SECOND AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT



 Exhibit 10.2.2 
  
 EXECUTION COPY 

  
 SECOND AMENDED AND RESTATED 
  
 GUARANTEE AND COLLATERAL AGREEMENT 
  
 made by 
  
 SMTC CORPORATION, 
  
 HTM HOLDINGS, INC. 
  
 and certain of their Subsidiaries

  
 in favor of 
  
 LEHMAN COMMERCIAL PAPER INC., 
  
 as General Administrative Agent 
  
 Dated as of June 1, 2004 
  

  









 TABLE OF CONTENTS 
  


					
	 	  	 	  	Page


	 SECTION 1.
	  	 DEFINED TERMS
	  	5
	 1.1
	  	 Definitions
	  	5
	 1.2
	  	 Other Definitional Provisions
	  	9
			
	 SECTION 2.
	  	 GUARANTEE
	  	10
	 2.1
	  	 Guarantee
	  	10
	 2.2
	  	 Right of Contribution
	  	10
	 2.3
	  	 No Subrogation
	  	11
	 2.4
	  	 Amendments, etc. with respect to the Borrower Obligations
	  	11
	 2.5
	  	 Guarantee Absolute and Unconditional
	  	11
	 2.6
	  	 Reinstatement
	  	12
	 2.7
	  	 Payments
	  	12
			
	 SECTION 3.
	  	 GRANT OF SECURITY INTEREST
	  	13
			
	 SECTION 4.
	  	 REPRESENTATIONS AND WARRANTIES
	  	14
	 4.1
	  	 Representations in Credit Agreement
	  	14
	 4.2
	  	 Title; No Other Liens
	  	14
	 4.3
	  	 Perfected First Priority Liens
	  	15
	 4.4
	  	 Chief Executive Office
	  	15
	 4.5
	  	 Inventory and Equipment
	  	15
	 4.6
	  	 Farm Products
	  	15
	 4.7
	  	 Investment Property
	  	15
	 4.8
	  	 Receivables
	  	16
	 4.9
	  	 Intellectual Property
	  	16
	 4.10
	  	 Commercial Tort Claims
	  	16
			
	 SECTION 5.
	  	 COVENANTS
	  	17
	 5.1
	  	 Covenants in Credit Agreement
	  	17
	 5.2
	  	 Delivery of Instruments, Certificated Securities and Chattel Paper
	  	17
	 5.3
	  	 Maintenance of Insurance
	  	17
	 5.4
	  	 Payment of Obligations
	  	17
	 5.5
	  	 Maintenance of Perfected Security Interest; Further Documentation
	  	18
	 5.6
	  	 Changes in Locations, Name, etc
	  	18
	 5.7
	  	 Notices
	  	18
	 5.8
	  	 Investment Property
	  	19
	 5.9
	  	 Receivables
	  	20
	 5.10
	  	 Intellectual Property
	  	20
	 5.11
	  	 Vehicles
	  	22
			
	 SECTION 6.
	  	 REMEDIAL PROVISIONS
	  	22
	 6.1
	  	 Certain Matters Relating to Receivables
	  	22

  

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	 6.2
	  	 Communications with Obligors; Grantors Remain Liable
	  	23
	 6.3
	  	 Pledged Stock
	  	23
	 6.4
	  	 Proceeds to be Turned Over To General Administrative Agent
	  	24
	 6.5
	  	 Application of Proceeds
	  	24
	 6.6
	  	 Code and Other Remedies
	  	25
	 6.7
	  	 Registration Rights
	  	26
	 6.8
	  	 Waiver; Deficiency
	  	27
	 6.9
	  	 Intercreditor Agreement
	  	27
			
	 SECTION 7.
	  	 THE GENERAL ADMINISTRATIVE AGENT
	  	27
	 7.1
	  	 General Administrative Agent’s Appointment as Attorney-in-Fact, etc.
	  	27
	 7.2
	  	 Duty of General Administrative Agent
	  	29
	 7.3
	  	 Execution of Financing Statements
	  	29
	 7.4
	  	 Authority of General Administrative Agent
	  	30
			
	 SECTION 8.
	  	 MISCELLANEOUS
	  	30
	 8.1
	  	 Amendments in Writing
	  	30
	 8.2
	  	 Notices
	  	30
	 8.3
	  	 No Waiver by Course of Conduct; Cumulative Remedies
	  	30
	 8.4
	  	 Enforcement Expenses; Indemnification
	  	31
	 8.5
	  	 Successors and Assigns
	  	31
	 8.6
	  	 Set-Off
	  	31
	 8.7
	  	 Counterparts
	  	32
	 8.8
	  	 Severability
	  	32
	 8.9
	  	 Section Headings
	  	32
	 8.10
	  	 Integration
	  	32
	 8.11
	  	 Governing Law
	  	32
	 8.12
	  	 Submission To Jurisdiction; Waivers
	  	32
	 8.13
	  	 Acknowledgments
	  	33
	 8.14
	  	 Additional Grantors
	  	33
	 8.15
	  	 Releases
	  	33
	 8.16
	  	 Waiver Of Jury Trial
	  	34
	 8.17
	  	 Release
	  	34
	 8.18
	  	 Amendment and Restatement
	  	35

  

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 SECOND AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT, dated as of June 1, 2004, made by each of
the signatories hereto (together with any other entity that may become a party hereto as provided herein, the “Grantors”), in favor of LEHMAN COMMERCIAL PAPER INC., as General Administrative Agent (in such capacity, the
“General Administrative Agent”) for the banks and other financial institutions (the “Lenders”) from time to time parties to the Second Amended and Restated Credit Agreement, dated as of even date herewith (as
amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among SMTC CORPORATION, a Delaware corporation (“Holdings”), HTM Holdings, Inc., a Delaware corporation (the
“Borrower”), the several banks and other financial institutions or entities from time to time parties to the Credit Agreement (the “Lenders”), LEHMAN BROTHERS INC., as advisor, lead arranger and book manager (in
such capacity, the “Arranger”), the General Administrative Agent and others. 
  
 W I T N E S S E T H: 
  
 WHEREAS, the parties hereto and SMTC Manufacturing Corporation of Canada (“SMTC-Canada”) are parties to the Amended and Restated Guarantee and
Collateral Agreement, dated as of June 27, 2000 (the “Existing Guarantee and Collateral Agreement”), which guarantees and secures the existing credit agreement (the “Existing Credit Agreement”) that is being amended
and restated pursuant to the Credit Agreement; 
  
 WHEREAS,
pursuant to the Credit Agreement, the Lenders have severally agreed to restructure the debt of Borrower and SMTC-Canada under the Existing Credit Agreement (the “Debt Restructuring”), upon the terms and subject to the conditions set
forth in the Credit Agreement and the Debt and Warrant Exchange Agreement, by and between the General Administrative Agent, on the one hand, and Holdings and the Borrower, among others, on the other hand; 
  
 WHEREAS, the Borrower is a member of an affiliated group of companies that
includes each other Grantor; 
  
 WHEREAS, the Borrower and the
other Grantors are engaged in related businesses, and each Grantor will derive substantial direct and indirect benefit from the Debt Restructuring under the Credit Agreement; 
  
 WHEREAS, it is a condition precedent to the effectiveness of the Credit Agreement and to the obligation of the General
Administrative Agent and each Lender to enter into the Debt Restructuring thereunder that the Existing Guarantee and Collateral Agreement shall have been amended and restated hereby; 
  
 NOW, THEREFORE, in consideration of the premises and to induce the General Administrative Agent and the Lenders to enter
into the Credit Agreement and to induce the Lenders to consummate into the Debt Restructuring thereunder, each Grantor hereby agrees with the General Administrative Agent, for the ratable benefit of the Lenders, that, as of the date of 

  

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this Agreement, the Existing Guarantee and Collateral Agreement shall be amended and restated in its entirety as follows: 
  
 SECTION 1. DEFINED TERMS 
  
 1.1 Definitions. (a) Unless otherwise defined herein, terms defined in
the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement, and the following terms which are defined in the Uniform Commercial Code in effect in the State of New York on the date hereof are used herein as so
defined: Accounts, Certificated Security, Chattel Paper, Commercial Tort Claims, Documents, Equipment, Farm Products, Goods, Instruments, Inventory, and Supporting Obligations. 
  
 (b) The following terms shall have the following meanings: 
  
 “Agreement”: this Second Amended and Restated Guarantee and Collateral Agreement, as the
same may be amended, supplemented or otherwise modified from time to time. 
  
 “Borrower Credit Agreement Obligations”: the collective reference to the unpaid principal of and interest on the Loans and all other obligations and liabilities of the Borrower (including, without
limitation, interest accruing at the then applicable rate provided in the Credit Agreement after the maturity of the Loans and interest accruing at the then applicable rate provided in the Credit Agreement after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) to any Agent or any Lender, whether direct or
indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Credit Agreement, this Agreement, or any other document made, delivered or given in connection
therewith, in each case whether on account of principal, interest, reimbursement obligations, guarantee obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Agents
or to the Lenders that are required to be paid by the Borrower pursuant to the terms of any of the foregoing agreements). 
  
 “Borrower Obligations”: the collective reference to (i) the Borrower Credit Agreement Obligations, but only to the extent
that, and only so long as, the Borrower Credit Agreement Obligations are secured and guaranteed pursuant hereto, and (ii) all other obligations and liabilities of the Borrower, whether direct or indirect, absolute or contingent, due or to become
due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement (including, without limitation, all fees and disbursements of counsel to the Agents or to the Lenders that are required to be paid by
the Borrower pursuant to the terms of this Agreement). 
  
 “Collateral”: as defined in Section 3. 
  

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 “Collateral Account”: any collateral account established by the General
Administrative Agent as provided in Section 6.1 or 6.4. 
  
 “Congress Canada Credit Agreement”: the Canadian Loan Agreement, dated as of June 1, 2004, by and among SMTC-Canada and Congress Financial Corporation (Canada). 
  
 “Congress U.S. Credit Agreement”: the US
Loan Agreement, dated as of June 1, 2004, by and among certain direct and indirect subsidiaries of Holdings, the Borrower and Congress Financial Corporation (Central). 
  
 “Congress Credit Agreements”: the collective reference to the Congress Canada Credit
Agreement and the Congress U.S. Credit Agreement. 
  
 “Congress Liens”: the liens and security interests granted to Congress pursuant to the Congress Loan Documents. 
  
 “Congress Loan Documents”: the Congress Credit Agreements and all other documents evidencing the Congress Liens and the
transactions contemplated thereby. 
  
 “Congress Parties” the collective reference to Congress Financial Corporation (Canada) and Congress Financial Corporation (Central). 
  

“Copyrights”: (i) all copyrights arising under the laws of the United States, any other country or any political
subdivision thereof, whether registered or unregistered and whether published or unpublished (including, without limitation, those listed in Schedule 6), all registrations and recordings thereof, and all applications in connection therewith,
including, without limitation, all registrations, recordings and applications in the United States Copyright Office, and (ii) the right to obtain all renewals thereof. 
  
 “Copyright Licenses”: any written agreement naming any Grantor as licensor or licensee
(including, without limitation, those listed in Schedule 6), granting any right under any Copyright, including, without limitation, the grant of rights to manufacture, distribute, exploit and sell materials derived from any Copyright. 
  
 “Deposit Account”: as defined in the
Uniform Commercial Code of any applicable jurisdiction and, in any event, including, without limitation, any demand, time, savings, passbook or like account maintained with a depositary institution. 
  
 “Foreign Subsidiary”: any Subsidiary of
Holdings organized under the laws of any jurisdiction outside the United States of America. 
  
 “Foreign Subsidiary Voting Stock”: the voting Capital Stock of any Foreign Subsidiary. 
  

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 “General Intangibles”: all “general intangibles” as such term
is defined in Section 9-102 of the Uniform Commercial Code in effect in the State of New York on the date hereof and, in any event, including, without limitation, with respect to any Grantor, all contracts, agreements, instruments and indentures in
any form, and portions thereof, to which such Grantor is a party or under which such Grantor has any right, title or interest or to which such Grantor or any property of such Grantor is subject, as the same may from time to time be amended,
supplemented or otherwise modified, including, without limitation, (i) all rights of such Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (ii) all rights of such Grantor to damages arising thereunder and
(iii) all rights of such Grantor to perform and to exercise all remedies thereunder, in each case to the extent the grant by such Grantor of a security interest pursuant to this Agreement in its right, title and interest in such contract, agreement,
instrument or indenture is not prohibited by such contract, agreement, instrument or indenture without the consent of any other party thereto, would not give any other party to such contract, agreement, instrument or indenture the right to terminate
its obligations thereunder, or is permitted with consent if all necessary consents to such grant of a security interest have been obtained from the other parties thereto (it being understood that the foregoing shall not be deemed to obligate such
Grantor to obtain such consents); provided, that the foregoing limitation shall not affect, limit, restrict or impair the grant by such Grantor of a security interest pursuant to this Agreement in any Receivable or any money or other amounts
due or to become due under any such contract, agreement, instrument or indenture. 
  
 “Guarantor Obligations”: with respect to any Guarantor, all obligations and liabilities of such Guarantor which may arise
under or in connection with this Agreement (including, without limitation, Section 2) or any other Loan Document to which such Guarantor is a party, in each case whether on account of guarantee obligations, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Agents or to the Lenders that are required to be paid by such Guarantor pursuant to the terms of this Agreement or any other Loan
Document). 
  
 “Guarantors”: the
collective reference to each Grantor other than the Borrower. 
  
 “Intellectual Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or
otherwise, including, without limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark Licenses, and all rights to sue at law or in equity for any infringement or other impairment
thereof, including the right to receive all proceeds and damages therefrom. 
  
 “Intercreditor Agreement”: the Intercreditor Agreement, dated as of June 1, 2004, by and among the U.S. Subsidiaries of Holdings, the Canadian Parties, the General Administrative Agent and the
Congress Parties. 
  

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 “Intercompany Note”: any promissory note evidencing loans made by any
Grantor to Holdings or any of its Subsidiaries. 
  
 “Investment Property”: the collective reference to (i) all “investment property” as such term is defined in Section 9-102 of the New York UCC (other than any Foreign Subsidiary Voting Stock excluded from the
definition of “Pledged Stock”) and (ii) whether or not constituting “investment property” as so defined, all Pledged Notes and all Pledged Stock. 
  
 “Issuers”: the collective reference to each issuer of a Pledged Security. 
  
 “New York UCC”: the Uniform Commercial Code
as from time to time in effect in the State of New York. 
  
 “Obligations”: (i) in the case of the Borrower, the Borrower Obligations, and (ii) in the case of each Guarantor, its Guarantor Obligations. 
  
 “Patents”: (i) all letters patent of the
United States, any other country or any political subdivision thereof, all reissues and extensions thereof and all goodwill associated therewith, including, without limitation, any of the foregoing referred to in Schedule 6, (ii) all
applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof, including, without limitation, any of the foregoing referred to in Schedule 6, and (iii) all rights
to obtain any reissues or extensions of the foregoing. 
  
 “Patent License”: all agreements, whether written or oral, providing for the grant by or to any Grantor of any right to manufacture, use or sell any invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in Schedule 6. 
  
 “Pledged Notes”: all promissory notes listed on Schedule 2, all Intercompany Notes at any time issued to any Grantor and all other promissory notes issued to or held by any Grantor (other than
promissory notes issued in connection with extensions of trade credit by any Grantor in the ordinary course of business). 
  
 “Pledged Securities”: the collective reference to the Pledged Notes and the Pledged Stock. 
  
 “Pledged Stock”: the shares of Capital
Stock listed on Schedule 2, together with any other shares, stock certificates, options or rights of any nature whatsoever in respect of the Capital Stock of any Person that may be issued or granted to, or held by, any Grantor while this
Agreement is in effect; provided that in no event shall more than 66% of the total outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be required to be pledged hereunder. 
  

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 “Proceeds”: all “proceeds” as such term is defined in Section
9-102 of the Uniform Commercial Code in effect in the State of New York on the date hereof and, in any event, shall include, without limitation, all dividends or other income from the Investment Property, collections thereon or distributions or
payments with respect thereto. 
  
 “Receivable”: any right to payment for goods sold or leased or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and whether or not it has been earned by performance (including,
without limitation, any Account). 
  
 “Securities Act”: the Securities Act of 1933, as amended. 
  
 “Tranche A Term Loans”: as defined in the Credit Agreement. 
  
 “Tranche B Term Loans”: as defined in the
Credit Agreement. 
  
 “Trademarks”: (i) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency
of the United States, any State thereof or any other country or any political subdivision thereof, or otherwise, and all common-law rights related thereto, including, without limitation, any of the foregoing referred to in Schedule 6, and
(ii) the right to obtain all renewals thereof. 
  
 “Trademark License”: any agreement, whether written or oral, providing for the grant by or to any Grantor of any right to use any Trademark, including, without limitation, any of the foregoing referred to in Schedule
6. 
  
 “Vehicles”: all cars,
trucks, trailers, construction and earth moving equipment and other vehicles covered by a certificate of title law of any state and all tires and other appurtenances to any of the foregoing. 
  
 1.2 Other Definitional Provisions. The words “hereof,”
“herein”, “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and Schedule
references are to this Agreement unless otherwise specified. 
  
 (a) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
  
 (b) Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such
Grantor’s Collateral or the relevant part thereof. 
  

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 SECTION 2. GUARANTEE 
  
 2.1 Guarantee. (a) Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees
to the General Administrative Agent, for the ratable benefit of the Lenders and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Borrower Obligations. 
  
 (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum liability of each Guarantor hereunder and under the other Loan Documents shall in no event exceed the amount which can be guaranteed by such
Guarantor under applicable federal and state laws relating to the insolvency of debtors (after giving effect to the right of contribution established in Section 2.2). 
  
 (c) Each Guarantor agrees that the Borrower Obligations may at any time and from time to time exceed the amount of the
liability of such Guarantor hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of the General Administrative Agent or any Lender hereunder. 
  
 (d) The guarantee contained in this Section 2 shall remain in full force and
effect until all the Borrower Obligations and the obligations of each Guarantor under the guarantee contained in this Section 2 shall have been satisfied by payment in full. 
  
 (e) No payment made by the Borrower, any of the Guarantors, any other guarantor or any other Person or received or collected
by the General Administrative Agent or any Lender from the Borrower, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time
in reduction of or in payment of the Borrower Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such
Guarantor in respect of the Borrower Obligations or any payment received or collected from such Guarantor in respect of the Borrower Obligations), remain liable for the Borrower Obligations up to the maximum liability of such Guarantor hereunder
until the Borrower Obligations are paid in full. 
  
 2.2 Right
of Contribution. Each Subsidiary Guarantor hereby agrees that to the extent that a Subsidiary Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Subsidiary Guarantor shall be entitled to seek and
receive contribution from and against any other Subsidiary Guarantor hereunder which has not paid its proportionate share of such payment. Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and conditions of Section
2.3. The provisions of this Section 2.2 shall in no respect limit the obligations and liabilities of any Subsidiary Guarantor to the General Administrative Agent and the Lenders, and each Subsidiary Guarantor shall remain liable to the General
Administrative Agent and the Lenders for the full amount guaranteed by such Subsidiary Guarantor hereunder. 
  

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 2.3 No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or
application of funds of any Guarantor by the General Administrative Agent or any Lender, no Guarantor shall be entitled to be subrogated to any of the rights of the General Administrative Agent or any Lender against the Borrower or any other
Guarantor or any collateral security or guarantee or right of offset held by the General Administrative Agent or any Lender for the payment of the Borrower Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or
reimbursement from the Borrower or any Guarantor in respect of payments made by such Guarantor hereunder, until all amounts owing to the General Administrative Agent and the Lenders by the Borrower on account of the Borrower Obligations are paid in
full. If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Borrower Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust for the General
Administrative Agent and the Lenders, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the General Administrative Agent in the exact form received by such Guarantor (duly indorsed
by such Guarantor to the General Administrative Agent, if required), to be applied against the Borrower Obligations, whether matured or unmatured, in such order as the Credit Agreement shall provide. 
  
 2.4 Amendments, etc. with respect to the Borrower Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Borrower Obligations made by the
General Administrative Agent or any Lender may be rescinded by the General Administrative Agent or such Lender and any of the Borrower Obligations continued, and the Borrower Obligations, or the liability of any other Person upon or for any part
thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the
relevant Administrative Agent or any Lender, and the Credit Agreement and the other Loan Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as
the General Administrative Agent (or the Required Lenders or all Lenders, as the case may be) may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the General Administrative Agent or any
Lender for the payment of the Borrower Obligations may be sold, exchanged, waived, surrendered or released. Neither the General Administrative Agent nor any Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time
held by it as security for the Borrower Obligations or for the guarantee contained in this Section 2 or any property subject thereto. 
  
 2.5 Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the
Borrower Obligations and notice of or proof of reliance by the General Administrative Agent or any Lender upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Borrower Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Borrower and any of the Guarantors, on


  

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the one hand, and the General Administrative Agent and the Lenders, on the other hand, likewise shall be conclusively presumed to have been had or
consummated in reliance upon the guarantee contained in this Section 2. Each Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrower or any of the Guarantors with respect to
the Borrower Obligations. Each Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability
of the Credit Agreement or any other Loan Document, any of the Borrower Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the General Administrative
Agent or any Lender, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by the Borrower or any other Person against the General Administrative Agent or any
Lender, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower for the Borrower
Obligations, or of such Guarantor under the guarantee contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the General
Administrative Agent or any Lender may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Borrower, any other Guarantor or any other Person or against any collateral
security or guarantee for the Borrower Obligations or any right of offset with respect thereto, and any failure by the General Administrative Agent or any Lender to make any such demand, to pursue such other rights or remedies or to collect any
payments from the Borrower, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower, any other Guarantor or any other Person or any
such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of
the General Administrative Agent or any Lender against any Guarantor. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
  
 2.6 Reinstatement. The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the
case may be, if at any time payment, or any part thereof, of any of the Borrower Obligations is rescinded or must otherwise be restored or returned by the General Administrative Agent or any Lender upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made. 
  
 2.7 Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to the General Administrative Agent without set-off or counterclaim in the currency in which the relevant Borrower Obligation is denominated at the
Payment Office specified in the Credit Agreement. 
  

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 SECTION 3. GRANT OF SECURITY INTEREST 
  
 (a) Each Grantor hereby confirms that pursuant to the Existing Guarantee and Collateral Agreement such Grantor has assigned
and transferred to the General Administrative Agent, and hereby confirms that pursuant to the Existing Guarantee and Collateral Agreement such Grantor has granted, or pursuant hereto hereby continues such grant, to the General Administrative Agent,
for the ratable benefit of the Lenders, a first priority security interest (junior only to the Congress Liens) in, all of the following property now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any
time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or
otherwise) of such Grantor’s Obligations in respect of the Tranche A Term Loans and the Tranche B Term Loans: 
  
 (i) all Accounts; 
  
 (ii) all cash and Cash Equivalents; 
  
 (iii) all Chattel Paper; 
  
 (iv) all Commercial Tort Claims; 
  
 (v) all Contracts and contract rights; 
  
 (vi) all Deposit Accounts; 
  
 (vii) all Documents; 
  
 (viii) all Equipment; 
  
 (ix) [reserved]; 
  
 (x) all fixtures; 
  
 (xi) all General Intangibles; 
  
 (xii) all Instruments; 
  
 (xiii) all Intellectual Property; 
  
 (xiv) all Inventory; 
  
 (xv) all Investment Property; 
  
 (xvi) letter-of-credit rights; 
  
 (xvii) all Vehicles; 
  

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 (xviii) all Goods and all other property not otherwise described above; 
  
 (xix) all books, records, writings, databases, information
and other property relating to, used or useful in connection with, evidencing, embodying, incorporating or referring to any of the foregoing; and 
  
 (xx) to the extent not otherwise included, all Proceeds, Supporting Obligations, product, rents, issues, profits, returns, income and
proceeds of and from any of the foregoing and all collateral security, guarantees, supporting obligations, letter of credit rights, leases and other Contracts securing or otherwise relating to any such Accounts, Contracts, contract rights, Chattel
Paper, Documents, Instruments, Deposit Accounts, Investment Property, Financial Assets, Money, Commercial Tort Claims and General Intangibles given by any Person with respect to the foregoing. 
  
 (b) Each Grantor hereby confirms that pursuant to the Existing Guarantee and
Collateral Agreement such Grantor has assigned and transferred to the General Administrative Agent, and hereby confirms that pursuant to the Existing Guarantee and Collateral Agreement such Grantor has granted, and pursuant hereto hereby continues
such grant, to the General Administrative Agent, for the ratable benefit of the Lenders, a first priority security interest (junior only to the Congress Liens and, so long as any Obligations are outstanding under the Tranche A Term Loans, Tranche B
Term Loans, the liens described in Section 3(a) above) in, all of the Collateral now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest, as
collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations in respect of the Tranche A Term Loans or the Tranche B Term Loans.

  
 SECTION 4. REPRESENTATIONS AND WARRANTIES 
  
 To induce the General Administrative Agent and the Lenders to enter into the
Credit Agreement and to induce the Lenders to consummate the Debt Restructuring thereunder, each Grantor hereby represents and warrants to the General Administrative Agent and each Lender that: 
  
 4.1 Representations in Credit Agreement. (a) In the case of each
Guarantor, the representations and warranties set forth in Section 8 of the Credit Agreement as they relate to such Guarantor or to the Loan Documents to which such Guarantor is a party, each of which is hereby incorporated herein by reference, are
true and correct, and the General Administrative Agent and each Lender shall be entitled to rely on each of them as if they were fully set forth herein, provided that each reference in each such representation and warranty to the knowledge of
Holdings or a Borrower shall, for the purposes of this Section 4.1(a), be deemed to be a reference to such Guarantor’s knowledge. 
  
 4.2 Title; No Other Liens. Except for the security interest granted to the General Administrative Agent for the ratable benefit of the Lenders
pursuant to this Agreement 

  

 14 








 
and the other Liens permitted to exist on the Collateral by the Credit Agreement (including without limitation the Congress Liens), such Grantor owns each
item of its Collateral free and clear of any and all Liens or claims of others. No financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except such as have been
filed in favor of the General Administrative Agent, for the ratable benefit of the Lenders, pursuant to this Agreement or as are permitted by the Credit Agreement. 
  
 4.3 Perfected First Priority Liens. The security interests granted pursuant to this Agreement constitute valid
perfected security interests in all of the Collateral in favor of the General Administrative Agent, for the ratable benefit of the Lenders, as collateral security for such Grantor’s Obligations (as specified in Section 3), enforceable in
accordance with the terms hereof against all creditors of such Grantor and any Persons purporting to purchase any Collateral from such Grantor and are prior to all other Liens on the Collateral in existence on the date hereof (as specified in
Section 3) except for Liens permitted by Section 11.3 of the Credit Agreement (including, for avoidance of doubt, the Congress Liens) and, in the case of the security interest granted pursuant to Section 3(b), except for the security interest
granted pursuant to Section 3(a). The filings and other actions described on Schedule 3 have taken place pursuant to the Existing Guarantee and Collateral Agreement. 
  
 4.4 Chief Executive Office. On the date hereof, such Grantor’s jurisdiction of organization and the location of
such Grantor’s chief executive office or sole place of business are specified on Schedule 4. 
  
 4.5 Inventory and Equipment. On the date hereof, the Inventory and the Equipment (other than mobile goods) are kept at the locations listed on
Schedule 5. 
  
 4.6 Farm Products. None of the
Collateral constitutes, or is the Proceeds of, Farm Products. 
  
 4.7 Investment Property. (a) The shares of Pledged Stock pledged by such Grantor hereunder constitute all the issued and outstanding shares of all classes of the Capital Stock of each Issuer owned by such Grantor or, in the case of
Foreign Subsidiary Voting Stock, if less, 66% of the outstanding Foreign Subsidiary Voting Stock of each relevant Issuer. 
  
 (b) All the shares of the Pledged Stock have been duly and validly issued and are fully paid and nonassessable. 
  
 (c) Each of the Pledged Notes constitutes the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 
  
 (d) Such Grantor is the record and beneficial owner of, and has good and marketable title to, the Investment Property
pledged by it hereunder, free of any and all Liens or 

  

 15 








 
options in favor of, or claims of, any other Person, except the security interest created by this Agreement and Liens permitted by the Credit Agreement
(including for the avoidance of doubt, the Congress Liens). 
  
 4.8 Receivables. (a) No amount payable to such Grantor under or in connection with any Receivable is evidenced by any Instrument or Chattel Paper which has not been delivered to the Congress Parties on behalf of Lenders or to the
General Administrative Agent, as the case may be. 
  
 (b) None of
the obligors on any Receivables is a Governmental Authority. 
  
 (c) The amounts represented by such Grantor to the Lenders from time to time as owing to such Grantor in respect of the Receivables will at such times be accurate. 
  
 4.9 Intellectual Property. (a) Schedule 6 lists all Intellectual Property owned by such Grantor in its own
name on the date hereof. 
  
 (b) On the date hereof, all material
Intellectual Property of such Grantor described on Schedule 6 is valid, subsisting, unexpired and enforceable, has not been abandoned and does not infringe the intellectual property rights of any other Person. 
  
 (c) Except as set forth in Schedule 6, on the date hereof, none of the
Intellectual Property is the subject of any licensing or franchise agreement pursuant to which such Grantor is the licensor or franchisor. 
  
 (d) No holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity of, or such
Grantor’s rights in, any Intellectual Property in any respect that could reasonably be expected to have a Material Adverse Effect. 
  
 (e) No action or proceeding is pending, or, to the knowledge of such Grantor, threatened, on the date hereof seeking to limit, cancel or question the
validity of any Intellectual Property or such Grantor’s ownership interest therein, or which, if adversely determined, would have a material adverse effect on the value of any Intellectual Property. 
  
 4.10 Commercial Tort Claims. No Grantor holds any Commercial Tort
Claim which it reasonably anticipates could result in a recovery in excess of $1,000,000.00 
  

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 SECTION 5. COVENANTS 
  
 Each Grantor covenants and agrees with the General Administrative Agent and the Lenders that, from and after the date of
this Agreement until the Obligations shall have been paid in full: 
  
 5.1 Covenants in Credit Agreement. In the case of each Guarantor, such Guarantor shall take, or shall refrain from taking, as the case may be, each action that is necessary to be taken or not taken, as the case may be, so that no
Default or Event of Default is caused by the failure to take such action or to refrain from taking such action by such Guarantor or any of its Subsidiaries. 
  
 5.2 Delivery of Instruments, Certificated Securities and Chattel Paper. If any amount payable under or in connection with any of the Collateral
shall be or become evidenced by any Instrument, Certificated Security or Chattel Paper, such Instrument, Certificated Security or Chattel Paper shall be immediately delivered to the Congress Parties on behalf or the Lenders or to the General
Administrative Agent as the case may be, duly indorsed in a manner satisfactory to the General Administrative Agent, to be held as Collateral pursuant to this Agreement. 
  
 5.3 Maintenance of Insurance. (a) Such Grantor will maintain, with financially sound and reputable companies,
insurance policies insuring the Inventory, Equipment and Vehicles against loss by fire, explosion, theft and such other casualties as may be reasonably satisfactory to the General Administrative Agent and insuring such Grantor, the General
Administrative Agent and the Lenders against liability for personal injury and property damage relating to such Inventory, Equipment and Vehicles, such policies to be in such form and amounts and having such coverage as may be reasonably
satisfactory to the General Administrative Agent and the Lenders. 
  
 (b) All such insurance shall (i) provide that no cancellation, material reduction in amount or material change in coverage thereof shall be effective until at least 30 days after receipt by the General Administrative Agent of written notice
thereof, (ii) name the General Administrative Agent as insured party or loss payee, (iii) if reasonably requested by the General Administrative Agent, include a breach of warranty clause and be reasonably satisfactory in all other respects to the
General Administrative Agent. 
  
 (c) The Borrower shall deliver
to the General Administrative Agent and the Lenders a report of a reputable insurance broker with respect to such insurance substantially concurrently with the delivery by the Borrower to the General Administrative Agent of its audited financial
statements for each fiscal year and such supplemental reports with respect thereto as the General Administrative Agent may from time to time reasonably request. 
  

5.4 Payment of Obligations. Such Grantor will pay and discharge or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all taxes, assessments and governmental charges or levies imposed upon the Collateral or in respect of income or profits therefrom, as well as all claims of any kind (including, without limitation, claims for labor, materials and
supplies) against or with respect to the Collateral, except that no such charge need be paid if the amount or validity thereof is currently being contested in good faith by appropriate proceedings, reserves in conformity with GAAP with respect
thereto have been provided on the books of such Grantor and such proceedings could not reasonably be 

  

 17 








 
expected to result in the sale, forfeiture or loss of any material portion of the Collateral or any interest therein. 
  
 5.5 Maintenance of Perfected Security Interest; Further Documentation.
(a) Such Grantor shall maintain the security interest created by this Agreement as a perfected security interest having at least the priority described in Section 4.3 and shall defend such security interest against the claims and demands of all
Persons whomsoever. 
  
 (b) Such Grantor will furnish to the
General Administrative Agent and the Lenders from time to time statements and schedules further identifying and describing the assets and property of such Grantor and such other reports in connection with the Collateral as the General Administrative
Agent may reasonably request, all in reasonable detail. 
  
 (c) At
any time and from time to time, upon the written request of the General Administrative Agent, and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver, and have recorded, such further instruments and documents
and take such further actions as the General Administrative Agent may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, including, without limitation, in
the case of Investment Property, Deposit Accounts and any other relevant Collateral, taking any actions necessary to enable the General Administrative Agent to obtain “control” (within the meaning of the applicable Uniform Commercial Code)
with respect thereto. 
  
 5.6 Changes in Locations, Name,
etc. Such Grantor will not, except upon 15 days’ prior written notice to the General Administrative Agent and delivery to the General Administrative Agent of all additional executed financing statements and other documents reasonably
requested by the General Administrative Agent to maintain the validity, perfection and priority of the security interests provided for herein and if applicable, a written supplement to Schedule 5 showing any additional location at which
Inventory or Equipment shall be kept: 
  
 i.
permit any of the Inventory or Equipment to be kept at a location other than those listed on Schedule 5; 
  
 ii. change its jurisdiction of organization or the location of its chief executive office or sole place of business from that referred to
in Section 4.4; or 
  
 iii. change its name,
identity or corporate structure to such an extent that any financing statement filed by the General Administrative Agent in connection with this Agreement would become misleading. 
  
 5.7 Notices. Such Grantor will advise the General Administrative Agent and the Lenders promptly, in reasonable
detail, of: 
  
 (a) any Lien (other than security interests
created hereby or Liens permitted under the Credit Agreement) on any of the Collateral which would adversely affect the ability of the General Administrative Agent to exercise any of its remedies hereunder; 
  

 18 








 (b) the occurrence of any other event which could reasonably be expected to have a material adverse
effect on the aggregate value of the Collateral or on the security interests created hereby; 
  
 (c) any Commercial Tort Claim that any Grantor may acquire which such Grantor reasonably anticipates could result in a recovery of $1,000,000.00 or more and such Grantor shall promptly grant to the General
Administrative Agent a security interest thereon and all proceeds thereof in form and substance reasonably satisfactory to the General Administrative Agent in its sole discretion. 
  
 5.8 Investment Property. Subject to the rights of the Congress Parties under the Intercreditor Agreement: 

 
 (a) If such Grantor shall become entitled to receive or shall receive any
stock certificate (including, without limitation, any certificate representing a stock dividend or a distribution in connection with any reclassification, increase or reduction of capital or any certificate issued in connection with any
reorganization), option or rights in respect of the Capital Stock of any Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect thereof, such Grantor shall
accept the same as the agent of the General Administrative Agent and the Lenders, hold the same in trust for the General Administrative Agent and the Lenders and deliver the same forthwith to the General Administrative Agent in the exact form
received, duly indorsed by such Grantor to the General Administrative Agent, if required, together with an undated stock power covering such certificate duly executed in blank by such Grantor and with, if the General Administrative Agent so
requests, signature guaranteed, to be held by the General Administrative Agent, subject to the terms hereof, as additional collateral security for the Obligations. Any sums paid upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall be paid over to the General Administrative Agent to be held by it hereunder as additional collateral security for the Obligations, and in case any distribution of capital shall be made on or in respect of the
Investment Property or any property shall be distributed upon or with respect to the Investment Property pursuant to the recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the property so
distributed shall, unless otherwise subject to a perfected security interest in favor of the General Administrative Agent, be delivered to the General Administrative Agent to be held by it hereunder as additional collateral security for the
Obligations. If any sums of money or property so paid or distributed in respect of the Investment Property shall be received by such Grantor, such Grantor shall, until such money or property is paid or delivered to the General Administrative Agent,
hold such money or property in trust for the Lenders, segregated from other funds of such Grantor, as additional collateral security for the Obligations. 
  
 (b) Without the prior written consent of the General Administrative Agent, such Grantor will not (i) vote to enable, or take any other action to permit,
any Issuer to issue any stock or other equity securities of any nature or to issue any other securities convertible into or granting the right to purchase or exchange for any stock or other equity securities of any nature of any Issuer, (ii) sell,
assign, transfer, exchange, or otherwise dispose of, or grant any option 

  

 19 








 
with respect to, the Investment Property or Proceeds thereof (except pursuant to a transaction expressly permitted by the Credit Agreement), (iii) create,
incur or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, any of the Investment Property or Proceeds thereof, or any interest therein, except for the security interests created by this Agreement or (iv)
enter into any agreement or undertaking restricting the right or ability of such Grantor or the General Administrative Agent to sell, assign or transfer any of the Investment Property or Proceeds thereof. 
  
 (c) In the case of each Grantor which is an Issuer, such Issuer agrees that
(i) it will be bound by the terms of this Agreement relating to the Pledged Securities issued by it and will comply with such terms insofar as such terms are applicable to it, (ii) it will notify the General Administrative Agent promptly in writing
of the occurrence of any of the events described in Section 5.8(a) with respect to the Pledged Securities issued by it and (iii) the terms of Sections 6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all actions that
may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the Investment Property issued by it. 
  
 5.9 Receivables. (a) Other than in the ordinary course of business consistent with its past practice, such Grantor will not (i) grant any extension
of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any Receivable, (iv) allow any credit or discount
whatsoever on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could adversely affect the value thereof. 
  
 (b) Such Grantor will deliver to the General Administrative Agent a copy of each material demand, notice or document received by it that questions or
calls into doubt the validity or enforceability of more than 5% of the aggregate amount of the then outstanding Receivables. 
  
 5.10 Intellectual Property. (a) Such Grantor (either itself or through licensees) will (i) continue to use each material Trademark on each and
every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force free from any claim of abandonment for non-use, (ii) maintain as in the
past the quality of products and services offered under such Trademark, (iii) use such Trademark with the appropriate notice of registration and all other notices and legends required by applicable Requirements of Law, (iv) not adopt or use any mark
which is confusingly similar or a colorable imitation of such Trademark unless the General Administrative Agent, for the ratable benefit of the Lenders, shall obtain a perfected security interest in such mark pursuant to this Agreement, and (v) not
(and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way. 
  
 (b) Such Grantor (either itself or through licensees) will not do any act, or omit to do any act, whereby any material
Patent may become forfeited, abandoned or dedicated to the public. 
  

 20 








 (c) Such Grantor (either itself or through licensees) (i) will employ each material Copyright and (ii)
will not (and will not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any material portion of the Copyrights may become invalidated or otherwise impaired. Such Grantor will not (either itself or
through licensees) do any act whereby any material portion of the Copyrights may fall into the public domain. 
  
 (d) Such Grantor (either itself or through licensees) will not do any act that knowingly uses any material Intellectual Property to infringe the
intellectual property rights of any other Person. 
  
 (e) Such
Grantor will notify the General Administrative Agent and the Lenders immediately if it knows, or has reason to know, that any application or registration relating to any material Intellectual Property may become forfeited, abandoned or dedicated to
the public, or of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright
Office or any court or tribunal in any country) regarding such Grantor’s ownership of, or the validity of, any material Intellectual Property or such Grantor’s right to register the same or to own and maintain the same. 
  
 (f) Whenever such Grantor, either by itself or through any agent, employee,
licensee or designee, shall file an application for the registration of any Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any
political subdivision thereof, such Grantor shall report such filing to the General Administrative Agent within five Business Days after the last day of the fiscal quarter in which such filing occurs. Upon request of the General Administrative
Agent, such Grantor shall execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers as the General Administrative Agent may request to evidence the General Administrative Agent’s and the Lenders’
security interest in any Copyright, Patent or Trademark and the goodwill and general intangibles of such Grantor relating thereto or represented thereby. 
  
 (g) Such Grantor will take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Patent and
Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each
registration of the material Intellectual Property, including, without limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability. 
  
 (h) In the event that any material Intellectual Property is infringed, misappropriated or diluted by a third party, such
Grantor shall (i) take such actions as such Grantor shall reasonably deem appropriate under the circumstances to protect such Intellectual Property and (ii) if such Intellectual Property is of material economic value, promptly notify the General
Administrative Agent after it learns thereof and sue for infringement, misappropriation 

  

 21 








 
or dilution, to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution. 

 
 5.11 Vehicles. The aggregate book value of all Vehicles owned by
such Grantor does not exceed $250,000. 
  
 SECTION 6. REMEDIAL
PROVISIONS 
  
 6.1 Certain Matters Relating to Receivables.
Subject to the rights of the Congress Parties under the Intercreditor Agreement: 
  
 (a) The General Administrative Agent shall have the right to make test verifications of the Receivables in any manner and through any medium that it reasonably considers advisable, and each Grantor shall furnish all
such assistance and information as the General Administrative Agent may require in connection with such test verifications. At any time and from time to time, upon the General Administrative Agent’s request and at the expense of the relevant
Grantor, such Grantor shall cause independent public accountants or others satisfactory to the General Administrative Agent to furnish to the General Administrative Agent reports showing reconciliations, aging and test verifications of, and trial
balances for, the Receivables. 
  
 (b) The General Administrative
Agent hereby authorizes each Grantor to collect such Grantor’s Receivables, subject to the General Administrative Agent’s direction and control, and the General Administrative Agent may curtail or terminate said authority at any time after
the occurrence and during the continuance of an Event of Default. If required by the General Administrative Agent at any time after the occurrence and during the continuance of an Event of Default, any payments of Receivables, when collected by any
Grantor, (i) shall be forthwith (and, in any event, within two Business Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the General Administrative Agent if required, in a Collateral Account maintained
under the sole dominion and control of the General Administrative Agent, subject to withdrawal by the General Administrative Agent for the account of the Lenders only as provided in Section 6.5, and (ii) until so turned over, shall be held by such
Grantor in trust for the General Administrative Agent and the Lenders, segregated from other funds of such Grantor. Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in reasonable detail the nature and source
of the payments included in the deposit. 
  
 (c) At the General
Administrative Agent’s request, each Grantor shall deliver to the General Administrative Agent all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the Receivables, including, without
limitation, all original orders, invoices and shipping receipts. 
  

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 6.2 Communications with Obligors; Grantors Remain Liable. Subject to the rights of the Congress
Parties under the Intercreditor Agreement: 
  
 (a) The General
Administrative Agent in its own name or in the name of others may at any time after the occurrence and during the continuance of an Event of Default communicate with obligors under the Receivables to verify with them to the General Administrative
Agent’s satisfaction the existence, amount and terms of any Receivables. 
  
 (b) Upon the request of the General Administrative Agent at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall notify obligors on the Receivables that the Receivables
have been assigned to the General Administrative Agent for the ratable benefit of the Lenders and that payments in respect thereof shall be made directly to the General Administrative Agent. 
  
 (c) Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each of the Receivables to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto. Neither the General
Administrative Agent nor any Lender shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the General Administrative Agent or any Lender of
any payment relating thereto, nor shall the General Administrative Agent or any Lender be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto), to make
any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to
collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 
  
 6.3 Pledged Stock. Subject to the rights of the Congress Parties under the Intercreditor Agreement: 
  
 (a) Unless an Event of Default shall have occurred and be continuing and the
General Administrative Agent shall have given notice to the relevant Grantor of the General Administrative Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to receive all cash
dividends paid in respect of the Pledged Stock and all payments made in respect of the Pledged Notes, in each case paid in the normal course of business of the relevant Issuer and consistent with past practice, to the extent not prohibited in the
Credit Agreement, and to exercise all voting and corporate rights with respect to the Pledged Securities; provided, however, that no vote shall be cast or corporate right exercised or other action taken which, in the General
Administrative Agent’s reasonable judgment, would impair the Collateral or which would be inconsistent with or result in any violation of any provision of the Credit Agreement, this Agreement or any other Loan Document. 
  
 (b) If an Event of Default shall occur and be continuing and the General
Administrative Agent shall give notice of its intent to exercise such rights to the relevant Grantor or Grantors, (i) the General Administrative Agent shall have the right to receive any and all cash dividends, payments or other Proceeds paid in
respect of the Pledged Securities and make 

  

 23 








 
application thereof to the Obligations in the order set forth in Section 6.5, and (ii) any or all of the Pledged Securities shall be registered in the name
of the General Administrative Agent or its nominee, and the General Administrative Agent or its nominee may thereafter exercise (x) all voting, corporate and other rights pertaining to such Pledged Securities at any meeting of shareholders of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such Pledged Securities as if it were the absolute owner thereof (including,
without limitation, the right to exchange at its discretion any and all of the Pledged Securities upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the corporate structure of any Issuer, or upon the
exercise by any Grantor or the General Administrative Agent of any right, privilege or option pertaining to such Pledged Securities, and in connection therewith, the right to deposit and deliver any and all of the Pledged Securities with any
committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the General Administrative Agent may determine), all without liability except to account for property actually received by it, but the
General Administrative Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing. 
  
 (c) Each Grantor hereby authorizes and instructs each Issuer of any Investment Property pledged by such Grantor hereunder to
(i) comply with any instruction received by it from the General Administrative Agent in writing that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any
other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends or other payments with respect to the
Investment Property directly to the General Administrative Agent. 
  
 6.4 Proceeds to be Turned Over To General Administrative Agent. Subject to the rights of the Congress Parties under the Intercreditor Agreement and in addition to the rights of the General Administrative Agent and the Lenders
specified in Section 6.1 with respect to payments of Receivables, if an Event of Default shall occur and be continuing, all Proceeds received by any Grantor consisting of cash, checks and Cash Equivalents shall be held by such Grantor in trust for
the General Administrative Agent and the Lenders, segregated from other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the General Administrative Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the General Administrative Agent, if required). All Proceeds received by the General Administrative Agent hereunder shall be held by the General Administrative Agent in a Collateral Account maintained under its sole
dominion and control. All Proceeds while held by the General Administrative Agent in a Collateral Account (or by such Grantor in trust for the General Administrative Agent and the Lenders) shall continue to be held as collateral security for all the
Obligations and shall not constitute payment thereof until applied as provided in Section 6.5. 
  
 6.5 Application of Proceeds. At such intervals as may be agreed upon by the Borrower and the General Administrative Agent, or, if an Event of Default shall have occurred 

  

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and be continuing, at any time at the General Administrative Agent’s election, the General Administrative Agent may apply all or any part of Proceeds
constituting Collateral, whether or not held in any Collateral Account, and any proceeds of the guarantee set forth in Section 2, in payment of the Obligations in the following order: 
  
 First, to pay incurred and unpaid fees and expenses of the General Administrative Agent under the
Loan Documents; 
  
 Second, to the General
Administrative Agent, for application by it towards payment of amounts then due and owing and remaining unpaid in respect of the Obligations, in the order specified in Sections 7.5 and 15.18 of the Credit Agreement; 
  
 Third, to the General Administrative Agent, for
application by it towards prepayment of the Obligations, in the order specified in Sections 7.5 and 15.18 of the Credit Agreement; and 
  
 Fourth, any balance of such Proceeds remaining after the Obligations shall have been paid in full shall be paid over to the
Borrower or to whomsoever may be lawfully entitled to receive the same. 
  
 6.6 Code and Other Remedies. If an Event of Default shall occur and be continuing, the General Administrative Agent, on behalf of the Lenders, may exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a secured party under the New York UCC or any other applicable law. Without limiting the generality of the foregoing,
the General Administrative Agent, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other Person (all and each
of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give option
or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of the
General Administrative Agent or any Lender or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. The General
Administrative Agent or any Lender shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption in any Grantor, which right or equity is hereby waived and released. Each Grantor further agrees, at the General Administrative Agent’s request, to assemble the Collateral and make it available to the General Administrative
Agent at places which the General Administrative Agent shall reasonably select, whether at such Grantor’s premises or elsewhere. The General Administrative Agent shall apply the net proceeds of any action taken by it pursuant to this Section
6.6, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping 

  

 25 








 
of any of the Collateral or in any way relating to the Collateral or the rights of the General Administrative Agent and the Lenders hereunder, including,
without limitation, reasonable attorneys’ fees and disbursements, to the payment in whole or in part of the Obligations, in the order specified in Sections 7.5 and 15.18 of the Credit Agreement, and only after such application and after the
payment by the General Administrative Agent of any other amount required by any provision of law, including, without limitation, Section 9-615 of the New York UCC, need the General Administrative Agent account for the surplus, if any, to any
Grantor. To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against the General Administrative Agent or any Lender arising out of the exercise by them of any rights hereunder. If any notice
of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least 10 days before such sale or other disposition.  
  
 6.7 Registration Rights. (a) If the General Administrative Agent shall
determine to exercise its right to sell any or all of the Pledged Stock pursuant to Section 6.6, and if in the opinion of the General Administrative Agent it is necessary or advisable to have the Pledged Stock, or that portion thereof to be sold,
registered under the provisions of the Securities Act, the relevant Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the directors and officers of such Issuer to execute and deliver, all such instruments and documents, and
do or cause to be done all such other acts as may be, in the opinion of the General Administrative Agent, necessary or advisable to register the Pledged Stock, or that portion thereof to be sold, under the provisions of the Securities Act, (ii) use
its best efforts to cause the registration statement relating thereto to become effective and to remain effective for a period of one year from the date of the first public offering of the Pledged Stock, or that portion thereof to be sold, and (iii)
make all amendments thereto and/or to the related prospectus which, in the opinion of the General Administrative Agent, are necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto. Each Grantor agrees to cause such Issuer to comply with the provisions of the securities or “Blue Sky” laws of any and all jurisdictions which the General Administrative Agent shall
designate and to make available to its security holders, as soon as practicable, an earnings statement (which need not be audited) which will satisfy the provisions of Section 11(a) of the Securities Act. 
  
 (b) Each Grantor recognizes that the General Administrative Agent may be
unable to effect a public sale of any or all the Pledged Stock, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof
to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees
that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially
reasonable manner. The General Administrative Agent shall be under no obligation to delay a sale of any of the Pledged Stock for the period of time necessary to permit the Issuer thereof to register such securities for 

  

 26 








 
public sale under the Securities Act, or under applicable state securities laws, even if such Issuer would agree to do so. 
  
 (c) Each Grantor agrees to use its best efforts to do or cause to be done all
such other acts as may be necessary to make such sale or sales of all or any portion of the Pledged Stock pursuant to this Section 6.7 valid and binding and in compliance with any and all other applicable Requirements of Law. Each Grantor further
agrees that a breach of any of the covenants contained in this Section 6.7 will cause irreparable injury to the General Administrative Agent and the Lenders, that the General Administrative Agent and the Lenders have no adequate remedy at law in
respect of such breach and, as a consequence, that each and every covenant contained in this Section 6.7 shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action
for specific performance of such covenants except for a defense that no Event of Default has occurred under the Credit Agreement. 
  
 6.8 Waiver; Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are
insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by the General Administrative Agent or any Lender to collect such deficiency. 
  
 6.9 Intercreditor Agreement 
  

The security interests and liens granted hereunder and the rights and remedies of the General Administrative Agent and the Lenders hereunder are
subject to the terms of the Intercreditor Agreement. Without limiting, and in furtherance of, the foregoing, the General Administrative Agent shall not exercise its rights under Sections 5.8, 6.1(b), 6.2(b), 6.3(c), 6.4, 6.6, 6.7 or 7.1 hereof for
so long as the Intercreditor Agreement is in effect, except as expressly permitted thereby or otherwise expressly permitted in writing by the Congress Parties. In the event of any conflict between the terms and provisions of this Agreement and the
Intercreditor Agreement, the terms and provisions of the Intercreditor Agreement shall govern and control. 
  
 SECTION 7. THE GENERAL ADMINISTRATIVE AGENT 
  
 7.1 General Administrative Agent’s Appointment as Attorney-in-Fact, etc. (a) Each Grantor hereby irrevocably constitutes and appoints the
General Administrative Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor
or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the General Administrative Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the
following: 
  
 (i) in the name of such Grantor or
its own name, or otherwise, take possession of and indorse and collect any checks, drafts, notes, acceptances or other 

  

 27 








 
instruments for the payment of moneys due under any Receivable or with respect to any other Collateral and file any claim or take any other action or
proceeding in any court of law or equity or otherwise deemed appropriate by the General Administrative Agent for the purpose of collecting any and all such moneys due under any Receivable or with respect to any other Collateral whenever payable;

  
 (ii) in the case of any Intellectual
Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as the General Administrative Agent may request to evidence the General Administrative Agent’s and the Lenders’ security interest
in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby; 
  
 (iii) pay or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or any insurance
called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof; 
  
 (iv) execute, in connection with any sale provided for in Section 6.6 or 6.7, any indorsements, assignments or other instruments of
conveyance or transfer with respect to the Collateral; and 
  
 (v) (1) direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the General Administrative Agent or as the General
Administrative Agent shall direct; (2) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (3) sign and
indorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (4) commence and prosecute any
suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (5) defend any suit, action or proceeding brought
against such Grantor with respect to any Collateral; (6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the General Administrative Agent may deem appropriate; (7)
assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for such term or terms, on such conditions, and in such manner, as the General
Administrative Agent shall in its sole discretion determine; and (8) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the General Administrative
Agent were the absolute owner thereof for all purposes, and do, at the General Administrative Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and things which the General Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral and the General Administrative Agent’s and the Lenders’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might
do. 
  

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 Anything in this Section 7.1 (a) to the contrary notwithstanding, the General Administrative Agent agrees
that it will not exercise any rights under the power of attorney provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be continuing. The exercise of remedies pursuant to this Section 7 is subject to the terms of the
Intercreditor Agreement. 
  
 (b) If any Grantor fails to perform
or comply with any of its agreements contained herein, the General Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement. 
  
 (c) The expenses of the General Administrative Agent incurred in connection
with actions undertaken as provided in this Section 7.1, together with interest thereon at a rate per annum equal to the highest rate per annum at which interest would then be payable on any category of past due Loans under the Credit Agreement,
from the date of payment by the General Administrative Agent to the date reimbursed by the relevant Grantor, shall be payable by such Grantor to the General Administrative Agent on demand. 
  
 (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or
cause to be done by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.

  
 7.2 Duty of General Administrative Agent. The General
Administrative Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the New York UCC or otherwise, shall be to deal with it in the same manner as the
General Administrative Agent deals with similar property for its own account. Neither the General Administrative Agent, any Lender nor any of their respective officers, directors, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever with regard to
the Collateral or any part thereof. The powers conferred on the General Administrative Agent and the Lenders hereunder are solely to protect the General Administrative Agent’s and the Lenders’ interests in the Collateral and shall not
impose any duty upon the General Administrative Agent or any Lender to exercise any such powers. The General Administrative Agent and the Lenders shall be accountable only for amounts that they actually receive as a result of the exercise of such
powers, and neither they nor any of their officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct. 
  
 7.3 Execution of Financing Statements. Pursuant to Section 9-402 of
the New York UCC and any other applicable law, each Grantor hereby authorizes the General Administrative Agent to file one or more record or records, including without limitation financing statements, continuation statements, “in lieu”
statements and amendments thereto, relative to all or any part of the Collateral and without the signature of any of the Borrower, 

  

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Holdings, any Subsidiary or such other party hereto, where permitted by law, in all jurisdictions with all filing offices as the General Administrative Agent
may determine, in its sole discretion, are necessary or advisable to perfect or maintain perfection of the security interest granted to the General Administrative Agent hereunder. Such financing statements or other filings may describe the
Collateral in the same manner as described in this Agreement or may contain an indication or description of collateral that describes such property in any other manner described in this Agreement, including without limitation describing such
property as “all assets” or “all personal property.” A carbon, photogenic or other reproduction of this Agreement or any financing statement, continuation statement, “in lieu” statement or amendment hereto, or thereto
covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law. The Borrower, Holdings, any Subsidiary or such other party hereto, as the case may be, shall pay any applicable filing fees and related
expenses. 
  
 7.4 Authority of General Administrative
Agent. Each Grantor acknowledges that the rights and responsibilities of the General Administrative Agent under this Agreement with respect to any action taken by the General Administrative Agent or the exercise or non-exercise by the General
Administrative Agent of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the General Administrative Agent and the Lenders, be governed by the
Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between the General Administrative Agent and the Grantors, the General Administrative Agent shall be conclusively presumed to be
acting as agent for the Lenders with full and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority. 
  
 SECTION 8. MISCELLANEOUS 
  
 8.1 Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 15.1 of the Credit Agreement. 
  
 8.2 Notices. All notices, requests and demands to or upon the General Administrative Agent or any Grantor hereunder shall be effected in the manner
provided for in Section 15.2 of the Credit Agreement; provided that any such notice, request or demand to or upon any Guarantor shall be addressed to such Guarantor at its notice address set forth on Schedule 1. 
  
 8.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the
General Administrative Agent nor any Lender shall by any act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of the General Administrative Agent or any Lender, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise
of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the General 

  

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Administrative Agent or any Lender of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the
General Administrative Agent or such Lender would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided
by law. 
  
 8.4 Enforcement Expenses; Indemnification. (a)
Each Guarantor agrees to pay, or reimburse each Lender and the General Administrative Agent for, all its costs and expenses incurred in collecting against such Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving
any rights under this Agreement and the other Loan Documents to which such Guarantor is a party, including, without limitation, the fees and disbursements of counsel (including the allocated fees and expenses of in-house counsel) to each Lender and
of counsel to the General Administrative Agent. 
  
 (b) Each
Guarantor agrees to pay, and to save the General Administrative Agent and the Lenders harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable
or determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement. 
  
 (c) Each Guarantor agrees to pay, and to save the General Administrative Agent and the Lenders harmless from, any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement to the extent the
Borrower would be required to do so pursuant to Section 15.5 of the Credit Agreement. 
  
 (d) The agreements in this Section shall survive repayment of the Obligations and all other amounts payable under the Credit Agreement and the other Loan Documents. 
  
 8.5 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the Agents and the Lenders and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations under this
Agreement without the prior written consent of the General Administrative Agent. 
  
 8.6 Set-Off. Each Grantor hereby irrevocably authorizes the General Administrative Agent and each Lender at any time and from time to time while a Default under Section 13(a) of the Credit Agreement or an Event
of Default shall have occurred and be continuing, without notice to such Grantor or any other Grantor, any such notice being expressly waived by each Grantor, to set-off and appropriate and apply any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the General
Administrative Agent or such Lender to or for the credit or the account of such Grantor, or any part thereof in such amounts as the General Administrative Agent or such Lender may elect, against and on 

  

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account of the obligations and liabilities of such Grantor to the General Administrative Agent or such Lender hereunder and claims of every nature and
description of the General Administrative Agent or such Lender against such Grantor, in any currency, whether arising hereunder, under the Credit Agreement, any other Loan Document or otherwise, as the General Administrative Agent or such Lender may
elect, whether or not the General Administrative Agent or any Lender has made any demand for payment and although such obligations, liabilities and claims may be contingent or unmatured. The General Administrative Agent and each Lender shall notify
such Grantor promptly of any such set-off and the application made by the General Administrative Agent or such Lender of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and
application. The rights of the General Administrative Agent and each Lender under this Section 8.6 are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the General Administrative Agent or such
Lender may have. 
  
 8.7 Counterparts. This Agreement may
be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 
  
 8.8 Severability. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 8.9 Section Headings. The Section headings used in this Agreement are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof. 
  
 8.10 Integration. This Agreement and the other Loan Documents represent the agreement of the Grantors, the General Administrative Agent and the Lenders with respect to the subject matter hereof and thereof, and there are no promises,
undertakings, representations or warranties by the General Administrative Agent or any Lender relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Loan Documents. 
  
 8.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
  
 8.12 Submission To Jurisdiction; Waivers. Each Grantor hereby irrevocably and unconditionally: 
  
 (a) submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party,
or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate
courts from any thereof; 
  

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 (b) consents that any such action or proceeding may be brought in such courts and waives any objection
that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 
  
 (c) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Grantor at its address referred to in Section 8.2 or at such other address of which the General Administrative
Agent shall have been notified pursuant thereto; 
  
 (d) agrees
that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and 
  
 (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or consequential damages. 
  
 8.13 Acknowledgments. Each Grantor hereby acknowledges that: 
  
 (a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents
to which it is a party; 
  
 (b) neither the General Administrative
Agent nor any Lender has any fiduciary relationship with or duty to any Grantor arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Grantors, on the one hand, and the General
Administrative Agent and Lenders, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and 
  
 (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Grantors and the Lenders. 
  
 8.14
Additional Grantors. Each Subsidiary of the Borrower that is required to become a party to this Agreement pursuant to Section 10.11 of the Credit Agreement shall become a Grantor for all purposes of this Agreement upon execution and delivery
by such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto. 
  
 8.15 Releases. (a) At such time as the Loans and the other Obligations shall have been paid in full, the Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other
than those expressly stated to survive such termination) of the General Administrative Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral
shall revert to the Grantors. At the request and sole expense of any Grantor following any such termination, the General Administrative Agent shall deliver to such Grantor any Collateral held 

  

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by the General Administrative Agent hereunder, and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence
such termination. 
  
 (b) If any of the Collateral shall be sold,
transferred or otherwise disposed of by any Grantor in a transaction permitted by the Credit Agreement, then the General Administrative Agent, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or
other documents reasonably necessary or desirable for the release of the Liens created hereby on such Collateral. At the request and sole expense of the Borrower, a Subsidiary Guarantor shall be released from its obligations hereunder in the event
that all the Capital Stock of such Subsidiary Guarantor shall be sold, transferred or otherwise disposed of in a transaction permitted by the Credit Agreement; provided that the Borrower shall have delivered to the General Administrative
Agent, at least ten Business Days prior to the date of the proposed release, a written request for release identifying the relevant Subsidiary Guarantor and the terms of the sale or other disposition in reasonable detail, including the price thereof
and any expenses in connection therewith, together with a certification by the Borrower stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents. 
  
 8.16 WAIVER OF JURY TRIAL. EACH GRANTOR AND, BY ACCEPTANCE
OF THE BENEFITS HEREOF, THE GENERAL ADMINISTRATIVE AGENT AND EACH LENDER, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN. 
  
 8.17 RELEASE. EACH OF THE GRANTORS HEREBY
ACKNOWLEDGES AND AGREES THAT IT DOES NOT HAVE ANY DEFENSES, COUNTERCLAIMS, OFFSETS, CROSS-COMPLAINTS, CLAIMS OR DEMANDS OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF LIABILITY OF THE BORROWER TO
REPAY THE GENERAL ADMINISTRATIVE AGENT OR ANY LENDER AS PROVIDED IN THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM THE GENERAL ADMINISTRATIVE AGENT OR ANY LENDER. EACH OF THE GRANTORS
HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES THE GENERAL ADMINISTRATIVE AGENT AND THE LENDERS, AND THE GENERAL ADMINISTRATIVE AGENT’S AND EACH LENDER’S PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS FROM ALL
POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS OR EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, EXISTING
ON OR BEFORE THE DATE THIS AGREEMENT IS EXECUTED, WHICH ANY OF THE GRANTORS MAY NOW OR HEREAFTER HAVE AGAINST ANY SUCH AGENT OR LENDER, AND THE GENERAL ADMINISTRATIVE AGENT’S OR SUCH LENDER’S PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND
ASSIGNS, IF ANY, AND IRRESPECTIVE OF 

  

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WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, INCLUDING WITHOUT LIMITATION THE EXERCISE OF ANY RIGHTS
AND REMEDIES UNDER THIS AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION AND EXECUTION OF THIS AGREEMENT. 
  
 8.18 Amendment and Restatement. This Agreement shall constitute an amendment and restatement of all of the terms and conditions of the Existing
Guarantee and Collateral Agreement. The parties hereto acknowledge and agree that (a) this Agreement does not constitute a novation or termination of the Grantors’ or the Guarantors’ obligations under the Existing Guarantee and Collateral
Agreement and related documents; (b) such obligations are in all respects continuing (as amended and restated hereby) with only the terms thereof being modified as provided in this Agreement; and (c) the Liens and security interests as granted under
the Existing Guarantee and Collateral Agreement securing payment of such obligations are in all respects continuing and in full force and effect and secure the payment of the Obligations. 
  
 [Remainder of Page Intentionally Left Blank.] 
  

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

			
	 SMTC CORPORATION

		
	By:	 	 /s/ Linda Millage

	 	 	 Title: Authorized Signatory



  

			
	 HTM HOLDINGS, INC.

		
	By:	 	 /s/ Linda Millage

	 	 	 Title: Authorized Signatory



  

			
	SMTC MANUFACTURING CORPORATION OF TEXAS
		
	By:	 	 /s/ Linda Millage

	 	 	 Title: Authorized Signatory



  

			
	SMTC MANUFACTURING CORPORATION OF CALIFORNIA
		
	By:	 	 /s/ Linda Millage

	 	 	 Title: Authorized Signatory



  

			
	SMTC MANUFACTURING CORPORATION OF WISCONSIN
		
	By:	 	 /s/ Linda Millage

	 	 	 Title: Authorized Signatory



  

 S-1 









			
	 SMTC MEX HOLDINGS, INC.

		
	By:	 	 /s/ Linda Millage

	 	 	 Title: Authorized Signatory



  

			
	SMTC MANUFACTURING CORPORATION OF MASSACHUSETTS
		
	By:	 	 /s/ Linda Millage

	 	 	 Title: Authorized Signatory



  

 S-2