Guarantee and Security Agreement


 Exhibit 4.7 
  
 GUARANTEE AND SECURITY AGREEMENT 
  
  
 dated as of 
  
  
 June 25, 2003 
  
  
 among 
  
  
 XEROX CORPORATION 
  
 THE
SUBSIDIARY GUARANTORS PARTY HERETO 
  
  
 and 
  
  
 JPMorgan Chase Bank 
 as Collateral Agent







 TABLE OF CONTENTS 
  

	 	 	 	  	Page


	 SECTION 1.
	 	 Definitions.
	  	2
	 SECTION 2.
	 	 Guarantees by Guarantors.
	  	13
	 SECTION 3.
	 	 Representations and Warranties.
	  	17
	 SECTION 4.
	 	 The Security Interests.
	  	20
	 SECTION 5.
	 	 Further Assurances; Covenants.
	  	22
	 SECTION 6.
	 	 Recordable Intellectual Property.
	  	24
	 SECTION 7.
	 	 Pledged Securities.
	  	25
	 SECTION 8.
	 	 Collateral Account.
	  	29
	 SECTION 9.
	 	 Transfer of Record Ownership.
	  	31
	 SECTION 10.
	 	 Right to Vote Securities.
	  	31
	 SECTION 11.
	 	 General Authority.
	  	32
	 SECTION 12.
	 	 Remedies upon Actionable Event of Default or Acceleration; Limitation on Rights and Remedies of Hedging Secured
Parties.
	  	33
	 SECTION 13.
	 	 Limitation on Duty of Collateral Agent in Respect of Collateral.
	  	35
	 SECTION 14.
	 	 Application of Proceeds.
	  	36
	 SECTION 15.
	 	 Concerning the Collateral Agent.
	  	39
	 SECTION 16.
	 	 Appointment of Co-Collateral Agents.
	  	40
	 SECTION 17.
	 	 Expenses.
	  	40
	 SECTION 18.
	 	 Taxes.
	  	41
	 SECTION 19.
	 	 Termination of Security Interests; Reinstatement of Security Interests.
	  	42
	 SECTION 20.
	 	 Additional Guarantors and Lien Grantors.
	  	45
	 SECTION 21.
	 	 Additional Secured Obligations.
	  	45
	 SECTION 22.
	 	 Notices.
	  	45
	 SECTION 23.
	 	 Waivers; Non-Exclusive Remedies.
	  	46
	 SECTION 24.
	 	 Successors and Assigns.
	  	47
	 SECTION 25.
	 	 Changes in Writing.
	  	47
	 SECTION 26.
	 	 New York Law.
	  	47
	 SECTION 27.
	 	 WAIVER OF JURY TRIAL.
	  	48
	 SECTION 28.
	 	 Severability.
	  	48

  

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	 SCHEDULES:

	    	 
	 Schedule 1
	    	 Pledged Securities

	 Schedule 2
	    	 Terms of Subordination

		
	 EXHIBITS:

	    	 
	 Exhibit A
	    	 Perfection Certificate

	 Exhibit B
	    	 Form of Issuer Control Agreement

	 Exhibit C
	    	 Guarantee and Security Agreement Supplement

	 Exhibit D
	    	 Copyright Security Agreement

	 Exhibit E
	    	 Patent Security Agreement

	 Exhibit F
	    	 Trademark Security Agreement


  

 ii 







 GUARANTEE AND SECURITY AGREEMENT 
  
 AGREEMENT dated as of June 25, 2003 (the “Agreement”) among XEROX CORPORATION (“Xerox”),
the SUBSIDIARY GUARANTORS party hereto and JPMORGAN CHASE BANK, as Collateral Agent (with its successors, the “Collateral Agent”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Xerox, the Overseas Borrowers (such term and other capitalized terms are defined in Section 1 below), certain financial institutions (each, a
“Lender” and collectively, the “Lenders”), JPMorgan Chase Bank, as Administrative Agent, Collateral Agent and LC Issuing Bank, Deutsche Bank Securities Inc., as Syndication Agent and Citicorp North America, Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and UBS Securities LLC, as Co-Documentation Agents, are parties to a Credit Agreement dated as of June 19, 2003 (as the same has been and may be amended from time to time, the “Credit
Agreement”); 
  
 WHEREAS, Xerox has agreed to secure (i)
its CA Secured Obligations, (ii) the XCFI Secured Obligations and (iii) on a junior basis, its Hedging Secured Obligations, by granting security interests on its assets which constitute Collateral to the Collateral Agent as provided in the Security
Documents; 
  
 WHEREAS, Xerox is willing to guarantee the Overseas
CA Secured Obligations and to secure its guarantee thereof by granting security interests on its assets which constitute Collateral to the Collateral Agent as provided in the Security Documents; 
  
 WHEREAS, Xerox is willing to cause each Subsidiary Guarantor to, and each
Subsidiary Guarantor is willing to, guarantee the foregoing obligations of Xerox and the Overseas Borrowers and, in the case of each Secured Subsidiary Guarantor, to secure its guarantee thereof and its Hedging Secured Obligations by granting
security interests on its assets which constitute Collateral to the Collateral Agent as provided in the Security Documents; 
  
 WHEREAS, the Lenders and the LC Issuing Bank are not willing to make loans or issue or participate in letters of credit under the Credit Agreement, unless
(i) the foregoing obligations of the Borrowers are secured and guaranteed as described above and (ii) each guarantee thereof by Xerox or a Secured Subsidiary Guarantor is secured by Liens on assets of the relevant Guarantor as provided in the
Security Documents; and 






 WHEREAS, it is a condition to the effectiveness of the Credit Agreement that the parties hereto enter
into this Agreement to provide the guarantees and security interests provided herein; 
  
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 SECTION 1. Definitions.  
  
 (a) Terms Defined in Credit Agreement. Terms defined in the Credit
Agreement and not otherwise defined in subsection (b) or (c) of this Section 1 have, as used herein, the respective meanings provided for therein. 
  
 (b) Terms Defined in UCC. As used herein, each of the following terms has the meaning specified in the UCC: 
  

	 Term

	  	 UCC


	 Account
	  	9-102
	 Authenticate
	  	9-102
	 Certificated Security
	  	8-102
	 Chattel Paper
	  	9-102
	 Document
	  	9-102
	 Entitlement Holder
	  	8-102
	 Equipment
	  	9-102
	 Financial Asset
	  	8-102 & 103
	 General Intangibles
	  	9-102
	 Instrument
	  	9-102
	 Inventory
	  	9-102
	 Record
	  	9-102
	 Securities Intermediary
	  	8-102
	 Security
	  	8-102 & 103
	 Security Entitlement
	  	8-102
	 Supporting Obligations
	  	9-102
	 Uncertificated Security
	  	8-102

  
 (c) Additional
Definitions. The following additional terms, as used herein, have the following meanings: 
  
 “Actionable Event of Default” means an Event of Default specified in clause (a), (b), (h), (i) or (j) of Section 7.01 of the Credit Agreement. 
  
 “CA Percentage” means, at any time, with respect to any
Restricted Collateral, the portion, expressed as a percentage, that the amount of outstanding 

  

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CA Secured Obligations represents of the sum of the aggregate amount of all outstanding XCFI Secured Obligations and CA Secured Obligations at such time.

  
 “CA Permitted Liens” means the Security
Interests and Liens on the Collateral permitted to be created, to be assumed or to exist pursuant to Section 6.01 of the Credit Agreement. 
  
 “CA Secured Obligations” means (a) all principal of and premium and interest (including, without limitation, any interest
(“Post-Petition Interest”) which accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of any Borrower (or would accrue but for the operation of applicable
bankruptcy or insolvency laws), whether or not allowed or allowable as a claim in any such proceeding) on any Loan outstanding from time to time or any LC Reimbursement Obligation under, or any promissory note issued pursuant to, the Credit
Agreement and (b) all other amounts payable by any Borrower under the Credit Agreement or under any other Loan Document (as the same may hereafter be amended, restated, supplemented or otherwise modified from time to time) (including any
Post-Petition Interest with respect to such amounts). 
  
 “Collateral” means all property, whether now owned or hereafter acquired, on which a Lien is granted or purports to be granted to the Collateral Agent pursuant to the Security Documents. When used with respect to a specific
Lien Grantor, the term “Collateral” means all its property on which such a Lien is granted or purports to be granted. 
  
 “Collateral Account” has the meaning specified in Section 8. 
  
 “Contingent CA Secured Obligation” means, at any time, any CA Secured Obligation (or portion thereof) that
is contingent in nature at such time, including any CA Secured Obligation that is: 
  
 (i) an obligation to reimburse a Lender for drawings not yet made under a Letter of Credit issued by it; 
  
 (ii) any other obligation (including any guarantee) that is
contingent in nature at such time; or 
  
 (iii)
an obligation to provide collateral to secure any of the foregoing types of obligations. 
  
 “Contingent Hedging Secured Obligation” means, at any time, any Hedging Secured Obligation that is contingent in nature at such time, including 

  

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any obligation under a Designated Hedging Agreement to make payments that cannot be quantified at such time. 
  
 “Control”, when used with respect to any Security or
Security Entitlement, has the meaning specified in UCC Section 8-106. 
  
 “Copyright License” means any agreement now or hereafter in existence granting to any Lien Grantor, or pursuant to which any Lien Grantor grants to any other Person, any right to use, copy, reproduce, distribute, prepare
derivative works, display or publish any records or other materials on which a Copyright is in existence or may come into existence, including any agreement identified in Schedule 1 to any Copyright Security Agreement. 
  
 “Copyright Security Agreement” means a Copyright Security
Agreement, substantially in the form of Exhibit D, executed and delivered by a Lien Grantor in favor of the Collateral Agent for the benefit of the Secured Parties. 
  
 “Copyrights” means all the following: (i) all copyrights under the laws of the United States or any other
country (whether or not the underlying works of authorship have been published), all registrations and recordings thereof, all copyrightable works of authorship (whether or not published) and all applications for copyrights under the laws of the
United States or any other country, including registrations, recordings and applications in the United States Copyright Office or in any similar office or agency of the United States, any State thereof or any other country or any political
subdivision thereof, including those described in Schedule 1 to any Copyright Security Agreement, (ii) all renewals of any of the foregoing, (iii) all claims for, and rights to sue for, past or future infringements of any of the foregoing, and (iv)
all income, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past or future infringements thereof. 
  
 “Covered Taxes” has the meaning specified in Section 18(a). 
  
 “Designated Hedging Agreement” has the meaning specified in
Section 21. 
  
 “Equity Interest” means (i) in
the case of a corporation, any shares of its capital stock, (ii) in the case of a limited liability company, an LLC Interest therein, (iii) in the case of a partnership, any Partnership Interest therein, (iv) in the case of any other business
entity, any participation or other interest in the equity or profits thereof or (v) any warrant, option or other right to acquire any Equity Interest described in this definition. 
  

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 “Guarantee” means, with respect to each Subsidiary Guarantor, its Subsidiary Guarantee,
and with respect to Xerox, the Xerox Guarantee. 
  
 “Guarantee and Security Agreement Supplement” means a Guarantee and Security Agreement Supplement, substantially in the form of Exhibit C, signed and delivered to the Collateral Agent for the purpose of adding a Domestic
Subsidiary as a party hereto pursuant to Section 20 and/or adding additional property to the Collateral. 
  
 “Guarantors” means Xerox and the Subsidiary Guarantors. 
  
 “Hedging Secured Obligations” means, (i) with respect to any Secured Subsidiary Guarantor all obligations
of such Secured Subsidiary Guarantor, whether as principal or as guarantor, under any Designated Hedging Agreement and any renewals or extensions thereof and (ii) with respect to Xerox, (x) all obligations of Xerox, whether as principal or as
guarantor, and (y) all obligations of any Subsidiary (other than a Secured Subsidiary Guarantor) to the extent Xerox does not otherwise guarantee such obligations, each under any Designated Hedging Agreement and any renewals or extensions thereof.

  
 “Hedging Secured Parties” means the Lenders
and their Affiliates that are party to a Designated Hedging Agreement. 
  
 “Intellectual Property” means (i) Patents, (ii) Patent Licenses, (iii) Trademarks, (iv) Trademark Licenses, (v) Copyrights, (vi) Copyright Licenses, (vii) confidential information, (viii) proprietary technology, (ix) trade
secrets, (x) domain names and (xi) mask works, and all rights in or under any of the foregoing. 
  
 “Intellectual Property Filing” means (i) the filing of the applicable Patent Security Agreement or Trademark Security Agreement with the
United States Patent and Trademark Office, together with an appropriately completed recordation form, and (ii) the filing of the applicable Copyright Security Agreement with the United States Copyright Office, together with an appropriately
completed recordation form, in each case sufficient to record the Security Interests granted to the Collateral Agent in Recordable Intellectual Property. 
  
 “Intellectual Property Security Agreement” means a Copyright Security Agreement, a Patent Security Agreement or a Trademark Security
Agreement. 
  
 “Issuer Control Agreement” means
an Issuer Control Agreement substantially in the form of Exhibit B (with any changes that the Collateral Agent shall have approved). 
  

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 “Lien Grantors” means Xerox and the Secured Subsidiary Guarantors. 
  
 “Liquid Investments” means Permitted Investments, that
mature within 30 days after they are acquired by the Collateral Agent. 
  
 “LLC Interest” means a membership interest or similar interest in a limited liability company. 
  
 “Non-Contingent CA Secured Obligation” means at any time any CA Secured Obligation (or portion thereof) that is not a Contingent CA
Secured Obligation at such time. 
  
 “Non-Contingent
Hedging Secured Obligation” means, at any time, any Hedging Secured Obligation (or portion thereof) that is not a Contingent Hedging Secured Obligation at such time. 
  
 “Overseas CA Secured Obligations” means the CA Secured Obligations of any Overseas Borrower. 
  
 “Original Lien Grantor” means any Lien Grantor that grants a
Lien on any of its assets hereunder on the Effective Date. 
  
 “Partnership Interest” means a partnership interest, whether general or limited. 
  
 “Patent License” means any agreement now or hereafter in existence granting to any Lien Grantor, or pursuant to which any Lien Grantor
grants to any other Person, any right with respect to any Patent or any invention now or hereafter in existence, whether patentable or not, whether a patent or application for patent is in existence on such invention or not, and whether a patent or
application for patent on such invention may come into existence or not, including any agreement identified in Schedule 1 to any Patent Security Agreement. 
  
 “Patents” means (i) all letters patent and design letters patent of the United States or any other country and all applications for
letters patent or design letters patent of the United States or any other country, including applications 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, including those described in Schedule 1 to any Patent Security Agreement, (ii) all reissues, divisions, continuations, continuations in part, revisions and extensions of any of the foregoing, (iii) all
claims for, and rights to sue for, past or future infringements of any of the foregoing and (iv) all income, royalties, damages and payments now or hereafter due or payable with 

  

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respect to any of the foregoing, including damages and payments for past or future infringements thereof. 
  
 “Patent Security Agreement” means a Patent Security
Agreement, substantially in the form of Exhibit E, executed and delivered by a Lien Grantor in favor of the Collateral Agent for the benefit of the Secured Parties. 
  
 “Perfection Certificate” a certificate substantially in the form of Exhibit A hereto, completed and
supplemented with the schedules and attachments contemplated thereby to the satisfaction of the Collateral Agent, and duly executed by an executive officer of Xerox. 
  
 “Permitted Encumbrances” means: 
  
 (i) any legally valid prohibitions on granting a security interest to the Collateral Agent as part of the
Collateral in the Equity Interests of any Qualified Business Effectiveness Program Subsidiary pursuant to any agreement entered into in connection with the Business Effectiveness Program with or for the benefit of any other Person owning or
acquiring Equity Interests in such a Subsidiary, to the extent the Qualification Requirements have been met with respect to such prohibitions; 
  
 (ii) (A) any legally valid contractual restrictions in connection with the Business Effectiveness Program that do not prohibit the
granting of a security interest in any Xerox Company’s Equity Interests in a Business Effectiveness Program Subsidiary to the Collateral Agent as part of the Collateral or (B) any legally valid contractual restrictions that do not prohibit the
granting of a security interest in any Xerox Company’s Equity Interests in any other Subsidiary that is not a Xerox Group Company, but, in each case, that otherwise restrict the Transfer by the Collateral Agent of, or other rights (including
voting rights) and remedies of the Collateral Agent with respect to, such Equity Interests as a consequence of restrictions imposed on the owner of such Equity Interests (including put and call arrangements, rights of first refusal, right of first
offer, tag-along rights and other similar rights to which such Equity Interest may be subject); 
  
 (iii) any legally valid and customary contractual restrictions on granting a security interest to the Collateral Agent as part of the
Collateral in the Equity Interests of any Finance SPE, any Third Party Vendor Financing Subsidiary or any Permitted Joint Venture created in connection with any Qualified Receivables Transaction or in connection with the Third Party Vendor Financing
Program or that otherwise restrict the Transfer by the Collateral Agent of, or other rights (including voting 

  

 7 







 
rights) and remedies of the Collateral Agent with respect to, such Collateral; 
  
 (iv) any legally valid contractual restrictions existing on the date hereof or on any Reinstatement Date on
granting a security interest to the Collateral Agent as part of the Collateral in any Equity Interest or General Intangible owned by any Original Lien Grantor, or any legally valid contractual restrictions existing on the date hereof that otherwise
restrict the Transfer by the Collateral Agent of, or other rights (including voting rights) and remedies of the Collateral Agent with respect to, such Equity Interest or General Intangible; 
  
 (v) any legally valid contractual restrictions permitted by
Section 6.11 of the Credit Agreement on the grant of a security interest to the Collateral Agent in any of the Collateral, or on the Transfer by the Collateral Agent of any Collateral (including put and call arrangements, rights of first refusal,
right of first offer, tag-along rights and other similar rights to which any Equity Interest may be subject); or 
  
 (vi) the terms of any legally valid provision of Applicable Law which (A) prohibits the creation of a security interest in any property or
asset, (B) requires the consent of any third party to the creation of a security interest in any property or asset, (C) gives rise to any right of termination (including, without limitation, the abandonment, invalidation or rendering unenforceable
any right, title or interest in any Intellectual Property) or default remedy by reason of the creation of a security interest in any property or asset or (D) does not prohibit the creation of a security interest in any property or asset but
otherwise restricts the Transfer by the Collateral Agent of any such property or asset or any other rights and remedies of the Collateral Agent. 
  
 “Personal Property Collateral” means all property included in the Collateral except Real Property Collateral. 
  
 “Pledged”, when used in conjunction with any type of asset,
means at any time an asset of such type that is included (or that creates rights that are included) in the Collateral at such time. For example, “Pledged Security” means a Security that is included in the Collateral at such time.

  
 “Proceeds” means all proceeds of, and all
other profits, products, rents or receipts, in whatever form, arising from the collection, sale, lease, exchange, assignment, licensing or other disposition of, or other realization upon, any Collateral, including without limitation all claims of
the relevant Lien Grantor against third parties for loss of, damage to or destruction of, or for proceeds 

  

 8 







 
payable under, or unearned premiums with respect to, policies of insurance in respect of, any Collateral, and any condemnation or requisition payments with
respect to any Collateral, in each case whether now existing or hereafter arising. 
  
 “Real Property Collateral” means all real property included in the Collateral. 
  
 “Recordable Intellectual Property” means Intellectual Property the transfer of which is required to be recorded in the United States
Patent and Trademark Office or the United States Copyright Office in order to be effective against subsequent third party transferees, provided, however, that the following items shall not be considered “Recordable Intellectual
Property” hereunder: (i) Patents which are less than one year from their final expiration date, (ii) Intellectual Property licenses, (iii) unregistered Copyrights and (iv) Copyright applications. 
  
 “Reinstatement Date” means the date upon which the Ratings
Condition is no longer satisfied and the Security Interests are reinstated. 
  
 “Release Conditions” means the following conditions for releasing all the Guarantees and terminating all the Security Interests: 
  
 (i) all Revolving Commitments under the Credit Agreement shall have expired or been terminated; 

 
 (ii) all Non-Contingent CA Secured Obligations shall have
been paid in full; and 
  
 (iii) no Contingent CA
Secured Obligation shall remain outstanding; 
  
 provided that the
condition in clause (iii) shall not apply to outstanding Letters of Credit if (x) no Event of Default has occurred and is continuing and (y) Xerox or the applicable Borrower has granted to the Collateral Agent, for the benefit of the Revolving
Lenders (or, if the obligations of the Revolving Lenders to reimburse the applicable LC Issuing Banks have been terminated, to such LC Issuing Banks), a security interest in Liquid Investments (or causes a bank acceptable to the Required Revolving
Lenders or such LC Issuing Banks, as the case may be, to issue a letter of credit naming the Collateral Agent or such LC Issuing Banks as beneficiary) in an amount at least equal to 105% of the LC Exposure (plus any accrued and unpaid interest
thereon) as of the date of such termination, on terms and conditions and pursuant to documentation reasonably satisfactory to the Required Revolving Lenders or such LC Issuing Banks, as the case may be. 
  

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 “Restricted Collateral” means the Collateral of Xerox or any Restricted Secured
Subsidiary Guarantor (and any Proceeds of such Collateral shall also constitute “Restricted Collateral”). 
  
 “Restricted Secured Subsidiary Guarantor” means a Secured Subsidiary Guarantor that is a “Specified Subsidiary” under the High
Yield Indenture or that falls within an equivalent category under any other Reference Indenture. 
  
 “Secured Agreement”, when used with respect to any Secured Obligation, refers collectively to each instrument, agreement or other
document that sets forth obligations of Xerox, obligations of the Overseas Borrowers, obligations of a Guarantor and/or rights of the holder with respect to such Secured Obligation. 
  
 “Secured Guarantee” means, with respect to each Secured Subsidiary Guarantor, its Subsidiary Guarantee, and
with respect to Xerox, the Xerox Guarantee. 
  
 “Secured
Obligations” means the CA Secured Obligations, the Hedging Secured Obligations and the XCFI Secured Obligations. 
  
 “Secured Parties” means (i) with respect to the CA Secured Obligations, the Agents, the Lenders and the LC Issuing Banks, (ii) with
respect to the XCFI Secured Obligations, the Trustee under each of the XCFI Indentures (and any successor Trustee thereunder) for the benefit of the holders of the XCFI Debentures and (iii) with respect to the Hedging Secured Obligations, the
Hedging Secured Parties. 
  
 “Secured Party
Jurisdiction” means, with respect to any Secured Party: 
  
 (i) the jurisdiction under the laws of which such Secured Party is organized or in which its principal office is located, 
  
 (ii) the jurisdiction in which its applicable lending office is located, and 
  
 (iii) any jurisdiction in which it is treated as resident
for purposes of income or franchise taxes imposed on (or measured by) net income (or is otherwise subject to such taxes) by reason of its business activities and operations that are unrelated to the Credit Agreement and the loans thereunder.

  
 “Secured Subsidiary Guarantee” means, with
respect to each Secured Subsidiary Guarantor, its Subsidiary Guarantee. 
  

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 “Secured Subsidiary Guarantor” means a Subsidiary Guarantor other than XCC. 

 
 “Secured Subsidiary Obligations” means, with respect to
any Secured Subsidiary Guarantor, (i) the Hedging Secured Obligations of such Secured Subsidiary Guarantor and (ii) such Secured Subsidiary’s Secured Subsidiary Guarantee. 
  
 “Security Interests” means the security interests in the Collateral granted under the Security Documents
securing the Secured Obligations. 
  
 “State and Local
Government Receivables” means Accounts (including without limitation, proceeds of Inventory to the extent it also constitutes an Account, and Chattel Paper, Documents and Instruments and proceeds thereof) that are owed from state and local
governments and their subdivisions within the United States or its possessions or territories. 
  
 “Subsidiary Guarantee” means, with respect to each Subsidiary Guarantor, its guarantee of the Secured Obligations under Section 2 hereof or Section 1 of a Guarantee and Security Agreement Supplement.

  
 “Subsidiary Guarantors” means each Subsidiary
listed on the signature pages hereof under the caption “Guarantors” and each Subsidiary that shall, at any time after the date hereof, become a “Guarantor” pursuant to Section 20. 
  
 “Third Party Vendor Financing Assets” means Equipment,
Inventory and related assets that are transferred to any Person under the Third Party Vendor Financing Program. 
  
 “Trademark License” means any agreement now or hereafter in existence granting to any Lien Grantor, or pursuant to which any Lien Grantor
grants to any other Person, any right to use any Trademark, including any agreement identified in Schedule 1 to any Trademark Security Agreement. 
  
 “Trademarks” means: (i) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade
styles, service marks, logos, brand names, trade dress, prints and labels on which any of the foregoing have appeared or appear, package and other designs, and all other source or business identifiers, and all general intangibles of like nature, and
the rights in any of the foregoing which arise under applicable law, (ii) the goodwill of the business symbolized thereby or associated therewith, (iii) all registrations and applications in connection therewith, including registrations and
applications 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 

  

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subdivision thereof, including those described in Schedule 1 to any Trademark Security Agreement, (iv) all renewals of any of the foregoing, (v) all claims
for, and rights to sue for, past or future infringements of any of the foregoing and (vi) all income, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past or
future infringements thereof. 
  
 “Trademark Security
Agreement” means a Trademark Security Agreement, substantially in the form of Exhibit F, executed and delivered by a Lien Grantor in favor of the Collateral Agent for the benefit of the Secured Parties. 
  
 “Transferred Intellectual Property” means any Intellectual
Property (including without limitation, proceeds thereof) that was Transferred as permitted by the Credit Agreement. 
  
 “Transferred Receivables” means Receivables that were or are hereafter Transferred in connection with a Qualified Receivables Transaction
or the Third Party Vendor Financing Program. 
  
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York, provided that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection
or the priority of any Security Interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority. 
  
 “XCC Indentures” means any Indenture or other agreement governing Capital Markets Debt of XCC. 
  
 “XCC Senior Obligations” means XCC’s obligations under
its Capital Markets Debt outstanding as of the Effective Date. 
  
 “XCC Subordinated Obligations” means XCC’s obligations under its Subsidiary Guarantee. 
  
 “XCFI Indentures” means (a) that certain Trust Indenture dated as of December 15, 1986, as supplemented and amended by the First through
Fourth Supplemental Trust Indentures, among Xerox Canada Finance Inc., Xerox Canada Inc., Xerox Canada Holdings Inc. and National Trust Company, as Trustee and (b) that certain Trust Indenture dated as of October 27, 1987, as supplemented and
amended by the First through Fourth Supplemental Trust Indentures, among 

  

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Xerox Canada Finance Inc., Xerox Canada Inc., Xerox Canada Holdings Inc. and National Trust Company, as Trustee, in each case as amended, modified or
supplemented from time to time. 
  
 “XCFI
Percentage” means, at any time, with respect to any Restricted Collateral, the portion, expressed as a percentage, that the amount of outstanding XCFI Secured Obligations represents of the sum of the aggregate amount of all outstanding XCFI
Secured Obligations and CA Secured Obligations at such time. 
  
 “XCFI Secured Obligations” means the obligations of Xerox under the XCFI Indentures and shall include all amounts outstanding under the XCFI Debentures and accrued and unpaid interest and other amounts owing with respect
thereto. 
  
 “Xerox Secured Obligations” means
(i) the Secured Obligations of Xerox and (ii) the Xerox Guarantee. 
  
 “Xerox Guarantee” means Xerox’s guarantee of the Overseas CA Secured Obligations and the Hedging Secured Obligations under Section 2 hereof. 
  
 SECTION 2. Guarantees by Guarantors.  
  
 (a) Guarantees. (i) Xerox unconditionally guarantees the full and punctual payment of each Overseas CA Secured
Obligation when due (whether at stated maturity, upon acceleration or otherwise). If an Overseas Borrower fails to pay any Overseas CA Secured Obligation punctually when due, Xerox agrees that it will forthwith on demand pay the amount not so paid
at the place and in the manner specified in the relevant Loan Document. 
  
 (ii) Xerox unconditionally guarantees the full and punctual payment of each Hedging Secured Obligation described in clause (ii)(y) of the definition of such term when due. If a Subsidiary fails to pay any Hedging
Secured Obligation punctually when due, Xerox agrees that it will forthwith on demand pay the amount not so paid at the place and in the manner specified in the relevant Designated Hedging Agreement. 
  
 (iii) Each Subsidiary Guarantor unconditionally guarantees
the full and punctual payment of each CA Secured Obligation, each XCFI Secured Obligation and each of Xerox’s Hedging Secured Obligations when due (whether at stated maturity, upon acceleration or otherwise). If Xerox fails to pay any of its CA
Secured Obligations, any XCFI Secured Obligation or any of its Hedging Secured Obligations punctually when due, or any Overseas Borrower fails to pay any of its CA Secured Obligations punctually when due, each Subsidiary Guarantor agrees that it


  

 13 







 
will forthwith on demand pay the amount not so paid at the place and in the manner specified in the relevant Secured Agreement, provided, however,
that notwithstanding the foregoing, the XCFI Secured Obligations are only guaranteed by each Restricted Secured Subsidiary Guarantor and no holder of any XCFI Secured Obligation shall have any claim against, or Lien on any asset of, XCC or any
Secured Subsidiary Guarantor that is not a Restricted Secured Subsidiary Guarantor by virtue of this Agreement, provided, further, notwithstanding anything to the contrary contained herein, the liability and obligation of each Restricted
Secured Subsidiary Guarantor under this Section 2(a)(iii) with respect to the XCFI Secured Obligations (but not any CA Secured Obligation) shall not be enforced by any action or proceeding wherein damages or any money judgment shall be sought
against such Restricted Secured Subsidiary Guarantor, except a foreclosure by the Collateral Agent upon the Restricted Collateral of such Restricted Secured Subsidiary Guarantor, and any judgment in any such foreclosure action shall be enforceable
by the Collateral Agent against such Restricted Collateral, only to the extent of the XCFI Percentage of such Restricted Secured Subsidiary Guarantor’s interest in such Restricted Collateral, and the guarantee extended hereby for the benefit of
any holder of XCFI Secured Obligations is provided to such holder under the express condition that the Collateral Agent has no right to sue for, seek or demand any deficiency judgment against any Restricted Secured Subsidiary Guarantor with respect
to the XCFI Secured Obligations (but not any CA Secured Obligation), in any such foreclosure action under or by reason of, or in connection with, this Agreement or otherwise with respect to such guarantee. The obligations of each Subsidiary
Guarantor under this Section 2(a)(iii) shall be limited as provided in Section 2(i) below and, in the case of XCC only, subordinated as provided in Section 2(j) below. 
  
 (b) Guarantees Unconditional. The obligations of each Guarantor under its Guarantee shall be unconditional and
absolute and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 
  
 (i) any extension, renewal, settlement, compromise, waiver or release in respect of any obligation of Xerox, any Overseas Borrower, any
Subsidiary Guarantor or any other Person under any Secured Agreement, by operation of law or otherwise; 
  
 (ii) any modification or amendment of or supplement to any Secured Agreement; 
  

 14 







 (iii) any release, impairment, non-perfection or invalidity of any direct or indirect
security for any obligation of Xerox, any Overseas Borrower, any Subsidiary Guarantor or any other Person under any Secured Agreement; 
  
 (iv) any change in the corporate existence, structure or ownership of Xerox, any Overseas Borrower, any Subsidiary Guarantor or any other
Person or any of their respective subsidiaries, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting Xerox, any Overseas Borrower, any Subsidiary Guarantor or any other Person or any of their assets or any resulting
release or discharge of any obligation of Xerox, any Overseas Borrower, any Subsidiary Guarantor or any other Person under any Secured Agreement; 
  
 (v) the existence of any claim, set-off or other right that such Guarantor may have at any time against Xerox, any Overseas Borrower, any
Subsidiary Guarantor, any Secured Party or any other Person, whether in connection with any Secured Agreement or any unrelated transactions, provided that nothing herein shall prevent the assertion of any such claim by separate suit or
compulsory counterclaim; 
  
 (vi) any invalidity
or unenforceability relating to or against Xerox, any Overseas Borrower, any Subsidiary Guarantor or any other Person for any reason of any Secured Agreement, or any provision of applicable law or regulation purporting to prohibit the payment of any
Secured Obligation by Xerox, any Overseas Borrower, any Subsidiary Guarantor or any other Person; or 
  
 (vii) any other act or omission to act or delay of any kind by Xerox, any Overseas Borrower, any Subsidiary Guarantor, any other party to
any Secured Agreement, any Secured Party or any other Person, or any other circumstance whatsoever that might, but for the provisions of this clause (vii), constitute a legal or equitable discharge of or defense to any obligation of any Guarantor
hereunder. 
  
 (c) Release of Guarantees. The Guarantees
will be released in accordance with Sections 9.02 and 9.03 of the Credit Agreement, as the case may be. In case of any release pursuant to Section 9.03 of the Credit Agreement, the Collateral Agent shall be fully protected in relying on a
certificate of Xerox stating that the release of the Guarantee is in accordance with and permitted by the terms of Section 9.03 of the Credit Agreement. If at any time any payment of a CA Secured Obligation or an XCFI Secured Obligation is rescinded
or must be otherwise restored or returned upon the insolvency or receivership of Xerox, any Overseas Borrower or any other Person, the relevant Guarantee or Guarantees 

  

 15 







 
shall be reinstated with respect thereto as though such payment had been due but not made at such time. 
  
 (d) Waiver by Guarantors. Each Guarantor irrevocably waives acceptance
hereof, presentment, demand, protest and any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against Xerox, any Overseas Borrower, any Subsidiary Guarantor or any other Person.

  
 (e) Subrogation. A Guarantor that makes a payment with
respect to a Secured Obligation hereunder shall be subrogated to the rights of the payee against Xerox or the relevant Overseas Borrower with respect to such payment, provided that no Guarantor shall enforce any payment by way of subrogation
against Xerox or the relevant Overseas Borrower, or by reason of contribution against any other guarantor of such Secured Obligation, until all the Release Conditions have been satisfied. 
  
 (f) Stay of Acceleration. If acceleration of the time for payment of any Secured Obligation by Xerox, any Overseas
Borrower or any Secured Subsidiary Guarantor is stayed by reason of the insolvency or receivership of Xerox, the relevant Overseas Borrower or any Secured Subsidiary Guarantor or otherwise, all Secured Obligations otherwise subject to acceleration
under the terms of any Secured Agreement shall nonetheless be payable by the relevant Guarantors hereunder forthwith on demand by the Collateral Agent. 
  
 (g) Right of Set-Off. If any CA Secured Obligation or any XCFI Secured Obligation is not paid promptly when due, each of the Secured Parties and
their respective Affiliates is authorized, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such
Secured Party or Affiliate to or for the credit or the account of Xerox or any Secured Subsidiary Guarantor against the obligations of such Guarantor under its Guarantee, irrespective of whether or not such Secured Party shall have made any demand
thereunder and although such deposits and other obligations may be unmatured. The rights of each Secured Party under this Section 2(g) are in addition to all other rights and remedies (including other rights of setoff) that such Secured Party may
have. 
  
 (h) Continuing Guarantee. Each Guarantee is a
continuing guarantee, shall be binding on the relevant Guarantor and its successors and assigns, and shall be enforceable by the Collateral Agent or the Secured Parties. If all or part of any Secured Party’s interest in any Secured Obligation
is assigned or otherwise transferred, the transferor’s rights under each Guarantee, to the extent applicable 

  

 16 







 
to the obligation so transferred, shall automatically be transferred with such obligation. 
  
 (i) Limitation on Obligations of Subsidiary Guarantor. The obligations of each Subsidiary Guarantor under its
Subsidiary Guarantee shall be limited to an aggregate amount equal to the largest amount that would not render such Subsidiary Guarantee subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provisions of
applicable law. 
  
 (j) XCC Guarantee Subordinated. The
obligations of XCC under its Subsidiary Guarantee shall be subordinated to the XCC Senior Obligations on the terms set forth in Schedule 2. 
  
 SECTION 3. Representations and Warranties.  
  
 Each Lien Grantor represents and warrants as follows: 
  
 (a) Such Lien Grantor is duly organized, validly existing and in good standing under the laws of the jurisdiction identified as its jurisdiction of
organization in the Perfection Certificate. 
  
 (b) The execution
and delivery of this Agreement by such Lien Grantor and the performance by it of its obligations under this Agreement (i) are within its corporate or other powers, (ii) have been duly authorized by all necessary corporate or other action, (iii)
require no consent or approval of, registration or filing with, any Governmental Authority except (A) such as have been obtained or made and are in full force and effect and (B) filings, recordings and registrations necessary to perfect the Security
Interests, (iv) do not violate any Applicable Law or its organizational documents, (v) do not violate any order of any Governmental Authority except in any such case where such violation could not reasonably be expected to result in a Material
Adverse Effect, (vi) do not violate or result in a default under any indenture or material agreement or other instrument binding upon it and (vii) do not result in any Lien on any of its properties other than the Security Interests. 
  
 (c) This Agreement constitutes a valid and binding agreement of such Lien
Grantor, enforceable in accordance with its terms, except as limited by (A) applicable bankruptcy, insolvency, fraudulent conveyance or other similar laws affecting creditors’ rights generally and (B) general principles of equity, regardless of
whether considered in a proceeding at equity or at law. 
  
 (d)
Schedule 1 sets forth the name and jurisdiction of organization of, and the ownership interest (including percentage owned and number of shares or units) of such Lien Grantor in the Securities that are Equity Interests issued by 

  

 17 







 
each of such Lien Grantor’s direct Domestic Subsidiaries and direct Material Foreign Subsidiaries as of the Effective Date. As of the Effective Date,
such Lien Grantor holds all such Securities directly (i.e., not through a subsidiary, a Securities Intermediary or any other Person). 
  
 (e) All Pledged Securities owned by such Lien Grantor are owned by it free and clear of any Lien other than (i) the Security Interests, (ii) the Permitted
Encumbrances, (iii) Permitted Third Party Liens and, (iv) any tax liens and judgment liens that are CA Permitted Liens. None of such Pledged Securities is subject to any option to purchase or similar right of any Person other than the Permitted
Encumbrances. Other than the Permitted Encumbrances, such Lien Grantor is not and will not become a party to or otherwise bound by any agreement (except the Loan Documents) which restricts in any material manner the rights of any present or future
holder of any Pledged Securities with respect thereto. 
  
 (f)
Except for the Disclosed Matters, such Lien Grantor has good title to, or valid license or leasehold interests in, all of its Collateral which is material to its business, free and clear of any Liens other than (i) the CA Permitted Liens, (ii) the
Permitted Encumbrances and (iii) other defects that could not reasonably be expected to result in a Material Adverse Effect. 
  
 (g) Other than financing statements, mortgages or other similar or equivalent documents or instruments with respect to the Security Interests and other CA
Permitted Liens, or that are in respect of consignments, sale of Accounts, operating leases or are otherwise precautionary, no financing statement, mortgage, security agreement or similar or equivalent document or instrument covering all or any part
of the Collateral is on file or of record in any jurisdiction in which such filing or recording is effective to perfect or record a Lien on such Collateral except (i) Liens that have been released and (ii) Liens the obligations secured by which have
been satisfied, in each case as evidenced pursuant to the requirements of Section 4.01(f) of the Credit Agreement. After the Effective Date, no Collateral owned by such Lien Grantor will be in the possession or under the Control of any other Person
having a claim thereto or security interest therein, other than CA Permitted Liens. 
  
 (h) The Security Interests in the United States on all Personal Property Collateral which is subject to the UCC or which constitutes Intellectual Property owned by such Lien Grantor (i) have been validly created, (ii)
will attach to each item of such Collateral on the Effective Date (or, if such Lien Grantor first obtains rights thereto on a later date, on such later date) and (iii) when so attached, will constitute Collateral for the Secured Obligations or
Secured Guarantee of such Lien Grantor. 
  

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 (i) When the relevant Mortgages have been duly executed and delivered, the Security Interests on all Real
Property Collateral owned by such Lien Grantor as of the Effective Date will have been validly created and will constitute Collateral for the Secured Obligations or Secured Guarantee of such Lien Grantor. 
  
 (j) Xerox has heretofore delivered the Perfection Certificate to the
Collateral Agent. The information specified therein with respect to such Lien Grantor is correct and complete in all material respects as of the Effective Date. 
  

(k) When a UCC financing statement describing the Collateral and naming such Lien Grantor as debtor in the form attached to the Perfection Certificate
has been filed in the office of the Secretary of State in such Lien Grantor’s jurisdiction of organization specified in the Perfection Certificate, the Security Interests will constitute perfected security interests in the Personal Property
Collateral owned by such Lien Grantor to the extent that a security interest therein may be perfected by filing pursuant to the UCC, prior to all Liens and rights of others therein except CA Permitted Liens. Except for (i) the filing of such UCC
financing statement (and the filing of UCC continuation statements in respect thereof), (ii) the due recordation of the Mortgages and (iii) the recording of the Copyright Security Agreement, the Patent Security Agreement and the Trademark Security
Agreement in the United States Copyright Office and the United States Patent and Trademark Office appropriately identifying the Recordable Intellectual Property covered thereby, and except with respect to (x) goods represented by a certificate of
title and (y) receivables subject to the Federal Assignment of Claims Act, no registration, recordation or filing with any Governmental Authority is required in connection with the execution or delivery of the Security Documents or is necessary for
the validity or enforceability thereof or for the perfection or due recordation of the Security Interests in the United States (with respect to Personal Property Collateral, to the extent such Collateral is subject to the UCC or constitutes
Intellectual Property) or for the enforcement of the Security Interests in the United States in such Collateral, provided, however, that the registration of Copyrights in the United States Copyright Office may be required to obtain a security
interest therein that is effective against subsequent transfers under federal copyright law and, provided, further, that, to the extent that recordation of the Security Interest in the United States Patent and Trademark Office or the United
States Copyright Office is necessary to perfect the Security Interest or render it effective against subsequent third parties, such recordations will not have been made with respect to the items that are not Recordable Intellectual Property.

  
 (l) The Collateral Agent has Control of the Financial Assets
and Security Entitlements (if any) held in the Collateral Account. 
  

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 (m) As of the Effective Date, the Inventory and Equipment are insured in accordance with the requirements
of the Credit Agreement. 
  
 SECTION 4. The Security Interests.
 
  
 (a) Xerox, in order to secure the Xerox Secured
Obligations, and each Secured Subsidiary Guarantor, in order to secure its Secured Subsidiary Obligations, grants to the Collateral Agent for the benefit of the Secured Parties a continuing security interest in and to all of its respective right,
title and interest in the following property of Xerox or such Secured Subsidiary Guarantor, as the case may be, whether now owned or existing or hereafter acquired or arising and regardless of where located, but subject to the exclusions in Section
4(b): 
  
 (i) Accounts; 
  
 (ii) Chattel Paper; 
  
 (iii) Documents; 
  
 (iv) Equipment; 
  
 (v) General Intangibles; 
  
 (vi) Instruments; 
  
 (vii) Inventory; 
  
 (viii) Securities directly owned by such Lien Grantor and
issued by any Domestic Subsidiary or Material Foreign Subsidiary; 
  
 (ix) The Collateral Account, all Financial Assets credited to the Collateral Account from time to time and all Security Entitlements in respect thereof, all cash deposited therein from time to time, and the Liquid
Investments made pursuant to Section 8(d); 
  
 (x) All books and records (including, without limitation, customer lists, credit files, computer programs, printouts and other computer materials and records) of such Lien Grantor pertaining to any of the Collateral; and 
  
 (xi) All Proceeds of the Collateral described in Clauses
4(a)(i) through 4(a)(x) hereof. 
  
 (b) The Collateral shall not
include: 
  

 20 







 (i) Securities issued by a Subsidiary of any Lien Grantor if such subsidiary is created
or acquired after the Effective Date and is not a Material Subsidiary; 
  
 (ii) rights of each Lien Grantor in respect of any property or asset which is prohibited from being pledged to the Collateral Agent as part of the Collateral by any Permitted Encumbrances; 
  
 (iii) Transferred Receivables and (A) security interests or
liens and property subject thereto purporting to secure payment of such Transferred Receivables, (B) leases, guaranties, insurance and other arrangements supporting payment of such Transferred Receivables, (C) rights to payment and collections in
respect of such Transferred Receivables, (D) books, records and similar information relating to such Transferred Receivables or the obligors thereon, (E) with respect to any such Transferred Receivables, the transferee’s interest in goods
(including, without limitation, Equipment or Inventory) the sale of which gave rise to such Transferred Receivables and (F) if such Transferred Receivables arise from a lease financing or installment sale transaction, the Equipment or Inventory that
is the subject of the underlying transaction and is transferred to a Receivables SPE or a Third Party Vendor Financing Subsidiary; 
  
 (iv) Transferred Intellectual Property; 
  
 (v) State and Local Government Receivables of each Lien Grantor; 
  
 (vi) any Security owned by each Lien Grantor that is a voting Equity Interest issued by a Foreign Subsidiary
that is a corporation for United States Federal income tax purposes, to the extent (but only to the extent) required to prevent the Collateral from including more than 65% of the shares of any class of voting securities of such Foreign Subsidiary
(either directly or through any entity that is a disregarded entity for such purposes); and 
  
 (vii) Third Party Vendor Financing Assets of each Lien Grantor. 
  
 (c) With respect to each right to payment or performance included in the Collateral from time to time, the Security Interest
granted therein includes, subject to Permitted Encumbrances, a continuing security interest in (i) any Supporting Obligation that supports such payment or performance and (ii) any Lien that (x) secures such right to payment or performance or (y)
secures any such Supporting Obligation. 
  

 21 







 (d) The Security Interests are granted as security only and shall not subject the Collateral Agent or any
Secured Party to, or transfer or in any way affect or modify, any obligation or liability of any Lien Grantor with respect to any of the Collateral or any transaction in connection therewith. 
  
 (e) Notwithstanding anything to the contrary contained herein or in any other
Loan Document, Liens on Restricted Collateral granted pursuant to this Agreement and the other Security Documents will only secure, at any time, an amount of (i) the CA Secured Obligations, (ii) the XCFI Secured Obligations and (iii) any Hedging
Secured Obligations that would be required to be taken into account in calculating the Basket Lien Available Amount not to exceed the Basket Lien Available Amount at such time. 
  
 (f) It is the intention of the parties that the Liens granted pursuant to this Agreement and the other Security Documents
shall comply with Section 20.8 of each of the XCFI Indentures. 
  
 (g) For the avoidance of doubt, no more than 65% of the outstanding voting Equity Interests in any Foreign Subsidiary that is a corporation for United States Federal income tax purposes shall be required to be pledged hereunder or under any
other Loan Document. 
  
 SECTION 5. Further Assurances;
Covenants.  
  
 Each Lien Grantor covenants as follows:

  
 (a) Such Lien Grantor will not (i) change its corporate,
partnership, company or other legal name or location (determined as provided in UCC Section 9-307), (ii) change its identity or corporate structure, (iii) change its Federal Taxpayer Identification Number or (iv) become bound, as provided in UCC
Section 9-203(d) or otherwise, by a security agreement entered into by another Person, except, if applicable, in accordance with Section 5.03(a) of the Credit Agreement. 
  
 (b) Such Lien Grantor will, from time to time, at its expense, execute, deliver, file and record any statement, assignment,
instrument, document, agreement or other paper and take any other reasonable action (including, without limitation, any filings of financing or continuation statements under the UCC) that from time to time is required under the UCC or with respect
to Recordable Intellectual Property to enable the Collateral Agent and the other Secured Parties to obtain the full benefits of the Security Documents or to enable the Collateral Agent to exercise and enforce any of its rights, powers and remedies
under the Security Documents with respect to any of the Collateral. The Lien Grantor hereby authorizes the Collateral Agent to file a Record or Records (as defined in 

  

 22 







 
the UCC), including, without limitation, financing or continuation statements, and amendments thereto, in all jurisdictions and with all filing offices as
the Collateral Agent may determine, in its sole discretion, are necessary or advisable to perfect the security interest granted to the Collateral Agent herein without such Lien Grantor’s signature appearing thereon. Such financing statements
may describe the Collateral in the same manner as described herein or may contain an indication or description of collateral that describes such property in any other manner as the Collateral Agent may determine, in its sole discretion, is
necessary, advisable or prudent to ensure the perfection of the security interest in the Collateral granted to the Collateral Agent herein, including, without limitation, describing such property as “all assets” or “all personal
property.” Such Lien Grantor agrees that a carbon, photographic, photostatic or other reproduction of this Agreement is sufficient as a financing statement. Such Lien Grantor constitutes the Collateral Agent its attorney-in-fact to execute and
file any filings required or so requested for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed; and such power, being coupled with an interest, shall be irrevocable until all the Security Interests granted by
such Lien Grantor terminate pursuant to Section 19. Such Lien Grantor shall pay the costs of, or reasonable costs incidental to, any recording or filing of any financing or continuation statements or other documents recorded or filed pursuant
thereto concerning the Collateral. 
  
 (c) Upon the occurrence and
during the continuance of an Event of Default, if any Collateral is in the possession or control of a warehouseman, bailee or agent, such Lien Grantor will upon request of the Required Lenders (i) notify such warehouseman, bailee or agent of the
relevant Security Interests, (ii) instruct such warehouseman, bailee or agent to hold all such Collateral for the Collateral Agent’s account subject to the Collateral Agent’s instructions and to permit such Collateral to be removed by such
Lien Grantor in the ordinary course of business until the Collateral Agent notifies such warehouseman, bailee or agent that an Event of Default has occurred and is continuing, (iii) use reasonable commercial efforts (without incurring material
obligations or foregoing material rights) to cause such warehouseman, bailee or agent to Authenticate a Record acknowledging that it holds possession of such Collateral for the Collateral Agent’s benefit and (iv) make such Authenticated Record
available to the Collateral Agent. 
  
 (d) If an Actionable Event
of Default shall have occurred and be continuing, such Lien Grantor shall stamp or otherwise mark all books and records relating to the Collateral in such manner, if any, as the Required Lenders may reasonably require in order to reflect the
Security Interests. 
  
 (e) Such Lien Grantor will, promptly upon
request, provide to the Collateral Agent all information and evidence in such Lien Grantor’s possession, 

  

 23 







 
or under such Lien Grantor’s control, or that can be generated internally or, if an Actionable Event of Default has occurred and is continuing, can
otherwise be obtained by such Lien Grantor, without unreasonable effort or expense, which the Collateral Agent may reasonably request concerning the Collateral to enable the Collateral Agent to enforce the provisions of the Security Documents.

  
 (f) Such Lien Grantor will not Transfer, grant interests in,
or grant any option with respect to, any of its Collateral, provided that such Lien Grantor may do any of the foregoing unless doing so would violate a covenant in the Credit Agreement. Concurrently with any such Transfer (except a Transfer
to another Lien Grantor, a lease or a license) permitted by the foregoing proviso, the Security Interests on such assets Transferred (but not in any Proceeds arising from such Transfer) will cease immediately pursuant to Section 9.03 of the
Credit Agreement. 
  
 SECTION 6. Recordable Intellectual
Property.  
  
 Each Lien Grantor covenants as follows:

  
 (a) On the Effective Date (in the case of an Original Lien
Grantor) or the date on which it signs and delivers its first Guarantee and Security Agreement Supplement (in the case of any other Lien Grantor), and within 30 days after the Reinstatement Date, such Lien Grantor will sign and deliver to the
Collateral Agent Intellectual Property Security Agreements with respect to all Recordable Intellectual Property then owned by it. Within 60 days after each March 31 and September 30 after December 31, 2003, it will sign and deliver to the Collateral
Agent any Intellectual Property Security Agreement necessary to grant Security Interests on all Recordable Intellectual Property owned by it on such March 31 or September 30 that is not covered by any previous Intellectual Property Security
Agreement so signed and delivered by it. In each case, it will promptly make all Intellectual Property Filings necessary to record the Security Interests on such Recordable Intellectual Property, provided, however, that any good faith
omission to include any Recordable Intellectual Property in any such Intellectual Property Security Agreement shall not constitute an Event of Default if, within 15 days after the discovery by such Lien Grantor of such good faith omission, such Lien
Grantor signs and delivers to the Collateral Agent Intellectual Property Security Agreements with respect to such omitted Recordable Intellectual Property and promptly makes all Intellectual Property Fillings necessary to record the Security
Interests on such omitted Recordable Intellectual Property. 
  
 (b) Such Lien Grantor will notify the Collateral Agent promptly if it knows that any application or registration relating to any material Recordable Intellectual Property owned or licensed by it may become abandoned or dedicated to the
public, or of any adverse determination or development (including the 

  

 24 







 
institution of, or any adverse determination or development in, any proceeding in the United States Copyright Office, the United States Patent and Trademark
Office or any court) regarding such Lien Grantor’s ownership of such material Recordable Intellectual Property, its right to register or patent the same, or its right to keep and maintain the same, except where the occurrence of any of the
foregoing could not reasonably be expected to result in a Material Adverse Effect. If any of such Lien Grantor’s rights to any material Recordable Intellectual Property are infringed, misappropriated or diluted by a third party, such Lien
Grantor will, unless such Lien Grantor shall reasonably determine that such action would be of negligible value, economic or otherwise, or the failure to take such action could not reasonably be expected to result in a Material Adverse Effect, (i)
promptly sue for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, (ii) take such other actions as such Lien Grantor shall reasonably deem appropriate under the
circumstances to protect such material Recordable Intellectual Property and (iii) notify the Collateral Agent thereof to the extent required by the Credit Agreement. 
  
 (c) Unless an Actionable Event of Default shall exist and the Collateral Agent shall have notified such Lien Grantor that
the Lien Grantor’s right to do so is terminated, suspended or otherwise limited, the grant of Liens on Recordable Intellectual Property pursuant hereto and the Intellectual Property Security Agreements shall not preclude any Lien Grantor from
entering into any Copyright License, Patent License or Trademark License or, subject to Section 5, from managing or maintaining its Recordable Intellectual Property in a manner that is in the ordinary course of such Lien Grantor’s business and
consistent with such Lien Grantor’s historical practices as permitted by the Credit Agreement. 
  
 SECTION 7. Pledged Securities.  
  
 Each Lien Grantor represents, warrants and covenants as follows: 
  

(a) Certificated Securities. (i) With respect to each Original Lien Grantor, such Original Lien Grantor will deliver, on the Effective Date, to
the Collateral Agent as Collateral hereunder all certificates representing Pledged Certificated Securities that are Equity Interests directly owned by such Original Lien Grantor and issued by any Domestic Subsidiary or any Material Foreign
Subsidiary. 
  
 (ii) With respect to any other
Lien Grantor, such Lien Grantor will deliver, on the date on which it signs and delivers its first Guarantee and Security Agreement Supplement or, in the case of Pledged Certificated Securities that are Equity Interests directly owned by such Lien
Grantor and issued by any Material Foreign Subsidiary, as promptly 

  

 25 







 
as practicable, to the Collateral Agent as Collateral hereunder all certificates representing Pledged Certificated Securities that are Equity Interests then
directly owned by such Lien Grantor and issued by a Material Subsidiary. 
  
 (iii) With respect to each Lien Grantor, such Lien Grantor will deliver, within 30 days after the Reinstatement Date, to the Collateral Agent as Collateral hereunder all certificates representing Pledged Certificated
Securities that are Equity Interests directly owned by such Lien Grantor and issued by any Domestic Subsidiary or any Material Foreign Subsidiary (or, in the case of Pledged Certificated Securities that are Equity Interests in any Foreign
Subsidiary, as promptly as practicable thereafter), provided that if both the Administrative Agent and the Syndication Agent agree in their discretion, with respect to any pledge of Certificated Securities that are Equity Interests issued by
a Material Foreign Subsidiary and that shall not have previously been pledged hereunder, that such pledge is impossible, impractical or unreasonably burdensome or expensive (or has been substantially, but not fully completed), the Administrative
Agent and the Syndication Agent may, in their respective good faith discretion, consent to a waiver of the pledge of any such Certificated Securities. 
  
 (iv) After the pledge and delivery of Pledged Certificated Securities described in clause (i), (ii) or (iii) of this Section 7(a),
whenever such Original Lien Grantor or such Lien Grantor, as the case may be, acquires any other certificate representing a Pledged Certificated Security that is an Equity Interest required to be included in the Collateral, such Original Lien
Grantor or such Lien Grantor, as the case may be, will promptly deliver such certificate to the Collateral Agent as Collateral hereunder. 
  
 The provisions of this Section 7(a) are subject to the limitation in Section 7(g) in the case of Securities that are voting Equity Interests in a Foreign
Subsidiary and to the limitation in Section 7(h) in the case of Equity Interests that are subject to Permitted Encumbrances. 
  
 (b) Uncertificated Securities. (i) With respect to each Original Lien Grantor, such Original Lien Grantor will, on the Effective Date, in respect
of each Pledged Uncertificated Security that is an Equity Interest directly owned by such Original Lien Grantor and issued by any Domestic Subsidiary or any Material Foreign Subsidiary, cause the issuer of any such Pledged Uncertificated Security to
either (A) register the Collateral Agent as the registered owner of such security on the books and records of the issuer or (B) enter into an Issuer Control Agreement with respect to such Security, in each case as the Collateral Agent and 

  

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such Original Lien Grantor may reasonably agree, provided that any Equity Interest issued by Xerox (Austria) Holdings GmbH shall not be required to be
pledged. 
  
 (ii) With respect to any other Lien
Grantor, such Lien Grantor will, on the date on which it signs and delivers its first Guarantee and Security Agreement Supplement or, in the case of Pledged Uncertificated Securities that are Equity Interests directly owned by such Lien Grantor and
issued by any Material Foreign Subsidiary, as promptly as practicable, in respect of each Pledged Uncertificated Security that is an Equity Interest then directly owned by such Lien Grantor and issued by a Material Subsidiary, cause the issuer of
any such Pledged Uncertificated Security to either (x) register the Collateral Agent as the registered owner of such security on the books and records of the issuer or (y) enter into an Issuer Control Agreement with respect to such Security, in each
case as the Collateral Agent and such Lien Grantor may reasonably agree. 
  
 (iii) With respect to each Lien Grantor, such Lien Grantor will, within 30 days after the Reinstatement Date, in respect of each Pledged Uncertificated Security that is an Equity Interest directly owned by such Lien
Grantor and issued by any Domestic Subsidiary or any Material Foreign Subsidiary, cause the issuer of any such Pledged Uncertificated Security to either (A) register the Collateral Agent as the registered owner of such security on the books and
records of the issuer or (B) enter into an Issuer Control Agreement with respect to such Security, in each case as the Collateral Agent and such Original Lien Grantor may reasonably agree, provided that any Equity Interest issued by Xerox
(Austria) Holdings GmbH shall not be required to be pledged, and provided further that if both the Administrative Agent and the Syndication Agent agree in their discretion, with respect to any pledge of Uncertificated Securities that
are Equity Interests issued by a Material Foreign Subsidiary and that shall not have previously been pledged hereunder, that such pledge is impossible, impractical or unreasonably burdensome or expensive (or has been substantially, but not fully
completed), the Administrative Agent and the Syndication Agent may, in their respective good faith discretion, consent to a waiver of the pledge of any such Uncertificated Securities. 
  
 (iv) After the pledge of Pledged Uncertificated Securities described in clause (i), (ii) or (iii) of this
Section 7(b), whenever such Original Lien Grantor or such Lien Grantor, as the case may be, acquires any other Pledged Uncertificated Security that is an Equity Interest required to be included in the Collateral, such Original Lien Grantor or such
Lien Grantor, as the case may be, will promptly cause the issuer of any such Pledged Uncertificated Security to either (x) register the 

  

 27 







 
Collateral Agent as the registered owner of such security on the books and records of the issuer or (y) enter into an Issuer Control Agreement with respect
to such Security, in each case as the Collateral Agent and such Original Lien Grantor or such Lien Grantor, as the case may be, may reasonably agree. 
  
 The provisions of this Section 7(b) are subject to (X) the limitation in Section 7(g) in the case of Securities that are voting Equity Interests in a
Foreign Subsidiary, (Y) Section 9(c) and (Z) the limitation in Section 7(h) in the case of Equity Interests that are subject to Permitted Encumbrances. 
  
 (c) Perfection as to Certificated Securities. When such Lien Grantor delivers the certificate representing any Pledged Certificated Security owned
by it that is an Equity Interest to the Collateral Agent and complies with Section 7(e) in connection with such delivery, (i) the Security Interest on such Pledged Certificated Security will be perfected under the UCC, subject to no prior Liens or
rights of others, (ii) the Collateral Agent will have Control of such Pledged Certificated Security and (iii) the Collateral Agent will be a protected purchaser (within the meaning of UCC Section 8-303) thereof if the Collateral Agent does not have
notice of any adverse claim to the applicable security. 
  
 (d)
Perfection as to Uncertificated Securities. When such Lien Grantor, the Collateral Agent and the issuer of any Pledged Uncertificated Security that is an Equity Interest and owned by such Lien Grantor enter into an Issuer Control Agreement
with respect thereto, or when the Collateral Agent is registered as the registered owner of such Pledged Uncertificated Security, (i) the Security Interest on such Pledged Uncertificated Security will be perfected under the UCC, subject to no prior
Liens or rights of others, (ii) the Collateral Agent will have Control of such Pledged Uncertificated Security and (iii) the Collateral Agent will be a protected purchaser (within the meaning of UCC Section 8-303) thereof if the Collateral Agent
does not have notice of any adverse claim to the applicable security. 
  
 (e) Delivery of Pledged Certificates. Any certificate representing a Pledged Certificated Security that is an Equity Interest, when delivered to the Collateral Agent, will be in suitable form for transfer by delivery, or accompanied
by duly executed instruments of transfer or assignment in blank signed by a Responsible Officer, all in form and substance reasonably satisfactory to the Collateral Agent. 
  
 (f) Communications. If an Actionable Event of Default shall have occurred and be continuing and the Collateral Agent
shall have given notice to the Lien Grantors that it elects to exercise the remedies provided in Section 12, such Lien Grantor will promptly give to the Collateral Agent copies of any notices and 

  

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other communications received by it with respect to Pledged Securities that are Equity Interests and registered in the name of such Lien Grantor or its
nominee. 
  
 (g) Foreign Subsidiaries. Such Lien Grantor
will not be obligated to comply with the provisions of this Section 7 at any time with respect to any Security that is a voting Equity Interest in a Foreign Subsidiary if and to the extent (but only to the extent) that such Security is excluded from
the Collateral at such time pursuant to Section 4(b)(vi). 
  
 (h)
Equity Interests Subject to Permitted Encumbrances. Such Lien Grantor will not be obligated to comply with the provisions of this Section 7 at any time with respect to any Equity Interest issued by any Person if and to the extent (but only to
the extent) that such Equity Interest is excluded from the Collateral at such time pursuant to Section 4(b)(i). 
  
 (i) Such Lien Grantor shall hold directly, and not through any subsidiary, Securities Intermediary or other Person, all Pledged Securities owned by it,
provided that the foregoing shall not prohibit any Lien Grantor from Transferring ownership of such Pledged Securities as permitted by the Credit Agreement. 
  
 SECTION 8. Collateral Account.  
  
 (a) There is hereby established with the Collateral Agent, with respect to each Lien Grantor, a cash collateral account (its
“Collateral Account”) in the name and under the exclusive control of the Collateral Agent into which there shall be deposited from time to time after the occurrence and during the continuance of an Actionable Event of Default and
upon notice from the Collateral Agent that it elects to exercise the remedies provided in this Section 8 the cash proceeds of the Collateral required to be delivered to the Collateral Agent pursuant to Section 8(b) hereof or any other provision of
any Security Document. Any income received by the Collateral Agent with respect to the balance from time to time standing to the credit of each Collateral Account, including any interest or capital gains on Liquid Investments, shall remain, or be
deposited, in the Collateral Account. All cash amounts on deposit in each Collateral Account from time to time after the occurrence and during the continuance of an Actionable Event of Default, together with any Liquid Investments from time to time
made pursuant to Section 8(d) hereof, shall at all times be within the exclusive possession, dominion and control of the Collateral Agent, shall constitute part of the Collateral hereunder and shall not constitute payment of the Secured Obligations
until applied thereto as hereinafter provided. 
  
 (b) If an
Actionable Event of Default shall have occurred and be continuing and if so requested by the Required Lenders, each Lien Grantor shall 

  

 29 







 
instruct all account debtors and other Persons obligated in respect of all Accounts then included in the Collateral to make all payments in respect of the
Accounts either (i) directly to the Collateral Agent (by instructing that such payments be remitted to a post office box which shall be in the name of such Lien Grantor (with a notation that proceeds held therein are held in trust for and subject to
the Liens of the Secured Parties) and under the control of the Collateral Agent) or (ii) under other arrangements, in form and substance satisfactory to the Collateral Agent, pursuant to which such Lien Grantor shall have irrevocably instructed such
account debtors or other Persons obligated in respect of all Accounts (and such account debtor or other Person shall have agreed) to remit all proceeds of such payments directly to the Collateral Agent for deposit into the Collateral Account or as
the Collateral Agent may otherwise instruct such bank. All such payments made to the Collateral Agent shall be deposited in such Lien Grantor’s Collateral Account. In addition to the foregoing, such Lien Grantor agrees that if the proceeds of
any Collateral hereunder (including the payments made in respect of Accounts) are received by it at a time when the foregoing provisions of this Section 8(b) are in effect, such Lien Grantor shall as promptly as possible deposit such proceeds into
its Collateral Account. Until so deposited into the Collateral Account, all such proceeds shall, during the continuation of such Actionable Event of Default, be held in trust by such Lien Grantor for the Secured Parties and shall not be commingled
with any other funds or property of such Lien Grantor. 
  
 (c)
Upon acceleration of the Loans in accordance with the terms of the Credit Agreement, the Collateral Agent shall, if so instructed by the Required Lenders, apply or cause to be applied (subject to collection) any or all of the balance from time to
time standing to the credit of each Collateral Account in the manner specified in Section 14. 
  
 (d) If an Actionable Event of Default shall have occurred and be continuing, amounts on deposit in each Collateral Account, to the extent not applied in the manner specified in Section 14 pursuant to paragraph (c)
above, shall be invested and re-invested from time to time in such Liquid Investments as the relevant Lien Grantor shall determine, which Liquid Investments shall be held in the name and be under the control of the Collateral Agent, provided
that the Collateral Agent shall, if instructed by the Required Lenders, liquidate any such Liquid Investments and apply or cause to be applied the proceeds thereof to the payment of the Secured Obligations in the manner specified in Section 14, and
provided further that the Collateral Agent shall, if so instructed by the relevant Lenders in the manner specified in Section 9.02 of the Credit Agreement, liquidate any such Liquid Investments and release the proceeds thereof to the relevant
Lien Grantor. 
  

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 SECTION 9. Transfer of Record Ownership.  
  
 (a) If an Actionable Event of Default shall have occurred and be continuing,
the Collateral Agent may (and to the extent that action by it is required, the relevant Lien Grantor, if directed to do so by the Collateral Agent, will as promptly as practicable) cause each of the Pledged Securities (or any portion thereof
specified in such direction) to be transferred of record into the name of the Collateral Agent or its nominee. 
  
 (b) Perfection upon Transfer of Record Ownership. If and when any Pledged Security (whether certificated or uncertificated) owned by such Lien
Grantor is transferred of record into the name of the Collateral Agent or its nominee pursuant to Section 7(b) or Section 9(a), (i) the Security Interest on such Pledged Security will be perfected, subject to no prior Liens or rights of others, (ii)
the Collateral Agent will have Control of such Pledged Security and (iii) the Collateral Agent will be a protected purchaser (within the meaning of UCC Section 8-303) thereof if the Collateral Agent does not have notice of any adverse claim to the
applicable security. 
  
 (c) Provisions Inapplicable after
Transfer of Record Ownership. If the provisions of Section 9(a) are implemented, Section 7(b) shall not thereafter apply to any Pledged Security that is registered in the name of the Collateral Agent or its nominee. 
  
 (d) Communications after Transfer of Record Ownership. The Collateral
Agent will promptly give to the relevant Lien Grantor copies of any notices and other communications received by the Collateral Agent with respect to Pledged Securities registered in the name of the Collateral Agent or its nominee. 
  
 SECTION 10. Right to Vote Securities.  
  
 (a) Unless an Actionable Event of Default shall have occurred and be
continuing and the Collateral Agent shall have notified such Lien Grantor that it elects to exercise the remedies provided in this Section 10, each Lien Grantor will have the right, from time to time, to vote and to give consents, ratifications and
waivers with respect to any Pledged Security owned by it, and the Collateral Agent will, upon receiving a written request from such Lien Grantor, deliver to such Lien Grantor such proxies, powers of attorney, consents, ratifications and waivers in
respect of any such Pledged Security that is registered in the name of the Collateral Agent or its nominee, in each case as shall be reasonably requested by such Lien Grantor. Unless an Actionable Event of Default shall have occurred and be
continuing and the Collateral Agent shall have notified such Lien Grantor that it elects to exercise the remedies provided in this Section 10, the Collateral 

  

 31 







 
Agent will have no right to take any action which the owner of a Pledged Partnership Interest or Pledged LLC Interest is entitled to take with respect
thereto, except the right to receive payments and other distributions to the extent provided herein. 
  
 (b) If an Actionable Event of Default shall have occurred and be continuing and the Collateral Agent shall have notified such Lien Grantor that it elects
to exercise the remedies provided in this Section 10, the Collateral Agent will have the right to the extent permitted by Applicable Law (and, in the case of Collateral consisting of any Security that is subject to any Permitted Encumbrances, by the
relevant agreement or governing document to the extent of any Permitted Encumbrances contained in such agreement or governing document) to vote, to give consents, ratifications and waivers and to take any other action with respect to the Pledged
Securities (if any) with the same force and effect as if the Collateral Agent were the absolute and sole owner thereof, and each Lien Grantor will take all such action as the Collateral Agent may reasonably request from time to time to give effect
to such right. 
  
 SECTION 11. General Authority.

  
 Each Lien Grantor hereby irrevocably appoints the Collateral
Agent its true and lawful attorney, with full power of substitution, in the name of such Lien Grantor, the Collateral Agent, the Secured Parties or otherwise, for the use and benefit of the Secured Parties, but at the Borrowers’ expense, to the
extent permitted by law to exercise, upon the occurrence and during the continuance of an Actionable Event of Default or upon acceleration of the Loans in accordance with the terms of the Credit Agreement, all or any of the following powers with
respect to all or any of the Collateral: 
  
 (a)
to demand, sue for, collect, receive and give acquittance for any and all monies due or to become due thereon or by virtue thereof, 
  
 (b) to settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto, 
  
 (c) upon acceleration of the Loans in accordance with the
terms of the Credit Agreement, to sell, transfer, assign or otherwise deal in or with the same or the proceeds thereof, as fully and effectually as if the Collateral Agent were the absolute owner of the Lien Grantor’s right, title and interest
therein, and 
  
 (d) to extend the time of
payment of any or all thereof and to make any allowance and other adjustments with reference thereto; 
  

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 provided that, except in the case of Personal Property Collateral that is perishable or threatens to decline
speedily in value or is of a type customarily sold on a recognized market, the Collateral Agent will give the relevant Lien Grantor at least ten days’ prior written notice of the time and place of any public sale thereof or the time after which
any private sale or other intended disposition thereof will be made. Any such notice shall (i) contain the information specified in UCC Section 9-613, (ii) be Authenticated and (iii) be sent to the parties required to be notified pursuant to UCC
Section 9-611(c); provided that, if the Collateral Agent fails to comply with this sentence in any respect, its liability for such failure shall be limited to the liability (if any) imposed on it as a matter of law under the UCC. 

 
 SECTION 12. Remedies upon Actionable Event of Default or Acceleration;
Limitation on Rights and Remedies of Hedging Secured Parties.  
  
 (a) Upon acceleration of the Loans in accordance with the terms of the Credit Agreement, the Collateral Agent may exercise (or cause its sub-agents to exercise) any and all remedies available to it (or to such sub-agents) under the Security
Documents. Without limiting the generality of the foregoing, upon acceleration of the Loans in accordance with the terms of the Credit Agreement, the Collateral Agent may exercise (or cause its sub-agents to exercise) on behalf of the Secured
Parties all rights of a secured party after default under the UCC (whether or not in effect in the jurisdiction where such rights are exercised) with respect to any Personal Property Collateral and, in addition, the Collateral Agent may, without
being required to give any notice, except as herein provided or as may be required by mandatory provisions of law, (i) withdraw all cash and Liquid Investments in the Collateral Accounts and apply such cash and Liquid Investments and other cash, if
any, then held by it as Collateral as specified in Section 14 and (ii) if there shall be no such cash or Liquid Investments or if such cash and Liquid Investments shall be insufficient to pay all the Secured Obligations in full, take possession of,
sell, lease, license or otherwise dispose of the Collateral or any part thereof at public or private sale, for cash, upon credit or for future delivery, and at such price or prices as the Collateral Agent may deem satisfactory. Any Secured Party may
be the purchaser of any or all of the Collateral so sold at any public sale (or, if the Collateral is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations, at any
private sale). The relevant Lien Grantor will execute and deliver such documents and take such other action as the Collateral Agent deems reasonably necessary or proper in order that any such sale may be made in compliance with law. Upon any such
sale the Collateral Agent shall have the right to deliver, assign and transfer to the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall hold the Collateral so sold to it absolutely and free from any claim or right of
whatsoever kind, including any equity or right of redemption of the relevant Lien Grantor which may be waived, and such Lien Grantor, to the extent permitted by law, hereby 

  

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specifically waives all rights of redemption, stay or appraisal which it has or may have under any law now existing or hereafter adopted. The notice (if any)
of such sale required by Section 11 shall comply with the requirements set forth in Section 11. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent may fix in
the notice of such sale. At any such sale the Collateral may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may determine. The Collateral Agent shall not be obligated to make any such sale pursuant to any such
notice. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for the sale, and such sale may be made at any time
or place to which the same may be so adjourned. In the case of any sale of all or any part of the Collateral on credit or for future delivery, the Collateral so sold may be retained by the Collateral Agent until the selling price is paid by the
purchaser thereof, but the Collateral Agent shall not incur any liability in the case of the failure of such purchaser to take up and pay for the Collateral so sold and, in the case of any such failure, such Collateral may again be sold upon like
notice. The Collateral Agent, instead of exercising the power of sale herein conferred upon it, may proceed by a suit or suits at law or in equity to foreclose the Security Interests and sell the Collateral, or any portion thereof, under a judgment
or decree of a court or courts of competent jurisdiction. 
  
 (b)
For the purpose of enforcing any and all rights and remedies under the Security Documents upon the occurrence and during the continuance of an Actionable Event of Default or upon acceleration of the Loans in accordance with the terms of the Credit
Agreement, as the case may be, the Collateral Agent may (i) require any Lien Grantor to, and such Lien Grantor agrees that it will, at its expense and upon the request of the Collateral Agent, forthwith take reasonable steps to assemble all or any
part of the Collateral as directed by the Collateral Agent and make it available at a place designated by the Collateral Agent which is, in its opinion, reasonably convenient to the Collateral Agent and such Lien Grantor, whether at the premises of
such Lien Grantor or otherwise, (ii) to the extent permitted by applicable law, enter, with or without process of law and without breach of the peace, any premise where any of the Collateral is or may be located, and without charge or liability to
it seize and remove such Collateral from such premises, (iii) have access to and use such Lien Grantor’s books and records relating to the Collateral upon reasonable prior notice and at reasonable times and (iv) prior to the disposition of the
Collateral, store or transfer it without charge in or by means of any storage or transportation facility owned or leased by such Lien Grantor, process, repair or recondition it or otherwise prepare it for disposition in any manner and to the extent
the Collateral Agent reasonably deems appropriate and, in connection with such preparation and disposition, use without charge any trademark, trade name, copyright, patent or technical process used by such Lien 

  

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Grantor in connection therewith and included in the Collateral, subject, with respect to products being sold under Trademarks, to standards of quality with
respect to such products that are reasonably comparable to those prevailing at the time of such Actionable Event of Default. 
  
 (c) The remedies specified in this Section 12 do not affect, and are in addition to, remedies otherwise specified for or available to the Collateral Agent
or the Secured Parties under this Agreement or any other Loan Document, including, but not limited to, remedies available upon the occurrence and during the continuance of an Event of Default or Actionable Event of Default, as the case may be.

  
 (d) The Collateral Agent hereby agrees that, notwithstanding
anything to the contrary set forth herein, the exercise of rights and remedies by the Collateral Agent pursuant to this Section 12 (or otherwise) with respect to any Collateral may be subject to the effect of any Permitted Encumbrances. 

 
 (e) Notwithstanding anything herein to the contrary, at all times until
all CA Secured Obligations and all XCFI Secured Obligations have been paid in full in cash and the Release Conditions shall have been satisfied, no Hedging Secured Party (in their respective capacities as such) shall be entitled to (i) exercise (or
to direct the Collateral Agent to exercise) any rights (including any rights to approve or disapprove any action or inaction by the Collateral Agent) or remedies with respect to the Collateral, including without limitation the right to (A) enforce
any Liens or sell or otherwise foreclose on any portion of the Collateral or (B) request any action, institute proceedings, give any instructions, make any election, notice account debtors or make collections with respect to all or any portion of
the Collateral or (ii) demand, accept or obtain any lien and/or security interest in any Collateral (except for the Liens arising under, and subject to the terms of, this Agreement and the other Security Documents, and except for Liens on deposit
accounts or other accounts (and the cash, cash equivalents or investments from time to time credited thereto)). 
  
 SECTION 13. Limitation on Duty of Collateral Agent in Respect of Collateral.  
  
 Beyond the exercise of reasonable care in the custody thereof, the Collateral Agent shall have no duty as to any Collateral
in its possession or control or in the possession or control of any agent or bailee or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent shall be deemed to have
exercised reasonable care in the custody of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its own property, and shall not be liable or responsible for any loss or damage to any
of the 

  

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Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other
agent or bailee selected by the Collateral Agent in good faith. 
  
 SECTION 14. Application of Proceeds.  
  
 (a)
Upon (i) acceleration of the Loans in accordance with the terms of the Credit Agreement and (ii) the exercise of remedies by the Collateral Agent under Section 12 hereof, the proceeds of any sale of, or other realization upon, all or any part of the
Collateral, shall be applied by the Collateral Agent as follows: 
  
 first, to pay the expenses of such sale or other realization, including reasonable compensation to agents contemplated by Section 16 and to counsel for the Collateral Agent, and all expenses, liabilities and
advances incurred or made by the Collateral Agent in connection with the Security Documents, and then ratably to pay any other unreimbursed expenses for which the Collateral Agent is to be reimbursed pursuant to Section 17 hereof; 
  
 second, (A) in the case of proceeds of any sale of,
or realization upon, Restricted Collateral remaining after the application of amounts pursuant to clause first above, in ratable amounts as follows: 
  
 (I) the CA Percentage thereof shall be applied to pay (or provide for the payment thereof pursuant to Section 14(e)) the CA Secured
Obligations in accordance with Section 14(c) until payment in full of all CA Secured Obligations shall have been made (or so provided for); and 
  
 (II) the XCFI Percentage thereof shall be applied to pay (or provide for the payment thereof pursuant to Section 14(e)) the XCFI Secured
Obligations in accordance with Section 14(b) until payment in full of all XCFI Secured Obligations shall have been made (or so provided for); 
  
 (B) in the case of proceeds of any sale of, or realization upon, any Collateral that is not Restricted Collateral remaining after the
application of amounts pursuant to clause first above, 100% thereof shall be applied to pay (or provide for the payment thereof pursuant to Section 14(e)) the CA Secured Obligations in accordance with Section 14(c) until payment in full of
all CA Secured Obligations shall have been made (or so provided for); 
  

 36 







 third, in the case of proceeds of any sale of, or realization upon, Collateral
remaining after the application of amounts pursuant to clauses first and second above, to pay the Non-Contingent Hedging Secured Obligations; and 
  

finally, to pay to the relevant Lien Grantor, or as a court of competent jurisdiction may direct, any surplus then remaining
from the proceeds of the Collateral owned by it. 
  
 (b) All
amounts required to be applied to pay (or provide for the payment of) the XCFI Secured Obligations pursuant to Section 14(a) shall be paid by the Collateral Agent to the Trustee under each of the XCFI Indentures (and any successor Trustee
thereunder) for application by such Trustee in accordance with the provisions of each of the XCFI Indentures (or provide for such payment pursuant to Section 14(e)), until payment in full of all XCFI Secured Obligations shall have been made (or so
provided for). 
  
 (c) All amounts required to be applied to pay
(or provide for the payment of) the CA Secured Obligations pursuant to Section 14(a) shall be applied by the Collateral Agent in the following order of priorities: 
  
 first, to ratably pay any unreimbursed expenses for which any Secured Party is to be reimbursed
pursuant to Section 9.04 of the Credit Agreement, and any unpaid fees owing to the Agents under the Credit Agreement; 
  
 second, to ratably (A) pay the unpaid principal of the Term Loans, (B) pay the unpaid principal of the Revolving Loans and (C)
provide for the payment of all Contingent CA Secured Obligations pursuant to Section 14(e), until payment in full of the principal of all Term Loans and Revolving Loans shall have been made and the payment of all Contingent CA Secured Obligations
has been provided for; 
  
 third, to pay
ratably all interest and fees payable under the Credit Agreement, until payment in full of all such interest and fees shall have been made; and 
  
 fourth, to pay all other CA Secured Obligations ratably (or provide for the payment thereof pursuant to Section 14(e)), until
payment in full of all such other CA Secured Obligations shall have been made (or so provided for). 
  
 (d) The Collateral Agent may make distributions under clauses (a), (b) or (c) above in cash or in kind or, on a ratable basis, in any combination thereof.

  

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 (e) If at any time any portion of any monies collected or received by the Collateral Agent would, but for
the provisions of this Section 14(e), be payable in respect of a Contingent CA Secured Obligation or an XCFI Secured Obligation that is not then due and payable (by reason of acceleration or otherwise), the Collateral Agent shall not apply any
monies to pay such Secured Obligation but instead shall request the holder thereof, at least 10 days before each proposed distribution hereunder, to notify the Collateral Agent as to the maximum amount of such Secured Obligation if then
ascertainable (e.g. in the case of a Letter of Credit, the maximum amount available for subsequent drawings thereunder, regardless of whether the conditions to drawing thereunder are then satisfied). If the holder of such Secured Obligation does not
notify the Collateral Agent of the maximum ascertainable amount thereof at least two Business Days before such distribution, such holder will not be entitled to share in such distribution. If such holder does so notify the Collateral Agent as to the
maximum ascertainable amount thereof, the Collateral Agent will allocate to such holder a portion of the monies to be distributed in such distribution, calculated as if such Secured Obligation were outstanding and then due and payable in such
maximum ascertainable amount. However, the Collateral Agent will not apply such portion of such monies to pay such Secured Obligation, but instead will hold such monies or invest such monies in Liquid Investments. All such monies and Liquid
Investments and all proceeds thereof will constitute Collateral hereunder, but will be subject to distribution in accordance with this Section 14(e) rather than Section 14(a), (b) and (c). The Collateral Agent will hold all such monies and Liquid
Investments and the net proceeds thereof in trust until all or part of such Secured Obligation becomes due and payable (or, in the case of a Contingent CA Secured Obligation, becomes a Non-Contingent CA Secured Obligation), whereupon the Collateral
Agent at the request of the relevant Secured Party will apply the amount so held in trust to pay such Secured Obligation, provided that, if the other Secured Obligations theretofore paid pursuant to the same clause of Section 14(a) were not
paid in full, the Collateral Agent will apply the amount so held in trust to pay the same percentage of such Secured Obligation as the percentage of such other Secured Obligations theretofore paid pursuant to the same clause of Section 14(a) . If
(i) the holder of such Secured Obligation advises the Collateral Agent that no portion thereof (A) has not become due and payable or (B) remains a Contingent CA Secured Obligation, as the case may be, and (ii) the Collateral Agent still holds any
amount held in trust pursuant to this Section 14(e) in respect of such Secured Obligation (after paying all amounts payable pursuant to the preceding sentence with respect to any portions thereof that have become due and payable or have become
Non-Contingent CA Secured Obligations, as the case may be), such remaining amount will be applied by the Collateral Agent in the order of priorities set forth in the relevant clause of Section 14(a). 
  

 38 







 (f) In making the payments and allocations required by this Section 14, the Collateral Agent may rely
upon information supplied to it pursuant to Section 15(c). All distributions made by the Collateral Agent pursuant to this Section 14 shall be final (except in the event of manifest error) and the Collateral Agent shall have no duty to inquire as to
the application by any Secured Party of any amount distributed to it. 
  
 (g) Notwithstanding anything to the contrary contained herein or in any other Security Document, the aggregate amount of proceeds of all sales of, and other realizations upon, Restricted Collateral applied pursuant to this Section 14 to pay
(i) CA Secured Obligations, (ii) XCFI Secured Obligations and (iii) any Hedging Secured Obligations that would be required to be taken into account in calculating the Basket Lien Available Amount shall not at any time exceed the Basket Lien
Available Amount at such time. 
  
 SECTION 15. Concerning the
Collateral Agent.  
  
 The provisions of Article 8 of the
Credit Agreement shall inure to the benefit of the Collateral Agent in respect of this Agreement (as if the Collateral Agent were the Administrative Agent referred to therein) and shall be binding upon the parties to the Credit Agreement. In
furtherance, and not in derogation of, the rights, privileges and immunities of the Collateral Agent therein specified: 
  
 (a) The Collateral Agent is authorized to take all such action as is provided to be taken by it as Collateral Agent hereunder and all
other action reasonably incidental thereto. As to any matters not expressly provided for herein (including, without limitation, the timing and methods of realization upon the Collateral) the Collateral Agent shall act or refrain from acting in
accordance with written instructions from the Required Lenders or, in the absence of such instructions, in accordance with its discretion. 
  
 (b) The Collateral Agent shall not be responsible for the existence, genuineness or value of any of the Collateral or for the validity,
perfection, priority or enforceability of the Security Interests in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part under the Security Documents. The Collateral Agent shall have
no duty to ascertain or inquire as to the performance or observance of any of the terms of any Security Document by any Lien Grantor. 
  
 (c) For all purposes of the Security Documents, including determining the amounts of the Secured Obligations and whether a Secured
Obligation is a Contingent CA Secured Obligation or not, the 

  

 39 







 
Collateral Agent will be entitled to rely on information from (i) its own records for information as to the Lender and Agents, their Secured Obligations and
actions taken by them, (ii) any Secured Party for information as to its Secured Obligations and actions taken by it, to the extent that the Collateral Agent has not obtained such information from the foregoing sources and (iii) Xerox, to the extent
that the Collateral Agent has not obtained information from the foregoing sources. 
  
 SECTION 16. Appointment of Co-Collateral Agents.  
  
 At any time or times, upon prior written notice to Xerox and in order to (a) comply with any legal requirement in any jurisdiction, (b) preserve or protect the Collateral, (c) exercise remedies specified in this
Agreement or (d) otherwise carry out duties or exercise rights specified in this Agreement, the Collateral Agent may appoint another bank or trust company or one or more other Persons, either to act as co-agent or co-agents, jointly with the
Collateral Agent, or to act as separate agent or agents on behalf of the Secured Parties with such power and authority as may be necessary for the effective operation of the provisions hereof and may be specified in the instrument of appointment
(which may, in the discretion of the Collateral Agent, include provisions for the protection of such co-agent or separate agent similar to the provisions of Section 15). 
  
 SECTION 17. Expenses.  
  
 (a) Xerox agrees that it will forthwith upon demand pay to the Collateral Agent: 
  
 (i) the amount of any Taxes which the Collateral Agent may have been required to pay by reason of the
Security Interests or to free any of the Collateral from any other Lien thereon; and 
  
 (ii) the amount of any and all reasonable out-of-pocket expenses, including the reasonable fees and disbursements of counsel and, upon the
occurrence and during the continuance of an Event of Default, of any other experts (other than financial advisors or similar persons), which the Collateral Agent may incur in connection with (w) the administration or enforcement of the Security
Documents, including such expenses as are incurred to preserve the value of the Collateral and the validity, perfection, rank and value of any Security Interest, (x) the collection, sale or other disposition of any of the Collateral, (y) the
exercise by the Collateral Agent of any of the rights conferred upon it under the Security Documents or (z) any Event of Default. 
  

 40 







 (b) Any such amount not paid on demand shall bear interest at the rate applicable to Base Rate Loans from
time to time plus 2% and shall be an additional Secured Obligation hereunder. 
  
 SECTION 18. Taxes.  
  
 Each Guarantor agrees that: (a) All payments of Secured Obligations and all other amounts payable on, under or in respect of this Agreement or any other Security Document by such Guarantor, including, without limitation, amounts payable by
such Guarantor under clause (b) of this Section 18, shall be made free and clear of and without deduction for all present and future Taxes (other than income or franchise taxes imposed on (or measured by) the net income of a Secured Party by a
Secured Party Jurisdiction of that Secured Party) including any such Taxes imposed with respect to this Agreement or any other Security Document, the execution, registration, enforcement, notarization or other formalization of any thereof, and any
payments of principal, interest, charges, fees, commissions or other amounts made on, under or in respect thereof (hereinafter called “Covered Taxes”), provided that, if any Guarantor shall be required to deduct any Covered
Taxes from such payments, then (i) the sum payable will be increased as necessary so that, after all required deductions (including deductions applicable to additional sums payable under this Section 18) are made, each relevant Secured Party
receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Guarantor shall make such deductions and (iii) such Guarantor shall pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law. The parties agree to cooperate and provide information with respect to United States and foreign withholding tax matters relating to payments under this Agreement in a manner consistent with the principles of Section
2.15(e) of the Credit Agreement, mutatis mutandis. The parties also agree that the provisions of Section 2.15(f) of the Credit Agreement apply, mutatis mutandis, to Covered Taxes that are deducted, withheld or paid by a Guarantor
pursuant to this Agreement. 
  
 (b) Each Guarantor shall indemnify
each Secured Party, within 15 Business Days after written demand therefor, for the full amount of any Covered Taxes paid or incurred by such Secured Party with respect to any payment by or obligation of such Guarantor under or with respect to this
Agreement or any other Security Document (including Covered Taxes imposed or asserted on or attributable to amounts payable under this Section 18) and any expenses arising therefrom or with respect thereto, whether or not such Covered Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority. Each Secured Party shall make a good faith effort to verify that such Covered Taxes are correctly and legally imposed or asserted by the relevant Governmental
Authority. An officer’s certificate as to the amount of any such payment 

  

 41 







 
delivered to Xerox by a Secured Party on its own behalf, or by the Collateral Agent on behalf of a Secured Party, shall be conclusive absent manifest error.

  
 (c) Within 15 Business Days after any Guarantor pays any
Covered Taxes to a Governmental Authority, such Guarantor shall deliver to the Collateral Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment. Each Guarantor shall promptly furnish to
each Secured Party any other information, documents and receipts that the Secured Party may from time to time reasonably request to establish to its satisfaction that full and timely payment of all Covered Taxes has been made. The applicable
Guarantor will be deemed to have satisfied the requirement of this Section 18(c) if it has furnished such information, documents and/or receipts to the Collateral Agent. 
  
 (d) Notwithstanding paragraphs (a) and (b) above, the payment increases and indemnities pursuant to those paragraphs will
not apply to the payment of any Secured Obligation to the extent that (in the absence of this paragraph (d)) the Secured Party would thereby receive a net cash payment in respect of that Secured Obligation greater than if that Secured Obligation had
been paid by the relevant Borrower. 
  
 SECTION 19. Termination
of Security Interests; Reinstatement of Security Interests.  
  
 (a) Each Security Interest granted under any Security Document shall automatically terminate, and all rights to the relevant Collateral shall revert to the relevant Lien Grantor, if, as and to the extent permitted by Section 9.03 of the
Credit Agreement, including upon satisfaction of the Ratings Condition (subject to reinstatement pursuant to Section 19(f)), provided that a Security Interest granted under any Mortgage shall not automatically terminate upon the satisfaction
of the Ratings Condition. 
  
 (b) Upon the satisfaction of the
Ratings Condition (and only for so long as the Ratings Condition continues to be satisfied), the Collateral Agent shall not enforce any remedies with respect to any Liens granted under any Mortgage and, at the request of Xerox, the Collateral Agent
shall terminate the Liens granted pursuant to any Mortgage. 
  
 (c) Notwithstanding any contrary provision of this Agreement, if at any time prior to the termination of the Security Interests pursuant to this Section 19, the XCFI Secured Obligations are paid in full, all rights hereunder of the holders
of XCFI Secured Obligations shall simultaneously terminate. 
  

 42 







 (d) Notwithstanding any contrary provision of this Agreement, if at any time prior to the termination of
the Security Interests pursuant to this Section 19, (i) a Designated Hedging Agreement shall be terminated, all rights hereunder of the relevant Hedging Secured Party in respect of such agreement shall simultaneously terminate or (ii) Xerox and the
relevant Hedging Secured Party so agree in writing, the rights hereunder of such Hedging Secured Party in respect of a Designated Hedging Agreement shall terminate. 
  
 (e) Upon any termination of a Security Interest or release of Collateral, the Collateral Agent will, at the expense of the
relevant Lien Grantor, execute and deliver to such Lien Grantor such documents as such Lien Grantor shall reasonably request to evidence the termination of such Security Interest or the release and reassignment of such Collateral, as the case may
be. 
  
 (f) Reinstatement of Collateral. If the Security
Interests are terminated upon the satisfaction of the Ratings Condition, and thereafter, at any subsequent time, the Ratings Condition is not satisfied: 
  
 (i) the Security Interests under this Agreement shall be automatically and immediately reinstated on the terms and conditions provided
hereunder, subject only to Liens permitted hereunder or under the Credit Agreement; 
  
 (ii) within 30 days after the Reinstatement Date: 
  
 (A) Xerox will cause the Equity Interests of any Subsidiary the Equity Interests of which would have been
required to be pledged pursuant to Section 5.11(a) of the Credit Agreement if the Ratings Condition had not been satisfied at such time to be pledged; 
  
 (B) Xerox will cause any Subsidiary that pursuant to Section 5.11(b) of the Credit Agreement would have been required to become a
Subsidiary Guarantor if the Ratings Condition had not been satisfied to deliver a duly executed Guarantee and Security Agreement Supplement whereupon such Subsidiary will become a “Guarantor” and a “Lien Grantor” hereunder;

  
 (C) In the case of any Lien granted pursuant
to any Mortgage that has been terminated at Xerox’s request pursuant to Section 19(b), Xerox will, or will cause the relevant mortgagor under any Mortgage to execute, deliver and record a new 

  

 43 







 
mortgage, in form and substance reasonably satisfactory to the Collateral Agent (the “Reinstated Mortgage”); 
  
 (D) Xerox will, and will cause the other Lien Grantors
(including any Subsidiaries who have become Lien Grantors pursuant to Section 19(f)(ii)(B) above) and each other mortgagor under any Mortgage to take all actions necessary or reasonably desirable to cause the Liens created under the Security
Documents to be perfected and protected against all creditors and transferees of the Borrowers under applicable law, including complying with Sections 5, 6 and 7 hereunder; 
  
 (E) Xerox will deliver to the Collateral Agent a certificate of a Responsible Officer stating that all of
the representations and warranties set forth in Section 3 hereof are true and correct as of such date and, for the purpose of such certificate, all references to “Effective Date” in such representations and warranties shall be deemed to
mean the date on which such certificate is delivered. Such certificate shall attach a replacement Schedule 1 and an updated Perfection Certificate; and 
  
 (F) the Administrative Agent shall have received (i) written confirmation of the regrant by each Lien Grantor of the Security Interests
and (ii) a favorable written opinion (addressed to the Administrative Agent and the Lenders) of counsel for Xerox and the other Lien Grantors as to the creation and perfection of the reinstated Security Interests (or, in the case of any new
Collateral, the new Security Interests) and covering such other matters relating to the Lien Grantors and the Security Interests as the Administrative Agent shall reasonably request, provided that the foregoing opinion shall not address the
Reinstated Mortgage, which shall be addressed by the opinion required by Section 19(f)(iii)(B) below. 
  
 (iii) within 45 days after the Reinstatement Date: 
  
 (A) Xerox will, and will cause each other mortgagor under any Mortgage to deliver to the Collateral Agent a
title insurance policy insuring the Lien of the Reinstated Mortgage; and 
  
 (B) the Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent 

  

 44 







 
and the Lenders) of local counsel for each mortgagor under any Mortgage as to the creation and perfection of the Reinstated Mortgage and covering such other
matters relating to such mortgagor and the Security Interests as the Administrative Agent shall reasonably request. 
  
 SECTION 20. Additional Guarantors and Lien Grantors.  
  
 Any Domestic Subsidiary may become a party hereto by signing and delivering to the Collateral Agent a Guarantee and Security Agreement Supplement,
whereupon such Subsidiary shall become a “Subsidiary Guarantor” and a “Lien Grantor” as defined herein. 
  
 SECTION 21. Additional Secured Obligations.  
  
 Xerox may from time to time designate obligations under any Hedging Agreement between Xerox or a Subsidiary and a Lender or an Affiliate of a Lender (a
“Designated Hedging Agreement”) as an additional Secured Obligation for purposes hereof by delivering to the Administrative Agent a certificate signed by a Responsible Officer that (i) identifies such Hedging Agreement, specifying
the name and address of the Lender or an Affiliate of any Lender party thereto, the notional amount thereof and the expiration date thereof and (ii) states that Xerox’s obligations or such Secured Subsidiary Guarantor’s obligations
thereunder, as applicable, are designated as Secured Obligations for purposes hereof. 
  
 SECTION 22. Notices.  
  
 All notices, requests and other communications to any party hereunder shall be in writing (including bank wire, telex, facsimile transmission or similar writing) and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail, sent by telecopy or sent by electronic mail, as follows: 
  
 (a) if to Xerox: 
  
 Xerox Corporation 
 800 Long Ridge Road 
 Stamford, CT 06904 
 Attention: Treasury Department (Telecopy No. 203-968-4373), with a copy to General Counsel  (Telecopy No. 203-968-3446) 
 Email: rhonda.seegal@usa.xerox.com with a simultaneous copy to christina.clayton@usa.xerox.com 
  
 (b) if to any Original Lien Grantor listed on the signature
pages hereof: 
  

 45 







 c/o Xerox Corporation 
 800 Long Ridge Road 
 Stamford, CT 06904 
 Attention: Treasury Department (Telecopy No. 203-968-4373), with a copy to General Counsel  (Telecopy No.
203-968-3446) 
 Email: rhonda.seegal@usa.xerox.com with a simultaneous copy to christina.clayton@usa.xerox.com 
  
 (c) if to any other Lien Grantor, its address, facsimile number or e-mail
address set forth in its first Guarantee and Security Agreement Supplement; 
  
 (d) in the case of the Collateral Agent and the Administrative Agent: 
  
 JPMorgan Chase Bank 
 270 Park Avenue, 4th Floor 
 New York, New York 10017 
 Attention: David Mallett, Vice President (Telecopy No. 212-270-4584) 
 Email: david.mallet@jpmorgan.com 
  
 (e) if to any Lender, to its address, facsimile number or e-mail address
specified in or pursuant to Section 9.01 of the Credit Agreement. 
  
 Any party may change its address, facsimile number and/or e-mail address for purposes of this Section 22 by giving notice of such change to the Administrative Agent and the Lien Grantors in the manner specified above. 
  
 All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement will be deemed to have been given on the date of receipt, or, in the case of any notice of the exercise of any remedy hereunder sent by electronic mail, confirmation by the recipient of the receipt of such
notice. 
  
 It is acknowledged that the Collateral Agent may
provide notices and other communications to the Lenders using “Intralinks” (www.intralinks.com) or a similar, reputable forum on the internet, and such notices or communications will be deemed to have been given on the date of notification
by electronic mail of posting to such forum. 
  
 SECTION 23.
Waivers; Non-Exclusive Remedies.  
  
 No failure on the part
of the Collateral Agent or any Secured Party to exercise, and no delay in exercising and no course of dealing with respect to, any right or remedy under any Loan Document shall operate as a waiver thereof nor 

  

 46 







 
shall any single or partial exercise by the Collateral Agent or any Secured Party of any right under any Loan Document preclude any other or further exercise
thereof or the exercise of any other right or remedy. The rights and remedies in the Loan Documents are cumulative and are not exclusive of any other rights or remedies provided by law. 
  
 SECTION 24. Successors and Assigns. 
  
 This Agreement is for the benefit of the Collateral Agent and the Secured Parties and their successors and, in the case of
the Lenders, permitted assigns pursuant to Section 9.05 of the Credit Agreement and in the event of an assignment of all or any of the Secured Obligations, the rights hereunder, to the extent applicable to the obligation so assigned, shall be
automatically transferred with such obligation. This Agreement shall be binding on Xerox, each Subsidiary Guarantor and its successors and assigns. 
  
 SECTION 25. Changes in Writing.  
  
 Neither this Agreement nor any provision hereof may be waived, amended, modified or terminated except pursuant to an agreement or agreements in writing
entered into by the parties hereto, with the consent of such Lenders as are required to consent thereto under Section 9.02 of the Credit Agreement. 
  
 SECTION 26. New York Law.  
  
 (a) This Agreement shall be construed in accordance with and governed by the laws of the State of New York, except as otherwise required by mandatory
provisions of law and except to the extent that remedies provided by the laws of any jurisdiction other than New York are governed by the laws of such jurisdiction. 
  
 (b) Each of the Guarantors irrevocably and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any relevant appellate court, in any action or proceeding arising out of or
relating to this Agreement and, except to the extent expressly provided therein, any other Security Document, or for recognition or enforcement of any judgment, and each party hereto irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court. Each party hereto agrees that, to the extent permitted by Applicable Law, a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in any Security 

  

 47 







 
Document shall affect any right that any Secured Party may otherwise have to bring any action or proceeding relating to any Security Document against any
Guarantor or its properties in the courts of any jurisdiction. 
  
 (c) Each of the Guarantors irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to any Security Document in any court referred to in Section 26(b). Each party hereto irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of any such suit, action or
proceeding in any such court. 
  
 (d) Each party hereto
irrevocably consents to service of process in the manner provided for notices in Section 22. Nothing in any Security Document will affect the right of any party hereto to serve process in any other manner permitted by law. 
  
 SECTION 27. WAIVER OF JURY TRIAL.  
  
 EACH PARTY HERETO AND ANY OTHER SECURED PARTY BY ITS ACCEPTANCE OF THE
BENEFITS HEREOF OR BY SEEKING TO ENFORCE THIS AGREEMENT WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY SECURITY
DOCUMENT OR ANY TRANSACTION CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY), AND EACH OF SUCH PARTIES (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 27. 
  
 SECTION 28.
Severability.  
  
 If any provision of any Security Document
is invalid or unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions of the Security Documents shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of
the Collateral Agent and the Secured Parties in order to carry out the intentions of the parties hereto as nearly as may be possible and (ii) the invalidity or unenforceability of any 

  

 48 







 
provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction. 
  

 49 







 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written. 
  
  

	 XEROX CORPORATION

		
	 By:
	 	 /s/    RHONDA L.
SEEGAL      


	 Name:
 Title:
	 	 Rhonda L. Seegal
 Vice President and Treasurer



  

	 JPMORGAN CHASE BANK, as Collateral Agent

		
	 By:
	 	 /s/    DAN M.
MALLETT      


	 Name:
 Title:
	 	 Dan M. Mallett
 Vice President



  

 F-1 








	 Subsidiary Guarantors:

	
	 XEROX FINANCIAL SERVICES, INC.

		
	 By:
	 	 /s/    JOHN F.
RIVERA    


	 Name:
 Title:
	 	 John F. Rivera
 Treasurer



  

	 INTELLIGENT ELECTRONICS, INC.

		
	 By:
	 	 /s/    ROBERT HOPE  


	 Name:
 Title:
	 	 Robert Hope
 Treasurer



  

	 XEROX CREDIT CORPORATION

		
	 By:
	 	 /s/    JOHN F.
RIVERA    


	 Name:
 Title:
	 	 John F. Rivera
 Vice President, Treasurer and
 Chief Financial Officer



  

	XEROX INTERNATIONAL JOINT MARKETING, INC.
		
	 By:
	 	 /s/    MARTIN S.
WAGNER    


	 Name:
 Title:
	 	 Martin S. Wagner
 Secretary



  

 F-2 







 SCHEDULE 1 
 to Security Agreement 
  
 PLEDGED SECURITIES 
 (as of the Effective Date) 
  

	 Issuer

	 	 Jurisdiction
of
Organization

	 	 Owner of
Security

	 	 Percentage
Owned

	 	 Number of
Shares or
Units



  

 S-1-1 







 SCHEDULE 2 
 to Security Agreement 
  
 TERMS OF SUBORDINATION 
  
 SECTION 1. Agreement
to Subordinate. The XCC Subordinated Obligations are subordinated in right of payment, to the extent and in the manner provided in this Schedule 2, to the prior payment in full of all XCC Senior Obligations. The subordination provisions are for
the benefit of and enforceable by the holders of XCC Senior Obligations or their designated representatives. 
  
 SECTION 2. Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution of the assets of XCC to creditors upon a total or partial
liquidation or a total or partial dissolution of XCC or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to XCC or its property: 
  
 (1) holders of XCC Senior Obligations are entitled to receive payment in full in cash of all XCC Senior
Obligations, including all interest accrued or accruing on XCC Senior Obligations after the commencement of any bankruptcy, insolvency or reorganization or similar case or proceeding at the contract rate (including, without limitation, any contract
rate applicable upon default) specified in the XCC Indentures, whether or not the claim for the interest is allowed as a claim in the case or proceeding with respect to the XCC Senior Obligation (only such payment constituting “payment in
full”) before any holder of XCC Subordinated Obligations (the “XCC Secured Parties”) will be entitled to receive any payment of XCC Subordinated Obligations; and 
  
 (2) until the XCC Senior Obligations are paid in full, any distribution from the assets of XCC to which XCC
Secured Parties would be entitled but for these subordination provisions shall instead be made to holders of XCC Senior Obligations as their interests may appear. 
  
 SECTION 3. Payment Default at Final Maturity. XCC shall not pay any XCC Subordinated Obligations until such time as
all the XCC Senior Obligations have been paid in full when due. 
  
 SECTION 4. When Distribution Must Be Paid Over. If a payment or other distribution is made to the XCC Secured Parties that because of these subordination provisions should not have been made to them, the XCC Secured Parties that
receive the distribution shall hold it in trust for holders of XCC Senior Obligations and pay it over to them as their interests may appear. 
  

 S-2-1 







 SECTION 5. Subrogation. A distribution made under these subordination provisions to holders of XCC
Senior Obligations which otherwise would have been made to the XCC Secured Parties is not, as between XCC and the XCC Secured Parties, a payment by XCC on XCC Senior Obligations. After all XCC Senior Obligations are paid in full and until the XCC
Subordinated Obligations are paid in full, the XCC Secured Parties will be subrogated to the rights of holders of XCC Senior Obligations to receive payments in respect of XCC Senior Obligations, which, to the extent received by the XCC Secured
Parties, do not constitute, as between XCC and the XCC Secured Parties, payments by XCC on the XCC Subordinated Obligations. 
  
 SECTION 6. Relative Rights; Subordination Not to Prevent Events of Default or Limit Right to Accelerate. These subordination provisions define the
relative rights of the XCC Secured Parties and holders of XCC Senior Obligations and do not impair, as between XCC and the XCC Secured Parties, the obligation of XCC, which is absolute and unconditional, to pay principal of and interest on the XCC
Subordinated Obligations in accordance with their terms. The failure to make a payment pursuant to the XCC Subordinated Obligations by reason of these subordination provisions does not prevent the occurrence of a Default, nor do these subordination
provisions have any effect on the right of the XCC Secured Parties or the Collateral Agent to accelerate the maturity of the XCC Subordinated Obligations upon an Event of Default or prevent the Collateral Agent or any XCC Secured Party from
exercising its available remedies upon a Default, subject to the rights of holders of XCC Senior Obligations to receive distributions otherwise payable to the XCC Secured Parties. 
  
 SECTION 7. Subordination May Not Be Impaired by Company. No right of any holder of XCC Senior Obligations to enforce
the subordination of the XCC Subordinated Obligations will be impaired by any act or failure to act by XCC or by its failure to comply with this Schedule 2. 
  
 SECTION 8. Rights of Collateral Agent. The Collateral Agent may continue to make payments on the XCC Subordinated Obligations and will not be
charged with knowledge of the existence of facts that would prohibit the making of any such payments unless, not less than one Business Day prior to the date of such payment, the Collateral Agent receives notice satisfactory to it from XCC or a
holder of XCC Senior Obligations that payments may not be made under this Schedule 2. 
  
 SECTION 9. Collateral Agent Not Fiduciary for Holders of XCC Senior Obligations. The Collateral Agent will not be deemed to owe any fiduciary duty to the holders of XCC Senior Obligations and will not be liable
to any such holders if it mistakenly pays over or distribute to the XCC Secured Parties, or to XCC or any other Person, any money or assets to which holders of XCC Senior Obligations are entitled by virtue of this Schedule 2. 
  

 S-2-2 







 SECTION 10. Reliance by Holder of XCC Senior Obligations on Subordination Provisions; No Waiver.
(a) Each XCC Secured Party acknowledges and agrees that these subordination provisions are, and are intended to be, an inducement and a consideration to each holder of XCC Senior Obligations, to acquire or to hold such XCC Senior Obligations, and
each holder of XCC Senior Obligations will be deemed conclusively to have relied on these subordination provisions in acquiring and holding such XCC Senior Obligations. 
  
 (b) The holders of XCC Senior Obligations may, at any time and from time to time, without the consent of or notice to the
Collateral Agent or the XCC Secured Parties, without incurring any liability or responsibility to the XCC Secured Parties, and without impairing the rights of holders of XCC Senior Obligations under these subordination provisions, do any of the
following: 
  
 (1) change the manner, place or
terms of payment or extend the time of payment of, or renew or alter, XCC Senior Obligations or any instrument evidencing the same or any agreement under which XCC Senior Obligations is outstanding or secured; 
  
 (2) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing XCC Senior Obligations; 
  
 (3) release any Person liable in any manner for the payment of XCC Senior Obligations; or 
  
 (4) exercise or refrain from exercising any rights against XCC and any other Person. 
  

 S-2-3 







 EXHIBIT A 
 to Security Agreement 
  
 PERFECTION CERTIFICATE 
  
 The undersigned is a
duly authorized officer of XEROX CORPORATION (“Xerox”). With reference to the Guarantee and Security Agreement (the “Security Agreement”) dated as of June [·], 2003 among XEROX CORPORATION, the Subsidiary Guarantors party thereto and JPMORGAN CHASE BANK, as Collateral Agent (terms defined therein being used herein as therein defined),
the undersigned certifies to the Collateral Agent and each other Secured Party as follows: 
  

	 	A.	 	Information Required for Filings and Searches for Prior Filings. 

  
 1. Jurisdiction of Organization. The jurisdiction of organization of each Lien Grantor is set forth in Schedule 3.12 to the Credit
Agreement. 
  
 2. Name. The exact legal
name of each Lien Grantor as it appears in its organizational documents is set forth in Schedule 3.12 to the Credit Agreement. 
  
 3. Prior Names. (a) Set forth below is each other corporate or other legal name that each of Xerox, Xerox Financial Services, Inc.
(“XFSI”), Intelligent Electronics, Inc. (“IEI”) and Xerox International Joint Marketing, Inc. (“XIJMI”) has had within the past five years, together with the date of the relevant change: 

 
 (b) Except as set forth in Schedule 1 hereto, none of Xerox, XFSI, IEI or
XIJMI has changed its corporate structure in any way within the past five years. 
  
 4. Filing Office. In order to perfect, as of the Effective Date, the Security Interests granted by each Lien Grantor, to the extent
that such Security Interests may be perfected by filing a financing statement pursuant to the UCC, a duly signed financing statement on Form UCC-1, with the collateral described as set forth on Schedule 2 hereto, should be on file with respect to
each such Lien Grantor in the Office of the Secretary of State in the jurisdiction of organization of such Lien Grantor as set forth in Schedule 3.12 to the Credit Agreement. 
  

	 	B.	 	Additional Information Required for Searches for Prior Filings Under Old Article 9. 

  

 A-1 







 Current Locations. The chief executive office of each of Xerox, XFSI, IEI and XIJMI is located at
the following address: 
  

	 Name of Lien Grantor

	 	 Mailing Address

	 	 County

	  	State



  
 Xerox, XFSI, IEI and XIJMI [do] [do
not] have a place of business in another county of the State where their respective chief executive offices are located. 
  

	 	C.	 	Search Reports. 

  
 A true copy of a file search report from the central UCC filing office in each jurisdiction where Xerox, XFSI, IEI or XIJMI has any material assets with
respect to Xerox, XFSI, IEI or XIJMI, as applicable (searches in local filing offices, if any, are not required), has been provided to the Collateral Agent. This file search report covers Xerox and each Material Domestic Subsidiary. 
  

	 	D.	 	UCC Filings. 

  
 Schedule 3.12 to the Credit Agreement sets forth filing information with respect to the filings referred to in Part A-4 above (including name,
jurisdiction of organization and federal employer identification number of each Lien Grantor) and Schedule 3 hereto sets forth the address of the chief executive office of each Lien Grantor. All filing fees and taxes payable in connection with such
filings will be paid by Xerox. 
  
 IN WITNESS WHEREOF, I have
hereunto set my hand this      day of June, 2003. 
  

	  


	 Name:
	 	 
	 Title:
	 	 


  

 A-2 







 Schedule 1 
 to Perfection Certificate 
  
 CHANGES IN CORPORATE STRUCTURE 
  

 A-3 







 Schedule 2 
 to Perfection Certificate 
  
 DESCRIPTION OF COLLATERAL 
  
 All personal
property, provided that, upon the sale, disposition, assignment, lease, license, conveyance or other transfer by the Debtor of personal property (including the sale, disposition, assignment, lease, license, conveyance or other transfer of
accounts and other assets in connection with the monetization or other financing of such accounts and other assets) from time to time, such personal property shall be automatically released from the collateral pursuant to Section 9.03 of the Credit
Agreement dated as of June 19, 2003 among the Debtor, the Secured Party and the other borrowers, lenders and agents party thereto. 
  

 A-4 







 Schedule 3 
 to Perfection Certificate 
  
 CHIEF EXECUTIVE OFFICES OF LIEN GRANTORS 
  

	 Name of Lien Grantor

	 	 Chief Executive Office



  

 A-5 







 EXHIBIT B 
 to Security Agreement 
  
 ISSUER CONTROL AGREEMENT 
  
 ISSUER CONTROL
AGREEMENT dated as of             ,              among [NAME OF LIEN GRANTOR] (with its successors, the
“Lien Grantor”), JPMORGAN CHASE BANK, as Collateral Agent (with its successors, the “Secured Party”), and
                     (the “Issuer”). All references herein to the “UCC” refer to the Uniform Commercial Code
as in effect from time to time in [Issuer’s jurisdiction of incorporation]. 
  
 W I T N E S S E T H : 
  
 WHEREAS,
the Lien Grantor is the registered holder of [specify Pledged Uncertificated Securities issued by the Issuer] issued by the Issuer (the “Securities”); 
  
 WHEREAS, pursuant to a Guarantee and Security Agreement dated as of [date of Security Agreement] (as such agreement may be
amended and/or supplemented from time to time, the “Security Agreement”), the Lien Grantor has granted to the Secured Party a continuing security interest (the “Security Interest”) in all right, title and interest
of the Lien Grantor in, to and under the Securities, whether now existing or hereafter arising; and 
  
 WHEREAS, the parties hereto are entering into this Agreement in order to perfect the Security Interest on the Securities; 
  
 NOW, THEREFORE, the parties hereto agree as follows: 
  
 Section 1. Nature of Securities. The Issuer confirms that (i) the
Securities are “uncertificated securities” (as defined in Section 8-102 of the UCC) and (ii) the Lien Grantor is registered on the books of the Issuer as the registered holder of the Securities. 
  
 Section 2. Instructions. The Issuer agrees to comply with any
“instruction” (as defined in Section 8-102 of the UCC) originated by the Secured Party and relating to the Securities without further consent by the Lien Grantor or any other person. The Lien Grantor consents to the foregoing agreement by
the Issuer. 
  

 B-1 







 Section 3. Waiver of Lien; Waiver of Set-off. The Issuer waives any security interest, lien or
right of setoff that it may now have or hereafter acquire in or with respect to the Securities. The Issuer’s obligations in respect of the Securities will not be subject to deduction, set-off or any other right in favor of any person other than
the Secured Party. 
  
 Section 4. Choice of Law. This
Agreement shall be governed by the laws of [Issuer’s jurisdiction of incorporation]. 
  
 Section 5. Conflict with Other Agreements. There is no agreement (except this Agreement) between the Issuer and the Lien Grantor with respect to the Securities [except for [identify any existing other
agreements] (the “Existing Other Agreements”)]. In the event of any conflict between this Agreement (or any portion hereof) and any other agreement [(including any Existing Other Agreement)] between the Issuer and the Lien Grantor
with respect to the Securities, whether now existing or hereafter entered into, the terms of this Agreement shall prevail. 
  
 Section 6. Amendments. No amendment or modification of this Agreement or waiver of any right hereunder shall be binding on any party hereto unless
it is in writing and is signed by all the parties hereto. 
  
 Section 7. Notice of Adverse Claims. Except for the claims and interests of the Secured Party and the Lien Grantor in the Securities, the Issuer does not know of any claim to, or interest in, the Securities. If any person asserts any
lien, encumbrance or adverse claim (including any writ, garnishment, judgment, attachment, execution or similar process) against the Securities, the Issuer will promptly notify the Secured Party and the Lien Grantor thereof. 
  
 Section 8. Maintenance of Securities. In addition to, and not in lieu
of, the obligation of the Issuer to honor instructions as agreed in Section 2 hereof, the Issuer agrees as follows: 
  
 (i) Lien Grantor Instructions; Notice of Exclusive Control. So long as the Issuer has not received a Notice of Exclusive Control
(as defined below), the Issuer may comply with instructions of the Lien Grantor or any duly authorized agent of the Lien Grantor in respect of the Securities. After the Issuer receives a written notice from the Secured Party that it is exercising
exclusive control over the Securities (a “Notice of Exclusive Control”), the Issuer will cease complying with instructions of the Lien Grantor or any of its agents. 
  
 (ii) Non-Cash Dividends and Distributions. After the Issuer receives a Notice of Exclusive Control,
the Issuer shall deliver to the 

  

 B-2 







 
Secured Party all dividends, interest and other distributions paid or made upon or with respect to the Securities. 
  
 (iii) Voting Rights. Until the Issuer receives a
Notice of Exclusive Control, the Lien Grantor shall be entitled to direct the Issuer with respect to voting the Securities. 
  
 Section 9. Representations, Warranties and Covenants of the Issuer. The Issuer makes the following representations, warranties and covenants:

  
 (i) This Agreement is a valid and binding
agreement of the Issuer enforceable in accordance with its terms. 
  
 (ii) The Issuer has not entered into, and until the termination of this Agreement will not enter into, any agreement with any other person relating to the Securities pursuant to which it has agreed, or will agree, to
comply with instructions (as defined in Section 8-102 of the UCC) of such person. The Issuer has not entered into any other agreement with the Lien Grantor or the Secured Party purporting to limit or condition the obligation of the Issuer to comply
with instructions as agreed in Section 2 hereof. 
  
 Section 10.
Successors. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns. 
  
 Section 11. Notices. Each notice, request or other communication given to any party hereunder shall be in writing (which term includes facsimile or
other electronic transmission) and shall be effective (i) when delivered to such party at its address specified below, (ii) when sent to such party by facsimile or other electronic transmission, addressed to it at its facsimile number or electronic
address specified below, and such party sends back an electronic confirmation of receipt or (iii) ten days after being sent to such party by certified or registered United States mail, addressed to it at its address specified below, with first class
or airmail postage prepaid: 
  
 Lien Grantor: 
  
 Secured Party: 
  
 Issuer: 
  

 B-3 







 Any party may change its address, facsimile number and/or e-mail address for purposes of this Section by giving notice of
such change to the other parties in the manner specified above. 
  
 Section 12. Termination. The rights and powers granted herein to the Secured Party (i) have been granted in order to perfect the Security Interest, (ii) are powers coupled with an interest and (iii) will not be affected by any bankruptcy of
the Lien Grantor or any lapse of time. The obligations of the Issuer hereunder shall continue in effect until the Secured Party has notified the Issuer in writing that the Security Interest in the Securities has been terminated pursuant to the
Security Agreement, and the Secured Party agrees to provide such notice of termination upon the request of the Lien Grantor on or after such termination of the Security Interest. 
  
 Section 13. Counterparts. This Agreement may be executed in any number of counterparts, all of which shall constitute
one and the same instrument, and any party hereto may execute this Agreement by signing and delivering one or more counterparts. 
  

	 [NAME OF LIEN GRANTOR]

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:



  

	 JPMORGAN CHASE BANK, as Collateral Agent

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:



  

	 [NAME OF ISSUER]

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:



  

 B-4 







 Exhibit A to 
 Issuer Control Agreement 
  
 [Letterhead of Secured Party] 
  
 [Date] 
  
 [Name and Address of Issuer] 
  
 Attention:
                                        
     
  
 Re: Notice of
Exclusive Control 
  
 Ladies and Gentlemen: 
  
 As referenced in the Issuer Control Agreement dated as of
            ,          among [Name of Lien Grantor], us and you (a copy of which is attached), we notify you that we will hereafter
exercise exclusive control over [specify Pledged Uncertificated Securities] registered in the name of [Name of Lien Grantor] (the “Securities”). You are instructed not to accept any directions or instructions with respect to the
Securities from any person other than the undersigned unless otherwise ordered by a court of competent jurisdiction. 
  
 You are instructed to deliver a copy of this notice by facsimile transmission to [Name of Lien Grantor]. 
  
 Very truly yours, 
  

	 JPMORGAN CHASE BANK, as Collateral Agent

		
	 By:
	 	  


	 	 	 Title:



  
 cc: [Name of Lien Grantor]

  

 B-5 







 EXHIBIT C 
 to Security Agreement 
  
 GUARANTEE AND SECURITY AGREEMENT SUPPLEMENT 
  
 GUARANTEE AND SECURITY AGREEMENT SUPPLEMENT dated as of             ,             , between [NAME OF LIEN
GRANTOR] (the “Lien Grantor”) and JPMORGAN CHASE BANK, as Collateral Agent. 
  
 WHEREAS, XEROX CORPORATION (“XEROX”), the Subsidiary Guarantors party thereto and JPMORGAN CHASE BANK, as Collateral Agent, are parties to a Guarantee and Security Agreement dated as of June
[·], 2003 (as heretofore amended and/or supplemented, the “Security Agreement”) under which (1) Xerox (a) secures certain Secured
Obligations, (b) guarantees Overseas CA Secured Obligations and certain Hedging Secured Obligations of its Subsidiaries and (c) secures its guarantee thereof, (2) the Subsidiary Guarantors guarantee certain of the foregoing obligations and (3) the
Secured Subsidiary Guarantors secure (a) their respective guarantees thereof and (b) their respective Hedging Secured Obligations; 
  
 WHEREAS, [name of Lien Grantor] desires to become [is] a party to the Security Agreement as a Secured Subsidiary Guarantor and Lien Grantor thereunder;
and 
  
 WHEREAS, terms defined in the Security Agreement (or whose
definitions are incorporated by reference in Sections 1(a) and 1(b) of the Security Agreement) and not otherwise defined herein have, as used herein, the respective meanings provided for therein; 
  
 NOW, THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Secured Guarantee. The Lien Grantor unconditionally guarantees the full and punctual payment of each CA Secured Obligation and each XCFI Secured
Obligation when due (whether at stated maturity, upon acceleration or otherwise). If Xerox or any Overseas Borrower fails to pay any CA Secured Obligation or any XCFI Secured Obligation punctually when due, the Lien Grantor agrees that it will
forthwith on demand pay the amount not so paid at the place and in the manner specified in the relevant Secured Agreement, provided, however, that notwithstanding the foregoing, if the Lien Grantor is not a Restricted Secured Subsidiary
Guarantor, then the XCFI Secured Obligations are not guaranteed by the Lien Grantor and no holder of any XCFI Secured Obligation shall have any claim against, or Lien on any asset of, the Lien Grantor 

  

 C-1 







 
by virtue of this Guarantee and Security Agreement Supplement, provided, further, that if the Lien Grantor is a Restricted Secured Subsidiary
Guarantor, then notwithstanding anything to the contrary contained herein, the liability and obligation of the Lien Grantor under this Section 1 with respect to the XCFI Secured Obligations (but not any CA Secured Obligation), as the case may be,
shall not be enforced by any action or proceeding wherein damages or any money judgment shall be sought against the Lien Grantor, except a foreclosure by the Collateral Agent upon the Restricted Collateral of the Lien Grantor, and any judgment in
any such foreclosure action shall be enforceable by the Collateral Agent against such Restricted Collateral only to the extent of the XCFI Percentage of the Lien Grantor’s interest in such Restricted Collateral and the guarantee extended hereby
for the benefit of any holder of XCFI Secured Obligations is provided to such holder under the express condition that the Collateral Agent has no right to sue for, seek or demand any deficiency judgment against the Lien Grantor with respect to the
XCFI Secured Obligations (but not any CA Secured Obligation) in any such foreclosure action under or by reason of, or in connection with, this Guarantee and Security Agreement Supplement, the Security Agreement or otherwise with respect to such
guarantee. The Lien Grantor acknowledges that, by signing this Security Agreement Supplement and delivering it to the Collateral Agent, the Lien Grantor becomes a “Subsidiary Guarantor” and “Lien Grantor” for all purposes of the
Security Agreement and that its obligations under the foregoing Secured Guarantee are subject to all the provisions of the Security Agreement (including those set forth in Section 2 thereof) applicable to the obligations of a Subsidiary Guarantor
thereunder. The obligations of the Lien Grantor under this Section 1 (and under Section 2(a) of the Security Agreement) shall be limited as provided in Section 2(i) of the Security Agreement. 
  
 2. Grant of Security Interests. (a) In order to secure its Secured
Subsidiary Obligations, the Lien Grantor grants to the Collateral Agent for the benefit of the Secured Parties a continuing security interest in and to all of its right, title and interest in the following property of the Lien Grantor, whether now
owned or existing or hereafter acquired or arising and regardless of where located, but subject to the exclusions in Section 2(b) (the “New Collateral”): (i) Accounts, (ii) Chattel Paper, (iii) Documents, (iv) Equipment, (v) General
Intangibles, (vi) Instruments, (vii) Inventory, (viii) Securities directly owned by the Lien Grantor and issued by any Material Subsidiary of the Lien Grantor, (ix) the Collateral Account, all Financial Assets credited to the Collateral Account from
time to time and all Security Entitlements in respect thereof, all cash deposited therein from time to time, and the Liquid Investments made pursuant to Section 8(d) of the Security Agreement, (x) all books and records (including, without
limitation, customer lists, credit files, computer programs, printouts and other computer materials and records) of the Lien Grantor pertaining to any of the 

  

 C-2 







 
New Collateral and (xi) all Proceeds of the New Collateral described in Clauses 2(a)(i) through 2(a)(x) hereof. 
  
 (b) The New Collateral shall not include: 
  
 (i) rights of the Lien Grantor in respect of any property or
asset which is prohibited from being pledged to the Collateral Agent as part of the Collateral by any Permitted Encumbrances; 
  
 (ii) Transferred Receivables and (A) security interests or liens and property subject thereto purporting to secure payment of such
Transferred Receivables, (B) leases, guaranties, insurance and other arrangements supporting payment of such Transferred Receivables, (C) rights to payment and collections in respect of such Transferred Receivables, (D) books, records and similar
information relating to such Transferred Receivables or the obligors thereon, (E) with respect to any such Transferred Receivables, the transferee’s interest in goods (including, without limitation, Equipment or Inventory) the sale of which
gave rise to such Transferred Receivables and (F) if such Transferred Receivables arise from a lease financing or installment sale transaction, the Equipment or Inventory that is the subject of the underlying transaction and is transferred to a
Receivables SPE or a Third Party Vendor Financing Subsidiary; 
  
 (iii) Transferred Intellectual Property; 
  
 (iv) State and Local Government Receivables of the Lien Grantor; 
  
 (v) any Security owned by the Lien Grantor that is a voting Equity Interest issued by a Foreign Subsidiary that is a corporation for
United States Federal income tax purposes, to the extent (but only to the extent) required to prevent the Collateral from including more than 65% of the shares of any class of voting securities of such Foreign Subsidiary (either directly or through
any entity that is a disregarded entity for such purposes); and 
  
 (vi) Third Party Vendor Financing Assets of the Lien Grantor. 
  
 (c) With respect to each right to payment or performance included in the New Collateral from time to time, the Security Interest granted therein includes, subject to Permitted Encumbrances, a continuing security
interest in (i) any Supporting Obligation that supports such payment or performance and (ii) 

  

 C-3 







 
any Lien that (x) secures such right to payment or performance or (y) secures any such Supporting Obligation. 
  
 (d) The foregoing Security Interests are granted as security only and shall
not subject the Collateral Agent or any other Secured Party to, or transfer or in any way affect or modify, any obligation or liability of the Lien Grantor with respect to any of the New Collateral or any transaction in connection therewith.

  
 (e) For the avoidance of doubt, no more than 65% of the
outstanding voting Equity Interests in any Foreign Subsidiary that is a corporation for United States Federal income tax purposes shall be required to be pledged hereunder or under any other Loan Document. 
  
 3. Delivery of Collateral. Concurrently with delivering this Guarantee
and Security Agreement Supplement to the Collateral Agent, the Lien Grantor is complying with the provisions of either Section 7 or Section 9(a) (whichever is applicable) of the Security Agreement with respect to Pledged Securities, in each case if
and to the extent included in the New Collateral at such time. 
  
 4. Party to Security Agreement. Upon delivering this Guarantee and Security Agreement Supplement to the Collateral Agent, the Lien Grantor will become a party to the Security Agreement and will thereafter have all the rights and
obligations of a Subsidiary Guarantor and a Lien Grantor thereunder and be bound by all the provisions thereof as fully as if the Lien Grantor were one of the original parties thereto. 
  
 5. Representations and Warranties. (a) Each of the representations and warranties set forth in Sections 3, 5, 6, 7, 8
and 9 of the Security Agreement is true as applied to the Lien Grantor and the New Collateral. For purposes of the foregoing sentence, references in said Sections (and elsewhere in the Security Agreement) to a “Lien Grantor” or
“Original Lien Grantor” shall be deemed to refer to the Lien Grantor, references to Schedules to the Security Agreement shall be deemed to refer to the corresponding Schedules to this Guarantee and Security Agreement Supplement, references
to “Collateral” shall be deemed to refer to the New Collateral, and references to the “Effective Date” shall be deemed to refer to the date on which the Lien Grantor signs and delivers this Guarantee and Security Agreement
Supplement. 
  
 (b) Schedule 1 hereto sets forth the name and
jurisdiction of organization of, and the ownership interest (including percentage owned and number of shares or units) of the Lien Grantor in the Securities of, each of the Lien Grantor’s direct Material Subsidiaries as of the date hereof which
are required to be included in the New Collateral and pledged pursuant to the Security Agreement and this Guarantee and Security Agreement Supplement. The Lien 

  

 C-4 







 
Grantor holds all such Securities directly (i.e., not through a subsidiary, a Securities Intermediary or any other Person). 
  
 6. Governing Law. This Guarantee and Security Agreement Supplement shall be
construed in accordance with and governed by the laws of the State of New York, except as otherwise required by mandatory provisions of law and except to the extent that remedies provided by the laws of any jurisdiction other than New York are
governed by the laws of such jurisdiction. 
  
 IN WITNESS WHEREOF,
the parties hereto have caused this Guarantee and Security Agreement Supplement to be duly executed by their respective authorized officers as of the day and year first above written. 
  

	 [NAME OF LIEN GRANTOR]

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:



  

	 JPMORGAN CHASE BANK, as Collateral Agent

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:



  

 C-5 







 Schedule 1 
 to Guarantee and Security 
 Agreement Supplement 
  
 PLEDGED SECURITIES 
  

	 Issuer

	 	 Jurisdiction
 of
 Organization

	 	 Percentage
 Owned

	 	 Number of
 Shares or Units



  

 C-6 







 EXHIBIT D 
 to Security Agreement 
  
 COPYRIGHT SECURITY AGREEMENT 
  
 (Copyrights,
Copyright Registrations and Copyright Licenses) 
  
 WHEREAS,
Xerox and each of its subsidiaries party hereto (each, a “Lien Grantor”) owns, or in the case of licenses is a party to, the Copyright Collateral (as defined below); 
  
 WHEREAS, XEROX CORPORATION (“Xerox”), the Overseas Borrowers party thereto, the Lenders party thereto, JPMORGAN CHASE BANK,
as Administrative Agent, Collateral Agent and LC Issuing Bank, DEUTSCHE BANK SECURITIES INC., as Syndication Agent and CITICORP NORTH AMERICA, INC., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and UBS SECURITIES LLC, as Co-Documentation
Agents, are parties to a Credit Agreement dated as of June 19, 2003 (as amended from time to time, the “Credit Agreement”); and 
  
 WHEREAS, pursuant to (i) a Guarantee and Security Agreement dated as of June [·], 2003 (as amended and/or supplemented from time to time, the “Security Agreement”) among Xerox, the Subsidiary Guarantors party thereto and JPMORGAN CHASE BANK, as Collateral Agent for the Secured
Parties referred to therein (in such capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other Security Documents (as defined in the Credit Agreement, and including this Copyright Security
Agreement), each Lien Grantor has secured certain of its obligations (the “Secured Obligations”) by granting to the Grantee for the benefit of such Secured Parties a continuing security interest in personal property of that Lien
Grantor, including all right, title and interest of the Lien Grantor in and to the Copyright Collateral (as defined below); 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Lien Grantor grants to the Grantee
for the benefit of the Secured Parties (as defined in the Security Agreement), to secure its Secured Obligations, a continuing security interest in and to all of the Lien Grantor’s right, title and interest in, to and under the following (all
of the following items or types of property being herein collectively referred to as the “Copyright Collateral”), except to the extent (and only to the extent) prohibited by a Permitted Encumbrance (as defined in the Security
Agreement), whether now owned or existing or hereafter acquired or arising: 
  

 D-1 







 (i) each Copyright (as defined in the Security Agreement) owned by the Lien Grantor,
including, without limitation, each Copyright registration therefor referred to in Schedule 1 hereto; 
  
 (ii) each Copyright License (as defined in the Security Agreement) to which the Lien Grantor is a party; and 
  
 (iii) all proceeds of, revenues from, and accounts and
general intangibles arising out of, the foregoing, including, without limitation, all proceeds of and revenues from any claim by the Lien Grantor against third parties for past, present or future infringement of any Copyright (including, without
limitation, any Copyright owned by the Lien Grantor and identified in Schedule 1). 
  
 Each Lien Grantor hereby irrevocably appoints the Grantee its true and lawful attorney, with full power of substitution, in the name of the Lien Grantor, the Grantee, the Secured Parties or otherwise, for the use and
benefit of the Secured Parties, but at the Borrowers’ (as defined in the Credit Agreement) expense, to the extent permitted by law to exercise, upon the occurrence and during the continuance of an Actionable Event of Default (as defined in the
Security Agreement) or upon acceleration of the Loans (as defined in the Credit Agreement) in accordance with the terms of the Credit Agreement, all or any of the following powers with respect to all or any of the Copyright Collateral: 

 
 (a) to demand, sue for, collect, receive and give
acquittance for any and all monies due or to become due thereon or by virtue thereof, 
  
 (b) to settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto, 
  
 (c) to sell, transfer, assign or otherwise deal in or with
the same or the proceeds thereof, as fully and effectually as if the Grantee were the absolute owner of the Lien Grantor’s right, title and interest therein, and 
  
 (d) to extend the time of payment of any or all thereof and to make any allowance and other adjustments with
reference thereto. 
  
 The foregoing security interest is granted
in conjunction with the Security Interests (as defined in the Security Agreement) granted by each Lien Grantor to the Grantee pursuant to the Security Agreement. Each Lien Grantor acknowledges and affirms that the rights and remedies of the Grantee
with respect to the security interest in the Copyright Collateral granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein. 
  

 D-2 







 IN WITNESS WHEREOF, each Lien Grantor has caused this Copyright Security Agreement to be duly executed by
its officer thereunto duly authorized as of the      day of June, 2003. 
  

	 [NAME OF LIEN GRANTORS]

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:



  
 Acknowledged: 
  

	 JPMORGAN CHASE BANK, as Collateral Agent

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:


  

 D-3 







 Schedule 1 
 to Copyright 
 Security Agreement 
  
 [NAME OF LIEN GRANTORS] 
  
 U.S. COPYRIGHT REGISTRATIONS 
  

	 Registration No.

	 	 Registration Date

	 	 Title



  

 D-4 







 EXHIBIT E 
 to Security Agreement 
  
 PATENT SECURITY AGREEMENT 
  
 (Patents, Patent
Applications and Patent Licenses) 
  
 WHEREAS, XEROX
CORPORATION (“Xerox”) (the “Lien Grantor”) owns, or in the case of licenses is a party to, the Patent Collateral (as defined below); 
  
 WHEREAS, XEROX CORPORATION (“Xerox”), the Overseas Borrowers party thereto, the Lenders party thereto, JPMORGAN CHASE BANK,
as Administrative Agent, Collateral Agent and LC Issuing Bank, DEUTSCHE BANK SECURITIES INC., as Syndication Agent and CITICORP NORTH AMERICA, INC., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and UBS SECURITIES LLC, as Co-Documentation
Agents, are parties to a Credit Agreement dated as of June 19, 2003 (as amended from time to time, the “Credit Agreement”); and 
  
 WHEREAS, pursuant to (i) a Guarantee and Security Agreement dated as of June [·], 2003 (as amended and/or supplemented from time to time, the “Security Agreement”) among Xerox, the Subsidiary Guarantors party thereto and JPMORGAN CHASE BANK, as Collateral Agent for the Secured
Parties referred to therein (in such capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other Security Documents (as defined in the Credit Agreement, and including this Patent Security
Agreement), the Lien Grantor has secured certain of its obligations (the “Secured Obligations”) by granting to the Grantee for the benefit of such Secured Parties a continuing security interest in personal property of the Lien
Grantor, including all right, title and interest of the Lien Grantor in and to the Patent Collateral (as defined below); 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Lien Grantor grants to the Grantee
for the benefit of the Secured Parties (as defined in the Security Agreement), to secure the Secured Obligations, a continuing security interest in and to all of the Lien Grantor’s right, title and interest in, to and under the following (all
of the following items or types of property being herein collectively referred to as the “Patent Collateral”), except to the extent (and only to the extent) prohibited by a Permitted Encumbrance (as defined in the Security
Agreement), whether now owned or existing or hereafter acquired or arising: 
  

 E-1 







 (i) each Patent (as defined in the Security Agreement) owned by the Lien Grantor,
including, without limitation, each Patent referred to in Schedule 1 hereto; 
  
 (ii) each Patent License (as defined in the Security Agreement) to which the Lien Grantor is a party; and 
  
 (iii) all proceeds of and revenues from the foregoing, including, without limitation, all proceeds of and revenues from any claim by the
Lien Grantor against third parties for past, present or future infringement of any Patent owned by the Lien Grantor (including, without limitation, any Patent identified in Schedule 1 hereto). 
  
 The Lien Grantor hereby irrevocably appoints the Grantee its true and lawful
attorney, with full power of substitution, in the name of the Lien Grantor, the Grantee, the Secured Parties or otherwise, for the use and benefit of the Secured Parties, but at the Borrowers’ (as defined in the Credit Agreement) expense, to
the extent permitted by law to exercise, upon the occurrence and during the continuance of an Actionable Event of Default (as defined in the Security Agreement) or upon acceleration of the Loans (as defined in the Credit Agreement) in accordance
with the terms of the Credit Agreement, all or any of the following powers with respect to all or any of the Patent Collateral: 
  
 (a) to demand, sue for, collect, receive and give acquittance for any and all monies due or to become due thereon or by virtue thereof,

  
 (b) to settle, compromise, compound,
prosecute or defend any action or proceeding with respect thereto, 
  
 (c) to sell, transfer, assign or otherwise deal in or with the same or the proceeds thereof, as fully and effectually as if the Grantee were the absolute owner of the Lien Grantor’s right, title and interest
therein, and 
  
 (d) to extend the time of
payment of any or all thereof and to make any allowance and other adjustments with reference thereto. 
  
 The foregoing security interest is granted in conjunction with the Security Interests (as defined in the Security Agreement) granted by the Lien Grantor
to the Grantee pursuant to the Security Agreement. The Lien Grantor acknowledges and affirms that the rights and remedies of the Grantee with respect to the security interest in the Patent Collateral granted hereby are more fully set forth in the
Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein. 
  

 E-2 







 IN WITNESS WHEREOF, the Lien Grantor has caused this Patent Security Agreement to be duly executed by its
officer thereunto duly authorized as of the      day of June, 2003. 
  

	 [NAME OF LIEN GRANTOR]

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:



  
 Acknowledged: 
  

	 JPMORGAN CHASE BANK, as Collateral Agent

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:


  

 E-3 







 Schedule 1 
 to Patent 
 Security Agreement 
  
 [NAME OF LIEN GRANTOR] 
  
 U.S. UTILITY PATENTS AND U.S. DESIGN PATENTS 
  

	 Patent No.

	 	 Date Issued

	 	 Title



  
 U.S. PATENT
APPLICATIONS 
  

	 Docket No.

	 	 Application No.

	 	 Date Filed



  

 E-4 







 EXHIBIT F 
 to Security Agreement 
  
 TRADEMARK SECURITY AGREEMENT 
  
 (Trademarks,
Trademark Registrations, Trademark 
 Applications and Trademark Licenses) 
  
 WHEREAS, Xerox and each of its subsidiaries party hereto (each, a
“Lien Grantor”) owns, or in the case of licenses is a party to, the Trademark Collateral (as defined below); 
  
 WHEREAS, XEROX CORPORATION (“Xerox”), the Overseas Borrowers party thereto, the Lenders party thereto, JPMORGAN CHASE BANK, as Administrative Agent,
Collateral Agent and LC Issuing Bank, DEUTSCHE BANK SECURITIES INC., as Syndication Agent and CITICORP NORTH AMERICA, INC., MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and UBS SECURITIES LLC, as Co-Documentation Agents, are parties to a
Credit Agreement dated as of June 19, 2003 (as amended from time to time, the “Credit Agreement”); and 
  
 WHEREAS, pursuant to (i) a Guarantee and Security Agreement dated as of June [·], 2003 (as amended and/or supplemented from time to time, the “Security Agreement”) among Xerox, the Subsidiary Guarantors party thereto and JPMORGAN CHASE BANK, as Collateral Agent for the Secured
Parties referred to therein (in such capacity, together with its successors in such capacity, the “Grantee”), and (ii) certain other Security Documents (as defined in the Credit Agreement, and including this Trademark Security
Agreement), each Lien Grantor has secured certain of its obligations (the “Secured Obligations”) by granting to the Grantee for the benefit of such Secured Parties a continuing security interest in personal property of that Lien
Grantor, including all right, title and interest of the Lien Grantor in and to the Trademark Collateral (as defined below); 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Lien Grantor grants to the Grantee
for the benefit of the Secured Parties (as defined in the Security Agreement), to secure its Secured Obligations, a continuing security interest in and to all of the Lien Grantor’s right, title and interest in, to and under the following (all
of the following items or types of property being herein collectively referred to as the “Trademark Collateral”), except to the extent (and only to the extent) prohibited by a Permitted Encumbrance (as defined in the Security
Agreement), whether now owned or existing or hereafter acquired or arising: 
  

 F-1 







 (i) each Trademark (as defined in the Security Agreement) owned by the Lien Grantor,
including, without limitation, each Trademark registration and application referred to in Schedule 1 hereto, and all of the goodwill of the business symbolized by or associated with each Trademark; 
  
 (ii) each Trademark License (as defined in the Security
Agreement) to which the Lien Grantor is a party, and all of the goodwill of the business symbolized by or associated with each Trademark licensed pursuant thereto; and 
  
 (iii) all proceeds of and revenues from the foregoing, including, without limitation, all proceeds of and
revenues from any claim by the Lien Grantor against third parties for past, present or future unfair competition with, or violation of intellectual property rights in connection with or injury to, or infringement or dilution of, any Trademark owned
by the Lien Grantor (including, without limitation, any Trademark identified in Schedule 1 hereto), or for injury to the goodwill associated with any of the foregoing. 
  
 Each Lien Grantor hereby irrevocably appoints the Grantee its true and lawful attorney, with full power of substitution, in
the name of the Lien Grantor, the Grantee, the Secured Parties or otherwise, for the use and benefit of the Secured Parties, but at the Borrowers’ (as defined in the Credit Agreement) expense, to the extent permitted by law to exercise, upon
the occurrence and during the continuance of an Actionable Event of Default (as defined in the Security Agreement) or upon acceleration of the Loans (as defined in the Credit Agreement) in accordance with the terms of the Credit Agreement, all or
any of the following powers with respect to all or any of the Trademark Collateral: 
  
 (a) to demand, sue for, collect, receive and give acquittance for any and all monies due or to become due thereon or by virtue thereof,

  
 (b) to settle, compromise, compound,
prosecute or defend any action or proceeding with respect thereto, 
  
 (c) to sell, transfer, assign or otherwise deal in or with the same or the proceeds thereof, as fully and effectually as if the Grantee were the absolute owner of the Lien Grantor’s right, title and interest
therein, and 
  
 (d) to extend the time of
payment of any or all thereof and to make any allowance and other adjustments with reference thereto. 
  

 F-2 







 The foregoing security interest is granted in conjunction with the Security Interests (as defined in the
Security Agreement) granted by each Lien Grantor to the Grantee pursuant to the Security Agreement. Each Lien Grantor acknowledges and affirms that the rights and remedies of the Grantee with respect to the security interest in the Trademark
Collateral granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein. 
  

 F-3 







 IN WITNESS WHEREOF, each Lien Grantor has caused this Trademark Security Agreement to be duly executed by
its officer thereunto duly authorized as of the      day of June, 2003. 
  

	 [NAME OF LIEN GRANTORS]

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:



  
 Acknowledged: 
  

	 JPMORGAN CHASE BANK, as Collateral Agent

		
	 By:
	 	  


	 	 	 Name:

	 	 	 Title:


  

 F-4 







 Schedule 1 
 to Trademark 
 Security Agreement 
  
 [NAME OF LIEN GRANTORS] 
  
 U.S. TRADEMARK REGISTRATIONS 
  

	 TRADEMARK

	 	 REG. NO.

	 	 REG. DATE



  
 U.S. TRADEMARK
APPLICATIONS 
  

	 TRADEMARK

	 	 APPLICATION NO.

	 	 DATE FILED



  

 F-5