Exhibit 10.7

PLEDGE AGREEMENT

 

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

 

W I T N E S S E T H:

 

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

 

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

 

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

 

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

 

ARTICLE I

DEFINITIONS

 

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

 

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

 

“Administrative Agent” is defined in the preamble.

 

Pledge Agreement

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

“Agreement” is defined in the preamble.

 

“Borrower” is defined in the preamble.

 

“Credit Agreement” is defined in the first recital.

 

“Collateral” is defined in Section 2.1.

 

“Designated Investment” is defined in Section 3.1(a).

 

“Distributions” means all Equity Interest dividends, other dividends, including
liquidating dividends, Equity Interests resulting from (or in connection with
the exercise of) splits, reclassifications, warrants, options, non-cash
dividends and all other distributions (whether similar or dissimilar to the
foregoing) on or with respect to any Pledged Equity Interests or other Equity
Interests constituting Collateral, but shall not include Dividends.

 

“Dividends” means cash dividends and cash distributions with respect to any
Pledged Equity Interests made in the ordinary course of business and not as a
liquidating dividend.

 

“Domestic Subsidiary” means a Subsidiary that is organized under the laws of a
political subdivision of the United States.

 

“Equity Interests” is defined in the Credit Agreement.

 

“Excluded Foreign Subsidiary” means any Foreign Subsidiary of a Pledgor, the
pledge of all or any part of whose Equity Interests or other property or assets
as Collateral, or the guaranty of the Secured Obligations by, would result in
material adverse tax consequences to such Pledgor; provided, however, that for
purposes of this definition (a) the term “Foreign Subsidiary” shall not include
any Subsidiary (i) which is properly treated as a partnership or branch of such
Pledgor or a Domestic Subsidiary of such Pledgor for United States federal
income tax purposes and (ii) the pledge of all or any part of whose Equity
Interests or other property or assets as Collateral, or the guaranty of the
Obligations by, would not result in material adverse tax consequences to such
Pledgor and (b) any determination as to whether a Subsidiary is an Excluded
Foreign Subsidiary shall be approved by the Administrative Agent.

 

“Foreign Subsidiary” means a Subsidiary that is not organized under the laws of
a political subdivision of the United States.

 

“Indemnitee” is defined in Section 6.5.

 

“Lender” is defined in the Credit Agreement.

 

“LLC Agreement” means the limited liability company agreement, operating
agreement and other organizational document of a Securities Issuer which is a
limited liability company, as the same may be amended, restated, amended and
restated, supplemented or otherwise modified from time to time.

 

- 2 -

Pledge Agreement

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

“Partnership Agreement” means the partnership agreement and other organizational
document of a Securities Issuer which is a partnership, as the same way be
amended, restated, amended and restated, supplemented or otherwise modified from
time to time.

 

“Person” is defined in the Credit Agreement.

 

“Pledged Equity Interests” means all Pledged Shares, Pledged Partnership
Interests and Pledged Membership Interests.

 

“Pledged Membership Interests” is defined in Section 2.1(c).

 

“Pledged Notes” is defined in Section 2.1(a). The form of the original Pledged
Notes hereunder is attached as Exhibit A hereto.

 

“Pledged Partnership Interests” is defined in Section 2.1(c).

 

“Pledged Shares” is defined in Section 2.1(b).

 

“Pledgor” and “Pledgors” is defined in the preamble.

 

“Proceeds” is defined in the Security Agreement.

 

“Security Agreement” is defined in the Credit Agreement.

 

“Secured Obligations” is defined in the Security Agreement.

 

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

 

“Securities Act” is defined in Section 6.2.

 

“Securities Issuer” means any Person listed on Schedule I hereto (as such
Schedule may be supplemented from time to time pursuant to Section 4.1(b)
hereto) that has issued or may issue a Pledged Equity Interest or a Pledged
Note.

 

“Termination Date” is defined in the Security Agreement.

 

“UCC” is defined in the Credit Agreement.

 

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

 

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

 

- 3 -

Pledge Agreement

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

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

 

ARTICLE II

PLEDGE

 

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

 

(a) all promissory notes of each Securities Issuer identified in Item A of
Schedule I hereto (as such Schedule may be supplemented from time to time
pursuant to Section 4.1(b)) opposite the name of such Pledgor and all other
promissory notes of any such Securities Issuer issued from time to time to such
Pledgor, as such promissory notes are amended, modified, supplemented, restated
or otherwise modified from time to time and together with any promissory note of
any Securities Issuer taken in extension or renewal thereof or substitution
therefor (such promissory notes being referred to herein as the “Pledged
Notes”);

 

(b) all issued and outstanding shares of capital stock of each Securities Issuer
which is a corporation (or similar type of issuer) identified in Item B of
Schedule I hereto (as such Schedule may be supplemented from time to time
pursuant to Section 4.1(b)) opposite the name of such Pledgor and all additional
shares of capital stock of any such Securities Issuer from time to time acquired
by such Pledgor in any manner (other than voting capital stock in any Excluded
Foreign Subsidiary, in which case, only 66% of the issued and outstanding shares
of the voting capital stock of such Pledgor in such Excluded Foreign
Subsidiary), and the certificates representing such shares of capital stock
(such shares of capital stock being referred to herein as the “Pledged Shares”);

 

(c) all Equity Interests of each Securities Issuer which is a limited liability
company or partnership identified in Item C or Item D, respectively, of Schedule
I hereto (as such Schedule may be supplemented from time to time pursuant to
Section 4.1(b)) opposite the name of such Pledgor and all additional Equity
Interests of any such Securities Issuer from time to time acquired by such
Pledgor in any manner, including, in each case, (i) the LLC Agreement or
Partnership Agreement, as the case may be, of such Securities Issuer, (ii) all
rights (but not obligations) of such Pledgor as a member or partner thereof, as
the case may be, and all rights to receive Dividends and Distributions from time
to time received, receivable, or otherwise distributed thereunder, (iii) all
claims of such Pledgor for damages arising out of or for breach of or default
under such LLC Agreement or Partnership Agreement, (iv) the right of such
Pledgor to terminate such LLC Agreement or Partnership Agreement, to perform and
exercise consensual or voting rights thereunder, and to compel performance and
otherwise exercise all remedies thereunder, (v) all rights of such Pledgor,
whether as a member or partner thereof, as the case may be, or otherwise, to all
property and assets of such Securities Issuer (whether real property,

 

- 4 -

Pledge Agreement

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

inventory, equipment, accounts, general intangibles, securities, instruments,
chattel paper, documents, choses in action, financial assets, or otherwise) and
(vi) all certificates or instruments evidencing such Equity Interests (such
Equity Interests being referred to herein, in the case of membership interests,
as the “Pledged Membership Interests” and, in the case of partnership interests,
as the “Pledged Partnership Interests”);

 

(d) all Dividends, Distributions, principal, interest, and other payments and
rights with respect to any of the items listed in clauses (a), (b), and
(c) above; and

 

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

 

2.2 Security for Secured Obligations. The Collateral of each Pledgor under this
Agreement secures the prompt payment in full of all Secured Obligations of such
Pledgor and all of the Loan Parties under the Loan Documents.

 

2.3 Delivery of Collateral. All certificates or instruments representing or
evidencing any Collateral, including all Pledged Equity Interests and all
Pledged Notes, shall be delivered to and held by or on behalf of the
Administrative Agent pursuant hereto, shall be in suitable form for transfer by
delivery, and shall be accompanied by all necessary instruments of transfer or
assignment, duly executed in blank.

 

2.4 Dividends on Pledged Equity Interests and Payments on Pledged Notes. In the
event that any Dividend is permitted to be paid on any Pledged Equity Interest
or any payment of principal or interest or other amount is permitted to be made
on any Pledged Note at a time when no Event of Default has occurred and is
continuing, such Dividend or payment may be paid directly to the applicable
Pledgor. If any Event of Default has occurred and is continuing, then any such
Dividend or payment shall be paid directly to the Administrative Agent.

 

2.5 Continuing Security Interest; Transfer of Credit Extensions. This Agreement
shall create a continuing security interest in the Collateral and shall remain
in full force and effect until the Termination Date, be binding upon each
Pledgor and its successors, transferees and assigns, and inure, together with
the rights and remedies of the Administrative Agent hereunder, to the benefit of
the Administrative Agent and each other Secured Party. Without limiting the
generality of the foregoing, any Secured Party may assign or otherwise transfer
(in whole or in part) any Credit Extension held by it to any other Person, and
such other Person shall thereupon become vested with all the rights and benefits
in respect thereof granted to such Secured Party under any Loan Document
(including this Agreement) or otherwise, subject, however, to any contrary
provisions in such assignment or transfer.

 

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

 

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

 

- 5 -

Pledge Agreement

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

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

 

(c) any change in the time, manner or place of payment of, or in any other term
of, all or any of the Secured Obligations or any other extension, compromise or
renewal of any Secured Obligation, including any increase in the Secured
Obligations resulting from the extension of additional credit to any Pledgor or
otherwise;

 

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

 

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

 

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

 

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

 

2.7 Pledgors Remain Liable. Anything herein to the contrary notwithstanding
(a) the exercise by the Administrative Agent of any of its rights hereunder
shall not release any Pledgor from any of its duties or obligations under any
contracts or agreements included in the Collateral and (b) neither the
Administrative Agent nor any other Secured Party shall have any obligation or
liability under any such contracts or agreements included in the Collateral by
reason of this Agreement, nor shall the Administrative Agent or any other
Secured Party be obligated to perform any of the obligations or duties of any
Pledgor thereunder or to take any action to collect or enforce any claim for
payment assigned hereunder.

 

2.8 Subrogation. Until the Termination Date, no Pledgor shall exercise any claim
or other rights which it may now or hereafter acquire against any other Pledgor
that arises from the existence, payment, performance or enforcement of such
Pledgor’s obligations under this Agreement, including any right of subrogation,
reimbursement, exoneration or indemnification, any right to participate in any
claim or remedy against any other Pledgor or any collateral which the
Administrative Agent now has or hereafter acquires, whether or not such claim,
remedy or right arises in equity or under contract, statute or common law,
including the right to take or

 

- 6 -

Pledge Agreement

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

receive from any other Pledgor, directly or indirectly, in cash or other
property or by setoff or in any manner, payment or security on account of such
claim or other rights. If any amount shall be paid to any Pledgor in violation
of the preceding sentence, such amount shall be deemed to have been paid for the
benefit of the Secured Parties, and shall forthwith be paid to the
Administrative Agent to be credited and applied upon the Secured Obligations,
whether matured or unmatured. Each Pledgor acknowledges that it will receive
direct and indirect benefits for the financing arrangements contemplated by the
Loan Documents and that the agreement set forth in this Section is knowingly
made in contemplation of such benefits.

 

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

 

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

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Each Pledgor represents and warrants unto each Secured Party, as at the date of
each pledge and delivery hereunder (including each pledge and delivery of a
Pledged Equity Interest and each pledge and delivery of a Pledged Note) by such
Pledgor to the Administrative Agent of any Collateral, as set forth in this
Article.

 

3.1 Ownership; No Liens, etc. (a) Schedule I hereto accurately identifies as of
the date hereof and as of each date such Schedule is supplemented pursuant to
Section 4.1(b) hereof each Investment in any other Person maintained by such
Pledgor as of such date, other than the following Investments permitted by
Section 7.02 of the Credit Agreement (the “Designated Investments”):

 

(i) in the case of Investments in a Securities Issuer which is an Excluded
Foreign Subsidiary, 34% of the issued and outstanding voting capital stock of
such Person;

 

- 7 -

Pledge Agreement

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

(ii) financial assets maintained in deposit accounts or securities accounts;

 

(iii) permitted Guarantees; and

 

(iv) loans and advances to officers, directors and employees of the Pledgors.

 

(b) Such Pledgor is the legal and beneficial owner of, and has good and
marketable title to (and has full right and authority to pledge and assign) such
Collateral, free and clear of all Liens, except for this security interest
granted pursuant hereto in favor of the Administrative Agent.

 

3.2 Valid Security Interest. The delivery of such Collateral to the
Administrative Agent is effective to create a valid, perfected, first priority
security interest in such Collateral and all Proceeds thereof, subject to no
other Liens, securing the payment of the Secured Obligations. No filing or other
action will be necessary to perfect or protect such security interest.

 

3.3 As to Pledged Notes. Each Pledged Note has been duly authorized, executed,
endorsed, issued and delivered, and is the legal, valid and binding obligation
of the relevant Securities Issuer thereof, and is not in default.

 

3.4 As to Pledged Shares. In the case of any Pledged Share constituting such
Collateral, all of such Pledged Shares are duly authorized and validly issued,
fully paid, and non-assessable, and constitute 100% (or, in the case of a
Securities Issuer that is an Excluded Foreign Subsidiary, 66%) of the issued and
outstanding voting capital stock and 100% of the non-voting shares of capital
stock of each Securities Issuer thereof. The Pledgors have no Subsidiaries other
than those set forth on Schedule 3.4 hereto (including the jurisdiction of
organization).

 

3.5 As to Pledged Membership Interests and Pledged Partnership Interests, etc.
(a) In the case of any Pledged Membership Interests and Pledged Partnership
Interests constituting a part of the Collateral, all of such Pledged Equity
Interests are duly authorized and validly issued, fully paid, and
non-assessable, and constitute all of the issued and outstanding Equity
Interests held by such Pledgor in the applicable Securities Issuer.

 

(b) Each LLC Agreement and Partnership Agreement to which such Pledgor is a
party, true and complete copies of which have been furnished to the
Administrative Agent, has been duly authorized, executed, and delivered by such
Pledgor, has not been amended or

 

- 8 -

Pledge Agreement

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

otherwise modified except as permitted by the Credit Agreement, is in full force
and effect, and is binding upon and enforceable against such Pledgor in
accordance with its terms. There exists no default under any such LLC Agreement
or Partnership Agreement by such Pledgor.

 

(c) Each such LLC Agreement and Partnership Agreement, as the case may be,
expressly provides that the Pledged Membership Interests or Pledged Partnership
Interests, as the case may be, are not “securities” governed by Article 8 of
applicable Uniform Commercial Code.

 

(d) Such Pledgor’s Equity Interest in the applicable Securities Issuer is set
forth in Schedule I hereto, as supplemented from time pursuant to
Section 4.1(b), and Schedule I, as so supplemented, accurately reflects whether
such Equity Interest is in certificated form.

 

(e) Such Pledgor had and has the power and legal capacity to execute and carry
out the provisions of all such LLC Agreements and Partnership Agreements, as the
case may be, to which it is a party. Such Pledgor has substantially performed
all of its obligations to date under all such LLC Agreements and Partnership
Agreements, as the case may be, and has not received notice of the failure of
any other party thereto to perform its obligations thereunder.

 

(f) The state of organization of each Securities Issuer is as set forth in
Schedule I hereto.

 

3.6 Authorization, Approval, etc. No authorization, approval, or other action
by, and no notice to or filing with, any Governmental Authority or any other
Person is required either:

 

(a) for the pledge by such Pledgor of any Collateral pursuant to this Agreement
or for the execution, delivery, and performance of this Agreement by such
Pledgor; or

 

(b) for the exercise by the Administrative Agent of the voting or other rights
provided for in this Agreement or the remedies in respect of the Collateral
pursuant to this Agreement, except, with respect to the Pledged Equity
Interests, as may be required in connection with a disposition of such Pledged
Equity Interests by Laws affecting the offering and sale of securities
generally.

 

3.7 Loan Documents. Each Pledgor makes each representation and warranty made in
each of the Loan Documents by the Borrower or any other Loan Party with respect
to such Pledgor as if such representation and warranty were expressly set forth
herein.

 

ARTICLE IV

COVENANTS

 

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

 

- 9 -

Pledge Agreement

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

4.1 Protect Collateral; Further Assurances, etc. (a) No Pledgor will create or
suffer to exist any Lien on the Collateral (except a Lien in favor of the
Administrative Agent). Each Pledgor will warrant and defend the right and title
herein granted unto the Administrative Agent in and to the Collateral (and all
right, title, and interest represented by the Collateral) against the claims and
demands of all Persons whomsoever.

 

(b) Promptly following any Investment (other than a Designated Investment) made
by any Pledgor in any other Person after the date hereof which is not described
in Schedule I hereto and, in any case, not later than the next date thereafter
on which the Borrower is required to deliver a Compliance Certificate pursuant
to Section 6.02(b) of the Credit Agreement, the Borrower, on behalf of such
Pledgor, shall deliver a supplement to Schedule I hereto which supplement shall
accurately describe such Investment, together with a certificate of Responsible
Officers certifying that, as of the date thereof and after giving effect to the
supplement to such schedule delivered therewith, the representations and
warranties in Article III hereof are true and correct. Following receipt by any
Pledgor of any promissory note or certificate evidencing any such Investment
made by any Pledgor in any such Person which has not been delivered by such
Pledgor to the Administrative Agent in pledge hereunder, such Pledgor shall
deliver such promissory note or other certificate to the Administrative Agent,
indorsed and accompanied by instruments of transfer or assignment as
contemplated by Section 2.3 hereof.

 

(c) Each Pledgor agrees that at any time, and from time to time, at the expense
of such Pledgor, such Pledgor will promptly execute and deliver all further
instruments, and take all further action, that may be necessary, or that the
Administrative Agent may reasonably request, in order to perfect and protect any
security interest granted or purported to be granted hereby or to enable the
Administrative Agent to exercise and enforce its rights and remedies hereunder
with respect to any Collateral.

 

(d) Each Pledgor will not permit any Securities Issuer of any Pledged Equity
Interests pledged by such Pledgor hereunder to issue any certificated Equity
Interest unless the same (or, in the case of a Securities Issuer that is an
Excluded Foreign Subsidiary, 66% of the same that are voting Equity Interests)
is immediately delivered in pledge to the Administrative Agent hereunder.

 

4.2 Powers, Control, etc. (a) Each Pledgor agrees that all certificated Pledged
Equity Interests (and all other certificated Equity Interests constituting
Collateral) delivered by such Pledgor pursuant to this Agreement will be
accompanied by duly executed undated blank powers, or other equivalent
instruments of transfer acceptable to the Administrative Agent.

 

(b) With respect to any Pledged Equity Interests in which any Pledgor has any
right, title or interest and that constitutes an uncertificated security, such
Pledgor will cause the applicable Securities Issuer either (i) to register the
Administrative Agent as the registered owner of such Pledged Equity Interest or
(ii) to deliver a written acknowledgement and agreement to the Administrative
Agent (A) to acknowledge the security interest of the Administrative Agent in
such Pledged Equity Interest granted hereunder, (B) to confirm that such
Securities Issuer has marked the company register for such Pledged Equity
Interest or other applicable records to

 

- 10 -

Pledge Agreement

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

reflect such security interest of the Administrative Agent, (C) to confirm to
the Administrative Agent that it has not received notice of any other Lien in
such Pledged Equity Interest (and has not agreed to accept instructions from any
other Person in respect of such Pledged Equity Interest and will not accept or
execute any instructions to transfer ownership of such Pledged Equity Interest
unless consented to in writing by the Administrative Agent) and (D) to agree
with such Pledgor and the Administrative Agent that, after the occurrence and
during the continuation of an Event of Default, such Securities Issuer will
comply with instructions with respect to such Pledged Equity Interest originated
by the Administrative Agent without further consent of such Pledgor, such
acknowledgement and agreement to be in form and substance reasonably
satisfactory to the Administrative Agent.

 

(c) Each Pledgor which is the Securities Issuer of any Pledged Equity Interests
in which any other Pledgor has any right, title, or interest, hereby
(i) acknowledges the security interest of the Administrative Agent in such
Pledged Equity Interests granted by such other Pledgor hereunder, (ii) confirms
that it has marked its register for such Pledged Equity Interests or other
applicable company records to reflect such security interest of the
Administrative Agent, (iii) confirms that it has not received notice of any
other Lien in such Pledged Equity Interests (and has not agreed to accept
instructions from any other person in respect of such Pledged Equity Interests
and will not accept or execute any instructions to transfer ownership of such
Pledged Equity Interest unless consented to in writing by the Administrative
Agent), (iv) agrees that it will comply with the instructions with respect to
such Pledged Equity Interests originated by the Administrative Agent without
further consent of such other Pledgor and (v) unless the Partnership Agreement
or LLC Agreement, as the case may be, of any such Pledgor already so provides on
the date such Pledgor becomes a party to this Agreement, agrees to promptly
prepare, execute and deliver to each of its partners or members, as the case may
be, any amendment or supplement to such Partnership Agreement or LLC Agreement,
as the case may be, as may be necessary to expressly provide that the Equity
Interests of such Pledgor are not “securities” governed by Article 8 of the
applicable Uniform Commercial Code (and each Pledgor which is a partner or
member of such Pledgor shall promptly execute and deliver such amendment).

 

(d) Each Pledgor will, from time to time upon the request of the Administrative
Agent, promptly deliver to the Administrative Agent such powers, instruments,
and similar documents, satisfactory in form and substance to the Administrative
Agent, with respect to the Collateral as the Administrative Agent may reasonably
request and will, from time to time upon the request of the Administrative Agent
after the occurrence of any Event of Default, promptly transfer any Pledged
Equity Interests or other Equity Interests constituting Collateral into the name
of any nominee designated by the Administrative Agent.

 

4.3 Continuous Pledge. Subject to Section 2.4, each Pledgor will, at all times,
keep pledged to the Administrative Agent pursuant hereto all Pledged Equity
Interests and all other Equity Interests constituting Collateral, all Dividends
and Distributions with respect thereto, all Pledged Notes, all interest,
principal and other proceeds received by the Administrative Agent with respect
to the Pledged Notes, and all other Collateral and other securities,
instruments, proceeds, and rights from time to time received by or distributable
to such Pledgor in respect of any Collateral.

 

- 11 -

Pledge Agreement

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

4.4 Voting Rights; Dividends, etc. Each Pledgor agrees:

 

(a) after any Event of Default shall have occurred and be continuing, promptly
upon receipt thereof by such Pledgor and without any request therefor by the
Administrative Agent, to deliver (properly indorsed where required hereby or
requested by the Administrative Agent) to the Administrative Agent all
Dividends, Distributions, interest, principal, other cash payments, and proceeds
of the Collateral, all of which shall be held by the Administrative Agent as
additional Collateral for use in accordance with Section 6.4; and

 

(b) after any Event of Default shall have occurred and be continuing and the
Administrative Agent has notified such Pledgor of the Administrative Agent’s
intention to exercise its voting power under this clause:

 

(i) the Administrative Agent may exercise (to the exclusion of such Pledgor) the
voting power and all other incidental rights of ownership with respect to any
Pledged Equity Interests or other Equity Interests constituting Collateral and
such Pledgor hereby grants the Administrative Agent an irrevocable proxy,
exercisable under such circumstances, to vote the Pledged Equity Interests and
such other Collateral; and

 

(ii) such Pledgor shall promptly deliver to the Administrative Agent such
additional proxies and other documents as may be necessary to allow the
Administrative Agent to exercise such voting power.

 

All Dividends, Distributions, interest, principal, cash payments, and proceeds
which may at any time and from time to time be held by any Pledgor but which
such Pledgor is then obligated to deliver to the Administrative Agent, shall,
until delivery to the Administrative Agent, be held by each Pledgor separate and
apart from its other property in trust for the Administrative Agent. The
Administrative Agent agrees that until an Event of Default shall have occurred
and be continuing and the Administrative Agent shall have given the notice
referred to in clause (b) above, each Pledgor shall have the exclusive voting
power with respect to any Equity Interests constituting Collateral and the
Administrative Agent shall, upon the written request of each Pledgor, promptly
deliver such proxies and other documents, if any, as shall be reasonably
requested by each Pledgor which are necessary to allow such Pledgor to exercise
voting power with respect to any such Equity Interests constituting Collateral;
provided, however, that no vote shall be cast, or consent, waiver, or
ratification given, or action taken or any action not taken by the Pledgor that
would impair any Collateral or be inconsistent with or violate any provision of
the Credit Agreement or any other Loan Document (including this Agreement).

 

- 12 -

Pledge Agreement

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

4.5 As to LLC Agreements and Partnership Agreements. (a) Each Pledgor of a
Pledged Membership Interest and/or Pledged Partnership Interests shall at its
own expense:

 

(i) perform and observe all the terms and provisions of each LLC Agreement
and/or Partnership Agreement, as the case may be, to which it is a party and
each other contract and agreement included in all the Collateral to be performed
or observed by it, maintain such LLC Agreement and/or Partnership Agreement, as
the case may be, and each such other contract and agreement in full force and
effect, enforce such LLC Agreement and/or Partnership Agreement, as the case may
be, and each such other contract and agreement in accordance with its terms, and
take all such action to such end as may from time to time be reasonably be
requested by the Administrative Agent; and

 

(ii) furnish to the Administrative Agent promptly upon receipt thereof copies of
all material notices, requests and other documents received by such Pledgor
under or pursuant to such LLC Agreement and/or Partnership Agreement, as the
case may be, and any other contract or agreement included in the Collateral to
which it is a party, and from time to time (A) furnish to the Administrative
Agent such information and reports regarding the Collateral as the
Administrative Agent may reasonably request, and (B) upon the reasonable request
of the Administrative Agent, make to any other party to such LLC Agreement
and/or Partnership Agreement, as the case may be, or any such other contract or
agreement such demands and requests for information and reports or for action as
such Pledgor is entitled to make thereunder.

 

(b) No Pledgor of a Pledged Membership Interest and/or Pledged Partnership
Interest, as the case may be, shall, except as otherwise permitted by the Credit
Agreement:

 

(i) cancel or terminate any LLC Agreement, Partnership Agreement or any other
contract or agreement included in the Collateral to which it is a party or
consent to or accept any cancellation or termination thereof;

 

(ii) amend or otherwise modify any such LLC Agreement, Partnership Agreement or
any such contract or agreement or give any consent, waiver, or approval
thereunder;

 

(iii) waive any default under or breach of any such LLC Agreement, Partnership
Agreement or any such other contract or agreement; or

 

(iv) take any other action in connection with any such LLC Agreement or any such
other contract or agreement that would impair the value of the interest or
rights of such Pledgor thereunder or that would impair the interest or rights of
the Administrative Agent.

 

4.6 As to Pledged Notes. Each Pledgor will not, without the prior written
consent of the Administrative Agent:

 

(a) enter into any agreement amending, supplementing, or waiving any provision
of any Pledged Note (including any underlying instrument pursuant to which such
Pledged Note is issued) or compromising or releasing or extending the time for
payment of any obligation of the maker thereof; or

 

- 13 -

Pledge Agreement

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

(b) take or omit to take any action the taking or the omission of which could
result in any impairment or alteration of any obligation of the maker of any
Pledged Note or other instrument constituting Collateral.

 

ARTICLE V

THE ADMINISTRATIVE AGENT

 

5.1 Appointment as Attorney-in-Fact. Each Pledgor 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 Pledgor and in
the name of such Pledgor or in its own name, for the purpose of carrying out the
terms of this Agreement, to take, upon the occurrence and during the
continuation of any Event of Default, any and all appropriate action and to
execute any and all documents and instruments that may be necessary or desirable
to accomplish the purposes of this Agreement. Without limiting the generality of
the foregoing (and in addition to the powers and rights granted to the
Administrative Agent pursuant to Article V of the Security Agreement), each
Pledgor hereby gives the Administrative Agent the power and right, on behalf of
such Pledgor, without notice to or assent by such Pledgor, to do any or all of
the following:

 

(a) in the name of such Pledgor 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 or in respect of any 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 or in respect of any
Collateral whenever payable; and

 

(b) (i) direct any party liable for any payment under any of the Collateral to
make payment of any and all moneys due or to become due thereunder directly to
the Administrative Agent or as the Administrative Agent shall direct; (ii) ask
or demand for, collect, and receive payment of and give receipt for, any and all
moneys, claims and other amounts due or to become due at any time in respect of
or arising out of any Collateral; (iii) receive, collect, sign and indorse any
drafts or other instruments, documents and chattel paper in connection with any
of the Collateral; (iv) commence and prosecute any suits, actions or proceedings
at Law or in equity in any court of competent jurisdiction to collect the
Collateral or any portion thereof and to enforce any other right in respect of
any Collateral; (v) defend any suit, action or proceeding brought against such
Pledgor with respect to any Collateral; (vi) settle, compromise or adjust any
such suit, action or proceeding and, in connection therewith, give such
discharges or releases as the Administrative Agent may deem appropriate; and
(vii) 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 Pledgor’s expense, at any
time, or from time to time, all acts and things that the Administrative Agent
deems necessary to protect, preserve or realize upon the Collateral and the
Secured Parties’ security interests therein and to effect the intent of this
Agreement, all as fully and effectively as such Pledgor might do.

 

- 14 -

Pledge Agreement

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

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

 

5.2 Administrative Agent May Perform. If any Pledgor fails to perform any
agreement contained herein, the Administrative Agent may itself perform, or
cause performance of, such agreement, and the reasonable expenses of the
Administrative Agent incurred in connection therewith shall be payable by such
Pledgor pursuant to Section 6.5.

 

5.3 Administrative Agent Has No Duty. (a) In addition to, and not in limitation
of, Section 2.7, the powers conferred on the Administrative Agent hereunder are
solely to protect its interest (on behalf of the Secured Parties) in the
Collateral and shall not impose any duty on it to exercise any such powers.
Neither the Administrative Agent nor any of its officers, directors, employees
or agents shall be liable for failure to demand, collect or realize upon any of
the Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of any Pledgor or
any other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof (including the taking of any necessary steps to
preserve rights against prior parties or any other rights pertaining to any
Collateral). Neither the Administrative Agent nor any of its officers,
directors, employees or agents shall be responsible to any Pledgor for any act
or failure to act hereunder, except for their own gross negligence or willful
misconduct.

 

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

 

ARTICLE VI

REMEDIES

 

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

 

(a) The Administrative Agent may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party on default under the UCC
and also may, without demand of performance or other demand, presentment,
protest, advertisement or notice of any kind (except any notice required by
applicable Law referred to below) to or upon any Pledgor or any other Person
(all and each of which demands, defenses, advertisements and notices are hereby
waived), sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do any
of the foregoing) in one or more parcels at public or private sale, at any of
the Administrative Agent’s offices or elsewhere, for cash, on credit or for
future delivery, and upon such other terms as the Administrative Agent may deem
commercially reasonable. Each Pledgor agrees that, to the extent notice of sale
shall be required by applicable Law, at least ten (10) days’ prior notice to
such Pledgor of the time and

 

- 15 -

Pledge Agreement

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

place of any public sale or the time after which any private sale is to be made
shall constitute reasonable notification. The Administrative Agent shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given. The Administrative Agent may adjourn any public or private sale from
time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so
adjourned.

 

(b) The Administrative Agent may:

 

(i) transfer all or any part of the Collateral into the name of the
Administrative Agent or its nominee, with or without disclosing that such
Collateral is subject to the lien and security interest hereunder;

 

(ii) notify the parties obligated on any of the Collateral to make payment to
the Administrative Agent of any amount due or to become due thereunder;

 

(iii) enforce collection of any of the Collateral by suit or otherwise, and
surrender, release or exchange all or any part thereof, or compromise or extend
or renew for any period (whether or not longer than the original period) any
obligations of any nature of any party with respect thereto;

 

(iv) indorse any checks, drafts, or other writings in each Pledgor’s name to
allow collection of the Collateral;

 

(v) take control of any proceeds of the Collateral;

 

(vi) execute (in the name, place and stead of each Pledgor) indorsements,
assignments, stock powers and other instruments of conveyance or transfer with
respect to all or any of the Collateral; and

 

(vii) enforce compliance with, and take any and all actions with respect to, a
LLC Agreement or Partnership Agreement, as the case may be, to the full extent
as though the Administrative Agent were the absolute owner of the Pledged
Membership Interests, Pledged Partnership Interests and other Collateral,
including the right to receive all distributions and other payments that are
made pursuant to such LLC Agreement or Partnership Agreement, as the case may
be.

 

The Administrative Agent shall give the Pledgors ten (10) days’ written notice
(which each Pledgor agrees is reasonable notice within the meaning of
Section 9-612 of the UCC) of the Administrative Agent’s intention to make any
sale of Collateral. Such notice, in the case of a public sale, shall state the
time and place for such sale and, in the case of a sale at a broker’s board or
on a securities exchange, shall state the board or exchange at which such sale
is to be made and the day on which the Collateral, or portion thereof, will
first be offered for sale at such board or exchange. Any such public sale shall
be held at such time or time within ordinary business hours and at such place or
places as the Administrative Agent may fix and state in the

 

- 16 -

Pledge Agreement

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

notice (if any) of such sale. At any such sale, the Collateral, or portion
thereof, to be sold may be sold in one lot as an entirety or in separate
parcels, as the Administrative Agent may (in its sole and absolute discretion)
determine. The Administrative Agent shall not be obligated to make any sale of
any Collateral if it shall determine not to do so, regardless of the fact that
notice of sale of such Collateral shall have been given. The Administrative
Agent may, without notice or publication adjourn any public or private sale or
cause the same to be adjourned from time to time by announcement at the time and
place fixed for sale, and such sale may, without further notice, be made at the
time and place to which the same was so adjourned. In case any sale of all or
any part of the Collateral is made on credit or for future delivery, the
Collateral so sold may be retained by the Administrative Agent until the sale
price is paid by the purchase or purchasers thereof, but the Administrative
Agent shall not incur any liability in case any such purchaser or purchasers
shall fail to take up and pay for the Collateral so sold and, in case of any
such failure, such Collateral may be sold again upon like notice. At any public
(or, to the extent permitted by Law, private) sale made pursuant to this
Section, the Administrative Agent (for the Secured Parties) may bid for or
purchase, free (to the extent permitted by Law) from any right of redemption,
stay, valuation or appraisal on the part of any Pledgor (all said rights being
also hereby waived and released to the extent permitted by Law), the Collateral
or any part thereof offered for sale and may make payment on account thereof by
using any claim then due and payable to such Secured Party from any Pledgor as a
credit against the purchase price, and the Administrative Agent (for such
Secured Party) may upon compliance with the terms of sale, hold, retain and
dispose of such property without further accountability to any Pledgor therefor.

 

6.2 Securities Laws. If the Administrative Agent shall determine to exercise its
right to sell all or any of the Collateral pursuant to Section 6.1, each Pledgor
agrees that, upon request of the Administrative Agent, such Pledgor will, at its
own expense:

 

(a) execute and deliver, and cause each issuer of the Collateral contemplated to
be sold and the directors and officers thereof to execute and deliver, all such
instruments and documents, and do or cause to be done all such other acts and
things, as may be necessary or, in the opinion of the Administrative Agent,
advisable to register such Collateral under the provisions of the Securities Act
of 1933, as from time to time amended (the “Securities Act”), and to cause the
registration statement relating thereto to become effective and to remain
effective for such period as prospectuses are required by Law to be furnished,
and to make all amendments and supplements thereto and 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;

 

(b) use its best efforts to qualify the Collateral under the state securities or
“Blue Sky” Laws and to obtain all necessary governmental approvals for the sale
of the Collateral, as requested by the Administrative Agent;

 

(c) cause each such issuer to make available to its security holders, as soon as
practicable, an earnings statement that will satisfy the provisions of
Section 11(a) of the Securities Act; and

 

- 17 -

Pledge Agreement

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

(d) do or cause to be done all such other acts and things as may be necessary to
make such sale of the Collateral or any part thereof valid and binding and in
compliance with applicable Law.

 

Each Pledgor further acknowledges the impossibility of ascertaining the amount
of damages that would be suffered by the Administrative Agent or the Secured
Parties by reason of the failure by such Pledgor to perform any of the covenants
contained in this Section 6.2 and, consequently, to the extent permitted under
applicable Law, agrees that, if such Pledgor shall fail to perform any of such
covenants, it shall pay, as liquidated damages and not as a penalty, an amount
equal to the value (as determined by the Administrative Agent) of the Collateral
on the date the Administrative Agent shall demand compliance with this
Section 6.2.

 

6.3 Compliance with Restrictions. Each Pledgor agrees that in any sale of any of
the Collateral whenever an Event of Default shall have occurred and be
continuing, the Administrative Agent is hereby authorized to comply with any
limitation or restriction in connection with such sale as it may be advised by
counsel is necessary in order to avoid any violation of applicable Law
(including compliance with such procedures as may restrict the number of
prospective bidders and purchasers, require that such prospective bidders and
purchasers have certain qualifications, and restrict such prospective bidders
and purchasers to persons who will represent and agree that they are purchasing
for their own account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required approval of the
sale or of the purchaser by any Governmental Authority or official, and each
Pledgor further agrees that such compliance shall not result in such sale being
considered or deemed not to have been made in a commercially reasonable manner,
nor shall the Administrative Agent be liable nor accountable to any Pledgor for
any discount allowed by reason of the fact that such Collateral is sold in
compliance with any such limitation or restriction.

 

6.4 Application of Proceeds. All cash proceeds received by the Administrative
Agent in respect of any sale of, collection from, or other realization upon, all
or any part of the Collateral shall be applied (after payment of any amounts
payable to the Administrative Agent pursuant to Section 6.2 of the Security
Agreement and Section 6.5 below) in whole or in part by the Administrative Agent
for the ratable benefit of the Secured Parties against all or any part of the
Secured Obligations in accordance with Section 8.03 of the Credit Agreement. Any
surplus of such cash or cash proceeds held by the Administrative Agent and
remaining after payment in full in cash of all the Secured Obligations and the
termination of this Agreement as provided in Section 2.9(b) hereof, shall be
paid over to the applicable Pledgor or to whomsoever may be lawfully entitled to
receive such surplus.

 

6.5 Indemnity and Expenses. Each Pledgor agrees to jointly and severally
indemnify the Administrative Agent (and any sub-agent thereof), each other
Secured Party, and each Related Party of any of the foregoing Person (each such
Person being called an “Indemnitee”) against, and hold each such Indemnitee
harmless from, any and all losses, claims, damages, liabilities or related
expenses (including the fees, charges and disbursements of any counsel for any
Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by

 

- 18 -

Pledge Agreement

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

any third party or by any Borrower or other Loan Party arising out of, in
connection with, this Agreement and the other Loan Documents (including
enforcement of this Agreement and the other Loan Documents); provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities and related expenses (x) are determined by
a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or
(y) result from a claim brought by the Loan Party against an Indemnitee for
breach in bad faith of such Indemnitee’s obligations hereunder or under any
other Loan Document, if such other Loan Party has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction. Each Pledgor will, upon demand, pay to the
Administrative Agent the amount of any and all reasonable expenses, including
its reasonable counsel fees, charges and disbursements, and the reasonable fees
and disbursements of any experts and agents, which the Administrative Agent may
incur, subject to the foregoing limitations, in connection with the following:

 

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

 

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

 

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

 

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

 

6.6 Waivers. Each Pledgor hereby waives any right, to the extent permitted by
applicable Law, to receive prior notice of or a judicial or other hearing with
respect to any action or prejudgment remedy or proceeding by the Administrative
Agent to take possession, exercise control over or dispose of any item of
Collateral where such action is permitted under the terms of this Agreement or
any other Loan Document or by applicable Laws or the time, place or terms of
sale in connection with the exercise of the Administrative Agent’s rights
hereunder. Each Pledgor waives, to the extent permitted by applicable Laws, any
bonds, security or sureties required by the Administrative Agent with respect to
any of the Collateral. Each Pledgor also waives any damages (direct,
consequential or otherwise) occasioned by the enforcement of the Administrative
Agent’s rights under this Agreement or any other Loan Document, including, the
taking of possession of any Collateral, all to the extent that such waiver is
permitted by applicable Laws. These waivers and all other waivers provided for
in this Agreement and the other Loan Documents have been negotiated by the
parties and each Pledgor acknowledges that it has been represented by counsel of
its own choice and has consulted such counsel with respect to its rights
hereunder.

 

- 19 -

Pledge Agreement

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

ARTICLE VII

MISCELLANEOUS PROVISIONS

 

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

 

(b) Concurrently herewith each Pledgor is executing and delivering the Security
Agreement pursuant to which such Pledgor is granting a security interest to the
Administrative Agent in certain properties and assets of such Pledgor as
described in the Security Agreement (other than the Collateral hereunder). Such
security interests shall be governed by the terms of the Security Agreement and
not by this Agreement.

 

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

 

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

 

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

 

(c) Upon delivery by the Borrower of each certificate of Responsible Officers
certifying a supplement to Schedule I pursuant to Section 4.1(b), the schedule
supplement attached to each such certificate shall be incorporated into and
become part of and supplement Schedule I hereto, and the Administrative Agent
may attach such schedule supplement to such Schedule and each reference to such
Schedule shall mean and be a reference to such Schedule, as supplemented
pursuant hereto.

 

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

 

7.3 Addresses for Notices. All notices and other communications provided for
hereunder shall be in writing and mailed, delivered or transmitted by telecopier
to either party hereto at the address set forth in Section 10.02 of the Credit
Agreement (with any notice to a

 

- 20 -

Pledge Agreement

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

Pledgor other than the Borrower being delivered to such Pledgor in care of the
Borrower). All such notices and other communications shall be deemed to be given
or made at the times provided in Section 10.02 of the Credit Agreement.

 

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

 

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

 

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

 

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

 

(b) EACH PLEDGOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW
YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE
SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT; PROVIDED,
HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER
PROPERTY SHALL BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS
OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH
OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW
YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH
FEDERAL

 

- 21 -

Pledge Agreement

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

COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT
THAT THE ADMINISTRATIVE AGENT OR ANY OTHER SECURED PARTY MAY OTHERWISE HAVE TO
BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST ANY PLEDGOR OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

 

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

 

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

 

7.8 Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO TRIAL BY JURY OF ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

- 22 -

Pledge Agreement

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

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

 

[Signature Page Follows]

 

Pledge Agreement

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

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

 

FIRST ADVANTAGE CORPORATION,

a Delaware corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

AMERICAN DRIVING RECORDS, INC.,

a California corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

FIRST ADVANTAGE BACKGROUND SERVICES CORP.,

A Florida corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

FIRST ADVANTAGE COREFACTS, LLC,

a Virginia limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

FIRST ADVANTAGE ENTERPRISE SCREENING CORPORATION,

a Florida corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

 

S-1

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

FIRST ADVANTAGE GOVERNMENT SERVICES LLC,

a Delaware limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   President

FIRST ADVANTAGE OCCUPATIONAL HEALTH SERVICES CORP.,

a Florida corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

FIRST ADVANTAGE PUBLIC RECORDS, LLC,

a Delaware limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

FIRST ADVANTAGE SAFERENT, INC.,

a Delaware corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

FIRST ADVANTAGE TAX CONSULTING SERVICES, LLC,

a Delaware limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

 

S-2

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

FIRST AMERICAN INDIAN HOLDINGS LLC,

a Delaware limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

JENARK BUSINESS SYSTEMS, INC.,

a Maryland corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

NATIONAL DATA REGISTRY, LLC,

a Delaware limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

NATIONAL BACKGROUND DATA, LLC,

a Delaware limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

OMEGA INSURANCE SERVICES, INC.,

a Florida corporation

By:  

/s/ Richard J. Taffet

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

Name:   Richard J. Taffet Title:   President

 

S-3

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

PEA SOUP MERGER CORPORATION,

a Florida corporation

By:  

/s/ John Long

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

Name:   John Long Title:   President

PROUDFOOT REPORTS INCORPORATED,

a New York corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

QUANTITATIVE RISK SOLUTIONS LLC,

an Arizona limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

REALEUM, INC.,

a Delaware corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

US SEARCH.COM INC.,

a Delaware corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

 

S-4

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

MULTIFAMILY COMMUNITY INSURANCE

AGENCY, INC.,

a Maryland corporation

By:  

/s/ John Long

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

Name:   John Long Title:   Chairman

FIRST AMERICAN MEMBERSHIP

SERVICES, INC.,

a California corporation

By:  

/s/ John Long

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

Name:   John Long Title:   President

FIRST AMERICAN CREDCO OF

PUERTO RICO, INC.,

a Delaware corporation

By:  

/s/ John Long

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

Name:   John Long Title:   President

CIG INVESTMENTS, LLC,

a Delaware limited liability company

By:  

/s/ John Long

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

Name:   John Long Title:   President

NORTH AMERICAN CREDCO, INC.,

a Delaware corporation

By:  

/s/ John Long

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

Name:   John Long Title:   President

 

S-5

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

FIRST AMERICAN CREDIT MANAGEMENT

SOLUTIONS, INC.,

a Delaware corporation

By:

 

/s/ John Long

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

Name:

 

John Long

Title:

 

President

CMSI CREDIT SERVICES, INC.,

a Maryland corporation

By:

 

/s/ John Long

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

Name:

 

John Long

Title:

 

President

CREDITREPORTPLUS, LLC,

a Maryland limited liability company

By:

 

/s/ John Long

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

Name:

 

John Long

Title:

 

President

BAR NONE, INC.,

a Delaware corporation

By:

 

/s/ John Long

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

Name:

 

John Long

Title:

 

President

TELETRACK, INC.,

a Georgia corporation

By:

 

/s/ John Long

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

Name:

 

John Long

Title:

 

President

 

S-6

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

FIRST ADVANTAGE CIG, LLC

a Delaware limited liability company

By:  

/s/ John Lamson

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

Name:   John Lamson Title:   CFO

 

S-7

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

ACKNOWLEDGED AND ACCEPTED:

 

BANK OF AMERICA, N.A.,

as Administrative Agent

By:  

/s/ Cameron Cardozo

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

Name:   Cameron Cardozo Title:   Senior Vice President

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

SCHEDULE 3.4

 

SUBSIDIARIES

 

    

STATE

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

American Driving Records, Inc.    CA Bar None, Inc.    DE CIG Investments, LLC
   DE CMSI Credit Services, Inc.    MD CreditReportsPlus LLC    MD First
Advantage Background Services Corp    FL First Advantage Canada, Inc.   
Ontario, Canada First Advantage CIG, LLC    DE First Advantage CoreFacts, LLC   
VA First Advantage Enterprise Screening Corporation    DE First Advantage
Government Services, LLC    DE First Advantage Occupational Health Services Corp
   FL First Advantage Public Records, LLC    DE First Advantage Quest Research
Corporation    Cayman Islands First Advantage Quest Research Group Ltd   
British Virgin Islands First Advantage Quest Research Limited    Hong Kong First
Advantage Quest Research Private Limited    India First Advantage Quest Research
PTE, Ltd    Singapore First Advantage Quest Research PTY, Ltd    Australia First
Advantage SafeRent, Inc.    DE First Advantage Tax Consulting Services, LLC   
DE First American Credco of Puerto Rico, Inc.    DE First American Credit
Management Solutions, Inc.    DE First American Indian Holdings, LLC    DE First
American Membership Services, Inc.    CA First Canadian Credco, Inc.    Ontario,
Canada Jenark Business Systems, Inc.    MD Multifamily Community Insurance
Agency, Inc.    MD National Background Data, LLC    DE National Data Registry,
LLC    DE North American Credco, Inc.    DE Omega Insurance Services, Inc.    FL
Pea Soup Merger Corp    FL PrideRock Holding Company, Inc.    Alabama Proudfoot
Reports Incorporated    NY Quantitative Risk Solutions LLC dba First Advantage
Supply Security Division    AZ Realeum, Inc.    DE Teletrack Canada, Inc.   
Ontario, Canada Tele-Track, Inc.    GA US Search.com, Inc.    DE ZAPAPP India
Private Ltd    India

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

Schedule I

 

Item A. Pledged Notes

 

Pledgor

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

  

Securities Issuer

(Jurisdiction of Organization)

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

  

Date

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

     Original Principal
Amount

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

First Advantage Corporation ("FADV")   

AMERICAN DRIVING

RECORDS, INC.

(California)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE

BACKGROUND SERVICES

CORP.

(Florida)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE

COREFACTS, LLC

(Virginia)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE

ENTERPRISE SCREENING

CORPORATION

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE

GOVERNMENT SERVICES LLC

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE

OCCUPATIONAL HEALTH

SERVICES CORP.

(Florida)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE PUBLIC

RECORDS, LLC

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE

SAFERENT, INC.

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE TAX

CONSULTING SERVICES, LLC

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

FIRST AMERICAN INDIAN

HOLDINGS LLC

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

JENARK BUSINESS SYSTEMS,

INC.

(Maryland)

   September 28, 2005      $ 225,000,000 FADV   

NATIONAL DATA REGISTRY,

LLC,

(Delaware)

   September 28, 2005      $ 225,000,000

 

Intercompany Promissory Note

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

Schedule I

 

Pledgor

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

  

Securities Issuer

(Jurisdiction of Organization)

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

  

Date

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

     Original Principal
Amount

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

FADV   

NATIONAL BACKGROUND

DATA, LLC

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

OMEGA INSURANCE

SERVICES, INC.

(Florida)

   September 28, 2005      $ 225,000,000 FADV   

PEA SOUP MERGER

CORPORATION

(Florida)

   September 28, 2005      $ 225,000,000 FADV   

PROUDFOOT REPORTS

INCORPORATED

(New York)

   September 28, 2005      $ 225,000,000 FADV   

QUANTITATIVE RISK

SOLUTIONS LLC,

(Arizona)

   September 28, 2005      $ 225,000,000 FADV   

REALEUM, INC.

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

US SEARCH.COM INC.

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

MULTIFAMILY COMMUNITY

INSURANCE AGENCY, INC.

(Maryland)

   September 28, 2005      $ 225,000,000 FADV   

FIRST AMERICAN

MEMBERSHIP SERVICES, INC.

(California)

   September 28, 2005      $ 225,000,000 FADV   

FIRST AMERICAN CREDCO OF

PUERTO RICO, INC.

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

CIG INVESTMENTS, LLC

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

NORTH AMERICAN CREDCO,

INC.

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

FIRST AMERICAN CREDIT

MANAGEMENT SOLUTIONS,

INC.

(Delaware)

   September 28, 2005      $ 225,000,000

 

Intercompany Promissory Note

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

Schedule I

 

Pledgor

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

  

Securities Issuer

(Jurisdiction of Organization)

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

  

Date

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

     Original Principal
Amount

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

FADV   

CMSI CREDIT SERVICES, INC.

(Maryland)

   September 28, 2005      $ 225,000,000 FADV   

CREDITREPORTPLUS, LLC

(Maryland)

   September 28, 2005      $ 225,000,000 FADV   

BAR NONE, INC.

(Delaware)

   September 28, 2005      $ 225,000,000 FADV   

TELETRACK, INC.

(Georgia)

   September 28, 2005      $ 225,000,000 FADV   

FIRST ADVANTAGE CIG, LLC

(Delaware)

   September 28, 2005      $ 225,000,000

 

Item B. Pledged Shares

 

Pledgor

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

  

Securities Issuer

(Jurisdiction of Organization)

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

   Authorized
Shares
Interests

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

   Outstanding
Shares

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

   % of
Shares
Pledged

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

       Certificate
No.

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

FADV   

American Driving

Records, Inc.

(California)

   100,000    100    100 %      *24 FADV   

First Advantage

Background Services

Corp (Florida)

   100    100    100 %      19 FADV   

First Advantage

Canada, Inc. (Ontario,

Canada)

   Unlimited
number of
common
shares    .66    66 %      3 FADV   

First Advantage

Enterprise Screening

Corporation

(Delaware)

   1,000    100    100 %      2 FADV   

First Advantage

Occupational Health

Services Corp (Florida)

   10,000    772.196    100 %      68 FADV   

First Advantage Quest

Research Corporation

(Cayman Islands)

   50,000    1    66 %      001

 

Intercompany Promissory Note

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

Schedule I

 

Pledgor

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

  

Securities Issuer

(Jurisdiction of Organization)

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

  

Authorized
Shares
Interests

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

  

Outstanding
Shares

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

   % of
Shares
Pledged

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

      

Certificate
No.

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

FADV   

First Advantage

Saferent, Inc.

(Delaware)

   1,000    100    100 %      2 FADV   

Jenark Business

Systems, Inc.

(Maryland)

   1,000    800    100 %      7 FADV   

Omega Insurance

Services, Inc.

(Florida)

   100,000    90,000    100 %      3 FADV   

Pea Soup Merger

Corporation

(Florida)

   100    100    100 %      1 FADV   

PrideRock Holding

Company, Inc.

(Alabama)

   100,000    60,000    60 %      3 FADV   

Proudfoot Reports

Incorporated

(New York)

   2,000,000    1,900,000    100 %      9 FADV   

Realeum, Inc.

(Delaware)

   100    100    100 %      1 FADV   

U.S. Search.com, Inc.

(Delaware)

   100    100    100 %      1 FADV   

First American

Membership Services

(California)

   100    100    100 %      2 FADV   

North American

Credco, Inc.

(Delaware)

   100    100    100 %      2 FADV   

First American Credit

Management Solutions,

Inc. (Delaware)

   3000    1    100 %      3 FADV   

Tele-Track, Inc.

(Georgia)

   10,000    4,004    100 %      6 FADV   

Bar None, Inc.

(Delaware)

   100    100    100 %      2

American

Driving Records,

Inc

  

ZAPAPP India Private

Ltd. (India)

             66 %      9

First American

Indian Holdings

LLC

  

ZAPAPP India Private

Ltd. (India)

             66 %      11

 

Intercompany Promissory Note

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

Schedule I

 

Pledgor

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

  

Securities Issuer

(Jurisdiction of Organization)

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

  

Authorized
Shares
Interests

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

  

Outstanding
Shares

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

   % of
Shares
Pledged

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

      

Certificate
No.

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

First Advantage

SafeRent, Inc.

  

Multifamily

Community Insurance

Agency (Maryland)

   1,000    100    100 %      2

First Advantage

CIG, LLC

  

First American Credco

of Puerto Rico, Inc.

(Delaware)

   1,000    1,000    100 %      3

North American

Credco, Inc.

  

First Canadian Credco,

Inc. (Ontario, Canada)

   Unlimited    66    66 %      C-2

First American

Credit

Management

Solutions, Inc.

  

CMSI Credit Services,

Inc. (Maryland)

   1,000    100    100 %      2

First American

Credit

Management

Solutions, Inc.

  

Dealertrack Holdings,

Inc.

(Delaware)

  

Series A-2 Preferred -4,450,000

 

Series C-3

Preferred -1,485,000

  

4,071,618

 

 

 

 

1,357,206

   20.95 %     

A2-1

 

 

 

 

C3-1

Tele-Track, Inc.   

Teletrack Canada,

Inc.(Ontario, Canada)

  

Unlimited

number of

common

stock

   100    66 %      C-2

 

Item C. Pledged Membership Interests

 

Pledgor

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

  

Securities Issuer

(Jurisdiction of Organization)

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

    

No. of
Membership
Interests

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

     Membership
Interests % of
Interests
Pledged

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

      

Certificated
Certificate
No.

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

FADV   

First Advantage CIG LLC

(Delaware)

     1      100 %      N/A FADV   

First Advantage Corefacts,

LLC (Virginia)

     1      100 %      N/A FADV   

First Advantage Government

Services, LLC (Delaware)

     1      100 %      N/A

 

Intercompany Promissory Note

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

Schedule I

 

FADV   

First Advantage Public

Records, LLC (Delaware)

     1      100 %      N/A FADV   

First Advantage Tax

Consulting Services, LLC

(Delaware)

     1      100 %      N/A FADV   

First American Indian

Holdings, LLC (Delaware)

     1      100 %      N/A FADV   

National Data Registry, LLC

(Delaware)

     1      100 %      N/A FADV   

National Background Data,

LLC (Delaware)

     1      100 %      N/A FADV   

Quantitative Risk Solutions

LLC d/b/a First Advantage

Supply Security Division

(Arizona)

     1      100 %      N/A FADV   

CIG Investments, LLC

(Delaware)

     1      100 %      N/A

First American

Credit

Management

Solutions, Inc.

  

CreditReportPlus LLC

(Maryland)

     1      100 %      N/A

 

Item D. Pledged Partnership Interests

 

None.

 

Intercompany Promissory Note

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

EXHIBIT A

to

Pledge Agreement

 

[Date]

 

INTERCOMPANY

 

PROMISSORY NOTE1

 

$            

 

FOR VALUE RECEIVED, the undersigned,                     , (the “Maker”)
unconditionally promises to pay to the order of [NAME OF PLEDGOR], the “Payee”)
on demand, the principal sum of                      DOLLARS ($            ), or
if less, the aggregate unpaid principal amount set forth on the schedule
attached hereto and made a part hereof (and any continuation thereof),
representing the aggregate principal amount of an intercompany loan made by the
Payee to the Maker.

 

The unpaid principal amount of this promissory note (this “Note”) from time to
time outstanding shall bear interest at a rate of interest equal to             
, which the Maker represents to be a lawful and commercially reasonable rate,
payable             , and all payments of principal of and interest on this Note
shall be payable in lawful currency of the United States of America. All such
payments shall be made by the Maker to an account established by the Payee at
such financial institution as is specified by the Payee to the Maker from time
to time and shall be recorded on the grid attached hereto by the holder hereof
(including the Administrative Agent (as hereinafter defined), as pledgee). Upon
the occurrence and during the continuance of any Event of Default (as hereafter
defined), and notice thereof by the Administrative Agent to the Maker, (a) the
Maker shall make every payment due under this Note, in same day funds, to such
other account as the Administrative Agent shall direct in such notice and
(b) the Administrative Agent shall have all rights of the Payee to collect and
accelerate, and enforce all rights with respect to, the indebtedness evidenced
by this Note.

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

1 Each Intercompany Promissory Note in which the Maker is the Borrower shall
have Annex A hereto attached to it and shall contain the following legend:

 

“THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS SUBORDINATE AND JUNIOR IN RIGHT OF
PAYMENT TO ALL SENIOR INDEBTEDNESS (AS DEFINED IN ANNEX A HERETO) TO THE EXTENT
PROVIDED IN SAID ANNEX A.”

 

Intercompany Promissory Note

- 2 -

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

The Maker may not prepay the unpaid principal of this Note at any time after the
occurrence and during the continuance of an Event of Default.

 

Unless otherwise defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Pledge Agreement, dated as of
September 28, 2005 (as amended, supplemented, restated or otherwise modified
from time to time, the “Pledge Agreement”), from the Payee and certain other
Persons in favor of the Bank of America, N.A., as administrative agent (the
“Administrative Agent”) for the Secured Parties referred to therein.

 

This Note is one of the Pledged Notes referred to in the Pledge Agreement and
has been pledged to the Administrative Agent as security for the Secured
Obligations.

 

In addition to, but not in limitation of, the foregoing, the Maker further
agrees to pay all expenses, including reasonable attorneys’ fees and legal
expenses, incurred by the holder (including the Administrative Agent, as
pledgee) of this Note endeavoring to collect any amounts payable hereunder which
are not paid when due, whether by acceleration or otherwise.

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF NEW YORK.

 

THE MAKER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THIS NOTE. THE
MAKER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE PAYEE TO ACCEPT THIS NOTE.

 

[NAME OF MAKER] By:  

 

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

Name:     Title:    

 

 

Intercompany Promissory Note

- 3 -

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

GRID

 

Intercompany Loans made by [Name of Pledgor] to [Name of Pledged Note Issuer]
and payments of principal on such Loans.

 

Date

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

    

Amount of

Intercompany

Loan

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

     Amount of
Principal
Payment

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

     Outstanding
Principal
Balance

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

     Notation Made
By

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

                                                                                
                                                                             
                                                                                
                             

 

Endorsement

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

ENDORSEMENT

 

FOR VALUE RECEIVED, the undersigned, as the Payee under that certain Promissory
Noted dated                          ,          (the “Note”), by [Name of Maker]
(together with its successors and permitted assigns, the “Maker”) in favor of
the undersigned, does hereby (a) sell, assign and transfer unto
                             (“Assignee”) all right, title and interest of the
undersigned in and to the Note and (b) irrevocably direct the Maker to pay all
amounts under the Note to the order of Assignee.

 

[NAME OF PAYEE] By:  

 

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

Name:     Title:     Date:  

 

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

 

 

Intercompany Promissory Note

-2-

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

Annex A

to

Exhibit A

to

Pledge Agreement

 

SUBORDINATION PROVISIONS TO INTERCOMPANY NOTE

 

[Each Intercompany Promissory Note in which the maker is the Borrower shall have
the following subordination provisions attached as Annex A thereto.]

 

1.1 Subordination of Liabilities.                              (the “Company”),
for itself, its successors and assigns, covenants and agrees, and each holder of
the Intercompany Promissory Note to which this Annex A is attached (the “Note”)
by its acceptance thereof likewise covenants and agrees, that the payment of the
principal of, interest on, and all other amounts owing in respect of, the Note
(the “Subordinated Indebtedness”) is hereby expressly subordinated, to the
extent and in the manner hereinafter set forth, to the prior payment in full in
cash of all Senior Indebtedness (as defined in Section 1.7 of this Annex A). The
provisions of this Annex A shall constitute a continuing offer to all Persons
who, in reliance upon such provisions, become holders of, or continue to hold,
Senior Indebtedness, and such provisions are made for the benefit of the holders
of Senior Indebtedness, and such holders are hereby made obligees hereunder the
same as if their names were written herein as such, and they and/or each of them
may proceed to enforce such provisions.

 

1.2 Company Not to Make Payments with Respect to Subordinated Indebtedness in
Certain Circumstances.

 

(a) Upon the maturity of any Senior Indebtedness (including interest thereon or
fees or any other amounts owing in respect thereof), whether at stated maturity,
by acceleration or otherwise, all Obligations (as defined in Section 1.7 of this
Annex A) owing in respect thereof, in each case to the extent due and owing,
shall first be paid in full in cash before any payment (whether in cash,
property, securities or otherwise) is made on account of the Subordinated
Indebtedness.

 

(b) If any Default or Event of Default under the Credit Agreement (as defined in
Section 1.7 of this Annex A) is in existence the Company may not, directly or
indirectly, make any payment of any Subordinated Indebtedness and may not
acquire any Subordinated Indebtedness for cash or property until all Senior
Indebtedness has been paid in full in cash. Each holder of the Note hereby
agrees that, so long as any such Default or Event of Default in respect of any
issue of Senior Indebtedness exists, it will not sue for, or otherwise take any
action to enforce the Company’s obligations to pay, amounts owing in respect of
the Note.

 

(c) In the event that notwithstanding the provisions of the preceding clauses
(a) and (b) of this Section, the Company shall make any payment on account of
the Subordinated Indebtedness at a time when payment is not permitted by said
clauses (a) or (b), such payment shall be held by the holder of the Note, in
trust for the benefit of, and shall be paid forthwith over and delivered to, the
Administrative Agent (as defined in Section 1.7 of this Annex A) for application
to the payment in full in cash of all the Senior Indebtedness.

 

Pledge Agreement Supplement

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

1.3 Subordination to Prior Payment of all Senior Indebtedness on Dissolution,
Liquidation or Reorganization of Company. Upon any distribution of assets of the
Company upon dissolution, winding up, liquidation or reorganization of the
Company (whether in bankruptcy, insolvency, receivership proceedings, upon an
assignment for the benefit of creditors or otherwise):

 

(a) holders of all Senior Indebtedness shall first be entitled to receive
payment in full in cash of all Senior Indebtedness (including, without
limitation, post-petition interest at the rate provided in the documentation
with respect to the Senior Indebtedness, whether or not such post-petition
interest is an allowed claim against the Company in any bankruptcy or similar
proceeding) before the holder of the Note is entitled to receive any payment of
any kind or character on account of the Subordinated Indebtedness;

 

(b) any payment or distributions of assets of the Company of any kind or
character, whether in cash, property or securities to which the holder of the
Note would be entitled except for the provisions of this Annex A, shall be paid
by the liquidating trustee or Administrative Agent or other person making such
payment or distribution, whether a trustee in bankruptcy, a receiver or
liquidating trustee or other trustee or Administrative Agent, directly to the
Administrative Agent for application to the payment in full in cash of all the
Senior Indebtedness; and

 

(c) in the event that, notwithstanding the foregoing provisions of this Section
any payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, shall be received by the holder of the
Note on account of Subordinated Indebtedness before all Senior Indebtedness is
paid in full in cash, such payment or distribution shall be received and held in
trust for and shall be paid over to the Administrative Agent for application to
the payment in full in cash of all the Senior Indebtedness.

 

1.4 Subrogation. Subject to the prior payment in full in cash of all Senior
Indebtedness, the holder of the Note shall be subrogated to the rights of the
holders of Senior Indebtedness to receive payments or distributions of assets of
the Company applicable to the Senior Indebtedness until all amounts owing on the
Note shall be paid in full, and for the purpose of such subrogation no payments
or distributions to the holders of the Senior Indebtedness by or on behalf of
the Company or by or on behalf of the holder of the Note by virtue of this Annex
A which otherwise would have been made to the holder of the Note shall, as
between the Company, its creditors (other than the holders of Senior
Indebtedness) and the holder of the Note, be deemed to be payment by the Company
to or on account of the Senior Indebtedness, it being understood that the
provisions of this Annex A are and are intended solely for the purpose of
defining the relative rights of the holder of the Note, on the one hand, and the
holders of the Senior Indebtedness, on the other hand.

 

-2-

Pledge Agreement Supplement

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

1.5 Obligation of the Company Unconditional. Nothing contained in this Annex A
or in the Note is intended to or shall impair, as between the Company and the
holder of the Note, the obligation of the Company, which is absolute and
unconditional, to pay to the holder of the Note the principal of and interest on
the Note as and when the same shall become due and payable in accordance with
their terms.

 

1.6 Subordination Rights not Impaired by Acts or Omissions of Company or Holders
of Senior Indebtedness. No right of the Administrative Agent or any present or
future holders of any Senior Indebtedness to enforce subordination as herein
provided shall at any time in any way be prejudiced or impaired by any act or
failure to act on the part of the Company or by any act or failure to act in
good faith by the Administrative Agent or any such holder, or by any
noncompliance by the Company with the terms and provisions of the Note,
regardless of any knowledge thereof which the Administrative Agent or such
holder may have or be otherwise charged with. The Administrative Agent and the
holders of the Senior Indebtedness may, without in any way affecting the
obligations of the holder of the Note with respect hereto, at any time or from
time to time and in their absolute discretion, change the manner, place or terms
of payment of, change or extend the time of payment of, or renew or alter, any
Senior Indebtedness (including, without limitation, increase the amount of
Senior Indebtedness by extending additional credit to the Company) or amend,
modify or supplement any agreement or instrument governing or evidencing such
Senior Indebtedness or any other document referred to therein, or exercise or
refrain from exercising any other of their rights under the Senior Indebtedness
including, without limitation, the waiver of any Default or Event of Default or
the release of any Collateral (as such terms are defined in the Credit Agreement
referred to in Section 1.7 of this Annex A) securing such Senior Indebtedness,
all without notice to or assent from the holder of the Note.

 

1.7 Senior Indebtedness. The term “Senior Indebtedness” shall mean all
Obligations of the Company under, or in respect of, the Credit Agreement, dated
as September 28, 2005 (the “Credit Agreement”), among the Borrower, the various
financial institutions party thereto from time to time and Bank of America,
N.A., as administrative agent for such lenders (the “Administrative Agent”),
letter of credit issuer and swing line lender, LaSalle Bank, National
Association, as syndication agent, and Wachovia Bank, National Association, as
documentation agent and any other Loan Document (as therein defined) to which
the Company is a party, and in each case any renewal, extension, restatement,
refinancing or refunding thereof. As used herein, the term “Obligation” shall
mean any principal, interest, premium, penalties, fees, expenses, indemnities
and other liabilities and obligations payable under the documentation governing
any Senior Indebtedness (including interest after the commencement of any Debtor
Relief Laws, whether or not such interest is an allowed claim against the debtor
in any such proceeding). All other capitalized terms used herein without
definition shall have the meanings provided for in the Credit Agreement.

 

-3-

Pledge Agreement Supplement