Exhibit 10.27

Execution Version

 

Guarantee and Collateral Agreement

Dated as of March 3, 2020,

made by

BENEFITFOCUS, INC.
BENEFITFOCUS.COM, INC.
BENEFITSTORE, INC.

 

and the other Grantors that may become party hereto,

in favor of

SILICON VALLEY BANK,
as Administrative Agent

 

 

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

Table of Contents

Page

 

 

SECTION 1.     DEFINED
TERMS...............................................................................................................1

1.1        Definitions.........................................................................................................................................1

1.2        Other Definitional
Provisions............................................................................................................4

 

SECTION 2.    
GUARANTEE......................................................................................................................5

2.1        Guarantee...........................................................................................................................................5

2.2        Right of
Contribution.........................................................................................................................6

2.3        No
Subrogation..................................................................................................................................6

2.4        Amendments, etc. with respect to the Secured
Obligations...............................................................6

2.5        Guarantee Absolute and Unconditional; Guarantor Waivers; Guarantor
Consents...........................6

2.6        Reinstatement.....................................................................................................................................9

2.7        Payments............................................................................................................................................9

 

SECTION 3.     GRANT OF SECURITY
INTEREST...................................................................................9

3.1        Grant of Security
Interests..................................................................................................................9

3.2        Grantors Remains
Liable..................................................................................................................10

3.3        Perfection and
Priority......................................................................................................................10

 

SECTION 4.     REPRESENTATIONS AND
WARRANTIES....................................................................12

4.1        Title; No Other
Liens........................................................................................................................12

4.2        Perfected
Liens..................................................................................................................................12

4.3        Jurisdiction of Organization; Chief Executive Office and Locations of
Books................................12

4.4        Inventory and
Equipment...................................................................................................................13

4.5        Farm
Products....................................................................................................................................13

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

4.6        Pledged
Collateral..............................................................................................................................13

4.7        Investment
Accounts..........................................................................................................................13

4.8        Receivables.........................................................................................................................................14

4.9        Intellectual
Property...........................................................................................................................14

4.10      Instruments.........................................................................................................................................14

4.11      Letter of Credit
Rights........................................................................................................................14

4.12      Commercial Tort
Claims....................................................................................................................14

 

SECTION 5.    
COVENANTS.......................................................................................................................14

5.1        Delivery of Instruments, Certificated Securities and Chattel
Paper...................................................14

5.2        Maintenance of
Insurance...................................................................................................................15

5.3        Maintenance of Perfected Security Interest; Further
Documentation.................................................15

5.4        Changes in Locations, Name,
Etc.......................................................................................................15

5.5        Notices................................................................................................................................................16

5.6        Instruments; Investment
Property.......................................................................................................16

5.7        Securities Accounts; Deposit
Accounts..............................................................................................17

5.8        Intellectual
Property............................................................................................................................17

5.9        Receivables.........................................................................................................................................18

5.10      Defense of
Collateral..........................................................................................................................19

5.11      Preservation of
Collateral...................................................................................................................19

5.12      Compliance with Laws,
Etc................................................................................................................19

5.13      Location of Books and Chief Executive
Office..................................................................................19

5.14      Location of
Collateral.........................................................................................................................19

5.15      Maintenance of
Records.....................................................................................................................19

5.16      Disposition of
Collateral.....................................................................................................................19

5.17      Liens...................................................................................................................................................19

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

5.18      Expenses.............................................................................................................................................19

5.19      Leased Premises; Collateral Held by Warehouseman, Bailee,
Etc.....................................................19

5.20      Chattel
Paper.......................................................................................................................................20

5.21      Commercial Tort
Claims.....................................................................................................................20

5.22      Letter-of-Credit
Rights........................................................................................................................20

5.23      Shareholder Agreements and Other
Agreements................................................................................20

 

SECTION 6.     REMEDIAL
PROVISIONS..................................................................................................20

6.1        Certain Matters Relating to
Receivables.............................................................................................20

6.2        Communications with Obligors; Grantors Remain
Liable..................................................................21

6.3        Investment
Property............................................................................................................................21

6.4        Proceeds to be Turned Over To Administrative
Agent.......................................................................22

6.5        Application of
Proceeds......................................................................................................................23

6.6        Code and Other
Remedies...................................................................................................................23

6.7        Registration
Rights..............................................................................................................................23

6.8        Intellectual Property
License...............................................................................................................24

6.9        Deficiency...........................................................................................................................................24

 

SECTION 7.     THE ADMINISTRATIVE
AGENT......................................................................................24

7.1        Administrative Agent’s Appointment as Attorney-in-Fact,
etc..........................................................25

7.2        Duty of Administrative
Agent............................................................................................................26

7.3        Authority of Administrative
Agent.....................................................................................................26

 

SECTION 8.    
MISCELLANEOUS..............................................................................................................26

8.1        Amendments in
Writing......................................................................................................................27

8.2        Notices.................................................................................................................................................27

8.3        No Waiver by Course of Conduct; Cumulative
Remedies..................................................................27

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

8.4        Enforcement Expenses;
Indemnification.............................................................................................27

8.5        Successors and
Assigns.......................................................................................................................27

8.6        Set
Off.................................................................................................................................................28

8.7        Counterparts........................................................................................................................................28

8.8        Severability.........................................................................................................................................28

8.9        Section
Headings.................................................................................................................................28

8.10      Integration...........................................................................................................................................28

8.11      GOVERNING
LAW.........................................................................................................................28

8.12      Submission to Jurisdiction;
Waivers...................................................................................................28

8.13      Acknowledgements.............................................................................................................................29

8.14      Additional
Grantors.............................................................................................................................29

8.15      Releases...............................................................................................................................................29

8.16      WAIVER OF JURY
TRIAL............................................................................................................30

 

 

SCHEDULES

Schedule 1         Notice Addresses

Schedule 2         Investment Property

Schedule 3         Perfection Matters

Schedule 4         Jurisdictions of Organization and Chief Executive Offices,
etc.

Schedule 5         Equipment and Inventory Locations

Schedule 6         Intellectual Property

Schedule 7         Letter of Credit Rights

Schedule 8         Commercial Tort Claims

 

ANNEXES

Annex 1         Form of Assumption Agreement

Annex 2         Form of Pledge Supplement

 

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

GUARANTEE AND COLLATERAL AGREEMENT

This GUARANTEE AND COLLATERAL AGREEMENT (this “Agreement”), dated as of March 3,
2020 is made by each of the signatories hereto (together with any other entity
that may become a party hereto as provided herein, each a “Grantor” and,
collectively, the “Grantors”), in favor of SILICON VALLEY BANK, as
administrative agent and collateral agent (together with its successors, in such
capacities, the “Administrative Agent”) for the banks and other financial
institutions or entities (each a “Lender” and, collectively, the “Lenders”) from
time to time party to that certain Credit Agreement, dated as of the date hereof
(as amended, amended and restated, supplemented, restructured or otherwise
modified, renewed or replaced from time to time, the “Credit Agreement”), among
BENEFITFOCUS, INC., a Delaware corporation (“Parent”), BENEFITFOCUS.COM, INC., a
South Carolina corporation (“Benefitfocus.com”), and BENEFITSTORE, INC., a South
Carolina corporation (“BenefitStore”, and together with Parent and
Benefitfocus.com, each individually, a “Borrower”, and collectively, and jointly
and severally, the “Borrowers”), the Lenders party thereto, and the
Administrative Agent.

INTRODUCTORY STATEMENTS

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

WHEREAS, the proceeds of the extensions of credit under the Credit Agreement
will be used in part to enable the Borrowers to make valuable transfers to one
or more of the other Grantors (if any) in connection with the operation of their
respective business;

WHEREAS, certain of the Qualified Counterparties may enter into Specified Swap
Agreements with the Borrower;

WHEREAS, the Borrowers and the other Grantors (if any) are engaged in related
businesses, and each Grantor derives substantial direct and indirect benefit
from the extensions of credit under the Credit Agreement and from the Specified
Swap Agreements; and

WHEREAS, it is a condition precedent to closing the transactions under the
Credit Agreement that the Grantors shall have executed and delivered this
Agreement in favor of the Administrative Agent for the ratable benefit of the
Secured Parties.

NOW, THEREFORE, in consideration of the above premises, the parties hereto
hereby agree as follows:

SECTION 1.         Defined Terms.

1.1         Definitions.

(a)        Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the respective meanings given to such terms
in the Credit Agreement, and the following terms are used herein as defined in
the UCC:  Account, Certificated Security, Chattel Paper, Commercial Tort Claim,
Commodity Account, Document, Electronic Chattel Paper, Equipment, Farm Products,
Fixtures, General Intangible, Goods, Instrument, Inventory, Letter-of-Credit
Rights, Money, Securities Account and Supporting Obligation.

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

“Administrative Agent”: as defined in the preamble hereto.

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

“Agreement”:  as defined in the preamble hereto.

“Books”: all books, records and other written, electronic or other documentation
in whatever form maintained now or hereafter by or for any Grantor in connection
with the ownership of its assets or the conduct of its business or evidencing or
containing information relating to the Collateral, including:  (a) ledgers;
(b) records indicating, summarizing, or evidencing such Grantor’s assets
(including Inventory and Rights to Payment), business operations or financial
condition; (c) computer programs and software; (d) computer discs, tapes, files,
manuals, spreadsheets; (e) computer printouts and output of whatever kind;
(f) any other computer prepared or electronically stored, collected or reported
information and equipment of any kind; and (g) any and all other rights now or
hereafter arising out of any contract or agreement between such Grantor and any
service bureau, computer or data processing company or other Person charged with
preparing or maintaining any of such Grantor’s books or records or with credit
reporting, including with regard to any of such Grantor’s Accounts.

“Borrower” and “Borrowers”:  as defined in the preamble hereto.

“Collateral”: as defined in Section 3.1.

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

“Commodity Exchange Act”:  the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as
amended from time to time, and any successor statute.

“Copyright License”: any written agreement which (a) names a Grantor as licensor
or licensee, and (b) grants any right under any Copyright to such Grantor,
including any rights to manufacture, distribute, exploit and sell materials
derived from any Copyright (including those listed on Schedule 6).

“Copyrights”:  (a) all copyrights arising under the laws of the United States,
any other country or any political subdivision thereof, together with the
underlying works of authorship (including titles), whether registered or
unregistered and whether published or unpublished (including those listed on
Schedule 6), all computer programs, computer databases, computer program flow
diagrams, source codes, object codes and all tangible property embodying or
incorporating any copyrights, all registrations and recordings thereof, and all
applications in connection therewith, including, without limitation, all
registrations, recordings and applications in the U.S. Copyright Office, and (b)
the right to obtain any renewals thereof.

“Deposit Account”:  as defined in the Uniform Commercial Code of any applicable
jurisdiction and, in any event, including any demand, time, savings, passbook or
like account maintained with a depositary institution.

“Discharge of Obligations”: as defined in the Credit Agreement.

“Excluded Assets”:  collectively,

(a)        margin stock (within the meaning of Regulation U issued by the Board)
to the extent the creation of a security interest therein in favor of the
Administrative Agent (for the ratable benefit of the Secured Parties) will
result in a violation of Regulation U issued by the Board;

(b)        motor vehicles and other equipment covered by certificates of title;
and

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

(c)        capital stock of any Excluded Foreign Subsidiary (other than Capital
Stock representing up to 66% of the total outstanding voting Capital Stock of
any Excluded Foreign Subsidiary); provided, however, that any Proceeds,
substitutions or replacements of any Excluded Assets shall not be Excluded
Assets (unless such Proceeds, substitutions or replacements are otherwise, in
and of themselves, Excluded Assets).

“Excluded Swap Obligation”: with respect to any Grantor, any obligation to pay
or perform under any Specified Swap Agreement, if and to the extent that all or
a portion of the guarantee of such Grantor of, or the grant by such Grantor of a
security interest to secure, such obligations under a Specified Swap Agreement
(or any guarantee thereof) is or becomes illegal under the Commodity Exchange
Act or any rule, regulation or order of the Commodity Futures Trading Commission
(or the application or official interpretation of any thereof) by virtue of such
Grantor’s failure for any reason to constitute an “eligible contract
participant” as defined in the Commodity Exchange Act and the regulations
thereunder at the time the guarantee of such Grantor or the grant of such
security interest becomes effective with respect to such obligations under a
Specified Swap Agreement or such guarantee.  If any obligation to pay or perform
under any Specified Swap Agreement arises under a master agreement governing
more than one swap, such exclusion shall apply only to the portion of such
obligations under a Specified Swap Agreement that is attributable to swaps for
which such guarantee or security interest is or becomes illegal.

“Fraudulent Transfer Laws”: as defined in Section 2.1(f).

“Grantor”: as defined in the preamble hereto.

“Guarantor”: as defined in Section 2.1(a).

“Investment Account”: any of a Securities Account, a Commodity Account or a
Deposit Account.

“Investment Property”: the collective reference to (a) all “investment property”
as such term is defined in Section 9-102(a)(49) of the UCC (other than any
voting Capital Stock or other ownership interests of an Excluded Foreign
Subsidiary excluded from the definition of “Pledged Stock”), and (b) whether or
not constituting “investment property” as so defined, all Pledged Notes and all
Pledged Collateral.

“Issuer”: with respect to any Investment Property, the issuer of such Investment
Property.

“Patent License”: any written agreement which (a) names a Grantor as licensor or
licensee and (b) grants to such Grantor any right under a Patent, including the
right to manufacture, use or sell any invention covered in whole or in part by
such Patent, including any such agreements referred to on Schedule 6.

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

“Pledged Collateral”: (a) any and all Pledged Stock; (b)  all other Investment
Property of any Grantor; (c) all warrants, options or other rights entitling any
Grantor to acquire any interest in Capital Stock or other securities of the
direct or indirect Subsidiaries of such Grantor or of any other Person; (d) all
Instruments; (e) all securities, property, interest, dividends and other
payments and distributions issued as an addition to, in redemption of, in
renewal or exchange for, in substitution or upon conversion of, or

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

otherwise on account of, any of the foregoing; (f) all certificates and
instruments now or hereafter representing or evidencing any of the foregoing;
(g) all rights, interests and claims with respect to the foregoing, including
under any and all related agreements, instruments and other documents; and
(h) all cash and non-cash proceeds of any of the foregoing, in each case whether
presently existing or owned or hereafter arising or acquired and wherever
located, and as from time to time received or receivable by, or otherwise paid
or distributed to or acquired by, any Grantor.

“Pledged Collateral Agreements”: as defined in Section 5.23.

“Pledged Notes”: all promissory notes listed on Schedule 2 and all other
promissory notes issued to or held by any Grantor.

“Pledged Stock”: all of the issued and outstanding shares of Capital Stock,
whether certificated or uncertificated, of any Grantor’s direct Subsidiaries now
or hereafter owned by any such Grantor and including the Capital Stock listed on
Schedule 2 hereof (as amended or supplemented from time to time); provided that
in no event shall Pledged Stock include any Excluded Assets.

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

“Receivable”: any right to payment for goods sold or leased or for services
rendered, whether or not such right is evidenced by an Instrument or Chattel
Paper and whether or not it has been earned by performance (including any
Account).

“Rights to Payment”: any and all of any Grantor’s Accounts and any and all of
any Grantor’s rights and claims to the payment or receipt of money or other
forms of consideration of any kind in, to and under or with respect to its
Chattel Paper, Documents, General Intangibles, Instruments, Investment Property,
Letter-of-Credit Rights, Proceeds and Supporting Obligations.

“Secured Obligations”: collectively, the “Obligations”, as such term is defined
in the Credit Agreement; provided, however, that “Secured Obligations” shall not
include any Excluded Swap Obligation.

“Secured Parties”: as defined in the Credit Agreement.

“Trademark License”: any written agreement which (a) names a Grantor as licensor
or licensee and (b) grants to such Grantor any right to use any Trademark,
including any such agreement referred to on Schedule 6.

“Trademarks”: (a) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos,
Internet domain names and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the U.S. Patent and Trademark Office or in any similar
office or agency of the United States, any State thereof or any other country or
any political subdivision thereof, or otherwise, and all common-law rights
related thereto, including, without limitation, any of the foregoing referred to
on Schedule 6, and (b) the right to obtain all renewals thereof.

1.2        Other Definitional Provisions. The rules of interpretation set forth
in Section 1.2 of the Credit Agreement are by this reference incorporated
herein, mutatis mutandis, as if set forth herein in full.

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

SECTION 2.        Guarantee.

2.1        Guarantee.  

(a)        Each Borrower, together with each Subsidiary of each Borrower who
accedes to this Agreement as a Grantor after the date hereof pursuant to
Section 6.12 of the Credit Agreement (each a “Guarantor” and, collectively, the
“Guarantors”), hereby, jointly and severally, unconditionally and irrevocably,
guarantees to the Administrative Agent, for the ratable benefit of the Secured
Parties and their respective successors, permitted indorsees, permitted
transferees and permitted assigns, the prompt and complete payment and
performance by the Borrowers and the other Loan Parties when due (whether at the
stated maturity, by acceleration or otherwise) of the Secured Obligations.  In
furtherance of the foregoing, and without limiting the generality thereof, each
Guarantor agrees as follows:

(i)        each Guarantor’s liability hereunder shall be the immediate, direct,
and primary obligation of such Guarantor and shall not be contingent upon the
Administrative Agent’s or any Secured Party’s exercise or enforcement of any
remedy it or they may have against any Borrower, any other Guarantor, any other
Person, or all or any portion of the Collateral; and

(ii)        the Administrative Agent may enforce this guaranty notwithstanding
the existence of any dispute between any of the Secured Parties and the
Borrowers or any other Guarantor with respect to the existence of any Event of
Default.

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

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

(d)        The guarantee contained in this Section 2 shall remain in full force
and effect until the Discharge of Obligations, notwithstanding that from time to
time during the term of the Credit Agreement the outstanding amount of the
Secured Obligations may be zero.

(e)        No payment made by the Borrowers, any Guarantor, any other guarantor
or any other Person or received or collected by the Administrative Agent or any
other Secured Party from the Borrowers, any Guarantor, any other guarantor or
any other Person by virtue of any action or proceeding or any setoff or
appropriation or application at any time or from time to time in reduction of or
in payment of the Secured Obligations shall be deemed to modify, reduce, release
or otherwise affect the liability of any Guarantor hereunder which shall,
notwithstanding any such payment (other than any payment made by such Guarantor
in respect of the Secured Obligations or any payment received or collected from
such Guarantor in respect of the Secured Obligations), remain liable for the
Secured Obligations up to the maximum liability of such Guarantor hereunder in
accordance with Section 2.1(b) above until the Discharge of Obligations.

(f)        Any term or provision of this Agreement or any other Loan Document to
the contrary notwithstanding, the maximum aggregate amount for which any
Guarantor shall be liable hereunder shall not exceed the maximum amount for
which such Guarantor can be liable without rendering this Agreement or any other
Loan Document, as it relates to such Guarantor, subject to avoidance under

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

applicable Requirements of Law relating to fraudulent conveyance or fraudulent
transfer (including the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act and Section 548 of Title 11 of the United States Code or
any applicable provisions of comparable Requirements of Law) (collectively,
“Fraudulent Transfer Laws”).  Any analysis of the provisions of this Agreement
for purposes of Fraudulent Transfer Laws shall take into account the right of
contribution established in Section 2.2, and, for purposes of such analysis,
give effect to any discharge of intercompany debt as a result of any payment
made under the Agreement.

2.2        Right of Contribution.  If in connection with any payment made by any
Guarantor hereunder any rights of contribution arise in favor of such Guarantor
against one or more other Guarantors, such rights of contribution shall be
subject to the terms and conditions of Section 2.3.  The provisions of this
Section 2.2 shall in no respect limit the obligations and liabilities of any
Guarantor to the Administrative Agent and the other Secured Parties, and each
Guarantor shall remain liable to the Administrative Agent and the other Secured
Parties for the full amount guaranteed by such Guarantor hereunder.

2.3        No Subrogation.  Notwithstanding any payment made by any Guarantor
hereunder or any setoff or application of funds of any Guarantor by the
Administrative Agent or any other Secured Party, no Guarantor shall be entitled
to be subrogated to any of the rights of the Administrative Agent or any other
Secured Party against the Borrowers or any other Guarantor or any Collateral or
guarantee or right of offset held by the Administrative Agent or any other
Secured Party for the payment of the Secured Obligations, nor shall any
Guarantor seek or be entitled to seek any contribution or reimbursement from the
Borrowers or any other Guarantor in respect of payments made by such Guarantor
hereunder, in each case, until the Discharge of Obligations.  If any amount
shall be paid to any Guarantor on account of such subrogation rights at any time
prior to the Discharge of Obligations, such amount shall be held by such
Guarantor in trust for the Administrative Agent and the other Secured Parties,
shall be segregated from other funds of such Guarantor, and shall, forthwith
upon receipt by such Guarantor, be turned over to the Administrative Agent in
the exact form received by such Guarantor (duly indorsed by such Guarantor to
the Administrative Agent, if required), to be applied in such order as set forth
in Section 6.5 hereof irrespective of the occurrence or the continuance of any
Event of Default.

2.4        Amendments, etc. with respect to the Secured Obligations.  Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Secured
Obligations made by the Administrative Agent or any other Secured Party may be
rescinded by the Administrative Agent or such Secured Party and any of the
Secured Obligations continued, and the Secured Obligations, or the liability of
any other Person upon or for any part thereof, or any collateral security or
guarantee therefor or right of offset with respect thereto, may, from time to
time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Administrative Agent or any
other Secured Party, and the Credit Agreement, the other Loan Documents, the
Specified Swap Agreements and any other documents executed and delivered in
connection therewith may be amended, modified, supplemented or terminated, in
whole or in part, as the Administrative Agent (or the Required Lenders or all of
the Lenders, as the case may be) may deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by the
Administrative Agent or any other Secured Party for the payment of the Secured
Obligations may be sold, exchanged, waived, surrendered or released.  Neither
the Administrative Agent nor any other Secured Party shall have any obligation
to protect, secure, perfect or insure any Lien at any time held by it as
security for the Secured Obligations or for the guarantee contained in this
Section 2 or any property subject thereto.

2.5        Guarantee Absolute and Unconditional; Guarantor Waivers; Guarantor
Consents.  Each Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Secured Obligations and notice of or proof of
reliance by the Administrative Agent or any other Secured Party upon the
guarantee contained in this Section 2 or acceptance of the guarantee contained
in this Section 2; the

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

Secured Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the guarantee contained in this Section 2; and all dealings
between any Borrower and any of the Guarantors on the one hand, and the
Administrative Agent and the other Secured Parties, on the other hand, likewise
shall be conclusively presumed to have been had or consummated in reliance upon
the guarantee contained in this Section 2.  Each Guarantor further waives:

(a)        diligence, presentment, protest, demand for payment and notice of
default or nonpayment to or upon the Borrowers or any of the other Guarantors
with respect to the Secured Obligations;

(b)        any right to require any Secured Party to marshal assets in favor of
the Borrowers, such Guarantor, any other Guarantor or any other Person, to
proceed against the Borrowers, any other Guarantor or any other Person, to
proceed against or exhaust any of the Collateral, to give notice of the terms,
time and place of any public or private sale of personal property security
constituting the Collateral or other collateral for the Secured Obligations or
to comply with any other provisions of Section 9-611 of the UCC (or any
equivalent provision of any other applicable law) or to pursue any other right,
remedy, power or privilege of any Secured Party whatsoever;

(c)        the defense of the statute of limitations in any action hereunder or
for the collection or performance of the Secured Obligations;

(d)        any defense arising by reason of any lack of corporate or other
authority or any other defense of the Borrowers, such Guarantor or any other
Person;

(e)        any defense based upon the Administrative Agent’s or any Secured
Party’s errors or omissions in the administration of the Secured Obligations;

(f)        any rights to set-offs and counterclaims;

(g)        any defense based upon an election of remedies (including, if
available, an election to proceed by nonjudicial foreclosure) which destroys or
impairs the subrogation rights of such Guarantor or the right of such Guarantor
to proceed against the Borrowers or any other obligor of the Secured Obligations
for reimbursement; and

(h)        without limiting the generality of the foregoing, to the fullest
extent permitted by law, any defenses or benefits that may be derived from or
afforded by applicable law that limit the liability of or exonerate guarantors
or sureties, or which may conflict with the terms of this Agreement.  

Each Guarantor understands and agrees that the guarantee contained in this
Section 2 shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (i) the validity or enforceability of the
Credit Agreement or any other Loan Document, any of the Secured Obligations or
any other collateral security therefor or guarantee or right of offset with
respect thereto at any time or from time to time held by the Administrative
Agent or any other Secured Party, (ii) any defense, setoff or counterclaim
(other than a defense of payment or performance) which may at any time be
available to or be asserted by the Borrowers or any other Person against the
Administrative Agent or any other Secured Party, (iii) any other circumstance
whatsoever (with or without notice to or knowledge of the Borrowers or such
Guarantor) which constitutes, or might be construed to constitute, an equitable
or legal discharge of the Borrowers and the Guarantors for the Secured
Obligations, or of such Guarantor under the guarantee contained in this
Section 2, in bankruptcy or in any other instance, (iv) any Insolvency
Proceeding with respect to the Borrowers, any Guarantor or any other Person, (v)
any merger, acquisition, consolidation or change in structure of the Borrowers,
any Guarantor or any other Person, or any sale, lease, transfer or

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

other disposition of any or all of the assets or Capital Stock of the Borrowers,
any Guarantor or any other Person, (vi) any assignment or other transfer, in
whole or in part, of any Secured Party’s interests in and rights under this
Agreement or the other Loan Documents, including any Secured Party’s right to
receive payment of the Secured Obligations, or any assignment or other transfer,
in whole or in part, of any Secured Party’s interests in and to any of the
Collateral, (vii) any Secured Party’s vote, claim, distribution, election,
acceptance, action or inaction in any Insolvency Proceeding related to any of
the Secured Obligations, and (viii) any other guaranty, whether by such
Guarantor or any other Person, of all or any part of the Secured Obligations or
any other indebtedness, obligations or liabilities of any Guarantor to any
Secured Party.  

When making any demand hereunder or otherwise pursuing its rights and remedies
hereunder against any Guarantor, the Administrative Agent or any other Secured
Party may, but shall be under no obligation to make a similar demand on or
otherwise pursue such rights and remedies as it may have against the Borrowers,
any other Guarantor or any other Person or against any collateral security or
guarantee for the Secured Obligations or any right of offset with respect
thereto.  Any failure by the Administrative Agent or any other Secured Party to
make any such demand, to pursue such other rights or remedies or to collect any
payments from the Borrowers, any other Guarantor or any other Person or to
realize upon any such collateral security or guarantee or to exercise any such
right of offset, or any release of the Borrowers, any other Guarantor or any
other Person or any such collateral security, guarantee or right of offset,
shall not relieve any Guarantor of any obligation or liability hereunder, and
shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Administrative Agent or any other Secured
Party against any Guarantor.  For the purposes hereof “demand” shall include the
commencement and continuance of any legal proceedings.

Each Guarantor further unconditionally consents and agrees that, without notice
to or further assent from any Guarantor: (a) the principal amount of the Secured
Obligations may be increased or decreased and additional indebtedness or
obligations of the Borrowers or any other Persons under the Loan Documents may
be incurred, by one or more amendments, modifications, renewals or extensions of
any Loan Document or otherwise; (b) the time, manner, place or terms of any
payment under any Loan Document may be extended or changed, including by an
increase or decrease in the interest rate on any Secured Obligation or any fee
or other amount payable under such Loan Document, by an amendment, modification
or renewal of any Loan Document or otherwise; (c) the time for the Borrowers’
(or any other Loan Party’s) performance of or compliance with any term, covenant
or agreement on its part to be performed or observed under any Loan Document may
be extended, or such performance or compliance waived, or failure in or
departure from such performance or compliance consented to, all in such manner
and upon such terms as the Administrative Agent may deem proper; (d) in addition
to the Collateral, the Secured Parties may take and hold other security (legal
or equitable) of any kind, at any time, as collateral for the Secured
Obligations, and may, from time to time, in whole or in part, exchange, sell,
surrender, release, subordinate, modify, waive, rescind, compromise or extend
such security and may permit or consent to any such action or the result of any
such action, and may apply such security and direct the order or manner of sale
thereof; (e) any Secured Party may discharge or release, in whole or in part,
any other Guarantor or any other Loan Party or other Person liable for the
payment and performance of all or any part of the Secured Obligations, and may
permit or consent to any such action or any result of such action, and shall not
be obligated to demand or enforce payment upon any of the Collateral, nor shall
any Secured Party be liable to any Guarantor for any failure to collect or
enforce payment or performance of the Secured Obligations from any Person or to
realize upon the Collateral, and (f) the Secured Parties may request and accept
other guaranties of the Secured Obligations and any other indebtedness,
obligations or liabilities of the Borrowers or any other Loan Party to any
Secured Party and may, from time to time, in whole or in part, surrender,
release, subordinate, modify, waive, rescind, compromise or extend any such
guaranty and may permit or consent to any such action or the result of any such
action; in each case (a) through (f), as the Secured Parties may deem advisable,
and without impairing, abridging, releasing or affecting this Agreement.

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

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

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

2.8        Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally
absolutely, unconditionally and irrevocably undertakes to provide such funds or
other support as may be needed from time to time by each other Loan Party to
honor all of its obligations under this Agreement in respect of Secured
Obligations under Specified Swap Agreements (provided that, each Qualified ECP
Guarantor shall only be liable under this Section 2.8 for the maximum amount of
such liability that can be hereby incurred without rendering its obligations
under this Section 2.8 or otherwise under this Agreement, voidable under
Requirements of Law relating to fraudulent conveyance or fraudulent transfer,
and not for any greater amount).  The obligations of each Qualified ECP
Guarantor under this Section 2.8 shall remain in full force and effect until the
Discharge of Obligations.  Each Qualified ECP Guarantor intends that this
Section 2.8 constitute, and this Section 2.8 shall be deemed to constitute, a
“keepwell, support, or other agreement” for the benefit of each other Loan Party
for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.”

SECTION 3.        GRANT OF SECURITY INTEREST

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

(a)        all Accounts;

(b)        all Chattel Paper;

(c)        all Commercial Tort Claims;

(d)        all Deposit Accounts and all Securities Accounts;

(e)        all Documents;

(f)        all Equipment;

(g)        all Fixtures;

(h)        all General Intangibles;

(i)        all Goods;

(j)        all Instruments;

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

(k)        all Intellectual Property;

(l)        all Inventory;

(m)        all Investment Property (including all Pledged Collateral);

(n)        all Letter-of-Credit Rights;

(o)        all Money;

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

(q)        all other property not otherwise described above; and

(r)        to the extent not otherwise included, all Proceeds, Supporting
Obligations and products of any and all of the foregoing and all collateral
security and guarantees given by any Person with respect to any of the
foregoing; provided, however, that notwithstanding anything to the contrary
contained in clauses (a) through (q) above, the security interests created by
this Agreement shall not extend to, and the term “Collateral” (including all of
the individual items comprising Collateral) shall not include, any Excluded
Assets.

Notwithstanding any of the other provisions set forth in this Section 3, this
Agreement shall not constitute a grant of a security interest in any property to
the extent that such grant of a security interest is prohibited by any
Requirement of Law of a Governmental Authority or constitutes a breach or
default under or results in the termination of or requires any consent not
obtained under, any contract, license, agreement, instrument or other document
evidencing or giving rise to such property, except (i) to the extent that the
terms in such contract, license, instrument or other document providing for such
prohibition, breach, default or termination, or requiring such consent are not
permitted under the terms and conditions of the Credit Agreement or (ii) to the
extent that such Requirement of Law or the term in such contract, license,
agreement, instrument or other document providing for such prohibition, breach,
default or termination or requiring such consent is ineffective under
Section 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or
provisions) of any relevant jurisdiction or any other applicable law (including
the Bankruptcy Code) or principles of equity; provided, however, that such
security interest shall attach immediately at such time as such Requirement of
Law is not effective or applicable, or such prohibition, breach, default or
termination is no longer applicable or is waived, and to the extent severable,
shall attach immediately to any portion of the Collateral that does not result
in such consequences; and provided, further, that no United States intent-to-use
trademark or service mark application shall be included in the Collateral to the
extent that, and solely during the period in which, the grant of a security
interest therein would impair the validity or enforceability of such
intent-to-use trademark or service mark application under Federal law.  After
such period, each Grantor acknowledges that such interest in such trademark or
service mark application shall be subject to a security interest in favor of the
Administrative Agent and shall be included in the Collateral.

3.2        Grantors Remains Liable.  Anything herein to the contrary
notwithstanding, (a) each Grantor shall remain liable under any contracts,
agreements and other documents included in the Collateral, to the extent set
forth therein, to perform all of its duties and obligations thereunder to the
same extent as if this Agreement had not been executed, (b) the exercise by the
Administrative Agent of any of the rights granted to the Administrative Agent
hereunder shall not release any Grantor from any of its duties or obligations
under any such contracts, agreements and other documents included in the
Collateral, and (c) neither the Administrative Agent nor any other Secured Party
shall have any obligation or liability under any such contracts, agreements and
other documents 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 such
contract, agreement or other document included in the Collateral hereunder.

3.3        Perfection and Priority.

(a)        Financing Statements.  Pursuant to any applicable law, each Grantor
authorizes the Administrative Agent (and its counsel and its agents) to file or
record at any time and from time to time any financing statements and other
filing or recording documents or instruments with respect to the Collateral and
each Grantor shall execute and deliver to the Administrative Agent and each
Grantor hereby authorizes the Administrative Agent (and its counsel and its
agents) to file (with or without the signature of such Grantor) at any time and
from time to time, all amendments to financing statements, continuation
financing statements, termination statements, security agreements relating to
the Intellectual Property, assignments, fixture filings, affidavits, reports
notices and all other documents and instruments, in such form and in such
offices as the Administrative Agent or the Required Lenders determine
appropriate to perfect and continue perfected, maintain the priority of or
provide notice of the Administrative Agent’s security interest in the Collateral
under and to accomplish the purposes of this Agreement.  Each Grantor authorizes
the Administrative Agent to use the collateral description “all personal
property, whether now owned or hereafter acquired” or any other similar
collateral description in any such financing statements.  

(b)        Filing of Financing Statements.  Each Grantor shall deliver to the
Administrative Agent, from time to time, such completed UCC‑1 financing
statements for filing or recording in the appropriate filing offices as may be
reasonably requested by the Administrative Agent.

(c)        Transfer of Security Interest Other Than by Delivery.  If for any
reason Pledged Collateral cannot be delivered to or for the account of the
Administrative Agent as provided in Section 5.6(b), each applicable Grantor
shall promptly take such other steps as may be necessary or as shall be
reasonably requested from time to time by the Administrative Agent to effect a
transfer of a perfected first priority security interest in and pledge of the
Pledged Collateral to the Administrative Agent for itself and on behalf of and
for the ratable benefit of the other Secured Parties pursuant to the UCC.  To
the extent practicable, each such Grantor shall thereafter deliver the Pledged
Collateral to or for the account of the Administrative Agent as provided in
Section 5.6(b).

(d)        Intellectual Property.  (i)  Each Grantor shall, in addition to
executing and delivering this Agreement, take such other action as may be
necessary, or as the Administrative Agent may reasonably request, to perfect the
Administrative Agent’s security interest in the Intellectual Property.  (ii) At
such time as financial statements are delivered to the Administrative Agent
pursuant to Section 6.1 of the Credit Agreement, each Grantor shall notify the
Administrative Agent of the creation or other acquisition of any Intellectual
Property by such Grantor after the date hereof which is registered or becomes
registered or the subject of an application for registration with the U.S.
Copyright Office or the U.S. Patent and Trademark Office, and as applicable,
such Grantor shall modify this Agreement by amending Schedule 6 to include any
such Intellectual Property which becomes part of the Collateral and which was
not included on Schedule 6 as of the date hereof and record an amendment to this
Agreement with the U.S. Copyright Office or the U.S. Patent and Trademark
Office, as applicable, and take such other action as may be necessary, or as the
Administrative Agent or the Required Lenders may reasonably request, to perfect
the Administrative Agent’s security interest in such Intellectual Property.

(e)        Bailees.  Any Person (other than the Administrative Agent) at any
time and from time to time holding all or any portion of the Collateral shall be
deemed to, and shall, hold the Collateral as the agent of, and as pledge holder
for, the Administrative Agent.  At any time and from time to time, the
Administrative Agent may give notice to any Person holding Collateral in excess
of $100,000 in fair market value that such Person is holding the Collateral as
the agent and bailee of, and as pledge holder for, the Administrative Agent, and
obtain such Person’s written acknowledgment thereof.  Without limiting the

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

generality of the foregoing, each Grantor will join with the Administrative
Agent in notifying any Person who has possession of any Collateral of the
Administrative Agent’s security interest therein and shall use commercially
reasonable efforts to obtain an acknowledgment from such Person that it is
holding the Collateral for the benefit of the Administrative Agent.

(f)        Control.  Each Grantor will cooperate with the Administrative Agent
in obtaining control (as defined in the UCC) of Collateral consisting of any
Deposit Accounts, Electronic Chattel Paper, Investment Property, Securities
Accounts, or Letter-of-Credit Rights, including delivery of control agreements,
as the Administrative Agent may reasonably request, to perfect and continue
perfected, maintain the priority of or provide notice of the Administrative
Agent’s security interest in such Collateral.

(g)        Additional Subsidiaries.  In the event that any Grantor acquires
rights in any Subsidiary after the date hereof, it shall deliver to the
Administrative Agent a completed pledge supplement, substantially in the form of
Annex 2 (the “Pledge Supplement”), together with all schedules thereto,
reflecting the pledge of the Capital Stock of such new Subsidiary (except to the
extent such Capital Stock consists of Excluded Assets).  Notwithstanding the
foregoing, it is understood and agreed that the security interest of the
Administrative Agent shall attach to the Pledged Collateral related to such
Subsidiary immediately upon any Grantor’s acquisition of rights therein and
shall not be affected by the failure of any Grantor to deliver a Pledge
Supplement.

SECTION 4.        REPRESENTATIONS AND WARRANTIES

In addition to the representations and warranties of the Grantors set forth in
the Credit Agreement, which are incorporated herein by this reference, and to
induce the Administrative Agent and the Lenders to enter into the Credit
Agreement and to make their respective extensions of credit to the Borrowers
thereunder, each Grantor hereby represents and warrants to the Administrative
Agent and each other Secured Party that:

4.1        Title; No Other Liens.  Except for the Liens permitted to exist on
the Collateral by Section 7.3 of the Credit Agreement, such Grantor owns each
item of the Collateral in which a Lien is granted by it free and clear of any
and all Liens.  No financing statement, fixture filing or other similar public
notice with respect to all or any part of the Collateral is on file or of record
or will be filed in any public office, except such as have been filed as
permitted by the Credit Agreement.  For the avoidance of doubt, it is understood
and agreed that each Grantor may, as part of its business, grant licenses to
third parties to use Intellectual Property owned or developed by such
Grantor.  For purposes of this Agreement and the other Loan Documents, such
licensing activity shall not constitute a “Lien” on such Intellectual
Property.  The Administrative Agent and each other Secured Party understands
that any such licenses may be exclusive to the applicable licensees, and such
exclusivity provisions may limit the ability of the Administrative Agent to
utilize, sell, lease or transfer the related Intellectual Property or otherwise
realize value from such Intellectual Property pursuant hereto.

4.2        Perfected Liens.  The security interests granted to the
Administrative Agent pursuant to this Agreement (a) upon completion of the
filings and other actions specified on Schedule 3 (which, in the case of all
filings and other documents referred to on said Schedule, have been delivered to
the Administrative Agent in completed and duly (if applicable) executed form)
will constitute valid perfected security interests in all of the Collateral in
favor of the Administrative Agent, for the ratable benefit of the Secured
Parties, as collateral security for the Secured Obligations, enforceable in
accordance with the terms hereof against any creditors of any Grantor and any
Persons purporting to purchase any Collateral from any Grantor, and (ii) are
prior to all other Liens on the Collateral in existence on the date hereof
except for Liens permitted by the Credit Agreement which have priority over the
Liens of the Administrative Agent on the Collateral (for the ratable benefit of
the Secured Parties) by operation of law, and in the case of Collateral other
than Pledged Collateral, Liens permitted by Section 7.3 of the Credit
Agreement.  Unless an Event of

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

Default has occurred and is continuing, each Grantor has the right to remove the
Fixtures in which such Grantor has an interest within the meaning of
Section 9-334(f)(2) of the UCC.

4.3        Jurisdiction of Organization; Chief Executive Office and Locations of
Books.  On the date hereof, such Grantor’s jurisdiction of organization,
identification number from the jurisdiction of organization (if any), and the
location of such Grantor’s chief executive office or sole place of business, as
the case may be, are specified on Schedule 4.  All locations where Books
pertaining to the Rights to Payment of such Grantor are kept, including all
equipment necessary for accessing such Books and the names and addresses of all
service bureaus, computer or data processing companies and other Persons keeping
any Books or collecting Rights to Payment for such Grantor, are set forth in
Schedule 4.

4.4        Inventory and Equipment.  On the date hereof (a) the Inventory and
(b) the Equipment (other than mobile goods) are kept at the locations listed on
Schedule 5.

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

4.6        Pledged Collateral.  (a) All of the Pledged Stock held by such
Grantor has been duly and validly issued, and is fully paid and non-assessable,
subject in the case of Pledged Stock constituting partnership interests or
limited liability company membership interests to future assessments required
under applicable law and any applicable partnership or operating agreement,
(b) such Grantor is or, in the case of any such additional Pledged Collateral
will be, the legal record and beneficial owner thereof, (c) in the case of
Pledged Stock of a Subsidiary of such Grantor or Pledged Collateral of such
Grantor constituting Instruments issued by a Subsidiary of such Grantor, there
are no restrictions on the transferability of such Pledged Collateral or such
additional Pledged Collateral to the Administrative Agent or with respect to the
foreclosure, transfer or disposition thereof by the Administrative Agent, except
as provided under applicable securities or “Blue Sky” laws, (d) the Pledged
Stock pledged by such Grantor constitutes all of the issued and outstanding
shares of Capital Stock of each Issuer owned by such Grantor (except for
Excluded Assets), and such Grantor owns no securities convertible into or
exchangeable for any shares of Capital Stock of any such Issuer that do not
constitute Pledged Stock hereunder, (e) any and all Pledged Collateral
Agreements which affect or relate to the voting or giving of written consents
with respect to any of the Pledged Stock pledged by such Grantor have been
disclosed to the Administrative Agent, and (f) as to each such Pledged
Collateral Agreement relating to the Pledged Stock pledged by such Grantor, (i)
to the best knowledge of such Grantor, such Pledged Collateral Agreement
contains the entire agreement between the parties thereto with respect to the
subject matter thereof and is in full force and effect in accordance with its
terms, (ii) to the best knowledge of such Grantor party thereto, there exists no
material violation or material default under any such Pledged Collateral
Agreement by such Grantor or the other parties thereto, and (iii) such Grantor
has not knowingly waived or released any of its material rights under or
otherwise consented to a material departure from the terms and provisions of any
such Pledged Collateral Agreement.

4.7        Investment Accounts.  Schedule 2 sets forth under the headings
“Securities Accounts” and “Commodity Accounts”, respectively, all of the
Securities Accounts and Commodity Accounts in which such Grantor has an
interest.  Except as disclosed to the Administrative Agent, such Grantor is the
sole entitlement holder of each such Securities Account and Commodity Account,
and such Grantor has not consented to, and is not otherwise aware of, any Person
(other than the Administrative Agent) having “control” (within the meanings of
Sections 8-106 and 9-106 of the UCC) over, or any other interest in, any such
Securities Account or Commodity Account or any securities or other property
credited thereto;

(a)        Schedule 2 sets forth under the heading “Deposit Accounts” all of the
Deposit Accounts in which such Grantor has an interest and, except as otherwise
disclosed to the Administrative Agent, such Grantor is the sole account holder
of each such Deposit Account and such Grantor has not consented to, and is not
otherwise aware of, any Person (other than the Administrative Agent) having
either

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

sole dominion and control (within the meaning of common law) or “control”
(within the meaning of Section 9-104 of the UCC) over, or any other interest in,
any such Deposit Account or any money or other property deposited therein; and

(b)        Except as otherwise permitted under Section 5.6 and Section 5.7, such
Grantor has taken all actions necessary or desirable to: (i) establish the
Administrative Agent’s “control” (within the meanings of Sections 8-106 and
9-106 of the UCC) over any Certificated Securities (as defined in Section 9-102
of the UCC); (ii) establish the Administrative Agent’s “control” (within the
meanings of Sections 8-106 and 9-106 of the UCC) over any portion of the
Investment Accounts constituting Securities Accounts, Commodity Accounts,
Securities Entitlements or Uncertificated Securities (each as defined in Section
9-102 of the UCC); (iii) establish the Administrative Agent’s “control” (within
the meaning of Section 9-104 of the UCC) over all Deposit Accounts; and (iv)
deliver all Instruments (as defined in Section 9-102 of the UCC) to the
Administrative Agent to the extent required hereunder, provided, that the
Administrative Agent shall not send a notice of sole control or similar notice
unless an Event of Default has occurred and is continuing.

4.8        Receivables.  No amount payable to such Grantor under or in
connection with any Receivable or other Right to Payment is evidenced by any
Instrument (other than checks, drafts or other Instruments that will be promptly
deposited in an Investment Account) or Chattel Paper which has not been
delivered to the Administrative Agent.  None of the account debtors or other
obligors in respect of any Receivable in excess of $100,000 in the aggregate is
the government of the United States or any agency or instrumentality thereof.

4.9        Intellectual Property.  Schedule 6 lists all registrations and
applications for Intellectual Property (including registered Copyrights,
Patents, Trademarks and all applications therefor) as well as all Copyright
Licenses, Patent Licenses and Trademark Licenses, in each case owned by such
Grantor in its own name on the date hereof.  Except as set forth in Schedule 6,
on the date hereof, none of the Intellectual Property is the subject of any
licensing or franchise agreement pursuant to which such Grantor is the licensor
or franchisor.

4.10        Instruments.  (i) Such Grantor has not previously assigned any
interest in any Instruments (including but not limited to the Pledged Notes)
held by such Grantor (other than such interests as will be released on or before
the date hereof), and (ii) no Person other than such Grantor owns an interest in
such Instruments (whether as joint holders, participants or otherwise).

4.11        Letter of Credit Rights.  Such Grantor does not have any
Letter-of-Credit Rights having a potential value in excess of $100,000 except as
set forth in Schedule 7 or as have been notified to the Administrative Agent in
accordance with Section 5.22.

4.12        Commercial Tort Claims.  Such Grantor does not have any Commercial
Tort Claims having a potential value in excess of $100,000 except as set forth
in Schedule 8 or as have been notified to the Administrative Agent in accordance
with Section 5.21.

SECTION 5.        COVENANTS

In addition to the covenants of the Grantors set forth in the Credit Agreement,
which are incorporated herein by this reference, each Grantor covenants and
agrees with the Administrative Agent and the other Secured Parties that, from
and after the date of this Agreement until the Discharge of Obligations:

5.1        Delivery of Instruments, Certificated Securities and Chattel
Paper.  If any amount payable under or in connection with any of the Collateral
shall be or become evidenced by any Instrument (other

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

than checks, drafts or other Instruments that will be promptly deposited in an
Investment Account), Certificated Security or Chattel Paper evidencing an amount
in excess of $100,000, such Instrument, Certificated Security or Chattel Paper
shall be promptly delivered to the Administrative Agent, duly indorsed in a
manner reasonably satisfactory to the Administrative Agent, to be held as
Collateral pursuant to this Agreement.

5.2        Maintenance of Insurance.  

(a)        The Grantors shall maintain insurance as required pursuant to Section
6.6 of the Credit Agreement.

(b)        All such insurance shall (i) provide that no cancellation, material
reduction in amount or material change in coverage thereof shall be effective
until at least 20 days after receipt by the Administrative Agent of written
notice thereof, (ii) name the Administrative Agent as an additional insured
party or loss payee, and (iii) be reasonably satisfactory in all other respects
to the Administrative Agent.

(c)        The Borrowers shall deliver to the Administrative Agent a report of a
reputable insurance broker with respect to such insurance substantially
concurrently with each delivery of the Borrowers’ audited annual financial
statements together with such supplemental reports with respect thereto as the
Administrative Agent may reasonably request.

5.3        Maintenance of Perfected Security Interest; Further Documentation.

(a)        Such Grantor shall maintain the security interests of the
Administrative Agent (for the benefit of the Secured Parties) created by this
Agreement as perfected security interests having at least the priority described
in Section 4.2 and shall defend such security interests against the claims and
demands of all Persons whomsoever, subject to the rights of such Grantor under
the Loan Documents to dispose of the Collateral.

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

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

5.4        Changes in Locations, Name, Etc.  Such Grantor will not, except upon
15 days’ (or 5 days’ with respect to subparagraph (ii) below or such shorter
period as may be agreed to by the Administrative Agent) prior written notice to
the Administrative Agent and delivery to the Administrative Agent of (a) all
additional executed financing statements and other documents reasonably
requested by the Administrative Agent to maintain the validity, perfection and
priority of the security interests provided for herein, and (b) if applicable, a
written supplement to Schedule 4 showing the relevant new jurisdiction of
organization, location of chief executive office or sole place of business, as
appropriate:

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

(i)        change its jurisdiction of organization, identification number from
the jurisdiction of organization (if any) or the location of its chief executive
office or sole place of business, as appropriate, from that referred to in
Section 4.3;

(ii)        change its name; or

(iii)        subject to Section 6.12(e) of the Credit Agreement, locate any
Collateral in any state or other jurisdiction other than those in which such
Grantor operates as of the Closing Date.

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

(a)        any Lien (other than Liens permitted under Section 7.3 of the Credit
Agreement) on any of the Collateral; and

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

5.6        Instruments; Investment Property.  

(a)        Upon the request of the Administrative Agent, such Grantor will
(i) promptly deliver to the Administrative Agent, or an agent designated by it,
appropriately endorsed or accompanied by appropriate instruments of transfer or
assignment, all Instruments, Documents, Chattel Paper and certificated
securities with respect to any Investment Property held by such Grantor, all
letters of credit of such Grantor, and all other Rights to Payment held by such
Grantor at any time evidenced by promissory notes, trade acceptances or other
instruments, and (ii) provide such notice, obtain such acknowledgments and take
all such other action, with respect to any Chattel Paper, Documents and
Letter-of-Credit Rights held by such Grantor, as the Administrative Agent shall
reasonably specify.

(b)        If such Grantor shall become entitled to receive or shall receive any
certificate (including any certificate representing a dividend or a distribution
in connection with any reclassification, increase or reduction of capital or any
certificate issued in connection with any reorganization), option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any Pledged Collateral,
or otherwise in respect thereof, such Grantor shall accept the same as the agent
of the Administrative Agent and the other Secured Parties, hold the same in
trust for the Administrative Agent and the other Secured Parties and deliver the
same forthwith to the Administrative Agent in the exact form received, duly
indorsed by such Grantor to the Administrative Agent, if required, together with
an undated stock power covering such certificate duly executed in blank by such
Grantor, unless otherwise permitted by the Credit Agreement, to be held by the
Administrative Agent, subject to the terms hereof, as additional collateral
security for the Secured Obligations; provided that in no event shall this
Section 5.6(b) apply to any Excluded Assets.  Any sums paid upon or in respect
of the Investment Property upon the liquidation or dissolution of any Issuer
shall, unless otherwise subject to a perfected security interest in favor of the
Administrative Agent, be paid over to the Administrative Agent to be held by it
hereunder as additional collateral security for the Secured Obligations, and in
case any distribution of capital shall be made on or in respect of the
Investment Property or any property shall be distributed upon or with respect to
the Investment Property pursuant to the recapitalization or reclassification of
the capital of any Issuer or pursuant to the reorganization thereof, the
property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the Administrative Agent, be delivered to the
Administrative Agent to be held by it hereunder as additional collateral
security for the Secured Obligations.  If any sums of money or property so paid
or distributed in respect of such Investment Property shall be received by such
Grantor, such Grantor shall, until such money or property is paid or delivered
to the Administrative Agent, unless otherwise subject to a perfected security
interest in favor of the Administrative

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

Agent, hold such money or property in trust for the Administrative Agent and the
other Secured Parties, segregated from other funds of such Grantor, as
additional collateral security for the Secured Obligations.

(c)        In the case of any Grantor which is an Issuer, such Issuer agrees
that (i) it will be bound by the terms of this Agreement relating to the Capital
Stock issued by it and will comply with such terms insofar as such terms are
applicable to it, (ii) it will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.6(a) and
(b) with respect to the Pledged Collateral issued by it and (iii) the terms of
Sections 6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all
actions that may be required of it pursuant to Section 6.3(c) or 6.7 with
respect to the Capital Stock issued by it.

5.7        Securities Accounts; Deposit Accounts.  

(a)        With respect to any Securities Account maintained by any Grantor,
such Grantor shall cause any applicable securities intermediary maintaining such
Securities Account to show on its books that the Administrative Agent is the
entitlement holder with respect to such Securities Account, and, if requested by
the Administrative Agent, cause such securities intermediary to enter into an
agreement in form and substance satisfactory to the Administrative Agent with
respect to such Securities Account pursuant to which such securities
intermediary shall agree to comply with the Administrative Agent’s “entitlement
orders” without further consent by such Grantor, as requested by the
Administrative Agent; and

(b)        with respect to any Deposit Account maintained by any Grantor, other
than a Deposit Account exclusively used for payroll, payroll taxes and other
employee wage and benefit payments to or for the benefit of such Grantor’s
employees and identified to the Administrative Agent as such, such Grantor shall
enter into and shall cause the depositary institution maintaining such account
to enter into an agreement in form and substance reasonably satisfactory to the
Administrative Agent pursuant to which the Administrative Agent shall be granted
“control” (within the meaning of Section 9-104 of the UCC) over such Deposit
Account.  

(c)        The Administrative Agent agrees that it will only communicate
“entitlement orders” with respect to the Deposit Accounts and Securities
Accounts of the Grantors after the occurrence and during the continuance of an
Event of Default.

(d)        Such Grantor shall give the Administrative Agent prompt notice of the
establishment of any new Deposit Account and of any new Securities Account
established by such Grantor with respect to any Investment Property held by such
Grantor.

5.8        Intellectual Property.  

(a)        Such Grantor (either itself or through licensees) will (i) continue
to use each material Trademark in order to maintain such material Trademark in
full force free from any claim of abandonment for non-use, (ii) maintain as in
the past the quality of products and services offered under each such material
Trademark, (iii) use each such material Trademark with the appropriate notice of
registration and all other notices and legends required by applicable
Requirements of Law, (iv) not adopt or use any mark which is confusingly similar
or a colorable imitation of any such material Trademark unless the
Administrative Agent, for the ratable benefit of the Secured Parties, shall
obtain, to the extent available, a perfected security interest in such mark
pursuant to this Agreement, and (v) not (and not knowingly permit any licensee
or sublicensee thereof to) do any act or knowingly omit to do any act whereby
any such material Trademark may become invalidated or impaired in any way.

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

(b)        Such Grantor (either itself or through licensees) will not do any
act, or omit to do any act, whereby any material Patent may become forfeited,
abandoned or dedicated to the public.

(c)        Such Grantor (either itself or through licensees) will not (and will
not permit any licensee or sublicensee thereof to) do any act or knowingly omit
to do any act whereby any such material Copyrights may become invalidated or
otherwise impaired.  Such Grantor will not (either itself or through licensees)
do any act whereby any material portion of such Copyrights may fall into the
public domain.

(d)        Such Grantor (either itself or through licensees) will not do any act
that knowingly uses any material Intellectual Property to infringe the
intellectual property rights of any other Person.

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

(f)        Whenever such Grantor, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration
of any Patent or Trademark with the U.S. Patent and Trademark Office or any
similar office or agency in any other country or political subdivision thereof,
such Grantor shall report (i) the initial application to and (ii) the
corresponding grant, if any, of the Patent or Trademark from the U.S. Patent and
Trademark Office to the Administrative Agent at such time as financial
statements are delivered to the Administrative Agent pursuant to Section 6.1 of
the Credit Agreement.  Whenever such Grantor, either by itself or through any
agent, employee, licensee or designee, shall file an application for the
registration of any Copyright with the U.S. Copyright Office, such Grantor shall
report the filing of the initial application to the Administrative Agent at such
time as financial statements are delivered to the Administrative Agent pursuant
to Section 6.1 of the Credit Agreement.  Upon request of the Administrative
Agent, other than in respect of intent-to-use trademark or service mark
applications, such Grantor shall execute and deliver, and have recorded, any and
all agreements, instruments, documents, and papers as the Administrative Agent
may reasonably request to evidence the Administrative Agent’s and the other
Secured Parties’ security interest in any Copyright, Patent or Trademark and the
goodwill and general intangibles of such Grantor relating thereto or represented
thereby.

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

(h)        In the event that any material Intellectual Property is infringed,
misappropriated or diluted by a third party, such Grantor shall take such
actions as such Grantor shall reasonably deem appropriate under the
circumstances to protect such Intellectual Property.

(i)        Each Grantor shall be permitted to enter into source code escrow
arrangements with third parties in the ordinary course of business.

5.9        Receivables.  Other than in the ordinary course of business
consistent with its past practice, such Grantor will not (a) grant any extension
of the time of payment of any Receivable, (b) compromise or settle any
Receivable for less than the full amount thereof, (c) release, wholly or
partially, any Person liable

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

for the payment of any Receivable, (d) allow any credit or discount whatsoever
on any Receivable or (e) amend, supplement or modify any Receivable in any
manner that would reasonably be expected to adversely affect the value thereof.

5.10        Defense of Collateral.  Grantors will appear in and defend any
action, suit or proceeding which may affect to a material extent its title to,
or right or interest in, or the Administrative Agent’s right or interest in, any
material portion of the Collateral.

5.11        Preservation of Collateral.  Grantors will do and perform all
reasonable acts that may be necessary and appropriate to maintain, preserve and
protect the Collateral.

5.12        Compliance with Laws, Etc.  Such Grantor will comply in all material
respects with all laws, regulations and ordinances, and all policies of
insurance, relating in a material way to the possession, operation, maintenance
and control of the Collateral.

5.13        Location of Books and Chief Executive Office.  Such Grantor will:
(a) keep all Books pertaining to the Rights to Payment of such Grantor at the
locations set forth in Schedule 4; and (b) give at least 15 days’ prior written
notice to the Administrative Agent of any changes in any location where Books
pertaining to the Rights to Payment of such Grantor are kept, including any
change of name or address of any service bureau, computer or data processing
company or any other Person preparing or maintaining any such Books or
collecting Rights to Payment for such Grantor.

5.14        Location of Collateral.  Such Grantor will:  (a) keep the Collateral
held by such Grantor at the locations set forth in Schedule 5 or at such other
locations as may be disclosed in writing to the Administrative Agent pursuant to
clause (b) and will not remove any such Collateral from such locations (other
than in connection with sales of Inventory in the ordinary course of such
Grantor’s business, the movement of Collateral as part of such Grantor’s supply
chain and in the ordinary course of such Grantor’s business, other dispositions
permitted by Section 7.5 of the Credit Agreement and movements of Collateral
from one disclosed location to another disclosed location within the United
States), except upon at least 15 days’ prior written notice of any removal to
the Administrative Agent; and (b) give the Administrative Agent at least 15
days’ prior written notice of any change (additions or deletions) in the
locations set forth in Schedule 5.

5.15        Maintenance of Records.  Such Grantor will keep separate, accurate
and complete Books with respect to Collateral held by such Grantor, disclosing
the Administrative Agent’s security interest hereunder.

5.16        Disposition of Collateral.  Such Grantor will not surrender or lose
possession of (other than to the Administrative Agent), sell, lease, rent, or
otherwise dispose of or transfer any of the Collateral held by such Grantor or
any right or interest therein, except to the extent permitted by Section 7.5 of
the Credit Agreement.

5.17        Liens.  Such Grantor will keep the Collateral held by such Grantor
free of all Liens except Liens permitted under Section 7.3 of the Credit
Agreement.

5.18        Expenses.  Such Grantor will pay all expenses of protecting,
storing, warehousing, insuring, handling and shipping the Collateral held by
such Grantor, to the extent the failure to pay any such expenses could
reasonably be expected to materially and adversely affect the value of the
Collateral.

5.19        Leased Premises; Collateral Held by Warehouseman, Bailee, Etc.  To
the extent required under Section 6.12(e) of the Credit Agreement, such Grantor
will use commercially reasonable efforts to obtain from each Person from whom
such Grantor leases any premises, and from each other Person at

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

whose premises any Collateral held by such Grantor is at any time present
(including any bailee, warehouseman or similar Person), any such collateral
access, subordination, landlord waiver, bailment, consent and estoppel
agreements as the Administrative Agent may reasonably require, in form and
substance reasonably satisfactory to the Administrative Agent.

5.20        Chattel Paper.  Such Grantor will not create any Chattel Paper
without placing a legend on such Chattel Paper acceptable to the Administrative
Agent indicating that the Administrative Agent has a security interest in such
Chattel Paper.  Such Grantor will give the Administrative Agent prompt notice if
such Grantor at any time holds or acquires an interest in any Chattel Paper,
including any Electronic Chattel Paper and shall comply, in all respects, with
the provisions of Section 5.1 hereof.

5.21        Commercial Tort Claims.  Such Grantor will give the Administrative
Agent prompt notice if such Grantor shall at any time hold or acquire any
Commercial Tort Claim with a potential value in excess of $100,000.

5.22        Letter-of-Credit Rights.  Such Grantor will give the Administrative
Agent prompt notice if such Grantor shall at any time hold or acquire any
Letter-of-Credit Rights with a potential value in excess of $100,000.

5.23        Shareholder Agreements and Other Agreements.  

(a)        Such Grantor shall comply with all of its obligations under any
shareholders agreement, operating agreement, partnership agreement, voting
trust, proxy agreement or other agreement or understanding (collectively, the
“Pledged Collateral Agreements”) to which it is a party and shall enforce all of
its rights thereunder, except, with respect to any such Pledged Collateral
Agreement relating to any Pledged Collateral issued by a Person other than a
Subsidiary of a Grantor, to the extent the failure to enforce any such rights
would not reasonably be expected to materially and adversely affect the value of
the Pledged Collateral to which any such Pledged Collateral Agreement relates.

(b)        Such Grantor agrees that no Pledged Stock (i) shall be dealt in or
traded on any securities exchange or in any securities market, (ii) shall
constitute an investment company security, or (iii) shall be held by such
Grantor in a Securities Account.

(c)        Subject to the terms and conditions of the Credit Agreement,
including Sections 7.3 and 7.5 thereof, such Grantor shall not vote to enable or
take any other action to:  (i) amend or terminate, or waive compliance with any
of the terms of, any such Pledged Collateral Agreement, certificate or articles
of incorporation, bylaws or other organizational documents in any way that
materially and adversely affects the validity, perfection or priority of the
Administrative Agent’s security interest therein.

SECTION 6.        REMEDIAL PROVISIONS

Each Grantor covenants and agrees with the Administrative Agent and the other
Secured Parties that, from and after the date of this Agreement until the
Discharge of Obligations:

6.1        Certain Matters Relating to Receivables.  

(a)        The Administrative Agent hereby authorizes each Grantor to collect
such Grantor’s Receivables, and the Administrative Agent may curtail or
terminate said authority at any time after the occurrence and during the
continuance of an Event of Default.  If required by the Administrative Agent at
any time after the occurrence and during the continuance of an Event of Default,
any payments of Receivables, when collected by any Grantor, (i) shall be
forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to the

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

Administrative Agent if required, in a Collateral Account over which the
Administrative Agent has control, subject to withdrawal by the Administrative
Agent for the account of the Secured Parties only as provided in Section 6.5,
and (ii) until so turned over, shall be held by such Grantor in trust for the
Administrative Agent and the other Secured Parties, segregated from other funds
of such Grantor.  After the occurrence and during the continuance of an Event of
Default, each such deposit of Proceeds of Receivables shall be accompanied by a
report identifying in reasonable detail the nature and source of the payments
included in the deposit.

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

6.2        Communications with Obligors; Grantors Remain Liable.  

(a)        The Administrative Agent, in its own name or in the name of one of
its Affiliates or a Grantor, may at any time after the occurrence and during the
continuance of an Event of Default communicate with obligors under the
Receivables to verify with them to the Administrative Agent’s satisfaction the
existence, amount and terms of any Receivables.

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

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

6.3        Investment Property.

(a)        Unless an Event of Default shall have occurred and be continuing and
the Administrative Agent shall have given written notice to the relevant Grantor
of the Administrative Agent’s intent to exercise its corresponding rights
pursuant to Section 6.3(b), each Grantor shall be permitted to receive all cash
dividends paid in respect of the Pledged Collateral and all payments made in
respect of the Pledged Notes to the extent not prohibited by the Credit
Agreement, and to exercise all voting and corporate or other organizational
rights with respect to the Investment Property of such Grantor; provided,
however, that no vote shall be cast or corporate or other organizational right
exercised or other action taken which, in the Administrative Agent’s reasonable
discretion, would materially impair the Collateral or which would be
inconsistent with or result in any violation of any provision of the Credit
Agreement, this Agreement or any other Loan Document.

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

(b)        If an Event of Default shall occur and be continuing and the
Administrative Agent shall give notice of its intent to exercise such rights to
the relevant Grantor or Grantors, (i) the Administrative Agent shall have the
right (A) to receive any and all cash dividends, payments or other Proceeds paid
in respect of the Investment Property (including the Pledged Collateral) of any
or all of the Grantors and make application thereof to the Secured Obligations
in the order set forth in Section 6.5, and (B) to exchange uncertificated
Pledged Collateral for certificated Pledged Collateral and to exchange
certificated Pledged Collateral for certificates of larger or smaller
denominations, for any purpose consistent with this Agreement (in each case to
the extent such exchanges are permitted under the applicable Pledged Collateral
Agreements or otherwise agreed upon by the Issuer of such Pledged Collateral),
and (ii) any and all of such Investment Property shall be registered in the name
of the Administrative Agent or its nominee, and the Administrative Agent or its
nominee may thereafter exercise (x) all voting, corporate and other rights
pertaining to such Investment Property at any meeting of shareholders of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of
conversion, exchange and subscription and any other rights, privileges or
options pertaining to such Investment Property as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion
any and all of any such Investment Property upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate or
other organizational structure of any Issuer, or upon the exercise by any
Grantor or the Administrative Agent of any right, privilege or option pertaining
to such Investment Property, and in connection therewith, the right to deposit
and deliver any and all of such Investment Property with any committee,
depositary, transfer agent, registrar or other designated agency upon such terms
and conditions as the Administrative Agent may determine), all without liability
except to account for property actually received by it, but the Administrative
Agent shall have no duty to any Grantor to exercise any such right, privilege or
option and shall not be responsible for any failure to do so or delay in so
doing.

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

(d)        If an Event of Default shall have occurred and be continuing, the
Administrative Agent shall have the right to apply the balance from any Deposit
Account or Securities Account or instruct the bank or securities intermediary at
which any Deposit Account or Securities Account is maintained to pay the balance
of any Deposit Account or Securities Account to or for the benefit of the
Administrative Agent.

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

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

6.5        Application of Proceeds.  If an Event of Default shall have occurred
and be continuing, at any time at the Administrative Agent’s election, the
Administrative Agent may apply all or any part of Proceeds constituting
Collateral, whether or not held in any Collateral Account, in payment of the
Secured Obligations in accordance with Section 8.3 of the Credit Agreement.

6.6        Code and Other Remedies.  If an Event of Default shall occur and be
continuing, the Administrative Agent, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Secured Obligations, all rights and remedies of a secured party
under the UCC or any other applicable law.  Without limiting the generality of
the foregoing, the Administrative Agent, without demand of performance or other
demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law) to or upon any Grantor or any other Person (all and each
of which demands, defenses, advertisements and notices are hereby waived), may
in such circumstances forthwith collect, receive, appropriate and realize upon
the Collateral, or any part thereof, and/or may forthwith sell, lease, assign,
give option or options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker’s
board or office of the Administrative Agent or any other Secured Party or
elsewhere upon such terms and conditions as it may deem advisable and at such
prices as it may deem best, for cash or on credit or for future delivery without
assumption of any credit risk.  The Administrative Agent or any other Secured
Party shall have the right upon any such public sale or sales, and, to the
extent permitted by law, upon any such private sale or sales, to purchase the
whole or any part of the Collateral so sold, free of any right or equity of
redemption in any Grantor, which right or equity is hereby waived and
released.  Each Grantor further agrees, at the Administrative Agent’s request,
to assemble the Collateral and make it available to the Administrative Agent at
places which the Administrative Agent shall reasonably select, whether at such
Grantor’s premises or elsewhere.  The Administrative Agent shall apply the net
proceeds of any action taken by it pursuant to this Section 6.6, in accordance
with the provisions of Section 6.5, only after deducting all reasonable costs
and expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of the Administrative Agent and the other Secured
Parties hereunder, including, without limitation, reasonable attorneys’ fees and
disbursements, to the payment in whole or in part of the Secured Obligations, in
such order as is contemplated by Section 8.3 of the Credit Agreement, and only
after such application and after the payment by the Administrative Agent of any
other amount required by any provision of law, including Section 9-615(a)(3) of
the UCC, but only to the extent of the surplus, if any, owing to any
Grantor.  To the extent permitted by applicable law, each Grantor waives all
claims, damages and demands it may acquire against the Administrative Agent or
any other Secured Party arising out of the exercise by any of them of any rights
hereunder, except to the extent caused by the gross negligence or willful
misconduct of the Administrative Agent or such Secured Party or their respective
agents.  If any notice of a proposed sale or other disposition of Collateral
shall be required by law, such notice shall be deemed reasonable and proper if
given at least 10 days before such sale or other disposition.  If an Event of
Default has occurred and is continuing, Administrative Agent may, in addition to
other rights and remedies provided for herein, in the other Loan Documents, or
otherwise available to it under applicable law and without the requirement of
notice to or upon any Grantor or any other Person (which notice is hereby
expressly waived to the maximum extent permitted by the Code or any other
applicable law), (i) with respect to any Grantor’s Deposit Accounts in which
Administrative Agent’s Liens are perfected by control under Section 9-104 or any
other section of the UCC, instruct the bank maintaining such Deposit Account for
the applicable Grantor to pay the balance of such Deposit Account to or for the
benefit of the Administrative Agent, and (ii) with respect to any Grantor’s
Securities Accounts in which Administrative Agent’s Liens are perfected by
control under Section 9-106 or any other section of the UCC, instruct the
securities intermediary maintaining such Securities Account for the applicable
Grantor to (A) transfer any cash in such Securities Account to or for the
benefit of Administrative Agent, or (B)  liquidate any financial assets in such
Securities Account that are customarily sold on a recognized market and transfer
the cash proceeds thereof

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

to or for the benefit of Administrative Agent, in each case above, for
application to and repayment of the Secured Obligations. Each Grantor hereby
acknowledges that the Secured Obligations arise out of a commercial transaction,
and agrees that if an Event of Default shall occur and be continuing
Administrative Agent shall have the right to an immediate writ of possession
without notice of a hearing.  Administrative Agent shall have the right to the
appointment of a receiver for the properties and assets of each Grantor, and
each Grantor hereby consents to such rights and such appointment and hereby
waives any objection such Grantor may have thereto or the right to have a bond
or other security posted by Administrative Agent.

6.7        Registration Rights.

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

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

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

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

6.8        Intellectual Property License.  Solely for the purpose of enabling
the Administrative Agent to exercise rights and remedies under this Section 6
and at such time as the Administrative Agent shall be lawfully entitled to
exercise such rights and remedies, each Grantor hereby grants to the
Administrative Agent, for the benefit of the Secured Parties, an irrevocable,
non-exclusive, worldwide license (exercisable without payment of royalty or
other compensation to such Grantor), subject, in the case of Trademarks, to
sufficient rights to quality control and inspection in favor of such Grantor to
avoid the risk of invalidation of said Trademarks, to use, operate under,
license, or sublicense any Intellectual Property now owned or hereafter acquired
by the Grantors.

6.9        Deficiency.  Each Grantor shall remain liable for any deficiency if
the proceeds of any sale or other disposition of the Collateral are insufficient
to pay its Secured Obligations and the reasonable fees and disbursements of any
attorneys employed by the Administrative Agent or any other Secured Party to
collect such deficiency.

SECTION 7.        THE ADMINISTRATIVE AGENT

Each Grantor covenants and agrees with the Administrative Agent and the other
Secured Parties that:

7.1        Administrative Agent’s Appointment as Attorney-in-Fact, etc.

(a)        Each Grantor hereby irrevocably constitutes and appoints the
Administrative Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of
this Agreement, to take any and all appropriate action and to execute any and
all documents and instruments which may be necessary or desirable to accomplish
the purposes of this Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Administrative Agent the power and
right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

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

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

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

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

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

(v)        (A) 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; (B) ask or demand for, collect, and receive payment of and receipt for,
any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (C) 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; (D) commence and prosecute any suits,
actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Collateral or any portion thereof and to enforce any
other right in respect of any Collateral; (E) defend any suit, action or
proceeding brought against such Grantor with respect to any Collateral;
(F) 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; (G) assign any Copyright, Patent or Trademark (along
with the goodwill of the business to which any such Copyright, Patent or
Trademark pertains), throughout the world for such term or terms, on such
conditions, and in such manner, as the Administrative Agent shall in its sole
discretion determine; and (H) generally, sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any of the Collateral as fully
and completely as though the Administrative Agent were the absolute owner
thereof for all purposes, and do, at the Administrative Agent’s option and such
Grantor’s expense, at any time, or from time to time, all acts and things which
the Administrative Agent deems necessary to protect, preserve or realize upon
the Collateral and the Administrative Agent’s and the other Secured Parties’
security interests therein and to effect the intent of this Agreement, all as
fully and effectively as such Grantor might do.

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

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

(c)        The reasonable out-of-pocket expenses of the Administrative Agent
incurred in connection with actions undertaken as provided in this Section 7.1,
together with interest thereon at a rate per annum equal to the Applicable
Margin under the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by the relevant Grantor, shall be
payable by such Grantor to the Administrative Agent on demand.

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

7.2        Duty of Administrative Agent.  The Administrative Agent’s sole duty
with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall
be to deal with it in the same manner as the Administrative Agent deals with
similar property for its own account.  Neither the Administrative Agent, any
other Secured Party nor any of their respective officers, directors, employees
or agents shall be liable for failure to demand, collect or realize upon any of
the Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of any Grantor or
any other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof.  The powers conferred on the Administrative
Agent and the other Secured Parties hereunder are solely to protect the
Administrative Agent’s and the other Secured Parties’ interests in the
Collateral and shall not impose any duty upon the Administrative Agent or any
other Secured Party to exercise any such powers.  The Administrative Agent

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

and the other Secured Parties shall be accountable only for amounts that they
actually receive as a result of the exercise of such powers, and neither they
nor any of their officers, directors, employees or agents shall be responsible
to any Grantor for any act or failure to act hereunder, except for their own
gross negligence or willful misconduct.

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

SECTION 8.        MISCELLANEOUS

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

8.2        Notices.  All notices, requests and demands to or upon the
Administrative Agent or any Grantor hereunder shall be effected in the manner
provided for in Section 10.2 of the Credit Agreement; provided that any such
notice, request or demand to or upon any Guarantor shall be addressed to such
Guarantor at its notice address set forth on Schedule 1.

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

8.4        Enforcement Expenses; Indemnification.

(a)        Each Guarantor agrees to pay or reimburse the Administrative Agent
and each other Secured Party for all its reasonable out-of-pocket costs and
expenses incurred in collecting against such Guarantor under the guaranty
contained in Section 2 of this Agreement or otherwise enforcing or preserving
any rights under this Agreement and the other Loan Documents to which such
Guarantor is a party, including the reasonable fees and disbursements of one
primary counsel to the Administrative Agent and the Secured Parties.

(b)        Each Guarantor agrees to pay, and to save the Administrative Agent
and each other Secured Party harmless from, any and all liabilities with respect
to, or resulting from any delay in paying, any and all stamp, excise, sales or
other taxes which may be payable or determined to be payable with

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

respect to any of the Collateral or in connection with any of the transactions
contemplated by this Agreement.

(c)        Each Guarantor agrees to pay, and to save the Administrative Agent
and each other Secured Party harmless from, any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, reasonable
and documented out-of-pocket costs and expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement to the extent the Borrowers
would be required to do so pursuant to the Credit Agreement.

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

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

8.6        Set Off.  Each Grantor hereby irrevocably authorizes the
Administrative Agent and each other Secured Party and any Affiliate thereof at
any time and from time to time after the occurrence and during the continuance
of an Event of Default, without advance notice to such Grantor or any other
Grantor, any such advance notice being expressly waived by each Grantor, to
setoff and appropriate and apply any and all deposits (general or special, time
or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Administrative Agent or such Secured Party or such Affiliate to or
for the credit or the account of such Grantor, or any part thereof in such
amounts as the Administrative Agent or such Secured Party may elect, against and
on account of the Secured Obligations and liabilities of such Grantor to the
Administrative Agent or such Secured Party hereunder and under the other Loan
Documents and claims of every nature and description of the Administrative Agent
or such Secured Party against such Grantor, in any currency, whether arising
hereunder, under the Credit Agreement, any other Loan Document, or otherwise as
the Administrative Agent or such Secured Party may elect, whether or not the
Administrative Agent or any other Secured Party has made any demand for payment
and although such obligations, liabilities and claims may be contingent or
unmatured.  The rights of the Administrative Agent and each other Secured Party
under this Section 8.6 are in addition to other rights and remedies (including,
without limitation, other rights of setoff) which the Administrative Agent or
such other Secured Party may have.

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

8.8        Severability.  Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

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

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

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

8.11        GOVERNING LAW.  THIS AGREEMENT AND ANY CLAIM, CONTROVERSY, DISPUTE,
CAUSE OF ACTION, OR PROCEEDING (WHETHER BASED IN CONTRACT, TORT, OR OTHERWISE)
BASED UPON, ARISING OUT OF, CONNECTED WITH, OR RELATING TO THIS AGREEMENT, AND
THE TRANSACTIONS CONTEMPLATED HEREBY, AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE CONFLICT OF LAW RULES) OF THE
STATE OF NEW YORK.  This Section 8.11 shall survive the Discharge of
Obligations.

8.12        Submission to Jurisdiction; Waivers.  Each Grantor hereby
irrevocably and unconditionally agrees that the provisions of Sections 10.14(a)
and (c) of the Credit Agreement (relating to submission to jurisdiction and
waivers and the waiver of the right to claim or recover any special, exemplary,
punitive or consequential damages) shall be incorporated herein, mutatis
mutandis, as if set forth herein in full.  This Section 8.12 shall survive the
Discharge of Obligations.

8.13        Acknowledgements.  Each Grantor hereby acknowledges that:

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

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

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

8.14        Additional Grantors.  Each Subsidiary of a Grantor that is required
to become a party to this Agreement pursuant to Section 6.12 of the Credit
Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the form
of Annex 1 hereto.

8.15        Releases.

(a)        Upon the Discharge of Obligations, the Collateral shall be released
from the Liens in favor of the Administrative Agent and the other Secured
Parties created hereby, this Agreement shall terminate with respect to the
Administrative Agent and the other Secured Parties, and all obligations (other
than those expressly stated to survive such termination) of each Grantor to the
Administrative Agent or any other Secured Party hereunder shall terminate, all
without delivery of any instrument or performance of any act by any party.  At
the sole expense of any Grantor following any such termination, the
Administrative Agent shall deliver such documents as such Grantor shall
reasonably request to evidence such termination.

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

(b)        If any of the Collateral shall be sold, transferred or otherwise
disposed of by any Grantor to a Person that is not a Grantor in a transaction
permitted by Section 7 of the Credit Agreement, (i) such Collateral shall be
automatically released from the Liens created hereby on such Collateral, and
(ii) then the Administrative Agent, at the request and sole expense of such
Grantor, shall promptly execute and deliver to such Grantor all releases or
other documents reasonably necessary or desirable for the release of the Liens
created hereby on such Collateral, as applicable.  At the request and sole
expense of the Borrower, a Guarantor shall be released from its obligations
hereunder in the event that all the Capital Stock of such Guarantor shall be
sold, transferred or otherwise disposed of to a Person other than a Grantor in a
transaction permitted by Section 7 of the Credit Agreement; provided that the
Borrower shall have delivered to the Administrative Agent, at least ten (10)
days, or such shorter period as the Administrative Agent may agree, prior to the
date of the proposed release, a written request for release identifying the
relevant Guarantor and the terms of the sale or other disposition in reasonable
detail, including the price thereof and any expenses in connection therewith,
together with a certification by the Borrower stating that such transaction is
in compliance with terms and provisions of the Credit Agreement and the other
Loan Documents.  

8.16        WAIVER OF JURY TRIAL.  EACH GRANTOR AND THE ADMINISTRATIVE AGENT
EACH HEREBY IRREVOCABLY AND UNCONDITIONALLY (A) WAIVES, TO THE EXTENT PERMITTED
BY APPLICABLE LAW, ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
ARISING OUT OF, CONNECTED WITH, OR BASED UPON THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY; AND (B) AGREES, WITHOUT INTENDING IN ANY WAY TO LIMIT ITS
AGREEMENT TO WAIVE ITS  RIGHT TO A TRIAL BY JURY, THAT THE PROVISIONS OF SECTION
10.14(b) OF THE CREDIT AGREEMENT (RELATING TO THE WAIVER OF THE RIGHT TO JURY
TRIAL) SHALL BE INCORPORATED HEREIN, MUTATIS MUTANDIS, AS IF SET FORTH HEREIN IN
FULL.  THIS WAIVER OF THE RIGHT TO JURY TRIAL IS A MATERIAL INDUCEMENT FOR THE
PARTIES HERETO TO ENTER INTO THIS AGREEMENT.  EACH PARTY HERETO HAS REVIEWED
THIS WAIVER WITH ITS COUNSEL.  THIS SECTION 8.16 SHALL SURVIVE THE DISCHARGE OF
OBLIGATIONS.

8.17        Patriot Act.  Each Lender and the Administrative Agent (for itself
and not on behalf of any other party) hereby notifies each Grantor that,
pursuant to the requirements of “know your customer” and anti-money laundering
rules and regulations, including the Patriot Act and 31 C.F.R. § 1010.230, it is
required to obtain, verify and record information that identifies such Grantor,
which information includes the names and addresses and other information that
will allow such Lender or the Administrative Agent, as applicable, to identify
such Grantor and certain of its beneficial owners and other officers in
accordance with the Patriot Act and 31 C.F.R. § 1010.230.  Each Grantor will,
and will cause each of its Subsidiaries to, provide, to the extent commercially
reasonable or required by any Requirement of Law, such information and take such
actions as are reasonably requested by the Administrative Agent or any Lender to
assist the Administrative Agent and the Lenders in maintaining compliance with
“know your customer” requirements under the PATRIOT Act, 31 C.F.R. § 1010.230 or
other applicable anti-money laundering laws.

[remainder of page intentionally left blank]

 

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

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

Grantors:

BENEFITFOCUS, INC.

 

By: /s/ Stephen M. Swad                                      

Name: Stephen M. Swad                                      

Title: Chief Financial Officer                                

BENEFITFOCUS,COM, INC.

 

By: /s/ Stephen M. Swad                                       

Name: Stephen M. Swad                                       

Title: Chief Financial Officer                                 

BENEFITSTORE, INC.

 

By: /s/ Stephen M. Swad                                       

Name: Stephen M. Swad                                       

Title: Chief Financial Officer                                 

 

 

 

 

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

ADMINISTRATIVE AGENT:

 

SILICON VALLEY BANK

 

 

By:/s/ Will Deevy                                                   

Name:Will Deevy                                                   

Title:Director                                                          

 

 

 

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

Schedule 1

NOTICE ADDRESSES OF GUARANTORS

Guarantor

Notice Address

Benefitfocus, Inc.

100 Benefitfocus Way

Charleston, SC 29492

Attention: Chief Financial Officer and General Counsel

E-Mail: Legal1@benefitfocus.com

Benefitfocus.com, Inc.

100 Benefitfocus Way

Charleston, SC 29492

Attention: Chief Financial Officer and General Counsel

E-Mail: Legal1@benefitfocus.com

BenefitStore, Inc.

100 Benefitfocus Way

Charleston, SC 29492

Attention: Chief Financial Officer and General Counsel

E-Mail: Legal1@benefitfocus.com

 

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

Schedule 2

DESCRIPTION OF INVESTMENT PROPERTY

Pledged Stock:

Grantor

Issuer

Class of Capital Stock

Certificate No.

No. of Shares / Units

Benefitfocus, Inc.

Benefitfocus.com, Inc.

Common

No. 1

100

Benefitfocus.com, Inc.

BenefitStore, Inc.

Common

No. 1

200

Pledged Notes:

Grantor

Issuer

Date of Issuance

Payee

Principal Amount

N/A

N/A

N/A

N/A

N/A

Securities Accounts:

Grantor

Securities Intermediary

Address

Account Number(s)

Benefitfocus, Inc.

N/A

N/A

N/A

Benefitfocus.com, Inc.

U.S. Bank, N.A.

CN-OH-W6TC

Cincinnati, OH 45202

 

U.S. Bank, N.A.

CN-OH-W6TC

Cincinnati, OH 45202

 

BenefitStore, Inc.

N/A

N/A

N/A

Commodity Accounts:

Grantor

Commodities Intermediary

Address

Account Number(s)

N/A

N/A

N/A

N/A

Deposit Accounts:

Grantor

Depositary Bank

Address

Account Number(s)

Benefitfocus, Inc.

Comerica1

226 Airport Pkwy,

Suite #100, M/C 4348

San Jose, CA 95110

 

Comerica2

226 Airport Pkwy,

Suite #100, M/C 4348

San Jose, CA 95110

 

 

1

This account is in the process of being closed.

2

This account is in the process of being closed.

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

Benefitfocus.com, Inc.

NBSC

P.O. Box 8

Mount Pleasant, SC 29465

 

NBSC

P.O. Box 8

Mount Pleasant, SC 29465

 

NBSC

P.O. Box 8

Mount Pleasant, SC 29465

 

NBSC

P.O. Box 8

Mount Pleasant, SC 29465

 

SVB

3353 Peachtree Road

NE Tower, Suite M-10

Atlanta, GA 30326

 

SVB

3353 Peachtree Road

NE Tower, Suite M-10

Atlanta, GA 30326

 

SVB

3353 Peachtree Road

NE Tower, Suite M-10

Atlanta, GA 30326

 

SVB

3353 Peachtree Road

NE Tower, Suite M-10

Atlanta, GA 30326

 

BenefitStore, Inc.

NBSC

P.O. Box 8

Mount Pleasant, SC 29465

 

1 This account is in the process of being closed.

2 This account is in the process of being closed.

 

 

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

Schedule 3

FILINGS AND OTHER ACTIONS
REQUIRED TO PERFECT SECURITY INTERESTS

Financing Statements

Loan Party

Filing

Filing Office

Benefitfocus, Inc.

UCC-1 Financing Statement

Delaware Secretary of State

Benefitfocus.com, Inc.

UCC-1 Financing Statement

South Carolina Secretary of State

BenefitStore, Inc.

UCC-1 Financing Statement

South Carolina Secretary of State

Other Filings

Filing of the Intellectual Property Security Agreement with the U.S. Copyright
Office and the U.S. Patent and Trademark Office.

 

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

Schedule 4

LOCATION OF JURISDICTION OF ORGANIZATION

Grantor

Jurisdiction of Organization

Organizational Identification Number

Location of Chief Executive Office

Location of Books

Benefitfocus, Inc.

Delaware

5301893

100 Benefitfocus Way

Charleston, SC 29492

100 Benefitfocus Way

Charleston, SC 29492

Benefitfocus.com, Inc.

South Carolina

N/A

100 Benefitfocus Way

Charleston, SC 29492

100 Benefitfocus Way

Charleston, SC 29492

BenefitStore, Inc.

South Carolina

N/A

100 Benefitfocus Way

Charleston, SC 29492

100 Benefitfocus Way

Charleston, SC 29492

 

 

 

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

Schedule 5

LOCATIONS OF EQUIPMENT AND INVENTORY

Grantor

Address Location

Benefitfocus, Inc.

N/A

Benefitfocus.com, Inc.

100 Benefitfocus Way

Charleston, SC 29492

125 Fairchild Street

Charleston, SC 29492

215 Fairchild Street

Charleston, SC 29492

1016 Woods Crossing Road

Suite B

Greenville, SC 29607

2488 E. 81st Street

Suite 1700

Tulsa, OK 74137

TierPoint Hosted Solutions LLC

5301 Departure Drive, Suite 111

Raleigh, NC 27616

TierPoint Hosted Solutions LLC

4021 Rose Lake Drive

Charlotte, NC 28217

Exhibit Concepts, Inc.

700 Crossroads Court

Vandalia, OH 45377

CubeSmart

460 Seven Farms Drive

Units #323, #325, #326, #235, #532, #939

Daniel Island, SC 29492

18500 West Corporate Drive

Suite 250

Brookfield, WI 53045

44274 Roundtable Plaza

Suite L106

Ashburn, VA 20147

10 West Broadway

Salt Lake City, UT 84101

Sungard Availability Services, LP

1055 Spring Street NE

Atlanta, GA 30309

BenefitStore, Inc.

100 Benefitfocus Way

Charleston, SC 29492

 

 

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

Schedule 6

 

 

RIGHTS OF THE GRANTORS RELATING TO PATENTS

Issued Patents of Benefitfocus, Inc.

NONE

Pending Patent Applications of Benefitfocus, Inc.

NONE

Issued Patents and Pending Patent Applications Licensed to or used by
Benefitfocus, Inc.

NONE

Issued Patents of Benefitfocus.com, Inc.

Jurisdiction

Patent No.

Issue Date

Inventor

Title

United States

8,412,646

04/02/2013

Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad

Systems and methods for automatic creation of agent-based systems

United States

8,572,760

10/29/2013

Theodore C. Tanner, Jr.; Amit Jain

Systems and methods for secure agent information

United States

8,935,705

01/13/2015

Jeremy D. Martin

Execution of highly concurrent processing tasks based on the updated dependency
data structure at run-time

United States

9,430,504

08/30/2016

Michael Rosier

Systems and methods for dynamically intercepting and adjusting persistence
behaviors via runtime configuration

United States

9,454,412

09/27/2016

Michael Rosier

Systems and methods for classifying and analyzing runtime events

United States

9,612,708

04/04/2017

John C. Lunsford

Systems and methods for polymorphic content generation in a multi-application,
multi-tenant environment

United States

9,692,654

06/27/2017

Michael Rosier

Systems and methods for correlating derived metrics for system activity

United States

9,729,606

08/08/2017

Adam Wagner

Systems and methods for metadata driven user interface framework

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

Australia

2009298151

10/29/2015

Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory

Jorstad

Systems and methods for automatic creation of agent-based systems

Australia

2012256399

03/16/2017

Jeremy D. Martin

Registration and execution of highly concurrent processing tasks

Canada

2726729

01/24/2017

Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad

Systems and methods for automatic creation of agent-based systems

China

ZL200980126895.0

09/03/2014

Theodore C. Tanner, Jr.; Matthew Aldridge; Gregory Jorstad

Systems and methods for automatic creation of agent-based systems

China

ZL201180039769.9

07/22/2015

Theodore C. Tanner, Jr.; Amit Jain

Systems and methods for secure agent information

China

ZL201280021183.4

09/21/2016

Jeremy D. Martin

Registration and execution of highly concurrent processing tasks

Hong Kong

1179722

01/08/2016

Theodore C. Tanner, Jr.; Amit Jain

Systems and methods for secure agent information

Hong Kong

HK1190476

08/04/2017

Jeremy D. Martin

Registration and execution of highly concurrent processing tasks

Japan

5690935

02/06/2015

Theodore C. Tanner, Jr.; Amit Jain

Systems and methods for secure agent information

Japan

5989097

08/19/2016

Jeremy D. Martin

Registration and execution of highly concurrent processing tasks

Taiwan

I531973

05/01/2016

Jeremy D. Martin

Registration and execution of highly concurrent processing tasks

Taiwan

I581111

05/01/2017

Jason Shaun McDonald

System and method for enabling the styling and adornment of multiple, disparate
web pages through remote method calls

Pending Patent Applications of Benefitfocus.com, Inc.

Jurisdiction

Serial No.

Filing Date

Inventor

Title

United States

13/299,112

11/17/2011

William B. Gilbert

Systems and methods for dynamic service integration

United States

13/452,580

04/20/2012

Jason Shaun McDonald

System and method for enabling the styling and adornment of multiple, disparate
web pages through remote method calls

Issued Patents and Pending Patent Applications Licensed to or used by
Benefitfocus.com, Inc.

NONE

Issued Patents of BenefitStore, Inc.

NONE

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

Pending Patent Applications of BenefitStore, Inc.

NONE

Issued Patents and Pending Patent Applications Licensed to or used by
BenefitStore, Inc.

NONE

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

RIGHTS OF THE GRANTORS RELATING TO TRADEMARKS

Registered Trademarks of Benefitfocus, Inc.

NONE

Pending Trademark Applications of Benefitfocus, Inc.

NONE

Registered Trademarks and Pending Trademark Applications Licensed to or used by
Benefitfocus, Inc.

NONE

Registered Trademarks of Benefitfocus.com, Inc.

Jurisdiction

Registration No.

Registration Date

Filing Date

Registered Owner

Mark

United States

2496059

10/09/2001

08/04/2000

Benefitfocus.com, Inc.

BENEFITFOCUS

United States

4057260

11/15/2011

08/04/2010

Benefitfocus.com, Inc.

INSUREADVANTAGE

United States

4102028

02/21/2012

06/30/2011

Benefitfocus.com, Inc.

ALL YOUR BENEFITS. ONE PLACE.

United States

4649999

12/02/2014

07/22/2013

Benefitfocus.com, Inc.

HR INTOUCH

United States

4565511

07/08/2014

07/22/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

United States

4527136

05/06/2014

07/19/2013

Benefitfocus.com, Inc.

ALL YOUR BENEFITS. IN YOUR POCKET.

United States

4758876

06/23/2015

07/21/2014

Benefitfocus.com, Inc.

ONE PLACE

United States

5105506

12/20/2016

09/12/2014

Benefitfocus.com, Inc.

ON RAMP

United States

5483411

06/05/2018

02/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

United States

5699142

03/12/2019

04/02/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

United States

5901734

11/05/2019

04/08/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

United States

5946551

12/24/2019

04/30/2019

Benefitfocus.com, Inc.

CONSUMER BENEFITS COVERAGE INDEX

Australia

International Reg. No. 1182012

Trademark No. 1591274

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

Australia

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

Australia

1958174

07/31/2018

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

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

Canada

TMA855701

07/19/2013

01/31/2012

Benefitfocus.com, Inc.

BENEFITFOCUS

Canada

TMA867346

12/16/2013

10/29/2012

Benefitfocus.com, Inc.

HR INTOUCH MARKETPLACE

Canada

TMA867347

12/16/2013

10/30/2012

Benefitfocus.com, Inc.

HR INTOUCH

Canada

TMA911121

08/13/2015

12/19/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

Canada

TMA911122

08/13/2015

12/19/2013

Benefitfocus.com, Inc.

HR INTOUCH

Canada

TMA962882

02/15/2017

01/17/2014

Benefitfocus.com, Inc.

ALL YOUR BENEFITS. IN YOUR POCKET.

Canada

TMA1017645

03/19/2019

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

Canada

International Reg. No. 1182012

10/01/2013

08/09/2019

Benefitfocus.com, Inc.

BENEFITFOCUS

China

International Reg. No. 1182012

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

China

14158486

04/21/2015

03/12/2014

Benefitfocus.com, Inc.

BENEFITFOCUS

China

14158487

04/21/2015

03/12/2014

Benefitfocus.com, Inc.

BENEFITFOCUS

China

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

China

International Reg. No. 1425051

07/31/2018

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

China

International Reg. No. 1487705

09/19/2019

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

China

International Reg. No. 1491429

11/30/2019

08/09/2019

Benefitfocus.com, Inc.

CBCI

India

International Reg. No. 1182012

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

India

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

India

International Reg. No. 1425051

07/31/2018

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

Ireland

International Reg. No. 1182012

10/01/2013

10/1/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

Ireland

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

Israel

International Reg. No. 1182012

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

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

Israel

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

Israel

International Reg. No. 1425051

07/31/2018

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

New Zealand

967599

04/24/2013

10/23/2012

Benefitfocus.com, Inc.

HR INTOUCH

New Zealand

967600

04/24/2013

10/23/2012

Benefitfocus.com, Inc.

HR INTOUCH MARKETPLACE

New Zealand

International Reg. No. 1182012

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

New Zealand

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

Russia

International Reg. No. 1106495

12/30/2011

12/30/2011

Benefitfocus.com, Inc.

BENEFITFOCUS

Russia

International Reg. No. 1182012

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

Russia

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

Russia

International Reg. No. 1425051

07/31/2018

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

Ukraine

International Reg. No. 1106495

12/30/2011

12/30/2011

Benefitfocus.com, Inc.

BENEFITFOCUS

Ukraine

International Reg. No. 1182012

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

Ukraine

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

Ukraine

International Reg. No. 1425051

07/31/2018

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

South Africa

2012/28642

03/13/2015

10/23/2012

Benefitfocus.com, Inc.

HR INTOUCH

South Africa

2013/27350

09/28/2015

10/02/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

South Africa

2013/27351

09/28/2015

10/02/2013

Benefitfocus.com, Inc.

HR INTOUCH

South Africa

2014/00310

07/30/2015

01/07/2014

Benefitfocus.com, Inc.

ALL YOUR BENEFITS. IN YOUR POCKET.

United Kingdom

International Reg. No. 1182012

12/17/2019

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

United Kingdom

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

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

United Kingdom

International Reg. No. 1487705

12/10/2019

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

United Kingdom

International Reg. No. 1491429

12/30/2019

08/09/2019

Benefitfocus.com, Inc.

CBCI

World Intellectual Property Organization

International Reg. No. 1106495

12/30/2011

12/30/2011

Benefitfocus.com, Inc.

BENEFITFOCUS

World Intellectual Property Organization

International Reg. No. 1142954

10/22/2012

10/22/2012

Benefitfocus.com, Inc.

HR INTOUCH MARKETPLACE

World Intellectual Property Organization

International Reg. No. 1138700

10/22/2012

10/22/2012

Benefitfocus.com, Inc.

HR INTOUCH

World Intellectual Property Organization

International Reg. No. 1182012

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

BENEFITFOCUS

World Intellectual Property Organization

International Reg. No. 1181498

10/01/2013

10/01/2013

Benefitfocus.com, Inc.

HR INTOUCH

World Intellectual Property Organization

International Reg. No. 1191605

12/31/2013

12/31/2013

Benefitfocus.com, Inc.

ALL YOUR BENEFITS. IN YOUR POCKET.

World Intellectual Property Organization

International Reg. No. 1329010

08/29/2016

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

World Intellectual Property Organization

International Reg. No. 1425051

07/31/2018

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

World Intellectual Property Organization

International Reg. No. 1487705

09/19/2019

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

World Intellectual Property Organization

International Reg. No. 1491429

10/10/2019

08/09/2019

Benefitfocus.com, Inc.

CBCI

Pending Trademark Applications of Benefitfocus.com, Inc.

Jurisdiction

Application No.

Filing Date

Applicant

Mark

United States

88/408,896

04/30/2019

Benefitfocus.com, Inc.

CBCI

Australia

International Reg. No. 1487705

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

Australia

2042892

08/09/2019

Benefitfocus.com, Inc.

CBCI

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

Canada

1912747

08/01/2018

Benefitfocus.com, Inc.

BENEFITFOCUS

BENEFITSPLACE

Canada

International Reg. No. 1487705

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

Canada

1989461

08/09/2019

Benfitfocus.com, Inc.

CBCI

India

International Reg. No. 1487705

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

India

International Reg. No. 1491429

08/09/2019

Benefitfocus.com, Inc.

CBCI

Ireland

International Reg. No. 1425051

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

Ireland

International Reg. No. 1487705

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

Ireland

International Reg. No. 1491429

08/09/2019

Benefitfocus.com, Inc.

CBCI

Ireland

2020/00088

01/22/2020

Benefitfocus.com, Inc.

BENEFITFOCUS CBCI

Israel

International Reg. No. 1487705

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

Israel

International Reg. No. 1491429

08/09/2019

Benefitfocus.com, Inc.

CBCI

New Zealand

1130399

07/18/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

New Zealand

1131972

08/09/2019

Benefitfocus.com, Inc.

CBCI

Russia

International Reg. No. 1491429

08/09/2019

Benefitfocus.com, Inc.

CBCI

South Africa

2012/28643

10/23/2012

Benefitfocus.com, Inc.

HR INTOUCH MARKETPLACE

South Africa

2016/24461

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

South Africa

2016/24462

08/29/2016

Benefitfocus.com, Inc.

BENEFITFOCUS

South Africa

2018/21993

07/31/2018

Benefitfocus.com, Inc.

BENEFITFOCUS BENEFITSPLACE

South Africa

2019/20205

07/19/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

South Africa

2019/20206

07/19/2019

Benefitfocus.com, Inc.

BENEFITSAIGE

South Africa

2019/30160

10/23/2019

Benefitfocus.com, Inc.

CBCI

South Africa

2019/30161

10/23/2019

Benefitfocus.com, Inc.

CBCI

Ukraine

International Reg. No. 1491429

08/09/2019

Benefitfocus.com, Inc.

CBCI

Registered Trademarks and Pending Trademark Applications Licensed to or used by
Benefitfocus.com, Inc.

NONE

Registered Trademarks of BenefitStore, Inc.

NONE

Pending Trademark Applications of BenefitStore, Inc.

NONE

Registered Trademarks and Pending Trademark Applications Licensed to or used by
BenefitStore, Inc.

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

NONE

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

RIGHTS OF THE GRANTORS RELATING TO COPYRIGHTS

Registered Copyrights of Benefitfocus, Inc.

NONE

Pending Copyright Applications of Benefitfocus, Inc.

NONE

Registered Copyrights and Pending Copyright Applications Licensed to or used by
Benefitfocus, Inc.

NONE

Registered Copyrights of Benefitfocus.com, Inc.

Jurisdiction

Registration No.

Registration Date

Work of Authorship

United States

TX0006032200

11/14/2001

Benefit focus online enrollment and data exchange service application.

United States

TX0006032199

11/14/2001

Benefit focus online enrollment and data exchange services application version
1.14.

United States

TXu001936144

01/31/2013

Benefitfocus: Winning with Culture.

United States

TXu001936077

05/30/2014

Benefitfocus: Winning with Culture 2.

Pending Copyright Applications of Benefitfocus.com, Inc.

NONE

Registered Copyrights and Pending Copyright Applications Licensed to or used by
Benefitfocus.com, Inc.

NONE

Registered Copyrights of BenefitStore, Inc.

NONE

Pending Copyright Applications of BenefitStore, Inc.

NONE

Registered Copyrights and Pending Copyright Applications Licensed to or used by
BenefitStore, Inc.

NONE

OTHER LICENSE RIGHTS RELATING TO INTELLECTUAL PROPERTY

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

1.    Benefitfocus.com, Inc. grants licenses in the ordinary course for the use
of its software to its customers pursuant to Terms of Use, Master Services
Agreements and related Software License and Service Agreements.

2.    Benefitfocus.com, Inc. licenses certain Intellectual Property rights from
Oracle America, Inc. pursuant to that Ordering Document, effective November 22,
2013, by and between Arrow Enterprise Computing Solutions Inc., CDW Logistics,
Inc., Oracle America, Inc. and Benefitfocus.com, Inc. (incorporating by
reference the Oracle Master Agreement, US-OMA-68046).

Benefitfocus.com, Inc. licenses certain Intellectual Property rights from John
Hopkins University pursuant to that ACG Consultant Production License and
Professional Services Agreement, dated May 2, 2011.

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

Schedule 7

LETTER OF CREDIT RIGHTS

None.

 

 

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

Schedule 8

COMMERCIAL TORT CLAIMS

None.

 

 

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

Annex 1 to
Guarantee and Collateral Agreement

FORM OF

ASSUMPTION AGREEMENT

This ASSUMPTION AGREEMENT, dated as of [_______], is executed and delivered by
[______________________________] (the “Additional Grantor”), in favor of SILICON
VALLEY BANK, as administrative agent and collateral agent (in such capacities,
the “Administrative Agent”) for the banks and other financial institutions or
entities (the “Lenders”) from time to time party to that certain Credit
Agreement, dated as of March 3, 2020 (as amended, amended and restated,
supplemented, restructured or otherwise modified, renewed or replaced from time
to time, the “Credit Agreement”), among BENEFITFOCUS, INC., a Delaware
corporation (“Parent”), BENEFITFOCUS.COM, INC., a South Carolina corporation
(“Benefitfocus.com”), and BENEFITSTORE, INC., a South Carolina corporation
(“BenefitStore”, and together with Parent and Benefitfocus.com, each
individually, a “Borrower”, and collectively, and jointly and severally, the
“Borrowers”), the Lenders party thereto and the Administrative Agent.  All
capitalized terms not defined herein shall have the respective meanings ascribed
to such terms in such Credit Agreement.

W I T N E S S E T H:

WHEREAS, in connection with the Credit Agreement, the Borrowers and certain of
its Affiliates (other than the Additional Grantor) have entered into that
certain Guarantee and Collateral Agreement, dated as of March 3, 2020, in favor
of the Administrative Agent for the benefit of the Secured Parties defined
therein (as amended, amended and restated, supplemented, restructured or
otherwise modified, renewed or replaced from time to time, the “Guarantee and
Collateral Agreement”);

WHEREAS, the Borrowers are required, pursuant to Section 6.12 of the Credit
Agreement to cause the Additional Grantor to become a party to the Guarantee and
Collateral Agreement in order to grant in favor of the Administrative Agent (for
the ratable benefit of the Secured Parties) the Liens and security interests
therein specified and provide its guarantee of the Obligations as therein
contemplated; and

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

NOW, THEREFORE, IT IS AGREED:

1.  Guarantee and Collateral Agreement.  By executing and delivering this
Assumption Agreement, the Additional Grantor, as provided in Section 8.14 of the
Guarantee and Collateral Agreement, (a) hereby becomes a party to the Guarantee
and Collateral Agreement as both a “Grantor” and a “Guarantor” thereunder with
the same force and effect as if originally named therein as a Grantor and a
Guarantor and, without limiting the generality of the foregoing, hereby
expressly assumes all obligations and liabilities of a Grantor and a Guarantor
thereunder, and (b) hereby grants to the Administrative Agent, for the benefit
of the Secured Parties, as security for the Secured Obligations, a security
interest in all of the Additional Grantor’s right, title and interest in any and
to all Collateral of the Additional Grantor, in each case whether now owned or
hereafter acquired or in which the Additional Grantor now has or hereafter
acquires an interest and wherever the same may be located, but subject in all
respects to the terms, conditions and exclusions set forth in the Guarantee and
Collateral Agreement.  The information set forth in Schedule 1 hereto is hereby
added to the information set forth in the Schedules to the Guarantee and
Collateral Agreement.  The Additional Grantor hereby represents and warrants
that each of the representations and warranties contained in Section 4 of the
Guarantee and Collateral Agreement (x) that

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

is qualified by materiality is true and correct, and (y) that is not qualified
by materiality, is true and correct in all material respects, in each case, on
and as the date hereof (after giving effect to this Assumption Agreement) as if
made on and as of such date (except to the extent any such representation and
warranty expressly relates to an earlier date, in which case such representation
and warranty was true and correct in all material respects as of such earlier
date).

2.  Governing Law.  THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE
CONFLICT OF LAW RULES) OF THE STATE OF NEW YORK.

3.  Loan Document.  This Assumption Agreement shall constitute a Loan Document
under the Credit Agreement.

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

[ADDITIONAL GRANTOR]

By:___________________________
Name:
Title:

 

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

Schedule to
Assumption Agreement

Supplement to Schedule 1

Supplement to Schedule 2

Supplement to Schedule 3

Supplement to Schedule 4

Supplement to Schedule 5

Supplement to Schedule 6

Supplement to Schedule 7

Supplement to Schedule 8

 

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

Annex 2 to
Guarantee and Collateral Agreement

FORM OF
PLEDGE SUPPLEMENT

To:        Silicon Valley Bank, as Administrative Agent

 

Re:        BENEFITFOCUS, INC.,

BENEFITFOCUS.COM, INC.
BENEFITSTORE, INC.

 

Date:     _________________

 

Ladies and Gentlemen:

 

        This Pledge Supplement (this “Pledge Supplement”) is made and delivered
pursuant to Section 3.3(g) of that certain Guarantee and Collateral Agreement,
dated as of March 3, 2020 (as amended, modified, renewed or extended from time
to time, the “Guarantee and Collateral Agreement”), among each Grantor party
thereto (each a “Grantor” and collectively, the “Grantors”), and Silicon Valley
Bank (the “Administrative Agent”).  All capitalized terms used in this Pledge
Supplement and not otherwise defined herein shall have the meanings assigned to
them in either the Guarantee and Collateral Agreement or the Credit Agreement
(as defined in the Guarantee and Collateral Agreement), as the context may
require.

 

        The undersigned, ___________________________ [insert name of Grantor], a
_____________________ [corporation, partnership, limited liability company,
etc.], confirms and agrees that all Pledged Collateral of the undersigned,
including the property described on the supplemental schedule attached hereto,
shall be and become part of the Pledged Collateral and shall secure all Secured
Obligations.

 

        Schedule 2 to the Guarantee and Collateral Agreement is hereby amended
by adding to such Schedule 2 the information set forth in the supplement
attached hereto.  

 

        This Pledge Supplement shall constitute a Loan Document under the Credit
Agreement.

 

        THIS PLEDGE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS (AND NOT THE CONFLICT OF LAW RULES) OF THE STATE OF NEW
YORK.

 

IN WITNESS WHEREOF, the undersigned has executed this Pledge Supplement, as of
the date first above written.

 

[NAME OF APPLICABLE GRANTOR]

 

By:                                                             
Name:                                                        
Title:                                                          

 

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

SUPPLEMENT TO annex 2
to the Security Agreement

Name of Subsidiary

Number of Units/Shares Owned

Certificate(s) Numbers

Date Issued

Class or Type of Units or Shares

Percentage of Subsidiary’s Total Equity Interests Owned

 

 

 

 

 

 

 

 

 

ny-1857796