Exhibit 10.7


 


EXECUTION VERSION


 


PLEDGE AND SECURITY AGREEMENT


 


THIS PLEDGE AND SECURITY
AGREEMENT (as it may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Security
Agreement”) is entered into as of August 15, 2017, by and among EQT Avatar Intermediate, Inc., a Delaware corporation
(“Holdings”), EQT Avatar Holdings, Inc., a Delaware corporation (“Buyer” or the “Initial
Borrower”), Certara Holdco, Inc., a Delaware corporation (the “Parent Borrower”), Certara USA, Inc.,
a Delaware corporation (the “Co-Borrower” and, together with the Initial Borrower (prior to the consummation
of the Closing Date Assumption (as defined in the Credit Agreement referred to below)) and the Parent Borrower, each a “Borrower”
and collectively the “Borrowers”), the Subsidiary Parties (as defined below) from time to time party hereto
(the foregoing, collectively, the “Grantors”) and Jefferies Finance LLC (“Jefferies”), in
its capacity as administrative agent and collateral agent for the Secured Parties (as defined in the Credit Agreement) (in such
capacities, the “Agent”).


 


PRELIMINARY STATEMENT


 


Holdings, the Borrower,
the Lenders, the Agent and others entered into that certain Credit Agreement dated as of August 15, 2017 (as amended, restated,
amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). The Grantors
are entering into this Security Agreement in order to induce the Lenders to enter into and extend credit to the Borrowers under
the Credit Agreement and to secure the Secured Obligations, including their obligations under the Loan Guaranty, each Hedge Agreement
the obligations under which constitute Secured Hedging Obligations and each agreement relating to Banking Services the obligations
under which constitute Banking Services Obligations.


 


ACCORDINGLY, the parties
hereto agree as follows:


 


ARTICLE 1

Definitions


 


Section 1.01.         Terms
Defined in Credit Agreement. All capitalized terms used herein and not otherwise defined shall have the meanings assigned to
such terms in the Credit Agreement.


 


Section 1.02.         Terms
Defined in UCC. Terms defined in the UCC that are not otherwise defined in this Security Agreement or the Credit Agreement
are used herein as defined in Articles 8 or 9 of the UCC, as the context may require (including as if such terms were capitalized
in Article 8 or 9 of the UCC, as the context may require, the following terms: “Account,” “Chattel
Paper,” “Commercial Tort Claim,” “Commodities Account,” “Deposit Accounts,”
 “Document,” “Electronic Chattel Paper,” “Equipment,” “Fixture,”
 “General Intangible,” “Goods,” “Instruments,” “Inventory,”
 “Investment Property,” “Letter-of-Credit Right,” “Securities Account,”
 “Securities Entitlement,” “Supporting Obligation” and “Tangible Chattel Paper”).


 


Section 1.03.         Definitions
of Certain Terms Used Herein. As used in this Security Agreement, in addition to the terms defined in the preamble and Preliminary
Statement above, the following terms shall have the following meanings:


 


“Agent”
has the meaning set forth in the preamble.


 


“Article”
means a numbered article of this Security Agreement, unless another document is specifically referenced.


 



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“Borrower”
and “Borrowers” have the meanings specified in the preamble.


 


“Collateral”
has the meaning set forth in Article 2.


 


“Contract
Rights” means all rights of any Grantor under any Contract, including (a) any and all rights to receive and demand
payments under such Contract, (b) any and all rights to receive and compel performance under such Contract and (c) any
and all other rights, interests and claims now existing or in the future arising in connection with such Contract.


 


“Contracts”
means all contracts between any Grantor and one or more additional parties (including any Hedge Agreement, any licensing agreement
and any partnership agreement, joint venture agreement and/or limited liability company agreement).


 


“Control”
has the meaning set forth in Article 8 of the UCC or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9
of the UCC.


 


“Credit Agreement”
has the meaning set forth in the Preliminary Statement..


 


“Cumulative
Perfection Certificate” means the Perfection Certificate delivered pursuant to Section 4.01(j) of the
Credit Agreement and any Perfection Certificate delivered pursuant to Section 5.12(a) of the Credit Agreement,
in each case, as supplemented from time to time as a result of the delivery of any Perfection Certificate Supplement pursuant to
Section 5.01(i) of the Credit Agreement.


 


“Exhibit”
refers to a specific exhibit to this Security Agreement, unless another document is specifically referenced.


 


“Grantors”
has the meaning set forth in the preamble.


 


“Holdings”
has the meaning set forth in the preamble.


 


“Intellectual
Property Collateral” means, collectively, all Copyrights, Patents, Trademarks, Trade Secrets, Domain Names, Licenses
and Software.


 


“Intellectual
Property Security Agreement” means an Intellectual Property Security Agreement substantially in the form of Exhibit B
to this Security Agreement.


 


“Jefferies”
has the meaning set forth in the preamble.


 


“Licenses”
means, with respect to any Grantor, all of such Grantor’s right, title, and interest in and to (a) any and all licensing
agreements or similar arrangements, whether as licensor or licensee, in (i) Patents, (ii) Copyrights, (iii) Trademarks,
(iv) Trade Secrets or (v) Software, (b) all income, royalties, damages, claims, and payments now or hereafter due
or payable under and with respect thereto, including damages and payments for past and future breaches thereof and (c) all
rights to sue for past, present, and future breaches thereof.


 


“Money”
has the meaning set forth in Article 1 of the UCC.


 


“Permits”
means all licenses, permits, rights, orders, variances, franchises or authorizations of or from any Governmental Authority or agency.


 


“Pledged Collateral”
means all Pledged Stock, including all stock (or equivalent) certificates, options or rights of any nature whatsoever in respect
of the Pledged Stock that may be issued or granted to, or held by, any Grantor, and all Instruments, Securities and other Investment
Property owned by any Grantor, whether or not physically delivered to the Agent pursuant to this Security Agreement, in each case
whether now owned or hereafter acquired by such Grantor and any and all Proceeds thereof.


 






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“Pledged Stock”
means, with respect to any Grantor, the shares of Capital Stock described in Schedule 3 to the Cumulative Perfection Certificate
as held by such Grantor, together with any other shares of Capital Stock as are hereafter acquired by such Grantor.


 


“Proceeds”
has the meaning assigned in Article 9 of the UCC and, in any event, shall also include but not be limited to (a) any
and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Agent or any Grantor from time to time with respect
to any of the Collateral, (b) any and all payments (in any form whatsoever) made or due and payable to any Grantor from time
to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral
by any Governmental Authority (or any Person acting under color of governmental authority), (c) any and all Stock Rights and
(d) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral.


 


“Receivables”
means any Account, Chattel Paper, Document, Investment Property, Instrument and/or General Intangible, in each case,
that is a right or claim to receive money and is included as Collateral (whether or not earned by performance).


 


“Section”
means a numbered section of this Security Agreement, unless another document is specifically referenced.


 


“Security
Agreement” has the meaning set forth in the preamble.


 


“Software”
means computer programs, source code, object code and supporting documentation, including “software” as such term is
defined in Article 9 of the UCC, as well as computer programs that may be construed as included in the definition of Goods.


 


“Stock Rights”
means all dividends, cash, options, warrants, instruments or other distributions and any other right or property which any Grantor
shall receive or shall become entitled to receive for any reason whatsoever with respect to, in substitution for or in exchange
for any Capital Stock constituting Collateral, any right to receive any Capital Stock constituting Collateral and any right to
receive earnings, in which such Grantor now has or hereafter acquires any right, issued by an issuer of such Capital Stock.


 


“Subsidiary
Parties” means (a) the subsidiaries of any Borrower party hereto on the Closing Date and (b) each Subsidiary
that becomes a party to this Security Agreement after the date hereof in accordance with Section 7.10 hereof and Section 5.12
of the Credit Agreement.


 


“Trade Secrets”
means, with respect to any Grantor, all of such Grantor’s right, title and interest in and to the following: (a) confidential
and proprietary information, including unpatented inventions, invention disclosures, engineering or other data, information, production
procedures, know-how, financial data, customer lists, supplier lists, business and marketing plans, processes, schematics, algorithms,
techniques, analyses, proposals, source code, data, databases and data collections; (b) all income, royalties, damages, and
payments now or hereafter due or payable with respect thereto, including, without limitation, damages, claims and payments for
past and future misappropriations or infringements thereof; (c) all rights to sue for past, present and future infringements
of the foregoing, including the right to settle suits involving claims and demands for royalties owing; and (d) all rights
corresponding to any of the foregoing.


 






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Applicable provisions
in Section 1.03 of the Credit Agreement are incorporated by reference herein as if such Section was set forth herein
in its entirety, mutatis mutandis.


 


ARTICLE 2

Grant of Security Interest


 


Section 2.01.     Grant
of Security Interest. (a) As security for the prompt and complete payment or performance, as the case may be, in full
of the Secured Obligations, each Grantor hereby pledges, collaterally assigns, mortgages, transfers and grants to the Agent, its
successors and permitted assigns, on behalf of and for the benefit of the Secured Parties, a continuing security interest in all
of its right in, and title and interest to and under, all of the following personal property and other assets, whether now owned
by or owing to, or hereafter acquired by or arising in favor of, such Grantor, and regardless of where located (all of which are
collectively referred to as the “Collateral”):


 


(i)            all
Accounts;


 


(ii)           all
Chattel Paper (including all Tangible Chattel Paper and all Electronic Chattel Paper);


 


(iii)          all
Intellectual Property Collateral;


 


(iv)          all
Documents;


 


(v)           all
Equipment;


 


(vi)          all
Fixtures;


 


(vii)         all
General Intangibles;


 


(viii)        all
Goods;


 


(ix)          all
Instruments;


 


(x)           all
Inventory;


 


(xi)          all
Investment Property, Pledged Stock and other Pledged Collateral;


 


(xii)         all
Money, cash and cash equivalents;


 


(xiii)        all
letters of credit and Letter-of-Credit Rights;


 


(xiv)        all
Deposit Accounts, Securities Accounts, Commodities Accounts and all other demand, deposit, time, savings, cash management, passbook
and similar accounts maintained by such Grantor with any bank or other financial institution and all monies, securities, Instruments
and other investments deposited or required to be deposited in any of the foregoing;


 


(xv)         all
Securities Entitlements in any or all of the foregoing;


 


(xvi)        all
Commercial Tort Claims described on Schedule 6 to the Cumulative Perfection Certificate (including any supplements
to such Schedule 6 delivered pursuant to Section 4.04);


 


(xvii)       all
Permits;


 






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(xviii)      all
Software and all recorded data of any kind or nature, regardless of the medium of recording;


  


(xix)         all
Contracts, together with all Contract Rights arising thereunder;


 


(xx)          all
Supporting Obligations; and


 


(xxi)         all
accessions to, substitutions and replacements for and Proceeds and products of the foregoing, together with all books and records,
customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto and
any General Intangibles at any time evidencing or relating to any of the foregoing and all collateral security and guarantees given
by any Person with respect to any of the foregoing.


 


(b)          Notwithstanding
the foregoing, for the avoidance of doubt, the term “Collateral” (and any component definition thereof) shall not include
any Excluded Asset and shall be subject in all respects to the exceptions and exclusions set forth in Section 5.12
of the Credit Agreement. Notwithstanding anything to the contrary contained herein, immediately upon the ineffectiveness, lapse
or termination of any restriction or condition set forth in the definition of “Excluded Assets” in the Credit Agreement,
the Collateral shall include, and the relevant Grantor shall be deemed to have automatically granted a security interest in, all
relevant previously restricted or conditioned rights, interests or other assets, as the case may be, as if such restriction or
condition had never been in effect. For the avoidance of doubt, “Excluded Assets” shall not include any proceeds, products,
substitutions or replacements of Excluded Assets (unless such proceeds, products, substitutions or replacements would otherwise
constitute Excluded Assets).


 


ARTICLE 3

Representations and Warranties


 


The Grantors, jointly
and severally, represent and warrant to the Agent on and as of the Closing Date and on and as of the date of each Credit Extension
(to the extent required by Sections 4.01 or 4.02, as applicable, of the Credit Agreement), for the benefit of the
Secured Parties, that:


 


Section 3.01.         Title,
Perfection and Priority; Filing Collateral.


 


(a)          Subject
to the terms of the last paragraph of Section 4.01 of the Credit Agreement and the Legal Reservations, this Security
Agreement creates a legal, valid and enforceable Lien on all of the Collateral in favor of the Agent for the benefit of itself
and the other Secured Parties and, upon the satisfaction of the applicable Perfection Requirements, such Liens constitute perfected
First Priority Liens (subject to Permitted Liens) on the Collateral (except to the extent Liens are not required to be perfected
under the terms of the Loan Documents and limited to the actions described in the Perfection Requirements) securing the Secured
Obligations, in each case as and to the extent set forth therein.


 


(b)          Each
Grantor (i) is the owner of all of its Collateral free and clear from any Lien or other right, title or interest of any Person
(other than a Permitted Lien and/or any such other right, title or interest that is permitted or not prohibited by the terms of
the Credit Agreement) or (ii) has the power to transfer rights in the Collateral to the Agent.


 


Section 3.02.         Intellectual
Property.


 


(a)          Upon
(i) filing of appropriate financing statements with the Secretary of State (or equivalent office) of the state of organization
of such Grantor and the filing of the Intellectual Property Security Agreement with the United States Patent and Trademark Office
and (ii) filing of the Intellectual Property Security Agreement with the United States Copyright Office, as applicable, the
Agent shall have a fully perfected First Priority Lien on the Collateral constituting of United States issued, registered or applied
for Patents, Trademarks and Copyrights and exclusive Copyright Licenses, as applicable, under the UCC and the laws of the United
States for the ratable benefit of the Secured Parties, and such perfected security interests shall be enforceable as such as against
any and all creditors of and purchasers from the Grantors, subject to the Legal Reservations. No Grantor shall be required to complete
any filings or take any other action with respect to the perfection of the security interests created hereby in any jurisdiction
outside of the United States.


 






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(b)           No
Grantor is aware of (i) any third-party claim (A) that any of its owned Patent, Trademark or Copyright registrations
or applications is invalid or unenforceable, or (B) challenging such Grantor’s rights to such registrations and applications
or (ii) any basis for such claims, other than, in each case, to the extent any such third-party claim would not reasonably
be expected to have a Material Adverse Effect.


 


Section 3.03.         Pledged
Collateral. (i) All Pledged Stock has been duly authorized and validly issued (to the extent such concepts are relevant
with respect to such Pledged Collateral) by the issuer thereof and is fully paid and non-assessable, (ii) as of the date of
the most recently delivered Cumulative Perfection Certificate, each Grantor is the direct owner, beneficially and of record, of
the Pledged Stock described in Schedule 3 to the Cumulative Perfection Certificate as held by such Grantor and (iii) as
of the date of the most recently delivered Cumulative Perfection Certificate, each Grantor holds the Pledged Stock described in
Schedule 3 to the Cumulative Perfection Certificate as held by such Grantor free and clear of all Liens (other than Permitted
Liens).


 


Section 3.04.         Perfection
Certificate. The Cumulative Perfection Certificate has been duly prepared, completed and executed and the certifications set
forth therein are true and correct in all material respects as of the date thereof.


 


ARTICLE 4

Covenants


 


From the date hereof,
and thereafter until the Termination Date:


 


Section 4.01.         General.


 


(a)            Authorization
to File Financing Statements; Ratification. Each Grantor hereby (i) authorizes the Agent to file (A) all financing
statements and amendments thereto with respect to the Collateral naming such Grantor as debtor and the Agent as secured party,
in form appropriate for filing under the UCC of the relevant jurisdiction and (B) filings with the United States Patent and
Trademark Office and the United States Copyright Office (including any Intellectual Property Security Agreement executed by the
relevant Grantor) for the purpose of perfecting, enforcing, maintaining or protecting the Lien of the Agent in United States issued,
registered and applied for Patents, Trademarks and Copyrights and exclusive Copyright Licenses contained in the Collateral and
naming such Grantor as debtor and the Agent as secured party and, (ii) subject to the terms of the Loan Documents (including
the limitations set forth in Section 5.12 of the Credit Agreement) agrees to take such other actions, in each case
described under clauses (i) and (ii) above, as may from time to time be necessary and reasonably requested
by the Agent (and authorizes the Agent to take any such other actions, consistent with and limited to the Perfection Requirements,
which it has no obligation to take) in order to establish and maintain a First Priority, valid, enforceable (subject to the Legal
Reservations) and perfected security interest in and subject, in the case of Pledged Collateral, to Section 4.02 hereof,
Control of, the Collateral. Each Grantor shall pay any applicable filing fees, recordation fees and related reasonable expenses
relating to its Collateral in accordance with Section 9.03(a) of the Credit Agreement. Any financing statement
filed by the Agent may be filed in any filing office in any applicable UCC jurisdiction and may (i) indicate the Collateral
(A) as all assets of the applicable Grantor or words of similar effect, regardless of whether any particular asset comprised
in the Collateral falls within the scope of Article 9 of the UCC of such jurisdiction, or (B) by any other description
which reasonably approximates the description contained in this Security Agreement and (ii) contain any other information
required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment.
Each Grantor agrees to furnish any such information to the Agent promptly upon request.


 






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(b)           Further
Assurances. Each Grantor agrees, at its own expense, to take any and all actions reasonably necessary to defend title to the
Collateral against all Persons (other than Persons holding Permitted Liens on such Collateral that have priority over the Agent’s
Lien) and to defend the security interest of the Agent in the Collateral and the priority thereof against any Lien that is not
a Permitted Lien. Notwithstanding the foregoing, Grantor may, as part of its ordinary course of business substantially consistent
with past practice, grant licenses to third parties to use Intellectual Property Collateral owned, licensed or developed by a Grantor;
for the purposes of this Security Agreement such licensing activity shall not constitute a Lien on such Intellectual Property Collateral.


 


Section 4.02.         Pledged
Collateral.


 


(a)            Delivery
of Certificated Securities, Tangible Chattel Paper, Instruments and Documents. Each Grantor will, after the Closing Date,
hold in trust for the Agent upon receipt and (x) if the event giving rise to the obligation under this Section 4.02(a) occurs
during the first three Fiscal Quarters of any Fiscal Year, on or before the date on which financial statements are required to
be delivered pursuant to Section 5.01(a) of the Credit Agreement for the Fiscal Quarter in which the relevant event occurred
or (y) if the event giving rise to the obligation under this Section 4.02(a) occurs during the fourth Fiscal
Quarter of any Fiscal Year, on or before the date that is 60 days after the end of such Fiscal Quarter (or, in each of the cases
of clauses (x) and (y), such longer period as the Agent may reasonably agree) deliver to the Agent for the benefit of the
Secured Parties any (1) certificated Securities representing or evidencing Pledged Collateral and (2) Tangible Chattel
Paper and Instruments (A) in each case under this clause (2), having an outstanding balance in excess of $5,000,000
and (B) in each case under clauses (1) and (2), constituting Collateral received after the date hereof,
accompanied by undated instruments of transfer or assignment duly executed in blank.


 


(b)           Uncertificated
Securities and Pledged Collateral. With respect to any partnership interest or limited liability company interest owned by
any Grantor which is required to be pledged to the Agent pursuant to the terms hereof (other than a partnership interest or limited
liability company interest held by a Clearing Corporation, Securities Intermediary or other financial intermediary of any kind)
which is not represented by a certificate and which is not a Security for purposes of the UCC, such Grantor shall not permit any
issuer of such partnership interest or limited liability company interest to (i) enter into any agreement with any Person,
other than the Agent or any holder of a Permitted Lien to the extent such Permitted Lien has priority over the Agent’s Lien,
whereby such issuer effectively delivers “control” of such partnership interest or limited liability company interest
(as applicable) under the UCC to such Person, or (ii) allow such partnership interest or limited liability company
interest (as applicable) to become a Security unless such Grantor complies with the procedures set forth in Section 4.02(a) within
the time period prescribed therein. Each Grantor which is an issuer of any uncertificated Pledged Collateral described in this
Section 4.02(b) hereby agrees to comply with all instructions from the Agent without such Grantor’s further
consent, in each case subject to the notice requirements set forth in Section 5.01(a)(iv) hereof.


 






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(c)           Registration
in Nominee Name; Denominations. The Agent, on behalf of the Secured Parties, shall hold certificated Pledged Collateral required
to be delivered to the Agent under clause (a) above in the name of the applicable Grantor, endorsed or assigned in
blank or in favor of the Agent, but at any time when an Event of Default exists and is continuing and upon at least one Business
Day’s prior written notice to the Parent Borrower, the Agent shall have the right (in its sole and absolute discretion) to
hold the Pledged Collateral in its own name as pledgee, or in the name of its nominee (as pledgee or as sub-agent). At any time
when an Event of Default exists, the Agent shall have the right to exchange the certificates representing Pledged Collateral for
certificates of smaller or larger denominations for any purpose consistent with this Security Agreement.


  


(d)           Exercise
of Rights in Pledged Collateral. It is agreed that:


 


(i)            without
in any way limiting the foregoing and subject to clause (ii) below, each Grantor shall have the right to exercise all
voting rights or other rights relating to the Pledged Collateral for any purpose that does not violate this Security Agreement,
the Credit Agreement or any other Loan Document;


 


(ii)           each
Grantor will permit the Agent or its nominee at any time when an Event of Default exists and is continuing to exercise the rights
and remedies provided under Section 5.01(a)(iv) (subject to the notice requirements set forth therein and applicable
Requirements of Law); and


 


(iii)          subject
to Section 5.01(a)(iv), each Grantor shall be entitled to receive and retain any and all dividends, interest, principal
and other distributions paid on or distributed in respect of the Pledged Collateral; provided that any non-cash dividends
or other distributions that would constitute Pledged Collateral, whether resulting from a subdivision, combination or reclassification
of the outstanding Capital Stock of the issuer of any Pledged Collateral or received in exchange for Pledged Collateral or any
part thereof, or in redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to
which such issuer may be a party or otherwise, shall, to the extent constituting Collateral, be and become part of the Pledged
Collateral, and, if received by any Grantor, shall be delivered to the Agent as and to the extent required by clause (a) above.


 


(e)           Return
of Pledged Collateral. So long as no Event of Default then exists, the Agent shall promptly deliver to the applicable Grantor
(without recourse and without any representation or warranty) any Pledged Collateral in its possession if requested to be delivered
to the issuer or holder thereof in connection with any action or transaction that is permitted or not restricted by the Credit
Agreement in accordance with Article 8 and Section 9.18 of the Credit Agreement.


 


Section 4.03.         Intellectual
Property. (a) At any time when an Event of Default exists and is continuing and upon the written request of the Agent,
each Grantor will (i) use its commercially reasonable efforts to obtain all consents and approvals necessary or appropriate
for the assignment to or for the benefit of the Agent of any License held by such Grantor in the US to enable the Agent to enforce
the security interests granted hereunder and (ii) to the extent required pursuant to any material License in the US under
which such Grantor is the licensee, deliver to the licensor thereunder any notice of the grant of security interest hereunder or
such other notices required to be delivered thereunder in order to permit the security interest created or permitted to be created
hereunder pursuant to the terms of such License.


 


(b)           Each
Grantor shall notify the Agent promptly if it knows or reasonably expects that any application for or registration of any Patent,
Trademark, Domain Name, or Copyright (now or hereafter existing) may become abandoned or dedicated to the public, or of any determination
or development (including the institution of, or any such determination or development in, any proceeding in the United States
Patent and Trademark Office, the United States Copyright Office or any court, except for routine office actions issued in the normal
course of prosecution) abandoning such Grantor’s ownership of any such Patent, Trademark or Copyright, its right to register
the same, or to keep and maintain the same, except, in each case, to the extent the same is permitted or not restricted by the
Credit Agreement or where the same, individually or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.


 






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(c)           In
the event that any Grantor files an application for the registration of any Patent, Trademark (for the avoidance of doubt, excluding
any “intent to use” trademark applications) or Copyright with the United States Patent and Trademark Office or the
United States Copyright Office, acquires any such application or registration by purchase or assignment or acquires an exclusive
Copyright License, in each case, after the Closing Date (and other than as a result of an application that is then subject to an
Intellectual Property Security Agreement becoming registered), it shall (x) if the event giving rise to the obligation under
this Section 4.03(c) occurs during the first three Fiscal Quarters of any Fiscal Year, on or before the date on
which financial statements are required to be delivered pursuant to Section 5.01(a) of the Credit Agreement for the Fiscal
Quarter in which the relevant event occurred or (y) if the event giving rise to the obligation under this Section 4.03(c) occurs
during the fourth Fiscal Quarter of any Fiscal Year, on or before the date that is 60 days after the end of such Fiscal Quarter
(or, in each of the cases of clauses (x) and (y), such longer period as the Agent may reasonably agree) notify the Agent and,
promptly upon the Agent’s request, execute and deliver to the Agent, at such Grantor’s sole cost and expense, any Intellectual
Property Security Agreement, as applicable, or other instrument as the Agent may reasonably request and require to evidence the
Agent’s security interest in such applied for or registered Patent, Trademark or Copyright (or application therefor) or exclusive
Copyright License, and the General Intangibles of such Grantor relating thereto or represented thereby.


 


(d)           Each
Grantor shall take all actions necessary or reasonably requested by the Agent to (i) maintain and pursue each application
and to obtain and maintain the registration of each Patent, Trademark, Domain Name and Copyright included in the Collateral (now
or hereafter existing), including by filing applications for renewal, affidavits of use, affidavits of incontestability and, if
consistent with good business judgment, by initiating opposition and interference and cancellation proceedings against third parties,
(ii) maintain and protect the secrecy or confidentiality of its Trade Secrets and (iii) otherwise protect and preserve
such Grantor’s rights in, and the validity or enforceability of, its Intellectual Property Collateral, in each case except
where failure to do so (A) could not reasonably be expected to result in a Material Adverse Effect, or (B) is otherwise
permitted under the Credit Agreement.


 


(e)           Each
Grantor shall promptly notify the Agent of any material infringement or misappropriation of such Grantor’s Patents, Trademarks,
Copyrights or Trade Secrets of which it becomes aware and shall take such actions as are commercially reasonable and appropriate
under the circumstances to protect such Patent, Trademark, Copyright or Trade Secret, except where such infringement, misappropriation
or dilution could not reasonably be expected to cause a Material Adverse Effect.


 


Section 4.04.         Commercial
Tort Claims. After the Closing Date, (x) if the event giving rise to the obligation under this Section 4.04
occurs during the first three Fiscal Quarters of any Fiscal Year, on or before the date on which financial statements are required
to be delivered pursuant to Section 5.01(a) of the Credit Agreement for the Fiscal Quarter in which the relevant event
occurred or (y) if the event giving rise to the obligation under this Section 4.04 occurs during the fourth Fiscal
Quarter of any Fiscal Year, on or before the date that is 60 days after the end of such Fiscal Quarter (or, in each of the cases
of clauses (x) and (y), such longer period as the Agent may reasonably agree) each relevant Grantor shall notify the Agent
of any Commercial Tort Claim with an individual value (as reasonably estimated by the Borrower) in excess of $5,000,000 acquired
by it, together with an update to Schedule 6 to the Cumulative Perfection Certificate containing a summary description thereof,
and such Commercial Tort Claim (and the Proceeds thereof) shall constitute Collateral, all upon the terms of this Security Agreement.


 






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Section 4.05.          Insurance.
Except to the extent otherwise permitted to be retained by any Grantor or applied by any Grantor pursuant to the terms of the Loan
Documents, the Agent shall, at the time when an Event of Default exists and is continuing and any proceeds of any insurance are
distributed to the Secured Parties, apply such proceeds in accordance with Section 5.04 hereof.


 


Section 4.06.         Grantors
Remain Liable. (a) Each Grantor (rather than the Agent or any Secured Party) shall remain liable (as between itself and
any relevant counterparty) to observe and perform all the conditions and obligations to be observed and performed by it under any
Contract relating to the Collateral, all in accordance with the terms and conditions thereof. Neither the Agent nor any other Secured
Party shall have any obligation or liability under any Contract by reason of or arising out of this Security Agreement or the receipt
by the Agent or any other Secured Party of any payment relating to such Contract pursuant hereto, nor shall the Agent or any other
Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Contract, to
make any payment, to make any inquiry as to the nature or sufficiency of any performance or to collect the payment of any amounts
which may have been assigned to them or to which they may be entitled at any time or times.


 


(b)           Each
Grantor assumes all liability and responsibility in connection with the Collateral acquired by it, and the liability of such Grantor
to pay the Secured Obligations shall in no way be affected or diminished by reason of the fact that such Collateral may be lost,
destroyed, stolen, damaged or for any reason whatsoever unavailable to such Grantor.


 


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


 


ARTICLE 5

Remedies


 


Section 5.01.         Remedies.
(a) Each Grantor agrees that, at any time when an Event of Default exists and is continuing and upon at least three Business
Days’ prior written notice to the Parent Borrower, the Agent may exercise any or all of the following rights and remedies
(in addition to the rights and remedies existing under applicable Requirements of Law):


 


(i)            the
rights and remedies provided in this Security Agreement, the Credit Agreement, or any other Loan Document; provided that
this Section 5.01(a) shall not limit any rights available to the Agent prior to an Event of Default;


 






    	 	10	 



     


    

 


(ii)          the
rights and remedies available to a secured party under the UCC or under any other applicable Requirements of Law (including, without
limitation, any law governing the exercise of a bank’s right of setoff or bankers’ Lien) when a debtor is in default
under a security agreement;


 


(iii)         enter
the premises of any Grantor where any Collateral is located (through self-help and without judicial process) to collect, receive,
assemble, process, appropriate, sell, lease, assign, grant an option or options to purchase or otherwise dispose of, deliver, or
realize upon, the Collateral or any part thereof in one or more parcels at one or more public or private sales (which sales may
be adjourned or continued from time to time with or without notice and may take place at such Grantor’s premises or elsewhere),
for cash, on credit or for future delivery without assumption of any credit risk, and upon such other terms as the Agent may deem
commercially reasonable;


 


(iv)         transfer
and register in its name or in the name of its nominee the whole or any part of the Pledged Collateral, to exercise the voting
and all other rights as a holder with respect thereto (whereupon the voting and other rights of such Grantor described in Section 4.02(d)(i) above
shall immediately cease such that the Agent shall have the sole right to exercise such voting and other rights while the relevant
Event of Default exists and is continuing), to collect and receive all cash dividends, interest, principal and other distributions
made thereon (it being understood that all Stock Rights received by any Grantor while the relevant Event of Default exists and
is continuing shall be received in trust for the benefit of the Agent and forthwith paid over to the Agent in the same form as
so received (with any necessary endorsements)) and to otherwise act with respect to the Pledged Collateral as though the Agent
was the outright owner thereof; and


 


(v)          take
possession of the Collateral or any part thereof, by directing such Grantor in writing to deliver the same to the Agent at any
reasonable place or places designated by the Agent, in which event such Grantor shall at its own expense:


 


(1)            forthwith
cause the same to be moved to the place or places so designated by the Agent and there delivered to the Agent;


 


(2)            store
and keep any Collateral so delivered to the Agent at such place or places pending further action by the Agent; and


 


(3)            while
the Collateral shall be so stored and kept, provide such security and maintenance services as shall be reasonably necessary to
protect the same and to preserve and maintain it in good condition.


 


(b)           Each
Grantor acknowledges and agrees that compliance by the Agent, on behalf of the Secured Parties, with any applicable state or federal
Requirements of Law in connection with a disposition of the Collateral will not be considered to adversely affect the commercial
reasonableness of any sale of the Collateral.


 


(c)           The
Agent shall have the right in any public sale and, to the extent permitted by applicable Requirements of Law, in any private sale,
to purchase for the benefit of the Agent and the Secured Parties, all or any part of the Collateral so sold, free of any right
of equity redemption, which equity redemption each Grantor hereby expressly releases.


 


(d)           Until
the Agent is able to effect a sale, lease, transfer or other disposition of any Collateral under this Section 5.01,
the Agent shall have the right to hold or use such Collateral, or any part thereof, to the extent that it deems appropriate for
the purpose of preserving such Collateral or the value of such Collateral, or for any other purpose deemed reasonably appropriate
by the Agent. At any time when an Event of Default exists and is continuing, the Agent may, if it so elects, seek the appointment
of a receiver or keeper to take possession of any Collateral and to enforce any of the Agent’s remedies (for the benefit
of the Agent and Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment.


 






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(e)           Notwithstanding
the foregoing, the Agent shall not be required to (i) make any demand upon, or pursue or exhaust any of their rights or remedies
against, the Grantors, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Secured Obligations
or to pursue or exhaust any of their rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee
thereof, (ii) marshal the Collateral or any guarantee of the Secured Obligations or to resort to the Collateral or any such
guarantee in any particular order, or (iii) effect a public sale of any Collateral.


 


(f)            Each
Grantor recognizes that the Agent may be unable to effect a public sale of any or all the Pledged Collateral and may be compelled
to resort to one or more private sales thereof. Each Grantor also acknowledges that any private sale may result in prices and other
terms less favorable to the seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that no
such private sale shall be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale being private.
The Agent shall be under no obligation to delay a sale of any of the Pledged Collateral for the period of time necessary to permit
any Grantor or the issuer of any Pledged Collateral to register such securities for public sale under the Securities Act of 1933,
as amended, or under applicable state securities Requirements of Law, even if any Grantor and the issuer would agree to do so.


 


(g)           Notwithstanding
the foregoing, any rights and remedies provided in this Section 5.01 shall be subject to any Acceptable Intercreditor
Agreement.


 


Section 5.02.         Grantors’
Obligations Upon Default. Upon the request of the Agent at any time when an Event of Default exists and is continuing, each
Grantor will:


 


(a)           at
its own cost and expense (i) assemble and make available to the Agent, the Collateral and all books and records relating thereto
at any place or places reasonably specified by the Agent, whether at such Grantor’s premises or elsewhere, (ii) deliver
all tangible evidence of its Accounts and Contract Rights (including, without limitation, all documents evidencing the Accounts
and all Contracts) and such books and records to the Agent or to its representatives (copies of which evidence and books and records
may be retained by such Grantor) and (iii) if the Agent so directs, legend in a form and manner reasonably satisfactory to
the Agent, the Accounts and the Contracts, as well as books, records and documents (if any) of such Grantor evidencing or pertaining
to such Accounts and Contracts with an appropriate reference to the fact that such Accounts and Contracts have been assigned to
the Agent and that the Agent has a security interest therein; and


 


(b)           permit
the Agent and/or its representatives and/or agents, to enter, occupy and use any premises where all or any part of the Collateral,
or the books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral or the
books and records relating thereto, or both, to remove all or any part of the Collateral or the books and records relating thereto,
or both, and to conduct sales of the Collateral, without any obligation to pay any Grantor for such use and occupancy.


 






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Section 5.03.         Intellectual
Property Remedies. (a)  For the purpose of enabling the Agent to exercise the rights and remedies under this Article 5
at any time when an Event of Default exists and is continuing and at such time as the Agent shall be lawfully entitled to exercise
such rights and remedies, each Grantor hereby grants to the Agent a power of attorney to sign any document which may be required
by the United States Patent and Trademark Office, the United States Copyright Office, domain name registrar or similar registrar
in order to effect an absolute assignment of all right, title and interest in each registered Patent, Trademark, Domain Name and
Copyright and exclusive Copyright License included in the Collateral and each application for any such registration, and record
the same. At any time when an Event of Default exists and is continuing, the Agent may (i) declare the entire right, title
and interest of such Grantor in and to each item of Intellectual Property Collateral to be vested in the Agent for the benefit
of the Secured Parties, in which event such right, title and interest shall immediately vest in the Agent for the benefit of the
Secured Parties, and the Agent shall be entitled to exercise the power of attorney referred to in this Section 5.03
to execute, cause to be acknowledged and notarized and record such absolute assignment with the applicable agency or registrar;
(ii) sell any Grantor’s Inventory directly to any Person, including without limitation Persons who have previously purchased
any Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Agent’s
rights under this Security Agreement and subject to any restrictions contained in applicable third party licenses entered into
by such Grantor, sell Inventory which bears any Trademark owned by or licensed to any Grantor and any Inventory that is covered
by any Intellectual Property Collateral owned by or licensed to any Grantor, and the Agent may finish any work in process and affix
any relevant Trademark owned by or licensed to such Grantor and sell such Inventory as provided herein; (iii) direct such
Grantor to refrain, in which event such Grantor shall refrain, from using any Intellectual Property Collateral in any manner whatsoever,
directly or indirectly; and (iv) assign or sell any Patent, Trademark, Copyright, Domain Name, and/or Trade Secret included
in the Collateral, as well as the goodwill of such Grantor’s business symbolized by any such Trademark and the right to carry
on the business and use the assets of such Grantor in connection with which any such Trademark or Domain Name has been used.


  


(b)           Each
Grantor hereby grants to the Agent an irrevocable (until the Termination Date), nonexclusive, royalty-free, worldwide license to
its right to use, license or sublicense any Intellectual Property Collateral now owned or hereafter acquired by such Grantor, wherever
the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or
stored and (to the extent not prohibited by any applicable license and subject to any Grantor’s security policies and obligations
of confidentiality) to all computer software and programs used for compilation or printout thereof; provided, however, that
nothing in this Section 5.03(b) shall require a Grantor to grant any license that (i) is prohibited by any
rule of law, statute or regulation or (ii) is prohibited by, or constitutes a breach or default under or results in the
termination of or gives rise to any right of acceleration, modification or cancellation under, any license or similar agreement
giving rise to a right to use or theretofore granted with respect to such property, which, in the case of this clause (ii), (w) exists
on the Closing Date, (x) if such agreement was entered into by a Grantor acquired after the Closing Date, exists at the time
such Grantor is acquired and which agreement was not entered into in contemplation of such acquisition or (y) if such agreement
was entered into by any Grantor after the Closing Date, is entered into as part of the Grantor’s ordinary course of business
substantially consistent with past practice, and natural evolutions thereof; provided, further, that such licenses to be
granted hereunder with respect to Trademarks shall be subject to the maintenance of quality standards with respect to the goods
and services on which such Trademarks are used sufficient to preserve the validity of such Trademarks. The use of the license granted
to the Agent pursuant to the preceding sentence may be exercised, at the option of the Agent, only when an Event of Default exists
and is continuing; provided that any license, sublicense or other transaction entered into by the Agent in accordance with
this clause (b) shall be binding upon each Grantor notwithstanding any subsequent cure of the relevant Event of Default.


 


Section 5.04.          Application
of Proceeds. (a) Subject to any Acceptable Intercreditor Agreement, the Agent shall apply the proceeds of any collection,
sale, foreclosure or other realization of any Collateral, as well as any Collateral consisting of Cash, as set forth in Section 2.18(b) of
the Credit Agreement.


 



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(b)           Except
as otherwise provided herein or in any other Loan Document, the Agent shall have absolute discretion as to the time of application
of any such proceeds, money or balance in accordance with this Security Agreement. Upon any sale of Collateral by the Agent (including
pursuant to a power of sale granted by statute or under a judicial proceeding), a receipt by the Agent or of the officer making
the sale of such proceeds, moneys or balances shall be a sufficient discharge to the purchaser or purchasers of the Collateral
so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid
over to the Agent or such officer or be answerable in any way for the misapplication thereof. It is understood that the Grantors
shall remain jointly and severally liable to the extent of any deficiency between the amount of the proceeds of the Collateral
and the aggregate amount of the Secured Obligations.


 


ARTICLE 6

Account Verification; Attorney in Fact; Proxy


 


Section 6.01.          Account
Verification. The Agent may at any time and from time to time when an Event of Default exists and is continuing and upon at
least one Business Day’s prior written notice to the Parent Borrower, in the Agent’s own name, in the name of a nominee
of the Agent, or in the name of any Grantor, communicate (by mail, telephone, facsimile or otherwise) with the Account Debtors
of such Grantor, parties to Contracts with such Grantor and obligors in respect of Instruments of such Grantor to verify with such
Persons, to the Agent’s reasonable satisfaction, the existence, amount, terms of, and any other matter relating to, Accounts,
Contracts, Instruments, Chattel Paper, payment intangibles and/or other Receivables that constitute Collateral.


 


Section 6.02.          Authorization
for the Agent to Take Certain Action. (a) Each Grantor hereby irrevocably authorizes the Agent and appoints the Agent
(and all officers, employees or agents designated by the Agent) as its true and lawful attorney in fact (i) at any time and
from time to time in its sole discretion (A) to execute (to the extent necessary under the Requirements of Law of the applicable
jurisdiction) on behalf of such Grantor as debtor and to file financing statements necessary or desirable in the Agent’s
reasonable discretion to perfect and to maintain the perfection and priority of the Agent’s security interest in the Collateral
and (B) with the consent of the Borrowers (other than when an Event of Default exists and is continuing and upon at least
one Business Day’s prior written notice to the Parent Borrower), to contact and enter into one or more agreements with the
issuers of uncertificated securities that constitute Pledged Collateral or with securities intermediaries holding Pledged Collateral
as may be necessary or advisable to give the Agent Control over such Pledged Collateral in accordance with the terms hereof; (ii) at
any time when an Event of Default exists and is continuing in the sole discretion of the Agent (in the name of such Grantor or
otherwise) and upon at least one Business Day’s prior written notice to the Parent Borrower (A) to endorse and collect
any cash proceeds of the Collateral and to apply the proceeds of any Collateral received by the Agent to the Secured Obligations
as provided herein or in the Credit Agreement or any other Loan Document, subject to the terms of any Acceptable Intercreditor
Agreement, (B) to demand payment or enforce payment of any Receivable constituting Collateral in the name of the Agent or
such Grantor and to endorse any check, draft and/or any other instrument for the payment of money relating to any such Receivable,
(C) to sign such Grantor’s name on any invoice or bill of lading relating to any Receivable constituting Collateral,
any draft against any Account Debtor of such Grantor, and/or any assignment and/or verification of any such Receivable, (D) to
exercise all of any Grantor’s rights and remedies with respect to the collection of any Receivable constituting Collateral
and any other Collateral, (E) to settle, adjust, compromise, extend or renew any Receivable constituting Collateral, (F) to
settle, adjust or compromise any legal proceedings brought to collect any Receivable constituting Collateral, (G) to prepare,
file and sign such Grantor’s name on a proof of claim in bankruptcy or similar document against any Account Debtor of such
Grantor, (H) to prepare, file and sign such Grantor’s name on any notice of Lien, assignment or satisfaction of Lien
or similar document in connection with any Receivable constituting Collateral, (I) to discharge past due taxes, assessments,
charges, fees or Liens on the Collateral (except for Permitted Liens), (J) to make, settle and adjust claims in respect of
Collateral under policies of insurance and endorse the name of such Grantor on any check, draft, instrument or other item of payment
for the proceeds of such policies of insurance, (K) to make all reasonable determinations and decisions with respect thereto
and (L) to obtain or maintain the policies of insurance of the types referred to in Section 5.05 of the Credit
Agreement or to pay any premium in whole or in part relating thereto; and (iii) to do all other acts and things or institute
any proceedings which the Agent may reasonably deem to be necessary or advisable (pursuant to this Security Agreement and the other
Loan Documents and in accordance with applicable law) to carry out the terms of this Security Agreement and to protect the interests
of the Secured Parties; and, when and to the extent required pursuant to Section 9.03(a) of the Credit Agreement,
such Grantor agrees to reimburse the Agent for any payment made in connection with this paragraph or any expense (including attorneys’
fees, court costs and expenses) and other changes related thereto incurred by the Agent in connection with any of the foregoing
(it being understood that any such sums shall constitute additional Secured Obligations); provided that, this authorization
shall not relieve such Grantor of any of its obligations under this Security Agreement or under the Credit Agreement.


 






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(b)           All
acts of such attorney or designee are hereby ratified and approved by each Grantor. The powers conferred on the Agent, for the
benefit of the Agent and Secured Parties, under this Section 6.02 are solely to protect the Agent’s interests
in the Collateral and shall not impose any duty upon the Agent or any Secured Party to exercise any such powers.


 


Section 6.03.         PROXY.
EACH GRANTOR HEREBY IRREVOCABLY (UNTIL THE TERMINATION DATE) CONSTITUTES AND APPOINTS THE AGENT AS ITS PROXY AND ATTORNEY-IN-FACT
(SUBJECT TO AND AS SET FORTH IN SECTION 6.02 ABOVE) WITH RESPECT TO THE PLEDGED COLLATERAL, INCLUDING THE RIGHT
TO VOTE SUCH PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL,
THE APPOINTMENT OF THE AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES
AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF
SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY
AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER
THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), IN EACH CASE ONLY
WHEN AN EVENT OF DEFAULT EXISTS AND IS CONTINUING AND UPON AT LEAST ONE BUSINESS DAY’S PRIOR WRITTEN NOTICE TO THE PARENT
BORROWER.


 


Section 6.04.         NATURE
OF APPOINTMENT; LIMITATION OF DUTY. THE APPOINTMENT OF THE AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE 6
IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE TERMINATION DATE. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER
THE AGENT, NOR ANY SECURED PARTY, NOR ANY OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES
SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE
FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT TO THE EXTENT SUCH DAMAGES ARE ATTRIBUTABLE TO THE GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT OF SUCH PERSON AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION IN A FINAL AND NON-APPEALABLE DECISION
SUBJECT TO SECTION 7.20 HEREOF; PROVIDED, THAT THE FOREGOING EXCEPTION SHALL NOT BE CONSTRUED TO OBLIGATE THE
AGENT TO TAKE OR REFRAIN FROM TAKING ANY ACTION WITH RESPECT TO THE COLLATERAL.


 






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ARTICLE 7

General Provisions


 


Section 7.01.         Waivers.
To the maximum extent permitted by applicable Requirements of Law, each Grantor hereby waives notice of the time and place of any
judicial hearing in connection with the Agent’s taking possession of the Collateral or of any public sale or the time after
which any private sale or other disposition of all or any part of the Collateral may be made, including without limitation, any
and all prior notice and hearing for any prejudgment remedy or remedies. To the extent such notice may not be waived under applicable
Requirements of Law, any notice made shall be deemed reasonable if sent to any Grantor, addressed as set forth in Article 8,
at least 10 days prior to (a) the date of any such public sale or (b) the time after which any such private disposition
may be made. To the maximum extent permitted by applicable Requirements of Law, each Grantor waives all claims, damages, and demands
against the Agent arising out of the repossession, retention or sale of the Collateral, except those arising out of the gross negligence
or willful misconduct of the Agent as determined by a court of competent jurisdiction in a final and non-appealable judgment. To
the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of,
and covenants not to assert against the Agent, any valuation, stay (other than an automatic stay under any applicable Debtor Relief
Law), appraisal, extension, moratorium, redemption or similar law and any and all rights or defenses it may have as a surety now
or hereafter existing which, but for this provision, might be applicable to the sale of any Collateral made under the judgment,
order or decree of any court, or privately under the power of sale conferred by this Security Agreement, or otherwise. Except as
otherwise specifically provided herein, each Grantor hereby waives presentment, demand, protest, any notice (to the maximum extent
permitted by applicable Requirements of Law) of any kind or all other requirements as to the time, place and terms of sale in connection
with this Security Agreement or any Collateral.


 


Section 7.02.         Limitation
on Agent’s Duty with Respect to the Collateral. The Agent shall not have any obligation to clean or otherwise prepare
the Collateral for sale. The Agent shall use reasonable care with respect to the Collateral in its possession; provided
that the Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession
if such Collateral is accorded treatment substantially equal to which it accords its own property. The Agent shall not have any
other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Agent,
or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. To the
extent that applicable Requirements of Law impose duties on the Agent to exercise remedies in a commercially reasonable manner,
each Grantor acknowledges and agrees that it would be commercially reasonable for the Agent (a) to elect not to incur expenses
to prepare Collateral for disposition or otherwise to transform raw material or work in process into finished goods or other finished
products for disposition, (b) to elect not to obtain third party consents for access to Collateral to be disposed of, or to
obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection or disposition
of Collateral to be collected or disposed of, (c) to elect not to exercise collection remedies against Account Debtors or
other Persons obligated on Collateral or to remove Liens on or any adverse claims against Collateral, (d) to exercise collection
remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies and
other collection specialists, (e) to advertise dispositions of Collateral through publications or media of general circulation,
whether or not the Collateral is of a specialized nature, (f) to contact other Persons, whether or not in the same business
as any Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (g) to hire one or more professional
auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (h) to dispose
of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that
have the reasonable capacity of doing so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale
rather than retail markets, (j) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (k) to
purchase insurance or credit enhancements to insure the Agent against risks of loss in connection with any collection or disposition
of Collateral or to provide to the Agent a guaranteed return from the collection or disposition of Collateral or (l) to the
extent deemed appropriate by the Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals
to assist the Agent in the collection or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this
Section 7.02 is to provide non-exhaustive indications of what actions or omissions by the Agent would be commercially
reasonable in the Agent’s exercise of remedies with respect to the Collateral and that other actions or omissions by the
Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 7.02.
Without limitation upon the foregoing, nothing contained in this Section 7.02 shall be construed to grant any rights
to any Grantor or to impose any duties on the Agent that would not have been granted or imposed by this Security Agreement or by
applicable law in the absence of this Section 7.02.


 






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Section 7.03.         Compromises
and Collection of Collateral. Each Grantor and the Agent recognize that setoffs, counterclaims, defenses and other claims may
be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become uncollectible
in whole or in part and that the expense and probability of success in litigating a disputed Receivable may exceed the amount that
reasonably may be expected to be recovered with respect to any Receivable. In view of the foregoing, each Grantor agrees that the
Agent may at any time and from time to time, if an Event of Default exists and is continuing, compromise with the obligor on any
Receivable, accept in full payment of any Receivable such amount as the Agent in its sole discretion shall determine or abandon
any Receivable, and any such action by the Agent shall be commercially reasonable so long as the Agent acts in good faith based
on information known to it at the time it takes any such action.


 


Section 7.04.         Agent
Performance of Debtor Obligations. Without having any obligation to do so, the Agent may, at any time when an Event of Default
exists and is continuing and upon prior written notice to the Borrower, perform or pay any obligation which any Grantor has agreed
to perform or pay under this Security Agreement and which obligation is due and unpaid and not being contested by such Grantor
in good faith, and such Grantor shall reimburse the Agent for any amounts paid by the Agent pursuant to this Section 7.04
as a Secured Obligation payable in accordance with Section 9.03(a) of the Credit Agreement.


 


Section 7.05.         No
Waiver; Amendments; Cumulative Remedies. No delay or omission of the Agent (subject to the provisions of Article 8
and Section 9.18 of the Credit Agreement) to exercise any right or remedy granted under this Security Agreement shall
impair such right or remedy or be construed to be a waiver of any Default or an acquiescence therein, and no single or partial
exercise of any such right or remedy shall preclude any other or further exercise thereof or the exercise of any other right or
remedy. No waiver, amendment or other variation of the terms, conditions or provisions of this Security Agreement whatsoever shall
be valid unless in writing signed by the Grantors and the Agent with the concurrence or at the direction of the Lenders to the
extent required under Section 9.02 of the Credit Agreement and then only to the extent in such writing specifically
set forth. All rights and remedies contained in this Security Agreement or afforded by law shall be cumulative and all shall be
available to the Agent until the Termination Date.


 


Section 7.06.         Limitation
by Law; Severability of Provisions. All rights, remedies and powers provided in this Security Agreement may be exercised only
to the extent that the exercise thereof does not violate any applicable Requirements of Law, and all of the provisions of this
Security Agreement are intended to be subject to all applicable mandatory Requirements of Law that may be controlling and to be
limited to the extent necessary so that such provisions do not render this Security Agreement invalid, unenforceable or not entitled
to be recorded or registered, in whole or in part. To the extent permitted by applicable Requirements of Law, any provision of
this Security Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of
the remaining provisions of this Security Agreement; and the invalidity of a particular provision in a particular jurisdiction
shall not invalidate such provision in any other jurisdiction.


 






    	 	17	 



     


    

 


Section 7.07.         Security
Interest Absolute. All rights of the Agent hereunder, the security interests granted hereunder and all obligations of each
Grantor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit
Agreement, any other Loan Document, any agreement with respect to any of the Secured Obligations or any other agreement or instrument
relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement,
any other Loan Document or any other agreement or instrument relating to the foregoing, (c) any exchange, release or nonperfection
of any Lien on any Collateral, or any release or amendment or waiver of or consent under or departure from any guaranty, securing
or guaranteeing all or any of the Secured Obligations, (d) any bankruptcy, insolvency, reorganization, arrangement, readjustment,
composition, liquidation or the like of any Grantor, (e) any exercise or non-exercise, or any waiver of, any right, remedy,
power or privilege under or in respect of this Security Agreement or any other Loan Document or (f) any other circumstance
that might otherwise constitute a defense available to, or a discharge of, any Grantor in respect of the Secured Obligations or
this Security Agreement (other than a termination of any Lien contemplated by Section 7.12 or the occurrence of the
Termination Date).


 


Section 7.08.         Benefit
of Security Agreement. The terms and provisions of this Security Agreement shall be binding upon and inure to the benefit of
each Grantor, the Agent and the Secured Parties and their respective successors and permitted assigns (including all Persons who
become bound as a debtor to this Security Agreement). No sale of participations, assignments, transfers, or other dispositions
of any agreement governing the Secured Obligations or any portion thereof or interest therein shall in any manner impair the Lien
granted to the Agent hereunder for the benefit of the Agent and the Secured Parties.


 


Section 7.09.         Survival
of Representations. All representations and warranties of each Grantor contained in this Security Agreement shall survive the
execution and delivery of this Security Agreement until the Termination Date.


 


Section 7.10.         Additional
Subsidiaries. Upon the execution and delivery by any Subsidiary of an instrument in the form of Exhibit A in accordance
with Section 5.12(a) or Section 5.12(b) of the Credit Agreement, such Subsidiary shall become
a Subsidiary Party hereunder with the same force and effect as if such Subsidiary was originally named as a Subsidiary Party herein.
The execution and delivery of any such instrument shall not require the consent of any other Grantor or any other Person. The rights
and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new Grantor
as a party to this Security Agreement.


 


Section 7.11.         Headings.
The titles of and section headings in this Security Agreement are for convenience of reference only, and shall not govern the interpretation
of any of the terms and provisions of this Security Agreement.


 


Section 7.12.         Termination
or Release. (a) This Security Agreement shall continue in effect until the Termination Date, and the Liens granted hereunder
shall automatically be released in the circumstances described in Article 8 and Section 9.18 of the Credit
Agreement.


 






    	 	18	 



     


    

 


(b)           In
connection with any termination or release pursuant to paragraph (a) above, the Agent shall promptly execute (if applicable)
and deliver to any Grantor, at such Grantor’s expense, all UCC termination statements and similar documents that such Grantor
shall reasonably request to evidence and/or effectuate such termination or release. Any execution and delivery of documents pursuant
to this Section 7.12 shall be without recourse to or representation or warranty by the Agent or any Secured Party.
The Borrowers shall reimburse the Agent for all costs and expenses, including any fees and expenses of counsel, incurred by it
in connection with any action contemplated by this Section 7.12 pursuant to and to the extent required by Section 9.03(a) of
the Credit Agreement.


  


(c)           The
Agent shall have no liability whatsoever to any other Secured Party as the result of any release of Collateral by it in accordance
with (or which the Agent in good faith believes to be in accordance with) the terms of this Section 7.12.


 


(d)           At
any time that a Grantor desires that the Agent take any action to acknowledge or give effect to any release of Collateral pursuant
to the foregoing Section 7.12(a), such Grantor shall deliver to the Agent a certificate signed by a Responsible Officer
of such Grantor (or the Borrowers on behalf of such Grantor) stating that the release of the respective Collateral is permitted
pursuant to such Section 7.12(a) and the terms of the Credit Agreement. At any time that any Grantor desires that
a Restricted Subsidiary of such Grantor be released hereunder, it shall deliver to the Agent a certificate signed by a Responsible
Officer of such Grantor (or the Borrowers on behalf of such Grantor) stating that the release of the respective Grantor (and its
Collateral) is permitted pursuant to such Section 7.12(a) and the terms of the Credit Agreement.


 


Section 7.13.         Entire
Agreement. This Security Agreement, together with the other Loan Documents and any Acceptable Intercreditor Agreement, embodies
the entire agreement and understanding between each Grantor and the Agent relating to the Collateral and supersedes all prior agreements
and understandings between any Grantor and the Agent relating to the Collateral.


 


Section 7.14.         CHOICE
OF LAW. THIS SECURITY AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SECURITY AGREEMENT,
WHETHER IN TORT, CONTRACT (AT LAW OR IN EQUITY) OR OTHERWISE, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.


 


Section 7.15.         CONSENT
TO JURISDICTION; CONSENT TO SERVICE OF PROCESS.


 


(a)           EACH
PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF ANY
US FEDERAL OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK (OR ANY APPELLATE COURT THEREFROM)
OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT AND AGREES THAT ALL CLAIMS, CONTROVERSIES
OR DISPUTES IN RESPECT OF ANY SUCH ACTION OR PROCEEDING SHALL (EXCEPT AS PERMITTED BELOW) BE HEARD AND DETERMINED IN SUCH NEW YORK
STATE OR, TO THE EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT SERVICE
OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENTS BY REGISTERED MAIL ADDRESSED TO SUCH PERSON SHALL BE EFFECTIVE SERVICE OF PROCESS
AGAINST SUCH PERSON FOR ANY SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL
JUDGMENT IN ANY SUCH ACTION OR PROCEEDING MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY APPLICABLE REQUIREMENTS OF LAW. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT IN ANY SUCH COURT. EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, ANY CLAIM OR DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION, SUIT OR PROCEEDING IN ANY SUCH COURT. EACH PARTY HERETO AGREES THAT THE AGENT AND LENDERS
RETAIN THE RIGHT TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION SOLELY IN CONNECTION WITH THE
EXERCISE OF ANY RIGHTS IN RESPECT OF THE COLLATERAL UNDER THIS SECURITY AGREEMENT.


 






    	 	19	 



     


    

 


(b)           To
the extent permitted by APPLICABLE REQUIREMENTS OF law, each party to this security Agreement hereby irrevocably waives personal
service of any and all process upon it and agrees that all such service of process may be made by registered mail (OR ANY SUBSTANTIALLY
SIMILAR FORM OF MAIL) directed to it at its address for notices as provided for in Section 9.01 of the credit
agreement. each party TO THIS SECURITY AGREEMENT hereby waives any objection to such service of process and further irrevocably
waives and agrees not to plead or claim in any action or proceeding commenced hereunder that service of process was invalid and
ineffective. Nothing in this security Agreement will affect the right of any party to this security Agreement to serve process
in any other manner permitted by APPLICABLE REQUIREMENTS OF law.


 


Section 7.16.         WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION, LEGAL PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY) DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS SECURITY AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.


 


Section 7.17.         Indemnity.
Each Grantor hereby agrees to indemnify the Indemnitees, as, and to the extent, set forth in Section 9.03 of the Credit
Agreement.


 


Section 7.18.        Counterparts.
This Security Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed
counterpart of a signature page of this Security Agreement by facsimile or by email as a “.pdf” or “.tif”
attachment or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Security
Agreement.


 


Section 7.19.         INTERCREDITOR
AGREEMENT GOVERNS. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIENS AND SECURITY INTERESTS GRANTED TO THE AGENT FOR
THE BENEFIT OF THE SECURED PARTIES PURSUANT TO THIS SECURITY AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE AGENT WITH
RESPECT TO ANY COLLATERAL HEREUNDER ARE SUBJECT TO THE PROVISIONS OF ANY ACCEPTABLE INTERCREDITOR AGREEMENT. IN THE EVENT OF ANY
CONFLICT BETWEEN THE PROVISIONS OF ANY ACCEPTABLE INTERCREDITOR AGREEMENT AND THIS SECURITY AGREEMENT, THE PROVISIONS OF ANY ACCEPTABLE
INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.


 






    	 	20	 



     


    

 


Section 7.20.         Waiver
of Consequential Damages, Etc. To the extent permitted by applicable law, none of the Grantors or Secured Parties shall assert,
and each hereby waives, any claim against each other or any Related Party thereof, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Security Agreement or any agreement or instrument contemplated hereby, except, in the case of any claim by any Indemnitee
against any of the Grantors, to the extent such damages would otherwise be subject to indemnification pursuant to the terms of
Section 7.17.


 


Section 7.21.         Mortgages.
In the case of a conflict between this Security Agreement and any Mortgage with respect to any Material Real Estate Asset that
is also subject to a valid and enforceable Lien under the terms of such Mortgage (including Fixtures), the terms of such Mortgage
shall govern.


 


Section 7.22.         Successors
and Assigns. Whenever in this Security Agreement any party hereto is referred to, such reference shall be deemed to include
the successors and permitted assigns of such party; and all covenants, promises and agreements by or on behalf of any Grantor or
the Agent in this Security Agreement shall bind and inure to the benefit of their respective successors and permitted assigns.
Except in a transaction expressly permitted under the Credit Agreement, no Grantor may assign any of its rights or obligations
hereunder without the written consent of the Agent.


 


Section 7.23.         Survival
of Agreement. Without limiting any provision of the Credit Agreement or Section 7.17 hereof, all covenants, agreements,
indemnities, representations and warranties made by the Grantors in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Security Agreement or any other Loan Document shall be considered to have been
relied upon by the Lenders and shall survive the execution and delivery of the Loan Documents and the making of any Loans, regardless
of any investigation made by any such Lender or on its behalf and notwithstanding that the Agent or any Lender may have had notice
or knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended under
the Credit Agreement, and shall continue in full force and effect until the Termination Date, or with respect to any individual
Grantor until such Grantor is otherwise released from its obligations under this Security Agreement in accordance with the terms
hereof.


 


Section 7.24.         Effectiveness
of the Acquisition. The Parent Borrower and the Co-Borrower shall have no rights or obligations hereunder until the consummation
of the Acquisition, and any representations and warranties of the Parent Borrower or the Co-Borrower hereunder shall not become
effective until such time. Upon consummation of the Acquisition, the Parent Borrower and the Co-Borrower shall succeed to all the
rights and obligations of the Initial Borrower under this Agreement and the other Loan Documents to which it is a party and all
representations and warranties of the Parent Borrower and the Co-Borrower shall become effective as of the date hereof, without
any further action by any Person.


 


ARTICLE 8

Notices


 


Section 8.01.         Sending
Notices. Any notice required or permitted to be given under this Security Agreement shall be delivered in accordance with Section 9.01
of the Credit Agreement (it being understood and agreed that references in such Section to “herein”, “hereunder”
and other similar terms shall be deemed to be references to this Security Agreement).


 






    	 	21	 



     


    

 


Section 8.02.         Change
in Address for Notices. Each of the Grantors, the Agent and the Lenders may change the address or facsimile number for service
of notice upon it by a notice in writing to the other parties.


 


ARTICLE 9

The Agent


 


Jefferies has been
appointed Agent for the Lenders hereunder pursuant to Article 8 of the Credit Agreement. It is expressly understood
and agreed by the parties to this Security Agreement that any authority conferred upon the Agent hereunder is subject to the terms
of the delegation of authority made by the Lenders to the Agent pursuant to the Credit Agreement, and that the Agent has agreed
to act (and any successor Agent shall act) as such hereunder only on the express conditions contained in such Article 8.
Any successor Agent appointed pursuant to Article 8 of the Credit Agreement shall be entitled to all the rights, interests
and benefits of the Agent hereunder.


 


By accepting the benefits
of this Security Agreement and any other Loan Document, each Secured Party expressly acknowledges and agrees that this Security
Agreement and each other Loan Document may be enforced only by the action of the Agent, and that such Secured Party shall not have
any right individually to seek to enforce or to enforce this Security Agreement or to realize upon the security to be granted hereby,
it being understood and agreed that such rights and remedies may be exercised by the Agent for the benefit of the Secured Parties
upon the terms of this Security Agreement and the other Loan Documents.


 


[Signature
Pages Follow]


 






    	 	22	 



     


    

 


 


 


IN WITNESS WHEREOF,
each Grantor and the Agent have executed this Security Agreement as of the date first above written.


 


 


	 	EQT Avatar intermediate, inc.,
	 	 	 
	 	 	 
	 	By:	/s/ Jason Howard
	 	Name:	Jason Howard
	 	Title:	President
	 	 	 
	 	By:	/s/ Robert Bradburn
	 	Name:	Robert Bradburn
	 	Title:	Vice President and Secretary
	 	 	 
	 	 	 
	 	eqt avatar holdings, inc.,
	 	 	 
	 	 	 
	 	By:	/s/ Jason Howard
	 	Name:	Jason Howard
	 	Title:	President
	 	 	 
	 	By:	/s/ Robert Bradburn
	 	Name:	Robert Bradburn
	 	Title:	Vice President and Secretary



  


Signature Page to Pledge and Security
Agreement


  



    	 	 	 



     


    




 


	 	CERTARA HOLDCO, INC.,
	 	 	 
	 	 	 
	 	By:	/s/ Andrew Schemick
	 	Name:	Andrew Schemick
	 	Title:	CFO and Treasurer
	 	 	 
	 	 	 
	 	CERTARA USA, INC.,
	 	 	 
	 	 	 
	 	By:	/s/ Andrew Schemick
	 	Name:	Andrew Schemick
	 	Title:	CFO and Treasurer
	 	 	 
	 	 	 
	 	CERTARA HOLDING, INC.,
	 	 	 
	 	 	 
	 	By: 	/s/ Andrew Schemick
	 	Name:	Andrew Schemick
	 	Title:	CFO and Treasurer
	 	 	 
	 	 	 
	 	MBDD US, LLC,
	 	 
	 	 	 
	 	By: 	/s/ Andrew Schemick
	 	Name:	Andrew Schemick
	 	Title:	CFO and Treasurer
	 	 	 
	 	 	 
	 	TRIPOS INVESTMENTS, L.L.C.,
	 	 	 
	 	 	 
	 	By:	/s/ Andrew Schemick
	 	Name:	Andrew Schemick
	 	Title:	CFO and Treasurer
	 	 	 
	 	 	 
	 	SYNCHROGENIX INFORMATION STRATEGIES, LLC,
	 	 	 
	 	 	 
	 	By:	/s/ Andrew Schemick
	 	Name:	Andrew Schemick
	 	Title:	CFO and Treasurer



 


Signature Page to Pledge and Security
Agreement


 






    	 	 	 



     


    

 


	 	CERTARA, L.P.,
	 	 
	 	 
	 	By: 	/s/ Andrew Schemick
	 	Name:	Andrew Schemick
	 	Title:	CFO and Treasurer






 


Signature Page to Pledge and Security
Agreement


 






    	 	 	 



     


    

  





	 	JEFFERIES FINANCE LLC,
	 	as the Agent
	 	 
	 	 
	 	By: 	/s/ Jason Kennedy
	 	Name:	Jason Kennedy
	 	Title:	Managing Director



 


Signature Page to Pledge and Security
Agreement


 






    	 	 	 



     


    




 


EXHIBIT A


 


[FORM OF] SECURITY AGREEMENT JOINDER


 


A.            SUPPLEMENT
NO. [●] dated as of [●] (this “Supplement”), to the Pledge and Security Agreement dated as of August 15,
2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Security
Agreement”), by and among the Borrowers and the Subsidiary Parties from time to time party thereto (the foregoing, collectively,
the “Grantors”) and Jefferies Finance LLC in its capacity as administrative agent and collateral agent for the
Secured Parties (in such capacities, the “Agent”).


 


B.            Reference
is made to the Credit Agreement dated as of August 15, 2017, (as amended, restated, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among EQT Avatar Intermediate, Inc.,
a Delaware corporation (“Holdings”), EQT Avatar Holdings, Inc., a Delaware corporation (“Buyer”
or the “Initial Borrower”), Certara Holdco, Inc., a Delaware corporation (the “Parent Borrower”),
Certara USA, Inc., a Delaware corporation (the “Co-Borrower” and, together with the Initial Borrower (prior
to the consummation of the Closing Date Assumption (as defined in the Credit Agreement referred to below)) and the Parent Borrower,
each a “Borrower” and collectively the “Borrowers”),
the lenders and issuing banks from time to time party thereto and the Agent.


 


C.            Capitalized
terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement or the
Security Agreement, as applicable.


 


D.            The
Grantors have entered into the Security Agreement in order to induce the Lenders to make Loans. Section 7.10 of the
Security Agreement and Section 5.12 of the Credit Agreement provide that additional Subsidiaries of the Borrowers may
become Subsidiary Parties under the Security Agreement by executing and delivering an instrument in the form of this Supplement.
[The] [Each] undersigned Subsidiary ([each a] [the] “New Subsidiary”) is executing
this Supplement in accordance with the requirements of the Credit Agreement to become a Subsidiary Party under the Security Agreement
in order to induce the Lenders to make additional Loans and as consideration for Loans previously made and to secure the Secured
Obligations, including [its] [their] obligations under the Loan Guaranty, each Hedge Agreement the obligations under
which constitute Secured Hedging Obligations and agreements relating to Banking Services the obligations under which constitute
Banking Services Obligations.


 


Accordingly, the Agent
and [the] [each] New Subsidiary agree as follows:


 


SECTION 1.          In
accordance with Section 7.10 of the Security Agreement, [the] [each] New Subsidiary by its signature
below becomes a Subsidiary Party and a Grantor under the Security Agreement with the same force and effect as if originally named
therein as a Subsidiary Party, and [the] [each] New Subsidiary hereby (a) agrees to all the terms and provisions
of the Security Agreement applicable to it as a Subsidiary Party and Grantor thereunder and (b) makes the representations
and warranties applicable to it as a Grantor under the Security Agreement[, subject to Schedule A hereto,] on and
as of the date hereof; it being understood and agreed that any representation or warranty that expressly relates to an earlier
date shall be deemed to refer to the date hereof. In furtherance of the foregoing, [the] [each] New Subsidiary, as
security for the payment and performance in full of the Secured Obligations, does hereby create and grant to the Agent, its successors
and permitted assigns, for the benefit of the Secured Parties, their successors and permitted assigns, a security interest in and
Lien on all of [the] [each] New Subsidiary’s right, title and interest in and to the Collateral of [the]
[each] New Subsidiary. Each reference to a “Grantor” and “Subsidiary Party” in the Security Agreement
shall be deemed to include [the] [each] New Subsidiary. The Security Agreement is hereby incorporated herein by reference.


 






    	 	A-1	 



     


    

 


SECTION 2.          [The]
[Each] New Subsidiary represents and warrants to the Agent and the other Secured Parties that this Supplement has been duly
authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance
with its terms, subject to the Legal Reservations.


 


SECTION 3.          This
Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute
an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when
the Agent shall have received a counterpart of this Supplement that bears the signature of [the] [each] New Subsidiary
and the Agent has executed a counterpart hereof. Delivery of an executed signature page to this Supplement by facsimile transmission
or by email as a “.pdf” or “.tif” attachment shall be as effective as delivery of a manually signed counterpart
of this Supplement.


 


SECTION 4.          Attached
hereto is a duly prepared, completed and executed Perfection Certificate with respect to [the] [each] New Subsidiary,
and [the] [each] New Subsidiary hereby represents and warrants that the information set forth therein is correct
and complete in all material respects as of the date hereof.


 


SECTION 5.          Except
as expressly supplemented hereby, the Security Agreement shall remain in full force and effect.


 


SECTION 6.          THIS
SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.


 


SECTION 7.          In
case any one or more of the provisions contained in this Supplement is invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and in the Security Agreement shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall
not in and of itself affect the validity of such provision in any other jurisdiction). Each of the Borrowers and the Agent shall
endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.


 


SECTION 8.          All
communications and notices hereunder shall be in writing and given as provided in Section 8.01 of the Security Agreement.


 


SECTION 9.          [The]
[Each] New Subsidiary agrees to reimburse the Agent for its expenses in connection with this Supplement, including the fees,
other charges and disbursements of counsel in accordance with Section 9.03(a) of the Credit Agreement.


 


SECTION 10.        This
Supplement shall constitute a Loan Document, under and as defined in, the Credit Agreement.


 


[Signature pages follow]


 






    	 	A-2	 



     


    

 


IN WITNESS WHEREOF,
[each] [the] New Subsidiary has duly executed this Supplement to the Security Agreement as of the day and year first
above written.


 





	 	[NAME OF NEW SUBSIDIARY]
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:



 






    	 	A-3	 



     


    

  


[SCHEDULE A

CERTAIN EXCEPTIONS]


 






    	 	A-4	 



     


    

 


EXHIBIT B1


 


[FORM OF] INTELLECTUAL PROPERTY
SECURITY AGREEMENT


 


[PATENT/TRADEMARK/COPYRIGHT]
SECURITY AGREEMENT dated as of [●] (this “Agreement”), among [●] (each a “Grantor”)
and Jefferies Finance LLC (in such capacity, the “Administrative Agent”).


 


WHEREAS, reference
is made to (a) the Credit Agreement dated as of August 15, 2017, (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among EQT Avatar Intermediate, Inc.,
a Delaware corporation (“Holdings”), EQT Avatar Holdings, Inc., a Delaware corporation (“Buyer”
or the “Initial Borrower”), Certara Holdco, Inc., a Delaware corporation (the “Parent Borrower”),
Certara USA, Inc., a Delaware corporation (the “Co-Borrower” and, together with the Initial Borrower (prior
to the consummation of the Closing Date Assumption (as defined in the Credit Agreement referred to below)) and the Parent Borrower,
each a “Borrower” and collectively the “Borrowers”),
the lenders and issuing banks from time to time party thereto and the Administrative Agent and
(b) the Pledge and Security Agreement dated as of August 15, 2017 (the “Security
Agreement”), by and among the Borrower, Holdings, the Subsidiary Parties from time to time party thereto and the Administrative
Agent;


 


WHEREAS, the Lenders
have agreed to extend credit to the Borrowers subject to the terms and conditions set forth in the Credit Agreement; and


 


WHEREAS, each Grantor
is willing to execute and deliver this Agreement in as consideration for such extensions of credit.


 


NOW, THEREFORE, for good
and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:


 


SECTION 1.          Terms.
Capitalized terms used in this Agreement and not otherwise defined herein have the meanings specified in the Security Agreement
or the Credit Agreement, as applicable.


 


SECTION 2.          Grant
of Security Interest. As security for the payment or performance, as the case may be, in full of the Secured Obligations, each
Grantor hereby grants to the Administrative Agent, its successors and assigns, for the benefit of the Secured Parties, a security
interest (the “Security Interest”) in all of such Grantor’s right, title and interest in, to and under
any [Patents/Trademarks/Copyrights and exclusive Copyright Licenses] now owned or at any time hereafter acquired by such Grantor,
including those listed on Schedule I (the “Collateral”).


 


SECTION 3.          Security
Agreement. The Security Interest granted to the Administrative Agent herein is granted in furtherance, and not in limitation,
of the security interests granted to the Administrative Agent pursuant to the Security Agreement. Each Grantor hereby acknowledges
and affirms that the rights and remedies of the Administrative Agent with respect to the Collateral are more fully set forth in
the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.
In the event of any conflict between the terms of this Agreement and the Security Agreement, the terms of the Security Agreement
shall govern.


 





 






1
Note: A separate Intellectual Property Security Agreement must be drafted for each of any Patents, Trademarks, or
Copyrights/exclusive Copyright Licenses.


 






    	 	B-1	 



     


    

 


SECTION 4.          Counterparts.
This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original but all of which when taken together shall constitute a single contract. Delivery of an executed signature
page to this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually signed
counterpart of this Agreement.


 


SECTION 5.          CHOICE
OF LAW. THIS SECURITY AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR
RELATED TO THIS SECURITY AGREEMENT, WHETHER IN TORT, CONTRACT (AT LAW OR IN EQUITY) OR OTHERWISE, SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.


 


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


 


 


	 	[●]
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:






 



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SCHEDULE I


 






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