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EXECUTION VERSION







	
SECURITY AGREEMENT







     This SECURITY AGREEMENT is dated as of July 26, 2007 (as the same may hereafter be amended, restated, supplemented or otherwise modified from
time to time, the “Agreement”) and entered into by and between ISLE OF CAPRI CASINOS, INC., a Delaware corporation
(“Borrower”), each of THE UNDERSIGNED SUBSIDIARIES of Borrower (each of the undersigned Subsidiaries being a
“Subsidiary Grantor” and collectively, “Subsidiary Grantors”), any ADDITIONAL
GRANTOR (as hereinafter defined) (each of Borrower, each Subsidiary Grantor, and each Additional Grantor being a “Grantor” and collectively, the
“Grantors”) and CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent for and representative of (in such capacity
herein called “Secured Party”), the financial institutions (“Lenders”) party to the Credit Agreement referred
to below and any Hedge Providers (as hereinafter defined).


	
RECITALS







     A. Concurrently herewith, Administrative Agent and the Lenders have entered into that certain Credit Agreement dated of even date herewith with Borrower (as the same may hereafter be amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain commitments, subject to the terms and
conditions set forth therein, to extend certain credit facilities to Borrower in the original aggregate principal amount of up to $1,350,000,000. Initially capitalized terms used in this Agreement without definition have the respective meanings
assigned such terms in the Credit Agreement.


     B. Borrower may from time to time enter, or may from time to time have entered, into one or more Hedge Agreements (collectively, the “Lender Hedge
Agreements”) with one or more Lenders or Affiliates of Lenders (in such capacity, collectively, “Hedge Providers”) in accordance with the terms
of the Credit Agreement, and it is desired that the obligations of Borrower or any Restricted Subsidiary under the Lender Hedge Agreements, including the obligation of Borrower or any Restricted Subsidiary to make payments thereunder in the event of
early termination thereof, together with all obligations of Borrower under the Credit Agreement and the other Loan Documents, be secured hereunder.


     C. In order to induce the Lenders to enter into the Credit Agreement, Subsidiary Grantors entered into that certain Subsidiary Guaranty dated as of even date herewith (as the same may hereafter be
amended, restated, supplemented or otherwise modified from time to time, the “Subsidiary Guaranty”) in favor of Secured Party for the benefit of Lenders and any Hedge Providers,
pursuant to which each Subsidiary Grantor has guarantied the prompt payment and performance when due of all obligations of Borrower under the Credit Agreement and all obligations of Borrower under the Lender Hedge Agreements, including, without
limitation, the obligation of Borrower to make payments thereunder in the event of early termination thereof.


     D. It is a condition precedent to the initial extensions of credit by Lenders under the Credit Agreement that Grantors enter into this Agreement on the terms and conditions contained herein.


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     NOW, THEREFORE, in consideration of the premises and in order to induce Lenders to make Loans and other extensions of credit under the Credit Agreement and to induce
Hedge Providers to enter into the Lender Hedge Agreements, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, each Grantor hereby agrees as follows:


	
1 Grant of Security.







     Each Grantor hereby assigns, grants and pledges to Secured Party a security interest in all of such Grantor’s right, title and interest in, to and under each of the following, in each case
whether now or hereafter existing, whether tangible or intangible, or in which such Grantor now has or hereafter acquires an interest and wherever the same may be located (collectively, the “Collateral”):


     (a) all equipment in all of its forms, all parts thereof and all accessions thereto (any and all such equipment, parts and accessions being the “Equipment”);


     (b) all inventory in all of its forms, including but not limited to (i) all goods held by such Grantor for sale or lease or to be furnished under contracts of service, (ii) all raw materials, work in
process, finished goods, and materials used or consumed in the manufacture, packing, shipping, advertising, selling, leasing, furnishing or production of such inventory or otherwise used or consumed in such Grantor’s business, (iii) all goods
in which such Grantor has an interest in mass or a joint or other interest or right of any kind, and (iv) all goods which are returned to or repossessed by such Grantor and all accessions thereto and products thereof (collectively the
“Inventory”) and all negotiable and non-negotiable documents of title (including warehouse receipts, dock receipts and bills of lading) issued by any Person covering any Inventory
(any such negotiable document of title being a “Negotiable Document of Title”);


     (c) all accounts, contract rights, chattel paper, documents, instruments, general intangibles, letter of credit rights and other rights and obligations of any kind owned by or owing to such Grantor
(and rights to payment, whether earned by performance, for goods or other property sold, leased, licensed, assigned or otherwise disposed of, or for services rendered or to be rendered thereunder) and all rights in, to and under all security
agreements, leases and other contracts or supporting obligations securing or otherwise relating to any such accounts, contract rights, chattel paper, documents, instruments, general intangibles, letter of credit rights or other rights and
obligations (any and all such accounts, contract rights, chattel paper, documents, instruments, general intangibles and other obligations and rights being the “Accounts”, and any
and all such security agreements, leases and other contracts or supporting obligations being the “Related Contracts”), together with all original copies of all documents,
instruments or other writings or electronic records or other records evidencing any of the foregoing, (ii) all books, correspondence, credit or other files, records, ledger sheets or cards, invoices, and other papers relating to the foregoing,
including, without limitation, all tapes, cards, computer tapes, computer discs, computer runs, record keeping systems and other papers and documents relating to the foregoing, whether in the possession or under the control of such Grantor or any
computer bureau or agent from time to time acting for such Grantor or otherwise, (iii) all evidences of the filing of financing statements and the registration of other


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instruments in connection therewith, and amendments, supplements or other modifications thereto, notices to other creditors, secured parties or agents thereof, and certificates, acknowledgments, or other writings, including,
without limitation, lien search reports, from filing or other registration officers, (iv) all credit information, reports and memoranda relating thereto and (v) all other written or non-written forms of information related in any way to the
foregoing;


     (d) all agreements to which such Grantor is a party, including those on Schedule 1(d) annexed hereto, as each such agreement may be amended, restated, supplemented or otherwise modified from time to
time (said agreements, as so amended, restated, supplemented or otherwise modified, being referred to herein individually as an “Assigned Agreement” and collectively as the
“Assigned Agreements”), including (i) all rights of such Grantor to receive moneys due or to become due under or pursuant to the Assigned Agreements, (ii) all rights of such
Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Assigned Agreements, (iii) all claims of such Grantor for damages arising out of any breach of or default under the Assigned Agreements, and (iv) all
rights of such Grantor to terminate, amend, supplement, modify or exercise rights or options under the Assigned Agreements, to perform thereunder and to compel performance and otherwise exercise all remedies thereunder;


     (e) all other deposit accounts including any restricted deposit account established and maintained by Secured Party pursuant to Section 12 (the “Collateral
Account”), together with (i) all amounts on deposit from time to time in such deposit accounts and (ii) all interest, cash, instruments, securities and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the foregoing, including certificates of deposit (collectively, “Deposit Accounts”);

	
(f)      		
the “Securities Collateral,” which term means:	
	 
	 	
(i) all shares of stock, partnership interests, interests in joint ventures,	
	 



limited liability company interests and all other equity interests now or hereafter owned by such Grantor in any Person, including all securities convertible into, and rights, warrants, options and other rights to purchase or
otherwise acquire, any of the foregoing now or hereafter owned by such Grantor, including those described on Schedule 1(f)(i), and the certificates or other instruments representing any of  the foregoing and any interest of such Grantor in the
entries on the books of any securities intermediary pertaining thereto (the “Pledged Shares”), and all dividends, distributions, returns of capital, cash, warrants, options,
rights, instruments, rights to vote or manage the business of such Person pursuant to organizational documents governing the rights and obligations of the stockholders, partners, members or other owners thereof and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Pledged Shares; provided, that if the issuer of any of such Pledged Shares is a
controlled foreign corporation (used hereinafter as such term is defined in Section 957(a) or a successor provision of the Internal Revenue Code), the Pledged Shares shall not include any shares of stock of such issuer in excess of the number of
shares of such issuer possessing up to but not exceeding 65% of the voting power of all classes of capital stock entitled to vote of such issuer, and all


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dividends, cash, warrants, rights, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Pledged Shares; provided further that the Pledged Shares shall not include the equity interests of (a) Isle of Capri Black Hawk, L.L.C., (b) Blue Chip Casinos, Plc.,

	
(c)      		
IOC CC Limited, (d) The Isle Casinos Limited and (e) Capri Insurance Company; (ii) all indebtedness from time to time owed to such Grantor by any	
	 



obligor, including the indebtedness described on Schedule 1(f)(ii) and issued by the obligors named therein, and the instruments evidencing such indebtedness (the “Pledged
Debt”), and all interest, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Debt;
and


(iii) all other investment property of such Grantor;

	
(g)      		
the “Intellectual Property Collateral”, which term means:	
	 
	 	
(i) all rights, title and interest (including rights acquired pursuant to a	
	 



license or otherwise) in and to all trademarks, service marks, designs, logos, indicia, tradenames, trade dress, corporate names, company names, business names, fictitious business names, trade styles and/or other source and/or
business identifiers and applications pertaining thereto, owned by such Grantor, or hereafter adopted and used, in its business (including the trademarks specifically identified in Schedule 1(g)(i), as the same may be amended pursuant hereto from
time to time) (collectively, the “Trademarks”), all registrations that have been or may hereafter be issued or applied for thereon in the United States and any state thereof and in
foreign countries (including the registrations and applications specifically identified in Schedule 1(g)(i), as the same may be amended pursuant hereto from time to time) (the “Trademark
Registrations”), all common law and other rights in and to the Trademarks in the United States and any state thereof and in foreign countries (the “Trademark
Rights”), and all goodwill of such Grantor’s business symbolized by the Trademarks and associated therewith;


     (ii) all rights, title and interest (including rights acquired pursuant to a license or otherwise) in and to all patents and patent applications and rights and interests in patents and patent
applications under any domestic or foreign law that are presently, or in the future may be, owned or held by such Grantor and all patents and patent applications and rights, title and interests in patents and patent applications under any domestic
or foreign law that are presently, or in the future may be, owned by such Grantor in whole or in part (including the patents and patent applications listed in Schedule 1(g)(ii), as the same may be amended pursuant hereto from time to time), all
rights corresponding thereto (including the right, exercisable only upon the occurrence and during the continuation of an Event of Default, to sue for past, present and future infringements in the name of such Grantor or in the name of Secured Party
or Lenders), all re-issues, divisions, continuations, renewals, extensions and continuations-in-part thereof (all of the foregoing being collectively referred to as the “Patents”)
and all goodwill of such Grantor’s business symbolized by the Patents and associated therewith; it being understood that the rights and interests included in the Intellectual Property


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Collateral hereby shall include, without limitation, all rights and interests pursuant to licensing or other contracts in favor of such Grantor pertaining to patent applications and patents presently or in the future owned or used
by third parties; and


     (iii) all rights, title and interest (including rights acquired pursuant to a license or otherwise) under copyright in various published and unpublished works of authorship including computer
programs, computer data bases, other computer software, layouts, trade dress, drawings, designs, writings, and formulas owned by such Grantor (including the works listed on Schedule 1(g)(iii), as the same may be amended pursuant hereto from time to
time) (collectively, the “Copyrights”), all copyright registrations issued to such Grantor and applications for copyright registration that have been or may hereafter be issued or
applied for thereon by such Grantor in the United States and any state thereof and in foreign countries (including the registrations listed on Schedule 1(g)(iii), as the same may be amended pursuant hereto from time to time) (collectively, the
“Copyright Registrations”), all common law and other rights in and to the Copyrights in the United States and any state thereof and in foreign countries including all copyright
licenses (but with respect to such copyright licenses, only to the extent permitted by such licensing arrangements) (the “Copyright Rights”), including each of the Copyrights,
rights, titles and interests in and to the Copyrights, all derivative works and other works protectable by copyright, which are presently, or in the future may be, owned, created (as a work for hire for the benefit of such Grantor), authored (as a
work for hire for the benefit of such Grantor), or acquired by such Grantor, in whole or in part, and all Copyright Rights with respect thereto and all Copyright Registrations therefor, heretofore or hereafter granted or applied for, and all
renewals and extensions thereof, throughout the world, including all proceeds thereof (such as, by way of example and not by limitation, license royalties and proceeds of infringement suits), the right to renew and extend such Copyright
Registrations and Copyright Rights and to register works protectable by copyright and the right to sue for past, present and future infringements of the Copyrights and Copyright Rights and all goodwill of such Grantor’s business symbolized by
the Copyrights, Copyright Registrations, and Copyright Rights and associated therewith;


     (h) all information used or useful or arising from the business of such Grantor, including all goodwill, trade secrets, trade secret rights, know-how, customer lists, processes of production, ideas,
confidential business information, techniques, processes, formulas, and all other proprietary information;


     (i) to the extent not included in any other paragraph of this Section 1, all other general intangibles, including tax refunds, condemnation awards, payment intangibles, other rights to payment or
performance, choses in action, software and judgments taken on any rights or claims included in the Collateral;


     (j) (i) all fixtures, machinery, appliances, goods, building or other materials, equipment, including all gaming equipment and devices, and all machinery, equipment, engines, appliances and fixtures
for generating or distributing air, water, heat, electricity, light, sewage, fuel or refrigeration, or for ventilating or sanitary purposes, the exclusion of vermin or insects, or the removal of dust, refuse or garbage, now owned or hereafter
acquired by Grantor


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and now or hereafter attached to, installed in or used in connection with the Facilities or otherwise; (ii) all wall-beds, wall-safes, built-in furniture and installations, shelving, lockers, partitions, doorstops, vaults, motors,
elevators, dumb-waiters, awnings, window shades, Venetian blinds, light fixtures, fire hoses and brackets and boxes for the same, fire sprinklers, alarm, communication, surveillance and security systems, computers, drapes, drapery rods and brackets,
mirrors, mantels, screens, linoleum, carpets and carpeting, signs, decorations, plumbing, bathtubs, sinks, basins, pipes, faucets, water closets, laundry equipment, washers, dryers, mini-bars, ice-boxes and heating units; kitchen and restaurant
equipment (including stoves, refrigerators, ovens, ranges, dishwashers, disposals, water heaters and incinerators) now owned or hereafter acquired by any Grantor and now or hereafter attached to, installed in or used in connection with any of the
Facilities or otherwise; (iii) all amusement rides and attractions attached to the Facilities; and (iv) all furniture and furnishings of every nature whatsoever now or hereafter owned or leased by any Grantor or in which any Grantor has any rights
or interest and located in or on, or attached to, or used or intended to be used or which are now or may hereafter be appropriated for use on or in connection with the operation of the Facilities, and all extensions, additions, accessions,
improvements, betterments, renewals, substitutions, and replacements to any of the foregoing, which, to the fullest extent permitted by law, shall be conclusively deemed fixtures and improvements and a part of the real property hereby encumbered
(the “Fixtures”);


     (k) (i) all cocktail lounge supplies, including bars, glassware, bottles and tables used in connection with the Facilities or otherwise; (ii) all chaise lounges, hot tubs, swimming pool heaters and
equipment and all other recreational equipment and beauty and barber equipment used in connection with the Facilities or otherwise; (iii) all personal property, goods, equipment and supplies used in connection with the operation of the hotel,
casino, restaurants, stores, parking facilities, and all other commercial operations on the Facilities or otherwise, including communication systems, visual and electronic surveillance systems and transportation systems; (iv) all tools, utensils,
food and beverage, silverware, dishes, liquor, uniforms, linens, housekeeping and maintenance supplies, vehicles and fuel relating to the Facilities or otherwise; and (v) all other personal property of any kind or character, including any cash and
money and any such items of personal property as defined in the UCC (defined below), now or hereafter owned or leased by Grantors or in which Grantors have any rights or interest and located in or on, or attached to, or used or intended to be used
or which are now or may hereafter be appropriate for use on or in connection with the operation of the Facilities or otherwise (the “Personalty”);


     (l) all books, records, ledger cards, files, correspondence, computer programs, tapes, disks and related data processing software that at any time evidence or contain information relating to any of
the Collateral or are otherwise necessary or helpful in the collection thereof or realization thereupon;


     (m) to the extent not included in any other paragraph of this Section 1, all Accounts, Chattel Paper, Documents, General Intangibles, Goods (including, without limitation, Inventory and Equipment),
Instruments, Investment Property, Letter of Credit Rights, Money and Commercial Tort Claims now or hereafter described on Schedule 4(k), in each case as defined in Article 9 of the UCC (as hereinafter defined);


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     (n) all insurance policies covering any part of the Collateral and key man life insurance policies;


     (o) all securities accounts and financial assets and securities entitlements held in or related thereto;


	 	
(p) all ships, barges and other vessels;







     (q) to the extent not included in the foregoing clauses (a) through (p), all personal property of such Grantor and


     (r) all proceeds, products, rents and profits of or from any and all of the foregoing Collateral and, to the extent not otherwise included, all payments under insurance (whether or not Secured Party
is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral. For purposes of this Agreement, the term “proceeds” includes whatever is receivable or received when Collateral or proceeds are sold, exchanged, collected or otherwise disposed of, whether such disposition is voluntary or
involuntary.


     Notwithstanding anything herein to the contrary, in no event shall the Collateral include, and no Grantor shall be deemed to have granted a security interest in any of such Grantor’s rights or
interests in, any license, contract or agreement to which such Grantor is a party or any promissory note issued in favor of such Grantor or, in each case, any of its rights or interests thereunder to the extent, but only to the extent, that such a
grant (i) would, under the terms of such license, contract, agreement or promissory note or otherwise, result in a breach of the terms of, or constitute a default under, any license, contract or agreement to which such Grantor is a party or any
promissory note issued in favor of such Grantor or (ii) is restricted or prohibited, or would require the consent of a Governmental Authority (and such consent has not been obtained), under applicable law (in each case, other than to the extent that
any such term would be rendered ineffective pursuant to the UCC or any other applicable law (including the Bankruptcy Code) or principles of equity) (collectively, together with any other collateral expressly excluded from this Section 1, the
Pompano Beach Real Property, the Biloxi Additional Real Property, the Real Estate Options, the Black Hawk Hotel and Real Property and Capital Stock of the Specified Unrestricted Subsidiaries, the “Excluded Collateral”); provided, that the exclusions under the foregoing clauses (i) and (ii) shall not
include the proceeds of any such license, contract, agreement or promissory note as and to the extent set forth in Sections 9-406 and 9-408 of the UCC; provided further, that immediately
upon the ineffectiveness, lapse or termination of any such provision, the Collateral shall include, and such Grantor shall be deemed to have granted a security interest in, all such rights and interests as if such provision had never been in effect.
The foregoing grant is made to the fullest extent permitted by, or not prohibited by, the Gaming Laws and other applicable laws.


     Each item of Collateral listed in this Section 1 that is defined in Articles 8 or 9 of the UCC shall have the meaning set forth in the UCC, it being the intention of the Grantors that the description
of the Collateral set forth above be construed to include the broadest possible range of assets, except for assets expressly excluded as set forth above. As used herein, “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of New


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York; provided, however, that in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of, or remedies with respect to, any Collateral is governed by the Uniform Commercial Code as
enacted and in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions hereof relating to
such perfection, priority or remedies.


	
2 Security for Obligations.







     This Agreement secures, and the Collateral is collateral security for, the prompt payment or performance in full when due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise (including, without limitation, the payment of amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code), of all Secured Obligations of each Grantor.
“Secured Obligations” means:


     (a) with respect to Borrower, all obligations and liabilities of every nature of Borrower now or hereafter existing under or arising out of or in connection with the Credit Agreement and the other
Loan Documents and any Lender Hedge Agreement; and


     (b) with respect to each other Grantor, all obligations and liabilities of every nature of such Grantor now or hereafter existing under or arising out of or in connection with the Subsidiary
Guaranty;


in each case together with all extensions or renewals thereof, whether for principal, interest, reimbursement of amounts drawn under Letters of Credit, payments for early termination of Lender Hedge Agreements, fees, expenses,
indemnities or otherwise, whether voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later
increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from Secured Party or any Lender or Hedge Provider
as a preference, fraudulent transfer or otherwise, and all obligations of every nature of Grantors now or hereafter existing under this Agreement (including, without limitation, interest and other amounts that, but for the filing of a petition in
bankruptcy with respect to Borrower or any other Grantor, would accrue on such obligations, whether or not a claim is allowed against Borrower or such Grantor for such interest in the related bankruptcy proceeding).


	
3 Grantors Remain Liable.







     Anything contained herein to the contrary notwithstanding, (a) each Grantor shall remain liable under any contract and agreement included in the Collateral, to the extent set forth therein, to perform
all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by Secured Party of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under
the contracts and agreements included in the Collateral, and (c) Secured Party shall not have any obligation or liability under any contracts, licenses, and agreements included in the Collateral by reason of this


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Agreement, nor shall Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.


	
4 Representations and Warranties.







Each Grantor represents and warrants, as for itself and its Collateral as follows:


     (a) Ownership of Collateral.  Except as expressly permitted by the Credit Agreement, such Grantor owns the Collateral owned by such Grantor
and such ownership is free and clear of any Lien other than the Permitted Encumbrances.  Except as expressly permitted by the Credit Agreement and such as may have been filed in favor of Secured Party relating to this Agreement, no effective
financing statement or other instrument similar in effect covering all or any part of the Collateral is on file in any filing or recording office.


     (b) Locations of Equipment and Inventory.  All of the Equipment and Inventory is, as of the date hereof, or in the case of each Additional
Grantor, the date of the applicable counterpart entered into pursuant to Section 22 (each, a “Counterpart”) located at the places specified in Schedule 4(b).


     (c) Negotiable Documents of Title.  No Negotiable Documents of Title are outstanding with respect to any of the Inventory.


(d) Office Locations, Type and Jurisdiction of Organization and Name.


The chief place of business, the chief executive office and the office where such Grantor keeps its records regarding the Accounts and all originals of all chattel paper that evidence Accounts are, at the locations set forth on
Schedule 4(d) (as such schedule may be amended or supplemented from time to time pursuant to the terms hereof), and the type (i.e. corporation, limited partnership, etc.), jurisdiction of organization, organization number (provided by the relevant
Government Authority of the jurisdiction of organization) and correct legal name as it appears in official filings in the jurisdiction of organization of such Grantor are as listed on Schedule 4(d) (as such schedule may be amended or supplemented
from time to time pursuant to the terms hereof).


     (e) Names.  No Grantor (or predecessor by merger or otherwise of such Grantor) has, within the four month period preceding the date hereof,
or, in the case of an Additional Grantor, the date of the applicable Counterpart, had a different name from the name of such Grantor listed on the signature pages hereof except as set forth on Schedule 4(e) (as such schedule may be amended or
supplemented from time to time pursuant to the terms hereof).


     (f) Delivery of Certain Collateral. Except for any promissory note (i) issued by an employee of a Grantor in favor of a Grantor or (ii)
issued by a non-Grantor in favor of a Grantor, in each case with a principal amount of less than $500,000 (which promissory notes shall not be required to be delivered to Secured Party hereunder), all certificates or instruments evidencing,
comprising or representing the Securities Collateral have been delivered to Secured Party duly endorsed or accompanied by duly executed instruments of transfer on assignment in blank.


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     (g) Securities Collateral. (i) All of the Pledged Shares described on Schedule 1(f)(i) (as such schedule may be amended or supplemented from
time to time pursuant to the terms hereof) have been duly authorized and validly issued and are fully paid and non-assessable and free and clear of any Liens (other than tax or ERISA Liens to the extent that the same constitute Permitted Liens) in
respect of their issuance; (ii) all of the Pledged Debt described on Schedule 1(f)(ii) (as such schedule may be amended or supplemented from time to time pursuant to the terms hereof) has been duly authorized, authenticated or issued, and delivered
and is the legally valid and binding obligation of the issuers thereof and is not in default; (iii) the Pledged Shares constitute all of the issued and outstanding shares of stock or other equity interests of each issuer thereof (subject to the
proviso to Section 1(f)(i) (as such schedule may be amended or supplemented from time to time pursuant to the terms hereof) with respect to shares of a foreign controlled corporation and other Investments expressly permitted under the Credit
Agreement in Persons that are not Subsidiaries of Borrower), and there are no outstanding warrants, options or other rights to purchase, or other agreements outstanding with respect to, or property that is now or hereafter convertible into, or that
requires the issuance or sale of, any Pledged Shares; (iv) the Pledged Debt constitutes all of the issued and outstanding intercompany indebtedness evidenced by a promissory note of the respective issuers thereof owing to such Grantor; (v) Schedule
1(f)(i) (as such schedule may be amended or supplemented from time to time pursuant to the terms hereof) sets forth all of the Pledged Shares owned by each Grantor; and (vi) Schedule 1(f)(ii) (as such schedule may be amended or supplemented from
time to time pursuant to the terms hereof) sets forth all of the Pledged Debt (except for Pledged Debt owing by employees of a Grantor to a Grantor or Pledged Debt with a principal amount of less than $100,000).

	
(h)      		
Intellectual Property Collateral.	
	 
	 	
(i) a true and complete list of all Trademark Registrations and	
	 



Trademark applications owned, held (whether pursuant to a license or otherwise) or used by such Grantor, in whole or in part, is set forth in Schedule 1(g)(i) (as such schedule may be amended or supplemented from time to time
pursuant to the terms hereof);


     (ii) a true and complete list of all Patents owned, held (whether pursuant to a license or otherwise) or used by such Grantor, in whole or in part, is set forth in Schedule 1(g)(ii) (as such schedule
may be amended or supplemented from time to time pursuant to the terms hereof);


     (iii) a true and complete list of all Copyright Registrations and applications for Copyright Registrations owned, held (whether pursuant to a license or otherwise) or used by such Grantor, in whole or
in part, is set forth in Schedule 1(g)(iii) (as such schedule may be amended or supplemented from time to time pursuant to the terms hereof);


     (iv) after reasonable inquiry, such Grantor is not aware of any pending or threatened claim by any third party that any of the Intellectual Property Collateral owned, held or used by such Grantor is
invalid or unenforceable except to the extent any such pending or threatened claim could not reasonably be expected to have a Material Adverse Effect; and


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     (v) no effective security interest or other Lien covering all or any part of the Intellectual Property Collateral is on file in the United States Patent and Trademark Office or the United States
Copyright Office.


     (i) Perfection.  The security interests in such Grantor’s Collateral granted to Secured Party for the ratable benefit of the Lenders and
Hedge Providers hereunder constitute valid security interests in such Collateral, securing the payment of the Secured Obligations. Upon (i) the filing of UCC financing statements naming such Grantor as “debtor”, naming Secured Party as
“secured party” and describing the Collateral in the filing offices with respect to such Grantor set forth on Schedule 4(i) (as such schedule may be amended or supplemented from time to time pursuant to the terms hereof); (ii) in the case
of the Securities Collateral of such Grantor consisting of certificated securities or evidenced by instruments, delivery of the certificates representing such certificated securities and delivery of such instruments to Secured Party, in each case
duly endorsed or accompanied by duly executed instruments of assignment or transfer in blank; and (iii) in the case of the Intellectual Property Collateral of such Grantor, in addition to the filing of such UCC financing statements, the filing of a
Grant of Trademark Security Interest in respect of registered Trademarks, substantially in the form of Exhibit I, and a Grant of Patent Security Interest in respect of registered Patents, substantially in the form of Exhibit II, with the United
States Patent and Trademark Office or the filing of a Grant of Copyright Security Interest in respect of registered Copyrights, substantially in the form of Exhibit III, with the United States Copyright Office (each such Grant of Trademark Security
Interest, Grant of Patent Security Interest and Grant of Copyright Security Interest being referred to herein as a “Grant”), (A) the security interests in such Grantor’s
Collateral granted to Secured Party for the ratable benefit of the Lenders and Hedge Providers that (x) may be perfected by filing of a financing statement, (y) that constitutes the Securities Collateral described in clause (ii) or, (z) that
constitutes Intellectual Property Collateral described in clause (iii) that may be perfected by recording the security interests granted hereunder in the applicable intellectual property registries (including but not limited to the United States
Patent and Trademark Office and the United States Copyright Office) will constitute perfected security interests therein prior to all other Liens (except for Permitted Encumbrances), and (B) all filings and other actions necessary to perfect and
protect such security interest shall have been duly made or taken. Each agreement purporting to give the Secured Party “control” (as such term is defined in the UCC) over any Collateral is, when executed and delivered by each party
thereto, effective to establish the Secured Party’s “control” (as such term is defined in the UCC) of the Collateral subject thereto.


     (j) Aircraft and Vessels. The Collateral does not consist of any aircraft or vessels other than as set forth on Schedule 4(j) (as such
schedule may be amended or supplemented from time to time pursuant to the terms hereof).


     (k) Commercial Tort Claims and Letter of Credit Rights. The Collateral does not consist of any Commercial Tort Claims or Letter of Credit
Rights (in each case as defined in the UCC) having a value of greater than $250,000 other than those set forth on Schedule 4(k) (as such schedule may be amended or supplemented from time to time pursuant to the terms hereof).


11











	
5 Further Assurances.







     (a) Generally. Each Grantor agrees that from time to time, at the expense of Grantors, such Grantor will promptly execute and deliver all
further instruments and documents, and take all further action, that may be necessary or desirable, or that Secured Party may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to
enable Secured Party to exercise and enforce its rights and remedies hereunder with respect to any Collateral.  Without limiting the generality of the foregoing, each Grantor will: (i) mark conspicuously each item of chattel paper included in the
Accounts, each Related Contract and, at the request of Secured Party, each of its records pertaining to the Collateral, with a legend, in form and substance satisfactory to Secured Party, indicating that such Collateral is subject to the security
interest granted hereby; (ii) at the request of Secured Party, deliver and pledge to Secured Party hereunder all promissory notes and other instruments evidencing, comprising or representing the Securities Collateral and all original counterparts of
chattel paper constituting Collateral, duly endorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance satisfactory to Secured Party; (iii) use commercially reasonable efforts to obtain any necessary
consents of third parties to the assignment and perfection of a security interest to Secured Party with respect to any Collateral (iv)(A) execute, if necessary, and file such financing or continuation statements, or amendments thereto; (B) execute
and deliver or cause to be executed and delivered, such agreements establishing that Secured Party has control of specified items of Collateral; (C) execute and file such assignments of security interests created pursuant to the Related Contracts;
and (D) deliver such other instruments or notices, as may be necessary or desirable, or as Secured Party may request, in order to perfect and preserve the security interests granted or purported to be granted hereby (but subject in all cases to the
terms and conditions of the Credit Agreement); (v) within 30 days after the end of each calendar quarter, deliver to Secured Party copies of all such applications or other documents filed during such calendar quarter indicating the security interest
created hereunder in the items of Equipment covered thereby; (vi) at any reasonable time at reasonable intervals, upon request by Secured Party, exhibit the Collateral to and allow inspection of the Collateral by Secured Party, or persons designated
by Secured Party; (vii) at Secured Party’s request, appear in and defend any action or proceeding that may adversely affect such Grantor’s title to or Secured Party’s security interest in all or any part of the Collateral; and (viii)
use commercially reasonable efforts to obtain any necessary consents of third parties to the creation and perfection of a security interest to Secured Party with respect to any Collateral.  Each Grantor hereby authorizes Secured Party to file one or
more financing or continuation statements, and amendments thereto, relative to all or any part of the Collateral (including any financing statement indicating that it covers “all assets” or “all personal property” of such
Grantor) without the signature of any Grantor.


     (b) Securities Collateral.  Without limiting the generality of the foregoing Section 5(a), each Grantor agrees that it will, upon obtaining
any additional shares of stock or other securities required to be pledged hereunder, promptly (and in any event within five Business Days) deliver to Secured Party a Pledge Supplement, duly executed by such Grantor, in substantially the form of
Exhibit IV (a “Pledge Supplement”), in respect of the additional Pledged Shares or Pledged Debt to be pledged pursuant to this Agreement. Upon each delivery of a Pledge Supplement
to Secured Party, the representations and warranties contained in


12











clauses (i)-(iv) of Section 4(g) hereof shall be deemed to have been made by such Grantor as to the Securities Collateral described in such Pledge Supplement as of the date thereof and the Schedules described therein shall be
deemed modified to include reference to any additional Securities Collateral listed in such Pledge Supplement.  Each Grantor hereby authorizes Secured Party to attach each Pledge Supplement to this Agreement and agrees that all Pledged Shares or
Pledged Debt of such Grantor listed on any Pledge Supplement shall for all purposes hereunder be considered Collateral of such Grantor; provided, the failure of any Grantor to execute a Pledge Supplement with respect to any additional Pledged Shares
or Pledged Debt pledged pursuant to this Agreement shall not impair the security interest of Secured Party therein or otherwise adversely affect the rights and remedies of Secured Party hereunder with respect thereto.


     (c) Intellectual Property Collateral.  Without limiting the generality of the foregoing Section 5(a), if any Grantor shall hereafter obtain
rights to any new Intellectual Property Collateral or become entitled to the benefit of (i) any patent application or patent or any reissue, division, continuation, renewal, extension or continuation-in-part of any Patent or any improvement of any
Patent; or (ii) any Copyright Registration, application for Copyright Registration or renewals or extension of any Copyright, then in any such case, the provisions of this Agreement shall automatically apply thereto. Each Grantor shall promptly
notify Secured Party in writing of any of the foregoing rights acquired by such Grantor after the date hereof and of (i) any Trademark Registrations issued or application for a Trademark Registration or application for a Patent made; and (ii) any
Copyright Registrations issued or applications for Copyright Registration made, in any such case, after the date hereof. Promptly after the filing of an application for any (1) Trademark Registration; (2) Patent; or (3) Copyright Registration, the
Grantor filing such application shall execute and deliver to Secured Party and record in all places where a Grant is recorded an IP Supplement, substantially in the form of Exhibit V (an “IP
Supplement”), pursuant to which such Grantor shall grant to Secured Party a security interest to the full extent of its interest in such Intellectual Property Collateral; provided, if, in the reasonable judgment of
such Grantor, after due inquiry, granting such interest would result in the grant of a Trademark Registration or Copyright Registration in the name of Secured Party, such Grantor shall give written notice to Secured Party as soon as reasonably
practicable and the filing shall instead be undertaken as soon as practicable but in no case later than immediately following the grant of the applicable Trademark Registration or Copyright Registration, as the case may be.  Upon delivery to Secured
Party of an IP Supplement, Schedules 1(g)(i), 1(g)(ii), and 1(g)(iii) hereto and Schedule A to each Grant, as applicable, shall be deemed modified to include reference to any right, title or interest in any existing Intellectual Property Collateral
or any Intellectual Property Collateral included on Schedule A to such IP Supplement.  Each Grantor hereby authorizes Secured Party to modify this Agreement without the signature or consent of any Grantor by attaching Schedules 1(g)(i), 1(g)(ii),
and 1(g)(iii), as applicable, that have been modified to include such Intellectual Property Collateral or to delete any reference to any right, title or interest in any Intellectual Property Collateral in which any Grantor no longer has or claims
any right, title or interest; provided, the failure of any Grantor to execute an IP Supplement with respect to any additional Intellectual Property Collateral pledged pursuant to this Agreement shall not impair the security interest of Secured Party
therein or otherwise adversely affect the rights and remedies of Secured Party hereunder with respect thereto.


13











     (d) Each Grantor will furnish to Secured Party from time to time statements and schedules further identifying and describing the Collateral and such Grantor and such other reports in connection with
such Collateral as Secured Party may reasonably request, all in reasonable detail.


	
6 Certain Covenants of Grantors.







	 	
Each Grantor shall:







     (a) not use or permit any Collateral to be used unlawfully or in violation of any provision of this Agreement or any applicable statute, regulation or ordinance or any policy of insurance covering the
Collateral;


     (b) notify Secured Party in writing of any change in such Grantor’s name, identity or corporate structure within 15 days of such change and within 30 days of such change, take all action that may
be reasonably necessary or desirable, or that Secured Party may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby, or to enable Secured Party to exercise and enforce its rights and
remedies hereunder; provided, that, so long as Secured Party has been so notified, Schedule 4(d) shall be deemed modified by the information contained in such notice;


     (c) give Secured Party 30 days’ prior written notice of any change in such Grantor’s chief place of business, chief executive office or the office where such Grantor keeps its records
regarding the Accounts and all originals of all chattel paper that evidence Accounts or a reincorporation, reorganization or other action that results in a change of the jurisdiction of organization of such Grantor, and within 30 days of such
written notice, take all action that may be necessary or desirable, or that Secured Party may reasonably request in order to perfect and protect any security interest granted or purported to be granted hereby, or to enable Secured Party to exercise
and enforce its rights and remedies hereunder; provided, that, so long as Secured Party has been so notified, Schedule 4(d) shall be deemed modified by the information contained in such
notice;


     (d) if Secured Party gives value to enable such Grantor to acquire rights in or the use of any Collateral, use such value for such purposes;


     (e) except as expressly permitted by the Credit Agreement, pay promptly when due all property and other taxes, assessments and governmental charges or levies imposed upon, and all claims (including
claims for labor, services, materials and supplies) against, the Collateral except to the extent the validity thereof is being contested in good faith; provided that in the case of such good
faith contest (i) a reserve with respect to such obligation is established by the applicable Grantor in such amount as is required under GAAP, (ii) any such protest is instituted promptly and prosecuted diligently and in good faith by the applicable
Grantor, and (iii) the Secured Party is reasonably satisfied that, while any such protest is pending, there will be no impairment of the enforceability, validity, and/or priority of any of the Secured Party’s Liens on any material portion of
the Collateral; provided further that such Grantor shall in any event pay such taxes, assessments, charges, levies or claims not later than five days prior to the date of any proposed sale
under any judgment, writ or warrant of


14











attachment entered or filed against such Grantor or any of the Collateral as a result of the failure to make such payment; and


     (f) notify Secured Party in writing in the event any Grantor acquires any Commercial Tort Claims or Letter of Credit Rights (in each case as defined in the UCC) having a value of greater than
$250,000 or acquires any aircraft or vessels (in the case of any aircraft or vessels, such notice to be given at least 15 days prior to any such acquisition), and thereafter promptly take such actions and execute such documents and make such
filings all at Grantor’s expense as Secured Party may reasonably request in order to ensure that Secured Party has a valid, perfected security interest in such Collateral; provided,
that, so long as Secured Party has been so notified, Schedules 4(j) and 4(k) shall be deemed modified by the information contained in such notice.


     Notwithstanding the foregoing, no Grantor shall be required to take any action to perfect any Collateral (x) that can only be perfected by (i) foreign filings with respect to Intellectual Property
Collateral, (ii) filings with registrars of motor vehicles with respect to vehicles covered by a certificate of title (in any event not including aircraft or vessels) or (y) as to which Secured Party has determined in its sole discretion that the
collateral value thereof is insufficient to justify the difficulty, time and/or expense of perfecting the Lien created by this Agreement thereon.


7 Special Covenants With Respect to Equipment and Inventory.


	 	
Each Grantor shall:







     (a) keep the Equipment and Inventory at the places therefor specified in Schedule 4(b) annexed hereto or, upon 30 days’ prior written notice to Secured Party, at such other places in
jurisdictions where all action that may be necessary or desirable, or that Secured Party may request, in order to perfect and protect any security interest granted or purported to be granted hereby, or to enable Secured Party to exercise and enforce
its rights and remedies hereunder, with respect to such Equipment and Inventory shall have been taken;


     (b) cause the Equipment to be maintained and preserved in the same condition, repair and working order, ordinary wear and tear excepted, and in accordance with such Grantor’s past practices, and
shall forthwith make or cause to be made all repairs, replacements and other improvements in connection therewith that are necessary or desirable to such end. Each Grantor shall promptly furnish to Secured Party a statement respecting any material
loss or damage to any of the Equipment;


     (c) keep correct and accurate records of the Inventory, itemizing and describing the kind, type and quantity of such Inventory, such Grantor’s cost therefor and (where applicable) the current
list prices for such Inventory;


     (d) if any Inventory is in possession or control of any of such Grantor’s agents or processors, upon the occurrence of an Event of Default (as defined in the Credit Agreement), instruct such
agent or processor to hold all such Inventory for the account of Secured Party and subject to the instructions of Secured Party;


15











     (e) promptly upon the issuance and delivery to Grantor of any Negotiable Document of Title, deliver such Negotiable Document of Title to Secured Party; and


     (f) at its own expense, maintain insurance with respect to the Equipment and Inventory in accordance with the terms of the Credit Agreement.


8 Special Covenants with respect to Accounts and Related Contracts.


     (a) Each Grantor shall keep its chief place of business and chief executive office and the office where it keeps its records concerning the Accounts and Related Contracts, and all originals of all
chattel paper that evidence Accounts, at the locations therefor set forth on Schedule 4(d), or upon 30 days’ prior written notice to Secured Party, at such other location in a jurisdiction where all action that may be necessary or desirable, or
that Secured Party may request, in order to perfect and protect any security interest granted or purported to be granted hereby, or to enable Secured Party to exercise and enforce its rights and remedies hereunder, with respect to such Accounts and
Related Contracts shall have been taken. Each Grantor will hold and preserve such records and chattel paper and will permit representatives of Secured Party at any time during normal business hours to inspect and make abstracts from such records and
chattel paper, and each Grantor agrees to render to Secured Party, at Grantors’ cost and expense, such clerical and other assistance as may be reasonably requested with regard thereto.  Promptly upon the request of Secured Party, each Grantor
shall deliver to Secured Party complete and correct copies of each Related Contract.


     (b) Each Grantor shall, for not less than five (5) years from the date on which such Account arose, maintain (i) complete records of each Account of such Grantor, including records of all payments
received, credits granted and merchandise returned, and (ii) all documentation relating thereto.


     (c) Except as otherwise provided in this subsection (c), each Grantor shall continue to collect, at its own expense, all amounts due or to become due to such Grantor under the Accounts and Related
Contracts. In connection with such collections, each Grantor may take (and, after the occurrence and during the continuance of an Event of Default, at Secured Party’s discretion, shall take) such action as such Grantor (or, after the occurrence
and during the continuance of an Event of Default, Secured Party) may deem necessary or advisable to enforce collection of amounts due or to become due under the Accounts, including adjusting, settling or compromising the amount or payment thereof;
provided, however, that Secured Party shall have the right at any time, upon the occurrence and during the continuation of an Event
of Default and upon written notice to such Grantor of its intention to do so, to notify the account debtors or obligors under any Accounts of the assignment of such Accounts to Secured Party and to direct such account debtors or obligors to make
payment of all amounts due or to become due to such Grantor thereunder directly to Secured Party, to notify each Person maintaining a lockbox or similar arrangement to which account debtors or obligors under any Accounts have been directed to make
payment to remit all amounts representing collections on checks and other payment items from time to time sent to or deposited in such lockbox or other arrangement directly to Secured Party and, upon such notification and at the expense of Grantors,
to enforce collection of any such Accounts and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might


16











have done. After receipt by such Grantor of the notice from Secured Party referred to in the proviso to the preceding sentence, (i) all amounts and proceeds (including checks and other instruments) received by such Grantor in
respect of the Accounts and the Related Contracts shall be received in trust for the benefit of Secured Party hereunder, shall be segregated from other funds of such Grantor and shall be forthwith paid over or delivered to Secured Party in the same
form as so received (with any necessary endorsement) to be held as cash Collateral and applied as provided by Section 18, and (ii) such Grantor shall not adjust, settle or compromise the amount or payment of any Account, or release wholly or partly
any account debtor or obligor thereof, or allow any credit or discount thereon.


     (d) Each Grantor shall maintain perfection of the security interests granted pursuant to the security agreements included within the Related Contracts, except as expressly permitted hereby or by the
Credit Agreement. During the existence of an Event of Default, no Grantor shall terminate or release security interests granted to it pursuant to such security agreements.


9 Special Provisions With Respect to the Assigned Agreements.


	 	
(a) Each Grantor shall, at its expense







     (i) perform and observe in all material respects all terms and provisions of the Assigned Agreements to be performed or observed by it, maintain the Assigned Agreements in full force and effect,
enforce the Assigned Agreements in accordance with their terms, and take all such action to such end as may be from time to time requested by Secured Party, in each case except to the extent the same could not reasonable be expected to have a
Material Adverse Effect; and


     (ii) furnish to Secured Party, promptly upon receipt thereof, copies of all notices, requests and other documents received by such Grantor under or pursuant to the Assigned Agreements that are
material to the business of the Grantors, taken as a whole, and from time to time (A) furnish to Secured Party such information and reports regarding the Assigned Agreements as Secured Party may reasonably request, and (B) upon request of Secured
Party make to the parties of such Assigned Agreements such demands and requests for information and reports or for action as such Grantor is entitled to make under the Assigned Agreements.


     (b) Upon the occurrence and during the continuance of an Event of Default, no Grantor shall, without the prior written consent of Secured Party:


     (i) cancel or terminate any of the Assigned Agreements that are material to its business or consent to or accept any cancellation or termination thereof;


     (ii) amend or otherwise modify the Assigned Agreements that are material to its business, or give any consent, waiver or approval thereunder;


     (iii) waive any default under or breach of the Assigned Agreements that are material to its business;


17











     (iv) consent to or permit or accept any prepayment of amounts to become due under or in connection with the Assigned Agreements that are material to its business, except as expressly provided therein;
or


     (v) take any other action in connection with the Assigned Agreements that are material to its business, that could reasonably be expected to materially impair the value of the interest or rights of
such Grantor thereunder or that could reasonably be expected to materially impair the interest or rights of Secured Party under this Agreement.


10 Special Covenants With Respect to the Securities Collateral.


     (a) Delivery.  Each Grantor agrees that all certificates or instruments representing or evidencing the Securities Collateral required to be
delivered hereunder shall be delivered to and held by or on behalf of Secured Party pursuant hereto and shall be in suitable form for transfer by delivery or, as applicable, shall be accompanied by such Grantor’s endorsement, where necessary,
or duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to Secured Party. Secured Party shall have the right at any time to exchange certificates or instruments representing or evidencing
Securities Collateral for certificates or instruments of smaller or larger denominations.


     (b) Covenants. Except as expressly permitted by the Credit Agreement, each Grantor shall (i) not permit any issuer of Pledged Shares to merge
or consolidate unless all the outstanding capital stock or other equity interests of the surviving or resulting Person is, upon such merger or consolidation, pledged hereunder and no cash, securities or other property is distributed in respect of
the outstanding shares of any other constituent corporation; provided, if the surviving or resulting Person upon any such merger or consolidation involving an issuer of Pledged Shares which is a controlled foreign corporation, then such Grantor
shall only be required to pledge outstanding capital stock of such surviving or resulting Person possessing up to but not exceeding 65% of the voting power of all classes of capital stock of such issuer entitled to vote; (ii) cause each issuer of
Pledged Shares not to issue any stock, other equity interests or other securities in addition to or in substitution for the Pledged Shares issued by such issuer, except to such Grantor; (iii) pledge hereunder, immediately upon its acquisition
(directly or indirectly) thereof, any and all additional shares of stock, other equity interests or other securities of each issuer of Pledged Shares; (iv) pledge hereunder, immediately upon its acquisition (directly or indirectly) thereof, any and
all shares of stock or other equity interests of any Person that, after the date of this Agreement, becomes, as a result of any occurrence, a direct Subsidiary of such Grantor; provided, notwithstanding anything contained in this clause (iv) to the
contrary, such Grantor shall only be required to pledge the outstanding capital stock of a controlled foreign corporation possessing up to but not exceeding 65% of the voting power of all classes of capital stock of such controlled foreign
corporation entitled to vote; (v) pledge hereunder, immediately upon their issuance, any and all instruments or other evidences of additional indebtedness from time to time owed to such Grantor by any obligor on the Pledged Debt; (vi) pledge
hereunder, immediately upon their issuance, any and all instruments or other evidences of indebtedness from time to time owed to such Grantor by any Person that after the date of this Agreement becomes, as a result of any occurrence, a direct or
indirect Subsidiary of such Grantor; (vii) promptly notify Secured Party of any event of which such Grantor


18











becomes aware causing material loss or depreciation in the value of the Securities Collateral; and (viii) promptly deliver to Secured Party all material written notices received by it with respect to the Securities
Collateral.


     (c) Voting and Distributions.  So long as no Event of Default shall have occurred and be continuing, (i) each Grantor shall be entitled to
exercise any and all voting and other consensual rights pertaining to the Securities Collateral or any part thereof for any purpose not inconsistent with the terms of this Agreement or the Credit Agreement; provided, no Grantor shall exercise or
refrain from exercising any such right if Secured Party shall have notified such Grantor that, in Secured Party’s judgment, such action would have a Material Adverse Effect on the value of the Securities Collateral or any part thereof; and
provided further, such Grantor shall give Secured Party at least five Business Days’ prior written notice of the manner in which it intends to exercise, or the reasons for refraining from exercising, any such right (it being understood,
however, that neither (A) the voting by such Grantor of any Pledged Shares for or such Grantor’s consent to the election of directors or other members of a Governing Body of an issuer of Pledged Shares at a regularly scheduled annual or other
meeting of stockholders or holders of equity interests or with respect to incidental matters at any such meeting, nor (B) such Grantor’s consent to or approval of any action otherwise permitted under this Agreement and the Credit Agreement
shall be deemed inconsistent with the terms of this Agreement or the Credit Agreement within the meaning of this Section, and no notice of any such voting or consent need be given to Secured Party); (ii) each Grantor shall be entitled to receive and
retain, and to utilize free and clear of the lien of this Agreement, any and all dividends, other distributions and interest paid in respect of the Securities Collateral; provided, any and all (A) dividends, distributions and interest paid or
payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Securities Collateral, (B) dividends and other distributions paid or payable in cash in
respect of any Securities Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus, and (C) cash paid, payable or otherwise distributed in respect of
principal or in redemption of or in exchange for any Securities Collateral, shall be, and shall forthwith be delivered to Secured Party to hold as, Securities Collateral and shall, if received by such Grantor, be received in trust for the benefit of
Secured Party, be segregated from the other property or funds of such Grantor and be forthwith delivered to Secured Party as Securities Collateral in the same form as so received (with all necessary endorsements); and (iii) Secured Party shall
promptly execute and deliver (or cause to be executed and delivered) to such Grantor all such proxies, dividend payment orders and other instruments as such Grantor may from time to time reasonably request for the purpose of enabling such Grantor to
exercise the voting and other consensual rights which it is entitled to exercise pursuant to clause (i) above and to receive the dividends, distributions, principal or interest payments which it is authorized to receive and retain pursuant to clause
(ii) above.


     Upon the occurrence and during the continuation of an Event of Default, (x) upon written notice from Secured Party to any Grantor, all rights of such Grantor to exercise the voting and other
consensual rights which it would otherwise be entitled to exercise pursuant hereto shall cease, and all such rights shall thereupon become vested in Secured Party which shall thereupon have the sole right to exercise such voting and other consensual
rights; (y) all rights of such Grantor to receive the dividends, other distributions and interest payments which it


19











would otherwise be authorized to receive and retain pursuant hereto shall cease, and all such rights shall thereupon become vested in Secured Party who shall thereupon have the sole right to receive and hold as Collateral such
dividends, other distributions and interest payments; and (z) all dividends, principal, interest payments and other distributions which are received by such Grantor contrary to the provisions of clause (ii) of the immediately preceding paragraph or
clause (y) above shall be received in trust for the benefit of Secured Party, shall be segregated from other funds of such Grantor and shall forthwith be paid over to Secured Party as Collateral in the same form as so received (with any necessary
endorsements).


     In order to permit Secured Party to exercise the voting and other consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions which it
may be entitled to receive hereunder, (I) each Grantor shall promptly execute and deliver (or cause to be executed and delivered) to Secured Party all such proxies, dividend payment orders and other instruments as Secured Party may from time to time
reasonably request, and (II) without limiting the effect of clause (I) above, each Grantor hereby grants to Secured Party an irrevocable proxy to vote the Pledged Shares and to exercise all other rights, powers, privileges and remedies to which a
holder of the Pledged Shares would be entitled (including giving or withholding written consents of shareholders or other holders of equity interests, calling special meetings of shareholders or other holders of equity interests and voting at such
meetings), which proxy shall be effective, automatically and without the necessity of any action (including any transfer of any Pledged Shares on the record books of the issuer thereof) by any other Person (including the issuer of the Pledged Shares
or any officer or agent thereof), upon the occurrence and during the continuation of an Event of Default and which proxy shall only terminate upon the payment in full of the Secured Obligations.


11 Special Covenants With Respect to the Intellectual Property Collateral.

	
(a)      		
Each Grantor shall:	
	 
	 	
(i) diligently keep reasonable records respecting the Intellectual	
	 



Property Collateral and at all times keep at least one complete set of its records concerning such Collateral at its chief executive office or principal place of business;


     (ii) hereafter use commercially reasonable efforts so as not to permit the inclusion in any contract to which it hereafter becomes a party of any provision that could or might in any way impair or
prevent the creation of a security interest in, or the assignment of, such Grantor’s rights and interests in any property included within the definitions of any Intellectual Property Collateral acquired under such contracts;


     (iii) take any and all commercially reasonable steps to protect the secrecy of all trade secrets relating to the products and services sold or delivered under or in connection with the Intellectual
Property Collateral, including where appropriate entering into confidentiality agreements with employees and labeling and restricting access to secret information and documents;


     (iv) use proper statutory notice in connection with its use of any of the Intellectual Property Collateral;


20











     (v) use a commercially appropriate standard of quality (which may be consistent with such Grantor’s past practices) in the manufacture, sale and delivery of products and services sold or
delivered under or in connection with the Trademarks; and


     (vi) furnish to Secured Party from time to time at Secured Party’s reasonable request statements and schedules further identifying and describing any Intellectual Property Collateral and such
other reports in connection with such Collateral, all in reasonable detail.


     (b) Except as otherwise provided in this Section 11, each Grantor shall continue to collect, at its own expense, all amounts due or to become due to such Grantor in respect of the Intellectual
Property Collateral or any portion thereof. In connection with such collections, each Grantor may take (and, after the occurrence and during the continuance of an Event of Default, at Secured Party’s discretion, shall take) such action as such
Grantor (or, after the occurrence and during the continuance of an Event of Default, Secured Party) may deem reasonably necessary or advisable to enforce collection of such amounts; provided, Secured Party shall have the right at any time, upon the
occurrence and during the continuation of an Event of Default and upon written notice to such Grantor of its intention to do so, to notify the obligors with respect to any such amounts of the existence of the security interest created hereby and to
direct such obligors to make payment of all such amounts directly to Secured Party, and, upon such notification and at the expense of such Grantor, to enforce collection of any such amounts and to adjust, settle or compromise the amount or payment
thereof, in the same manner and to the same extent as such Grantor might have done. After receipt by any Grantor of the notice from Secured Party referred to in the proviso to the preceding sentence and during the continuation of any Event of
Default, (i) all amounts and proceeds (including checks and other instruments) received by each Grantor in respect of amounts due to such Grantor in respect of the Intellectual Property Collateral or any portion thereof shall be received in trust
for the benefit of Secured Party hereunder, shall be segregated from other funds of such Grantor and shall be forthwith paid over or delivered to Secured Party in the same form as so received (with any necessary endorsement) to be held as cash
Collateral and applied as provided by Section 18, and (ii) such Grantor shall not adjust, settle or compromise the amount or payment of any such amount or release wholly or partly any obligor with respect thereto or allow any credit or discount
thereon.


     (c) Each Grantor shall have the duty to, in its commercially reasonable judgment, use commercially reasonable efforts to, through counsel reasonably acceptable to Secured Party, prosecute, file and/or
make (i) any application relating to any of the Intellectual Property Collateral owned, held or used by such Grantor and identified on Schedules 1(g)(i), 1(g)(ii) or 1(g)(iii), as applicable, that is pending as of the date of this Agreement, (ii)
any Copyright Registration on any existing or future unregistered but copyrightable works (except for works of nominal commercial value), (iii) application on any future patentable but unpatented innovation or invention comprising Intellectual
Property Collateral, and (iv) any Trademark opposition and cancellation proceedings, renew Trademark Registrations and Copyright Registrations and do any and all acts which are necessary or desirable to preserve and maintain all rights in all
Intellectual Property Collateral.  Any expenses incurred in connection therewith shall be borne solely by Grantors. Subject to the foregoing, each Grantor


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shall give Secured Party written notice of any abandonment of any Intellectual Property Collateral or any pending patent application or any Patent.


     (d) Except as provided herein, each Grantor shall have the right to commence and prosecute in its own name, as real party in interest, for its own benefit and at its own expense, such suits,
proceedings or other actions for infringement, unfair competition, dilution, misappropriation or other damage, or reexamination or reissue proceedings as are necessary to protect the Intellectual Property Collateral.  Secured Party shall provide, at
such Grantor’s expense, all reasonable and necessary cooperation in connection with any such suit, proceeding or action including joining as a necessary party. Each Grantor shall promptly, following its becoming aware thereof, notify Secured
Party of the institution of, or of any adverse determination in, any proceeding (whether in the United States Patent and Trademark Office, the United States Copyright Office or any federal, state, local or foreign court) regarding such
Grantor’s ownership, right to use, or interest in any Intellectual Property Collateral.  Each Grantor shall provide to Secured Party any information with respect thereto requested by Secured Party.


     (e) In addition to, and not by way of limitation of, the granting of a security interest in the Collateral pursuant hereto, each Grantor, effective upon the occurrence and during the continuation of
an Event of Default, hereby assigns, transfers and conveys to Secured Party the nonexclusive right and license to use all trademarks, tradenames, copyrights, patents or technical processes (including the Intellectual Property Collateral) owned or
used by such Grantor that relate to the Collateral and any other collateral granted by such Grantor as security for the Secured Obligations, together with any goodwill associated therewith, all to the extent necessary to enable Secured Party to
realize on the Collateral in accordance with this Agreement and to enable any transferee or assignee of the Collateral to enjoy the benefits of the Collateral. This right shall inure to the benefit of all successors, assigns and transferees of
Secured Party and its successors, assigns and transferees, whether by voluntary conveyance, operation of law, assignment, transfer, foreclosure, deed or assignment in lieu of foreclosure or otherwise. Such right and license shall be granted free of
charge, without requirement that any monetary payment whatsoever be made to such Grantor.  In addition, each Grantor hereby grants to Secured Party and its employees, representatives and agents the right to visit such Grantor’s and any of its
Affiliate’s plants, facilities and other places of business that are utilized in connection with the manufacture, production, inspection, storage or sale of products and services sold or delivered under any of the Intellectual Property
Collateral (or which were so utilized during the prior six month period), and to inspect the quality control and all other records relating thereto upon reasonable advance written notice to such Grantor and at reasonable dates and times and as often
as may be reasonably requested. If and to the extent that any Grantor is permitted to license the Intellectual Property Collateral, Secured Party shall promptly enter into a non-disturbance agreement or other similar arrangement, at such
Grantor’s request and expense, with such Grantor and any licensee of any Intellectual Property Collateral permitted hereunder in form and substance reasonably satisfactory to Secured Party pursuant to which (i) Secured Party shall agree not to
disturb or interfere with such licensee’s rights under its license agreement with such Grantor so long as such licensee is not in default thereunder, and (ii) such licensee shall acknowledge and agree that the Intellectual Property Collateral
licensed to it is subject to the security interest created in favor of Secured Party and the other terms of this Agreement.


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12 Collateral Account.







     Secured Party is hereby authorized to establish and maintain at its office or the office of its designee as a blocked account in the name of Borrower or in such name as Secured Party may so designate
and under the sole dominion and control of Secured Party, a restricted deposit account designated as “Isle of Capri Collateral Account”. All amounts at any time held in the Collateral Account shall be beneficially owned by Grantors but
shall be held in the name of Secured Party hereunder, for the benefit of Lenders, as collateral security for the Secured Obligations upon the terms and conditions set forth herein.  Grantors shall have no right to withdraw, transfer or, except as
expressly set forth herein, otherwise receive any funds deposited into the Collateral Account.  Anything contained herein to the contrary notwithstanding, the Collateral Account shall be subject to such applicable laws, and such applicable
regulations of the Board of Governors of the Federal Reserve System and of any other appropriate banking or governmental authority, as may now or hereafter be in effect.  All deposits of funds in the Collateral Account shall be made by wire transfer
(or, if applicable, by intra-bank transfer from another account of a Grantor) of immediately available funds, in each case addressed in accordance with instructions of Secured Party. Each Grantor shall, promptly after initiating a transfer of funds
to the Collateral Account, give notice to Secured Party by telefacsimile of the date, amount and method of delivery of such deposit.  Cash held by Secured Party in the Collateral Account shall not be invested by Secured Party but instead shall be
maintained as a cash deposit in the Collateral Account pending application thereof as elsewhere provided in this Agreement.  To the extent permitted under Regulation Q of the Board of Governors of the Federal Reserve System, any cash held in the
Collateral Account shall bear interest at the standard rate paid by Secured Party to its customers for deposits of like amounts and terms. Subject to Secured Party’s rights hereunder, any interest earned on deposits of cash in the Collateral
Account shall be deposited directly in, and held in the Collateral Account.


13 Secured Party Appointed Attorney-in-Fact.


     Each Grantor hereby irrevocably appoints Secured Party as such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor, Secured
Party or otherwise, in Secured Party’s discretion to take any action and to execute any instrument that Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, from time to time after the occurrence and
during the continuation of an Event of Default, or in the case of (a) and (e) below, a Potential Event of Default, including:


     (a) to obtain and adjust insurance (including any claims thereunder) required to be maintained by such Grantor or paid to Secured Party pursuant to the Credit Agreement;


     (b) to ask for, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral;


     (c) to receive, endorse and collect any drafts or other instruments, documents and chattel paper in connection with clauses (a) and (b) above;


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     (d) to file any claims or take any action or institute any proceedings that Secured Party may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights
of Secured Party with respect to any of the Collateral;


     (e) to pay or discharge taxes or Liens (other than Liens permitted under this Agreement or the Credit Agreement, including Permitted Encumbrances) levied or placed upon or threatened against the
Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by Secured Party in its sole discretion, any such payments made by Secured Party to become obligations of such Grantor to Secured Party,
due and payable immediately without demand;


     (f) to sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with
Accounts and other documents relating to the Collateral; and


     (g) generally to sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though Secured Party were the absolute owner thereof
for all purposes, and to do, at Secured Party’s option and Grantors’ expense, at any time or from time to time, all acts and things that Secured Party deems necessary to protect, preserve or realize upon the Collateral and Secured
Party’s security interest therein in order to effect the intent of this Agreement, all as fully and effectively as such Grantor might do.


	
14 Secured Party May Perform.







     If any Grantor fails to perform any agreement contained herein, Secured Party may itself perform, or cause performance of, such agreement, and the expenses of Secured Party incurred in connection
therewith shall be payable by Grantors under subsections 10.2 and 10.3 of the Credit Agreement and Section 19 hereof.


	
15 Standard of Care.







     The powers conferred on Secured Party hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the exercise of
reasonable care in the custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, Secured Party shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights
against prior parties or any other rights pertaining to any Collateral. Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which Secured Party accords its own property.


	
16 Remedies.







     (a) Generally. If any “Event of Default” (as defined in the Credit Agreement) shall have occurred and be continuing or upon the
occurrence of an Early Termination Date that has not been rescinded (as defined in a Master Agreement in the form prepared by the International Swap and Derivatives Association, Inc. or a similar event under any similar swap agreement) under any
Lender Hedge Agreement that results in a Hedge Termination Value


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owed by the Borrower or a Restricted Subsidiary greater than $10,000,000  (either such occurrence being an “Event of Default” for purposes of this
Agreement), Secured Party may exercise in respect of the Collateral, with the consent and at the direction of the Required Lenders in addition to all 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 (whether or not the UCC applies to the affected Collateral), and also may (i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of Secured Party
forthwith, assemble all or part of the Collateral as directed by Secured Party and make it available to Secured Party at a place to be designated by Secured Party that is reasonably convenient to both parties, (ii) enter onto the property where any
Collateral is located and take possession thereof with or without judicial process, (iii) prior to the disposition of the Collateral, store, process, repair or recondition the Collateral or otherwise prepare the Collateral for disposition in any
manner to the extent Secured Party deems appropriate, (iv) take possession of any Grantor’s premises or place custodians in exclusive control thereof, remain on such premises and use the same and any of such Grantor’s equipment for the
purpose of completing any work in process, taking any actions described in the preceding clause (iii) and collecting any Secured Obligation, (v) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels
at public or private sale, at any of Secured Party’s offices or elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or prices and upon such other terms as Secured Party may deem commercially
reasonable, (vi) exercise dominion and control over and refuse to permit further withdrawals from any Deposit Account maintained with Secured Party or any Lender constituting a part of the Collateral and provide instructions directing the
disposition of funds in Deposit Accounts not maintained with Secured Party or any Lender and (vii) without notice to any Grantor, transfer to or to register in the name of Secured Party or any of its nominees any or all of the Securities Collateral.
Secured Party or any Lender or Hedge Provider may be the purchaser of any or all of the Collateral at any such sale and Secured Party, as agent for and representative of Lenders and Hedge Providers (but not any Lender or Hedge Provider in its
individual capacity unless Requisite Obligees (as defined in Section 21(a)) shall otherwise agree in writing), shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the
Collateral sold at any such public sale, to use and apply any of the Secured Obligations as a credit on account of the purchase price for any Collateral payable by Secured Party at such sale.  Each purchaser at any such sale shall hold the property
sold absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future
have under any rule of law or statute now existing or hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to such Grantor of the time and place of any public sale or the
time after which any private sale is to be made shall constitute reasonable notification. Secured Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. Secured Party 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.  Each Grantor hereby waives any claims against Secured Party
arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale, even if Secured Party accepts the first offer received


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and does not offer such Collateral to more than one offeree. If the proceeds of any sale or other disposition of the Collateral are insufficient to pay all the Secured Obligations, Grantors shall be jointly and severally liable
for the deficiency and the reasonable fees of any attorneys employed by Secured Party to collect such deficiency.  Each Grantor further agrees that a breach of any of the covenants contained in this Section will cause irreparable injury to Secured
Party, that Secured Party has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section shall be specifically enforceable against such Grantor, and each Grantor hereby waives
and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no default has occurred giving rise to the Secured Obligations becoming due and payable prior to their stated
maturities.


     For purposes of this Section 16(a), “Hedge Termination Value” means, in respect of any one or more Lender Hedge Agreements, after taking into account the effect of any legally enforceable
netting agreement relating to such Lender Hedge Agreements, (a) for any date on or after the date such Lender Hedge Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for
any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Lender Hedge Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any
recognized dealer in such Lender Hedge Agreements (which may include a Lender or any Affiliate of a Lender).

	
(b)      		
Securities Collateral.	
	 
	 	
(i) Each Grantor recognizes that, by reason of certain prohibitions	
	 



contained in the Securities Act and applicable state securities laws, Secured Party may be compelled, with respect to any sale of all or any part of the Securities Collateral conducted without prior registration or qualification
of such Securities Collateral under the Securities Act and/or such state securities laws, to limit purchasers to those who will agree, among other things, to acquire the Securities Collateral for their own account, for investment and not with a view
to the distribution or resale thereof.  Each Grantor acknowledges that any such private sales may be at prices and on terms less favorable than those obtainable through a public sale without such restrictions (including a public offering made
pursuant to a registration statement under the Securities Act) and, notwithstanding such circumstances and the registration rights granted to Secured Party by such Grantor pursuant hereto, each Grantor agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner and that Secured Party shall have no obligation to engage in public sales and no obligation to delay the sale of any Securities Collateral for the period of time necessary to permit the
issuer thereof to register it for a form of public sale requiring registration under the Securities Act or under applicable state securities laws, even if such issuer would, or should, agree to so register it.  If Secured Party determines to
exercise its right to sell any or all of the Securities Collateral, upon written request, each Grantor shall and shall cause each issuer of any Pledged Shares to be sold hereunder from time to time to furnish to Secured Party all such information as
Secured Party may request in order to determine the number of shares and other instruments included in the Securities Collateral which may be sold by Secured Party in exempt transactions under the Securities Act and the rules and


26











regulations of the Securities and Exchange Commission thereunder, as the same are from time to time in effect.


     (ii) If Secured Party shall determine to exercise its right to sell all or any of the Securities Collateral pursuant to this Section, each Grantor agrees that, upon reasonable request of Secured Party
(which request may be made by Secured Party in its sole discretion), such Grantor will, at its own expense do or cause to be done all such other acts and things as may be necessary to make such sale of the Securities Collateral or any part thereof
valid and binding and in compliance with applicable law; and bear all costs and expenses, including reasonable attorneys’ fees, of carrying out its obligations under this Section.


     (iii) Without limiting the generality of subsections 10.2 and 10.3 of the Credit Agreement, in the event of any public sale described herein, each Grantor agrees to indemnify and hold harmless Secured
Party, and each Lender and each Hedge Provider and each of their respective directors, officers, employees and agents from and against any loss, fee, cost, expense, damage, liability or claim, joint or several, to which any such Persons may become
subject or for which any of them may be liable, under the Securities Act or otherwise, insofar as such losses, fees, costs, expenses, damages, liabilities or claims (or any litigation commenced or threatened in respect thereof) arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement, prospectus or other such document published or filed in connection with such public sale, or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse Secured Party and
such other Persons for any legal or other expenses reasonably incurred by Secured Party and such other Persons in connection with any litigation, of any nature whatsoever, commenced or threatened in respect thereof (including any and all fees, costs
and expenses whatsoever reasonably incurred by Secured Party and such other Persons and counsel for Secured Party and such other Persons in investigating, preparing for, defending against or providing evidence, producing documents or taking any
other action in respect of, any such commenced or threatened litigation or any claims asserted). This indemnity shall be in addition to any liability which any Grantor may otherwise have and shall extend upon the same terms and conditions to each
Person, if any, that controls Secured Party or such Persons within the meaning of the Securities Act.


     (c) Collateral Account. If an Event of Default has occurred and is continuing and, in accordance with Section 8 of the Credit Agreement,
Borrower is required to pay to Secured Party an amount (the “Aggregate Available Amount”) equal to the maximum amount that may at any time be drawn under all Letters of Credit then
outstanding under the Credit Agreement, Borrower shall deliver funds in such an amount for deposit in the Collateral Account.  If for any reason the aggregate amount delivered by Borrower for deposit in the Collateral Account as aforesaid is less
than the Aggregate Available Amount, the aggregate amount so delivered by Borrower shall be apportioned among all outstanding Letters of Credit for purposes of this Section in accordance with the ratio of the maximum amount available for drawing
under each such Letter of Credit (as to such Letter of Credit, the “Maximum


27











Available Amount”) to the Aggregate Available Amount.  Upon any drawing under any outstanding Letter of Credit in respect of which Borrower has deposited in the Collateral Account any amounts
described above, Secured Party shall apply such amounts to reimburse the Issuing Bank for the amount of such drawing. In the event of cancellation or expiration of any Letter of Credit in respect of which Borrower has deposited in the Collateral
Account any amounts described above, or in the event of any reduction in the Maximum Available Amount under such Letter of Credit, Secured Party shall apply the amount then on deposit in the Collateral Account in respect of such Letter of Credit
(less, in the case of such a reduction, the Maximum Available Amount under such Letter of Credit immediately after such reduction) first, to the payment of any amounts payable to Secured Party pursuant to Section 18 hereof, second, to the extent of
any excess, to the cash collateralization pursuant to the terms of this Agreement of any outstanding Letters of Credit in respect of which Borrower has failed to pay all or a portion of the amounts described above (such cash collateralization to be
apportioned among all such Letters of Credit in the manner described above), third, to the extent of any further excess, to the payment of any other outstanding Secured Obligations in such order as Secured Party shall elect, and fourth, to the
extent of any further excess, to the payment to whomsoever shall be lawfully entitled to receive such funds.


17 Additional Remedies for Intellectual Property Collateral.


     (a) Anything contained herein to the contrary notwithstanding, upon the occurrence and during the continuation of an Event of Default, (i) Secured Party shall have the right (but not the obligation)
to bring suit, in the name of any Grantor, Secured Party or otherwise, to enforce any Intellectual Property Collateral, in which event each Grantor shall, at the request of Secured Party, do any and all lawful acts and execute any and all documents
required by Secured Party in aid of such enforcement and each Grantor shall promptly, upon demand, reimburse and indemnify Secured Party as provided in subsections 10.2 and 10.3 of the Credit Agreement and Section 19 hereof, as applicable, in
connection with the exercise of its rights under this Section, and, to the extent that Secured Party shall elect not to bring suit to enforce any Intellectual Property Collateral as provided in this Section, each Grantor agrees to use all reasonable
measures, whether by action, suit, proceeding or otherwise, to prevent the infringement of any of the Intellectual Property Collateral by others and for that purpose agrees to use its commercially reasonable judgment in maintaining any action, suit
or proceeding against any Person so infringing reasonably necessary to prevent such infringement; (ii) upon written demand from Secured Party, each Grantor shall execute and deliver to Secured Party an assignment or assignments of the Intellectual
Property Collateral and such other documents as are necessary or appropriate to carry out the intent and purposes of this Agreement; (iii) each Grantor agrees that such an assignment and/or recording shall be applied to reduce the Secured
Obligations outstanding only to the extent that Secured Party (or any Lender) receives cash proceeds in respect of the sale of, or other realization upon, the Intellectual Property Collateral; and (iv) within five Business Days after written notice
from Secured Party, each Grantor shall make available to Secured Party, to the extent within such Grantor’s power and authority, such personnel in such Grantor’s employ on the date of such Event of Default as Secured Party may reasonably
designate, by name, title or job responsibility, to permit such Grantor to continue, directly or indirectly, to produce, advertise and sell the products and services sold or delivered by such Grantor under or in connection with the Trademarks,
Trademark Registrations and Trademark Rights, such persons to be available to perform their prior functions on Secured


28











Party’s behalf and to be compensated by Secured Party at such Grantor’s expense on a per diem, pro-rata basis consistent with the salary and benefit structure applicable to each as of the date of such Event of
Default.


     (b) If (i) an Event of Default shall have occurred and, by reason of cure, waiver, modification, amendment or otherwise, no longer be continuing, (ii) no other Event of Default shall have occurred and
be continuing, (iii) an assignment to Secured Party of any rights, title and interests in and to the Intellectual Property Collateral shall have been previously made, and (iv) the Secured Obligations shall not have become immediately due and
payable, upon the written request of any Grantor, Secured Party shall promptly execute and deliver to such Grantor such assignments as may be necessary to reassign to such Grantor any such rights, title and interests as may have been assigned to
Secured Party as aforesaid, subject to any disposition thereof that may have been made by Secured Party; provided, after giving effect to such reassignment, Secured Party’s security interest granted pursuant hereto, as well as all other rights
and remedies of Secured Party granted hereunder, shall continue to be in full force and effect; and provided further, the rights, title and interests so reassigned shall be free and clear of all Liens other than Liens (if any) encumbering such
rights, title and interest at the time of their assignment to Secured Party and Permitted Encumbrances.


	
18 Application of Proceeds.







     Except as expressly provided elsewhere in this Agreement, all proceeds received by Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral
shall be applied as provided in the Credit Agreement.


	
19 Indemnity and Expenses.







     (a) Grantors jointly and severally agree to indemnify Secured Party, each Lender and each Hedge Provider from and against any and all claims, losses and liabilities in any way relating to, growing out
of or resulting from this Agreement and the transactions contemplated hereby (including, without limitation, enforcement of this Agreement), except to the extent such claims, losses or liabilities result from Secured Party’s or such
Lender’s or Hedge Provider’s gross negligence or willful misconduct as finally determined by a court of competent jurisdiction.


     (b) Grantors jointly and severally agree to pay to Secured Party upon demand the amount of any and all costs and expenses, including the reasonable fees and expenses of its counsel and of any experts
and agents, that Secured Party may incur in connection with (i) the administration of this Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any of the Collateral, (iii) the
exercise or enforcement of any of the rights of Secured Party hereunder, or (iv) the failure by any Grantor to perform or observe any of the provisions hereof.


     (c) The obligations of Grantors in this Section 19 shall (i) survive the termination of this Agreement and the discharge of Grantors’ other obligations under this Agreement, the Lender Hedge
Agreements, the Credit Agreement and the other Loan


29











Documents and (ii), as to any Grantor that is a party to a Subsidiary Guaranty, be subject to the provisions of Section 1(b) thereof.


20 Continuing Security Interest; Transfer of Loans; Termination and Release.


     (a) This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect until the payment in full of the Secured Obligations, the cancellation or
termination of the Commitments and the cancellation or expiration or, to the extent approved by the Issuing Bank in its sole discretion, cash collateralization or collateralization by “back-to-back” letters of credit of all outstanding
Letters of Credit, (ii) be binding upon Grantors and their respective successors and assigns, and (iii) inure, together with the rights and remedies of Secured Party hereunder, to the benefit of Secured Party and its successors, transferees and
assigns; provided that if any Grantor makes an Asset Sale permitted by the Credit Agreement, Secured Party shall release concurrently with the consummation of such Asset Sale the assets constituting Collateral that are the subject of such Asset Sale
to Borrower or such Grantor free and clear of the lien and security interest under this Agreement; provided, further that, as a
condition precedent to such release, Secured Party shall have received evidence satisfactory to it that Borrower is in compliance with subsection 2.4B(iii)(a) of the Credit Agreement. Without limiting the generality of the foregoing clause (iii),
(A) but subject to the provisions of subsection 10.1 of the Credit Agreement, any Lender may assign or otherwise transfer any Loans held by it to any other Person, and such other Person shall thereupon become vested with all the benefits in respect
thereof granted to Lenders herein or otherwise and (B) any Hedge Provider may assign or otherwise transfer any Lender Hedge Agreement to which it is a party to any other Person in accordance with the terms of such Lender Hedge Agreement, and such
other Person shall thereupon become vested with all the benefits in respect thereof granted to Hedge Providers herein or otherwise.


     (b) Upon the payment in full of all Secured Obligations, the cancellation or termination of the Commitments and the cancellation or expiration or, to the extent approved by the Issuing Bank in its
sole discretion, cash collateralization or collateralization by “back-to-back” letters of credit of all outstanding Letters of Credit, the security interest granted hereby shall terminate and all rights to the Collateral shall revert to
the applicable Grantors. Upon any such termination Secured Party will, at Grantors’ expense, execute and deliver to Grantors such documents as Grantors shall reasonably request to evidence such termination. In addition, upon the proposed sale,
transfer or other disposition of any Collateral by a Grantor in accordance with the Credit Agreement for which such Grantor desires to obtain a security interest release from Secured Party, such Grantor shall deliver an Officer’s Certificate
(x) stating that the Collateral subject to such disposition is being sold, transferred or otherwise disposed of in compliance with the terms of the Credit Agreement and (y) specifying the Collateral being sold, transferred or otherwise disposed of
in the proposed transaction. Upon the receipt of such Officer’s Certificate, Secured Party shall, at such Grantor’s expense, so long as Secured Party has no reasonable reason to believe that the Officer’s Certificate delivered by such
Grantor with respect to such sale is not true and correct, execute and deliver such releases of its security interest in such Collateral which is to be so sold, transferred or disposed of, as may be reasonably requested by such Grantor.


30











     (c) As used in this Agreement, the term “payment in full” or “paid in full” means the payment in full of the Secured Obligations, other than any inchoate reimbursement or
indemnification obligations for which no claim has been asserted.


	
21 Secured Party as Agent.







     (a) Secured Party has been appointed to act as Secured Party hereunder by Lenders and, by their acceptance of the benefits hereof, Hedge Providers. Secured Party shall be obligated, and shall have the
right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action (including, without limitation, the release or substitution of Collateral), solely in accordance with
this Agreement and the Credit Agreement; provided that Secured Party shall exercise, or refrain from exercising, any remedies provided for in Section 16 in accordance with the instructions of (i) Requisite Lenders or (ii) after payment in full of
all Obligations under the Credit Agreement and the other Loan Documents, the cancellation or expiration or cash collateralization or collateralization by “back-to-back” letters of credit of all Letters of Credit and the termination of the
Commitments, (A) the holders of a majority of the aggregate notional amount under all Lender Hedge Agreements (including Lender Hedge Agreements that have been terminated) or (B) if all Lender Hedge Agreements have been terminated in accordance with
their terms, the aggregate amount then due and payable (exclusive of expenses and similar payments but including any early termination payments then due) under such Lender Hedge Agreements (Requisite Lenders or, if applicable, such holders being
referred to herein as “Requisite Obligees”).  In furtherance of the foregoing provisions of this Section 21(a), each Hedge Provider, by its acceptance of the benefits hereof,
agrees that it shall have no right individually to realize upon any of the Collateral hereunder, it being understood and agreed by such Hedge Provider that all rights and remedies hereunder may be exercised solely by Secured Party for the benefit of
Lenders and Hedge Providers in accordance with the terms of this Section 21(a).


     (b) Secured Party shall at all times be the same Person that is Administrative Agent under the Credit Agreement.  Written notice of resignation by Administrative Agent pursuant to subsection 9.5 of
the Credit Agreement shall also constitute notice of resignation as Secured Party under this Agreement; removal of Administrative Agent pursuant to subsection 9.5 of the Credit Agreement shall also constitute removal as Secured Party under this
Agreement; and appointment of a successor Administrative Agent pursuant to subsection 9.5 of the Credit Agreement shall also constitute appointment of a successor Secured Party under this Agreement.  Upon the acceptance of any appointment as
Administrative Agent under subsection 9.5 of the Credit Agreement by a successor Administrative Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the
retiring or removed Secured Party under this Agreement, and the retiring or removed Secured Party under this Agreement shall promptly (i) transfer to such successor Secured Party all sums, securities and other items of Collateral held hereunder,
together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor Secured Party under this Agreement, and (ii) execute and deliver to such successor Secured Party such amendments
to financing statements, and take such other actions, as may be necessary or appropriate in connection with the assignment to such successor Secured Party of the security interests created hereunder, whereupon such retiring or removed Secured Party
shall be discharged from its duties and


31











obligations under this Agreement.  After any retiring or removed Administrative Agent’s resignation or removal hereunder as Secured Party, the provisions of this Agreement shall inure to its benefit as to any actions taken or
omitted to be taken by it under this Agreement while it was Secured Party hereunder.


     (c) Secured Party shall not be deemed to have any duty whatsoever with respect to any Hedge Provider until it shall have received written notice in form and substance satisfactory to Secured Party
from a Grantor or any such Hedge Provider as to the existence and terms of the applicable Lender Hedge Agreement.


	
22 Additional Grantors.







     From time to time subsequent to the date hereof, additional Restricted Subsidiaries of Borrower may execute and deliver a counterpart to the Subsidiary Guaranty. In connection therewith, such
Subsidiaries of Borrower may become parties hereto as additional Grantors (each an “Additional Grantor”), by executing a Counterpart substantially in the form of Exhibit VI annexed hereto. Upon delivery of any such Counterpart to Secured Party, notice of which is hereby waived by Grantors, each such Additional Grantor shall be a Grantor and shall be as fully a party
hereto as if such Additional Grantor were an original signatory hereto. Each Grantor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other Grantor hereunder, nor by any
election of Administrative Agent not to cause any Subsidiary of Borrower to become an Additional Grantor hereunder. This Agreement shall be fully effective as to any Grantor that is or becomes a party hereto regardless of whether any other Person
becomes or fails to become or ceases to be a Grantor hereunder.


	
23 Amendments; Etc.







     No amendment, modification, termination or waiver of any provision of this Agreement, and no consent to any departure by any Grantor therefrom, shall in any event be effective unless the same shall be
in writing and signed by Secured Party and, in the case of any such amendment or modification, by Grantors; provided this Agreement may be modified by the execution of a Counterpart by an
Additional Grantor in accordance with Section 22 and Grantors hereby waive any requirement of notice of or consent to any such amendment. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for
which it was given.


	
24 Notices.







     Any notice or other communication herein required or permitted to be given shall be in writing and may be personally served or sent by telefacsimile or United States mail or courier service and shall
be deemed to have been given when delivered in person or by courier service, upon receipt of telefacsimile, or three Business Days after depositing it in the United States mail with postage prepaid and properly addressed. For the purposes hereof,
the address of each party hereto shall be as provided in subsection 10.8 of the Credit Agreement or as set forth under such party’s name on the signature pages to the Subsidiary Guaranty or such other address as shall be designated by such
party in a written notice delivered to the other parties hereto.


32











25 Failure or Indulgence Not Waiver; Remedies Cumulative.


     No failure or delay on the part of Secured Party in the exercise of any power, right or privilege hereunder shall impair such power, right or privilege or be construed to be a waiver of any default or
acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude any other or further exercise thereof or of any other power, right or privilege.  All rights and remedies existing under this Agreement are
cumulative to, and not exclusive of, any rights or remedies otherwise available.


	
26 Severability.







     In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.


	
27 Headings; Recitals.







     Section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any
substantive effect.  The recitals, Schedules and Exhibits to this Agreement are incorporated herein by this reference.


28 Governing Law; Terms; Rules of Construction.


     THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, EXCEPT TO THE EXTENT THAT THE UCC PROVIDES THAT THE 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. Unless otherwise defined herein or in the Credit Agreement, terms used in Articles 8 and 9 of the Uniform Commercial Code
in the State of New York are used herein as therein defined. The rules of construction set forth in subsection 1.3 of the Credit Agreement shall be applicable to this Agreement mutatis mutandis. If any conflict or inconsistency exists between this Agreement and the Credit Agreement, the Credit Agreement shall govern.  All references herein to provisions of the UCC shall include all successor provisions under any subsequent
version or amendment to any Article of the UCC.


29 Consent to Jurisdiction and Service of Process.


     ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY GRANTOR ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY OBLIGATIONS HEREUNDER, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION
IN THE STATE, COUNTY AND CITY OF NEW YORK. BY


33











EXECUTING AND DELIVERING THIS AGREEMENT, EACH GRANTOR, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (I) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (II) WAIVES ANY
DEFENSE OF FORUM NON CONVENIENS; (III) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO
SUCH GRANTOR AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 24; (IV) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (III) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER SUCH GRANTOR IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; (V) AGREES THAT SECURED PARTY RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST SUCH GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION;
AND (VI) AGREES THAT THE PROVISIONS OF THIS SECTION 29 RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE TO THE FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1402 OR OTHERWISE.


	
30 Waiver of Jury Trial.







     GRANTORS AND SECURED PARTY HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.  The scope of this waiver is
intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this transaction, including, without limitation, contract claims, tort claims, breach of duty claims, and all other
common law and statutory claims. Each Grantor and Secured Party acknowledge that this waiver is a material inducement for Grantors and Secured Party to enter into a business relationship, that Grantors and Secured Party have already relied on this
waiver in entering into this Agreement and that each will continue to rely on this waiver in their related future dealings. Each Grantor and Secured Party further warrant and represent that each has reviewed this waiver with its legal counsel, and
that each knowingly and voluntarily waives its jury trial rights following consultation with legal counsel.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER
SPECIFICALLY REFERRING TO THIS SECTION 30 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. In the event of litigation, this Agreement may
be filed as a written consent to a trial by the court.


	
31 Counterparts.







     This Agreement may be executed in one or more counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same
document.


34











	
32 Gaming Laws.







     This Agreement is subject to the Gaming Laws and laws involving the sale, distribution and possession of alcoholic beverages (the “Liquor Laws”). Without limiting the foregoing, each of the Administrative Agent, Secured Party and Lenders by its acceptance hereof acknowledges that (i) it is subject to being called forward by the Gaming Authorities or Government Authorities
enforcing the Liquor Laws (the “Liquor Authorities”), in their discretion, for licensing or a finding of suitability or to file or provide other information, and (ii) all rights,
remedies and powers under this Agreement and the other Loan Documents, including with respect to the entry into and ownership and operation of the Gaming Facilities, and the possession or control of gaming equipment, alcoholic beverages or a gaming
or liquor licensee, may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of the Gaming Laws and Liquor Laws and only to the extent that required approvals (including prior approvals) are obtained
from the requisite Government Authorities.


	
[Remainder of page intentionally left blank]







35











     IN WITNESS WHEREOF, Grantors and Secured Party have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as
of the date first written above.


	
ISLE OF CAPRI CASINOS, INC.







	
By: 
__________________________







	
Name:

Title:







	
CREDIT SUISSE, CAYMAN ISLANDS

BRANCH, as Secured Party







	
By:
_____________________________






	
Name: 
		
 		
[
_____________
] 
	
	
Title: 
		
 		
[
_____________
] 
	




[ADD SIGNATURE BLOCKS OF RESTRICTED


	
SUBSIDIARIES]







36











     SCHEDULE 1(d) TO SECURITY AGREEMENT


Assigned Agreements


37










	
SCHEDULE 1(f)(i) TO
	
	
SECURITY AGREEMENT
	
	


	
	
 
	
	
 
	
	
 
		
 		
 
		
 		
 
		
 		
 
		
 		
 
		
 		
Percentage of 
	
	
 
		
 		
 
		
 		
 
		
 		
 
		
 		
Number of 
		
 		
Outstanding 
	
	
 
		
 		
 
		
 		
 
		
 		
 
		
 		
Shares, 
		
 		
Shares, 
	
	
 
		
 		
 
		
 		
Stock or 
		
 		
 
		
 		
Partnership 
		
 		
Partnership 
	
	
 
		
 		
Class 
		
 		
Equity Interest 
		
 		
 
		
 		
Units or 
		
 		
Units, or 
	
	
Stock or Equity 
		
 		
of Stock or Equity 
		
 		
Certificate 
		
 		
Par 
		
 		
Membership 
		
 		
Membership 
	
	
Interest Issuer 
		
 		
Interest 
		
 		
Nos. 
		
 		
Value 
		
 		
Units 
		
 		
Units Pledged 
	
	


		
		


		
		


		
		


		
		


		
		


	




38










	
SCHEDULE 1(f)(ii) TO 
		
 		
 
	
	
SECURITY AGREEMENT 
		
 		
 
	
	


		
		


	
	
 
	
	
 
		
 		
Amount of 
	
	
Debt Issuer 
		
 		
Indebtedness 
	
	


		
		


	




39










	
SCHEDULE 1(g)(i) TO
	
	
SECURITY AGREEMENT
	
	
 
	
	
U.S. Trademarks: 
		
 		
 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
Trademark 
		
 		
Registration 
		
 		
Registration 
	
	
          Registered Owner 
		
 		
Description 
		
 		
Number 
		
 		
Date 
	



	
Foreign Trademarks: 
		
 		
 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
Trademark 
		
 		
Registration 
		
 		
Registration 
	
	
          Registered Owner 
		
 		
Description 
		
 		
Number 
		
 		
Date 
	




40











     SCHEDULE 1(g)(ii) TO SECURITY AGREEMENT


U.S. Patents Issued:


Patent No. Issue Date Invention Inventor

	
U.S. Patents Pending: 
		
 		
 
		
 		
 
		
 		
 
		
 		
 
	
	
Applicant’s 
		
 		
Date 
		
 		
Application 
		
 		
 
		
 		
 
	
	
                    Name 
		
 		
Filed 
		
 		
Number 
		
 		
                    Invention 
		
 		
      Inventor 
	
	
 
	
	
 
	
	
Foreign Patents Issued: 
		
 		
 
		
 		
 
		
 		
 
		
 		
 
	
	
Patent No. 
		
 		
            Issue Date 
		
 		
 
		
 		
Invention 
		
 		
Inventor 
	



	
Foreign Patents Pending: 
		
 		
 
		
 		
 
		
 		
 
	
	
 
	
	
Applicant’s 
		
 		
Date 
		
 		
Application 
		
 		
 
		
 		
 
	
	
Name 
		
 		
Filed 
		
 		
Number 
		
 		
Invention 
		
 		
Inventor 
	




41











	
SCHEDULE 1(g)(iii) TO

SECURITY AGREEMENT






	
U.S. Copyrights: 
		
 		
 
		
 		
 
	
	
Title 
		
 		
Registration No. 
		
 		
Date of Issue 
		
 		
Registered Owner 
	



	
Foreign Copyright Registrations: 
		
 		
 
	
	
Country 
		
 		
Title Registration No. 
		
 		
Date of Issue 
	




Pending U.S. Copyright Registrations & Applications:


Title Reference No. Date of Application Copyright Claimant

	
Pending Foreign Copyright Registrations 
		
 		
& Applications: 
	
	
Country 
		
 		
Title Registration No. 
		
 		
Date of Issue 
	




42










	
 
		
 		
SCHEDULE 4(b) 
	
	
 
		
 		
TO 
	
	
 
		
 		
SECURITY AGREEMENT 
	
	
 
		
 		
Locations of Equipment and Inventory 
	
	
Name of Grantor 
		
 		
                                              Locations of
Equipment and Inventory 
	




43











SCHEDULE 4(d)


TO


SECURITY AGREEMENT


Office Locations, Type and Jurisdiction of Organization and Name

	
Name of Grantor 
		
 		
Type and Jurisdiction of 
		
 		
Organizational 
		
 		
Office Location 
	
	
 
		
 		
Organization 
		
 		
Number 
		
 		
 
	
	


		
		


		
		


		
		


	




44











	
SCHEDULE 4(e)



TO



SECURITY AGREEMENT



Other Names







	
Name of Grantor







	
Other Names







45











	
SCHEDULE 4(i)



TO



SECURITY AGREEMENT



Filing Offices







	
Grantor







	
Filing Offices







46











	
SCHEDULE 4(j)



TO



SECURITY AGREEMENT



Aircraft and Vessels







	
Aircraft







	
Vessels







47











SCHEDULE 4(k)


TO


SECURITY AGREEMENT


Commercial Tort Claims and Letters of Credit


Commercial Tort Claims Letters of Credit


48











	
EXHIBIT IV TO

SECURITY AGREEMENT







	
PLEDGE SUPPLEMENT







     This Pledge Supplement, dated 
__________________
, is delivered pursuant to the Security Agreement, dated July 26, 2007 among Isle of Capri Casinos, Inc., a Delaware corporation
(“Grantor”), the other Grantors named therein, and Credit Suisse, Cayman Islands Branch, as Secured Party (as it may be amended, modified, restated or supplemented from time to
time, the “Security Agreement”). Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed thereto in the Security Agreement.


     Grantor hereby agrees that the [Pledged Shares] [Pledged Debt] listed on the schedule attached hereto shall be deemed to be part of the
[Pledged Shares] [Pledged Debt] and shall become part of the Securities Collateral and shall secure all Secured Obligations and Schedule [1(f)(i)]
[1(f)(ii)] to the Security Agreement shall be deemed to be modified to include such [Pledged Shares] [Pledged Debt] in accordance with the terms and provisions
of the Security Agreement.


     IN WITNESS WHEREOF, Grantor has caused this Pledge Supplement to be duly executed and delivered by its duly authorized officer as of 
_______________
.


	
[GRANTOR]







	
By:

Name:

Title:







49











	
EXHIBIT V TO

SECURITY AGREEMENT







	
IP SUPPLEMENT







     This IP SUPPLEMENT, dated 
_______
, is delivered pursuant to and supplements (i) the Security Agreement, dated as of July 26, 2007 (as it may be from time to time amended, modified, restated or
supplemented, the “Security Agreement”), among Isle of Capri Casinos, Inc., a Delaware corporation, [Insert Name of Grantor], the other Grantors named therein, and Credit Suisse, Cayman Islands Branch, as Secured Party, and (ii) the [Grant of Trademark Security Interest] [Grant of Patent Security Interest] [Grant of Copyright
Security Interest] dated as of 
___________
, 
_____
 (the “Grant”) executed by Grantor.  Capitalized terms used herein not otherwise
defined herein shall have the meanings ascribed thereto in the Grant.


     [“Grantor”] grants to Secured Party a security interest in all of Grantor’s right, title and interest in and to the [Trademark Collateral] [Patent Collateral] [Copyright Collateral] listed on Schedule A attached hereto in accordance with the terms and provisions of the Security Agreement.  All such [Trademark Collateral] [Patent Collateral] [Copyright Collateral] shall be deemed to be part of the [Trademark Collateral] [Patent Collateral] [Copyright
Collateral] and shall be hereafter subject to each of the terms and conditions of the Security Agreement and the Grant.


     IN WITNESS WHEREOF, Grantor has caused this Supplement to be duly executed and delivered by its duly authorized officer as of 
______________
.


	
[NAME OF GRANTOR]







	
By:

Name:

Title:







50











	
EXHIBIT VI TO

SECURITY AGREEMENT







	
[FORM OF COUNTERPART]







     This COUNTERPART (this “Counterpart”), dated 
_______
, 200_ is delivered pursuant to Section 22 of the Security Agreement
referred to below. The undersigned hereby agrees that this Counterpart may be attached to the Security Agreement, dated as of July 26, 2007 (as it may be from time to time amended, modified, restated or supplemented, the “Security Agreement”; capitalized terms used herein not otherwise defined herein shall have the meanings ascribed therein), among Isle of Capri Casinos, Inc., a Delaware corporation, the other
Grantors named therein, and Credit Suisse, Cayman Islands Branch, as Secured Party. The undersigned by executing and delivering this Counterpart hereby becomes a Grantor under the Security Agreement in accordance with Section 22 thereof and agrees
to be bound by all of the terms thereof. Without limiting the generality of the foregoing, the undersigned hereby:


     (i) authorizes the Secured Party to add the information set forth on the Schedules to this Agreement to the correlative Schedules attached to the Security Agreement; (ii) agrees that all personal
property of the undersigned, to the extent of the types described in Section 1 of the Security Agreement other than Excluded Collateral, including the items of property described on the Schedules hereto, shall become part of the Collateral and shall
secure all Secured Obligations, and the undersigned hereby assigns, grants and pledges to Secured Party a security interest on a first priority basis (subject to Permitted Encumbrances) in all of its right, title and interest in and to and under all
of such personal property (including each class of property defined as Collateral under the Security Agreement) to secure all Secured Obligations as and to the extent provided for in the Security Agreement; and


     (iii) makes the representations and warranties set forth in the Security Agreement, as amended hereby, to the extent relating to the undersigned.


	
[NAME OF ADDITIONAL GRANTOR]







	
By:

Name:

Title:







51