Document:

EXHIBIT
      10.3

    

    FIRST
      AMENDMENT TO SHAREHOLDERS AGREEMENT

     

    THIS
      FIRST AMENDMENT TO SHAREHOLDERS AGREMEENT (this “Amendment”)
      is
      entered into as of May 1, 2008 by and among General Finance Corporation, a
      Delaware corporation with its principal place of business located at 39 East
      Union Street, Pasadena, California 91103 (“GFC”),
      Bison
      Capital Australia, L.P., a Delaware limited partnership with its principal
      place
      of business located at 10877 Wilshire Boulevard, Suite 1520, Los Angeles,
      California 90024 (“Bison-GE”),
      and
      GFN U.S. Australasia Holdings, Inc.,
      a
      Delaware corporation with its principal place of business located at 39 East
      Union Street, Pasadena, California 91103 (the “Company”).

    

    RECITALS

    

    A. GFC,
      Bison-GE and Company entered into that certain Shareholders Agreement dated
      September 13, 2007 (the “Agreement”).

    

    B. Each
      of
      the parties hereto desires to amend the Agreement as set forth herein, and
      desires that, except as set forth in this Amendment, the Agreement shall remain
      in full force and effect.

    

    NOW
      THEREFORE, in consideration of the premises and the respective representations,
      warranties, covenants, agreements and conditions hereinafter set forth, and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the parties hereto hereby agree as follows:

    

    1. Definitions.
      Capitalized terms used herein and not otherwise defined herein shall have the
      meanings ascribed to them in the Agreement (without regard to this
      Amendment).

    

    2. Amendment.
      The
      Agreement is hereby amended as follows on and as of, and only upon, the date
      hereof:

    

    (a) The
      definition of “Permitted Expenses” is amended and restated as
      follows:“’Permitted
      Expenses’
      means
      payments of up to $1,500,000 in any 12-month period made by the Company Group
      to
      GFC and/or a GFC Related Party for administrative, expenses, overhead charges,
      support charges and similar expenses; provided, that if at any time GFC or
      a GFC
      Related Party acquires or establishes another business or company, Permitted
      Expenses in any 12-month period shall be multiplied by the Reduction Percentage
      on a prospective basis. For purposes of the foregoing, the "Reduction
      Percentage"
      shall
      be that percentage obtained by dividing the revenues of the Covered Business
      by
      the total revenues of GFC (determined on a consolidated basis in accordance
      with
      GAAP); provided that Permitted Expenses shall never be less than US $750,000.
      Payments on debt owed to GFC and/or the GFC Related Parties, and dividends
      and
      distributions to Shareholders with respect to their Shares, are not expenses
      included in Permitted Expenses so long as (x) such debt or Shares are, in each
      case, issued with the approval of Bison-GE (to the extent such approval is
      required hereunder), and (y) such debt or Shares were not issued in
      consideration of the forgiveness, payment or deferral of administrative
      expense payments, reimbursements or distributions made by any member of the
      Company Group to GFC or any GFC Related Party.” 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      10.3

    

    3. References.
      All
      references in this Amendment to “Amendment,” “herein,” “hereof,” or terms of
      like import referring to the Amendment or any portion thereof are hereby amended
      to refer to the Agreement as amended by this Amendment.

    

    4. No
      Implied Amendments.
      Except
      as expressly provided herein, the Waiver is not being amended, supplemented,
      or
      otherwise modified, and the Waiver shall continue in force and effect in
      accordance with its terms.

    

    5. Counterparts.
      This
      Amendment may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all such counterparts together shall constitute but
      one
      and the same agreement.

    

    6. Successors
      and Assigns.
      This
      Amendment shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns.

    

    7. Governing
      Law.
      This
      Amendment shall be governed by and construed in accordance with the internal
      laws (and not the law of conflicts) of the State of California.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      10.3

    

    [SIGNATURE
      PAGE TO FIRST AMENDMENT TO SHAREHOLDERS AGREEMENT]

    

    IN
      WITNESS WHEREOF, each of the parties hereto has executed this Amendment, or
      caused this Amendment to be executed on its behalf by a representative duly
      authorized, as of the date first above written.

    

    
      	
              GENERAL
                FINANCE CORPORATION,

            
	
              a
                Delaware corporation

            
	 
	
              By

            	 
	 	
              John
                O. Johnson

              Chief
                Operating Officer

            

    

    

    
      	
              BISON
                CAPITAL AUSTRALIA, L.P.,

              a
                Delaware limited partnership

            
	
              By:

            	
              BISON
                CAPITAL AUSTRALIA GP, LLC,

              its
                general partner

            

    

    

    
      	
              By:

            	 
	 	
              Douglas
                B. Trussler

              Managing
                Member

            

    

    

    
      	
              GFN
                U.S. AUSTRALASIA HOLDINGS, INC.,

            
	
              a
                Delaware corporation

            
	 
	
              By

            	 
	 	
              John
                O. Johnson

              Chief
                Operating OfficerEXHIBIT
      10.4

     

    SECURITY
      AGREEMENT

     

    THIS
      SECURITY AGREEMENT (as amended from time to time, this "Agreement")
      dated
      as of May 1, 2008 is made by (i) GFN AUSTRALASIA FINANCE PTY LTD, an Australian
      corporation ("Company"),
      and
      (ii) the Subsidiaries of the Company that may from time to time become party
      hereto (collectively, the "Grantors")
      in
      favor of BISON CAPITAL AUSTRALIA, L.P., a Delaware limited partnership
      ("Bison")
      ("Purchaser").

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      Company intends to deliver to Purchaser a Secured Senior Subordinated Promissory
      Note dated as of even date herewith (the “Note”)
      and to
      enter into that certain First Amendment to Securities Purchase Agreement dated
      as of even date herewith and that certain First Amendment to Shareholders
      Agreement dated as of even date herewith (collectively, the “Transactions”).
      Execution, delivery and performance of this Agreement is one of the conditions
      to Bison's obligation to consummate the Transactions; 

     

      WHEREAS,
      Company, Purchaser and the Grantors entered into that certain Securities
      Purchase Agreement dated as of September 13, 2007 (the “Purchase
      Agreement”);

     

    WHEREAS,
      in order to induce Purchaser to enter into the Transactions, each Grantor has
      agreed to grant a continuing Lien on the Collateral (as hereinafter defined)
      to
      secure the Obligations to Purchaser (as hereinafter defined).

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants herein
      contained and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties hereto agree as
      follows:

     

    1. DEFINED
      TERMS.
      The
      following terms shall have the following respective meanings:

     

    "Account
      Debtor"
      means
      an account debtor as defined in the UCC.

     

    "Accounts"
      means
      all of each Grantor's now owned or hereafter acquired or arising accounts,
      as
      defined in the UCC, including any rights to payment for the sale or lease of
      goods or rendition of services, whether or not they have been earned by
      performance, and all medical receivables.

     

    "Assigned
      Contracts"
      means,
      collectively, all of each Grantor's rights and remedies under, and all moneys
      and claims for money due or to become due to such Grantor under any material
      contracts, and any and all amendments, supplements, extensions, and renewals
      thereof including all rights and claims of such Grantor now or hereafter
      existing: (i) under any insurance, indemnities, warranties, and guarantees
      provided for or arising out of or in connection with any of the foregoing
      agreements; (ii) for any damages arising out of or for breach or default under
      or in connection with any of the foregoing contracts; (iii) to all other amounts
      from time to time paid or payable under or in connection with any of the
      foregoing agreements; or (iv) to exercise or enforce any and all covenants,
      remedies, powers and privileges thereunder.

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    "Chattel
      Paper"
      means
      all of each Grantor's now owned or hereafter acquired chattel paper, as defined
      in the UCC, including electronic chattel paper.

     

    "Documents"
      means
      all documents, as defined in the UCC, including bills of lading, warehouse
      receipts or other documents of title, now owned or hereafter acquired by each
      Grantor.

     

    "Equipment"
      means
      all of each Grantor's now owned and hereafter acquired machinery, equipment,
      furniture, furnishings, fixtures, and other tangible personal property (except
      Inventory), including embedded software, office equipment, as well as all of
      such types of property leased by such Grantor and all of such Grantor's rights
      and interests with respect thereto under such leases (including, without
      limitation, options to purchase); together with all present and future additions
      and accessions thereto, replacements therefor, component and auxiliary parts
      and
      supplies used or to be used in connection therewith, and all substitutes for
      any
      of the foregoing, and all manuals, drawings, instructions, warranties and rights
      with respect thereto; wherever any of the foregoing is located.

     

    "Event
      of Default"
      has the
      meaning set forth in Section 19 of this Agreement.

     

    "General
      Intangibles"
      means
      all of each Grantor's now owned or hereafter acquired general intangibles (as
      defined in the UCC), choses in action and causes of action and all other
      intangible personal property of such Grantor of every kind and nature (other
      than Accounts), including, without limitation, all contract rights, payment
      intangibles, Proprietary Rights, corporate or other business records,
      inventions, designs, blueprints, plans, specifications, patents, patent
      applications, trademarks, service marks, trade names, trade secrets, goodwill,
      copyrights, computer software, customer lists, registrations, licenses,
      franchises, tax refund claims, any funds which may become due to such Grantor
      in
      connection with the termination of any employee benefit plan or any rights
      thereto and any other amounts payable to such Grantor from any employee benefit
      plan, rights and claims against carriers and shippers, rights to
      indemnification, business interruption insurance and proceeds thereof, property,
      casualty or any similar type of insurance and any proceeds thereof, proceeds
      of
      insurance covering the lives of key employees on which such Grantor is
      beneficiary, rights to receive dividends, distributions, cash, Instruments
      and
      other property in respect of or in exchange for pledged equity interests or
      Investment Property and any letter of credit, guarantee, claim, security
      interest or other security held by or granted to such Grantor.

     

    "Instruments"
      means
      all instruments, as defined in the UCC, now owned or hereafter acquired by
      each
      Grantor.

     

    "Inventory"
      means
      all of each Grantor's now owned and hereafter acquired inventory (as defined
      in
      the UCC), goods (as defined in the UCC) and merchandise, wherever located,
      to be
      furnished under any contract of service or held for sale or lease, all returned
      goods, raw materials, work-in-process, finished goods (including embedded
      software), other materials and supplies of any kind, nature or description
      which
      are used or consumed in such Grantor's business or used in connection with
      the
      packing, shipping, advertising, selling or finishing of such goods, merchandise,
      and all documents of title or other Documents representing
      them.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    "Investment
      Property"
      means
      all of each Grantor's right, title and interest in and to any and all:
      (a) securities whether certificated or uncertificated; (b) securities
      entitlements; (c) securities accounts; (d) commodity contracts; or
      (e) commodity accounts.

     

    "Letter-of-Credit
      Rights"
      means
      all of each Grantor's right, title and interest in and to any and all
      letter-of-credit rights, as defined in the UCC.

     

    "Obligations
      to Purchaser"
      has the
      meaning set forth in the Purchase Agreement.

     

    "Payment
      Account"
      means
      each bank account, if any, established pursuant to this Agreement, to which
      the
      proceeds of Accounts and other Collateral are deposited or credited, and which
      is maintained in the name of Purchaser or a Grantor, as Purchaser may determine,
      on terms acceptable to Purchaser.

     

    "Proprietary
      Rights"
      means
      all of each Grantor's now owned and hereafter arising or acquired: licenses,
      franchises, permits, patents, patent rights, copyrights, works which are the
      subject matter of copyrights, trademarks, service marks, trade names, trade
      styles, patent, trademark and service mark applications, and all licenses and
      rights related to any of the foregoing; all other rights under any of the
      foregoing; all extensions, renewals, reissues, divisions, continuations, and
      continuations-in-part of any of the foregoing; and all rights to sue for past,
      present and future infringement of any of the foregoing.

     

    "Supporting
      Obligations"
      means
      all supporting obligations, as defined in the UCC.

     

    "Tort
      Claims"
      means
      each Grantor's claims in tort now existing or hereafter arising, including,
      without limitation, any commercial tort claim (as defined in the
      UCC).

     

    "UCC"
      means
      the Uniform Commercial Code, as in effect from time to time, of the State of
      California or of any other state the laws of which are required as a result
      thereof to be applied in connection with the issue of perfection of security
      interests.

     

    All
      other
      capitalized terms used but not otherwise defined herein have the meanings given
      to them in the Purchase Agreement. All other undefined terms contained in this
      Agreement, unless the context indicates otherwise, have the meanings provided
      for by the UCC to the extent the same are used or defined therein.

     

    2. GRANT
      OF LIEN.

     

    (a) As
      security for all Obligations to Purchaser, each Grantor hereby grants to
      Purchaser a continuing first priority (subject to the proper filing of financing
      statements), security interest in, lien on, assignment of and right of set-off
      against, all assets of each Grantor of any kind, whether now owned or existing
      or hereafter acquired or arising, regardless of where located (the "Collateral"),
      including, without limitation, the following:

     

    (i) all
      Accounts;

     

    (ii) all
      Inventory;

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    (iii) all
      contract rights, including Assigned Contracts;

     

    (iv) all
      Chattel Paper;

     

    (v) all
      Documents;

     

    (vi) all
      Instruments;

     

    (vii) all
      Supporting Obligations;

     

    (viii) all
      General Intangibles;

     

    (ix) all
      Equipment;

     

    (x) all
      Investment Property;

     

    (xi) all
      Letter-of-Credit Rights;

     

    (xii) all
      money, cash, cash equivalents, securities and other property of any kind of
      such
      Grantor held directly or indirectly by Grantor;

     

    (xiii) all
      of
      such Grantor's deposit accounts, credits, and balances with any financial
      institution with which such Grantor maintains deposits, including any Payment
      Accounts;

     

    (xiv) all
      Tort
      Claims;

     

    (xv) all
      books, records and other property related to or referring to any of the
      foregoing, including books, records, account ledgers, data processing records,
      computer software and other property and General Intangibles at any time
      evidencing or relating to any of the foregoing; and

     

    (xvi) all
      accessions to, substitutions for and replacements, products and proceeds of
      any
      of the foregoing, including, but not limited to, proceeds of any insurance
      policies, claims against third parties, and condemnation or requisition payments
      with respect to all or any of the foregoing.

     

    (b) All
      of
      the Obligations to Purchaser shall be secured by all of the
      Collateral.

     

    3. PERFECTION AND PROTECTION OF SECURITY INTEREST.

     

    (a) Each
      Grantor shall, at its expense, perform all steps requested by Purchaser at
      any
      time to perfect, maintain, protect, and enforce Purchaser's Liens, including:
      (i) filing financing or continuation statements, and amendments thereof, in
      form
      and substance reasonably satisfactory to Purchaser; (ii) delivering to
      Purchaser the originals of all Instruments, Documents, and Chattel Paper, and
      all other Collateral of which Purchaser reasonably determines it should have
      physical possession in order to perfect and protect Purchaser's security
      interest therein, duly pledged, endorsed or assigned to Purchaser without
      restriction; (iii) delivering to Purchaser warehouse receipts covering any
      portion of the Collateral located in warehouses and for which warehouse receipts
      are issued and certificates of title covering any portion of the Collateral
      for
      which certificates of title have been issued; (iv) when an Event of Default
      has occurred and is continuing, transferring Inventory to warehouses or other
      locations designated by Purchaser; (v) placing notations on such Grantor's
      books of account to disclose Purchaser's security interest; (vi) obtaining
      control agreements from securities intermediaries with respect to financial
      assets in the possession of securities intermediaries; (vii) assigning and
      delivering to Purchaser all Supporting Obligations, including letters of credit
      on which such Grantor is named as beneficiary with the written consent of the
      issuer thereof; and (viii) taking such other steps as are reasonably deemed
      necessary or desirable by Purchaser to maintain and protect Purchaser's Liens.
      To the extent permitted by applicable law, Purchaser may file, without such
      Grantor's signature, one or more financing statements disclosing Purchaser's
      Liens. Each Grantor agrees that a carbon, photographic, photo static, or other
      reproduction of this Agreement or of a financing statement is sufficient as
      a
      financing statement.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (b) If
      any
      Collateral exceeding
      $100,000 in value is at any time in the possession or control of any
      warehouseman, bailee or any Grantor's agents or processors, then such Grantor
      shall notify Purchaser thereof and shall obtain a bailee letter acknowledged
      by
      the bailee that notifies such Person of Purchaser's security interest in such
      Collateral and instructs such Person to hold all such Collateral for Purchaser's
      account subject to Purchaser's instructions. If at any time any Collateral
      exceeding $100,000 in value is located in any operating facility of a Grantor
      that is leased by such Grantor, then the Grantor shall obtain written landlord
      lien waivers or subordinations, in form and substance reasonably satisfactory
      to
      Purchaser, that waives or subordinates all present and future Liens which the
      owner or lessor of such premises may be entitled to assert against the
      Collateral.

     

    (c) From
      time
      to time, each Grantor shall, upon Purchaser's request, execute and deliver
      confirmatory written instruments pledging to Purchaser the Collateral, but
      such
      Grantor's failure to do so shall not affect or limit any security interest
      or
      any other rights of Purchaser in and to the Collateral with respect to such
      Grantor. So long as the Purchase Agreement is in effect and until all
      Obligations to Purchaser have been fully satisfied, Purchaser's Liens shall
      continue in full force and effect in all Collateral (whether or not deemed
      eligible as the basis for any advance, loan, extension of credit, or other
      financial accommodation).

     

    (d) Each
      Grantor hereby represents and warrants to Purchaser that, as of the date hereof
      and to each Grantor's knowledge, such Grantor has no Tort Claims, except as
      set
      forth on Schedule IV.
      Each
      Grantor shall notify Purchaser on no less than a quarterly basis of any Tort
      Claims known to such Grantor and which arise following the date hereof and
      such
      Tort Claims shall be added to Schedule IV.

     

    4. LOCATION OF COLLATERAL.
      Each
      Grantor represents and warrants to Purchaser that: (a)  Schedule I
      is a
      correct and complete list of such Grantor's chief executive office, the location
      of its books and records, the locations of the Collateral, and the locations
      of
      all of its other places of business; and (b) Schedule I
      correctly identifies any of such facilities and locations that are not owned
      by
      such Grantor and sets forth the names of the owners and lessors or sublessors
      of
      such facilities and locations. Each Grantor covenants and agrees that it will
      not (i) maintain any Collateral at any location other than those locations
      listed for such Grantor on Schedule I,
      (ii) otherwise change or add to any of such locations, or (iii) change
      the location of its chief executive office from the location identified in
      Schedule I,
      unless
      (with respect to each of clauses (i) through (iii)) such Grantor gives Purchaser
      at least thirty (30) days' prior written notice thereof and executes any
      and all financing statements and other documents that Purchaser reasonably
      requests in connection therewith. Without limiting the foregoing, each Grantor
      represents that all of its Inventory (other than Inventory in transit) is,
      and
      covenants that all of its Inventory will be, located either (A) on premises
      owned by a Grantor, (B) on premises leased by a Grantor, provided that
      Purchaser has received an executed landlord waiver from the landlord of such
      premises in form and substance satisfactory to Purchaser, or (C) in a
      warehouse or with a bailee, provided that Purchaser has received an executed
      bailee letter from the applicable Person in form and substance satisfactory
      to
      Purchaser.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    5. JURISDICTION
      OF ORGANIZATION; CHANGES.
      Each
      Grantor's name as it appears in official filings in the state of its
      incorporation or other organization, the type of entity of each Grantor
      (including corporation, partnership, limited partnership or limited liability
      company), organizational identification number issued by each Grantor's state
      of
      incorporation or organization or a statement that no such number has been issued
      and each Grantor's state of organization or incorporation, are set forth in
      Schedule II
      hereto.
      Each Grantor has only one state of incorporation or organization. The Grantors
      may amend Schedule
      II
      in
      connection with and pursuant to certain transactions permitted by the Purchase
      Agreement.

     

    6. TITLE
      TO, LIENS ON, AND SALE AND USE OF COLLATERAL.
      Each
      Grantor shall (a) use, store, and maintain the Collateral with all reasonable
      care in all material respects, ordinary wear and tear excepted, and (b) shall
      use such Collateral for lawful purposes only.

     

    7. APPRAISALS.
      Each
      Grantor shall, at its expense and upon Purchaser's request, provide Purchaser
      with appraisals or updates thereof of any or all of the Collateral from an
      appraiser, and prepared on a basis satisfactory to Purchaser, such appraisals
      and updates to include, without limitation, information required by applicable
      law and regulation and by the internal policies of Purchaser.

     

    8. ACCESS
      AND EXAMINATION.
      (a)
      Purchaser may at all reasonable times have access to, examine, audit, make
      extracts from or copies of and inspect any or all of a Grantor's records, files,
      and books of account and the Collateral, and, so long as there is no
      unreasonable interference with such Grantor's business, discuss such Grantor's
      affairs with such Grantor's officers and management; (b) each Grantor will
      deliver to Purchaser any instrument necessary for Purchaser to obtain records
      from any service bureau maintaining records for such Grantor; (c) Purchaser
      may,
      at a Grantor's expense, make copies of all of such Grantor's books and records,
      or require such Grantor to deliver such copies to Purchaser; (d) Purchaser
      may,
      without expense to Purchaser, use such of the Grantors' respective personnel,
      supplies, and real property as may be reasonably necessary for maintaining
      or
      enforcing Purchaser's Liens. Purchaser shall have the right, at any time, in
      Purchaser's name or in the name of a nominee of Purchaser, to verify the
      validity, amount or any other matter relating to the Accounts, Inventory, or
      other Collateral, by mail, telephone, or otherwise.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    9. COLLATERAL
      REPORTING.
      Each
      Grantor shall provide Purchaser with reports with respect to the Collateral
      as
      Purchaser reasonably requests.

     

    10. COLLECTION
      OF ACCOUNTS; PAYMENTS.

     

    (a) If
      sales
      of Inventory are made or services are rendered for cash, such Grantor shall
      immediately deliver to Purchaser or deposit into a Payment Account the cash
      which such Grantor receives for such sales.

     

    (b) All
      payments, including immediately available funds received by Purchaser at a
      bank
      account designated by it, will be Purchaser's sole property for its benefit
      and
      will be credited to the repayment of the Obligations to Purchaser to the extent
      of such funds received one (1) Business Day after Purchaser's receipt of
      immediately available funds.

     

    (c) In
      the
      event the Grantors repay all of the Obligations to Purchaser upon the
      termination of the Purchase Agreement or upon acceleration of the Obligations
      to
      Purchaser, other than through Purchaser's receipt of payments on account of
      the
      Accounts or proceeds of the other Collateral, such payment will be credited
      (conditioned upon final collection) to the Grantors' account one (1)
      Business Day after Purchaser's receipt of immediately available
      funds.

     

    11. INVENTORY;
      PERPETUAL INVENTORY.
      Each
      Grantor represents and warrants to Purchaser and agrees with Purchaser that
      all
      of the Inventory owned by such Grantor is and will be held for sale or lease,
      or
      to be furnished in connection with the rendition of services, in the ordinary
      course of such Grantor's business, and is and will be fit for such purposes.
      Each Grantor will keep its Inventory in good and marketable condition, except
      for damaged or defective goods arising in the ordinary course of such Grantor's
      business. Each Grantor will not, without the prior written consent of Purchaser,
      acquire or accept any Inventory on consignment or approval. Each Grantor will
      conduct a physical count of the Inventory at least once per fiscal year of
      the
      Company, and after and during the continuation of an Event of Default, at such
      other times as Purchaser requests. Notwithstanding the foregoing sentence,
      a
      Grantor's obligation to conduct a yearly physical count of the Inventory shall
      be satisfied for such year if such Grantor conducts an appraisal (in such year)
      of the Inventory for the Purchaser (though the obligation to conduct a physical
      count at such times as Purchaser requests during an Event of Default shall
      not
      be affected by this sentence).  Each
      Grantor will maintain a perpetual inventory reporting system at all times.
      Each
      Grantor will not, without Purchaser's written consent, sell any Inventory on
      a
      bill-and-hold, guaranteed sale, sale and return, sale on approval, consignment,
      or other repurchase or return basis.

     

    12. EQUIPMENT.

     

    (a) Each
      Grantor represents and warrants to Purchaser and agrees with Purchaser that
      all
      of the Equipment owned by such Grantor is and will be used or held for use
      in
      such Grantor's business, and is and will be fit for such purposes. Each Grantor
      shall keep and maintain its Equipment in good operating condition and repair
      (ordinary wear and tear excepted) and shall make all necessary replacements
      thereof.

     

    (b) Each
      Grantor shall promptly inform Purchaser of any material additions to or
      deletions from the Equipment. Each Grantor shall not permit any Equipment to
      become a fixture with respect to real property or to become an accession with
      respect to other personal property with respect to which real or personal
      property Purchaser does not have a Lien. Each Grantor will not, without
      Purchaser's prior written consent, alter or remove any identifying symbol or
      number on any of such Grantor's Equipment constituting
      Collateral.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (c) A
      Grantor
      may sell or dispose of old or obsolete Equipment in the ordinary course of
      business.

     

    (d) Except
      as
      set forth in the Purchase Agreement, each Grantor shall not, without Purchaser's
      prior written consent, sell, lease as a lessor, or otherwise dispose of any
      of
      such Grantor's Equipment.

     

    13. ASSIGNED
      CONTRACTS.
      Each
      Grantor shall fully perform all of its obligations under each of the Assigned
      Contracts, and shall enforce all of its rights and remedies thereunder;
      provided, however, that such Grantor shall not take any action or fail to take
      any action with respect to its Assigned Contracts which would cause the
      termination of a material Assigned Contract. Notwithstanding the foregoing
      sentence, each Grantor may take such action as is appropriate in a good faith
      dispute with respect to an Assigned Contract (including electing not to comply
      with the terms of an Assigned Contract). Without
      limiting the generality of this Section, such Grantor shall take all action
      necessary or appropriate to permit, and shall not take any action which would
      have any materially adverse effect upon, the full enforcement of all
      indemnification rights under its Assigned Contracts. Each Grantor shall notify
      Purchaser in writing, promptly after any Grantor becomes aware thereof, of
      any
      event or fact which could give rise to a material claim by it for
      indemnification under any of its Assigned Contracts, and shall diligently pursue
      such right and report to Purchaser on all further developments with respect
      thereto. If an Event of Default has occurred and is continuing, each Grantor
      shall remit directly to Purchaser for application to the Obligations to
      Purchaser in such order as Purchaser shall determine, all amounts received
      by
      such Grantor as indemnification or otherwise pursuant to its Assigned Contracts.
      If an Event of Default has occurred and is continuing, Purchaser may directly
      enforce such right in its own or such Grantor's name and may enter into such
      settlements or other agreements with respect thereto as Purchaser shall
      determine. In any suit, proceeding or action brought by Purchaser under any
      Assigned Contract for any sum owing thereunder or to enforce any provision
      thereof, such Grantor shall indemnify and hold Purchaser harmless from and
      against all expense, loss or damage suffered by reason of any defense, setoff,
      counterclaims, recoupment, or reduction of liability whatsoever of the obligor
      thereunder arising out of a breach by such Grantor of any obligation thereunder
      or arising out of any other agreement, indebtedness or liability at any time
      owing from such Grantor to or in favor of such obligor or its successors.
      Notwithstanding any provision hereof to the contrary, such Grantor shall at
      all
      times remain liable to observe and perform all of its duties and obligations
      under its Assigned Contracts, and Purchaser's exercise of any of its rights
      with
      respect to the Collateral shall not release such Grantor from any of such duties
      and obligations. Purchaser shall not be obligated to perform or fulfill any
      of
      such Grantor's duties or obligations under its Assigned Contracts or to make
      any
      payment thereunder, or to make any inquiry as to the nature or sufficiency
      of
      any payment or property received by it thereunder or the sufficiency of
      performance by any party thereunder, or to present or file any claim, or to
      take
      any action to collect or enforce any performance, any payment of any amounts,
      or
      any delivery of any property.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    14. RIGHT TO CURE.
      Purchaser may, in its discretion, pay any amount or do any act required of
      such
      Grantor hereunder, under the Purchase Agreement or under any Related Agreement
      in order to preserve, protect, maintain or enforce the Obligations to Purchaser,
      the Collateral or Purchaser's Liens therein, if such Grantor, after notice
      thereof and within the applicable cure period, fails to pay or do, including
      payment of any judgment against such Grantor, any insurance premium, any
      warehouse charge, any finishing or processing charge, any landlord's or bailee's
      claim, and any other Lien upon or with respect to the Collateral. All payments
      that Purchaser makes under this Section 14
      and all
      out-of-pocket costs and expenses that Purchaser pays or incurs in connection
      with any action taken by it hereunder shall be charged to such Grantor's account
      and shall be deemed included in the Obligations to Purchaser. Any payment made
      or other action taken by Purchaser under this Section 14
      shall be
      without prejudice to any right to assert an Event of Default hereunder and
      to
      proceed thereafter as herein provided.

     

    15. POWER OF ATTORNEY.
      Each
      Grantor hereby appoints Purchaser and its designee as such Grantor's
      attorney-in-fact in its place and stead, with power: (a) to endorse such
      Grantor's name on any checks, notes, acceptances, money orders, or other forms
      of payment or security that come into Purchaser's possession; (b) to sign
      such Grantor's name on any invoice, bill of lading, warehouse receipt or other
      negotiable or non-negotiable Document constituting Collateral, on drafts against
      customers, on assignments of Accounts, on notices of assignment, financing
      statements and other public records and to file any such financing statements
      by
      electronic means with or without a signature as authorized or required by
      applicable law or filing procedure; (c) so long as any Event of Default has
      occurred and is continuing, to notify the post office authorities to change
      the
      address for delivery of such Grantor's mail to an address designated by
      Purchaser and to receive, open and dispose of all mail addressed to such
      Grantor; (d) to send requests for verification of Accounts to customers or
      Account Debtors; (e) to complete in such Grantor's name or Purchaser's name,
      any
      order, sale or transaction, obtain the necessary Documents in connection
      therewith, and collect the proceeds thereof; (f) to clear Inventory through
      customs in such Grantor's name, Purchaser's name or the name of Purchaser's
      designee, and to sign and deliver to customs officials powers of
      attorney-in-fact in the Grantor's name for such purpose; and (g) to do all
      things necessary in the sole judgment of Purchaser to carry out the Purchase
      Agreement and this Agreement. Each Grantor ratifies and approves all acts of
      such attorney-in-fact. Neither Purchaser nor its attorneys-in-fact will be
      liable for any acts or omissions or for any error of judgment or mistake of
      fact
      or law except for their gross negligence or willful misconduct. This power,
      being coupled with an interest, is irrevocable until the Purchase Agreement
      has
      been terminated and all Obligations to Purchaser have been fully
      satisfied.

     

    16. PURCHASER'S
      RIGHTS, DUTIES AND LIABILITIES.

     

    (a) Each
      Grantor assumes all responsibility and liability arising from or relating to
      the
      use, sale or other disposition of the Collateral. The Obligations to Purchaser
      shall not be affected by any failure of Purchaser to take any steps to perfect
      Purchaser's Liens or to collect or realize upon the Collateral, nor shall loss
      of or damage to the Collateral release such Grantor from any of the Obligations
      to Purchaser. Following the occurrence and during the continuation of an Event
      of Default, Purchaser may (but shall not be required to), without notice to
      or
      consent from the Grantors, sue upon or otherwise collect, extend the time for
      payment of, modify or amend the terms of, compromise or settle for cash, credit,
      or otherwise upon any terms, grant other indulgences, extensions, renewals,
      compositions, or releases, and take or omit to take any other action with
      respect to the Collateral, any security therefor, any agreement relating
      thereto, any insurance applicable thereto, or any Person liable directly or
      indirectly in connection with any of the foregoing, without discharging or
      otherwise affecting the liability of any Grantor for the Obligations to
      Purchaser or under the Purchase Agreement or any other agreement now or
      hereafter existing between Purchaser and such Grantor.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (b) Purchaser
      shall use reasonable care with respect to the Collateral in its possession
      or
      under its control. Purchaser shall not have any other duty as to any Collateral
      in its possession or control or in the possession or control of nominee of
      Purchaser, or any income thereon or as to the preservation of rights against
      prior parties or any other rights pertaining thereto.

     

    (c) It
      is
      expressly agreed by each Grantor that, anything herein to the contrary
      notwithstanding, such Grantor shall remain liable under each of its contracts
      and each of its licenses to observe and perform all the conditions and
      obligations to be observed and performed by it thereunder. Purchaser shall
      not
      have any obligation or liability under any contract or license by reason of
      or
      arising out of this Agreement or the granting herein of a Lien thereon or the
      receipt by Purchaser of any payment relating to any contract or license pursuant
      hereto. Purchaser shall not be required or obligated in any manner to perform
      or
      fulfill any of the obligations of any Grantor under or pursuant to any contract
      or license, or to make any payment, or to make any inquiry as to the nature
      or
      the sufficiency of any payment received by it or the sufficiency of any
      performance by any party under any contract or license, or to present or file
      any claims, or to take any action to collect or enforce any performance or
      the
      payment of any amounts which may have been assigned to it or to which it may
      be
      entitled at any time or times.

     

    (d) Purchaser
      may at any time after a Default or Event of Default shall have occurred and
      be
      continuing, without prior notice to any Grantor, notify Account Debtors, parties
      to the Assigned Contracts and obligors in respect of Instruments and Chattel
      Paper, that the Accounts and the right, title and interest of such Grantor
      in
      and under such Assigned Contracts, Instruments and Chattel Paper have been
      assigned to Purchaser, and that payments shall be made directly to Purchaser
      for
      its own benefit. Upon the request of Purchaser, such Grantor shall so notify
      Account Debtors, parties to Assigned Contracts and obligors in respect of
      Instruments and Chattel Paper. So long as an Event of Default has occurred
      and
      is continuing, such defaulting Grantor, at Purchaser's request, shall also
      execute and deliver to Purchaser such documents as Purchaser shall require
      to
      grant Purchaser access to any post office box in which collections of Accounts
      are received.

     

    17. PROPRIETARY
      RIGHTS COLLATERAL.

     

    (a) None
      of
      the Grantors has any interest in, or title to, any Proprietary Rights except
      as
      set forth in Schedule III
      hereto.
      This Agreement is effective to create a valid and continuing Lien on and, upon
      filing of this Agreement with the United States Copyright Office and the United
      States Patent and Trademark Office, perfected Liens in favor of Purchaser on
      each Grantor's Proprietary Rights and such perfected Liens are enforceable
      as
      such as against any and all creditors of and purchasers from such Grantor.
      Upon
      filing of this Agreement with the United States Copyright Office and the United
      States Patent and Trademark Office and the filing of appropriate financing
      statements, all action necessary or desirable to protect and perfect Purchaser's
      Lien on such Grantor's Proprietary Rights shall have been duly
      taken.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    (b) Each
      Grantor shall notify Purchaser immediately if it knows that any application
      or
      registration relating to any Proprietary Right (now or hereafter existing)
      may
      become abandoned or dedicated, or of any adverse determination or development
      (including the institution of, or any such determination or development in,
      any
      proceeding in the United States Patent and Trademark Office, the United States
      Copyright Office or any court) regarding such Grantor's ownership of any
      Proprietary Right, its right to register the same, or to keep and maintain
      the
      same.

     

    (c) In
      no
      event shall any Grantor, either directly or through Purchaser, employee,
      licensee or designee, file an application for the registration of any
      Proprietary Right with the United States Patent and Trademark Office, the United
      States Copyright Office or any similar office or agency without giving Purchaser
      prior written notice thereof, and, upon request of Purchaser, such Grantor
      shall
      execute and deliver any and all amendments to this Agreement or any and all
      additional intellectual property security agreements as Purchaser may request
      to
      evidence Purchaser's Lien on such Proprietary Right and the General Intangibles
      of such Grantor relating thereto or represented thereby.

     

    (d) Each
      Grantor shall take all actions necessary or requested by Purchaser to maintain
      and pursue each application, to obtain the relevant registration and to maintain
      the registration of each of the Proprietary Rights (now or hereafter existing),
      including the filing of applications for renewal, affidavits of use, affidavits
      of noncontestability and opposition and interference and cancellation
      proceedings.

     

    (e) In
      the
      event that any of the Proprietary Rights Collateral is infringed upon, or
      misappropriated or diluted by a third party, each Grantor shall notify Purchaser
      promptly after such Grantor learns thereof. Each Grantor shall take all
      reasonably necessary action to protect such affected Proprietary Rights
      Collateral (including, for example and without limitation, suing for
      infringement, misappropriation or dilution and otherwise attempting to recover
      any and all damages for such infringement, misappropriation or
      dilution).

     

    18. INDEMNIFICATION.
      In any
      suit, proceeding or action brought by Purchaser relating to any Account, Chattel
      Paper, Assigned Contract, Document, General Intangible or Instrument for any
      sum
      owing thereunder or to enforce any provision of any Account, Chattel Paper,
      Assigned Contract, Document, General Intangible or Instrument, each Grantor
      will
      save, indemnify and keep Purchaser harmless from and against all expense
      (including, without limitation, reasonable attorneys' fees and expenses), loss
      or damage suffered by reason of any defense, setoff, counterclaim, recoupment
      or
      reduction of liability whatsoever of the obligor thereunder, arising out of
      a
      breach by such Grantor of any obligation thereunder or arising out of any other
      agreement, indebtedness or liability at any time owing to, or in favor of,
      such
      obligor or its successors from such Grantor, except to the extent such expense,
      loss, or damage is attributable to the gross negligence or willful misconduct
      of
      Purchaser.

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    19. EVENTS
      OF DEFAULT.
      Each
      Grantor shall be in default under this Agreement upon the happening of any
      of
      the following events or conditions (each, an "Event
      of Default"):
      (i) any of the Grantors breaches any of its representations, warranties,
      covenants, agreements or obligations hereunder; (ii) an Event of Default
      (as defined in the Purchase Agreement) occurs under the Purchase Agreement
      or
      any of the Related Agreements; (iii) any event which results in the
      acceleration of the maturity in the indebtedness of any of the Grantors to
      others under any indenture, agreement or undertaking; (iv) dissolution,
      termination of existence, insolvency, business failure, appointment of a
      receiver of any part of the property of, assignment for the benefit of creditors
      by, or the commencement of any proceeding under any bankruptcy or insolvency
      laws by or against any of the Grantors; (v) sale
      (except as provided herein or in the Purchase Agreement or Related Agreements)
      or attempted sale of any of the Collateral, or (vi) Purchaser's security
      interest in the Collateral is not, or is asserted not to be, a valid, perfected
      and continuing security interest.

     

    20. REMEDIES;
      RIGHTS UPON DEFAULT.

     

    (a) In
      addition to all other rights and remedies granted to it under the law (and
      at
      equity) and under this Agreement, the Purchase Agreement, the other Related
      Agreements and under any other instrument or agreement securing, evidencing
      or
      relating to any of the Obligations to Purchaser, if any Event of Default has
      occurred and is continuing, Purchaser may exercise all rights and remedies
      of a
      secured party under the UCC. Without limiting the generality of the foregoing,
      each Grantor expressly agrees that in any such event Purchaser, without demand
      of performance or other demand, advertisement or notice of any kind (except
      the
      notice specified below of time and place of public or private sale) to or upon
      such Grantor or any other Person (all and each of which demands, advertisements
      and notices are hereby expressly waived to the maximum extent permitted by
      the
      UCC and other applicable law), may forthwith enter upon the premises of such
      Grantor where any Collateral is located through self-help, without judicial
      process, without first obtaining a final judgment or giving such Grantor or
      any
      other Person notice and opportunity for a hearing on Purchaser's claim or action
      and may collect, receive, assemble, process, appropriate and realize upon the
      Collateral, or any part thereof, and may forthwith sell, lease, assign, give
      an
      option or options to purchase, or sell or otherwise dispose of and deliver
      said
      Collateral (or contract to do so), or any part thereof, in one or more parcels
      at a public or private sale or sales, at any exchange at such prices as it
      may
      deem acceptable, for cash or on credit or for future delivery without assumption
      of any credit risk. Purchaser shall have the right upon any such public sale
      or
      sales and, to the extent permitted by law, upon any such private sale or sales,
      to purchase the whole or any part of said Collateral so sold, free of any right
      or equity of redemption, which equity of redemption such Grantor hereby
      releases. Such sales may be adjourned and continued from time to time with
      or
      without notice. Purchaser shall have the right to conduct such sales on such
      Grantor's premises or elsewhere and shall have the right to use such Grantor's
      premises without charge for such time or times as Purchaser deems necessary
      or
      advisable.

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    (b) If
      an
      Event of Default shall have occurred, each Grantor further agrees, at
      Purchaser's request, to assemble the Collateral and make it available to
      Purchaser at places which Purchaser shall select, whether at such Grantor's
      premises or elsewhere. Until Purchaser is able to effect a sale, lease, or
      other
      disposition of the Collateral, Purchaser shall have the right to hold or use
      the
      Collateral, or any part thereof, to the extent that it deems appropriate for
      the
      purpose of preserving the Collateral or its value or for any other purpose
      deemed appropriate by Purchaser. Purchaser shall have no obligation to such
      Grantor to maintain or preserve the rights of such Grantor as against third
      parties with respect to the Collateral while the Collateral is in the possession
      of Purchaser. Purchaser may, if it so elects, seek the appointment of a receiver
      or keeper to take possession of the Collateral and to enforce any of Purchaser's
      remedies, with respect to such appointment without prior notice or hearing
      as to
      such appointment. Purchaser shall apply the net proceeds of any such collection,
      recovery, receipt, appropriation, realization or sale to the Obligations to
      Purchaser, as provided in the Purchase Agreement, and only after so paying
      over
      such net proceeds, and after the payment by Purchaser of any other amount
      required by any provision of law, need Purchaser account for the surplus, if
      any, to such Grantor. To the maximum extent permitted by applicable law, each
      Grantor waives all claims, damages, and demands against Purchaser arising out
      of
      the repossession, retention or sale of the Collateral except such as arise
      solely out of the gross negligence or willful misconduct of Purchaser. Each
      Grantor agrees that ten (10) days prior notice by Purchaser of the time and
      place of any public sale or of the time after which a private sale may take
      place is reasonable notification of such matters. Each Grantor shall remain
      liable for any deficiency if the proceeds of any sale or disposition of the
      Collateral are insufficient to pay all Obligations to Purchaser, including
      any
      attorneys' fees or other expenses incurred by Purchaser to collect such
      deficiency.

     

    (c) Except
      as
      otherwise specifically provided herein, each Grantor hereby waives presentment,
      demand, protest or any notice (to the maximum extent permitted by applicable
      law) of any kind in connection with this Agreement or any
      Collateral.

     

    21. GRANT
      OF LICENSE TO USE PROPRIETARY RIGHTS.
      For the
      purpose of enabling Purchaser to exercise rights and remedies under Section 20 (including,
      without limiting the terms of Section 20,
      in
      order to take possession of, hold, preserve, process, assemble, prepare for
      sale, market for sale, sell or otherwise dispose of the Collateral) at such
      time
      as Purchaser shall be lawfully entitled to exercise such rights and remedies,
      each Grantor hereby grants to Purchaser an irrevocable, nonexclusive license
      (exercisable without payment of royalty or other compensation to such Grantor)
      to use, license or sublicense any Proprietary Rights now owned or hereafter
      acquired by such Grantor, and wherever the same may be located, and including
      in
      such license access to all media in which any of the licensed items may be
      recorded, maintained or stored and to all computer software and programs used
      for the compilation or printout thereof.

     

    22. MISCELLANEOUS.

     

    (a) Reinstatement.
      This
      Agreement shall remain in full force and effect and continue to be effective
      should any petition be filed by or against any Grantor for liquidation or
      reorganization, should such Grantor become insolvent or make an assignment
      for
      the benefit of any creditor or creditors or should a receiver or trustee be
      appointed for all or any significant part of such Grantor's assets, and shall
      continue to be effective or be reinstated, as the case may be, if at any time
      payment and performance of the Obligations to Purchaser, or any part thereof,
      is, pursuant to applicable law, rescinded or reduced in amount, or must
      otherwise be restored or returned by any obligee of the Obligations to
      Purchaser, whether as a "voidable preference," "fraudulent conveyance," or
      otherwise, all as though such payment or performance had not been made. In
      the
      event that any payment, or any part thereof, is rescinded, reduced, restored
      or
      returned, the Obligations to Purchaser shall be reinstated and deemed reduced
      only by such amount paid and not so rescinded, reduced, restored or
      returned.

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    (b) Notices.
      Except
      as otherwise provided herein, whenever it is provided herein that any notice,
      demand, request, consent, approval, declaration or other communication shall
      or
      may be given to or served upon any of the parties by any other party, or
      whenever any of the parties desires to give and serve upon any other party
      any
      communication with respect to this Agreement, each such notice, demand, request,
      consent, approval, declaration or other communication shall be in writing and
      shall be given in the manner, and deemed received, as provided for in the
      Purchase Agreement.

     

    (c) Severability.
      Whenever possible, each provision of this Agreement shall be interpreted in
      a
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity
      without invalidating the remainder of such provision or the remaining provisions
      of this Agreement. This Agreement is to be read, construed and applied together
      with the Purchase Agreement and the Related Agreements which, taken together,
      set forth the complete understanding and agreement of Purchaser and each Grantor
      with respect to the matters referred to herein and therein.

     

    (d) No
      Waiver; Cumulative Remedies.
      Neither
      Purchaser nor any of the Grantors shall by any act, delay, omission or otherwise
      be deemed to have waived any of its rights or remedies hereunder, and no waiver
      shall be valid unless in writing, signed by the waiving party and then only
      to
      the extent set forth therein. A waiver by the Purchaser or any Grantors of
      any
      right or remedy hereunder on any one occasion shall not be construed as a bar
      to
      any right or remedy which the waiving party would otherwise have had on any
      future occasion. No failure to exercise, nor any delay in exercising on the
      part
      of Purchaser or any of the Grantors, any right, power or privilege hereunder,
      shall operate as a waiver thereof, nor shall any single or partial exercise
      of
      any right, power or privilege hereunder preclude any other or future exercise
      thereof or the exercise of any other right, power or privilege. The rights
      and
      remedies hereunder provided are cumulative and may be exercised singly or
      concurrently, and are not exclusive of any rights and remedies provided by
      law.
      None of the terms or provisions of this Agreement may be waived, altered,
      modified or amended except by an instrument in writing, duly executed by
      Purchaser and each Grantor.

     

    (e) Limitation
      by Law.
      All
      rights, remedies and powers provided in this Agreement may be exercised only
      to
      the extent that the exercise thereof does not violate any applicable provision
      of law, and all the provisions of this Agreement are intended to be subject
      to
      all applicable mandatory provisions of law that may be controlling and to be
      limited to the extent necessary so that they shall not render this Agreement
      invalid, unenforceable, in whole or in part, or not entitled to be recorded,
      registered or filed under the provisions of any applicable law.

     

    (f) Termination
      of this Agreement.
      Subject
      to Section 22(a),
      this
      Agreement shall terminate upon the indefeasible payment and performance in
      full
      in immediately available funds of all Obligations to Purchaser.

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    (g) Successors
      and Assigns.
      This
      Agreement and all obligations of each Grantor hereunder shall be binding upon
      the successors and assigns of such Grantor (including any debtor-in-possession
      on behalf of such Grantor) and shall, together with the rights and remedies
      of
      Purchaser hereunder, inure to the benefit of Purchaser, all future holders
      of
      any instrument evidencing any of the Obligations to Purchaser and their
      respective successors and assigns. No sales of participations, other sales,
      assignments, transfers or other dispositions of any agreement governing or
      instrument evidencing the Obligations to Purchaser or any portion thereof or
      interest therein shall in any manner affect the Lien granted to Purchaser
      hereunder. No Grantor may assign, sell, hypothecate or otherwise transfer any
      interest in or obligation under this Agreement.

     

    (h) Counterparts.
      This
      Agreement may be executed in any number of separate counterparts, each of which
      shall collectively and separately constitute one and the same
      agreement.

     

    (i) Governing
      Law.
      THIS
      PLEDGE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH THE INTERNAL LAWS OF THE STATE OF CALIFORNIA APPLICABLE
      TO CONTRACTS MADE AND PERFORMED IN THAT STATE (WITHOUT REGARD TO THE CHOICE
      OF
      LAW OR CONFLICTS OF LAW PROVISIONS THEREOF).

     

    (j) Jurisdiction,
      Etc.

     

    (i) Each
      of
      the parties hereby consents and agrees that all actions, suits or other
      proceedings arising under or in connection with this Pledge Agreement shall
      be
      tried and litigated in state or federal courts located in Los Angeles,
      California, which courts shall have exclusive jurisdiction to hear and determine
      any and all claims, controversies and disputes arising out of or related to
      this
      Pledge Agreement. Notwithstanding the foregoing, nothing contained in this
      Section shall preclude the Purchaser from bringing any action, suit or other
      proceeding in the courts of any other location to enforce its rights
      hereunder.

     

    (ii) Each
      of
      the parties hereby (A) irrevocably submits to the jurisdiction of any such
      court
      and consents in advance to such jurisdiction in any action, suit or other
      proceeding commenced in any such court, (B) waives any right it may have to
      assert the doctrine of forum
      non conveniens
      or any
      objection that such person may have based upon lack of personal jurisdiction
      or
      improper venue, and (C) consents to the granting of such legal or equitable
      relief as is deemed appropriate by such court. Each of the parties hereby waives
      personal service of the summons, complaint or other process issued in any such
      action, suit or other proceeding and agrees that service of such summons,
      complaint and other process may be made by registered or certified mail
      addressed to such party at the address set forth in the Purchase Agreement
      and
      that service so made shall be deemed completed upon the earlier of such person's
      actual receipt thereof or five (5) days after deposit in the United States
      mail,
      proper postage prepaid.

     

    (iii) To
      the
      extent permitted under the applicable laws of any such jurisdiction, the
      Guarantors hereby waive, in respect of any such action, suit or other
      proceeding, the jurisdiction of any other court or courts that now or hereafter,
      by reason of such person's present or future domicile, or otherwise, may be
      available to it.

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    (k) Section
      Titles.
      The
      Section titles contained in this Agreement are and shall be without substantive
      meaning or content of any kind whatsoever and are not a part of the agreement
      between the parties hereto.

     

    (l) No
      Strict Construction.
      The
      parties hereto have participated jointly in the negotiation and drafting of
      this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises under any provision of this Agreement, this Agreement shall be construed
      as if drafted jointly by the parties hereto, and no presumption or burden of
      proof shall arise favoring or disfavoring any party by virtue of the authorship
      of any of the provisions of this Agreement.

     

    (m) Entire
      Agreement.
      This
      Agreement, together with the Purchase Agreement and the Related Agreements,
      contain the entire agreement of the parties with respect to the subject matter
      hereof, and supersede all prior agreements, representation and warranties,
      written or oral, with respect thereto.

     

    (n) Advice
      of Counsel.
      Each of
      the parties represents to each other party hereto that it has discussed this
      Agreement with its counsel.

     

    (o) Benefit
      of Purchaser.
      All
      Liens granted or contemplated hereby shall be for the benefit of Purchaser,
      and
      all proceeds or payments realized from Collateral in accordance herewith
      (including, without limitation, any amounts on deposit in a Payment Account)
      may
      either, at the sole discretion of Purchaser, (i) be deposited into a
      Payment Account or (ii) be applied to the Obligations to Purchaser in such
      order as Purchaser may elect, in its sole discretion.

     

    (p) Suretyship
      Waivers and Consents.
      The
      obligations of each Grantor are independent of the obligations of each other
      Grantor. Each Grantor expressly waives any right to require Purchaser to proceed
      against any other Grantor, to proceed against or exhaust any Collateral or
      any
      other security for the Obligations to Purchaser or to pursue any remedy
      Purchaser may have at any time. Each Grantor agrees that Purchaser may proceed
      against any one or more Grantor and/or the Collateral in such order and manner
      as Purchaser shall determine in its sole and absolute discretion. A separate
      action or actions may be brought and prosecuted against any one or more Grantor
      whether an action is brought or prosecuted against any other Grantor or with
      respect to any Collateral or whether any other person shall be joined in any
      such action or actions. Each Grantor expressly waives the benefit of any statute
      of limitations affecting its liability under this Agreement or the enforcement
      of the Obligations to Purchaser or any rights of Purchaser created or granted
      under this Agreement or the Purchase Agreement. Purchaser's rights hereunder
      shall be reinstated and revived, and the obligations and liability of each
      Grantor hereunder shall continue, with respect to any amount at any time paid
      on
      account of the Obligations to Purchaser which thereafter shall be required
      to be
      restored or returned by Purchaser upon the bankruptcy, insolvency or
      reorganization of any Grantor, or otherwise, all as though such amount had
      not
      been paid.

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    (i) Each
      Grantor expressly waives any and all suretyship defenses now or hereafter
      arising or asserted, including (A) any disability or other defense of any
      other Grantor or with respect to the Obligations to Purchaser; (B) the
      cessation for any cause whatsoever of liability of any of the other Grantor,
      and
      (C) any act or omission of Purchaser or others that directly
      or
      indirectly results in or aids the discharge or release of any other Grantor
      or
      the Obligations to Purchaser or any Collateral or any guaranty therefor by
      operation of law or otherwise. Without limiting the generality of any other
      waiver or other provision set forth in this Agreement, each Grantor hereby
      waives, to the maximum extent such waiver is permitted by law, any and all
      benefits, defenses to payment or performance, or any right to partial or
      complete exoneration arising directly or indirectly under any one or more of
      California Civil Code Sections 2787 TO 2855 inclusive, and all successor
      sections.

     

    (ii) Each
      Grantor waives any and all rights and provisions of California Code of Civil
      Procedure sections 580a, 580b, 580d and 726, including, but not limited to
      any
      provision thereof that: (A) may
      limit
      the time period for Purchaser to commence a lawsuit against any Grantor to
      collect any Obligations to Purchaser owing by any Grantor to Purchaser; (B)
      may
      entitle any Grantor to a judicial or nonjudicial determination of any deficiency
      owed by such Grantor to Purchaser, or to otherwise limit Purchaser's right
      to
      collect a deficiency based on the fair market value of such real property
      security; (C) may limit Purchaser's right to collect a deficiency judgment
      after
      a sale of any real property securing the Obligations to Purchaser; (D) may
      require Purchaser to take only one action to collect the Obligations to
      Purchaser or that may otherwise limit the remedies available to Purchaser to
      collect the Obligations to Purchaser. This waiver means, among other things:
      (1)
      Purchaser may collect from the Grantors without first foreclosing on any real
      or
      personal property collateral pledged by the Grantors; and (2) if Purchaser
      forecloses on any real property collateral pledged by the Grantors: (A) the
      amount of the Obligations to Purchaser may be reduced only by the price for
      which that collateral is sold at the foreclosure sale, even if the collateral
      is
      worth more than the sale price, and (B) Purchaser may collect from the Grantors
      even if Purchaser, by foreclosing on the real property collateral, has destroyed
      any right any Grantor may have to collect from any other Grantor. This is an
      unconditional and irrevocable waiver of any rights and defenses the Grantors
      may
      have because any of the Obligations to Purchaser is secured by real property.
      These rights and defenses include, but are not limited to, any rights or
      defenses based upon Section 580a, 580b, 580d, or 726 of the California Code
      of
      Civil Procedure.

     

    (iii) Each
      Grantor agrees that any amounts received by Purchaser from whatever source
      on
      account of the Obligations to Purchaser may be applied by Purchaser toward
      the
      payment of such of the Obligations to Purchaser and in such order of application
      as Purchaser may from time to time elect; and notwithstanding any payments
      made
      by any Grantor, and, until Purchaser shall have been fully and finally paid,
      such Grantor shall have no right of subrogation, reimbursement, exoneration,
      indemnity, contribution or any other rights that would result in such Grantor
      being deemed a creditor of any other Grantor under the federal Bankruptcy Code
      or any other law or for any other purpose and such Grantor hereby irrevocably
      waives all such rights, the right to assert any such rights and any right to
      enforce any remedy which Purchaser now or may hereafter have against any Grantor
      and hereby waives any benefit of and any right to participate in, any security
      now or hereafter held by Purchaser, whether any of the foregoing rights arise
      in
      equity, at law or by contract.

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    (iv) Each
      Grantor represents and warrants to Purchaser that it has established adequate
      means of obtaining from each other Grantor and their affiliates, on a continuing
      basis, financial and other information pertaining to the businesses, operations
      and condition (financial and otherwise) of each other Grantor, their affiliates
      and their properties, and each Grantor now is and hereafter will be completely
      familiar with the businesses, operations and condition (financial and otherwise)
      of each other Grantor, their affiliates and their
      properties. Each Grantor hereby expressly waives and relinquishes any duty
      on
      the part of Purchaser (should any such duty exist) to disclose to any Grantor
      any matter, fact or thing related to the businesses, operations or condition
      (financial or otherwise) of each Grantor, their affiliates or their properties,
      whether now known or hereafter known by Purchaser.

     

    (v) Each
      Grantor represents and warrants that each of the waivers set forth herein are
      made with each Grantor's full knowledge of their significance and consequences,
      and that under the circumstances the waivers are reasonable and not contrary
      to
      public policy or law. If any of said waivers are determined to be contrary
      to
      any applicable law or public policy, such waivers shall be effective only to
      the
      maximum extent permitted by law.

     

    [Signature
      Page Follows]

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      each of
      the parties hereto has caused this Agreement to be executed and delivered by
      its
      duly authorized officer as of the date first set forth above.

     

    
      	
              "Grantors"

            
	 
	
              GFN
                AUSTRALASIA FINANCE PTY LTD

            
	 
	
              By:

            	    

	 	
              Name:

            
	 	
              Title:

            
	 	 
	
              "Purchaser"

            
	 
	
              BISON
                CAPITAL AUSTRALIA, L.P.

            
	 
	
              By:
                

            	
              Bison
                Capital Australia GP, LLC,

            
	 	
              its
                general partner

            
	 	 
	
              By:

            	   

	 	
              Douglas
                B. Trussler

            
	 	
              Managing
                Member

            

    

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

     

    to

     

    SECURITY
      AGREEMENT

     

    LOCATION
      OF COLLATERAL

     

    
      	
              Credit Party

            	 	
              Location of Chief 

              Executive Office

            	 	
              Location of Books and 

              Records; Location of 

              Collateral

            	 	
              Location of All Other 

              Places of Business

            	 	
              Location of Leased 

              Facilities and Name of 

              Lessor/Sublessor

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

    

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      II

    to

    SECURITY
      AGREEMENT

     

    NAME;
      TYPE OF ENTITY; ORGANIZATIONAL IDENTIFICATION NO.; JURISDICTION OF INCORPORATION
      OR ORGANIZATION

     

    
      	
              Credit
                Party

            	 	
              Type
                of Entity

            	 	
              Organizational

               Identification
                

              Number
                (if 

              any)

            	 	
              State
                of 

              Organization

            	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      III

    to

    SECURITY
      AGREEMENT

     

    PROPRIETARY
      RIGHTS

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IV

    to

    SECURITY
      AGREEMENT

     

    TORT
      CLAIMS

    
      
        
        

      

      
        -4-

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