Document:

exhibit102securityagreem

                                                                                                                                                   [Execution]                                                                        SECURITY AGREEMENT                                                                    dated as of September 17, 2018                                                                               among                                  EHEALTH, INC.                       EHEALTHINSURANCE SERVICES, INC.                             PLANPRESCRIBER, INC.                   WEALTH, HEALTH AND LIFE ADVISORS, LLC                                    as Grantors,           THE OTHER GRANTORS PARTY HERETO FROM TIME TO TIME,                                       and                            ROYAL BANK OF CANADA,                                 as Collateral Agent                                                       5346872.9                                                                       

 

                                                                                                               Table of Contents                                                                           Page   ARTICLE I Definitions ................................................................................................................. 1         Section 1.01   Credit Agreement ................................................................................. 2        Section 1.02   Other Defined Terms ........................................................................... 2   ARTICLE II Pledge of Securities .................................................................................................. 6         Section 2.01   Pledge ................................................................................................... 6        Section 2.02   Delivery of the Pledged Collateral ....................................................... 7        Section 2.03   Representations, Warranties and Covenants ........................................ 8        Section 2.04   Certification of Limited Liability Company and Limited                       Partnership Interests ............................................................................. 9        Section 2.05   Registration in Nominee Name; Denominations ............................... 10        Section 2.06   Voting Rights; Dividends and Interest ............................................... 10        Section 2.07   Collateral Agent Not a Partner or Limited Liability Company                       Member .............................................................................................. 12   ARTICLE III Security Interests in Personal Property ................................................................. 12         Section 3.01   Security Interest ................................................................................. 12        Section 3.02   Representations and Warranties ......................................................... 14        Section 3.03   Covenants ........................................................................................... 15        Section 3.04   Other Actions ..................................................................................... 17   ARTICLE IV [RESERVED] ....................................................................................................... 18   ARTICLE V Collections.............................................................................................................. 18         Section 5.01   Collections ......................................................................................... 18   ARTICLE VI Remedies ............................................................................................................... 18         Section 6.01   Remedies Upon Default ..................................................................... 18        Section 6.02   Application of Proceeds ..................................................................... 21   ARTICLE VII Indemnity, Subrogation and Subordination ......................................................... 21   ARTICLE VIII Miscellaneous ..................................................................................................... 22         Section 8.01   Notices ............................................................................................... 22        Section 8.02   Waivers; Amendment ........................................................................ 22        Section 8.03   Collateral Agent’s Fees and Expenses; Indemnification ................... 23                                         -i-  5346872.9  

 

                            TABLE OF CONTENTS                                    (continued)                                                                          Page          Section 8.04   Successors and Assigns...................................................................... 25        Section 8.05   Survival of Agreement ....................................................................... 25        Section 8.06   Counterparts; Effectiveness; Several Agreement .............................. 25        Section 8.07   Severability ........................................................................................ 26        Section 8.08   GOVERNING LAW, ETC. ............................................................... 26        Section 8.09   WAIVER OF RIGHT TO TRIAL BY JURY.................................... 27        Section 8.10   Headings ............................................................................................ 27        Section 8.11   Security Interest Absolute .................................................................. 27        Section 8.12   Termination or Release ...................................................................... 27        Section 8.13   Additional Grantors ........................................................................... 28        Section 8.14   Collateral Agent Appointed Attorney-in-Fact ................................... 28        Section 8.15   General Authority of the Collateral Agent......................................... 29        Section 8.16   Collateral Agent’s Duties ................................................................... 30        Section 8.17   Recourse; Limited Obligations .......................................................... 30        Section 8.18   Mortgages .......................................................................................... 30        Section 8.19   Conflicts ............................................................................................. 30        Section 8.20   Right of Setoff.................................................................................... 30                                             -ii-                                       5346872.9  

 

   SCHEDULES    Schedule I  —     Pledged Equity; Pledged Debt  Schedule II —     Commercial Tort Claims  Schedule III —    UCC Filing Offices    EXHIBITS    Exhibit I   —     Form of Security Agreement Supplement  Exhibit II  —     Form of Information Certificate                                         -iii-                                      5346872.9  

 

         This SECURITY AGREEMENT, dated as of September 17, 2018 (this “Agreement”),  among EHEALTH, INC., a Delaware corporation (“eHealth” or “Holdings”),  EHEALTHINSURANCE SERVICES, INC., a Delaware corporation (“eHealthInsurance”),  WEALTH, HEALTH AND LIFE ADVISORS, LLC, a Texas limited liability company  (“GoMedigap”  and together with eHealth, eHealthInsurance and any other Person that may  become a borrower party to the Credit Agreement referred to below, individually and  collectively, the “Borrower”), PLANPRESCRIBER, INC., a Delaware corporation  (“PlanPrescriber” and, together with any other Person that may become a guarantor party to the  Credit Agreement, collectively the “Guarantors” and individually a “Guarantor”), any other  Grantors from time to time party hereto and Royal Bank of Canada, as Collateral Agent for the  Secured Parties.         Reference is made to the Credit Agreement, dated as of the date hereof (as amended,  restated, amended and restated, supplemented and/or otherwise modified from time to time, the  “Credit Agreement”), among the Borrower, the Guarantors, the Lenders, Royal Bank of Canada,  as Issuer, Administrative Agent for the Lenders and Collateral Agent for the Secured Parties.         The Lenders have agreed to extend credit to the Borrower subject to the terms and  conditions set forth in the Credit Agreement, the Issuers have agreed to issue Letters of Credit  for the account of the Borrower or a Subsidiary on the terms and conditions set forth in the  Credit Agreement, the Hedge Banks have agreed to enter into and/or maintain one or more  Secured Hedge Agreements and the Cash Management Banks have agreed to enter into and/or  maintain agreements relating to Cash Management Services, on the terms and conditions set  forth in the Credit Agreement, in such Secured Hedge Agreements and in such agreements  relating to Cash Management Services, as applicable.  The obligations of the Lenders to extend  such agreements relating to credit, the obligations of the Issuers to issue Letters of Credit, the  obligations of the Hedge Banks to enter into and/or maintain such Secured Hedge Agreements  and the obligations of the Cash Management Banks to enter into and/or maintain such  agreements relating to Cash Management Services are, in each case, conditioned upon, among  other things, the execution and delivery of this Agreement by each Grantor (as defined below).   The Grantors are affiliates of one another, will derive substantial direct and indirect benefits  from (i) the extensions of credit to the Borrower pursuant to the Credit Agreement, (ii) the  issuance of Letters of Credit by the Issuers for the account of the Borrower or, in accordance  with the Credit Agreement, a Subsidiary, (iii) the entering into and/or maintaining by the Hedge  Banks of Secured Hedge Agreements with the Borrower and/or one or more of its Subsidiaries,  and (iv) the entering into and/or maintaining by the Cash Management Banks of agreements  relating to Cash Management Services with the Borrower and/or one or more of its Subsidiaries,  and are willing to execute and deliver this Agreement in order to induce the Lenders to extend  such credit, the Issuers to issue such Letters of Credit, the Hedge Banks to enter into and/or  maintain such Secured Hedge Agreements and the Cash Management Banks to enter into and/or  maintain such agreements relating to Cash Management Services.  Accordingly, the parties  hereto agree as follows:                                    ARTICLE I                                     Definitions    5346872.9  

 

         Section 1.01 Credit Agreement.               (a)   Capitalized terms used in this Agreement, including the preamble and  introductory paragraphs hereto, and not otherwise defined herein have the meanings specified in  the Credit Agreement.               (b)   Unless otherwise defined in this Agreement or in the Credit Agreement,  terms defined in Article 8 or 9 of the UCC (as defined below) are used in this Agreement as such  terms are defined in such Article 8 or 9.               (c)   The rules of construction specified in Article I of the Credit Agreement  also apply to this Agreement.         Section 1.02 Other Defined Terms.  As used in this Agreement, the following terms  have the meanings specified below:         “Accommodation Payment” has the meaning assigned to such term in Article VII.         “Account Debtor” means any Person who is or who may become obligated to any  Grantor under, with respect to or on account of an Account.          “Agreement” has the meaning assigned to such term in the introductory paragraph hereto.         “Allocable Amount” has the meaning assigned to such term in Article VII.         “Article 9 Collateral” has the meaning assigned to such term in Section 3.01(a).         “Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as  amended, modified, succeeded or replaced from time to time.         “Bankruptcy Event of Default” means any Event of Default under Section 10.1(f) of the  Credit Agreement.         “Blue Sky Laws” has the meaning assigned to such term in Section 6.01.         “Borrower” has the meaning assigned to such term in the introductory paragraph to this  Agreement.         “Collateral” means the Article 9 Collateral and the Pledged Collateral.         “Copyright License” means any written agreement, now or hereafter in effect, naming  any Grantor as licensor and granting any right to any third party under any Copyright now or  hereafter owned by such Grantor or that such Grantor otherwise has the right to license, or  naming any Grantor as licensee and granting any right to such Grantor under any Copyright now  or hereafter owned by any third party, and all rights of such Grantor under any such agreement.         “Copyrights” means all of the following now owned or hereafter acquired by or assigned  to any Grantor:  (a) all copyright rights in any work subject to the copyright laws of the  United States or any other country, whether as author, assignee, transferee or otherwise, whether                                         2  5346872.9  

 

   registered or unregistered and whether published or unpublished, (b) all registrations and  applications for registration of any such copyright in the United States or any other country,  including registrations, recordings, supplemental registrations and pending applications for  registration in the United States Copyright Office, and all:  (i) rights and privileges arising under  applicable Law with respect to such Grantor’s use of such copyrights, (ii) reissues, renewals, and  extensions thereof and amendments thereto, (iii) income, fees, royalties, damages, claims and  payments now or hereafter due and/or payable with respect thereto, including damages and  payments for past, present or future infringements thereof, (iv) rights corresponding thereto  throughout the world and (v) rights to sue for past, present or future infringements thereof.         “Credit Agreement” has the meaning assigned to such term in the preliminary statement  of this Agreement.         “Discharge of Secured Obligations” means the time at which all the Secured Obligations  (other than (i) contingent indemnification and reimbursement obligations as to which no claim  has been asserted by the Person entitled thereto, (ii) Obligations under Secured Hedge  Agreements as to which arrangements satisfactory to the applicable Hedge Bank shall have been  made, (iii) Cash Management Obligations as to which arrangements satisfactory to the applicable  Cash Management Bank shall have been made and (iv) Letter of Credit Obligations as to which  arrangement satisfactory to the Administrative Agent and the applicable issues have been made)  have been paid in full in cash, all Letters of Credit have expired or been terminated (other than  Letters of Credit for which other arrangements reasonably satisfactory to the Administrative  Agent and each applicable Issuer have been made) and all Commitments have been terminated.         “Domain Names” means all Internet domain names and associated URL addresses in or  to which any Grantor now or hereafter has any right, title or interest.         “Effective Date Grantor” has the meaning assigned to such term in Section 2.02 of this  Agreement.         “Equipment” shall mean (x) any “equipment” as such term is defined in Article 9 of the  UCC and in any event, shall include, but shall not be limited to, all machinery, equipment,  furnishings, appliances, furniture, fixtures, tools, and vehicles now or hereafter owned by any  Grantor in each case, regardless of whether characterized as equipment under the UCC and  (y) and any and all additions, substitutions and replacements of any of the foregoing and all  accessions thereto, wherever located, whether or not at any time of determination incorporated or  installed therein or attached thereto, and all replacements therefore, together with all  attachments, components, parts, equipment and accessories installed thereon or affixed thereto.         “Excluded Equity Interests” has the meaning assigned to such term in Section 2.01 of this  Agreement.          “Excluded Property” has the meaning assigned to such term in Section 3.01 of this  Agreement.         “General Intangibles” has the meaning provided in Article 9 of the UCC and shall in any  event include all choses in action and causes of action and all other intangible personal property  of every kind and nature (other than Accounts and Intellectual Property) now owned or hereafter                                         3  5346872.9  

 

   acquired by any Grantor, as the case may be, including corporate or other business records,  indemnification claims, contract rights (including rights under leases, whether entered into as  lessor or lessee, Swap Contracts and other agreements), rights to the payment of money, rights to  the payment of insurance claims, rights to the payment of proceeds, goodwill, registrations,  franchises, tax refund claims and any letter of credit, guarantee, claim, security interest or other  security held by or granted to any Grantor.         “Grantor” means the Borrower and each Guarantor.         “Holdings” has the meaning assigned to such term in the preliminary statement hereto.         “Information Certificate” means a certificate substantially in the form of Exhibit II,  completed and supplemented with the schedules and attachments contemplated thereby, and duly  executed by a Responsible Officer of the Grantors.         “Intellectual Property” means all intellectual property of every kind and nature now  owned, licensed or hereafter acquired by any Grantor, including Patents, Copyrights, Licenses,  Trademarks and Domain Names.         “License” means any Patent License, Trademark License, Copyright License or other  license or sublicense agreement granting rights under Intellectual Property to which any Grantor  is a party.         “Patent License” means any written agreement, now or hereafter in effect, naming any  Grantor as licensor and granting to any third party any right to develop, commercialize, import,  make, have made, offer for sale, use or sell any invention on which a Patent, now or hereafter  owned by such Grantor, or that such Grantor otherwise has the right to license, is in existence, or  naming any Grantor as licensee and granting to such Grantor any such right with respect to any  invention on which a Patent, now or hereafter owned by any third party, is in existence, and all  rights of such Grantor under any such agreement.         “Patents” means all of the following now owned or hereafter acquired by any Grantor:   (a) all letters patent of the United States or the equivalent thereof in any other country, all  registrations and recordings thereof, and all applications for letters patent of the United States or  the equivalent thereof in any other country, including registrations, recordings and pending  applications in the United States Patent and Trademark Office or any similar offices in any other  country, and (b) all (i) rights and privileges arising under applicable Law with respect to such  Grantor’s use of any patents, (ii) inventions and improvements described and claimed therein,  (iii) reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof and  amendments thereto, (iv) income, fees, royalties, damages, claims and payments now or  hereafter due and/or payable with respect to any of the foregoing including damages and  payments for past, present or future infringements thereof, (v) rights corresponding thereto  throughout the world and (vi) rights to sue for past, present or future infringements thereof.         “Pledged Collateral” has the meaning assigned to such term in Section 2.01.          “Pledged Debt” has the meaning assigned to such term in Section 2.01.                                          4  5346872.9  

 

         “Pledged Equity” has the meaning assigned to such term in Section 2.01.         “Pledged Securities” means any promissory notes, stock certificates, unit certificates,  limited or unlimited liability membership certificates or other Securities or instruments now or  hereafter included in the Pledged Collateral, including all Pledged Equity, Pledged Debt and all  other certificates, instruments or other documents representing or evidencing any Pledged  Collateral.         “Securities Act” has the meaning assigned to such term in Section 6.01.         “Security” means a “security” as such term is defined in Article 8 of the UCC and, in any  event, shall include any stock, shares, partnership interests, voting trust certificates, certificates  of interest or participation in any profit sharing agreement or arrangement, options, warrants,  bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible,  subordinated or otherwise, or in general any instruments commonly known as “securities” or any  certificates of interest, shares or participations in temporary or interim certificates for the  purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.         “Security Agreement Supplement” means an instrument substantially in the form of  Exhibit I hereto.          “Security Interest” has the meaning assigned to such term in Section 3.01(a).         “Trademark License” means any written agreement, now or hereafter in effect, granting  to any third party any right to use any Trademark now or hereafter owned by any Grantor or that  any Grantor otherwise has the right to license to a third party, or granting to any Grantor any  right to use any Trademark now or hereafter owned by any third party.         “Trademarks” means all of the following now owned or hereafter acquired by any  Grantor:  (a) all trademarks, service marks, trade names, corporate names, company names,  business names, fictitious business names, trade styles, trade dress, logos, other source or  business identifiers, designs and general intangibles of like nature, the goodwill of the business  symbolized thereby or associated therewith, all registrations and recordings thereof, and all  registration and recording applications filed in connection therewith, including registrations and  registration applications in the United States Patent and Trademark Office or any similar offices  in any State of the United States or any other country or any political subdivision thereof, and all  extensions or renewals thereof, (b) all rights and privileges arising under applicable Law with  respect to such Grantor’s use of any trademarks, (c) all extensions and renewals thereof and  amendments thereto, (d) all income, fees, royalties, damages and payments now and hereafter  due and/or payable with respect to any of the foregoing, including damages, claims and  payments for past, present or future infringements thereof, (e) all rights corresponding thereto  throughout the world and (f) all rights to sue for past, present and future infringements or  dilutions thereof or other injuries thereto.         “UFCA” has the meaning assigned to such term in Article VII.         “UFTA” has the meaning assigned to such term in Article VII.                                         5  5346872.9  

 

                                      ARTICLE II                                  Pledge of Securities          Section 2.01 Pledge.  As security for the payment or performance, as the case may be,   in full of the Secured Obligations, each Grantor hereby collaterally assigns and pledges to the   Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, and   hereby grants to the Collateral Agent, its successors and assigns, for the benefit of the Secured   Parties, a security interest in all of such Grantor’s right, title and interest in, to and under   (a) (i) all Equity Interests of each Subsidiary held by such Grantor on the date hereof (including   those Equity Interests listed on Schedule I) and (ii) any other Equity Interests of a Subsidiary   acquired in the future by such Grantor and, in each case, the certificates, if any, representing all   such Equity Interests (the foregoing clauses (i) and (ii) collectively, the “Pledged Equity”), in   each case including 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 Pledged Equity and all warrants, rights or options issued thereon or   with respect thereto; provided that the Pledged Equity shall not include (A) more than 65% of the   issued and outstanding voting Equity Interests and 100% of the issued and outstanding non-  voting Equity Interests of (x) each Foreign Subsidiary that is directly owned by the Borrower or   by any Guarantor and (y) each Domestic Subsidiary that is directly owned by the Borrower or by   any Guarantor and that is a disregarded entity for United States Federal income tax purposes   substantially all of the assets of which consist of Equity Interests in, or Indebtedness owing by,   one or more Foreign Subsidiaries, (B) any Equity Interest of any Person (other than a Wholly- Owned Subsidiary that is directly owned by the Borrower or any Guarantor), to the extent  restricted or not permitted by the terms of such Person’s organizational documents or other  agreements with holders of such Equity Interests (so long as such prohibition did not arise as part  of the acquisition or formation of such Person and other than to the extent that any such  prohibition would be rendered ineffective pursuant to the UCC or any other applicable Law), and   (C) any Equity Interest of any Immaterial Domestic Subsidiary for long as such Subsidiary   continues to be an Immaterial Domestic Subsidiary; provided that such Equity Interest shall   cease to be an Excluded Equity Interest at such time as such prohibition ceases to be in effect   (any Equity Interests excluded pursuant to clauses (A) through (C) above, the “Excluded Equity   Interests”); (b)(i) the promissory notes and any instruments evidencing indebtedness owned by it   (including those listed opposite the name of such Grantor on Schedule I) and (ii) any promissory   notes and instruments evidencing indebtedness obtained in the future by such Grantor (the   foregoing clauses (i) and (ii) collectively, the “Pledged Debt”), in each case including 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 Pledged Debt (except to the extent   otherwise excluded from the Collateral pursuant to this Agreement); (c) all other property that   may be delivered to and held by the Collateral Agent pursuant to the terms of this Section 2.01   (except to the extent otherwise excluded from the Collateral pursuant to this Agreement);   (d) subject to Section 2.06, all payments of principal or interest, dividends, cash, instruments and   other property from time to time received, receivable or otherwise distributed in respect of, and   all Proceeds and securities entitlements received in respect of, the securities or other property   referred to in clauses (a), (b), and (c) above; and (e) subject to Section 2.06, all rights and   privileges of such Grantor with respect to the securities and other property referred to in clauses                                          6   5346872.9  

 

     (a) and (b) above (the items referred to in clauses (a) through (e) above being collectively   referred to as the “Pledged Collateral”).          TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest,   powers, privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its   successors and assigns, for the benefit of the Secured Parties; subject, however, to the terms,   covenants and conditions hereinafter set forth.          Section 2.02 Delivery of the Pledged Collateral.                (a)   Subject to Section 2.02(d), on the Effective Date (in the case of any   Grantor that grants a Lien on any of its assets hereunder on the Effective Date (each, an  “Effective Date Grantor”)) or on the date on which it signs and delivers its first Security   Agreement Supplement (in the case of any other Grantor), each Grantor shall deliver or cause to   be delivered to the Collateral Agent, for the benefit of the applicable Secured Parties, any and all   Pledged Securities; provided that promissory notes and instruments evidencing Indebtedness   shall only be so required to be delivered to the extent required pursuant to paragraph (b) of this   Section 2.02.  Thereafter, whenever such Grantor acquires any other Pledged Security, such   Grantor shall promptly deliver or cause to be delivered to the Collateral Agent such Pledged   Security as Collateral; provided that, if Section 8.10 of the Credit Agreement is applicable to   such Grantor, such Grantor shall deliver or cause to be delivered to the Collateral Agent such   Pledged Security as Collateral to the extent and within the time frames required under Section   8.10 of the Credit Agreement; provided further that, notwithstanding the foregoing, promissory   notes and instruments evidencing Indebtedness shall only be so required to be delivered to the   extent required pursuant to paragraph (b) of this Section 2.02.                (b)   If any amount that equal or exceeds $2,000,000 is owing to a Grantor and   is evidenced  by a promissory note or other instrument, such original promissory note or other   instrument shall be promptly delivered to the Collateral Agent, together with a related allonge or   note power executed in blank.                (c)   Upon delivery to the Collateral Agent, (i) any certificate or promissory   note representing Pledged Collateral shall be accompanied by undated stock or note powers, as   applicable, duly executed in blank or other undated instruments of transfer duly-executed in  blank reasonably satisfactory to the Collateral Agent and by such other instruments and  documents as the Collateral Agent may reasonably request in connection with the preservation of  its security interest therein and (ii) all other property comprising part of the Pledged Collateral  shall be accompanied by such instruments and documents as the Collateral Agent may  reasonably request.  At the time of delivery of financial statements as required by Section 7.1(a)  or 7.1(b) of the Credit Agreement, the Grantors  shall deliver a schedule describing the additional  Pledged Securities pledged hereunder since the date of the last schedule delivered in accordance  herewith, which schedule shall be deemed to supplement Schedule I and be made a part hereof;   provided that failure to provide any such schedule hereto shall not affect the validity of such   pledge of such Pledged Securities.  Each schedule so delivered shall supplement any prior   schedules so delivered.                                           7   5346872.9  

 

                 (d)   The collateral assignment, pledge and security interest granted in   Section 2.01  are granted as security only and shall not subject the Collateral Agent or any other   Secured Party to, or in any way alter or modify, any obligation or liability of any Grantor with   respect to or arising out of the Pledged Collateral.          Section 2.03 Representations, Warranties and Covenants.  Each Grantor represents,   warrants and covenants, as to itself, to and with the Collateral Agent, for the benefit of the   Secured Parties, that:                (a)   Schedule I sets forth, as of the Effective Date and as of each date on which   a supplement to Schedule I is delivered pursuant to Section 2.02(c), a true and correct list of   (i) all the issued and outstanding units of each class of the Equity Interests that constitutes   Pledged Equity directly owned beneficially, or of record, by such Grantor specifying the issuer   and certificate number (if any) of, and the number and percentage of ownership represented by,   such Pledged Equity and (ii) all the Pledged Debt owned by such Grantor (other than checks to   be deposited in the ordinary course of business), including all promissory notes and instruments   required to be pledged hereunder;                (b)   As of the Effective Date, the Pledged Equity issued by such Grantor or   any of its respective Subsidiaries and the Pledged Debt issued by such Grantor or any of its   respective Subsidiaries, in each case as set forth on Schedule I on the Effective Date, have been   duly and validly authorized and issued by such Grantor or such Subsidiary, as the case may be,   and (i) as of the Effective Date, in the case of Pledged Equity (other than Pledged Equity   consisting of limited liability company interests or partnership interests or other Equity Interests   of entities other than corporations which, pursuant to the relevant organizational or formation   documents, cannot be fully paid and non-assessable), are fully paid and nonassessable and (ii) as   of the Effective Date, in the case of such Pledged Debt issued by such Grantor or any of its   respective Subsidiaries, are legal, valid and binding obligations of such Grantor or such   Subsidiary, as the case may be, subject to applicable Debtor Relief Laws and general principles   of equity;                (c)   Such Grantor (i) holds the Pledged Securities indicated on Schedule I (as   supplemented from time to time as and to the extent required pursuant to Section 2.02(c) hereof)   as owned by such Grantor free and clear of all Liens, other than (A) Liens created by the   Collateral Documents and (B) other Liens permitted pursuant to Section 9.1 of the Credit   Agreement, (ii) except as permitted under the Credit Agreement, will make no assignment,   pledge, hypothecation or transfer of, or create or permit to exist any security interest in or other   Lien on, the Pledged Collateral, and (iii) will defend its title or interest thereto or therein against   any and all Liens (other than the Liens permitted pursuant to this Section 2.03(c)), however   arising, of all Persons whomsoever (other than the holder of a Lien permitted pursuant to Section   9.1 of the Credit Agreement);                (d)   except for (i) restrictions and limitations imposed by the Loan Documents,  securities laws generally or by Liens permitted pursuant to Section 9.1 of the Credit Agreement  and (ii) in the case of Pledged Equity of Persons that are not Subsidiaries (other than Excluded  Subsidiaries), transfer restrictions that exist at the time of acquisition of Equity Interests in such  Persons, the Pledged Equity is and will continue to be freely transferable and assignable, and                                          8   5346872.9  

 

     none of the Pledged Equity is or will be subject to any option, right of first refusal, shareholders   agreement, charter or by-law or other organizational document provisions or contractual   restriction of any nature (other than Liens permitted under Section 9.1 of the Credit Agreement)   that would prohibit, impair, delay or otherwise affect, in each case, in any manner material and   adverse to the Secured Parties the pledge of such Pledged Equity hereunder, the sale or   disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights and remedies   hereunder;                (e)   such Grantor has the corporate (or equivalent) power and authority to   pledge the Pledged Collateral pledged by it hereunder in the manner done pursuant to Section   2.01 or required hereby;                (f)   no consent or approval of any Governmental Authority is necessary for the   validity and perfection of the pledge of such Grantor in the Pledged Collateral effected pursuant   to Section 2.01 (other than such as have been obtained and are in full force and effect);                (g)   by virtue of the execution and delivery by such Grantor of this Agreement,   when any Pledged Securities of such Grantor constituting “certificated securities” (within the   meaning of Section 8-102(a)(4) of the New York UCC) are delivered to the Collateral Agent in   accordance with this Agreement together with undated powers or instruments of transfer duly   endorsed in blank by an effective endorsement, in each case in the State of New York, the   Collateral Agent will (i) for so long as such Pledged Securities and undated power or instruments   of transfer are held by the Collateral Agent in the State of  New York, obtain a legal, valid and  first-priority (subject, as to priority, only to any Liens permitted pursuant to Section 9.1 of the  Credit Agreement) perfected lien upon and security interest in such Pledged Securities as  security for the payment and performance of the Secured Obligations, (ii) have Control pursuant  to Section 8-106(a) or (b), as applicable, under the New York UCC of such Pledged Securities to  the extent constituting certificated securities in registered or bearer form, and (iii) assuming that  neither the Collateral Agent nor any of the Secured Parties have “notice of an adverse claim” (as  defined in Section 8-105 of the UCC) with respect to such Pledged Securities at the time such  Pledged Securities are delivered to the Collateral Agent, be a protected purchaser (within the  meaning of Section 8-303 of the UCC) thereof; and               (h)   subject to the terms of this Agreement and to the extent permitted by  applicable Law, such Grantor hereby agrees that upon the occurrence and during the continuation  of an Event of Default, it will comply with instructions of the Collateral Agent with respect to  the Equity Interests in such Grantor that constitute Pledged Equity hereunder that are not  certificated without further consent by the applicable owner or holder of such Pledged Equity.          Section 2.04 Certification of Limited Liability Company and Limited Partnership   Interests.  Each Grantor acknowledges and agrees that, to the extent any interest in any   corporation, limited liability company or limited partnership controlled by any Grantor and   pledged under Section 2.01 is a “security” within the meaning of Article 8 of the UCC and is   governed by Article 8 of the UCC, such interest shall be represented by a certificate.  Each  Grantor further acknowledges and agrees that with respect to any interest in any limited liability  company or limited partnership controlled on or after the date hereof by such Grantor and  pledged hereunder that is not a “security” within the meaning of Article 8 of the UCC, such                                          9   5346872.9  

 

   Grantor shall at no time elect to treat any such interest as a “security” within the meaning of  Article 8 of the UCC, nor shall such interest be represented by a certificate, unless such election  and such interest is thereafter represented by a certificate that is promptly delivered to the  Collateral Agent (together with related undated powers or instruments of transfer duly endorsed  in blank by an effective endorsement), pursuant to the terms hereof.         Section 2.05 Registration in Nominee Name; Denominations.  If an Event of Default  shall have occurred and be continuing, (a) the Collateral Agent, on behalf of the Secured Parties,  shall have the right (in its sole and absolute discretion) to cause each of the Pledged Securities to  be transferred of record into the name of the Collateral Agent and (b) the Collateral Agent shall  have the right to exchange the certificates representing Pledged Securities for certificates of  smaller or larger denominations for any purpose consistent with this Agreement.  Each Grantor  will promptly give to the Collateral Agent copies of any notices material to the interests of the  Lenders received by it with respect to Pledged Securities registered in the name of such Grantor.   Each Grantor will take any and all actions reasonably requested by the Collateral Agent to  facilitate compliance with this Section 2.05.         Section 2.06 Voting Rights; Dividends and Interest.  (a)  Unless and until an Event of  Default shall have occurred and be continuing and the Collateral Agent shall have notified the  Borrower that the rights of such Grantor under this Section 2.06 are being suspended:                     (i)   Each Grantor shall be entitled to exercise any and all voting and/or  other consensual rights and powers inuring to an owner of Pledged Securities or any part thereof  for any purpose consistent with or not expressly prohibited by the terms of this Agreement, the  Credit Agreement and the other Loan Documents; provided that such rights and powers shall not  be exercised in any manner that could reasonably be expected to materially and adversely affect  the rights and remedies of any of the Collateral Agent or the other Secured Parties under this  Agreement, the Credit Agreement or any other Loan Document to which any Grantor is a party  or the ability of the Secured Parties to exercise the same.                     (ii)  The Collateral Agent shall promptly execute and deliver to each  Grantor, or cause to be executed and delivered to each Grantor, all such proxies, powers of  attorney and other instruments as any Grantor may reasonably request in writing for the purpose  of enabling such Grantor to exercise the voting and/or consensual rights and powers it is entitled  to exercise pursuant to subparagraph (i) above, in each case as shall be specified in such request  and be in form and substance reasonably satisfactory to the Collateral Agent.                     (iii) Each Grantor shall be entitled to receive and retain any and all  dividends, interest, principal and other distributions paid on or distributed in respect of the  Pledged Securities, to the extent (and only to the extent) that such dividends, interest, principal  and other distributions are not expressly prohibited by, the terms and conditions of the Credit  Agreement, the other Loan Documents and applicable Laws; provided that any noncash  dividends, interest, principal or other distributions that would constitute Pledged Equity or  Pledged Debt, whether resulting from a subdivision, combination or reclassification of the  outstanding Equity Interests of the issuer of any Pledged Securities or received in exchange for  Pledged Securities or any part thereof, or in redemption thereof, or as a result of any merger,  consolidation, acquisition or other exchange of assets to which such issuer may be a party or                                         10  5346872.9  

 

   otherwise, shall be and become part of the Pledged Collateral, and, if received by any Grantor,  shall not be commingled by such Grantor with any of its other funds or property but shall be held  separate and apart therefrom, shall be held in trust for the benefit of the Collateral Agent and the  other Secured Parties and shall be forthwith delivered to the Collateral Agent in the same form as  so received (with any necessary endorsement reasonably requested by the Collateral Agent).               (b)   Upon the occurrence and during the continuance of any Event of Default,  after the Collateral Agent shall have notified the Borrower of the suspension of the rights of any  Grantor under Section 2.06(a), then all rights of such Grantor to dividends, interest, principal or  other distributions that such Grantor is authorized to receive pursuant to Section 2.06(a)(iii) shall  cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall  have the sole and exclusive right and authority to receive and retain such dividends, interest,  principal or other distributions.  All dividends, interest, principal or other distributions received  by any Grantor contrary to the provisions of this Section 2.06 shall be held in trust for the benefit  of the Collateral Agent and the other Secured Parties, shall be segregated from other property or  funds of such Grantor and shall be forthwith delivered to the Collateral Agent upon demand in  the same form as so received (with any necessary stock or note powers or other instruments of  transfer reasonably requested by the Collateral Agent).               (c)   Upon the occurrence and during the continuance of an Event of Default,  after the Collateral Agent shall have notified the Borrower of the suspension of the rights of any  Grantor under Section 2.06(a), then all rights of such Grantor to exercise the voting and  consensual rights and powers it is entitled to exercise pursuant to Section 2.06(a)(i), and the  obligations of the Collateral Agent under Section 2.06(a)(ii), shall cease, and all such rights shall  thereupon become vested in the Collateral Agent, which shall have the sole and exclusive right  and authority to exercise such voting and consensual rights and powers; provided that, unless  otherwise directed by the Requisite Lenders, the Collateral Agent shall have the right from time  to time following the occurrence and during the continuance of an Event of Default to permit the  Grantors to exercise such rights.  After all Events of Default have been cured or waived in  accordance with the Credit Agreement and the Borrower shall have delivered to the Collateral  Agent a certificate to such effect (solely with respect to any Events of Default that have been  cured and then only to the extent that the cure of any such Event of Default is not conditioned on  the approval or satisfaction of the Collateral Agent or any other Person, as to which the parties  acknowledge the Borrower is not in a position to make such certification), each Grantor shall  have the exclusive right to exercise the voting and/or consensual rights and powers that such  Grantor would otherwise be entitled to exercise pursuant to the terms of Section 2.06(a)(i), and  the obligations of the Collateral Agent under Section 2.06(a)(ii) shall automatically be reinstated.               (d)   Any notice given by the Collateral Agent to the Borrower suspending the  rights of any Grantor under this Section 2.06, (i) shall be given in writing, (ii) may be given with  respect to one or more of the Grantors at the same or different times and (iii) may suspend the  rights of the Grantors under Sections 2.06(a)(i) or (iii) in part without suspending all such rights  (as specified by the Collateral Agent in writing in its sole and absolute discretion) and without  waiving or otherwise affecting the Collateral Agent’s rights to give additional notices from time  to time suspending other rights so long as an Event of Default has occurred and is continuing.   Notwithstanding anything to the contrary contained in Section 2.06(a), (b) or (c), if a Bankruptcy  Event of Default shall have occurred and be continuing, the Collateral Agent shall not be                                         11  5346872.9  

 

     required to give any notice referred to in said Sections in order to exercise any of its rights   described in such Sections, and the suspension of the rights of each of the Grantors under each   such Section shall be automatic upon the occurrence and during the continuance of such  Bankruptcy Event of Default.          Section 2.07 Collateral Agent Not a Partner or Limited Liability Company Member.    Nothing contained in this Agreement shall be construed to make the Collateral Agent or any   other Secured Party liable as a member of any limited liability company or as a partner of any   partnership and neither the Collateral Agent nor any other Secured Party by virtue of this   Agreement or otherwise shall have any of the duties, obligations or liabilities of a member of any   limited liability company or as a partner in any partnership.  The parties hereto expressly agree   that this Agreement shall not be construed as creating a partnership or joint venture among the   Collateral Agent, any other Secured Party, any Grantor and/or any other Person.                                     ARTICLE III                          Security Interests in Personal Property          Section 3.01 Security Interest.                (a)   As security for the payment or performance, as the case may be, in full of   the Secured Obligations, each Grantor hereby grants to the Collateral Agent, its successors and   permitted assigns, for the benefit of the Secured Parties, a security interest (the “Security   Interest”) in, all of such Grantor’s right, title and interest in, to or under any and all of the   following assets and properties, whether now owned or at any time hereafter acquired by such   Grantor or in which such Grantor now has or at any time in the future may acquire any right, title   or interest (collectively, the “Article 9 Collateral”):                      (i)   all Accounts;                      (ii)  all chattel paper;                      (iii) all Documents, and all credit card sales drafts, credit card sales   drafts, credit card sales slips, charge slips and receipts, and other forms of store receipts;                      (iv)  all Equipment;                      (v)   all General Intangibles;                      (vi)  all instruments;                     (vii)  all Inventory;                     (viii) all investment property (including certificated and uncertificated  securities, security entitlements, securities accounts, commodity accounts and commodity  contracts);                     (ix)  all books and records pertaining to the Article 9 Collateral;                                          12   5346872.9  

 

                       (x)   all goods and fixtures;                     (xi)  all money, cash, and Cash Equivalents                     (xii)  all letter-of-credit rights;                      (xiii) all commercial tort claims, including those described on Schedule   II from time to time;                      (xiv) all Deposit Accounts, and all cash, money, Securities and other   investments deposited therein;                      (xv)  all supporting obligations;                      (xvi) all payment intangibles; and                      (xvii) to the extent not otherwise included in clauses (i) through (xvi) of   this Section 3.01(a), all Proceeds and products of any and all of the foregoing and all collateral   security and guarantees given by any Person with respect to any of the foregoing;    provided that “Collateral” and “Article 9 Collateral” shall not include any of the following assets   or property, each being an “Excluded Property”:  (i) any Intellectual Property; (ii) the Excluded   Equity Interests; (iii) any rights or interests in any contract, lease, permit, license, charter or   license agreement, as such, if under the terms of such contract, lease, permit, license, charter or   license agreement, or applicable law with respect thereto, the valid grant of a security interest or   lien therein to the Collateral Agent is prohibited (or gives rise to a termination right for the other   party thereto) and such prohibition (or termination right) has not been or is not waived or the   consent of the other party to such contract, lease, permit, license, charter or license agreement   has not been or is not otherwise obtained or under applicable law such prohibition cannot be   waived; provided, that, the foregoing exclusion shall in no way be construed (A) to apply if any   such prohibition is deemed ineffective under Sections 9-406, 9-407 or 9-408 of the UCC or other  applicable law or (B) so as to limit, impair or otherwise affect the Collateral Agent’s  unconditional continuing security interests in and liens upon any rights or interests of a Grantor  in or to monies due or to become due under any such contract, lease, permit, license, charter or  license agreement; (iv) any deposit accounts specifically and exclusively used (A) for payroll,  payroll taxes, workers’ compensation or unemployment compensation, pension benefits and  other similar expenses to or for the benefit of any Grantor’s employees and accrued and unpaid  employee compensation (including salaries, wages, benefits and expense reimbursements), (B)  for all taxes required to be collected or withheld (including, without limitation, sales taxes) for  which any Grantor may become liable and (C) deposit accounts (including the Excluded  GoMedicap Account but excluding any Material Bank Account) with an aggregate value, or  having funds credited thereto with an aggregate value, of less than $2,000,000 as of the close of  business of each Business Day; (v) motor vehicles and other assets subject to certificates of title;  and (vi) any commercial tort claim with a value not in excess of $2,000,000.  Proceeds of  Excluded Property shall constitute Collateral.                (b)   Each Grantor hereby irrevocably authorizes the Collateral Agent for the   benefit of the Secured Parties at any time and from time to time to file in any relevant                                          13   5346872.9  

 

   jurisdiction any financing statements or continuation statements (including fixture filings) with  respect to the Article 9 Collateral or any part thereof and amendments thereto that (i) describe the  collateral covered thereby in any manner that the Administrative Agent or the Collateral Agent  reasonably determines is necessary or advisable to ensure the perfection of the security interest in  the Article 9 Collateral granted under this Agreement including indicating the Collateral as all  assets or all personal property of such Grantor or words of similar effect, recognizing that the  liens granted herein on the assets of the Grantors exclude the Excluded Property, and (ii) contain  the information required by Article 9 of the UCC of each applicable jurisdiction for the filing of  any financing statement or amendment, including (A) whether such Grantor is an organization,  the type of organization and any organizational identification number issued to such Grantor and  (B) in the case of a financing statement filed as a fixture filing, a sufficient description of the real  property to which such Article 9 Collateral relates.  Each Grantor agrees to provide such  information to the Collateral Agent promptly upon receipt by such Grantor of written request  therefor from the Collateral Agent.                (c)   The Security Interest is granted as security only and shall not subject the  Collateral Agent or any other Secured Party to, or in any way alter or modify, any obligation or  liability of any Grantor with respect to or arising out of the Article 9 Collateral.         Section 3.02 Representations and Warranties.  Each Grantor represents and warrants, as  to itself, to the Collateral Agent for the benefit of the Secured Parties that:               (a)   Such Grantor has valid rights (not subject to any Liens other than Liens  permitted by Section 9.1 of the Credit Agreement) and/or good or marketable title in the Article  9 Collateral with respect to which it has purported to grant a Security Interest hereunder, and has  all necessary corporate (or equivalent) power and authority to grant to the Collateral Agent the  Security Interest in such Article 9 Collateral pursuant hereto and to execute, deliver and perform  its obligations in accordance with the terms of this Agreement, without the consent or approval  of any other Person other than (i) any consent or approval that has been obtained, (ii) perfection  actions with respect to Article 9 Collateral and the Pledged Collateral and (iii) as may be  required under applicable Law in connection with a Disposition of Article 9 Collateral or  Pledged Collateral, including Laws affecting the offering and sale of securities generally.               (b)   The Information Certificate delivered by Holdings to the Collateral Agent  on or prior to the Effective Date has been duly executed and delivered by Holdings and the  information set forth therein, including the exact legal name of each Grantor and its jurisdiction  of organization is correct and complete in all material respects as of the Effective Date.  The  UCC financing statements prepared by the Collateral Agent based upon the information provided  to the Collateral Agent in the Information Certificate for filing in each governmental, municipal  or other office specified in Schedule III of this Agreement (or specified by notice from the  applicable Grantor to the Collateral Agent after the Effective Date in the case of filings,  recordings or registrations required by Section 8.10 of the Credit Agreement and the Collateral  and Guarantee Requirement), are all the filings, recordings and registrations necessary to  establish a legal, valid and perfected security interest under the UCC in favor of the Collateral  Agent in respect of all Article 9 Collateral in the United States in which the Security Interest may  be perfected by such filings, recordings or registrations.  Based on the UCC as in effect on the  Effective Date, no further or subsequent filing, refiling, recording, rerecording, registration or                                         14  5346872.9  

 

     reregistration with respect to Article 9 Collateral in the United States and of the types described   in the preceding sentence is necessary in any such jurisdiction, except as provided under   applicable US Law with respect to the filing of continuation statements or, in the case of   commercial tort claims, the filing of financing statements.                (c)   The Security Interest constitutes (i) a legal and valid security interest in all   the Article 9 Collateral (other than commercial tort claims with respect to which a UCC   financing statement in appropriate form for filing and in sufficient detail has not been filed in the   appropriate filing office) securing the payment and performance of the Secured Obligations (with   respect to the Collateral consisting of Equity Interests of Foreign Subsidiaries, to the extent the   enforceability of such Security Interest is governed by the UCC and does not require the taking   of any perfection steps, including the filing of financing statements (or the equivalent thereof), in   any jurisdiction outside of the United States), subject to the effects of Debtor Relief Laws and   general equitable principles, and (ii) subject to the filings described in Section 3.02(b), a   perfected security interest in all Article 9 Collateral in which a security interest may be perfected   by filing a financing statement in the United States (or any political subdivision thereof) pursuant   to the UCC.  Assuming that the Collateral Agent maintains perfection by control with respect to   Collateral in which a Lien can only be perfected by control under the UCC, the Security Interest   is and shall be prior to any other Lien on any of the Article 9 Collateral, other than any Lien that  is permitted pursuant to Section 9.1 of the Credit Agreement and has priority as a matter of Law.                (d)   None of the Grantors has filed or consented to the filing, in each case, to   the extent constituting Liens, of (i) any financing statement or analogous document under the   UCC or any other applicable Laws covering any Article 9 Collateral, or (ii) any assignment in   which any Grantor assigns any Article 9 Collateral or any security agreement or similar   instrument covering any Article 9 Collateral with any foreign governmental, municipal or other   office, in the case of each of clauses (i) and (ii) above, which financing statement or analogous   document, assignment, security agreement or similar instrument is still in effect, except, in each   case, for Liens expressly permitted pursuant to Section 9.1 of the Credit Agreement (or   documentation, instruments, filings, registrations or recordations governing or evidencing any   such Lien);                 (e)   All commercial tort claims of each Grantor where the amount of the   damages claimed in respect of any such commercial tort claim by such Grantor is in excess of   $2,000,000 in existence on the date of this Agreement (or on the date upon which such Grantor   becomes a party to this Agreement) are described on Schedule II hereto.          Section 3.03 Covenants.                (a)   The Borrower agrees to promptly (and in any event within ten (10)   Business Days of such event, or such later date as the Collateral Agent may agree in its   reasonable discretion) notify the Collateral Agent of any change (i) in the legal name of any   Grantor, (ii) in the identity or type of organization or corporate structure of any Grantor, (iii) in   the jurisdiction of organization of any Grantor, (iv) in the location of any Grantor under the UCC   or (v) in the organizational identification number of any Grantor.  In addition, if any Grantor   does not have an organizational identification number on the Effective Date (or the date such   Grantor becomes a party to this Agreement) and later obtains one, the Borrower shall promptly                                          15   5346872.9  

 

   thereafter notify the Collateral Agent of such organizational identification number and shall take  all actions reasonably satisfactory to the Collateral Agent to the extent necessary to maintain the  security interests (and the priority thereof) of the Collateral Agent in the Collateral intended to be  granted hereby fully perfected and in full force and effect (it being acknowledged that no such  actions shall be required to be taken in any jurisdiction in which such organization identification  number is not required, under the applicable UCC, to be set forth on a financing statement).  The  Loan Parties agree not to effect or permit any change referred to in the preceding sentence unless  all filings, publications and registrations (other than those not required to be made under Section  3.02(c)(i)), have been made (or will be made in a timely fashion) under the UCC or other  applicable US Law that are required in order for the Collateral Agent to continue at all times  following such change to have a valid, legal and perfected first priority security interest to the  extent required under the Loan Documents, including Section 3.02(c)(i) hereof (subject, as to  priority, only to any Lien that is permitted pursuant to Section 9.1 of the Credit Agreement and  has priority as a matter of Law) in all the Collateral for its own benefit and the benefit of the  other Secured Parties.               (b)   Each Grantor shall, at its own expense, take any and all commercially  reasonable actions necessary to defend title to the Article 9 Collateral against all Persons, except  with respect to Article 9 Collateral (other than any Article 9 Collateral included in the Borrowing  Base) that such Grantor determines in its reasonable business judgment is no longer useful or  beneficial to the conduct of the business, and to defend the Security Interest of the Collateral  Agent in the Article 9 Collateral and the priority thereof against any Lien not permitted pursuant  to Section 9.1 of the Credit Agreement.               (c)   At the time of delivery of financial statements pursuant to Sections 7.1(a)  and (b) of the Credit Agreement and delivery of the related Compliance Certificate, the Borrower  shall deliver to the Collateral Agent a certificate executed by a Responsible Officer of the  Borrower setting forth a listing of (i) any new Material Real Property owned by any Loan Party  that has been acquired since the last such certificate (or since the Effective Date, in the case of  the first such certificate delivered after the Effective Date), and (ii) any Subsidiary becoming a  Wholly-Owned Subsidiary that is a Material Domestic Subsidiary since the date of the most  recent list delivered pursuant to this Section 3.03(c), or confirming that there has been no change  in such information since the date of such certificate or the date of the most recent certificate  delivered pursuant to this Section 3.03(c).               (d)   Each Grantor agrees, at its own expense, to execute, acknowledge, deliver  and cause to be duly filed all such further instruments and documents and take all such actions as  the Collateral Agent may from time to time reasonably request to better assure, preserve, protect  and perfect the Security Interest and the rights and remedies created hereby, including the  payment of any fees and Taxes required in connection with the execution and delivery of this  Agreement, the granting of the Security Interest and the filing of any financing statements or  other documents in connection herewith or therewith.  If any amount payable under or in  connection with any of the Article 9 Collateral (other than by a Loan Party) that equals or  exceeds $2,000,000 shall be or become evidenced by any promissory note or instrument, such  promissory note or instrument shall be promptly pledged and delivered to the Collateral Agent,  for the benefit of the Secured Parties, in a manner reasonably satisfactory to the Collateral Agent.                                         16  5346872.9  

 

                 (e)   At its option, the Collateral Agent may discharge past due taxes,   assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or  placed on the Article 9 Collateral and not permitted pursuant to Section 9.1 of the Credit  Agreement, and may pay for the maintenance and preservation of the Article 9 Collateral to the  extent any Grantor fails to do so as required by the Credit Agreement, this Agreement or any  other Loan Document and within a reasonable period of time after the Collateral Agent has  requested that it do so, and each Grantor jointly and severally agrees to reimburse the Collateral   Agent upon demand for any payment made or any reasonable documented out-of-pocket expense  incurred by the Collateral Agent pursuant to the foregoing authorization; provided that nothing in   this paragraph shall be interpreted as (i) excusing any Grantor from the performance of, or   imposing any obligation on the Collateral Agent or any Secured Party to cure or perform, any   covenants or other promises of any Grantor with respect to taxes, assessments, charges, fees,   Liens, security interests or other encumbrances and maintenance as set forth herein or in the   other Loan Documents to which such Grantor is a party, (ii) imposing on any Grantor any   obligation with respect to the maintenance and preservation of the Article 9 Collateral not   otherwise imposed by the Credit Agreement, or (iii) requiring any Grantor to obtain or maintain   any insurance coverage not otherwise required to be obtained or maintained by any Grantor   under the Credit Agreement.                (f)   If at any time any Grantor shall take a security interest in any property   (which security interest does not otherwise constitute Excluded Property) of an Account Debtor   or any other Person the value of which equals or exceeds $2,000,000 (determined on a per   property basis) to secure payment and performance of an Account owed by, or related contracts   providing for payments by the applicable Account Debtor or other Person, such Grantor shall   promptly assign such security interest to the Collateral Agent for the benefit of the applicable   Secured Parties.  Such assignment need not be filed of public record unless necessary to continue   the perfected status of the security interest against creditors of and transferees from the Account   Debtor or other Person granting the security interest.                (g)   Each Grantor (rather than the Collateral Agent or any Secured Party) shall   remain liable (as between itself and any relevant counterparty) to observe and perform all the   conditions and obligations to be observed and performed by it under each contract, agreement or   instrument relating to the Article 9 Collateral, all in accordance with the terms and conditions   thereof.          Section 3.04 Other Actions.  In order to further insure the attachment, perfection and   priority of, and the ability of the Collateral Agent to enforce, the Security Interest, each Grantor   agrees, in each case at such Grantor’s own expense, to take the following actions with respect to   the following Article 9 Collateral:                (a)   Instruments.  If any Grantor shall at any time hold or acquire any   instruments constituting Collateral and evidencing an amount equal to or in excess of $2,000,000   such Grantor shall promptly endorse, assign and deliver the same to the Collateral Agent for the   benefit of the applicable Secured Parties, accompanied by such undated instruments of transfer   or assignment duly executed in blank as the Collateral Agent may from time to time reasonably   request.                                          17   5346872.9  

 

                 (b)   Investment Property.                        (i)   If any Grantor shall at any time hold or acquire any certificated   securities (other than Excluded Equity Interests and promissory notes not required to be   delivered in accordance with Section 2.02(b)), such Grantor shall promptly endorse, assign and  deliver the same to the Collateral Agent for the benefit of the applicable Secured Parties,  accompanied by such undated instruments of transfer or assignment duly executed in blank as  the Collateral Agent may from time to time reasonably request.                       (ii)  If any Securities (other than Excluded Equity Interests), whether  certificated or uncertificated, or other investment property are held by any Grantor or its nominee  through a securities intermediary, such Grantor shall, pursuant to a control agreement, in form  and substance reasonably satisfactory to the Collateral Agent cause such securities intermediary  to agree to comply with entitlement orders from the Collateral Agent to such securities  intermediary as to such security entitlements without further consent of any Grantor or such  nominee.  Notwithstanding the foregoing, unless and until an Event of Default has occurred and  is continuing, the Collateral Agent agrees with each of the Grantors that the Collateral Agent  shall not give any such entitlement orders or instructions or directions to any such securities  intermediary, and the consent of the Collateral Agent shall not be required with respect to the  exercise of any withdrawal or dealing rights by any Grantor.                 (c)   Commercial Tort Claims.  If any Grantor shall at any time after the date of   this Agreement acquire a commercial tort claim in an amount of $2,000,000 or more, such   Grantor shall promptly notify the Collateral Agent thereof at the time of delivery of financial   statements as required by Section 7.1(a) or 7.1(b) of the Credit Agreement in writing and at such  time provide supplements to Schedule II describing the details thereof.                                     ARTICLE IV                                    [RESERVED]                                      ARTICLE V                                      Collections          Section 5.01 Collections.  Each Grantor hereby agrees to comply with the provisions of   Section 8.11 of the Credit Agreement to the extent applicable to such Grantor.                                     ARTICLE VI                                      Remedies          Section 6.01 Remedies Upon Default.  If an Event of Default has occurred and is   continuing:                (a)   The Collateral Agent shall have the right to exercise any and all rights   afforded to a secured party under this Agreement, the UCC or other applicable Law, and also                                          18   5346872.9  

 

     may:  (i) require each Grantor to, and each Grantor agrees that it will at its expense and upon   request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by the   Collateral Agent and make it available to the Collateral Agent at a place and time to be   designated by the Collateral Agent that is reasonably convenient to both parties; (ii) occupy any   premises owned or, to the extent lawful and permitted (including pursuant to the terms of the   applicable lease or any applicable Collateral Access Agreement), leased by any of the Grantors  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  in respect of such occupation; (iii) exercise any and all rights and remedies of any of the  Grantors under or in connection with the Collateral, or otherwise in respect of the Collateral;  (iv) withdraw any and all cash or other Collateral from any Approved Deposit Account or other  deposit or securities account of a Grantor subject to a control agreement in favor of the Collateral  Agent and apply such cash and other Collateral to the payment of any and all Secured  Obligations in the manner provided in Section 6.02 of this Agreement; and (v)  sell or otherwise   dispose of all or any part of the Collateral securing the Secured Obligations at a public or private   sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future   delivery as the Collateral Agent shall deem appropriate.  The Collateral Agent or any other   Secured Party or any of their respective Affiliates may be the purchaser, licensee, assignee or   recipient of the Collateral or any part thereof at any such sale and shall be entitled, for the   purpose of bidding and making settlement or payment of the purchase price for all or any portion   of the Collateral sold, assigned or licensed at such sale, to use and apply any of the Secured   Obligations owed to such person as a credit on account of the purchase price of the Collateral or   any part thereof payable by such person at such sale.                (b)   Each Grantor acknowledges and recognizes that (i) the Collateral Agent   may be unable to effect a public sale of all or a part of the Collateral consisting of securities by   reason of certain prohibitions contained in the Securities Act of 1933, 15 U.S.C. §77, (as   amended and in effect, the “Securities Act”) or the securities laws of various states (the “Blue   Sky Laws”), but may be compelled to resort to one or more private sales to a restricted group of   purchasers who will be obliged to agree, among other things, to acquire such securities for their   own account, for investment and not with a view to the distribution or resale thereof, (ii) private   sales so made may be at prices and upon other terms less favorable to the seller than if such   securities were sold at public sales, (iii) neither the Collateral Agent nor any other Secured Party   has any obligation to delay sale of any of the Collateral for the period of time necessary to permit   such securities to be registered for public sale under the Securities Act or the Blue Sky Laws, and   (iv) private sales made under the foregoing circumstances shall be deemed to have been made in   a commercially reasonable manner.  To the maximum extent permitted by Law, each Grantor   hereby waives any claim against any Secured Party arising because the price at which any   Collateral may have been sold at a private sale was less than the price that might have been   obtained at a public sale, even if the Collateral Agent accepts the first offer received and does not   offer such Collateral to more than one offeree.  Upon consummation of any such sale the   Collateral Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers   thereof the Collateral so sold.  Each such purchaser at any sale of Collateral shall hold the   property sold absolutely, free from any claim or right on the part of any Grantor, and each   Grantor hereby waives (to the extent permitted by applicable Law) all rights of redemption, stay   and appraisal which such Grantor now has or may at any time in the future have under any rule   of Law or statute now existing or hereafter enacted.                                          19   5346872.9  

 

                 (c)   The Collateral Agent shall give the applicable Grantors not less than   ten (10) days’ written notice (which each Grantor agrees is reasonable notice within the meaning   of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Collateral   Agent’s intention to make any sale of Collateral.  Such notice, in the case of a public sale, shall   state the time and place for such sale and, in the case of a sale at a broker’s board or on a   securities exchange, shall state the board or exchange at which such sale is to be made and the   day on which the Collateral, or portion thereof, will first be offered for sale at such board or   exchange.  Any such public sale shall be held at such time or times within ordinary business   hours and at such place or places as the Collateral Agent may fix and state in the notice (if any)   of such sale.  The Collateral Agent may conduct one or more going out of business sales, in the   Collateral Agent’s own right or by one or more agents and contractors.  Such sale(s) may be   conducted upon any premises owned, leased, or occupied by any Grantor.  The Collateral Agent   and any such agent or contractor, in conjunction with any such sale, may augment the Inventory   with other goods (all of which other goods shall remain the sole property of the Collateral Agent   or such agent or contractor).  Any amounts realized from the sale of such goods which constitute   augmentations to the Inventory (net of an allocable share of the costs and expenses incurred in   their disposition) shall be the sole property of the Collateral Agent or such agent or contractor   and neither any Grantor nor any Person claiming under or in right of any Grantor shall have any   interest therein.  At any such sale, the Collateral, or portion thereof, to be sold may be sold in one   lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute   discretion) determine.  The Collateral Agent shall not be obligated to make any sale of any   Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such   Collateral shall have been given.  The Collateral Agent may, without notice or publication,   adjourn any public or private sale or cause the same to be adjourned from time to time by   announcement at the time and place fixed for sale, and such sale may, without further notice, be   made at the time and place to which the same was so adjourned.  In case any sale of all or any   part of the Collateral is made on credit or for future delivery, the Collateral so sold may be   retained by the Collateral Agent until the sale price is paid by the purchaser or purchasers   thereof, but the Collateral Agent shall not incur any liability in case any such purchaser or   purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure,  such Collateral may be sold again upon like notice.  At any public (or, to the extent permitted by  applicable Law, private) sale made pursuant to this Agreement, any Secured Party may bid for or  purchase, free (to the extent permitted by applicable Law) from any right of redemption, stay,  valuation or appraisal on the part of any Grantor (all said rights being also hereby waived and  released to the extent permitted by applicable Law), the Collateral or any part thereof offered for  sale and may make payment on account thereof by using any claim then due and payable to such  Secured Party from any Grantor as a credit against the purchase price, and such Secured Party  may, upon compliance with the terms of sale, hold, retain and dispose of such property without  further accountability to any Grantor therefor.  As an alternative to exercising the power of sale  herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to  foreclose this Agreement and to sell the Collateral or any portion thereof pursuant to a judgment  or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a  court appointed receiver.  Any sale pursuant to the provisions of this Section 6.01 shall be   deemed, to the extent permitted by applicable Law, to conform to the commercially reasonable   standards as provided in Section 9-610(b) of the UCC or its equivalent in other jurisdictions.                                           20   5346872.9  

 

                 (d)   Each Grantor irrevocably makes, constitutes and appoints the Collateral   Agent (and all officers, employees or agents designated by the Collateral Agent) as such   Grantor’s true and lawful agent (and attorney-in-fact) during the continuance of an Event of   Default for the purpose of (i) making, settling and adjusting claims in respect of Article 9   Collateral under policies of insurance, endorsing the name of such Grantor on any check, draft,   instrument or other item of payment for the proceeds of such policies of insurance, (ii) making   all determinations and decisions with respect thereto and (iii) obtaining or maintaining the   policies of insurance required by Section 8.4 of the Credit Agreement or to pay any premium   then due in whole or in part relating thereto.  All sums disbursed by the Collateral Agent in   connection with this paragraph, including reasonable documented out-of-pocket attorneys’ fees,  court costs, expenses and other charges relating thereto, in each case to the extent payable  pursuant to the Credit Agreement, shall be payable within three (3) Business Days after written  demand by the Collateral Agent therefor and shall be additional Secured Obligations secured  hereby.  All powers, authorizations and agencies contained in this paragraph are coupled with an  interest and are irrevocable until this Agreement is terminated and the security interests created  hereby are released.               (e)   By accepting the benefits of this Agreement and each other Collateral  Document, the Secured Parties expressly acknowledge and agree that this Agreement and each  other Collateral Document may be enforced only by the action of the Collateral Agent and that  no other Secured Party shall have any right individually to seek to enforce or to enforce this  Agreement or to realize upon the security to be granted hereby, it being understood and agreed  that such rights and remedies may be exercised by the Collateral Agent for the benefit of the  Secured Parties upon the terms of this Agreement and the other Collateral Documents.          Section 6.02 Application of Proceeds.  The Collateral Agent shall apply the proceeds of   any collection or sale of Collateral, including any Collateral consisting of cash, in accordance   with the provisions of Section 10.3 of the Credit Agreement.  The Collateral Agent shall have   absolute discretion as to the time of application of any such proceeds, moneys or balances in   accordance with this Agreement.  Upon any sale of Collateral by the Collateral Agent (including   pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the   Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser   or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to   see to the application of any part of the purchase money paid over to the Collateral Agent or such   officer or be answerable in any way for the misapplication thereof.  It is understood and agreed   that the Grantors shall remain jointly and severally liable to the extent of any deficiency between   the amount of the proceeds of the Collateral and the aggregate amount of the outstanding   Secured Obligations.                                    ARTICLE VII                        Indemnity, Subrogation and Subordination          Upon payment by any Grantor of any Secured Obligations, all rights of such Grantor   against any other Grantor arising as a result thereof by way of right of subrogation, contribution,   reimbursement, indemnity or otherwise shall in all respects be subordinate and junior in right of   payment to, and be postponed until, the Discharge of Secured Obligations.  If any amount shall                                          21   5346872.9  

 

     be paid to the Borrower or any other Grantor in contravention of the foregoing subordination on   account of (i) such subrogation, contribution, reimbursement, indemnity or similar right or   (ii) any such indebtedness of the Borrower or any other Grantor, such amount shall be held in   trust for the benefit of the Secured Parties and shall forthwith be paid to the Collateral Agent to   be credited against the payment of the Secured Obligations, whether matured or unmatured, in   accordance with the terms of the Credit Agreement and the other Loan Documents.  Subject to   the foregoing, including without limitation, the Discharge of Secured Obligations, to the extent   that any Grantor (other than the Borrower) shall, under this Agreement or the Credit Agreement   as a joint and several obligor, repay any of the Secured Obligations (an “Accommodation   Payment”), then the Grantor making such Accommodation Payment shall be entitled to   contribution and indemnification from, and be reimbursed by, each of the other Grantors in an   amount equal to a fraction of such Accommodation Payment, the numerator of which fraction is   such other Grantor’s Allocable Amount and the denominator of which is the sum of the   Allocable Amounts of all of the Grantors.  As of any date of determination, the “Allocable   Amount” of each Grantor shall be equal to the maximum amount of liability for Accommodation   Payments which could be asserted against such Grantor hereunder and under the Credit   Agreement without (a) rendering such Grantor “insolvent” within the meaning of Section 101   (31) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer Act (“UFTA”) or   Section 2 of the Uniform Fraudulent Conveyance Act (“UFCA”), (b) leaving such Grantor with   unreasonably small capital or assets, within the meaning of Section 548 of the Bankruptcy Code,   Section 4 of the UFTA, or Section 5 of the UFCA, or (c) leaving such Grantor unable to pay its   debts as they become due within the meaning of Section 548 of the Bankruptcy Code or Section   4 of the UFTA, or Section 5 of the UFCA.                                    ARTICLE VIII                                     Miscellaneous          Section 8.01 Notices.  All communications and notices hereunder shall (except as   otherwise expressly permitted herein) be in writing and given as provided in Section 12.8 of the   Credit Agreement.  Except as otherwise expressly provided herein, all communications and   notices hereunder to a Grantor other than Holdings shall be given in care of Holdings.  All  communications and notices hereunder to any Lender (other than the Collateral Agent) shall be  given in care of the Collateral Agent for further distribution to the other relevant Lenders.          Section 8.02 Waivers; Amendment.                (a)   No failure or delay by the Collateral Agent in exercising any right or   power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall   any single or partial exercise of any such right or power, or any abandonment or discontinuance   of steps to enforce such a right or power, preclude any other or further exercise thereof or the   exercise of any other right or power.  The rights and remedies of the Collateral Agent hereunder   and under the other Loan Documents are cumulative and are not exclusive of any other rights or   remedies that they would otherwise have.  No waiver of any provision of this Agreement or   consent to any departure by any Loan Party therefrom shall in any event be effective unless the   same shall be permitted by paragraph (b) of this Section 8.02, and then such waiver or consent   shall be effective only in the specific instance and for the purpose for which given.  Without                                          22   5346872.9  

 

     limiting the generality of the foregoing, the making of any Loan or issuance of a Letter of Credit   shall not be construed as a waiver of any Default or Event of Default, regardless of whether the   Collateral Agent or any other Secured Party may have had notice or knowledge of such Default   or Event of Default at the time.                (b)   Neither this Agreement nor any provision hereof may be waived, amended   or modified except pursuant to an agreement or agreements in writing entered into by the   Collateral Agent and the Grantor or Grantors with respect to which such waiver, amendment or   modification is to apply, subject to any consent required in accordance with Section 12.1 of the   Credit Agreement.          Section 8.03 Collateral Agent’s Fees and Expenses; Indemnification.                (a)   Each Grantor agrees (i) to pay or reimburse the Collateral Agent for all   reasonable, documented and invoiced out-of-pocket costs and expenses incurred in connection  with the preparation, negotiation and execution of this Agreement and any amendment, waiver,  consent or other modification of the provisions hereof (whether or not the transactions  contemplated thereby are consummated), and the consummation and administration of the  transactions contemplated hereby, including all Attorney Costs of Otterbourg and, if reasonably  necessary, one local counsel in each relevant jurisdiction material to the interests of the Lenders  taken as a whole (which may include a single special counsel acting in multiple jurisdictions),  and (ii) to pay or reimburse the Collateral Agent for all reasonable, documented and invoiced  out-of-pocket costs and expenses incurred in connection with the enforcement of any rights or  remedies under this Agreement (including all such reasonable, documented and invoiced out-of- pocket costs and expenses incurred during any legal proceeding, including any proceeding under  any Debtor Relief Law, and including all Attorney Costs of one counsel to the Collateral Agent,  the Administrative Agent, the Issuers and the Lenders taken as a whole (and, if reasonably  necessary, one local counsel in any relevant material jurisdiction (which may include a single  special counsel acting in multiple jurisdictions), in each case for the foregoing clauses (i) and  (ii), subject to Section 12.3 of the Credit Agreement.  The agreements in this Section 8.03(a)  shall survive the termination of the Commitments and repayment of all other Obligations.  All  amounts due under this Section 8.03(a) shall be paid promptly following receipt by a Grantor of  an invoice relating thereto setting forth such expenses in reasonable detail.  If any Grantor fails  to pay when due any costs, expenses or other amounts payable by it hereunder, such amount may  be paid on behalf of such Grantor by the Administrative Agent in its sole discretion, and the  amount so paid shall be deemed to be a Revolving Loan.               (b)   Without limitation of its indemnification obligations under the other Loan  Documents, each Grantor agrees to jointly and severally indemnify and hold harmless the  Collateral Agent and the other Indemnitees (as defined in Section 12.4 of the Credit Agreement)  from and against any and all liabilities, losses, damages, claims, and reasonable, documented and  invoiced out-of-pocket fees and expenses (including Attorney Costs) of any kind or nature  whatsoever which may at any time be imposed on, incurred by or asserted against any such  Indemnitee in any way relating to or arising out of or in connection with (but limited, in the case  of Attorney Costs, to the reasonable, documented and invoiced out-of-pocket fees, disbursements  and other charges of one counsel to all Indemnitees taken as a whole and, if necessary, one local  counsel for all Indemnitees taken as a whole in each appropriate jurisdiction (which may include                                          23   5346872.9  

 

     a single firm of special counsel acting in multiple jurisdictions), and solely in the case of an   actual or perceived conflict of interest, where the Indemnitee affected by such conflict informs   the Borrower and thereafter retains its own counsel, one additional counsel for each group of   affected Indemnitees similarly situated taken as a whole) (i) the execution, delivery,   enforcement, performance or administration of this Agreement or any other agreement, letter or   instrument delivered in connection with the transactions contemplated hereby or the   consummation of the transactions contemplated thereby, (ii) the ownership, delivery, lease,   possession, use, operation, condition, sale, return or other disposition of Collateral, (iii) any   actual or alleged presence or release of Hazardous Materials on or from any property currently or   formerly owned or operated by any Grantor or any Subsidiary, or any Environmental Liabilities   arising out of the activities or operations of any Grantor or any Subsidiary, or (iv) any actual or   prospective claim, litigation, investigation or proceeding relating to any of the foregoing,   whether based on contract, tort or any other theory (including any investigation of, preparation   for, or defense of any pending or threatened claim, investigation, litigation or proceeding) and   regardless of whether any Indemnitee is a party thereto (all the foregoing, collectively, the   “Indemnified Liabilities”); provided that such indemnity shall not, as to any Indemnitee, be   available to the extent that such liabilities, losses, damages, claims, costs, expenses or   disbursements resulted from (A) the gross negligence, bad faith or willful misconduct of such  Indemnitee or of any Related Indemnified Person or (B) any dispute solely between or among  Indemnitees other than any claims against an Indemnitee in its capacity or in fulfilling its role as  Collateral Agent and other than any claims arising out of any act or omission of a Grantor or any   of its Affiliates.  To the extent that the undertakings to indemnify and hold harmless set forth in   this Section 8.03 may be unenforceable in whole or in part because they are violative of any   applicable law or public policy, such Grantor shall contribute the maximum portion that it is   permitted to pay and satisfy under applicable law to the payment and satisfaction of all   Indemnified Liabilities incurred by the Indemnitees or any of them.  No Indemnitee shall be   liable for any damages arising from the use by others of any information or other materials   obtained through IntraLinks or other similar information transmission systems in connection   with this Agreement, nor shall any Indemnitee or any Grantor have any liability for any special,   punitive, indirect or consequential damages relating to this Agreement or arising out of its   activities in connection herewith (whether before or after the Effective Date) (other than, in the   case of any Grantor, in respect of any such damages incurred or paid by an Indemnitee to a third   party).  In the case of an investigation, litigation or other proceeding to which the indemnity in   this Section 8.03 applies, such indemnity shall be effective whether or not such investigation,   litigation or proceeding is brought by any Grantor, its directors, stockholders or creditors or an   Indemnitee or any other Person, whether or not any Indemnitee is otherwise a party thereto and   whether or not any of the transactions contemplated hereunder or under any of the other Loan   Documents is consummated.  All amounts due under this Section 8.03 shall be paid within three   (3) Business Days after written demand thereof from the Collateral Agent or the Indemnitee   entitled thereto.  The agreements in this Section 8.03 shall survive the resignation of the   Administrative Agent, the Collateral Agent or any Issuer, the replacement of any Lender, the   termination of the Commitments and the repayment, satisfaction or discharge of all the other   Obligations.  This Section 8.03 shall not apply to Taxes, or amounts excluded from the definition   of Taxes pursuant to clauses (i) through (viii) of the first sentence of Section 3.1(a) of the Credit   Agreement, that are imposed with respect to payments to or for account of any Agent or any   Lender under any Loan Document, which shall be governed by Section 3.1 of the Credit                                          24   5346872.9  

 

   Agreement.  This Section 8.03 also shall not apply to Other Taxes or to taxes covered by Section  3.4 of the Credit Agreement.               (c)   Any such amounts payable as provided hereunder shall be additional  Secured Obligations secured hereby and by the other Collateral Documents.  The provisions of  this Section 8.03 shall remain operative and in full force and effect regardless of the termination  of this Agreement or any other Loan Document, the repayment of any of the Secured  Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any  other Loan Document, any resignation of the Administrative Agent, Collateral Agent or Issuer or  any investigation made by or on behalf of the Collateral Agent or any other Secured Party.  All  amounts due under this Section 8.03 shall be payable within three (3) Business Days after written  demand therefor.         Section 8.04 Successors and Assigns.  Whenever in this Agreement any of the parties  hereto is referred to, such reference shall be deemed to include the successors and permitted  assigns of such party; and all covenants, promises and agreements by or on behalf of any Grantor  or the Collateral Agent that are contained in this Agreement shall bind and inure to the benefit of  their respective successors and permitted assigns.  Except as provided in Section 12.2 of the  Credit Agreement, (i) no Grantor may assign any of its rights or obligations hereunder without  the written consent of the Collateral Agent, except pursuant to a transaction permitted under  Section 9.4 of the Credit Agreement, and (ii) the Collateral Agent may not assign any of its  rights and obligations except in accordance with Section 11.6 of the Credit Agreement.  Any  purported assignment in breach of this Section 8.04 shall be of no force and effect.         Section 8.05 Survival of Agreement.  Without limitation of any provision of the Credit  Agreement or Section 8.03 hereof, all covenants, agreements, indemnities, representations and  warranties made by the Grantors in the Loan Documents and in the certificates or other  instruments delivered in connection with or pursuant to this Agreement or any other Loan  Document shall be considered to have been relied upon by the Lenders and shall survive the  execution and delivery of the Loan Documents and the making of any Loans and issuance of any  Letters of Credit, regardless of any investigation made by any such Lender or on its behalf and  notwithstanding that the Collateral Agent or any Lender may have had notice or knowledge of  any Default or Event of Default or incorrect representation or warranty at the time any credit is  extended under the Credit Agreement, and shall continue in full force and effect until this  Agreement is terminated as provided in Section 8.12 hereof, or with respect to any individual  Grantor until such Grantor is otherwise released from its obligations under this Agreement in  accordance with the terms hereof or the terms of the Credit Agreement.         Section 8.06 Counterparts; Effectiveness; Several Agreement.  This Agreement may be  executed in one or more counterparts, each of which shall be deemed an original but all of which  when taken together shall constitute one and the same instrument.  Delivery by telecopier or by  electronic .pdf copy of an executed counterpart of a signature page to this Agreement shall be  effective as delivery of an original executed counterpart of this Agreement.  This Agreement  shall become effective when it shall have been executed by each Effective Date Grantor (and,  with respect to each Person that becomes a Grantor hereunder following the Effective Date, on  the date of delivery of a Security Agreement Supplement by such Grantor) and the Collateral  Agent and thereafter shall be binding upon and inure to the benefit of each Grantor and the                                         25  5346872.9  

 

   Collateral Agent and the other Secured Parties and their respective permitted successors and  assigns, subject to Section 8.04 hereof.  This Agreement shall be construed as a separate  agreement with respect to each Grantor and may be amended, restated, modified, supplemented,  waived or released with respect to any Grantor without the approval of any other Grantor and  without affecting the obligations of any other Grantor hereunder.         Section 8.07 Severability.  If any provision of this Agreement is held to be invalid,  illegal, or unenforceable, the legality, validity and enforceability of the remaining provisions of  this Agreement shall not be affected or impaired thereby.  The invalidity of a provision in a  particular jurisdiction shall not invalidate or render unenforceable such provision in any other  jurisdiction.         Section 8.08 GOVERNING LAW, ETC.               (a)   THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY,  DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR  OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT  AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY,  AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK  (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF,  BUT INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS  LAW).               (b)   THE GRANTORS AND THE COLLATERAL AGENT EACH  IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS  PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF  NEW YORK OR FEDERAL COURTS OF THE UNITED STATES OF AMERICA SITTING  IN NEW YORK COUNTY, AND ANY APPELLATE COURT FROM ANY THEREOF, IN  ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS  AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES  THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING SHALL BE  HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE  FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.   EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH  ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN  OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER  PROVIDED BY LAW.  EACH PARTY HERETO AGREES THAT THE COLLATERAL  AGENT RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN  THE COURTS OF ANY OTHER JURISDICTION SOLELY IN CONNECTION WITH THE  EXERCISE OF ANY RIGHTS UNDER THIS AGREEMENT OR THE ENFORCEMENT OF  ANY JUDGMENT.               (c)   THE GRANTORS AND THE COLLATERAL AGENT EACH  IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT  PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR                                         26  5346872.9  

 

     HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING   ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY COURT REFERRED   TO IN PARAGRAPH (b) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY   IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE   LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF   SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.          Section 8.09 WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY   HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT   PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY   JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT   OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS   CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY   OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO   REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS   REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON   WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE   FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER   PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT  BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN  THIS SECTION.          Section 8.10 Headings.  Article and Section headings and the Table of Contents used   herein are for convenience of reference only, are not part of this Agreement and are not to affect   the construction of, or to be taken into consideration in interpreting, this Agreement.          Section 8.11 Security Interest Absolute.  To the fullest extent permitted by applicable   law, all rights of the Collateral Agent hereunder, the Security Interest, the grant of a security   interest in the Pledged Collateral and all obligations of each Grantor hereunder shall be absolute   and unconditional irrespective of (a) any lack of validity or enforceability of the Credit   Agreement, any other Loan Document, any Secured Hedge Agreement, any Cash Management   Services, any agreement with respect to any of the Secured Obligations or any other agreement   or instrument relating to any of the foregoing, (b) any change in the time, manner or place of   payment of, or in any other term of, all or any of the Secured Obligations, or any other   amendment or waiver of or any consent to any departure from the Credit Agreement, any other   Loan Document, any Secured Hedge Agreement, any Cash Management Services, or any other   agreement or instrument, (c) any exchange, release or non−perfection of any Lien on other   collateral, or any release or amendment or waiver of or consent under or departure from any   guarantee, securing or guaranteeing all or any of the Secured Obligations or (d) subject only to   termination of a Grantor’s obligations hereunder in accordance with the terms of Section 8.12,   but without prejudice to reinstatement rights under Section 2.04 of the Guaranty, any other   circumstance that might otherwise constitute a defense available to, or a discharge of, any   Grantor in respect of the Secured Obligations or this Agreement.          Section 8.12 Termination or Release.                                           27   5346872.9  

 

                 (a)   This Agreement, the Security Interest and all other security interests   granted hereby shall automatically terminate with respect to all Secured Obligations upon a   Discharge of Secured Obligations and the Collateral shall be automatically released from the   Liens created by this Agreement.                (b)   In connection with any termination or release pursuant to paragraph (a),   the Collateral Agent shall promptly execute and deliver to any Grantor, at such Grantor’s   expense, all termination statements, instruments and other documents as shall be necessary or  that such Grantor shall in good faith request to evidence such termination or release.  At the  request of any Grantor following such termination, the Collateral Agent shall deliver to such  Grantor any Collateral of such Grantor held by Collateral Agent hereunder, other than cash  Collateral being held by the Collateral Agent as described in clauses (ii), (iii) and (iv) of the  definition of the Discharge of Secured Obligations.  Any execution and delivery of documents  pursuant to this Section 8.12 shall be without recourse to or warranty by the Collateral Agent.                (c)   The Collateral Agent shall have no liability whatsoever to any Secured   Party as the result of any release of Collateral by it as permitted (or which the Collateral Agent in   good faith believes to be permitted) by this Section 8.12.          Section 8.13 Additional Grantors.  Pursuant to Section 8.10 of the Credit Agreement,   upon the formation or acquisition of any new Wholly-Owned Subsidiary that is a Material  Domestic Subsidiary (in each case, other than an Excluded Subsidiary, but including any  Subsidiary that ceases to constitute an Excluded Subsidiary) by any Loan Party, any Subsidiary  becoming a Wholly-Owned Subsidiary that is a Material Domestic Subsidiary, or with respect to   any Subsidiary at the time it becomes a Loan Party, such Subsidiary is required to enter in this   Agreement as a Grantor as described in Section 8.10 of the Credit Agreement.  Upon execution   and delivery by the Collateral Agent and a Subsidiary of a Security Agreement Supplement, such   Subsidiary shall become a Grantor hereunder with the same force and effect as if originally   named as a Grantor herein.  The execution and delivery of any such instrument shall not require   the consent of any other Grantor hereunder.  The rights and obligations of each Grantor   hereunder shall remain in full force and effect notwithstanding the addition of any new Grantor   as a party to this Agreement.          Section 8.14 Collateral Agent Appointed Attorney-in-Fact.                (a)   Each Grantor hereby appoints the Collateral Agent the true and lawful   attorney-in-fact of such Grantor solely for the purpose of carrying out the provisions of this  Agreement and taking any action and executing any instrument that the Collateral Agent may  deem necessary or reasonably advisable to accomplish the purposes hereof if an Event of Default  has occurred and is continuing, which appointment is irrevocable and coupled with an interest  and is irrevocable until this Agreement is terminated and the security interests created hereby are  released.  Without limiting the generality of the foregoing, the Collateral Agent shall have the  right, if an Event of Default has occurred and is continuing, with full power of substitution either  in the Collateral Agent’s name or in the name of such Grantor (a) to take actions required to be  taken by the Grantors under Article V of this Agreement; (b) to receive, endorse, assign and/or   deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of   payment relating to the Collateral or any part thereof; (c) to demand, collect, receive payment of,                                          28   5346872.9  

 

   give receipt for and give discharges and releases of all or any of the Collateral; (d) to commence  and prosecute any and all suits, actions or proceedings at law or in equity in any court of  competent jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce  any rights in respect of any Collateral; (e) to sign the name of any Grantor on any invoice or bill  of lading relating to any of the Collateral; (f) to send verifications of Accounts to any Account  Debtor; (g) to settle, compromise, compound, adjust or defend any actions, suits or proceedings  relating to all or any of the Collateral; (h) to notify, or to require any Grantor to notify, Account  Debtors to make payment directly to the Collateral Agent or to an Approved Deposit Account  and adjust, settle or compromise the amount of payment of any Account or related contracts;  (i) to make, settle and adjust claims in respect of Collateral under policies of insurance and to  endorse the name of such Grantor on any check, draft, instrument or any other item of payment  with respect to the proceeds of such policies of insurance and for making all determinations and  decisions with respect thereto; and (j) to use, sell, assign, transfer, pledge, make any agreement  with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and  things necessary to carry out the purposes of this Agreement, as fully and completely as though  the Collateral Agent were the absolute owner of the Collateral for all purposes; provided that  nothing herein contained shall be construed as requiring or obligating the Collateral Agent to  make any commitment or to make any inquiry as to the nature or sufficiency of any payment  received by the Collateral Agent, or to present or file any claim or notice, or to take any action  with respect to the Collateral or any part thereof or the moneys due or to become due in respect  thereof or any property covered thereby.  The Collateral Agent and the other Secured Parties  shall be accountable only for amounts actually received as a result of the exercise of the powers  granted to them herein, and neither they nor their officers, directors, employees or agents shall be  responsible to any Grantor for any act or failure to act hereunder, except for their own gross  negligence or willful misconduct or that of any of their Affiliates, directors, officers, employees,  counsel, agents or attorneys-in-fact.               (b)   All acts in accordance with this Section 8.14 and the other provisions of  this Agreement of said attorney or designee are hereby ratified and approved by the Grantors.   The powers conferred on the Collateral Agent, for the benefit of the Secured Parties, under this  Section 8.14 are solely to protect the Collateral Agent’s interests in the Collateral and shall not  impose any duty upon the Collateral Agent or any Secured Party to exercise any such powers.         Section 8.15 General Authority of the Collateral Agent.  By acceptance of the benefits  of this Agreement and any other Collateral Documents, each Secured Party (whether or not a  signatory hereto) shall be deemed irrevocably (a) to consent to the appointment of the Collateral  Agent as its agent hereunder and under such other Collateral Documents, (b) to confirm that the  Collateral Agent shall have the authority to act as the exclusive agent of such Secured Party for  the enforcement of any provisions of this Agreement and such other Collateral Documents  against any Grantor, the exercise of remedies hereunder or thereunder and the giving or  withholding of any consent or approval hereunder or thereunder relating to any Collateral or any  Grantor’s obligations with respect thereto, (c) to agree that it shall not take any action to enforce  any provisions of this Agreement or any other Collateral Document against any Grantor, to  exercise any remedy hereunder or thereunder or to give any consents or approvals hereunder or  thereunder except as expressly provided in this Agreement or any other Collateral Document and  (d) to agree to be bound by the terms of this Agreement and any other Collateral Documents.                                         29  5346872.9  

 

           Section 8.16 Collateral Agent’s Duties.  Except for the safe custody of any Collateral in   its possession and the accounting for moneys actually received by it hereunder, the Collateral   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 Collateral 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.          Section 8.17 Recourse; Limited Obligations.  This Agreement is made with full   recourse to each Grantor and pursuant to and upon all the warranties, representations, covenants   and agreements on the part of such Grantor contained herein, in the Credit Agreement and the  other Loan Documents and otherwise in writing in connection herewith or therewith, with  respect to the Secured Obligations of each applicable Secured Party.  It is the desire and intent of  each Grantor and each applicable Secured Party that this Agreement shall be enforced against  each Grantor to the fullest extent permissible under applicable Law applied in each jurisdiction  in which enforcement is sought.          Section 8.18 Mortgages.  In the event that any of the Collateral hereunder is also   subject to a valid and enforceable Lien under the terms of a Mortgage and the terms thereof are   inconsistent with the terms of this Agreement, then with respect to such Collateral, the terms of   such Mortgage shall control in the case of fixtures and real property leases, letting and licenses   of, and contracts, and agreements relating to the lease of, real property, and the terms of this   Agreement shall control in the case of all other Collateral.          Section 8.19 Conflicts.  In the event of any conflict or inconsistency between any   provisions of this Agreement and the provisions of the Credit Agreement, the provisions of the   Credit Agreement shall control.          Section 8.20 Right of Setoff.  If an Event of Default shall have occurred and be   continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time   to time, after obtaining the prior written consent of the Administrative Agent, to the fullest extent   permitted by applicable law, to set off and apply any and all deposits (general or special, time or   demand, provisional or final, in whatever currency) at any time held and other obligations (in   whatever currency) at any time owing by such Lender or any such Affiliate to or for the credit or   the account of any Grantor against any and all of the obligations of the Grantor now or hereafter   existing under this Agreement or any other Loan Document to such Lender, irrespective of   whether or not such Lender shall have made any demand under this Agreement or any other   Loan Document and although such obligations of such Grantor may be contingent or unmatured   or are owed to a branch or office of such Lender different from the branch or office holding such   deposit or obligated on such indebtedness;  provided that in the event that any Defaulting Lender   shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately   to the Administrative Agent for further application in accordance with the provisions of Section   2.15 of the Credit Agreement and, pending such payment, shall be segregated by such Defaulting   Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent   and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative                                          30   5346872.9  

 

     Agent a statement describing in reasonable detail the Obligations owing to such Defaulting  Lender as to which it exercised such right of setoff.  The rights of each Lender and its Affiliates  under this Section are in addition to other rights and remedies (including other rights of setoff)  that such Lender or its Affiliates may have.  Each Lender agrees to notify the Borrower and the  Collateral Agent promptly after any such setoff and application, provided that the failure to give   such notice shall not affect the validity of such setoff and application.                                                                                     [Signature Pages Follow]                                           31   5346872.9  

 

 

 

 

 

                            SCHEDULE I TO SECURITY AGREEMENT                                                                                   PLEDGED EQUITY INTERESTS                                                    Percentage                                                      of       Number                                Registered          Equity        of       Class of     Number of  Issuer                       Owner/Grantor        Interests   Shares  Equity Interest  Certificate  eHealthInsurance Services,                                            Common  Inc.                     eHealth, Inc.             100%        100    Stock          Uncertificated                                                                                                                                                                     Common  PlanPrescriber, Inc.     eHealth, Inc.             100%       1000    Stock          Uncertificated                                                                                                                                                             50,000                                                               Class A                                                                Units;                                                                50,000  Class A Units  Wealth, Health and Life                                      Class B  and Class B  Advisors, LLC            eHealth, Inc.             100%       Units   Units          Uncertificated                                                                                                                                                                     Common  eHealth China, Inc.      eHealth, Inc.             65%         65     Stock              CS-3                                                                                                                                                                                                                                                                                         PLEDGED DEBT                                                                                                   None.   5346872.9  

 

                      SCHEDULE II TO SECURITY AGREEMENT                                                                    COMMERCIAL TORT CLAIMS                                                                                                                         None.   5346872.9  

 

                      SCHEDULE III TO SECURITY AGREEMENT                                                                           UCC FILINGS   Grantor                                Jurisdiction  eHealth, Inc.                          Delaware  eHealthInsurance Services, Inc.        Delaware  PlanPrescriber, Inc.                   Delaware  Wealth, Health and Life Advisors, LLC  Texas          5346872.9  

 

                          EXHIBIT I TO SECURITY AGREEMENT                                                              FORM OF SECURITY AGREEMENT SUPPLEMENT          SUPPLEMENT NO. _____ dated as of ______  __, 20__ (this “Supplement”), to the   Security Agreement, dated as of September 17, 2018 (the “Security Agreement”) among   EHEALTH, INC., a Delaware corporation (“eHealth” or “Holdings”), EHEALTHINSURANCE   SERVICES, INC., a Delaware corporation (“eHealthInsurance”), WEALTH, HEALTH AND   LIFE ADVISORS, LLC, a Texas limited liability company (“GoMedigap”  and together with   eHealth, eHealthInsurance and any other Person that may become a borrower party to the Credit   Agreement referred to below, individually and collectively, the “Borrower”),   PLANPRESCRIBER, INC., a Delaware corporation (“PlanPrescriber” and, together with any   other Person that may become a guarantor party to the Credit Agreement, collectively the   “Guarantors” and individually a “Guarantor”), any other Grantors from time to time party hereto   and Royal Bank of Canada, as Collateral Agent for the Secured Parties.          A.    Reference is made to (i) the Credit Agreement, dated as of September 17, 2018   (as amended, restated, amended and restated, supplemented and/or otherwise modified from time   to time, the “Credit Agreement”), among the Borrower, the Guarantors, the Lenders, Royal Bank   of Canada, as Issuer, Administrative Agent for the Lenders and Collateral Agent for the Secured   Parties, and (ii) the Guaranty (as defined in the Credit Agreement).          B.    Capitalized terms used herein and not otherwise defined herein shall have the   meanings assigned to such terms in the Credit Agreement and the Security Agreement, as   applicable.          C.    The Grantors have entered into the Security Agreement in order to induce (x) the   Lenders to make Loans and (y) the Issuers to issue Letters of Credit.  Section 8.13 of the Security   Agreement provides that certain additional Wholly-Owned Subsidiaries that are Material  Domestic Subsidiaries of the Grantors (in each case, other than Excluded Subsidiaries) may  become Grantors under the Security Agreement by execution and delivery of an instrument  substantially in the form of this Supplement.  The undersigned Subsidiary (the “New   Subsidiary”) is executing this Supplement in accordance with the requirements of the Credit   Agreement to become a Grantor under the Security Agreement in order to induce the Lenders to   make additional Loans and as consideration for Loans previously made.          Accordingly, the Collateral Agent and the New Subsidiary agree as follows:          Section 1.  In accordance with Section 8.13 of the Security Agreement, the New   Subsidiary by its signature below becomes a Grantor under the Security Agreement with the   same force and effect as if originally named therein as a Grantor and the New Subsidiary hereby   (a) agrees to all the terms and provisions of the Security Agreement applicable to it as a Grantor   thereunder and (b) represents and warrants that the representations and warranties made by it as a   Grantor thereunder are true and correct in all material respects on and as of the date hereof;   provided that, to the extent that such representations and warranties specifically refer to an   earlier date, they shall be true and correct in all material respects as of such earlier date; provided   further that any representation and warranty that is qualified as to “materiality”, “Material     5346872.9                                                                       

 

   Adverse Effect” or similar language shall be true and correct (after giving effect to any  qualification therein) in all respects on such respective dates.  In furtherance of the foregoing, the  New Subsidiary, as security for the payment and performance in full of the Secured Obligations  does hereby grant to the Collateral Agent, for the benefit of the Secured Parties, a security  interest in all of the New Subsidiary’s right, title and interest in and to the Collateral (as defined  in the Security Agreement) of the New Subsidiary.  Each reference to a “Grantor” in the Security  Agreement shall be deemed to include the New Subsidiary as if originally named therein as a  Grantor.  The Security Agreement is hereby incorporated herein by reference.         Section 2.  The New Subsidiary represents and warrants to the Collateral Agent and  the other Secured Parties that this Supplement has been duly authorized, executed and delivered  by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance  with its terms, except as such enforceability may be limited by Debtor Relief Laws and by  general principles of equity.         Section 3.  This Supplement may be executed in counterparts (and by different parties  hereto on different counterparts), each of which shall constitute an original, but all of which  when taken together shall constitute a single contract.  This Supplement shall become effective  when the Collateral Agent shall have received a counterpart of this Supplement that bears the  signature of the New Subsidiary and the Collateral Agent has executed a counterpart hereof.   Delivery of an executed signature page to this Supplement by facsimile or electronic (including  .pdf file) transmission shall be as effective as delivery of a manually signed counterpart of this  Supplement.         Section 4.  The New Subsidiary hereby represents and warrants that the updated  schedules to the Security Agreement attached hereto as Schedule I have been duly delivered to  the Collateral Agent and the information set forth therein, including the exact legal name of the  New Subsidiary and its jurisdiction of organization, is correct and complete in all material  respects as of the date hereof.         Section 5.  Except as expressly supplemented hereby, the Security Agreement shall  remain in full force and effect.         Section 6.  THIS SUPPLEMENT AND ANY CLAIMS, CONTROVERSY,  DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR  OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT  AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY,  AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK  (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF,  BUT INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS  LAW).         Section 7.  In case any one or more of the provisions contained in this Supplement  should be held invalid, illegal or unenforceable in any respect, the validity, legality and  enforceability of the remaining provisions contained herein and in the Security Agreement shall  not in any way be affected or impaired thereby (it being understood that the invalidity of a  particular provision in a particular jurisdiction shall not in and of itself affect the validity of such    5346872.9                             

 

   provision in any other jurisdiction).  The parties hereto shall endeavor in good-faith negotiations  to replace the invalid, illegal or unenforceable provisions with valid provisions the economic  effect of which comes as close as possible to that of the invalid, illegal or unenforceable  provisions.         Section 8.  All communications and notices hereunder shall be in writing and given as  provided in Section 8.01 of the Security Agreement.         Section 9.  The New Subsidiary agrees to reimburse the Collateral Agent for its  reasonable out-of-pocket expenses in connection with this Supplement, including all Attorney  Costs of counsel for the Collateral Agent and to the extent (and subject to the limitations) as  provided in Section 8.03(a) of the Security Agreement.    5346872.9                             

 

         IN WITNESS WHEREOF, the New Subsidiary and the Collateral Agent have duly  executed this Supplement to the Security Agreement as of the day and year first above written.                                       [NAME OF NEW SUBSIDIARY]                                                                                                                                                        By: _____________________________________                                      Name:                                      Title:                                      Legal Name:                                      Jurisdiction of Formation:                                      Location of Chief Executive Office:                                                                            ROYAL BANK OF CANADA, as Collateral Agent                                                                                                                  By: _____________________________________                                      Name:                                      Title:                                          5346872.9  

 

              SCHEDULE I TO SECURITY AGREEMENT SUPPLEMENT                                            [ATTACH COMPLETED INFORMATION CERTIFICATE FOR NEW SUBSIDIARY     AND  ALL SCHEDULES TO SECURITY AGREEMENT, UPDATED FOR NEW                                  SUBSIDIARY]                                                                5346872.9  

 

                       EXHIBIT II TO SECURITY AGREEMENT                                                               FORM OF INFORMATION CERTIFICATE         See Attached.                                                5346872.9  

 

                                                                                                                      INFORMATION CERTIFICATE                                       [____________], 20                 In connection with that certain Credit Agreement (the “Credit Agreement”) to be entered into by        and among eHealth, Inc., a Delaware corporation (the “Borrower”) and certain other domestic        subsidiaries of Borrower party thereto (together with the Borrower, individually, a “Company”, and        collectively, the “Companies”), the Lenders party thereto from time to time, and Royal Bank of Canada,        as administrative agent (in such capacity, the “Administrative Agent”) and as collateral agent (in such        capacity, the “Collateral Agent”), each Company hereby certifies as follows:                             I.    Current Information               A.   Legal Name, Organizations, Corporate Functions, Jurisdiction of Organization and        Organizational Identification Number. The full and exact legal name (as it appears in its certificate or        articles of organization, limited liability membership agreement, or similar organizational documents, in       each case as amended to date), the type of organization, the corporate function, the jurisdiction of       organization and the state organizational identification number and federal taxpayer identification       number) of each Company are as follows:                         Type of                    Organization (e.g.                       corporation,                                           Federal                     limited liability                      Organizational   Taxpayer         Name of     company, limited Corporate Jurisdiction of Identification Identification        Company        partnership) Function1 Organization    Number          Number                                                                                                                                                                                                                                                                                                                                                                                                                                                       B.    Chief Executive Offices, Mailing Addresses and other Locations.  The chief executive        office address and the preferred mailing address and any other location in which each Company maintains       any collateral or any books and records relating thereto of each Company are as follows:                                                                          Location where Books and                       Address of Chief Executive                           Records are Kept   Name of Company              Office          Mailing Address (if different) (if different)                                                                                                                                                   1 Eg, holding company, owner of intellectual property or real estate, operating company                                               1        5420285.1  

 

                                                                       Location where Books and                       Address of Chief Executive                           Records are Kept   Name of Company              Office          Mailing Address (if different) (if different)                                                                                                                                                                                                                           Addresses of Owned       Addresses of Leased              Name of Company           Distribution Centers     Distribution Centers                                                                                                                                                                                                                                                                                                                                                    Addresses of Owned Store  Addresses of Leased Store              Name of Company               Locations                Locations                                                                                                                                                                                                                                                     C.   Warehousemen, Bailees, etc.  Except as set forth below, no persons (including        warehousemen, customs brokers, freight forwarders, common carriers or other bailees) other than the        Companies have possession of any assets (including goods, inventory and equipment) of any Company:                                                Description of Nature of Possession (bailee,        Address/City/State/Zip Code County     Assets and Value warehouseman, etc.)                                                                                                                                                                                                                                                                                          D.   Changes in Names, Jurisdiction of Organization or Corporate Structure.                       Except as set forth below, no Company has changed its name, jurisdiction of organization        or its corporate structure in any way (e.g. by merger, consolidation, change in corporate form, change in        jurisdiction of organization or otherwise) within the past four (4) months:                       Date of Change    Description of Change                                               2                5420285.1  

 

               Date of Change    Description of Change                                                                                    E.    Acquisitions of Equity Interests or Assets.                  Except as set forth below, no Company has acquired the controlling equity interests of  another entity or substantially all the assets of another entity within the past four (4) months:                  Date of Acquisition Description of Acquisition                                                                                    F.    Corporate Ownership and Organizational Structure.                  Attached as Exhibit A hereto is a true and correct organizational chart showing the   ownership of the Lead Borrower and all of its affiliates.         II.   Investment Related Property          A.   Securities.  Set forth below is a list of all equity interests owned by the Companies   together with the type of organization which issued such equity interests (e.g. corporation, limited liability   company, partnership or trust):                               # of                       Certificate No.                   Type of    Shares Total Shares        (if uncertificated,       Issuer   Organization Owned   Outstanding Owner please indicate so) Par Value                                                                                                                                                                                                                                       B.    Securities Accounts.  Set forth below is a list of all securities accounts of each   Company:                                                        Name & Address of Financial   Name of Company         Type of Account             Institutions/Financial Intermediary                                                                                                                                                                                                                 3      5420285.1  

 

                                                         Name & Address of Financial       Name of Company         Type of Account             Institutions/Financial Intermediary                                                                                                                                            C.    Deposit Accounts.  Set forth below is a list of all bank accounts (checking, savings,       money market or the like) of the Companies:                                                                          Name & Address of   Name of Company       Account Number           Type of Account2        Financial Institutions                                                                                                                                                                                                                                                                                                                                                                                                      D.    Instruments.  Set forth below is a list of all instruments held by or payable to the       Companies:                                                      Principal Amount           Name of Company      Issuer of Instrument of Instrument   Maturity Date                                                                                                                                                                                                                                                                                                                                                                                                                                     2 Eg, concentration account, local store depository account, payroll account, account to pay taxes, etc.                                             4              5420285.1  

 

 IV.   Intellectual Property    A.   Set forth below is a list of all copyrights, patents, trademarks and other intellectual property  owned or licensed by any Company:          Copyrights   Owner      Filing Date Status         Registration No.                                                                                                                                        Patents      Owner      Filing Date Status         Registration No.                                                                                                                                        Trademarks   Owner      Filing Date Status         Registration No.                                                                                                                                  V.   Commercial Tort Claims.  The Companies currently have the following commercial tort claims   against other parties:             Case Name/Filing Number       Defendant     Summary of Claim                                                                                                                                                                    VI.   Letter of Credit Rights.  Set forth below is a list of all letter of credit rights in favor of any   Company, as beneficiary thereunder:                                           5      5420285.1  

 

       IN WITNESS WHEREOF, the undersigned hereto have caused this Information Certificate to be  executed as of the date above first written by its officer thereunto duly authorized.                                         COMPANIES:                                                                                                                  ______________________________                                                                                                                  By:   ____________________________________                                            Name: ______________________________                                            Title: _______________________________                                                                                                                                                        ______________________________                                                                                                                  By:   ____________________________________                                            Name: ______________________________                                            Title: _______________________________                                                                                 6      5420285.1  

 

                                   Exhibit A                                                                      Corporate Organizational Chart                                                                                                                            7    5420285.1exhibit103guaranty

                                                                    [Execution]                                     GUARANTY                                     dated as of                                 September 17, 2018                                       among                               PLANPRESCRIBER, INC.                                                                               and           THE OTHER GUARANTORS PARTY HERETO FROM TIME TO TIME,                                        and                             ROYAL BANK OF CANADA,                      as Administrative Agent and Collateral Agent            5347156.7                                                                      

 

                                 TABLE OF CONTENTS                                                                            Page    ARTICLE I DEFINITIONS .......................................................................................................... 1        Section 1.01   Credit Agreement Definitions. ............................................................. 1        Section 1.02   Other Defined Terms ........................................................................... 1  ARTICLE II GUARANTEE.......................................................................................................... 2        Section 2.01   Guarantee. ............................................................................................ 2        Section 2.02   Guarantee of Payment. ......................................................................... 2        Section 2.03   No Limitations. .................................................................................... 3        Section 2.04   Reinstatement. ...................................................................................... 4        Section 2.05   Agreement To Pay; Subrogation. ......................................................... 5        Section 2.06   Information. ......................................................................................... 5  ARTICLE III INDEMNITY, SUBROGATION AND SUBORDINATION ................................ 5  ARTICLE IV MISCELLANEOUS ............................................................................................... 6        Section 4.01   Notices. ................................................................................................ 6        Section 4.02   Waivers; Amendment. ......................................................................... 6        Section 4.03   Administrative Agent’s and Collateral Agent’s Fees and                       Expenses; Indemnification. .................................................................. 6        Section 4.04   Successors and Assigns........................................................................ 8        Section 4.05   Survival of Agreement. ........................................................................ 8        Section 4.06   Counterparts; Effectiveness; Several Agreement. ............................... 9        Section 4.07   Severability. ......................................................................................... 9        Section 4.08   GOVERNING LAW, ETC. ................................................................. 9        Section 4.09   WAIVER OF RIGHT TO TRIAL BY JURY.................................... 10        Section 4.10   Headings. ........................................................................................... 10        Section 4.11   Obligations Absolute. ........................................................................ 11        Section 4.12   Termination or Release ...................................................................... 11        Section 4.13   Additional Subsidiaries. ..................................................................... 11        Section 4.14   Recourse; Limited Obligations. ......................................................... 11           5347156.7  

 

  EXHIBITS   Exhibit I   Form of Guaranty Supplement    5347156.7  

 

         This GUARANTY, dated as of September 17, 2018 (this “Guaranty"), is among  PLANPRESCRIBER, INC., a Delaware corporation (“PlanPrescriber”), and the other  Guarantors from time to time party hereto and ROYAL BANK OF CANADA, as Administrative  Agent and Collateral Agent for the Secured Parties (as defined below).         Reference is made to the Credit Agreement, dated as of the date hereof (as amended,  restated, amended and restated, supplemented and/or otherwise modified from time to time, the  “Credit Agreement”), among eHealth, Inc., a Delaware corporation (“eHealth”),  eHealthInsurance Services, Inc., a Delaware corporation (“eHealthInsurance”), Wealth, Health  and Life Advisors, LLC, a Texas limited liability company (“GoMedigap” and, together with  eHealth, eHealthInsurance and any other Person that may become a borrower party to the Credit  Agreement, individually and collectively, the “Borrower”), the Guarantors, the Lenders party  thereto, Royal Bank of Canada, as Administrative Agent and Collateral Agent, and others.         The Lenders have agreed to extend credit to the Borrower subject to the terms and  conditions set forth in the Credit Agreement, and the Issuers have agreed to issue Letters of  Credit for the account of the Borrower or a Subsidiary of the Borrower on the terms and  conditions set forth therein.  The obligations of the Lenders to extend such credit, and the  obligation of the Issuers to issue Letters of Credit, are, in each case, conditioned upon, among  other things, the execution and delivery of this Guaranty by each Guarantor (as defined below).   The Guarantors are affiliates of one another, will derive substantial direct and indirect benefits  from (i) the extensions of credit to the Borrower pursuant to the Credit Agreement and (ii) the  issuance of Letters of Credit by the Issuers for the account of the Borrower and, in accordance  with the Credit Agreement, the Guarantors are willing to execute and deliver this Guaranty in  order to induce the Lenders to extend such credit and the Issuers to issue such Letters of Credit.   Accordingly, the parties hereto agree as follows:                                    ARTICLE I                                     Definitions         Section 1.01 Credit Agreement Definitions.               (a)   Capitalized terms used in this Guaranty, including the preamble and  introductory paragraphs hereto, and not otherwise defined herein have the meanings specified in  the Credit Agreement.               (b)   The rules of construction specified in Article I of the Credit Agreement  also apply to this Guaranty.         Section 1.02 Other Defined Terms.  As used in this Guaranty, the following terms have  the meanings specified below:         “Accommodation Payment” has the meaning assigned to such term in Article III hereof.         “Allocable Amount” has the meaning assigned to such term in Article III hereof.    5347156.7  

 

         “Credit Agreement” has the meaning assigned to such term in the preliminary statement  of this Guaranty.         “Discharge of Obligations” means the time at which all Obligations (other than (i)  contingent indemnification and reimbursement obligations as to which no claim has been  asserted by the Person entitled thereto, (ii) Obligations under Secured Hedge Agreements as to  which arrangements satisfactory to the applicable Hedge Bank shall have been made, and (iii)  Cash Management Obligations as to which arrangements satisfactory to the applicable Cash  Management Bank shall have been made) have been paid in full in cash, all Letters of Credit  have expired or been terminated (other than Letters of Credit for which other arrangements  reasonably satisfactory to the Administrative Agent and each applicable Issuer have been made)  and all Commitments have been terminated.          “Guaranteed Obligations” means the “Obligations” as defined in the Credit Agreement.         “Guarantors” means, collectively, PlanPrescriber and any other Person that becomes a  party to this Guaranty after the Effective Date pursuant to Section 4.13 hereof.         “Guaranty Supplement” means an instrument substantially in the form of Exhibit I  hereto.         “Secured Parties” has the meaning provided in the Credit Agreement.         “UFCA” has the meaning assigned to such term in Article III hereof.         “UFTA” has the meaning assigned to such term in Article III hereof.                                    ARTICLE II                                     Guarantee         Section 2.01 Guarantee.         Each Guarantor irrevocably, absolutely and unconditionally guarantees, jointly with the  other Guarantors and severally, as a primary obligor and not merely as a surety, the due and  punctual payment and performance of the Guaranteed Obligations, in each case, whether such  Guaranteed Obligations are now existing or hereafter incurred under, arising out of or in  connection with any Loan Document, Secured Hedge Agreements or Cash Management  Services, and whether at maturity, by acceleration or otherwise.  Each of the Guarantors further  agrees that the Guaranteed Obligations may be extended, increased or renewed, amended or  modified, in whole or in part, without notice to, or further assent from, such Guarantor and that  such Guarantor will remain bound upon its guarantee hereunder notwithstanding any such  extension, increase, renewal, amendment or modification of any Guaranteed Obligation.  Each of  the Guarantors waives promptness, presentment to, demand of payment from, and protest to, any  Guarantor or any other Loan Party of any of the Guaranteed Obligations, and also waives notice  of acceptance of its guarantee and notice of protest for nonpayment.         Section 2.02 Guarantee of Payment.    5347156.7                          2                                            

 

           Each of the Guarantors further agrees that its guarantee hereunder constitutes a guarantee   of payment when due (whether or not any bankruptcy or similar proceeding under any Debtor   Relief Law shall have stayed the accrual of collection of any of the Guaranteed Obligations or   operated as a discharge thereof) and not of collection, and waives any right to require that any   resort be had by the Administrative Agent or any other Secured Party to any Collateral or other   security held for the payment of any of the Guaranteed Obligations, or to any balance of any   deposit account or credit on the books of the Administrative Agent or any other Secured Party in   favor of any other Guarantor or any other Person.  The obligations of each Guarantor hereunder   are independent of the obligations of any other Guarantor or the Borrower, and a separate action   or actions may be brought and prosecuted against each Guarantor whether or not action is   brought against any other Guarantor or the Borrower and whether or not any other Guarantor or   the Borrower be joined in any such action or actions.  Any payment required to be made by a   Guarantor hereunder may be required by the Administrative Agent or any other Secured Party on   any number of occasions.          Section 2.03 No Limitations.                (a)   Except for termination of this Guaranty as expressly provided in Section   4.12 hereof (but without prejudice to Section 2.04 hereof), to the fullest extent permitted by   applicable Law, the obligations of each Guarantor hereunder shall not be subject to any   reduction, limitation, impairment or termination for any reason, including any claim of waiver,   release, surrender, alteration or compromise, and shall not be subject to any defense or set-off,  counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or  unenforceability of any of the Guaranteed Obligations, any impossibility in the performance of  any of the Guaranteed Obligations, or otherwise.  Without limiting the generality of the  foregoing, to the fullest extent permitted by applicable Law and except for termination of this  Guaranty in accordance with the terms of Section 4.12 hereof (but without prejudice to Section   2.04 hereof), the obligations of each Guarantor hereunder shall not be discharged, impaired or   otherwise affected by (i) the failure of the Administrative Agent, any other Secured Party or any  other Person to assert any claim or demand or to enforce any right or remedy under the  provisions of any Loan Document or otherwise; (ii) any rescission, waiver, amendment or   modification of, or any release from any of the terms or provisions of, any Loan Document or   any other agreement, including with respect to any other Guarantor under this Guaranty; (iii) the   release of, or any impairment of any security held by the Collateral Agent or any other Secured   Party for the Guaranteed Obligations; (iv) any default, failure or delay, willful or otherwise, in  the performance of the Guaranteed Obligations; (v) the failure to perfect any security interest in,  or the release of, any of the Collateral held by or on behalf of the Collateral Agent or any other  Secured Party; (vi) any change in the corporate existence, structure or ownership of any Loan  Party, the lack of legal existence of the Borrower or any other Guarantor or legal obligation to  discharge any of the Guaranteed Obligations by the Borrower or any other Guarantor for any  reason whatsoever, including, without limitation, in any insolvency, bankruptcy or  reorganization of any Loan Party; (vii) the existence of any claim, set-off or other rights that any   Guarantor may have at any time against the Borrower, the Administrative Agent, any other   Secured Party or any other Person, whether in connection with the Credit Agreement, the other   Loan Documents or any unrelated transaction; (viii) this Guaranty having been determined (on   whatsoever grounds) to be invalid, non-binding or unenforceable against any other Guarantor ab   initio or at any time after the Effective Date or (ix) any other circumstance (including statute of     5347156.7                          3                                            

 

   limitations), any act or omission that may in any manner or to any extent vary the risk of any  Guarantor or otherwise operate as a defense to, or discharge of, the Borrower, any Guarantor or  any other guarantor or surety as a matter of law or equity (in each case, other than the Discharge  of Obligations).  Until the termination of this Guaranty in accordance with the terms of Section  4.12 hereof (but without prejudice to Section 2.04 hereof), each Guarantor expressly authorizes  the applicable Secured Parties to take and hold Collateral for the payment and performance of  the Guaranteed Obligations, to exchange, waive or release any or all such Collateral (with or  without consideration), to enforce or apply such Collateral and direct the order and manner of  any sale thereof in their sole discretion or to release or substitute any one or more other  guarantors or obligors upon or in respect of the Guaranteed Obligations all without affecting the  obligations of any Guarantor hereunder.  Anything contained in this Guaranty to the contrary  notwithstanding, the obligations of each Guarantor under this Guaranty shall be limited to an  aggregate amount equal to the largest amount that would not render its obligations under this  Guaranty subject to avoidance as a fraudulent transfer or conveyance under Section 548 of the  Bankruptcy Code of the United States or any comparable provisions of any similar federal or  state law.               (b)   To the fullest extent permitted by applicable Law and except for  termination of this Guaranty in accordance with the terms of Section 4.12 hereof (but without  prejudice to Section 2.04 hereof), each Guarantor waives any defense based on or arising out of  any defense of the Borrower or any other Guarantor or the unenforceability of the Guaranteed  Obligations or any part thereof from any cause, or the cessation from any cause of the liability of  the Borrower or any other Guarantor, other than the Discharge of Obligations.  The  Administrative Agent and the other Secured Parties may in accordance with the terms of the  Collateral Documents, at their election, foreclose on any Collateral held by one or more of them  by one or more judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu  of foreclosure, compromise or adjust any part of the Guaranteed Obligations, make any other  accommodation with the Borrower or any other Guarantor or exercise any other right or remedy  available to them against any Guarantor, without affecting or impairing in any way the liability  of any Guarantor hereunder except to the extent the Discharge of Obligations has occurred.  To  the fullest extent permitted by applicable Law, each Guarantor waives any defense arising out of  any such election even though such election operates, pursuant to applicable Law, to impair or to  extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor  against the Borrower or any other Guarantor, as the case may be, or any Collateral.  To the  fullest extent permitted by applicable Law, each Guarantor waives any and all suretyship  defenses.         Section 2.04 Reinstatement.         Notwithstanding anything to the contrary contained in this Guaranty, each of the  Guarantors agrees that (a) its guarantee hereunder shall continue to be effective or be reinstated,  as the case may be, if at any time payment, or any part thereof, of any Guaranteed Obligation is  rescinded or must otherwise be restored by the Administrative Agent or any other Secured Party  upon the bankruptcy or reorganization (or any analogous proceeding in any jurisdiction) of the  Borrower or any other Guarantor or otherwise and (b) the provisions of this Section 2.04 shall  survive the termination of this Guaranty.    5347156.7                          4                                            

 

           Section 2.05 Agreement To Pay; Subrogation.          In furtherance of the foregoing and not in limitation of any other right that the   Administrative Agent or any other Secured Party has at law or in equity against any Guarantor   by virtue hereof, upon the failure of the Borrower or any other Guarantor to pay any Guaranteed   Obligation when and as the same shall become due, whether at maturity, by acceleration, after   notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or   cause to be paid, to the Administrative Agent for distribution to the applicable Secured Parties in   cash the amount of such unpaid Guaranteed Obligation.  Upon payment by any Guarantor of any   sums to the Administrative Agent as provided above, all rights of such Guarantor against the   Borrower or any other Guarantor arising as a result thereof by way of right of subrogation,   contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article III   hereof.          Section 2.06 Information.          Each Guarantor assumes all responsibility for being and keeping itself informed of the   Borrower’s and each other Guarantor’s financial condition and assets, and of all other   circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the   nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and   agrees that none of the Administrative Agent or the other Secured Parties will have any duty to   advise such Guarantor of information known to it or any of them regarding such circumstances   or risks.                                     ARTICLE III                        Indemnity, Subrogation and Subordination          Upon payment by any Guarantor of any Guaranteed Obligations, all rights of such   Guarantor against the Borrower or any other Guarantor arising as a result thereof by way of right   of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be   subordinate and junior in right of payment to, and be postponed until, the Discharge of   Obligations.  If any amount shall be paid to the Borrower or any other Guarantor in violation of   the foregoing restrictions on account of (i) such subrogation, contribution, reimbursement,  indemnity or similar right or (ii) any such indebtedness of the Borrower or any other Guarantor,  such amount shall be held in trust for the benefit of the Secured Parties and shall forthwith be  paid to the Administrative Agent to be credited against the payment of the Guaranteed  Obligations, whether matured or unmatured, in accordance with the terms of the Credit  Agreement and the other Loan Documents.  Subject to the foregoing, to the extent that any  Guarantor shall, under this Guaranty or the Credit Agreement as a joint and several obligor,  repay any of the Guaranteed Obligations constituting Loans or other advances made to or  Reimbursement Obligations owed by another Loan Party under the Credit Agreement (an  “Accommodation Payment”), then the Guarantor making such Accommodation Payment shall be   entitled to contribution and indemnification from, and be reimbursed by, each of the other   Guarantors in an amount equal to a fraction of such Accommodation Payment, the numerator of   which fraction is such other Guarantor’s Allocable Amount and the denominator of which is the   sum of the Allocable Amounts of all of the Guarantors; provided that such rights of contribution     5347156.7                          5                                            

 

     and indemnification shall be subordinated to the Discharge of Obligations.  As of any date of   determination, the “Allocable Amount” of each Guarantor shall be equal to the maximum   amount of liability for Accommodation Payments which could be asserted against such   Guarantor hereunder and under the Credit Agreement without (a) rendering such Guarantor   “insolvent” within the meaning of Section 101 (31) of the Bankruptcy Code of the United States,   Section 2 of the Uniform Fraudulent Transfer Act (“UFTA”) or Section 2 of the Uniform   Fraudulent Conveyance Act (“UFCA”), (b) leaving such Guarantor with unreasonably small   capital or assets, within the meaning of Section 548 of the Bankruptcy Code of the United States,   Section 4 of the UFTA, or Section 5 of the UFCA, or (c) leaving such Guarantor unable to pay  its debts as they become due within the meaning of Section 548 of the Bankruptcy Code of the  United States or Section 4 of the UFTA, or Section 5 of the UFCA.                                     ARTICLE IV                                     Miscellaneous          Section 4.01 Notices.          All communications and notices hereunder shall (except as otherwise expressly permitted   herein) be in writing and given as provided in Section 12.8 of the Credit Agreement.  All   communications and notice hereunder to a Guarantor shall be given in care of Holdings.          Section 4.02 Waivers; Amendment.                (a)   No failure by any Secured Party to exercise, and no delay by any such   Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan   Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right,   remedy, power or privilege hereunder preclude any other or further exercise thereof or the   exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and   privileges herein provided, and provided under each other Loan Document, are cumulative and   not exclusive of any rights, remedies, powers and privileges provided by Law.  No waiver of any   provision of any Loan Document or consent to any departure by any Loan Party therefrom shall   in any event be effective unless the same shall be permitted by paragraph (b) of this Section 4.02,   and then such waiver or consent shall be effective only in the specific instance and for the   purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan   or issuance of a Letter of Credit shall not be construed as a waiver of any Default or Event of   Default, regardless of whether any Loan Party may have had notice or knowledge of such   Default or Event of Default at the time.                (b)   Neither this Guaranty nor any provision hereof may be waived, amended   or modified except pursuant to an agreement or agreements in writing entered into by the   Administrative Agent and the Loan Party or Loan Parties with respect to which such waiver,   amendment or modification is to apply, subject to any consent required in accordance with   Section 12.1 of the Credit Agreement.          Section 4.03 Administrative Agent’s and Collateral Agent’s Fees and Expenses;   Indemnification.     5347156.7                          6                                            

 

                 (a)   Each Guarantor, jointly with the other Guarantors and severally, agrees to   reimburse the Administrative Agent and the Collateral Agent for its fees and expenses incurred   hereunder as and to the extent provided in Section 12.3 of the Credit Agreement; provided that   each reference therein to the “Borrower” shall be deemed to be a reference to “each Guarantor”.                (b)   Without limitation of its indemnification obligations under the other Loan   Documents, each Guarantor jointly and severally agrees to indemnify the Administrative Agent,   the Collateral Agent and the other Indemnitees (as defined in Section 12.4 of the Credit   Agreement) against, and hold each Indemnitee harmless from, any and all liabilities, losses,   damages, claims, and reasonable, documented and invoiced out-of-pocket fees and expenses  (including Attorney Costs) of any kind or nature whatsoever which may at any time be imposed  on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or  in connection with (but limited, in the case of Attorney Costs, to the reasonable, documented and  invoiced out-of-pocket fees, disbursements and other charges of counsel to the Administrative  Agent, one counsel to all Indemnitees taken as a whole and, if necessary, one local counsel for  all Indemnitees taken as a whole in each appropriate jurisdiction (which may include one special  counsel acting in multiple jurisdictions), and solely in the case of an actual or perceived conflict  of interest, where the Indemnitee affected by such conflict informs the Borrower and thereafter  retains its own counsel, one additional counsel for each group of affected Indemnitees similarly  situated taken as a whole) (i) the execution, delivery, enforcement, performance or  administration of this Guaranty or any other agreement, letter or instrument delivered in  connection with the transactions contemplated hereby or the consummation of the transactions  contemplated hereby, (ii) any actual or alleged presence or release of Hazardous Materials on or  from any property currently or formerly owned or operated by a Guarantor, or any  Environmental Liabilities, in each case arising out of the activities or operations of any  Guarantor, or, (iii) any actual or prospective claim, litigation, investigation or proceeding relating  to any of the foregoing, whether based on contract, tort or any other theory (including any  investigation of, preparation for, or defense of any pending or threatened claim, investigation,  litigation or proceeding) and regardless of whether any Indemnitee is a party thereto (all of the  foregoing, collectively, the “Indemnified Liabilities”); provided that such indemnity shall not, as   to any Indemnitee, be available to the extent that such liabilities, losses, damages, claims, costs,   expenses or disbursements resulted from (A) the gross negligence, bad faith or willful   misconduct of such Indemnitee or of any Related Indemnified Person or (B) any dispute solely   between or among Indemnitees other than any claims against an Indemnitee in its capacity or in   fulfilling its role as an administrative agent or arranger or any similar role under the Facility   (excluding their role as a Lender) and other than any claims arising out of any act or omission of   the Borrower or any of its Affiliates.  To the extent that the undertakings to indemnify and hold   harmless set forth in this Section 4.03(b) may be unenforceable in whole or in part because they   are violative of any applicable law or public policy, each Guarantor shall contribute the   maximum portion that such Guarantor is permitted to pay and satisfy under applicable law to the   payment and satisfaction of all Indemnified Liabilities incurred by the Indemnitees or any of   them.  No Indemnitee shall be liable for any damages arising from the use by others of any   information or other materials obtained through IntraLinks or other similar information   transmission systems in connection with this Guaranty, nor shall any Indemnitee or any Loan   Party have any liability for any special, punitive, indirect or consequential damages relating to   this Guaranty or arising out of its activities in connection herewith (whether before or after the   Effective Date) (other than, in the case of any Guarantor, in respect of any such damages     5347156.7                          7                                            

 

   incurred or paid by an Indemnitee to a third party).  In the case of an investigation, litigation or  other proceeding to which the indemnity in this Section 4.03(b) applies, such indemnity shall be  effective whether or not such investigation, litigation or proceeding is brought by any Guarantor,  its directors, stockholders or creditors or an Indemnitee or any other Person, whether or not any  Indemnitee is otherwise a party thereto and whether or not any of the transactions contemplated  hereunder or under any of the other Loan Documents is consummated.  All amounts due under  this Section 4.03(b) shall be paid within three (3) Business Days after written demand thereof  from the Administrative Agent or the Indemnitee entitled thereto.  The agreements in this  Section 4.03(b) shall survive the resignation of the Administrative Agent, the Collateral Agent,  or any Issuer, the replacement of any Lender and the Discharge of the Obligations.  This Section  4.03(b) shall not apply to Taxes, or amounts excluded from the definition of Taxes pursuant to  clauses (i) through (vii) of the first sentence of Section 3.1(a) of the Credit Agreement, that are  imposed with respect to payments to or for account of any Agent or any Lender under any Loan  Document, which shall be governed by Section 3.1 of the Credit Agreement. This Section  4.03(b) also shall not apply to Other Taxes or to taxes covered by Section 3.4 of the Credit  Agreement.               (c)   Any such amounts payable as provided hereunder shall be additional  Guaranteed Obligations guaranteed hereby and secured by the Collateral Documents.  The  provisions of this Section 4.03 shall remain operative and in full force and effect regardless of  the termination of this Guaranty, any other Loan Document or any Secured Hedge Agreement or  any Cash Management Services agreement, the consummation of the transactions contemplated  hereby, the repayment of any of the Guaranteed Obligations, the invalidity or unenforceability of  any term or provision of this Guaranty or any other Loan Document, any resignation of the  Administrative Agent or Collateral Agent or any document governing any of the Obligations  arising under any Secured Hedge Agreements or any Cash Management Obligations, or any  investigation made by or on behalf of the Administrative Agent or any other Secured Party.  All  amounts due under this Section 4.03 shall be payable within three (3) Business Days following  receipt by the Guarantors and the Borrower from the Administrative Agent of written demand  therefor.         Section 4.04 Successors and Assigns.         Whenever in this Guaranty any of the parties hereto is referred to, such reference shall be  deemed to include the permitted successors and assigns of such party; and all covenants,  promises and agreements by or on behalf of any Guarantor or any Secured Party that are  contained in this Guaranty shall bind and inure to the benefit of their respective permitted  successors and assigns.  Except as provided in Section 12.2 of the Credit Agreement, no  Guarantor may assign any of its rights or obligations hereunder without the written consent of  the Administrative Agent.         Section 4.05 Survival of Agreement.         All covenants, agreements, indemnities, representations and warranties made by the  Guarantors in the Loan Documents and in the certificates or other instruments delivered in  connection with or pursuant to this Guaranty or any other Loan Document shall be considered to  have been relied upon by the Secured Parties and shall survive the execution and delivery of the    5347156.7                          8                                            

 

   Loan Documents and the making of any Loans and the issuance of any Letters of Credit,  regardless of any investigation made by any Secured Party or on its behalf and notwithstanding  that any Secured Party may have had notice or knowledge of any Default or Event of Default or  incorrect representation or warranty at the time any credit is extended under the Credit  Agreement or any other Loan Document, and shall continue in full force and effect until this  Guaranty is terminated as provided in Section 4.12 hereof.         Section 4.06 Counterparts; Effectiveness; Several Agreement.         This Guaranty may be executed in counterparts (and by different parties hereto in  different counterparts), each of which shall constitute an original, but all of which when taken  together shall constitute a single contract.  This Guaranty shall become effective when it shall  have been executed by the Guarantors, the Administrative Agent and the Collateral Agent and  thereafter shall be binding upon and inure to the benefit of each Guarantor, the Administrative  Agent, the Collateral Agent, the other Secured Parties and their respective permitted successors  and assigns, subject to Section 4.04 hereof.  Delivery of an executed counterpart of a signature  page of this Guaranty by telecopy or other electronic imaging means (including in .pdf format  via electronic mail) shall be effective as delivery of a manually executed counterpart of this  Guaranty.  This Guaranty shall be construed as a separate agreement with respect to each  Guarantor and may be amended, restated, modified, supplemented, waived or released with  respect to any Guarantor without the approval of any other Guarantor and without affecting the  obligations of any other Guarantor hereunder.         Section 4.07 Severability.         If any provision of this Guaranty is held to be illegal, invalid or unenforceable, (a) the  legality, validity and enforceability of the remaining provisions of this Guaranty shall not be  affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to  replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect  of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.   The invalidity of a provision in a particular jurisdiction shall not invalidate or render  unenforceable such provision in any other jurisdiction.         Section 4.08 GOVERNING LAW, ETC.               (a)   THIS GUARANTY AND ANY CLAIMS, CONTROVERSY, DISPUTE  OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED  UPON, ARISING OUT OF OR RELATING TO THIS GUARANTY AND THE  TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK  (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF,  BUT INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS  LAW).                (b)   THE GUARANTORS, THE ADMINISTRATIVE AGENT AND THE  COLLATERAL AGENT EACH IRREVOCABLY AND UNCONDITIONALLY SUBMITS,  FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE    5347156.7                          9                                            

 

   COURTS OF THE STATE OF NEW YORK OR FEDERAL COURTS OF THE UNITED  STATES OF AMERICA SITTING IN NEW YORK COUNTY, AND ANY APPELLATE  COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF  OR RELATING TO THIS GUARANTY, OR FOR RECOGNITION OR ENFORCEMENT OF  ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND  UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH  ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH NEW  YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE  LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A  FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE  CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE  JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  EACH PARTY  HERETO AGREES THAT THE ADMINISTRATIVE AGENT AND THE OTHER SECURED  PARTIES RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY GUARANTOR IN  THE COURTS OF ANY OTHER JURISDICTION SOLELY IN CONNECTION WITH THE  EXERCISE OF ANY RIGHTS UNDER THIS GUARANTY OR THE ENFORCEMENT OF  ANY JUDGMENT.               (c)   EACH OF THE GUARANTORS, THE ADMINISTRATIVE AGENT  AND THE COLLATERAL AGENT EACH IRREVOCABLY AND UNCONDITIONALLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY  OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE  OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS  GUARANTY IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION.   EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE  FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN  INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR  PROCEEDING IN ANY SUCH COURT.         Section 4.09 WAIVER OF RIGHT TO TRIAL BY JURY.         EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE  FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY  HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR  INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE  TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,  TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT  NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS  REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON  WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE  FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER  PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY BY,  AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN  THIS SECTION.         Section 4.10 Headings.    5347156.7                          10                                           

 

           Article and Section headings and the Table of Contents used herein are for convenience   of reference only, are not part of this Guaranty and are not to affect the construction of, or to be   taken into consideration in interpreting, this Guaranty.          Section 4.11 Obligations Absolute.          All rights of the Collateral Agent, the Administrative Agent and the other Secured Parties   hereunder and all obligations of each Guarantor hereunder shall be absolute and unconditional   irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan   Document, any agreement with respect to any of the Guaranteed Obligations or any other   agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or  place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any  other amendment or waiver of or any consent to any departure from the Credit Agreement, any  other Loan Document, or any other agreement or instrument, (c) any release or amendment or  waiver of or consent under or departure from any guarantee guaranteeing all or any of the  Guaranteed Obligations or (d) subject only to termination of this Guaranty in accordance with  the terms of Section 4.12 hereof, but without prejudice to reinstatement rights under Section 2.04   hereof, any other circumstance that might otherwise constitute a defense available to, or a   discharge of, any Guarantor in respect of the Guaranteed Obligations or this Guaranty.          Section 4.12 Termination or Release.  This Guaranty and the Guarantees made herein   shall terminate with respect to all Guaranteed Obligations upon the Discharge of Obligations.          Section 4.13 Additional Subsidiaries.          Pursuant to Section 8.10 of the Credit Agreement, certain Subsidiaries of the Loan Parties   that are Wholly-Owned Subsidiaries that are Material Domestic Subsidiaries and not Excluded   Subsidiaries and that were not in existence on the date of the Credit Agreement are required to   enter in this Guaranty as Guarantors upon becoming Wholly-Owned Subsidiaries that are   Material Domestic Subsidiaries. Upon execution and delivery by the Administrative Agent and a   Wholly-Owned Subsidiary that is a Material Domestic Subsidiary of a Guaranty Supplement,   such Subsidiary shall become a Guarantor hereunder with the same force and effect as if   originally named as a Guarantor herein.  The execution and delivery of any such instrument shall   not require the consent of any other Guarantor hereunder.  The rights and obligations of each   Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any   new Guarantor as a party to this Guaranty.          Section 4.14 Recourse; Limited Obligations.          This Guaranty is made with full recourse to each Guarantor and pursuant to and upon all   the warranties, representations, covenants and agreements on the part of such Guarantor   contained herein, in the Credit Agreement and the other Loan Documents and otherwise in   writing in connection herewith or therewith.  It is the desire and intent of each Guarantor and   each applicable Secured Party that this Guaranty shall be enforced against each Guarantor to the   fullest extent permissible under applicable Law applied in each jurisdiction in which   enforcement is sought.                                   [Signature Pages Follow]    5347156.7                          11                                           

 

 

 

 

 

                             EXHIBIT I TO GUARANTY                                                                 FORM OF GUARANTY SUPPLEMENT         SUPPLEMENT NO. __ dated as of ________ __, 20__ , to the Guaranty dated as of  September 17, 2018, among PLANPRESCRIBER, INC., a Delaware corporation  (“PlanPrescriber”), the other Guarantors party thereto from time to time and ROYAL BANK OF  CANADA, as Administrative Agent and Collateral Agent for the Secured Parties (as amended,  restated, amended and restated, supplemented and/or otherwise modified from time to time, the  “Guaranty”).         A.    Reference is made to the Credit Agreement, dated as of September 17, 2018 (as  amended, restated, amended and restated, supplemented and/or otherwise modified from time to  time, the “Credit Agreement”), among eHealth, Inc., a Delaware corporation, eHealth Insurance  Services, Inc., a Delaware corporation (“eHealthInsurance”), Wealth, Health and Life Advisors,  LLC, a Texas limited liability company (“GoMedigap” and, together with eHealth,  eHealthInsurance and any other Person that may become a Borrower party to the Credit  Agreement referred to below, individually and collectively, the “Borrower”), the Guarantors, the  lenders party thereto, Royal Bank of Canada., as Administrative Agent and Collateral Agent, and  others.         B.    Capitalized terms used herein and not otherwise defined herein shall have the  meanings assigned to such terms in the Credit Agreement and the Guaranty, as applicable.         C.    The Guarantors have entered into the Guaranty in order to induce (x) the Lenders  to make Loans and (y) the Issuers to issue Letters of Credit.  Section 4.13 of the Guaranty  provides that additional Subsidiaries of the Guarantors may become Guarantors under the  Guaranty by execution and delivery of an instrument in the form of this Supplement.  The  undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement in accordance with  the requirements of the Credit Agreement to become a Guarantor under the Guaranty as  consideration for Loans previously made.         Accordingly, the Administrative Agent and the New Subsidiary agree as follows:         Section 1.  In accordance with Section 4.13 of the Guaranty, the New Subsidiary by its  signature below becomes a Guarantor under the Guaranty with the same force and effect as if  originally named therein as a Guarantor and the New Subsidiary hereby (a) agrees to all the  terms and provisions of the Guaranty applicable to it as a Guarantor thereunder and  (b) represents and warrants that the representations and warranties made by it as a Guarantor  thereunder are true and correct on and as of the date hereof, provided that, to the extent that such  representations and warranties specifically refer to an earlier date, they shall be true and correct  in all respects as of such earlier date.  Each reference to a “Guarantor” in the Guaranty shall be  deemed to include the New Subsidiary as if originally named therein as a Guarantor.  The  Guaranty is hereby incorporated herein by reference.         Section 2.  The New Subsidiary represents and warrants to the Administrative Agent and  the other Secured Parties that this Supplement has been duly authorized, executed and delivered    5347156.7  

 

   by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance  with its terms, except as such enforceability may be limited by Debtor Relief Laws and by  general principles of equity.         Section 3.  This Supplement may be executed in counterparts (and by different parties  hereto on different counterparts), each of which shall constitute an original, but all of which  when taken together shall constitute a single contract.  This Supplement shall become effective  when the Administrative Agent shall have received a counterpart of this Supplement that bears  the signature of the New Subsidiary and the Administrative Agent has executed a counterpart  hereof.  Delivery of an executed counterpart of a signature page of this Supplement by telecopy  or other electronic imaging means (including in .pdf format via electronic mail) shall be effective  as delivery of a manually executed counterpart of this Supplement.         Section 4.  The Guaranty shall remain in full force and effect.         Section 5.  (a) THIS SUPPLEMENT AND ANY CLAIMS, CONTROVERSY,  DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR  OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SUPPLEMENT  AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY,  AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK  (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF,  BUT INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS  LAW).         (b) EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY  SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF  THE COURTS OF THE STATE OF NEW YORK OR FEDERAL COURTS OF THE UNITED  STATES OF AMERICA SITTING IN NEW YORK COUNTY, AND ANY APPELLATE  COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF  OR RELATING TO THIS SUPPLEMENT, OR FOR RECOGNITION OR ENFORCEMENT  OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND  UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH  ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH NEW  YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE  LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A  FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE  CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE  JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  EACH PARTY  HERETO AGREES THAT THE ADMINISTRATIVE AGENT AND THE OTHER SECURED  PARTIES RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY GUARANTOR IN  THE COURTS OF ANY OTHER JURISDICTION SOLELY IN CONNECTION WITH THE  EXERCISE OF ANY RIGHTS UNDER THIS SUPPLEMENT OR THE ENFORCEMENT OF  ANY JUDGMENT.         (c) EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES,  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION    5347156.7  

 

   THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY  ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENT  IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION.  EACH OF THE  PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT  PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM  TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.         (d)   WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY HERETO  HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY  APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY  LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR  RELATING TO THIS SUPPLEMENT OR THE TRANSACTIONS CONTEMPLATED  HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).   EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR  ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR  OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF  LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)  ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN  INDUCED TO ENTER INTO THIS SUPPLEMENT BY, AMONG OTHER THINGS,  THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.         Section 6.  If any provision of this Supplement is held to be illegal, invalid or  unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this  Supplement shall not be affected or impaired thereby and (b) the parties shall endeavor in good  faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions  the economic effect of which comes as close as possible to that of the illegal, invalid or  unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not  invalidate or render unenforceable such provision in any other jurisdiction.         Section 7.  All communications and notices hereunder shall be in writing and given as  provided in Section 4.01 of the Guaranty.         Section 8.  The New Subsidiary agrees to reimburse the Administrative Agent for its  reasonable out-of-pocket expenses in connection with this Supplement, as and to the extent,  provided in Section 4.03(a) of the Guaranty.    5347156.7  

 

         IN WITNESS WHEREOF, the New Subsidiary, the Administrative Agent and the  Collateral Agent have duly executed this Supplement to the Guaranty as of the day and year first  above written.                                    [NAME OF NEW SUBSIDIARY]                                    By:                                                                           Name:                                   Title:                                    ROYAL BANK OF CANADA, as Administrative                                   Agent and Collateral Agent                                    By:                                                                           Name:                                   Title:       5347156.7

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