exv10w3





Exhibit 10.3




Execution Version



 





GUARANTY AND SECURITY AGREEMENT




Dated as of October 14, 2010



among




CBAY INC.,




MEDQUIST INC.,



MEDQUIST TRANSCRIPTIONS, LTD.



and



Each Other Grantor

From Time to Time Party Hereto



and



GENERAL ELECTRIC CAPITAL CORPORATION,

as Administrative Agent and Collateral Agent



 




 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINED TERMS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Definitions
	 	 	1	 
	Section 1.2 Certain Other Terms
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II GUARANTY
	 	 	4	 
	 
	 	 	 	 
	Section 2.1 Guaranty
	 	 	4	 
	Section 2.2 Limitation of Guaranty
	 	 	4	 
	Section 2.3 Contribution
	 	 	5	 
	Section 2.4 Authorization; Other Agreements
	 	 	5	 
	Section 2.5 Guaranty Absolute and Unconditional
	 	 	5	 
	Section 2.6 Waivers
	 	 	6	 
	Section 2.7 Reliance
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III GRANT OF SECURITY INTEREST
	 	 	7	 
	 
	 	 	 	 
	Section 3.1 Collateral
	 	 	7	 
	Section 3.2 Grant of Security Interest in Collateral
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	8	 
	 
	 	 	 	 
	Section 4.1 Title; No Other Liens
	 	 	8	 
	Section 4.2 Perfection and Priority
	 	 	8	 
	Section 4.3 Jurisdiction of Organization; Chief Executive Office
	 	 	9	 
	Section 4.4 Locations of Inventory, Equipment and Books and Records
	 	 	9	 
	Section 4.5 Pledged Collateral
	 	 	9	 
	Section 4.6 Instruments and Tangible Chattel Paper Formerly Accounts
	 	 	9	 
	Section 4.7 Intellectual Property
	 	 	9	 
	Section 4.8 Commercial Tort Claims
	 	 	10	 
	Section 4.9 Specific Collateral
	 	 	10	 
	Section 4.10 Enforcement
	 	 	10	 
	Section 4.11 Representations and Warranties of the Credit Agreement
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V COVENANTS
	 	 	10	 
	 
	 	 	 	 
	Section 5.1 Maintenance of Perfected Security Interest; Further
Documentation and Consents
	 	 	10	 
	Section 5.2 Changes in Locations, Name, Etc
	 	 	11	 
	Section 5.3 Pledged Collateral
	 	 	12	 
	Section 5.4 Accounts
	 	 	12	 
	Section 5.5 Commodity Contracts
	 	 	13	 
	Section 5.6 Delivery of Instruments and Tangible Chattel Paper and Control of Investment
Property, Letter-of-Credit Rights and Electronic Chattel Paper
	 	 	13	 
	Section 5.7 Intellectual Property
	 	 	13	 
	Section 5.8 Notices
	 	 	14	 
	Section 5.9 Notice of Commercial Tort Claims
	 	 	14	 
	Section 5.10 Compliance with Credit Agreement
	 	 	15	 
	 
	 	 	 	 
	ARTICLE VI REMEDIAL PROVISIONS
	 	 	15	 
	 
	 	 	 	 
	Section 6.1 Code and Other Remedies
	 	 	15	 
	Section 6.2 Accounts and Payments in Respect of General Intangibles
	 	 	18	 
	Section 6.3 Pledged Collateral
	 	 	19	 











i









 








TABLE OF CONTENTS

(continued)




	 	 	 	 	 
	 	 	Page	 
	Section 6.4 Proceeds to be Turned over to and Held by Administrative Agent
	 	 	19	 
	Section 6.5 Registration Rights
	 	 	20	 
	Section 6.6 Deficiency
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VII THE ADMINISTRATIVE AGENT
	 	 	21	 
	 
	 	 	 	 
	Section 7.1 Administrative Agent’s Appointment as Attorney-in-Fact
	 	 	21	 
	Section 7.2 Authorization to File Financing Statements
	 	 	22	 
	Section 7.3 Authority of Administrative Agent
	 	 	22	 
	Section 7.4 Duty; Obligations and Liabilities
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VIII MISCELLANEOUS
	 	 	23	 
	 
	 	 	 	 
	Section 8.1 Reinstatement
	 	 	23	 
	Section 8.2 Release of Collateral
	 	 	24	 
	Section 8.3 Independent Obligations
	 	 	24	 
	Section 8.4 No Waiver by Course of Conduct
	 	 	24	 
	Section 8.5 Amendments in Writing
	 	 	24	 
	Section 8.6 Additional Grantors; Additional Pledged Collateral
	 	 	25	 
	Section 8.7 Notices
	 	 	25	 
	Section 8.8 Successors and Assigns
	 	 	25	 
	Section 8.9 Counterparts
	 	 	25	 
	Section 8.10 Severability
	 	 	25	 
	Section 8.11 Governing Law
	 	 	25	 
	Section 8.12 Waiver of Jury Trial
	 	 	26	 











ii









 








TABLE OF CONTENTS




ANNEXES AND SCHEDULES




	 	 	 

	Annex 1
	 	Form of Pledge Amendment

	Annex 2
	 	Form of Joinder Agreement

	Annex 3
	 	Form of Intellectual Property Security Agreement

	 	 	 

	Schedule 1
	 	Commercial Tort Claims

	Schedule 2
	 	Filings

	Schedule 3
	 	Jurisdiction of Organization; Chief Executive Office

	Schedule 4
	 	Location of Inventory and Equipment

	Schedule 5
	 	Pledged Collateral

	Schedule 6
	 	Intellectual Property







iii









 





          GUARANTY AND SECURITY AGREEMENT, dated as of October 14, 2010, by CBay Inc., a Delaware
corporation (“CBay”), MedQuist Inc., a New Jersey corporation (“MedQuist”), MedQuist
Transcriptions, Ltd., a New Jersey corporation (“MedQuist Transcriptions” and together with
CBay and MedQuist, the “Borrowers”), and each of the other entities listed on the signature
pages hereof or that becomes a party hereto pursuant to Section 8.6 (together with the
Borrowers, the “Grantors”), in favor of General Electric Capital Corporation (“GE
Capital”), as administrative agent and collateral agent (in such capacities, together with its
successors and permitted assigns, the “Administrative Agent”) for the Lenders and the L/C
Issuers and each other Secured Party (each as defined in the Credit Agreement referred to below).




W I T N E S S E T H:




          WHEREAS, pursuant to the Credit Agreement, dated as of October 1, 2010 (as the same may be
modified from time to time, the “Credit Agreement”), among the Borrowers, CBaySystems
Holdings Ltd., a company incorporated in the British Virgin Islands (“Holdings”), the
Lenders and the L/C Issuers from time to time party thereto and GE Capital, as administrative agent
and collateral agent for the Lenders and the L/C Issuers, the Lenders and the L/C Issuers have
severally agreed to make extensions of credit to the Borrowers upon the terms and subject to the
conditions set forth therein;




          WHEREAS, each Grantor (other than the Borrowers) has agreed to guaranty the Obligations (as
defined in the Credit Agreement) of the Borrowers;




          WHEREAS, each Grantor will derive substantial direct and indirect benefits from the making of
the extensions of credit under the Credit Agreement; and




          WHEREAS, it is a condition precedent to the obligation of the Lenders and the L/C Issuers to
make their respective extensions of credit to the Borrowers under the Credit Agreement that the
Grantors shall have executed and delivered this Agreement to the Administrative Agent;




          NOW, THEREFORE, in consideration of the premises and to induce the Lenders, the L/C Issuers
and the Administrative Agent to enter into the Credit Agreement and to induce the Lenders and the
L/C Issuers to make their respective extensions of credit to the Borrowers thereunder, each Grantor
hereby agrees with the Administrative Agent as follows:




ARTICLE I




DEFINED TERMS



     Section 1.1 Definitions. (a) Capital terms used herein without definition are
used as defined in the Credit Agreement.



          (b) The following terms have the meanings given to them in the UCC and terms used herein
without definition that are defined in the UCC have the meanings given to them in the UCC (such
meanings to be equally applicable to both the singular and plural forms of the terms defined):
“account”, “account debtor”, “as-extracted collateral”, “certificated
security”, “chattel paper”, “commercial tort claim”, “commodity
contract”, “deposit account”, “electronic chattel paper”, “equipment”,
“farm products”, “fixture”, “general intangible”, “goods”,
“healthcare-insurance receivable”, “instruments”, “inventory”,
“investment property”, “letter-of-credit




GUARANTY AND SECURITY AGREEMENT

MEDQUIST TRANSCRIPTIONS, LTD.









 









 







right”, “proceeds”, “record”, “securities account”,
“security”, “supporting obligation” and “tangible chattel paper”.




          (c) The following terms shall have the following meanings:




          “Affiliate Guarantor” means any Guarantor that is not a direct or indirect parent
company of the Borrowers.




          “Agreement” means this Guaranty and Security Agreement.




          “Applicable IP Office” means the United States Patent and Trademark Office, the United
States Copyright Office or any similar office or agency within or outside the United States.




          “Collateral” has the meaning specified in Section 3.1.




          “Excluded Equity” means any voting stock in excess of 65% of the outstanding voting
stock of any Excluded Foreign Subsidiary. For the purposes of this definition, “voting
stock” means, with respect to any issuer, the issued and outstanding shares of each class of
Stock of such issuer entitled to vote (within the meaning of Treasury Regulations § 1.956-2(c)(2)).




          “Excluded Property” means, collectively, (i) Excluded Equity, (ii) any contract,
general intangible, instrument, chattel paper, lease, permit, license, charter, license agreement
or any Contractual Obligation entered into by any Grantor (A) that prohibits or requires the
consent of any Person other than any Borrower and its Affiliates as a condition to the creation by
such Grantor of a Lien on any right, title or interest in such permit, license or Contractual
Obligation or any Stock or Stock Equivalent related thereto or (B) to the extent that any
Requirement of Law applicable thereto prohibits the creation of a Lien thereon, but only, with
respect to the prohibitions in (A) and (B), to the extent, and for as long as, such prohibitions
are not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC or any
other Requirement of Law, (iii) fixed or capital assets owned by any Grantor that is subject to a
purchase money Lien or a Capital Lease if the Contractual Obligation pursuant to which such Lien is
granted (or in the document providing for such Capital Lease) prohibits or requires the consent of
any Person other than any Borrower and its Affiliates as a condition to the creation of any other
Lien on such equipment, (iv) any “intent to use” Trademark applications for which a statement of
use has not been filed (but only until such statement is filed), and (v) all Vehicles;
provided, however, “Excluded Property” shall not include any proceeds,
products, substitutions or replacements of Excluded Property (unless such proceeds, products,
substitutions or replacements would otherwise constitute Excluded Property).




          “Grantor” has the meaning set forth in the preamble hereto.




          “Guaranteed Obligations” has the meaning set forth in Section 2.1.




          “Guarantor” means each Grantor other than the Borrowers.




          “Guaranty” means the guaranty of the Guaranteed Obligations made by the Guarantors as
set forth in this Agreement.




2









 





          “Material Intellectual Property” means Intellectual Property that is owned by or
licensed to a Grantor and necessary for the conduct of any Grantor’s business.




          “Pledged Certificated Securities” means all right, title and interest of any Grantor
in all certificated securities (and any distribution of property made on, in respect of or in
exchange for the foregoing from time to time) having a face value or book value in excess of
$100,000 individually or in the aggregate for all such property, excluding all Pledged Stock.
Pledged Certificated Securities excludes any Excluded Property and any Cash Equivalents that are
not held in Controlled Securities Accounts to the extent permitted by Section 7.11 of the
Credit Agreement.




          “Pledged Certificated Stock” means all right, title and interest of any Grantor in any
Stock or Stock Equivalent of any Person evidenced by a certificate (and any distribution of
property made on, in respect of or in exchange for the foregoing from time to time) having a face
value or book value in excess of $100,000 individually or in the aggregate for all such property,
including all Stock and Stock Equivalents listed on Schedule 5. Pledged Certificated Stock
excludes any Excluded Property and any Cash Equivalents that are not held in Controlled Securities
Accounts to the extent permitted by Section 7.11 of the Credit Agreement.




          “Pledged Collateral” means, collectively, the Pledged Stock, the Pledged Certificated
Securities and the Pledged Debt Instruments.




          “Pledged Debt Instruments” means all right, title and interest of any Grantor in
instruments evidencing any Indebtedness (and any distribution of property made on, in respect of or
in exchange for the foregoing from time to time) having a face value or book value in excess of
$100,000 individually or in the aggregate for all such property, including all Indebtedness
described on Schedule 5, issued by the obligors named therein. Pledged Debt Instruments
excludes any Excluded Property and any Cash Equivalents that are not held in Controlled Securities
Accounts to the extent permitted by Section 7.11 of the Credit Agreement.




          “Pledged Investment Property” means all right, title and interest of any Grantor in
any investment property (and any distribution of property made on, in respect of or in exchange for
the foregoing from time to time) having a face value or book value in excess of $100,000
individually or in the aggregate for all such property, excluding all certificated securities.
Pledged Investment Property excludes any Excluded Property and any Cash Equivalents that are not
held in Controlled Securities Accounts to the extent permitted by Section 7.11 of the
Credit Agreement.




          “Pledged Stock” means all Pledged Certificated Stock and all Pledged Uncertificated
Stock.




          “Pledged Uncertificated Stock” means all right, title and interest of any Grantor in
any Stock or Stock Equivalent of any Person that is not Pledged Certificated Stock, including all
right, title and interest of any Grantor as a limited or general partner in any partnership not
constituting Pledged Certificated Stock or as a member of any limited liability company, all right,
title and interest of any Grantor in, to and under any Constituent Document of any partnership or
limited liability company to which it is a party (and any distribution of property made on, in
respect of or in exchange for the foregoing from time to time), having a face value or book value
in excess of $100,000 individually or in the aggregate for all such property, including in each
case those interests set forth on Schedule 5, to the extent such interests are not
certificated. Pledged









3









 







Uncertificated Stock excludes any Excluded Property and any Cash Equivalents that are not held in
Controlled Securities Accounts to the extent permitted by Section 7.11 of the Credit
Agreement.




          “Security Cash Collateral Account” means a Cash Collateral Account that is not a L/C
Cash Collateral Account.




          “Software” means (a) all computer programs, including source code and object code
versions, (b) all data, databases and compilations of data, whether machine readable or otherwise,
and (c) all documentation, training materials and configurations related to any of the foregoing.




          “Subsidiary Guarantor” means any Guarantor that is a Subsidiary of any
Borrower.




          “UCC” means the Uniform Commercial Code as from time to time in effect in the State of
New York; provided, however, that, in the event that, by reason of mandatory
provisions of any applicable Requirement of Law, any of the attachment, perfection or priority of
the Administrative Agent’s or any other Secured Party’s security interest in any Collateral is
governed by the Uniform Commercial Code of a jurisdiction other than the State of New York,
“UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such attachment, perfection or priority and for
purposes of the definitions related to or otherwise used in such provisions.




          “Vehicles” means all vehicles covered by a certificate of title law of any state.




     Section 1.2 Certain Other Terms. (a) The meanings given to terms defined herein shall
be equally applicable to both the singular and plural forms of such terms. The terms
“herein”, “hereof” and similar terms refer to this Agreement as a whole and not to
any particular Article, Section or clause in this Agreement. References herein to an Annex,
Schedule, Article, Section or clause refer to the appropriate Annex or Schedule to, or Article,
Section or clause in this Agreement. Where the context requires, provisions relating to any
Collateral when used in relation to a Grantor shall refer to such Grantor’s Collateral or any
relevant part thereof.



          (b) Section 1.6 (Interpretation) of the Credit Agreement is applicable to this
Agreement as and to the extent set forth therein.




ARTICLE II




GUARANTY



     Section 2.1 Guaranty. To induce the Lenders to make the Loans and the L/C Issuers to
Issue Letters of Credit, each Guarantor hereby, jointly and severally, absolutely, unconditionally
and irrevocably guarantees, as primary obligor and not merely as surety, the full and punctual
payment when due, whether at stated maturity or earlier, by reason of acceleration, mandatory
prepayment or otherwise in accordance with any Loan Document, all of the Obligations of the
Borrowers whether existing on the date hereof or hereinafter incurred or created (the
“Guaranteed Obligations”). This Guaranty by each Guarantor hereunder constitutes a guaranty
of payment and not of collection.



4









 





     Section 2.2 Limitation of Guaranty. Any term or provision of this Guaranty or any
other Loan Document to the contrary notwithstanding, the maximum aggregate amount for which any
Affiliate Guarantor or Subsidiary Guarantor shall be liable hereunder shall not exceed the maximum
amount for which such Affiliate Guarantor or Subsidiary Guarantor can be liable without rendering
this Guaranty or any other Loan Document, as it relates to such Affiliate Guarantor or Subsidiary
Guarantor, subject to avoidance under applicable Requirements of Law relating to fraudulent
conveyance or fraudulent transfer (including the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act and Section 548 of title 11 of the United States Code or any applicable
provisions of comparable Requirements of Law) (collectively, “Fraudulent Transfer Laws”).
Any analysis of the provisions of this Guaranty for purposes of Fraudulent Transfer Laws shall take
into account the right of contribution established in Section 2.3 and, for purposes of such
analysis, give effect to any discharge of intercompany debt as a result of any payment made under
the Guaranty.



     Section 2.3 Contribution. To the extent that any Subsidiary Guarantor shall be
required hereunder to pay any portion of any Guaranteed Obligation exceeding the greater of (a) the
amount of the economic benefit actually received by such Subsidiary Guarantor from the Loans and
other Obligations and (b) the amount such Subsidiary Guarantor would otherwise have paid if such
Subsidiary Guarantor had paid the aggregate amount of the Guaranteed Obligations (excluding the
amount thereof repaid by the Borrowers and Holdings) in the same proportion as such Subsidiary
Guarantor’s net worth on the date enforcement is sought hereunder bears to the aggregate net worth
of all the Subsidiary Guarantors on such date, then such Guarantor shall be reimbursed by such
other Subsidiary Guarantors for the amount of such excess, pro rata, based on the respective net
worth of such other Subsidiary Guarantors on such date.



     Section 2.4 Authorization; Other Agreements. The Secured Parties are hereby
authorized, without notice to or demand upon any Guarantor and without discharging or otherwise
affecting the obligations of any Guarantor hereunder and without incurring any liability hereunder,
from time to time, to do each of the following:



          (a) (i) modify, amend, supplement or otherwise change, (ii) accelerate or otherwise change the
time of payment or (iii) waive or otherwise consent to noncompliance with, any Guaranteed
Obligation or any Loan Document;




          (b) apply to the Guaranteed Obligations any sums by whomever paid or however realized to any
Guaranteed Obligation in such order as provided in the Loan Documents;




          (c) refund at any time any payment received by any Secured Party in respect of any Guaranteed
Obligation;




          (d) (i) sell, exchange, enforce, waive, substitute, liquidate, terminate, release, abandon,
fail to perfect, subordinate, accept, substitute, surrender, exchange, affect, impair or otherwise
alter or release any Collateral for any Guaranteed Obligation or any other guaranty therefor in any
manner, (ii) receive, take and hold additional Collateral to secure any Guaranteed Obligation,
(iii) add, release or substitute any one or more other Guarantors, makers or endorsers of any
Guaranteed Obligation or any part thereof and (iv) otherwise deal in any manner with the Borrowers
and any other Guarantor, maker or endorser of any Guaranteed Obligation or any part thereof; and







5









 








          (e) settle, release, compromise, collect or otherwise liquidate the Guaranteed
Obligations.



Nothing in this Section 2.4 shall be construed to modify the requirements of Section 11.1 of the
Credit Agreement (or any similar provision in any other Loan Document) for effectiveness of any
amendment or modification of or supplement to any Loan Document.




     Section 2.5 Guaranty Absolute and Unconditional. Each Guarantor hereby waives and
agrees not to assert any defense (other than indefeasible payment in full of the Guaranteed
Obligations in cash or other immediately available funds), whether arising in connection with or in
respect of any of the following or otherwise, and hereby agrees that its obligations under this
Guaranty are irrevocable, absolute and unconditional and shall not be discharged as a result of or
otherwise affected by any of the following (which may not be pleaded and evidence of which may not
be introduced in any proceeding with respect to this Guaranty, in each case except as otherwise
agreed in writing by the Administrative Agent):



          (a) the invalidity or unenforceability of any obligation of any Borrower or any other
Guarantor under any Loan Document or any other agreement or instrument relating thereto (including
any amendment, consent or waiver thereto), or any security for, or other guaranty of, any
Guaranteed Obligation or any part thereof, or the lack of perfection or continuing perfection or
failure of priority of any security for the Guaranteed Obligations or any part thereof;




          (b) the absence of (i) any attempt to collect any Guaranteed Obligation or any part thereof
from any Borrower or any other Guarantor or other action to enforce the same or (ii) any action to
enforce any Loan Document or any Lien thereunder;




          (c) the failure by any Person to take any steps to perfect and maintain any Lien on, or to
preserve any rights with respect to, any Collateral;




          (d) any workout, insolvency, bankruptcy proceeding, reorganization, arrangement, liquidation
or dissolution by or against any Borrower, any other Guarantor or any of the Borrowers’ other
Subsidiaries or any procedure, agreement, order, stipulation, election, action or omission
thereunder, including any discharge or disallowance of, or bar or stay against collecting, any
Guaranteed Obligation (or any interest thereon) in or as a result of any such proceeding;




          (e) any foreclosure, whether or not through judicial sale, and any other Sale of any
Collateral or any election following the occurrence of an Event of Default by any Secured Party to
proceed separately against any Collateral in accordance with such Secured Party’s rights under any
applicable Requirement of Law; or




          (f) any other defense, setoff, counterclaim or any other circumstance that might otherwise
constitute a legal or equitable discharge of any Borrower, any other Guarantor or any of the
Borrowers’ other Subsidiaries, in each case other than the payment in full of the Guaranteed
Obligations.




     Section 2.6 Waivers. Each Guarantor hereby unconditionally and irrevocably waives and
agrees not to assert any claim, defense, setoff or counterclaim based on diligence, promptness,
presentment, requirements for any demand or notice hereunder including any of the



6









 




following: (a) any demand for payment or performance and protest and notice of protest, (b) any
notice of acceptance, (c) any presentment, demand, protest or further notice or other requirements
of any kind with respect to any Guaranteed Obligation (including any accrued but unpaid interest
thereon) becoming immediately due and payable and (d) any other notice in respect of any Guaranteed
Obligation or any part thereof, and any defense arising by reason of any disability or other
defense of any Borrower or any other Guarantor (other than indefeasible payment in full of the
Guaranteed Obligations in cash or other immediately available funds). Each Guarantor further
unconditionally and irrevocably agrees not to (x) enforce or otherwise exercise any right of
subrogation or any right of reimbursement or contribution or similar right against any Borrower or
any other Guarantor by reason of any Loan Document or any payment made thereunder or (y) assert any
claim, defense, setoff or counterclaim it may have against any other Loan Party or set off any of
its obligations to such other Loan Party against obligations of such Loan Party to such Guarantor,
in each case at any time during which an Event of Default has occurred and is continuing, until
indefeasible payment in full of the Guaranteed Obligations (other than any Contingent Loan Document
Obligations) in cash or other immediately available funds and termination of all Revolving Credit
Commitments. No obligation of any Guarantor hereunder shall be discharged other than by payment in
full of the Guaranteed Obligations.




     Section 2.7 Reliance. Each Guarantor hereby assumes responsibility for keeping itself
informed of the financial condition of each Borrower, each other Guarantor and any other guarantor,
maker or endorser of any Guaranteed Obligation or any part thereof, and of all other circumstances
bearing upon the risk of nonpayment of any Guaranteed Obligation or any part thereof that diligent
inquiry would reveal, and each Guarantor hereby agrees that no Secured Party shall have any duty to
advise any Guarantor of information known to it regarding such condition or any such circumstances.
In the event any Secured Party, in its sole discretion, undertakes at any time or from time to time
to provide any such information to any Guarantor, such Secured Party shall be under no obligation
to (a) undertake any investigation not a part of its regular business routine, (b) disclose any
information that such Secured Party, pursuant to accepted or reasonable commercial finance or
banking practices, wishes to maintain confidential or (c) make any future disclosures of such
information or any other information to any Guarantor.



ARTICLE III




GRANT OF SECURITY INTEREST



     Section 3.1 Collateral. For the purposes of this Agreement, all of the following
property now owned or at any time hereafter acquired by a Grantor or in which a Grantor now has or
at any time in the future may acquire any right, title or interests is collectively referred to as
the “Collateral”:



          (a) all accounts, chattel paper, deposit accounts, documents (as defined in the UCC),
equipment, general intangibles (including, but not limited to, all Pledged Stock constituting
general intangibles), instruments (including, but not limited to, all Pledged Debt Instruments),
inventory, investment property (including, but not limited to, all Pledged Stock constituting
investment property and all Pledged Investment Property), letter-of-credit rights and any
supporting obligations related thereto;




          (b) the commercial tort claims described on Schedule 1 and on any supplement thereto
received by the Administrative Agent pursuant to Section 5.9;








7









 








          (c) all books and records pertaining to the other property described in this
Section 3.1;




          (d) all property of such Grantor held by any Secured Party, including all property of every
description, in the custody of or in transit to such Secured Party for any purpose, including
safekeeping, collection or pledge, for the account of such Grantor or as to which such Grantor may
have any right or power, including but not limited to cash;




          (e) all other goods (including but not limited to fixtures);




          (f) to the extent not otherwise included, all proceeds of the foregoing; and




          (g) all other personal property of such Grantor, whether tangible or intangible and wherever
located;



provided, however, that the “Collateral” shall not include any Excluded Property;
and provided, further, that if and when any property shall cease to be Excluded
Property, such property shall thereupon automatically constitute Collateral without the necessity
of any further action.




          Section 3.2 Grant of Security Interest in Collateral. Each Grantor, as collateral
security for the prompt and complete payment and performance when due (whether at stated maturity,
by acceleration or otherwise) of the Obligations of such Grantor (the “Secured
Obligations”), hereby mortgages, pledges and hypothecates to the Administrative Agent for the
benefit of the Secured Parties, and grants to the Administrative Agent for the benefit of the
Secured Parties a Lien on and security interest in, all of its right, title and interest in, to and
under the Collateral of such Grantor.




ARTICLE IV




REPRESENTATIONS AND WARRANTIES



          To induce the Lenders, the L/C Issuers and the Administrative Agent to enter into the Loan
Documents, each Grantor hereby represents and warrants each of the following to the Administrative
Agent, the Lenders, the L/C Issuers and the other Secured Parties:




     Section 4.1 Title; No Other Liens. Except for the Lien granted to the Administrative
Agent pursuant to this Agreement for the benefit of the Secured Parties and other Permitted Liens,
such Grantor owns each item of the Collateral free and clear of any and all Liens or claims of
others. Such Grantor (a) is the record and beneficial owner of the Collateral pledged by it
hereunder constituting instruments or certificates and (b) has rights in or the power to transfer
each other item of Collateral in which a Lien is granted by it hereunder, free and clear of any
Lien other than the Lien granted to the Administrative Agent pursuant to this Agreement for the
benefit of the Secured Parties and other Permitted Liens.



     Section 4.2 Perfection and Priority. The security interest granted pursuant to this
Agreement constitutes a valid and continuing security interest in favor of the Administrative Agent
for the benefit of the Secured Parties in all Collateral described in clauses (a), (b), (c), (d),
(e) and (f) of Section 3.1. Upon (i) the completion of the filings and other actions
specified on Schedule 2 (which, in the case of all filings and other documents referred to
on such schedule, have been delivered to the Administrative Agent in completed and duly authorized
form), such



8









 




security interest will be perfected in all Collateral in which a security interest may be perfected
by filing a financing statement under the UCC, (ii) execution and delivery of the Control
Agreements, such security interest will be perfected in all deposit accounts covered by such
Control Agreements, (iii) all appropriate filings having been made with the United States Copyright
Office or the United States Patent and Trademark Office, as applicable, such security interest in
the Copyrights, Trademarks and Patents registered in the United States for which UCC filings are
insufficient will be perfected, (iv) the execution of a Contractual Obligation granting control to
the Administrative Agent over any letter-of-credit rights that are not supporting obligations of
Collateral, such security interest in such letter-of-credit rights will be perfected, and (v) the
completion of all steps necessary to grant control to the Administrative Agent over any electronic
chattel paper such security interest in such electronic chattel paper will be perfected. Upon
delivery to the Administrative Agent in the United States accompanied with stock powers or note
endorsements properly executed in blank, and so long as held in the United States by the
Administrative Agent, such security interest in the Pledged Certificated Stock, Pledged
Certificated Securities and Pledged Debt Instruments shall be prior to all other Liens on the
Pledged Certificated Stock, Pledged Certificated Securities and Pledged Debt Instruments except for
Permitted Liens having priority over the Administrative Agent’s Lien by operation of law. Upon
execution and delivery of Control Agreements with respect thereto, such security interest in the
Pledged Investment Property subject to such Control Agreements shall be perfected by control under
the UCC.




     Section 4.3 Jurisdiction of Organization; Chief Executive Office. Such Grantor’s
jurisdiction of organization, legal name and organizational identification number, if any, and the
location of such Grantor’s chief executive office or sole place of business, in each case as of the
Closing Date, is specified on Schedule 3 and, if different, such Schedule 3 also
lists all jurisdictions of incorporation, legal names and locations of such Grantor’s chief
executive office or sole place of business for the five years preceding the date hereof.



     Section 4.4 Locations of Inventory, Equipment and Books and Records. As of the Closing
Date, such Grantor’s inventory and equipment having an aggregate book value at any one location in
excess of $100,000 (other than inventory or equipment in transit) and books and records concerning
the Collateral are kept at the locations listed on Schedule 4 and, if different, such
Schedule 4 also lists the locations of such inventory, equipment and books and records for
the five years preceding the date hereof.



     Section 4.5 Pledged Collateral. (a) The Pledged Stock pledged by such Grantor
hereunder (i) as of the Closing Date is listed on Schedule 5 and constitutes that
percentage of the issued and outstanding equity of all classes of each issuer thereof as set forth
on Schedule 5, and (ii) has been duly authorized, validly issued and is fully paid and
nonassessable (other than Pledged Stock in limited liability companies and partnerships).



          (b) The Pledged Certificated Securities and Pledged Debt Instruments pledged by such Grantor
hereunder (i) as of the Closing Date are listed on Schedule 5, and (ii) to the knowledge of
such Grantor as of the Closing Date, constitute the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other similar
laws affecting creditors’ rights generally or by general equitable principles relating to
enforceability.




9









 





          (c) As of the Closing Date, all Pledged Collateral (other than Pledged Uncertificated Stock)
has been delivered to the Administrative Agent in accordance with Section 5.3(a).




          (d) Upon the occurrence and during the continuance of an Event of Default, subject to Section
6.3(a), the Administrative Agent shall be entitled to exercise all of the rights of the Grantor
granting the security interest in any Pledged Stock. A transferee or assignee of Pledged Stock
shall become a holder of such Pledged Stock to the same extent as such Grantor and be entitled to
participate in the management of the issuer of such Pledged Stock and, upon the transfer of the
entire interest of such Grantor, such Grantor shall, by operation of law, cease to be a holder of
such Pledged Stock.




     Section 4.6 Instruments and Tangible Chattel Paper Formerly Accounts. As of the
Closing Date, no amount payable to such Grantor under or in connection with any account is
evidenced by any instrument or tangible chattel paper that has not been delivered to the
Administrative Agent, properly endorsed for transfer, to the extent delivery is required by
Section 5.6(a).



     Section 4.7 Intellectual Property. As of the Closing Date, (a) Schedule 6 sets
forth a true and complete list of the following Intellectual Property such Grantor owns: (1)
Intellectual Property that is registered or subject to applications for registration, and (2) all
other Material Intellectual Property, in each case separately identifying that owned and licensed
to such Grantor and including for each of the foregoing items, if applicable, (1) the owner, (2)
the title, (3) the jurisdiction in which such item has been registered or otherwise arises or in
which an application for registration has been filed, and (4) as applicable, the registration or
application number and registration or application date.



          (b) On the Closing Date, all Material Intellectual Property owned by such Grantor is valid, in
full force and effect, subsisting, unexpired and enforceable, and no such Material Intellectual
Property has been abandoned by such Grantor. No breach or default of any material IP License shall
be caused by any of the following, and none of the following shall limit or impair the ownership,
use, validity or enforceability of, or any rights of such Grantor in, any Material Intellectual
Property: (i) the consummation of the transactions contemplated by any Loan Document or (ii) any
holding, decision, judgment or order rendered by any Governmental Authority. To such Grantor’s
knowledge, no Person has been or is infringing, misappropriating, diluting, violating or otherwise
impairing any Material Intellectual Property of such Grantor. Such Grantor, and to such Grantor’s
knowledge each other party thereto, is not in breach or default of any IP License, except as would
not be expected to have, individually or in the aggregate, a Material Adverse Effect.




     Section 4.8 Commercial Tort Claims. The only commercial tort claims of any Grantor
existing on the Closing Date and of which any Grantor has knowledge (but regardless of whether the
defendant or other material facts can be determined and regardless of whether such commercial tort
claim has been asserted, threatened or has otherwise been made known to the obligee thereof or
whether litigation has been commenced for such claims) in an individual amount exceeding $100,000
are those listed on Schedule 1, which sets forth such information separately for each
Grantor.



     Section 4.9 Specific Collateral. None of the Collateral is or is proceeds or products
of farm products, as-extracted collateral, health-care-insurance receivables or timber to be cut.



10









 





     Section 4.10 Enforcement. No Permit, notice to or filing with any Governmental
Authority or any other Person or any consent from any Person (other than any notice to Grantors
required by non-waivable provision of the UCC) is required for the exercise by the Administrative
Agent of its rights (including voting rights) provided for in this Agreement or the enforcement of
remedies in respect of the Collateral pursuant to this Agreement, including the transfer of any
Collateral, except (a) those obtained or made and delivered to the Administrative Agent on or prior
to the Closing Date, (b) as may be required in connection with the disposition of any portion of
the Pledged Collateral by laws affecting the offering and sale of securities generally or (c) any
approvals that may be required to be obtained from any bailees or landlords to collect the
Collateral.



     Section 4.11 Representations and Warranties of the Credit Agreement. The
representations and warranties as to such Grantor and its Subsidiaries made by the Borrowers in
Article IV (Representations and Warranties) of the Credit Agreement are true and
correct on each date as required by Section 3.2(b) of the Credit Agreement.



ARTICLE V




COVENANTS



          Each Grantor agrees with the Administrative Agent to the following, as long as any Obligation
or Commitment remains outstanding (other than any Contingent Loan Document Obligation) and, in each
case, unless the Required Lenders otherwise consent in writing:




     Section 5.1 Maintenance of Perfected Security Interest; Further Documentation and
Consents. (a) Such Grantor shall (i) not use or permit any Collateral to be used unlawfully or
in violation of any Requirement of Law or any policy of insurance covering the Collateral if such
use could reasonably be expected to materially impair the value of the Collateral or invalidate or
impair such policy of insurance with respect to a material portion of the Collateral and (ii) not
enter into any Contractual Obligation or undertaking restricting the right or ability of such
Grantor or the Administrative Agent to Sell any Collateral if such restriction would have a
Material Adverse Effect.



          (b) Such Grantor shall maintain the security interest created by this Agreement as a perfected
security interest having at least the priority described in Section 4.2 and shall defend
such security interest and such priority against the claims and demands of all Persons other than
Permitted Liens under any Loan Document (including Section 4.2).




          (c) Pursuant to Section 6.1(d) of the Credit Agreement, such Grantor shall furnish to
the Administrative Agent from time to time statements and schedules further identifying and
describing the Collateral and such other documents in connection with the Collateral as the
Administrative Agent may reasonably request, all in reasonable detail and in form and substance
reasonably satisfactory to the Administrative Agent.




          (d) At any time and from time to time, upon the written request of the Administrative Agent,
such Grantor shall, for the purpose of obtaining or preserving the full benefits of this Agreement
and of the rights and powers herein granted, (i) promptly and duly execute and deliver, and have
recorded, such further documents, including an authorization to file (or, as applicable, the
filing) any financing statement or amendment under the UCC (or other filings under similar
Requirements of Law) in effect in any jurisdiction with respect to the




11









 







security interest created hereby and (ii) take such further action as the Administrative Agent may
reasonably request, including executing and delivering any Control Agreements with respect to
deposit accounts and securities accounts to the extent required by Section 7.11 of the Credit
Agreement.




     Section 5.2 Changes in Locations, Name, Etc. Except upon 10 days’ prior written notice
to the Administrative Agent and delivery to the Administrative Agent of (a) all documents
reasonably requested by the Administrative Agent to maintain the validity, perfection and priority
of the security interests provided for herein and (b) if applicable, a written supplement to
Schedule 4 showing any additional locations at which inventory or equipment shall be kept,
such Grantor shall not do any of the following:




     (i) permit any material amount of inventory or equipment to be kept at a location other than
those listed on Schedule 4, except for inventory or equipment in transit;




     (ii) change its jurisdiction of organization or its location (within the meaning of the UCC),
in each case from that referred to in Section 4.3; or




     (iii) change its legal name or organizational identification number, if any, or corporation,
limited liability company, partnership or other organizational structure to such an extent that any
financing statement filed in connection with this Agreement would become misleading.



     Section 5.3 Pledged Collateral. (a) Delivery of Pledged Collateral. Such
Grantor shall (i) deliver to the Administrative Agent, in suitable form for transfer and in form
and substance reasonably satisfactory to the Administrative Agent, (A) all Pledged Certificated
Stock, (B) all Pledged Certificated Securities, and (C) all Pledged Debt Instruments and (ii)
maintain all other Pledged Investment Property in a Controlled Securities Account.



          (b) Event of Default. During the continuance of an Event of Default, the
Administrative Agent shall have the right, at any time in its discretion and without notice to the
Grantor, to (i) transfer to or to register in its name or in the name of its nominees any Pledged
Collateral or any Pledged Investment Property and (ii) exchange any certificate or instrument
representing or evidencing any Pledged Collateral or any Pledged Investment Property for
certificates or instruments of smaller or larger denominations.




          (c) Cash Distributions with respect to Pledged Collateral. Except as provided in
Article VI, such Grantor shall be entitled to receive all cash distributions paid in
respect of the Pledged Collateral.




          (d) Voting Rights. Except as provided in Article VI, such Grantor shall be
entitled to exercise all voting, consent and corporate, partnership, limited liability company and
similar rights with respect to the Pledged Collateral; provided, however, that no such vote
shall be cast, no such consent shall be given and no such right shall be exercised by such Grantor
if such vote, consent or right would impair the Administrative Agent’s Lien on the Collateral
(other than a release of the Administrative Agent’s Lien on any Collateral resulting from a
transaction permitted under the Loan Documents) or would result in any violation of any provision
of any Loan Document.




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     Section 5.4 Accounts. Such Grantor shall not, other than in the Ordinary Course of
Business, (i) grant any extension of the time of payment of any account, (ii) compromise or settle
any account for less than the full amount thereof, (iii) release, wholly or partially, any Person
liable for the payment of any account, (iv) allow any credit or discount on any account or (v)
amend, supplement or modify any account in any manner that could materially and adversely affect
the value thereof.



     Section 5.5 Commodity Contracts. Such Grantor shall not have any commodity contract
having a face or book value in excess of $100,000 individually or in the aggregate for all such
contracts, unless subject to a Control Agreement.



     Section 5.6 Delivery of Instruments and Tangible Chattel Paper and Control of Investment
Property, Letter-of-Credit Rights and Electronic Chattel Paper. (a) If any amount in excess of
$100,000 payable under or in connection with any Collateral owned by such Grantor shall be or
become evidenced by an instrument or tangible chattel paper other than such instrument delivered in
accordance with Section 5.3(a) and in the possession of the Administrative Agent, at the
request of the Administrative Agent, such Grantor shall mark all such instruments and tangible
chattel paper with the following legend: “This writing and the obligations evidenced or secured
hereby are subject to the security interest of General Electric Capital Corporation, as
Administrative Agent” and, at the request of the Administrative Agent, shall immediately deliver
such instrument or tangible chattel paper to the Administrative Agent, duly indorsed in a manner
reasonably satisfactory to the Administrative Agent.



          (b) Such Grantor shall not grant “control” (within the meaning of such term under Article
9-106 of the UCC) over any investment property that is Collateral to any Person other than the
Administrative Agent.




          (c) If such Grantor is or becomes the beneficiary of a letter of credit that is (i) not a
supporting obligation of any Collateral and (ii) in excess of $100,000, such Grantor shall
promptly, notify the Administrative Agent thereof and thereafter, if requested by the
Administrative Agent, use commercially reasonable efforts to enter into a Contractual Obligation
with the Administrative Agent, the issuer of such letter of credit or any nominated person with
respect to the letter-of-credit rights under such letter of credit with the following provisions:
(1) such Contractual Obligation shall assign such letter-of-credit rights to the Administrative
Agent (which assignment shall be sufficient to grant control for the purposes of Section 9-107 of
the UCC (or any similar section under any equivalent UCC)) and (2) such Contractual Obligation
shall provide that, if required by the Administrative Agent upon the occurrence and during the
continuance of an Event of Default, all payments made on such letter of credit shall be directed to
a Security Cash Collateral Account specified by the Administrative Agent subject to the withdrawal
rights of the Administrative Agent and other provisions of Section 6.4. The provisions of
the Contractual Obligation shall be in form and substance reasonably satisfactory to the
Administrative Agent.




          (d) If any amount in excess of $100,000 payable under or in connection with any Collateral
owned by such Grantor shall be or become evidenced by electronic chattel paper, notify the
Administrative Agent thereof and thereafter, at the request of the Administrative Agent, such
Grantor shall take all steps necessary to grant the Administrative Agent control of all such
electronic chattel paper for the purposes of Section 9-105 of the UCC (or any similar section under
any equivalent UCC) and all “transferable records” as defined in each of the Uniform Electronic
Transactions Act and the Electronic Signatures in Global and National Commerce Act.




13









 





     Section 5.7 Intellectual Property. (a) Following any change to Schedule 6 with respect
to any Intellectual Property owned by any Grantor, upon the request of the Administrative Agent,
such Grantor shall deliver short-form intellectual property agreements as described in this Section
5.7 and other documents that the Administrative Agent reasonably requests with respect thereto.



          (b) Such Grantor shall (i) (1) continue to use, itself or through a licensee, each Trademark
included in the Material Intellectual Property in order to maintain such Trademark in full force
and effect with respect to each class of goods for which such Trademark is currently used, free
from any claim of abandonment for non-use, (2) maintain at least the same standards of quality of
products and services offered under such Trademark as are currently maintained, (3) use such
Trademark with the appropriate notice of registration and all other notices and legends required by
applicable Requirements of Law, (4) not adopt or use any other Trademark that is confusingly
similar or a colorable imitation of such Trademark unless the Administrative Agent shall obtain a
perfected security interest in such other Trademark pursuant to this Agreement and (ii) not do any
act or omit to do any act whereby (w) such Trademark (or any goodwill associated therewith)
included in the Material Intellectual Property may become destroyed, invalidated, impaired or
harmed in any way, (x) any Patent included in the Material Intellectual Property may become
forfeited, misused, unenforceable, abandoned or dedicated to the public, (y) any portion of the
Copyrights included in the Material Intellectual Property may become invalidated, otherwise
impaired or fall into the public domain or (z) any Trade Secret that is Material Intellectual
Property may become publicly available or otherwise unprotectable.




          (c) Such Grantor shall notify the Administrative Agent promptly upon becoming aware that any
application or registration relating to any Material Intellectual Property may become forfeited,
misused, unenforceable, abandoned or dedicated to the public, or of any adverse determination or
development regarding the validity or enforceability or such Grantor’s ownership of, interest in,
right to use, register, own or maintain any Material Intellectual Property (including the
institution of, or any such determination or development in, any proceeding relating to the
foregoing in any Applicable IP Office). Such Grantor shall take all actions that it deems
reasonably necessary or that are reasonably requested by the Administrative Agent to maintain and
pursue each application (and to obtain the relevant registration or recordation) and to maintain
each registration and recordation included in the Material Intellectual Property.




          (d) Such Grantor shall not knowingly do any act or omit to do any act to infringe,
misappropriate, dilute, violate or otherwise materially impair the Intellectual Property of any
other Person. In the event that any Material Intellectual Property of such Grantor is or has been
infringed, misappropriated, violated, diluted or otherwise impaired by a third party, such Grantor
shall take such action as it reasonably deems appropriate under the circumstances in response
thereto, including, if it reasonably deems appropriate, promptly bringing suit and recovering all
damages therefor.




          (e) Such Grantor shall execute and deliver to the Administrative Agent in form and substance
reasonably acceptable to the Administrative Agent and suitable for filing in the Applicable IP
Office the short-form intellectual property security agreements in the form attached hereto as
Annex 3 for all registered and applied for Copyrights, Trademarks, Patents and exclusive IP
Licenses of such Grantor (provided that filings with an Applicable IP Office outside the United
States shall only be required to the extent requested by the Administrative Agent in accordance
with Section 7.10 of the Credit Agreement).




14









 





     Section 5.8 Notices. Such Grantor shall promptly notify the Administrative Agent in
writing of its acquisition of any interest hereafter in property (other than Intellectual Property)
having a face or book value in excess of $500,000 individually or in the aggregate for all such
property that is of a type where a security interest or lien must be registered, recorded or filed
under, or notice thereof given under, any federal statute or regulation.



     Section 5.9 Notice of Commercial Tort Claims. Such Grantor agrees that, if it shall
acquire any interest in any commercial tort claim that is Collateral (whether from another Person
or because such commercial tort claim shall have come into existence), which could reasonably be
expected to exceed $100,000 (i) such Grantor shall, promptly after such acquisition, deliver to the
Administrative Agent, in each case in form and substance reasonably satisfactory to the
Administrative Agent, a notice of the existence and nature of such commercial tort claim and a
supplement to Schedule 1 containing a specific description of such commercial tort claim,
(ii) Section 3.1 shall apply to such commercial tort claim and (iii) such Grantor shall
execute and deliver to the Administrative Agent, in each case in form and substance reasonably
satisfactory to the Administrative Agent, any document, and take all other action, deemed by the
Administrative Agent to be reasonably necessary or appropriate for the Administrative Agent to
obtain, on behalf of the Lenders, a perfected security interest having at least the priority set
forth in Section 4.2 in all such commercial tort claims. Any supplement to Schedule
1 delivered pursuant to this Section 5.9 shall, after the receipt thereof by the
Administrative Agent, become part of Schedule 1 for all purposes hereunder other than in
respect of representations and warranties made prior to the date of such receipt.



     Section 5.10 Compliance with Credit Agreement. Such Grantor agrees to comply with all
covenants and other provisions applicable to it under the Credit Agreement, including Sections
2.17 (Taxes), 11.3 (Costs and Expenses) and 11.4 (Indemnities)
of the Credit Agreement and agrees to the same submission to jurisdiction as that agreed to by the
Borrowers in the Credit Agreement.



     Section 5.11 Holdings. Holdings shall keep a register of charges as required by
Section 162 of the BVI Business Companies Act, 2004 (the “BVIBC Act”) and, within one Business Day
following the Closing Date, shall enter details of the charge created under this Agreement in the
Register of Charges of Holdings as maintained at its registered office or at the office of its
registered agent. Pursuant to Section 163 of the BVIBC Act, within one Business Day following the
Closing Date, Holdings shall make an application with the British Virgin Islands Registrar of
Corporate Affairs of the British Virgin Islands (the “BVI Registrar”) to register details of the
charge created under this Agreement in the Register of Registered Charges for Holdings as
maintained at the BVI Registrar. Promptly and in any event within fifteen Business Days following
the Closing Date, Holdings shall deliver to Administrative Agent evidence, in form and substance
satisfactory to Administrative Agent, of Holdings’ compliance with this Section 5.11.



ARTICLE VI




REMEDIAL PROVISIONS



     Section 6.1 Code and Other Remedies. (a) UCC Remedies. During the continuance
of an Event of Default, the Administrative Agent may exercise, in addition to all other rights and
remedies granted to it in this Agreement and in any other instrument or agreement securing,



15









 




evidencing or relating to any Secured Obligation, all rights and remedies of a secured party under
the UCC or any other applicable law.




          (b) Disposition of Collateral. Without limiting the generality of the foregoing, the
Administrative Agent may, without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law referred to below) to or
upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and
notices are hereby waived), during the continuance of any Event of Default (personally or through
its agents or attorneys), (i) enter upon the premises where any Collateral is located, without any
obligation to pay rent, through self-help, without judicial process, without first obtaining a
final judgment or giving any Grantor or any other Person notice or opportunity for a hearing on the
Administrative Agent’s claim or action, (ii) collect, receive, appropriate and realize upon any
Collateral and (iii) Sell, grant option or options to purchase and deliver any Collateral (enter
into Contractual Obligations to do any of the foregoing), in one or more parcels at public or
private sale or sales, at any exchange, broker’s board or office of any Secured Party or elsewhere
upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk. The Administrative
Agent shall have the right, upon any such public sale or sales and, to the extent permitted by the
UCC and other applicable Requirements of Law, upon any such private sale, to purchase the whole or
any part of the Collateral so sold, free of any right or equity of redemption of any Grantor, which
right or equity is hereby waived and released.




          (c) Management of the Collateral. Each Grantor further agrees, that, during the
continuance of any Event of Default, (i) at the Administrative Agent’s request, it shall assemble
the Collateral and make it available to the Administrative Agent at places that the Administrative
Agent shall reasonably select, whether at such Grantor’s premises or elsewhere, (ii) without
limiting the foregoing, the Administrative Agent also has the right to require that each Grantor
store and keep any Collateral pending further action by the Administrative Agent and, while any
such Collateral is so stored or kept, provide such guards and maintenance services as shall be
necessary to protect the same and to preserve and maintain such Collateral in good condition, (iii)
until the Administrative Agent is able to Sell any Collateral, the Administrative Agent shall have
the right to hold or use such Collateral to the extent that it deems appropriate for the purpose of
preserving the Collateral or its value or for any other purpose deemed appropriate by the
Administrative Agent and (iv) the Administrative Agent may, if it so elects, seek the appointment
of a receiver or keeper to take possession of any Collateral and to enforce any of the
Administrative Agent’s remedies (for the benefit of the Secured Parties), with respect to such
appointment without prior notice or hearing as to such appointment. The Administrative Agent shall
not have any obligation to any Grantor to maintain or preserve the rights of any Grantor as against
third parties with respect to any Collateral while such Collateral is in the possession of the
Administrative Agent.




          (d) Application of Proceeds. The Administrative Agent shall apply the cash proceeds of
any action taken by it pursuant to this Section 6.1, after deducting all reasonable costs
and expenses of every kind incurred in connection therewith or incidental to the care or
safekeeping of any Collateral or in any way relating to the Collateral or the rights of the
Administrative Agent and any other Secured Party hereunder, including reasonable attorneys’ fees
and disbursements, to the payment in whole or in part of the Secured Obligations, as set forth in
the Credit Agreement, and only after such application and after the payment by the






16









 







Administrative Agent of any other amount required by any Requirement of Law, need the
Administrative Agent account for the surplus, if any, to any Grantor.




          (e) Direct Obligation. Neither the Administrative Agent nor any other Secured Party
shall be required to make any demand upon, or pursue or exhaust any right or remedy against, any
Grantor, any other Loan Party or any other Person with respect to the payment of the Obligations or
to pursue or exhaust any right or remedy with respect to any Collateral therefor or any direct or
indirect guaranty thereof. All of the rights and remedies of the Administrative Agent and any other
Secured Party under any Loan Document shall be cumulative, may be exercised individually or
concurrently and not exclusive of any other rights or remedies provided by any Requirement of Law.
To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and
relinquishes the benefit and advantage of, and covenants not to assert against the Administrative
Agent or any Lender, any valuation, stay, appraisement, extension, redemption or similar laws and
any and all rights or defenses it may have as a surety, now or hereafter existing, arising out of
the exercise by them of any rights hereunder. If any notice of a proposed sale or other disposition
of any Collateral shall be required by law, such notice shall be deemed reasonable and proper if
given at least 10 days before such sale or other disposition.




          (f) Commercially Reasonable. To the extent that applicable Requirements of Law impose
duties on the Administrative Agent to exercise remedies in a commercially reasonable manner, each
Grantor acknowledges and agrees that it is not commercially unreasonable for the Administrative
Agent to do any of the following:





     (i) fail to incur significant costs, expenses or other Liabilities reasonably deemed as such
by the Administrative Agent to prepare any Collateral for disposition or otherwise to complete raw
material or work in process into finished goods or other finished products for disposition;




     (ii) fail to obtain Permits, or other consents, for access to any Collateral to Sell or for
the collection or Sale of any Collateral, or, if not required by other Requirements of Law, fail to
obtain Permits or other consents for the collection or disposition of any Collateral;




     (iii) fail to exercise remedies against account debtors or other Persons obligated on any
Collateral or to remove Liens on any Collateral or to remove any adverse claims against any
Collateral;




     (iv) advertise dispositions of any Collateral through publications or media of general
circulation, whether or not such Collateral is of a specialized nature or to contact other Persons,
whether or not in the same business as any Grantor, for expressions of interest in acquiring any
such Collateral;




     (v) exercise collection remedies against account debtors and other Persons obligated on any
Collateral, directly or through the use of collection agencies or other collection specialists,
hire one or more professional auctioneers to assist in the disposition of any Collateral, whether
or not such Collateral is of a specialized nature or, to the extent deemed appropriate by the
Administrative Agent, obtain the services of other brokers, investment bankers, consultants and
other professionals to assist the Administrative Agent in the collection or disposition of any
Collateral, or utilize Internet sites that



17









 







provide for the auction of assets of the types included in the Collateral or that have the
reasonable capacity of doing so, or that match buyers and sellers of assets to dispose of any
Collateral;




     (vi) dispose of assets in wholesale rather than retail markets;




     (vii) disclaim disposition warranties, such as title, possession or quiet enjoyment; or




     (viii) purchase insurance or credit enhancements to insure the Administrative Agent against
risks of loss, collection or disposition of any Collateral or to provide to the Administrative
Agent a guaranteed return from the collection or disposition of any Collateral.


Each Grantor acknowledges that the purpose of this Section 6.1 is to provide a
non-exhaustive list of actions or omissions that are commercially reasonable when exercising
remedies against any Collateral and that other actions or omissions by the Secured Parties shall
not be deemed commercially unreasonable solely on account of not being indicated in this
Section 6.1. Without limitation upon the foregoing, nothing contained in this Section
6.1 shall be construed to grant any rights to any Grantor or to impose any duties on the
Administrative Agent that would not have been granted or imposed by this Agreement or by applicable
Requirements of Law in the absence of this Section 6.1.




          (g) IP Licenses. For the purpose of enabling the Administrative Agent to exercise
rights and remedies under this Section 6.1 (including in order to take possession of,
collect, receive, assemble, process, appropriate, remove, realize upon, Sell or grant options to
purchase any Collateral) at such time as the Administrative Agent shall be lawfully entitled to
exercise such rights and remedies, each Grantor hereby grants to the Administrative Agent, for the
benefit of the Secured Parties, subject to Section 8.2, (i) an irrevocable, nonexclusive, worldwide
license (exercisable without payment of royalty or other compensation to such Grantor), including
in such license the right to sublicense, use and practice any Intellectual Property now owned or
hereafter acquired by such Grantor and access to all media in which any of the licensed items may
be recorded or stored and to all Software and programs used for the compilation or printout
thereof; provided, however, that nothing in this Section 6.1(g) shall require any Grantor to grant
any license that is prohibited by any rule of law, statute or regulation or is prohibited by, or
constitutes a breach or default under or results in the termination of or gives rise to any right
of acceleration, modification or cancellation under any contract, license, agreement, instrument or
other document evidencing, giving rise to a right to use or theretofore granted with respect to
such property and (ii) an irrevocable license (without payment of rent or other compensation to
such Grantor) to use, operate and occupy all Real Property owned, operated, leased, subleased or
otherwise occupied by such Grantor.




     Section 6.2 Accounts and Payments in Respect of General Intangibles. (a) In addition
to, and not in substitution for, any similar requirement in the Credit Agreement, if required by
the Administrative Agent at any time during the continuance of an Event of Default, any payment of
accounts or payment in respect of general intangibles, when collected by any Grantor, shall be
promptly (and, in any event, within 2 Business Days) deposited by such Grantor in the exact form
received, duly indorsed by such Grantor to the Administrative Agent, in a Security Cash Collateral
Account specified by the Administrative Agent, to be held in such account during the continuance of
an Event of Default, subject to withdrawal by the








18









 







Administrative Agent as provided in Section 6.4. Until so turned over, such payment shall
be held by such Grantor in trust for the Administrative Agent, segregated from other funds of such
Grantor. Each such deposit of proceeds of accounts and payments in respect of general intangibles
shall be accompanied by a report identifying in reasonable detail the nature and source of the
payments included in the deposit.




          (b) At any time during the continuance of an Event of Default:





     (i) each Grantor shall, upon the Administrative Agent’s request, deliver to the Administrative
Agent all original and other documents evidencing, and relating to, the Contractual Obligations and
transactions that gave rise to any account or any payment in respect of general intangibles,
including all original orders, invoices and shipping receipts and notify account debtors that the
accounts or general intangibles have been collaterally assigned to the Administrative Agent and
that payments in respect thereof shall be made directly to the Administrative Agent;




     (ii) the Administrative Agent may, without notice, at any time during the continuance of an
Event of Default, limit or terminate the authority of a Grantor to collect its accounts or amounts
due under general intangibles or any thereof and, in its own name or in the name of others,
communicate with account debtors to verify with them to the Administrative Agent’s satisfaction the
existence, amount and terms of any account or amounts due under any general intangible. In
addition, the Administrative Agent may at any time enforce such Grantor’s rights against such
account debtors and obligors of general intangibles; and




     (iii) each Grantor shall take all actions, deliver all documents and provide all information
necessary or reasonably requested by the Administrative Agent to ensure any Internet Domain Name is
registered.



          (c) Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each account and each payment in respect of general intangibles to observe
and perform all the conditions and obligations to be observed and performed by it thereunder, all
in accordance with the terms of any agreement giving rise thereto. No Secured Party shall have
any obligation or liability under any agreement giving rise to an account or a payment in respect
of a general intangible by reason of or arising out of any Loan Document or the receipt by any
Secured Party of any payment relating thereto, nor shall any Secured Party be obligated in any
manner to perform any obligation of any Grantor under or pursuant to any agreement giving rise
to an account or a payment in respect of a general intangible, to make any payment, to make any
inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of
any performance by any party thereunder, to present or file any claim, to take any action to
enforce any performance or to collect the payment of any amounts that may have been assigned
to it or to which it may be entitled at any time or times.




     Section 6.3 Pledged Collateral. (a) Voting Rights. During the continuance of
an Event of Default, upon notice by the Administrative Agent to the relevant Grantor or Grantors,
the Administrative Agent or its nominee may exercise (A) any voting, consent, corporate and other
right pertaining to the Pledged Collateral at any meeting of shareholders, partners or members, as
the case may be, of the relevant issuer or issuers of Pledged Collateral or otherwise and (B) any
right of conversion, exchange and subscription and any other right, privilege or option pertaining
to the Pledged Collateral as if it were the absolute owner thereof








19









 







(including the right to exchange at its discretion any Pledged Collateral upon the merger,
amalgamation, consolidation, reorganization, recapitalization or other fundamental change in the
corporate or equivalent structure of any issuer of Pledged Stock, the right to deposit and deliver
any Pledged Collateral with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Administrative Agent may determine), all
without liability except to account for property actually received by it; provided,
however, that the Administrative Agent shall have no duty to any Grantor to exercise any
such right, privilege or option and shall not be responsible for any failure to do so or delay in
so doing.




          (b) Proxies. In order to permit the Administrative Agent to exercise the voting and
other consensual rights that it may be entitled to exercise pursuant hereto and to receive all
dividends and other distributions that it may be entitled to receive hereunder, during the
continuance of an Event of Default, (i) each Grantor shall promptly execute and deliver (or cause
to be executed and delivered) to the Administrative Agent all such proxies, dividend payment orders
and other instruments as the Administrative Agent may from time to time reasonably request and (ii)
without limiting the effect of clause (i) above, such Grantor hereby grants to the
Administrative Agent, subject to Section 8.2, an irrevocable proxy to vote all or any part of the
Pledged Collateral and to exercise all other rights, powers, privileges and remedies to which a
holder of the Pledged Collateral would be entitled (including giving or withholding written
consents of shareholders, partners or members, as the case may be, calling special meetings of
shareholders, partners or members, as the case may be, and voting at such meetings), which proxy
shall be effective, automatically and without the necessity of any action (including any transfer
of any Pledged Collateral on the record books of the issuer thereof) by any other person (including
the issuer of such Pledged Collateral or any officer or agent thereof) during the continuance of an
Event of Default and which proxy shall only terminate upon the payment in full of the Secured
Obligations (other than any Contingent Loan Document Obligations).




          (c) Authorization of Issuers. Each Grantor hereby expressly irrevocably authorizes and
instructs, without any further instructions from such Grantor, each issuer of any Pledged
Collateral pledged hereunder by such Grantor to (i) comply with any instruction received by it from
the Administrative Agent in writing that states that an Event of Default is continuing, and each
Grantor agrees that such issuer shall be fully protected from Liabilities to such Grantor in so
complying, and (ii) if so directed by the Administrative Agent in writing that states that an Event
of Default is continuing, pay any dividend or make any other payment with respect to the Pledged
Collateral directly to the Administrative Agent. The Administrative Agent agrees not to give any
such instruction referenced in clauses (i) and (ii) of the immediately preceding sentence unless an
Event of Default shall be continuing.




     Section 6.4 Proceeds to be Turned over to and Held by Administrative Agent. Upon the
occurrence and during the continuance of an Event of Default, all proceeds of any Collateral
received by any Grantor hereunder in cash or Cash Equivalents shall be held by such Grantor in
trust for the Administrative Agent and the other Secured Parties, segregated from other funds of
such Grantor, and shall, promptly upon receipt by any Grantor, be turned over to the Administrative
Agent in the exact form received (with any necessary endorsement). All such proceeds of Collateral
and any other proceeds of any Collateral received by the Administrative Agent in cash or Cash
Equivalents shall be held by the Administrative Agent in a Security Cash Collateral Account
specified by the Administrative Agent during the continuance of an Event of Default. All proceeds
being held by the Administrative Agent in a Security Cash Collateral Account (or by such Grantor in
trust for the Administrative Agent) shall continue to be held as



20









 




collateral security for the Secured Obligations and shall not constitute payment thereof until
applied as provided in the Credit Agreement. At any time that no Event of Default shall be
continuing, Holdings or the Borrower Representative may request that, and promptly upon receipt of
such notice, the Administrative Agent shall direct that, the proceeds being held in any Security
Cash Collateral Account (or by such Grantor in trust for the Administrative Agent) be redirected
into, as applicable, a Controlled Deposit Account or Controlled Securities Account in accordance
with and to the extent required by Section 7.11 of the Credit Agreement.




     Section 6.5 Private Sales of Collateral. (a) Each Grantor recognizes that the
Administrative Agent may be unable to effect a public sale of any Pledged Collateral by reason of
certain prohibitions contained in the Securities Act and applicable state or foreign securities
laws or otherwise or may determine that a public sale is impracticable, not desirable or not
commercially reasonable and, accordingly, may resort to one or more private sales thereof to a
restricted group of purchasers that shall be obliged to agree, among other things, to acquire such
securities for their own account for investment and not with a view to the distribution or resale
thereof. Each Grantor acknowledges and agrees that any such private sale may result in prices and
other terms less favorable than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been made in a
commercially reasonable manner. The Administrative Agent shall be under no obligation to delay a
sale of any Pledged Collateral for the period of time necessary to permit the issuer thereof to
register such securities for public sale under the Securities Act or under applicable state
securities laws even if such issuer would agree to do so.



          (b) Each Grantor agrees to use its commercially reasonable best efforts to do or cause to be
done all such other acts as may be necessary to make such sale or sales of any portion of the
Pledged Collateral pursuant to this Section 6.5 valid and binding and in compliance with
all applicable Requirements of Law. Each Grantor further agrees that a breach of any covenant
contained in this Section 6.5 will cause irreparable injury to the Administrative Agent and
other Secured Parties, that the Administrative Agent and the other Secured Parties have no adequate
remedy at law in respect of such breach and, as a consequence, that each and every covenant
contained in this Section 6.5 shall be specifically enforceable against such Grantor, and
such Grantor hereby waives and agrees not to assert any defense against an action for specific
performance of such covenants except for a defense that no Event of Default has occurred under the
Credit Agreement.




     Section 6.6 Deficiency. Each Grantor shall remain liable for any deficiency if the
proceeds of any sale or other disposition of any Collateral are insufficient to pay the Secured
Obligations and the reasonable and documented fees and disbursements of any attorney employed by
the Administrative Agent to collect such deficiency.



ARTICLE VII




THE ADMINISTRATIVE AGENT



     Section 7.1 Administrative Agent’s Appointment as Attorney-in-Fact. (a) Each Grantor
hereby irrevocably constitutes and appoints the Administrative Agent and any Related Person
thereof, with full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor and in the name of such
Grantor or in its own name, for the purpose of carrying out the terms of the Loan Documents, to
take any appropriate action and to execute any document or instrument that may be necessary or



21









 




desirable to accomplish the purposes of the Loan Documents, and, without limiting the generality of
the foregoing, each Grantor hereby gives the Administrative Agent and its Related Persons the power
and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any of the
following when an Event of Default shall be continuing:





     (i) in the name of such Grantor, in its own name or otherwise, take possession of and indorse
and collect any check, draft, note, acceptance or other instrument for the payment of moneys due
under any account or general intangible or with respect to any other Collateral and file any claim
or take any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Administrative Agent for the purpose of collecting any such moneys due under any
account or general intangible or with respect to any other Collateral whenever payable;




     (ii) in the case of any Intellectual Property owned by or licensed to the Grantors, execute,
deliver and have recorded any document that the Administrative Agent may request to evidence,
effect, publicize or record the Administrative Agent’s security interest in such Intellectual
Property and the goodwill and general intangibles of such Grantor relating thereto or represented
thereby;




     (iii) pay or discharge taxes and Liens levied or placed on or threatened against any
Collateral, effect any repair or pay any insurance called for by the terms of the Credit Agreement
(including all or any part of the premiums therefor and the costs thereof);




     (iv) execute, in connection with any sale provided for in Section 6.1 or Section
6.5, any document to effect or otherwise necessary or appropriate in relation to evidence the
Sale of any Collateral; or




     (v) (A) direct any party liable for any payment under any Collateral to make payment of any
moneys due or to become due thereunder directly to the Administrative Agent or as the
Administrative Agent shall direct, (B) ask or demand for, and collect and receive payment of and
receipt for, any moneys, claims and other amounts due or to become due at any time in respect of or
arising out of any Collateral, (C) sign and indorse any invoice, freight or express bill, bill of
lading, storage or warehouse receipt, draft against debtors, assignment, verification, notice and
other document in connection with any Collateral, (D) commence and prosecute any suit, action or
proceeding at law or in equity in any court of competent jurisdiction to collect any Collateral and
to enforce any other right in respect of any Collateral, (E) defend any actions, suits,
proceedings, audits, claims, demands, orders or disputes brought against such Grantor with respect
to any Collateral, (F) settle, compromise or adjust any such actions, suits, proceedings, audits,
claims, demands, orders or disputes and, in connection therewith, give such discharges or releases
as the Administrative Agent may deem appropriate, (G) assign any Intellectual Property owned by the
Grantors or any IP Licenses of the Grantors throughout the world on such terms and conditions and
in such manner as the Administrative Agent shall in its sole discretion determine, including the
execution and filing of any document necessary to effectuate or record such assignment and (H)
generally, Sell, grant a Lien on, make any Contractual Obligation with respect to and otherwise
deal with, any Collateral as fully and completely as though the Administrative Agent were the
absolute owner thereof for all purposes and do, at the Administrative Agent’s option, at any time
or from time to time, all acts and things that the Administrative Agent deems necessary to protect,



22









 







preserve or realize upon any Collateral and the Secured Parties’ security interests therein and to
effect the intent of the Loan Documents, all as fully and effectively as such Grantor might do.



          (b) If any Grantor fails to perform or comply with any Contractual Obligation contained
herein, the Administrative Agent, at its option, but without any obligation so to do, may perform
or comply, or otherwise cause performance or compliance, with such Contractual Obligation.




          (c) The expenses of the Administrative Agent incurred in connection with actions undertaken as
provided in this Section 7.1, together with interest thereon at a rate set forth in
Section 2.9 (Interest) of the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by the relevant Grantor, shall be payable by such
Grantor to the Administrative Agent on demand.




          (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue of this Section 7.1. All powers, authorizations and agencies contained in this
Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and
the security interests created hereby are released.




     Section 7.2 Authorization to File Financing Statements. Each Grantor authorizes the
Administrative Agent and its Related Persons, at any time and from time to time, to file or record
financing statements, amendments thereto, and other filing or recording documents or instruments
with respect to any Collateral in such form and in such offices as the Administrative Agent
reasonably determines appropriate to perfect the security interests of the Administrative Agent
under this Agreement, and such financing statements and amendments may described the Collateral
covered thereby as “all assets of the debtor”. A photographic or other reproduction of this
Agreement shall be sufficient as a financing statement or other filing or recording document or
instrument for filing or recording in any jurisdiction. Such Grantor also hereby ratifies its
authorization for the Administrative Agent to have filed any initial financing statement or
amendment thereto under the UCC (or other similar laws) in effect in any jurisdiction if filed
prior to the date hereof.



     Section 7.3 Authority of Administrative Agent. Each Grantor acknowledges that the
rights and responsibilities of the Administrative Agent under this Agreement with respect to any
action taken by the Administrative Agent or the exercise or non-exercise by the Administrative
Agent of any option, voting right, request, judgment or other right or remedy provided for herein
or resulting or arising out of this Agreement shall, as between the Administrative Agent and the
other Secured Parties, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the Administrative Agent
and the Grantors, the Administrative Agent shall be conclusively presumed to be acting as agent for
the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor
shall be under any obligation or entitlement to make any inquiry respecting such authority.



     Section 7.4 Duty; Obligations and Liabilities. (a) Duty of Administrative
Agent. The Administrative Agent’s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession shall be to deal with it in the same
manner as the Administrative Agent deals with similar property for its own account. The powers
conferred on the Administrative Agent hereunder are solely to protect the Administrative Agent’s
interest in



23









 




the Collateral and shall not impose any duty upon the Administrative Agent to exercise any such
powers. The Administrative Agent shall be accountable only for amounts that it receives as a result
of the exercise of such powers, and neither it nor any of its Related Persons shall be responsible
to any Grantor for any act or failure to act hereunder, except for their own gross negligence or
willful misconduct as finally determined by a court of competent jurisdiction. In addition, the
Administrative Agent shall not be liable or responsible for any loss or damage to any Collateral,
or for any diminution in the value thereof, by reason of the act or omission of any warehousemen,
carrier, forwarding agency, consignee or other bailee if such Person has been selected by the
Administrative Agent in good faith.




          (b) Obligations and Liabilities with respect to Collateral. No Secured Party and no
Related Person thereof shall be liable for failure to demand, collect or realize upon any
Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of any Grantor or any other Person or to take any other
action whatsoever with regard to any Collateral. The powers conferred on the Administrative Agent
hereunder shall not impose any duty upon any other Secured Party to exercise any such powers. The
other Secured Parties shall be accountable only for amounts that they actually receive as a result
of the exercise of such powers, and neither they nor any of their respective officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure to act hereunder,
except for their own gross negligence or willful misconduct as finally determined by a court of
competent jurisdiction.




ARTICLE VIII




MISCELLANEOUS



     Section 8.1 Reinstatement. Each Grantor agrees that, if any payment made by any Loan
Party or other Person and applied to the Secured Obligations is at any time annulled, avoided, set
aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to
be refunded or repaid, or the proceeds of any Collateral are required to be returned by any Secured
Party to such Loan Party, its estate, trustee, receiver or any other party, including any Grantor,
under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent
of such payment or repayment, any Lien or other Collateral securing such liability shall be and
remain in full force and effect, as fully as if such payment had never been made. If, prior to any
of the foregoing, (a) any Lien or other Collateral securing such Grantor’s liability hereunder
shall have been released or terminated by virtue of the foregoing or (b) any provision of the
Guaranty hereunder shall have been terminated, cancelled or surrendered, such Lien, other
Collateral or provision shall be reinstated in full force and effect and such prior release,
termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise
affect the obligations of any such Grantor in respect of any Lien or other Collateral securing such
obligation or the amount of such payment.



     Section 8.2 Release of Collateral. (a) At the time provided in clause (b)(iii)
of Section 10.10 (Release of Collateral or Guarantors) of the Credit Agreement, the
Collateral shall be released from the Lien created hereby and this Agreement and all obligations
(other than those expressly stated to survive such termination) of the Administrative Agent and
each Grantor hereunder shall terminate, all without delivery of any instrument or performance of
any act by any party, and all rights to the Collateral shall revert to the Grantors. Each Grantor
is hereby authorized to file UCC amendments at such time evidencing the termination of the Liens so
released. At the request of any Grantor following any such termination, the Administrative Agent



24









 




shall deliver to such Grantor any Collateral of such Grantor held by the Administrative Agent
hereunder and execute and deliver to such Grantor such documents as such Grantor shall reasonably
request to evidence such termination.




          (b) If the Administrative Agent shall be directed or permitted pursuant to clause (i)
or (ii) of Section 10.10(b) of the Credit Agreement to release any Lien or any Collateral,
such Collateral shall be released from the Lien created hereby to the extent provided under, and
subject to the terms and conditions set forth in, such clauses (i) and (ii). In connection
therewith, the Administrative Agent, at the request of any Grantor, shall execute and deliver to
such Grantor such documents as such Grantor shall reasonably request to evidence such release.




          (c) At the time provided in Section 10.10(a) of the Credit Agreement and at the
request of the Borrower Representative, a Grantor shall be released from its obligations hereunder
in the event that all the Securities of such Grantor shall be Sold to any Person that is not a
Group Member in a transaction permitted by the Loan Documents.




     Section 8.3 Independent Obligations. The obligations of each Grantor hereunder are
independent of and separate from the Secured Obligations and the Guaranteed Obligations. If any
Secured Obligation or Guaranteed Obligation is not paid when due, or upon any Event of Default, the
Administrative Agent may, at its sole election, proceed directly and at once, without notice,
against any Grantor and any Collateral to collect and recover the full amount of any Secured
Obligation or Guaranteed Obligation then due, without first proceeding against any other Grantor,
any other Loan Party or any other Collateral and without first joining any other Grantor or any
other Loan Party in any proceeding.



     Section 8.4 No Waiver by Course of Conduct. No Secured Party shall by any act (except
by a written instrument pursuant to Section 8.5), delay, indulgence, omission or otherwise
be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or
Event of Default. No failure to exercise, nor any delay in exercising, on the part of any Secured
Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. A waiver by any Secured
Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy that such Secured Party would otherwise have on any future occasion.



     Section 8.5 Amendments in Writing. None of the terms or provisions of this Agreement
may be waived, amended, supplemented or otherwise modified except in accordance with Section
11.1 of the Credit Agreement; provided, however, that annexes to this Agreement
may be supplemented (but no existing provisions may be modified and no Collateral may be released)
through Pledge Amendments and Joinder Agreements, in substantially the form of Annex 1 and
Annex 2, respectively, in each case duly executed by the Administrative Agent and each
Grantor directly affected thereby.



     Section 8.6 Additional Grantors; Additional Pledged Collateral. (a) Joinder
Agreements. If, at the option of the Borrower Representative or as required pursuant to
Section 7.10 of the Credit Agreement, any Borrower shall cause any Subsidiary that is not a
Grantor to become a Grantor hereunder, such Subsidiary shall execute and deliver to the
Administrative Agent a Joinder Agreement substantially in the form of Annex 2 and shall
thereafter for all purposes be a party hereto and have the same rights, benefits and obligations as
a Grantor party hereto on the Closing Date.



25









 





          (b) Pledge Amendments. To the extent any Pledged Collateral has not been delivered as
of the Closing Date, such Grantor shall deliver a pledge amendment duly executed by the Grantor in
substantially the form of Annex 1 (each, a “Pledge Amendment”). Such Grantor
authorizes the Administrative Agent to attach each Pledge Amendment to this Agreement.




     Section 8.7 Notices. All notices, requests and demands to or upon the Administrative
Agent or any Grantor hereunder shall be effected in the manner provided for in Section
11.11 of the Credit Agreement; provided, however, that any such notice, request or
demand to or upon any Grantor shall be addressed to the Borrower Representative’s notice address
set forth in such Section 11.11.



     Section 8.8 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of each Secured Party and
their successors and assigns; provided, however, that no Grantor may assign,
transfer or delegate any of its rights or obligations under this Agreement without the prior
written consent of the Administrative Agent.



     Section 8.9 Counterparts. This Agreement may be executed in any number of counterparts
and by different parties in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple separate counterparts and attached to a single
counterpart. Delivery of an executed signature page of this Agreement by facsimile transmission or
by Electronic Transmission shall be as effective as delivery of a manually executed counterpart
hereof.



     Section 8.10 Severability. Any provision of this Agreement being held illegal, invalid
or unenforceable in any jurisdiction shall not affect any part of such provision not held illegal,
invalid or unenforceable, any other provision of this Agreement or any part of such provision in
any other jurisdiction.



     Section 8.11 Governing Law. This Agreement and the rights and obligations of the
parties hereto shall be governed by, and construed and interpreted in accordance with, the law of
the State of New York.



     Section 8.12 WAIVER OF JURY TRIAL. EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO, OR
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH, ANY LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED THEREIN OR RELATED THERETO (WHETHER FOUNDED IN CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO OTHER
PARTY AND NO RELATED PERSON 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 THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 8.12.



[SIGNATURE PAGES FOLLOW]




26









 





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




	 	 	 	 	 
	 	CBAY INC.,

     as Grantor

 	 
	 	By:  	/s/ Clyde Swoger
 	 
	 	 	Name:  	Clyde Swoger 	 
	 	 	Title:  	CFO 	 
	 
	 	MEDQUIST INC.

     as Grantor

 	 
	 	By:  	/s/ Mark R. Sullivan
 	 
	 	 	Name:  	Mark R. Sullivan 	 
	 	 	Title:  	General Counsel 	 
	 
	 	MEDQUIST TRANSCRIPTIONS, LTD.

     as Grantor

 	 
	 	By:  	/s/ Mark R. Sullivan
 	 
	 	 	Name:  	Mark R. Sullivan 	 
	 	 	Title:  	General Counsel 	 
	 
	 	CBAYSYSTEMS HOLDINGS LIMITED

     as Grantor

 	 
	 	By:  	/s/ Clyde Swoger
 	 
	 	 	Name:  	Clyde Swoger 	 
	 	 	Title:  	CFO 	 
	 
	 	CBAY SYSTEMS AND SERVICES INC.

     as Grantor

 	 
	 	By:  	/s/ Clyde Swoger
 	 
	 	 	Name:  	Clyde Swoger 	 
	 	 	Title:  	Authorized Signatory 	 
	 



[SIGNATURE PAGE TO GUARANTY AND SECURITY AGREEMENT]




 









 








	 	 	 	 	 
	 	MIRRUS SYSTEMS, INC.

     as Grantor

 	 
	 	By:  	/s/
Clyde Swoger
 	 
	 	 	Name:  	Clyde Swoger	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	AMSPLUS, INC.

     as Grantor

 	 
	 	By:  	/s/ Clyde Swoger
 	 
	 	 	Name:  	Clyde Swoger	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	MEDQUIST IP LLC

     as Grantor

 	 
	 	By:  	/s/
Mark R. Sullivan
 	 
	 	 	Name:  	Mark R. Sullivan	 
	 	 	Title:  	President 	 
	 
	 	MEDQUIST CM LLC

     as Grantor

 	 
	 	By:  	/s/ Mark R. Sullivan
 	 
	 	 	Name:  	Mark R. Sullivan	 
	 	 	Title:  	President 	 
	 
	 	MEDQUIST OF DELAWARE, INC.

     as Grantor

 	 
	 	By:  	/s/ Mark R. Sullivan
 	 
	 	 	Name:  	Mark R. Sullivan	 
	 	 	Title:  	Secretary	 
	 



[SIGNATURE
PAGE TO GUARANTY AND SECURITY AGREEMENT]





 











 






	 	 	 	 	 



ACCEPTED AND AGREED

as of the date first above written:




GENERAL ELECTRIC CAPITAL CORPORATION




     as Administrative Agent




	 	 	 	 
	 	 
	By:  	/s/ Brent Shepherd
 	 
	 	Name:  	Brent Shepherd 	 
	 	Title. Duly Authorized Signatory 	 
	 



[SIGNATURE PAGE TO GUARANTY AND SECURITY AGREEMENT]





 











 





ANNEX 1

TO

GUARANTY AND SECURITY AGREEMENT1




FORM OF PLEDGE AMENDMENT



          This PLEDGE AMENDMENT, dated as of           ,       20_, is delivered pursuant to Section 8.6 of the
Guaranty and Security Agreement, dated as of October 14, 2010, by CBay Inc., a Delaware
corporation (“CBay”), MedQuist Inc., a New Jersey corporation (“MedQuist”),
MedQuist Transcriptions, Ltd., a New Jersey corporation (“MedQuist Transcriptions” and
together with CBay and MedQuist, the “Borrowers”), the undersigned Grantor and the other
Affiliates of the Borrowers from time to time party thereto as Grantors in favor of General
Electric Capital Corporation, as administrative agent and collateral agent for the Secured Parties
referred to therein (the “Guaranty and Security Agreement”). Capitalized terms used herein
without definition are used as defined in the Guaranty and Security Agreement.




          The undersigned hereby agrees that this Pledge Amendment may be attached to the Guaranty and
Security Agreement and that the Pledged Collateral listed on Annex 1-A to this Pledge
Amendment shall be and become part of the Collateral referred to in the Guaranty and Security
Agreement and shall secure all Obligations of the undersigned.




          The undersigned hereby represents and warrants that each of the representations and warranties
contained in Sections 4.1, 4.2, 4.5 and 4.10 of the Guaranty and
Security Agreement is true and correct with respect to itself and its rights and property, as of
the date hereof as if made on and as of such date.




	 	 	 	 	 
	 	[GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 





 




			
	To be used for pledge of Additional Pledged Collateral by existing Grantor.





GUARANTY AND SECURITY AGREEMENT

MEDQUIST TRANSCRIPTIONS, LTD.





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Annex 1-A




PLEDGED STOCK




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	NUMBER OF
	 	 	 	 	 	 	 	 	SHARES,
	 	 	 	 	 	 	 	 	UNITS OR
	ISSUER	 	CLASS	 	CERTIFICATE NO(S).	 	PAR VALUE	 	INTERESTS
	 
	 	 	 	 	 	 	 	 





PLEDGED DEBT INSTRUMENTS




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	PRINCIPAL
	ISSUER	 	DESCRIPTION OF DEBT	 	CERTIFICATE NO(S).	 	FINAL MATURITY	 	AMOUNT
	

	 	 	 	 	 	 	 	 






GUARANTY AND SECURITY AGREEMENT

MEDQUIST TRANSCRIPTIONS, LTD.





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	ACKNOWLEDGED AND AGREED	 	 
	as of the date first above written:	 	 
	 
	 	 	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION	 	 
	 

	 	as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 






GUARANTY AND SECURITY AGREEMENT

MEDQUIST TRANSCRIPTIONS, LTD.




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ANNEX 2

TO

GUARANTY AND SECURITY AGREEMENT




FORM OF JOINDER AGREEMENT



          This JOINDER AGREEMENT, dated as of          ,      20_, is delivered pursuant to Section 8.6 of
the Guaranty and Security Agreement, dated as of October 14, 2010, by CBay Inc., a Delaware
corporation (“CBay”), MedQuist Inc., a New Jersey corporation (“MedQuist”),
MedQuist Transcriptions, Ltd., a New Jersey corporation (“MedQuist Transcriptions” and
together with CBay and MedQuist, the “Borrowers”), and the Affiliates of the Borrowers
from time to time party thereto as Grantors in favor of the General Electric Capital Corporation,
as administrative agent and collateral agent for the Secured Parties referred to therein (the
“Guaranty and Security Agreement”). Capitalized terms used herein without definition are
used as defined in the Guaranty and Security Agreement.




          By executing and delivering this Joinder Agreement, the undersigned, as provided in
Section 8.6 of the Guaranty and Security Agreement, hereby becomes a party to the Guaranty
and Security Agreement as a Grantor thereunder with the same force and effect as if originally
named as a Grantor therein and, without limiting the generality of the foregoing, as collateral
security for the prompt and complete payment and performance when due (whether at stated maturity,
by acceleration or otherwise) of the Secured Obligations of the undersigned, hereby mortgages,
pledges and hypothecates to the Administrative Agent for the benefit of the Secured Parties, and
grants to the Administrative Agent for the benefit of the Secured Parties a lien on and security
interest in, all of its right, title and interest in, to and under the Collateral of the
undersigned and expressly assumes all obligations and liabilities of a Grantor thereunder. The
undersigned hereby agrees to be bound as a Grantor for the purposes of the Guaranty and Security
Agreement.




          The information set forth in Annex 1-A is hereby added to the information set forth
in Schedules 1 through 6 to the Guaranty and Security Agreement. By acknowledging and
agreeing to this Joinder Agreement, the undersigned hereby agree that this Joinder Agreement may
be attached to the Guaranty and Security Agreement and that the Pledged Collateral listed on
Annex 1-A to this Joinder Amendment shall be and become part of the Collateral referred to
in the Guaranty and Security Agreement and shall secure all Secured Obligations of the
undersigned.




          The undersigned hereby represents and warrants, on behalf of itself, that each of the
representations and warranties contained in Article IV of the Guaranty and Security
Agreement applicable to it and its rights and property is true and correct on and as the date
hereof as if made on and as of such date.




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




	 	 	 	 	 
	 	[ADDITIONAL GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



GUARANTY AND SECURITY AGREEMENT

MEDQUIST TRANSCRIPTIONS, LTD.





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	ACKNOWLEDGED AND AGREED	 	 
	as of the date first above written:	 	 
	 
	 	 	 	 
	[EACH GRANTOR PLEDGING	 	 
	ADDITIONAL COLLATERAL]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION	 	 
	 

	 	as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 






GUARANTY AND SECURITY AGREEMENT

MEDQUIST TRANSCRIPTIONS, LTD.




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ANNEX 3

TO

GUARANTY AND SECURITY AGREEMENT




FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT1



          THIS [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT,
dated as of                        , 20   , is made by each of the entities listed on the signature pages
hereof (each a “Grantor” and, collectively, the “Grantors”), in favor of General
Electric Capital Corporation (“GE Capital”), as administrative agent and collateral agent
(in such capacity, together with its successors and permitted assigns, the “Administrative
Agent”) for the Lenders and the L/C Issuers (as defined in the Credit Agreement referred to
below).




W I T N E S S E T H:




          WHEREAS, pursuant to the Credit Agreement, dated as of October 1, 2010 (as the same may be
amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrowers, CBaySystems Holdings Ltd., a company incorporated in the
British Virgin Islands (“Holdings”), the Lenders and the L/C Issuers from time to time
party thereto and GE Capital, as Administrative Agent for the Lenders and the L/C Issuers, the
Lenders and the L/C Issuers have severally agreed to make extensions of credit to the Borrowers
upon the terms and subject to the conditions set forth therein;




          WHEREAS, each Grantor (other than the Borrowers) has agreed, pursuant to a Guaranty and
Security Agreement of even date herewith in favor of the Administrative Agent (the “Guaranty
and Security Agreement”), to guarantee the Obligations (as defined in the Credit Agreement) of
the Borrowers; and




          WHEREAS, all of the Grantors are party to the Guaranty and Security Agreement pursuant to
which the Grantors are required to execute and deliver this [Copyright] [Patent] [Trademark]
Security Agreement;




          NOW, THEREFORE, in consideration of the premises and to induce the Lenders, the L/C Issuers
and the Administrative Agent to enter into the Credit Agreement and to induce the Lenders and the
L/C Issuers to make their respective extensions of credit to the Borrowers thereunder, each Grantor
hereby agrees with the Administrative Agent as follows:




     Section 1. Defined Terms. Capitalized terms used herein without definition are used as
defined in the Guaranty and Security Agreement.



     Section 2. Grant of Security Interest in [Copyright] [Trademark] [Patent] Collateral.
Each Grantor, as collateral security for the prompt and complete payment and performance when due
(whether at stated maturity, by acceleration or otherwise) of the Secured Obligations of such
Grantor, hereby mortgages, pledges and hypothecates to the Administrative Agent for the benefit of
the Secured Parties, and grants to the Administrative Agent for the benefit of the Secured Parties
a Lien on and security interest in, all of its right, title and interest in, to and under the
following Collateral of such Grantor (the “[Copyright] [Patent] [Trademark] Collateral”):



          (a) [all of its Copyrights and all exclusive IP Licenses providing for the grant by or to such
Grantor of any right under any Copyright, including, without limitation, those referred to on
Schedule 1 hereto;






 




			
	1	 	Separate agreements will be executed relating
to each Grantor’s respective Copyrights, Patents, and Trademarks.




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          (b) all renewals, reversions and extensions of the foregoing; and




          (c) all income, royalties, proceeds and Liabilities at any time due or payable or asserted
under and with respect to any of the foregoing, including, without limitation, all rights to sue
and recover at law or in equity for any past, present and future infringement, misappropriation,
dilution, violation or other impairment thereof.]




or



          (a) [all of its Patents and all exclusive IP Licenses providing for the grant by or to such
Grantor of any right under any Patent, including, without limitation, those referred to on
Schedule 1 hereto;




          (b) all reissues, reexaminations, continuations, continuations-in-part, divisionals, renewals
and extensions of the foregoing; and




          (c) all income, royalties, proceeds and Liabilities at any time due or payable or asserted
under and with respect to any of the foregoing, including, without limitation, all rights to sue
and recover at law or in equity for any past, present and future infringement, misappropriation,
dilution, violation or other impairment thereof.]




or



          (a) [all of its Trademarks and all exclusive IP Licenses providing for the grant by or to
such Grantor of any right under any Trademark, including, without limitation, those referred to on
Schedule 1 hereto;




          (b) all renewals and extensions of the foregoing;




          (c) all goodwill of the business connected with the use of, and symbolized by, each such
Trademark; and




          (d) all income, royalties, proceeds and Liabilities at any time due or payable or asserted
under and with respect to any of the foregoing, including, without limitation, all rights to sue
and recover at law or in equity for any past, present and future infringement, misappropriation,
dilution, violation or other impairment thereof.]




     Section 3. Guaranty and Security Agreement. The security interest granted pursuant to
this [Copyright] [Patent] [Trademark] Security Agreement is granted in conjunction with the
security interest granted to the Administrative Agent pursuant to the Guaranty and Security
Agreement and each Grantor hereby acknowledges and agrees that the rights and remedies of the
Administrative Agent with respect to the security interest in the [Copyright] [Patent] [Trademark]
Collateral made and granted hereby are more fully set forth in the Guaranty and Security Agreement,
the terms and provisions of which are incorporated by reference herein as if fully set forth
herein.



     Section 4. Grantor Remains Liable. Each Grantor hereby agrees that, anything herein to
the contrary notwithstanding, such Grantor shall assume full and complete responsibility for the
prosecution, defense, enforcement or any other necessary or desirable actions in connection with
their [Copyrights] [Patents] [Trademarks] and exclusive IP Licenses subject to a








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security interest hereunder in each case in accordance with the Guaranty and Security Agreement and
the Credit Agreement.




     Section 5. Counterparts. This [Copyright] [Patent] [Trademark] Security Agreement may
be executed in any number of counterparts and by different parties in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Signature pages may be detached from multiple separate
counterparts and attached to a single counterpart.



     Section 6. Governing Law. This [Copyright] [Patent] [Trademark] Security Agreement and
the rights and obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the law of the State of New York.



[SIGNATURE PAGES FOLLOW]




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          IN WITNESS WHEREOF, each Grantor has caused this [Copyright][Patent][Trademark] Security
Agreement to be executed and delivered by its duly authorized officer as of the date first set
forth above.




	 	 	 	 	 

	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[GRANTOR]
	 

	 	 	 	as Grantor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:






	 	 	 	 	 

	ACCEPTED AND AGREED	 	 
	as of the date first above written:	 	 
	 
	 	 	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION	 	 
	 

	 	as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 






[SIGNATURE PAGE TO [COPYRIGHT][PATENT][TRADEMARK] SECURITY AGREEMENT]














 





ACKNOWLEDGMENT OF GRANTOR




	 	 	 	 	 

	STATE OF
	)	 	 	 
	 
	 	 	 	 
	 

	)	 	 	ss.
	COUNTY OF
	)	 	 	 
	 
	 	 	 	 






          On this     day of          , 20    before me personally appeared
                    , proved to me on the basis of satisfactory evidence to be the person who executed the
foregoing instrument on behalf of                     , who being by me duly sworn did depose and say that he is an
authorized officer of said corporation, that the said instrument was signed on behalf of said
corporation as authorized by its Board of Directors and that he acknowledged said instrument to be
the free act and deed of said corporation.




 


Notary Public




[ACKNOWLEDGEMENT OF GRANTOR FOR [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT]





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