Exhibit 10.8

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT, dated as of September 28, 2005 (as amended, restated,
amended and restated, supplemented or otherwise modified from time to time, this
“Agreement”), is made by FIRST ADVANTAGE CORPORATION, a Delaware corporation
(the “Borrower”), and each of the other Persons (such capitalized term and all
other capitalized terms not otherwise defined herein to have the meanings
provided for in Article I) listed on the signature pages hereof (such other
Persons, together with the Additional Grantors (as defined in Section 7.2(b))
and the Borrower are collectively referred to as the “Grantors” and individually
as a “Grantor”), in favor of BANK OF AMERICA, N.A., as administrative and
collateral agent (in such capacity, the “Administrative Agent”) for each of the
Secured Parties.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to a Credit Agreement, dated as of the date hereof (as
amended, restated, amended and restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among the Borrower, the various financial
institutions as are, or may from time to time become, parties thereto, the
Administrative Agent and Bank of America, N.A., and L/C Issuer as Swing Line
Lender, LaSalle Bank National Association, as Syndication Agent, Wachovia Bank,
National Association and SunTrust Bank, as Co-Documentation Agents and the other
Loan Documents referred to therein, the Secured Parties have agreed to make
Credit Extensions and other financial accommodations available to or for the
benefit of the Grantors;

 

WHEREAS, as a condition precedent to the making of the initial Credit Extension
under the Credit Agreement, each Grantor is required to execute and deliver this
Agreement; and

 

WHEREAS, each Grantor has duly authorized the execution, delivery and
performance of this Agreement;

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and in order to induce the Lenders to make
Credit Extensions (including the initial Credit Extension) to the Borrower
pursuant to the Credit Agreement, each Grantor agrees, for the benefit of each
Secured Party, as follows:

 

ARTICLE I

DEFINITIONS

 

1.1 Definitions. The following terms (whether or not underscored) when used in
this Agreement, including its preamble and recitals, shall have the following
meanings (such definitions to be equally applicable to the singular and plural
forms thereof):

 

“Account” means a right to payment of a monetary obligation, whether or not
earned by performance (and shall include invoices, contracts, rights, accounts
receivable, notes, refunds, indemnities, interest, late charges, fees,
undertakings, and all other obligations and amounts owing to any Grantor from
any Person):

 

(a) for property that has been or is to be sold, leased, licensed, assigned or
otherwise disposed of;

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(b) for services rendered or to be rendered;

 

(c) for a policy of insurance issued or to be issued;

 

(d) for a secondary obligation incurred or to be incurred; or

 

(e) arising out of the use of a credit or charge card or information contained
on or for use with the card.

 

“Additional Grantors” is defined in Section 7.2(b).

 

“Administrative Agent” is defined in the preamble.

 

“Agreement” is defined in the preamble.

 

“Authenticate” means:

 

(a) to sign; or

 

(b) to execute or otherwise adopt a symbol, or encrypt or similarly process a
record in whole or in part, with the present intent of the authenticating Person
to identify the Person and adopt or accept a record.

 

“Borrower” is defined in the preamble.

 

“Chattel Paper” means a record or records that evidence both a monetary
obligation and a security interest in specific goods, a security interest in
specific goods and software used in the goods, a security interest in specific
goods and license of software used in the goods, a lease of specific goods, or a
lease of specific goods and license of software used in the goods.

 

“Collateral” is defined in Section 2.1.

 

“Collateral Account” means, for each Grantor, a deposit account in the name of
the Administrative Agent and subject to the sole dominion and control of the
Administrative Agent.

 

“Control” means the act or condition of gaining or maintaining control of
collateral by any appropriate method under the UCC.

 

“Credit Agreement” is defined in the first recital.

 

“Documents” means a document of title or a receipt of the type described in
Section 7-201(2) of the UCC.

 

“Electronic Chattel Paper” means Chattel Paper evidenced by a record or records
consisting of information stored in an electronic medium.

 

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“Grantor” and “Grantors” are defined in the preamble.

 

“Indemnitee” is defined in Section 6.2.

 

“Instrument” means a negotiable instrument or any other writing that evidences a
right to the payment of a monetary obligation, is not itself a security
agreement or lease, and is of a type that in ordinary course of business is
transferred by delivery with any necessary endorsement or assignment.

 

“Loan Documents” is defined in the Credit Agreement.

 

“Pledge Agreement” is defined in the Credit Agreement.

 

“Proceeds” means the following property:

 

(a) whatever is acquired upon the sale, lease, license, exchange, or other
disposition of the Collateral;

 

(b) whatever is collected on, or distributed on account of, the Collateral;

 

(c) rights arising out of the Collateral; and

 

(d) to the extent of the value of the Collateral and to the extent payable to
the debtor or the secured party, insurance payable by reason of the loss or
nonconformity of, defects or infringement of rights in, or damage to, the
Collateral.

 

“Receivables Collateral” means, collectively, Accounts, Documents, Instruments
and Chattel Paper.

 

“Secured Obligations” is defined in Section 2.2.

 

“Secured Party” means the Administrative Agent, each Lender, the L/C Issuer,
each Swap Bank and each Cash Management Bank.

 

“Secured Swap Contract” means any Swap Contract that is entered into by and
between any Grantor and any Swap Bank, provided that such Swap Bank shall have
provided a copy thereof to the Administrative Agent together with the written
notice that such Swap Agreement is to be included as a Secured Swap Agreement
under this Agreement.

 

“Swap Bank” is defined in the Credit Agreement.

 

“Swap Contract” is defined in the Credit Agreement.

 

“Tangible Chattel Paper” means Chattel Paper evidenced by a record or records
consisting of information that is inscribed on a tangible medium.

 

“Termination Date” means the date on which the latest of the following events
occurs:

 

(a) the payment in full in cash of the Secured Obligations;

 

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(b) the termination or expiration of the Availability Period; and

 

(c) the termination or expiration of all Letters of Credit and all Secured Swap
Contracts to which a Swap Bank is a party.

 

“UCC” as defined in the Credit Agreement.

 

1.2 Credit Agreement Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided in the Credit Agreement.

 

1.3 UCC Definitions. Unless otherwise defined herein or the context otherwise
requires, terms for which meanings are provided in the UCC are used in this
Agreement, including its preamble and recitals, with such meanings.

 

1.4 Other Interpretive Provisions. The rules of construction in Sections 1.02 to
1.06 of the Credit Agreement shall be equally applicable to this Agreement.

 

ARTICLE II

SECURITY INTEREST

 

2.1 Grant of Security. Each Grantor hereby assigns and pledges to the
Administrative Agent for its benefit and the ratable benefit of each of the
Secured Parties, and hereby grants to the Administrative Agent for its benefit
and the ratable benefit of each of the Secured Parties a security interest in,
all of its right, title and interest in and to the following, whether now or
hereafter existing or acquired (collectively, the “Collateral”):

 

(a) all Receivables Collateral forms, including all Accounts, Documents,
Instruments and Chattel Paper, of such Grantor; and

 

  (b) all Proceeds of any and all of the foregoing Collateral.

 

2.2 Security for Secured Obligations. The Collateral of each Grantor under this
Agreement secures the prompt and complete payment, performance and observance of
all Obligations of such Grantor and the other Loan Parties under the Loan
Documents (including such Grantor’s Obligations in respect of any Secured Swap
Contract), whether for principal, interest, costs, fees, expenses, indemnities
or otherwise and whether now or hereafter existing (all of such obligations
being the “Secured Obligations”).

 

2.3 Continuing Security Interest; Transfer of Credit Extensions. This Agreement
shall create a continuing security interest in the Collateral and shall remain
in full force and effect until the Termination Date, be binding upon each
Grantor, its successors, transferees and assigns, and inure, together with the
rights and remedies of the Administrative Agent hereunder, to the benefit of the
Administrative Agent and each other Secured Party. Without limiting the
generality of the foregoing, any Secured Party may assign or otherwise transfer
(in whole or in

 

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part) any Commitment or Loan held by it to any other Person, and such other
Person shall thereupon become vested with all the rights and benefits in respect
thereof granted to such Lender under any Loan Document (including this
Agreement) or otherwise, subject, however, to any contrary provisions in such
assignment or transfer, and to the provisions of Section 10.07 and Article IX of
the Credit Agreement.

 

2.4 Grantors Remain Liable. Anything herein to the contrary notwithstanding

 

(a) each Grantor shall remain liable under the contracts and agreements included
in the Collateral to the extent set forth therein, and shall perform all of its
duties and obligations under such contracts and agreements to the same extent as
if this Agreement had not been executed,

 

(b) each Grantor will comply in all material respects with all Laws relating to
the ownership and operation of the Collateral, including all registration
requirements under applicable Laws, and shall pay when due all taxes, fees and
assessments imposed on or with respect to the Collateral, except to the extent
the validity thereof is being contested in good faith by appropriate proceedings
for which adequate reserves in accordance with GAAP have been set aside by such
Grantor,

 

(c) the exercise by the Administrative Agent of any of its rights hereunder
shall not release any Grantor from any of its duties or obligations under any
such contracts or agreements included in the Collateral, and

 

(d) neither the Administrative Agent nor any other Secured Party shall have any
obligation or liability under any such contracts or agreements included in the
Collateral by reason of this Agreement, nor shall the Administrative Agent or
any other Secured Party be obligated to perform any of the obligations or duties
of any Grantor thereunder or to take any action to collect or enforce any claim
for payment assigned hereunder.

 

2.5 Security Interest Absolute. All rights of the Administrative Agent and the
security interests granted to the Administrative Agent hereunder, and all
obligations of each Grantor hereunder, shall be absolute and unconditional,
irrespective of any of the following conditions, occurrences or events:

 

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

 

(b) the failure of any Secured Party to assert any claim or demand or to enforce
any right or remedy against the Borrower, any other Grantor or any other Person
under the provisions of any Loan Document or otherwise or to exercise any right
or remedy against any other guarantor of, or collateral securing, any Secured
Obligation;

 

(c) 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 extension, compromise or
renewal of any Secured Obligation, including any increase in the Secured
Obligations resulting from the extension of additional credit to any Grantor or
any other obligor or otherwise;

 

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(d) any reduction, limitation, impairment or termination of any Secured
Obligation for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to (and each Grantor hereby
waives any right to or claim of) any defense or setoff, counterclaim, recoupment
or termination whatsoever by reason of the invalidity, illegality,
nongenuineness, irregularity, compromise, unenforceability of, or any other
event or occurrence affecting, any Secured Obligation or otherwise;

 

(e) any amendment to, rescission, waiver, or other modification of, or any
consent to departure from, any of the terms of any Loan Document;

 

(f) any addition, exchange, release, surrender or non-perfection of any
collateral (including the Collateral), or any amendment to or waiver or release
of or addition to or consent to departure from any guaranty, for any of the
Secured Obligations; or

 

(g) any other circumstances which might otherwise constitute a defense available
to, or a legal or equitable discharge of, Borrower, any other Grantor or
otherwise.

 

2.6 Waiver of Subrogation. Until the Termination Date, no Grantor shall exercise
any claim or other rights which it may now or hereafter acquire against any
other Grantor that arises from the existence, payment, performance or
enforcement of such Grantor’s Obligations under this Agreement, including any
right of subrogation, reimbursement, exoneration or indemnification, any right
to participate in any claim or remedy against any other Grantor or any
collateral which the Administrative Agent now has or hereafter acquires, whether
or not such claim, remedy or right arises in equity or under contract, statute
or common law, including the right to take or receive from any other Grantor,
directly or indirectly, in cash or other property or by setoff or in any manner,
payment or security on account of such claim or other rights. If any amount
shall be paid to any Grantor in violation of the preceding sentence, such amount
shall be deemed to have been paid for the benefit of the Secured Parties, and
shall forthwith be paid to the Administrative Agent to be credited and applied
upon the Secured Obligations, whether matured or unmatured. Each Grantor
acknowledges that it will receive direct and indirect benefits for the financing
arrangements contemplated by the Loan Documents and that the agreement set forth
in this Section is knowingly made in contemplation of such benefits.

 

2.7 Release; Termination.

 

(a) Upon any sale, transfer or other disposition of any item of Collateral of
any Grantor in accordance with Section 7.05 of the Credit Agreement, the
Administrative Agent will, at such Grantor’s expense and without any
representations, warranties or recourse of any kind whatsoever, execute and
deliver to such Grantor such documents as such Grantor shall reasonably request
to evidence the release of such item of Collateral from the assignment and
security interest granted hereby; provided, however, that (i) at the time of
such request and such release no Default shall have occurred and be continuing,
and (ii) such Grantor shall have delivered to the Administrative Agent, at least
ten Business Days prior to the date of the proposed release, a written request
for release describing the item of Collateral and the terms of the sale, lease,
transfer or other disposition in reasonable detail, including the price thereof
and any expenses in connection therewith, together with a form of release for
execution by the Administrative Agent (which release shall be in form and
substance satisfactory to the

 

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Administrative Agent) and a certificate of such Grantor to the effect that the
transaction is in compliance with the Loan Documents and as to such other
matters as the Administrative Agent (or the Required Lenders through the
Administrative Agent) may reasonably request.

 

(b) Upon the Termination Date, the pledge, assignment and security interest
granted hereby shall terminate and all rights to the Collateral shall revert to
the applicable Grantor. Upon any such termination, the Administrative Agent
will, at the applicable Grantor’s expense and without any representations,
warranties or recourse of any kind whatsoever, execute and deliver to such
Grantor such documents as such Grantor shall reasonably request to evidence such
termination and deliver to such Grantor all Instruments, Tangible Chattel Paper
and negotiable documents representing or evidencing the Collateral then held by
the Administrative Agent.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Each Grantor represents and warrants unto each Secured Party as set forth in
this Article.

 

3.1 Scheduled Information. Set forth in the Schedules to this Agreement is the
following information for each Grantor, all of which is accurate and complete as
of the Closing Date and as of each date on which such Schedules are supplemented
pursuant to Section 4.15 hereof:

 

(a) Location of Grantors. Item A of Schedule I hereto identifies for such
Grantor (i) the state in which it is organized, (ii) the relevant organizational
identification number (or states that one does not exist), and (iii) the
principal place of business and chief executive office of such Grantor and the
office where such Grantor keeps its records concerning the Collateral, and where
all originals of all Tangible Chattel Paper are located.

 

(b) Trade Names. Except as set forth in Item B of Schedule I hereto, such
Grantor has no trade names and has not been known by any legal name different
from the one set forth on the signature page hereto.

 

3.2 Negotiable Documents, Instruments and Chattel Paper. Such Grantor has
delivered to the Administrative Agent possession of all originals of all
negotiable documents, Instruments and Tangible Chattel Paper evidencing,
representing, arising from or existing in respect of or relating to any
Receivables Collateral currently owned or held by such Grantor (duly endorsed in
blank, if requested by the Administrative Agent).

 

3.3 Loan Documents Representations. Each Grantor makes each representation and
warranty made in the Credit Agreement and the other Loan Documents by the
Borrower or any other Loan Party with respect to such Grantor as if such
representation and warranty were expressly set forth herein.

 

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ARTICLE IV

COVENANTS

 

Each Grantor covenants and agrees that, until the Termination Date, such Grantor
will, unless the Administrative Agent with the consent of the Required Lenders
shall otherwise agree in writing, perform the obligations set forth in this
Section.

 

4.1 As to Collateral Generally.

 

(a) Until such time as the Administrative Agent shall notify the Grantors of the
revocation of such power and authority after the occurrence and continuation of
any Event of Default, each Grantor (i) may sell or otherwise dispose of any
other Collateral to the extent permitted by Section 7.05 of the Credit
Agreement, (ii) will, at its own expense, endeavor to collect, as and when due,
all amounts due with respect to any of the Collateral, including the taking of
such action with respect to such collection as the Administrative Agent may
reasonably request or, in the absence of such request, as each Grantor may deem
advisable; and (iii) may grant, in the ordinary course of business, to any party
obligated on any of the Collateral, any rebate, refund or allowance to which
such party may be lawfully entitled, and may accept, in connection therewith,
the return of goods, the sale or lease of which shall have given rise to such
Collateral. The Administrative Agent, however, may, at any time following the
occurrence and during the continuance of any Event of Default, whether before or
after any revocation of such power and authority or the maturity of any of the
Secured Obligations, notify any parties obligated on any of the Collateral to
make payment to the Administrative Agent of any amounts due or to become due
thereunder and enforce collection of any of the Collateral by suit or otherwise
and surrender, release, or exchange all or any part thereof, or compromise or
extend or renew for any period (whether or not longer than the original period)
any indebtedness thereunder or evidenced thereby. Upon request of the
Administrative Agent after the occurrence and during the continuance of any
Event of Default, each Grantor will, at its own expense, notify any parties
obligated on any of the Collateral to make payment to the Administrative Agent
of any amounts due or to become due thereunder.

 

(b) The Administrative Agent is authorized to endorse, in the name of each
Grantor, any item, howsoever received by the Administrative Agent, representing
any payment on or other proceeds of any of the Collateral.

 

4.2 Insurance. Each Grantor will maintain or cause to be maintained insurance as
provided in Section 6.07 of the Credit Agreement. In the event that any Grantor
at any time or times shall fail to obtain or maintain any of the policies of
insurance required by Section 6.07 of the Credit Agreement or to pay any premium
in whole or part relating thereto, the Administrative Agent may, without waiving
or releasing any obligation or liability of the Grantors hereunder or any 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 Administrative Agent deems advisable. All sums disbursed by the
Administrative Agent in connection with this Section including reasonable
attorneys’ fees, court costs, expenses and other charges relating thereto, shall
be payable, upon demand, by the Grantors to the Administrative Agent and shall
be additional Secured Obligations secured hereby.

 

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4.3 Transfers and Other Liens. No Grantor shall:

 

(a) sell, assign (by operation of Law or otherwise) or otherwise dispose of any
of the Collateral, except as permitted by Section 7.05 of the Credit Agreement;
or

 

(b) create or suffer to exist any Lien upon or with respect to any of the
Collateral, except for the security interest created by this Agreement and
except for Permitted Liens.

 

4.4 Inspections and Verification. The Administrative Agent shall have the
inspection rights set forth in Section 6.10 of the Credit Agreement.

 

4.5 As to Accounts, Chattel Paper, Documents and Instruments.

 

(a) Each Grantor shall: (i) keep its principal place of business and chief
executive office and the office where it keeps its records concerning the
Receivables Collateral and all originals of all Tangible Chattel Paper (until
any such Tangible Chattel Paper is delivered to the Administrative Agent
pursuant to Section 4.10), located at the places therefor specified in
Section 3.1 unless the Borrower or such Grantor has given at least 30 days’
prior written notice to the Administrative Agent, and all actions, if any,
necessary to maintain the Administrative Agent’s perfected first priority
security interest shall have been taken with respect to such Collateral;
(ii) not change its name or jurisdiction of organization (whether pursuant to a
transaction permitted pursuant to Section 7.04 of the Credit Agreement or
otherwise) unless the Borrower or such Grantor has given at least 30 days’ prior
written notice to the Administrative Agent, and all actions necessary to
maintain the Administrative Agent’s perfected first priority security interest
shall have taken with respect to the Collateral of such Grantor; and (iii) hold
and preserve such records and Chattel Paper (or copies of any such Chattel Paper
so delivered to the Administrative Agent).

 

(b) Upon written notice by the Administrative Agent to any Grantor, all Proceeds
of Collateral received by such Grantor shall be delivered in kind to the
Administrative Agent for deposit to the Collateral Account for such Grantor, and
such Grantor shall not commingle any such proceeds, and shall hold separate and
apart from all other property, all such Proceeds in express trust for the
benefit of the Administrative Agent until delivery thereof is made to the
Administrative Agent. The Administrative Agent will not give the notice referred
to in the preceding sentence unless there shall have occurred and be continuing
any Event of Default. No funds, other than Proceeds of Collateral of a Grantor,
will be deposited in the Collateral Account for such Grantor.

 

(c) The Administrative Agent shall have the right to apply any amount in the
Collateral Account to the payment of any Secured Obligations which are due and
payable or payable upon demand, or to the payment of any Secured Obligations at
any time that any Event of Default shall exist. Subject to the rights of the
Administrative Agent, the Borrower on behalf of each Grantor shall have the
right on each Business Day, with respect to and to the extent of collected funds
in the Collateral Account, to require the Administrative Agent to purchase any
cash equivalent Investment permitted under Section 7.02 of the Credit Agreement,
provided that, in the case of certificated securities, the Administrative Agent
will retain possession thereof as Collateral and, in the case of other
investment property, the Administrative Agent will take such

 

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actions, including registration of such investment property in its name, as it
shall determine is necessary to perfect its security interest therein. The
Administrative Agent may at any time and shall promptly following any Grantor’s
request therefor, so long as no Event of Default has occurred and is continuing,
transfer to such Grantor’s general demand deposit account at the Administrative
Agent or its bank (if not the Administrative Agent) any or all of the collected
funds in the Collateral Account; provided, however, that any such transfer shall
not be deemed to be a waiver or modification of any of the Administrative
Agent’s rights under this Section. None of the Grantors will, without the
Administrative Agent’s prior written consent, grant any extension of the time of
payment of any Receivables Collateral, 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, other than extensions, credits, discounts, compromises or settlements
granted or made in the ordinary course of business and consistent with its
current practices and in accordance with such prudent and standard practices
used in industries that are the same as or similar to those in which such
Grantor is engaged.

 

4.6 Chattel Paper. Each Grantor will deliver to the Administrative Agent all
Tangible Chattel Paper duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance satisfactory to
the Administrative Agent. Each Grantor will provide the Administrative Agent
with Control of all Electronic Chattel Paper, by having the Administrative Agent
identified as the assignee of the records(s) pertaining to the single
authoritative copy thereof and otherwise complying with the applicable elements
of Control set forth in the UCC. Each Grantor will also deliver to the
Administrative Agent all security agreements securing any Chattel Paper and
execute UCC financing statement amendments assigning to the Administrative Agent
any UCC financing statements filed by such Grantor in connection with such
security agreements. Each Grantor will mark conspicuously all Chattel Paper with
a legend, in form and substance satisfactory to the Administrative Agent,
indicating that such Chattel Paper is subject to the Liens created hereunder.

 

4.7 Further Assurances, etc. (a) Each Grantor agrees that, from time to time at
its own expense, such Grantor will promptly execute and deliver all further
documents, financing statements, agreements and instruments, and take all such
further action, which may be required under applicable Law, or which the
Administrative Agent or Required Lenders may reasonably request, in order to
perfect, preserve and protect any security interest granted or purported to be
granted hereby or to enable the Administrative Agent to exercise and enforce its
rights and remedies hereunder with respect to any Collateral. Without limiting
the generality of the foregoing, each Grantor will take each of the following
actions:

 

(i) mark conspicuously each item of Tangible Chattel Paper and, at the request
of the Administrative Agent, each of its records pertaining to any other
Collateral, with a legend, in form and substance satisfactory to the
Administrative Agent, indicating that such Chattel Paper or other Collateral is
subject to the security interest granted hereby;

 

(ii) if any Account shall be evidenced by a promissory note or other instrument
or negotiable document, deliver and pledge to the Administrative Agent hereunder
such promissory note, instrument or negotiable document duly endorsed and
accompanied by duly executed instruments of transfer or assignment, all in form
and substance reasonably satisfactory to the Administrative Agent;

 

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(iii) execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices (including any assignment of
claim form under or pursuant to the federal assignment of claims statute, 31
U.S.C. § 3726, any successor or amended version thereof or any regulation
promulgated under or pursuant to any version thereof), as may be necessary, or
as the Administrative Agent may reasonably request, in order to perfect and
preserve the security interests and other rights granted or purported to be
granted to the Administrative Agent hereby;

 

(iv) furnish to the Administrative Agent, from time to time at the
Administrative Agent’s request, statements and schedules further identifying and
describing the Collateral and such other reports in connection with the
Collateral as the Administrative Agent may reasonably request, all in reasonable
detail;

 

(v) take all actions that the Administrative Agent deems necessary or advisable
to enforce collection of the Receivables Collateral;

 

(vi) from time to time, promptly following the Administrative Agent’s request,
execute and deliver confirmatory written instruments pledging to the
Administrative Agent the Collateral, but any such Grantor’s failure to do so
shall not affect or limit the security interest granted hereby or the
Administrative Agent’s other rights in and to the Collateral; and

 

(vii) notify the Agent promptly of any Collateral which constitutes a claim
against the United States government or any instrumentality or agent thereof,
the assignment of which is restricted by federal law. Upon the request of the
Agent, Grantor shall take such steps as may be necessary to comply with any
applicable federal assignment of claims laws or other comparable laws.

 

(b) With respect to the foregoing and the grant of the security interest
hereunder, each Grantor hereby authorizes the Administrative Agent to
Authenticate and to file one or more financing or continuation statements, and
amendments thereto, in each case for the purpose of perfecting, continuing,
enforcing or protecting the security interest granted by each Grantor, without
the signature of any Grantor, and naming any Grantor or the Grantors as debtors
and the Administrative Agent as secured party. A carbon, photographic,
telecopied or other reproduction of this Agreement or any financing statement
covering the Collateral or any part thereof shall be sufficient as a financing
statement where permitted by Law.

 

4.8 Amendments or Terminations Not Authorized. Grantor acknowledges that it is
not authorized to file any financing statement or amendment or termination
statement with respect to a financing statement filed in favor of the Agent
without the prior written consent of the Agent and agrees that it will not do so
without the prior written consent of the Agent, subject to Grantor’s rights
under Section 9-5.13(c) of the UCC.

 

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ARTICLE V

THE ADMINISTRATIVE AGENT

 

5.1 Appointment as Attorney-in-Fact. Each Grantor hereby irrevocably appoints
the Administrative Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of
this Agreement, to take, upon the occurrence and during the continuance of any
Event of Default, any and all appropriate action and to execute any and all
documents and instruments that may be necessary or desirable to accomplish the
purposes of this Agreement. Without limiting the generality of the foregoing,
each Grantor hereby gives the Administrative Agent the power and right, on
behalf of such Grantor, without notice to or assent by such Grantor, to do any
or all of the following:

 

(a) (i) demand payment of its Receivables Collateral; (ii) enforce payments of
its Receivables Collateral by legal proceedings or otherwise; (iii) exercise all
of its rights and remedies with respect to proceedings brought to collect its
Receivables Collateral; (iv) sell or assign its Receivables Collateral upon such
terms, for such amount and at such times as the Administrative Agent deems
advisable; (v) settle, adjust, compromise, extend or renew any of its
Receivables Collateral; (vi) discharge and release any of its Receivables
Collateral (vii) prepare, file and sign such Grantor’s name on any proof of
claim in bankruptcy or other similar document against any obligor of any of its
Receivables Collateral; (viii) notify the post office authorities to change the
address for delivery of such Grantor’s mail to an address designated by the
Administrative Agent, and open and dispose of all mail addressed to such
Grantor; (ix) endorse such Grantor’s name upon any Chattel Paper, document,
instrument, invoice, or similar document or agreement relating to any
Receivables Collateral or any goods pertaining thereto; and (x) endorse such
Grantor’s name upon any Chattel Paper, document, instrument, invoice, or similar
document or agreement relating to any Receivables Collateral or any goods
pertaining thereto;

 

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

 

(c) execute, in connection with any sale or other disposition provided for in
Section 6.1, any endorsements, assignments or other instruments of conveyance or
transfer with respect to the Collateral; and

 

(d) (i) direct any party liable for any payment under any of the Collateral to
make payment of any and all moneys due or to become due thereunder directly to
the Administrative Agent or as the Administrative Agent shall direct; (ii) ask
or demand for, collect, and receive payment of and give receipt for, any and all
moneys, claims and other amounts due or to become due at any time in respect of
or arising out of any Collateral; (iii) sign and indorse any invoices, freight
or express bills, bills of lading, storage or warehouse receipts, drafts against
debtors, assignments, verifications, notices and other documents in connection
with any of the Collateral; (iv) commence and prosecute any suits, actions or
proceedings at law or in equity in any court of

 

12

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competent jurisdiction to collect the Collateral or any portion thereof and to
enforce any other right in respect of any Collateral; (v) defend any suit,
action or proceeding brought against such Grantor with respect to any
Collateral; (vi) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as the
Administrative Agent may deem appropriate; (vii) notify, or require any Grantor
to notify, Account Debtors to make payment directly to the Administrative Agent
and change the post office box number or other address to which the Account
Debtors make payments; and (viii) generally, sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any of the Collateral as fully
and completely as though the Administrative Agent were the absolute owner
thereof for all purposes, and do, at the Administrative Agent’s option and such
Grantor’s expense, at any time, or from time to time, all acts and things that
the Administrative Agent deems necessary to protect, preserve or realize upon
the Collateral and the Secured Parties’ security interests therein and to effect
the intent of this Agreement, all as fully and effectively as such Grantor might
do.

 

Each Grantor hereby acknowledges, consents and agrees that the power of attorney
granted pursuant to this Section is irrevocable and coupled with an interest.

 

5.2 Administrative Agent May Perform. If any Grantor fails to perform any
agreement contained herein, the Administrative Agent may itself perform, or
cause performance of, such agreement, and the reasonable expenses of the
Administrative Agent incurred in connection therewith shall be payable by such
Grantor pursuant to Section 6.2.

 

5.3 Administrative Agent Has No Duty. (a) In addition to, and not in limitation
of, Section 2.4, the powers conferred on the Administrative Agent hereunder are
solely to protect its interest (on behalf of the Secured Parties) in the
Collateral and shall not impose any duty or obligation on it to exercise any
such powers. Neither the Administrative Agent nor any of its officers,
directors, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof (including the
taking of any necessary steps to preserve rights against prior parties or any
other rights pertaining to any Collateral). Neither the Administrative Agent nor
any of its officers, directors, employees or agents shall be responsible to any
Grantor for any act or failure to act hereunder, except for their own gross
negligence or willful misconduct.

 

(b) Each Grantor assumes all responsibility and liability arising from or
relating to the use, sale or other disposition of the Collateral. The Secured
Obligations shall not be affected by any failure of the Administrative Agent to
take any steps to perfect the security interest granted hereunder or to collect
or realize upon the Collateral, nor shall loss of or damage to the Collateral
release any Grantor from any of its Secured Obligations.

 

ARTICLE VI

REMEDIES

 

6.1 Certain Remedies. If any Event of Default shall have occurred and be
continuing:

 

13

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(a) The Administrative Agent may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party on default under the UCC
and also may take the following actions:

 

(i) require each Grantor to, and each Grantor hereby agrees that it will, at its
expense and upon the request of the Administrative Agent forthwith, assemble all
or part of the Collateral as directed by the Administrative Agent and make it
available to the Administrative Agent at its premises or another place
designated by the Administrative Agent (whether or not the UCC applies to the
affected Collateral);

 

(ii) without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by referred to
below) to or upon any Grantor or any other Person (all and each of which
demands, defenses, advertisements and notices are hereby waived), sell, lease,
assign, give option or options to purchase, or otherwise dispose of and deliver
the Collateral or any part thereof (or contract to do any of the foregoing), in
one or more parcels at public or private sale, at any of the Administrative
Agent’s offices or elsewhere, for cash, on credit or for future delivery, and
upon such other terms as the Administrative Agent may deem commercially
reasonable. Each Grantor agrees that, to the extent notice of sale shall be
required by Law, at least ten days’ prior notice to such Grantor of the time and
place of any public sale or the time after which any private sale is to be made
shall constitute reasonable notification. The Administrative Agent shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given. The Administrative Agent may adjourn any public or private sale from
time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so
adjourned; and

 

(iii) with or without legal process and with or without prior notice or demand
for performance, to take possession of the Collateral and without liability for
trespass to enter any premises where the Collateral may be located for the
purpose of taking possession of or removing the Collateral.

 

(b) All cash proceeds received by the Administrative Agent in respect of any
sale of, collection from, or other realization upon all or any part of the
Collateral may, in the discretion of the Administrative Agent, be held, to the
extent permitted under applicable Law, by the Administrative Agent as additional
collateral security for all or any part of the Secured Obligations, and/or then
or at any time thereafter shall be applied (after payment of any amounts payable
to the Administrative Agent pursuant to Section 10.04 of the Credit Agreement
and Section 6.2 below) in whole or in part by the Administrative Agent for the
ratable benefit of the Secured Parties against all or any part of the Secured
Obligations in accordance with Section 8.03 of the Credit Agreement. Any surplus
of such cash or cash proceeds held by the Administrative Agent and remaining
after payment in full of all the Secured Obligations, and the termination of all
Commitments, shall be paid over to the Grantors or to whomsoever may be lawfully
entitled to receive such surplus.

 

14

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(c) The Administrative Agent may exercise any and all rights and remedies of
each Grantor under or in connection with the Collateral, including the right to
sue upon or otherwise collect, extend the time for payment of, modify or amend
the terms of, compromise or settle for cash, credit, or otherwise upon any
terms, grant other indulgences, extensions, renewals, compositions, or releases,
and take or omit to take any other action with respect to the Collateral, any
security therefor, any agreement relating thereto, any insurance applicable
thereto, or any Person liable directly or indirectly in connection with any of
the foregoing, without discharging or otherwise affecting the liability of any
Grantor for the Obligations or under this Agreement or any other Loan Document
or otherwise in respect of the Collateral, including any and all rights of such
Grantor to demand or otherwise require payment of any amount under, or
performance of any provision of, any Collateral.

 

The Administrative Agent shall give the Grantors 10 days’ written notice (which
each Grantor agrees is reasonable notice within the meaning of Section 9-612 of
the UCC) of the Administrative Agent’s intention to make any sale of Collateral.
Such notice, in the case of a public sale, shall state the time and place for
such sale and, in the case of a sale at a broker’s board or on a securities
exchange, shall state the board or exchange at which such sale is to be made and
the day on which the Collateral, or portion thereof, will first be offered for
sale at such board or exchange. Any such public sale shall be held at such time
or times within ordinary business hours and at such place or places as the
Administrative Agent may fix and state in the notice (if any) of such sale. At
any such sale, the Collateral, or portion thereof, to be sold may be sold in one
lot as an entirety or in separate parcels, as the Administrative Agent may (in
its sole and absolute discretion) determine. The Administrative Agent shall not
be obligated to make any sale of any Collateral if it shall determine not to do
so, regardless of the fact that notice of sale of such Collateral shall have
been given. The Administrative 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. In case any sale of all or any part of the Collateral is made on
credit or for future delivery, the Collateral so sold may be retained by the
Administrative Agent until the sale price is paid by the purchaser or purchasers
thereof, but the Administrative Agent shall not incur any liability in case any
such purchaser or purchasers shall fail to take up and pay for the Collateral so
sold and, in case of any such failure, such Collateral may be sold again upon
like notice. At any public (or, to the extent permitted by Law, private) sale
made pursuant to this Section, any Secured Party may bid for or purchase, free
(to the extent permitted by Law) from any right of redemption, stay, valuation
or appraisal on the part of any Grantor (all said rights being also hereby
waived and released to the extent permitted by Law), 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 such Secured Party from any Grantor as a credit
against the purchase price, and such Secured Party may upon compliance with the
terms of sale, hold, retain and dispose of such property without further
accountability to any Grantor therefor. The Secured Obligations shall not be
affected by any failure of the Administrative Agent to take any steps to perfect
the security interest granted hereunder or to collect or realize upon the
Collateral, nor shall loss or damage to the Collateral release any Grantor from
any of its Secured Obligations.

 

15

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6.2 Indemnity and Expenses. Each Grantor agrees to jointly and severally
indemnify and hold harmless the Administrative Agent (and any sub-agent
thereof), each other Secured Party, and each Related Party of any of the
foregoing Persons (each, such Person being called an “Indemnitee”) against, and
hold each harmless from, any and all losses, claims, damages, liabilities, and
related expenses (including the fees, charges and disbursements of any counsel
for any Indemnitee) incurred by any Indemnitee or asserted against any
Indemnitee by a third party or by the Borrower or any other Loan Party arising
out of, in connection with, or as a result of, this Agreement and the other Loan
Documents (including enforcement of this Agreement and other Loan Documents;
provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities and 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 a Loan Party
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if such Loan Party has obtained a
final and nonappealable judgment in its favor of such claim as determined by a
court of competent jurisdiction. Each Grantor will upon demand pay to the
Administrative Agent the amount of any and all reasonable expenses, including
the reasonable fees and disbursements of any experts and agents, which the
Administrative Agent may incur in connection with the following:

 

(a) the administration of this Agreement and the other Loan Documents;

 

(b) the custody, preservation, use or operation of, or the sale of, collection
from, or other realization upon, any of the Collateral;

 

(c) the exercise or enforcement of any of the rights of the Administrative Agent
or the Secured Parties hereunder; or

 

(d) the failure by any Grantor to perform or observe any of the provisions
hereof.

 

The agreements in this Section 6.2 shall survive the termination of the
Commitments and the repayment, satisfaction or discharge of the other
Obligations.

 

6.3 Waivers. Each Grantor hereby waives any right, to the extent permitted by
applicable Law, to receive prior notice of or a judicial or other hearing with
respect to any action or prejudgment remedy or proceeding by the Administrative
Agent to take possession, exercise control over or dispose of any item of
Collateral where such action is permitted under the terms of this Agreement or
any other Loan Document or by applicable Laws or the time, place or terms of
sale in connection with the exercise of the Administrative Agent’s rights
hereunder. Each Grantor waives, to the extent permitted by applicable Laws, any
bonds, security or sureties required by the Administrative Agent with respect to
any of the Collateral. Each Grantor also waives any damages (direct,
consequential or otherwise) occasioned by the enforcement of the Administrative
Agent’s rights under this Agreement or any other Loan Document, including, the
taking of possession of any Collateral or the giving of notice to any Account
Debtor or the collection of any Receivables Collateral, all to the extent that
such waiver is permitted by applicable Laws. Each Grantor also consents that the
Administrative Agent, in connection with the enforcement of the Administrative
Agent’s rights and remedies under this Agreement, may enter upon any premises
owned by or leased to it without obligations to pay rent or for use and

 

16

--------------------------------------------------------------------------------

occupancy, through self-help, without judicial process and without having first
obtained an order of any court. These waivers and all other waivers provided for
in this Agreement and the other Loan Documents have been negotiated by the
parties and each Grantor acknowledges that it has been represented by counsel of
its own choice and has consulted such counsel with respect to its rights
hereunder.

 

ARTICLE VII

MISCELLANEOUS PROVISIONS

 

7.1 Loan Document. (a) This Agreement is a Loan Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be
construed, administered and applied in accordance with the terms and provisions
thereof.

 

(b) Concurrently herewith certain of the Grantors are executing and delivering
the Pledge Agreement pursuant to which such Grantor is pledging all the
certificated Investment Property and Instruments of such Grantor. Such pledges
shall be governed by the terms of the Pledge Agreement and not by this
Agreement.

 

7.2 Amendments, etc.; Additional Grantors; Successors and Assigns.

 

(a) No amendment to or waiver of any provision of this Agreement nor consent to
any departure by any Grantor herefrom, shall in any event be effective unless
the same shall be in writing and signed by the Administrative Agent and, with
respect to any such amendment, by the Grantors, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

 

(b) Upon the execution and delivery by any Person of a Joinder Agreement,
(i) such Person shall be referred to as an “Additional Grantor” and shall be and
become a Grantor, and each reference in this Agreement to “Grantor” shall also
mean and be a reference to such Additional Grantor and (ii) the schedule
supplements attached to each Security Agreement shall be incorporated into and
become a part of and supplement Schedule I hereto, as appropriate, and the
Administrative Agent may attach such schedule supplements to such Schedule, and
each reference to such Schedule shall mean and be a reference to such Schedule,
as supplemented pursuant hereto.

 

(c) This Agreement shall be binding upon each Grantor and its successors,
transferees and assigns and shall inure to the benefit of the Administrative
Agent and each other Secured Party and their respective successors, transferees
and assigns; provided, however, that no Grantor may assign its obligations
hereunder without the prior written consent of the Administrative Agent.

 

7.3 Addresses for Notices. All notices and other communications provided for
hereunder shall be in writing and mailed, delivered or transmitted by telecopier
to each party hereto at the address set forth in Section 10.02 of the Credit
Agreement (with any notice to a Grantor other than the Borrower being delivered
to such Grantor in care of the Borrower). All such notices and other
communications shall be deemed to be given or made at the times provided in
Section 10.02 of the Credit Agreement.

 

17

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7.4 Section Captions. Section captions used in this Agreement are for
convenience of reference only, and shall not affect the construction of this
Agreement.

 

7.5 Severability. If any provision of this Agreement is held to be illegal,
invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

7.6 Counterparts. This Agreement may be executed in counterparts (and by
different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.

 

7.7 Governing Law, Etc. (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
AND PERFORMED ENTIRELY WITHIN SUCH STATE, EXCEPT TO THE EXTENT THAT THE VALIDITY
OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN
RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION
OTHER THAN THE STATE OF NEW YORK; PROVIDED THAT THE ADMINISTRATIVE AGENT SHALL
RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

 

(b) EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE 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; PROVIDED,
HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER
PROPERTY SHALL BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS
OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. 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 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

 

18

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ADMINISTRATIVE AGENT OR ANY OTHER SECURED PARTY HERETO MAY OTHERWISE HAVE TO
BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST ANY GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

 

(c) EACH GRANTOR 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 (b) 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.

 

(d) EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 7.3. NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

 

7.8 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.

 

7.9 Entire Agreement. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES OR BY PRIOR
OR CONTEMPORANEOUS WRITTEN AGREEMENTS. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
AMONG THE PARTIES.

 

[Signature Page Follows]

 

19

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

 

FIRST ADVANTAGE CORPORATION, a
Delaware corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   CEO

AMERICAN DRIVING RECORDS, INC.,

a California corporation

By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman FIRST ADVANTAGE BACKGROUND SERVICES CORP., a
Florida corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman FIRST ADVANTAGE COREFACTS, LLC, a Virginia
limited liability company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman

 

S-1

--------------------------------------------------------------------------------

FIRST ADVANTAGE ENTERPRISE
SCREENING CORPORATION, a Florida corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman FIRST ADVANTAGE GOVERNMENT SERVICES LLC, a
Delaware limited liability company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President FIRST ADVANTAGE OCCUPATIONAL HEALTH
SERVICES CORP., a Florida corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman

FIRST ADVANTAGE PUBLIC RECORDS,

LLC,

a Delaware limited liability company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman FIRST ADVANTAGE SAFERENT, INC., a Delaware
corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman

 

S-2

--------------------------------------------------------------------------------

FIRST ADVANTAGE TAX CONSULTING SERVICES, LLC, a Delaware limited liability
company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman FIRST AMERICAN INDIAN HOLDINGS LLC, a
Delaware limited liability company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President JENARK BUSINESS SYSTEMS, INC., a Maryland
corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman NATIONAL DATA REGISTRY, LLC, a Delaware
limited liability company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman NATIONAL BACKGROUND DATA, LLC, a Delaware
limited liability company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman

 

S-3

--------------------------------------------------------------------------------

OMEGA INSURANCE SERVICES, INC., a Florida corporation

By:

 

/s/ Richard. J. Taffet

--------------------------------------------------------------------------------

Name:

  Richard J. Taffet

Title:

 

President

PEA SOUP MERGER CORPORATION, a Florida corporation

By:

 

/s/ John Long

--------------------------------------------------------------------------------

Name:

  John Long

Title:

 

President

PROUDFOOT REPORTS INCORPORATED, a New York corporation

By:

 

/s/ John Long

--------------------------------------------------------------------------------

Name:

  John Long

Title:

 

Chairman

QUANTITATIVE RISK SOLUTIONS LLC, an Arizona limited liability company

By:

 

/s/ John Long

--------------------------------------------------------------------------------

Name:

  John Long

Title:

 

Chairman

REALEUM, INC., a Delaware corporation

By:

 

/s/ John Long

--------------------------------------------------------------------------------

Name:

  John Long

Title:

 

Chairman

 

S-4

--------------------------------------------------------------------------------

US SEARCH.COM INC., a Delaware corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman MULTIFAMILY COMMUNITY INSURANCE AGENCY,
INC., a Maryland corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   Chairman FIRST AMERICAN MEMBERSHIP SERVICES, INC., a
California corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President FIRST AMERICAN CREDCO OF PUERTO RICO, INC.,
a Delaware corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President CIG INVESTMENTS, LLC, a Delaware limited
liability company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President

 

S-5

--------------------------------------------------------------------------------

NORTH AMERICAN CREDCO, INC., a Delaware corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President

FIRST AMERICAN CREDIT

MANAGEMENT SOLUTIONS, INC.,

a Delaware corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President CMSI CREDIT SERVICES, INC., a Maryland
corporation By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President CREDITREPORTPLUS, LLC, a Maryland limited
liability company By:  

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President BAR NONE, INC., a Delaware corporation By:
 

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President TELETRACK, INC., a Georgia corporation By:
 

/s/ John Long

--------------------------------------------------------------------------------

Name:   John Long Title:   President

 

S-6

--------------------------------------------------------------------------------

FIRST ADVANTAGE CIG, LLC a Delaware limited liability company By:  

/s / John Lamson

--------------------------------------------------------------------------------

Name:   John Lamson Title:   CFO

 

S-7

--------------------------------------------------------------------------------

ACKNOWLEDGED AND ACCEPTED: BANK OF AMERICA, N.A., as Administrative Agent By:  

/s/ Cameron Cardozo

--------------------------------------------------------------------------------

Name:   Cameron Cardozo Title:   Senior Vice President

--------------------------------------------------------------------------------

Schedule I of the Security Agreement. State of Organization, Trade Names, Etc.

 

ORGANIZATIONAL CHART

Of

FIRST ADVANTAGE CORPORATION

a Delaware corporation

 

     State of
Organization

--------------------------------------------------------------------------------

   Organization
number

--------------------------------------------------------------------------------

  

Address - Principal Place of

Biz, Chief Executive Office,

location of collateral records or chattel

--------------------------------------------------------------------------------

  

Current Trade Names

--------------------------------------------------------------------------------

First Advantage Corporation

   DE    3599220   

1 Progress Plaza, Suite 2400 St. Petersburg, FL 33701

   First Advantage Holding, Inc. (Florida only)

American Driving Records, Inc.

   CA    C1458568   

2860 Golden Tailings Court Rancho Cordova, CA 95670

  

First Advantage Transportation Services

First Advantage ADR

First Advantage Background Services Corp

   FL    K17518   

100 Carillon Parkway

St. Petersburg, FL 33716

   N/A

First Advantage CIG, LLC

   DE    4004440   

1 Progress Plaza, Suite 2400 St. Petersburg, FL 33716

   N/A

First Advantage CoreFacts, LLC

   VA    S053833-2   

14030 Thunderbolt Place, Suite 700 Chantilly, VA

   N/A

First Advantage Enterprise Screening Corporation

   DE    3719779   

100 Carillon Parkway

St. Petersburg, FL 3371 6

   N/A

First Advantage Government Services, LLC

   DE    3945830   

1 Progress Plaza, Suite 2400 St. Petersburg, FL 33701

   N/A

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     State of
Organization

--------------------------------------------------------------------------------

   Organization
number

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Address - Principal Place of

Biz, Chief Executive Office,

location of collateral records or chattel

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   Current Trade Names

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First Advantage Occupational Health Services Corp.

   FL    K89297    100 Carillon Parkway
St. Petersburg, FL 33716    N/A

First Advantage Public Records, LLC

   DE    3857057    200 SW 8th Street, Suite A
Ocala, FL 34474    N/A

First Advantage SafeRent, Inc.

   DE    3040669    7301 Calhoun Place, Suite 300
Rockville, MD 20855    N/A

First Advantage Tax Consulting Services, LLC

   DE    3791481    8945 North Meridian, Suite 200
Indianapolis, IN 46260    ITAX Group
The Alameda Company
CIC Enterprises

First American Indian Holdings LLC

   DE    3516348    1 Progress Plaza, Suite 2400
St. Petersburg, FL 33701    N/A

Jenark Business Systems, Inc.

   MD    D02447993    849-F Quince Orchard
BoulevardGaithersburg, MD 20878    N/A

National Data Registry, LLC

   DE    3856728    200 SW 8th Street, Suite A
Ocala, FL 34474    N/A

National Background Data, LLC

   DE    3855608    200 SW 8th Street, Suite A
Ocala, FL 34474    N/A

Omega Insurance Services, Inc.

   FL    P96000073362    100 Carillon Parkway
St. Petersburg, FL 3371 6    First Advantage
Investigative Services

Pea Soup Merger Corporation

   FL    P040000120550    1 Progress Plaza, Suite 2400
St. Petersburg, FL 33701    Data Recovery Services

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     State of
Organization

--------------------------------------------------------------------------------

   Organization
number

--------------------------------------------------------------------------------

  

Address - Principal Place of

Biz, Chief Executive Office,

location of collateral records or chattel

--------------------------------------------------------------------------------

   Current Trade Names

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Proudfoot Reports Incorporated

   NY    NY Does not
issue control
numbers   

58 SouthService Drive, Suite 210

Melville, NY 11747

   N/A

Quantitative Risk Solutions LLC dba First Advantage Supply Security Division

   AZ    L-1 050960-5   

4801 East Washington Street, Suite 200

Phoenix, AZ 85012

   First Advantage Supply
Security Division

Realeum, Inc.

   DE    3242700   

7301 Calhoun Place, Suite 300

Rockville, MD 20855

   N/A

US Search.com Inc.

   DE    3024757   

600 Corporate Pointe, Suite 210

Culver City, CA 90230

   N/A

Multifamily Community Insurance Agency, Inc.

   MD    D06515688   

7301 Calhoun Place, Suite 300

Rockville, MD 20855

   N/A

First American Membership Services, Inc.

   CA    C2335347   

12395 First American Way Poway,

CA 93064

   N/A

First American Credco of Puerto Rico, Inc.

   DE    3483296   

248 Franklin D. Roosevelt Avenue

Hato Rey, Puerto Rico

   N/A

CIG Investments, LLC

   DE    3658812   

12395 First American Way Poway,

CA 93064

   N/A

North American Credco, Inc.

   DE    3707676   

12395 First American Way Poway,

CA 93064

   N/A

First American Credit Management Solutions, Inc.

   DE    2682170   

8671 Robert Fulton Drive, Suite 2

Columbia, MD

   N/A

CMS! Credit Services, Inc.

   MD    D04572541   

8671 Robert Fulton Drive, Suite 2

Columbia, MD

   N/A

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     State of
Organization

--------------------------------------------------------------------------------

   Organization
number

--------------------------------------------------------------------------------

  

Address - Principal Place of

Biz, Chief Executive Office,

location of collateral records or chattel

--------------------------------------------------------------------------------

  

Current Trade Names

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CreditReportsPlus, LLC

   MD    W10071546   

8671 Robert Fulton Drive, Suite 2

Columbia , MD

  

N/A

Bar None, Inc.

   DE    3074716   

6800 Koll Center Parkway Pleasanton, CA 94566

  

N/A

Tele-Track, Inc.

   GA    J001062   

155 Technology Parkway Norcross, GA 30092

  

N/A