Document:

EXHIBIT 10.2

 

EXECUTION COPY

 

 

 

U.S. GUARANTEE AND COLLATERAL AGREEMENT

 

dated as of

 

December 17, 2003,

 

among

 

SENSUS METERING SYSTEMS INC.,

 

SENSUS METERING SYSTEMS (BERMUDA 2) LTD.,

 

the Subsidiaries of SENSUS METERING SYSTEMS
INC. identified herein,

 

and

 

CREDIT SUISSE FIRST BOSTON,

as U.S. Collateral Agent

 

 

[CS&M Ref No. 5865-210]

 

 

TABLE OF CONTENTS

 

 

	
  ARTICLE I

  
	
   

  	
   

  
	
  Definitions

  
	
   

  	
   

  
	
  SECTION 1.01.  Credit Agreement

  	
   

  
	
   

  	
   

  
	
  SECTION 1.02.  Other Defined Terms

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  
	
  Guarantee

  
	
   

  	
   

  
	
  SECTION 2.01.  Guarantee

  	
   

  
	
   

  	
   

  
	
  SECTION 2.02.  Guarantee of Payment

  	
   

  
	
   

  	
   

  
	
  SECTION 2.03.  No Limitations, Etc

  	
   

  
	
   

  	
   

  
	
  SECTION 2.04.  Reinstatement

  	
   

  
	
   

  	
   

  
	
  SECTION 2.05.  Agreement To Pay; Subrogation

  	
   

  
	
   

  	
   

  
	
  SECTION 2.06.  Information

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  
	
  Pledge of Securities

  
	
   

  	
   

  
	
  SECTION 3.01.  Pledge

  	
   

  
	
   

  	
   

  
	
  SECTION 3.02.  Delivery of the Pledged Collateral

  	
   

  
	
   

  	
   

  
	
  SECTION 3.03.  Representations, Warranties and Covenants

  	
   

  
	
   

  	
   

  
	
  SECTION 3.04.  [INTENTIONALLY OMITTED]

  	
   

  
	
   

  	
   

  
	
  SECTION 3.05.  Registration in Nominee Name;
  Denominations

  	
   

  
	
   

  	
   

  
	
  SECTION 3.06.  Voting Rights; Dividends and Interest, etc

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  
	
  Security Interests in Personal Property

  
	
   

  	
   

  
	
  SECTION 4.01.  Security Interest

  	
   

  

 

 

	
  SECTION 4.02.  Representations and Warranties

  	
   

  
	
   

  	
   

  
	
  SECTION 4.03.  Covenants

  	
   

  
	
   

  	
   

  
	
  SECTION 4.04.  Other Actions

  	
   

  
	
   

  	
   

  
	
  SECTION 4.05.  Covenants Regarding Patent, Trademark and
  Copyright Collateral

  	
   

  
	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  
	
  Remedies

  
	
   

  	
   

  
	
  SECTION 5.01.  Remedies upon Default

  	
   

  
	
   

  	
   

  
	
  SECTION 5.02.  Application of Proceeds

  	
   

  
	
   

  	
   

  
	
  SECTION 5.03.  Grant of License to Use Intellectual
  Property

  	
   

  
	
   

  	
   

  
	
  SECTION 5.04.  Securities Act, etc

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  
	
  Indemnity,
  Subrogation and Subordination

  
	
   

  	
   

  
	
  SECTION 6.01.  Indemnity and Subrogation

  	
   

  
	
   

  	
   

  
	
  SECTION 6.02.  Contribution and Subrogation

  	
   

  
	
   

  	
   

  
	
  SECTION 6.03.  Subordination

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  
	
  SECTION 7.01.  Notices

  	
   

  
	
   

  	
   

  
	
  SECTION 7.02.  Security Interest Absolute

  	
   

  
	
   

  	
   

  
	
  SECTION 7.03.  Survival of Agreement

  	
   

  
	
   

  	
   

  
	
  SECTION 7.04.  Binding Effect; Several Agreement

  	
   

  
	
   

  	
   

  
	
  SECTION 7.05.  Successors and Assigns

  	
   

  
	
   

  	
   

  
	
  SECTION 7.06.  U.S. Collateral Agent’s Fees and Expenses;
  Indemnification

  	
   

  
	
   

  	
   

  
	
  SECTION 7.07.  U.S. Collateral Agent Appointed
  Attorney-in-Fact

  	
   

  
	
   

  	
   

  
	
  SECTION 7.08.  Applicable Law

  	
   

  

 

2

 

	
  SECTION 7.09.  Waivers; Amendment

  	
   

  
	
   

  	
   

  
	
  SECTION 7.10.  WAIVER OF JURY TRIAL

  	
   

  
	
   

  	
   

  
	
  SECTION 7.11.  Severability

  	
   

  
	
   

  	
   

  
	
  SECTION 7.12.  Counterparts

  	
   

  
	
   

  	
   

  
	
  SECTION 7.13.  Headings

  	
   

  
	
   

  	
   

  
	
  SECTION 7.14.  Jurisdiction; Consent to Service of
  Process

  	
   

  
	
   

  	
   

  
	
  SECTION 7.15.  Termination or Release

  	
   

  
	
   

  	
   

  
	
  SECTION 7.16.  Additional Grantors

  	
   

  
	
   

  	
   

  
	
  SECTION 7.17.  Right of Setoff

  	
   

  
	
   

  	
   

  
	
  SECTION 7.18.  Conflicts

  	
   

  

 

 

	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Schedule I

  	
  Subsidiary
  Guarantors

  
	
  Schedule II

  	
  Capital
  Stock; Debt Securities

  
	
  Schedule III

  	
  Intellectual
  Property

  
	
   

  	
   

  
	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  Exhibit
  A

  	
  Form
  of Supplement

  
	
  Exhibit
  B

  	
  Form
  of Perfection Certificate

  

 

3

 

U.S. GUARANTEE AND COLLATERAL AGREEMENT dated
as of December 17, 2003, among SENSUS METERING SYSTEMS INC., a Delaware
corporation (the “U.S. Borrower”), SENSUS METERING SYSTEMS (BERMUDA
2) LTD., a company organized under the laws of Bermuda (“Holdings”), the Subsidiaries of the U.S.
Borrower identified herein and CREDIT SUISSE FIRST BOSTON (together with its
affiliates, “CSFB”), as U.S. collateral agent (in such capacity, the “U.S. Collateral Agent”).

 

PRELIMINARY STATEMENT

 

Reference is made to the Credit Agreement
dated as of December 17, 2003 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the U.S. Borrower, Sensus
Metering Systems (LuxCo 2) S.àr.l., a société à responsabilité limitée
incorporated under Luxembourg law, Holdings, the lenders from time to time
party thereto (the “Lenders”) and CSFB, as general
administrative agent (in such capacity, the “General Administrative
Agent”)
and as European administrative agent, U.S. collateral agent and European
collateral agent.  The Lenders and the
Issuing Banks have agreed to extend credit to the Borrowers (such term and each
other capitalized term used but not defined in this preliminary statement
having the meaning given or ascribed to it in Article I) pursuant to, and
upon the terms and conditions specified in, the Credit Agreement.  The obligations of the Lenders to extend
credit to the Borrowers are conditioned upon, among other things, the execution
and delivery of this Agreement by Holdings, the U.S. Borrower and the U.S.
Subsidiary Guarantors.  Holdings and the
U.S. Subsidiary Guarantors are affiliates of the Borrowers, will derive
substantial benefits from the extension of credit to the Borrowers pursuant to
the Credit Agreement and are willing to execute and deliver this Agreement in
order to induce the Lenders to extend such credit.  Accordingly, the parties hereto agree as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.01.
Credit Agreement.  (a)  Capitalized terms used in this Agreement and
not otherwise defined herein have the meanings set forth in the Credit
Agreement.  All terms defined in the New
York UCC (as such term is defined herein) and not defined in this Agreement
have the meanings specified therein. 
All references to the Uniform Commercial Code shall mean the New York
UCC.

 

(b) The rules of construction specified in
Section 1.02 of the Credit Agreement also apply to this Agreement.

 

SECTION 1.02.
Other Defined Terms.  As used in
this Agreement, the following terms have the meanings specified below:

 

 

“Account” shall have the meaning assigned to such term in
Section 9-102 of the New York UCC.

 

“Account Debtor” shall mean any
person who is or who may become obligated to any Grantor under, with respect to
or on account of an Account.

 

“Accounts Receivable” shall mean
all Accounts and all right, title and interest in any returned goods, together
will all rights, titles, securities and guarantees with respect thereto,
including any rights to stoppage in transit, replevin, reclamation and resales,
and all related security interests, liens and pledges, whether voluntary or
involuntary, in each case whether now existing or owned or hereafter arising or
acquired.

 

“Agreement” shall mean this U.S. Guarantee and Collateral
Agreement, as it may be amended, restated, supplemented or otherwise modified
from time to time.

 

“Article 9 Collateral”
shall have the meaning assigned to such term in Section 4.01.

 

“Borrowers” shall mean the U.S. Borrower and the European
Borrower.

 

“Claiming Guarantor” shall have the meaning assigned to
such term in Section 6.02.

 

“Collateral” shall mean the
Article 9 Collateral and the Pledged Collateral.

 

“Collateral Agents” shall mean the U.S. Collateral Agent
and the European Collateral Agent.

 

“Commercial Tort Claim” shall have the meaning assigned
to such term in Section 9-102 of the New York UCC.

 

“Commodities Intermediary” shall have the meaning
assigned to such term in Section 9-102 of the New York UCC.

 

“Contributing Guarantor” shall have the meaning assigned
to such term in Section 6.02.

 

“Copyright License” shall mean
any written agreement, now or hereafter in effect, granting any right to any
third party under any copyright now or hereafter owned by any Grantor or that
such Grantor otherwise has the right to license, or granting any right to any
Grantor under any copyright now or hereafter owned by any third party, and all
rights of such Grantor under any such agreement, excluding any Copyright
licenses that are granted as an ancillary and non-material part of services,
supply or manufacturing arrangements or other collaborations with a third party
principally in order to facilitate the main purpose of such arrangements or
collaborations.

 

2

 

“Copyrights” shall mean all of
the following now owned or hereafter acquired by any Grantor:  (a) all copyright rights in any work
subject to the copyright laws of the United States or any other country,
whether as author, assignee, transferee or otherwise, and (b) all
registrations and applications for registration of any such copyright in the
United States or any other country, including registrations, recordings,
supplemental registrations and pending applications for registration in the
United States Copyright Office (or any successor office or any similar office
in any other country), including those listed on Schedule III.

 

“Credit Agreement” shall have
the meaning assigned to such term in the preliminary statement.

 

“CSFB” shall have the meaning assigned to such term in
the preamble.

 

“Deposit Account” shall have the meaning assigned to such
term in Section 9-102 of the New York UCC.

 

“Electronic Chattel Paper” shall have the meaning
assigned to such term in Section 9-102 of the New York UCC.

 

“Entitlement Holder” shall have the meaning assigned to
such term in Section 8-102 of the New York UCC.

 

“Entitlement Order” shall have the meaning assigned to
such term in Section 8-102 of the New York UCC.

 

“Equipment” shall have the meaning assigned to such term
in Section 9-102 of the New York UCC.

 

“Equity Interests” shall mean
shares, shares of capital stock, partnership interests, membership interests in
a company, limited liability company, beneficial interests in a trust or other
equity interests in any person, or any obligations convertible into or
exchangeable for, or giving any person a right, option or warrant to acquire
such equity interests or such convertible or exchangeable obligations.

 

“Federal Securities Laws” shall have the meaning assigned
to such term in Section 5.04.

 

“Financial Asset” shall have the meaning assigned to such
term in Section 8-102 of the New York UCC.

 

“Fraudulent Transfer Laws” shall have the meaning
assigned to such term in Section 2.01.

 

“General Administrative Agent” shall have the meaning
assigned to such term in the preliminary statement.

 

3

 

“General Intangibles” shall mean
all choses in action and causes of action and all other intangible personal
property of any Grantor of every kind and nature (other than Accounts) now
owned or hereafter acquired by any Grantor, including all rights and interests
in partnerships, limited partnerships, companies, limited liability companies
and other unincorporated entities, corporate or other business records,
indemnification claims, contract rights (including rights under leases, whether
entered into as lessor or lessee, Hedging Agreements and other agreements),
Intellectual Property, goodwill, registrations, franchises, tax refund claims
and any letter of credit, guarantee, claim, security interest or other security
held by or granted to any Grantor to secure payment by an Account Debtor of any
of the Accounts.

 

“Grantors” shall mean Holdings,
the U.S. Borrower and the U.S. Subsidiary Guarantors.

 

“Holdings” shall have the meaning assigned to such term
in the preamble.

 

“Instrument” shall have the meaning assigned to such term
in Section 9-102 of the New York UCC.

 

“Intellectual Property” shall
mean all intellectual and similar property of any Grantor of every kind and
nature now owned or hereafter acquired by any Grantor, including inventions,
designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential
or proprietary technical and business information, know-how, show-how or other
data or information, software and databases and all embodiments or fixations
thereof and related documentation, registrations and franchises, and all
additions, improvements and accessions to, and books and records describing or
used in connection with, any of the foregoing.

 

“Inventory” shall have the meaning assigned to such term
in Section 9-102 of the New York UCC.

 

“Investment Property” shall have the meaning assigned to
such term in Section 9-102 of the New York UCC.

 

“Lenders” shall have the meaning assigned to such term in
the preliminary statement.

 

“Letter-of-Credit Right” shall have the meaning assigned
to such term in Section 9-102 of the New York UCC.

 

“License” shall mean any Patent
License, Trademark License or Copyright License to which any Grantor is a
party, including those listed on Schedule III.

 

“Loan Document Obligations” shall mean (a) the due and
punctual payment of (i) the principal of and interest (including interest
accruing during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the Loans, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment

 

4

 

or otherwise,
(ii) each payment required to be made by a Borrower under the Credit Agreement
in respect of any Letter of Credit, when and as due, including payments in
respect of reimbursement of disbursements, interest thereon and obligations to
provide cash collateral, and (iii) all other monetary obligations of the
Borrowers to any of the Secured Parties under the Credit Agreement and each of
the other Loan Documents, including fees, costs, expenses and indemnities,
whether primary, secondary, direct, contingent, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding), (b) the due and punctual performance
of all other obligations of the Borrowers under or pursuant to the Credit
Agreement and each of the other Loan Documents, and (c) the due and punctual
payment and performance of all the obligations of each other Loan Party under
or pursuant to this Agreement and each of the other Loan Documents.

 

“New York UCC” shall mean the
Uniform Commercial Code as from time to time in effect in the State of New
York.

 

“Non-Funding Lender” shall mean any Revolving Lender that
shall have failed to fund any participation (a) in respect of any Swingine Loan
in accordance with Section 2.22(e) of the Credit Agreement or (b) in
respect of any L/C Disbursement in accordance with Sections 2.23(d) and 2.02(f)
of the Credit Agreement.

 

“Obligations” shall mean (a) the
Loan Document Obligations and (b) the due and punctual payment and performance
of all obligations of each Loan Party under each Hedging Agreement that (i) is
in effect on the Closing Date with a counterparty that is a Lender or an
Affiliate of a Lender as of the Closing Date or (ii) is entered into after the
Closing Date with any counterparty that is a Lender or an Affiliate of a Lender
at the time such Hedging Agreement is entered into.

 

“Patent License” shall mean any
written agreement, now or hereafter in effect, granting to any third party any
right to make, use or sell any invention on which a patent, now or hereafter
owned by any Grantor or that any Grantor otherwise has the right to license, is
in existence, or granting to any Grantor any right to make, use or sell any
invention on which a patent, now or hereafter owned by any third party, is in
existence, and all rights of any Grantor under any such agreement, excluding
any Patent licenses that are granted as an ancillary and non-material part of
services, supply or manufacturing arrangements or other collaborations with a
third party principally in order to facilitate the main purpose of such
arrangements or collaborations.

 

“Patents” shall mean all of the
following now owned or hereafter acquired by any Grantor:  (a) all letters patent of the United
States or the equivalent thereof in any other country, all registrations and
recordings thereof, and all applications for letters patent of the United
States or the equivalent thereof in any other country, including registrations,
recordings and pending applications in the United States Patent and Trademark Office
(or any successor or any similar offices in any other country), including those
listed on Schedule III, and (b) all reissues, continuations,
divisions, continuations-in-part, renewals or extensions thereof, and the
inventions disclosed or

 

5

 

claimed
therein, including the right to make, use and/or sell the inventions disclosed
or claimed therein.

 

“Perfection Certificate” shall
mean a certificate substantially in the form of Exhibit B, completed and supplemented
with the schedules and attachments contemplated thereby, and duly executed by a
Financial Officer of the U.S. Borrower.

 

“pledge” shall also include charge.

 

“Pledged Collateral” shall have
the meaning assigned to such term in Section 3.01.

 

“Pledged Debt Securities” shall
have the meaning assigned to such term in Section 3.01.

 

“Pledged Intercompany Notes” shall have the meaning
assigned to such term in Section 3.02(b).

 

“Pledged Securities” shall mean
any promissory notes, share certificates, stock certificates or other
securities now or hereafter included in the Pledged Collateral, including all
certificates, instruments or other documents representing or evidencing any
Pledged Collateral.

 

“Pledged Stock” shall have the
meaning assigned to such term in Section 3.01.

 

“Pledged Subsidiary Stock” shall have the meaning
assigned to such term in Section 3.02(a).

 

“Proceeds” shall have the
meaning assigned to such term in Section 9-102 of the New York UCC.

 

“Secured Parties” shall mean (a)
the Lenders, (b) the Administrative Agents, (c) the Collateral Agents, (d) any
Issuing Bank, (e) each counterparty to any Hedging Agreement with a Loan Party
that either (i) is in effect on the Closing Date if such counterparty is a
Lender or an Affiliate of a Lender as of the Closing Date or (ii) is entered
into after the Closing Date if such counterparty is a Lender or an Affiliate of
a Lender at the time such Hedging Agreement is entered into, (f) the
beneficiaries of each indemnification obligation undertaken by any Loan Party
under any Loan Document and (g) the successors and assigns of each of the
foregoing.

 

“Securities Account” shall have the meaning assigned to
such term in Section 8-501 of the New York UCC.

 

“Securities Intermediary” shall have the meaning assigned
to such term in Section 8-102 of the New York UCC.

 

6

 

“Security” shall have the meaning assigned to such term
in Section 8-102 of the New York UCC.

 

“Security Interest” shall have
the meaning assigned to such term in Section 4.01.

 

“Trademark License” shall mean
any written agreement, now or hereafter in effect, granting to any third party
any right to use any trademark now or hereafter owned by any Grantor or that
any Grantor otherwise has the right to license, or granting to any Grantor any
right to use any trademark now or hereafter owned by any third party, and all
rights of any Grantor under any such agreement, excluding any Trademark
licenses that are granted as an ancillary and non-material part of services,
supply or manufacturing arrangements or other collaborations with a third party
principally in order to facilitate the main purpose of such arrangements or
collaborations.

 

“Trademarks” shall mean all of
the following now owned or hereafter acquired by any Grantor:  (a) all trademarks, service marks,
trade names, corporate names, company names, business names, fictitious
business names, trade styles, trade dress, logos, other source or business identifiers,
designs and general intangibles of like nature, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and all
registration and recording applications filed in connection therewith,
including registrations and registration applications in the United States Patent
and Trademark Office (or any successor office) or any similar offices in any
State of the United States or any other country or any political subdivision
thereof, and all extensions or renewals thereof, including those listed on
Schedule III, (b) all goodwill associated therewith or symbolized thereby
and (c) all other assets, rights and interests that uniquely reflect or embody
such goodwill.

 

“Unfunded
Participations” shall mean (a) with respect
to the Swingline Lender, the aggregate amount, if any, of participations in
respect of any outstanding Swingline Loan that shall not have been funded by
the applicable Revolving Lenders in accordance with Section 2.22(e) of the
Credit Agreement and (b) with respect to any Issuing Bank, the aggregate amount,
if any, of participations in respect of any outstanding L/C Disbursement that
shall not have been funded by the applicable Revolving Lenders in accordance
with Sections 2.23(d) and 2.02(f) of the Credit Agreement.

 

“U.S. Borrower” shall have the meaning assigned to such
term in the preamble.

 

“U.S. Collateral Agent” shall have the meaning assigned
to such term in the preamble.

 

“U.S. Guarantors” shall mean Holdings and the U.S.
Subsidiary Guarantors; provided, however, that the term “U.S. Guarantors”
shall include the U.S. Borrower with respect to the European Obligations.

 

7

 

“U.S. Subsidiary Guarantors” shall mean (a) the
Subsidiaries identified on Schedule I hereto as U.S. Subsidiary Guarantors
and (b) each other Subsidiary that becomes a party to this Agreement as a U.S.
Subsidiary Guarantor after the Closing Date.

 

ARTICLE II

 

Guarantee

 

SECTION 2.01.
Guarantee.  (a) Each U.S.
Guarantor unconditionally guarantees, jointly with the other U.S. Guarantors
and severally, as a primary obligor and not merely as a surety, the due and
punctual payment and performance of the Obligations.  Each of the U.S. Guarantors further agrees that the Obligations
may be extended or renewed, in whole or in part, without notice to or further
assent from it, and that it will remain bound upon its guarantee
notwithstanding any extension or renewal of any Obligation.  Each of the U.S. Guarantors waives
presentment to, demand of payment from and protest to either Borrower or any
other Loan Party of any Obligation, and also waives notice of acceptance of its
guarantee and notice of protest for nonpayment.

 

(b)  Notwithstanding anything in
this Agreement to the contrary, the obligations of each U.S. Guarantor
hereunder shall be limited to a maximum aggregate amount equal to the greatest
amount that would not render such U.S. Guarantor’s obligations hereunder
subject to avoidance as a fraudulent transfer or conveyance under
Section 548 of Title 11 of the United States Code or any provisions of
applicable state law (collectively, the “Fraudulent Transfer Laws”), in each case after giving
effect to all other liabilities of such U.S. Guarantor, contingent or
otherwise, that are relevant under the Fraudulent Transfer Laws (specifically
excluding, however, any liabilities of such U.S. Guarantor (i) in respect
of intercompany Indebtedness to a Borrower or Affiliates of a Borrower to the
extent that such Indebtedness would be discharged in an amount equal to the
amount paid by such U.S. Guarantor hereunder and (ii) under any Guarantee
of senior unsecured Indebtedness or Indebtedness subordinated in right of
payment to the Obligations which Guarantee contains a limitation as to maximum
amount similar to that set forth in this paragraph, pursuant to which the
liability of such U.S. Guarantor hereunder is included in the liabilities taken
into account in determining such maximum amount) and after giving effect as
assets to the value (as determined under the applicable provisions of the
Fraudulent Transfer Laws) of any rights to subrogation, contribution,
reimbursement, indemnity or similar rights of such U.S. Guarantor pursuant to
(x) applicable law or (y) any agreement providing for an equitable
allocation among such U.S. Guarantor and other Affiliates of a Borrower of
obligations arising under Guarantees by such parties (including the provisions
of Article VI).

 

SECTION 2.02.
Guarantee of Payment.  Each of
the U.S. Guarantors further agrees that its guarantee hereunder constitutes a
guarantee of payment when due and not of collection, and waives any right to
require that any resort be had by either Collateral Agent or any other Secured
Party to any security held for the payment of the Obligations or to any balance
of any Deposit Account or credit on the books of the U.S. Collateral Agent or
any other Secured Party in favor of either Borrower or any other person.

 

8

 

SECTION 2.03.
No Limitations, Etc. 
(a) Except for termination of a U.S. Guarantor’s obligations
hereunder as expressly provided in Section 7.15, the obligations of each
U.S. Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality or unenforceability of the Obligations or
otherwise.  Without limiting the
generality of the foregoing, the obligations of each U.S. Guarantor hereunder
shall not be discharged or impaired or otherwise affected by (i) the failure of
either Collateral Agent or any other Secured Party to assert any claim or
demand or to enforce any right or remedy under the provisions of any Loan
Document or otherwise; (ii) any rescission, waiver, amendment or modification
of, or any release from any of the terms or provisions of, any Loan Document or
any other agreement, including with respect to any other U.S. Guarantor under
this Agreement; (iii) the release of any security held by either Collateral
Agent or any other Secured Party for the Obligations or any of them; (iv) any
default, failure or delay, wilful or otherwise, in the performance of the
Obligations; or (v) any other act or omission that may or might in any manner
or to any extent vary the risk of any U.S. Guarantor or otherwise operate as a
discharge of any U.S. Guarantor as a matter of law or equity (other than the
payment in full in cash of all the Obligations).  Each U.S. Guarantor expressly authorizes the U.S. Collateral
Agent to take and hold security for the payment and performance of the
Obligations, to exchange, waive or release any or all such security (with or without
consideration), to enforce or apply such security and direct the order and
manner of any sale thereof in its sole discretion (subject to the New York UCC
and other applicable law) or to release or substitute any one or more other
guarantors or obligors upon or in respect of the Obligations, all without
affecting the obligations of any U.S. Guarantor hereunder.

 

(b) To the fullest extent permitted by
applicable law, each U.S. Guarantor waives any defense based on or arising out
of any defense of either Borrower or any other Loan Party or the
unenforceability of the Obligations or any part thereof from any cause, or the
cessation from any cause of the liability of either Borrower or any other Loan
Party, other than the payment in full in cash of all the Obligations.  The U.S. Collateral Agent and the other
Secured Parties may, at their election, foreclose on any security held by one
or more of them by one or more judicial or nonjudicial sales, accept an
assignment of any such security in lieu of foreclosure, compromise or adjust
any part of the Obligations, make any other accommodation with either Borrower
or any other Loan Party or exercise any other right or remedy available to them
against either Borrower or any other Loan Party, without affecting or impairing
in any way the liability of any U.S. Guarantor hereunder except to the extent
the Obligations have been fully paid in full in cash.  To the fullest extent permitted by applicable law, each U.S.
Guarantor waives any defense arising out of any such election even though such
election operates, pursuant to applicable law, to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of such U.S.
Guarantor against either Borrower or any other Loan Party, as the case may be,
or any security.

 

SECTION 2.04.
Reinstatement.  Each of the U.S.
Guarantors agrees that its guarantee hereunder shall continue to be effective
or be reinstated, as the case may be,

 

9

 

if at any time payment, or any part thereof, of any Obligation is
rescinded or must otherwise be restored by either Collateral Agent or any other
Secured Party upon the bankruptcy or reorganization of either Borrower, any
other Loan Party or otherwise.

 

SECTION 2.05.
Agreement To Pay; Subrogation. 
In furtherance of the foregoing and not in limitation of any other right
that either Collateral Agent or any other Secured Party has at law or in equity
against any U.S. Guarantor by virtue hereof, upon the failure of either
Borrower or any other Loan Party to pay any Obligation when and as the same
shall become due, whether at maturity, by acceleration, after notice of
prepayment or otherwise, each U.S. Guarantor hereby promises to and will
forthwith pay, or cause to be paid, to the U.S. Collateral Agent for distribution
to the applicable Secured Parties in cash the amount of such unpaid
Obligation.  Upon payment by any U.S.
Guarantor of any sums to the U.S. Collateral Agent as provided above, all
rights of such U.S. Guarantor against either Borrower or any other U.S. Guarantor
arising as a result thereof by way of right of subrogation, contribution,
reimbursement, indemnity or otherwise shall in all respects be subject to
Article VI.

 

SECTION 2.06.
Information.  Each U.S. Guarantor
assumes all responsibility for being and keeping itself informed of each
Borrower’s and each other Loan Party’s financial condition and assets, and of
all other circumstances bearing upon the risk of nonpayment of the Obligations
and the nature, scope and extent of the risks that such U.S. Guarantor assumes
and incurs hereunder, and agrees that neither of the Collateral Agents nor any
other Secured Party will have any duty to advise such U.S. Guarantor of
information known to it or any of them regarding such circumstances or risks.

 

ARTICLE III

 

Pledge of Securities

 

SECTION 3.01.
Pledge.  As security for the
payment or performance, as the case may be, in full of the Obligations, each
Grantor hereby pledges to the U.S. Collateral Agent, its successors and
assigns, for the benefit of the Secured Parties, and hereby grants to the U.S.
Collateral Agent, its successors and assigns, for the benefit of the Secured
Parties, a security interest in, all of such Grantor’s right, title and
interest in, to and under (a) Equity Interests owned by it and listed on
Schedule II and any other Equity Interests obtained in the future by such
Grantor and the certificates representing all such Equity Interests (the “Pledged Stock”); provided, however,
that the Pledged Stock shall not include more than 65% of the issued and
outstanding voting Equity Interests of any Foreign Subsidiary (it being
understood and agreed that, for purposes of this Section 3.01, “voting
Equity Interests” shall include Equity Interests that entitle any holder or
holders thereof to vote upon, or otherwise consent to, any action relating to
the management, operations or business of the issuer of such Equity Interests,
including, without limitation, any action to dissolve, liquidate, reorganize,
recapitalize, merge, consolidate, amalgamate or sell all or substantially all
the assets of such issuer); (b)(i) the debt securities listed opposite the
name of such Grantor on Schedule II, (ii) any debt securities in the
future issued to such Grantor and (iii) the promissory notes and any other

 

10

 

instruments evidencing such debt securities (the “Pledged Debt Securities”);
(c) all other property that may be delivered to and held by the U.S.
Collateral Agent pursuant to the terms of this Section 3.01; (d) subject
to Section 3.06, all payments of principal or interest, dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of, in exchange for or upon the conversion of,
and all other Proceeds received in respect of, the securities referred to in
clauses (a) and (b) above; (e) subject to Section 3.06, all
rights and privileges of such Grantor with respect to the securities and other
property referred to in clauses (a), (b), (c) and (d) above; and (f) all
Proceeds of any of the foregoing (the items referred to in clauses (a) through
(f) above being collectively referred to as the “Pledged Collateral”).

 

TO HAVE AND TO HOLD the Pledged Collateral,
together with all right, title, interest, powers, privileges and preferences
pertaining or incidental thereto, unto the U.S. Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties,
forever; subject,
however,
to the terms, covenants and conditions hereinafter set forth.

 

SECTION 3.02.
Delivery of the Pledged Collateral. 
(a)  Each Grantor agrees promptly to deliver or cause to be
delivered to the U.S. Collateral Agent (i) any and all certificates
representing Equity Interests owned by it and listed on Schedule II and
any other Equity Interests of Subsidiaries required to be pledged pursuant to
Section 5.09 of the Credit Agreement (collectively, “Pledged Subsidiary Stock”)
and (ii) following the occurrence and during the continuance of an Event of
Default, at the request of the U.S. Collateral Agent, all Pledged Securities
that are certificated.

 

(b) Each Grantor agrees promptly to deliver
or cause to be delivered to the U.S. Collateral Agent (i) duly executed
promissory notes evidencing all Indebtedness for borrowed money owed to such
Grantor by any person required to be pledged hereunder pursuant to
Section 6.04(c) of the Credit Agreement (“Pledged Intercompany
Notes”) and (ii) following the occurrence and during the
continuance of an Event of Default, at the request of the U.S. Collateral
Agent, any other such Indebtedness that is evidenced by a promissory note.

 

(c) Upon delivery to the U.S. Collateral
Agent, (i) any Pledged Securities required to be delivered to the U.S.
Collateral Agent under this Section 3.02 shall be accompanied by stock
powers or share transfer forms, as the case may be, duly executed in blank or
other instruments of transfer reasonably satisfactory to the U.S. Collateral
Agent and by such other instruments and documents as the U.S. Collateral Agent
may reasonably request and (ii) all other property comprising part of the
Pledged Collateral required to be delivered to the U.S. Collateral Agent under
this Section 3.02 shall be accompanied by proper instruments of assignment
duly executed by the applicable Grantor and such other instruments or documents
as the U.S. Collateral Agent may reasonably request.  Each delivery of Pledged Securities shall be accompanied by a
schedule describing the securities, which schedule shall be attached
hereto as Schedule II and made a part hereof; provided that failure to
attach any such schedule hereto shall not affect the validity of such
pledge of such Pledged Securities.  Each
schedule so delivered shall supplement any prior schedules so delivered.

 

11

 

SECTION 3.03.
Representations, Warranties and Covenants.  The Grantors jointly and severally represent, warrant and
covenant to and with the U.S. Collateral Agent, for the benefit of the Secured
Parties, that:

 

(a) Schedule II correctly
sets forth the percentage of the issued and outstanding shares of each class of
Pledged Subsidiary Stock of the issuer thereof represented by such Pledged
Subsidiary Stock and includes all Pledged Intercompany Notes required to be
pledged hereunder;

 

(b) the Pledged Subsidiary
Stock and Pledged Intercompany Notes have been duly and validly authorized and
issued by the issuers thereof and (i) in the case of Pledged Subsidiary Stock,
are fully paid and nonassessable and (ii) in the case of Pledged Intercompany
Notes, are legal, valid and binding obligations of the issuers thereof;

 

(c) except for the security
interests granted hereunder, each of the Grantors (i) is and, subject to
any transfers made in compliance with the Credit Agreement, will continue to be
the direct owner, beneficially and of record, of the Pledged Securities
indicated on Schedule II as owned by such Grantor, (ii) holds the
same free and clear of all Liens (other than Liens permitted under
Section 6.02 of the Credit Agreement), (iii) will make no assignment,
pledge, hypothecation or transfer of, or create or permit to exist any security
interest in or other Lien on, the Pledged Collateral, other than Liens created
by this Agreement or permitted under Section 6.02 of the Credit Agreement
and transfers made in compliance with the Credit Agreement, and
(iv) subject to Section 3.02 and Section 3.06, will cause any
and all Pledged Collateral, whether for value paid by the Grantor or otherwise,
to be forthwith deposited with the U.S. Collateral Agent and pledged or
assigned hereunder;

 

(d) except for restrictions and
limitations imposed by the Loan Documents or applicable securities laws or
permitted by any Loan Document, the Pledged Subsidiary Stock and Pledged
Intercompany Notes are and will continue to be freely transferable and
assignable, and none of such Pledged Collateral is or will be subject to any
option, right of first refusal, shareholders agreement, charter or by-law (or
bye-law) provisions or contractual restriction of any nature that might
prohibit, impair, delay or otherwise affect the pledge of such Pledged
Collateral hereunder, the sale or disposition thereof pursuant hereto or the
exercise by the U.S. Collateral Agent of rights and remedies hereunder;

 

(e) each of the Grantors
(i) has the power and authority to pledge the Pledged Collateral pledged
by it hereunder in the manner hereby done or contemplated and (ii) will, in the
exercise of its reasonable business judgment, defend its title or interest
thereto or therein against any and all Liens (other than any Lien permitted
under Section 6.02 of the Credit Agreement), however arising, of all
persons whomsoever;

 

12

 

(f) no consent or approval of
any Governmental Authority, any securities exchange or any other person was or
is necessary to the validity of the pledge of the Pledged Subsidiary Stock and
Pledged Intercompany Notes effected hereby (other than such as have been
obtained and are in full force and effect);

 

(g) by virtue of the execution
and delivery by the Grantors of this Agreement, when any Pledged Securities are
delivered to the U.S. Collateral Agent in accordance with this Agreement, the
U.S. Collateral Agent will obtain a legal, valid and (subject to a Lien permitted
under Section 6.02(d) of the Credit Agreement) perfected first priority
lien upon and security interest in such Pledged Securities as security for the
payment and performance of the Obligations; and

 

(h) the pledge effected hereby
is effective to vest in the U.S. Collateral Agent, for the benefit of the
Secured Parties, the rights of the U.S. Collateral Agent in the Pledged
Collateral as set forth herein.

 

SECTION 3.04.
[INTENTIONALLY OMITTED]

 

SECTION 3.05.
Registration in Nominee Name; Denominations.  The U.S. Collateral Agent, on behalf of the Secured Parties,
shall hold the Pledged Securities in the name of the applicable Grantor,
endorsed or assigned in blank or in favor of the U.S. Collateral Agent, but following
the occurrence and during the continuance of an Event of Default shall have the
right (in its sole and absolute discretion ) to hold the Pledged Securities in
its own name as pledgee, or in the name of its nominee (as pledgee or as
sub-agent).  Each Grantor will promptly
give to the U.S. Collateral Agent copies of any notices or other communications
received by it with respect to Pledged Securities registered in the name of
such Grantor.  Following the occurrence
and during the continuance of an Event of Default, the U.S. Collateral Agent shall
at all times have the right to exchange the certificates representing Pledged
Securities for certificates of smaller or larger denominations for any purpose
consistent with this Agreement.

 

SECTION 3.06.
Voting Rights; Dividends and Interest, etc.  (a)  Unless and until an Event of Default shall have
occurred and be continuing and the U.S. Collateral Agent shall have given the
Grantors notice of its intent to exercise its rights under this Agreement
(which notice shall be deemed to have been given immediately upon the
occurrence of an Event of Default with respect to Holdings or either Borrower
under paragraph (g) or (h) of Article VII of the Credit Agreement):

 

(i)            Each Grantor shall be
entitled to exercise any and all voting and/or other consensual rights and
powers inuring to an owner of Pledged Securities or any part thereof for any
purpose consistent with the terms of this Agreement, the Credit Agreement and
the other Loan Documents; provided,
however, that such rights and
powers shall not be exercised in any manner that could materially and adversely
affect the rights inuring to a holder of any Pledged Securities or the rights
and remedies of any of the U.S. Collateral Agent or the other Secured Parties
under this Agreement or

 

13

 

the Credit Agreement or any other Loan
Document or the ability of the Secured Parties to exercise the same.

 

(ii)           The U.S. Collateral
Agent shall execute and deliver to each Grantor, or cause to be executed and
delivered to each Grantor, all such proxies, powers of attorney and other
instruments as a Grantor may reasonably request for the purpose of enabling
such Grantor to exercise the voting and/or consensual rights and powers it is
entitled to exercise pursuant to subparagraph (i) above.

 

(iii)          Each Grantor shall be
entitled to receive and retain any and all dividends, interest, principal and
other distributions paid on or distributed in respect of the Pledged Securities
to the extent and only to the extent that such dividends, interest, principal
and other distributions are permitted by, and otherwise paid or distributed in
accordance with, the terms and conditions of the Credit Agreement and the other
Loan Documents; provided, however, that any noncash dividends,
interest, principal or other distributions that would constitute Pledged Stock
or Pledged Debt Securities, whether resulting from a subdivision, combination
or reclassification of the outstanding Equity Interests of the issuer of any
Pledged Securities or received in exchange for Pledged Securities or any part
thereof, or in redemption thereof, or as a result of any merger, amalgamation,
consolidation, acquisition or other exchange of assets to which such issuer may
be a party or otherwise, shall be and become part of the Pledged Collateral,
and, if received by any Grantor, shall not be commingled by such Grantor with
any of its other funds or property but shall be held separate and apart
therefrom, shall be held in trust for the benefit of the U.S. Collateral Agent
and, to the extent required under Section 3.02, shall be forthwith
delivered to the U.S. Collateral Agent in the same form as so received (with
any necessary endorsement).  This
paragraph (iii) shall not apply to dividends between or among the U.S. Borrower
and the U.S. Subsidiary Guarantors only of property subject to a perfected
security interest under this Agreement; provided
that the U.S. Borrower notifies the U.S. Collateral Agent in writing,
specifically referring to this Section 3.06 at the time of such dividend
and takes any actions the U.S. Collateral Agent reasonably specifies to ensure
the continuance of its perfected security interest in such property under this
Agreement.

 

(b) Upon the occurrence and during the
continuance of an Event of Default, after the U.S. Collateral Agent shall have
notified (or shall be deemed to have notified) the Grantors of the suspension
of their rights under paragraph (a)(iii) of this Section 3.06, then all
rights of any Grantor to dividends, interest, principal or other distributions
that such Grantor is authorized to receive pursuant to paragraph (a)(iii)
of this Section 3.06 shall cease, and all such rights shall thereupon
become vested in the U.S. Collateral Agent, which shall have the sole and
exclusive right and authority to receive and retain such dividends, interest,
principal or other distributions as Pledged

 

14

 

Collateral hereunder.  All
dividends, interest, principal or other distributions received by any Grantor
contrary to the provisions of this Section 3.06 shall be held in trust for
the benefit of the U.S. Collateral Agent, shall be segregated from other
property or funds of such Grantor and shall be forthwith delivered to the U.S.
Collateral Agent upon demand in the same form as so received (with any
necessary endorsement).  Any and all
money and other property paid over to or received by the U.S. Collateral Agent
pursuant to the provisions of this paragraph (b) shall be retained by the U.S.
Collateral Agent in an account (which may be a non-interest bearing account) to
be established by the U.S. Collateral Agent upon receipt of such money or other
property and shall be applied in accordance with the provisions of
Section 5.02.  After all Events of
Default have been cured or waived and the applicable Grantor or Grantors have
delivered to the General Administrative Agent certificates to that effect, the
U.S. Collateral Agent shall, promptly after all such Events of Default have
been cured or waived, repay to each Grantor all dividends, interest, principal
or other distributions that such Grantor would otherwise be permitted to retain
pursuant to the terms of paragraph (a)(iii) of this Section 3.06 and that
remain in such account (it being acknowledged and agreed that the U.S.
Collateral Agent shall not have any obligation to invest any monies or other
properties contained in such account).

 

(c) Upon the occurrence and during the
continuance of an Event of Default, after the U.S. Collateral Agent shall have
notified (or shall be deemed to have notified) the Grantors of the suspension
of their rights under paragraph (a)(i) of this Section 3.06, then all
rights of any Grantor to exercise the voting and consensual rights and powers
it is entitled to exercise pursuant to paragraph (a)(i) of this
Section 3.06, and the obligations of the U.S. Collateral Agent under
paragraph (a)(ii) of this Section 3.06, shall cease, and all such
rights shall thereupon become vested in the U.S. Collateral Agent, which shall
have the sole and exclusive right and authority to exercise such voting and
consensual rights and powers; provided that, the U.S. Collateral Agent
shall have the right from time to time during the continuance of an Event of
Default to permit the Grantors to exercise such rights.

 

(d) Any notice given by the U.S. Collateral
Agent to the Grantors exercising its rights under paragraph (a) of this
Section 3.06 (i) may be given by telephone if promptly confirmed in
writing, (ii) may be given to one or more of the Grantors at the same or
different times and (iii) may suspend the rights of the Grantors under
paragraph (a)(i) or paragraph (a)(iii) in part without suspending all such
rights (as specified by the U.S. Collateral Agent in its reasonable discretion)
and without waiving or otherwise affecting the U.S. Collateral Agent’s rights
to give additional notices from time to time suspending other rights so long as
an Event of Default has occurred and is continuing.

 

ARTICLE IV

 

Security Interests in Personal Property

 

SECTION 4.01.
Security Interest. 
(a)  As security for the payment or performance, as the case
may be, in full of the Obligations, each Grantor hereby assigns

 

15

 

and pledges to the U.S. Collateral Agent, its successors and assigns,
for the ratable benefit of the Secured Parties, and hereby grants to the U.S.
Collateral Agent, its successors and assigns, for the ratable benefit of the
Secured Parties, a security interest (the “Security Interest”), in all right, title or
interest in or to any and all of the following assets and properties now owned
or at any time hereafter acquired by such Grantor or in which such Grantor now
has or at any time in the future may acquire any right, title or interest
(collectively, subject to the last sentence of this Section 4.01(a), the “Article 9 Collateral”):

 

(i)            all Accounts;

 

(ii)           all Chattel Paper;

 

(iii)          all cash and Deposit
Accounts;

 

(iv)          all Documents;

 

(v)           all Equipment;

 

(vi)          all General Intangibles;

 

(vii)         all Instruments;

 

(viii)        all Inventory;

 

(ix)           all Investment
Property;

 

(x)            all Letter-of-Credit
Rights;

 

(xi)           all books and records
pertaining to the Article 9 Collateral; and

 

(xii)          to the extent not
otherwise included, all Proceeds and products of any and all of the foregoing
and all collateral security and guarantees given by any person with respect to
any of the foregoing.

 

Notwithstanding the foregoing,
“Article 9 Collateral” shall not include any (i) Equipment subject to
purchase money security interests, capital leases or synthetic leases, in each
case, only to the extent permitted under the Credit Agreement; (ii) motor
vehicles; (iii) leasehold interests; and (iv) Accounts, General
Intangibles, or other rights described above arising under any contracts,
instruments, licenses or other documents as to which the grant of a security
interest would constitute a violation of a valid and enforceable restriction in
favor of a third party on such grant, notwithstanding applicable
anti-assignment provisions under the New York UCC.

 

(b) Each Grantor hereby irrevocably
authorizes the U.S. Collateral Agent at any time and from time to time to file
in any relevant jurisdiction any initial financing statements (including
fixture filings) with respect to the Article 9 Collateral or any part
thereof and amendments thereto that (i) indicate the Article 9 Collateral
as all assets of

 

16

 

such Grantor or words of similar effect, and (ii) contain the
information required by Article 9 of the Uniform Commercial Code or
similar legislation of each applicable jurisdiction for the filing of any
financing statement or amendment, including 
(A) whether such Grantor is an organization, the type of organization
and any organizational identification number issued to such Grantor and (B) in
the case of a financing statement filed as a fixture filing, a sufficient
description of the real property to which such Article 9 Collateral
relates.  Each Grantor agrees to provide
such information to the U.S. Collateral Agent promptly upon request.

 

The U.S. Collateral Agent is further
authorized to file with the United States Patent and Trademark Office or United
States Copyright Office (or any successor office or any similar office in any
other country) or to file such documents as may be necessary or advisable for
the purpose of perfecting, confirming, continuing, enforcing or protecting the
Security Interest granted by each Grantor, without the signature of any
Grantor, and naming any Grantor or the Grantors as debtors and the U.S.
Collateral Agent as secured party.

 

(c) The Security Interest is granted as
security only and shall not subject the U.S. Collateral Agent or any other
Secured Party to, or in any way alter or modify, any obligation or liability of
any Grantor with respect to or arising out of the Article 9 Collateral.

 

SECTION 4.02.
Representations and Warranties. 
Each Grantor represents and warrants to the U.S. Collateral Agent and
the Secured Parties that:

 

(a) It has good and valid
rights in and title to the Article 9 Collateral with respect to which it
has purported to grant a Security Interest hereunder and has full power and
authority to grant to the U.S. Collateral Agent the Security Interest in such
Article 9 Collateral pursuant hereto and to execute, deliver and perform
its obligations in accordance with the terms of this Agreement, without the
consent or approval of any other person other than any consent or approval that
has been obtained.

 

(b) The Perfection Certificate
has been duly prepared, completed and executed and the information set forth
therein (including (x) the exact legal name of each Grantor and (y) the
jurisdiction of organization of each Grantor) is correct and complete as of the
Closing Date.  Uniform Commercial Code
financing statements (including fixture filings, as applicable) or other
appropriate filings, recordings or registrations containing a description of
the Article 9 Collateral have been prepared by the U.S. Collateral Agent
based upon the information provided to the General Administrative Agent and the
Secured Parties in the Perfection Certificate for filing in each governmental,
municipal or other office specified in Schedule 2 to the Perfection
Certificate (or specified by notice from the U.S. Borrower to the General
Administrative Agent after the Closing Date in the case of filings, recordings
or registrations required by Sections 5.06 or 5.09 of the Credit
Agreement, which are all the filings, recordings and registrations (other than
filings required to be made in the United States Patent and Trademark Office

 

17

 

and the United States Copyright Office in
order to perfect the Security Interest in Article 9 Collateral consisting
of United States Patents, Trademarks and Copyrights) that are necessary as of
the Closing Date to establish a legal, valid and perfected security interest in
favor of the U.S. Collateral Agent (for the ratable benefit of the Secured
Parties) in respect of all Article 9 Collateral in which the Security
Interest may be perfected by filing, recording or registration in the United
States (or any political subdivision thereof) and its territories and
possessions, and, as of the Closing Date, no further or subsequent filing,
refiling, recording, rerecording, registration or reregistration is necessary
in any such jurisdiction, except as provided under applicable law with respect
to the filing of continuation statements. 
Each Grantor represents and warrants that a fully executed agreement in
the form hereof and containing a description of all Article 9 Collateral
consisting of Intellectual Property with respect to United States Patents and
United States registered Trademarks (and Trademarks for which United States
registration applications are pending) and United States registered Copyrights
have been delivered to the U.S. Collateral Agent for recording by the United
States Patent and Trademark Office and the United States Copyright Office
pursuant to 35 U.S.C. §261, 15 U.S.C. §1060 or
17 U.S.C. §205 and the regulations thereunder, as applicable, and
otherwise as may be required pursuant to the laws of any other necessary
jurisdiction, to protect the validity of and to establish a legal, valid and
perfected security interest in favor of the U.S. Collateral Agent (for the
ratable benefit of the Secured Parties) in respect of all Article 9
Collateral consisting of Patents, Trademarks and Copyrights in which a security
interest may be perfected by filing, recording or registration in the United
States (or any political subdivision thereof) and its territories and
possessions, and, as of the Closing Date, no further or subsequent filing,
refiling, recording, rerecording, registration or reregistration is necessary
(other than such actions as are necessary to perfect the Security Interest with
respect to any Article 9 Collateral consisting of Patents, Trademarks and
Copyrights (or registration or application for registration thereof) acquired
or developed after the date hereof).

 

(c) The Security Interest
constitutes (i) a legal and valid security interest in all the
Article 9 Collateral securing the payment and performance of the
Obligations, (ii) subject to the filings described in
Section 4.02(b), a perfected security interest in all Article 9
Collateral in which a security interest may be perfected by filing, recording
or registering a financing statement or analogous document in the United States
(or any political subdivision thereof) and its territories and possessions
pursuant to the Uniform Commercial Code or other applicable law in such
jurisdictions and (iii) a security interest that shall be perfected in all
Article 9 Collateral in which a security interest may be perfected upon
the receipt and recording of this Agreement with the United States Patent and
Trademark Office and the United States Copyright Office, as applicable.  The Security Interest is and shall be prior
to any other Lien on any of the Article 9 Collateral, other than Liens
expressly permitted pursuant to Section 6.02 of the Credit Agreement.

 

18

 

(d) The Article 9
Collateral is owned by the Grantors free and clear of any Lien, except for
Liens expressly permitted pursuant to Section 6.02 of the Credit
Agreement.  None of the Grantors has filed
or consented to the filing of (i) any financing statement or analogous
document under the Uniform Commercial Code or any other applicable laws
covering any Article 9 Collateral, (ii) any assignment in which any
Grantor assigns any Collateral or any security agreement or similar instrument
covering any Article 9 Collateral with the United States Patent and
Trademark Office or the United States Copyright Office or (iii) any
assignment in which any Grantor assigns any Article 9 Collateral or any
security agreement or similar instrument covering any Article 9 Collateral
with any foreign governmental, municipal or other office, which financing
statement or analogous document, assignment, security agreement or similar
instrument is still in effect, except, in each case, for Liens expressly
permitted pursuant to Section 6.02 of the Credit Agreement.  None of the Grantors hold any Commercial
Tort Claim except as indicated on the Perfection Certificate.

 

SECTION 4.03.
Covenants.  (a) Each Grantor
agrees to maintain, at its own cost and expense, such complete and accurate
records with respect to the Article 9 Collateral owned by it as is
consistent with its current practices and in accordance with such prudent and
standard practices used in industries that are the same as or similar to those
in which such Grantor is engaged, but in any event to include complete
accounting records indicating all payments and proceeds received with respect
to any part of the Article 9 Collateral, and, at such time or times as the
U.S. Collateral Agent may reasonably request, promptly to prepare and deliver
to the U.S. Collateral Agent a duly certified schedule or schedules in
form and detail satisfactory to the U.S. Collateral Agent showing the identity,
amount and location of any and all Article 9 Collateral.

 

(b) Each Grantor shall, at its own expense,
take any and all actions reasonably necessary to defend title to all material
portions of the Article 9 Collateral against all persons and to defend the
Security Interest of the U.S. Collateral Agent in the Article 9 Collateral
and the priority thereof against any Lien not expressly permitted pursuant to
Section 6.02 of the Credit Agreement. 
Nothing in this Agreement shall prevent any Grantor from discontinuing
the operation or maintenance of any of its assets or properties if such
discontinuance is, in the exercise of its reasonable business judgment,
desirable in the conduct of its business and is permitted under the Credit
Agreement.

 

(c) Each Grantor agrees, at its own expense,
to execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the U.S. Collateral
Agent may from time to time reasonably request to preserve, protect and perfect
the Security Interest and the rights and remedies created hereby, including the
payment of any fees and Taxes required in connection with the execution and
delivery of this Agreement, the granting of the Security Interest and the
filing of any financing statements (including fixture filings) or other
documents in connection herewith or therewith. 
If, upon the occurrence and during the continuance of an Event of
Default, any amount payable to any Grantor under or in connection with any of
the Article 9 Collateral shall be or become evidenced by any promissory
note or other

 

19

 

instrument in excess of $250,000, such note or instrument, at the
request of the U.S. Collateral Agent, shall be promptly pledged and delivered
to the U.S. Collateral Agent, duly endorsed in a manner satisfactory to the
U.S. Collateral Agent.

 

Without limiting the generality of the
foregoing, each Grantor hereby authorizes the U.S. Collateral Agent, with
prompt notice thereof to the Grantors, to supplement this Agreement by
supplementing Schedule III or adding additional schedules hereto to
specifically identify any asset or item that may, in the U.S. Collateral
Agent’s judgment, constitute material Copyrights, Licenses, Patents or
Trademarks; provided
that any Grantor shall have the right, exercisable within 20 days after it
has been notified by the U.S. Collateral Agent of the specific identification
of such Collateral, to advise the U.S. Collateral Agent in writing of any
material inaccuracy of the representations and warranties made by such Grantor
hereunder with respect to such Collateral. 
Each Grantor agrees that it will use its commercially reasonably efforts
to take such action as shall be necessary in order that all representations and
warranties hereunder shall be true and correct in all material respects with
respect to such Collateral within 45 days after the date it has been
notified by the U.S. Collateral Agent of the specific identification of such
Collateral.

 

(d) Subject to and in accordance with the provisions
of Section 5.07 of the Credit Agreement, the U.S. Collateral Agent and
such persons as the U.S. Collateral Agent may designate shall have the right,
at the Grantors’ own cost and expense, to inspect the Article 9
Collateral, all records related thereto (and to make extracts and copies from
such records) and the premises upon which any of the Article 9 Collateral
is located, to discuss the Grantors’ affairs with the officers of the Grantors
and their independent accountants and to verify under reasonable procedures the
validity, amount, quality, quantity, value, condition and status of, or any
other matter relating to, the Article 9 Collateral, including, in the case
of Accounts or Article 9 Collateral in the possession of any third person,
by contacting Account Debtors (only upon the occurrence and during the
continuance of an Event of Default) or the third person possessing such
Article 9 Collateral for the purpose of making such a verification. The
U.S. Collateral Agent shall have the absolute right to share any information it
gains from such inspection or verification with any Secured Party; provided
that the U.S. Collateral Agent and each Secured Party shall maintain the
confidentiality of such information as provided in Section 9.17 of the
Credit Agreement.

 

(e) At its option upon the occurrence and
during the continuance of an Event of Default, the U.S. Collateral Agent may
discharge past due Taxes, assessments, charges, fees, Liens, security interests
or other encumbrances at any time levied or placed on the Article 9
Collateral and not expressly permitted pursuant to Section 6.02 of the
Credit Agreement, except for Taxes, assessments, charges, fees, Liens, security
interests or other encumbrances that are being contested in good faith by
appropriate proceedings and for which a Grantor shall have set aside on its
books adequate reserves, and may pay for the maintenance and preservation of
the Article 9 Collateral to the extent any Grantor fails to do so as
required by the Credit Agreement or this Agreement, and each Grantor jointly
and severally agrees to reimburse the U.S. Collateral Agent on demand for any
payment made or any reasonable expense incurred by the U.S. Collateral Agent
pursuant

 

20

 

to the foregoing authorization; provided, however, that nothing in
this paragraph shall be interpreted as excusing any Grantor from the
performance of, or imposing any obligation on the U.S. Collateral Agent or any
Secured Party to cure or perform, any covenants or other promises of any
Grantor with respect to Taxes, assessments, charges, fees, Liens, security
interests or other encumbrances and maintenance as set forth herein or in the
other Loan Documents.

 

(f) If at any time any Grantor shall take a
security interest in any property of an Account Debtor or any other person to
secure payment and performance of an Account, such Grantor shall, to the extent
not already subject to the security interest created under Section 3.01 or
4.01, promptly assign such security interest to the U.S. Collateral Agent.  Such assignment need not be filed of public
record unless necessary to continue the perfected status of the security
interest against creditors of and transferees from the Account Debtor or other
person granting the security interest.

 

(g) Each Grantor shall remain liable to
observe and perform all the conditions and obligations to be observed and
performed by it under each contract, agreement or instrument relating to the
Article 9 Collateral, all in accordance with the terms and conditions
thereof, and each Grantor jointly and severally agrees to indemnify and hold
harmless the U.S. Collateral Agent and the Secured Parties from and against any
and all liability for such performance.

 

(h) None of the Grantors shall make or permit
to be made an assignment, pledge or hypothecation of the Article 9
Collateral or shall grant any other Lien in respect of the Article 9
Collateral, except as expressly permitted by Section 6.02 of the Credit
Agreement.  None of the Grantors shall
make or permit to be made any transfer of the Article 9 Collateral and
each Grantor shall remain at all times in possession or otherwise in control of
the Article 9 Collateral owned by it, except to the extent not prohibited
by the Credit Agreement.

 

(i) None of the Grantors will, without the
U.S. Collateral Agent’s prior written consent, grant any extension of the time
of payment of any Accounts included in the Article 9 Collateral,
compromise, compound or settle the same for less than the full amount thereof,
release, wholly or partly, any person liable for the payment thereof or allow
any credit or discount whatsoever thereon, other than extensions, credits,
discounts, compromises, compoundings or settlements granted or made in the
ordinary course of business and consistent with its current practices and in
accordance with such standard practices used in industries that are the same as
or similar to those in which such Grantor is engaged.

 

(j) Each Grantor irrevocably makes,
constitutes and appoints the U.S. Collateral Agent (and all officers, employees
or agents designated by the U.S. Collateral Agent) as such Grantor’s true and
lawful agent (and attorney-in-fact) for the purpose, upon the occurrence and
during the continuance of an Event of Default, of making, settling and
adjusting claims in respect of Article 9 Collateral under policies of
insurance, endorsing the name of such Grantor on any check, draft, instrument
or other item of payment for the proceeds of such policies of insurance and for
making all determinations

 

21

 

and decisions with respect thereto. 
In the event that any Grantor at any time or times shall fail to obtain
or maintain any of the policies of insurance required hereby or under the
Credit Agreement or to pay any premium in whole or part relating thereto, the
U.S. Collateral Agent may, without waiving or releasing any obligation or
liability of the Grantors hereunder or any Default or Event of Default, in its
sole discretion, obtain and maintain such policies of insurance and pay such
premium and take any other actions with respect thereto as the U.S. Collateral
Agent deems reasonably advisable. All sums disbursed by the U.S. Collateral
Agent in connection with this paragraph, including reasonable and documented
attorneys’ fees, court costs, expenses and other charges relating thereto,
shall be payable, upon demand, by the Grantors to the U.S. Collateral Agent and
shall be additional Obligations secured hereby.

 

(k) Each Grantor shall maintain, in form and
manner reasonably satisfactory to the U.S. Collateral Agent, records of its
Chattel Paper and its books, records and documents evidencing or pertaining
thereto.

 

SECTION 4.04.
Other Actions.  In order to
further insure the attachment, perfection and priority of, and the ability of
the U.S. Collateral Agent to enforce, the U.S. Collateral Agent’s security
interest in the Article 9 Collateral, each Grantor agrees, in each case at
such Grantor’s own expense, to take the following actions with respect to the
following Article 9 Collateral:

 

(a) Instruments. If such
Grantor shall at any time hold or acquire, following the occurrence and during
the continuance of an Event of Default, any Instruments with a value in excess
of $250,000, such Grantor, at the request of this U.S. Collateral Agent, shall
forthwith endorse, assign and deliver the same to the U.S. Collateral Agent,
accompanied by such instruments of transfer or assignment duly executed in
blank as the U.S. Collateral Agent may from time to time specify.

 

(b) Deposit Accounts.
For each Deposit Account that any Grantor at any time opens or maintains
following the occurrence and during the continuation of an Event of Default,
such Grantor shall cause the depositary bank to agree to comply at any time
with instructions from the U.S. Collateral Agent to such depositary bank
directing the disposition of funds from time to time credited to such Deposit
Account, without further consent of such Grantor or any other person, pursuant
to an agreement in form and substance reasonably satisfactory to the U.S.
Collateral Agent, such depository bank and such Grantor.  The U.S. Collateral Agent agrees with each
Grantor that the U.S. Collateral Agent shall not give any such instructions or
withhold any withdrawal rights from any Grantor, unless an Event of Default has
occurred and is continuing, or, after giving effect to any withdrawal, would
occur. The provisions of this paragraph shall not apply to (A) any Deposit
Account for which any Grantor, the depositary bank and the U.S. Collateral
Agent have entered into a cash collateral agreement specially negotiated among
such Grantor, the depositary bank and the U.S. Collateral Agent for the
specific purpose set forth therein, (B) Deposit Accounts for which the
U.S. Collateral Agent is the depositary and (C) local Deposit Accounts
opened or

 

22

 

maintained by a Grantor for “petty cash” or
similar purposes with a monthly average balance of less than $1,000,000.

 

(c) Investment Property.
Except to the extent otherwise provided in Article III, if any Grantor
shall at any time following the occurrence and during the continuation of an
Event of Default hold or acquire any certificated securities with a value in
excess of $250,000, such Grantor shall forthwith endorse, assign and deliver
the same to the U.S. Collateral Agent, accompanied by such instruments of
transfer or assignment duly executed in blank as the U.S. Collateral Agent may
from time to time reasonably specify. 
If any securities now or hereafter acquired by any Grantor with a value
in excess of $250,000 are uncertificated and are issued to such Grantor or its
nominee directly by the issuer thereof, such Grantor shall, following the
occurrence and during the continuation of an Event of Default, promptly notify
the U.S. Collateral Agent thereof and, at the U.S. Collateral Agent’s request
and option, pursuant to an agreement in form and substance satisfactory to the
U.S. Collateral Agent and the issuer of such security, either (a) cause
the issuer to agree to comply with instructions from the U.S. Collateral Agent
as to such securities, without further consent of any Grantor or such nominee,
or (b) arrange for the U.S. Collateral Agent to become the registered
owner of the securities as security for the Obligations.  If any securities, whether certificated or
uncertificated, or other Investment Property now or hereafter acquired by any
Grantor with a value in excess of $250,000 are held by such Grantor or its
nominee through a Securities Intermediary or Commodities Intermediary, such
Grantor, following the occurrence and during the continuation of an Event of
Default, shall promptly notify the U.S. Collateral Agent thereof and, at the
U.S. Collateral Agent’s request and option, pursuant to an agreement in form
and substance reasonably satisfactory to the U.S. Collateral Agent and such
Securities Intermediary or Commodities Intermediary, either (a) cause such
Securities Intermediary or Commodities Intermediary, as the case may be, to
agree to comply with Entitlement Orders or other instructions from the U.S.
Collateral Agent to such Securities Intermediary as to such securities or other
Investment Property, or (as the case may be) to apply any value distributed on
account of any commodity contract as directed by the U.S. Collateral Agent to
such Commodities Intermediary, in each case without further consent of any
Grantor or such nominee, or (b) in the case of Financial Assets (as
governed by Article 8 of the New York UCC) or other Investment Property
held through a Securities Intermediary, arrange for the U.S. Collateral Agent
to become an Entitlement Holder with respect to such Investment Property, with
the Grantor being permitted, only with the consent of the U.S. Collateral
Agent, to exercise rights to withdraw or otherwise deal with such Investment
Property.  The U.S. Collateral Agent
agrees with each of the Grantors that the U.S. Collateral Agent shall not give
any such Entitlement Orders or instructions or directions to any such issuer,
Securities Intermediary or Commodities Intermediary, and shall not withhold its
consent to the exercise of any withdrawal or dealing rights by any Grantor,
unless an Event of Default has occurred and is continuing, or, after giving
effect to any such investment and withdrawal rights would occur. The provisions
of this paragraph shall not apply to any Financial Assets credited to a

 

23

 

Securities Account for which the U.S. Collateral
Agent is the Securities Intermediary.

 

(d) Electronic Chattel Paper
and Transferable Records. If any Grantor at any time holds or acquires,
following the occurrence and during the continuation of an Event of Default, an
interest in any Electronic Chattel Paper or any “transferable record,” as
that term is defined in Section 201 of the U.S. Federal Electronic
Signatures in Global and National Commerce Act, or in Section 16 of the
U.S. Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
with a value in excess of $250,000, such Grantor shall promptly notify the U.S.
Collateral Agent thereof and, at the request of the U.S. Collateral Agent,
shall take such action as the U.S. Collateral Agent may reasonably request to
vest in the U.S. Collateral Agent control under New York UCC
Section 9-105 of such Electronic Chattel Paper or control under
Section 201 of the U.S. Federal Electronic Signatures in Global and
National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic
Transactions Act, as so in effect in such jurisdiction, of such transferable
record.  The U.S. Collateral Agent
agrees with such Grantor that the U.S. Collateral Agent will arrange, pursuant
to procedures reasonably satisfactory to the U.S. Collateral Agent and so long
as such procedures will not result in the U.S. Collateral Agent’s loss of
control, for the Grantor to make alterations to the Electronic Chattel Paper or
transferable record permitted under UCC Section 9-105 or, as the case may
be, Section 201 of the U.S. Federal Electronic Signatures in Global and
National Commerce Act or Section 16 of the U.S. Uniform Electronic
Transactions Act for a party in control to allow without loss of control,
unless an Event of Default has occurred and is continuing or would occur after
taking into account any action by such Grantor with respect to such Electronic
Chattel Paper or transferable record.

 

(e) Letter-of-Credit Rights.
If any Grantor is at any time a beneficiary under a letter of credit now or hereafter
issued in favor of such Grantor with respect to which the Security Interest is
not otherwise perfected under the New York UCC, such Grantor, following the
occurrence and during the continuation of an Event of Default, shall promptly
notify the U.S. Collateral Agent thereof and, at the request and option of the
U.S. Collateral Agent, such Grantor shall, pursuant to an agreement in form and
substance reasonably satisfactory to the U.S. Collateral Agent, either
(i) arrange for the issuer and any confirmer of such letter of credit to
consent to an assignment to the U.S. Collateral Agent of the proceeds of any
drawing under the letter of credit or (ii) arrange for the U.S. Collateral
Agent to become the transferee beneficiary of the letter of credit, with the
U.S. Collateral Agent agreeing, in each case, that the proceeds of any drawing
under the letter of credit are to be paid to the applicable Grantor unless an
Event of Default has occurred or is continuing.

 

(f) Commercial Tort Claims.
If any Grantor shall at any time hold or acquire a Commercial Tort Claim that
has a reasonable possibility of yielding net proceeds in excess of $2,500,000,
the Grantor shall promptly notify the U.S. Collateral Agent thereof in a
writing signed by such Grantor including a summary

 

24

 

description of such claim and grant to the
U.S. Collateral Agent in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance reasonably satisfactory to the U.S. Collateral Agent.

 

SECTION 4.05.
Covenants Regarding Patent, Trademark and Copyright Collateral.  (a) Each Grantor agrees that it will not,
and will not permit any of its licensees to, do any act, or omit do to any act,
whereby any Patent that is material to the conduct of such Grantor’s business
could reasonably be expected to become invalidated or dedicated to the public,
and agrees that it shall continue to mark any products covered by a Patent with
the relevant patent number as necessary and sufficient to establish and
preserve its material rights under applicable patent laws.

 

(b) Each Grantor (either itself or through
its licensees or its sublicensees) will, for each Trademark material to the
conduct of such Grantor’s business, (i) maintain such Trademark in full
force free from any claim of abandonment or invalidity for non-use,
(ii) use commercially reasonable efforts to maintain the quality of
products and services offered under such Trademark, (iii) display such
Trademark with notice of Federal or foreign registration to the extent
necessary and sufficient, in the exercise of its reasonable business judgment,
to establish and preserve its material rights under applicable law and (iv) not
knowingly use or knowingly permit the use of such Trademark in violation in any
material respects of any third party rights.

 

(c) Each Grantor (either itself or through
its licensees or sublicensees) will, for each work covered by a material
Copyright, continue to publish, reproduce, display, adopt and distribute the
work with appropriate copyright notice as necessary and sufficient in the
exercise of its reasonable business judgment, to establish and preserve its
material rights under applicable copyright laws.

 

(d) Each Grantor shall notify the U.S.
Collateral Agent promptly if it knows or has reason to know that any Patent,
Trademark or Copyright material to the conduct of its business could reasonably
be expected to become abandoned, lost or dedicated to the public, or of any
material adverse determination or development (including the institution of, or
any such determination or development in, any proceeding in the United States
Patent and Trademark Office, United States Copyright Office or any court or
similar office of any country) regarding such Grantor’s ownership of any
Patent, Trademark or Copyright, its right to register the same, or its right to
keep and maintain the same.

 

(e) In no event shall any Grantor, either
itself or through any agent, employee, licensee or designee, file an
application for any Patent, Trademark or Copyright (or for the registration of
any Trademark or Copyright) material to the conduct of such Grantor’s business
with the United States Patent and Trademark Office, United States Copyright
Office or any office or agency in any political subdivision of the United
States or in any other country or any political subdivision thereof, unless it
promptly informs the U.S. Collateral Agent, and, upon request of the U.S.
Collateral Agent, executes and delivers any and all agreements, instruments,
documents and papers as the

 

25

 

U.S. Collateral Agent may reasonably request to evidence the U.S.
Collateral Agent’s security interest in such Patent, Trademark or Copyright,
and each Grantor hereby appoints the U.S. Collateral Agent as its
attorney-in-fact to execute and file such reasonably necessary writings for the
foregoing purposes, all acts of such attorney being hereby ratified and confirmed;
such power, being coupled with an interest, is irrevocable.

 

(f) Each Grantor will take all necessary
steps that it deems appropriate under the circumstances and are consistent with
the practice in any proceeding before the United States Patent and Trademark
Office, United States Copyright Office or any office or agency in any political
subdivision of the United States or in any other country or any political
subdivision thereof, to maintain and pursue each material application relating
to the Patents, Trademarks and/or Copyrights (and to obtain the relevant grant
or registration) and to maintain each issued Patent and each registration of
the Trademarks and Copyrights that is material to the conduct of any Grantor’s
business, including timely filings of applications for renewal, affidavits of
use, affidavits of incontestability and payment of maintenance fees, and, if
consistent with good business judgment, to initiate opposition, interference
and cancelation proceedings against third parties.

 

(g) In the event that any Grantor becomes
aware that any Article 9 Collateral consisting of a Patent, Trademark or
Copyright material to the conduct of any Grantor’s business has been or is
about to be infringed, misappropriated or diluted by a third party in any
material respect, such Grantor promptly shall notify the U.S. Collateral Agent
and shall, if consistent with good business judgment, promptly sue for
infringement, misappropriation or dilution and to recover any and all damages
for such infringement, misappropriation or dilution, and take such other
actions as are appropriate under the circumstances to protect such
Article 9 Collateral.  Such Grantor
may discontinue or settle any such suit or other action if the Grantor deems
such discontinuance or settlement to be appropriate in its reasonable business
judgment.

 

(h) Upon the occurrence and during the
continuance of an Event of Default, each Grantor shall, at the request of the
U.S. Collateral Agent, use its commercially reasonable efforts to obtain all requisite
consents or approvals by the licensor of each Copyright License, Patent License
or Trademark License to effect the assignment of all such Grantor’s right,
title and interest thereunder to the U.S. Collateral Agent or its designee.

 

ARTICLE V

 

Remedies

 

SECTION 5.01.
Remedies upon Default.  Upon the
occurrence and during the continuance of an Event of Default, it is agreed that
the U.S. Collateral Agent shall have the right to take any of or all the
following actions at the same or different times: (a) with respect to any
Article 9 Collateral consisting of Intellectual Property, on demand, to
cause the Security Interest to become an assignment, transfer and conveyance of
any of or all such Article 9 Collateral by the applicable Grantors to the
U.S. Collateral Agent, or to license or sublicense, whether general, special or
otherwise, and whether on an

 

26

 

exclusive or nonexclusive basis, any such Article 9 Collateral
throughout the world on such terms and conditions and in such manner as the
U.S. Collateral Agent shall determine (other than in violation of any
then-existing licensing arrangements to the extent that waivers cannot be
obtained), and (b) with or without legal process and with or without prior
notice or demand for performance, to take possession of the Article 9
Collateral and without liability for trespass to enter any premises where the
Article 9 Collateral may be located for the purpose of taking possession
of or removing the Article 9 Collateral and, generally, to exercise any
and all rights afforded to a secured party under the Uniform Commercial Code or
other applicable law, including, without limitation, any required consent of
the Bermuda Monetary Authority.  Without
limiting the generality of the foregoing, each Grantor agrees that the U.S.
Collateral Agent shall have the right, subject to the mandatory requirements of
applicable law, to sell or otherwise dispose of all or any part of the
Collateral at a public or private sale or at any broker’s board or on any
securities exchange, for cash, upon credit or for future delivery as the U.S.
Collateral Agent shall deem appropriate. 
The U.S. Collateral Agent shall be authorized at any such sale (if it
deems it advisable to do so) to restrict the prospective bidders or purchasers
to persons who will represent and agree that they are purchasing the Collateral
for their own account for investment and not with a view to the distribution or
sale thereof, and upon consummation of any such sale the U.S. Collateral Agent
shall have the right to assign, transfer and deliver to the purchaser or
purchasers thereof the Collateral so sold. 
Each such purchaser at any such sale shall hold the property sold
absolutely, free from any claim or right on the part of any Grantor, and the
Grantors hereby waive (to the extent permitted by law) all rights of
redemption, stay and appraisal which such Grantor now has or may at any time in
the future have under any rule of law or statute now existing or hereafter enacted.

 

The U.S. Collateral Agent shall give the
applicable Grantors 10 days’ written notice (which each Grantor agrees is
reasonable notice within the meaning of Section 9-611 of the New York
UCC or its equivalent in other jurisdictions) of the U.S. Collateral Agent’s
intention to make any sale of Collateral. 
Such notice, in the case of a public sale, shall state the time and
place for such sale and, in the case of a sale at a broker’s board or on a
securities exchange, shall state the board or exchange at which such sale is to
be made and the day on which the Collateral, or portion thereof, will first be
offered for sale at such board or exchange. 
Any such public sale shall be held at such time or times within ordinary
business hours and at such place or places as the U.S. Collateral Agent may fix
and state in the notice (if any) of such sale. 
At any such sale, the Collateral, or portion thereof, to be sold may be
sold in one lot as an entirety or in separate parcels, as the U.S. Collateral
Agent may (in its sole and absolute discretion) determine.  The U.S. Collateral Agent shall not be
obligated to make any sale of any Collateral if it shall determine not to do
so, regardless of the fact that notice of sale of such Collateral shall have
been given.  The U.S. Collateral Agent
may, without notice or publication, adjourn any public or private sale or cause
the same to be adjourned from time to time by announcement at the time and
place fixed for sale, and such sale may, without further notice, be made at the
time and place to which the same was so adjourned.  In case any sale of all or any part of the Collateral is made on
credit or for future delivery, the Collateral so sold may be retained by the
U.S. Collateral Agent until the sale price is paid by the purchaser or
purchasers thereof, but the U.S. Collateral Agent

 

27

 

shall not
incur any liability in case any such purchaser or purchasers shall fail to take
up and pay for the Collateral so sold and, in case of any such failure, such
Collateral may be sold again upon like notice. 
At any public (or, to the extent permitted by law, private) sale made
pursuant to this Section, any Secured Party may bid for or purchase, free (to
the extent permitted by law) from any right of redemption, stay, valuation or
appraisal on the part of any Grantor (all said rights being also hereby waived
and released to the extent permitted by law), the Collateral or any part
thereof offered for sale and may make payment on account thereof by using any
claim then due and payable to such Secured Party from any Grantor as a credit
against the purchase price, and such Secured Party may, upon compliance with
the terms of sale, hold, retain and dispose of such property without further
accountability to any Grantor therefor. 
For purposes hereof, a written agreement to purchase the Collateral or
any portion thereof shall be treated as a sale thereof; the U.S. Collateral
Agent shall be free to carry out such sale pursuant to such agreement and no
Grantor shall be entitled to the return of the Collateral or any portion
thereof subject thereto, notwithstanding the fact that after the U.S.
Collateral Agent shall have entered into such an agreement all Events of
Default shall have been remedied and the Obligations paid in full (unless
otherwise provided by the terms of such agreement).  As an alternative to exercising the power of sale herein
conferred upon it, the U.S. Collateral Agent may proceed by a suit or suits at
law or in equity to foreclose this Agreement and to sell the Collateral or any
portion thereof pursuant to a judgment or decree of a court or courts having
competent jurisdiction or pursuant to a proceeding by a court-appointed
receiver.  Any sale pursuant to the
provisions of this Section 5.01 shall be deemed to conform to the
commercially reasonable standards as provided in Section 9-610(b) of the
New York UCC or its equivalent in other jurisdictions.

 

SECTION 5.02.
Application of Proceeds.  The
U.S. Collateral Agent shall apply the proceeds of any collection, sale,
foreclosure or other realization upon any Collateral, including any Collateral
consisting of cash, as follows:

 

FIRST, to the payment of all reasonable and documented costs and
expenses incurred by the General Administrative Agent and/or the U.S.
Collateral Agent (in their capacity as such hereunder or under any other Loan
Document) in connection with such collection, sale, foreclosure or realization
or otherwise in connection with this Agreement, any other Loan Document or any
of the Obligations, including all reasonable and documented court costs and the
fees and expenses of its agents and legal counsel, the repayment of all
advances made by the General Administrative Agent and/or the U.S. Collateral
Agent hereunder or under any other Loan Document on behalf of any Grantor and
any other reasonable and documented costs or expenses incurred in connection
with the exercise of any right or remedy hereunder or under any other Loan
Document;

 

SECOND, to the payment in full of up to $5,000,000 of Unfunded
Participations (the amounts so applied to be distributed between or among the
Swingline Lender and any Issuing Bank pro rata in accordance with the amounts
of Unfunded Participations owed to them on the date of any such distribution);

 

28

 

THIRD, to the payment in full of all other Obligations (the amounts so
applied to be distributed among the Secured Parties pro rata in accordance with
the amounts of such Obligations owed to them on the date of any such
distribution); and

 

FOURTH, to the Grantors, their successors or assigns, or as a court of
competent jurisdiction may otherwise direct.

 

If any payment is made under paragraph SECOND
above, the Secured Parties (other than the Swingline Lender or any Issuing
Bank, to the extent any such person has received any such payment) shall be
subrogated to the rights of the Swingline Lender or any Issuing Bank that has
received any such payment in respect of the Non-Funding Lenders to the extent of
such payment.  The U.S. Collateral Agent
shall have absolute discretion as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement.  Upon any sale of Collateral by the U.S.
Collateral Agent (including pursuant to a power of sale granted by statute or
under a judicial proceeding), the receipt of the U.S. Collateral Agent or of
the officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral so sold and such purchaser or purchasers shall not
be obligated to see to the application of any part of the purchase money paid
over to the U.S. Collateral Agent or such officer or be answerable in any way
for the misapplication thereof.

 

SECTION 5.03.
Grant of License to Use Intellectual Property.  For the purpose of enabling the U.S. Collateral Agent to exercise
rights and remedies under this Article at such time as the U.S. Collateral
Agent shall be lawfully entitled to exercise such rights and remedies, each
Grantor hereby grants to the U.S. Collateral Agent an irrevocable, nonexclusive
license (exercisable without payment of royalty or other compensation to the
Grantors) to use, license or sublicense any of the Article 9 Collateral
consisting of Intellectual Property now owned or hereafter acquired by such
Grantor, and wherever the same may be located, and including in such license
access to all media in which any of the licensed items may be recorded or
stored and to all computer software and programs used for the compilation or printout
thereof.  The use of such license by the
U.S. Collateral Agent shall be exercised, at the option of the U.S. Collateral
Agent, only upon the occurrence and during the continuation of an Event of
Default; provided, however, that any license, sublicense or
other transaction entered into by the U.S. Collateral Agent in accordance
herewith shall be binding upon the Grantors notwithstanding any subsequent cure
of an Event of Default.

 

SECTION 5.04.
Securities Act, etc.  In view of
the position of the Grantors in relation to the Pledged Collateral, or because
of other current or future circumstances, a question may arise under the U.S.
Securities Act of 1933, as now or hereafter in effect, or any similar statute
hereafter enacted analogous in purpose or effect (such Act and any such similar
statute as from time to time in effect being called the “Federal Securities Laws”)
with respect to any disposition of the Pledged Collateral permitted
hereunder.  Each Grantor understands
that compliance with the Federal Securities Laws might very strictly limit the
course of conduct of the U.S. Collateral Agent if the U.S. Collateral Agent
were to attempt to dispose of all or any part of the

 

29

 

Pledged Collateral, and might also limit the extent to which or the
manner in which any subsequent transferee of any Pledged Collateral could
dispose of the same.  Similarly, there
may be other legal restrictions or limitations affecting the U.S. Collateral
Agent in any attempt to dispose of all or part of the Pledged Collateral under
applicable “blue sky” or other state or other applicable securities laws or
similar laws analogous in purpose or effect. 
Each Grantor recognizes that in light of such restrictions and
limitations the U.S. Collateral Agent may, with respect to any sale of the
Pledged Collateral, limit the purchasers to those who will agree, among other
things, to acquire such Pledged Collateral for their own account, for
investment, and not with a view to the distribution or resale thereof.  Each Grantor acknowledges and agrees that in
light of such restrictions and limitations, the U.S. Collateral Agent, in its
sole and absolute discretion (a) may proceed to make such a sale whether
or not a registration statement for the purpose of registering such Pledged
Collateral or part thereof shall have been filed under the Federal Securities
Laws and (b) may approach and negotiate with a limited number of potential
purchasers (including a single potential purchaser) to effect such sale.  Each Grantor acknowledges and agrees that
any such sale might result in prices and other terms less favorable to the
seller than if such sale were a public sale without such restrictions. In the
event of any such sale, the U.S. Collateral Agent shall incur no responsibility
or liability for selling all or any part of the Pledged Collateral at a price
that the U.S. Collateral Agent, in its sole and absolute discretion, may in
good faith deem reasonable under the circumstances, notwithstanding the possibility
that a substantially higher price might have been realized if the sale were
deferred until after registration as aforesaid or if more than a limited number
of purchasers (or a single purchaser) were approached.  The provisions of this Section 5.04
will apply notwithstanding the existence of a public or private market upon
which the quotations or sales prices may exceed substantially the price at
which the U.S. Collateral Agent sells.

 

ARTICLE VI

 

Indemnity, Subrogation and
Subordination

 

SECTION 6.01.
Indemnity and Subrogation.  In
addition to all such rights of indemnity and subrogation as the U.S. Guarantors
may have under applicable law (but subject to Section 6.03), the U.S.
Borrower agrees that (a) in the event a payment shall be made by any U.S.
Guarantor under this Agreement, the U.S. Borrower shall indemnify such U.S.
Guarantor for the full amount of such payment and such U.S. Guarantor shall be
subrogated to the rights of the person to whom such payment shall have been
made to the extent of such payment and (b) in the event any assets of any
U.S. Guarantor shall be sold pursuant to this Agreement or any other Security
Document to satisfy in whole or in part a claim of any Secured Party, the U.S.
Borrower shall indemnify such U.S. Guarantor in an amount equal to the greater
of the book value or the fair market value of the assets so sold.

 

SECTION 6.02.
Contribution and Subrogation. 
Each U.S. Guarantor (a “Contributing Guarantor”) agrees (subject to
Section 6.03) that, in the event a payment shall be made by any other U.S.
Guarantor hereunder in respect of any Obligation or assets of any other U.S.
Guarantor shall be sold pursuant to any Security Document to

 

30

 

satisfy any Obligation owed to any Secured Party and such other U.S.
Guarantor (the “Claiming
Guarantor”) shall not have been fully indemnified by the U.S.
Borrower as provided in Section 6.01, the Contributing Guarantor shall
indemnify the Claiming Guarantor in an amount equal to the amount of such
payment or the greater of the book value or the fair market value of such
assets, as the case may be, in each case multiplied by a fraction of which the
numerator shall be the net worth of the Contributing Guarantor on the date
hereof and the denominator shall be the aggregate net worth of all the U.S.
Guarantors on the date hereof (or, in the case of any U.S. Guarantor becoming a
party hereto pursuant to Section 7.16, the date of the Supplement hereto
executed and delivered by such U.S. Guarantor).  Any Contributing Guarantor making any payment to a Claiming
Guarantor pursuant to this Section 6.02 shall be subrogated to the rights
of such Claiming Guarantor under Section 6.01 to the extent of such
payment.

 

 

SECTION 6.03.
Subordination.  (a) Notwithstanding
any provision of this Agreement to the contrary, all rights of the U.S.
Guarantors under Sections 6.01 and 6.02 and all other rights of indemnity,
contribution or subrogation under applicable law or otherwise shall be fully
subordinated to the indefeasible payment in full in cash of the
Obligations.  No failure on the part of
a Borrower or any U.S. Guarantor to make the payments required by
Sections 6.01 and 6.02 (or any other payments required under applicable
law or otherwise) shall in any respect limit the obligations and liabilities of
any U.S. Guarantor with respect to its obligations hereunder, and each U.S.
Guarantor shall remain liable for the full amount of its obligations hereunder.

 

(b) Each of the U.S. Borrower and each U.S.
Guarantor hereby agrees that all Indebtedness and other monetary obligations
owed by it to the U.S. Borrower or any Subsidiary shall be fully subordinated
to the payment in full in cash of the Obligations.

 

ARTICLE VII

 

Miscellaneous

 

SECTION 7.01.
Notices.  All communications and
notices hereunder shall (except as otherwise expressly permitted herein) be in
writing and given as provided in Section 9.01 of the Credit
Agreement.  All communications and
notices hereunder to any U.S. Subsidiary Guarantor shall be given to it in care
of the U.S. Borrower as provided in Section 9.01 of the Credit Agreement.

 

SECTION 7.02.
Security Interest Absolute.  All
rights of the U.S. Collateral Agent hereunder, the Security Interest, the grant
of a security interest in the Pledged Collateral and all obligations of each
Grantor hereunder shall be absolute and unconditional irrespective of, to the
fullest extent permitted by applicable law (a) any lack of validity or
enforceability of the Credit Agreement, any other Loan Document, any agreement
with respect to any of the Obligations or any other agreement or instrument
relating to any of the foregoing, (b) any change in the time, manner or
place of payment of, or in any other term of, all or any of the Obligations, or
any other amendment or

 

31

 

waiver of or any consent to any departure from the Credit Agreement,
any other Loan Document or any other agreement or instrument, (c) any
exchange, release or non-perfection of any Lien on other collateral, or any
release or amendment or waiver of or consent under or departure from any
guarantee, securing or guaranteeing all or any of the Obligations, or
(d) any other circumstance that might otherwise constitute a defense
available to, or a discharge of, any Grantor in respect of the Obligations or
this Agreement.

 

SECTION 7.03.
Survival of Agreement.  All
covenants, agreements, representations and warranties made by the Loan Parties
in the Loan Documents and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan
Document shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of the Loan Documents and
the making of any Loans and issuance of any Letters of Credit, regardless of
any investigation made by any such other party or on its behalf and
notwithstanding that the U.S. Collateral Agent, any Issuing Bank or any Lender
may have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended under the Credit Agreement, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under any
Loan Document is outstanding and unpaid or the aggregate L/C Exposure does not
equal zero and so long as the Commitments have not expired or terminated.

 

SECTION 7.04.
Binding Effect; Several Agreement. 
This Agreement shall become effective as to any Loan Party when a
counterpart hereof executed on behalf of such Loan Party shall have been
delivered to the U.S. Collateral Agent and a counterpart hereof shall have been
executed on behalf of the U.S. Collateral Agent, and thereafter shall be binding
upon such Loan Party and the U.S. Collateral Agent and their respective
permitted successors and assigns, and shall inure to the benefit of such Loan
Party, the U.S. Collateral Agent and the other Secured Parties and their
respective successors and assigns, except that no Loan Party shall have the
right to assign or transfer its rights or obligations hereunder or any interest
herein or in the Collateral (and any such assignment or transfer shall be void)
except as expressly contemplated by this Agreement or the Credit Agreement.
This Agreement shall be construed as a separate agreement with respect to each
Loan Party and may be amended, modified, supplemented, waived or released with
respect to any Loan Party without the approval of any other Loan Party and
without affecting the obligations of any other Loan Party hereunder.

 

SECTION 7.05.
Successors and Assigns.  Whenever
in this Agreement any of the parties hereto is referred to, such reference
shall be deemed to include the permitted successors and assigns of such party;
and all covenants, promises and agreements by or on behalf of any Grantor or
the U.S. Collateral Agent that are contained in this Agreement shall bind and
inure to the benefit of their respective successors and assigns.

 

SECTION 7.06.
U.S. Collateral Agent’s Fees and Expenses; Indemnification.  (a) The parties hereto agree that the
U.S. Collateral Agent shall be

 

32

 

entitled to reimbursement of its expenses incurred hereunder as
provided in Section 9.05 of the Credit Agreement.

 

(b) Without limitation of its indemnification
obligations under the other Loan Documents, each Grantor jointly and severally
agrees to indemnify the U.S. Collateral Agent and the other Indemnitees
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related reasonable and documented out of pocket
expenses, including the reasonable and documented fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted
against any Indemnitee arising out of, in any way connected with, or as a
result of, the execution, delivery or performance of this Agreement or any
agreement or instrument contemplated hereby or any claim, litigation,
investigation or proceeding relating to any of the foregoing agreement or
instrument contemplated hereby or thereby, or to the Collateral, whether or not
any Indemnitee is a party thereto; provided,
however,
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence, wilful misconduct or bad
faith of such Indemnitee (and any Indemnitee receiving payment under this
Section 7.06(b) shall promptly refund the amount of such payment to the
extent that there is a final and nonappealable judgment of a court of competent
jurisdiction that such Indemnitee was not entitled to indemnification in
respect of such payment by virtue of such Indemnitee’s gross negligence, wilful
misconduct or bad faith).

 

(c) Any such amounts payable as provided
hereunder shall be additional Obligations secured hereby and by the other
Security Documents. The provisions of this Section 7.06 shall remain
operative and in full force and effect regardless of the termination of this
Agreement or any other Loan Document, the consummation of the transactions
contemplated hereby, the repayment of any of the Obligations, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the U.S. Collateral
Agent or any other Secured Party.  All
amounts due under this Section 7.06 shall be payable on written demand
therefor and shall bear interest at the rate specified in Section 2.06(a)
of the Credit Agreement.

 

SECTION 7.07.
U.S. Collateral Agent Appointed Attorney-in-Fact.  Each Grantor hereby appoints the U.S.
Collateral Agent as the attorney-in-fact of such Grantor for the purpose of
carrying out the provisions of this Agreement and taking any action and
executing any instrument that the U.S. Collateral Agent may deem necessary or
advisable to accomplish the purposes hereof, which appointment is irrevocable
and coupled with an interest. Without limiting the generality of the foregoing,
the U.S. Collateral Agent shall have the right, upon the occurrence and during
the continuance of an Event of Default, with full power of substitution either
in the U.S. Collateral Agent’s name or in the name of such Grantor (a) to
receive, endorse, assign and/or deliver any and all notes, acceptances, checks,
drafts, money orders or other evidences of payment relating to the Collateral
or any part thereof; (b) to demand, collect, receive payment of, give
receipt for and give discharges and releases of all or any of the Collateral;
(c) to sign

 

33

 

the name of any Grantor on any invoice or bill of lading relating to
any of the Collateral; (d) to send verifications of Accounts Receivable to
any Account Debtor; (e) to commence and prosecute any and all suits,
actions or proceedings at law or in equity in any court of competent jurisdiction
to collect or otherwise realize on all or any of the Collateral or to enforce
any rights in respect of any Collateral; (f) to settle, compromise,
compound, adjust or defend any actions, suits or proceedings relating to all or
any of the Collateral; (g) to notify, or to require any Grantor to notify,
Account Debtors to make payment directly to the U.S. Collateral Agent; and
(h) to use, sell, assign, transfer, pledge, make any agreement with
respect to or otherwise deal with all or any of the Collateral, and to do all
other acts and things necessary to carry out the purposes of this Agreement, as
fully and completely as though the U.S. Collateral Agent were the absolute
owner of the Collateral for all purposes; provided,
however, that nothing herein
contained shall be construed as requiring or obligating the U.S. Collateral
Agent to make any commitment or to make any inquiry as to the nature or
sufficiency of any payment received by the U.S. Collateral Agent, or to present
or file any claim or notice, or to take any action with respect to the
Collateral or any part thereof or the moneys due or to become due in respect
thereof or any property covered thereby. The U.S. Collateral Agent and the
other Secured Parties shall be accountable only for amounts actually received as
a result of the exercise of the powers granted to them herein, and neither they
nor their officers, directors, employees or agents shall be responsible to any
Grantor for any act or failure to act hereunder, except for their own gross
negligence, wilful misconduct or bad faith.

 

SECTION 7.08.
Applicable Law.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 7.09.
Waivers; Amendment.  (a) No
failure or delay by the U.S. Collateral Agent, any Issuing Bank or any Lender
in exercising any right or power hereunder or under any other Loan Document
shall operate as a waiver hereof or thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of steps
to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of
the U.S. Collateral Agent, the Issuing Banks and the Lenders hereunder and
under the other Loan Documents are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision
of any Loan Document or consent to any departure by any Loan Party therefrom
shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which
given.  Without limiting the generality
of the foregoing, the making of a Loan or issuance of a Letter of Credit shall
not be construed as a waiver of any Default, regardless of whether the U.S.
Collateral Agent, any Lender or any Issuing Bank may have had notice or
knowledge of such Default at the time. No notice or demand on any Loan Party in
any case shall entitle any Loan Party to any other or further notice or demand
in similar or other circumstances.

 

(b) Neither this Agreement nor any provision
hereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered

 

34

 

into by the U.S. Collateral Agent and the Loan Party or Loan Parties
with respect to which such waiver, amendment or modification is to apply,
subject to any consent required in accordance with Section 9.08 of the
Credit Agreement.

 

SECTION 7.10.
WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 7.10.

 

SECTION 7.11.
Severability.  In the event any
one or more of the provisions contained in this Agreement or in any other Loan
Document should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and therein shall not in any way be affected or impaired thereby (it
being understood that the invalidity of a particular provision in a particular
jurisdiction shall not in and of itself affect the validity of such provision
in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

 

SECTION 7.12.
Counterparts.  This Agreement may
be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original but all of which when
taken together shall constitute a single contract, and shall become effective
as provided in Section 7.04. 
Delivery of an executed signature page to this Agreement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart
of this Agreement.

 

SECTION 7.13.
Headings.  Article and
Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this
Agreement.

 

SECTION 7.14.
Jurisdiction; Consent to Service of Process.  (a) Each of the Loan Parties hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or Federal court of the United States
of America, sitting in New York City, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or any

 

35

 

other Loan Document, or for recognition or enforcement of any judgment,
and each of the Loan Parties hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and determined
in such New York State or, to the extent permitted by law, in such Federal
court.  Each of the Loan Parties agrees
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement or any other Loan Document
shall affect any right that the U.S. Collateral Agent, any Issuing Bank or any
Lender may otherwise have to bring any action or proceeding relating to this Agreement
or any other Loan Document against any Loan Party or its properties in the
courts of any jurisdiction.

 

(b) Each of the Loan Parties hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or any other Loan Document in any court referred to in paragraph
(a) of this Section. Each of the Loan Parties hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

 

(c) Each of the Loan Parties hereby
irrevocably consents to service of process in the manner provided for notices
in Section 7.01.  Nothing in this
Agreement or any other Loan Document will affect the right of the U.S.
Collateral Agent to serve process in any other manner permitted by law.

 

SECTION 7.15.
Termination or Release.  (a) This
Agreement, the Guarantees, the Security Interest and all other security
interests granted hereby shall terminate when all the Loan Document Obligations
(other than wholly contingent indemnification obligations) then due and owing
have been paid in full and the Lenders have no further commitment to lend under
the Credit Agreement, the aggregate L/C Exposures have been reduced to zero
(or, with respect to any outstanding Letters of Credit, arrangements reasonably
satisfactory to the applicable Issuing Bank have been entered into) and the
Issuing Banks have no further obligations to issue Letters of Credit under the
Credit Agreement.

 

(b) A U.S. Subsidiary Guarantor shall
automatically be released from its obligations hereunder and the Security
Interest in the Collateral of such U.S. Subsidiary Guarantor shall be
automatically released upon the consummation of any transaction permitted by
the Credit Agreement as a result of which such U.S. Subsidiary Guarantor ceases
to be a Subsidiary of the U.S. Borrower.

 

(c) Upon any sale or other transfer by any
Grantor of any Collateral that is permitted under the Credit Agreement to any
person that is not the U.S. Borrower or a U.S. Guarantor, or, upon the
effectiveness of any written consent to the release of the security interest
granted hereby in any Collateral pursuant to Section 9.08 of the Credit
Agreement, the security interest in such Collateral shall be automatically
released.

 

36

 

(d) In connection with any termination or
release pursuant to paragraph (a), (b) or (c) above, the U.S. Collateral
Agent shall execute and deliver to any Grantor, at such Grantor’s expense, all
documents that such Grantor shall reasonably request to evidence such
termination or release. Any execution and delivery of documents pursuant to
this Section 7.15 shall be without recourse to or warranty by the U.S.
Collateral Agent (other than as to the absence of any lien or encumbrance
created by it). Without limiting the provisions of Section 7.06, Holdings
and the U.S. Borrower shall reimburse the U.S. Collateral Agent upon demand for
all costs and out of pocket expenses, including the reasonable fees, charges
and disbursements of counsel, incurred by it in connection with any action
contemplated by this Section 7.15.

 

SECTION 7.16.
Additional Grantors.  Pursuant to
Section 5.09 of the Credit Agreement, each Domestic Subsidiary (other than
a Domestic Subsidiary that is an Immaterial Subsidiary) that (i) was not
in existence or not a Subsidiary on the Closing Date or (ii) is a Domestic
Subsidiary that has ceased being an Immaterial Subsidiary, is required to enter
in this Agreement as a U.S. Subsidiary Guarantor upon becoming such a
Subsidiary or ceasing to be such an Immaterial Subsidiary, as the case may be.
Upon execution and delivery by the U.S. Collateral Agent and such Domestic
Subsidiary of a supplement in the form of Exhibit A hereto, such Domestic
Subsidiary shall become a U.S. Subsidiary Guarantor hereunder with the same
force and effect as if originally named as a U.S. Subsidiary Guarantor
herein.  The execution and delivery of
any such instrument shall not require the consent of any other Loan Party
hereunder. The rights and obligations of each U.S. Subsidiary Guarantor
hereunder shall remain in full force and effect notwithstanding the addition of
any new Loan Party as a party to this Agreement.

 

SECTION 7.17.
Right of Setoff.  If an Event of
Default shall have occurred and is continuing, each Lender is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations at any time owing
by such Lender to or for the credit or the account of any Grantor against any
and all of the obligations of such Grantor now or hereafter existing under this
Agreement held by such Lender, irrespective of whether or not such Lender shall
have made any demand under this Agreement and although such obligations may be
unmatured. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender
may have.

 

SECTION 7.18.
Conflicts.  In the event of any
conflict between the provisions contained herein and the provisions contained
in the Credit Agreement, the provision contained in the Credit Agreement shall
control.

 

37

 

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

 

	
   

  	
  SENSUS METERING SYSTEMS INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS (BERMUDA 2) LTD.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  M&FC HOLDING, LLC,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS IP HOLDINGS, INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  INVENSYS METERING HEADQUARTERS CORPORATION,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SMITH-BLAIR, INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

38

 

	
   

  	
  INVENSYS METERING SYSTEMS-NORTH AMERICA INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  INVENSYS PRECISION DIE CASTING, INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting through
  its Cayman Islands Branch, as U.S. Collateral Agent,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

39

 

Schedule I to

the U.S. Guarantee and

Collateral Agreement

 

U.S. SUBSIDIARY GUARANTORS

 

 

	
  Name of Subsidiary

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Form of Organization

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  Delaware

  	
   

  	
  Limited Liability Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sensus Metering Systems IP
  Holdings, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys Metering Headquarters Corporation (to be renamed
  Sensus Metering Headquarters Corporation)

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smith-Blair, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys Metering Systems—North America Inc. (to be renamed
  Sensus Metering Systems—North America Inc.)

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys Precision Die Casting, Inc. (to be renamed Sensus
  Precision Die Casting, Inc.)

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  	
   

  

 

 

Schedule II
to

the U.S. Guarantee and

Collateral Agreement

 

CAPITAL STOCK

 

	
  Issuer

  	
   

  	
  Number of

  Certificate

  	
   

  	
  Registered

  Owner

  	
   

  	
  Number and

  Class of

  Equity Interest

  	
   

  	
  Percentage

  Of Equity

  Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sensus Metering Systems Inc.

  	
   

  	
  1

  	
   

  	
  Sensus Metering Systems

  (Bermuda 2) Ltd.

  	
   

  	
  1,134.415976

  (series A preferred stock)

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sensus Metering Systems Inc.

  	
   

  	
  1

  	
   

  	
  Sensus Metering Systems

  (Bermuda 2) Ltd.

  	
   

  	
  283.603994

  (common stock)

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sensus
  Metering Systems (Bermuda 3) Ltd.

  	
   

  	
  2

  	
   

  	
  Sensus Metering Systems

  (Bermuda 2) Ltd.

  	
   

  	
  7,800

  (common shares)

  	
   

  	
  65

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sensus
  Metering Systems IP Holdings, Inc.

  	
   

  	
  1

  	
   

  	
  Sensus Metering Systems Inc.

  	
   

  	
  100

  (common stock)

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys
  Metering Headquarters Corporation (to be renamed Sensus Metering Headquarters
  Corporation)

  	
   

  	
  3

  	
   

  	
  M&FC Holding, LLC

  	
   

  	
  1,000

  (common stock)

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smith-Blair Inc.

  	
   

  	
  4

  	
   

  	
  M&FC Holding, LLC

  	
   

  	
  100

  (common stock)

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys
  Metering Systems—North America Inc. (to be renamed Sensus Metering Systems—North
  America Inc.)

  	
   

  	
  6

  	
   

  	
  M&FC Holding, LLC

  	
   

  	
  100

  (common stock)

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys
  Precision Die Casting, Inc. (to be renamed Sensus Precision Die Casting,
  Inc.)

  	
   

  	
  4

  	
   

  	
  M&FC Holding, LLC

  	
   

  	
  100

  (common stock)

  	
   

  	
  100

  	
  %

  	
   

  

 

 

DEBT SECURITIES

 

None.

 

 

Schedule III
to

the U.S. Guarantee and

Collateral Agreement

 

PART
A: SENSUS METERING SYSTEMS INC.

 

COPYRIGHTS

 

 

U.S. COPYRIGHTS OWNED BY SENSUS METERING
SYSTEMS INC.

 

 

U.S. Copyright Registrations

 

None.

 

 

Pending U.S. Copyright Applications for
Registration

 

None.

 

 

Non-U.S. Copyright Registrations

 

None.

 

 

Non-U.S. Pending Copyright Applications for
Registration

 

None.

 

 

LICENSES

 

 

PART
1

 

LICENSES/SUBLICENSEES OF SENSUS METERING
SYSTEMS INC.

AS LICENSOR ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

Non-U.S. Trademarks

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PART
2

 

LICENSEES/SUBLICENSES OF SENSUS METERING
SYSTEMS INC.

AS LICENSEE ON DATE HEREOF

 

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent
Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

Non-U.S. Trademarks

 

None.

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PATENTS

 

 

PATENTS OWNED BY SENSUS METERING SYSTEMS INC.

 

 

U.S. Patent Registrations

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

TRADEMARKS

 

 

TRADEMARK/TRADE NAMES OWNED BY SENSUS
METERING SYSTEMS INC.

 

 

U.S. Trademark Registrations

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

State Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

Trade Names

 

None.

 

 

PART
B: SENSUS METERING SYSTEMS (BERMUDA 2) LTD.

 

 

COPYRIGHTS

 

 

U.S. COPYRIGHTS OWNED BY

SENSUS METERING SYSTEMS (BERMUDA 2) LTD.

 

 

U.S. Copyright Registrations

 

None.

 

 

Pending U.S. Copyright Applications for
Registration

 

None.

 

 

Non-U.S. Copyright Registrations

 

None.

 

 

Non-U.S. Pending Copyright Applications for
Registration

 

None.

 

 

LICENSES

 

 

PART
I

 

LICENSES/SUBLICENSEES OF

SENSUS METERING SYSTEMS (BERMUDA 2) LTD.

AS LICENSOR ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

Non-U.S. Trademarks

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PART
2

 

LICENSEES/SUBLICENSES OF

SENSUS METERING SYSTEMS (BERMUDA 2) LTD.

AS LICENSEE ON DATE HEREOF

 

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent
Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

Non-U.S. Trademarks

 

None.

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PATENTS

 

 

PATENTS OWNED BY SENSUS METERING SYSTEMS
(BERMUDA 2) LTD.

 

 

U.S. Patent Registrations

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

TRADEMARKS

 

 

TRADEMARK/TRADE NAMES OWNED BY

SENSUS METERING SYSTEMS (BERMUDA 2) LTD.

 

 

U.S. Trademark Registrations

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

State Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

Trade Names

 

None.

 

 

PART
C: M&FC HOLDING, LLC

 

 

COPYRIGHTS

 

 

U.S. COPYRIGHTS OWNED BY M&FC HOLDING,
LLC

 

 

U.S. Copyright Registrations

 

None.

 

 

Pending U.S. Copyright Applications for
Registration

 

None.

 

 

Non-U.S. Copyright Registrations

 

None.

 

 

Non-U.S. Pending Copyright Applications for
Registration

 

None.

 

 

LICENSES

 

 

PART
I

 

LICENSES/SUBLICENSEES OF M&FC HOLDING,
LLC

AS LICENSOR ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

Non-U.S. Trademarks

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PART
2

 

LICENSEES/SUBLICENSES OF M&FC HOLDING,
LLC

AS LICENSEE ON DATE HEREOF

 

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent
Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

Non-U.S. Trademarks

 

None.

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PATENTS

 

 

PATENTS OWNED BY M&FC HOLDING, LLC

 

 

U.S. Patent Registrations

 

The assignees listed below reflect
assignments and recordations that have already been filed with the United
States Patent and Trademark Office (“USPTO”) but that may not in each case have
been fully processed by the USPTO as of the effective date of this Agreement.  Therefore, the USPTO databases may not as of
the effective date of this Agreement reflect the assignee information set forth
below.

 

	
  Docket

  	
   

  	
  Pub/Patent

  No.

  	
   

  	
  Assignee

  	
   

  	
  Status

  	
   

  	
  App No.

  	
   

  	
  App Date

  	
   

  	
  Pub/Grant

  Date

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  84522

  	
   

  	
  US4538841

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1984000620429

  	
   

  	
  6/14/1984

  	
   

  	
  9/3/1985

  	
   

  	
  Insulated
  pipe couplings

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85534

  	
   

  	
  US4606565

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1985000765674

  	
   

  	
  8/15/1985

  	
   

  	
  8/19/1986

  	
   

  	
  Pipe
  couplings

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  83513

  	
   

  	
  US4652877

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1983000510753

  	
   

  	
  7/1/1983

  	
   

  	
  3/24/1987

  	
   

  	
  Utility
  Meter Data Collection and Transmission System

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85531

  	
   

  	
  US4663970

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1985000771880

  	
   

  	
  9/3/1985

  	
   

  	
  5/12/1987

  	
   

  	
  Tamperproof
  water meter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  83514

  	
   

  	
  US4758836

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1983000505032

  	
   

  	
  6/20/1983

  	
   

  	
  7/19/1988

  	
   

  	
  Inductive
  coupling system for the bi-directional transmission of digital data

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  83513C

  	
   

  	
  US4782341

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1986000848287

  	
   

  	
  4/4/1986

  	
   

  	
  11/1/1988

  	
   

  	
  Meter
  data gathering and transmission system

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  88526

  	
   

  	
  US4802652

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1988000149284

  	
   

  	
  1/28/1988

  	
   

  	
  2/7/1989

  	
   

  	
  Tapered
  ball valve

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90523

  	
   

  	
  US4829449

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1986000826332

  	
   

  	
  2/5/1986

  	
   

  	
  5/9/1989

  	
   

  	
  Method
  and apparatus for measuring and providing corrected gas flow

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90522

  	
   

  	
  US5009245

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1990000587621

  	
   

  	
  9/20/1990

  	
   

  	
  4/23/1991

  	
   

  	
  Pressure
  regulator

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  89518

  	
   

  	
  US5069490

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1989000418122

  	
   

  	
  10/6/1989

  	
   

  	
  12/3/1991

  	
   

  	
  Pipe
  coupling with spring off-set

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  89517

  	
   

  	
  US5080744

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1989000353872

  	
   

  	
  5/18/1989

  	
   

  	
  1/14/1992

  	
   

  	
  Process
  to produce a cover for a utility meter register

  	
   

  

 

 

	
  Docket

  	
   

  	
  Pub/Patent

  No.

  	
   

  	
  Assignee

  	
   

  	
  Status

  	
   

  	
  App No.

  	
   

  	
  App Date

  	
   

  	
  Pub/Grant

  Date

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90524

  	
   

  	
  US5088322

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1990000530100

  	
   

  	
  5/29/1990

  	
   

  	
  2/18/1992

  	
   

  	
  Extended
  range flow meter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  89517D

  	
   

  	
  US5114792

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1991000680338

  	
   

  	
  4/4/1991

  	
   

  	
  5/19/1992

  	
   

  	
  Moisture
  resistant laminated cover electronic utility meter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90519

  	
   

  	
  US5131688

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1990000635343

  	
   

  	
  12/28/1990

  	
   

  	
  7/21/1992

  	
   

  	
  Pipe
  insulator and method for making same

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  US5190324

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1991000788425

  	
   

  	
  11/6/1991

  	
   

  	
  3/2/1993

  	
   

  	
  Pipe
  restraining member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  93529

  	
   

  	
  US5434911

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1993000072737

  	
   

  	
  6/4/1993

  	
   

  	
  7/18/1995

  	
   

  	
  Call
  in-bound remote reading and data collection system

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  93532

  	
   

  	
  US5438329

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1993000072241

  	
   

  	
  6/4/1993

  	
   

  	
  8/1/1995

  	
   

  	
  Duplex
  bi-directional multi-mode remote instrument reading and telemetry system

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  93530C

  	
   

  	
  US5454031

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1995000400549

  	
   

  	
  3/8/1995

  	
   

  	
  9/26/1995

  	
   

  	
  Dial
  inbound meter interface unit which derives its power from a telephone line

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  95554

  	
   

  	
  US5605357

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1995000461115

  	
   

  	
  6/5/1995

  	
   

  	
  2/25/1997

  	
   

  	
  Pipe
  collar

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  96540

  	
   

  	
  US5842726

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1996000607659

  	
   

  	
  2/27/1996

  	
   

  	
  12/1/1998

  	
   

  	
  Preformed
  transition pipe coupling

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  96538

  	
   

  	
  US5856791

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1996000658238

  	
   

  	
  6/4/1996

  	
   

  	
  1/5/1999

  	
   

  	
  Port
  expander for utility meter reading

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  97680

  	
   

  	
  US5877430

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1997000876086

  	
   

  	
  6/13/1997

  	
   

  	
  3/2/1999

  	
   

  	
  Pressure
  measuring system for gas flow meter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  97585

  	
   

  	
  US5967568

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1997000874152

  	
   

  	
  6/13/1997

  	
   

  	
  10/19/1999

  	
   

  	
  Plastic
  pipe adaptor for a mechanical joint

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  93531

  	
   

  	
  US6087957

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1993000141412

  	
   

  	
  10/22/1993

  	
   

  	
  7/11/2000

  	
   

  	
  Meter
  data gathering and transmission system

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  97585D2

  	
   

  	
  US6131265

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1999000356582

  	
   

  	
  7/19/1999

  	
   

  	
  10/17/2000

  	
   

  	
  Method
  of making a plastic pipe adaptor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  97585D

  	
   

  	
  US6168210

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1998000100221

  	
   

  	
  6/19/1998

  	
   

  	
  1/2/2001

  	
   

  	
  Pipe
  coupling

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  98619

  	
   

  	
  US6250167

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1998000144160

  	
   

  	
  8/31/1998

  	
   

  	
  6/26/2001

  	
   

  	
  Removable
  radio frequency sensor assembly for a turbine flow meter

  	
   

  

 

 

	
  Docket

  	
   

  	
  Pub/Patent

  No.

  	
   

  	
  Assignee

  	
   

  	
  Status

  	
   

  	
  App No.

  	
   

  	
  App Date

  	
   

  	
  Pub/Grant

  Date

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  99582

  	
   

  	
  US6268683

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1999000258475

  	
   

  	
  2/26/1999

  	
   

  	
  7/31/2001

  	
   

  	
  Transducer
  Configurations And Related Method

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  99584

  	
   

  	
  US6453757

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1999000305991

  	
   

  	
  5/6/1999

  	
   

  	
  9/24/2002

  	
   

  	
  Symmetrical
  ultrasound gas flow meter housing and related multi-configuration gas flow
  meter assembly

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  USD339975

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1991000789143

  	
   

  	
  11/6/1991

  	
   

  	
  10/5/1993

  	
   

  	
  Pipe
  restrainer collar member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  91524R

  	
   

  	
  USRE36401

  	
   

  	
  M&FC
  Holding, LLC

  	
   

  	
  Granted

  	
   

  	
  US1997000926192

  	
   

  	
  9/9/1997

  	
   

  	
  11/23/1999

  	
   

  	
  Tandem
  rotor turbine meter and field calibration module

  	
   

  

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

TRADEMARKS

 

 

TRADEMARK/TRADE NAMES OWNED BY M&FC
HOLDING, LLC

 

 

U.S. Trademark Registrations and Applications

 

The assignees listed below reflect
assignments and recordations that have already been filed with the USPTO but
that may not in each case have been fully processed by the USPTO as of the
effective date of this Agreement. 
Therefore, the USPTO databases may not as of the effective date of this
Agreement reflect the assignee information set forth below.

 

	
  Assignee

  	
   

  	
  Trademark
  Name

  	
   

  	
  Reg.Number/
  App #

  	
   

  	
  Reg. Date

  	
   

  	
  Filing
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  ACT-PAK

  	
   

  	
  1,361,623/Serial  No.:

  73-530,897

  	
   

  	
  9/24/1985

  	
   

  	
  4/5/1985

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  AUTO-ADJUST

  	
   

  	
  1,216,230/Serial No.:

  73-322,532

  	
   

  	
  11/9/1982

  	
   

  	
  8/6/1981

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  AUTOCORECTOR

  	
   

  	
  1,796,281/Serial App. No.:

  74-314,344

  	
   

  	
  10/5/1993

  	
   

  	
  9/16/1992

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  AUTOREAD

  	
   

  	
  1,914,127/Serial No.:

  74-411,706

  	
   

  	
  8/22/1995

  	
   

  	
  7/9/1993

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  AUTOVU

  	
   

  	
  2,192,702/Serial No.:

  75-203,040

  	
   

  	
  9/29/1998

  	
   

  	
  11/22/1996

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  ELECTROCORECTOR

  	
   

  	
  1,431,824/73-610,743

  	
   

  	
  3/10/1987

  	
   

  	
  7/21/1986

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  ELECTROCORECTOR

  	
   

  	
  1,431,824/Serial No.:

  73-610,743

  	
   

  	
  3/10/1987

  	
   

  	
  7/21/1986

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  EQUIMETER and Design

  	
   

  	
  1,650,036/Serial No.:

  74-081,375

  	
   

  	
  7/9/1991

  	
   

  	
  7/23/1990

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  EQUIMETER ELECTRO CORECTOR

  	
   

  	
  1,648,038/Serial No.:

  74-081,374

  	
   

  	
  6/18/1991

  	
   

  	
  7/23/1990

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  EZ-TRANS

  	
   

  	
  2,216,614/75-062,485

  	
   

  	
  1/5/1999

  	
   

  	
  2/23/1996

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  FIRELINE

  	
   

  	
  1,459,076/Serial No.:

  73-648,697

  	
   

  	
  9/29/1987

  	
   

  	
  3/9/1987

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  FLEXI-BLUE

  	
   

  	
  2,234,803/75-189,297

  	
   

  	
  3/23/1999

  	
   

  	
  10/29/1996

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  FLEXI-COAT

  	
   

  	
  Serial No.:  75-599,166

  	
   

  	
  12/3/1998

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  FULL CIRCLE

  	
   

  	
  618,510/Serial No.:

  71-684, 240

  	
   

  	
  1/3/1956

  	
   

  	
  3/25/1955

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  GQS

  	
   

  	
  2,632,978/ 76-192,247

  	
   

  	
  10/8/2002

  	
   

  	
  1/10/2001

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  HYPREGUN

  	
   

  	
  628,657/71-700,815

  	
   

  	
  6/12/1956

  	
   

  	
  12/29/1955

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  ICON

  	
   

  	
  Serial No:  78-115,490

  	
   

  	
  3/18/2002

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  ICON

  	
   

  	
  Serial No.:  78-149,779

  	
   

  	
  8/1/2002

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  ICON and Design

  	
   

  	
  Serial No.:  78-149,811

  	
   

  	
  8/1/2002

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  ICONFIG

  	
   

  	
  78/275493

  	
   

  	
  7/17/03

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  IGS

  	
   

  	
  Serial No.:  78-115,504

  	
   

  	
  3/18/2002

  	
   

  	
   

  	
   

  

 

 

	
  Assignee

  	
   

  	
  Trademark
  Name

  	
   

  	
  Reg.Number/
  App #

  	
   

  	
  Reg. Date

  	
   

  	
  Filing
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  INFOREAD

  	
   

  	
  2,154,246/Serial No.:

  75-145,654

  	
   

  	
  4/28/1998

  	
   

  	
  12/7/1995

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  MAXI-GRIP Stylized Letters

  	
   

  	
  1,160,616/Serial No.:

  73-234,823

  	
   

  	
  7/14/1981

  	
   

  	
  10/11/1979

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  MULTIREAD

  	
   

  	
  2,082,019/Serial No.:

  74-656,446

  	
   

  	
  7/22/1997

  	
   

  	
  4/5/1995

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  NEXCORR

  	
   

  	
  2,306,062/75-584, 980

  	
   

  	
  1/4/2000

  	
   

  	
  11/9//98

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  PHONREAD

  	
   

  	
  1,874,561/Serial No.:

  74-369,674

  	
   

  	
  1/17/1995

  	
   

  	
  3/19/1993

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  Professor and Design

  	
   

  	
  2,436,491/75-775-913

  	
   

  	
  3/20/2001

  	
   

  	
  8/13/1999

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  QUADRICORR

  	
   

  	
  2,686,806/ 78-129,519

  	
   

  	
  2/11/2003

  	
   

  	
  5/17/2002

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  QUANTUM Stylized Letters

  	
   

  	
  2,369,271/Serial No.:

  75-496,896

  	
   

  	
  6/5/1998

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  RADIOREAD

  	
   

  	
  1,866,225/Serial No.:

  74-250,275

  	
   

  	
  12/6/1994

  	
   

  	
  2/27/1992

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  RADIOREAD

  	
   

  	
  1,833,253/Serial No.:

  74-801,608

  	
   

  	
  4/26/1994

  	
   

  	
  2/27/1992

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  REDI-CLAMP

  	
   

  	
  1,234,283/Serial No.:

  73-332,660

  	
   

  	
  4/12/1983

  	
   

  	
  10/15/1981

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  RV STYLIZED LETTERS

  	
   

  	
  1,665,646/Serial No.:

  74-090,226

  	
   

  	
  11/26/1991

  	
   

  	
  8/21/1990

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  S and Design

  	
   

  	
  1,655,309/Serial No.:

  74-049,796

  	
   

  	
  9/3/1991

  	
   

  	
  4/13/1990

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  S SENSUS and Design

  	
   

  	
  1,744,310/Serial. No.:

  74-049,811

  	
   

  	
  1/5/1993

  	
   

  	
  4/13/1990

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SB Stylized Letters

  	
   

  	
  2,446,694/Serial No.:

  75-413,196

  	
   

  	
  4/24/2001

  	
   

  	
  1/2/1998

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SEALED REGISTER

  	
   

  	
  755,979/Serial No.:

  72-115,847

  	
   

  	
  9/3/1963

  	
   

  	
  3/16/1961

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SENSUS

  	
   

  	
  1,824,978/74-338,158

  	
   

  	
  3/8/1994

  	
   

  	
  12/7/1992

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SENSUS

  	
   

  	
  1,824,978/Serial No.:

  74-338,158

  	
   

  	
  3/8/1994

  	
   

  	
  12/7/1992

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SENSUS

  	
   

  	
  1,744,309/74-049,353

  	
   

  	
  1/5/1993

  	
   

  	
  4/13/1990

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SENSUS SOFTECH

  	
   

  	
  2,308,548/Serial No.:

  75-461,059

  	
   

  	
  1/18/2000

  	
   

  	
  4/2/1998

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SENSUS SOFTECH, INC and Design

  	
   

  	
  2,307,076/Serial No.:

  75-470-014

  	
   

  	
  1/11/2000

  	
   

  	
  4/20/1998

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SMITH BLAIR and Design

  	
   

  	
  622,013/Serial No.:

  71-684,250

  	
   

  	
  2/28/1956

  	
   

  	
  3/25/1955

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SMITH-BLAIR

  	
   

  	
  732,941/Serial No.:

  72-124,683

  	
   

  	
  6/19/1962

  	
   

  	
  7/25/1961

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SONIX

  	
   

  	
  2,548,546/Serial No.:

  75-700,854

  	
   

  	
  3/12/2002

  	
   

  	
  5/7/1999

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SR

  	
   

  	
  735,984 No.: 72-119,424

  	
   

  	
  8/14/1962

  	
   

  	
  5/4/1961

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  SRII

  	
   

  	
  1,359,052/Serial No.:

  73-528,096

  	
   

  	
  9/10/1985

  	
   

  	
  3/21/1985

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  TOUCHREAD

  	
   

  	
  1,475,682/Serial No.:

  73-618,909

  	
   

  	
  2/9/1988

  	
   

  	
  9/8/1986

  	
   

  

 

 

	
  Assignee

  	
   

  	
  Trademark
  Name

  	
   

  	
  Reg.Number/
  App #

  	
   

  	
  Reg. Date

  	
   

  	
  Filing
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  TOUCHREADER

  	
   

  	
  Serial No.:  2,260,662/Serail
  No.:  75-429,616

  	
   

  	
  7/13/1999

  	
   

  	
  2/5/1998

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M&FC Holding, LLC

  	
   

  	
  WATER JOURNAL

  	
   

  	
  1,032,247/Serial No.:

  73-020,054

  	
   

  	
  2/3/1976

  	
   

  	
  4/29/1974

  	
   

  

 

 

State Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

Trade Names

 

None.

 

 

PART
D: SENSUS METERING SYSTEMS IP HOLDINGS, INC.

 

 

COPYRIGHTS

 

 

U.S. COPYRIGHTS OWNED BY

SENSUS METERING SYSTEMS IP HOLDINGS, INC.

 

 

U.S. Copyright Registrations

 

None.

 

 

Pending U.S. Copyright Applications for
Registration

 

None.

 

 

Non-U.S. Copyright Registrations

 

None.

 

 

Non-U.S. Pending Copyright Applications for
Registration

 

None.

 

 

LICENSES

 

 

PART
I

 

LICENSES/SUBLICENSEES OF

SENSUS METERING SYSTEMS IP HOLDINGS, INC.

AS LICENSOR ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

Non-U.S. Trademarks

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PART
2

 

LICENSEES/SUBLICENSES OF

SENSUS METERING SYSTEMS IP HOLDINGS, INC.

AS LICENSEE ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent
Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

Non-U.S. Trademarks

 

None.

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PATENTS

 

 

PATENTS OWNED BY SENSUS METERING SYSTEMS IP
HOLDINGS, INC.

 

 

U.S. Patent Registrations

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

TRADEMARKS

 

 

TRADEMARK/TRADE NAMES OWNED BY

SENSUS METERING SYSTEMS IP HOLDINGS, INC.

 

 

U.S. Trademark Registrations

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

State Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

Trade Names

 

None.

 

 

PART
E: INVENSYS METERING HEADQUARTERS CORPORATION

(TO BE RENAMED SENSUS METERING HEADQUARTERS CORPORATION)

 

 

COPYRIGHTS

 

 

U.S. COPYRIGHTS OWNED BY

INVENSYS METERING HEADQUARTERS CORPORATION

(TO BE RENAMED SENSUS METERING HEADQUARTERS CORPORATION)

 

 

U.S. Copyright Registrations

 

None.

 

 

Pending U.S. Copyright Applications for
Registration

 

None.

 

 

Non-U.S. Copyright Registrations

 

None.

 

 

Non-U.S. Pending Copyright Applications for
Registration

 

None.

 

 

LICENSES

 

 

PART
I

 

LICENSES/SUBLICENSEES OF

INVENSYS METERING HEADQUARTERS CORPORATION

(TO BE RENAMED SENSUS METERING HEADQUARTERS CORPORATION)

AS LICENSOR ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

Non-U.S. Trademarks

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PART
2

 

LICENSEES/SUBLICENSES OF

INVENSYS METERING HEADQUARTERS CORPORATION

(TO BE RENAMED SENSUS METERING HEADQUARTERS CORPORATION)

AS LICENSEE ON DATE HEREOF

 

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent
Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

Non-U.S. Trademarks

 

None.

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PATENTS

 

 

PATENTS OWNED BY

INVENSYS METERING HEADQUARTERS CORPORATION

(TO BE RENAMED SENSUS METERING HEADQUARTERS CORPORATION)

 

 

U.S. Patent Registrations

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

TRADEMARKS

 

 

TRADEMARK/TRADE NAMES OWNED BY

INVENSYS METERING HEADQUARTERS CORPORATION

(TO BE RENAMED SENSUS METERING HEADQUARTERS CORPORATION)

 

 

U.S. Trademark Registrations

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

State Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

Trade Names

 

None.

 

 

PART
F: SMITH-BLAIR, INC.

 

 

COPYRIGHTS

 

 

U.S. COPYRIGHTS OWNED BY

SMITH-BLAIR, INC.

 

 

U.S. Copyright Registrations

 

None.

 

 

Pending U.S. Copyright Applications for
Registration

 

None.

 

 

Non-U.S. Copyright Registrations

 

None.

 

 

Non-U.S. Pending Copyright Applications for
Registration

 

None.

 

 

LICENSES

 

 

PART
I

 

LICENSES/SUBLICENSEES OF

SMITH-BLAIR, INC.

AS LICENSOR ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

Non-U.S. Trademarks

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PART
2

 

LICENSEES/SUBLICENSES OF

SMITH-BLAIR, INC.

AS LICENSEE ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent
Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

Non-U.S. Trademarks

 

None.

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PATENTS

 

 

PATENTS OWNED BY SMITH BLAIR, INC.

 

 

U.S. Patent Registrations

 

The assignees listed below reflect
assignments and recordations that have already been filed with the USPTO but
that may not in each case have been fully processed by the USPTO as of the
effective date of this Agreement. 
Therefore, the USPTO databases may not as of the effective date of this
Agreement reflect the assignee information set forth below.

 

	
  Docket

  	
   

  	
  Pub/Patent

  No.

  	
   

  	
  Assignee

  	
   

  	
  Status

  	
   

  	
  App No.

  	
   

  	
  App Date

  	
   

  	
  Pub/Grant

  Date

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  US4648631

  	
   

  	
  Smith-Blair,
  Inc.

  	
   

  	
  Granted

  	
   

  	
  US1985000810637

  	
   

  	
  12/19/1985

  	
   

  	
  3/10/1987

  	
   

  	
  Reducing
  coupling

  	
   

  

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

TRADEMARKS

 

 

TRADEMARK/TRADE NAMES OWNED BY

SMITH-BLAIR, INC.

 

 

U.S. Trademark Registrations

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

State Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

Trade Names

 

None.

 

 

PART
G: INVENSYS METERING SYSTEMS—NORTH AMERICA INC.

(TO BE RENAMED SENSUS METERING SYSTEMS—NORTH AMERICA INC.)

 

 

COPYRIGHTS

 

 

U.S. COPYRIGHTS OWNED BY

INVENSYS METERING SYSTEMS—NORTH AMERICA INC.

(TO BE RENAMED SENSUS METERING SYSTEMS—NORTH AMERICA INC.)

 

 

U.S. Copyright Registrations

 

None.

 

 

Pending U.S. Copyright Applications for
Registration

 

None.

 

 

Non-U.S. Copyright Registrations

 

None.

 

 

Non-U.S. Pending Copyright Applications for
Registration

 

None.

 

 

LICENSES

 

 

PART
I

 

LICENSES/SUBLICENSEES OF

INVENSYS METERING SYSTEMS—NORTH AMERICA INC.

(TO BE RENAMED SENSUS METERING SYSTEMS—NORTH AMERICA INC.)

AS LICENSOR ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

Royalty-bearing Patent License from THAT
Corporation to Invensys Metering Systems—North America Inc., dated May 1, 2002,
for U.S. Patent No. 5,736,846.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

Non-U.S. Trademarks

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PART
2

 

LICENSEES/SUBLICENSES OF

INVENSYS METERING SYSTEMS—NORTH AMERICA INC.

(TO BE RENAMED SENSUS METERING SYSTEMS—NORTH AMERICA INC.)

AS LICENSEE ON DATE HEREOF

 

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent
Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

Non-U.S. Trademarks

 

None.

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PATENTS

 

PATENTS OWNED BY

INVENSYS METERING SYSTEMS—NORTH AMERICA INC.

(TO BE RENAMED SENSUS METERING SYSTEMS—NORTH AMERICA INC.)

 

U.S. Patent Registrations

 

The assignees listed below reflect
assignments and recordations that have already been filed with the USPTO but
that may not in each case have been fully processed by the USPTO as of the
effective date of this Agreement. 
Therefore, the USPTO databases may not as of the effective date of this
Agreement reflect the assignee information set forth below.

 

	
  Docket

  	
   

  	
  Pub/Patent

  No.

  	
   

  	
  Assignee

  	
   

  	
  Status

  	
   

  	
  App No.

  	
   

  	
  App Date

  	
   

  	
  Pub/Grant Date

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  US6626048

  	
   

  	
  Invensys
  Metering Systems – North America Inc.

  	
   

  	
  Filed

  	
   

  	
  US806257

  	
   

  	
  7/9/01

  	
   

  	
  9/30/03

  	
   

  	
  MAGNETIC
  FLOW METER

  	
   

  

 

 

U.S. Patent Applications

 

	
  Docket

  	
   

  	
  Document
  No.

  	
   

  	
  Assignee

  	
   

  	
  Status

  	
   

  	
  App Date

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01506

  	
   

  	
  US2002163442

  	
   

  	
  Invensys Metering Systems - North America Inc.

  	
   

  	
  Filed

  	
   

  	
  5/2/2002

  	
   

  	
  Automatic Meter Reading Module

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01512

  	
   

  	
  US2002138332

  	
   

  	
  Invensys Metering Systems - North America Inc.

  	
   

  	
  Filed

  	
   

  	
  5/3/2002

  	
   

  	
  System and Method For Communicating and Control of Automated Meter
  Reading

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01514

  	
   

  	
  205489

  	
   

  	
  Invensys Metering Systems - North America Inc.

  	
   

  	
  Filed

  	
   

  	
  7/26/2002

  	
   

  	
  Solid State Electricity Meter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02515

  	
   

  	
  355312

  	
   

  	
  Invensys Metering Systems - North America Inc.

  	
   

  	
  Filed

  	
   

  	
  1/31/2003

  	
   

  	
  Printed Circuit Board Antenna Structure

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02530P

  	
   

  	
  60/444086

  	
   

  	
  Invensys Metering Systems - North America Inc.

  	
   

  	
  Filed

  	
   

  	
  1/31/2003

  	
   

  	
  Printed Circuit Board Dipole Antenna Structure With Impedance
  Matching Trace

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01539

  	
   

  	
  10/653339

  	
   

  	
  Invensys Metering Systems - North America Inc.

  	
   

  	
  Filed

  	
   

  	
  9/2/2003

  	
   

  	
  Apparatus and Method For Quantity Water Metering Testing

  	
   

  

 

 

Non-U.S. Patent Registrations

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

TRADEMARKS

 

 

TRADEMARK/TRADE NAMES OWNED BY

INVENSYS METERING SYSTEMS—NORTH AMERICA INC.

(TO BE RENAMED SENSUS METERING SYSTEMS—NORTH AMERICA INC.)

 

 

U.S. Trademark Registrations

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

State Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

Trade Names

 

None.

 

 

PART
H: INVENSYS PRECISION DIE CASTING, INC.

(TO BE RENAMED SENSUS PRECISION DIE CASTING, INC.)

 

 

COPYRIGHTS

 

 

U.S. COPYRIGHTS OWNED BY

INVENSYS PRECISION DIE CASTING, INC.

(TO BE RENAMED SENSUS PRECISION DIE CASTING, INC.)

 

 

U.S. Copyright Registrations

 

None.

 

 

Pending U.S. Copyright Applications for Registration

 

None.

 

 

Non-U.S. Copyright Registrations

 

None.

 

 

Non-U.S. Pending Copyright Applications for
Registration

 

None.

 

 

LICENSES

 

 

PART
I

 

LICENSES/SUBLICENSEES OF

INVENSYS PRECISION DIE CASTING, INC.

(TO BE RENAMED SENSUS PRECISION DIE CASTING, INC.)

AS LICENSOR ON DATE HEREOF

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

Non-U.S. Trademarks

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PART
2

 

LICENSEES/SUBLICENSES OF

INVENSYS PRECISION DIE CASTING, INC.

(TO BE RENAMED SENSUS PRECISION DIE CASTING, INC.)

AS LICENSEE ON DATE HEREOF

 

 

A.  Copyrights

 

U.S. Copyrights

 

None.

 

 

Non-U.S. Copyrights

 

None.

 

 

B.  Patents

 

U.S. Patents

 

None.

 

 

U.S. Patent
Applications

 

None.

 

 

Non-U.S. Patents

 

None.

 

 

Non-U.S. Patent Applications

 

None.

 

 

C.  Trademarks

 

U.S. Trademarks

 

None.

 

 

U.S. Trademark Applications

 

None.

 

Non-U.S. Trademarks

 

None.

 

Non-U.S. Trademark Applications

 

None.

 

 

D.  Others

 

None.

 

 

PATENTS

 

 

PATENTS OWNED BY 

INVENSYS PRECISION DIE CASTING, INC.

(TO BE RENAMED SENSUS PRECISION DIE CASTING, INC.)

 

 

U.S. Patent Registrations

 

None.

 

 

U.S. Patent Applications

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

Non-U.S. Patent Registrations

 

None.

 

 

TRADEMARKS

 

 

TRADEMARK/TRADE NAMES OWNED BY

INVENSYS PRECISION DIE CASTING, INC.

(TO BE RENAMED SENSUS PRECISION DIE CASTING, INC.)

 

 

U.S. Trademark Registrations

 

None.

 

 

U.S. Trademark Applications

 

None.

 

 

State Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Registrations

 

None.

 

 

Non-U.S. Trademark Applications

 

None.

 

Trade Names

 

None.

 

 

Exhibit A to the

U.S. Guarantee and

Collateral Agreement

 

SUPPLEMENT NO. [•] dated as of [•], to the U.S. Guarantee
and Collateral Agreement dated as of December [•], 2003 (the “U.S. Guarantee and
Collateral Agreement”), among SENSUS METERING SYSTEMS INC., a Delaware corporation
(the “U.S. Borrower”), SENSUS METERING SYSTEMS (BERMUDA
2) LTD., a company organized in Bermuda (“Holdings”), each subsidiary of the U.S.
Borrower listed on Schedule I thereto (each such subsidiary individually a
“U.S. Subsidiary Guarantor” and collectively, the “U.S. Subsidiary Guarantors”; the U.S. Subsidiary Guarantors,
Holdings and the U.S. Borrower are referred to collectively herein as the “Grantors”) and CREDIT SUISSE FIRST BOSTON, (together with its affiliates,
“CSFB”),
as U.S. collateral agent (in such capacity, the “U.S. Collateral
Agent”)
for the Secured Parties (as defined herein).

 

A. 
Reference is made to the Credit Agreement dated as of December [•], 2003 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among the U.S. Borrower, the
European Borrower, Holdings, the lenders named therein (the “Lenders”),
and CSFB, as general administrative agent (in such capacity, the “General Administrative Agent”) and U.S. collateral agent for the Lenders.

 

B. 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement or the U.S.
Guarantee and Collateral Agreement referred to therein, as applicable.

 

C.  The
Grantors have entered into the U.S. Guarantee and Collateral Agreement in order
to induce the Lenders to make Loans and the Issuing Banks to issue Letters of
Credit.  Section 7.16 of the U.S.
Guarantee and Collateral Agreement provides that additional Domestic
Subsidiaries of the Loan Parties may become U.S. Subsidiary Guarantors and
Grantors under the U.S. Guarantee and Collateral Agreement by execution and
delivery of an instrument in the form of this Supplement.  The undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement in accordance with the
requirements of the Credit Agreement to become a U.S. Subsidiary Guarantor and
a Grantor under the U.S. Guarantee and Collateral Agreement in order to induce
the Lenders to make additional Loans and the Issuing Banks to issue additional
Letters of Credit and as consideration for Loans previously made and Letters of
Credit previously issued.

 

Accordingly, the U.S. Collateral Agent and
the New Subsidiary agree as follows:

 

SECTION 1.  In accordance with Section 7.16 of the U.S. Guarantee and
Collateral Agreement, the New Subsidiary by its signature below becomes a
Grantor and

 

 

U.S.
Subsidiary Guarantor under the U.S. Guarantee and Collateral Agreement with the
same force and effect as if originally named therein as a Grantor and U.S.
Subsidiary Guarantor and the New Subsidiary hereby (a) agrees to all the terms
and provisions of the U.S. Guarantee and Collateral Agreement applicable to it
as a Grantor and Subsidiary Guarantor thereunder and (b) represents and
warrants that the representations and warranties made by it as a Grantor and
U.S. Subsidiary Guarantor thereunder are true and correct in all material
respects on and as of the date hereof. 
In furtherance of the foregoing, the New Subsidiary, as security for the
payment and performance in full of the Obligations (as defined in the U.S.
Guarantee and Collateral Agreement), does hereby create and grant to the U.S.
Collateral Agent, its successors and assigns, for the benefit of the Secured Parties,
their successors and assigns, a security interest in and lien on all of the New
Subsidiary’s right, title and interest in and to the Collateral (as defined in
the U.S. Guarantee and Collateral Agreement) of the New Subsidiary.  Each reference to a “Grantor” or a “U.S. Subsidiary
Guarantor”
in the U.S. Guarantee and Collateral Agreement shall be deemed to include the
New Subsidiary.  The U.S. Guarantee and
Collateral Agreement is hereby incorporated herein by reference.

 

SECTION 2.  The New Subsidiary represents and warrants to the U.S. Collateral
Agent and the other Secured Parties that this Supplement has been duly
authorized, executed and delivered by it and constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms except
to the extent that enforeability thereof may be limited by applicable
bankruptcy, insolvency, reorganization or similar laws affecting the
enforcement of creditors’ rights generally or by general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity
or at law).

 

SECTION 3.  This Supplement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract. This Supplement shall become effective when the U.S. Collateral Agent
shall have received counterparts of this Supplement that, when taken together,
bear the signatures of the New Subsidiary and the U.S. Collateral Agent.  Delivery of an executed signature page to
this Supplement by facsimile transmission shall be as effective as delivery of
a manually signed counterpart of this Supplement.

 

SECTION 4.  The New Subsidiary hereby represents and warrants that set forth
under its signature hereto, is the true and correct legal name of the New
Subsidiary, its jurisdiction of formation and the location of its chief
executive office.

 

SECTION 5.  Except as expressly supplemented hereby, the U.S. Guarantee and
Collateral Agreement shall remain in full force and effect.

 

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

 

2

 

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

 

SECTION 8.  All communications and notices hereunder shall be in writing and
given as provided in Section 7.01 of the U.S. Guarantee and Collateral
Agreement. All communications and notices hereunder to the New Subsidiary shall
be given to it at the address set forth under its signature below.

 

SECTION 9.  The New Subsidiary agrees to reimburse the U.S. Collateral Agent
for its reasonable and documented out-of-pocket expenses in connection with
this Supplement, including the reasonable fees, other charges and disbursements
of counsel for the U.S. Collateral Agent.

 

IN WITNESS WHEREOF, the New Subsidiary and
the U.S. Collateral Agent have duly executed this Supplement to the Guarantee
and Collateral Agreement as of the day and year first above written.

 

 

	
   

  	
  [NAME OF NEW SUBSIDIARY],

  
	
   

  	
   

  
	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
  Legal Name:

  
	
   

  	
   

  	
  Jurisdiction of Formation:

  
	
   

  	
   

  	
  Location of Chief Executive Office:

  
					

 

3

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch,
  as U.S. Collateral Agent

  
	
   

  	
   

  
	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

4

 

Schedule I to

Supplement No. [•] to the

U.S. Guarantee and

Collateral Agreement

 

 

Pledged Subsidiary Stock of the New
Subsidiary

 

	
  Issuer

  	
   

  	
  Number of

  Certificate

  	
   

  	
  Registered

  Owner

  	
   

  	
  Number and

  Class of

  Equity Interests

  	
   

  	
  Percentage

  of Equity

  Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Intercompany Notes

 

	
  Issuer

  	
   

  	
  Principal

  Amount

  	
   

  	
  Date of Note

  	
   

  	
  Maturity Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

INTELLECTUAL PROPERTY

 

 

 

Exhibit B to

U.S. Guarantee and

Collateral Agreement

 

FORM OF PERFECTION CERTIFICATE

 

Reference is made to the Credit Agreement dated as of December [•], 2003 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among Sensus Metering
Systems Inc., a Delaware corporation (the “U.S. Borrower”), Sensus Metering Systems (Bermuda 2)
Ltd., a company organized under the laws of Bermuda (“Holdings”), the lenders from time to time
party thereto (the “Lenders”),
Credit Suisse First Boston, as general administrative agent (in such capacity,
the “General Administrative Agent”),
and U.S. collateral agent, and Goldman Sachs Credit Partners, L.P., as
syndication agent.  Capitalized terms
used but not defined herein have the meanings set forth in either the Credit
Agreement or the U.S. Guarantee and Collateral Agreement referred to therein,
as applicable.

 

The undersigned Financial
Officers of the U.S. Borrower hereby certify to the General Administrative
Agent and each other Secured Party as follows:

 

1.             Names.  (a)   The exact legal name
of each Grantor, as such name appears in its respective certificate of
formation, is as follows:

 

	
  Exact Legal Name of Each
  Grantor

  
	
   

  
	
   

  

 

(b)  Set forth below is each other
legal name each Grantor has had in the past five years, together with the date
of the relevant change:

 

	
  Grantor

  	
   

  	
  Other Legal Name in Past 5
  Years

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

(c)  Except as set forth in
Schedule 1 hereto, no Grantor has changed its identity or corporate
structure in any way within the past five years.  Changes in identity or corporate structure would include mergers,
amalgamations, consolidations and acquisitions, as well as any change in the
form, nature or jurisdiction of organization. 
If any such change has occurred, include in Schedule 1 the
information required by Sections 1 and 2 of this certificate as to each
acquiree or constituent party to a merger, amalgamation or consolidation.

 

 

(d)  The following is a list of all
other names (including trade names or similar appellations) used by each
Grantor or any of its divisions or other business units in connection with the
conduct of its business or the ownership of its properties at any time during
the past five years:

 

	
  Grantor

  	
   

  	
  Other Name Used

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

(e)  Set forth below is the
Organizational Identification Number, if any, issued by the jurisdiction of
formation of each Grantor that is a registered organization:

 

	
  Grantor

  	
   

  	
  Organizational
  Identification Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

(f)  Set forth below is the Federal
Taxpayer Identification Number of each Grantor(1):

 

	
  Grantor

  	
   

  	
  Federal Taxpayer
  Identification Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

2.  Current Locations.  (a)  The chief executive office of each Grantor is
located at the address set forth opposite its name below:

 

 

	
  Grantor

  	
   

  	
  Mailing
  Address

  	
   

  	
  County

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1) Only necessary for filing in North Dakota and South Dakota.

 

2

 

(b)  Set forth below opposite the name of each Grantor are
all locations where such Grantor maintains any books or records relating to any
Accounts Receivable (with each location at which chattel paper, if any, is kept
being indicated by an “*”):

 

	
  Grantor

  	
   

  	
  Mailing
  Address

  	
   

  	
  County

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(c)  The jurisdiction of formation
of each Grantor that is a registered organization is set forth opposite its
name below:

 

	
  Grantor

  	
   

  	
  Jurisdiction

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

(d) Set forth below opposite the name of each Grantor are all the
locations where such Grantor maintains any Equipment or other Collateral not
identified above:

 

	
  Grantor

  	
   

  	
  Mailing
  Address

  	
   

  	
  County

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(e)  Set forth below opposite the name of each Grantor are
all the places of business of such Grantor not identified in paragraph (a),
(b), (c) or (d) above:

 

	
  Grantor

  	
   

  	
  Mailing
  Address

  	
   

  	
  County

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

(f)  Set forth below is a list of all real property held by
each Grantor, whether owned or leased, the name of the Grantor that owns or
leases said property and the fair market value apportioned to each site:

 

	
  Address

  	
   

  	
  Owned/Leased

  	
   

  	
  Entity

  	
   

  	
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(g) Set forth below opposite the name of each Grantor are the names and
addresses of all Persons other than such Grantor that have possession of any of
the Collateral of such Grantor:

 

	
  Grantor

  	
   

  	
  Mailing Address

  	
   

  	
  County

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

3.  Unusual Transactions.  All Accounts have been originated by the
Grantors and all Inventory has been acquired by the Grantors in the ordinary
course of business.

 

4.  File Search Reports.  File search reports have been obtained from
each Uniform Commercial Code filing office identified with respect to such
Grantor in Section 2 hereof, and such search reports reflect no liens
against any of the Collateral other than those permitted under the Credit
Agreement.

 

5.  UCC Filings.  Financing statements in substantially the
form of Schedule 5 hereto have been prepared for filing in the proper
Uniform Commercial Code filing office in the jurisdiction in which each Grantor
is located and, to the extent any of the collateral is comprised of fixtures,
timber to be cut or as extracted collateral from the wellhead or minehead, in
the proper local jurisdiction, in each case as set forth with respect to such
Grantor in Section 2 hereof.

 

6.  Schedule of Filings.  Attached hereto as Schedule 6 is a
schedule setting forth, with respect to the filings described in
Section 5 above, each filing and the filing office in which such filing is
to be made.

 

7.  Stock Ownership and other
Equity Interests.  Attached hereto
as Schedule 7 is a true and correct list of all the issued and outstanding
shares, stock, partnership interests, limited liability company membership
interests or other equity interest of the U.S. Borrower and each Subsidiary and
the record and beneficial owners of such shares, stock, partnership interests,
membership interests or other equity interests. Also set forth on
Schedule 7 is each equity investment of Holdings, the U.S. Borrower or any
Subsidiary

 

4

 

that represents 50% or less of the equity of
the entity in which such investment was made.

 

8.  Debt Instruments.  Attached hereto as Schedule 8 is a true
and correct list of all promissory notes and other evidence of indebtedness
held by Holdings, the U.S. Borrower and each Subsidiary that are required to be
pledged under the Guarantee and Collateral Agreement, including all
intercompany notes between Holdings and each Subsidiary of Holdings and each
Subsidiary of Holdings and each other such Subsidiary.

 

9.  Deposit Accounts.  Attached hereto as Schedule 9 is a true
and correct list of deposit accounts, brokerage accounts or securities
investment accounts maintained by each Grantor, including the name and address
of the depositary institution, the type of account, and the account number.

 

10.  Assignment of Claims Act.  Attached hereto as Schedule 10 is a
true and correct list of all Government Contracts of each Grantor that as of
the date hereof constitute Material Contracts, setting forth the contract
number, name and address of contracting officer (or other party to whom a
notice of assignment under the Assignment of Claims Act should be sent),
contract start date and end date, agency with which the contract was entered
into, and a description of the contract type.

 

11.  Advances.  Attached hereto as Schedule 11 is (a) a
true and correct list of all advances made by the U.S. Borrower to any
Subsidiary of the U.S. Borrower or made by any Subsidiary of the U.S. Borrower
to the U.S. Borrower or to any other Subsidiary of the U.S. Borrower (other
than those identified on Schedule 8), which advances will be on and after
the date hereof evidenced by one or more intercompany notes pledged to the U.S.
Collateral Agent under this Agreement and (b) a true and correct list of all
unpaid intercompany transfers of goods sold and delivered by or to any Grantor.

 

12.  Mortgage
Filings.  Attached hereto as
Schedule 12 is a schedule setting forth, with respect to each
mortgaged property, (a) the exact name of the person that owns such
property as such name appears in its certificate of incorporation or other
organizational document, (b) if different from the name identified
pursuant to clause (a), the exact name of the current record owner of such
property reflected in the records of the filing office for such property
identified pursuant to the following clause and (c) the filing office in
which a mortgage with respect to such property must be filed or recorded in
order for the U.S. Collateral Agent to obtain a perfected security interest
therein.

 

13.  Intellectual
Property.  Attached hereto as
Schedule 13A in proper form for filing with the United States Patent and
Trademark Office is a schedule setting forth all of each Grantor’s Patents,
Patent Licenses, Trademarks and Trademark Licenses, including the name of the
registered owner, the registration number and the expiration date of each
Patent, Patent License, Trademark and Trademark License owned by any Grantor.
Attached hereto as Schedule 13B in proper form for filing with the United
States Copyright Office is a schedule setting forth all of each Grantor’s
Copyrights and Copyright Licenses, including the name of the registered owner,
the registration number and the expiration date of each Copyright or Copyright
License owned by any Grantor.

 

5

 

14.  Commercial Tort Claims.  Attached hereto as Schedule 14 is a
true and correct list of commercial tort claims in excess of $500,000 held by
any Grantor, including a brief description thereof.

 

6

 

IN WITNESS WHEREOF, the undersigned have duly
executed this certificate on this [•] day of December, 2003.

 

 

	
   

  	
  SENSUS METERING SYSTEMS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:  
  [Financial Officer]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:  
  [Financial Officer]

  

 

7EXHIBIT
10.3

 

EXECUTION COPY

 

 

EUROPEAN GUARANTEE AGREEMENT

 

dated as of

 

December 17, 2003,

 

among

 

SENSUS METERING SYSTEMS (LUXCO 2) S.AR.L.,

 

SENSUS METERING SYSTEMS (BERMUDA 3) LTD.,

 

SENSUS METERING SYSTEMS (LUXCO 1) S.AR.L.,

 

the Subsidiaries of SENSUS METERING SYSTEMS
(LUXCO 2) S.AR.L.
identified herein,

 

and

 

CREDIT SUISSE FIRST BOSTON,

as European Collateral Agent

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
   

  	
   

  
	
  DEFINITIONS

  
	
   

  	
   

  
	
  SECTION 1.01. Credit Agreement

  	
   

  
	
  SECTION 1.02. Other Defined Terms

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  
	
  GUARANTEE

  
	
   

  	
   

  
	
  SECTION 2.01. Guarantee

  	
   

  
	
  SECTION 2.02. Guarantee of Payment

  	
   

  
	
  SECTION 2.03.
  No Limitations, Etc

  	
   

  
	
  SECTION 2.04. Reinstatement

  	
   

  
	
  SECTION 2.05. Agreement To Pay;
  Subrogation

  	
   

  
	
  SECTION 2.06. Information

  	
   

  
	
  SECTION 2.07. Limitation on Guarantees
  Under French Law

  	
   

  
	
  SECTION 2.08. Limitation on Guarantees
  Under German Law

  	
   

  
	
  SECTION 2.09. Limitation on Guarantees Under Luxembourg Law

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  
	
  INDEMNITY, SUBROGATION
  AND SUBORDINATION

  
	
   

  	
   

  
	
  SECTION 3.01. Indemnity and
  Subrogation

  	
   

  
	
  SECTION 3.02. Contribution and Subrogation

  	
   

  
	
  SECTION 3.03. Subordination

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  SECTION 4.01. Notices

  	
   

  
	
  SECTION 4.02. Rights and Obligations
  Absolute

  	
   

  
	
  SECTION 4.03. Survival of Agreement

  	
   

  
	
  SECTION 4.04. Binding Effect; Several
  Agreement

  	
   

  
	
  SECTION 4.05. Successors and Assigns

  	
   

  
	
  SECTION 4.06. European Collateral
  Agent’s Fees and Expenses; Indemnification

  	
   

  
	
  SECTION 4.07. Applicable Law

  	
   

  
	
  SECTION 4.08.
  Waivers; Amendment

  	
   

  
	
  SECTION 4.09. WAIVER OF JURY TRIAL

  	
   

  
	
  SECTION 4.10. Severability

  	
   

  

 

i

 

	
  SECTION 4.11. Counterparts

  	
   

  
	
  SECTION 4.12. Headings

  	
   

  
	
  SECTION 4.13. Jurisdiction; Consent to
  Service of Process

  	
   

  
	
  SECTION 4.14. Termination or Release

  	
   

  
	
  SECTION 4.15. Additional Grantors

  	
   

  
	
  SECTION 4.16. Right of Setoff

  	
   

  
	
  SECTION 4.17. Conflicts

  	
   

  
	
  SECTION 4.18. Parallel Debt

  	
   

  
	
   

  	
   

  
	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Schedule I

  	
  European Subsidiary Guarantors

  	
   

  
	
   

  	
   

  
	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  Form of Supplement

  	
   

  

 

ii

 

EUROPEAN
GUARANTEE AGREEMENT dated as of December 17, 2003, among SENSUS METERING
SYSTEMS (LUXCO 2) S.AR.L., a société A responsabilité limitée incorporated
under Luxembourg law (the “European Borrower”),
SENSUS METERING SYSTEMS (BERMUDA 3) LTD., a company organized under the laws of
Bermuda (“Bermuda Intermediate
Holdco”), SENSUS METERING SYSTEMS (LUXCO 1) S.AR.L., a société A
responsabilité limitée incorporated under Luxembourg law (“Luxembourg Intermediate Holdco”), the
Subsidiaries of the European Borrower identified herein and CREDIT SUISSE FIRST
BOSTON (together with its affiliates, “CSFB”), as European collateral agent (the “European Collateral Agent”).

 

PRELIMINARY STATEMENT

 

Reference is made to the Credit Agreement dated as of December 17,
2003 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Sensus Metering Systems Inc., a Delaware corporation,
the European Borrower, Sensus Metering Systems (Bermuda 2) Ltd., a company
organized under the laws of Bermuda, the lenders from time to time party
thereto (the “Lenders”) and CSFB, as general administrative agent and as European
administrative agent (in such capacity, the “Administrative
Agent”).  The Lenders and the Issuing Banks have
agreed to extend credit to the Borrowers (such term and each other capitalized
term used but not defined in this preliminary statement having the meaning
given or ascribed to it in Article I) pursuant to, and upon the terms and
conditions specified in, the Credit Agreement. 
The obligations of the European Lenders and the European Issuing Banks
to extend credit to the European Borrower are conditioned upon, among other
things, the execution and delivery of this Agreement by Bermuda Intermediate
Holdco, Luxembourg Intermediate Holdco, the European Borrower and the European
Subsidiary Guarantors.  Bermuda
Intermediate Holdco, Luxembourg Intermediate Holdco and the European Subsidiary
Guarantors are affiliates of the European Borrower, will derive substantial
benefits from the extension of credit to the European Borrower pursuant to the
Credit Agreement and are willing to execute and deliver this Agreement in order
to induce the European Lenders and the European Issuing Banks to extend such
credit.  Accordingly, the parties hereto
agree as follows:

 

ARTICLE I

Definitions

 

SECTION 1.01.  Credit Agreement.  Capitalized terms used in this Agreement and
not otherwise defined herein have the meanings set forth in the Credit

 

 

Agreement.  The rules of construction specified in
Section 1.02 of the Credit Agreement also apply to this Agreement.

 

SECTION 1.02.  Other Defined Terms.  As used in this Agreement, the following
terms have the meanings specified below:

 

“Agreement”
shall mean this European Guarantee Agreement, as it may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Bermuda Intermediate
Holdco” shall have the meaning assigned to such term in the
preamble.

 

“Claiming Guarantor”
shall have the meaning assigned to such term in Section 3.02.

 

“Contributing Guarantor”
shall have the meaning assigned to such term in Section 3.02.

 

“Credit Agreement”
shall have the meaning assigned to such term in the preliminary statement.

 

“CSFB”
shall have the meaning assigned to such term in the preamble.

 

“European Borrower”
shall have the meaning assigned to such term in the preamble.

 

“European Collateral
Agent” shall have the meaning assigned to such term in the
preamble.

 

“European Guarantors”
shall mean Bermuda Intermediate Holdco, Luxembourg Intermediate Holdco and the
European Subsidiary Guarantors.

 

“European Issuing Bank”
shall mean any Issuing Bank that shall have issued a European Letter of Credit.

 

“European Loan Document
Obligations” shall mean (a) the due and punctual payment of (i)
the principal of and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Loans
made to the European Borrower, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise, (ii) each
payment required to be made by the European Borrower under the Credit Agreement
in respect of any European Letter of Credit, when and as due, including payments
in respect of reimbursement of disbursements, interest thereon and obligations
to provide cash collateral, and (iii) all other monetary obligations of the
European Borrower to any of the European Secured Parties under the Credit
Agreement and each of the other Loan Documents, including fees, costs, expenses
and indemnities, whether primary, secondary, direct, contingent, fixed or
otherwise (including monetary obligations incurred during the pendency of any

 

2

 

bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), (b) the due and
punctual performance of all other obligations of the European Borrower under or
pursuant to the Credit Agreement and each of the other Loan Documents, and (c)
the due and punctual payment and performance of all the obligations of each
other European Loan Party under or pursuant to this Agreement and each of the
other Loan Documents.

 

“European Loan Parties”
shall mean the European Borrower and the European Guarantors.

 

“European Obligations”
shall mean (a) the European Loan Document Obligations and (b) the due and
punctual payment and performance all obligations of each European Loan Party
under each Hedging Agreement that (i) is in effect on the Closing Date with a
counterparty that is a Lender or an Affiliate of a Lender as of the Closing
Date or (ii) is entered into after the Closing Date with any counterparty that
is a Lender or an Affiliate of a Lender at the time such Hedging Agreement is
entered into.

 

“European Secured
Parties” shall mean (a) the European Lenders, (b) the European
Administrative Agent, (c) the European Collateral Agent, (d) the European
Issuing Banks, (e) each counterparty to any Hedging Agreement with any European
Loan Party that either (i) is in effect on the Closing Date if such
counterparty is a Lender or an Affiliate of a Lender as of the Closing Date or
(ii) is entered into after the Closing Date if such counterparty is a Lender or
an Affiliate of a Lender at the time such Hedging Agreement is entered into,
(f) the beneficiaries of each indemnification obligation undertaken by the
European Loan Parties under any Loan Document and (g) the successors and
assigns of each of the foregoing.

 

“European Subsidiary
Guarantors” shall mean (a) the Subsidiaries identified on
Schedule I hereto as European Subsidiary Guarantors and (b) each other
Subsidiary of the European Borrower that becomes a party to this Agreement as a
European Subsidiary Guarantor after the Closing Date.

 

“French Subsidiary
Guarantors” shall mean (i) the Specified French Subsidiary
Guarantors, (ii) Sensus Metering Systems France Holdings SAS, a société par
actions simplifiée organized under the laws of the Republic of France, and
(iii) any Foreign Subsidiary of the European Borrower (other than any such
Foreign Subsidiary that is an Immaterial Subsidiary) not in existence on the
Closing Date (or any existing Foreign Subsidiary of the European Borrower which
ceases to be an Immaterial Subsidiary) organized under the laws of the Republic
of France which becomes an additional European Subsidiary Guarantor pursuant to
Section 4.15.

 

“German Subsidiary
Guarantors” shall mean (i) Sensus Metering Systems (Germany
Holdings) GmbH, a limited liability company organized under the laws of the
Federal Republic of Germany, (ii) Invensys Metering Systems Holdings GmbH (to
be renamed Sensus Metering Systems Holdings GmbH), a limited liability company
organized under the laws of the Federal Republic of Germany, (iii) IMServ GmbH,
a limited liability company organized under the laws of the Federal Republic of

 

3

 

Germany, (iv) Invensys Metering Systems GmbH Hannover (to be renamed
Sensus Metering Systems (Hannover) GmbH), a limited liability company organized
under the laws of the Federal Republic of Germany, (v) Invensys Metering
Systems GmbH Ludwigshafen (to be renamed Sensus Metering Systems (Ludwigshafen)
GmbH, a limited liability company organized under the laws of the Federal
Republic of Germany, (vi) Pollux Meter GmbH & Co. KG, a limited partnership
organized under the laws of the Federal Republic of Germany, and (vii) any
Foreign Subsidiary of the European Borrower (other than any such Foreign
Subsidiary that is an Immaterial Subsidiary) not in existence on the Closing
Date (or any existing Foreign Subsidiary of the European Borrower which ceases
to be an Immaterial Subsidiary) organized under the laws of the Federal
Republic of Germany which becomes an additional European Subsidiary Guarantor
pursuant to Section 4.15.

 

“Luxembourg
Intermediate Holdco” shall have the meaning assigned to such
term in the preamble.

 

“Luxembourg Guarantors”
shall mean Luxembourg Intermediate Holdco and Sensus Metering Systems (LuxCo 3)
S.Ar.l., a société A responsabilité limitée incorporated under Luxembourg law.

 

“Parallel Obligations”
shall have the meaning assigned to such term in Section 4.18(a).

 

“Principal Obligations”
shall have the meaning assigned to such term in Section 4.18(a).

 

“Relevant German
Obligor” shall have the meaning assigned to such term in
Section 2.08.

 

“Specified French
Subsidiary Guarantors” shall mean Financiere Pollux SA, a
société anonyme organized under the laws of the Republic of France, and
Invensys Metering Systems SAS (to be renamed Sensus Metering Systems (France)
SAS), a société par actions simplifiée organized under the laws of the Republic
of France.

 

ARTICLE II

Guarantee

 

SECTION 2.01.  Guarantee.  Each European Guarantor unconditionally
guarantees, jointly with the other European Guarantors and severally, as a
primary obligor and not merely as a surety, the due and punctual payment and
performance of the European Obligations; provided,
however, that (a) the guarantee
of the French Subsidiary Guarantors shall be limited as set forth in
Section 2.07, (b) the guarantee of the German Subsidiary Guarantors shall
be limited as set forth in Section 2.08 and (c) the guarantee of the
Luxembourg Guarantors shall be limited as set forth in Section 2.09.  Each of the European Guarantors further
agrees that the European Obligations may be extended or renewed, in whole or in
part, without notice to or further assent from it, and that it will

 

4

 

remain bound
upon its guarantee notwithstanding any extension or renewal of any European
Obligation.  Each of the European
Guarantors waives presentment to, demand of payment from and protest to the
European Borrower or any other European Guarantor of any European Obligation,
and also waives notice of acceptance of its guarantee and notice of protest for
nonpayment.

 

SECTION 2.02.  Guarantee of Payment.  Each of the European Guarantors further
agrees that its guarantee hereunder constitutes a guarantee of payment when due
and not of collection, and waives any right to require that any resort be had
by the European Collateral Agent or any other European Secured Party to any
security held for the payment of the European Obligations or to any balance of any
account or credit on the books of the European Collateral Agent or any other
European Secured Party in favor of the European Borrower or any other person.

 

SECTION 2.03.  No Limitations, Etc.  (a) Except for termination of a European
Guarantor’s obligations hereunder as expressly provided in Section 4.14,
the obligations of each European Guarantor hereunder shall not be subject to
any reduction, limitation (other than to the extent set forth in Sections 2.07,
2.08 or 2.09, as applicable), impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise,
and shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or unenforceability
of any European Obligation or otherwise. 
Without limiting the generality of the foregoing, the obligations of
each European Guarantor hereunder shall not be discharged or impaired or
otherwise affected by (i) the failure of the European Collateral Agent or any
other European Secured Party to assert any claim or demand or to enforce any
right or remedy under the provisions of any Loan Document or otherwise; (ii)
any rescission, waiver, amendment or modification of, or any release from any
of the terms or provisions of, any Loan Document or any other agreement,
including with respect to any other European Guarantor under this Agreement;
(iii) the release of any security held by the European Collateral Agent or any
other European Secured Party for the European Obligations or any of them; (iv)
any default, failure or delay, wilful or otherwise, in the performance of the
European Obligations; or (v) any other act or omission that may or might in any
manner or to any extent vary the risk of any European Guarantor or otherwise
operate as a discharge of any European Guarantor as a matter of law or equity
(other than the payment in full in cash of all European Obligations).  To the fullest extent permitted by applicable
law, each European Guarantor expressly authorizes the European Collateral Agent
to take and hold security for the payment and performance of the European
Obligations, to exchange, waive or release any or all such security (with or
without consideration), to enforce or apply such security and direct the order
and manner of any sale thereof in its sole discretion or to release or
substitute any one or more other guarantors or obligors upon or in respect of
the European Obligations, all without affecting the obligations of any European
Guarantor hereunder.  The European
Collateral Agent shall administer all German Pledge Agreements or other
European Security Documents which are transferred to any European Secured Party
under an accessory security right in the name and on behalf of the European
Secured Parties pursuant to the laws of the Federal Republic of Germany.

 

5

 

(b)  To the fullest extent
permitted by applicable law, each European Guarantor waives any defense based
on or arising out of any defense of the European Borrower or any other European
Loan Party or the unenforceability of the European Obligations or any part
thereof from any cause, or the cessation from any cause of the liability of the
European Borrower or any other Loan Party, other than the payment in full in
cash of all the European Obligations. 
The European Collateral Agent and the other European Secured Parties
may, at their election, foreclose on any security held by one or more of them
by one or more judicial or nonjudicial sales, accept an assignment of any such
security in lieu of foreclosure, compromise or adjust any part of the European
Obligations, make any other accommodation with the European Borrower or any
other European Loan Party or exercise any other right or remedy available to
them against the European Borrower or any other European Loan Party, without
affecting or impairing in any way the liability of any European Guarantor
hereunder except to the extent the European Obligations have been fully and
paid in full in cash. To the fullest extent permitted by applicable law, each
European Guarantor waives any defense arising out of any such election even
though such election operates, pursuant to applicable law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy
of such European Guarantor against the European Borrower or any other European
Loan Party, as the case may be, or any security.

 

SECTION 2.04.  Reinstatement.  Each of the European Guarantors agrees that
its guarantee hereunder shall continue to be effective or be reinstated, as the
case may be, if at any time payment, or any part thereof, of any European
Obligation is rescinded or must otherwise be restored by the European
Collateral Agent or any other European Secured Party upon the bankruptcy or
reorganization of the European Borrower, any other European Loan Party or
otherwise.

 

SECTION 2.05.  Agreement To Pay; Subrogation.  In furtherance of the foregoing and not in
limitation of any other right that the European Collateral Agent or any other
European Secured Party has at law or in equity against any European Guarantor
by virtue hereof, upon the failure of the European Borrower or any other
European Loan Party to pay any European Obligation when and as the same shall
become due, whether at maturity, by acceleration, after notice of prepayment or
otherwise, each European Guarantor hereby promises to and will forthwith pay,
or cause to be paid, to the European Collateral Agent for distribution to the
applicable European Secured Parties in cash the amount of such unpaid European
Obligation.  Upon payment by any
European Guarantor of any sums to the European Collateral Agent as provided
above, all rights of such European Guarantor against the European Borrower or
any other European Guarantor arising as a result thereof by way of right of
subrogation, contribution, reimbursement, indemnity or otherwise shall in all
respects be subject to Article III.

 

SECTION 2.06.  Information.  Each European Guarantor assumes all
responsibility for being and keeping itself informed of the European Borrower’s
and each other European Loan Party’s financial condition and assets, and of all
other circumstances bearing upon the risk of nonpayment of the European
Obligations and the nature, scope and extent of the risks that such European
Guarantor assumes and incurs hereunder, and agrees that none of the European
Collateral Agent or the other European

 

6

 

Secured
Parties will have any duty to advise the European Borrower or such European
Guarantor of information known to it or any of them regarding such
circumstances or risks.

SECTION 2.07.  Limitation on Guarantees
Under French Law.  Notwithstanding anyting to the contrary set
forth herein, the maximum amount payable by the French Subsidiary Guarantors
pursuant to this Agreement shall be limited as follows:

 

(a)  the maximum amount payable by any
French Subsidiary Guarantor which is a financial holding company shall not
exceed 50% of such French Subsidiary Guarantor’s net assets (capitaux
propres, as such term is defined in article 22 of the French
decree no. 83-1020 of November 29, 1983) at the time the guarantee of such
French Subsidiary Guarantor is enforced, provided that such amount shall not
exceed their financial capacities; and

 

(b)  the maximum amount payable by any
French Subsidiary Guarantor which is an operating company with existing
indebtedness incurred in the course of its trading activity shall not exceed
its financial capacities at the time the guarantee of such French Subsidiary
Guarantor is enforced (provided that the indebtedness incurred by such French
Subsidiary Guarantor in the course of its trading activity shall be taken into
account to determine its financial capacities to pay the amount called under
the Guarantee).

 

In addition, in accordance with article L.225-216 of the French
Commercial Code, the guarantee of a Specified French Subsidiary Guarantor under
this Agreement shall not extend to any European Obligation incurred for the
purpose of financing or refinancing the acquisition or the subscription of the
shares of such Specified French Subsidiary Guarantor.  Consequently, no obligation or liability incurred under or
deriving from (i) the Term B-2 Loans or (ii) any European Revolving Borrowing
used for the purpose of financing or refinancing of the acquisition or the
subscription of such French Subsidiary Guarantor shall be guaranteed any
Specified French Subsidiary Guarantor.

 

SECTION 2.08.  Limitation on Guarantees
Under German Law.  The European
Collateral Agent agrees to release proceeds from the enforcement of the
guarantee created hereunder or any security granted by a German Subsidiary
Guarantor that is a limited liability company (Gesellschaft
mit beschränkter Haftung) or a limited partnership (Kommanditgesellschaft) (the “Relevant German Obligor”) under any Loan
Document if and to the extent that such guarantee or security is an up-stream
or cross-stream guarantee or security and that the application of proceeds
would otherwise lead to the situation that the Relevant German Obligor does not
have sufficient assets to maintain its stated share capital (Stammkapital) in accordance with
Section 30 German Limited Liability Companies Act (Gesetz
betreffend die Gesellschaften mit beschränkter Haftung; GmbHG) (and
in case of a limited partnership this shall apply to the general partner which
is incorporated in the form of a limited liability company (Gesellschaft mit beschränkter Haftung)) provided that for
the purposes of the calculation of the amount to be released (if any) the
following balance sheet items shall be adjusted as follows:

 

7

 

(a)  the amount of any increase
of stated share capital (Stammkapital) after the date hereof (and
in case of a limited partnership this shall apply to the general partner which
is incorporated in the form of a limited liability company (Gesellschaft mit beschränkter Haftung))
that has been effected without the prior written consent of the European Collateral
Agent shall be deducted from the stated share capital (Stammkapital);

 

(b)  loans provided to the
Relevant German Obligor by any of its direct or indirect shareholders as far as
such loans are either directly made from funds made available to such direct or
indirect shareholder under the Credit Agreement (on-lent) or are subordinated
or qualify under §32a of the German Limited Liability Companies Act (Gesetz betreffend die Gesellschaften mit beschränkter
Haftung; GmbHG) shall be disregarded; and

 

(c)  loans and other contractual
liabilities incurred in violation of the provisions of this Agreement and the
Credit Agreement shall be disregarded.

 

In addition, in a situation where the Relevant German Obligor does not
have sufficient assets to maintain its stated share capital (Stammkapital)
(and in case of a limited partnership this shall apply to the general partner
which is incorporated in the form of limited liability company (Gesellschaft mit beschränkter Haftung)),
the Relevant German Obligor shall sell and realize, if this is not unreasonable
in respect of its business and to the extent legally permitted, any and all of
its assets that are shown in the balance sheet with a book value (Buchwert)
that is significantly lower than the market value of the asset if such asset is
not necessary for its business (betriebsnotwendig).

 

SECTION 2.09.  Limitation on Guarantees
Under Luxembourg Law.  Notwithstanding
anything to the contrary set forth herein, the aggregate amount payable by any
Luxembourg Subsidiary Guarantor under this Agreement shall, except for
down-stream guarantees (which shall be unlimited), be limited to an amount not
exceeding at any time the greatest of:

 

(a)  the principal
amount transferred by the European Borrower to such Luxembourg Subsidiary
Guarantor in exchange for non-interest bearing notes;

 

(b)  ninety per cent
(90%) of such Luxembourg Subsidiary Guarantor’s net assets (capitaux propres as referred to in
article 214 of the amended Luxembourg Law of 10 August 1915 on
Commercial Companies) as reflected in its then most recent annual accounts
approved by a shareholders meeting; and

 

(c)  ninety per cent
(90%) of such Luxembourg Subsidiary Guarantor’s net assets (capitaux propres as referred to in
article 214 of the amended Luxembourg Law of 10 August 1915 on
Commercial Companies) as at the date of this Agreement.

 

Notwithstanding anything to the contrary set forth herein, the European
Secured Parties hereby expressly acknowledge and agree that, in the event that
this guarantee shall be enforced, the liability of Sensus Metering Systems
(LuxCo 3) SARL

 

8

 

hereunder shall be limited to the proceeds of enforcement of the pledge
constituted on the date hereof by Sensus Metering Systems (LuxCo 3) SARL over
its shares in Sensus Metering Systems France Holdings.  No other assets or property of Sensus
Metering Systems (LuxCo 3) SARL shall be realized to perform its obligations
under this guarantee.  The foregoing
limitation of recourse shall be of essence to Sensus Metering Systems (LuxCo 3)
SARL’s obligations hereunder.

 

ARTICLE III

Indemnity, Subrogation and Subordination

 

SECTION 3.01.  Indemnity and Subrogation.  In addition to all such rights of indemnity
and subrogation as the European Guarantors may have under applicable law (but
subject to Section 3.03), the European Borrower agrees that (a) in
the event a payment shall be made by any European Guarantor under this
Agreement, the European Borrower shall indemnify such European Guarantor for
the full amount of such payment and such European Guarantor shall be subrogated
to the rights of the person to whom such payment shall have been made to the
extent of such payment and (b) in the event any assets of any European
Guarantor shall be sold pursuant to this Agreement or any other European
Security Document to satisfy in whole or in part a claim of any European
Secured Party, the European Borrower shall indemnify such European Guarantor in
an amount equal to the greater of the book value or the fair market value of
the assets so sold.

 

SECTION 3.02.  Contribution and
Subrogation.  Each European
Guarantor (a “Contributing
Guarantor”) agrees (subject to Section 3.03) that, in the
event a payment shall be made by any other European Guarantor hereunder in
respect of any European Obligation or assets of any other European Guarantor
shall be sold pursuant to any European Security Document to satisfy any
European Obligation owed to any European Secured Party and such other European
Guarantor (the “Claiming
Guarantor”) shall not have been fully indemnified by the
European Borrower as provided in Section 3.01, the Contributing Guarantor
shall indemnify the Claiming Guarantor in an amount equal to the amount of such
payment or the greater of the book value or the fair market value of such
assets, as the case may be, in each case multiplied by a fraction of which the
numerator shall be the net worth of the Contributing Guarantor on the date
hereof and the denominator shall be the aggregate net worth of all the European
Guarantors on the date hereof (or, in the case of any European Guarantor
becoming a party hereto pursuant to Section 4.16, the date of the
Supplement hereto executed and delivered by such European Guarantor).  Any Contributing Guarantor making any
payment to a Claiming Guarantor pursuant to this Section 3.02 shall be
subrogated to the rights of such Claiming Guarantor under Section 3.01 to
the extent of such payment.

 

SECTION 3.03.  Subordination.  (a) Notwithstanding any provision of this
Agreement to the contrary, all rights of the European Guarantors under
Sections 3.01 and 3.02 and all other rights of indemnity, contribution or
subrogation under applicable law

 

9

 

or otherwise
shall be fully subordinated to the indefeasible payment in full in cash of the
European Obligations.  No failure on the
part of the European Borrower or any European Guarantor to make the payments
required by Sections 3.01 and 3.02 (or any other payments required under
applicable law or otherwise) shall in any respect limit the obligations and
liabilities of any European Guarantor with respect to its obligations
hereunder, and each European Guarantor shall remain liable for the full amount
of its obligations hereunder.

 

(b)  The European Borrower and
each European Guarantor hereby agrees that all Indebtedness and other monetary
obligations owed by it to the European Borrower or any other Subsidiary shall
be fully subordinated to the indefeasible payment in full in cash of the European
Obligations.

 

ARTICLE IV

Miscellaneous

 

SECTION 4.01.  Notices.  All communications and notices hereunder
shall be in writing and given as provided in Section 9.01 of the Credit
Agreement.  All communications and
notices hereunder to any European Guarantor shall be given to it in care of the
European Borrower as provided in Section 9.01 of the Credit Agreement.

 

SECTION 4.02.  Rights and Obligations
Absolute.  All rights of the
European Collateral Agent hereunder and all obligations of each European Loan
Party hereunder shall be absolute and unconditional irrespective of, to the
fullest extent permitted by applicable law (a) any lack of validity or
enforceability of the Credit Agreement, any other Loan Document, any agreement
with respect to any European Obligation or any other agreement or instrument
relating to any of the foregoing, (b) any change in the time, manner or
place of payment of, or in any other term of, all or any of the European
Obligations, or any other amendment or waiver of or any consent to any
departure from the Credit Agreement, any other Loan Document or any other
agreement or instrument, (c) any exchange, release or non-perfection with
respect to any security, or any release or amendment or waiver of or consent
under or departure from any guarantee, securing or guaranteeing all or any of
the European Obligations, or (d) any other circumstance that might
otherwise constitute a defense available to, or a discharge of, any European
Loan Party in respect of the European Obligations or this Agreement.

 

SECTION 4.03.  Survival of Agreement.  All covenants, agreements, representations
and warranties made by the European Loan Parties in the Loan Documents and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the other parties hereto and shall survive the
execution and delivery of the Loan Documents and the making of any Loans to the
European Borrower and issuance of any European Letters of Credit, regardless of
any investigation made by any such other party or on its behalf and
notwithstanding that the European Collateral Agent, any European Issuing Bank
or any European Lender may

 

10

 

have had
notice or knowledge of any Default or incorrect representation or warranty at
the time any credit is extended under the Credit Agreement, and shall continue
in full force and effect as long as the principal of or any accrued interest on
any Loan to the European Borrower or any related fee or any other related
amount payable under any Loan Document is outstanding and unpaid or the
aggregate European L/C Exposure does not equal zero and so long as the
Commitments to make Loans to the European Borrower have not expired or
terminated.

 

SECTION 4.04.  Binding Effect; Several
Agreement.  This Agreement shall
become effective as to any European Loan Party when a counterpart hereof
executed on behalf of such European Loan Party shall have been delivered to the
European Collateral Agent and a counterpart hereof shall have been executed on
behalf of the European Collateral Agent, and thereafter shall be binding upon
such European Loan Party and the European Collateral Agent and their respective
permitted successors and assigns, and shall inure to the benefit of such
European Loan Party, the European Collateral Agent and the other European
Secured Parties and their respective successors and assigns, except that no
European Loan Party shall have the right to assign or transfer its rights or
obligations hereunder or any interest herein (and any such assignment or
transfer shall be void).  This Agreement
shall be construed as a separate agreement with respect to each European Loan
Party and may be amended, modified, supplemented, waived or released with
respect to any European Loan Party without the approval of any other European
Loan Party and without affecting the obligations of any other European Loan
Party hereunder.

 

SECTION 4.05.  Successors and Assigns.  Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the
permitted successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of any European Loan Party or the European
Collateral Agent that are contained in this Agreement shall bind and inure to
the benefit of their respective successors and assigns.

 

SECTION 4.06.  European Collateral Agent’s
Fees and Expenses; Indemnification. 
(a) The parties hereto agree that the European Collateral Agent shall be
entitled to reimbursement of its reasonable and documented expenses incurred
hereunder as provided in Section 9.05 of the Credit Agreement.

 

(b)  Without limitation of its
indemnification obligations under the other Loan Documents, each European Loan
Party jointly and severally agrees to indemnify the European Collateral Agent
and the other Indemnitees against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, liabilities and related reasonable and
documented out of pocket expenses, including the reasonable and documented
fees, charges and disbursements of any counsel for any Indemnitee, incurred by
or asserted against any Indemnitee arising out of, in any way connected with,
or as a result of, the execution, delivery or performance of this Agreement or
any agreement or instrument contemplated hereby or any claim, litigation,
investigation or proceeding relating to any of the foregoing agreements or
instruments contemplated hereby or thereby, whether or not any Indemnitee is a
party thereto; provided, however,
that such

 

11

 

indemnity
shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence, wilful misconduct or bad faith of such Indemnitee
(and any Indemnitee receiving payment under this Section 4.06(b) shall
promptly refund the amount of such payment to the extent that there is a final
and nonappealable judgment of a court of competent jurisdiction that such
Indemnitee was not entitled to indemnification in respect of such payment by
virtue of such Indemnitee’s gross negligence, wilful misconduct or bad faith).

 

(c)  Any such amounts payable as
provided hereunder shall be additional European Obligations guaranteed hereby
and secured by the other European Security Documents.  The provisions of this Section 4.06
shall remain operative and in full force and effect regardless of the
termination of this Agreement or any other Loan Document, the consummation of
the transactions contemplated hereby, the repayment of any of the European
Obligations, the invalidity or unenforceability of any term or provision of
this Agreement or any other Loan Document, or any investigation made by or on
behalf of the European Collateral Agent or any other European Secured Party.  All amounts due under this Section 4.06
shall be payable on written demand therefor and shall bear interest at the rate
specified in Section 2.06(a) of the Credit Agreement.

 

SECTION 4.07.  Applicable Law.  THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

 

SECTION 4.08.  Waivers; Amendment.  (a) No failure or delay by the European
Collateral Agent, any European Lender or any European Issuing Bank in
exercising any right or power hereunder or under any other Loan Document shall
operate as a waiver hereof or thereof, nor shall any single or partial exercise
of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. 
The rights and remedies of the European Collateral Agent, the European
Lenders and the European Issuing Banks hereunder and under the other Loan
Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have.  No waiver of
any provision of any Loan Document or consent to any departure by any European
Loan Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given.  Without limiting the
generality of the foregoing, the making of a Loan to the European Borrower or
issuance of a European Letter of Credit shall not be construed as a waiver of
any Default, regardless of whether the European Collateral Agent, any European
Lender or any European Issuing Bank may have had notice or knowledge of such
Default at the time.  No notice or demand
on any European Loan Party in any case shall entitle any European Loan Party to
any other or further notice or demand in similar or other circumstances.

 

12

 

(b)  Neither this Agreement nor
any provision hereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the European Collateral
Agent and the European Loan Party or European Loan Parties with respect to
which such waiver, amendment or modification is to apply, subject to any consent
required in accordance with Section 9.08 of the Credit Agreement.

 

SECTION 4.09.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 4.10.

 

SECTION 4.10.  Severability.  In the event any one or more of the
provisions contained in this Agreement or in any other Loan Document should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby (it being understood that
the invalidity of a particular provision in a particular jurisdiction shall not
in and of itself affect the validity of such provision in any other
jurisdiction).  The parties shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

 

SECTION 4.11.  Counterparts.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together
shall constitute a single contract, and shall become effective as provided in
Section 4.04.  Delivery of an
executed signature page to this Agreement by facsimile transmission shall be as
effective as delivery of a manually signed counterpart of this Agreement.

 

SECTION 4.12.  Headings.  Article and Section headings and
the Table of Contents used herein are for convenience of reference only, are
not part of this Agreement and are not to affect the construction of, or to be
taken into consideration in interpreting, this Agreement.

 

SECTION 4.13.  Jurisdiction; Consent to
Service of Process.  (a) Each of the
European Loan Parties hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or Federal

 

13

 

court of the
United States of America, sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to
this Agreement or any other Loan Document, or for recognition or enforcement of
any judgment, and each of the European Loan Parties hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the
extent permitted by law, in such Federal court.  Each of the European Loan Parties agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by
law.  Nothing in this Agreement or any
other Loan Document shall affect any right that the European Collateral Agent,
any European Lender or any European Issuing Bank may otherwise have to bring
any action or proceeding relating to this Agreement or any other Loan Document
against any European Loan Party or its properties in the courts of any
jurisdiction.

 

(b)  Each of the European Loan
Parties hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or any other Loan Document in any court referred to
in paragraph (a) of this Section.  Each
of the European Loan Parties hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

 

(c)  Each of the European Loan
Parties hereby agrees that service of any process, summons, notice or document
by registered mail addressed to such European Loan Party or if required under
applicable law, otherwise in accordance with such applicable law, shall be
effective service of process for any suit, action or proceeding brought.  Each of the European Loan Parties hereby
agrees to promptly appoint an authorized agent organized in the United States
and reasonably satisfactory to the European Administrative Agent, upon whom
process may be served in any suit, action or proceeding arising out of or
relating to this Agreement or any other Loan Document.  Each of the European Loan Parties hereby
agrees to take any and all actions, including the filing of any and all
documents, that may be necessary to establish and continue such appointment in
full force and effect as aforesaid. 
Service of process upon such authorized agent shall be deemed, in every
respect, effective service of process upon the applicable European Loan
Party.  Nothing in this Agreement or any
other Loan Document will affect the right of the European Collateral Agent to
serve process in any other manner permitted by law.

 

SECTION 4.14.  Termination or Release.  (a)  This
Agreement and the Guarantees made hereunder shall terminate when all the
European Loan Document Obligations (other than wholly contingent
indemnification obligations) then due and owing have been paid in full and the
European Lenders have no further commitment to lend under the Credit Agreement,
the aggregate European L/C Exposures have been reduced to zero (or, with
respect to any outstanding European Letters of Credit, arrangements reasonably
satisfactory to the applicable Issuing Bank have been entered into) and the
European Issuing Banks have no further obligations to issue European Letters of
Credit under the Credit Agreement.

 

14

 

(b)  A European Subsidiary
Guarantor shall automatically be released from its obligations hereunder upon
the consummation of any transaction permitted by the Credit Agreement as a
result of which such European Subsidiary Guarantor ceases to be a Subsidiary of
the European Borrower.

 

(c)  In connection with any
termination or release pursuant to paragraph (a) or (b) above, the
European Collateral Agent shall execute and deliver to any European Loan Party,
at such European Loan Party’s expense, all documents that such European Loan
Party shall reasonably request to evidence such termination or release.  Any execution and delivery of documents
pursuant to this Section 4.14 shall be without recourse to or warranty by
the European Collateral Agent (other than as to the absence of any lien or
encumbrance created by it).  Without limiting
the provisions of Section 4.06, the European Borrower shall reimburse the
European Collateral Agent upon demand for all reasonable and documented costs
and out of pocket expenses, including the reasonable and documented fees,
charges and disbursements of counsel, incurred by it in connection with any
action contemplated by this Section 4.14.

 

SECTION 4.15.  Additional Grantors.  Pursuant to Section 5.09 of the Credit
Agreement, each Foreign Subsidiary organized under the laws of the Republic of
France or the Federal Republic of Germany (other than any such Foreign
Subsidiary that is an Immaterial Subsidiary) that (i) was not in existence
or not a Subsidiary on the Closing Date or (ii) is such a Foreign
Subsidiary that has ceased being an Immaterial Subsidiary, is required to enter
in this Agreement as a European Subsidiary Guarantor upon becoming such a
Subsidiary or ceasing to be such an Immaterial Subsidiary, as the case may
be.  Upon execution and delivery by the
European Collateral Agent and any such Foreign Subsidiary of a supplement in
the form of Exhibit A hereto, such Foreign Subsidiary shall become a
European Subsidiary Guarantor hereunder with the same force and effect as if
originally named as a European Subsidiary Guarantor herein.  The execution and delivery of any such
instrument shall not require the consent of any other European Loan Party
hereunder.  The rights and obligations
of each European Loan Party hereunder shall remain in full force and effect
notwithstanding the addition of any new European Subsidiary Guarantor as a
party to this Agreement.

 

SECTION 4.16.  Right of Setoff.  If an Event of Default shall have occurred
and is continuing, each European Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other obligations at any time owing by such European
Lender to or for the credit or the account of any European Loan Party against
any and all of the obligations of such European Loan Party now or hereafter
existing under this Agreement held by such European Lender, irrespective of
whether or not such European Lender shall have made any demand under this
Agreement and although such obligations may be unmatured.  The rights of each European Lender under
this Section are in addition to other rights and remedies (including other
rights of setoff) which such European Lender may have.

 

15

 

SECTION 4.17.  Conflicts.  In the event of any conflict between a
provision contained herein and a provision contained in the Credit Agreement,
the provision contained in the Credit Agreement shall control.

 

SECTION 4.18.  Parallel Debt.  (a) Each European Loan Party hereby agrees
and covenants with the European Collateral Agent that each of them shall pay to
the European Collateral Agent sums equal to, and in the currency of, any sums
owing by such European Loan Party to a European Secured Party (other than the
European Collateral Agent) pursuant to any European Obligation (the “Principal Obligations”)
as and when the same becomes due for payment under any Loan Document (the “Parallel Obligations”).

 

(b)  The European Collateral
Agent shall have its own independent right to demand payment of the Parallel
Obligations by the European Loan Parties. 
The rights of the European Secured Parties to receive payment of the
Principal Obligations are several from the rights of the European Collateral Agent
to receive the Parallel Obligations; provided that (i) the payment by a European
Loan Party of its Parallel Obligations to the European Collateral Agent in
accordance with this Section 4.18 shall discharge the corresponding
Principal Obligations and (ii) the payment by a European Loan Party of its
Principal Obligations in accordance with the provisions of any Loan Document
shall discharge the corresponding Parallel Obligations.  Upon the discharge of the Principal
Obligations (other than by way of set-off, counterclaim or similar defence) of
any European Loan Party, the European Collateral Agent shall not be entitled to
demand payment of the corresponding Parallel Obligations of such European Loan
Party and such Parallel Obligations shall cease to exist.  Upon the discharge of the Parallel
Obligations (other than by way of set-off, counterclaim or similar defence) of
any European Loan Party, the European Collateral Agent shall not be entitled to
demand payment of the corresponding Principal Obligations of such European Loan
Party and such Principal Obligations shall cease to exist.

 

(c)  Notwithstanding anything to
the contrary set forth herein, all payments with respect to the European
Obligations shall be made to the Applicable Administrative Agent or as
otherwise contemplated in the Credit Agreement.

 

16

 

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

 

	
   

  	
  SENSUS METERING SYSTEMS (LUXCO 2) S.AR.L.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS (BERMUDA 3) LTD.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS (LUXCO 1) S.AR.L.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS (LUXCO 3) S.AR.L.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS FRANCE HOLDINGS

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

17

 

	
   

  	
  FINANCIERE POLLUX,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  INVENSYS METERING SYSTEMS SAS

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  BLITZ F03-1420 GMBH

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  INVENSYS METERING SYSTEMS HOLDING GMBH

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  IMSERV GMBH

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  INVENSYS METERING SYSTEMS GMBH HANNOVER

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

18

 

	
   

  	
  POLLUX METER GMBH & CO. KG

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  INVENSYS METERING SYSTEMS GMBH LUDWIGSHAFEN

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

19

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting

  through its London Branch, as European

  Collateral Agent,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

20

 

SCHEDULE I TO EUROPEAN
GUARANTEE AGREEMENT

 

 

EUROPEAN SUBSIDIARY GUARANTORS

 

 

	
  Name of Subsidiary

  	
   

  	
  Jurisdiction
  of

  Organization

  	
   

  	
  Form of
  Organization

  
	
  Sensus
  Metering Systems (LuxCo 3) S.ÀR.L.

  	
   

  	
  Luxembourg

  	
   

  	
  société a responsabilité limitée

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sensus
  Metering Systems France Holdings

  	
   

  	
  France

  	
   

  	
  société par actions simplifiée

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Financiere
  Pollux

  	
   

  	
  France

  	
   

  	
  société anonyme

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys
  Metering Systems SAS (to be renamed Sensus Metering Systems (France) SAS)

  	
   

  	
  France

  	
   

  	
  société par actions simplifiée

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blitz
  S03-1420 GmbH (to be renamed Sensus Metering Systems (Germany Holding) GmbH)

  	
   

  	
  Germany

  	
   

  	
  limited liability company (Gesellschaft mit beschränkter Haftung)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys
  Metering Systems Holding GmbH (to be renamed IMS Holding GmbH)

  	
   

  	
  Germany

  	
   

  	
  limited liability company (Gesellschaft mit beschränkter Haftung)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IMServ
  GmbH

  	
   

  	
  Germany

  	
   

  	
  limited liability company (Gesellschaft mit beschränkter Haftung)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys
  Metering Systems GmbH Hannover (to be renamed Sensus Metering Systems
  (Hannover Holdings) GmbH)

  	
   

  	
  Germany

  	
   

  	
  limited liability company (Gesellschaft mit beschränkter Haftung)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pollux
  Meter GmbH & Co. KG

  	
   

  	
  Germany

  	
   

  	
  limited partnership (Kommanditgesellschaft)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invensys
  Metering Systems GmbH Ludwigshafen (to be renamed Sensus Metering Systems
  (Ludwigshafen Holdings) GmbH)

  	
   

  	
  Germany

  	
   

  	
  limited liability company (Gesellschaft mit beschränkter Haftung)

  

 

 

EXHIBIT A TO EUROPEAN
GUARANTEE AGREEMENT

 

SUPPLEMENT NO. [•] dated as of [•], to the European
Guarantee Agreement dated as of December 17, 2003, among SENSUS METERING
SYSTEMS (LUXCO 2) S.AR.L., a société A responsabilité limitée incorporated
under Luxembourg law (the “European Borrower”),
SENSUS METERING SYSTEMS (BERMUDA 3) LTD., a company organized under the laws of
Bermuda (“Bermuda Intermediate
Holdco”), SENSUS METERING SYSTEMS (LUXCO 1) S.AR.L., a société A
responsabilité limitée incorporated under Luxembourg law (“Luxembourg Intermediate Holdco”), the
Subsidiaries of the European Borrower identified herein and CREDIT SUISSE FIRST
BOSTON (together with its affiliates, “CSFB”), as European collateral agent (the “European Collateral Agent”)
for the European Secured Parties.

 

A.  Reference is made to the
Credit Agreement dated as of December 17, 2003 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among Sensus Metering Systems
Inc., a Delaware corporation, the European Borrower, Sensus Metering Systems
(Bermuda 2) Ltd., a company organized under the laws of Bermuda, the lenders
from time to time party thereto (the “Lenders”) and CSFB, as general
administrative agent and as European administrative agent.

 

B. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the European Guarantee Agreement
and the Credit Agreement.

 

C. The European Loan Parties have entered into the European Guarantee
Agreement in order to induce the European Lenders and the European Issuing
Banks to extend credit to the European Borrower.  Pursuant to Section 5.09 of the Credit Agreement, each
Foreign Subsidiary organized under the laws of the Republic of France or the
Federal Republic of Germany (other than any such Foreign Subsidiary that is an
Immaterial Subsidiary) that (i) was not in existence or not a Subsidiary on the
Closing Date or (ii) is such a Foreign Subsidiary that has ceased being an
Immaterial Subsidiary, is required to enter into the European Guarantee
Agreement as a European Subsidiary Guarantor upon becoming a such a Foreign
Subsidiary.  Section 4.15 of the
European Guarantee Agreement provides that additional Foreign Subsidiaries of
the European Borrower may become European Subsidiary Guarantors under the
European Guarantee Agreement by execution and delivery of this Supplement.  The undersigned Subsidiary of the European
Borrower (the “New Guarantor”) is
executing this Supplement in accordance with the requirements of the Credit
Agreement to become a European Subsidiary Guarantor under the European
Guarantee Agreement in order to induce the European Lenders and the European
Issuing Banks to continue to extend credit to the

 

 

European Borrower and as consideration for Loans previously made to the
European Borrower and European Letters of Credit previously issued.

 

Accordingly, the European Collateral Agent and the New Guarantor agree
as follows:

 

SECTION 1.  In accordance
with Section 4.15 of the European Guarantee Agreement, the New Guarantor
by its signature below becomes a European Subsidiary Guarantor under the
European Guarantee Agreement with the same force and effect as if originally
named therein as a European Subsidiary Guarantor and the New Guarantor hereby
(a) agrees to all the terms and provisions of the European Guarantee Agreement
applicable to it as a European Subsidiary Guarantor thereunder and
(b) represents and warrants that the representations and warranties made
by it as a European Subsidiary Guarantor thereunder are true and correct on and
as of the date hereof.  Each reference
to a “European Subsidiary
Guarantor” in the European Guarantee Agreement shall be deemed
to include the New Guarantor.  The
European Guarantee Agreement is hereby incorporated herein by reference.

 

SECTION 2.  The New
Guarantor represents and warrants to the European Collateral Agent and the
other European Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms.

 

SECTION 3.  This Supplement
may be executed in counterparts, each of which shall constitute an original,
but all of which when taken together shall constitute a single contract.  This Supplement shall become effective when
the European Collateral Agent shall have received counterparts of this
Supplement that, when taken together, bear the signatures of the New Guarantor
and the European Collateral Agent. 
Delivery of an executed signature page to this Supplement by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart of this Supplement.

 

SECTION 4.  Except as
expressly supplemented hereby, the European Guarantee Agreement shall remain in
full force and effect.

 

SECTION 5.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 6.  In case any one
or more of the provisions contained in this Supplement should be held invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and in the European
Guarantee Agreement shall not in any way be affected or impaired thereby (it
being understood that the invalidity of a particular provision hereof in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). 
The parties hereto shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of

 

2

 

which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

 

SECTION 7.  All
communications and notices hereunder shall be in writing and given as provided
in Section 4.01 of the European Guarantee Agreement.  All communications and notices hereunder to
the New Guarantor shall be given to it at the address set forth under its
signature below, with a copy to the European Borrower.

 

SECTION 8.  The New
Guarantor agrees to reimburse the European Collateral Agent for its
out-of-pocket expenses in connection with this Supplement, including the fees,
disbursements and other charges of counsel for the European Collateral Agent.

 

IN WITNESS WHEREOF, the New Guarantor and the European Collateral Agent
have duly executed this Supplement to the European Guarantee Agreement as of
the day and year first above written.

 

	
   

  	
  [NAME OF NEW GUARANTOR],

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting

  through its London Branch, as European

  Collateral Agent,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]