Security and Pledge Agreement



 Exhibit 10.2 
 SECURITY AND PLEDGE AGREEMENT 
 THIS SECURITY AND PLEDGE AGREEMENT (this
“Agreement”) is entered into as of October 4, 2011 among NEWPORT CORPORATION, a Nevada corporation (the “Borrower”), the other parties identified as “Obligors” on the signature pages hereto and such
other parties that may become Obligors hereunder after the date hereof (together with the Borrower, individually an “Obligor”, and collectively the “Obligors”) and BANK OF AMERICA, N.A., in its capacity as
administrative agent (in such capacity, the “Administrative Agent”) for the holders of the Secured Obligations (defined below). 
 RECITALS 
 WHEREAS, pursuant to that certain Credit Agreement, dated as of
the date hereof (as amended, modified, supplemented, increased, extended, restated, renewed, refinanced or replaced from time to time, the “Credit Agreement”) among the Borrower, the Guarantors identified therein, the Lenders
identified therein and the Administrative Agent, the Lenders have agreed to make Loans and issue Letters of Credit upon the terms and subject to the conditions set forth therein; and 

WHEREAS, this Agreement is required by the terms of the Credit Agreement. 

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows: 
 1. Definitions. 

(a) Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit
Agreement, and the following terms shall have the meanings set forth in the UCC (defined below): Accession, Account, Adverse Claim, As-Extracted Collateral, Chattel Paper, Commercial Tort Claim, Consumer Goods, Deposit Account, Document, Electronic
Chattel Paper, Equipment, Farm Products, Financial Asset, Fixtures, General Intangible, Goods, Instrument, Inventory, Investment Company Security, Investment Property, Letter-of-Credit Right, Manufactured Home, Money, Proceeds, Securities Account,
Securities Intermediary, Security Entitlement, Security, Software, Supporting Obligation and Tangible Chattel Paper. 
 (b) In addition, the following terms shall have the meanings set forth below: 
 “Collateral” has the meaning provided in Section 2 hereof. 
 “Copyright License” means any written agreement, naming any Obligor as licensor, granting any right under any Copyright. 

“Copyrights” means (a) all registered United States copyrights in all Works, now existing or
hereafter created or acquired, all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, registrations, recordings and applications in the United States Copyright Office, and (b) all
renewals thereof. 
 “Excluded Accounts” shall mean, collectively, any deposit account,
securities account or other disbursement account which (a) is used exclusively for the payment of payroll, payroll taxes, salary, benefits, trust, employee benefits, withholding or escrow or fiduciary deposits, (b) is used solely as a zero
balance disbursement account or (c) contains, at all times, less than $500,000 for any one account and $1,000,000 in the aggregate for all such accounts. 







 “Patent License” means any agreement, whether written or
oral, providing for the grant by or to an Obligor of any right to manufacture, use or sell any invention covered by a Patent. 
 “Patents” means (a) all letters patent of the United States or any other country and all reissues and extensions thereof, and (b) all applications for letters patent of the
United States or any other country and all divisions, continuations and continuations-in-part thereof. 

“Pledged Equity” means, with respect to each Obligor, (i) 100% of the issued and outstanding Equity
Interests of each Domestic Subsidiary (other than a Foreign Holding Company) of the Borrower that is directly owned by such Obligor and (ii) 65% (or such greater percentage that, due to a change in an applicable Law after the date hereof, in
the Borrower’s good faith determination, such greater percentage, (A) could not reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary as determined for United States federal income tax purposes to be treated
as a deemed dividend to such Foreign Subsidiary’s United States parent and (B) could not reasonably be expected to cause any material adverse tax consequences) of the issued and outstanding Equity Interests entitled to vote (within the
meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary and each Foreign Holding
Company of the Borrower that is directly owned by such Obligor, including the Equity Interests of the Subsidiaries owned by such Obligor to the extent set forth on Schedule 1(b) hereto, in each case together with the certificates (or
other agreements or instruments), if any, representing such shares, and all options and other rights, contractual or otherwise, with respect thereto, including, but not limited to, the following: 

(1) all Equity Interests representing a dividend thereon, or representing a distribution or return of capital upon or in
respect thereof, or resulting from a stock split, revision, reclassification or other exchange therefor, and any subscriptions, warrants, rights or options issued to the holder thereof, or otherwise in respect thereof, in each case to the extent
provided in clauses (i) and (ii) above; and 
 (2) in the event of any consolidation or merger
involving the issuer thereof and in which such issuer is not the surviving Person, all shares of each class of the Equity Interests of the successor Person formed by or resulting from such consolidation or merger, to the extent that such successor
Person is a direct Subsidiary of an Obligor, in each case to the extent provided in clauses (i) and (ii) above. 
 “Secured Obligations” means, without duplication, (a) all Obligations and (b) all costs and expenses incurred in connection with enforcement and collection of the Obligations,
including the fees, charges and disbursements of counsel. 
 “Trademark License” means any
agreement, written or oral, providing for the grant by or to an Obligor of any right to use any Trademark. 

“Trademarks” means (a) all trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, logos and other source or business identifiers, and the goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof, or otherwise and
(b) all renewals thereof. 

  
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 “UCC” means the Uniform Commercial Code as in effect from
time to time in the state of New York except as such term may be used in connection with the perfection of the Collateral and then the applicable jurisdiction with respect to such affected Collateral shall apply. 

“Work” means any work that is subject to copyright protection pursuant to Title 17 of the United States
Code. 
 2. Grant of Security Interest in the Collateral. To secure the prompt payment and performance in full when due,
whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Obligor hereby grants to the Administrative Agent, for the benefit of the holders of the Secured Obligations, a continuing security interest
in, and a right to set off against, any and all right, title and interest of such Obligor in and to all of the following, whether now owned or existing or owned, acquired, or arising hereafter (collectively, the “Collateral”):
(a) all Accounts; (b) all Chattel Paper; (c) those certain Commercial Tort Claims set forth on Schedule 2(c) hereto; (d) all Copyrights; (e) all Copyright Licenses; (f) all Deposit Accounts; (g) all
Documents; (h) all Equipment; (i) all Fixtures; (j) all General Intangibles; (k) all Instruments; (l) all Inventory; (m) all Investment Property; (n) all Letter-of-Credit Rights; (o) all Money; (p) all
Patents; (q) all Patent Licenses; (r) all Pledged Equity; (s) all Software; (t) all Supporting Obligations; (u) all Trademarks; (v) all Trademark Licenses; and (w) all Accessions and all Proceeds of any and all of
the foregoing. 
 Notwithstanding anything to the contrary contained herein, the security interests granted under this
Agreement shall not extend to (i) any property which, subject to the terms of Section 8.09 of the Credit Agreement, is subject to a Lien of the type described in Section 8.01(i) of the Credit Agreement pursuant to documents which
prohibit such Obligor from granting any other Liens in such property, (ii) any General Intangible, permit, lease, license, contract or other Instrument of an Obligor to the extent the grant of a security interest in such General Intangible,
permit, lease, license, contract or other Instrument in the manner contemplated by this Agreement, under the terms thereof or under applicable Law, is prohibited and would result in the termination thereof or give the other parties thereto the right
to terminate, accelerate or otherwise alter such Obligor’s rights, titles and interests thereunder (including upon the giving of notice or the lapse of time or both); provided that (a) any such limitation described in the foregoing
clause (ii) on the security interests granted hereunder shall only apply to the extent that any such prohibition could not be rendered ineffective pursuant to the UCC or any other applicable Law (including Debtor Relief Laws) or principles of
equity and (b) in the event of the termination or elimination of any such prohibition or the requirement for any consent contained in any applicable Law, General Intangible, permit, lease, license, contract or other Instrument, to the extent
sufficient to permit any such item to become Collateral hereunder, or upon the granting of any such consent, or waiving or terminating any requirement for such consent, a security interest in such General Intangible, permit, lease, license, contract
or other Instrument shall be automatically and simultaneously granted hereunder and shall be included as Collateral hereunder, (iii) any United States trademark application filed on the basis of an Obligor’s intent-to-use such mark, in
each case, unless and until evidence of the use of such trademark in interstate commerce is submitted to the United States Patent and Trademark Office but only if and to the extent that the granting of a security interest in such application would
result in the invalidation of such application or resulting registration, provided, that, to the extent such application is excluded from the Collateral, upon the submission of evidence of use of such trademark to the United States Patent and
Trademark Office, such trademark application shall automatically be included in the Collateral, without further action on any party’s part, (iv) any vehicles subject to certificate of title statutes, (v) the Equity Interests of any
direct Foreign Subsidiary of any Loan Party to the extent not required to be pledged to secure the Obligations pursuant to Section 7.14(a) of the Credit Agreement, (vi) cash collateral that is the subject of a deposit or pledge
constituting a Permitted Lien, but only to the extent the agreements governing such deposit or pledge prohibit the existence of a Lien therein in favor of the Administrative Agent and (vii) any interest in real property (other than Fixtures,
subject to clause (i) above).  

  
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 The Obligors and the Administrative Agent, on behalf of the holders of the Secured
Obligations, hereby acknowledge and agree that the security interest created hereby in the Collateral (i) constitutes continuing collateral security for all of the Secured Obligations, whether now existing or hereafter arising and (ii) is
not to be construed as an assignment of any Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks or Trademark Licenses. 
 3. Representations and Warranties. Each Obligor hereby represents and warrants to the Administrative Agent, for the benefit of the holders of the Secured Obligations, that: 

(a) Ownership. Each Obligor is the legal and beneficial owner of its Collateral and has the right to pledge, sell,
assign or transfer the same. To the best of such Obligor’s knowledge, there exists no Adverse Claim with respect to the Pledged Equity of such Obligor. 
 (b) Security Interest/Priority. This Agreement creates a valid security interest in favor of the Administrative Agent, for the benefit of the holders of the Secured Obligations, in the Collateral
of such Obligor and, when properly perfected by filing, shall constitute a valid and perfected security interest in such Collateral (including all uncertificated Pledged Equity consisting of partnership or limited liability company interests that do
not constitute Securities), to the extent such security interest can be perfected by filing under the UCC, free and clear of all Liens except for Permitted Liens. The taking possession by the Administrative Agent of the certificated securities (if
any) evidencing the Pledged Equity and all other Instruments constituting Collateral will perfect and establish the first priority of the Administrative Agent’s security interest in all the Pledged Equity evidenced by such certificated
securities and such Instruments. With respect to any Collateral consisting of a Deposit Account, Securities Entitlement or held in a Securities Account, upon execution and delivery by the applicable Obligor, the applicable Securities Intermediary
and the Administrative Agent of an agreement granting control to the Administrative Agent over such Collateral, the Administrative Agent shall have a valid and perfected security interest in such Collateral, free and clear of all Liens except for
Permitted Liens. 
 (c) Types of Collateral. None of the Collateral consists of, or is the Proceeds of,
As-Extracted Collateral, Consumer Goods, Farm Products, Manufactured Homes or standing timber. 
 (d)
Accounts. (i) Each Account of the Obligors and the papers and documents relating thereto are genuine and in all material respects what they purport to be, (ii) each Account arises out of (A) a bona fide sale of goods sold and
delivered by such Obligor (or is in the process of being delivered) or (B) services theretofore actually rendered by such Obligor to, the account debtor named therein, (iii) no Account of an Obligor is evidenced by any Instrument or
Chattel Paper unless such Instrument or Chattel Paper, to the extent requested by the Administrative Agent (subject to Section 4(a)), has been endorsed over and delivered to, or submitted to the control of, the Administrative Agent and
(iv) the right to receive payment under each Account is assignable after giving effect to the UCC. 
 (e)
[Intentionally omitted]. 
 (f) Authorization of Pledged Equity. All Pledged Equity is duly
authorized and validly issued, is fully paid and, to the extent applicable (other than any such Pledged Equity that constitutes a limited liability company interest or other analogous equity interest), nonassessable. 

(g) No Other Equity Interests, Instruments, Etc. As of the date Schedule 1(b) is revised in accordance with
the terms of the Post-Closing Letter, (i) no Obligor owns any certificated Equity Interests in any Subsidiary that are required to be pledged and delivered to the 

  
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Administrative Agent hereunder except as set forth on Schedule 1(b) hereto, and (ii) no Obligor holds any Instruments, Documents or Tangible Chattel Paper required to be pledged and
delivered to the Administrative Agent pursuant to Section 4(a)(i) of this Agreement other than as set forth on Schedule 3(g) hereto. All such certificated securities, Instruments, Documents and Tangible Chattel Paper have been delivered
to the Administrative Agent. 
 (h) Partnership and Limited Liability Company Interests. Except as
previously disclosed to the Administrative Agent, none of the Collateral consisting of an interest in a partnership or a limited liability company (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its
terms expressly provides that it is a Security governed by Article 8 of the UCC, (iii) is an Investment Company Security, (iv) is held in a Securities Account or (v) constitutes a Security or a Financial Asset. 

(i) [Intentionally omitted]. 

(j) Consents; Etc. Except for Pledged Equity of Subsidiaries that is acquired pursuant to Permitted Acquisitions,
provided that (x) such Subsidiary was not created in anticipation of such Permitted Acquisition and (y) such restrictions were not created in anticipation of such Permitted Acquisition, there are no restrictions in any Organization
Document governing any Pledged Equity or any other document related thereto which would limit or restrict (i) the grant of a Lien pursuant to this Agreement on such Pledged Equity, (ii) the perfection of such Lien or (iii) the
exercise of remedies in respect of such perfected Lien in the Pledged Equity as contemplated by this Agreement. Except for (i) the filing or recording of UCC financing statements, (ii) the filing of appropriate notices with the United
States Patent and Trademark Office and the United States Copyright Office, (iii) obtaining control to perfect the Liens created by this Agreement (to the extent required under Section 4(a) hereof), (iv) such actions as may be required
by Laws affecting the offering and sale of securities, (v) such actions as may be required by applicable foreign Laws affecting the pledge of the Pledged Equity of Foreign Subsidiaries and (vi) consents, authorizations, filings or other
actions which have been obtained or made, no consent or authorization of, filing with, or other act by or in respect of, any arbitrator or Governmental Authority and no consent of any other Person (including, without limitation, any stockholder,
member or creditor of such Obligor), is required for (A) the grant by such Obligor of the security interest in the Collateral granted hereby or for the execution, delivery or performance of this Agreement by such Obligor, (B) the
perfection of such security interest (to the extent such security interest can be perfected by filing under the UCC, the granting of control (to the extent required under Section 4(a) hereof) or by filing an appropriate notice with the United
States Patent and Trademark Office or the United States Copyright Office) or (C) the exercise by the Administrative Agent or the holders of the Secured Obligations of the rights and remedies provided for in this Agreement. 

(k) Commercial Tort Claims. As of the Closing Date, no Obligor has any Commercial Tort Claims seeking damages in
excess of $500,000 as to which such Obligor has elected to pursue such claim other than as set forth on Schedule 2(c) hereto. 
 (l) Copyrights, Patents and Trademarks. 
 (i) To the best of
each Obligor’s knowledge, each Copyright, Patent and Trademark of such Obligor that is material to the business of the Obligors taken as a whole is valid, subsisting, unexpired, enforceable and has not been abandoned. 

(ii) To the best of each Obligor’s knowledge, no holding, decision or judgment has been rendered by any Governmental
Authority that would limit, cancel or question the 

  
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validity of any Copyright, Patent or Trademark of any Obligor that is material to the business of the Obligors taken as a whole. 

(iii) No action or proceeding is pending seeking to limit, cancel or question the validity of any Copyright, Patent or
Trademark of any Obligor, or that could reasonably be expected to have a material adverse effect on the value of any Copyright, Patent or Trademark of any Obligor that is material to the business of the Obligors taken as a whole. 

(iv) All applications pertaining to the Copyrights, Patents and Trademarks of each Obligor that are material to the
business of the Obligors taken as a whole have been duly and properly filed, and all registrations or letters pertaining to such Copyrights, Patents and Trademarks have been duly and properly filed and issued. 

(v) No Obligor has made any assignment or agreement in conflict with the security interest in the Copyrights, Patents or
Trademarks of any Obligor that are material to the business of the Obligors taken as a whole hereunder (except as permitted under the Credit Agreement or hereunder). 
 4. Covenants. Each Obligor covenants that until such time as the Secured Obligations arising under the Loan Documents have been paid in full (other than contingent indemnification obligations for
which no claim has been asserted) and the Commitments have expired or been terminated, such Obligor shall: 
 (a)
Instruments/Chattel Paper/Pledged Equity/Control. 
 (i) If any amount in excess of $250,000 payable under
or in connection with any of the Collateral shall be or become evidenced by any Instrument or Tangible Chattel Paper, or if any property constituting Collateral shall be stored or shipped subject to a Document, ensure that such Instrument, Tangible
Chattel Paper or Document is either in the possession of such Obligor at all times or, if requested by the Required Lenders to perfect the Administrative Agent’s security interest in such Collateral, is delivered to the Administrative Agent
duly endorsed in a manner satisfactory to the Administrative Agent. Such Obligor shall ensure that any Collateral consisting of Tangible Chattel Paper in excess of $250,000 individually or $1,000,000 in the aggregate is marked with a legend
acceptable to the Administrative Agent indicating the Administrative Agent’s security interest in such Tangible Chattel Paper. 
 (ii) Deliver to the Administrative Agent within thirty (30) Business Days of the receipt thereof by or on behalf of an Obligor, all certificates and instruments constituting Pledged Equity. Prior to
delivery to the Administrative Agent, all such certificates constituting Pledged Equity shall be held in trust by such Obligor for the benefit of the Administrative Agent pursuant hereto. All such certificates representing Pledged Equity shall be
delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, substantially in the form provided in Exhibit 4(a)(ii) hereto. 

(iii) Execute and deliver all agreements, assignments, instruments or other documents as reasonably requested by the
Required Lenders for the purpose of obtaining and maintaining control with respect to any Collateral consisting of (i) the Blocked Account, (ii) Deposit Accounts (other than Excluded Accounts), (iii) Investment Property,
(iv) Letter-of-Credit Rights and (v) Electronic Chattel Paper. 

  
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 (b) Filing of Financing Statements, Notices, etc. Each Obligor shall
execute and deliver to the Administrative Agent such agreements, assignments or instruments (including affidavits, notices, reaffirmations and amendments and restatements of existing documents, as the Administrative Agent may reasonably request) and
do all such other things as the Administrative Agent may reasonably deem necessary or appropriate (i) to assure to the Administrative Agent its security interests hereunder, including (A) such instruments as the Administrative Agent may
from time to time reasonably request in order to perfect and maintain the security interests granted hereunder in accordance with the UCC, (B) with regard to registered Patents and pending applications, a Notice of Grant of Security Interest in
Patents for filing with the United States Patent and Trademark Office in the form of Exhibit 4(b)(i) hereto, (C) with regard to registered Trademarks and pending applications, a Notice of Grant of Security Interest in Trademarks for
filing with the United States Patent and Trademark Office in the form of Exhibit 4(b)(ii) hereto and (D) with regard to registered Copyrights, a Notice of Grant of Security Interest in Copyrights in the form of
Exhibit 4(b)(iii) hereto (ii) to consummate the transactions contemplated hereby and (iii) to otherwise protect and assure the Administrative Agent of its rights and interests hereunder. Furthermore, each Obligor also hereby
irrevocably makes, constitutes and appoints the Administrative Agent, its nominee or any other person whom the Administrative Agent may designate, as such Obligor’s attorney in fact with full power and for the limited purpose to sign in the
name of such Obligor any financing statements, or amendments and supplements to financing statements, renewal financing statements, notices or any similar documents which in the Administrative Agent’s reasonable discretion would be necessary or
appropriate in order to perfect and maintain perfection of the security interests granted hereunder (except with respect to Excluded Property), such power, being coupled with an interest, being and remaining irrevocable until such time as the
Secured Obligations arising under the Loan Documents have been paid in full (other than contingent indemnification obligations for which no claim has been made) and the Commitments have expired or been terminated. Each Obligor hereby agrees that a
carbon, photographic or other reproduction of this Agreement or any such financing statement is sufficient for filing as a financing statement by the Administrative Agent without notice thereof to such Obligor wherever the Administrative Agent may
reasonably deem it necessary or appropriate to file the same. 
 (c) Collateral Held by Warehouseman, Bailee,
etc. If any Collateral exceeding a value of $5,000,000 is at any time in the possession or control of a warehouseman, bailee or any agent or processor of such Obligor and the Administrative Agent so requests (i) notify such Person in
writing of the Administrative Agent’s security interest therein, (ii) instruct such Person to hold all such Collateral for the Administrative Agent’s account and subject to the Administrative Agent’s instructions and
(iii) use reasonable best efforts to obtain a written acknowledgment from such Person that it is holding such Collateral for the benefit of the Administrative Agent. 

(d) Treatment of Accounts. Not grant or extend the time for payment of any Account, or compromise or settle any
Account for less than the full amount thereof, or release any person or property, in whole or in part, from payment thereof, or allow any credit or discount thereon, other than as normal and customary in the ordinary course of an Obligor’s
business or as would not reasonably be expected to have a Material Adverse Effect. 
 (e) Commercial Tort
Claims. (i) Concurrently with the delivery of the Compliance Certificate pursuant to Section 7.02(b) of the Credit Agreement, forward to the Administrative Agent an updated Schedule 2(c) listing any and all Commercial Tort
Claims by or in favor of such Obligor seeking damages in excess of $500,000 as to which such Obligor has elected to pursue such claim and (ii) execute and deliver such statements, documents and notices and do and cause to be done all such
things as may be required by the Administrative Agent, or required by 

  
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Law to create, preserve, perfect and maintain the Administrative Agent’s security interest in any Commercial Tort Claims initiated by or in favor of any Obligor. 

(f) Books and Records. Upon the request of the Required Lenders, mark its books and records (and shall cause the
issuer of the Pledged Equity of such Obligor to mark its books and records) to reflect the security interest granted pursuant to this Agreement. 
 (g) Nature of Collateral. At all times maintain the Collateral as personal property and not affix any material portion of the Collateral to any real property in a manner which would change its
nature from personal property to real property or a Fixture to real property, unless the Administrative Agent shall have a perfected Lien on such Fixture or real property. 

(h) Issuance or Acquisition of Equity Interests in Partnerships or Limited Liability Companies. Not without
executing and delivering, or causing to be executed and delivered, to the Administrative Agent such agreements, documents and instruments as the Administrative Agent may reasonably require, issue or acquire any Pledged Equity consisting of an
interest in a partnership or a limited liability company that (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a Security governed by Article 8 of the UCC,
(iii) is an Investment Company Security, (iv) is held in a Securities Account or (v) constitutes a Security or a Financial Asset. 
 (i) Intellectual Property. 
 (i) Not do any act or omit to
do any act whereby any Copyright that is material to the business of the Obligors taken as a whole may become invalidated and (A) not do any act, or omit to do any act, whereby any Copyright that is material to the business of the Obligors
taken as a whole may become injected into the public domain; (B) notify the Administrative Agent immediately if it knows that any Copyright that is material to the business of the Obligors taken as a whole may become injected into the public
domain or of any materially adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any court or tribunal in the United States or any other country) regarding an
Obligor’s ownership of any such Copyright or its validity; (C) take all necessary steps as it shall deem appropriate under the circumstances, to maintain and pursue each application (and to obtain the relevant registration) of each
Copyright owned by an Obligor that is material to the business of the Obligors taken as a whole and to maintain each registration of each material Copyright owned by an Obligor including, without limitation, filing of applications for renewal where
necessary; and (D) promptly notify the Administrative Agent of any material infringement of any Copyright of an Obligor that is material to the business of the Obligors taken as a whole of which it becomes aware and take such actions as it
shall reasonably deem appropriate under the circumstances to protect such Copyright, including, where appropriate, the bringing of suit for infringement, seeking injunctive relief and seeking to recover any and all damages for such infringement.

 (ii) Not make any assignment or agreement in conflict with the security interest in the Copyrights of each
Obligor hereunder (except as permitted by the Credit Agreement). 
 (iii) (A) Continue to use each Trademark that
is material to the business of the Obligors taken as a whole on each and every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force
free from any claim of abandonment for non-use, (B) maintain 

  
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as in the past the quality of products and services offered under such Trademark, (C) employ such Trademark with the appropriate notice of registration, if applicable, (D) not adopt or
use any mark that is confusingly similar or a colorable imitation of such Trademark; provided that the Borrower may adopt or use such mark so long as the Borrower notifies the Administrative Agent of such mark concurrently with the delivery of the
Compliance Certificate pursuant to Section 7.02(b) of the Credit Agreement so that the Administrative Agent, for the ratable benefit of the holders of the Secured Obligations, may obtain a perfected security interest in such mark pursuant to
this Agreement, and (E) use commercially reasonable efforts not to (and not to permit any licensee or sublicensee thereof to) do any act or omit to do any act whereby any such Trademark may become invalidated. 

(iv) Not do any act, or omit to do any act, whereby any Patent that is material to the business of the Obligors taken as a
whole may become abandoned or dedicated. 
 (v) Notify the Administrative Agent concurrently with the delivery of
the Compliance Certificate pursuant to Section 7.02(b) of the Credit Agreement if it knows that any application or registration relating to any Patent or Trademark that is material to the business of the Obligors taken as a whole may become
abandoned or dedicated, or of any materially adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office or any
court or tribunal in any country) regarding such Obligor’s ownership of any Patent or Trademark that is material to the business of the Obligors taken as a whole or its right to register the same or to keep and maintain the same. 

(vi) Take all reasonable and necessary steps, in its reasonable business judgment, including, without limitation, in any
proceeding before the United States Patent and Trademark Office, or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to
maintain each registration of each Patent and Trademark that is material to the business of the Obligors taken as a whole, including, without limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability.

 (vii) Promptly notify the Administrative Agent and the holders of the Secured Obligations after it learns that
any Patent or Trademark included in the Collateral that is material to the business of the Obligors taken as a whole is infringed, misappropriated or diluted by a third party and, if appropriate in its reasonable business judgment, promptly sue for
infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution, or to take such other actions as it shall reasonably deem appropriate
under the circumstances to protect such Patent or Trademark. 
 (viii) Not make any assignment or agreement in
conflict with the security interest in the Patents or Trademarks of each Obligor hereunder (except as permitted by the Credit Agreement). 
 Notwithstanding the foregoing, the Obligors may, in their reasonable business judgment, fail to maintain, pursue, preserve or protect any Copyright, Patent or Trademark which is not material to their
businesses taken as a whole. 
 (j) Blocked Account. Not use the cash maintained in the Blocked Account
for any purpose other than to repay the Convertible Notes when due or to repurchase the Convertible 

  
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Notes at or below par; provided, that no Obligor shall be permitted to use the cash maintained in the Blocked Account to repay or repurchase the Convertible Notes if any Event of Default
under Section 9.01(a) or 9.01(f) of the Credit Agreement then exists or would result therefrom. 
 5.
Authorization to File Financing Statements. Each Obligor hereby authorizes the Administrative Agent to prepare and file such financing statements (including continuation statements) or amendments thereof or supplements thereto or other
instruments as the Administrative Agent may from time to time deem necessary or appropriate in order to perfect and maintain the security interests granted hereunder in accordance with the UCC (including authorization to describe the Collateral as
“all personal property”, “all assets” or words of similar meaning). 
 6. Advances. (i) Upon the
occurrence and continuance of an Event of Default, with prompt written notice thereafter to the Obligors, or (ii) upon the occurrence and continuance of a Default (that has not matured into an Event of Default), after the Administrative Agent
has provided prior written notice to the Obligors and the Obligors have failed to act within a reasonable period of time thereafter, if with respect to this clause (ii), the Administrative Agent reasonably determines that the taking of a particular
action is required prior to the expiration of any applicable cure period(s) in order to prevent an impairment of its rights in and to any Collateral, then in either case, the Administrative Agent may, at its sole option and in its sole discretion,
perform the same and in so doing may expend such sums as the Administrative Agent may reasonably deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to
obtain a release of a Lien or potential Lien, expenditures made in defending against any adverse claim and all other expenditures which the Administrative Agent may make for the protection of the security hereof or which may be compelled to make by
operation of Law. All such sums and amounts so expended shall be repayable by the Obligors on a joint and several basis promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest
from the date said amounts are expended at the Default Rate. No such performance of any covenant or agreement by the Administrative Agent on behalf of any Obligor, and no such advance or expenditure therefor, shall relieve the Obligors of any
Default or Event of Default. The Administrative Agent may make any payment hereby authorized in accordance with any bill, statement or estimate procured from the appropriate public office or holder of the claim to be discharged without inquiry into
the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is being contested in good faith by an Obligor in appropriate proceedings and
against which adequate reserves are being maintained in accordance with GAAP. 
 7. Remedies. 

(a) General Remedies. Upon the occurrence of an Event of Default and during continuation thereof, the
Administrative Agent shall have, in addition to the rights and remedies provided herein, in the Loan Documents, in any other documents relating to the Secured Obligations, or by Law (including, but not limited to, levy of attachment, garnishment and
the rights and remedies set forth in the UCC of the jurisdiction applicable to the affected Collateral), the rights and remedies of a secured party under the UCC (regardless of whether the UCC is the law of the jurisdiction where the rights and
remedies are asserted and regardless of whether the UCC applies to the affected Collateral), and further, the Administrative Agent may, with or without judicial process or the aid and assistance of others, (i) enter on any premises on which any
of the Collateral may be located and, without resistance or interference by the Obligors, take possession of the Collateral, (ii) dispose of any Collateral on any such premises, (iii) require the Obligors to assemble and make available to
the Administrative Agent at the expense of the Obligors any Collateral at any place and time designated by the Administrative Agent which is reasonably convenient to both parties, (iv) remove any Collateral from any such premises for the
purpose of effecting sale or other disposition thereof, 

  
 10 









 
and/or (v) without demand and without advertisement, notice, hearing or process of law, all of which each of the Obligors hereby waives to the fullest extent permitted by Law, at any place
and time or times, sell and deliver any or all Collateral held by or for it at public or private sale (which in the case of a private sale of Pledged Equity, shall be to a restricted group of purchasers who will be obligated to agree, among other
things, to acquire such securities for their own account, for investment and not with a view to the distribution or resale thereof), at any exchange or broker’s board or elsewhere, by one or more contracts, in one or more parcels, for Money,
upon credit or otherwise, at such prices and upon such terms as the Administrative Agent deems advisable, in its sole discretion (subject to any and all mandatory legal requirements). Each Obligor acknowledges that any such private sale may be at
prices and on terms less favorable to the seller than the prices and other terms which might have been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sale shall be deemed to have been made in a commercially
reasonable manner and, in the case of a sale of Pledged Equity, that the Administrative Agent shall have no obligation to delay sale of any such securities for the period of time necessary to permit the issuer of such securities to register such
securities for public sale under the Securities Act of 1933. Neither the Administrative Agent’s compliance with applicable Law nor its disclaimer of warranties relating to the Collateral shall be considered to adversely affect the commercial
reasonableness of any sale. To the extent the rights of notice cannot be legally waived hereunder, each Obligor agrees that any requirement of reasonable notice shall be met if such notice, specifying the place of any public sale or the time after
which any private sale is to be made, is personally served on or mailed, postage prepaid, to the Borrower in accordance with the notice provisions of Section 11.02 of the Credit Agreement at least 10 days before the time of sale or other
event giving rise to the requirement of such notice. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. Each Obligor further acknowledges and agrees that any offer to sell any Pledged Equity which has been (i) publicly advertised on a bona fide basis in a newspaper or other publication of general
circulation in the financial community of New York, New York (to the extent that such offer may be advertised without prior registration under the Securities Act of 1933), or (ii) made privately in the manner described above shall be deemed to
involve a “public sale” under the UCC, notwithstanding that such sale may not constitute a “public offering” under the Securities Act of 1933, and the Administrative Agent may, in such event, bid for the purchase of such
securities. The Administrative Agent shall not be obligated to make any sale or other disposition of the Collateral regardless of notice having been given. To the extent permitted by applicable Law, any holder of Secured Obligations may be a
purchaser at any such sale. To the extent permitted by applicable Law, each of the Obligors hereby waives all of its rights of redemption with respect to any such sale. Subject to the provisions of applicable Law, the Administrative Agent may
postpone or cause the postponement of the sale of all or any portion of the Collateral by announcement at the time and place of such sale, and such sale may, without further notice, to the extent permitted by Law, be made at the time and place to
which the sale was postponed, or the Administrative Agent may further postpone such sale by announcement made at such time and place. 
 (b) Remedies Relating to Accounts. During the continuation of an Event of Default, whether or not the Administrative Agent has exercised any or all of its rights and remedies hereunder,
(i) each Obligor will promptly upon request of the Administrative Agent instruct all account debtors to remit all payments in respect of Accounts to a mailing location selected by the Administrative Agent and (ii) the Administrative Agent
shall have the right to enforce any Obligor’s rights against its customers and account debtors, and the Administrative Agent or its designee may notify any Obligor’s customers and account debtors that the Accounts of such Obligor have been
assigned to the Administrative Agent or of the Administrative Agent’s security interest therein, and may (either in its own name or in the name of an Obligor or both) demand, collect (including without


  
 11 









 
limitation by way of a lockbox arrangement), receive, take receipt for, sell, sue for, compound, settle, compromise and give acquittance for any and all amounts due or to become due on any
Account, and, in the Administrative Agent’s discretion, file any claim or take any other action or proceeding to protect and realize upon the security interest of the holders of the Secured Obligations in the Accounts. Neither the
Administrative Agent nor the holders of the Secured Obligations shall have any liability or responsibility to any Obligor for acceptance of a check, draft or other order for payment of money bearing the legend “payment in full” or words of
similar import or any other restrictive legend or endorsement or be responsible for determining the correctness of any remittance. Furthermore, during the continuation of an Event of Default, (i) the Administrative Agent shall have the right,
but not the obligation, to make test verifications of the Accounts in any manner and through any medium that it reasonably considers advisable, and the Obligors shall furnish all such assistance and information as the Administrative Agent may
require in connection with such test verifications, (ii) upon the Administrative Agent’s request and at the expense of the Obligors, the Obligors shall cause independent public accountants or others satisfactory to the Administrative Agent
to furnish to the Administrative Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the Accounts and (iii) the Administrative Agent in its own name or in the name of others may communicate with
account debtors on the Accounts to verify with them to the Administrative Agent’s satisfaction the existence, amount and terms of any Accounts. 
 (c) Deposit Accounts. Upon the occurrence of an Event of Default and during continuation thereof, the Administrative Agent may prevent withdrawals or other dispositions of funds in Deposit Accounts
maintained with the Administrative Agent. 
 (d) Access. In addition to the rights and remedies hereunder,
upon the occurrence of an Event of Default and during the continuance thereof, the Administrative Agent shall have the right, subject to applicable Law, to enter and remain upon the various premises of the Obligors without cost or charge to the
Administrative Agent, and use the same, together with materials, supplies, books and records of the Obligors for the purpose of collecting and liquidating the Collateral, or for preparing for sale and conducting the sale of the Collateral, whether
by foreclosure, auction or otherwise. In addition, the Administrative Agent may, subject to applicable Law, remove Collateral, or any part thereof, from such premises and/or any records with respect thereto, in order to effectively collect or
liquidate such Collateral. 
 (e) Nonexclusive Nature of Remedies. Failure by the Administrative Agent or
the holders of the Secured Obligations to exercise any right, remedy or option under this Agreement, any other Loan Document, any other document relating to the Secured Obligations, or as provided by Law, or any delay by the Administrative Agent or
the holders of the Secured Obligations in exercising the same, shall not operate as a waiver of any such right, remedy or option. No waiver hereunder shall be effective unless it is in writing, signed by the party against whom such waiver is sought
to be enforced and then only to the extent specifically stated, which in the case of the Administrative Agent or the holders of the Secured Obligations shall only be granted as provided herein. To the extent permitted by Law, neither the
Administrative Agent, the holders of the Secured Obligations, nor any party acting as attorney for the Administrative Agent or the holders of the Secured Obligations, shall be liable hereunder for any acts or omissions or for any error of judgment
or mistake of fact or law other than their gross negligence or willful misconduct hereunder. The rights and remedies of the Administrative Agent and the holders of the Secured Obligations under this Agreement shall be cumulative and not exclusive of
any other right or remedy which the Administrative Agent or the holders of the Secured Obligations may have. 

  
 12 









 (f) Retention of Collateral. In addition to the rights and remedies
hereunder, the Administrative Agent may, upon the occurrence of an Event of Default and during the continuance thereof, in compliance with Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of applicable Law of the
relevant jurisdiction, accept or retain the Collateral in satisfaction of the Secured Obligations. Unless and until the Administrative Agent shall have provided such notices, however, the Administrative Agent shall not be deemed to have retained any
Collateral in satisfaction of any Secured Obligations for any reason. 
 (g) Deficiency. In the event that
the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Administrative Agent or the holders of the Secured Obligations are legally entitled, the Obligors shall be jointly and severally liable for the
deficiency, together with interest thereon at the Default Rate, together with the costs of collection and the fees, charges and disbursements of counsel. Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall
be returned to the Obligors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto. 
 8.
Rights of the Administrative Agent. 
 (a) Power of Attorney. In addition to other powers of
attorney contained herein, each Obligor hereby designates and appoints the Administrative Agent, on behalf of the holders of the Secured Obligations, and each of its designees or agents, as attorney-in-fact of such Obligor, irrevocably and with
power of substitution, with authority to take any or all of the following actions upon the occurrence and during the continuance of an Event of Default: 
 (i) to demand, collect, settle, compromise, adjust, give discharges and releases, all as the Administrative Agent may reasonably determine; 

(ii) to commence and prosecute any actions at any court for the purposes of collecting any Collateral and enforcing any
other right in respect thereof; 
 (iii) to defend, settle or compromise any action brought and, in connection
therewith, give such discharge or release as the Administrative Agent may deem reasonably appropriate; 
 (iv)
receive, open and dispose of mail addressed to an Obligor and endorse checks, notes, drafts, acceptances, money orders, bills of lading, warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the goods giving
rise to the Collateral of such Obligor on behalf of and in the name of such Obligor, or securing, or relating to such Collateral; 
 (v) sell, assign, transfer, make any agreement in respect of, or otherwise deal with or exercise rights in respect of, any Collateral or the goods or services which have given rise thereto, as fully and
completely as though the Administrative Agent were the absolute owner thereof for all purposes; 
 (vi) adjust
and settle claims under any insurance policy relating thereto; 
 (vii) execute and deliver all assignments,
conveyances, statements, financing statements, renewal financing statements, security agreements, affidavits, notices and other agreements, instruments and documents that the Administrative Agent may determine necessary in order to perfect (other
than with respect to Excluded Property) and maintain the 

  
 13 









 
security interests and liens granted in this Agreement and in order to fully consummate all of the transactions contemplated therein; 

(viii) institute any foreclosure proceedings that the Administrative Agent may deem appropriate; 

(ix) to sign and endorse any drafts, assignments, proxies, stock powers, verifications, notices and other documents
relating to the Collateral; 
 (x) to exchange any of the Pledged Equity or other property upon any merger,
consolidation, reorganization, recapitalization or other readjustment of the issuer thereof and, in connection therewith, deposit any of the Pledged Equity with any committee, depository, transfer agent, registrar or other designated agency upon
such terms as the Administrative Agent may reasonably deem appropriate; 
 (xi) to vote for a shareholder
resolution, or to sign an instrument in writing, sanctioning the transfer of any or all of the Pledged Equity into the name of the Administrative Agent or one or more of the holders of the Secured Obligations or into the name of any transferee to
whom the Pledged Equity or any part thereof may be sold pursuant to Section 7 hereof; 
 (xii) to pay or
discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Collateral; 
 (xiii) to direct any parties liable for any payment in connection with any of the Collateral to make payment of any and all monies due and to become due thereunder directly to the Administrative Agent or
as the Administrative Agent shall direct; 
 (xiv) to receive payment of and receipt for any and all monies,
claims, and other amounts due and to become due at any time in respect of or arising out of any Collateral; and 

(xv) do and perform all such other acts and things as the Administrative Agent may reasonably deem to be necessary, proper
or convenient in connection with the Collateral. 
 This power of attorney is a power coupled with an interest and shall be
irrevocable until such time as the Secured Obligations arising under the Loan Documents have been paid in full (other than contingent indemnification obligations for which no claim has been made) and the Commitments have expired or been terminated.
The Administrative Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Administrative Agent in this Agreement, and shall not be liable for any
failure to do so or any delay in doing so. The Administrative Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except acts or
omissions resulting from its gross negligence or willful misconduct. This power of attorney is conferred on the Administrative Agent solely to protect, preserve and realize upon its security interest in the Collateral. 

(b) Assignment by the Administrative Agent. The Administrative Agent may from time to time assign the Secured
Obligations to a successor Administrative Agent appointed in 

  
 14 









 
accordance with the Credit Agreement, and such successor shall be entitled to all of the rights and remedies of the Administrative Agent under this Agreement in relation thereto. 

(c) The Administrative Agent’s Duty of Care. Other than the exercise of reasonable care to assure the safe
custody of the Collateral while being held by the Administrative Agent hereunder, the Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it being understood and agreed that the Obligors shall be responsible
for preservation of all rights in the Collateral, and the Administrative Agent shall be relieved of all responsibility for the Collateral upon surrendering it or tendering the surrender of it to the Obligors. The Administrative Agent shall be deemed
to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property, which shall be no less
than the treatment employed by a reasonable and prudent agent in the industry, it being understood that the Administrative Agent shall not have responsibility for taking any necessary steps to preserve rights against any parties with respect to any
of the Collateral. In the event of a public or private sale of Collateral pursuant to Section 7 hereof, the Administrative Agent shall have no responsibility for (i) ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relating to any Collateral, whether or not the Administrative Agent has or is deemed to have knowledge of such matters, or (ii) taking any steps to clean, repair or otherwise prepare the
Collateral for sale. 
 (d) Liability with Respect to Accounts. Anything herein to the contrary
notwithstanding, each of the Obligors shall remain liable under each of the Accounts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving
rise to each such Account. Neither the Administrative Agent nor any holder of Secured Obligations shall have any obligation or liability under any Account (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the
receipt by the Administrative Agent or any holder of Secured Obligations of any payment relating to such Account pursuant hereto, nor shall the Administrative Agent or any holder of Secured Obligations be obligated in any manner to perform any of
the obligations of an Obligor under or pursuant to any Account (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any
performance by any party under any Account (or any agreement giving rise thereto), to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it
may be entitled at any time or times. 
 (e) Voting and Payment Rights in Respect of the Pledged Equity.

 (i) So long as no Event of Default shall exist, each Obligor may (A) exercise any and all voting and
other consensual rights pertaining to the Pledged Equity of such Obligor or any part thereof for any purpose not inconsistent with the terms of this Agreement or the Credit Agreement and (B) receive and retain any and all dividends (other than
stock dividends and other dividends constituting Collateral which are addressed hereinabove), principal or interest paid in respect of the Pledged Equity to the extent they are allowed under the Credit Agreement; and 

(ii) During the continuance of an Event of Default, upon notice from the Administrative Agent, (A) all rights of an
Obligor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to clause (i)(A) above shall cease and all such rights shall thereupon become vested in the Administrative Agent which shall then
have the sole right to exercise such voting and 

  
 15 









 
other consensual rights, (B) all rights of an Obligor to receive the dividends, principal and interest payments which it would otherwise be authorized to receive and retain pursuant to
clause (i)(B) above shall cease and all such rights shall thereupon be vested in the Administrative Agent which shall then have the sole right to receive and hold as Collateral such dividends, principal and interest payments, and (C) all
dividends, principal and interest payments which are received by an Obligor contrary to the provisions of clause (ii)(B) above shall be received in trust for the benefit of the Administrative Agent, shall be segregated from other property or funds
of such Obligor, and shall be forthwith paid over to the Administrative Agent as Collateral in the exact form received, to be held by the Administrative Agent as Collateral and as further collateral security for the Secured Obligations. 

(f) Releases of Collateral. (i) If any Collateral shall be sold, transferred or otherwise disposed of by any
Obligor in a transaction permitted by the Credit Agreement, then the Administrative Agent, at the request and sole expense of such Obligor, shall promptly execute and deliver to such Obligor all releases and other documents, and take such other
action, reasonably necessary for the release of the Liens created hereby or by any other Collateral Document on such Collateral. (ii) The Administrative Agent may release any of the Pledged Equity from this Agreement or may substitute any of
the Pledged Equity for other Pledged Equity without altering, varying or diminishing in any way the force, effect, lien, pledge or security interest of this Agreement as to any Pledged Equity not expressly released or substituted, and this Agreement
shall continue as a Lien on all Pledged Equity not expressly released or substituted. 
 9. Application of Proceeds. Upon
the acceleration of the Obligations pursuant to Section 9.02 of the Credit Agreement, any payments in respect of the Secured Obligations and any proceeds of the Collateral, when received by the Administrative Agent or any holder of the
Secured Obligations in Money, will be applied in reduction of the Secured Obligations in the order set forth in Section 9.03 of the Credit Agreement. 
 10. Continuing Agreement. 
 (a) This Agreement shall remain
in full force and effect until such time as the Secured Obligations arising under the Loan Documents have been paid in full (other than contingent indemnification obligations for which no claims has been made) and the Commitments have expired or
been terminated, at which time this Agreement shall be automatically terminated and the Administrative Agent shall, upon the request and at the expense of the Obligors, forthwith release all of its liens and security interests hereunder and shall
execute and deliver all UCC termination statements and/or other documents reasonably requested by the Obligors evidencing such termination. 
 (b) This Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must
otherwise be restored or returned by the Administrative Agent or any holder of the Secured Obligations as a preference, fraudulent conveyance or otherwise under any Debtor Relief Law, all as though such payment had not been made; provided that in
the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all reasonable costs and expenses (including without limitation any reasonable legal fees and disbursements) incurred by the Administrative
Agent or any holder of the Secured Obligations in defending and enforcing such reinstatement shall be deemed to be included as a part of the Secured Obligations. 

  
 16 









 11. Amendments; Waivers; Modifications, etc. This Agreement and the provisions hereof
may not be amended, waived, modified, changed, discharged or terminated except as set forth in Section 11.01 of the Credit Agreement; provided that any update or revision to Schedule 2(c) hereof delivered by any Obligor shall not
constitute an amendment for purposes of this Section 11 or Section 11.01 of the Credit Agreement. 
 12.
Successors in Interest. This Agreement shall be binding upon each Obligor, its successors and assigns and shall inure, together with the rights and remedies of the Administrative Agent and the holders of the Secured Obligations hereunder, to
the benefit of the Administrative Agent and the holders of the Secured Obligations and their successors and permitted assigns. 

13. Notices. All notices required or permitted to be given under this Agreement shall be in conformance with
Section 11.02 of the Credit Agreement. 
 14. Counterparts. This Agreement may be executed in any number of
counterparts, each of which where so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Agreement to produce or account for more than one such
counterpart. Delivery of executed counterparts of this Agreement by facsimile or other electronic means shall be effective as an original. 
 15. Headings. The headings of the sections hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement. 

16. Governing Law; Submission to Jurisdiction; Venue; WAIVER OF JURY TRIAL. The terms of Sections 11.14 and 11.15 of
the Credit Agreement with respect to governing law, submission to jurisdiction, venue and waiver of jury trial are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms. 

17. Severability. If any provision of this Agreement is determined to be illegal, invalid or unenforceable, such provision shall
be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions. 

18. Entirety. This Agreement, the other Loan Documents and the other documents relating to the Secured Obligations represent the
entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Loan Documents, any other documents relating to
the Secured Obligations, or the transactions contemplated herein and therein. 
 19. Other Security. To the extent that
any of the Secured Obligations are now or hereafter secured by property other than the Collateral (including, without limitation, real property and securities owned by an Obligor), or by a guarantee, endorsement or property of any other Person, then
the Administrative Agent shall have the right to proceed against such other property, guarantee or endorsement during the continuance of any Event of Default, and the Administrative Agent shall have the right, in its sole discretion, to determine
which rights, security, liens, security interests or remedies the Administrative Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured
Obligations or any of the rights of the Administrative Agent or the holders of the Secured Obligations under this Agreement, under any other of the Loan Documents or under any other document relating to the Secured Obligations. 

20. Joinder. At any time after the date of this Agreement, one or more additional Persons may become party hereto by executing and
delivering to the Administrative Agent a Joinder Agreement. Immediately upon such execution and delivery of such Joinder Agreement (and without any further action), 

  
 17 









 
each such additional Person will become a party to this Agreement as an “Obligor” and have all of the rights and obligations of an Obligor hereunder and this Agreement and the schedules
hereto shall be deemed amended by such Joinder Agreement. 
 21. Rights of Required Lenders. All rights of the
Administrative Agent hereunder, if not exercised by the Administrative Agent, may be exercised by the Required Lenders. 
 22.
Consent of Issuers of Pledged Equity. Each issuer of Pledged Equity party to this Agreement hereby acknowledges, consents and agrees to the grant of the security interests in such Pledged Equity by the applicable Obligors pursuant to this
Agreement, together with all rights accompanying such security interest as provided by this Agreement and applicable law, notwithstanding any anti-assignment provisions in any operating agreement, limited partnership agreement or similar
organizational or governance documents of such issuer. 
 [remainder of page intentionally left blank] 

  
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 Each of the parties hereto has caused a counterpart of this Agreement to be duly executed
and delivered as of the date first above written. 
  

					
	OBLIGORS:	 	NEWPORT CORPORATION,
		 	a Nevada corporation
			
		 	By:	 	 /s/ Charles F. Cargile

		 	Name:	 	Charles F. Cargile
		 	Title:	 	Senior Vice President and Chief Financial Officer

 Accepted and agreed to as of the date first above written. 
 BANK OF AMERICA, N.A., as Administrative Agent 
  

			
	By:	 	 /s/ Christine Trotter

	Name:	 	Christine Trotter
	Title:	 	Assistant Vice President


  
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 SCHEDULE 1(b) 

PLEDGED EQUITY 
 Obligor:
Newport Corporation 
  

													
	 Name of Subsidiary
	  	Jurisdiction	  	
Number of Shares/Units
Owned
	  	
Number of Shares/Units
Pledged
	  	Certificate
Number	  	Percentage
Ownership
Pledged	 
	 Birch Nantucket Holding Company, LLC*
	  	Delaware	  	1 membership unit	  	1 membership unit	  	Uncertificated	  	 	100	% 
						
	 Newport Domestic International Sales Corporation*
	  	California	  	unknown	  	unknown	  	unknown	  	 	100	% 
						
	 Newport Inspection Holdings, Inc.*
	  	Michigan	  	4,668 common shares	  	4,668 common shares	  		  	 	100	% 
						
	 Newport European Distribution Company*
	  	California	  	1,000 common shares	  	1,000 common shares	  		  	 	100	% 
						
	 Newport Finance Company I, LLC*
	  	Delaware	  	1 membership unit	  	1 membership unit	  	Uncertificated	  	 	100	% 
						
	 Newport Finance Company II, LLC*
	  	Delaware	  	1 membership unit	  	1 membership unit	  	Uncertificated	  	 	100	% 
						
	 Newport Government Systems, Inc.*
	  	California	  	unknown	  	unknown	  	unknown	  	 	100	% 
						
	 Newport Precision Optics Corporation*
	  	New York	  	100 common shares	  	100 common shares	  		  	 	100	% 
						
	 Spectra-Physics Optics Corporation*
	  	California	  	100 common shares	  	100 common shares	  		  	 	100	% 
						
	 Unique Equipment Company*
	  	Arizona	  	135,870 common shares	  	135,870 common shares	  	5	  	 	100	% 
						
	 Micro-Controle Holdings Ltd.
	  	United
Kingdom	  	10,000 ordinary shares	  	6,500 ordinary shares	  		  	 	65	% 









													
	 Name of Subsidiary
	  	Jurisdiction	  	
Number of Shares/Units
Owned
	  	
Number of Shares/Units
Pledged
	  	Certificate
Number	  	Percentage
Ownership
Pledged	 
	 Micro Controle Spectra-Physics S.A.S.
	  	France	  	62,665 shares	  	40,733 shares	  		  	 	65	% 
						
	 Newport Corporation (Barbados) SRL
	  	Barbados	  	99 quotas	  	64 quotas	  	1	  	 	65	% 
						
	 Newport Instruments Canada Corporation
	  	Canada	  	1 common share	  	TBD	  		  	 	65	% 
						
	 Newport Opto-Electronics Technologies (Singapore) Pte. Ltd.
	  	Singapore	  	1,052,788 ordinary shares	  	684,313 ordinary shares	  	Uncertificated	  	 	65	% 
						
	 Newport Opto-Electronics Technologies (Wuxi) Company Limited
	  	China	  	USD 6,000,000 registered capital	  	USD 3,900,000 registered capital	  	Uncertificated	  	 	65	% 
						
	 Newport Spectra-Physics BV
	  	Netherlands	  	400 shares	  	260 shares	  		  	 	65	% 
						
	 Newport Spectra-Physics Ltd.
	  	United
Kingdom	  	806,914 shares	  	524,495 shares	  		  	 	65	% 
						
	 Spectra-Physics K.K.
	  	Japan	  	80,000 shares	  	52,000 shares	  		  	 	65	% 
						
	 Newport Laser Holding GmbH
	  	Austria	  	Euro 35,000 share capital	  	Euro 22,750 share capital	  	Uncertificated	  	 	65	% 
						
	 Ophir Optronics Ltd.
	  	Israel	  	1,000 ordinary shares	  	650 ordinary shares	  		  	 	65	% 

  

	*	Excluded Subsidiary 








 SCHEDULE 2(c) 
 COMMERCIAL TORT CLAIMS 
 None. 







 SCHEDULE 3(g) 
 INSTRUMENTS; DOCUMENTS; TANGIBLE CHATTEL PAPER 
 None. 







 EXHIBIT 4(a)(ii) 

IRREVOCABLE STOCK POWER 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to 
 the following Equity
Interests of
                                        , a
             corporation: 
  

							
	  	 	 No. of Shares
	 	 Certificate No.
	 	  
		 		 		 	

 and irrevocably appoints
                                         
        its agent and attorney-in-fact to transfer all or any part of such Equity Interests and to take all necessary and appropriate action to effect any such transfer. The agent and attorney-in-fact may substitute
and appoint one or more persons to act for him. 
  

			
	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  










 EXHIBIT 4(b)(i) 

NOTICE 
 OF

 GRANT OF SECURITY INTEREST 
 IN 
 PATENTS 
 United States Patent and Trademark Office 
 Ladies and Gentlemen: 

Please be advised that pursuant to the Security and Pledge Agreement dated as of October 4, 2011 (as the same may be amended,
modified, extended or restated from time to time, the “Agreement”) by and among the Obligors party thereto (each an “Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as
administrative agent (the “Administrative Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Obligor has granted a continuing security interest in and continuing lien upon the patents and patent
applications shown below to the Administrative Agent for the ratable benefit of the holders of the Secured Obligations: 

PATENTS 
  

					
	 Patent No.
	  	 Description of

Patent Item
	  	 Date of Patent

			
		  	See Schedule 1 attached hereto	  	

 PATENT APPLICATIONS 

 

					
	 Patent Applications No.
	  	 Description of

Patent Applied for
	  	 Date of

Patent Applications

			
		  	See Schedule 1 attached hereto	  	








 The undersigned Obligor and the Administrative Agent, on behalf of the holders of the
Secured Obligations, hereby acknowledge and agree that the security interest in the foregoing patents and patent applications (i) may only be terminated in accordance with the terms of the Agreement and (ii) is not to be construed as an
assignment of any patent or patent application. 
  

			
	Very truly yours,
	
	  

	[Obligor]
		
	By:	 	  

	Name:	 	  

	Title:	 	  



 Acknowledged and Accepted: 
 BANK OF AMERICA, N.A., as Administrative Agent 
  

			
	By:	 	  

	Name:	 	  

	Title:	 	  









 EXHIBIT 4(b)(ii) 

NOTICE 
 OF

 GRANT OF SECURITY INTEREST 
 IN 
 TRADEMARKS 
 United States Patent and Trademark Office 
 Ladies and Gentlemen: 

Please be advised that pursuant to the Security and Pledge Agreement dated as of October 4, 2011 (as the same may be amended,
modified, extended or restated from time to time, the “Agreement”) by and among the Obligors party thereto (each an “Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as
Administrative Agent (the “Administrative Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Obligor has granted a continuing security interest in and continuing lien upon the trademarks and
trademark applications shown below to the Administrative Agent for the ratable benefit of the holders of the Secured Obligations: 
 TRADEMARKS 
  

					
	 Trademark No.
	  	 Description of

Trademark Item
	  	 Date of Trademark

			
		  	See Schedule 1 attached hereto	  	

 TRADEMARK APPLICATIONS 

 

					
	 Trademark Applications No.
	  	 Description of

Trademark Applied for
	  	 Date of

Trademark Applications

			
		  	See Schedule 1 attached hereto	  	








 The undersigned Obligor and the Administrative Agent, on behalf of the holders of the
Secured Obligations, hereby acknowledge and agree that the security interest in the foregoing trademarks and trademark applications (i) may only be terminated in accordance with the terms of the Agreement and (ii) is not to be construed as
an assignment of any trademark or trademark application. 
  

			
	Very truly yours,
	
	  

	[Obligor]
		
	By:	 	  

	Name:	 	  

	Title:	 	  



 Acknowledged and Accepted: 
 BANK OF AMERICA, N.A., as Administrative Agent 
  

			
	By:	 	  

	Name:	 	  

	Title:	 	  









 EXHIBIT 4(b)(iii) 

NOTICE 
 OF

 GRANT OF SECURITY INTEREST 
 IN 
 COPYRIGHTS 
 United States Copyright Office 
 Ladies and Gentlemen: 

Please be advised that pursuant to the Security and Pledge Agreement dated as of October 4, 2011 (as the same may be amended,
modified, extended or restated from time to time, the “Agreement”) by and among the Obligors party thereto (each an “Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as
administrative agent (the “Administrative Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Obligor has granted a continuing security interest in and continuing lien upon the copyrights and
copyright applications shown below to the Administrative Agent for the ratable benefit of the holders of the Secured Obligations: 
 COPYRIGHTS 
  

					
	 Copyright No.
	  	 Description of

Copyright Item
	  	 Date of Copyright

			
		  	See Schedule 1 attached hereto	  	

 COPYRIGHT APPLICATIONS 

 

					
	 Copyright Applications No.
	  	 Description of

Copyright Applied for
	  	 Date of

Copyright Applications

			
		  	See Schedule 1 attached hereto	  	








 The undersigned Obligor and the Administrative Agent, on behalf of the holders of the
Secured Obligations, hereby acknowledge and agree that the security interest in the foregoing copyrights and copyright applications (i) may only be terminated in accordance with the terms of the Agreement and (ii) is not to be construed as
an assignment of any copyright or copyright application. 
  

			
	Very truly yours,
	
	  

	[Obligor]
		
	By:	 	  

	Name:	 	  

	Title:	 	  



 Acknowledged and Accepted: 
 BANK OF AMERICA, N.A., as Administrative Agent 
  

			
	By:	 	  

	Name:	 	  

	Title: