  for the First Priority Claims will equal the sum of (such sum, the “Purchase Price”):

 

(a)                                  the principal amount of all loans, advances or similar extensions of credit included in the First Priority Claims (including unreimbursed amounts drawn on letters of credit, but excluding the undrawn amount of outstanding letters of credit), and all accrued and unpaid interest thereon through the Purchase Date (including any breakage fees but excluding acceleration prepayment penalties or premiums) but excluding any Cap Excess Amounts; and

 

(b)                                 all accrued and unpaid fees, expenses to the extent earned or due and payable in accordance with the Credit Facility Documents on the Purchase Date; provided, however, that such Credit Facility Secured Parties shall only be entitled to prepayment penalties or premiums under the Credit Facility Documents if the effective date of termination of any commitments under the Credit Agreement giving rise to such penalties or premiums shall have occurred within one hundred eighty (180) days after consummation of the purchase option under this Article IX then, within three (3) Business Days after receipt by such Indenture Secured Parties of such amounts, the Purchasing Creditors shall pay a supplemental purchase price to the Administrative Agent, for the benefit of the Credit Facility Secured Parties in respect of their

 

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purchase under this Article IX in an amount equal to the portion of the prepayment penalties or premiums received by the Purchasing Creditors to which Credit Facility Secured Parties would have been entitled to receive had the purchase under this Article IX not occurred.

 

SECTION 9.04.                                         Purchase Closing. On the Purchase Date,

 

(a)                                  the Purchasing Creditors and the Administrative Agent will execute and deliver the Assignment and Acceptance,

 

(b)                                 the Purchasing Creditors will pay the Purchase Price to the Administrative Agent by wire transfer of immediately available funds,

 

(c)                                  the Purchasing Creditors will deposit with the Administrative Agent or its designee by wire transfer of immediately available funds, 105% of the aggregate undrawn amount of all then outstanding letters of credit and the aggregate facing and similar fees that will accrue thereon through the stated maturity of the letters of credit (assuming no drawings thereon before stated maturity), and

 

(d)                                 The Purchasing Creditors will execute and deliver to Administrative Agent a waiver of all claims arising out of this Intercreditor Agreement and the transactions contemplated hereby as a result of exercising the purchase option contemplated by this Article IX, other than any claims for fraud, gross negligence, or willful misconduct.

 

SECTION 9.05.                                         Actions after Purchase Closing.

 

(a)                                  Promptly after the closing of the purchase of all First Priority Claims, the Administrative Agent will distribute the Purchase Price to the Credit Facility Secured Parties in accordance with the terms of the Credit Facility Documents.

 

(b)                                 After the closing of the purchase of all First Priority Claims pursuant to this Article IX, the Purchasing Creditors may request that the Administrative Agent immediately resign as Administrative Agent and, if applicable, collateral agent under the Credit Facility Documents, and the Administrative Agent will immediately resign if so requested. Upon such resignation, a new Administrative Agent and, if applicable, a new collateral agent will be elected or appointed in accordance with the Credit Facility Documents.

 

(c)                                  The Administrative Agent will apply cash collateral to reimburse letter of credit issuers for drawings under letters of credit issued pursuant to the Credit Facility Documents, any customary fees charged by the issuer in connection with such draws, and facing or similar fees. After giving effect to each such payment, any remaining cash collateral that exceeds 105% of the sum of the aggregate undrawn amount of all then outstanding letters of credit issued pursuant to the Credit Facility Documents and the aggregate facing and similar fees that will accrue thereon through the stated maturity of such letters of credit (assuming no drawings thereon before stated maturity), will be returned to the Purchasing Creditors (as their interests appear). When all such letters of credit have been cancelled with the consent of the beneficiary thereof, expired or been fully drawn, and after all payments from the account described above have been made, any remaining cash collateral will be returned to the Purchasing Creditors, as their interests appear.

 

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SECTION 9.06.                                         No Recourse or Warranties; Defaulting Creditors.

 

(a)                                  The Credit Facility Secured Parties will be entitled to rely on the statements, representations and warranties in the Purchase Notice without investigation, even if Credit Facility Secured Parties are notified by any party other than the Indenture Agent or a Purchasing Creditor that any such statement, representation or warranty is not or may not be true.

 

(b)                                 The purchase and sale of the First Priority Claims under this Article IX will be without recourse and without any representation or warranty whatsoever by Credit Facility Secured Parties, except that the Credit Facility Secured Parties represent and warrant that on the Purchase Date, immediately before giving effect to the purchase, (1) the principal of and accrued and unpaid interest on the First Priority Claims, and the fees and expenses thereof, are as stated in the Assignment and Acceptance and the Credit Facility Secured Parties own the First Priority Claims free and clear of all Liens or encumbrances (other than participation interests not prohibited by the Credit Agreement, in which case the Purchase Price will be appropriately adjusted so that the Purchasing Creditors do not pay amounts represented by participation interest), and (2) the Credit Facility Secured Parties have the full right and power to convey whatever claims and interests they may have in respect of the First Priority Claims and such conveyance was duly authorized by all necessary corporate action.

 

(c)                                  The obligations of the Credit Facility Secured Parties to sell their First Priority Claims under this Article IX are several and not joint and several. If a Credit Facility Secured Party (a “Defaulting Creditor”) breaches its obligation to sell its First Priority Claims under this Article IX, no other Credit Facility Secured Party will be obligated to purchase the Defaulting Creditor’s First Priority Claims for resale to the holders of Indenture Obligations.  A Credit Facility Secured Party that complies with this Article IX will not be in default of this Intercreditor Agreement or otherwise be deemed liable for any action or inaction of any Defaulting Creditor, provided that nothing in this subsection (c) will require the Purchasing Creditors to purchase less than all of the First Priority Claims.

 

(d)                                 Each Borrower and AGI irrevocably consent, and will use their best efforts to obtain any necessary consent of each other Grantor, to any assignment effected to one or more Purchasing Creditors pursuant to this Article IX.

 

ARTICLE X

 

MISCELLANEOUS.

 

SECTION 10.01.                                   Obligations Absolute.  The Lien priorities provided for herein and the respective rights, interests, agreements and obligations hereunder of the Administrative Agent and the other Credit Facility Secured Parties and the Indenture Agent and the other Indenture Secured Parties shall remain in full force and effect irrespective of:

 

(a)                                  any lack of validity or enforceability of any Debt Document;

 

(b)                                 any change in the time, place or manner of payment of, or in any other term of (including, subject to the limitations set forth in Section 7.01, the Refinancing of), all or any portion of the First Priority Claims, it being specifically acknowledged that a portion of the

 

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First Priority Claims consists or may consist of indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed;

 

(c)                                  any change in the time, place or manner of payment of, or, subject to the limitations set forth in Section 7.01, in any other term of, all or any portion of the First Priority Claims;

 

(d)                                 any amendment, waiver or other modification, whether by course of conduct or otherwise, of any Debt Document;

 

(e)                                  the securing of any First Priority Claims or Indenture Obligations with any additional collateral or guarantees, or any exchange, release, voiding, avoidance or non-perfection of any security interest in any Collateral or any other collateral or any release of any guarantee securing any First Priority Claims or Indenture Obligations;

 

(f)                                    any Insolvency Proceeding; or

 

(g)                                 any other circumstances that otherwise might constitute a defense available to, or a discharge of any Grantor in respect of the First Priority Claims, the Indenture Obligations or this Intercreditor Agreement.

 

SECTION 10.02.                                   Notices.  Notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by fax, as follows:

 

(a)                                  if to the Administrative Agent, to it at:

 

SunTrust Bank
 303 Peachtree Street, 23rd Floor
 Mail Code GA-ATL 1981
 Atlanta, Georgia 30308
 Attn: Angela Leake
 Telecopy No.: 404-813-5890
 Email:  Angela.Leake@suntrust.com

 

(b)                                 if to the Indenture Agent, to it at:

 

The Bank of New York Mellon Trust Company, N.A.

700 South Flower Street

Suite 500

Los Angeles, California 90017

Attn: Corporate Trust Administration
 Telecopy No.: 213-630-6298
 Email: raymond.torres@bnymellon.com

 

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(c)                                  if to any Grantor, to it at:

 

Camping World, Inc.

Two Marriott Drive

Lincolnshire, IL 60069

Attn: Roger L. Nuttall and Brent Moody

Telecopy No.: 847-808-7015

Email: rnuttall@campingworldrv.com and

bmoody@campingworldrv.com

 

Any party hereto may change its address or fax number for notices and other communications hereunder by notice to the other parties hereto (and for this purpose a notice to AGI shall be deemed to be a notice to each Grantor).  All notices and other communications given to any party hereto in accordance with the provisions of this Intercreditor Agreement shall be deemed to have been given on the date of receipt (if a Business Day) and on the next Business Day (in all other cases) if delivered by hand or overnight courier service or sent by fax or on the date five (5) Business Days after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed) to such party as provided in this Section 10.02 or in accordance with the latest unrevoked direction from such party given in accordance with this Section 10.02.  As agreed to among Grantors, the Indenture Agent and the Administrative Agent from time to time, notices and other communications may also be delivered by e-mail to the e-mail address of a representative of the applicable Person provided from time to time by such Person.

 

SECTION 10.03.                                   Conflicts.  In the event of any conflict or inconsistency between the provisions of this Intercreditor Agreement and the provisions of the other Debt Documents, the provisions of this Intercreditor Agreement shall control.

 

SECTION 10.04.                                   Effectiveness; Survival.  This Intercreditor Agreement shall become effective when executed and delivered by the parties hereto.  All covenants, agreements, representations and warranties made by any party in this Intercreditor Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Intercreditor Agreement.  The terms of this Intercreditor Agreement shall survive, and shall continue in full force and effect, in any Insolvency Proceeding.  Each Representative, for itself and on behalf of the other respective Secured Parties, hereby waives any and all rights such Representative may now or hereafter have under applicable law to revoke this Intercreditor Agreement or any of the provisions of this Intercreditor Agreement.

 

SECTION 10.05.                                   Severability.  Any provision of this Intercreditor Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

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SECTION 10.06.                                   Amendments; Waivers.

 

(a)                                  No failure or delay on the part of any party hereto in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the parties hereto are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Intercreditor Agreement or consent to any departure by any party therefrom shall in any event be effective unless the same shall be permitted by clause (b) of this Section 10.06, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No notice or demand on any party hereto in any case shall entitle such party to any other further notice or demand in similar or other circumstances.

 

(b)                                 This Intercreditor Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Indenture Agent.

 

(c)                                  Notwithstanding the foregoing or anything else in this Intercreditor Agreement to the contrary, no Grantor shall have any right to consent to or approve any amendment, modification or waiver of any provision of this Intercreditor Agreement except to the extent its rights, interests, liabilities, obligations or privileges are directly affected.

 

(d)                                 On or before February 28, 2011 the Administrative Agent, to the extent it has not already obtained a leasehold mortgage in such property, and the Indenture Agent shall obtain leasehold mortgages in form and substance satisfactory to them on the Schedule 2 Properties.  In the event that, after the date hereof, any Grantor acquires additional leasehold real property estates that are not listed on Schedule 1 or Schedule 2 attached hereto as in effect on the date hereof, each of the Administrative Agent and the Indenture Agent may obtain leasehold mortgages from such Grantor with respect to such leaseholds (“the Additional New Mortgage Properties”).  In such event, the parties hereto agree that this Intercreditor Agreement, if deemed necessary by the Administrative Agent, shall be amended, at Borrower’s sole cost and expense, to provide that any such leasehold mortgages in favor of the Administrative Agent shall be senior to any leasehold mortgages of the Indenture Agent and leasehold mortgages of the Indenture Agent over such leasehold estates shall be junior and subordinate to the leasehold mortgages of the Administrative Agent.

 

SECTION 10.07.                                   Consent of Grantors.  Each Grantor hereby consents to the provisions of this Intercreditor Agreement and the intercreditor arrangements provided for herein and agrees that the obligations of the Grantors under the Security Documents will in no way be diminished or otherwise affected by such provisions or arrangements (except as expressly provided herein).  Borrowers and each other Grantor on the date of this Intercreditor Agreement shall constitute the original Grantors party hereto.  The original Grantors hereby covenant and agree to cause each of their subsidiaries which becomes a Grantor after the date hereof to contemporaneously become a party hereto by executing and delivering a joinder agreement (substantially in the form attached as Exhibit A hereto) to the Administrative Agent and the Indenture Agent.  The parties hereto further agree that, notwithstanding any failure to take the

 

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actions required by the immediately preceding sentence, each Person which becomes a Grantor at any time (and any security granted by any such Person) shall be subject to the provisions hereof as fully as if same constituted a Grantor party hereto and had complied with the requirements of the immediately preceding sentence.

 

SECTION 10.08.                                   Applicable Law; Jurisdiction; Consent to Service of Process.

 

(a)                                  THIS INTERCREDITOR AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

(b)                                 Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Intercreditor Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in such federal court.  Each party hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

(c)                                  Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Intercreditor Agreement in any court referred to in clause (b) of this Section.  Each party hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(d)                                 Each party to this Intercreditor Agreement irrevocably consents to service of process in the manner provided for notices in Section 10.02.  Nothing in this Intercreditor Agreement will affect the right of any party to this Intercreditor Agreement to serve process in any other manner permitted by law.

 

SECTION 10.09.                                   Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS INTERCREDITOR AGREEMENT.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS INTERCREDITOR AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.09.

 

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SECTION 10.10.                                   Parties in Interest.  This Intercreditor Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as well as the other Credit Facility Secured Parties and Indenture Secured Parties, all of whom are intended to be bound by, and to be third party beneficiaries of, this Intercreditor Agreement.  No other Person shall have or be entitled to assert rights or benefits hereunder.

 

SECTION 10.11.                                   Specific Performance.  Each Representative may demand specific performance of this Intercreditor Agreement and, on behalf of itself and the respective other Secured Parties, hereby irrevocably waives any defense based on the adequacy of a remedy at law and any other defense that might be asserted to bar the remedy of specific performance in any action which may be brought by the respective Secured Parties.

 

SECTION 10.12.                                   Headings.  Article, Section and Annex headings used herein and the Table of Contents hereto are for convenience of reference only, are not part of this Intercreditor Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Intercreditor Agreement.

 

SECTION 10.13.                                   Counterparts.  This Intercreditor Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract, and shall become effective as provided in Section 10.04.  Delivery of an executed signature page to this Intercreditor Agreement by facsimile transmission or other electronic means shall be as effective as delivery of a manually signed counterpart of this Intercreditor Agreement.

 

SECTION 10.14.                                   Additional New Mortgage Properties.  The provisions of this Intercreditor Agreement provide that, with respect to any Additional New Mortgage Property, both the Administrative Agent and the Indenture Agent shall obtain leasehold mortgages with respect thereto and that in such event the Liens created by such leasehold mortgages would constitute Credit Facility Collateral.  However, the Administrative Agent agrees that if it provides written notice to the Indenture Agent that the Administrative Agent has elected not to obtain a leasehold mortgage over any such leasehold estate, the Indenture Agent may, in its discretion, elect to obtain a leasehold mortgage over such leasehold estate and shall, notwithstanding anything to the contrary contained in this Intercreditor Agreement with respect to relative priorities of the Administrative Agent and the Indenture Agent over Additional New Mortgage Properties, that the Lien of the Indenture Agent over such leasehold estate would be entitled to and have the priority it would otherwise be entitled to under applicable law and for all purposes under this Intercreditor Agreement such additional leasehold mortgages would then constitute Indenture Collateral.

 

SECTION 10.15.                                   Provisions Solely to Define Relative Rights.  The provisions of this Intercreditor Agreement are and are intended solely for the purpose of defining the relative rights of the Credit Facility Secured Parties, on the one hand, and the Indenture Secured Parties, on the other hand.  No Grantor or any other creditor thereof shall have any rights or obligations, except as expressly provided in this Intercreditor Agreement, and no such other creditor thereof may rely on the terms hereof; provided, however, that Grantors shall in any event be entitled to the benefits of Sections 3.04, 3.05, 5.01, 5.02 and 7.02.  Nothing in this Intercreditor Agreement is intended to or shall impair the obligations of any Grantor, which are absolute and unconditional,

 

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to pay the First Priority Claims and the Indenture Obligations as and when the same shall become due and payable in accordance with their terms.

 

SECTION 10.16.    Liability of the Indenture Agent.  The parties hereto agree that the Indenture Agent shall be afforded all of the rights, privileges, protections, indemnities and immunities afforded to the Indenture Agent under the Indenture in connection with its execution of this Intercreditor Agreement and the performance of its duties hereunder.

 

[Remainder of Page Intentionally Left Blank]

 

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

 

 

	
 
    	
SUNTRUST BANK,   as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Angela Leake
    
	
 
    	
 
    	
Name: Angela Leake
    
	
 
    	
 
    	
Title  Vice   President
    
	
 
    	
 
    	
 
    

 

AFFINITY GROUP, INC.

Intercreditor Agreement

 

 

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

 

 

	
 
    	
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Indenture Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond Torres
    
	
 
    	
 
    	
Name: Raymond Torres
    
	
 
    	
 
    	
Title  Senior   Associate
    
	
 
    	
 
    	
 
    

 

AFFINITY GROUP, INC.

Intercreditor Agreement

 

 

Each of the undersigned acknowledges the terms of and consents to the foregoing Intercreditor Agreement:

 

 

	
 
    	
GRANTORS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AFFINITY GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Wolfe
    
	
 
    	
 
    	
Name: 
    	
Thomas F. Wolfe
    
	
 
    	
 
    	
Title  
    	
Senior Vice President and
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer
    

 

AFFINITY GROUP, INC.

Intercreditor Agreement

 

 

	
 
    	
GRANTORS
    
	
 
    	
 
    
	
 
    	
CAMPING WORLD, INC.
    
	
 
    	
CWI, INC.
    
	
 
    	
CAMPING WORLD CARD   SERVICES, INC.
    
	
 
    	
CAMPING WORLD INSURANCE SERVICES OF KENTUCKY, INC.
    
	
 
    	
CAMPING WORLD INSURANCE SERVICES OF   NEVADA, INC.
    
	
 
    	
CAMPING WORLD INSURANCE SERVICES OF   TEXAS, INC.
    
	
 
    	
CW MICHIGAN, INC.
    
	
 
    	
OUTDOOR BUYS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth Marshall
    
	
 
    	
 
    	
Name:
    	
Kenneth Marshall
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President
   of Finance and Information
    

 

AFFINITY GROUP, INC.

Intercreditor Agreement

 

 

SCHEDULE 1

 

LEASEHOLD MORTGAGE COLLATERAL

 

1.                       725 Bluegrass Farms Road, Bowling Green, KY

 

2.                       81 Page Drive, Franklin, KY

 

3.                       10100 South Freeway, Fort Worth, TX

 

4.                       201 76th Street SW, Grand Rapids, MI

 

5.                       43135 Pumpkin Center Road, Hammond, LA

 

6.                       93668 Highway 99 S, Junction City, OR

 

7.                       845 Huckleberry Springs Road, Knoxville, TN

 

8.                       2772 Highway 78 East, Anniston, AL

 

9.                       190 Commonwealth Court, Winchester, VA

 

 

SCHEDULE 2

 

POST-CLOSING LEASEHOLD MORTGAGES

 

1.                       Mortgage for property located at 21282 State Hwy 59 South, Robertsdale, AL

 

2.                       Mortgage for property located at 9801 Diamond Drive, North Little Rock, AR

 

3.                       Deed of Trust for property located at 9147 W. Route 66, Bellemont, AZ

 

4.                       Deed of Trust for property located at 14900 S. Firestone Boulevard, La Mirada, CA

 

5.                       Deed of Trust for property located at 4435 Granite Drive, Rocklin, CA

 

6.                       Deed of Trust for property located at 13575 Sycamore Avenue, San Martin, CA

 

7.                       Deed of Trust for property located at 5065 Quinn Road, Vacaville, CA

 

8.                       Deed of Trust for property located at 24901 W. Pico Canyon Road, Valencia, CA

 

9.                       Deed of Trust for property located at 2574 Vista Del Mar Drive, Ventura, CA

 

10.                 Deed of Trust for property located at 64 Inverness Drive East, Englewood, CO

 

11.                 Mortgage for property located at 5175 W. Highway 192, Kissimmee, FL

 

12.                 Mortgage for property located at 600 Prime Outlet Boulevard, St. Augustine, FL

 

13.                 Mortgage for property located at 6102 Lazy Days Boulevard, Seffner, FL

 

14.                 Security Deed for property located at 225 W.E. Green Jr. Parkway, Byron, GA 31008

 

15.                 Mortgage for property located at 2802 South 21st Street, Council Bluffs, IA

 

16.                 Mortgage for property located at 620 S. Woodcreek Drive, Bolingbrook, IL

 

17.                 Mortgage for property located at 81 Page Drive, Franklin, KY

 

18.                 Mortgage for property located at 43646 I-94 North Service Drive, Belleville, MI

 

19.                Deed of Trust for property located at 373 East Evergreen Road, Strafford, MO

 

20.                 Deed of Trust for property located at 1600 South Boulder Highway, Henderson, NV

 

21.                 Deed of Trust for property located at 3891 Interstate Highway 35 North, New Braunfels, TX

 

22.                 Deed of Trust for property located at 27905 Katy Freeway, Suite A, Katy, TX

 

23.                 Deed of Trust for property located at 8198 Gander Way, Roanoke, VA

 

24.                 Deed of Trust for property located at 190 Commonwealth Court, Winchester, VA

 

25.                 Deed of Trust for property located at 4650 16th Street, Fife, WA

 

26.                 Mortgage for property located at 6195 Metro Drive, DeForest, WI

 

 

EXHIBIT A

TO

INTERCREDITOR AGREEMENT

DATED AS OF [            ], 2010

 

FORM OF JOINDER AGREEMENT

 

THIS JOINDER AGREEMENT (this “Agreement”), dated as of                          , 20    , is executed by                                         , a                                    (the “New Subsidiary”) in [            ], a [                ], in its capacity as defined below, and [            ], in their capacities as Administrative Agent and Indenture Agent, respectively, under that certain Intercreditor Agreement (as amended, restated, supplemented or otherwise modified and if effect from time to time, the “Intercreditor Agreement”), dated as of [              ], 2010 among the Administrative Agent, the Indenture Agent, [            ], a [              ], and certain other entities parties thereto.  All capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Intercreditor Agreement.

 

The New Subsidiary, for the benefit of the Administrative Agent and the Indenture Agent, hereby agrees as follows:

 

1.             The New Subsidiary hereby acknowledges the Intercreditor Agreement and acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be joined to, and shall be deemed for all purposes to be a Grantor under, the Intercreditor Agreement and shall have all of the obligations of a Grantor thereunder as if it had executed the Intercreditor Agreement.  The New Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Intercreditor Agreement.

 

2.             The address of the New Subsidiary for purposes of Section 10.02 of the Intercreditor Agreement is as follows:

 

 

 

 

3.             THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE NEW SUBSIDIARY HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

 

IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly executed by its duly authorized officer, as of the day and year first above written.

 

	
 
    	
[NEW   SUBSIDIARY]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

EXHIBIT B

TO

INTERCREDITOR AGREEMENT

DATED AS OF [            ], 2010

FORM OF ACCESSION AGREEMENT

 

THIS ACCESSION AGREEMENT (this “Agreement”), dated as of                          , 20    , is executed by                                          , a                                    (the [“New Agent”][“New Lender”][“Indenture Agent”]) in [            ], a [                ], in its capacity as defined below, and [            ], in [their capacities as Administrative Agent and Indenture Agent][its capacity as Replacement Administrative Agent], respectively, under that certain Intercreditor Agreement (as amended, restated, supplemented or otherwise modified and if effect from time to time, the “Intercreditor Agreement”), dated as of [              ], 2010 among the Administrative Agent, the Indenture Agent, [            ], a [              ], and certain other entities parties thereto.  All capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Intercreditor Agreement.

 

The [New Agent][New Lender][Indenture Agent], for the benefit of the [Administrative Agent and the Indenture Agent][Replacement Administrative Agent], hereby agrees as follows:

 

1.             The [New Agent][New Lender][Indenture Agent] hereby acknowledges the Intercreditor Agreement and acknowledges, agrees and confirms that, by its execution of this Agreement, the [New Agent][New Lender][Indenture Agent] will be joined to, and shall be deemed for all purposes to be a [                        ] under, the Intercreditor Agreement and shall have all of the obligations of a [                        ] thereunder as if it had executed the Intercreditor Agreement.  The [New Agent][New Lender][Indenture Agent] hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Intercreditor Agreement.

 

2.             The [New Agent][New Lender][Indenture Agent] shall promptly after the date hereof deliver to the other parties to the Intercreditor Agreement true and complete copies of each of the [amended, restated, supplemented or modified Credit Facility Documents or Indenture Documents] [Replacement Credit Facility Documents] relating to such [amendment, restatement, supplementation or other modification of the Credit Facility Documents or the Indenture Documents pursuant to Section 7.01 of the Intercreditor Agreement] [Replacement First Priority Claims pursuant to Section 7.02 of the Intercreditor Agreement], certified as being true and correct by a responsible officer of the [New Agent][New Lender][Indenture Agent]

 

3.             The [New Agent][New Lender][Indenture Agent] shall take such further action and shall execute and deliver such additional documents and instruments (in recordable form, if requested) as the [Administrative Agent or Indenture Agent][Replacement

 

A-1

 

Administrative Agent] may reasonably request to effectuate the terms of and the lien priorities contemplated by this Agreement.

 

4.             The address of the [New Agent][New Lender][Indenture Agent] for purposes of Section 10.02 of the Intercreditor Agreement is as follows:

 

 

 

5.             THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE [NEW AGENT][NEW LENDER][INDENTURE AGENT] HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

A-2

 

IN WITNESS WHEREOF, the [New Agent][New Lender][Indenture Agent] has caused this Agreement to be duly executed by its duly authorized officer, as of the day and year first above written.

 

 

	
 
    	
[NEW   AGENT][NEW LENDER][INDENTURE AGENT]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

A-3

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