Document:

Exhibit 10.15

 

ABL FACILITY SECURITY AGREEMENT

 

This ABL FACILITY SECURITY AGREEMENT (this “Agreement”), dated as of April 6, 2012, by and among The Container Store, Inc., a Texas corporation (the “Borrower”), each of the guarantors listed on Schedule I hereto (each such Person, individually, a “Guarantor” and, collectively, the “Guarantors”) (the Borrower and the Guarantors are hereinafter referred to, individually, as a “Grantor” and, collectively together with any subsidiary that becomes a party hereto pursuant to Section 4.15, as the “Grantors”), and JPMorgan Chase Bank, N.A., a national banking association, as collateral agent (in such capacity, the “Collateral Agent”) for its own benefit and the benefit of the other Credit Parties (as defined in the Credit Agreement referred to below), in consideration of the mutual covenants contained herein and benefits to be derived herefrom.

 

WITNESSETH:

 

WHEREAS, reference is made to that certain Credit Agreement, dated as of April 6, 2012 (as amended, modified, supplemented or restated and in effect from time to time, the “Credit Agreement”), by and among the Borrower, the Guarantors, JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for its own benefit and the benefit of the other Credit Parties, the Collateral Agent and the lenders from time to time party thereto (individually, a “Lender” and, collectively, the “Lenders”), pursuant to which the Lenders have agreed to make Loans to the Borrower, and the L/C Issuers have agreed to issue Letters of Credit for the account of the Borrower, upon the terms and subject to the conditions specified therein; and

 

WHEREAS, the obligations of the Lenders to make Loans and of the L/C Issuers to issue Letters of Credit are each conditioned upon, among other things, the execution and delivery by the Grantors of an agreement in the form hereof to secure the Secured Obligations (as defined herein).

 

NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in this Agreement, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantors and the Collateral Agent, on its own behalf and on behalf of the other Credit Parties (and each of their respective successors or permitted assigns), hereby agree as follows:

 

ARTICLE 1

 

Definitions

 

SECTION 1.01                                      Generally. All references herein to the UCC shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if a term is defined in Article 9 of the UCC differently than in another Article thereof, the term shall have the meaning set forth in Article 9; provided  further that, if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of the Security Interest in any Collateral or the availability of any remedy

 

 

hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be.

 

SECTION 1.02                                      Definition of Certain Terms Used Herein. Unless the context otherwise requires, all capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement. In addition, as used herein, the following terms shall have the following meanings:

 

“ABL Priority Collateral” shall have the meaning assigned to such term in the Intercreditor Agreement.

 

“Accessions” shall have the meaning given that term in the UCC.

 

“Account Debtor” shall have the meaning given that term in the UCC.

 

“Administrative Agent” shall have the meaning assigned to such term in the preliminary statement of this Agreement.

 

“Agreement” shall have the meaning assigned to such term in the preamble of this Agreement.

 

“Blue Sky Laws” shall have the meaning assigned to such term in Section 6.01 of this Agreement.

 

“Borrower” shall have the meaning assigned to such term in the preamble of this Agreement.

 

“Chattel Paper” shall have the meaning given that term in the UCC.

 

“Collateral” shall mean all personal property and fixtures of each Grantor, including, without limitation, all: (a) Accounts, (b) Chattel Paper, (c) Commercial Tort Claims (including, but not limited to, those Commercial Tort Claims listed on Schedule 3.07 hereto), (d) Deposit Accounts, (e) Documents, (f) Equipment, (g) Fixtures, (h) General Intangibles (including Payment Intangibles), (i) Goods, (j) Instruments, (k) Inventory, (l) Investment Property, (m) Letter-of-Credit Rights, (n) Intellectual Property and Software, (o) Supporting Obligations, (p) money, policies and certificates of insurance, deposits, cash, or other property, (q) all books, records, and information relating to any of the foregoing ((a) through (p)) and/or to the operation of any Grantor’s business, and all rights of access to such books, records, and information, and all property in which such books, records, and information are stored, recorded and maintained, (r) all insurance proceeds, refunds, and premium rebates, including, without limitation, proceeds of fire and credit insurance, whether any of such proceeds, refunds, and premium rebates arise out of any of the foregoing ((a) through (q)) or otherwise, (s) all liens, guaranties, rights, remedies, and privileges pertaining to any of the foregoing ((a) through (r)), including the right of stoppage in transit, and (t) any of the foregoing, whether now owned or now due, or in which any Grantor has an interest, or

 

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hereafter acquired, arising, or to become due, or in which any Grantor obtains an interest, and all products, Proceeds, substitutions, and Accessions of or to any of the foregoing; provided, however, that the Collateral shall not include, and the Security Interest shall not attach to: (i) any governmental licenses or state or local franchises, charters and authorizations, to the extent security interests in such licenses, franchises, charters or authorizations are prohibited or restricted thereby (except to the extent such prohibition or restriction is ineffective under the Uniform Commercial Code of any applicable jurisdiction) other than proceeds thereof, the assignment of which is expressly deemed effective under the Uniform Commercial Code of any applicable jurisdiction notwithstanding such prohibition, (ii) any asset the pledge of which or a security interest in which is prohibited by applicable law (including any requirement to obtain the consent of any Governmental Authority), (iii) equity interests in joint ventures or any non-wholly-owned Subsidiaries, but only to the extent that the organizational documents or other agreements with other equity holders do not permit or restrict the pledge of such equity interests, (iv) agreements, licenses and leases the —pledge of which or the security interest in which is prohibited or restricted by such agreements, licenses and leases (including pursuant to any requirement to obtain the consent of any Governmental Authority or third party), to the extent prohibited or restricted thereby (except to the extent such prohibition or restriction is ineffective under the Uniform Commercial Code of any applicable jurisdiction) other than proceeds of such agreements, license or leases, the assignment of which is expressly deemed effective under the Uniform Commercial Code notwithstanding such prohibition, (v) any “intent to use” trademark applications, (vi) more than 65% of the outstanding Voting Equity Interests of any (x) CFC or (y) U.S. Subsidiary that is a disregarded entity for U.S. federal income tax purposes if substantially all of its assets consist of the capital stock of one or more Foreign Subsidiaries, (vii) Equity Interests in any Unrestricted Subsidiary, (viii) any fee owned real property with a value of less than $5.0 million and any leasehold interest in real property and (ix) any specifically identified asset with respect to which the Collateral Agent has determined in writing (in its reasonable judgment) that the costs of obtaining, perfecting or maintaining a security interest in such assets exceeds the fair market value (as determined by the Borrower in its reasonable judgment) thereof or the practical benefit to the Credit Parties afforded thereby.

 

“Collateral Agent” shall have the meaning assigned to such term in the preamble of this Agreement.

 

“Collateral Agent’s Rights and Remedies” shall have the meaning assigned to such term in Section 8.08.

 

“Commercial Tort Claim” shall have the meaning given that term in the UCC.

 

“Commodity Account” shall have the meaning given that term in the UCC.

 

“Commodity Account Control Agreement” shall mean, with respect to any Commodity Account as to which a Grantor is the Commodity Customer, an agreement by such Grantor, the Collateral Agent and the relevant Commodity Intermediary that the Commodity Intermediary will apply any value distributed on account of the Commodity Contracts carried in such Commodity Account as directed by the Collateral Agent without

 

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further consent by such Grantor. Each such agreement must be satisfactory in form and substance to the Collateral Agent.

 

“Commodity Contract” shall have the meaning given that term in the UCC.

 

“Commodity Customer” shall have the meaning given that term in the UCC.

 

“Commodity Intermediary” shall have the meaning given that term in the UCC.

 

“Control” shall have the meaning given that term in the UCC.

 

“Controlled Commodity Account” shall mean a Commodity Account as to which (i) a Grantor is the Commodity Customer and (ii) a Commodity Account Control Agreement is in effect.

 

“Controlled Deposit Account” means a Deposit Account that is subject to a Deposit Account Control Agreement.

 

“Controlled Securities Account” shall mean a Securities Account that (i) is maintained in the name of a Grantor at an office of a Securities Intermediary located in the United States and (ii) together with all Financial Assets credited thereto and all related Security Entitlements, is subject to a Securities Account Control Agreement among such Grantor, the Collateral Agent and such Securities Intermediary.

 

“Credit Agreement” shall have the meaning assigned to such term in the preliminary statement of this Agreement.

 

“Deposit Account” shall have the meaning given that term in the UCC and shall also include all demand, time, savings, passbook, or similar accounts maintained with a bank or other financial institution.

 

“Deposit Account Control Agreement” shall mean, with respect to any Controlled Deposit Account, a Blocked Account Agreement, substantially in the form of Exhibit K to the ABL Credit Agreement (with any changes that the Collateral Agent and the Term Loan Collateral Agent shall have approved), or in such other form as reasonably acceptable to the Collateral Agent and the Term Loan Collateral Agent, in either case (i) providing that the relevant Depositary Bank will comply with instructions originated by the Collateral Agent or the Term Loan Collateral Agent, as applicable, directing disposition of the funds in such Deposit Account, without further consent by any Grantor, and (ii) subordinating to the Lien of the Credit Parties all claims of the Depositary Bank to such Controlled Deposit Account (except its right to deduct its normal operating charges and any uncollected funds previously credited thereto).

 

“Depositary Bank” shall mean a bank at which a Deposit Account is maintained.

 

“Documents” shall have the meaning given that term in the UCC.

 

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“Electronic Chattel Paper” shall have the meaning given that term in the UCC.

 

“Entitlement Orders” shall have the meaning given that term in the UCC.

 

“Equipment” shall mean “equipment”, as defined in the UCC, and shall also mean all furniture, store fixtures, motor vehicles, rolling stock, machinery, office equipment, plant equipment, tools, dies, molds, and other goods, property, and assets which are used and/or were purchased for use in the operation or furtherance of a Grantor’s business, and any and all Accessions or additions thereto, and substitutions therefor.

 

“Excluded Account” means any (a) deposit account which is used for purposes of funding payroll, payroll taxes, employee benefit payments, (b) deposit accounts which are zero balance accounts, (c) other controlled disbursement accounts, (d) trust accounts, (e) petty cash accounts, (f) deposit accounts to the extent holding funds from unredeemed gift cards and (g) other deposit accounts with a demand deposit balance not exceeding $10,000 individually and $100,000 in the aggregate at any time.

 

“Financial Asset” shall have the meaning given that term in the UCC.

 

“Financing Statement” shall have the meaning given that term in the UCC.

 

“Fixtures” shall have the meaning given that term in the UCC.

 

“General Intangibles” shall have the meaning given that term in the UCC, and shall also include, without limitation, all: Payment Intangibles; rights to payment for credit extended; deposits; amounts due to any Grantor; credit memoranda in favor of any Grantor; warranty claims; tax refunds and abatements; insurance refunds and premium rebates; all means and vehicles of investment or hedging, including, without limitation, options, warrants, and futures contracts; records; customer lists; telephone numbers; goodwill; causes of action; judgments; rights to collect payments under any settlement or other agreement; literary rights; rights to performance; royalties; license and/or franchise fees; rights of admission; licenses, including, without limitation; franchises; license agreements, including all rights of any Grantor to enforce same; permits, certificates of convenience and necessity, and similar rights granted by any governmental authority; developmental ideas and concepts; proprietary processes; blueprints, drawings, designs, diagrams, plans, reports, and charts; catalogs; technical data; tapes, disks, semi-conductors chips and printouts; IP Collateral (as defined in the Intellectual Property Security Agreement); proposals; cost estimates, and reproductions on paper, or otherwise, of any and all concepts or ideas, and any matter related to, or connected with, the design, development, manufacture, sale, marketing, leasing, or use of any or all property produced, sold, or leased, by or credit extended or services performed, by any Grantor, whether intended for an individual customer or the general business of any Grantor, or used or useful in connection with research by any Grantor.

 

“Goods” shall have the meaning given that term in the UCC.

 

“Grantor” and “Grantors” shall have the meaning assigned to such terms in the preamble of this Agreement.

 

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“Guarantor” and “Guarantors” shall have the meaning assigned to such terms in the preamble of this Agreement.

 

“Indemnitee” shall have the meaning assigned to such term in Section 8.06 of this Agreement.

 

“Instruments” shall have the meaning given that term in the UCC.

 

“Intellectual Property Security Agreement” shall mean that certain Intellectual Property Security Agreement dated the date hereof among the Borrower and the Collateral Agent.

 

“Inventory” shall have the meaning given that term in the UCC, and shall also include, without limitation, all: (a) Goods which (i) are leased by a Person as lessor, (ii) are held by a Person for sale or lease or to be furnished under a contract of service, (iii) are furnished by a Person under a contract of service, or (iv) consist of raw materials, work in process, or materials used or consumed in a business; (b) Goods of said description in transit; (c) Goods of said description which are returned, repossessed or rejected; and (d) packaging, advertising, and shipping materials related to any of the foregoing.

 

“Investment Property” shall have the meaning given that term in the UCC.

 

“Joinder Agreement” shall mean an agreement substantially in the form of Exhibit A hereto.

 

“Lender” and “Lenders” shall have the meaning assigned to such terms in the preliminary statement of this Agreement.

 

“Letter-of-Credit Right” shall have the meaning given that term in the UCC and shall also mean any right to payment or performance under a letter of credit, whether or not the beneficiary has demanded, or is at the time entitled to demand, payment or performance.

 

“Letters of Credit” shall have the meaning given that term in the UCC.

 

“Payment Intangible” shall have the meaning given that term in the UCC and shall also mean any General Intangible under which the Account Debtor’s primary obligation is a monetary obligation.

 

“Permitted Dispositions” shall mean any transfer, disposition or asset sale not prohibited by Section 7.05 of the Credit Agreement.

 

“Permitted Liens” shall mean Liens permitted pursuant to the terms of Section 7.01 of the Credit Agreement.

 

“Proceeds” shall mean “proceeds”, as defined in the UCC, and shall also mean each type of property described in the definition of Collateral.

 

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“Secured Obligations” shall mean, collectively, the Obligations (as defined in the Credit Agreement).

 

“Securities Act” shall have the meaning assigned to such term in Section 6.01 of this Agreement.

 

“Securities Account” shall have the meaning given that term in the UCC.

 

“Securities Account Control Agreement” shall mean, when used with respect to a Securities Account, a Securities Account Control Agreement among the relevant Securities Intermediary, the relevant Grantor and the Collateral Agent to the effect that such Securities Intermediary will comply with Entitlement Orders originated by the Collateral Agent with respect to such Securities Account without further consent by the relevant Grantor.

 

“Securities Intermediary” shall have the meaning given that term in the UCC.

 

“Security” shall have the meaning given that term in the UCC.

 

“Security Entitlement” shall have the meaning given that term in the UCC.

 

“Security Interest” shall have the meaning assigned to such term in Section 2.01 of this Agreement.

 

“Software” shall have the meaning given that term in the UCC.

 

“Supporting Obligation” shall have the meaning given that term in the UCC and shall also refer to a Letter-of-Credit Right or secondary obligation that supports the payment or performance of an Account, Chattel Paper, a Document, a General Intangible, an Instrument, or Investment Property.

 

“Term Loan Collateral Agent” shall mean JPMorgan Chase Bank, N.A., in its capacity as Collateral Agent under the Term Facility, and its successors and permitted assigns.

 

“Term Priority Collateral” shall have the meaning assigned to such term in the Intercreditor Agreement.

 

“Voting Equity Interests” shall mean, with respect to any Person, the Equity Interests of all classes (or equivalent interests) which ordinarily, in the absence of contingencies, entitle holders thereof to vote for the election of directors (or Persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such contingency.

 

SECTION 1.03                                      Rules of Interpretation. The rules of interpretation specified in Article I of the Credit Agreement shall be applicable to this Agreement.

 

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ARTICLE 2

 

Security Interest

 

SECTION 2.01                                      Security Interest. As security for the payment or performance, as the case may be, in full of the Secured Obligations, each Grantor hereby grants to the Collateral Agent, its successors and permitted assigns, for its own benefit and the benefit of the other Credit Parties, a security interest in all of such Grantor’s right, title and interest in, to and under the Collateral (the “Security Interest”). Without limiting the foregoing, each Grantor hereby designates the Collateral Agent as such Grantor’s true and lawful attorney, exercisable by the Collateral Agent whether or not an Event of Default exists, with full power of substitution, at the Collateral Agent’s option, to file one or more Financing Statements, continuation statements, or to sign other documents for the purpose of perfecting, confirming, continuing, or protecting the Security Interest granted by each Grantor, without the signature of any Grantor (each Grantor hereby appointing the Collateral Agent as such Person’s attorney to sign such Person’s name to any such instrument or document, whether or not an Event of Default exists), and naming any Grantor or the Grantors, as debtors, and the Collateral Agent, as secured party. Any such Financing Statement may indicate the Collateral as “all assets of the Grantor”, “all personal property of the debtor” or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC.

 

SECTION 2.02                                      No Assumption of Liability. The Security Interest is granted as security only and shall not subject the Collateral Agent or any other Credit Party to, or in any way alter or modify, any obligation or liability of any Grantor with respect to or arising out of the Collateral.

 

ARTICLE 3

 

Representations and Warranties

 

The Grantors jointly and severally represent and warrant to the Collateral Agent and the other Credit Parties that:

 

SECTION 3.01                                      Title and Authority. Each Grantor has good and valid rights in, and title to, the Collateral with respect to which it has purported to grant a Security Interest hereunder and has full power and authority to grant to the Collateral Agent the Security Interest in such Collateral pursuant hereto and to execute, deliver and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other Person, other than any consent or approval which has been obtained.

 

SECTION 3.02                                      Filings. Upon the filing of UCC Financing Statements naming each Grantor as “debtor” and the Collateral Agent as “secured party” and containing a description of the Collateral in the office of the Secretary of State in the jurisdiction of organization of each Grantor and the filing of the Intellectual Property Security Agreement with the United States Patent and Trademark Office and United States Copyright Office, the Security Interest granted to the Collateral Agent (for its own benefit and the benefit of the

 

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other Credit Parties) hereunder in respect of all Collateral in which the Security Interest may be perfected by filing, recording or registration in the United States shall constitute a legal, valid and perfected security interest in the Collateral, and no further or subsequent filing, refiling, recording, re-recording, registration or re-registration is necessary in any such jurisdiction, except as provided under applicable Law with respect to the filing of continuation statements or as a result of any change in a Grantor’s name or jurisdiction of incorporation or formation or under any other circumstances under which, pursuant to the UCC, filings previously made have become misleading or ineffective in whole or in part.

 

SECTION 3.03                                      Validity and Priority of Security Interest. The Security Interest constitutes (a) a legal and valid security interest in all of the Collateral securing the payment and performance of the Secured Obligations, (b) subject to the making of the filings described in Section 3.02 above, a perfected security interest in all of the Collateral (to the extent perfection in the Collateral can be accomplished by such filing) and (c) subject to the obtaining of Control, a perfected security interest in all of the Collateral (to the extent perfection in the Collateral by Control is required hereunder). The Security Interest is and shall be prior to any other Lien on any of the Collateral, subject only to (i) with respect to the Term Priority Collateral only, Liens securing the obligations of the Grantors with respect to the Term Facility, and (ii) other Permitted Liens having priority by operation of applicable Law.

 

SECTION 3.04                                      Absence of Other Liens. The Collateral is owned by the Grantors free and clear of any Lien, except for (i) Permitted Liens or (ii) Liens for which termination statements or releases (or payoff letters providing for the delivery or filing of termination statements or releases) have been delivered to the Collateral Agent. Except, in each case, for Permitted Liens, the Grantors have not (a) filed or consented to the filing of (i) any Financing Statement or analogous document under the UCC or any other applicable Law covering any Collateral, (ii) any assignment in which any Grantor assigns any Collateral or any security agreement or similar instrument covering any Collateral with the United States Patent and Trademark Office or the United States Copyright Office or (iii) any assignment in which any Grantor assigns any Collateral or any security agreement or similar instrument covering any Collateral with any foreign governmental, municipal or other office, or (b) entered into any agreement in which any Grantor grants Control over any Collateral, which Financing Statement, control agreement or analogous document, assignment, security agreement or similar instrument is still in effect.

 

SECTION 3.05                                      Bailees, Warehousemen, Etc. Except as set forth on Schedule 3.05 hereto, no Inventory of any Grantor having an aggregate value in excess of $250,000 is in the care or custody of any third party or stored or entrusted with a bailee or other third party, except for companies providing transportation of merchandise in the ordinary course of such Grantor’s business.

 

SECTION 3.06                                      Consignments. As of the Closing Date, except as set forth on Schedule 3.06 hereto, no Grantor has possession of any property on consignment, the value of which exceeds $250,000 on an aggregate basis as to all Grantors. After the Closing Date, no Grantor shall have possession of any property on consignment, the value of which exceeds

 

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$1.0 million on an aggregate basis as to all Grantors, unless a lien waiver or other agreement reasonably satisfactory to the Collateral Agent is delivered to the Collateral Agent by such consignor.

 

SECTION 3.07                                      Commercial Tort Claims. As of the date hereof, none of the Collateral consists of a Commercial Tort Claim having an individual value in excess of $1.0 million, except as set forth on Schedule 3.07 hereto.

 

SECTION 3.08                                      Instruments and Chattel Paper. As of the date hereof, no amounts payable under or in connection with any of the Collateral are evidenced by any Instrument or Chattel Paper with an individual face value in excess of $500,000 (or, with respect to all such Instruments or Chattel Paper, an aggregate face value in excess of $2.0 million), other than such Instruments and Chattel Paper listed in Schedule 3.08 hereto. Each Instrument and each item of Chattel Paper listed in Schedule 3.08 hereto has been properly endorsed, assigned and delivered to the Collateral Agent, accompanied by instruments of transfer or assignment duly executed in blank.

 

SECTION 3.09                                      Deposit Accounts, Securities Accounts and Commodity Accounts.

 

(a)                                          As of the date hereof, no Grantor has any Deposit Accounts, Securities Accounts or Commodity Accounts other than those listed in Schedule 3.09 hereto.

 

(b)                                          So long as the Collateral Agent has Control of a Controlled Deposit Account, the Lien of the Collateral Agent on such Controlled Deposit Account will be perfected, subject to no other Liens or rights of others (except Liens and rights of the relevant Depositary Bank that are Permitted Liens and the Lien of the Term Loan Collateral Agent).

 

(c)                                           So long as the Financial Asset underlying any Security Entitlement owned by any Grantor is credited to a Controlled Securities Account, (i) the Collateral Agent’s Lien on such Security Entitlement will be perfected, subject to no other Liens or rights of others (except Liens and rights of the relevant Securities Intermediary that are Permitted Liens and the Lien of the Term Loan Collateral Agent), (ii) the Collateral Agent will have Control of such Security Entitlement and (iii) no action based on an adverse claim to such Security Entitlement or such Financial Asset, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may be asserted against the Collateral Agent or any other Credit Party.

 

(d)                                          So long as any Commodity Account is subject to a Commodity Account Control Agreement, (i) the Liens on such Commodity Account and all Commodity Contracts carried therein will be perfected, subject to no other Liens or rights of others (except Liens and rights of the relevant Commodity Intermediary that are Permitted Liens and the Lien of the Term Loan Collateral Agent) and (ii) the Collateral Agent will have Control of such Commodity Account and all Commodity Contracts carried therein from time to time.

 

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SECTION 3.10                                      Electronic Chattel Paper and Transferable Records. As of the date hereof, no amount under or in connection with any of the Collateral is evidenced by any Electronic Chattel Paper or any “transferable record” (as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act, as in effect in any relevant jurisdiction) with an individual face value in excess of $500,000 (or, with respect to all such Electronic Chattel Paper or transferable records, an aggregate face value in excess of $2.0 million), other than such Electronic Chattel Paper and transferable records listed in Schedule 3.10 hereto.

 

ARTICLE 4

 

Covenants

 

SECTION 4.01                                      Change of Name; Location of Collateral; Records; Place of Business.

 

(a)                                          Each Grantor will furnish to the Collateral Agent at least ten (10) Business Days prior written notice (or such shorter period as to which the Collateral Agent in its sole discretion agrees) of any change in: (i) any Grantor’s name; (ii) any Grantor’s organizational structure or jurisdiction of incorporation or formation; (iii) any Grantor’s Federal Taxpayer Identification Number or organizational identification number, if any, assigned to it by its state of organization; or (iv) the location of any Grantor’s chief executive office. Each Grantor agrees not to effect or permit any change referred to in clauses (i) or (ii) of the preceding sentence unless all filings, publications and registrations have been made under the UCC or other applicable Law that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected first priority security interest in all the Collateral (subject only to (i) with respect to the Term Priority Collateral only, Liens securing the obligations of the Grantors with respect to the Term Facility, and (ii) other Permitted Liens having priority by operation of applicable Law) for its own benefit and the benefit of the other Credit Parties.

 

(b)                                          Each Grantor agrees (i) to maintain, at its own cost and expense, records with respect to the Collateral owned by it which are complete and accurate in all material respects and which are consistent with its current practices, but in any event to include accounting records which are complete in all material respects indicating all payments and proceeds received with respect to any part of the Collateral, and (ii) at such time or times as the Collateral Agent may reasonably request, promptly to prepare and deliver to the Collateral Agent a duly certified schedule or schedules in form and detail reasonably satisfactory to the Collateral Agent showing the identity, amount and location of any and all Collateral.

 

SECTION 4.02                                      Protection of Security. Each Grantor shall, at its own cost and expense, take any and all actions reasonably necessary to defend title to the Collateral against all Persons and to defend the Security Interest of the Collateral Agent in the Collateral and the priority thereof against any Lien (other than Permitted Liens).

 

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SECTION 4.03                                      Further Assurances. Subject to the Intercreditor Agreement, each Grantor agrees, at its own expense, to execute, acknowledge and deliver all such further documents, Financing Statements, agreements and instruments and take all such further actions as the Collateral Agent may from time to time reasonably request to better assure, preserve, protect and perfect the Security Interest and the rights and remedies created hereby or the validity or priority of such Security Interest, including the payment of any fees and taxes required in connection with the execution and delivery of this Agreement, the granting of the Security Interest and the filing of any Financing Statements or other documents in connection herewith or therewith. Without limiting the foregoing, each Grantor agrees, at its own expense, to execute, acknowledge and deliver all such further documents, Financing Statements, agreements and instruments and take all such further actions as the Collateral Agent may from time to time reasonably request to perfect the Collateral Agent’s Security Interest in all Collateral and the Proceeds therefrom (including causing the Collateral Agent to have Control of any such Collateral to the extent required hereunder and to the extent perfection in such Collateral can be accomplished by Control).

 

SECTION 4.04                                      Inspection and Verification. Each Grantor shall, and shall cause each of its Subsidiaries to, permit representatives and independent contractors of the Collateral Agent and each Lender to visit its properties and inspect the Collateral and all records related thereto (and to make extracts and copies from such records), to discuss its affairs, finances and accounts with its directors, officers and independent public accountants, and to conduct appraisals, commercial finance examinations and other evaluations, all in accordance with and subject to the terms and conditions of Section 6.10 of the Credit Agreement. The Collateral Agent and such Persons as the Collateral Agent may reasonably designate shall have the right to verify the validity, amount, quality, quantity, value, condition and status of, or any other matter relating to, the Collateral, including, in the case of Accounts or Collateral in the possession of any third Person, by contacting Account Debtors or the third Person possessing such Collateral for the purpose of making such a verification. The Collateral Agent shall have the right, subject to the confidentiality provisions of Section 11.07 of the Credit Agreement, to share any information it gains from such inspection or verification with any Credit Party. The Grantors shall pay the reasonable and documented in reasonable detail fees and expenses of the Collateral Agent or such other Persons with respect to such inspections and verifications to the extent required by the terms of Section 6.10 of the Credit Agreement.

 

SECTION 4.05                                      Taxes; Encumbrances. At its option, the Collateral Agent may discharge past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Collateral (other than Permitted Liens), and may take any other action which the Collateral Agent may reasonably deem necessary or desirable to repair, maintain or preserve any of the Collateral to the extent any Grantor fails to do so as required by the Credit Agreement or this Agreement, and each Grantor jointly and severally agrees to reimburse the Collateral Agent on demand for any payment made or any expense incurred by the Collateral Agent pursuant to the foregoing authorization; provided, however, that the Collateral Agent shall not have any obligation to undertake any of the foregoing and shall have no liability on account of any action so undertaken except where a court of competent jurisdiction determines by final and nonappealable judgment that the

 

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Collateral Agent’s actions constitute gross negligence or willful misconduct; provided further that the making of any such payments or the taking of any such action by the Collateral Agent shall not be deemed to constitute a waiver of any Default or Event of Default arising from the Grantor’s failure to have made such payments or taken such action. Nothing in this Section 4.05 shall be interpreted as excusing any Grantor from the performance of any covenants or other promises of any Grantor with respect to taxes, assessments, charges, fees, Liens, security interests or other encumbrances and maintenance as set forth herein or in the other Loan Documents.

 

SECTION 4.06                                      Assignment of Security Interest. Upon the occurrence and during the continuance of an Event of Default, and at the reasonable request of the Collateral Agent, if during such time any Grantor shall take a security interest in any property of an Account Debtor or any other Person to secure payment and performance of an Account with a value in excess of $250,000 (or, with respect to all such property, an aggregate value in excess of $1.0 million), such Grantor shall promptly assign such security interest to the Collateral Agent. Such assignment need not be filed of public record unless necessary to continue the perfected status of the security interest against creditors of, and transferees from, the Account Debtor or other Person granting the security interest.

 

SECTION 4.07                                      Continuing Obligations of the Grantors. Each Grantor shall remain liable to observe and perform all the conditions and obligations to be observed and performed by it under each material contract, agreement or instrument relating to the Collateral, all in accordance with the terms and conditions thereof, unless the failure to observe and perform any such conditions and obligations shall not result in a breach of any such material contract, agreement or instrument.

 

SECTION 4.08                                      Possession of Collateral. Each Grantor shall remain at all times in possession of the Inventory and Goods owned by it, except with respect to the following: (a) Eligible In-Transit Inventory and Inventory which is the subject of an Eligible Letter of Credit; (b) Inventory placed under the care, custody, storage or entrustment of a bailee or other third party, provided that such Grantor shall use commercially reasonable efforts to deliver to the Collateral Agent a Collateral Access Agreement with such bailee or other third party for all distribution centers and warehouses, (excluding any warehouse or other storage facility utilized by a store location for storage of inventory after shipment from a distribution center if the Cost of Inventory at such warehouse or other storage facility is less than $1.0 million), and for locations other than distribution centers and warehouses, only if the Cost of the Inventory at such location is greater than $1.0 million.

 

SECTION 4.09                                      Limitation on Modification of Accounts. None of the Grantors will, without the Collateral Agent’s prior written consent, grant any extension of the time of payment of any of the Accounts, compromise, compound or settle the same for less than the full amount thereof, release, wholly or partly, any Person liable for the payment thereof or allow any credit or discount whatsoever thereon, except, in each case, for extensions, releases, credits, discounts, compromises or settlements granted or made in the ordinary course of business or consistent with its current practices.

 

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SECTION 4.10                                      Insurance.

 

(a)                                          Each Grantor shall (i) maintain or shall cause to be maintained such insurance as is required pursuant to Section 6.07 of the Credit Agreement; and (ii) furnish to the Collateral Agent such information as to the insurance carried as the Collateral Agent may reasonably request from time to time.

 

(b)                                          Each Grantor hereby irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated by the Collateral Agent) as such Grantor’s true and lawful agent (and attorney-in-fact), exercisable only after the occurrence and during the continuance of a Cash Dominion Event, for the purpose of making, settling and adjusting claims in respect of Collateral under policies of insurance, endorsing the name of such Grantor on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect thereto. In the event that any Grantor at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or to pay any premium in whole or in part relating thereto, the Collateral Agent may, without waiving or releasing any obligation or liability of the Grantors hereunder or any Default or Event of Default, in its sole discretion, obtain and maintain such policies of insurance and pay such premium and take any other actions with respect thereto as the Collateral Agent deems advisable. All sums disbursed by the Collateral Agent in connection with this Section 4.10(b), including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable, upon demand, by the Grantors to the Collateral Agent and shall be additional Secured Obligations secured hereby.

 

SECTION 4.11                                      Commercial Tort Claims. If any Grantor shall at any time hold or acquire a Commercial Tort Claim for which a complaint has been filed in a court of competent jurisdiction having a value in excess of $1.0 million, such Grantor shall promptly (but, in any event, within ten (10) Business Days) notify the Collateral Agent in writing of the details thereof, and the Grantors shall take such actions as the Collateral Agent shall reasonably request in order to grant to the Collateral Agent, for the ratable benefit of the Credit Parties, a perfected security interest therein and in the Proceeds thereof.

 

SECTION 4.12                                      Legend. Upon the occurrence and during the continuance of an Event of Default, and at the reasonable request of the Collateral Agent, each Grantor shall legend, in form and manner reasonably satisfactory to the Collateral Agent, its Accounts and its books, records and documents evidencing or pertaining thereto with an appropriate reference to the fact that such Accounts have been assigned to the Collateral Agent, for its own benefit and the benefit of the other Credit Parties, and that the Collateral Agent has a security interest therein.

 

SECTION 4.13                                      Other Actions. In order to further ensure the attachment, perfection and priority of, and the ability of the Collateral Agent to enforce, the Collateral Agent’s Security Interest in the Collateral, each Grantor covenants and agrees, in each case at

 

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such Grantor’s own expense, to take the following actions with respect to the following Collateral:

 

(a)                                          If any amount then payable under or in connection with any of the Collateral shall become evidenced by any Instrument or Chattel Paper with an individual face value in excess of $500,000 (or, with respect to all such Instruments or Chattel Paper, an aggregate face value in excess of $2.0 million), other than such Instruments and Chattel Paper listed in Schedule 3.08 hereto, the Grantor acquiring such Instrument or Chattel Paper shall promptly (but, in any event, within ten (10) Business Days after receipt thereof) endorse, assign and deliver the same (i) if the same constitutes Proceeds of the Term Priority Collateral, to the Term Loan Collateral Agent (with copies to the Collateral Agent), and (ii) if the same constitutes ABL Priority Collateral, to the Collateral Agent (with copies to the Term Loan Collateral Agent), accompanied by such instruments of transfer or assignment duly executed in blank as the Collateral Agent or the Term Loan Collateral Agent may from time to time specify.

 

(b)                                          Subject to the provisions of Section 5.01, no Grantor shall hereafter establish and maintain any Deposit Account, Securities Account or Commodity Account with any Depositary Bank, Securities Intermediary or Commodity Intermediary unless (i) such Depositary Bank, Securities Intermediary or Commodity Intermediary shall be reasonably acceptable to the Collateral Agent, and (ii) such Depositary Bank, Securities Intermediary or Commodity Intermediary, as the case may be, and such Grantor shall have duly executed and delivered a Deposit Account Control Agreement, Security Account Control Agreement or Commodity Account Control Agreement, as the case may be, with respect to such Deposit Account, Securities Account or Commodity Account, as the case may be. Each Grantor shall accept any cash and Investment Property in trust for the benefit of the Collateral Agent and promptly after actual receipt thereof (within a reasonable period of time not to exceed five (5) Business Days), deposit any and all cash and Investment Property received by it into a Controlled Deposit Account, a Controlled Commodity Account or a Controlled Securities Account. The Collateral Agent agrees with each Grantor that the Collateral Agent shall not give any entitlement orders or instructions or directions to any issuer of uncertificated securities, Securities Intermediary or Commodity Intermediary, and shall not withhold its consent to the exercise of any withdrawal or dealing rights by such Grantor, unless an Event of Default has occurred and is continuing or would occur after giving effect to any such investment and withdrawal rights. The provisions of this Section 4.13(b) shall not apply to (a) any Excluded Account and (b) any Financial Assets credited to a Securities Account for which the Collateral Agent is the Securities Intermediary. No Grantor shall grant Control over any Investment Property comprised of Equity Interests in any Subsidiary to any person other than the Collateral Agent or the Term Loan Collateral Agent.

 

(c)                                           As between the Collateral Agent and the Grantors, the Grantors shall bear the investment risk with respect to the Investment Property and Pledged Securities (as that term is defined in the Pledge Agreement), and the risk of loss of,

 

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damage to, or the destruction of, the Investment Property and Securities (except where a court of competent jurisdiction determines by final and nonappealable judgment that such loss, damage or destruction has resulted from the gross negligence or willful misconduct of the Collateral Agent), whether in the possession of, or maintained as a Security Entitlement or deposit by, or subject to the Control of, the Collateral Agent, a Securities Intermediary, a Commodity Intermediary, any Grantor or any other Person.

 

(d)                                          If any amount payable under or in connection with any of the Collateral shall become evidenced by any Electronic Chattel Paper or any transferable record with an individual face value in excess of $500,000 (or, with respect to all such Electronic Chattel Paper or transferable records, an aggregate face value in excess of $2.0 million), other than such Electronic Chattel Paper and transferable records listed in Schedule 3.10 hereto, the Grantor acquiring such Electronic Chattel Paper or transferable record shall promptly notify (i) if such amount payable constitutes Proceeds of the ABL Priority Collateral, the Collateral Agent (with copies to the Term Loan Collateral Agent) thereof, and (ii) if such amount payable constitutes Proceeds of the Term Priority Collateral, the Term Loan Collateral Agent (with copies to the Collateral Agent) thereof, and, in each case, shall take such action as the applicable Collateral Agent may reasonably request to vest in such Collateral Agent Control of such Electronic Chattel Paper under Section 9-105 of the UCC or control under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as in effect in such jurisdiction, of such transferable record. The Collateral Agent agrees with each Grantor that the Collateral Agent will arrange, pursuant to procedures satisfactory to the Collateral Agent and so long as such procedures will not result in the Collateral Agent’s loss of control, for the Grantor to make alterations to the Electronic Chattel Paper or transferable record permitted under Section 9-105 of the UCC or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in control to allow without loss of control, unless a Cash Dominion Event has occurred and is continuing or would occur after taking into account any action by such Grantor with respect to such Electronic Chattel Paper or transferable record.

 

(e)                                           If any Grantor is at any time a beneficiary under a Letter of Credit (other than a Letter of Credit constituting a Supporting Obligation) now or hereafter issued having a face value in an amount in excess of $500,000 (or with respect to all such Letters of Credit, having an aggregate face value in an amount in excess of $2.0 million), such Grantor shall promptly notify the Collateral Agent thereof and such Grantor shall, at the request of the Collateral Agent, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either (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 the Letter of Credit and to cause the proceeds of any drawing under such Letter of Credit to be paid directly to the Collateral Agent after the occurrence and during the continuance of any Cash Dominion Event, or (ii) arrange for the Collateral Agent to become the transferee

 

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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 paid directly to the Collateral Agent after the occurrence and during the continuance of any Cash Dominion Event and applied as provided in the Credit Agreement.

 

(f)                                            Prior to the satisfaction of the Discharge of Term Obligations, with respect to any obligation under this Agreement, any other Collateral Document, or the Credit Agreement to deliver possession or control of any Collateral on which there is a Second Priority Lien by the Collateral Agent, such obligation shall be deemed satisfied by the delivery of possession or control of such Collateral to the “Collateral Agent” for the Term Facility (holding for the benefit of the Collateral Agent for the Credit Parties).

 

SECTION 4.15              Joinder of Additional Grantors. Upon the formation or acquisition of any new direct or indirect Subsidiary (other than any Unrestricted Subsidiary, a CFC or a Subsidiary that is held directly or indirectly by a CFC) by any Grantor, then the Grantors shall, at the Grantors’ expense, cause such Subsidiary to execute and deliver to the Collateral Agent a Joinder Agreement substantially in the form of Exhibit A hereto and to comply with the requirements of Section 6.12 of the Credit Agreement, within the time periods specified therein, and, upon such execution and delivery, such Subsidiary shall constitute a “Grantor” for all purposes hereunder with the same force and effect as if originally named as a Grantor herein. The execution and delivery of such Joinder Agreement shall not require the consent of any Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new Grantor as a party to this Agreement.

 

ARTICLE 5

 

Deposit Accounts; Securities Accounts;

Commodity Accounts; Power of Attorney

 

SECTION 5.01                                      Deposit Accounts; Collections.

 

(a)                                          In addition to the requirements set forth in Section 6.13(a)(ii) of the Credit Agreement with respect to Deposit Accounts of the Grantors in existence on the Closing Date, (i) in the case of any Person that becomes a Grantor after the Closing Date, on the date on which such Person signs and delivers its Joinder Agreement, and (ii) in the case of any Deposit Account opened by any Grantor after the Closing Date, promptly after opening such Deposit Account, such Grantor shall, with respect to each Deposit Account then maintained by it, enter into (and cause the relevant Depositary Bank to enter into) a Deposit Account Control Agreement in respect of such Deposit Account and shall deliver such Deposit Account Control Agreement to the Collateral Agent (which shall enter into the same). All cash owned by such Grantor shall have been deposited, or after receipt thereof (within a reasonable period of time not to exceed three (3) Business Days) shall be deposited, in one or more Controlled Deposit

 

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Accounts, in each case with a Depositary Bank the jurisdiction of which (determined as provided in UCC Section 9-304) shall at all times be a jurisdiction in which Article 9 of the UCC is in effect.

 

(b)                                          Notwithstanding the foregoing, such Grantor has the right not to comply with the requirements of preceding clause (a) with respect to Deposit Accounts that are Excluded Accounts, provided, however, that if an Event of Default occurs and is continuing, the Collateral Agent may terminate the foregoing right not to comply, by giving at least 10 Business Days’ notice of such termination to the relevant Grantor.

 

(c)                                           Each Grantor shall at all times comply with the cash management provisions of Section 6.13 of the Credit Agreement including, without limitation, after the occurrence and during the continuance of a Cash Dominion Event, causing the ACH or wire transfer no less frequently than daily (and whether or not there are then any outstanding Secured Obligations) of all cash receipts and collections into the Concentration Account or a Blocked Account, as provided for in the Credit Agreement.

 

(d)                                          Without the prior written consent of the Collateral Agent (which consent shall not be unreasonably withheld), no Grantor shall modify or amend the instructions pursuant to any of the Credit Card Notifications or the Blocked Account Agreements. So long as no Event of Default has occurred and is continuing, each Grantor shall, and the Collateral Agent hereby authorizes each Grantor to, enforce and collect all amounts owing on the Inventory and Accounts, for the benefit and on behalf of the Collateral Agent and the other Credit Parties; provided, however, that such authorization may, at the direction of the Collateral Agent, be terminated upon the occurrence and during the continuance of any Event of Default.

 

SECTION 5.02                                      Security Accounts; Commodity Accounts.

 

(a)                                          Within 90 days after the Closing Date (or, in the case of any Person that thereafter becomes a Grantor, on the date on which such Person signs and delivers its Joinder Agreement), each Grantor shall enter into (and cause the relevant Securities Intermediary to enter into) a Securities Account Control Agreement in respect of each Security Entitlement owned by such Grantor and the Securities Account to which the underlying Financial Asset is credited and deliver such Securities Account Control Agreement to the Collateral Agent (which shall enter into the same). Thereafter, whenever such Grantor acquires any other Security Entitlement, such Grantor shall, as promptly as practicable, cause the underlying Financial Asset to be credited to a Controlled Securities Account.

 

(b)                                          Within 90 days after the Closing Date (or, in the case of any Person that thereafter becomes a Grantor, on the date on which such Person signs and delivers a Joinder Agreement), each Grantor shall enter into (and cause the relevant Commodity Intermediary to enter into) a Commodity Account Control Agreement in respect of

 

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each Commodity Account owned by such Grantor and shall deliver such Commodity Account Control Agreement to the Collateral Agent (which shall enter into the same). Thereafter, such Grantor shall cause each Commodity Contract owned by it to be carried at all times in a Controlled Commodity Account.

 

SECTION 5.03                                      Power of Attorney.                  Each Grantor irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated by the Collateral Agent) as such Grantor’s true and lawful agent and attorney-in-fact, and in such capacity the Collateral Agent shall have the right, with power of substitution for each Grantor and in each Grantor’s name or otherwise, for the use and benefit of the Collateral Agent and the other Credit Parties, (a) at any time, whether or not a Cash Dominion Event has occurred, to take actions required to be taken by the Grantors under Section 2.01 of this Agreement, (b) upon the occurrence and during the continuance of a Cash Dominion Event or as otherwise permitted under the Credit Agreement, (i) to take actions required to be taken by the Grantors under Section 5.01 of this Agreement; and (ii) to receive, endorse, assign and/or deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the Collateral or any part thereof, and (c) upon the occurrence and during the continuance of an Event of Default or as otherwise permitted under the Credit Agreement, (i) to demand, collect, receive payment of, give receipt for and give discharges and releases of all or any of the Collateral; (ii) to sign the name of any Grantor on any invoices, schedules of Collateral, freight or express receipts, or bills of lading storage receipts, warehouse receipts or other documents of title relating to any of the Collateral; (iii) to sign the name of any Grantor on any notice to such Grantor’s Account Debtors; (iv) to sign the name of any Grantor on any proof of claim in bankruptcy against Account Debtors, and on notices of lien, claims of mechanic’s liens, or assignments or releases of mechanic’s liens securing the Accounts; (v) to sign change of address forms to change the address to which each Grantor’s mail is to be sent to such address as the Collateral Agent shall designate; (vi) to receive and open each Grantor’s mail, remove any Proceeds of Collateral therefrom and turn over the balance of such mail either to the Borrower or to any trustee in bankruptcy or receiver of a Grantor, or other legal representative of a Grantor whom the Collateral Agent reasonably determines to be the appropriate person to whom to so turn over such mail; (vii) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of any Collateral; (viii) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral; (ix) to take all such action as may be reasonably necessary to obtain the payment of any letter of credit and/or banker’s acceptance of which any Grantor is a beneficiary; (x) to repair, manufacture, assemble, complete, package, deliver, alter or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any customer of any Grantor; (xi) to use, license or transfer any or all General Intangibles of any Grantor, subject to those restrictions to which such Grantor is subject under applicable Law and by contract; and (xii) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and things reasonably necessary to carry out the purposes of this Agreement, as fully and completely as though the Collateral Agent was the absolute owner of the Collateral for all purposes; provided, however, that nothing herein contained shall be construed as requiring or obligating the Collateral Agent or any other Credit Party to

 

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make any commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Collateral Agent or any other Credit Party, or to present or file any claim or notice. It is understood and agreed that the appointment of the Collateral Agent as the agent and attorney-in-fact of the Grantors for the purposes set forth above is coupled with an interest and is irrevocable.

 

SECTION 5.04                                      No Obligation to Act. The Collateral Agent shall not be obligated to do any of the acts or to exercise any of the powers authorized by Section 5.03, but if the Collateral Agent elects to do any such act or to exercise any of such powers, it shall not be accountable for more than it actually receives as a result of such exercise of power, and shall not be responsible to any Grantor for any act or omission to act, except where a court of competent jurisdiction determines by final and nonappealable judgment that the subject act or omission to act has resulted from the gross negligence or willful misconduct of the Collateral Agent. The provisions of Section 5.03 shall in no event relieve any Grantor of any of its obligations hereunder or under any other Loan Document with respect to the Collateral or any part thereof or impose any obligation on the Collateral Agent or any other Credit Party to proceed in any particular manner with respect to the Collateral or any part thereof, or in any way limit the exercise by the Collateral Agent or any other Credit Party of any other or further right which it may have on the date of this Agreement or hereafter, whether hereunder, under any other Loan Document, by applicable Law or otherwise.

 

ARTICLE 6

 

Remedies

 

SECTION 6.01                                      Remedies upon Default. Upon the occurrence and during the continuance of an Event of Default, it is agreed that the Collateral Agent shall have in any jurisdiction in which enforcement hereof is sought, in addition to all other rights and remedies, the rights and remedies of a secured party under the UCC or other applicable Law. The rights and remedies of the Collateral Agent shall include, without limitation, the right to take any or all of the following actions at the same or different times:

 

(a)                                          With respect to any Collateral consisting of Accounts, General Intangibles (including Payment Intangibles), Letter-of-Credit Rights, Instruments, Chattel Paper, Documents, and Investment Property, the Collateral Agent may collect the Collateral with or without the taking of possession of any of the Collateral.

 

(b)                                          With respect to any Collateral consisting of Accounts, the Collateral Agent may: (i) demand, collect and receive any amounts relating thereto, as the Collateral Agent may determine; (ii) commence and prosecute any actions in any court for the purposes of collecting any such Accounts and enforcing any other rights in respect thereof; (iii) defend, settle or compromise any action brought and, in connection therewith, give such discharges or releases as the Collateral Agent may reasonably deem appropriate; (iv) without limiting the Collateral Agent’s rights set forth in Section 5.03 hereof, receive, open mail addressed to any Grantor and endorse checks, notes, drafts, acceptances, money orders, bills of lading, warehouse receipts or

 

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other instruments or documents evidencing payment, shipment or storage of the goods giving rise to such Accounts or securing or relating to such Accounts, on behalf of and in the name of such Grantor; and (v) sell, assign, transfer, make any agreement in respect of, or otherwise deal with or exercise rights in respect of, any such Accounts or the goods or services which have given rise thereto, as fully and completely as though the Collateral Agent was the absolute owner thereof for all purposes.

 

(c)                                           With respect to any Collateral consisting of Investment Property, the Collateral Agent may, upon notice to any Grantor: (i) exercise all rights of any Grantor with respect thereto, including without limitation, the right to exercise all voting and corporate rights at any meeting of the shareholders of the Issuer (as defined in the Pledge Agreement) of any Investment Property and to exercise any and all rights of conversion, exchange, subscription or any other rights, privileges or options pertaining to any Investment Property as if the Collateral Agent was the absolute owner thereof, including the right to exchange, at its discretion, any and all of any Investment Property upon the merger, consolidation, reorganization, recapitalization or other readjustment of the Issuer thereof, all without liability except to account for property actually received as provided in Section 5.04 hereof; (ii) transfer such Collateral at any time to itself, or to its nominee, and receive the income thereon and hold the same as Collateral hereunder or apply it to the Secured Obligations; and (iii) demand, sue for, collect or make any compromise or settlement it deems desirable. The Grantors recognize that (a) the Collateral Agent may be unable to effect a public sale of all or a part of the Investment Property by reason of certain prohibitions contained in the Securities Act of 1933, 15 U.S.C. §77, (as amended and in effect, the “Securities Act”) or the Securities laws of various states (the “Blue Sky Laws”), but may be compelled to resort to one or more private sales to a restricted group of purchasers who will be obliged to agree, among other things, to acquire the Investment Property for their own account, for investment and not with a view to the distribution or resale thereof, (b) that private sales so made may be at prices and upon other terms less favorable to the seller than if the Investment Property were sold at public sales, (c) that neither the Collateral Agent nor any other Credit Party has any obligation to delay sale of any of the Investment Property for the period of time necessary to permit the Investment Property to be registered for public sale under the Securities Act or the Blue Sky Laws, and (d) that private sales made under the foregoing circumstances shall be deemed to have been made in a commercially reasonable manner, provided that such sales are conducted in accordance with applicable Law. Notwithstanding anything herein to the contrary, no Grantor shall be required to register, or cause the registration of, any Investment Property under the Securities Act or any Blue Sky Laws.

 

(d)                                          With respect to any Collateral consisting of Inventory, the Collateral Agent and/or representatives and independent contractors of the Collateral Agent may, but shall not be obligated to, repair, manufacture, assemble, complete, package, deliver, alter or supply any work-in-process Inventory, if any, necessary to fulfill in whole or in part the purchase order of any customer of any Grantor, all at the expense of the Grantors.

 

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(e)                                           With respect to any Collateral consisting of Inventory, Goods, and Equipment, the Collateral Agent may conduct one or more going out of business sales, in the Collateral Agent’s own right or by one or more agents and contractors. Such sale(s) may be conducted upon any premises owned, leased, or occupied by any Grantor. The Collateral Agent and any such agent or contractor, in conjunction with any such sale, may augment the Inventory with other goods (all of which other goods shall remain the sole property of the Collateral Agent or such agent or contractor). Any amounts realized from the sale of such goods which constitute augmentations to the Inventory (net of an allocable share of the costs and expenses incurred in their disposition) shall be the sole property of the Collateral Agent or such agent or contractor and neither any Grantor nor any Person claiming under or in right of any Grantor shall have any interest therein. Each purchaser at any such going out of business sale shall hold the property sold absolutely, free from any claim or right on the part of any Grantor.

 

(f)                                            With or without legal process and with or without prior notice or demand for performance, the Collateral Agent may enter upon, occupy, and use any premises owned or occupied by each Grantor, and may exclude the Grantors from such premises or portion thereof as may have been so entered upon, occupied, or used by the Collateral Agent. The Collateral Agent shall not be required to remove any of the Collateral from any such premises upon the Collateral Agent’s taking possession thereof, and may render any Collateral unusable to the Grantors. In no event shall the Collateral Agent be liable to any Grantor for use or occupancy by the Collateral Agent of any premises pursuant to this Section 6.01(f), nor for any charge (such as wages for the Grantors’ employees and utilities) incurred in connection with the Collateral Agent’s exercise of the Collateral Agent’s Rights and Remedies (as defined herein) hereunder, other than for direct or actual damages resulting from the gross negligence or willful misconduct of the Collateral Agent as determined by a final and nonappealable judgment of a court of competent jurisdiction.

 

(g)                                           The Collateral Agent may require any Grantor to assemble the Collateral and make it available to the Collateral Agent at the Grantor’s sole risk and expense at a place or places which are reasonably convenient to both the Collateral Agent and such Grantor.

 

(h)                                          Each Grantor agrees that the Collateral Agent shall have the right, subject to applicable Law, to sell or otherwise dispose of all or any part of the Collateral, at public or private sale, for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. Each Grantor further agrees that any such sale of all or any part of the Collateral consisting of Inventory for consideration in an amount equal to the balance of the purchase price (minus any customer deposits previously collected by such Grantor) shall be commercially reasonable. Each purchaser at any such sale shall hold the property sold absolutely, free from any claim or right on the part of any Grantor.

 

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(i)                                              Unless the Collateral is perishable or threatens to decline speedily in value, or is of a type customarily sold on a recognized market (in which event the Collateral Agent shall provide the Grantors such advance notice as may be practicable under the circumstances), the Collateral Agent shall give the Grantors at least ten (10) days’ prior written notice, by authenticated record, of the date, time and place of any proposed public sale, and of the date after which any private sale or other disposition of the Collateral may be made. Each Grantor agrees that such written notice shall satisfy all requirements for notice to that Grantor which are imposed under the UCC or other applicable Law with respect to the exercise of the Collateral Agent’s Rights and Remedies upon default. The Collateral Agent shall not be obligated to make any sale or other disposition of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale or other disposition of such Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned.

 

(j)                                             Any public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent may fix and state in the notice of such sale. At any sale or other disposition, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute discretion) determine. If any of the Collateral is sold, leased, or otherwise disposed of by the Collateral Agent on credit, the Secured Obligations shall not be deemed to have been reduced as a result thereof unless and until payment in full is received thereon by the Collateral Agent. In the event that the purchaser fails to pay for the Collateral, the Collateral Agent may resell the Collateral and apply the proceeds from such resale in accordance with the terms of Section 6.02 of this Agreement.

 

(k)                                          At any public (or, to the extent permitted by applicable Law, private) sale made pursuant to this Section 6.01, the Collateral Agent or any other Credit Party may bid for or purchase, free (to the extent permitted by applicable Law) from any right of redemption, stay, valuation or appraisal on the part of any Grantor, the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then due and payable to the Collateral Agent or such other Credit Party from any Grantor on account of the Secured Obligations as a credit against the purchase price, and the Collateral Agent or such other Credit Party may, upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to any Grantor therefor.

 

(l)                                              For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof. The Collateral Agent shall be free to carry out such sale pursuant to such agreement and no Grantor shall be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement all Events of Default shall have been remedied and the Secured Obligations paid in full.

 

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(m)                                      As an alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose upon the Collateral and to sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver.

 

(n)                                          To the extent permitted by applicable Law, each Grantor hereby waives all rights of redemption, stay, valuation and appraisal which such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.

 

SECTION 6.02                                      Application of Proceeds. After the occurrence and during the continuance of an Event of Default and acceleration of the Secured Obligations, the Collateral Agent shall apply the proceeds of any collection or sale of the Collateral, as well as any Collateral consisting of cash, or any Collateral granted under any other of the Collateral Documents, in accordance with Section 8.03 of the Credit Agreement.

 

The Collateral Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale or other disposition of the Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the purchase money by the Collateral Agent or of the officer making the sale or other disposition shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold or otherwise disposed of and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof.

 

ARTICLE 7

 

Perfection of Security Interest

 

SECTION 7.01                                      Perfection by Filing. This Agreement constitutes an authenticated record, and each Grantor hereby authorizes the Collateral Agent, pursuant to the provisions of Section 2.01 and Section 5.03, to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Collateral, in such filing offices as the Collateral Agent shall reasonably deem appropriate, and the Grantors shall pay the Collateral Agent’s reasonable costs and expenses incurred in connection therewith.

 

SECTION 7.02                                      Other Perfection, Etc. The Grantors shall at any time and from time to time take such steps as the Collateral Agent may reasonably request for the Collateral Agent (a) to the extent required by Section 4.08 of this Agreement, to obtain an acknowledgment, in form and substance reasonably satisfactory to the Collateral Agent, of any bailee having possession of any of the Collateral that the bailee holds such Collateral for the Collateral Agent, (b) to the extent required by this Agreement or the Credit Agreement, to obtain Control of any Investment Property, Deposit Accounts, Letter-of-Credit Rights or Electronic Chattel Paper, with any agreements establishing Control to be in form and

 

24

 

substance reasonably satisfactory to the Collateral Agent and (c) otherwise to insure the continued perfection of the Collateral Agent’s security interest in any of the Collateral with the priority described in Section 3.03 and of the preservation of its rights therein.

 

SECTION 7.03                                      Savings Clause. Nothing contained in this Article 7 shall be construed to narrow the scope of the Collateral Agent’s Security Interest in any of the Collateral or the perfection or priority thereof or to impair or otherwise limit any of the Collateral Agent’s Rights and Remedies hereunder except (and then only to the extent) as mandated by the UCC.

 

ARTICLE 8

 

Miscellaneous

 

SECTION 8.01                                      Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given as provided in Section 11.02 of the Credit Agreement.

 

SECTION 8.02                                      Grant of Non-Exclusive License. Without limiting the provisions of Section 6.01 hereof or any other rights of the Collateral Agent as the holder of a Lien on any IP Collateral (as defined in the Intellectual Property Security Agreement), each Grantor, subject to those restrictions to which such Grantor is subject under applicable Law and by contract, hereby grants to the Collateral Agent, and the representatives and independent contractors of the Collateral Agent, a royalty free, non-exclusive, irrevocable license, to use, apply, and affix any trademark, trade name, logo, or the like in which any Grantor now or hereafter has rights, such license to be effective only upon the occurrence and during the continuance of any Event of Default in connection with the Collateral Agent’s exercise of the Collateral Agent’s Rights and Remedies hereunder including, without limitation, in connection with any completion of the manufacture of Inventory or any sale or other disposition of Inventory. The license granted in this Section 8.02 shall remain in full force and effect throughout the term of this Agreement, notwithstanding the release of any Grantor hereunder.

 

SECTION 8.03                                      Security Interest Absolute. All rights of the Collateral Agent hereunder, the Security Interest and all obligations of the Grantors hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any of the Secured Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document, or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or consent under or departure from the Guaranty or any other guarantee, securing or guaranteeing all or any of the Secured Obligations, or (d) any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Grantor in respect of the Secured Obligations or this Agreement.

 

25

 

SECTION 8.04                                      Survival of Agreement. All covenants, agreements, representations and warranties made by the Grantors herein and in any other Loan Document and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the Collateral Agent and the other Credit Parties and shall survive the execution and delivery of this Agreement and the other Loan Documents and the making of any Loans and the issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Collateral Agent, any L/C Issuer or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Credit Agreement, and shall continue in full force and effect unless terminated in accordance with Section 8.14 hereof.

 

SECTION 8.05                                      Binding Effect; Several Agreement; Assignments. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and permitted assigns of such party, and all covenants, promises and agreements by or on behalf of the Grantors that are contained in this Agreement shall bind and inure to the benefit of each Grantor and its respective successors and permitted assigns. This Agreement shall be binding upon each Grantor and the Collateral Agent and their respective successors and permitted assigns, and shall inure to the benefit of each Grantor, the Collateral Agent and the other Credit Parties and their respective successors and permitted assigns, except that no Grantor shall have the right to assign or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any such attempted assignment or transfer shall be void) except as expressly permitted by this Agreement or the Credit Agreement. This Agreement shall be construed as a separate agreement with respect to each Grantor and may be amended, modified, supplemented, waived or released with respect to any Grantor without the approval of any other Grantor and without affecting the obligations of any other Grantor hereunder.

 

SECTION 8.06                                      Collateral Agent’s Fees and Expenses; Indemnification.

 

(a)                                          Without limiting or duplicating any of their obligations under the Credit Agreement, the Guaranty or the other Loan Documents, the Grantors jointly and severally agree to pay all reasonable and documented in reasonable detail out-of-pocket expenses incurred by the Collateral Agent, including the reasonable fees, charges and disbursements of a single counsel and any outside consultants for the Collateral Agent, in connection with (i) the administration of this Agreement, (ii) the custody or preservation of, or the sale of, collection from or other realization upon any of the Collateral, (iii) the exercise, enforcement or protection of any of the Collateral Agent’s Rights and Remedies hereunder or (iv) the failure of any Grantor to perform or observe any of the provisions hereof.

 

(b)                                          Without limiting or duplicating any of their indemnification obligations under the Credit Agreement, the Guaranty or the other Loan Documents, the Grantors shall jointly and severally indemnify the Credit Parties and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and

 

26

 

hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the reasonable and documented in reasonable detail fees, charges and disbursements of a single counsel for all Indemnitees taken as a whole in each relevant jurisdiction material to the interests of the Lenders, in each case, selected by the Collateral Agent and solely in the case of an actual conflict of interest between Indemnitees where the Indemnitees affected by such conflict inform the Borrower of such conflict, one additional counsel in each relevant jurisdiction material to the interest of the Lenders to each group of affected Indemnitees taken as a whole) incurred by any Indemnitee or asserted against any Indemnitee by any third party or by any Grantor arising out of, in connection with, or as a result of, (i) the preparation, execution, delivery or administration of this Agreement, the Credit Agreement, any other Loan Document or any other agreement or instrument contemplated hereby or thereby or any amendment or waiver with respect hereto or thereto, the performance by the parties hereto of their respective obligations hereunder or thereunder, or the consummation of the transactions contemplated hereby or thereby, or, in the case of the Collateral Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement, the Credit Agreement and the other Loan Documents, or (ii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by any Grantor, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by any Grantor against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if such Grantor has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

 

(c)                                           To the fullest extent permitted by applicable Law, the Grantors shall not assert, and hereby waive, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, the Credit Agreement, any other Loan Document or any agreement or instrument contemplated hereby, or the transactions contemplated hereby or thereby. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement, the Credit Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction.

 

27

 

(d)                                          Any such amounts payable as provided hereunder shall be additional Secured Obligations secured hereby and by the other Security Documents. All amounts due under this Section 8.06 shall be payable not later than ten (10) Business Days after receipt of an invoice or demand therefor.

 

(e)                                           The agreements in this Section 8.06 shall survive the resignation of the Collateral Agent, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Secured Obligations.

 

SECTION 8.07                                      Governing Law.                                  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 8.08                                      Waivers; Amendment.

 

(a)                                          The rights, remedies, powers, privileges, and discretions of the Collateral Agent hereunder (herein, the “Collateral Agent’s Rights and Remedies”) shall be cumulative and not exclusive of any rights or remedies which it would otherwise have. No delay or omission by the Collateral Agent in exercising or enforcing any of the Collateral Agent’s Rights and Remedies shall operate as, or constitute, a waiver thereof. No waiver by the Collateral Agent of any Event of Default or of any Default under any other agreement shall operate as a waiver of any other Event of Default or other Default hereunder or under any other agreement. No single or partial exercise of any of the Collateral Agent’s Rights or Remedies, and no express or implied agreement or transaction of whatever nature entered into between the Collateral Agent and any Person, at any time, shall preclude the other or further exercise of the Collateral Agent’s Rights and Remedies. No waiver by the Collateral Agent of any of the Collateral Agent’s Rights and Remedies on any one occasion shall be deemed a waiver on any subsequent occasion, nor shall it be deemed a continuing waiver. The Collateral Agent’s Rights and Remedies may be exercised at such time or times and in such order of preference as the Collateral Agent may determine. The Collateral Agent’s Rights and Remedies may be exercised without resort or regard to any other source of satisfaction of the Secured Obligations. No waiver of any provisions of this Agreement or any other Loan Document or consent to any departure by any Grantor therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on any Grantor in any case shall entitle such Grantor or any other Grantor to any other or further notice or demand in similar or other circumstances.

 

(b)                                          Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to a written agreement entered into between the Collateral Agent and the Grantor or Grantors with respect to whom such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 11.01 of the Credit Agreement.

 

28

 

SECTION 8.09                                      WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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 AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.09.

 

SECTION 8.10                                      Severability. Any provision of this 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.

 

SECTION 8.11                                      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 counterpart of a signature page of this Agreement by telecopy or e-mail shall be effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION 8.12                                      Headings. Article and Section headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

SECTION 8.13                                      Jurisdiction; Waiver of Venue; Consent to Service of Process.

 

(a)                                          EACH OF THE GRANTORS IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS 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 AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO 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

 

29

 

THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE COLLATERAL AGENT, ANY LENDER OR ANY L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY OF THE GRANTORS OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(b)                                          EACH OF THE GRANTORS IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (A) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(c)                                           EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 8.01. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

SECTION 8.14                                      Termination; Release of Collateral.

 

(a)                                          Any Lien upon any Collateral will be released automatically if the Collateral constitutes property being sold, transferred or disposed of in a Permitted Disposition to a Person that is not a Grantor. Upon at least two (2) Business Days’ prior written request by the Grantors, the Collateral Agent shall execute such documents as may be necessary to evidence the release of the Liens upon any Collateral described in this Section 8.14(a); provided, however, that (i) the Collateral Agent shall not be required to execute any such document on terms which, in its reasonable opinion, would, under applicable Law, expose the Collateral Agent to liability or entail any adverse consequence other than the release of such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge, affect or impair the Secured Obligations or any Liens (other than those expressly being released) upon (or obligations of any Grantor in respect of) all interests retained by any Grantor, including, without limitation, the Proceeds of any sale, all of which shall continue to constitute part of the Collateral.

 

30

 

(b)                                          Except for those provisions which expressly survive the termination thereof, this Agreement and the Security Interest granted herein shall terminate when (i) the Commitments have expired or been terminated, (ii) all of the Secured Obligations have been paid in full in cash or otherwise satisfied (other than any indemnity obligation for unasserted claims that by its terms survives the termination of this Agreement or the Credit Agreement), (iii) all L/C Obligations have been reduced to zero (or fully cash collateralized in a manner reasonably satisfactory to the applicable L/C Issuer and the Administrative Agent), and (iv) the L/C Issuers have no further obligation to issue Letters of Credit under the Credit Agreement, at which time the Collateral Agent shall execute and deliver to the Grantors, at the Grantors’ expense, all UCC termination statements, releases and similar documents that the Grantors shall reasonably request to evidence such termination; provided, however, that the Credit Agreement, this Agreement, and the Security Interest granted herein shall be reinstated if at any time payment, or any part thereof, of any Secured Obligation is rescinded or must otherwise be restored by any Credit Party upon the bankruptcy or reorganization of any Grantor. Any execution and delivery of termination statements, releases or other documents pursuant to this Section 8.14 shall be without recourse to, or warranty by, the Collateral Agent or any other Credit Party.

 

SECTION 8.15                                      Conflict. In the event of a conflict between this Agreement and the Pledge Agreement, the terms of the Pledge Agreement shall control with respect to the Pledged Collateral (as defined in the Pledge Agreement) and the terms of this Agreement shall control with respect to all other Collateral. In the event of a conflict between this Agreement and the Intellectual Property Security Agreement, the terms of the Intellectual Property Security Agreement shall control with respect to the IP Collateral (as defined in the Intellectual Property Security Agreement) and the terms of this Agreement shall control with respect to all other Collateral.

 

SECTION 8.16                                      Intercreditor Agreement. Notwithstanding anything herein to the contrary, the Lien and Security Interest granted to the Collateral Agent pursuant to this Agreement and the exercise of any right or remedy by the Collateral Agent hereunder are subject to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor Agreement and the terms of this Agreement, the terms of the Intercreditor Agreement shall govern and control.

 

[SIGNATURE PAGES FOLLOW]

 

31

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

 

	
GRANTORS:
    	
 
    	
BORROWER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE   CONTAINER STORE, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jodi Taylor
    
	
 
    	
 
    	
Name:
    	
Jodi   Taylor
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
GUARANTORS:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TCS   HOLDINGS, INC.,
    
	
 
    	
 
    	
as   Holdings
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jodi Taylor
    
	
 
    	
 
    	
Name:
    	
Jodi   Taylor
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TCS   GIFT CARD SERVICES, LLC,
    
	
 
    	
 
    	
as   Subsidiary Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jodi Taylor
    
	
 
    	
 
    	
Name:
    	
Jodi   Taylor
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TCS   INSTALLATION SERVICES, LLC,
    
	
 
    	
 
    	
as   Subsidiary Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Jodi Taylor
    
	
 
    	
 
    	
Name:
    	
Jodi   Taylor
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    

 

SIGNATURE PAGE

SECURITY AGREEMENT—THE CONTAINER STORE, INC.- ABL

 

 

	
COLLATERAL AGENT:
    	
 
    	
JPMORGAN   CHASE BANK, N.A.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Andrew Ray
    
	
 
    	
 
    	
Name:   
    	
Andrew   Ray
    
	
 
    	
 
    	
Title:
    	
Authorized   Officer
    

 

SIGNATURE PAGE

SECURITY AGREEMENT—THE CONTAINER STORE, INC.- ABL

 

 

SCHEDULE I

 

Guarantors

 

TCS Holdings, Inc.

 

TCS Gift Card Services, LLC

 

TCS Installation Services, LLC

 

 

SCHEDULE 3.05

 

Bailees; Warehousemen

 

None.

 

 

SCHEDULE 3.06

 

Consignments

 

None.

 

 

SCHEDULE 3.07

 

Commercial Tort Claims

 

None.

 

 

SCHEDULE 3.08

 

Instruments and Chattel Paper

 

(i)               Promissory Notes:

 

Promissory Note, dated April 6, 2012, in the original principal amount of $2,267,941.68 made by Elfa International AB (successor in interest to Elfa Group AB) for the benefit of The Container Store, Inc.  This note is set to mature on June 30, 2012 and as of February 25, 2012 the remaining principal balance is $409,489.44.

 

Promissory Note, dated April 6, 2012, in the original principal amount of $712,500 made by Elfa International AB (successor in interest to Elfa Group AB) for the benefit of The Container Store, Inc. This note is set to mature on June 30, 2012 and as of February 25, 2012 the remaining balance is $128,645.81.

 

(ii)              Chattel Paper:

 

None.

 

 

SCHEDULE 3.09

 

Deposit Accounts, Securities Accounts and Commodity Accounts

 

* Excluded Account

(z): zero balance account

(b): account used for benefit payments

(c): controlled disbursement account

 

	
Store#
    	
 
    	
Location or
    Account
    Name
    	
 
    	
Bank
    	
 
    	
Bank Acct #
    	
 
    	
Bank Acct ABA #
    	
 
    	
Cash/GL
   Acct #
    	
 
    	
City
    	
 
    	
State
    	
 
    
	
Store Accounts
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
19005
    	
 
    	
AUS
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Austin
    	
 
    	
TX
    	
 
    
	
19006
    	
 
    	
SAN
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
San Antonio
    	
 
    	
TX
    	
 
    
	
19007
    	
 
    	
HOU
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Houston
    	
 
    	
TX
    	
 
    
	
19008
    	
 
    	
FTW
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Fort Worth
    	
 
    	
TX
    	
 
    
	
19010
    	
 
    	
BUC
    	
 
    	
Wells Fargo
    	
 
    	
*4945361673 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Atlanta
    	
 
    	
GA
    	
 
    
	
19011
    	
 
    	
TYC
    	
 
    	
Wells Fargo
    	
 
    	
*4945361681 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Vienna
    	
 
    	
VA
    	
 
    
	
19012
    	
 
    	
OAB
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1032382 (z)
    	
 
    	
71000013
    	
 
    	
1055
    	
 
    	
Oak Brook
    	
 
    	
IL
    	
 
    
	
19013
    	
 
    	
ROC
    	
 
    	
Wells Fargo
    	
 
    	
*4945361699 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Rockville
    	
 
    	
MD
    	
 
    
	
19014
    	
 
    	
SCH
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1032382 (z)
    	
 
    	
71000013
    	
 
    	
1055
    	
 
    	
Schaumburg
    	
 
    	
IL
    	
 
    
	
19015
    	
 
    	
NOR
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1032382 (z)
    	
 
    	
71000013
    	
 
    	
1055
    	
 
    	
Northbrook
    	
 
    	
IL
    	
 
    
	
19016
    	
 
    	
CSD
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Coppell
    	
 
    	
TX
    	
 
    
	
19017
    	
 
    	
SOC
    	
 
    	
Wells Fargo
    	
 
    	
*4945361707 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Costa Mesa
    	
 
    	
CA
    	
 
    
	
19018
    	
 
    	
PKM
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*192647848 (z)
    	
 
    	
102001017
    	
 
    	
1065
    	
 
    	
Denver
    	
 
    	
CO
    	
 
    
	
19019
    	
 
    	
PER
    	
 
    	
Wells Fargo
    	
 
    	
*4945361715 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Atlanta
    	
 
    	
GA
    	
 
    
	
19020
    	
 
    	
CHI
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1032382 (z)
    	
 
    	
71000013
    	
 
    	
1055
    	
 
    	
Chicago
    	
 
    	
IL
    	
 
    
	
19021
    	
 
    	
SDG
    	
 
    	
Wells Fargo
    	
 
    	
*4945361723 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
San Diego
    	
 
    	
CA
    	
 
    

 

 

	
Store#
    	
 
    	
Location or
    Account
    Name
    	
 
    	
Bank
    	
 
    	
Bank Acct #
    	
 
    	
Bank Acct ABA #
    	
 
    	
Cash/GL
   Acct #
    	
 
    	
City
    	
 
    	
State
    	
 
    
	
19022
    	
 
    	
NPK
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
19023
    	
 
    	
GAL
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
19024
    	
 
    	
MIA
    	
 
    	
Wells Fargo
    	
 
    	
*495361731 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Miami
    	
 
    	
FL
    	
 
    
	
19025
    	
 
    	
CHP
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Houston
    	
 
    	
TX
    	
 
    
	
19026
    	
 
    	
WHP
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*304179531 (z)
    	
 
    	
21000021
    	
 
    	
1082
    	
 
    	
White Plains
    	
 
    	
NY
    	
 
    
	
19027
    	
 
    	
SLK
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Southlake
    	
 
    	
TX
    	
 
    
	
19028
    	
 
    	
COL
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*629608787 (z)
    	
 
    	
44000037
    	
 
    	
1090
    	
 
    	
Columbus
    	
 
    	
OH
    	
 
    
	
19029
    	
 
    	
WAC
    	
 
    	
Wells Fargo
    	
 
    	
*4945361749 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Walnut Creek
    	
 
    	
CA
    	
 
    
	
19030
    	
 
    	
AVA
    	
 
    	
Wells Fargo
    	
 
    	
*4945361756 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Arlington
    	
 
    	
VA
    	
 
    
	
19031
    	
 
    	
COM
    	
 
    	
Wells Fargo
    	
 
    	
*4945361764 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Corte Madera
    	
 
    	
CA
    	
 
    
	
19032
    	
 
    	
PAR
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*304179531 (z)
    	
 
    	
21000021
    	
 
    	
1082
    	
 
    	
Paramus
    	
 
    	
NJ
    	
 
    
	
19033
    	
 
    	
SFO
    	
 
    	
Wells Fargo
    	
 
    	
*4945361772 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
San Francisco
    	
 
    	
CA
    	
 
    
	
19034
    	
 
    	
SJO
    	
 
    	
Wells Fargo
    	
 
    	
*4945361780 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
San Jose
    	
 
    	
CA
    	
 
    
	
19035
    	
 
    	
6AV
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*304179531 (z)
    	
 
    	
21000021
    	
 
    	
1082
    	
 
    	
New York
    	
 
    	
NY
    	
 
    
	
19036
    	
 
    	
WDC
    	
 
    	
Wells Fargo
    	
 
    	
*4945361798 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Washington
    	
 
    	
DC
    	
 
    
	
19037
    	
 
    	
PAS
    	
 
    	
Wells Fargo
    	
 
    	
*4945361806 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Pasadena
    	
 
    	
CA
    	
 
    
	
19038
    	
 
    	
CHH
    	
 
    	
Wells Fargo
    	
 
    	
*4945361814 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Chestnut Hill
    	
 
    	
MA
    	
 
    
	
19039
    	
 
    	
NAT
    	
 
    	
Wells Fargo
    	
 
    	
*4945361822 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Natick
    	
 
    	
MA
    	
 
    
	
19040
    	
 
    	
POR
    	
 
    	
Wells Fargo
    	
 
    	
*4945361830 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Tigard
    	
 
    	
OR
    	
 
    
	
19041
    	
 
    	
BEL
    	
 
    	
Wells Fargo
    	
 
    	
*4945361848 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Bellevue
    	
 
    	
WA
    	
 
    
	
19042
    	
 
    	
LEX
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*304179531 (z)
    	
 
    	
21000021
    	
 
    	
1082
    	
 
    	
New York
    	
 
    	
NY
    	
 
    
	
19043
    	
 
    	
CEN
    	
 
    	
Wells Fargo
    	
 
    	
*4945361855 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Los Angeles
    	
 
    	
CA
    	
 
    
	
19044
    	
 
    	
STL
    	
 
    	
Wells Fargo
    	
 
    	
*4945361863 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
St. Louis
    	
 
    	
MO
    	
 
    
	
19045
    	
 
    	
CCR
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*192647848 (z)
    	
 
    	
102001017
    	
 
    	
1065
    	
 
    	
Denver
    	
 
    	
CO
    	
 
    
	
19046
    	
 
    	
CHL
    	
 
    	
Wells Fargo
    	
 
    	
*4945361871 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Charlotte
    	
 
    	
NC
    	
 
    

 

 

	
Store#
    	
 
    	
Location or
    Account
    Name
    	
 
    	
Bank
    	
 
    	
Bank Acct #
    	
 
    	
Bank Acct ABA #
    	
 
    	
Cash/GL
   Acct #
    	
 
    	
City
    	
 
    	
State
    	
 
    
	
19047
    	
 
    	
LTR
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Little Rock
    	
 
    	
AR
    	
 
    
	
19048
    	
 
    	
SCT
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*192647848 (z)
    	
 
    	
102001017
    	
 
    	
1065
    	
 
    	
Scottsdale
    	
 
    	
AZ
    	
 
    
	
19049
    	
 
    	
STN
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Frisco
    	
 
    	
TX
    	
 
    
	
19051
    	
 
    	
MIN
    	
 
    	
Wells Fargo
    	
 
    	
*4945361889 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Fairview
    	
 
    	
TX
    	
 
    
	
19052
    	
 
    	
CIN
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*629608787 (z)
    	
 
    	
44000037
    	
 
    	
1090
    	
 
    	
Cinncinatti
    	
 
    	
OH
    	
 
    
	
19053
    	
 
    	
FLT
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*192647848 (z)
    	
 
    	
102001017
    	
 
    	
1065
    	
 
    	
Flat Iron
    	
 
    	
CO
    	
 
    
	
19054
    	
 
    	
HAL
    	
 
    	
Wells Fargo
    	
 
    	
*4945408763 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Hallandale
    	
 
    	
FL
    	
 
    
	
19055
    	
 
    	
RAL
    	
 
    	
Wells Fargo
    	
 
    	
*4947120531 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Raleigh
    	
 
    	
NC
    	
 
    
	
19056
    	
 
    	
IND
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
*1032382 (z)
    	
 
    	
071000013
    	
 
    	
1055
    	
 
    	
Indianapolis
    	
 
    	
IN
    	
 
    
	
19057
    	
 
    	
CHR
    	
 
    	
Wells Fargo
    	
 
    	
*4948908702 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Charlotte
    	
 
    	
NC
    	
 
    
	
19058
    	
 
    	
NSH
    	
 
    	
Wells Fargo
    	
 
    	
*4947417432 (z)
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Nashville
    	
 
    	
TN
    	
 
    
	
19059
    	
 
    	
WDL
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
The Woodlands
    	
 
    	
TX
    	
 
    
	
19060
    	
 
    	
ATX
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
*1588849875 (z)
    	
 
    	
111000614
    	
 
    	
1075
    	
 
    	
Arlington
    	
 
    	
TX
    	
 
    
	
Main Operating  Accounts
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TCS Master Acct
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
1588849834
    	
 
    	
111000614
    	
 
    	
1025
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
Cash Disb
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*9319960630 (z), (c)
    	
 
    	
111300880
    	
 
    	
1026
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
Payroll
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*9319960622 (z), (c)
    	
 
    	
111000614
    	
 
    	
1110
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
Amex
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*645589250 (z)
    	
 
    	
111000614
    	
 
    	
1022
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
V/MC
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*645589268 (z)
    	
 
    	
111000614
    	
 
    	
1087
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
DSCV
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*1588849842 (z)
    	
 
    	
111000614
    	
 
    	
1085
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
GPA Flex
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*638476341 (z), (b)
    	
 
    	
111000614
    	
 
    	
1140
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
GPA Health Bene
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*638476358 (z), (b)
    	
 
    	
111000614
    	
 
    	
1145
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
TCS ACH Wire
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*734228026 (z)
    	
 
    	
111000614
    	
 
    	
1027
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    

 

 

	
Store#
    	
 
    	
Location or
   Account
   Name
    	
 
    	
Bank
    	
 
    	
Bank Acct #
    	
 
    	
Bank Acct ABA #
    	
 
    	
Cash/GL
   Acct #
    	
 
    	
City
    	
 
    	
State
    	
 
    
	
 
    	
 
    	
Depository Master
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
734228018
    	
 
    	
124001545
    	
 
    	
1028
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
Depository Master
    	
 
    	
Wells Fargo
    	
 
    	
4121764674
    	
 
    	
121000248
    	
 
    	
1098
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
Pcard
    	
 
    	
Wells Fargo
    	
 
    	
4000045914
    	
 
    	
121000248
    	
 
    	
1095
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
TCS Gift Card
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
663001261
    	
 
    	
111000614
    	
 
    	
1094
    	
 
    	
Dallas
    	
 
    	
TX
    	
 
    
	
 
    	
 
    	
PT Insurance
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*826080111 (z), (b)
    	
 
    	
520101023
    	
 
    	
1146
    	
 
    	
Dallas
    	
 
    	
Tx
    	
 
    
	
 
    	
 
    	
TCS GiftCo
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
918033705
    	
 
    	
111000614
    	
 
    	
1093
    	
 
    	
Dallas
    	
 
    	
Tx
    	
 
    
	
 
    	
 
    	
TCS Installation Payroll
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*428297456 (z), (c)
    	
 
    	
111000614
    	
 
    	
1111
    	
 
    	
Dallas
    	
 
    	
Tx
    	
 
    
	
 
    	
 
    	
TCS Installation Master
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
428297399
    	
 
    	
111000614
    	
 
    	
1112
    	
 
    	
Dallas
    	
 
    	
Tx
    	
 
    
	
 
    	
 
    	
SF HRA account
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
*790198485 (z), (b)
    	
 
    	
111000614
    	
 
    	
1147
    	
 
    	
Dallas
    	
 
    	
Tx
    	
 
    

 

	
Store#
    	
 
    	
Location
    	
 
    	
Bank
    	
 
    	
Bank Acct
   ABA #
    	
 
    	
Amex Merch
   #
    	
 
    	
AMEX Bank
   Acct #
    	
 
    	
AMEX
   Cash/GL
   Acct #
    	
 
    	
Discover Merch #
    	
 
    	
Discover Bank
   Acct #
    	
 
    	
Discover
   Cash/GL
   Acct #
    	
 
    	
Visa/MC
   Merch #
    	
 
    	
VMC
   Bank
   Acct #
    	
 
    	
VMC
   Cash/
   GL
   Acct #
    	
 
    	
Debit
   Cash/GL
   Acct #
    	
 
    
	
 
    	
 
    	
DFW (CAP ACCOUNTS)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
142 488 951 7
    	
 
    	
 
    	
 
    	
 
    	
 
    	
6011 0170 1743 658
    	
 
    	
 
    	
 
    	
 
    	
 
    	
654467
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5
    	
 
    	
AUS
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 497 447 5
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0179 9096 266
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
687897
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
6
    	
 
    	
SAN
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 483 815 9
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1743 799
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688374
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
7
    	
 
    	
HOU
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 441 613 9
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1746 727
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688382
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
8
    	
 
    	
FTW
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 558 006 5
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1746 743
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688390
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
9
    	
 
    	
CCK
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 420 958 3
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1746 768
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688754
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    

 

 

	
Store#
    	
 
    	
Location
    	
 
    	
Bank
    	
 
    	
Bank Acct
   ABA #
    	
 
    	
Amex Merch
   #
    	
 
    	
AMEX Bank
   Acct #
    	
 
    	
AMEX
   Cash/GL
   Acct #
    	
 
    	
Discover Merch #
    	
 
    	
Discover Bank
   Acct #
    	
 
    	
Discover
   Cash/GL
   Acct #
    	
 
    	
Visa/MC
   Merch #
    	
 
    	
VMC
   Bank
   Acct #
    	
 
    	
VMC
   Cash/
   GL
   Acct #
    	
 
    	
Debit
   Cash/GL
   Acct #
    	
 
    
	
10
    	
 
    	
BUC
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
410 443 271 1
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1746 784
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688762
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
11
    	
 
    	
TYC
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
445 446 908 1
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1983 213
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688796
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
12
    	
 
    	
OAB
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
071000013
    	
 
    	
312 470 141 8
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2523 265
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688804
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
13
    	
 
    	
ROC
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
219 480 234 4
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2615 517
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688812
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
14
    	
 
    	
SCH
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
071000013
    	
 
    	
312 473 309 8
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2831 676
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688820
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
15
    	
 
    	
NOR
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
071000013
    	
 
    	
312 473 308 0
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2831 684
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
688879
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
16
    	
 
    	
CSD
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 473 529 8
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2790 807
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
687905
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
 
    	
 
    
	
17
    	
 
    	
SOC
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
504 519 211 9
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0179 9088 172
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689042
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
18
    	
 
    	
DEN
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
102001017
    	
 
    	
105 472 849 8
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 4351 350
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689059
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
19
    	
 
    	
PER
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
410 474 030 3
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 4249 265
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689083
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
20
    	
 
    	
CHI
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
071000013
    	
 
    	
312 308 971 6
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 4661 485
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689091
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
21
    	
 
    	
SDG
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
504 346 657 2
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 4683 216
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689109
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
22
    	
 
    	
NPK
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 328 125 2
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 4845 351
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689315
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
23
    	
 
    	
GAL
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 345 014 7
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5247 946
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689356
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    

 

 

	
Store#
    	
 
    	
Location
    	
 
    	
Bank
    	
 
    	
Bank Acct
   ABA #
    	
 
    	
Amex Merch
   #
    	
 
    	
AMEX Bank
   Acct #
    	
 
    	
AMEX
   Cash/GL
   Acct #
    	
 
    	
Discover Merch #
    	
 
    	
Discover Bank
   Acct #
    	
 
    	
Discover
   Cash/GL
   Acct #
    	
 
    	
Visa/MC
   Merch #
    	
 
    	
VMC
   Bank
   Acct #
    	
 
    	
VMC
   Cash/
   GL
   Acct #
    	
 
    	
Debit
   Cash/GL
   Acct #
    	
 
    
	
24
    	
 
    	
MIA
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
409 557 231 9
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5324 638
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689364
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
25
    	
 
    	
CHP
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 507 785 6
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0173 8494 838
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689596
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
26
    	
 
    	
WHP
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
021000021
    	
 
    	
631 002 047 4
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5001 301
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689604
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
27
    	
 
    	
SLK
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 049 336 3
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0178 5061 068
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689687
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
28
    	
 
    	
COL
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
334 016 213 0
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0171 5478 523
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689695
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
29
    	
 
    	
WAC
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
504 197 740 6
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0177 5854 852
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689703
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
30
    	
 
    	
AVA
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
445 017 742 3
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0177 5854 845
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689729
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
31
    	
 
    	
COM
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
504 605 014 2
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 9933 111
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689737
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
32
    	
 
    	
PAR
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
021000021
    	
 
    	
229 033 605 6
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 9955 445
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689745
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
33
    	
 
    	
SFO
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
504 826 366 9
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 9860 330
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689752
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
34
    	
 
    	
SJO
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
504 902 175 1
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0178 5060 342
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689885
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
35
    	
 
    	
6AV
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
021000021
    	
 
    	
631 178 122 3
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0178 5060 359
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
848994
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
36
    	
 
    	
WDC
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
408 006 912 3
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0179 9700 362
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
70681
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
37
    	
 
    	
PAS
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
104 009 203 3
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1900 373
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
78495
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
38
    	
 
    	
CHH
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
220 055 264 4
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1900 381
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
80023
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    

 

 

	
Store#
    	
 
    	
Location
    	
 
    	
Bank
    	
 
    	
Bank Acct
   ABA #
    	
 
    	
Amex Merch
   #
    	
 
    	
AMEX Bank
   Acct #
    	
 
    	
AMEX

Cash/GL
   Acct #
    	
 
    	
Discover Merch #
    	
 
    	
Discover Bank
   Acct #
    	
 
    	
Discover
   Cash/GL
   Acct #
    	
 
    	
Visa/MC
   Merch #
    	
 
    	
VMC
   Bank
   Acct #
    	
 
    	
VMC
   Cash/
   GL
   Acct #
    	
 
    	
Debit
   Cash/GL
   Acct #
    	
 
    
	
39
    	
 
    	
NAT
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
220 063 909 4
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2024 678
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
89535
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
40
    	
 
    	
POR
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
536 044 064 8
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2073 477
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
91812
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
41
    	
 
    	
BEL
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
546 069 085 2
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2174 101
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
103301
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
42
    	
 
    	
LEX
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
021000021
    	
 
    	
631 367 074 7
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2174 085
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
103287
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
43
    	
 
    	
CEN
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
104 216 119 0
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 2612 258
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
119341
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
45
    	
 
    	
CCR
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
102001017
    	
 
    	
1051140010
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1743 658
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
168050
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
899
    	
 
    	
WEB
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 008 695 1
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0179 9708 993
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
687913
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
 
    	
 
    
	
99
    	
 
    	
DFW
    	
 
    	
JP Morgan Chase Bank, N.A.
    	
 
    	
111000614
    	
 
    	
142 488 937 6
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 1743 674
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
689877
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
 
    	
 
    
	
46
    	
 
    	
CHL
    	
 
    	
Wells Fargo
    	
 
    	
121000248
    	
 
    	
229 171 495 4
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5369 781
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
177483
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
47
    	
 
    	
LTR
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
111000614
    	
 
    	
103 039 307 8
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5391 512
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
10712
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
48
    	
 
    	
SCT
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
102001017
    	
 
    	
502 144 950 9
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5440 327
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
15316
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
49
    	
 
    	
STN
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
111000614
    	
 
    	
142 897 580 9
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5428 074
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
7185
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
50
    	
 
    	
FVW
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
111000614
    	
 
    	
2420241879
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5547 485
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
62871
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
51
    	
 
    	
MIN
    	
 
    	
Wells Fargo
    	
 
    	
121000248
    	
 
    	
322 077 844 3
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5452 249
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
17983
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
52
    	
 
    	
CIN
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
111000614
    	
 
    	
334 182 253 4
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5452 231
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
17984
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
53
    	
 
    	
FLT
    	
 
    	
JP Morgan
    	
 
    	
102001017
    	
 
    	
105 143 011 4
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5487 988
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
23695
    	
 
    	
6455892
    	
 
    	
1210
    	
 
    	
1235
    	
 
    

 

 

	
Store#
    	
 
    	
Location
    	
 
    	
Bank
    	
 
    	
Bank Acct
   ABA #
    	
 
    	
Amex Merch
   #
    	
 
    	
AMEX Bank
   Acct #
    	
 
    	
AMEX
   Cash/GL
   Acct #
    	
 
    	
Discover Merch #
    	
 
    	
Discover Bank
   Acct #
    	
 
    	
Discover
   Cash/GL
   Acct #
    	
 
    	
Visa/MC
   Merch #
    	
 
    	
VMC
   Bank
   Acct #
    	
 
    	
VMC
   Cash/
   GL
   Acct #
    	
 
    	
Debit
   Cash/GL
   Acct #
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Chase Bank, N.A
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
68
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
54
    	
 
    	
HAL
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
111000614
    	
 
    	
4099999518
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5540 951
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
59512
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
55
    	
 
    	
RAL
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
111000614
    	
 
    	
4321939696
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5560 454
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
68693
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
56
    	
 
    	
IND
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
071000013
    	
 
    	
313 126 232 1
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5606 695
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
196660
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
57
    	
 
    	
CHR
    	
 
    	
Wells Fargo
    	
 
    	
121000248
    	
 
    	
432 218 922 6
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5606 703
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
196661
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
58
    	
 
    	
NSH
    	
 
    	
Wells Fargo
    	
 
    	
121000248
    	
 
    	
441 164 726 6
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5608 436
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
199225
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
59
    	
 
    	
WDL
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
111000614
    	
 
    	
242 160 126 1
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5608 444
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
201248
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    
	
60
    	
 
    	
ATX
    	
 
    	
JP Morgan Chase Bank, N.A
    	
 
    	
111000614
    	
 
    	
242 190 200 8
    	
 
    	
645589250
    	
 
    	
1211
    	
 
    	
6011 0170 5635 249
    	
 
    	
1588849842
    	
 
    	
1212
    	
 
    	
204400
    	
 
    	
645589268
    	
 
    	
1210
    	
 
    	
1235
    	
 
    

 

 

SCHEDULE 3.10

 

Electronic Chattel Paper and Transferable Records

 

None.

 

 

EXHIBIT A

 

Form of Joinder Agreement

 

[Name of New Grantor]

[Address of New Grantor]

 

[Date]

 

Ladies and Gentlemen:

 

Reference is made to (i) the ABL Facility Security Agreement, dated as of April 6, 2012 (as amended, modified, supplemented or restated and in effect from time to time, the “ABL Facility Security Agreement”), by and among The Container Store, Inc., a Texas corporation (the “Borrower”), each of the Persons listed on Schedule I therein (each such Person, individually, a “Guarantor” and, collectively, the “Guarantors”) (the Borrower and the Guarantors are hereinafter referred to, individually, as a “Grantor” and, collectively, as the “Grantors”), and JPMorgan Chase Bank, N.A., a national banking association, as collateral agent (in such capacity, the “Collateral Agent”) for its own benefit and the benefit of the other Credit Parties and (ii) the ABL Facility Pledge Agreement, dated as of April 6, 2012 (as amended, modified, supplemented or restated and in effect from time to time, the “Term Facility Pledge Agreement”, together with the Term Facility Security Agreement, the “Security Agreements”), by and among the Borrower, the other Grantors, and the Collateral Agent for its own benefit and the benefit of the other Credit Parties. All capitalized terms used but not defined herein shall have the meanings set forth in the Security Agreements.

 

This Joinder Agreement supplements the Security Agreements and is delivered by the undersigned, [                         ] (the “New Grantor”), pursuant to Section 4.15 of the ABL Facility Security Agreement. The New Grantor hereby agrees to be bound as a Guarantor and as a Grantor party to the Security Agreements by all of the terms, covenants and conditions set forth in the Security Agreements to the same extent that it would have been bound if it had been a signatory to the Security Agreements on the date of the Security Agreements. Without limiting the generality of the foregoing, the New Grantor hereby grants and pledges to the Collateral Agent, its successors and permitted assigns, for its own benefit and the benefit of the other Credit Parties, as collateral security for the full, prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations, the Pledged Collateral, a Lien on and security interest in, all of its right, title and interest in, to and under the Collateral and expressly assumes all obligations and liabilities of a Guarantor and Grantor under the Security Agreements. The New Grantor hereby makes each of the representations and warranties and agrees to each of the covenants applicable to the Grantors contained in the Security Agreements.

 

 

Annexed hereto are supplements to each of the schedules to the Security Agreements with respect to the New Grantor. Such supplements shall be deemed to be part of the Security Agreements.

 

This Joinder Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all such counterparts together shall constitute one and the same agreement.

 

THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

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

 

	
 
    	
[NEW GRANTOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
AGREED   TO AND ACCEPTED:
    	
 
    
	
 
    	
 
    
	
JPMORGAN   CHASE BANK, N.A., 
    	
 
    
	
as   Collateral Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

[Schedules to the ABL Security Agreement and ABL Pledge Agreement to be attached]Exhibit 10.16

 

SEK 312,500,000

 

REVOLVING CREDIT AND TERM LOAN FACILITY

 

AGREEMENT

 

between

 

ELFA INTERNATIONAL AB

as

Borrower

 

and

 

TJUSTBYGDENS SPARBANK AB

as

Bank

 

dated April 27th, 2009

 

 

	
TABLE OF CONTENTS
    
	
PREAMBLE
    
	
1.
    	
 
    	
DEFINITIONS
    	
 
    	
3
    
	
2.
    	
 
    	
THE FACILITY
    	
 
    	
6
    
	
3.
    	
 
    	
CONDITIONS FOR UTILISATION, etc.
    	
 
    	
7
    
	
4.
    	
 
    	
UTILISATION REQUESTS, etc.
    	
 
    	
8
    
	
5.
    	
 
    	
MARKET DISRUPTION
    	
 
    	
9
    
	
6.
    	
 
    	
PREPAYMENT AND CANCELLATION
    	
 
    	
9
    
	
7.
    	
 
    	
INTEREST
    	
 
    	
10
    
	
8.
    	
 
    	
THE BORROWER’S PAYMENT OBLIGATIONS
    	
 
    	
10
    
	
9.
    	
 
    	
COSTS
    	
 
    	
11
    
	
10.
    	
 
    	
FACILITY FEE AND CREDIT FEE
    	
 
    	
11
    
	
11.
    	
 
    	
REPRESENTATIONS
    	
 
    	
11
    
	
12.
    	
 
    	
UNDERTAKINGS
    	
 
    	
13
    
	
13.
    	
 
    	
EVENTS OF DEFAULT
    	
 
    	
15
    
	
14.
    	
 
    	
CHANGE IN CIRCUMSTANCES AND INCREASED COSTS, etc.
    	
 
    	
16
    
	
15.
    	
 
    	
SET OFF
    	
 
    	
17
    
	
16.
    	
 
    	
ASSIGNMENT
    	
 
    	
17
    
	
17.
    	
 
    	
NOTICES, etc.
    	
 
    	
18
    
	
18.
    	
 
    	
LIMITATION OF THE BANK’S LIABILITY
    	
 
    	
19
    
	
19.
    	
 
    	
AMENDMENTS
    	
 
    	
19
    
	
20.
    	
 
    	
TERM
    	
 
    	
19
    
	
21.
    	
 
    	
GOVERNING LAW AND JURISDICTION
    	
 
    	
19
    
	
Appendix 1
    	
21
    
	
Appendix 2
    	
22
    

 

2

 

PREAMBLE

 

Tjustbygdens Sparbank AB, org no. 516401-0224, hereinafter referred to as the “Bank”, and Elfa International AB, org no. 556516-2012, hereinafter referred to as the “Borrower”, have this day due to the executed down-stream merger between the Borrower (surviving entity) and Elfa Group AB, org no. 556568-8875, agreed to replace the Loan Agreement dated August 13th 2007. Thus the Bank and the Borrower have this day entered into the following

 

REVOLVING CREDIT AND TERM LOAN FACILITY AGREEMENT

 

1.                                      DEFINITIONS

 

In this Agreement, the following terms and expressions shall have the meaning set forth below:

 

	
“Banking   Day”
    	
 
    	
means   a day (other than a Saturday, Sunday or holiday) on which banks are open for   general business in Stockholm for the kind of transactions contemplated by   this Agreement;
    
	
 
    	
 
    	
 
    
	
“Default”
    	
 
    	
means   an Event of Default or any event or circumstance specified in Clause 13 which   would (with the expiry of a grace period, the giving of notice, the making of   any determination under this Agreement or any combination of any of the   foregoing) be an Event of Default; 
    
	
 
    	
 
    	
 
    
	
“Equity   Ratio”
    	
 
    	
means   the Shareholders’ Equity divided by the Group’s total assets provided that   generally accepted accounting principles are used. For the purpose of the   calculation any write-down (not amortization) of goodwill will be added back   to the balance of both equity and goodwill; 
    
	
 
    	
 
    	
 
    
	
“EBITDA”
    	
 
    	
means   operating profit before depreciation provided that generally accepted   accounting principles are used. For the purpose of the calculation any   deduction for non-recurring and unusual charges and expenses will be added   back; 
    
	
 
    	
 
    	
 
    
	
“Event   of Default”
    	
 
    	
means   event or circumstance specified as such in Clause 13; 
    
	
 
    	
 
    	
 
    
	
“Facility”
    	
 
    	
means   the revolving credit and term loan facility provided by the Bank pursuant to   this Agreement divided into 
    

 

3

 

	
 
    	
 
    	
Facility   A and Facility B;
    
	
 
    	
 
    	
 
    
	
“Facility   A”
    	
 
    	
means   the term loan facility in the aggregate amount of SEK 137,500,000 (originally   SEK 175,000,000 in loan agreement dated August 13th 2007) made available under this Agreement as   described in Clause 2; 
    
	
 
    	
 
    	
 
    
	
“Facility   A Loan”
    	
 
    	
means   the loan in the aggregate amount of SEK 137,500,000 made or to be made under   Facility A or the principal amount outstanding for the time being of that loan;   
    
	
 
    	
 
    	
 
    
	
“Facility   Amount”
    	
 
    	
means   SEK 312,500,000 (originally SEK 350,000,000 in loan agreement dated   August 13th 2007) or such lower amount as may follow by   the provisions of this Agreement; 
    
	
 
    	
 
    	
 
    
	
“Facility   B”
    	
 
    	
means   the revolving credit facility in the aggregate amount of SEK 175,000,000 made   available under this Agreement as described in Clause 2; 
    
	
 
    	
 
    	
 
    
	
“Facility   B Loan”
    	
 
    	
means   each separate amount of principal disbursed to the Borrower under this   Agreement as a Facility B Loan or the principal amount outstanding for the   time being of each such loan; 
    
	
 
    	
 
    	
 
    
	
“Facility   Period”
    	
 
    	
means   unless otherwise prescribed by the provisions of this agreement, the period   commencing with the entry into force of this Agreement pursuant to Clause 3.1   up to and including August 30th 2014; 
    
	
 
    	
 
    	
 
    
	
“Loan”
    	
 
    	
means   each of the Facility A Loan and any Facility B Loan; 
    
	
 
    	
 
    	
 
    
	
“Financial   Indebtedness”
    	
 
    	
means   indebtedness relating to: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a) loans that have been raised or credit   facilities that have been utilised; 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b) issued convertible debentures,   debentures, bonds, notes or similar instruments; 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(c) rental, purchase, or leasing agreements   which, according to generally accepted accounting principles, are to be   capitalized and regarded as financial leasing; 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(d) assigned claims, unless such assignments   have taken place without the assignee being entitled to make any claims   against the assignor; 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(e) derivatives transactions, however, when   the amount of such indebtedness shall be calculated, only the 
    

 

4

 

	
 
    	
 
    	
current   market value shall be taken into account; 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(f) counter-guarantees or other payment   undertakings relating to guarantees, letters of credit and other similar   instruments or documents which have been issued or accepted by a bank or   other financial institution; 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(g) other legal transactions, including   futures contracts which, from a commercial perspective, are to be equated   with indebtedness; and 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(h) obligations pursuant to guarantees or   indemnity letters obligations which have been issued as security for any indebtedness   as referred to in sub clause (a) - (g) above; 
    
	
 
    	
 
    	
 
    
	
“Group”
    	
 
    	
means   the Borrower and any of its Subsidiaries from time to time; 
    
	
 
    	
 
    	
 
    
	
“Interest   Determination Day”
    	
 
    	
means   the day which occurs two Banking Days prior to the commencement of any   Interest Period or Loan Period, as the case may be; 
    
	
 
    	
 
    	
 
    
	
“Interest   Period”
    	
 
    	
means   as regards Facility B Loan seven (7) days; or such other period as   agreed between the Bank and the Borrower; 
    
	
 
    	
 
    	
 
    
	
“Loan   Period”
    	
 
    	
means   as regards each Facility A Loan, the period of 3, 6, or 12 months (or such   other period as agreed between the Bank and the Borrower) commencing on the   Utilisation Date, provided however that under no circumstances shall the Loan   Period for a Facility A Loan expire after the Termination Date for Facility   A; 
    
	
 
    	
 
    	
 
    
	
“Margin”
    	
 
    	
means   1,775 percent units; 
    
	
 
    	
 
    	
 
    
	
“Market   Disruption Event”
    	
 
    	
means   that at or about 11.00 a.m. on an Interest Determination Date for the   relevant Interest Period or Loan Period, as the case may be, the Bank’s cost   of obtaining matching deposits in the market would be in excess of STIBOR and   the reason for this is not the Bank’s own credit standing; 
    
	
 
    	
 
    	
 
    
	
“Net   Debt”
    	
 
    	
means   the sum of interest-bearing debts less cash in hand;
    
	
 
    	
 
    	
 
    
	
“Repayment   Date”
    	
 
    	
means   in respect of the Facility A Loan, the Termination Date for the Facility A   Loan or any other date that may 
    

 

5

 

	
 
    	
 
    	
follow   by the provisions of this Agreement and in respect of each Facility B Loan,   the last Banking Day in each Interest Period or any other date that may   follow by the provisions of this Agreement; 
    
	
 
    	
 
    	
 
    
	
“Shareholders   Equity”
    	
 
    	
means   the Group’s shareholders’ equity (including minority interest according to   Appendix 2 (2)), determined in accordance with generally accepted accounting   principles; 
    
	
 
    	
 
    	
 
    
	
“STIBOR”
    	
 
    	
means   the interest rate which is published on the “SIOR” page on the Reuters   information system (or through such other information system or on such other   page as replaces the aforesaid system or page) and which constitutes the   arithmetic mean of the interest rates which, at approximately 11.00 a.m.   on the Interest Determination Date in question, are published by banks on the   interbank market in Stockholm for a period equivalent to the Interest Period   in question; 
    
	
 
    	
 
    	
 
    
	
“Subsidiary”
    	
 
    	
means   a legal entity which is affiliated with a company as a subsidiary (Sw.   dotterbolag) as described in Chapter 1, 11 § of the Swedish Companies Act   (2005:551) (or in such other provision as may replace this provision); 
    
	
 
    	
 
    	
 
    
	
“Termination   Date”
    	
 
    	
means   
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 (a) in   respect of Facility A August 30th 2014; and 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 (b) in   respect of Facility B August 30th 2009. If the Borrower complies with the   agreed covenants and other general conditions the Facility B will automatically   be prolonged by one year on an annual basis; 
    
	
 
    	
 
    	
 
    
	
“Utilisation   Date”
    	
 
    	
means,   as regards each Loan, the Banking Day agreed with the Borrower on which the   Loan shall be disbursed in pursuant to Clause 4.2; 
    
	
 
    	
 
    	
 
    
	
“Utilisation   Request”
    	
 
    	
means   a notice substantially in the form set out in Appendix 1. 
    

 

2.                                      THE FACILITY

 

2.1                               Subject to the terms and conditions of this Agreement the Bank makes available to the Borrower a term loan in the aggregate amount of Facility A to be utilised by the drawing of one loan and a revolving credit facility in an aggregate amount of Facility B to be utilised by the drawing of loans.

 

6

 

Outstanding debt to the Bank assigned to the Loan Agreement dated August 13th 2007 shall be considered outstanding in this agreement.

 

2.2                               The Borrower shall apply all amounts borrowed by it under the Facility towards refinancing existing debt and financing working capital, machinery, equipment, real estate and acquisitions by the Borrower and its Subsidiaries. The Bank is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

 

3.                                      CONDITIONS FOR UTILISATION, etc.

 

3.1                               This Agreement shall enter into force upon execution by the parties. However, the Borrower shall not be entitled to deliver a Utilisation Request prior to the Bank having received the following documents:

 

(a)                                 a certified copy of the current certificate of registration;

 

(b)                                 a copy of the constitutional documents of the Borrower;

 

(c)                                  a copy of the board resolution confirming that the Borrower shall enter into this Agreement; and

 

(d)                                 Pledge agreements concerning agreed securities in form and substance satisfactory to the Bank

 

(e)                                  a letter of approval from The Container Store Inc., Dallas, USA, concerning this Agreement and concerning necessary changes in the Group’s pledges and other securities due to the executed merger between Elfa Group AB and Elfa International AB.

 

In the event of any change to the information set forth in the document specified under (a) above regarding the authorising of a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with this Agreement, the Borrower hereby undertakes to forthwith provide the Bank with a new document evidencing such changes. However, the Bank shall be entitled to rely upon the information contained in the original document until such time as the Bank has received the new document.

 

3.2                               The Bank’s disbursement of any Loan shall be conditional upon:

 

(a)                                 no Default has occurred and no circumstances are prevailing which constitute a right of termination for the Bank in accordance with Clauses 6.4, 13 or 14;

 

(b)                                 the aggregated amount of all Loans, following disbursement of the requested Loan, do not exceed neither the Facility Amount nor, following disbursement of a Facility A Loan, the aggregate amount of all

 

7

 

Facility A Loans does not exceed Facility A amount and nor, following disbursement of a Facility B Loan, the aggregate amount of all Facility B Loans does not exceed Facility B amount;

 

(c)                                  the terms and conditions set forth in Clause 4 having been met; and

 

(d)                                 a total of not more than six Loans will be outstanding under Facility B at the same time.

 

4.                                      UTILISATION REQUESTS, etc.

 

4.1                               The Borrower may utilise the Facility by sending Utilisation Requests by fax to the Bank marked to the attention of its department Företagsavdelningen, fax no. +46 490 815120 not later than 10.00 a.m. three Banking Days prior to the Utilisation Date.

 

4.2                               Each Utilisation Request shall show:

 

(a)                                 as regards a Loan to be disbursed under Facility A, the amount of the Loan which shall be a minimum amount of SEK 6,250,000 or integral multiples thereof;

 

(b)                                 the proposed Utilisation Date;

 

(c)                                  as regards the Facility B Loan, the proposed Interest Period and as regards a Facility A Loan, the proposed Loan Period; and

 

(d)                                 the account into which the Loan shall be disbursed.

 

Each Utilisation Request must be signed by the Borrower. The Borrower is responsible for ensuring that the officers of the Borrower who submit Utilisation Requests comply with any limitations on their authority to represent the Borrower.

 

4.3                               Each Utilisation Request shall be confirmed by the Bank sending a confirmation letter setting forth the specific terms and conditions by fax to the Borrower as soon as possible and not later than one Banking Day prior to the Utilisation Date. The Loan shall be governed by this Agreement and the specific terms and conditions contained in the confirmation without reference to this Agreement being required in the confirmation.

 

4.4                               In the event the last day of an Interest Period or a Loan Period falls on a day which is not a Banking Day, the Interest Period or Loan Period, as the case may be, shall be extended to the subsequent Banking Day, provided that such subsequent Banking Day does not fall in a new calendar month, in which case the last day of Interest Period or the Loan Period, as the case may be, shall fall instead on the immediately preceding Banking Day.

 

8

 

4.5                               Each Utilisation Request is irrevocable.

 

5.                                      MARKET DISRUPTION

 

If a Market Disruption Event occurs for any Interest Period or Loan Period, as the case may be, then the rate of interest for the Interest Period or Loan Period shall be the rate per annum which is the sum of:

 

(a)                                 the Margin; and

 

(b)                                 the rate expressed as a percentage rate per annum to be the cost to the Bank of funding the Loan from whatever source it may reasonably select.

 

6.                                      PREPAYMENT AND CANCELLATION

 

6.1                               The Borrower shall be entitled to prepay a Loan or part thereof, but if in part, by a minimum amount of SEK 6,250,000, prior to the Repayment Date if it gives the Bank not less than fifteen Banking Days prior written notice, provided that the Borrower indemnifies the Bank for any loss (for the avoidance of doubt save for the Margin) during the Loan Period resulting from any contracts where the interest rate has been fixed for that time period. After the Bank has received notice of prepayment of the Loan pursuant to the aforesaid, the Borrower shall be obliged to effect prepayment according to such notice.

 

6.2                               Any amount prepaid under Facility A may not be reborrowed.

 

6.3                               At any time during the Facility Period, the Borrower shall be entitled to cancel, in whole or in part, the undrawn part of the Facility B Amount in minimum amounts of SEK 10,000,000 or if less the unutilised amount of the Facility B Amount, subject to at least 10 days prior written notice to the Bank.

 

6.4                               If The Container Store Inc, Dallas, USA ceases to control the Borrower or any person or group of persons acting in concert gains control of the Borrower;

 

(a)                                 the Borrower shall promptly notify the Bank upon becoming aware of that event; and

 

(b)                                 the Bank shall be entitled to give notice of cancellation of its obligations under this Agreement and demand repayment of all Loans provided under this Agreement with accrued interest and other claims against the Borrower resulting from this Agreement, on the date which the Bank determines.

 

9

 

7.                                      INTEREST

 

7.1                               The rate of interest on each Loan for each Interest Period and for each Loan Period, as the case may be, is the percentage rate per annum which is the aggregate of the relevant STIBOR and the Margin.

 

7.2                               Interest will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days. Interest on the Facility B Loan will be calculated for the period from and including the first day in each Interest Period to the last day in such period. The first Interest Period shall start on the Utilisation Date and all other Interest Periods on the last day of its preceding Interest Period. Each Loan Period for a Facility A Loan shall start on the Utilisation Date and end on the Repayment Date.

 

7.3                               Accrued interest on the Facility B Loan shall be paid on the last day of each Interest Period (and, if the Interest Period is longer than six months, on the dates falling at six-monthly intervals after the first day of the Interest Period) and accrued interest on a Facility A Loan shall be paid on each Repayment Date (and if the Loan Period is longer than six months, on the each Banking Day falling at six monthly intervals after the first day of the Loan Period).

 

8.                                      THE BORROWER’S PAYMENT OBLIGATIONS

 

8.1                               The Borrower undertakes to repay the Facility A Loan by 22 equal consecutive quarterly instalments commencing on May 30th 2009 and to pay accrued interest on each Loan in accordance with the provisions of Clause 7.3. Payments shall be made into an account designated by the Bank in such time that the amount is freely available to the Bank not later than 11.00 a.m. on the due date for payment.

 

8.2                               If the Borrower fails to repay a Loan or interest thereon default interest shall accrue on the overdue amount from the due date up to the date of actual payment in full. Default interest shall be determined by the Bank and calculated as the higher of: (a) the interest rate which applied to the Loan in question during the Interest Period or Loan Period, as the case may be; or (b) the total of the Margin and the interest rate at which the Bank is able to refinance itself for the period(s) which the Bank determines, in both cases, with addition of two (2) percentage units.

 

8.3                               In the event of delay in payment of any due amounts pursuant to this Agreement other than those referred to in Clause 8.2 above, the Borrower shall pay default interest on the due amount from and including the due date for payment until full payment is made calculated on the total of the Margin and the interest rate at which the Bank may refinance itself on for period(s) which the Bank determines with addition of two (2) percentage units.

 

8.4                               Interest calculated pursuant to Clauses 8.2 and 8.3 shall be compounded after each refinancing period determined by the Bank.

 

10

 

8.5                               Any payment which is due to be made on a day that is not a Banking Day shall be made on the next Banking Day in the same calendar month (if there is one) or the preceding Banking Day (if there is not).

 

9.                                      COSTS

 

The Borrower shall indemnify the Bank on demand for any costs and expenses, including internal and external legal fees, in order to prove and enforce the Bank’s claims against the Borrower or any other person liable for payment thereof.

 

10.                               FACILITY FEE AND CREDIT FEE

 

The Borrower shall pay to the Bank;

 

(a)                                 an arrangement fee amounting to SEK 1,000,000. The fee is to be paid on the date of signing this Agreement.

 

(b)                                 a credit fee of 0,50% on unutilized credit at the end of each quarter related to Facility B Loan, starting January 1st 2009, billed in arrears for each quarter.

 

11.                               REPRESENTATIONS

 

11.1                        The Borrower represents and warrants to the Bank that as of the date of this Agreement:

 

(a)                                 It is a company, duly incorporated and validly existing under the law of its jurisdiction of incorporation;

 

(b)                                 it has full power and authority (corporate and other) to own its properties and other assets, to carry on its business as it is being conducted and to execute and deliver, and to perform all of its obligations under this Agreement;

 

(c)                                  it has the power to enter into, perform and deliver and has taken all necessary corporate action to authorise the execution, delivery and performance of this Agreement and the transactions contemplated by it;

 

(d)                                 the obligations expressed to be assumed by it in this Agreement are valid and legally binding obligations;

 

(e)                                  the entry into, execution, delivery and performance by it of, and the transactions contemplated by, this Agreement do not violate and will not conflict with in any respect any provisions of (a) any law or

 

11

 

regulation or any order or decree of any authority, agency or court binding on it or (b) any mortgage, contract, agreement or other undertaking or instrument to which it is a party or which is binding on it or any of its assets or (c) its constitutional documents;

 

(f)                                   no Event of Default or Potential Event of Default, (a) has occurred which is continuing or (b) might reasonably be expected to result from the delivery of an Utilisation Request;

 

(g)                                  all authorisations required in connection with the performance and validity of this Agreement have been obtained and are in full force and effect;

 

(h)                                 the utilisation of the Facility will not cause any borrowing, guarantee or other financial limits binding on it to be exceeded;

 

(i)                                     its payment obligations under this Agreement rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally;

 

(j)                                    no litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably be expected to have a material adverse effect have on the performance of its obligations under this Agreement and the transactions contemplated thereby have (to the best of its knowledge and belief) been started or threatened against it.

 

(k)                                 that it shall make all payments to be made by it without any tax deduction, unless a tax deduction is required by law and promptly upon becoming aware that it must make a tax deduction (i) notify the Bank, and (ii) increase the amount due from it to an amount which (after making any tax deduction) leaves an amount equal to the payment which would have been due if no tax deduction had been required;

 

(l)                                     under the law of its jurisdiction of incorporation it is not necessary that this Agreement be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to this Agreement or the transactions contemplated by this Agreement other than stamp duty in relation to issuance of new mortgage certificates (if any) as may be provided for any related security agreements ; and

 

(m)                             no encumbrance exists over all or any of the present or future revenues or assets of the Borrower except as permitted by Clause 12.2.

 

11.2                        The representations made in Clause 11.1 shall be deemed to be made and repeated by the Borrower on each Utilisation Date and on the first date of each Interest Period and each Loan Period, as the case may be, by reference

 

12

 

to the facts and circumstances then subsisting.

 

12.                               UNDERTAKINGS

 

12.1                        The Borrower undertakes:

 

(a)                                 to immediately inform the Bank of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence;

 

(b)                                 to immediately inform the Bank of major future changes to the Group’s business and operations as well as future acquisition or sale of any property which is of material significance;

 

(c)                                  to immediately inform the Bank should events of material significance for the Group’s development occur or should material changes occur to the Group’s financial position, profit trend, liquidity or financing situation provided that such events or changes might have a material effect on the Borrower’s ability to perform its obligations under this Agreement;

 

(d)                                 to supply to the Bank as soon as the same become available, but in any event within 150 days after the end of each of its financial years, its audited consolidated financial statements for that financial year;

 

(e)                                  to supply to the Bank as soon as the same become available, but in any event within 60 days after the end of the first half of each of its financial years, its unaudited consolidated financial statements for that financial half year;

 

(f)                                   to otherwise on demand provide the Bank with such information concerning the Group which the Bank reasonably requests and which, in the Bank’s opinion, may be of significance for the Borrower’s or the Bank’s obligations pursuant to this Agreement; however, the Borrower shall only be obliged to provide the Bank with information to the extent that the provision of such information does not violate any contract which the Borrower or any Subsidiary has entered into with any securities exchange or authorised marketplace on which shares in, or securities issued by, the Borrower or any Subsidiary are listed;

 

(g)                                  to insure its assets and business to the extent and in a manner which is customary for companies of the same or similar operations as the Borrower;

 

(h)                                 to procure that its Subsidiaries insure their assets and their business to the extent specified in sub clause (g) above;

 

13

 

(i)                                     not to materially change its business operations compared with the manner in which such are presently conducted;

 

(j)                                    not (without the prior written consent of the Bank, which consent should not be unreasonably withheld) to merge with any other company;

 

(k)                                 to inform the Bank of any changes and/or plans of changes of the financing of it’s parent company The Container Store Inc;

 

(l)                                     not to pledge or create any other security interest over its assets in any cases other than those specified in Clause 12.2 below without the Bank’s prior written consent (the aforesaid shall not include any retention of title or lien) or assume any guarantee commitment in respect of any third party’s payment obligation;

 

(m)                             to ensure that its Subsidiaries comply with the provisions of (I) above whereupon the Subsidiary in question shall comply with the obligations applicable to the Borrower;

 

(n)                                 to ensure that the claims of the Bank against it under this Agreement at all times rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except for obligations mandatorily preferred by law.

 

(o)                                 not, without having informed the Bank, dispose of operations or assets except (i) made in the ordinary course of business on an arm’s length basis, (ii) in exchange for comparable assets, (iii) of obsolete plant or equipment for cash, or (iv) with the prior written consent of the Bank (which consent should not be unreasonably withheld) from a Group company to another Group company;

 

(p)                                 to quarterly, in writing, within 30 days after end of each quarter, starting May 31st 2009, report to the Bank according to provisions (q) and (r) below and to any current and future covenant;

 

(q)                                 to ensure that the Borrower’s consolidated Equity Ratio always exceeds 35% at the end of each quarter of a year calculated according to Appendix 2; and

 

(r)                                    to ensure that the consolidated ratio of the Borrower’s Net Debt to EBITDA never exceeds 4,0 at the end of each quarter of a year calculated according to Appendix 2 (EBITDA shall be calculated on rolling 12 months, i.e. the latest 12 months);

 

(s)                                     until April 30th, 2010, (1) to not pay any dividends to its parent, The Container Store Inc., (2) to not make any repayments of principal on intercompany debt owed to its parent, The Container Store, Inc. and (3) to not decrease the price of goods sold to its parent, The

 

14

 

Container Store, inc.;

 

(t)                                    that after April 30th, 2010, any dividends paid to its parent, The Container Store, Inc., will be based on the Borrower’s future net income and on historical intercompany practices as between the Borrower and its parent, The Container Store, Inc.

 

12.2                        However, the Borrower’s obligations pursuant to Clauses 12.1 (I) and (m) above shall not include the following pledges or security:

 

(a)         pledges which rise in the Borrower’s or its Subsidiaries operations by law;

 

(b)         pledges due to litigation or proceedings involving the Borrower or any Subsidiary before courts of law or arbitral tribunals or due to matters involving the Borrower which are dealt with by courts of law or public authorities;

 

(c)          pledges and other security related to the Borrower’s or its Subsidiaries issuance of covered bonds;

 

(d)         pledges and other security in the ordinary course if its business.; and

 

(e)          pledges or other security securing indebtedness of SEK 10,000,000 in aggregate.

 

12.3                        The undertakings in Clause 12.1 remain in force from the date of this Agreement for so long as any amount is outstanding hereunder.

 

13.                               EVENTS OF DEFAULT

 

13.1                        The Bank shall be entitled to give notice of cancellation of its obligations under this Agreement and demand repayment of all Loans provided under this Agreement with accrued interest and other claims against the Borrower resulting from this Agreement, on the date which the Bank determines, where any of the following circumstances occur:

 

(a)                                 the Borrower does not pay on the due date any amount payable pursuant to this Agreement unless its failure to pay is caused by administrative or technical error and payment is made within five (5) Banking Days of the due date;

 

(b)                                 the Borrower does not comply with any provision of this Agreement (other than that referred to in sub clause (a) above and such failure is not remedied within the earlier of (i) ten (10) days after notice from the Bank and (ii) ten (10) days after the Borrower having become aware of

 

15

 

such failure;

 

(c)                                  the Borrower or any Subsidiary fails to duly perform, or comply with, any other payment obligations towards the Bank unless its failure to pay is caused by administrative or technical error and payment is made within five (5) Banking Days of the due date;

 

(d)                                 the Borrower or any Subsidiary fails to make payment on the due date in relation to Financial Indebtedness having an aggregate principal amount more than SEK 5,000,000 other than in relation to the Bank, any of the Borrower’s or any Subsidiaries’ Financial Indebtedness having an aggregate principal amount more than SEK 5,000,000 is declared to be due and payable prior to its specified maturity or any other ground for such declaration has occurred or where any creditor of the Borrower or any Subsidiary cancels a loan commitment or other binding commitment regarding the provision of such Financial Indebtedness;

 

(e)                                  the Borrower or any Subsidiary has been placed into insolvent liquidation, commenced negotiations for a composition, applied for a company reorganisation order (or has commenced similar proceedings) or has suspended its payments or been placed into liquidation;

 

(f)                                   any attachment, sequestration, distress or execution affects any asset or assets of a member of the Group; or

 

(g)                                  any other circumstances exist which give the Bank reasonable grounds to assume that the Borrower’s conditions for, and/or possibilities to, make payment or to perform other material obligations towards the Bank pursuant to this Agreement have deteriorated significantly.

 

13.2                       Where repayment is demanded due to cancellation by the Bank pursuant to the aforesaid, the Borrower shall be obliged to indemnify the Bank, on demand, for the reasonable costs and losses which may thereby be incurred by the Bank.

 

14.                               CHANGE IN CIRCUMSTANCES AND INCREASED COSTS, etc.

 

14.1                        Unless otherwise set out in the second paragraph of this sub clause 14.1, in the event Swedish or foreign legislation, the actions of Swedish or foreign public authorities, or circumstances which affect the Swedish or a foreign credit or currency market directly or indirectly make it impossible or significantly more expensive for the Bank to provide or maintain any Loan or otherwise fulfil its obligations pursuant to this Agreement, the Bank shall be entitled to terminate this Agreement with immediate effect and demand repayment of any Loan on a date determined by the Bank. The Borrower shall thereupon on demand indemnify the Bank for increased costs up to the date of

 

16

 

repayment of the Loan in question and for such costs which the Bank incurs due to repayment being made other than on the Repayment Date. The Bank hereby undertakes to inform the Borrower without unreasonable delay of such events as referred to in this Clause 14.1.

 

In the event any of the changed circumstances as referred to in the foregoing paragraph only give rise to an increased cost for the Bank, the Bank shall on request by the Borrower maintain the Loan(s), provided the Borrower indemnifies the Bank for any costs already incurred together with any future costs that the Bank incurs in connection therewith.

 

14.2                        The Borrower shall on demand by the Bank, pay to the Bank the amount of any increased costs incurred by the Bank as a result of the introduction of or any change in any law or regulation (including for the avoidance of doubt any amended rules regarding capital adequacy (such as for example any amended rules due to the implementation of Basel II) or obligations regarding provisions for losses) made after the date of this Agreement which are incurred or suffered by the Bank to the extent that it is attributable to the Bank funding or performing its obligations under this Agreement.

 

14.3                        In the event the Borrower incurs additional expenses pursuant to any of the provisions of this Clause 14, the Borrower shall be entitled to terminate this Agreement immediately provided that all Loans are repaid at the same time together with accrued interest thereon and other documented costs incurred by the Bank in connection with such repayment.

 

15.                               SET OFF

 

15.1                        All payments to be made by the Borrower hereunder shall be calculated and be made without any set-off or counterclaim.

 

15.2                        The Borrower authorises the Bank to apply any credit balance to which the Borrower is entitled on any account of the Borrower with the Bank in satisfaction of any sum due and payable from the Borrower to the Bank under this Agreement whether matured or unmatured. For this purpose, the Bank is authorised to purchase with the moneys standing to the credit of any such account such other currencies as may be necessary to effect such application.

 

15.3                        The Bank shall not be obliged to exercise any right given to it by Clause 15.2.

 

16.                               ASSIGNMENT

 

16.1                       The Borrower shall not be entitled to assign its rights or obligations under this Agreement in whole or in part, without the Bank’s prior written consent.

 

16.2                       The Bank shall be entitled to assign its rights and obligations under this Agreement in whole or in part to another financial institution subject to the

 

17

 

Borrower’s prior written consent, which consent shall not be unreasonably withheld. However, the Bank shall at all times be entitled to assign its rights and obligations under this Agreement without the Borrower’s consent to another company within the same group as the Bank and to other companies if an Event of Default is continuing. All costs which the Bank may incur due to such assignment shall be borne by the Bank. Prior to a contemplated assignment, the Bank shall notify the Borrower of its intentions without being required to name the prospective assignee and as soon as possible after the execution of the assignment agreement the Bank shall inform the Borrower of the name of the assignee.

 

17.                               NOTICES, etc.

 

17.1                        Any communication under, or in connection with, this Agreement, except for Utilisation Requests, shall be in writing and may be given in person, by post or fax to the contacts set out below.

 

The Borrower:

 

Elfa International AB

Attention: CEO or CFO

Postal address: 593 87 VÄSTERVIK

Fax number: + 46 490 846 25

 

The Bank:

 

Tjustbygdens Sparbank AB

Att: Företagsavdelningen

Visiting address: Kvarngatan 20, Västervik

Postal address: Box 322, 593 24 VÄSTERVIK

Fax number: +46 490 815120

 

The Borrower and the Bank shall notify each other of any changes of addresses or fax numbers.

 

17.2                        Except as provided in Clause 17.3 below, any communication in connection with this Agreement shall be deemed to be received as follows:

 

(a)                            if delivered in person, at the time of delivery;

 

(b)                            if delivered by post, three Banking Days after being deposited in the post, postage prepaid, in a correctly addressed envelope; and

 

(c)                             if by fax when received in legible form.

 

17.3                       A communication deemed to be received under the foregoing Clause 17.2 but received on a non-Banking Day or on a Banking Day after 16:00 am will only

 

18

 

be deemed to be received on the next Banking Day at the recipient.

 

18.                               LIMITATION OF THE BANK’S LIABILITY

 

18.1                        The Bank shall not be held responsible for any loss or damage resulting from a Swedish legal enactment, the intervention of a Swedish public authority, an act of war, a strike, blockade, boycott, lockout or any other similar circumstance. The reservation in respect of strikes, blockades, boycotts and lockouts applies even if the Bank itself takes such measures or is the subject of such measures.

 

18.2                        Any loss or damage arising from any other cause shall not be indemnified by the Bank, where the Bank has observed normal care. The Bank cannot be held responsible for any indirect loss or damage.

 

18.3                        Where the Bank is prevented from effecting payments, or, taking other measures due to circumstances as indicated in the first paragraph, the measures in question may be postponed until the obstacle has been removed. Where a payment has been postponed, then the Bank shall, in case it has undertaken to pay interest, pay interest at the rate applicable at maturity.

 

18.4                        Where the Bank, due to circumstances as indicated in the first paragraph, is prevented from receiving payments, the Bank shall be entitled to interest for the period during which the obstacle remains, only under the terms and conditions in force at maturity.

 

19.                               AMENDMENTS

 

In order to be binding, any supplements and amendments to this Agreement must be made in writing.

 

20.                               TERM

 

This Agreement shall remain in force during the Facility Period. Notwithstanding the expiration of the Facility Period, the Borrower’s obligations pursuant to this Agreement shall remain in force until fully discharged.

 

21.                               GOVERNING LAW AND JURISDICTION

 

This Agreement shall be governed by Swedish Law. The District Court of Stockholm shall have jurisdiction as the court of first instance to settle any dispute arising out of or in connection with this Agreement.

 

This Agreement has been executed in two (2) originals of which each party has taken one.

 

19

 

Västervik, April 27th 2009

 

	
TJUSTBYGDENS SPARBANK AB
    	
 
    	
ELFA INTERNATIONAL AB
    
	
 
    	
 
    	
 
    
	
/s/ Mats Hasselquist
    	
 
    	
/s/ Per Von Mentzer
    
	
Mats Hasselquist
    	
 
    	
Per Von Mentzer
    
	
 
    	
 
    	
 
    
	
/s/ Thomas Bjorkberger
    	
 
    	
/s/ Jorgen Nilsson
    
	
Thomas Bjorkberger
    	
 
    	
Jorgen Nilsson
    

 

20

 

CONFIRMATION

 

WHEREAS,

 

(a) Tjustbygdens Sparbank AB has transferred all their rights under a Revolving Credit and Term Loan Facility Agreement dated April 27th, 2009, with an original loan amount of SEK 312,500,000 and with ourselves as borrower, to Swedbank AB.

 

(b) we, the undersigned, has pledged certain assets (detailed in Annex 1) to Tjustbygdens Sparbank AB as security for our due fulfillment of all obligations under the aforementioned loan agreement as well as for all other claims that Tjustbygdens Sparbank might have against Elfa International AB.

 

(c) we, the undersigned, has issued a guarantee dated 2009-04-27 for all our subsidiaries ad infinitum obligations towards Tjustbygdens Sparbank AB. (Annex 2)

 

WE HEREBY CONFIRM

 

that all assets (detailed in Annex 1) that we have pledged to Tjustbygdens Sparbank AB as well as the guarantee mentioned under (c) above will, after the transfer of all rights under the above mentioned loan agreement, also serve as security for all the obligations towards Swedbank AB under the aforementioned loan agreement as if Swedbank AB had been the initial lender to Elfa International AB.

 

For the avoidance of doubt it is hereby also confirmed that since Tjustbygdens Sparbank AB have remaining claims on Elfa International AB for which claims the assets (detailed in Annex 1) as well as the guarantee mentioned under (c) above are pledged, Swebank AB and Tjustbygdens Sparbank AB have equal rights to the pledged assets as well as the guarantee mentioned under (c) above, according to their respective claims on Elfa International AB.

 

Malmö and Västervik, January 24th, 2012

 

	
/s/ Per Von Mentzer
    	
 
    

 

ELFA INTERNATIONAL AB

 

 

TRANSFER CERTIFICATE

 

ELFA INTERNATIONAL AB (“the Borrower”), TJUSTBYGDENS SPARBANK AB (“the Bank”) and SWEDBANK AB (“ the New Bank”) has on September XX th, 2011 issued this Transfer Certificate in relation to a

 

SEK 312,500,000 REVOLVING CREDIT AND TREM LOAN FACILITY AGGREMENT DATED APRIL 27th, 2009 (the “Agreement”)

 

1.                              We refer to the Agreement. Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

 

2.                              We refer to Clause 16 (Assignment):

 

(a)                                   The Bank and the New Bank agree to the Bank transferring to the New Bank all of the Bank’s commitments, rights and obligations referred to in the Agreement and in Schedule 1.

 

(b)                                   The transfer date is January xx, 2012.

 

(c)                                    The New Bank and address, fax number and attention details for notices of the New Bank for the purposes of Clause 17 (Notices, etc.) are set out in Schedule 1.

 

3.                              The New Bank expressly acknowledges the limitations on the Bank’s obligations set out in paragraph of Clause 18 (Limitation of the Bank’s Liability).

 

4.                              This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate.

 

5.                              Elfa International AB confirms by its signature on this Transfer Certificate i.a. that the Bank shall have the right to receive all future information about the transferred commitments, rights and obligations as if the transfer had not been accomplished.

 

6.                              This Transfer Certificate is governed by the laws of Sweden.

 

	
SWEDBANK AB (publ)
    	
TJUSTBYGDENS SPARBANK AB
    
	
 
    	
 
    
	
/s/ Per Von Mentzer
    	
 
    

 

ELFA INTERNATIONAL AB

 

 

CONFIRMATION

 

WHEREAS,

 

(a) we, the undersigned, have been informed that Tjustbygdens Sparbank AB has transferred all their rights under a Revolving Credit and Term Loan Facility Agreement dated April 27th, 2009, with an original loan amount of SEK 312,500,000 and with Elfa International AB as borrower to Swedbank AB.

 

(b) we, the undersigned, have pledged certain assets (detailed in Annex 1) to Tjustbygdens Sparbank AB as security for Elfa International AB’s due fulfillment of all obligations under the aforementioned loan agreement as well as for all other claims that Tjustbygdens Sparbank might have against Elfa international AB

 

WE HEREBY CONFIRM

 

that all assets and detailed in Annex 1 that we have pledged to Tjustbygdens Sparbank AB will, after the transfer of all rights under the above mentioned loan agreement, also serve as security for all the obligations towards Swedbank AB under the aforementioned loan agreement as if Swedbank AB had been the initial lender to Elfa International AB.

 

For the avoidance of doubt it is hereby also confirmed that since Tjustbygdens Sparbank AB have remaining claims on Elfa International AB for which claims the assets detailed in Annex 1 are pledged, Swebank AB and Tjustbygdens Sparbank AB have equal rights to the pledged assets, according to their respective claims on Elfa International AB.

 

Malmö and Västervik, January    th, 2012

 

	
ELFA SWEDEN AB
    	
OY ELFA FINLAND
    	
ELFA LUMI AB
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
LUMINATOR AKTIEBOLAG

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