Document:

exv10w2

Exhibit 10.2

Execution Version

SECOND AMENDED AND RESTATED CANADIAN SECURITY AGREEMENT

Dated April 26, 2011

From

THE GRANTORS REFERRED TO HEREIN

AS GRANTORS

To

BANK OF AMERICA, N.A.

(as successor agent to Citicorp USA, Inc.)

AS AGENT

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1 GRANT OF SECURITY
	 	 	2	 
	SECTION 2 SECURITY FOR OBLIGATIONS
	 	 	6	 
	SECTION 3 GRANTORS REMAIN LIABLE
	 	 	7	 
	SECTION 4 DELIVERY AND CONTROL OF SECURITY COLLATERAL
	 	 	7	 
	SECTION 5 MAINTAINING THE ACCOUNT COLLATERAL
	 	 	9	 
	SECTION 6 REPRESENTATIONS AND WARRANTIES
	 	 	9	 
	SECTION 7 FURTHER ASSURANCES
	 	 	13	 
	SECTION 8 AS TO EQUIPMENT AND INVENTORY
	 	 	14	 
	SECTION 9 INSURANCE
	 	 	14	 
	SECTION 10 POST-CLOSING CHANGES; COLLECTIONS ON ASSIGNED AGREEMENTS AND RECEIVABLES
	 	 	16	 
	SECTION 11 AS TO INTELLECTUAL PROPERTY COLLATERAL
	 	 	17	 
	SECTION 12 VOTING RIGHTS; DIVIDENDS; ETC
	 	 	18	 
	SECTION 13 AS TO THE ASSIGNED AGREEMENTS
	 	 	19	 
	SECTION 14 AS TO LETTER-OF-CREDIT RIGHTS
	 	 	20	 
	SECTION 15 TRANSFERS AND OTHER LIENS; ADDITIONAL SHARES
	 	 	20	 
	SECTION 16 AGENT APPOINTED ATTORNEY IN FACT
	 	 	21	 
	SECTION 17 AGENT MAY PERFORM
	 	 	21	 
	SECTION 18 THE AGENT’S DUTIES
	 	 	21	 
	SECTION 19 REMEDIES
	 	 	22	 
	SECTION 20 INDEMNITY AND EXPENSES
	 	 	25	 
	SECTION 21 AMENDMENTS; WAIVERS; ADDITIONAL GRANTORS; ETC
	 	 	25	 
	SECTION 22 CONFIDENTIALITY; NOTICES; REFERENCES
	 	 	26	 
	SECTION 23 CONTINUING SECURITY INTEREST; ASSIGNMENTS UNDER THE
CREDIT AGREEMENT
	 	 	27	 
	SECTION 24 RELEASE; TERMINATION
	 	 	27	 
	SECTION 25 CURRENCY REFERENCES
	 	 	28	 
	SECTION 26 EXECUTION IN COUNTERPARTS
	 	 	28	 
	SECTION 27 GOVERNING LAW
	 	 	28	 
	SECTION 28 CONTINUATION OF LIENS GRANTED UNDER THE EXISTING ` CANADIAN SECURITY
AGREEMENT
	 	 	28	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	Schedules
	 	 	 	 
	Schedule I
	 	—	 	Investment Property
	Schedule II
	 	—	 	Pledged Deposit Accounts
	Schedule III
	 	—	 	Receivables and Agreement Collateral
	Schedule IV
	 	 	 	Intellectual Property
	Schedule V
	 	—	 	Location, Chief Executive Office, Type of Organization, Jurisdiction of Organization
	 
	 	 	 	and Organizational Identification Number
	Schedule VI
	 	—	 	Changes in Name, Location, Etc.
	Schedule VII
	 	—	 	Letters of Credit
	Schedule VIII
	 	—	 	Equipment Locations
	Schedule IX
	 	—	 	Inventory Locations
	Schedule X
	 	—	 	Collateral Reserved for Sale
	 
	 	 	 	 
	Exhibits
	 	 	 	 
	 
	 	 	 	 
	Exhibit A
	 	—	 	Form of Intellectual Property Security Agreement
	Exhibit B
	 	—	 	Form of Intellectual Property Security Agreement Supplement
	Exhibit C
	 	—	 	Form of Security Agreement Supplement

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SECOND AMENDED AND RESTATED CANADIAN SECURITY AGREEMENT

          SECOND AMENDED AND RESTATED CANADIAN SECURITY AGREEMENT dated April 26, 2011 (the “Agreement”)
made by Kodak Canada Inc., an Ontario corporation (the “Borrower”), and the other Persons listed on
the signature pages hereof, or which at any time execute and deliver a Canadian Security Agreement
Supplement (as hereinafter defined) in substantially the form attached hereto as Exhibit C (the
Borrower and such Persons so listed being, collectively, the “Grantors”), to Bank of America, N.A.,
as Agent (as successor agent to Citicorp USA, Inc.) (in such capacity, together with any successor
Agent appointed pursuant to Article VIII of the Credit Agreement (as hereinafter defined), the
“Agent”) for the Secured Parties (as hereinafter defined).

PRELIMINARY STATEMENTS

	 	(1)	 	The Borrower, the other Grantors and Citicorp USA, Inc., as Existing Agent, have
previously entered into that certain Security Agreement, dated as of October 18, 2005, as
amended and restated as of March 31, 2009, and as further amended by Amendment No. 1
thereto, dated as of January 27, 2010 and Amendment No. 2 thereto, dated as of March 5,
2010, and as further amended, supplemented or other modified prior to the date hereof (such
Security Agreement, as so amended, modified and supplemented, the “Existing Canadian
Security Agreement”), in connection with the Existing Credit Agreement.
	 
	 	(2)	 	Pursuant to the Second Amended and Restated Credit Agreement, dated as of the date
hereof, among the Borrower, Eastman Kodak Company, the Agent and Lenders party thereto (as
amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), the Existing Credit Agreement has been amended as set forth therein,
and as so amended, restated in its entirety.
	 
	 	(3)	 	Pursuant to, and on the terms and conditions set forth in, the Credit Agreement, Bank
of America, N.A. has succeeded to Citicorp USA, Inc. as Agent for the Lenders in respect of
the Revolving Credit Facility, including as the holder of the Collateral for the benefit of
the Lenders.
	 
	 	(4)	 	The Borrower, the other Grantors and the Agent desire to amend the provisions of the
Existing Canadian Security Agreement as set forth herein, and as so amended, restate the
Canadian Security Agreement in its entirety as set forth herein.
	 
	 	(5)	 	The Borrower is the owner of the shares of stock or other equity interests in its
Material Subsidiaries (such shares of stock or other equity interests, for so long as the
issuer thereof is a Material Subsidiary (as hereinafter defined), the “Initial Pledged
Equity”) as described in Part I of Schedule I hereto and issued by the Persons named
therein. Each Grantor is the holder of the indebtedness owed to such Grantor (the “Initial
Pledged Debt”) set forth opposite such Grantor’s name on and as otherwise described in Part
II of Schedule I hereto and issued by the obligors named therein.

 

 

	 	(6)	 	Each Grantor is the owner of the deposit accounts (together with all deposit accounts
now owned or hereafter acquired by the Grantors, the “Pledged Deposit Accounts”) set forth
opposite such Grantor’s name on Schedule II hereto.
	 
	 	(7)	 	It is a condition precedent to the making of Advances by the Lenders under the Credit
Agreement that the Grantors shall have granted the security interests contemplated by this
Agreement. Each Grantor will derive substantial direct or indirect benefit from the
transactions contemplated by this Agreement, the Credit Agreement and the other Loan
Documents.
	 
	 	(8)	 	Terms defined in the Credit Agreement and not otherwise defined in this Agreement are
used in this Agreement as defined in the Credit Agreement. Further, unless otherwise
defined in this Agreement or in the Credit Agreement and unless the context otherwise
requires, all the terms used in this Agreement without initial capitals, which are defined
in the PPSA (as defined below) or the STA (as defined below), have the same meanings in
this Agreement as in the PPSA or the STA, as applicable. “PPSA” means the Personal
Property Security Act as in effect from time to time in the Province of Ontario; provided
that, if the validity, perfection or the effect of perfection or non-perfection or the
priority of the security interest in any Collateral is governed by the Personal Property
Security Act as in effect in a jurisdiction other than the Province of Ontario, “PPSA”
means the Personal Property Security Act as in effect from time to time in such other
jurisdiction for purposes of the provisions hereof relating to such validity, perfection,
effect of perfection or non-perfection or priority. “STA” means the Securities Transfer
Act, 2006, S.O. 2006, c.8 or similar legislation of any other jurisdiction.

             NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make
Advances under the Credit Agreement, each Grantor hereby agrees with the Agent for the ratable
benefit of the Secured Parties to continue the grants made under the Existing Canadian Security
Agreement as amended and restated herein as follows:

SECTION 1 GRANT OF SECURITY

(1) Each Grantor hereby grants to the Agent, for the ratable benefit of the Secured Parties, a
security interest and a security interest is taken in such Grantor’s right, title and interest in
and to all of such Grantor’s present and future undertaking and property (collectively, the
“Collateral”) including, without limitation, all its present and after acquired personal property
and the following, in each case, as to each type of property, whether now owned or hereafter
acquired by such Grantor, wherever located, and whether now or hereafter existing or arising,
provided, however, in no event shall any lien or security interest be created in any asset which
is, or hereafter becomes, a “Principal Property” or consists of the capital stock or other equity
interest in, or indebtedness of, an entity which is, or hereafter becomes, a “Restricted
Subsidiary” as such terms are defined in the Indenture (as defined in the Credit Agreement) to the
extent that any lien or security interest in such asset created under this Agreement would require
that the notes or other debt securities issued pursuant to the Indenture be equally and ratably
secured by
such assets under the terms of the Indenture, and provided, further, that notwithstanding anything
herein to the contrary, in no event shall the Collateral (or, for certainty, the Pledged Equity (as

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hereinafter defined), or Security Collateral (as hereinafter defined) include or the security
interest granted under this Section 1 hereof attach to: (A) any assets of any Grantor located
outside of Canada (other than equity interests as otherwise provided in this Agreement), (B) any
deposit account for taxes, payroll, employee benefits or similar items and any other account or
financial asset in which such security interest would be unlawful or in violation of any Plan or
employee benefit agreement, (C) any lease, license, contract, or agreement or other property right,
to which any Grantor is a party or of any of its rights or interests thereunder if and for so long
as the grant of such security interest shall constitute or result in: (x) the abandonment,
invalidation, unenforceability or other impairment of any right, title or interest of any Grantor
therein, or (y) in a breach or termination pursuant to the terms of, or a default under, any such
lease, license, contract, agreement or other property right, (D) any real property or fixture, or
(E) the last day of the term of any lease or any agreement therefor now held or hereafter acquired
by a Grantor, but should the Agent enforce its security interest therein the Grantor will
thereafter stand possessed of such last day and must hold it in trust to assign the same to any
person acquiring such term in the course of the enforcement of such security interest, or (F) any
capital stock or assets of 1680382 Ontario Limited:

	 	(a)	 	all equipment in all of its forms, including, without limitation, all
machinery, tools, motor vehicles, vessels, aircraft and furniture (excepting all
fixtures), all parts thereof and all accessions thereto and all other tangible personal
property which is not Inventory (as hereafter defined) or consumer goods (any and all
such property being the “Equipment”);
	 
	 	(b)	 	all inventory in all of its forms, including, without limitation, (i) all raw
materials, work in process, finished goods and materials used or consumed in the
manufacture, production, preparation or shipping thereof, (ii) goods in which such
Grantor has an interest in mass or a joint or other interest or right of any kind
(including, without limitation, goods in which such Grantor has an interest or right as
consignee) and (iii) goods that are returned to or repossessed or stopped in transit by
such Grantor, and all accessions thereto and products thereof and documents therefor,
(any and all such property being the “Inventory”);
	 
	 	(c)	 	all accounts, instruments (including, without limitation, promissory notes),
deposit accounts, chattel paper, general intangibles (including, without limitation,
payment intangibles) and other obligations of any kind owing to the Grantors, whether
or not arising out of or in connection with the sale or lease of goods or the rendering
of services and whether or not earned by performance (any and all such instruments,
deposit accounts, chattel paper, general intangibles and other obligations to the
extent not referred to in clause (f), (g) or (h) below, being the “Receivables”), and
all supporting obligations, security agreements, Liens, leases, letters of credit and
other contracts owing to the Grantors or supporting the obligations owing to the
Grantors under the Receivables (collectively, the “Related Contracts”);
	 
	 	(d)	 	all chattel paper, warehouse receipts, bills of lading and other documents of
title, whether negotiable or not;

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	 	(e)	 	all coins or bills or other medium of exchange adopted for use as part of the
currency of Canada or of any foreign government;
	 
	 	(f)	 	the following (the “Security Collateral”):

	 	(i)	 	the Initial Pledged Equity and the certificates, if any,
representing the Initial Pledged Equity, and all dividends, distributions,
return of capital, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Initial Pledged Equity and all warrants, rights or options
issued thereon or with respect thereto;
	 
	 	(ii)	 	the Initial Pledged Debt and the instruments, if any,
evidencing the Initial Pledged Debt, and all interest, cash, instruments and
other property from time to time received, receivable or otherwise distributed
in respect of or in exchange for any or all of the Initial Pledged Debt;
	 
	 	(iii)	 	all additional shares of stock and other equity interests from
time to time acquired by such Grantor in any manner of (X) the issuers of the
Initial Pledged Equity and (Y) each direct Subsidiary of the Borrower that, for
the most recently completed fiscal year for which audited financial statements
of the Company are available, either (A) has, together with its Subsidiaries,
assets that exceed 5% of the total assets shown on the consolidating statements
of the Borrower and its Subsidiaries used in preparation of the Company’s
Consolidated statement of financial condition as of the last day of such period
or (B) has, together with its Subsidiaries, net sales that exceed 5% of the
Consolidated net sales of the Borrower and its Subsidiaries for such period
(each, for purposes of this Agreement, a “Material Subsidiary”) (such shares
and other equity interests, together with the Initial Pledged Equity, being the
“Pledged Equity”), and the certificates, if any, representing such additional
shares or other equity interests, and all dividends, distributions, return of
capital, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such shares or other equity interests and all warrants, rights or options
issued thereon or with respect thereto;
	 
	 	(iv)	 	all additional indebtedness from time to time owed to such
Grantor (such indebtedness, together with the Initial Pledged Debt, being the
“Pledged Debt”) and the instruments, if any, evidencing such indebtedness, and
all interest, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or
all of such indebtedness;
	 
	 	(v)	 	all security entitlements or commodity or futures contracts
carried in a securities account or commodity or futures account, all security
entitlements with respect to all financial assets from time to time credited 

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	 	 	 	to the Pledged Deposit Accounts and all financial assets, and all dividends,
distributions, return of capital, interest, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such security entitlements or
financial assets and all warrants, rights or options issued thereon with
respect thereto; and

	 	(vi)	 	all other investment property (including, without limitation,
all (A) securities, whether certificated or uncertificated, (B) security
entitlements, (C) securities accounts, (D) commodity or futures contracts and
(E) commodity or futures accounts, but excluding any equity interest in any
Affiliate excluded from the Pledged Equity) in which such Grantor has now, or
acquires from time to time hereafter, any right, title or interest in any
manner, and the certificates or instruments, if any, representing or evidencing
such investment property, and all dividends, distributions, return of capital,
interest, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such investment property and all warrants, rights or options issued thereon
or with respect thereto (“Investment Property”);

	 	(g)	 	each Hedge Agreement to which such Grantor is now or may hereafter become a
party, in each case as such agreements may be amended, amended and restated,
supplemented or otherwise modified from time to time (collectively, the “Assigned
Agreements”), including, without limitation, (i) all rights of such Grantor to receive
moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all
rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or
guarantee with respect to the Assigned Agreements, (iii) claims of such Grantor for
damages arising out of or for breach of or default under the Assigned Agreements and
(iv) the right of such Grantor to terminate the Assigned Agreements, to perform
thereunder and to compel performance and otherwise exercise all remedies thereunder
(all such Collateral being the “Agreement Collateral”);
	 
	 	(h)	 	the following (collectively, the “Account Collateral”):

	 	(i)	 	the Pledged Deposit Accounts and all funds and financial assets
from time to time credited thereto (including, without limitation, all Cash
Equivalents), and all certificates and instruments, if any, from time to
time representing or evidencing the Pledged Deposit Accounts;
	 
	 	(ii)	 	all promissory notes, certificates of deposit, cheques and
other instruments from time to time delivered to or otherwise possessed by the
Agent for or on behalf of such Grantor in substitution for or in addition to
any or all of the then existing Account Collateral; and

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	 	(iii)	 	all interest, dividends, distributions, cash, instruments and
other property from time to time received, receivable or otherwise distributed
in respect of or in exchange for any or all of the then existing Account
Collateral;

	 	(i)	 	the following (collectively, the “Intellectual Property Collateral”):

	 	(i)	 	all patents, patent applications, utility models and statutory
invention registrations, all inventions claimed or disclosed therein and all
improvements thereto (other than those patents and related rights currently
contemplated to be sold by any Grantor to the extent identified as such on
Schedule IV attached hereto) (“Patents”);
	 
	 	(ii)	 	all trademarks, service marks, domain names, trade dress,
logos, designs, slogans, trade names, business names, corporate names and other
source identifiers, whether registered or unregistered, together, in each case,
with the goodwill symbolized thereby (“Trademarks”);
	 
	 	(iii)	 	all copyrights, including, without limitation, copyrights in
computer software, internet web sites and the content thereof, whether
registered or unregistered (“Copyrights”); all confidential and proprietary
information, including, without limitation, know-how, trade secrets,
manufacturing and production processes and techniques, inventions, research and
development information, databases and data, including, without limitation,
technical data, financial, marketing and business data, pricing and cost
information, business and marketing plans and customer and supplier lists and
information (collectively, “Trade Secrets”), and all other intellectual,
industrial and intangible property of any type, including, without limitation,
industrial designs and integrated circuit topographies;
	 
	 	(iv)	 	except as set forth above, all registrations and applications
for registration for any of the foregoing, including, without limitation, those
registrations and applications for registration, together with all reissues,
divisions, continuations, continuations-in-part, extensions, renewals and
reexaminations thereof;
	 
	 	(v)	 	all agreements, permits, consents, orders and franchises
relating to the license, development, use or disclosure of any of the foregoing
to which
such Grantor, now or hereafter, is a party or a beneficiary (“IP
Agreements”); and
	 
	 	(vi)	 	any and all claims for damages and injunctive relief for past,
present and future infringement, dilution, misappropriation, violation, misuse
or breach with respect to any of the foregoing, with the right, but not the
obligation, to sue for and collect, or otherwise recover, such damages;

	 	(j)	 	all proceeds of, collateral for, income, royalties and other payments now or
hereafter due and payable with respect to, and supporting obligations relating to, any
and all of the Collateral (including, without limitation, proceeds, collateral 

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	 	 	 	and supporting obligations that constitute property of the types described in clauses (a)
through (i) of this Section 1) and, to the extent not otherwise included, all (A)
payments under insurance (whether or not the Agent is the loss payee thereof), or any
indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise
with respect to any of the foregoing Collateral, and (B) cash; and

	 	(k)	 	all books, papers, accounts, invoices, documents and other records in any form
evidencing or relating to any of the property described in this Section 1 and all
contracts, instruments and other rights and benefits in respect thereof and all
replacements of, substitutions for and increases, additions and accessions to any of
the property described in this Section 1.

(2) The Grantors each acknowledge that (i) value has been given, (ii) it has rights in the
Collateral (other than after-acquired Collateral), (iii) it has not agreed to postpone the time of
attachment of the security interests granted hereby, (iv) security interests granted hereby in
Collateral in which it acquires an interest after the execution of this Agreement attach when it
acquires such interest, and (v) it has received a duplicate copy of this Agreement.

SECTION 2 SECURITY FOR OBLIGATIONS

This Agreement secures, in the case of each Grantor, the payment and performance of all obligations
of such Grantor and the Subsidiaries of the Company now or hereafter existing under (a) the Loan
Documents, and (b) the Canadian Secured Agreements, whether direct or indirect, absolute or
contingent, and whether for principal, reimbursement obligations, interest, fees, premiums,
penalties, indemnifications, contract causes of action, costs, expenses or otherwise (all such
obligations being the “Secured Obligations”) owing to the Canadian Secured Parties (collectively,
the “Secured Parties”); provided that the Secured Obligations shall not include any such
obligations of any US Guarantor. Without limiting the generality of the foregoing, this Agreement
secures, as to each Grantor, the payment of all amounts that constitute part of the Secured
Obligations and would be owed by such Grantor or Subsidiary of the Company, as applicable, to any
Secured Party under the Loan Documents or Canadian Secured Agreements but for the fact that they
are unenforceable or not allowable due to the existence of a bankruptcy,
insolvency, reorganization or similar proceeding involving any of the Loan Parties and other
Subsidiaries of the Company.

SECTION 3 GRANTORS REMAIN LIABLE

	 	(a)	 	Anything herein to the contrary notwithstanding, (a) each Grantor shall remain
liable under the contracts and agreements included in such Grantor’s Collateral to
perform all of its duties and obligations thereunder to the extent set forth therein to
the same extent as if this Agreement had not been executed, (b) the exercise by the
Agent of any of the rights hereunder shall not release any Grantor from any of its
duties or obligations under the contracts and agreements included in the Collateral and
(c) no Secured Party shall have any obligation or liability under the contracts and
agreements included in the Collateral by reason of this Agreement or any other Loan
Document, nor shall any Secured Party be obligated to perform

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	 	 	 	any of the obligations or
duties of any Grantor thereunder or to take any action to collect or enforce any claim
for payment assigned hereunder.

	 	(b)	 	The security interest granted hereby does not and will not extend to, and
Collateral will not include, any agreement, right, franchise, licence or permit (the
“Contractual Rights”) to which a Grantor is a party or of which the Grantor has the
benefit, to the extent that the creation of the security interest herein would
constitute a breach of the terms of or permit any person to terminate the Contractual
Rights, but such Grantor must hold its interest therein in trust for the Agent and will
assign the Contractual Rights to the Agent on behalf of the Secured Parties forthwith
upon obtaining the consent of the other party thereto. Each Grantor agrees that it
will, upon the request of the Agent, following the occurrence and during the
continuance of an Event of Default, use its reasonable best efforts to obtain any
consent required to permit any Contractual Rights to be subjected to the security
interest.

SECTION 4 DELIVERY AND CONTROL OF SECURITY COLLATERAL

	 	(a)	 	All certificates or instruments representing or evidencing Pledged Equity or
Pledged Debt shall be promptly delivered to and held by or on behalf of the Agent
pursuant hereto and shall be in suitable form for transfer by delivery, or shall be
accompanied by duly executed instruments of transfer or assignment in blank, all in
form and substance reasonably satisfactory to the Agent except to the extent that such
transfer or assignment is (x) prohibited by applicable law or (y) subject to certain
corporate actions by the holders or issuers of non-US Initial Pledged Equity which have
not occurred as of the Effective Date and governmental approvals or consents to pledge
or transfer with respect to non-US Material Subsidiaries which have not yet been
obtained as to which Grantor shall use commercially reasonable efforts to complete as
soon as practicable after the date hereof.
	 
	 	(b)	 	With respect to any Security Collateral representing interests in Material
Subsidiaries in which any Grantor has any right, title or interest and that constitutes
an uncertificated security, such Grantor will use commercially reasonable efforts to
cause the issuer thereof to agree in an authenticated record with such Grantor and the
Agent that, upon notice from the Agent that an Event of Default has occurred and is
continuing, such issuer will comply with instructions with respect to such Security
Collateral originated by the Agent without further consent of such Grantor, such
authenticated record to be in form and substance reasonably satisfactory to the Agent.
Upon the request of the Agent upon the occurrence and during the continuance of an
Event of Default, each Grantor will notify each issuer of certificated Security
Collateral as provided in Section 4(e) below.
	 
	 	(c)	 	With respect to any securities or commodity or futures account, any Security
Collateral that constitutes a security entitlement as to which the financial
institution acting as Agent hereunder is not the securities intermediary, upon the

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	 	 	 	request of the Agent upon the occurrence and during the continuance of an Event of
Default the relevant Grantor will use its commercially reasonable efforts to cause the
securities intermediary with respect to such security or commodity or futures account
or security entitlement to identify in its records the Agent as the entitlement holder
thereof.

	 	(d)	 	Upon the request of the Agent upon the occurrence and during the continuance of
an Event of Default, each Grantor shall cause the Security Collateral to be registered
in the name of the Agent or such of its nominees as the Agent shall direct, subject
only to the revocable rights specified in Section 12(a). In addition, the Agent shall
have the right upon the occurrence and during the continuance of an Event of Default to
convert Security Collateral consisting of financial assets credited to any securities
account to Security Collateral consisting of financial assets held directly by the
Agent, and to convert Security Collateral consisting of financial assets held directly
by the Agent to Security Collateral consisting of financial assets credited to any
securities or commodity or futures account.
	 
	 	(e)	 	Upon the request of the Agent upon the occurrence and during the continuance of
an Event of Default, each Grantor will notify each issuer of Security Collateral
granted by it hereunder that such Security Collateral is subject to the security
interest granted hereunder.

SECTION 5 MAINTAINING THE ACCOUNT COLLATERAL

So long as any Advance or any other payment obligation of any Loan Party of which the Borrower has
notice under any Loan Document shall remain unpaid, or any Lender shall have any Commitment:

	 	(a)	 	Upon request of the Agent made upon the occurrence and during the continuance
of an Event of Default, each Grantor will promptly enter into an agreement with the
financial institution holding the Pledged Account pursuant to which such financial
institution shall agree with such Grantor and the Agent to, upon notice from the Agent,
comply with instructions originated by the Agent directing the disposition of funds in
such deposit account without the further consent of such Grantor, such agreement to be
in form and substance reasonably satisfactory to the Agent (a “Deposit Account Control
Agreement”), and instruct each Person obligated at any time to make any payment to such
Grantor for any reason (an “Obligor”) to make such payment to such a Pledged Deposit
Account.
	 
	 	(b)	 	Upon notice from the Agent that an Event of Default has occurred and is
continuing, each Grantor agrees to terminate any or all Pledged Deposit Accounts and
Deposit Account Control Agreements upon request by the Agent.
	 
	 	(c)	 	The Agent may, at any time and without notice to, or consent from, the Grantor,
transfer, or direct the transfer of, funds from the Pledged Deposit Accounts to satisfy
the Grantor’s obligations under the Loan Documents if an Event of Default shall have
occurred and be continuing. As soon as reasonably practicable after 

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	 	 	 	any such transfer,
the Agent agrees to give written notice thereof to the applicable Grantor.

SECTION 6 REPRESENTATIONS AND WARRANTIES

Each Grantor represents and warrants as follows:

	 	(a)	 	Such Grantor’s exact legal name, place of business, chief executive office, the
province in which it has tangible personal property, type of organization, jurisdiction
of formation as of the date hereof is set forth in Schedule V hereto. Within the
twelve months preceding the date hereof, such Grantor has not changed its name,
location, place of business, chief executive office, type of organization, jurisdiction
of organization or organizational identification number from those set forth in
Schedule V hereto except as set forth in Schedule VI hereto.
	 
	 	(b)	 	Such Grantor is the owner of the Collateral granted or purported to be granted
by it free and clear of any Lien, claim, option or right of others, except for the
security interest created under this Agreement or Liens permitted under the Credit
Agreement. No effective financing statement or other instrument similar in effect
covering all or any part of such Collateral or listing such Grantor or any trade name
of such Grantor as debtor is on file in any recording office, except such as may exist
on the date of this Agreement, have been filed in favour of the Agent relating to the
Loan Documents or are otherwise permitted under the Credit Agreement.
	 
	 	(c)	 	All Equipment of such Grantor having a value in excess of $10,000,000 and
Inventory of such Grantor having a value in excess of $10,000,000 as of the date hereof
is located at the places specified therefor in Schedule VIII and Schedule IX hereto,
respectively. Such Grantor has exclusive possession and control of its Inventory,
other than Inventory stored at any leased premises or third party warehouse.
	 
	 	(d)	 	None of the Receivables or Agreement Collateral is evidenced by a promissory
note or other instrument in excess of $10,000,000 that has not been delivered to the
Agent. All such Receivables or Agreement Collateral valued in excess of $10,000,000 is
listed on Schedule III attached hereto.
	 
	 	(e)	 	All Security Collateral consisting of certificated securities and instruments
with an aggregate fair market value in excess of $10,000,000 for all such Security
Collateral of the Grantors have been delivered to the Agent.
	 
	 	(f)	 	If such Grantor is an issuer of Security Collateral, such Grantor confirms that
it has received notice of the security interest granted hereunder.
	 
	 	(g)	 	The Pledged Equity pledged by such Grantor hereunder has been duly authorized
and validly issued and is fully paid and non assessable. The Pledged Debt pledged by
such Grantor hereunder has been duly authorized, authenticated or

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	 	 	 	issued and delivered,
is the legal, valid and binding obligation of the issuers thereof and, if evidenced by
any promissory notes, such promissory notes have been delivered to the Agent, and is
not in default.

	 	(h)	 	The Initial Pledged Equity pledged by such Grantor constitutes, as of the date
hereof, 100% of the issued and outstanding equity interests of the issuers thereof
indicated on Part I of Schedule I hereto. The Initial Pledged Debt constitutes all of
the outstanding Debt for Borrowed Money owed to such Grantor by the issuers thereof as
indicated on Part II of Schedule I hereof.
	 
	 	(i)	 	Such Grantor has no Investment Property with a market value in excess of
$10,000,000 as of the date hereof, other than the Investment Property listed on Part
III of Schedule I hereto.
	 
	 	(j)	 	The Assigned Agreements to which such Grantor is a party have been duly
authorized, executed and delivered by such Grantor and, to such Grantor’s knowledge,
any material Assigned Agreements are in full force and effect and are binding upon and
enforceable against all parties thereto in accordance with their terms.
	 
	 	(k)	 	Such Grantor has no material deposit accounts subject to the grant or security
in Section 1 of this Agreement as of the date hereof, other than the Pledged Deposit
Accounts listed on Schedule II hereto.
	 
	 	(l)	 	Such Grantor is not a beneficiary or assignee under any letter of credit with a
stated amount in excess of $10,000,000 and issued by a United States or Canadian
financial institution as of the date hereof, other than the letters of credit described
in Schedule VII hereto.
	 
	 	(m)	 	This Agreement creates in favour of the Agent for the benefit of the Secured
Parties a valid security interest in the Collateral granted by such Grantor under this
Agreement, securing the payment of the Secured Obligations except to the extent that
control or possession by the Agent is required for the creation of the security
interest; all filings and other actions necessary to perfect the security interest in
the Collateral granted by such Grantor have been duly made or taken and are in full
force and effect other than (i) federal registration which may be necessary to perfect
the Agent’s security interest with respect to Collateral consisting of vessels, rolling
stock or aircraft; and (ii) actions necessary to transfer and prior approval of or
filings with any governmental entity required in connection with any interest in
Pledged Equity; provided however, that the Agent will receive a security interest, but
not a first priority security interest, in (1) Collateral consisting of any securities
or commodity or futures account, (2) Account Collateral maintained with a financial
institution other than the Agent, (3) assets encumbered by Liens on the date of this
Agreement, (4) Collateral evidenced by a certificate of title or consisting of vessels
or aircraft, (5) collateral subject to Liens permitted by the terms of the Credit
Agreement, (6) Collateral with an aggregate book value of less than $10,000,000 and (7)
other Collateral to 

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	 	 	 	the extent consented to by Agent and approved by the Required
Lenders (collectively, the “Specified Collateral”).

	 	(n)	 	No authorization or approval or other action by, and no notice to or filing
with, any governmental authority or regulatory body or any other third party is
required for (i) the grant by such Grantor of the security interest granted hereunder
or for the execution, delivery or performance of this Agreement by such Grantor, (ii)
the perfection or maintenance of the security interest created hereunder (including the
first priority nature of such security interest in Collateral other than the Specified
Collateral), except for (A) the filing of financing statements and financing change
statements under the PPSA, which financing statements or financing change statements,
as the case may be, have been duly filed and are in full force and effect, (B) subject
to certain corporate actions by the holders or issuers of non-US Initial Pledged Equity
which have not occurred as of the Effective Date, necessary to transfer or assign, (C)
the actions described in Section 4 with respect to the Security Collateral, (D) federal
filings which may be necessary in respect of vessels, rolling stock or aircraft, or
(iii) the exercise by the Agent of its voting or other rights provided for in this
Agreement or the remedies in respect of the Collateral pursuant to this Agreement,
except as set forth above and as may be required in connection with the disposition of
any portion of the Security Collateral by laws affecting the offering and sale of
securities generally.
	 
	 	(o)	 	The Inventory that has been produced or distributed by such Grantor has been
produced in compliance with all requirements of applicable law except where the failure
to so comply would not have a Material Adverse Effect.
	 
	 	(p)	 	As to itself and its Intellectual Property Collateral:

	 	(i)	 	The operation of such Grantor’s business as currently conducted
or as contemplated to be conducted and the use of the Intellectual Property
Collateral in connection therewith do not conflict with, infringe,
misappropriate, dilute, misuse or otherwise violate the intellectual property
rights of any third party except as are not expected to have a Material Adverse
Effect.
	 
	 	(ii)	 	Such Grantor is the exclusive owner of all right, title and
interest in and to Patents, Trademarks and Copyrights contained in the
Intellectual Property Collateral, except as set forth in Schedule IV hereto
with respect to co-ownership of certain Patents, and such Grantor is entitled
to use all such Intellectual Property Collateral in accordance with applicable
law, subject to the terms of the IP Agreements.
	 
	 	(iii)	 	The Intellectual Property Collateral set forth on Schedule IV
hereto includes all of the registered patents, patent applications, domain
names, trademark registrations and applications, copyright registrations and
applications owned by such Grantor as of the date set forth therein.

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	 	(iv)	 	The issued Patents and registered Trademarks contained in the
Intellectual Property Collateral have not been adjudged invalid or
unenforceable in whole or part, and to the knowledge of the Grantors, are valid
and enforceable, except to the extent any Grantor has ceased use of any such
registered Trademarks.
	 
	 	(v)	 	Such Grantor has made or performed all filings, recordings and
other acts and has paid all required fees and taxes, as deemed necessary by
Grantor in its reasonable business discretion, to maintain and protect its
interest in each and every material item of Intellectual Property Collateral
owned by such Grantor in full force and effect.
	 
	 	(vi)	 	No claim has been asserted and is pending by any Person
challenging or questioning the use of any Intellectual Property Collateral or
the validity of effectiveness of any such Intellectual Property Collateral, nor
does the Borrower know of any valid basis for any such claim, except, in either
case, for such claims that in the aggregate are not reasonably expected to have
a Material Adverse Effect. The use of such Intellectual Property Collateral by
the Grantors does not infringe on the rights of any Person, except for such
claims and infringements that, in the aggregate, are not
reasonably expected to have a Material Adverse Effect. The consummation of
the transactions contemplated by the Loan Documents will not result in the
termination or impairment of any of the Intellectual Property Collateral.
	 
	 	(vii)	 	With respect to each IP Agreement: (A) to the knowledge of the
Borrower, such IP Agreement is valid and binding and in full force and effect;
(B) such IP Agreement will not cease to be valid and binding and in full force
and effect on terms identical to those currently in effect as a result of the
rights and interest granted herein, nor will the grant of such rights and
interest constitute a breach or default under such IP Agreement or otherwise
give any party thereto a right to terminate such IP Agreement; (C) such Grantor
has not received any notice of termination or cancellation under such IP
Agreement within the six months immediately preceding the date of this
Agreement; (D) within the six months immediately preceding the date of this
Agreement, such Grantor has not received any notice of a breach or default
under such IP Agreement, which breach or default has not been cured; and (E)
neither such Grantor nor, to such Grantor’s knowledge, any other party to such
IP Agreement is in breach or default thereof in any material respect, and no
event has occurred that, with notice or lapse of time or both, would constitute
such a breach or default or permit termination or modification under such IP
Agreement, in each case except as would not reasonably be expected to have a
Material Adverse Effect.
	 
	 	(viii)	 	To the Grantors’ knowledge, none of the material Trade Secrets of such
Grantor has been used, divulged, disclosed or appropriated to the 

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	 	 	 	detriment of
such Grantor for the benefit of any other Person other than such Grantor within
the past two years.

SECTION 7 FURTHER ASSURANCES

	 	(a)	 	Each Grantor agrees that from time to time, in accordance with the terms of
this Agreement at the expense of such Grantor and at the reasonable request of the
Agent, such Grantor will promptly execute and deliver, or otherwise authenticate, all
further instruments and documents, and take all further action that may be reasonably
necessary or desirable, or that the Agent may reasonably request, in order to perfect
and protect any pledge or security interest granted or purported to be granted by such
Grantor hereunder or to enable the Agent to exercise and enforce its rights and
remedies hereunder with respect to any Collateral of such Grantor. Without limiting
the generality of the foregoing, each Grantor will, at the reasonable request of the
Agent, promptly with respect to the Collateral of such Grantor: (i) mark conspicuously
each document included in Inventory, each chattel paper included in Receivables each
Assigned Agreement and, at the request of the Agent, each of its records pertaining to
such Collateral with a
legend, in form and substance reasonably satisfactory to the Agent, indicating that
such document, Assigned Agreement or Collateral is subject to the security interest
granted hereby; (ii) if any such Collateral shall be evidenced by a promissory note
or other instrument or chattel paper, deliver and pledge to the Agent hereunder such
note or instrument or chattel paper duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance reasonably
satisfactory to the Agent; (iii) file such financing statements or amendments
thereto, and such other instruments or notices, as may be reasonably necessary or
desirable, or as the Agent may reasonably request, in order to perfect and preserve
the security interest granted or purported to be granted by such Grantor hereunder;
(iv) at the request of the Agent, take all action to ensure that the Agent’s
security interest is noted on any certificate of title related to any Collateral
evidenced by a certificate of title; and (v) deliver to the Agent evidence that all
other actions that the Agent may deem reasonably necessary or desirable in order to
perfect and protect the security interest granted or purported to be granted by such
Grantor under this Agreement has been taken.
	 
	 	(b)	 	Each Grantor hereby authorizes the Agent to file one or more financing
statements, and amendments thereto, including, without limitation, one or more
financing statements indicating that such financing statements cover all assets or all
personal property (or words of similar effect) of such Grantor in Canada other than
assets now or hereafter constituting Principal Properties or the equity of Restricted
Subsidiaries, or any real property or fixtures, regardless of whether any particular
asset described in such financing statements falls within the scope of the PPSA. A
photocopy or other reproduction of this Agreement shall be sufficient as a financing
statement where permitted by law. Each Grantor ratifies its authorization for the
Agent to have filed such financing statements or amendments filed prior to the date
hereof.

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	 	(c)	 	Each Grantor will furnish to the Agent from time to time statements and
schedules further identifying and describing the Collateral of such Grantor and such
other reports in connection with such Collateral as the Agent may reasonably request,
all in reasonable detail.

SECTION 8 AS TO EQUIPMENT AND INVENTORY

	 	(a)	 	Each Grantor will keep its Equipment having a value in excess of $10,000,000
and Inventory having a value in excess of $10,000,000 (other than Inventory sold in the
ordinary course of business) at the places therefor specified in Schedule VIII and
Schedule IX, respectively, or, upon 30 days’ prior written notice to the Agent (or
lesser time as may be agreed by the Agent), at such other places designated by such
Grantor in such notice.
	 
	 	(b)	 	Each Grantor will pay promptly when due all property and other taxes,
assessments and governmental charges or levies imposed upon, and all claims
(including, without limitation, claims for labor, materials and supplies) against,
its Equipment and Inventory, except to the extent payment thereof is not required by
Section 5.01(b) of the Credit Agreement. In producing its Inventory, each Grantor
will comply with all requirements of applicable law, except where the failure to so
comply will not have a Material Adverse Effect.

SECTION 9 INSURANCE

	 	(a)	 	Each Grantor will, at its own expense, maintain or cause to be maintained,
insurance with respect to its Equipment and Inventory in such amounts, against such
risks, in such form and with such insurers, as shall be customary for similar
businesses of the size and scope of the Borrower on a consolidated basis, provided
however that the Grantor may self insure to the extent consistent with prudent business
practice. Each policy of each Grantor for liability insurance shall provide for all
losses to be paid on behalf of the Agent and such Grantor as their interests may
appear, and each policy for property damage insurance shall provide for all losses,
except for losses of less than $25,000,000 per occurrence, to be paid in accordance
with the Lender loss payee provisions which were requested pursuant to clause (iv)
below, directly to the Agent. So long as no Event of Default shall have occurred and
be continuing, all property damage insurance payments received by the Agent in
connection with any loss, damage or destruction of Inventory will be released by the
Agent to the applicable Grantor. Each such policy shall in addition (i) name such
Grantor and the Agent as insured parties thereunder (without any representation or
warranty by or obligation upon the Agent) as their interests may appear, (ii) provide
that there shall be no recourse against the Agent for payment of premiums or other
amounts with respect thereto, (iii) provide that at least 10 days’ prior written notice
of cancellation or of lapse shall be given to the Agent by the insurer and (iv) contain
such other customary lender loss payee provisions as the Agent shall reasonably
request. Each Grantor will, if so requested by the Agent, deliver to the Agent
certificates of insurance evidencing such insurance and, as often as the Agent may

- 15 -

 

	 	 	 	reasonably request, a report of a reputable insurance broker or the insurer with
respect to such insurance. Further, each Grantor will, at the request of the Agent,
duly execute and deliver instruments of assignment of such insurance policies to comply
with the requirements of Section 1(g) and cause the insurers to acknowledge notice of
such assignment.

	 	(b)	 	Reimbursement under any liability insurance maintained by any Grantor pursuant
to this Section 9 may be paid directly to the Person who shall have incurred damages
covered by such insurance. In case of any loss involving damage to Equipment or
Inventory when subsection (c) of this Section 9 is not applicable, the applicable
Grantor, to the extent determined to be in the business interest of such Grantor, will
make or cause to be made the necessary repairs to or replacements of such Equipment or
Inventory, and any proceeds of insurance properly received by or released to such
Grantor shall be used by such Grantor,
except as otherwise required hereunder or by the Credit Agreement, to pay or as
reimbursement for the costs of such repairs or replacements or, if such Grantor
determines not to repair or replace such Equipment or Inventory, treat the loss or
damage as a disposition under Section 5.02(e)(v) of the Credit Agreement.
	 
	 	(c)	 	So long as no Event of Default shall have occurred and be continuing, all
insurance payments received by the Agent in connection with any loss, damage or
destruction of any Inventory or Equipment will be released by the Agent to the
applicable Grantor. Upon the occurrence and during the continuance of any Event of
Default, all insurance payments in respect of such Equipment or Inventory shall be paid
to the Agent and shall, in the Agent’s sole discretion, (i) be released to the
applicable Grantor for the repair, replacement or restoration thereof, (ii) be held as
additional Collateral hereunder or applied as specified in Section 20(b) or (iii) be
released to the Agent Sweep Account and applied as provided in Section 2.18(h) of the
Credit Agreement.

SECTION 10 POST-CLOSING CHANGES; COLLECTIONS ON ASSIGNED AGREEMENTS AND RECEIVABLES

	 	(a)	 	No Grantor will change its name, place of business, chief executive office,
type of organization, jurisdiction of formation or province in which it has tangible
personal property from those set forth in Schedule V of this Agreement without first
giving at least 15 Business Days prior written notice to the Agent, or such lesser
period of time as agreed by the Agent, and taking all action reasonably required by the
Agent for the purpose of perfecting or protecting the security interest granted by this
Agreement. Each Grantor will hold and preserve its records relating to the Collateral,
including, without limitation, the Assigned Agreements and Related Contracts, and will
permit representatives of the Agent at any time during normal business hours to inspect
and make abstracts from such records and other documents to the extent provided in
Section 5.01(e) of the Credit Agreement.

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	 	(b)	 	Except as otherwise provided in this subsection (b), each Grantor will continue
to collect, at its own expense, all amounts due or to become due such Grantor under the
Assigned Agreements and Receivables. In connection with such collections, such Grantor
may take (and, at the Agent’s direction, will take) such action as such Grantor or the
Agent may deem necessary or advisable to enforce collection of the Assigned Agreements
and Receivables; provided, however, that the Agent shall have the right at any time,
upon the occurrence and during the continuance of an Event of Default and upon written
notice to such Grantor of its intention to do so, to notify the Obligors under any
Assigned Agreements and Receivables of the assignment of such Assigned Agreements to
the Agent and to direct such Obligors to make payment of all amounts due or to become
due to such Grantor thereunder directly to the Agent and, upon such notification and at
the expense of such Grantor, to enforce collection of any such Assigned Agreements and
Receivables, to adjust, settle or compromise the amount or payment thereof, in the
same manner and to the same extent as such Grantor might have done, and to otherwise
exercise all rights with respect to such Assigned Agreements and Receivables. After
receipt by any Grantor of the notice from the Agent referred to in the proviso to
the preceding sentence, (i) all amounts and proceeds (including, without limitation,
instruments) received by such Grantor in respect of the Assigned Agreements and
Receivables of such Grantor shall be received in trust for the benefit of the
Secured Parties, shall be segregated from other funds of such Grantor and shall be
forthwith paid over to the Agent in the same form as so received (with any necessary
endorsement) to be deposited in the Agent Sweep Account in Canada and either (A)
released to such Grantor so long as no Event of Default shall have occurred and be
continuing or (B) if any Event of Default shall have occurred and be continuing,
applied as provided in Section 20(b) of this Agreement or as provided in Section
2.18(h) of the Credit Agreement and (ii) such Grantor will not adjust, settle or
compromise the amount or payment of any Receivable or amount due on any Assigned
Agreement, release wholly or partly any Obligor thereof or allow any credit or
discount thereon other than credits or discounts given in the ordinary course of
business.

SECTION 11 AS TO INTELLECTUAL PROPERTY COLLATERAL

	 	(a)	 	With respect to each item of its Intellectual Property Collateral material to
the business of the Grantors, each Grantor agrees to take, at its expense, all
commercially reasonable steps as determined in Grantor’s reasonable discretion,
including, without limitation, in the Canadian Intellectual Property Office and any
other governmental authority, to (i) maintain the validity and enforceability of such
Intellectual Property Collateral and maintain such Intellectual Property Collateral in
full force and effect, and (ii) pursue the registration and maintenance (in accordance
with the exercise of such Grantor’s reasonable business discretion) of each patent,
trademark, or copyright registration or application, now or hereafter included in such
Intellectual Property Collateral of such Grantor, including, without limitation, the
payment of required fees and taxes, the filing of responses to office actions issued by
the Canadian Intellectual Property Office or other governmental authorities, the filing
of applications for renewal or extension, 

- 17 -

 

	 	 	 	the filing of divisional, continuation,
continuation-in-part, reissue and renewal applications or extensions, the payment of
maintenance fees and the participation in interference, reexamination, opposition,
cancellation, infringement and misappropriation proceedings, in each case except where
the failure to so file, register or maintain is not reasonably likely to have a
Material Adverse Effect. No Grantor shall, without the written consent of the Agent,
which shall not be unreasonably withheld or delayed, discontinue use of or otherwise
abandon any such material Intellectual Property Collateral, or abandon any right to
file an application for patent, trademark, or copyright, unless such Grantor shall have
determined that such use or the pursuit or maintenance of such Intellectual Property
Collateral is no longer necessary or desirable in the conduct of such
Grantor’s business and that the loss thereof would not be reasonably likely to have
a Material Adverse Effect.

	 	(b)	 	Until the termination of the Credit Agreement, each Grantor agrees to provide,
annually to the Agent an updated Schedule of its Patents, Trademarks and registered
Copyrights.
	 
	 	(c)	 	In the event that any Grantor becomes aware that any item of the Intellectual
Property Collateral is being infringed or misappropriated by a third party, such
Grantor shall take such commercially reasonable actions determined in its reasonable
discretion, at its expense, to protect or enforce such Intellectual Property
Collateral, including, without limitation, suing for infringement or misappropriation
and for an injunction against such infringement or misappropriation.
	 
	 	(d)	 	Each Grantor shall take all reasonable steps which it deems appropriate under
the circumstances to preserve and protect each item of its material Trademarks included
in the Intellectual Property Collateral, including, without limitation, maintaining
substantially the quality of any and all products or services used or provided in
connection with any of the Trademarks, consistent with the general quality of the
products and services as of the date hereof, and taking all steps reasonably necessary
to ensure that all licensed users of any of the Trademarks use such consistent
standards of quality.
	 
	 	(e)	 	With respect to its Intellectual Property Collateral, upon the reasonable
request of Agent made upon the occurrence and during the continuance of an Event of
Default, each Grantor agrees to execute or otherwise authenticate an agreement, in
substantially the form set forth in Exhibit A hereto or otherwise in form and substance
satisfactory to the Agent (an “Intellectual Property Security Agreement”), for
recording the security interest granted hereunder to the Agent in such Intellectual
Property Collateral with the Canadian Intellectual Property Office and any other
governmental authorities necessary to register, file or record the security interest
hereunder in such Intellectual Property Collateral.
	 
	 	(f)	 	Upon the occurrence and during the continuance of an Event of Default, each
Grantor and each entity which executes a Canadian Security Agreement 

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	 	 	 	Supplement (as hereinafter defined) shall execute and deliver to the Agent with such written notice,
or otherwise authenticate, an agreement substantially in the form of Exhibit B hereto
or otherwise in form and substance satisfactory to the Agent (an “IP Security Agreement
Supplement”) covering such Intellectual Property, which IP Security Agreement
Supplement shall be recorded with the Canadian Intellectual Property Office and any
other governmental authorities necessary to register, file or record the security
interest hereunder in such Intellectual Property.

SECTION 12 VOTING RIGHTS; DIVIDENDS; ETC.

	 	(a)	 	So long as no Default under Section 6.01(a) or (e) of the Credit Agreement
shall have occurred and be continuing:

	 	(i)	 	Each Grantor shall be entitled to exercise any and all voting
and other consensual rights pertaining to the Security Collateral of such
Grantor or any part thereof for any purpose.
	 
	 	(ii)	 	Each Grantor shall be entitled to receive and retain any and
all dividends, interest and other distributions paid in respect of the Security
Collateral of such Grantor if and to the extent that the payment thereof is not
otherwise prohibited by the terms of the Loan Documents; provided, however,
that any and all dividends, interest and other distributions paid or payable in
the form of instruments or certificates in respect of, or in exchange for, any
Security Collateral, shall be promptly delivered to the Agent to hold as
Security Collateral and shall, if received by such Grantor, be received in
trust for the benefit of the Secured Parties, be segregated from the other
property or funds of such Grantor and be promptly delivered to the Agent as
Security Collateral in the same form as so received (with any necessary
endorsement).
	 
	 	(iii)	 	The Agent will execute and deliver (or cause to be executed
and delivered) to each Grantor all such proxies and other instruments as such
Grantor may reasonably request for the purpose of enabling such Grantor to
exercise the voting and other rights that it is entitled to exercise pursuant
to paragraph (i) above and to receive the dividends or interest payments that
it is authorized to receive and retain pursuant to paragraph (ii) above.

	 	(b)	 	Upon the occurrence and during the continuance of a Default under Section
6.01(a) or (e) of the Credit Agreement:

	 	(i)	 	All rights of each Grantor (x) to exercise or refrain from
exercising the voting and other consensual rights that it would otherwise be
entitled to exercise pursuant to Section 12(a)(i) shall, upon notice to such
Grantor by the Agent, cease and (y) to receive the dividends, interest and
other distributions that it would otherwise be authorized to receive and retain
pursuant to Section 12(a)(ii) shall automatically cease, and all such rights

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	 	 	 	shall thereupon become vested in the Agent for the benefit of the Secured
Parties, which shall thereupon have the sole right to exercise or refrain from
exercising such voting and other consensual rights and to receive and hold as
Security Collateral such dividends, interest and other distributions.

	 	(ii)	 	All dividends, interest and other distributions that are
received by any Grantor contrary to the provisions of paragraph (i) of this
Section 12(b)
shall be received in trust for the benefit of the Secured Parties, shall be
segregated from other funds of such Grantor and shall be promptly paid over
to the Agent as Security Collateral in the same form as so received (with
any necessary endorsement).

SECTION 13 AS TO THE ASSIGNED AGREEMENTS

	 	(a)	 	Each Grantor will at its expense:

	 	(i)	 	perform and observe all terms and provisions of the Assigned
Agreements to be performed or observed by it to the extent consistent with its
past practice or reasonable business judgement, maintain the Assigned
Agreements to which it is a party in full force and effect, enforce the
Assigned Agreements to which it is a party in accordance with the terms thereof
and take all such action to such end as may be requested from time to time by
the Agent; and
	 
	 	(ii)	 	furnish to the Agent promptly upon receipt thereof copies of
all notices of defaults in excess of $50,000,000 received by such Grantor under
or pursuant to the Assigned Agreements to which it is a party, and from time to
time (A) furnish to the Agent such information and reports regarding the
Assigned Agreements and such other Collateral of such Grantor as the Agent may
reasonably request and (B) upon request of the Agent, make to each other party
to any Assigned Agreement to which it is a party such demands and requests for
information and reports or for action as such Grantor is entitled to make
thereunder.

	 	(b)	 	Each Grantor hereby consents on its behalf and on behalf of its Subsidiaries to
the assignment and pledge to the Agent for benefit of the Secured Parties of each
Assigned Agreement to which it is a party by any other Grantor hereunder.
	 
	 	(c)	 	Each Grantor agrees, upon the reasonable request of Agent, to instruct each
other party to each Assigned Agreement to which it is a party, that all payments due or
to become due under or in connection with such Assigned Agreement will be made directly
to a Pledged Deposit Account.
	 
	 	(d)	 	All moneys received or collected pursuant to subsection (c) above shall be (i)
released to the applicable Grantor on the terms set forth in Section 5 so long as no
Event of Default shall have occurred and be continuing or (ii) if any Event of Default
shall have occurred and be continuing, applied as provided in Section 19(6).

- 20 -

 

SECTION 14 AS TO LETTER-OF-CREDIT RIGHTS

	 	(a)	 	Except as otherwise permitted by the Credit Agreement and this Agreement, each
Grantor, by granting a security interest in its Receivables consisting of
letter-of-credit, hereby assigns to the Agent such rights (including its contingent
rights) to the proceeds of all Related Contracts consisting of letters of credit of
which it is or hereafter becomes a beneficiary or assignee. Upon request of the Agent,
each Grantor will promptly use commercially reasonable efforts to cause the issuer of
each letter-of-credit with a stated amount in excess of $10,000,000 and each nominated
person (if any) with respect thereto to consent to such assignment of the proceeds
thereof pursuant to a consent in form and substance reasonably satisfactory to the
Agent and deliver written evidence of such consent to the Agent.
	 
	 	(b)	 	Upon the occurrence and during the continuance of an Event of Default, each
Grantor will, promptly upon request by the Agent, (i) notify (and such Grantor hereby
authorizes the Agent to notify) the issuer and each nominated person with respect to
each of the Related Contracts consisting of letters of credit that the proceeds thereof
have been assigned to the Agent hereunder and any payments due or to become due in
respect thereof are to be made directly to the Agent or its designee and (ii) arrange
for the Agent to become the transferee beneficiary of letter of credit.

SECTION 15 TRANSFERS AND OTHER LIENS; ADDITIONAL SHARES

	 	(a)	 	Each Grantor agrees that it will not (i) sell, assign or dispose of Collateral
except as permitted under the terms of the Credit Agreement, or (ii) create or suffer
to exist any Lien upon or with respect to any of the Collateral of such Grantor except
for the pledge, assignment and security interest created under this Agreement and Liens
permitted under the Credit Agreement.
	 
	 	(b)	 	Subject to the terms of the Credit Agreement and this Agreement, each Grantor
agrees that it will (i) cause each issuer of the Pledged Equity pledged by such Grantor
not to issue any equity interests or other securities in addition to or in substitution
for the Pledged Equity issued by such issuer except to such Grantor or its Affiliates,
and (ii) pledge hereunder, promptly upon its acquisition (directly or indirectly)
thereof, any and all additional equity interests or other securities as required by
Section 5.01(i) of the Credit Agreement from time to time acquired by such Grantor in
any manner.

SECTION 16 AGENT APPOINTED ATTORNEY IN FACT

          Each Grantor hereby irrevocably appoints the Agent such Grantor’s attorney-in-fact, with full
authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from
time to time, upon the occurrence and during the continuance of an Event of Default, in the Agent’s
discretion, to take any action and to execute any instrument that the Agent

- 21 -

 

may deem necessary or advisable to accomplish the purposes of this Agreement, including, without
limitation:

	 	(a)	 	to obtain and adjust insurance required to be paid to the Agent pursuant to
Section 9,
	 
	 	(b)	 	to ask for, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for moneys due and to become due under or in respect of any of
the Collateral,
	 
	 	(c)	 	to receive, endorse and collect any drafts or other instruments, documents and
chattel paper, in connection with clause (a) or (b) above, and
	 
	 	(d)	 	to file any claims or take any action or institute any proceedings that the
Agent may deem necessary or desirable for the collection of any of the Collateral or
otherwise to enforce compliance with the terms and conditions of any Assigned Agreement
or the rights of the Agent with respect to any of the Collateral.

SECTION 17 AGENT MAY PERFORM

          If any Grantor fails to perform any agreement contained herein, the Agent may, but without any
obligation to do so, upon notice to the Grantor with a copy to the Company of at least five
Business Days in advance and if any Grantor fails to cure within such period, itself perform, or
cause performance of, such agreement, and the expenses of the Agent incurred in connection
therewith shall be payable by such Grantor under Section 20.

SECTION 18 THE AGENT’S DUTIES

	 	(a)	 	The powers conferred on the Agent hereunder are solely to protect the Secured
Parties’ interest in the Collateral and shall not impose any duty upon it to exercise
any such powers. Except for the safe custody of any Collateral in its possession and
the accounting for moneys actually received by it hereunder, the Agent shall have no
duty as to any Collateral, as to ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any
Collateral, whether or not any Secured Party has or is deemed to have knowledge of such
matters, or as to the taking of any necessary steps to preserve rights against any
parties or any other rights pertaining to any Collateral. The Agent shall be deemed to
have exercised reasonable care in the custody and preservation of any Collateral in its
possession if such Collateral is accorded treatment substantially equal to that which
it accords its own property.
	 
	 	(b)	 	Anything contained herein to the contrary notwithstanding, the Agent may from
time to time, when the Agent deems it to be necessary, appoint one or more of its
Affiliates or branches (or, with the consent of the Borrower, any other Persons)
subagents (each a “Subagent”) for the Agent hereunder with respect to all or any part
of the Collateral. In the event that the Agent so appoints any Subagent with respect
to any Collateral, (i) the assignment and pledge of such Collateral and the security
interest granted in such Collateral by each Grantor hereunder shall be

- 22 -

 

	 	 	 	deemed for purposes of this Agreement to have been made to such Subagent, in
addition to the Agent, for the ratable benefit of the Secured Parties, as security
for the Secured Obligations of such Grantor, (ii) such Subagent shall automatically
be vested, in addition to the Agent, with all rights, powers, privileges, interests
and remedies of the Agent hereunder with respect to such Collateral, and (iii) the
term “Agent”, when used herein in relation to any rights, powers, privileges,
interests and remedies of the Agent with respect to such Collateral, shall include
such Subagent; provided, however, that no such Subagent shall be authorized to take
any action with respect to any such Collateral unless and except to the extent
expressly authorized in writing by the Agent.

SECTION 19 REMEDIES

(1) If any Event of Default shall have occurred and be continuing and such Event of Default has
resulted in the acceleration of the Secured Obligations, which acceleration has not been rescinded
or otherwise terminated:

	 	(a)	 	the Agent may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the rights
and remedies of a secured party upon default under the PPSA, Civil Code of Quebec or
UCC (whether or not any of the PPSA, the Civil Code of Quebec or UCC applies to the
affected Collateral);
	 
	 	(b)	 	the Agent may by appointment in writing appoint a receiver or receiver and
manager (each herein referred to as the “Receiver”) of the Collateral (which term when
used in this Section 19 will include the whole or any part of the Collateral) and may
remove or replace such Receiver from time to time or may institute proceedings in any
court of competent jurisdiction for the appointment of a Receiver of the Collateral;
and the term “Agent” when used in this Section 19 will include any Receiver so
appointed and the agents, officers and employees of such Receiver; and the Agent will
not be in any way responsible for any misconduct or negligence of any such Receiver;
	 
	 	(c)	 	the Agent may take possession of the Collateral and require the Grantors to
assemble the Collateral and deliver or make the Collateral available to the Agent at
such place or places as may be specified by the Agent;
	 
	 	(d)	 	the Agent may take such steps as it considers desirable to maintain, preserve
or protect the Collateral;
	 
	 	(e)	 	the Agent may enforce any rights of the Grantors in respect of the Collateral
by any manner permitted by applicable law;
	 
	 	(f)	 	the Agent may withdraw, or cause the direct withdrawal, of all funds with
respect to the Account Collateral;
	 
	 	(g)	 	the Agent may sell, lease or otherwise dispose of the Collateral at public
auction, by private tender, by private sale or otherwise either for cash or upon credit
upon

- 23 -

 

	 	 	 	such terms and conditions as the Agent may determine and without notice to the
Grantors unless required by law and no person dealing with the Agent or its servants
shall be concerned to inquire whether the security hereby constituted has become
enforceable, whether the powers which the Agent is purporting to exercise have
become exercisable, whether any money remains due on the security of the Collateral,
as to the necessity or expedience of the stipulations and conditions subject to
which any sale, lease or disposition shall be made, otherwise as to the propriety or
regularity of any sale or any other dealing by the Agent with the Collateral or to
see to the application of any money paid to the Agent;
	 
	 	(h)	 	the Agent may carry on, or concur in the carrying on of, all or any part of the
business or undertaking of any Grantor, may, to the exclusion of all others, including
such Grantor, enter upon, occupy and use all or any of the premises, buildings, plant
and undertaking of or occupied or used by such Grantor and may use all or any of the
tools, machinery, equipment and intangibles of such Grantor for such time as the Agent
sees fit, free of charge, to carry on the business of such Grantor and, if applicable,
to manufacture or complete the manufacture of any Inventory and to pack and ship the
finished product;
	 
	 	(i)	 	the Agent may accept the Collateral in satisfaction of the Secured Obligations
upon notice to the Grantors of its intention to do so in the manner required by
applicable law;
	 
	 	(j)	 	the Agent may, a non-exclusive basis, occupy any premises owned or leased by
any Grantor where the Collateral or any part thereof is assembled or located for a
reasonable period in order to effectuate its rights and remedies hereunder or under
law, without obligation to such Grantor for rent in respect of such occupation;
	 
	 	(k)	 	the Agent may charge on its own behalf and pay to others all reasonable amounts
for expenses incurred and for services rendered in connection with the exercise of the
rights and remedies of the Agent hereunder, including, without limiting the generality
of the foregoing, reasonable legal, Receiver and accounting fees and expenses, and in
every such case the amounts so paid together with all costs, charges and expenses
incurred in connection therewith, including interest thereon at such rate as the Agent
deems reasonable, will be added to and form part of the Secured Obligations hereby
secured;
	 
	 	(l)	 	to the extent permitted by law, the Agent may discharge any claim, lien,
mortgage, charge, security interest, encumbrance or any rights of others that may exist
or be threatened against the Collateral, and in every such case the amounts so paid
together with costs, charges and expenses incurred in connection therewith will be
added to the Secured Obligations hereby secured;
	 
	 	(m)	 	the Agent may (i) grant extensions of time, (ii) take and perfect or abstain
from taking and perfecting security, (iii) give up securities, (iv) accept compositions
or compromises, (v) grant releases and discharges, and (vi) release any part of the
Collateral or otherwise deal with the Grantors, debtors of the Grantors, sureties

- 24 -

 

	 	 	 	and others and with the Collateral and other security as the Agent sees fit without
prejudice to the liability of the Grantors to the Agent or the Agent’s rights
hereunder;
	 
	 	(n)	 	the Agent will not be liable or responsible for any failure to seize, collect,
realize, or obtain payment with respect to the Collateral and is not bound to institute
proceedings or to take other steps for the purpose of seizing, collecting, realizing or
obtaining possession or payment with respect to the Collateral or for the purpose of
preserving any rights of the Agent, the Grantors or any other person, in respect of the
Collateral;
	 
	 	(o)	 	any cash held by or on behalf of the Agent and all cash proceeds received by or
on behalf of the Agent in respect of any sale of, collection from, or other realization
upon all or any part of the Collateral may, in the discretion of the Agent, be held by
the Agent as collateral for, and/or then or at any time thereafter shall be applied in
whole or in part by the Agent for the ratable benefit of the Secured Parties against,
all or any part of the Secured Obligations, in accordance with Section 6.04 of the
Credit Agreement;
	 
	 	(p)	 	all payments received by any Grantor under or in connection with any Assigned
Agreement or otherwise in respect of the Collateral shall be received in trust for the
benefit of the Agent, shall be segregated from other funds of such Grantor and shall be
forthwith paid over to the Agent in the same form as so received (with any necessary
endorsement);
	 
	 	(q)	 	subject to the provisions of Section 9.06 of the Credit Agreement, the Agent
may, without notice to any Grantor except as required by law and at any time or from
time to time, charge, set off and otherwise apply all or any part of the Secured
Obligations against any funds held with respect to the Account Collateral or in any
other deposit account;
	 
	 	(r)	 	in the event of any sale or other disposition of any of the Intellectual
Property Collateral of any Grantor, the goodwill symbolized by any Trademarks subject
to such sale or other disposition shall be included therein, and such Grantor shall
supply to the Agent or its designee, to the extent practicable, such Grantor’s know-how
and expertise, and documents and things relating to any Intellectual Property
Collateral subject to such sale or other disposition, and such Grantor’s customer lists
and other records and documents relating to such Intellectual Property Collateral and
to the manufacture, distribution, advertising and sale of products and services of such
Grantor; and
	 
	 	(s)	 	in each case under this Agreement in which the Agent takes any action with
respect to the Collateral, including proceeds, the Agent shall provide to the Borrower
such records and information regarding the possession, control, sale and any receipt of
amounts with respect to such Collateral as may be reasonably requested by the Borrower
as a basis for the preparation of the Borrower’s financial statements in accordance
with GAAP.

- 25 -

 

SECTION 20 INDEMNITY AND EXPENSES

	 	(a)	 	Each Grantor agrees to indemnify, defend and save and hold harmless each
Secured Party and each of their Affiliates and their respective officers, directors,
employees, trustees, agents and advisors (each, an “Indemnified Party”) from and
against, and shall pay on demand, any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or resulting from this Agreement (including,
without limitation, enforcement of this Agreement), except to the extent such claim,
damage, loss, liability or expense is found in a final, non-appealable judgement by a
court of competent jurisdiction to have resulted from such Indemnified Party’s gross
negligence or willful misconduct.
	 
	 	(b)	 	Each Grantor will upon demand pay to the Agent the amount of any and all
reasonable expenses, including, without limitation, the reasonable fees and expenses of
its counsel and of any experts and agents, that the Agent may incur in connection with
(i) the custody, preservation, use or operation of, or the sale of, collection from or
other realization upon, any of the Collateral of such Grantor, (ii) the exercise or
enforcement of any of the rights of the Agent or the other Secured Parties hereunder or
(iii) the failure by such Grantor to perform or observe any of the provisions hereof.

SECTION 21 AMENDMENTS; WAIVERS; ADDITIONAL GRANTORS; ETC.

	 	(a)	 	No amendment or waiver of any provision of this Agreement, and no consent to
any departure by any Grantor herefrom, shall in any event be effective unless the same
shall be in writing and signed by the Agent and, with respect to any amendment, the
Borrower on behalf of the Grantors, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given. No failure
on the part of the Agent or any other Secured Party to exercise, and no delay in
exercising any right hereunder, shall operate as a waiver thereof; nor shall any single
or partial exercise of any such right preclude any other or further exercise thereof or
the exercise of any other right.
	 
	 	(b)	 	Upon the execution and delivery by any Person of a security agreement
supplement in substantially the form of Exhibit C hereto (each a “Canadian Security
Agreement Supplement”), such Person shall be referred to as an “Additional Grantor” and
shall be and become a Grantor hereunder, and each reference in this Agreement and the
other Loan Documents to “Grantor” shall also mean and be a reference to such Additional
Grantor, each reference in this Agreement and the other Loan Documents to the
“Collateral” shall also mean and be a reference to the Collateral granted by such
Additional Grantor and each reference in this Agreement to a Schedule shall also mean
and be a reference to the schedules attached to such Canadian Security Agreement
Supplement.

- 26 -

 

SECTION 22 CONFIDENTIALITY; NOTICES; REFERENCES.

	 	(a)	 	The confidentiality provisions of Section 9.09 of the Credit Agreement shall
apply to all information received by the Agent or any Lender under this Agreement.
	 
	 	(b)	 	All notices and other communications provided for hereunder shall be delivered
as provided in Section 9.02 of the Credit Agreement.
	 
	 	(c)	 	The definitions of certain terms used in this Agreement are set forth in the
following locations:

	 	 	 

	Account Collateral

	 	Section 1(h)
	Additional Grantor

	 	Section 21(b)
	Agreement

	 	Preamble
	Agreement Collateral

	 	Section 1(g)
	Assigned Agreements

	 	Section 1(g)
	Borrower

	 	Preamble
	Canadian Security Agreement Supplement

	 	Section 21(b)
	Collateral

	 	Section 1
	Contractual Rights

	 	Section 3(b)
	Copyrights

	 	Section 1(i)(iii)
	Credit Agreement

	 	Preliminary Statements (2)
	Deposit Account Control Agreement

	 	Section 5(a)
	Equipment

	 	Section 1(a)
	Grantor, Grantors

	 	Preamble
	Initial Pledged Equity

	 	Preliminary Statements (5)
	Initial Pledged Debt

	 	Preliminary Statements (5)
	Intellectual Property Collateral

	 	Section 1(i)
	Inventory

	 	Section 1(b)
	IP Agreements

	 	Section 1(i)(v)
	Material Subsidiary

	 	Section 1(f)(iii)
	Obligor

	 	Section 5(a)
	Patents

	 	Section 1(i)(i)
	Pledged Debt

	 	Section 1(f)(iv)
	Pledged Deposit Accounts

	 	Preliminary Statements (8)
	Pledged Equity

	 	Section 1(f)(iii)
	PPSA

	 	Preliminary Statements (8)
	Receivables

	 	Section 1(c)
	Receiver

	 	Section 19(b)
	Related Contracts

	 	Section 1(c)
	Secured Obligations

	 	Section 2

- 27 -

 

	 	 	 

	Secured Parties

	 	Section 2
	Security Collateral

	 	Section 1(f)
	Specified Collateral

	 	Section 6(m)
	STA/Recitals

	 	Preliminary Statements (8)
	Trademarks

	 	Section 1(i)(ii)
	Trade Secrets

	 	Section 1(i)(i)

SECTION 23 CONTINUING SECURITY INTEREST; ASSIGNMENTS UNDER THE CREDIT AGREEMENT

          This Agreement shall create a continuing security interest in the Collateral and shall (a)
except as otherwise provided in Section 9.16 of the Credit Agreement, remain in full force and
effect until the latest of (i) the payment in full in cash of the Secured Obligations, and (ii) the
Termination Date, (b) be binding upon each Grantor, its successors and assigns and (c) inure,
together with the rights and remedies of the Agent hereunder, to the benefit of the Secured Parties
and their respective successors, permitted transferees and permitted assigns. Without limiting the
generality of the foregoing clause (c), to the extent permitted in Section 9.08 of the Credit
Agreement, any Lender may assign or otherwise transfer all or any portion of its rights and
obligations under the Credit Agreement (including, without limitation, all or any portion of its
Commitments, the Advances owing to it and the Note or Notes, if any, held by it) to any permitted
transferee, and such permitted transferee shall thereupon become vested with all the benefits in
respect thereof granted to such Lender herein or otherwise.

SECTION 24 RELEASE; TERMINATION

	 	(a)	 	Upon any sale, lease, transfer or other disposition of any item of Collateral
of any Grantor in accordance with the terms of the Loan Documents, or upon any
Subsidiary ceasing to be a Material Subsidiary, the security interests granted under
this Agreement by such Grantor in such Collateral or in the shares of stock or other
equity interests (including, without limitation, any Initial Pledged Equity) of such
Subsidiary that has ceased to be a Material Subsidiary shall immediately terminate and
automatically be released and Agent will promptly deliver at the Grantor’s request to
such Grantor all certificates representing any Pledged Equity released and all notes
and other instruments representing any Pledged Debt, Receivables or other Collateral,
and Agent will, at such Grantor’s expense, promptly execute and deliver to such Grantor
such documents as such Grantor shall reasonably request to evidence the release of such
item of Collateral from the assignment and security interest granted hereby; provided,
however, that (i) no such documents shall be required unless such Grantor, or lesser
period of time agreed by the Agent, shall have delivered to the Agent, at least five
Business Days prior to the date such documents are required by Grantor, a written
request for release describing the item of Collateral and the consideration to be
received in the sale, transfer or other disposition and any expenses in connection
therewith, together with a form of release for execution by the Agent and a certificate
of

- 28 -

 

	 	 	 	such Grantor to the effect that the transaction is in compliance with the Loan
Documents.
	 
	 	(b)	 	The pledge and security interest granted hereby will be terminated as set forth
in Section 9.16(b) of the Credit Agreement and upon such termination all rights to the
Collateral shall revert to the applicable Grantor and the Agent will promptly deliver
to the applicable Grantors all certificates representing any Pledged Equity or Pledged
Debt, Receivables or other Collateral. Upon any such termination, the Agent will, at
the applicable Grantor’s expense, promptly execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such termination.

SECTION 25 CURRENCY REFERENCES

Intentionally Deleted

SECTION 26 EXECUTION IN COUNTERPARTS

          This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier
or .pdf shall be effective as delivery of an original executed counterpart of this Agreement.

SECTION 27 GOVERNING LAW

          This Agreement shall be governed by, and construed in accordance with, the laws of the
Province of Ontario and the federal laws of Canada applicable therein.

SECTION 28 CONTINUATION OF LIENS GRANTED UNDER THE EXISTING CANADIAN SECURITY AGREEMENT

          This Agreement shall become effective upon the Agent’s receipt of executed counterparts to
this Agreement from the Borrower and each other Grantor listed on the signature pages hereof. Upon
the effectiveness of this Agreement, (a) the terms and condition of the Existing Canadian Security
Agreement shall be amended as set forth herein and, as so amended, shall be restated in their
entirety and (b) Bank of America will succeed as Agent hereunder in accordance with Section 8.12 of
the Credit Agreement. This Agreement shall not in any way release or impair the rights, duties,
obligations or Liens, security interests and hypothecs created pursuant to the Existing Canadian
Security Agreement or affect the relative priorities thereof, in each case to the extent in force
and effect thereunder as of the effective date of this Agreement, except as specifically modified
hereby or by documents, instruments and agreements executed and delivered in connection herewith,
and all of such rights, duties, obligations, Liens, security interests and hypothecs are assumed,
ratified and affirmed by the Borrower and each other Grantor. The Liens, security interests and
hypothecs granted in favor of the Agent pursuant to the Existing Canadian Security Agreement shall
continue without any diminution thereof and shall remain in full force and effect on and after the
effectiveness of this Agreement. Without limiting the generality of the foregoing, this Agreement
and all of the Collateral described herein

- 29 -

 

do and shall continue to secure the payment of all Secured Obligations of the Grantors under
the Loan Documents to the extent provided herein.

          IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written.

[Remainder of page intentionally left blank]

- 30 -

 

	 	 	 	 	 	 	 	 	 	 	 

	6 Monogram Place, Suite 200	 	KODAK CANADA INC.	 	 	 	 
	Toronto, Ontario, M9R 0A1
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Facsimile: 416.761.4399
	 	 	 	 	 	 	 	 	 	 
	Attention: Legal Department	 	By:	 	/s/ William G. Love
	 	 	 	 	   	 	 	 	 
	 

	 	 	 	Name:
	 	William G. Love	 	 	 	 
	 

	 	 	 	Title:
	 	Assistant Secretary and

Assistant Treasurer	 	 	 	 

Signature
Page to Second  Amended and Restated Canadian Security Agreement

 

Schedule I , Part I

to the Canadian Security Agreement

INVESTMENT PROPERTY

Part I

Initial Pledged Equity

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	Issuer of	 	Class of	 	 	 	 	 	 	 	 	 	Total Number	 	Number	 	Outstanding
	 	 	 	 	Pledged	 	Equity	 	Par	 	Certificate	 	of Shares	 	of Shares	 	Shares
	Grantor	 	Equity	 	Interest	 	Value	 	No(s)	 	Outstanding	 	Pledged	 	Pledged

None

 

 

Schedule I , Part II

to the Canadian Security Agreement

INVESTMENT PROPERTY

Part II

Initial Pledged Debt

	 	 	 	 	 	 	 
	Grantor	 	Debt Issuer	 	Description of Debt	 	Final Maturity
	Kodak Canada Inc

	 	Eastman Kodak Company
	 	Intercompany Receivable
	 	Monthly
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Kodak Graphic Communications Canada Company
	 	Intercompany Receivable
	 	Monthly

 

 

Schedule I , Part III

to the Canadian Security Agreement

INVESTMENT PROPERTY

Part III

Other Investment Property

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grantor	 	 	Issuer	 	 	Name of Investment	 	 	Certificate No(s)	 	 	Other Identification	 

None over $10M

 

 

Schedule II
to the Canadian Security Agreement

PLEDGED DEPOSIT ACCOUNTS

KCI CAD ACCOUNTS

	 	 	 	 	 	 	 
	Grantor	 	Name and Address of Bank	 	Account Number	 	Contact Name
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Caisse Populaire Desjardins, 14 Place de Commerce Bureau 150, Verdun, Quebec Canada H3E 1T5
	 	[*]
	 	[*]

KCI USD ACCOUNTS

	 	 	 	 	 	 	 
	Grantor	 	Name and Address of Bank	 	Account Number	 	Contact Name
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]
	 
	 	 	 	 	 	 
	Kodak Canada Inc

	 	Scotiabank, 44 King Street West Toronto, Ontario, Canada M5H 1H1
	 	[*]
	 	[*]

 

			
	[*]	 	  Certain confidential information contained in this document has been omitted from public
filing pursuant to a request for confidential treatment submitted to the U.S. Securities and
Exchange Commission. The omitted information, which has been identified with the symbol “[*],” has
been filed separately with the U.S. Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

 

Schedule III
to the Canadian Security Agreement

RECEIVABLES AND AGREEMENT COLLATERAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Note	 	Description of	 	 	 	 
	Grantor	 	Payee	 	Receivable	 	Amount ($M)	 	Final Maturity

None over $10M

 

 

Schedule IV

to the Canadian Security Agreement

INTELLECTUAL PROPERTY

	A.	 	Patents

	 	 	 	No Patents

	B.	 	Domain Names and Trademarks
	 
	 	 	Domain Names:

	 	 	 	kodak.ca

kodakgallery.ca

shopkodak.ca

	 	 	Trademarks:

	 	 	 	See attached

	C.	 	Copyrights

	 	 	 	No Copyrights

 

 

TM
Rights (Grouped by registered owner) + Status
              Report Date: 4/14/2001

	 	 	 	 	 

	Registered Owner
	 	Kodak Canada Inc.	 	6 Monogram Place, Suite 200
	 
	 	 	 	Toronto, Ontario
	 
	 	 	 	M9R 0A1, CANADA

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ID	 	Country	 	Mark	 	Classes	 	App.#	 	App. Dt	 	Reg. #	 	Reg.DT	 	Status
	153006

	 	Canada
	 	AD-TYPE
	 	 	1, 9	 	 	 	159625	 	 	 	 	 	56470	 	 	2/14/1933
	 	Registered
	154249

	 	Canada
	 	AERO
	 	 	1	 	 	 	159622	 	 	9/16/1932
	 	 	56467	 	 	2/13/1933
	 	Registered
	146883

	 	Canada
	 	AEROGRAPHIC
	 	 	 	 	 	 	229742	 	 	 	 	 	103389	 	 	5/25/1956
	 	Registered
	148065

	 	Canada
	 	AZO
	 	 	1, 9	 	 	 	502797	 	 	 	 	 	22599	 	 	5/22/1917
	 	Registered
	147253

	 	Canada
	 	BROWNIE
	 	 	 	 	 	 	91958	 	 	11/16/1917
	 	 	23102	 	 	12/5/1917
	 	Registered
	148405

	 	Canada
	 	CANADA’S PHOTO MFGR &
D : 1/2 MAPLE LEAF
	 	 	000	 	 	 	746607	 	 	2/4/1994
	 	 	490185	 	 	2/18/1998
	 	Registered
	145380

	 	Canada
	 	D:RAINBOW K
	 	 	 	 	 	 	736981	 	 	9/17/1993
	 	 	466587	 	 	11/29/1996
	 	Registered
	162290

	 	Canada
	 	D-11
	 	 	 	 	 	 	229747	 	 	 	 	 	101933	 	 	11/18/1955
	 	Registered
	137915

	 	Canada
	 	D-76
	 	 	 	 	 	 	229749	 	 	 	 	 	101931	 	 	11/18/1955
	 	Registered
	150769

	 	Canada
	 	DATAGUIDE
	 	 	 	 	 	 	229751	 	 	 	 	 	103804	 	 	7/13/1956
	 	Registered
	136730

	 	Canada
	 	DEKTOL
	 	 	 	 	 	 	229752	 	 	 	 	 	101859	 	 	11/10/1955
	 	Registered
	164961

	 	Canada
	 	DK-50
	 	 	 	 	 	 	229748	 	 	 	 	 	101932	 	 	11/18/1955
	 	Registered
	168546

	 	Canada
	 	DK-60
	 	 	 	 	 	 	229750	 	 	 	 	 	101936	 	 	11/18/1985
	 	Registered
	163522

	 	Canada
	 	DURACLEAR
	 	 	 	 	 	 	667192	 	 	9/26/1990
	 	 	392782	 	 	1/10/1992
	 	Registered
	137744

	 	Canada
	 	DURAFLEX
	 	 	6,9,16	 	 	 	522823	 	 	5/30/1984
	 	 	301788	 	 	4/12/1985
	 	Registered
	158062

	 	Canada
	 	DURAFLO
	 	 	1	 	 	 	508313	 	 	8/12/1983
	 	 	294236	 	 	8/17/1984
	 	Registered
	163357

	 	Canada
	 	EASTMAN
	 	 	1	 	 	 	160057	 	 	 	 	 	56773	 	 	3/6/1933
	 	Registered
	155851

	 	Canada
	 	EKTACHROME
	 	 	 	 	 	 	229720	 	 	 	 	 	101854	 	 	11/10/1955
	 	Registered
	137366

	 	Canada
	 	EKTACOLOR
	 	 	 	 	 	 	229719	 	 	 	 	 	101857	 	 	11/10/1955
	 	Registered
	148977

	 	Canada
	 	EKTACOLOR GOLD
	 	 	1	 	 	 	610101	 	 	6/27/1988
	 	 	355860	 	 	5/12/1989
	 	Registered
	171918

	 	Canada
	 	EKTAFLO
	 	 	 	 	 	 	0295275	 	 	2/23/1966
	 	TMA146309
	 	7/22/1966
	 	Registered
	155628

	 	Canada
	 	EKTAGRAPHIC
	 	 	9	 	 	 	357205	 	 	 	 	 	200257	 	 	7/5/1974
	 	Registered
	142502

	 	Canada
	 	EKTALITE
	 	 	9	 	 	 	316405	 	 	9/26/1968
	 	 	163220	 	 	5/30/1969
	 	Registered
	145929

	 	Canada
	 	EKTANON
	 	 	 	 	 	 	229716	 	 	 	 	 	101860	 	 	11/10/1955
	 	Registered
	133282

	 	Canada
	 	EKTAPRO
	 	 	1	 	 	 	543531	 	 	6/10/1985
	 	 	324931	 	 	3/20/1987
	 	Registered
	131444

	 	Canada
	 	EKTAR
	 	 	9	 	 	 	173137	 	 	4/13/1938
	 	 	10569	 	 	4/13/1998
	 	Registered
	155625

	 	Canada
	 	EKTASCAN
	 	 	 	 	 	 	770316	 	 	12/7/1994
	 	 	515842	 	 	8/31/1999
	 	Registered
	133257

	 	Canada
	 	EKTASPEED
	 	 	 	 	 	 	0460142	 	 	10/15/1980
	 	 	265826	 	 	1/15/1982
	 	Registered
	164401

	 	Canada
	 	EKTATHERM
	 	 	 	 	 	 	667094	 	 	9/25/1990
	 	 	395199	 	 	3/6/1992
	 	Registered
	160542

	 	Canada
	 	ELON
	 	 	 	 	 	 	0503087	 	 	5/22/1917
	 	 	22600	 	 	5/22/1917
	 	Registered
	143536

	 	Canada
	 	ESTAR
	 	 	1	 	 	 	282919	 	 	 	 	 	138644	 	 	7/15/1994
	 	Registered
	153268

	 	Canada
	 	GOLD
	 	 	 	 	 	 	660544	 	 	6/21/1990
	 	TMA384757
	 	5/17/1991
	 	Registered
	149814

	 	Canada
	 	HAWKEYE
	 	 	 	 	 	 	159613	 	 	 	 	 	56458	 	 	2/13/1933
	 	Registered
	137485

	 	Canada
	 	KODABROMIDE
	 	 	1, 9	 	 	 	 	 	 	 	 	 	44723	 	 	 	 	Registered
	151864

	 	Canada
	 	KODACHROME
	 	 	1, 9	 	 	 	177665	 	 	 	 	 	14151	 	 	5/18/1940
	 	Registered
	150713

	 	Canada
	 	KODACOLOR
	 	 	 	 	 	 	712873	 	 	9/16/1992
	 	 	434672	 	 	10/21/1994
	 	Registered
	151174

	 	Canada
	 	KODACOLOR
	 	 	1, 9	 	 	 	160062	 	 	 	 	 	57424	 	 	11/7/1934
	 	Registered
	163204

	 	Canada
	 	KODACOLOR GOLD
	 	 	1	 	 	 	600248	 	 	2/5/1988
	 	 	357295	 	 	6/16/1989
	 	Registered
	147191

	 	Canada
	 	KODACOLOR VR
	 	 	1	 	 	 	503378	 	 	5/11/1983
	 	 	287707	 	 	2/10/1984
	 	Registered
	145449

	 	Canada
	 	KODAFIX
	 	 	 	 	 	 	229740	 	 	 	 	 	101875	 	 	11/10/1955
	 	Registered
	136207

	 	Canada
	 	KODAFLEX
	 	 	 	 	 	 	0299504	 	 	9/9/1966
	 	 	151036	 	 	5/26/1967
	 	Registered
	144806

	 	Canada
	 	KODAGRAPH
	 	 	1	 	 	 	181685	 	 	10/17/1942
	 	 	17395	 	 	10/17/1942
	 	Registered
	154859

	 	Canada
	 	KODAIRE
	 	 	6, 22	 	 	 	510866	 	 	10/17/1983
	 	 	306224	 	 	8/23/1985
	 	Registered
	150717

	 	Canada
	 	KODAK
	 	 	 	 	 	 	712874	 	 	9/16/1992
	 	 	448227	 	 	9/29/1995
	 	Registered
	140544

	 	Canada
	 	KODAK
	 	 	1,9,16	 	 	 	53223	 	 	 	 	 	10508	 	 	1/3/1906
	 	Registered
	140550

	 	Canada
	 	KODAK
	 	 	22, 23	 	 	 	273945	 	 	4/12/1996
	 	 	146103	 	 	7/8/1996
	 	Registered
	140539

	 	Canada
	 	KODAK
	 	 	9, 16	 	 	 	39206	 	 	 	 	 	7446	 	 	8/13/1900
	 	Registered

 

 

TM
Rights (Grouped by registered owner) + Status
              Report Date: 4/14/2001

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ID	 	Country	 	Mark	 	Classes	 	App.#	 	App. Dt	 	Reg. #	 	Reg.DT	 	Status
	142637

	 	Canada
	 	KODAK &

D:SELLERS1
INSIGNIA
	 	 	1, 6, 9, 16	 	 	 	509,390	 	 	9/14/1983
	 	 	301195	 	 	3/29/1985
	 	Registered
	142641

	 	Canada
	 	KODAK &

D:SELLERS1
INSIGNIA
	 	 	1, 9, 16	 	 	 	509391	 	 	9/14/1983
	 	 	300801	 	 	3/15/1985
	 	Registered
	143339

	 	Canada
	 	KODAK & D:TURNED

CORNER
	 	 	9, 16	 	 	 	307499	 	 	 	 	 	159407	 	 	11/22/1998
	 	Registered
	148597

	 	Canada
	 	KODAK APPROVAL
	 	 	 	 	 	 	665224	 	 	8/27/1990
	 	 	416866	 	 	9/17/1993
	 	Registered
	148521

	 	Canada
	 	KODAK CORP.SYMBOL —
B&W
	 	 	1, 9, 16, 22, 23	 	 	 	343097	 	 	5/28/1971
	 	 	198561	 	 	4/5/1974
	 	Registered
	155812

	 	Canada
	 	KODAK CORP.SYMBOL
—Y&R
	 	 	1, 9, 16, 22, 23	 	 	 	343098	 	 	5/28/1971
	 	 	198551	 	 	4/5/1974
	 	Registered
	153749

	 	Canada
	 	KODAK GOLD
	 	 	 	 	 	 	683796	 	 	6/10/1991
	 	 	400197	 	 	7/10/1992
	 	Registered
	150274

	 	Canada
	 	KODAK IMAGE CERTIFIEE

AND D:CHECKMARK
	 	 	 	 	 	 	687923	 	 	8/16/1991
	 	 	414781	 	 	7/23/1993
	 	Registered
	159234

	 	Canada
	 	KODAK IMAGE CHECK AND

D:CHECKMARK
	 	 	 	 	 	 	687922	 	 	8/16/1991
	 	 	414383	 	 	7/9/1993
	 	Registered
	169845

	 	Canada
	 	KODAK IMAGE CHECK AND

D:CHECKMARK
	 	 	 	 	 	 	661030	 	 	6/26/1990
	 	 	393187	 	 	1/24/1992
	 	Registered
	139848

	 	Canada
	 	KODAK PHOTO FX

(STYLIZED)
	 	 	 	 	 	 	725688	 	 	3/29/1993
	 	 	460212	 	 	7/19/1996
	 	Registered
	136659

	 	Canada
	 	KODAK SUPRALIFE
	 	 	9	 	 	 	563072	 	 	5/22/1986
	 	 	340652	 	 	5/20/1988
	 	Registered
	168525

	 	Canada
	 	KODAK XTRALIFE
	 	 	 	 	 	 	1070261	 	 	8/8/2000
	 	 	565355	 	 	7/30/2002
	 	Registered
	150770

	 	Canada
	 	KODALINE
	 	 	1	 	 	 	363047	 	 	4/5/1973
	 	 	195508	 	 	11/16/1973
	 	Registered
	144956

	 	Canada
	 	KODAMATIC
	 	 	1, 9	 	 	 	475191	 	 	9/8/1981
	 	 	290914	 	 	5/11/1984
	 	Registered
	152099

	 	Canada
	 	KODAPAK
	 	 	16	 	 	 	772094	 	 	12/30/1994
	 	 	488417	 	 	1/28/1998
	 	Registered
	133062

	 	Canada
	 	KODASLIDE
	 	 	 	 	 	 	0171321	 	 	7/13/1937
	 	 	8761	 	 	7/13/1937
	 	Registered
	168112

	 	Canada
	 	KODAVISION
	 	 	 	 	 	 	513699	 	 	12/12/1983
	 	 	303175	 	 	5/24/1985
	 	Registered
	153964

	 	Canada
	 	KOLORKINS
	 	 	 	 	 	 	603828	 	 	3/28/1988
	 	 	416216	 	 	9/3/1993
	 	Registered
	140819

	 	Canada
	 	LINAGRAPH
	 	 	 	 	 	 	0216274	 	 	8/21/1952
	 	 	43602	 	 	8/21/1952
	 	Registered
	130540

	 	Canada
	 	MEDALIST
	 	 	 	 	 	 	229736	 	 	 	 	 	103388	 	 	5/25/1956
	 	Registered
	146798

	 	Canada
	 	MICRODOL
	 	 	 	 	 	 	229735	 	 	4/4/1955
	 	 	101935	 	 	11/18/1955
	 	Registered
	138808

	 	Canada
	 	MICRO-FILE
	 	 	 	 	 	 	 	 	 	 	 	 	102824	 	 	3/9/1956
	 	Registered
	133459

	 	Canada
	 	OPTIWRITER
	 	 	 	 	 	 	666289	 	 	9/13/1990
	 	 	419091	 	 	11/5/1993
	 	Registered
	144710

	 	Canada
	 	PHOTO-FLO
	 	 	 	 	 	 	229731	 	 	 	 	 	101864	 	 	11/10/1955
	 	Registered
	132173

	 	Canada
	 	PHOTOFLURE
	 	 	 	 	 	 	229710	 	 	 	 	 	101872	 	 	11/10/1955
	 	Registered
	150398

	 	Canada
	 	PLUS-X
	 	 	 	 	 	 	229729	 	 	 	 	 	101874	 	 	11/10/1955
	 	Registered
	141077

	 	Canada
	 	RELIANT
	 	 	 	 	 	 	0237482	 	 	9/20/1956
	 	 	106536	 	 	5/3/1957
	 	Registered
	144917

	 	Canada
	 	S:A KODAK MOMENT
	 	 	 	 	 	 	734994	 	 	8/16/1993
	 	TMA473026
	 	3/19/1997
	 	Registered
	154423

	 	Canada
	 	SHELLBURST
	 	 	1	 	 	 	312132	 	 	 	 	 	160714	 	 	1/24/1969
	 	Registered
	154361

	 	Canada
	 	TRANSLITE
	 	 	1	 	 	 	159621	 	 	 	 	 	56466	 	 	2/13/1933
	 	Registered
	161731

	 	Canada
	 	TRI-X
	 	 	 	 	 	 	229762	 	 	 	 	 	102504	 	 	1/27/1956
	 	Registered
	137112

	 	Canada
	 	VERICHROME
	 	 	1	 	 	 	158077	 	 	 	 	 	55269	 	 	9/29/1932
	 	Registered
	132226

	 	Canada
	 	VERIFAX
	 	 	 	 	 	 	228407	 	 	 	 	 	101808	 	 	11/4/1955
	 	Registered
	158847

	 	Canada
	 	VR (STYLIZED)
	 	 	1	 	 	 	503379	 	 	5/11/1983
	 	 	293854	 	 	8/10/1984
	 	Registered
	149355

	 	Canada
	 	WRATTEN
	 	 	9	 	 	 	160065	 	 	 	 	 	56777	 	 	3/6/1933
	 	Registered

- 3 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Registered Owner:	 	Qualex Canada Photofinishing Inc.	 	Ontario, Canada	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	ID
	 	Country	 	Mark	 	Classes	 	App#	 	App. Dt	 	Reg. #	 	Reg.DT	 	Status
	168823
	 	Canada	 	PICK-A-POSE	 	 	 	 	 	 	529933	 	 	 	10/15/1984	 	 	 	303543	 	 	 	6/7/1985	 	 	Registered

- 4 -

 

Schedule V

to the Canadian Security Agreement

CHIEF EXECUTIVE OFFICE, TYPE OF ORGANIZATION, JURISDICTION OF ORGANIZATION AND ORGANIZATIONAL

IDENTIFICATION NUMBER

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Chief Executive	 	 	 	Jurisdiction of
	Grantor	 	Location	 	Office	 	Type of Organization	 	Organization
	Kodak Canada Inc

	 	Ontario
	 	6 Monogram Place,
Suite 200, Toronto,
Ontario, M9R 0A1
	 	Corporation
	 	Ontario

 

 

Schedule VI

to the Canadian Security Agreement

CHANGES IN NAME, LOCATION, ETC. WITHIN TWELVE MONTHS PRIOR TO

THE DATE OF THE AGREEMENT

Effective January 1, 2011, Qualex Canada Photofinishing Inc., a federal corporation and Kodak
Canada Inc. were amalgamated and continued under the name Kodak Canada Inc.

 

 

Schedule VII

to the Canadian Security Agreement

LETTERS OF

CREDIT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Financial	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beneficiary	 	 	Institution Issuing	 	 	Nominated Person	 	 	 	 	 	 	 	 	 	 	Maximum Available	 	 	 	 
	(Grantor)	 	 	LoC	 	 	(if any)	 	 	Account Party	 	 	Number	 	 	Amount	 	 	Date	 

None over $10M

 

 

Schedule VIII

to the Canadian Security Agreement

EQUIPMENT LOCATIONS

	 	 	 	 	 
	Grantor	 	 	Location	 

None over $10M

 

 

Schedule IX

to the Canadian Security Agreement

INVENTORY LOCATIONS

	 	 	 	 	 
	Grantor	 	 	Location	 

None over $10M

 

 

Schedule X

to the Canadian Security Agreement

COLLATERAL HELD FOR SALE

None.

 

 

Exhibit A to the

Second Amended and Restated Canadian Security Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT

          This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, amended and restated, supplemented
or otherwise modified from time to time, the “IP Security Agreement”) dated __________, 20_, is
made by the Persons listed on the signature pages hereof (collectively, the “Grantors”) in favour
of Bank of America, N.A., as Agent (the “Agent”) for the Secured Parties (as successor agent to
Citicorp USA, Inc.) (as defined in the Credit Agreement referred to below).

          WHEREAS, Eastman Kodak Company, a New Jersey corporation and Kodak Canada Inc., an Ontario
corporation, have entered into a Second Amended and Restated Credit Agreement dated as of April 26,
2011 (as amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), with, among others, Bank of America, N.A., as Agent (as successor agent to
Citicorp USA, Inc.), and the Lenders party thereto. Terms defined in the Credit Agreement and not
otherwise defined herein are used herein as defined in the Credit Agreement.

          WHEREAS, as a condition precedent to the making of Advances by the Lenders under the Credit
Agreement, each Grantor has executed and delivered that certain Second Amended and Restated
Canadian Security Agreement dated April 26, 2011 made by the Grantors to the Agent (as amended,
amended and restated, supplemented or otherwise modified from time to time, the “Canadian Security
Agreement”).

          WHEREAS, under the terms of the Canadian Security Agreement, the Grantors have granted to the
Agent, for the ratable benefit of the Secured Parties, a security interest in, among other
property, certain intellectual property of the Grantors, and have agreed as a condition thereof to
execute this IP Security Agreement for recording with the Canadian Intellectual Property Office and
other governmental authorities.

          NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Grantor agrees as follows:

SECTION 1 GRANT OF SECURITY

          Each Grantor hereby grants to the Agent for the ratable benefit of the Secured Parties a
security interest in all of such Grantor’s right, title and interest in and to the following (the
“Collateral”):

	 	(a)	 	the patents and patent applications set forth in Schedule A hereto (the
“Patents”);

	 	(b)	 	the trademark and service mark registrations and applications set forth in
Schedule B hereto, together with the goodwill symbolized thereby (the “Trademarks”);

 

 

	 	(c)	 	all copyrights, whether registered or unregistered, now owned or hereafter
acquired by such Grantor, including, without limitation, the copyright registrations
and applications and exclusive copyright licenses set forth in Schedule C hereto (the
“Copyrights”);

	 	(d)	 	all reissues, divisions, continuations, continuations-in-part, extensions,
renewals and reexaminations of any of the foregoing, all rights in the foregoing
provided by international treaties or conventions, all rights corresponding thereto
throughout the world and all other rights of any kind whatsoever of such Grantor
accruing thereunder or pertaining thereto;

	 	(e)	 	any and all claims for damages and injunctive relief for past, present and
future infringement, dilution, misappropriation, violation, misuse or breach with
respect to any of the foregoing, with the right, but not the obligation, to sue for and
collect, or otherwise recover, such damages; and

	 	(f)	 	any and all proceeds of, collateral for, income, royalties and other payments
now or hereafter due and payable with respect to, and supporting obligations relating
to, any and all of the Collateral of or arising from any of the foregoing.

SECTION 2 SECURITY FOR OBLIGATIONS

          The grant of a security interest in, the Collateral by each Grantor under this IP Security
Agreement secures the payment of all obligations of such Grantor now or hereafter existing under or
in respect of the Loan Documents and the Canadian Secured Agreements, whether direct or indirect,
absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums,
penalties, fees, indemnifications, contract causes of action, costs, expenses or otherwise.
Without limiting the generality of the foregoing, this IP Security Agreement secures, as to each
Grantor, the payment of all amounts that constitute part of the Secured Obligations and that would
be owed by such Grantor to any Secured Party under the Loan Documents and the Canadian Secured
Agreements but for the fact that such Secured Obligations are unenforceable or not allowable due to
the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party.

SECTION 3 RECORDATION

          Each Grantor authorizes and requests that the applicable government officer record this IP
Security Agreement.

SECTION 4 EXECUTION IN COUNTERPARTS

          This IP Security Agreement may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together shall constitute one
and the same agreement.

- 2 -

 

SECTION 5 GRANTS, RIGHTS AND REMEDIES

          This IP Security Agreement has been entered into in conjunction with the provisions of the
Canadian Security Agreement. Each Grantor does hereby acknowledge and confirm that the grant of
the security interest hereunder to, and the rights and remedies of, the Agent with respect to the
Collateral are more fully set forth in the Canadian Security Agreement, the terms and provisions of
which are incorporated herein by reference as if fully set forth herein.

SECTION 6 GOVERNING LAW

          This IP Security Agreement shall be governed by, and construed in accordance with, the laws of
the Province of Ontario and the laws of Canada applicable therein.

          IN WITNESS WHEREOF, each Grantor has caused this IP Security Agreement to be duly executed and
delivered by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	KODAK CANADA INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Address for Notices: 	 
	 
	 	 	 
	 	 	 
	 	 	 

- 3 -

 

Exhibit B to the

Second Amended and Restated Canadian Security Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT

          This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT (this “IP Security Agreement
Supplement”) dated __________, 20__, is made by the Person listed on the signature page hereof (the
“Grantor”) in favor of Bank of America, N.A., as Agent (the “Agent”) for the Secured Parties (as
defined in the Credit Agreement referred to below).

          WHEREAS, Eastman Kodak Company, a New Jersey corporation and Kodak Canada Inc., an Ontario
corporation, have entered into a Second Amended and Restated Credit Agreement dated as of April 26,
2011 (as amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”) with, among others, Bank of America, N.A., as Agent, and the Lenders party
thereto. Terms defined in the Credit Agreement and not otherwise defined herein are used herein as
defined in the Credit Agreement.

          WHEREAS, pursuant to the Credit Agreement, the Grantor and certain other Persons have executed
and delivered that certain Second Amended and Restated Canadian Security Agreement dated April 26,
2011 made by the Grantor and such other Persons to the Agent (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Canadian Security Agreement”) and that
certain Intellectual Property Security Agreement dated __________, 20__ (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “IP Security Agreement”).

          WHEREAS, under the terms of the Canadian Security Agreement, the Grantor has granted to the
Agent, for the ratable benefit of the Secured Parties, a security interest in the Collateral (as
defined in Section 1 below) of the Grantor and has agreed as a condition thereof to execute this IP
Security Agreement Supplement for recording with the Canadian Intellectual Property Office and
other governmental authorities.

          NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees as follows:

SECTION 1 GRANT OF SECURITY

          Each Grantor hereby grants to the Agent, for the ratable benefit of the Secured Parties, a
security interest in all of such Grantor’s right, title and interest in and to the following (the
“Collateral”):

	 	(a)	 	the patents and patent applications set forth in Schedule A hereto (the
“Patents”);

	 	(b)	 	the trademark and service mark registrations and applications set forth in
Schedule B hereto, together with the goodwill symbolized thereby (the “Trademarks”);

 

 

	 	(c)	 	the copyright registrations and applications and exclusive copyright licenses
set forth in Schedule C hereto (the “Copyrights”);

	 	(d)	 	all reissues, divisions, continuations, continuations-in-part, extensions,
renewals and reexaminations of any of the foregoing, all rights in the foregoing
provided by international treaties or conventions, all rights corresponding thereto
throughout the world and all other rights of any kind whatsoever of such Grantor
accruing thereunder or pertaining thereto;

	 	(e)	 	any and all claims for damages and injunctive relief for past, present and
future infringement, dilution, misappropriation, violation, misuse or breach with
respect to any of the foregoing, with the right, but not the obligation, to sue for and
collect, or otherwise recover, such damages; and

	 	(f)	 	any and all proceeds of, collateral for, income, royalties and other payments
now or hereafter due and payable with respect to, and supporting obligations relating
to, any and all of the foregoing or arising from any of the foregoing.

SECTION 2 SECURITY FOR OBLIGATIONS

          The grant of a security interest in the Additional Collateral by the Grantor under this IP
Security Agreement Supplement secures the payment of all Secured Obligations of the Grantor now or
hereafter existing under or in respect of the Loan Documents and the Canadian Secured Agreements,
whether direct or indirect, absolute or contingent, and whether for principal, reimbursement
obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action,
costs, expenses or otherwise.

SECTION 3 RECORDATION

          The Grantor authorizes and requests that the applicable government officer to record this IP
Security Agreement Supplement.

SECTION 4 GRANTS, RIGHTS AND REMEDIES

          This IP Security Agreement Supplement has been entered into in conjunction with the provisions
of the Canadian Security Agreement. The Grantor does hereby acknowledge and confirm that the grant
of the security interest hereunder to, and the rights and remedies of, the Agent with respect to
the Additional Collateral are more fully set forth in the Canadian Security Agreement, the terms
and provisions of which are incorporated herein by reference as if fully set forth herein.

SECTION 5 GOVERNING LAW

          This IP Security Agreement Supplement shall be governed by, and construed in accordance with,
the laws of the Province of Ontario and the laws of Canada applicable therein.

- 2 -

 

          IN WITNESS WHEREOF, the Grantor has caused this IP Security Agreement Supplement to be duly
executed and delivered by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Address for Notices: 	 
	 
	 	 	 
	 	 	 
	 	 	 

- 3 -

 

Exhibit C to the

Second Amended and Restated Canadian Security Agreement

FORM OF CANADIAN SECURITY AGREEMENT SUPPLEMENT

[Date of Canadian Security Agreement Supplement]

Bank of America, N.A., as the Agent for

the Secured Parties referred to in the

Credit Agreement referred to below

__________

__________

Attn: __________

Kodak Canada Inc.

Ladies and Gentlemen:

          Reference is made to (i) the Second Amended and Restated Credit Agreement dated as of April
26, 2011 (as amended, amended and restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among, among others, Eastman Kodak Company, a New Jersey corporation and
Kodak Canada Inc., an Ontario corporation, as Borrowers, the Lenders party thereto, Bank of
America, N.A., as Agent (as successor agent to Citicorp USA, Inc.) (together with any successor
Agent appointed pursuant to Article VIII of the Credit Agreement, the “Agent”), and as
administrative agent for the Lenders, and (ii) the Second Amended and Restated Canadian Security
Agreement dated April 26, 2011 (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Canadian Security Agreement”) made by the Grantors from time to
time party thereto in favor of the Agent for the Secured Parties. Terms defined in the Credit
Agreement or the Canadian Security Agreement and not otherwise defined herein are used herein as
defined in the Credit Agreement or the Canadian Security Agreement.

SECTION 1 GRANT OF SECURITY

          The undersigned hereby grants to the Agent, for the ratable benefit of the Secured Parties, a
security interest and a security interest is taken in all of its right, title and interest in and
to its Collateral consisting of the following, in each case whether now owned or hereafter acquired
by the undersigned, wherever located and whether now or hereafter existing or arising
(collectively, the undersigned’s “Collateral”): all Equipment, Inventory, Security Collateral
(including, without limitation, the indebtedness set forth on Schedule A hereto and the securities
and securities/deposit accounts set forth on Schedule B hereto), Receivables, Related Contracts,
Agreement Collateral, Account Collateral (including, the deposit accounts set forth on Schedule C
hereto), Intellectual Property Collateral, all books and records (including, without limitation,
customer lists, credit files, printouts and other computer output materials and records) of the
undersigned pertaining to any of the undersigned’s Collateral and including without limitation all
its present and after acquired personal property, and all proceeds of, collateral for, income,
royalties and other payments now or hereafter due and payable with respect to, and supporting

 

 

obligations relating to, any and all of the undersigned’s Collateral (including, without
limitation, proceeds, collateral and supporting obligations that constitute property of the types
described in this Section 1) and, to the extent not otherwise included, all (A) payments under
insurance (whether or not the Agent is the loss payee thereof), or any indemnity, warranty or
guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing
Collateral, and (B) cash.

SECTION 2 SECURITY FOR OBLIGATIONS

          The grant of a security interest in, the Collateral by the undersigned under this Canadian
Security Agreement Supplement and the Canadian Security Agreement secures the payment of all
obligations of the undersigned now or hereafter existing under or in respect of the Loan Documents,
whether direct or indirect, absolute or contingent, and whether for principal, reimbursement
obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action,
costs, expenses or otherwise. Without limiting the generality of the foregoing, this Canadian
Security Agreement Supplement and the Canadian Security Agreement secures the payment of all
amounts that constitute part of the Secured Obligations and that would be owed by the undersigned
to any Secured Party under the Loan Documents and the Canadian Secured Agreements but for the fact
that such Secured Obligations are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving a Loan Party.

SECTION 3 REPRESENTATIONS AND WARRANTIES

	 	(a)	 	The undersigned’s exact legal name, location, chief executive office, type of
organization, jurisdiction of organization and organizational identification number is
set forth in Schedule D hereto. Within the twelve months preceding the date hereof,
the undersigned has not changed its name, chief executive office, type of organization,
jurisdiction of organization or organizational identification number from those set
forth in Schedule F hereto except as set forth in Schedule G hereto.

	 	(b)	 	All Equipment having a value in excess of $10,000,000 and all Inventory having
a value in excess of $10,000,000 as of the date hereof of the undersigned is located at
the places specified therefor in Schedule H hereto.

	 	(c)	 	The undersigned is not a beneficiary or assignee under any letter of credit,
other than the letters of credit described in Schedule I hereto.

	 	(d)	 	The undersigned hereby makes each other representation and warranty set forth
in Section 6 of the Canadian Security Agreement with respect to itself and the
Collateral granted by it.

SECTION 4 OBLIGATIONS UNDER THE CANADIAN SECURITY AGREEMENT

          The undersigned hereby agrees, as of the date first above written, to be bound as a Grantor by
all of the terms and provisions of the Canadian Security Agreement to the same extent as each of
the other Grantors. The undersigned further agrees, as of the date first above written, that each
reference in the Canadian Security Agreement to an “Additional Grantor” or a

- 2 -

 

“Grantor” shall also mean and be a reference to the undersigned, that each reference to the
“Collateral” or any part thereof shall also mean and be a reference to the undersigned’s Collateral
or part thereof, as the case may be, and that each reference in the Canadian Security Agreement to
a Schedule shall also mean and be a reference to the schedules attached hereto.

SECTION 5 GOVERNING LAW

          This Canadian Security Agreement Supplement shall be governed by, and construed in accordance
with, the laws of the Province of Ontario and the laws of Canada applicable therein.1

	 	 	 	 	 
	 	Very truly yours,

[NAME OF ADDITIONAL GRANTOR]

 	 
	 	By:  	 	 
	 	 	Title:  	 	 
	 
	 	Address for Notices: 	 
	 
	 	 	 
	 	 	 
	 	 	 

 

			
	1	 	If the Additional Grantor is not concurrently
executing a guaranty or other Loan Document containing provisions relating to
submission to jurisdiction and jury trial waiver, include them here.

- 3 -exv10w3

Exhibit 10.3

EXECUTION VERSION

NOTICE, JOINDER AND AMENDMENT TO INTERCREDITOR AGREEMENT

     NOTICE, JOINDER AND AMENDMENT TO INTERCREDITOR AGREEMENT (this “Agreement”), dated as
of April 26, 2011, by and among EASTMAN KODAK COMPANY (the “Company”), for itself and on
behalf of the other Grantors, CITICORP USA, INC., in its capacity as the Initial First Lien
Representative (the “Initial First Lien Representative”), THE BANK OF NEW YORK MELLON, in
its capacity as Second Lien Representative for and on behalf of the Second Lien Secured Parties,
and BANK OF AMERICA, N.A., in its capacity as successor First Lien Representative (the “New
First Lien Representative”).

     A. Reference is made to that certain Intercreditor Agreement, dated as of March 5, 2010, among
the Initial First Lien Representative, the Second Lien Representative, the Company and the other
Grantors (as amended, supplemented or otherwise modified, the “Intercreditor Agreement”;
capitalized terms used herein but not otherwise defined herein shall have the meanings assigned to
such terms in the Intercreditor Agreement).

     B. Pursuant to, and on the terms and conditions set forth in that certain Second Amended and
Restated Credit Agreement, dated as of April 26, 2011, among the Company, the New First
Lien Representative and the other parties thereto (the “Credit Agreement”), Bank of
America, N.A. has succeeded Citicorp USA, Inc. as agent for the First Lien Secured Parties in
respect of the Revolving Credit Facility (as defined therein), including as the representative of
the First Lien Secured Parties under the Intercreditor Agreement (the “Agency Assumption”).

     C. The parties hereto desire to execute and deliver this Agreement to evidence the joinder of
the New First Lien Representative as a First Lien Representative under the Intercreditor Agreement.

     D. The Company, for itself and on behalf of the other Grantors, desires to amend certain
provisions of the Intercreditor Agreement as set forth herein to provide that so long as none of
the Grantors are required under the First Lien Documents to provide the First Lien Secured Parties
with any lien on their real property or fixtures to secure the First Lien Obligations, the
provisions of Section 2.04 are inapplicable and will not require such security for the First Lien
Obligations even if a grant of a Lien on such real property or fixtures is given to secure the
Second Lien Obligations, and the New First Lien Representative (on behalf of the First Lien Secured
Parties) and the Second Lien Representative (on behalf of the Second Lien Secured Parties) are
willing to agree to such amendments on the terms and subject to the conditions set forth herein.

     NOW, THEREFORE, for and in consideration of good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

     SECTION 1. Notice. Pursuant to Section 6.01 of the Intercreditor Agreement, Bank of
America N.A. hereby gives notice to the Second Lien Representative that Bank of American N.A. has
succeeded Citicorp USA, Inc. as a First Lien Representative.

     SECTION 2. Joinder. The parties hereto acknowledge and agree that, pursuant to the
Agency Assumption, the New First Lien Representative has become a First Lien Representative under
the Intercreditor Agreement, with the same force and effect as if the New First Lien Representative
had originally been named therein as a First Lien Representative. The New First Lien
Representative hereby agrees to be bound by the terms of the Intercreditor Agreement as a First
Lien Representative and First Lien Secured Party thereunder. Each reference to the “First Lien
Representative” in the Intercreditor

 

 

Agreement shall be deemed to include the New First Lien Representative as successor to the
Initial First Lien Representative.

     SECTION 3. Amendment. The New First Lien Representative, the Second Lien
Representative and the Company (for itself and on behalf of the other Grantors) hereby agree that,
so long as any asset of the Company or any other Grantor constituting real property and fixtures is
excluded as First Lien Collateral pursuant to the First Lien Documents, such asset shall be
excluded from the operation of Section 2.04 of the Intercreditor Agreement.

     SECTION 4. Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute a single
contract. Delivery of an executed signature page to this Agreement by facsimile transmission or in
other electronic format shall be as effective as delivery of a manually signed counterpart of this
Agreement.

     SECTION 5. Reference to and Effect on the First Lien Documents and the Second Lien
Documents. (a) On and after the effectiveness of this Agreement, each reference in the
Intercreditor Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import
referring to the Intercreditor Agreement, and each reference in any First Lien Document or any
Second Lien Document to “the Intercreditor Agreement”, “thereunder”, “thereof” or words of like
import referring to the Intercreditor Agreement, shall mean and be a reference to the Intercreditor
Agreement, as amended and modified by this Agreement.

     (b) The Intercreditor Agreement, as specifically amended and modified by this Agreement, is
and shall continue to be in full force and effect and is hereby in all respects ratified and
confirmed.

     (c) The execution, delivery and effectiveness of this Agreement shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any First Lien Secured Party,
any Second Lien Secured Party, the Initial First Lien Representative, the New First Lien
Representative or the Second Lien Representative under any of the First Lien Documents or any of
the Second Lien Documents, nor constitute a waiver of any provision of any of the First Lien
Documents or any of the Second Lien Documents.

     (d) This Agreement shall be a “Loan Document” (as defined in the Credit Agreement) for all
purposes of the Credit Agreement and the other First Lien Documents.

     SECTION 6. Waiver, Modification, Etc. No amendment or modification of any of the
provisions of this Agreement shall be effective unless the same shall be in writing and signed by
the First Lien Representative, the Second Lien Representative and, only if the rights or duties of
any Grantor are directly affected thereby, such Grantor.

     SECTION 7. Miscellaneous. Section and subsection headings appearing herein are
included solely for convenience of reference and are not intended to affect the interpretation of
any provision of this Agreement. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.

     SECTION 8. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

 

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

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as New First Lien

Representative

 	 
	 	By:  	/s/ Matthew T. O’Keefe
 	 
	 	 	Name:  	Matthew T. O’Keefe 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	

THE BANK OF NEW YORK MELLON, as Second
 Lien
Representative for and on behalf of the Second Lien

Secured Parties

 	 
	 	By:  	/s/ J. Christopher Howe
 	 
	 	 	Name:  	J. Christopher Howe 	 
	 	 	Title:  	Senior Associate 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	
EASTMAN KODAK COMPANY, for itself and on
 behalf of the other Grantors

 	 
	 	By:  	/s/ William G. Love
 	 
	 	 	Name:  	William G. Love 	 
	 	 	Title:  	Treasurer 	 

 

 

	 	 	 	 	 

Acknowledged and agreed as of the date first above written:

CITICORP USA, INC., as Initial First Lien Representative

	 	 	 	 	 
	 	By:  	/s/ Shane V. Azzara
 	 
	 	 	Name:  	Shane V. Azzara 	 
	 	 	Title:  	Director

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