Document:

a5595833-ex102.htm

     

    Exhibit
      10.2

     

    
      

      SECURITY
        AGREEMENT

      

      THIS
        SECURITY AGREEMENT (this
“Agreement”),
        dated as of January 25, 2008, among MAXIMUS, INC., a Virginia
        corporation (the “Borrower”) and each
        subsidiary of the Borrower hereafter a party hereto (Borrower and each
        Subsidiary hereafter becoming a party hereto shall be collectively known
        as the
“Grantors”, and
        individually as a “Grantor”), in favor
        of SUNTRUST BANK, a
        Georgia banking corporation, as the Administrative Agent (the “Administrative
        Agent”), on its behalf and on behalf of the other banks and lending
        institutions (the “Lenders”) from
        time
        to time party to the Revolving Credit Agreement, dated as of the date hereof,
        by
        and among the Borrower, the Lenders, the Administrative Agent, and SunTrust
        Bank, as Swingline Lender and Issuing Bank (as amended, restated, supplemented,
        or otherwise modified from time to time, the “Credit
        Agreement”).

       

      W
        I T N E S S E T
        H:

      

      WHEREAS,
        pursuant to the
        Credit Agreement, the Lenders have agreed to establish a revolving credit
        facility on behalf of the Borrower; and

       

      WHEREAS,
        it is a condition
        precedent to the obligations of the Administrative Agent, the Issuing Bank,
        the
        Swingline Lender, and the Lenders under the Credit Agreement that the Grantors
        enter into this Agreement to secure all obligations of the Borrower under
        the
        Credit Agreement, secure the obligations of each Subsidiary of the Borrower
        under the Subsidiary Guaranty Agreement and all other Loan Documents to which
        each Grantor is a party, and to secure all Hedging Obligations owed to the
        Administrative Agent, any Lender or any of their affiliates to the extent
        expressly permitted by the Credit Agreement, and the Grantors desire to satisfy
        such condition precedent.

       

      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:

       

      Section
        1.01 Definitions.  Capitalized
        terms defined in the Credit Agreement and not otherwise defined herein, when
        used in this Agreement shall have the respective meanings provided for in
        the
        Credit Agreement.  The following additional terms, when used in this
        Agreement, shall have the following meanings:

       

      “Account
        Debtor” shall
        mean any person or entity that is obligated under an Account.

       

      “Accounts”
shall
        mean
        all “accounts” (as defined in the UCC) now owned or hereafter acquired by any
        Grantor or in which any Grantor has or acquires any rights.

       

      “Chattel
        Paper” shall
        mean all “chattel paper” (as defined in the UCC) owned or acquired by any
        Grantor or in which any Grantor has or acquires any rights.

       

      "Collateral"
        shall
        mean, collectively, all of the following:

       

      
         

        
          
            	 	
                    (i)

                  	
                    all
                      Accounts;

                  

          

           

          
            
               

            

            
               

              
                

              

            

            
               

            

          

           

          
            	 	 	 
	 	
                    (ii)

                  	
                    all
                      Chattel Paper;

                  
	 	 	 
	 	
                    (iii)

                  	
                    all
                      Deposit Accounts;

                  
	 	 	 
	 	
                    (iv)

                  	
                    all
                      Documents;

                  
	 	 	 
	 	
                    (v)

                  	
                    all
                      Equipment;

                  
	 	 	 
	 	
                    (vi)

                  	
                    all
                      Intellectual Property;

                  
	 	 	 
	 	
                    (vii)

                  	
                    all
                      General Intangibles;

                  
	 	 	 
	 	
                    (viii)

                  	
                    all
                      Instruments;

                  
	 	 	 
	 	
                    (ix)

                  	
                    all
                      Inventory;

                  
	 	 	 
	 	
                    (x)

                  	
                    all
                      Investment Property;

                  
	 	 	 
	 	
                    (xi)

                  	
                    all
                      Software;

                  
	 	 	 
	 	
                    (xii)

                  	
                    all
                      money, cash or cash equivalents;

                  
	 	 	 
	 	
                    (xiii)

                  	
                    all
                      other Goods and personal property, whether tangible or
                      intangible;

                  
	 	 	 
	 	
                    (xiv)

                  	
                    all
                      Supporting Obligations and Letter-of-Credit Rights of any
                      Grantor;

                  
	 	 	 
	 	
                    (xv)

                  	
                    all
                      books and records pertaining to any of the Collateral (including,
                      without
                      limitation, credit files, computer programs, printouts and
                      other computer
                      materials and records but excluding customer lists);

                  
	 	 	 
	 	
                    (xvi)

                  	
                    the
                      Pledged Notes and the instruments and other documents representing
                      the
                      Pledged Notes; and

                  
	 	 	 
	 	
                    (xvii)

                  	
                    to
                      the extent not otherwise included, all other property of any
                      Grantor and
                      all products and Proceeds of all or any of the Collateral described
                      in
                      clauses (i) through (xvi) hereof;

                  
	 	 	 
	 	
                    provided,
                      that Collateral shall not include any Excluded
                      Property.

                  

          

           

        

      

      “Copyright
        License”
shall mean any and all rights of any Grantor under any written agreement
        granting any right to use any Copyright or Copyright registration.

       

      “Copyrights”
shall
        mean all of the following now owned or hereafter acquired by any Grantor
        or in
        which any Grantor now has or hereafter acquires any rights: (a) all copyrights
        and general intangibles of like nature (whether registered or unregistered),
        all
        registrations and recordings thereof, and all applications in connection
        therewith, including all registrations, recordings and applications in the
        United States Copyright Office or in any similar office or agency of the
        United
        States, any state or territory thereof, or any other country or any political
        subdivision thereof, and (b) all reissues, extensions or renewals
        thereof.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      “Deposit
        Accounts”
shall mean all “deposit accounts” (as defined in Article 9 the UCC) now owned or
        hereafter acquired by any Grantor or in which any Grantor has or acquires
        any
        rights, or other receipts, of any Grantor covering, evidencing or representing
        rights or interest in such deposit accounts.

       

      “Documents”
shall
        mean
        all “documents” (as defined in the UCC) now owned or hereafter acquired by any
        Grantor or in which any Grantor has or acquires any rights, or other receipts,
        of any Grantor covering, evidencing or representing Goods.

       

      “Equipment”
shall
        mean
        all “equipment” (as defined in the UCC) now owned or hereafter acquired by any
        Grantor and wherever located.

       

      "Excluded
        Property"
        shall mean (i) any lease, license, contract, Equipment, General Intangible,
        Copyright License, Trademark License, Patent License, property right or
        agreement to which any Grantor is a party or any of its rights or interests
        thereunder if and only for so long as the grant of a security interest hereunder
        shall constitute or result in a material breach or default under any such
        lease,
        license, contract, Equipment, General Intangible, Copyright License, Trademark
        License, Patent License, property right or agreement  or would give
        rise to a right to terminate any such Equipment, General Intangible, Copyright
        License, Trademark License, Patent License (other than to the extent that
        any
        such term would be rendered ineffective pursuant to Sections 9-406, 9-407,
        9-408
        or 9-409 of the UCC of any relevant jurisdiction or any other applicable
        law or
        principles of equity); provided, however, that such security interest shall
        attach immediately to any portion of such lease, license, contract, Equipment,
        General Intangible, Copyright License, Trademark License, Patent License,
        property rights or agreement that does not result in any of the consequences
        specified above, (ii) any rights or property to the extent that any valid
        enforceable law or regulation applicable to such rights or property prohibits
        the creation of a security interest therein, (iii) any Capital Stock not
        constituting Collateral as a result of Section 3(b), and (iv) any Capital
        Stock
        not constituting Collateral as a result of Section 3(c).

       

      “Event
        of Default”
shall have the meaning set forth for such term in Section 7 hereof.

       

      “General
        Intangibles”
shall mean all “general intangibles” (as defined in the UCC) now owned or
        hereafter acquired by any Grantor or in which any Grantor has or acquires
        any
        rights and, in any event, shall include all right, title and interest in
        or
        under all contracts, all customer lists, Licenses, Copyrights, Trademarks,
        Patents, and all applications therefor and reissues, extensions or renewals
        thereof, rights in Intellectual Property, interests in partnerships, joint
        ventures and other business associations, licenses, permits, copyrights,
        trade
        secrets, proprietary or confidential information, inventions (whether or
        not
        patented or patentable), technical information, procedures, designs, knowledge,
        know-how, software, data bases, data, skill, expertise, experience, processes,
        models, drawings, materials and records, goodwill (including the goodwill
        associated with any Trademark or Trademark License), all rights and claims
        in or
        under insurance policies (including insurance for fire, damage, loss and
        casualty, whether covering personal property, real property, tangible rights
        or
        intangible rights, all liability, life, key man and business interruption
        insurance, and all unearned premiums), uncertificated securities, choses
        in
        action, deposit, checking and other bank accounts, rights to receive tax
        refunds
        and other payments, rights of indemnification, all books and records,
        correspondence, credit files, invoices, tapes, cards, computer runs, domain
        names, prospect lists, customer lists and other papers and
        documents.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      "Goods"
        shall mean all
        "goods" (as defined in the UCC) now owned or hereafter acquired by any Grantor
        or in which any Grantor has or acquires any rights.

       

      “Instruments”
shall
        mean all “instruments” (as defined in the UCC) now owned or hereafter acquired
        by any Grantor or in which any Grantor has or acquires any rights.

       

      “Intellectual
        Property” shall mean all of the following now owned or hereafter acquired
        by any Grantor or in which any Grantor has or acquires any rights: (a) all
        Patents, patent rights and patent applications, Copyrights and copyright
        applications, Trademarks, trademark rights, trade names, trade name rights,
        service marks, service mark rights, applications for registration of trademarks,
        trade names and service marks, fictitious names registrations and trademark,
        trade name and service mark registrations, and all derivations thereof; and
        (b)
        Patent Licenses, Trademark Licenses, Copyright Licenses and other licenses
        to
        use any of the items described in the preceding clause (a).

       

      “Inventory”
shall
        mean
        all “inventory” (as defined in the UCC) now owned or hereafter acquired by any
        Grantor or in which any Grantor has or acquires any rights.

       

      “Investment
        Property”
shall mean all “investment property” (as defined in the UCC) now owned or
        hereafter acquired by any Grantor or in which any Grantor has or acquires
        any
        rights and, in any event, shall include all “certificated securities”,
“uncertificated securities”, “security entitlements”, “securities accounts”,
“commodity contracts” and “commodity accounts” (as all such terms are defined in
        the UCC) of each Grantor.

       

      “Letter-of-Credit
        Rights” shall mean “letter-of-credit rights” (as defined in the UCC), now
        owned or hereafter acquired by any Grantor.

       

      “License”
shall
        mean
        any Copyright License, Patent License, Trademark License or other license
        of
        rights or interests of each Grantor in Intellectual Property.

       

      “Patent
        License” shall
        mean any written agreement now owned or hereafter acquired by any Grantor
        or in
        which any Grantor has or acquires any rights granting any right with respect
        to
        any property, process or other invention on which a Patent is in
        existence.

       

      “Patents”
shall
        mean
        all of the following now owned or hereafter acquired by any Grantor or in
        which
        any Grantor has or acquires any rights: (a) all letters patent of the United
        States or any other country, all registrations and recordings thereof, and
        all
        applications for letters patent of the United States or any other country,
        including registrations, recordings and applications in the United States
        Patent
        and Trademark Office or in any similar office or agency of the United States,
        any State or Territory thereof, or any other country; and (b) all reissues,
        continuations, continuations-in-part and extensions thereof.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      “Pledged
        Notes” means
        the promissory notes, endorsed by the applicable Grantor, and instruments
        described on Schedule IV attached hereto other than Excluded
        Property.

      

      “Proceeds”
shall
        mean
        all “proceeds” (as defined in Section 9-102(a)(64) of the UCC).

       

      “Secured
        Obligations”
shall mean (i) with respect to the Borrower, all Obligations of the
        Borrower,
        (ii) with respect to any Grantor, all Guaranteed Obligations (as such term
        is
        defined in the Subsidiary Guaranty) of each such Grantor under the Subsidiary
        Guaranty Agreement.

       

      “Secured
        Parties”
shall mean the Administrative Agent, the Lenders, the Specified Hedge Providers and the
        Specified Treasury
        Management Providers.

       

       “Security
        Interests”
shall mean the security interests granted to the Administrative Agent
        on its
        behalf and on behalf of the Secured Parties pursuant to Section 3, as well
        as
        all other security interests created or assigned as additional security for
        the
        Secured Obligations pursuant to the provisions of this Agreement.

       

      “Significant
        Intellectual
        Property” means Intellectual Property that is material to the business
        operations of the Grantors, taken as a whole.

       

      “Software”
shall
        mean
        all “software” (as defined in the UCC), now owned or hereafter acquired by any
        Grantor.

       

      “Specified
        Hedge
        Provider” means each party to a Hedging Transaction incurred to limit
        interest rate or fee fluctuation with respect to the Loans and Letters of
        Credit
        if at the date of entering into such Hedging Transaction such person was
        a
        Lender or an Affiliate of a Lender and such person executes and delivers
        to the
        Administrative Agent a letter agreement in form and substance acceptable
        to the
        Administrative Agent pursuant to which such person (i) appoints the
        Administrative Agent as its agent under the applicable Loan Documents and
        (ii)
        agrees to be bound by the provisions of Article 9 and 10 of the Credit
        Agreement.

       

      “Specified
        Treasury
        Management Provider” means each Lender or an Affiliate of a Lender that
        offers products of the type described in the definition of “Treasury Management
        Obligations” contained in the Credit Agreement and such person executes and
        delivers to the Administrative Agent a letter agreement in form and substance
        acceptable to the Administrative Agent pursuant to which such person (i)
        appoints the Administrative Agent as its agent under the applicable Loan
        Documents and (ii) agrees to be bound by the provisions of Article 9 and
        10 of
        the Credit Agreement.

       

      "Supporting
        Obligations" means all “supporting obligations” (as defined in the
        UCC).

       

      "Termination
        Time"
        means the time that all Secured Obligations (other than (i) Obligations related
        to Hedging Obligations except to the extent due on or prior to the Termination
        Time, (ii) Obligations related to Treasury Management Services except to
        the
        extent due on or prior to the Termination Time and (iii) Unasserted Contingent
        Obligations) have been paid in full in cash, all Commitments have been
        terminated or otherwise reduced to zero and all LC Exposure has either been
        cash
        collateralized or back stopped by one or more letters of credit in form
        acceptable to the Issuing Lender and in an amount equal to 103% of such LC
        Exposure.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      “Trademark
        License”
shall mean any written agreement now owned or hereafter acquired by
        any Grantor
        or in which any Grantor has or acquires any such rights granting to any Grantor
        any right to use any Trademark.

       

      “Trademarks”
shall
        mean all of the following now owned or hereafter acquired by any Grantor
        or in
        which any Grantor has or acquires any such rights: (i) all trademarks, trade
        names, corporate names, company names, business names, fictitious business
        names, trade styles, service marks, logos, other source or business identifiers,
        prints and labels on which any of the foregoing have appeared or appear,
        designs
        and general intangibles of like nature (whether registered or unregistered),
        now
        owned or existing or hereafter adopted or acquired, all registrations and
        recordings thereof, and all applications in connection therewith, including,
        without limitation, registrations, recordings and applications in the United
        States Patent and Trademark Office or in any similar office or agency of
        the
        United States, any State thereof or any other country or any political
        subdivision thereof, (ii) all reissues, extensions or renewals thereof and
        (iii)
        all goodwill associated with or symbolized by any of the foregoing.

       

      “UCC”
shall
        mean the
        Uniform Commercial Code as in effect, from time to time, in the State of
        New
        York; provided
        that if by reason of mandatory provisions of law, the perfection or the effect
        of perfection or non-perfection of the Security Interests in any Collateral
        is
        governed by the Uniform Commercial Code as in effect in a jurisdiction other
        than New York, “UCC” shall mean the Uniform Commercial Code as in effect in such
        other jurisdiction for purposes of the provisions hereof relating to such
        perfection or effect of perfection or non-perfection.

       

      “Unasserted
        Contingent
        Obligations” mean, at any time, Secured Obligations for taxes, costs,
        indemnifications, reimbursements, damages and other liabilities and contingent
        payments in respect of Treasury Management Obligations or obligations described
        in clause (d) of the definition of "Obligations" in the Credit Agreement
        (excluding contingent reimbursement obligations in respect of amounts that
        may
        be drawn under outstanding letters of credit or contingent payments that
        may be
        payable upon termination of a Hedging Agreement), in each case, in respect
        of
        which no assertion of liability (whether oral or written) and no claim or
        demand
        for payment (whether oral or written) has been made (and, in the case of
        Secured
        Obligations for indemnification, no notice for indemnification has been issued
        by the indemnitee) at such time.

       

      “United
        States” or
“U.S.”
shall
        mean the United States of America, any of the fifty states thereof, and the
        District of Columbia.

       

      SECTION
        2. Representations
        and Warranties.  Each Grantor
        represents and warrants to the Administrative Agent, for the benefit of Secured
        Parties, as follows:

       

      (a) Such
        Grantor has rights in and the power to transfer each item of the Collateral
        upon
        which it purports to grant a Lien hereunder and has good and marketable title
        to
        all of its Collateral, free and clear of any Liens other than Liens expressly
        permitted under Section 7.2 of the Credit Agreement.

       

      (b) Other
        than
        financing statements, security agreements, or other similar or equivalent
        documents or instruments with respect to Liens expressly permitted under
        Section
        7.2 of the Credit Agreement, no financing statement, mortgage, security
        agreement or similar or equivalent document or instrument evidencing a Lien
        on
        all or any part of the Collateral is on file or of record in any
        jurisdiction.  None of the Collateral is in the possession of a Person
        (other than any Grantor) asserting any claim thereto or security interest
        therein (except Liens permitted by Section 7.2 of the Credit Agreement),
        except
        that the Administrative Agent or its designee may have possession of Collateral
        as contemplated hereby.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (c) When
        the
        UCC financing statements in appropriate form are filed in the offices specified
        on Schedule I
        attached hereto, the Security Interests shall constitute valid and perfected
        security interests in the Collateral, prior to all other Liens and rights
        of
        others therein except for the Liens expressly permitted under Section 7.2
        of the
        Credit Agreement, to the extent that a security interest therein may be
        perfected by filing pursuant to the UCC, assuming the proper filing and indexing
        thereof.

       

      (d) All
        Collateral is insured in accordance with the requirements of Section 5.8
        of the
        Credit Agreement.

       

      (e) None
        of
        the Collateral constitutes, or is the Proceeds of, “farm products” (as defined
        in the UCC).

       

      (f) As
        of the
        Closing Date, Schedule
        II correctly sets forth each Grantor’s state of organization, taxpayer
        identification number, organizational identification number and correct legal
        name indicated on the public record of such Grantor’s jurisdiction of
        organization which shows such Grantor to be organized.

       

      (g) As
        of the
        Closing Date, the Perfection Certificate, which is attached hereto as Schedule III,
        correctly sets forth (i) all names and tradenames that each Grantor has
        used within the last five (5) years and the names of all Persons that have
        merged into or been acquired by each Grantor, (ii) the chief executive
        offices of each Grantor over the last five (5) years, (iii) all other
        locations in which tangible assets of each Grantor are located, (iv) the
        name of each bank at which each Grantor maintains Deposit Accounts, the state
        or
        other jurisdiction of location of each such bank, and the account numbers
        for
        each Deposit Account, (v) all letters of credit with a stated amount of in
        excess of $1,000,000 under which each Grantor is a beneficiary, (vi) all
        third parties with possession of any Inventory or Equipment with a fair market
        value in excess of $500,000 of each Grantor and (vii) each Grantor’s
        mailing address.

       

      (h) With
        respect to the Accounts of the Grantors:  (i) there has been no
        development or event in respect of the validity or enforcement of any Account
        or
        Accounts or the amount payable thereunder as shown on the applicable Grantor’s
        books and records and all invoices and statements delivered to the
        Administrative Agent with respect thereto, which individually or in the
        aggregate has had or could be reasonably expected to have a Material Adverse
        Effect and (ii) the right to receive payment under each Account is assignable
        except where the Account Debtor with respect to such Account is the United
        States government or any State government or any agency, department or
        instrumentality thereof, to the extent the assignment of any such right to
        payment is prohibited or limited by applicable law, regulations, administrative
        guidelines or contract, which individually or in the aggregate has had or
        could
        be reasonably expected to have a Material Adverse Effect.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (i) With
        respect to any Inventory, the representations and warranties of each Grantor
        set
        forth in its respective Perfection Certificate are true and correct in all
        material respects, as of the Closing Date.

       

      (j) As
        of the
        Closing Date, such Grantor does not have any interest in, or title to, any
        registered Patent, Trademark or Copyright that constitutes Significant
        Intellectual Property except as set forth in the Perfection
        Certificate.  This Agreement is effective to create a valid and
        continuing Lien on and, upon filing of the Copyright Security Agreements
        (as
        hereinafter defined) with the United States Copyright Office and filing of
        the
        Patent Security Agreements (as hereinafter defined) and the Trademark Security
        Agreements (as hereinafter defined) with the United States Patent and Trademark
        Office, perfected security interests in favor of the Administrative Agent
        in
        such Grantor’s Patents, Trademarks and Copyrights that are registered in the
        United States and such perfected security interests are enforceable as such
        as
        against any and all creditors of and purchasers from such
        Grantor.  Upon filing of the Copyright Security Agreements with the
        United States Copyright Office and filing of the Patent Security Agreements
        and
        the Trademark Security Agreements with the United States Patent and Trademark
        Office and the filing of appropriate financing statements listed on Schedule
        I
        hereto, all action necessary or desirable to protect and perfect the
        Administrative Agent’s Lien on such Grantor’s Patents, Trademarks or Copyrights
        shall have been duly taken.  Notwithstanding anything to the contrary
        contained in this Agreement, the Administrative Agent shall only require
        perfection of its security interests in, or other registration with respect
        to,
        any Patent, Trademark or Copyright registered, or eligible to be registered,
        with a country other than the United States or any political subdivision
        thereof, to the extent that (i) such Patent, Trademark or Copyright constitutes
        Significant Intellectual Property and (ii) the Administrative Agent determines,
        in its sole discretion, that such Patent, Trademark or Copyright, and the
        registration thereof in such other country or political subdivision thereof,
        is
        material to the applicable Grantor’s business, taken as a whole.

       

      (k) Each
        of
        the Pledged Notes purported to be pledged hereunder is the legal, valid and
        binding obligation of the obligor thereof, enforceable in accordance with
        its
        terms; each of the Pledged Notes has been duly authorized, authenticated
        or
        issued and delivered by the issuer thereof, and no such issuer is in default
        thereunder[]. Except as disclosed on Schedule IV hereto,
        none of the Pledged Notes are subordinated in right of payment to other
        indebtedness (except for the Secured Obligations) or subject to the terms
        of an
        indenture.

       

      SECTION
        3. The
        Security Interests.

       

      (a) In
        order
        to secure the full and punctual payment and performance of the Secured
        Obligations in accordance with the terms of the Credit Agreement, each Grantor
        hereby pledges, assigns, hypothecates, sets over and conveys to the
        Administrative Agent on its behalf and on behalf of the Secured Parties and
        grants to the Administrative Agent on its behalf and on behalf of the Secured
        Parties a continuing security interest in and to, all of its rights in and
        to
        all Collateral now or hereafter owned or acquired by such Grantor or in which
        such Grantor now has or hereafter has or acquires any rights, and wherever
        located.  The Security Interests are granted as security only and
        shall not subject the Administrative Agent or any Secured Party to, or transfer
        to the Administrative Agent or any Secured Party, or in any way affect or
        modify, any obligation or liability of the Grantor with respect to any
        Collateral or any transaction in connection therewith.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b)           
        Notwithstanding anything herein to the contrary, the Collateral shall exclude
        an
        interest in more than sixty-five percent (65%) of the Capital Stock of any
        Foreign Subsidiary.

       

      (c)           
        Notwithstanding anything herein to the contrary, the Collateral shall not
        include any Capital Stock owned by any Grantor to the extent such Capital
        Stock
        is validly pledged by such Grantor pursuant to the terms of the Pledge
        Agreement.

       

      (d)           
        Notwithstanding anything herein to the contrary, this Agreement shall not
        operate as a sale, transfer, conveyance or other assignment to Administrative
        Agent of any applications by any Grantor to register Trademarks under section
        1(b) of the Lanham Act, unless and until an amendment to allege use is filed
        pursuant to section 1(c) of the Lanham Act or a verified statement of use
        is
        filed pursuant to section 1(d) of the Lanham Act, but rather, until such
        time as
        an amendment to allege use or a verified statement of use is filed, this
        Agreement shall operate only to create a security interest for collateral
        purposes in favor of Administrative Agent on such Trademark application as
        Collateral for the Obligations.

       

      SECTION
        4. Further
        Assurances;
        Covenants.

       

      (a) General.

       

      (i) No
        Grantor
        shall change the location of its chief executive office or principal place
        of
        business unless it shall have given the Administrative Agent fifteen (15)
        days’
prior notice thereof, as well as executed and delivered to the Administrative
        Agent all financing statements and financing statement amendments which the
        Administrative Agent may request in connection therewith.

       

      (ii) No
        Grantor
        shall change its name, organizational identification number, identity or
        jurisdiction or form of organization in any manner unless it shall have given
        the Administrative Agent thirty (30) days’ prior written notice thereof, and
        executed and delivered to the Administrative Agent all financing statements
        and
        financing statement amendments which the Administrative Agent may reasonably
        request in connection therewith.  No Grantor shall merge or
        consolidate into, or transfer any of the Collateral to, any other Person
        other
        than another Grantor, other than as permitted by the Credit
        Agreement.

       

      (iii) Each
        Grantor hereby authorizes the Administrative Agent, its counsel or its
        representative, at any time and from time to time, to file financing statements
        and amendments that describe the collateral covered by such financing statements
        as “all assets of the Grantor”, “all personal property of the Grantor” or words
        of similar effect, in such jurisdictions as are necessary or desirable in
        order
        to perfect the security interests granted by such Grantor under this
        Agreement.  Each Grantor will, from time to time, at its expense,
        execute, deliver, file and record any statement, assignment, instrument,
        document, agreement or other paper and take any other action (including,
        without
        limitation, any filings with the United States Patent and Trademark Office,
        Copyright or Patent filings and any filings of financing or continuation
        statements under the UCC) that from time to time may be necessary, or that
        the
        Administrative Agent may reasonably request, in order to create, preserve,
        upgrade in rank (to the extent required hereby), perfect (to the extent required
        hereby), confirm or validate the Security Interests or to enable the
        Administrative Agent to obtain the full benefits of this Agreement, or to
        enable
        the Administrative Agent to exercise and enforce any of its rights, powers
        and
        remedies hereunder with respect to any of its Collateral.  Each
        Grantor hereby authorizes the Administrative Agent to execute and file financing
        statements, financing statement amendments or continuation statements on
        behalf
        of such Grantor.  Each Grantor agrees that a carbon, photographic,
        photostatic or other reproduction of this Agreement or of a financing statement
        is sufficient as a financing statement.  Grantors shall pay the costs
        of, or incidental to, any recording or filing of any financing statements,
        financing statement amendments or continuation statements necessary in the
        sole
        discretion of the Administrative Agent, to perfect the Administrative Agent
        and
        Secured Parties’ security interest in the Collateral.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (iv) No
        Grantor
        shall (A) sell, transfer, lease, exchange, assign or otherwise dispose of,
        or
        grant any option, warrant or other right with respect to, any of its Collateral
        other than sales of assets permitted under the Credit Agreement; or (B) create,
        incur or suffer to exist any Lien with respect to any Collateral, except
        for the
        Liens expressly permitted under the Credit Agreement.

       

      (v) Each
        Grantor will, promptly upon request, provide to the Administrative Agent
        all
        information and evidence it may reasonably request concerning the Collateral,
        to
        enable the Administrative Agent to enforce the provisions of this
        Agreement.

       

      (vi) Each
        Grantor shall take all actions necessary or reasonably requested by the
        Administrative Agent in order to maintain the perfected (to the extent such
        perfection is required by the terms hereof) status of the Security
        Interests.

       

      (vii) Unless
        authorized by the Administrative Agent, no Grantor shall file any amendment
        to
        or termination of a financing statement naming any Grantor as debtor and
        the
        Administrative Agent as secured party, or any correction statement with respect
        thereto, in any jurisdiction until the Termination Time.

       

      (viii) Each
        Grantor shall take all steps necessary to grant the Administrative Agent
        control
        of all electronic chattel paper in accordance with the UCC and all “transferable
        records” as defined in each of the Uniform Electronic Transactions Act and the
        Electronic Signatures in Global and National Commerce Act.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) Accounts,
        Etc.

       

      (i) Upon
        the
        occurrence and during the continuance of any Event of Default, each Grantor
        shall, at the request and option of the Administrative Agent, notify Account
        Debtors and other Persons obligated on the Accounts or any of the Collateral
        of
        the security interest of Administrative Agent in any Account or other Collateral
        and that payment thereof is to be made directly to the  Administrative
        Agent, and may itself, if an Event of Default shall have occurred and be
        continuing, without notice to or demand upon any Grantor, so notify Account
        Debtors and other Persons obligated on Collateral.  After the making
        of such a request or the giving of any such notification, each Grantor shall
        hold any proceeds of collection of the Accounts and such other Collateral
        received by such Grantor as trustee for the  Administrative Agent
        without commingling the same with other funds of such Debtor and shall turn
        the
        same over to the  Administrative Agent in the identical form received,
        together with any necessary endorsements or assignments.  The
        Administrative Agent shall apply the proceeds of collection of the Accounts
        and
        other Collateral received by the Administrative Agent to the Obligations
        in
        accordance with the provisions of the Credit Agreement, such proceeds to
        be
        immediately credited after final payment in cash or other immediately available
        funds of the items giving rise to them..

       

      (ii) Each
        Grantor will perform under and comply with the provisions of Section 5.4 and Section
        5.5 of the
        Credit Agreement.

       

      (iii) Anything
        herein to the contrary notwithstanding, each of the Grantors shall remain
        liable
        under each of its Accounts, contracts and agreements to observe and perform
        all
        the conditions and obligations to be observed and performed by it thereunder,
        all in accordance with the terms of any agreement giving rise to each such
        Account or the terms of such contract or agreement.  Neither the
        Administrative Agent nor any Lender shall have any obligation or liability
        under
        any Account (or any agreement giving rise thereto), contract or agreement
        by
        reason of or arising out of this Agreement or the receipt by the Administrative
        Agent or any Lender of any payment relating to such Account, contract or
        agreement pursuant hereto, nor shall the Administrative Agent or any Lender
        be
        obligated in any manner to perform any of the obligations of any Grantor
        under
        or pursuant to any Account (or any agreement giving rise thereto), contract
        or
        agreement, to make any payment, to make any inquiry as to the nature or the
        sufficiency of any payment received by it or as to the sufficiency of any
        performance by any party under any Account (or any agreement giving rise
        thereto), contract or agreement, to present or file any claim, to take any
        action to enforce any performance or to collect the payment of any amounts
        which
        may have been assigned to it or to which it may be entitled at any time or
        times.

       

      (iv) At
        any
        time and from time to time during the continuance of an Event of Default,
        the
        Administrative Agent shall have the right, but not the obligation, to make
        test
        verifications of the Accounts in any manner and through any medium that it
        reasonably considers advisable, and the Grantors shall furnish all such
        assistance and information as the Administrative Agent may reasonably require
        in
        connection with such test verifications.  During the continuance of an
        Event of Default, the Administrative Agent in its own name or in the name
        of
        others may communicate with Account Debtors on the Accounts to verify with
        them
        to the Administrative Agent’s reasonable satisfaction the existence, amount and
        terms of any Accounts.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (c) Patents,
        Trademarks,
        Etc.  Each Grantor shall notify the Administrative Agent at the
        time that the Borrower is required to deliver a Compliance Certificate of
        the
        occurrence of each of the following (i) such Grantor’s acquisition after the
        date of this Agreement of any Significant Intellectual Property and (ii)
        a
        Responsible Officer of such Grantor obtaining knowledge, or reason to know,
        that
        any application or registration relating to any Significant Intellectual
        Property owned by or licensed to such Grantor is reasonably likely to become
        abandoned or dedicated, or of any material adverse determination or development
        (including, without limitation, the institution of, or any such determination
        or
        development in, any proceeding in the United States Copyright Office, the
        United
        States Patent and Trademark Office or any court) regarding such Grantor’s
        ownership of any Significant Intellectual Property, its right to register
        the
        same, or to keep and maintain the same.  Each Grantor will,
        contemporaneously herewith, execute and deliver to the Administrative Agent
        the
        Patent Security Agreement, Trademark Security Agreement and Copyright Security
        Agreement in the forms of Exhibit A, Exhibit
        B and Exhibit
        C hereto, as
        necessary, and shall execute and deliver to the Administrative Agent any
        other
        document required to acknowledge or register or perfect in the United States
        the
        Administrative Agent’s interest in any part of the Intellectual
        Property.  Notwithstanding anything to the contrary contained in this
        Agreement, the Administrative Agent shall only require perfection of its
        security interests in, or other registration with respect to, any Patent,
        Trademark or Copyright registered, or eligible to be registered, with a country
        other than the United States or any political subdivision thereof, to the
        extent
        that (i) such Patent, Trademark or Copyright constitutes Significant
        Intellectual Property and (ii) the Administrative Agent determines, in its
        reasonable discretion, that such Patent, Trademark or Copyright, and the
        registration thereof in such other country or political subdivision thereof,
        is
        material to the applicable Grantor’s business, as a whole.

       

      (d) Deposit
        Accounts, Chattel
        Paper, Investment Property and Letters of Credit.

       

      (i) If
        an
        Event of Default exists and is continuing, each Grantor will use commercially
        reasonable efforts to grant Administrative Agent "control" over its Deposit
        Accounts promptly upon request of Administrative Agent.

       

      (ii) No
        Grantor
        shall become the beneficiary of any Letters of Credit having a stated amount
        of
        in excess of $1,000,000, unless such Grantor shall use commercially reasonable
        efforts to cause the issuer of such Letter of Credit to consent to the
        assignment.

       

      (iii) Each
        Grantor, at any time and from time to time, will (a) take such steps as the
        Administrative Agent may reasonably request from time to time for the
        Administrative Agent to obtain “control” of any Investment Property that is
        Collateral (other than a Securities Account (as defined in the UCC)), except
        after the occurrence of an Event of Default) with a fair market value in
        excess
        of $500,000 or electronic Chattel Paper with a fair market value in excess
        of
        $500,000, with any agreements establishing control to be in form and substance
        reasonably satisfactory to the Administrative Agent, and (b) otherwise to
        insure
        the continued perfection and priority of the Administrative Agent’s security
        interest in any of the Collateral described in clause (a) and of the
        preservation of its rights therein.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (e) Commercial
        Tort
        Claims.  If any Grantor shall at any time acquire a “commercial
        tort claim” (as such term is defined in the UCC) with a claim for damages that
        could reasonably be expected to be in excess of Five Hundred Thousand Dollars
        ($500,000), such Grantor shall promptly notify the Administrative Agent thereof
        in a writing, providing a reasonable description and summary thereof, and
        shall
        execute a supplement to this Agreement granting a security interest in such
        commercial tort claim to the Administrative Agent.

       

      (f) Maintenance
        of Properties;
        Insurance.  Each Grantor shall maintain and insure the
        Collateral in accordance with the provisions of Section 5.8 of the
        Credit Agreement.  

       

      SECTION
        5. Reporting
        and Recordkeeping.  Each Grantor
        covenants and agrees with the Administrative Agent that from and after the
        date
        of this Agreement and until the Secured Obligations have been indefeasibly
        paid
        in full in cash:

       

      (a) Maintenance
        of Records
        Generally.  Each Grantor will keep and maintain at its own cost
        and expense records of its Collateral in accordance with the provisions of
Section 5.6 of the
        Credit Agreement. Upon reasonable prior notice, each Grantor will mark its
        books
        and records pertaining to its Collateral to evidence this Agreement and the
        Security Interests. Upon reasonable prior notice, all Chattel Paper will
        be
        marked with the following legend: “This writing and the obligations evidenced or
        secured hereby are subject to the security interest of SunTrust Bank, as
        Administrative Agent.”  For the Administrative Agent’s further
        security, each Grantor agrees that the Administrative Agent shall have a
        security interest in all of such Grantor’s books and records pertaining to its
        Collateral and, upon the occurrence and during the continuation of any Event
        of
        Default, such Grantor shall deliver and turn over full and complete copies
        of
        any such books and records to the Administrative Agent or to its representatives
        at any time on demand of the Administrative Agent.  Upon reasonable
        notice from the Administrative Agent, each Grantor shall permit any
        representative of the Administrative Agent, to inspect such books and records
        and will provide photocopies thereof to the Administrative Agent.

       

      (b) Notices
        of Material Events;
        Special Provisions Regarding Government Receivables;

       

      (i) Each
        Grantor will furnish to the Administrate Agent notices of material events
        in
        accordance with Section 5.2 of the
        Credit Agreement.

       

      (ii) After
        the
        occurrence of an Event of Default, if any Account, arises out of a contract
        with
        the United States of America, or any department, agency, subdivision or
        instrumentality thereof, or of any state (or department, agency, subdivision
        or
        instrumentality thereof) where such state has a state assignment of claims
        act
        or other law comparable to the Federal Assignment of Claims Act, such Grantor
        will take any action required or requested by the Administrative Agent to
        give
        notice of the Administrative Agent’s security interest in such Accounts under
        the provisions of the Federal Assignment of Claims Act or any comparable
        law or
        act enacted by any state or local governmental authority.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (c) Further
        Identification of
        Collateral.  Each Grantor will if so requested by the
        Administrative Agent furnish to the Administrative Agent, as often as the
        Administrative Agent reasonably requests but in no event more frequently
        than
        once per calendar quarter and without limit after the occurrence and during
        the
        continuance of an Event of Default, statements and schedules further identifying
        and describing the Collateral and such other reports in connection with the
        Collateral as the Administrative Agent may reasonably request, all in reasonable
        detail.

       

      (d) Other
        Notices.  In addition to the notices required by Section
        5(b) hereof,
        each Grantor will advise the Administrative Agent promptly, but in no event
        later than thirty (30) days after the occurrence thereof, in reasonable detail,
        (i) of any Lien or claim made or asserted against any of the Collateral
        that is not expressly permitted by the terms of the Credit Agreement, and
        (ii)
        of the occurrence of any other event which would have a material adverse
        effect
        on the aggregate value of the Collateral or on the validity, perfection or
        priority of the Security Interests.

       

      SECTION
        6. General
        Authority.  Each Grantor hereby irrevocably appoints, so long
        as any Obligations remain outstanding, the Administrative Agent its true
        and
        lawful attorney, with full power of substitution, in the name of such Grantor,
        the Administrative Agent or otherwise, for the sole use and benefit of the
        Administrative Agent on its behalf and on behalf of the Secured Parties,
        but at
        such Grantor’s expense, to exercise, at any time (subject to the proviso below)
        all or any of the following powers:

       

      (i) to
        file
        the financing statements, financing statement amendments and continuation
        statements referred to in Section 4(a)(iii),

       

      (ii) to
        demand,
        sue for, collect, receive and give acquittance for any and all monies due
        or to
        become due with respect to any Collateral or by virtue thereof,

       

      (iii) to
        settle,
        compromise, compound, prosecute or defend any action or proceeding with respect
        to any Collateral,

       

      (iv) to
        sell,
        transfer, assign or otherwise deal in or with the Collateral or the proceeds
        or
        avails thereof, as fully and effectually as if the Administrative Agent were
        the
        absolute owner thereof, and

       

      (v) to
        extend
        the time of payment of any or all thereof and to make any allowance and other
        adjustments with reference to the Collateral;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      provided,
however,
        that the
        powers described in clauses (ii), (iii), (iv) and (v) above may be exercised
        by
        the Administrative Agent only if an Event of Default then exists and is
        continuing.

      

      SECTION
        7. Events
        of
        Default.  Each of the
        following specified events shall constitute an Event of Default under this
        Agreement:

       

      (a) The
        existence or occurrence of any “Event of Default” as provided under the terms of
        the Credit Agreement;

       

      (b) 
        Any
        representation or warranty made by or on behalf of any Grantor under or pursuant
        to this Agreement shall have been false or misleading in any material respect
        when made; or

       

      (c) Any
        Grantor shall fail to observe or perform any covenant or agreement set forth
        in
        this Agreement other than those referenced in paragraphs (a) and (b) above,
        and
        if such failure is capable of being remedied, such failure shall remain
        unremedied for thirty (30) days after notice from the Administrative
        Agent.

       

      SECTION
        8. Remedies
        upon Event of
        Default.

       

      (a) If
        any
        Event of Default has occurred and is continuing, the Administrative Agent
        may,
        without further notice, exercise all rights and remedies under this Agreement
        or
        any other Loan Document or that are available to a secured creditor under
        the
        UCC or that are otherwise available at law or in equity, at any time, in
        any
        order and in any combination, including to collect any and all Secured
        Obligations from the Grantors, and, in addition, the Administrative Agent
        may
        sell the Collateral or any part thereof at public or private sale, for cash,
        upon credit or for future delivery, and at such price or prices as the
        Administrative Agent may deem satisfactory.  The Administrative Agent
        shall give the Borrower not less than ten (10) days’ (or such longer period as
        may be afforded by the UCC) prior written notice of the time and place of
        any
        sale or other intended disposition of Collateral, except any Collateral which
        is
        perishable or threatens to decline speedily in value or is of a type customarily
        sold on a recognized market.  Each Grantor agrees that any such notice
        constitutes "reasonable notification" within the meaning of Section 9-611
        of the UCC (to the extent such Section or any successor provision under the
        UCC
        is applicable).

       

      (b) The
        Administrative Agent may be the purchaser of any or all of the Collateral
        so
        sold at any public sale (or, if such Collateral is of a type customarily
        sold in
        a recognized market or is of a type which is the subject of widely distributed
        standard price quotations or if otherwise permitted under applicable law,
        at any
        private sale) and thereafter hold the same, absolutely, free from any right
        or
        claim of whatsoever kind.  Each Grantor agrees during an Event of
        Default to execute and deliver such documents and take such other action
        as the
        Administrative Agent deems necessary or advisable in order that any such
        sale
        may be made in compliance with law.  Upon any such sale the
        Administrative Agent shall have the right to deliver, assign and transfer
        to the
        purchaser thereof the Collateral so sold.  Each purchaser at any such
        sale shall hold the Collateral so sold to it absolutely, free from any claim
        or
        right of any kind, including any equity or right of redemption of the
        Grantors.  To the extent permitted by law, each Grantor hereby
        specifically waives all rights of redemption, stay or appraisal which it
        has or
        may have under any law now existing or hereafter adopted.  The notice
        (if any) of such sale shall (1) in case of a public sale, state the time
        and
        place fixed for such sale, and (2) in the case of a private sale, state the
        day
        after which such sale may be consummated.  To the extent permitted by
        applicable law, any such public sale shall be held at such time or times
        within
        ordinary business hours and at such place or places as the Administrative
        Agent
        may fix in the notice of such sale.  At any such sale Collateral may
        be sold in one (1) lot as an entirety or in separate parcels, as the
        Administrative Agent may determine.  To the extent permitted by
        applicable law, the Administrative Agent shall not be obligated to make any
        such
        sale pursuant to any such notice.  The Administrative Agent may,
        without notice or publication (other than any notices required by this Section 8 or by
        applicable law), 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
        the
        sale, and such sale may be made at any time or place to which the same may
        be so
        adjourned.  In case of any sale of all or any part of the Collateral
        on credit or for future delivery, such Collateral so sold may be retained
        by the
        Administrative Agent until the selling price is paid by the purchaser thereof,
        but the Administrative Agent shall not incur any liability in case of the
        failure of such purchaser to take up and pay for such Collateral so sold
        and, in
        case of any such failure, such Collateral may again be sold upon like
        notice.  The Administrative Agent, instead of exercising the power of
        sale herein conferred upon it, may proceed by a suit or suits at law or in
        equity to foreclose the Security Interests and sell Collateral, or any portion
        thereof, under a judgment or decree of a court or courts of competent
        jurisdiction.  The Grantors shall remain liable for any
        deficiency.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (c) For
        the
        purpose of enforcing any and all rights and remedies under this Agreement,
        the
        Administrative Agent may (i) require any Grantor to, and each Grantor agrees
        that it will, at the joint and several expense of the Grantors, and upon
        the
        request of the Administrative Agent, forthwith assemble all or any part of
        its
        Collateral as directed by the Administrative Agent and make it available
        at a
        place designated by the Administrative Agent which is, in the Administrative
        Agent’s opinion, reasonably convenient to the Administrative Agent and such
        Grantor, whether at the premises of such Grantor or otherwise, (ii) to the
        extent permitted by applicable law, enter, with or without process of law
        and
        without breach of the peace, any premise where any such Collateral is or
        may be
        located and, without charge or liability to the Administrative Agent, seize
        and
        remove such Collateral from such premises, (iii) have access to and use such
        Grantor’s books and records, computers and software (subject to the terms of
        applicable licenses) relating to the Collateral, and (iv) prior to the
        disposition of any of the Collateral, store or transfer such Collateral without
        charge in or by means of any storage or transportation facility owned or
        leased
        by such Grantor, process, repair or recondition such Collateral or otherwise
        prepare it for disposition in any manner and to the extent the Administrative
        Agent deems appropriate and, in connection with such preparation and
        disposition, use without charge any trademark, trade name, copyright, patent
        or
        technical process used such Grantor.

       

      (d) Without
        limiting the generality of the foregoing, if any Event of Default has occurred
        and is continuing:

       

      (i) the
        Administrative Agent may (without assuming any obligations or liability
        thereunder), at any time and from time to time, enforce (and shall have the
        exclusive right to enforce) against any licensee or sublicensee all rights
        and
        remedies of any Grantor in, to and under any Licenses and take or refrain
        from
        taking any action under any thereof, and each Grantor hereby releases the
        Administrative Agent from, and agrees to hold the Administrative Agent free
        and
        harmless from and against any claims arising out of, any lawful action so
        taken
        or omitted to be taken with respect thereto except for the
        Administrative Agent’s gross negligence or willful misconduct as determined by a
        final and nonappealable decision of a court of competent jurisdiction;
        and

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (ii) upon
        request by the Administrative Agent, each Grantor agrees to execute and deliver
        to the Administrative Agent powers of attorney, in form and substance
        satisfactory to the Administrative Agent, for the implementation of any lease,
        assignment, license, sublicense, grant of option, sale or other disposition
        of
        any Intellectual Property, in each case subject to the terms of the applicable
        License.  In the event of any such disposition pursuant to this
        Section, each Grantor shall supply its know-how and expertise relating to
        the
        manufacture and sale of the products bearing Trademarks or the products or
        services made or rendered in connection with Patents or Copyrights, and its
        customer lists and other records relating to such Intellectual Property and
        to
        the distribution of said products, to the Administrative Agent.

       

      SECTION
        9. Limitation
        on Duty of Administrative Agent in Respect of Collateral.  Beyond reasonable
        care in the custody thereof, the Administrative Agent shall have no duty
        as to
        any Collateral of any Grantor in its possession or control or in the possession
        or control of any agent or bailee or any income thereon or as to the
        preservation of rights against prior parties or any other rights pertaining
        thereto.  The Administrative Agent shall be deemed to have exercised
        reasonable care in the custody of the Collateral of the Grantors in its
        possession if such Collateral is accorded treatment substantially equal to
        that
        which it accords its own property, and the Administrative Agent shall not
        be
        liable or responsible for any loss or damage to any of the Grantors’ Collateral,
        or for any diminution in the value thereof, by reason of the act or omission
        of
        any warehouseman, carrier, forwarding agency, consignee or other agent or
        bailee
        selected by the Administrative Agent in good faith.

       

      SECTION
        10. Application
        of Proceeds. The
        proceeds of any sale of, or other realization upon, all or any part of the
        Collateral of the Grantors shall be applied by the Administrative Agent in
        the
        manner set forth in Section 8.2 of the
        Credit Agreement.

       

      SECTION
        11. Concerning
        the Administrative Agent.  The provisions
        of
        Article 9 of the Credit Agreement shall inure to the benefit of the
        Administrative Agent in respect of this Agreement and shall be binding upon
        the
        parties to the Credit Agreement in such respect.  In furtherance and
        not in derogation of the rights, privileges and immunities of the Administrative
        Agent therein set forth:

       

      (a) The
        Administrative Agent is authorized to take all such action as is provided
        to be
        taken by it as the Administrative Agent hereunder or otherwise permitted
        under
        the Credit Agreement and all other action reasonably incidental
        thereto.  As to any matters not expressly provided for herein or
        therein, the Administrative Agent may request instructions from the Lenders
        and
        shall act or refrain from acting in accordance with written instructions
        from
        the Required Lenders or, in the absence of such instructions, in accordance
        with
        its discretion.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (b) The
        Administrative Agent shall not be responsible for the existence, genuineness
        or
        value of any of the Grantors’ Collateral or for the validity, perfection,
        priority or enforceability of the Security Interests, whether impaired by
        operation of law or by reason of any action or omission to act on its
        part.  The Administrative Agent shall have no duty to ascertain or
        inquire as to the performance or observance of any of the terms of this
        Agreement by the Grantors.

       

      SECTION
        12. Appointment
        of Co-Administrative Agents.  At any time
        or
        times, in order to comply with any legal requirement in any jurisdiction,
        the
        Administrative Agent may appoint another bank or trust company or one (1)
        or
        more other Persons reasonably acceptable to the Required Lenders and, so
        long as
        no Event of Default has occurred or is continuing, the Borrower, either to
        act
        as co-agent or co-agents, jointly with the Administrative Agent, or to act
        as
        separate agent or agents on behalf of the Administrative Agent and the Lenders
        with such power and authority as may be necessary for the effectual operation
        of
        the provisions hereof and specified in the instrument of appointment (which
        may,
        in the discretion of the Administrative Agent, include provisions for the
        protection of such co-agent or separate agent similar to the provisions of
Section 11
        hereof).

       

      SECTION
        13. Expenses.  In
        the event that
        any Grantor fails to comply with the provisions of the Credit Agreement,
        this
        Agreement or any other Loan Document, such that the value of any of its
        Collateral or the validity, perfection, rank or value of the Security Interests
        are thereby diminished or potentially diminished or put at risk, the
        Administrative Agent may, but shall not be required to, effect such compliance
        on behalf of such Grantor, and the Grantors shall jointly and severally
        reimburse the Administrative Agent for the reasonable and actual costs thereof
        on demand.  All insurance expenses and all expenses of protecting,
        storing, warehousing, appraising, insuring, handling, maintaining and shipping
        such Collateral, any and all excise, stamp, intangibles, transfer, property,
        sales, and use taxes imposed by any state, federal, or local authority or
        any
        other governmental authority on any of such Collateral, or in respect of
        periodic appraisals and inspections of such Collateral, or in respect of
        the
        sale or other disposition thereof, shall be borne and paid by the Grantors
        jointly and severally; and if the Grantors fail promptly to pay any portion
        thereof when due, the Administrative Agent may, at its option, but shall
        not be
        required to, pay the same and charge the Grantors’ accounts therefor, and the
        Grantors agree jointly and severally to reimburse the Administrative Agent
        therefor on demand.  All sums so paid or incurred by the
        Administrative Agent for any of the foregoing and any and all other sums
        for
        which the Grantors may become liable hereunder and all reasonable costs and
        expenses (including reasonable attorneys’ fees, legal expenses and court costs)
        incurred by the Administrative Agent in enforcing or protecting the Security
        Interests or any of its rights or remedies thereon shall be payable by the
        Grantors on demand and shall bear interest (after as well as before judgment)
        until paid at the default rate of interest set forth in the Credit Agreement
        and
        shall be additional Secured Obligations hereunder.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      SECTION
        14. Termination
        of Security Interests; Release of Collateral.  Upon the
        Termination Time, the Security Interests shall terminate and all rights to
        the
        Collateral shall revert to the Grantors.  Upon any such termination of
        the Security Interests or release of such Collateral, the Administrative
        Agent
        will promptly upon the Grantor’s request and contemporaneously with any
        refinancing of the Obligations, at the expense of the Borrower, execute and
        deliver to the Borrower such documents as the Grantors shall reasonably request,
        but without recourse or warranty to the Administrative Agent, including but
        not
        limited to written authorization to file termination statements to evidence
        the
        termination of the Security Interests in such Collateral.

       

      SECTION
        15. Notices.  All
        notices,
        requests and other communications to the Grantors or the Administrative Agent
        hereunder shall be delivered in the manner required by the Credit Agreement
        and
        shall be sufficiently given to the Administrative Agent or any Grantor if
        addressed or delivered to them at, in the case of the Administrative Agent
        and
        the Borrower, its addresses and telecopier numbers specified in the Credit
        Agreement and in the case of any other Grantors, at their respective addresses
        and telecopier numbers provided in the Subsidiary Guaranty
        Agreement.  All such notices and communications shall be deemed to
        have been duly given at the times set forth in the Credit
        Agreement.

       

      SECTION
        16. No
        Waiver; Remedies Cumulative.  No failure
        or
        delay on the part of the Administrative Agent in exercising any right or
        remedy
        hereunder, and no course of dealing between any Grantor on the one hand and
        the
        Administrative Agent or any holder of any Note on the other hand shall operate
        as a waiver thereof, nor shall any single or partial exercise of any right
        or
        remedy hereunder or any other Loan Document preclude any other or further
        exercise thereof or the exercise of any other right or remedy hereunder or
        thereunder.  The rights and remedies herein and in the other Loan
        Documents are cumulative and not exclusive of any rights or remedies which
        the
        Administrative Agent would otherwise have.  No notice to or demand on
        the Grantors not required hereunder in any case shall entitle any Grantor
        to any
        other or further notice or demand in similar or other circumstances or
        constitute a waiver of the rights of the Administrative Agent to any other
        or
        further action in any circumstances without notice or demand.

       

      SECTION
        17. Successors
        and Assigns.  This Agreement
        is
        for the benefit of the Administrative Agent and the Lenders and their permitted
        successors and assigns, and in the event of an assignment of all or any of
        the
        Secured Obligations, the rights hereunder, to the extent applicable to the
        indebtedness so assigned, may be transferred with such
        indebtedness.  This Agreement shall be binding on the Grantors and
        their successors and assigns; provided, however,
        that no
        Grantor may assign any of its rights or obligations hereunder without the
        prior
        written consent of the Administrative Agent and the Lenders.

       

      SECTION
        18. Amendments.  No
        amendment or
        waiver of any provision of this Agreement, nor consent to any departure by
        the
        Grantors herefrom, shall in any event be effective unless the same shall
        be in
        writing and signed by the Administrative Agent, and then such waiver or consent
        shall be effective only in the specific instance and for the specific purpose
        for which given.

       

      SECTION
        19. Governing
        Law; Waiver of
        Jury Trial.

       

      (a) THIS
        AGREEMENT AND THE RIGHTS AND SECURED OBLIGATIONS OF THE PARTIES HEREUNDER
        SHALL
        BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW
        YORK, EXCEPT TO THE EXTENT THAT PERFECTION (AND THE EFFECT OF PERFECTION
        AND
        NONPERFECTION) AND CERTAIN REMEDIES MAY BE GOVERNED BY THE LAWS OF ANY
        JURISDICTION OTHER THAN NEW YORK.  THIS AGREEMENT WILL BE DEEMED TO BE
        A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK
        (INCLUDING FOR SUCH PURPOSES SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
        OBLIGATIONS LAW OF THE STATE OF NEW YORK).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (b) GRANTORS
        IRREVOCABLY AND UNCONDITIONALLY SUBMIT, FOR THEMSELF AND THEIR PROPERTY,
        TO THE
        NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
        UNITED
        STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, IN ANY ACTION
        OR
        PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
        DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR FOR RECOGNITION
        OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY
        IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY
        SUCH
        ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT
        OR, TO THE EXTENT PERMITTED BY APPLICABLE LAW, SUCH FEDERAL
        COURT.  EACH GRANTOR AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION
        OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
        BY
        SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
        AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
        ADMINISTRATIVE AGENT, THE ISSUING BANK OR ANY LENDER MAY OTHERWISE HAVE TO
        BRING
        ANY ACTION OR PROCEEDING  RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
        DOCUMENT AGAINST SUCH GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY
        JURISDICTION.

       

      (c) EACH
        GRANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION WHICH IT
        MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION
        OR PROCEEDING DESCRIBED IN PARAGRAPH (B) OF THIS SECTION AND BROUGHT IN ANY
        COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH GRANTOR
        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) EACH
        GRANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS IN THE MANNER PROVIDED
        FOR NOTICES IN THE CREDIT AGREEMENT.  NOTHING IN THIS AGREEMENT OR IN
        ANY OTHER LOAN DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
        PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

       

      (e) EACH
        GRANTOR HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
        LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING AMONG
        THE
        PARTIES HERETO DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY
        OTHER
        LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
        BASED
        ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH GRANTOR (A) CERTIFIES
        THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
        EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
        LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT
        IT
        HAS NOT BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
        BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS
        SECTION.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      SECTION
        20. Severability.
        In case any provision in or
        obligation under this Agreement shall be invalid, illegal or unenforceable,
        in
        whole or in part, in any jurisdiction, the validity, legality and enforceability
        of the remaining provisions or obligations, or of such provision or obligation
        in any other jurisdiction, shall not in any way be affected or impaired
        thereby.

       

      SECTION
        21. Counterparts.  This
        Agreement
        may be executed in any number of counterparts and by the different parties
        hereto on separate counterparts, each of which when so executed and delivered
        shall be an original, but all of which shall together constitute one (1)
        and the
        same instruments.

       

      SECTION
        22. Headings
        Descriptive.  The headings
        of
        the several sections and subsections of this Agreement are inserted for
        convenience only and shall not in any way affect the meaning or construction
        of
        any provision of this Agreement.

       

      SECTION
        23. Additional
        Subsidiaries.  Pursuant to Section
        5.11 of the
        Credit Agreement, each Subsidiary that that is required to become a Subsidiary
        Loan Party after the date of the Credit Agreement is required to enter into
        this
        Agreement as a Grantor upon becoming such a Subsidiary Loan
        Party.  Upon execution and delivery after the date hereof by the
        Administrative Agent and such Subsidiary of an instrument in the form of
        Exhibit
        D, 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 instrument adding an additional Grantor as a party to this
        Security Agreement 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 Security Agreement.

       

       

      [Signature
        Page
        Follows]

       

       

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      IN
        WITNESS
        WHEREOF, Grantor has caused this Agreement to be duly executed and delivered
        by
        their duly authorized officers as of the day and year first above
        written.

      
 

      
        
          	 	
                  MAXIMUS,
                    INC., a
                    Virginia corporation

                	 
	 	 	 	 
	 	
                  By:

                	
                  /s/
                    Richard A. Montoni

                	 
	 	
                  Name:

                	
                  Richard
                    A. Montoni

                	 
	 	
                  Title:

                	
                  President
                    and CEO

                	 
	 	 	 	 
	 	
                  MAXIMUS
                    FEDERAL SERVICES,
                    INC., a Virginia corporation

                	 
	 	 	 
	 	
                  By:

                	
                  /s/
                    David A. Richardson

                	 
	 	
                  Name:

                	
                  David
                    A. Richardson

                	 
	 	
                  Title:

                	
                  Vice
                    President

                	 

        

      

      

       

      

      
        [SIGNATURE
          PAGE TO SECURITY AGREEMENT]a5595833-ex103.htm

     

    Exhibit
      10.3

     

    PLEDGE
      AGREEMENT

    

    

    

    THIS
      PLEDGE AGREEMENT (this “Pledge
      Agreement”),
      dated as of January 25, 2008, among MAXIMUS, INC., a Virginia
      corporation (the “Borrower”), the
      Subsidiaries of the Borrower hereafter a party hereto (each a “Subsidiary Pledgor”
and collectively
      the “Subsidiaries
      Pledgors”; Borrower, each Subsidiary Pledgor and each other Subsidiary
      hereafter becoming a party hereto shall be collectively known as the “Pledgors”, and
      individually as “Pledgor”), in favor
      of SUNTRUST BANK, a
      Georgia banking corporation, as Administrative Agent (the “Administrative
      Agent”), on its behalf and on behalf of the other Secured Parties (as
      defined below).

    

    WITNESSETH:

    

    WHEREAS,
      pursuant to the
      Revolving Credit Agreement, dated as of the date hereof, by and among the
      Borrower, the Administrative Agent, the banks and lending institutions (the
      “Lenders”) from time to time party thereto, and SunTrust Bank, as Issuing Bank
      and as Swingline Lender (as amended, restated, supplemented, or otherwise
      modified from time to time, the “Credit
      Agreement”).

    

    WHEREAS,
      the Lenders have
      agreed to establish a revolving credit facility to the Borrower;

    

    WHEREAS,
      it is a condition
      precedent to the obligations of the Administrative Agent, the Issuing Bank,
      the
      Swingline Lender, and the Lenders under the Credit Agreement that each Pledgor
      grant to Administrative Agent a security interest in all of its Pledged
      Collateral (as defined below), and each Pledgor wishes to fulfill said condition
      precedent;

    

    NOW,
      THEREFORE, in order to
      induce Lenders to extend the Loans and the Issuing Bank to issue Letters of
      Credit and to make the financial accommodations as provided for in the Credit
      Agreement 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.  All capitalized terms used but not otherwise defined
      herein have the meanings given to them in the Credit Agreement.

    

    “Excluded
      Property”
shall mean (i) any contract, General Intangible, property right or agreement
      to
      which any Pledgor is a party or any of its rights or interests thereunder if
      and
      only for so long as the grant of a security interest hereunder shall constitute
      or result in a material breach or default under any such contract, General
      Intangible, property right or agreement or would give rise to a right to
      terminate any such General Intangible (other than to the extent that any such
      term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408,
      or
      9-409 of the UCC of any relevant jurisdiction or any other applicable law or
      principles of equity); provided, however, that such security interest shall
      attach immediately to any portion of such contract, General Intangible, property
      rights or agreement that does not result in any of the consequences specified
      above, (ii) any rights or property to the extent that any valid enforceable
      law
      or regulation applicable to such rights or property prohibits the creation
      of a
      security interest therein, (iii) any Capital Stock to the extent it represents
      more than 65% of the Capital Stock of any Foreign Subsidiary.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

       

    

    “Foreign
      Corporate
      Documents”  means (i) the Shareholders Agreement, dated as of
      ____, 2005, by and between the Borrower and ORS and (ii) the Articles of
      Association of Israel Workforce Solutions Ltd., dated as of _______, 2005,
      as
      executed by the Borrower and ORS.

    

    “ORS”
means
      ORS
      Overseas Representation Services Ltd..

    

    "Pledged
      Membership
      Interests" means the Capital Stock described on Part B of Schedule I
      attached hereto other than Excluded Property.

    

    "Pledged
      Shares" means
      the Capital Stock described on Part A of Schedule I attached hereto other than
      Excluded Property.

    

    “Secured
      Obligations”
shall mean (i) with respect to the Borrower, all Obligations of the
      Borrower,
      (ii) with respect to any other Pledgor , all Guaranteed Obligations (as such
      term is defined in the Subsidiary Guaranty) of each such Pledgor.

    

    "Secured
      Parties"
      means the Administrative Agent, the Lenders, the Specified Hedge Providers
      and
      the Specified Treasury Management Providers.  "Secured Party" means
      any of the Secured Parties individually.

    

    “Specified
      Hedge
      Provider” means each party to a Hedging Transaction incurred to limit
      interest rate or fee fluctuation with respect to the Loans and Letters of Credit
      if at the date of entering into such Hedging Transaction such person was a
      Lender or an Affiliate of a Lender and such person executes and delivers to
      the
      Administrative Agent a letter agreement in form and substance acceptable to
      the
      Administrative Agent pursuant to which such person (i) appoints the
      Administrative Agent as its agent under the applicable Loan Documents and (ii)
      agrees to be bound by the provisions of Article 9 and 10 of the Credit
      Agreement.

     

    “Specified
      Treasury
      Management Provider” means each Lender or an Affiliate of a Lender that
      offers products of the type described in the definition of “Treasury Management
      Obligations” contained in the Credit Agreement and such person executes and
      delivers to the Administrative Agent a letter agreement in form and substance
      acceptable to the Administrative Agent pursuant to which such person (i)
      appoints the Administrative Agent as its agent under the applicable Loan
      Documents and (ii) agrees to be bound by the provisions of Article 9 and 10
      of
      the Credit Agreement.

     

    "Termination
      Time"
      means the time that all Secured Obligations (other than (i) Obligations related
      to Hedging Obligations except to the extent due on or prior to the Termination
      Time, (ii) Obligations related to Treasury Management Services except to the
      extent due on or prior to the Termination Time and (iii) Unasserted Contingent
      Obligations) have been paid in full in cash, all Commitments have been
      terminated or otherwise reduced to zero and all LC Exposure has either been
      cash
      collateralized or back stopped by one or more letters of credit in form
      acceptable to the Issuing Lender and in an amount equal to 103% of such LC
      Exposure.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    2. Pledge. 
Each
      Pledgor hereby
      pledges to the Administrative Agent, for its benefit and the benefit of Secured
      Parties and grants to the Administrative Agent, for its benefit and the benefit
      of the Secured Parties, a first priority security interest in all of such
      Pledgor’s right, title and interest in, to and under the following property,
      whether now owned by or owing to, or hereafter acquired by or arising in favor
      of such Pledgor (collectively, the “Pledged
      Collateral”):

    

    (a) The
      Pledged Shares and the certificates
      representing the Pledged Shares, and, except as expressly provided for in Section 8 hereof,
      all
      dividends, cash, instruments and other property or proceeds from time to time
      received, receivable or otherwise distributed in respect of or in exchange
      for
      any or all of the Pledged Shares;

    

    (b) Any
      Capital Stock acquired by any
      Pledgor or such Pledgor’s designees with respect to, incident to or in lieu of
      the Pledged Shares or with respect to, incident to or in lieu of the Pledged
      Collateral (x) due to any dividend, stock-split, stock dividend or distribution
      on dissolution, or partial or total liquidation, or for any other reason, (y)
      in
      connection with a reduction of capital, capital surplus or paid-in-surplus
      or
      (z) in connection with any spin-off, split-off, reclassification, readjustment,
      merger, consolidation, sale of assets, combination of shares or any other plan
      of distribution affecting of the those companies listed on Schedule
      I;

    

    (c) Any
      subscription or other rights or
      options issued in connection with the Pledged Shares, and, if exercised by
      any
      Pledgor, all new Capital Stock so acquired by such Pledgor, which shall promptly
      be assigned and delivered to the Administrative Agent and held under the terms
      of this Pledge Agreement in the same manner as the Pledged Shares originally
      pledged hereunder;

    

    (d) Any
      Capital Stock acquired by any
      Pledgor after the date hereof, which shall promptly be delivered to the
      Administrative Agent and held under the terms of this Pledge Agreement in the
      same manner as the Pledged Shares originally pledged hereunder;

    

    (e) Any
      and all proceeds, monies, income
      and benefits arising from or by virtue of, and all dividends and distributions
      (cash or otherwise) payable or distributable with respect to, all or any of
      the
      Pledged Shares or other securities and rights and interests described in this
      Section 2,
      except as expressly provided for in Section 8
      hereof;

    

    (f) The
      Pledged Membership Interests, if
      any, and any certificates at any time representing the Pledged Membership
      Interests, it being understood that the Pledged Membership Interests are, as
      of
      the date hereof, uncertificated, and all cash, securities, dividends, rights,
      and other property at any time and from time to time received, receivable or
      otherwise distributed in respect of or in exchange for any or all of the Pledged
      Membership Interests;

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    (g) All
      of
      such Pledgor’s right, title and interest as a member in each limited liability
      company listed on Part B of Schedule I (the “LLCs”), whether
      now
      owned or hereafter acquired, including all of such Pledgor’s right, title and
      interest in, to and under the limited liability company agreements described
      on
      Part B of Schedule I (as such agreements have heretofore been and may hereafter
      be amended, restated, supplemented or otherwise modified from time to time,
      collectively, the “LLC
      Agreements”) to which it is a party (including, the right to vote with
      respect to and to manage and administer the business of such LLCs) together
      with
      all other rights, interests, claims and other property of such Pledgor in any
      manner arising out of or relating to its membership interest in the LLCs,
      whatever their respective kind or character, whether they are tangible or
      intangible property, and wheresoever they may exist or be located, and further
      including, without limitation, (1) all rights of such Pledgor to receive
      distributions of any kind, in cash or otherwise, due or to become due under
      or
      pursuant to each such LLC Agreement or otherwise in respect of such LLCs, (2)
      all rights of such Pledgor to receive proceeds of any insurance, indemnity,
      warranty or guaranty with respect to each such LLCs, (3) all claims of such
      Pledgor for damages arising out of, or for the breach of, or for a default
      under, each such LLC Agreement, (4) any certificated  security or
      uncertificated security evidencing any of the foregoing issued by such LLCs
      to
      such Pledgor, (5) any interest of such Pledgor in the entries on the books
      of
      any financial intermediary pertaining to such Pledgor’s interest as a member in
      the LLCs and (6) to the extent not included in the foregoing, all proceeds
      of
      any and all of the foregoing; provided, however,
      that
      notwithstanding anything herein to the contrary;

    

    (i) Each
      Pledgor shall remain liable under the LLC Agreements to the extent set forth
      therein to perform all of its duties and obligations thereunder to the same
      extent as if this Pledge Agreement had not been executed;

    

    (ii) The
      exercise by the Administrative Agent of any of its rights hereunder shall not
      release any Pledgor from any of its duties or obligations under the LLC
      Agreements (other than to the extent a Pledgor is precluded from performing
      such
      duties solely as a result of the Administrative Agent’s having exercised such
      rights or remedies);

    

    (iii) Administrative
      Agent shall not have any obligation or liability under the LLC Agreements by
      reason of this Pledge Agreement, nor shall the Administrative Agent be obligated
      to perform any of the obligations or duties of the Pledgors thereunder, to
      make
      any payment, to make any inquiry as to the nature or sufficiency of any payment
      received by the Pledgors or the sufficiency of any performance by any party
      under any such LLC Agreement, or to take any action to collect or enforce any
      claim for payment assigned hereunder; and

    

    (iv) Without
      limiting the generality of the foregoing, neither the grant of the security
      interest in the Pledged Collateral in favor of the Administrative Agent as
      provided herein nor the exercise by the Administrative Agent of any of its
      rights hereunder nor any action by the Administrative Agent in connection with
      a
      foreclosure on the Pledged Collateral shall be deemed to constitute the
      Administrative Agent or any other Secured Party a member of any limited
      liability company;

    

    Notwithstanding
      the foregoing, the
      Pledged Collateral shall not include (i) any Excluded Property or (ii) any
      Pledged Shares to the extent that a grant of a security interest in such shares
      would require an offer for sale pursuant to, or would result in a violation
      of,
      the applicable terms of any Foreign Corporate Document.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    3. Security
      For Secured Obligations.  This Pledge Agreement and the Pledged
      Collateral secure the prompt payment, in full when due, whether at stated
      maturity, by acceleration or otherwise, and performance of the Secured
      Obligations.

    

    4. Delivery
      Of Pledged Collateral.  All certificates and instruments
      representing or evidencing the Pledged Collateral shall be delivered to and
      held
      by or on behalf of the Administrative Agent pursuant hereto. All Pledged Shares
      shall be accompanied by duly executed, undated instruments of transfer or
      assignment endorsed in blank, all in form and substance satisfactory to the
      Administrative Agent and, if the Administrative Agent so requests after the
      occurrence of an Event of Default, with signatures guaranteed by a member of
      a
      registered national securities exchange or the National Association of
      Securities Dealers, Inc. or by a commercial bank or trust company having an
      office or correspondent in the United States. Upon the occurrence and during
      the
      continuance of an Event of Default, the Administrative Agent shall have the
      right, at any time in its discretion and upon notice to the applicable Pledgor,
      to transfer to or to register in the name of the Administrative Agent or any
      of
      its nominees any or all of the Pledged Shares or Pledged Membership Interests.
      In addition, the Administrative Agent shall have the right at any time to
      exchange certificates or instruments representing or evidencing Pledged Shares
      for certificates or instruments of smaller or larger denominations.

    

    5. Representations
      and Warranties.  Each Pledgor represents and warrants to the Secured
      Parties as follows:

    

    (a) Each
      Pledgor is, and at the time of
      delivery of the Pledged Shares and Pledged Membership Interests to the
      Administrative Agent pursuant to Section 4 hereof will
      be, the sole holder of record and the sole beneficial owner of the Pledged
      Collateral pledged by such Pledgor, free and clear of any Lien thereon or
      affecting the title thereto except for (i) Liens permitted by Section 7.2 of
      the
      Credit Agreement and (ii) those Liens created by or arising under the terms
      of
      the Foreign Corporate Documents, if any.

    

    (b) As
      of the date hereof, except as set
      forth on Schedule I, all of the Pledged Shares and Pledged Membership Interests
      have been duly authorized, validly issued and are fully paid and non-assessable
      and all documentary, stamp, or other taxes or fees owing in connection with
      the
      issuance, transfer and/or pledge thereof hereunder have been paid and will
      be
      hereafter paid by each Pledgor as same becomes due and payable.

    

    (c) As
      of the date hereof, no dispute,
      counterclaim or defense exists with respect to all or any part of the Pledged
      Collateral.

    

    (d) Each
      Pledgor has the requisite
      corporate authority to pledge, assign, transfer, deliver, deposit and set over
      its Pledged Collateral to the Administrative Agent as provided
      herein.

    

    (e) As
      of the date hereof, there are no
      restrictions, other than applicable laws and regulations affecting the offering
      and sales of securities generally, upon the transfer, hypothecation or pledge
      of
      any of the Pledged Collateral, other than those set forth expressly in the
      Foreign Corporate Documents.

    

    
      
         

      

      
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    (f) None
      of the Pledged Shares or Pledged
      Membership Interests issued by any Pledgor or any Subsidiary of any Pledgor
      have
      been issued or transferred in violation of the securities registration,
      securities disclosure or similar laws of any jurisdiction to which such issuance
      or transfer may be subject.

    

    (g) Part
      A of Schedule I hereto
      lists the authorized shares of common stock, the par value thereof and the
      number of issued and outstanding shares of common stock of each issuer of
      Pledged Shares as of the date hereof.  As of the date hereof, (i) no
      subscription, warrant, option or other rights to purchase or acquire any shares
      of any class of capital stock of any issuer of Pledged Shares is authorized
      and
      outstanding, and (ii) there is no commitment by any issuer of Pledged Shares
      to
      issue any such shares, warrants, options or other such rights or
      securities.

    

    (h) Part
      B of Schedule I hereto
      lists all of the issued and outstanding membership interests of each issuer
      of
      Pledged Membership Interests as of the date hereof.  As of the date
      hereof, (i) no subscription, warrant, option or other rights to purchase or
      acquire any membership interests of any issuer of Pledged Membership Interests
      is authorized and outstanding, and (ii) there is no commitment by any issuer
      of
      Pledged Membership Interests to issue any such warrants, options or other such
      rights or securities.

    

    (i) The
      pledge
      by each Pledgor of its Pledged Collateral is not in contravention of any law
      or
      of any agreement to which such Pledgor is party or by which such Pledgor is
      otherwise bound, and no consent, approval, authorization or other order of,
      or
      other action by, any Person or notice to or filing with, any Person is required
      (x) for the pledge by such Pledgor of the Pledged Collateral pursuant to this
      Pledge Agreement or for the execution, delivery or performance of this Pledge
      Agreement by such Pledgor or (y) for the exercise by the Administrative Agent
      of
      the voting or other rights provided for in this Pledge Agreement or the remedies
      in respect of the Pledged Collateral pursuant to this Pledge Agreement (except
      as may be required in connection with any disposition of any portion of the
      Pledged Collateral by laws affecting the offering and sale of securities
      generally), except any consent, approval, authorization or other order, or
      other
      action, as may be required under applicable laws in jurisdictions other than
      the
      United States or any state thereof or as is required by any Foreign Corporate
      Document.

    

    (j) The
      pledge, assignment and delivery of
      the Pledged Collateral together with duly executed, undated instruments of
      transfer or assignment endorsed in blank pursuant to this Pledge Agreement
      will
      create a valid first priority Lien on and a first priority perfected security
      interest in the Pledged Collateral and the proceeds thereof, securing the
      payment of the Secured Obligations and no filing or other
      action is necessary to perfect or protect such security interest, except that
      (i) the filing of a financing statement, the taking of possession or some other
      action may be required under Section 9-315 of the Uniform Commercial Code as
      in
      effect in the State of New York (the “UCC") to perfect
      a
      security interest in certain proceeds of the Pledged Collateral that do not
      constitute Pledged Shares or other securities or instruments and (ii) the filing
      of a financing statement under Sections 9-312 and 9-314 of the UCC may be
      required to perfect a security interest in any Pledged Collateral that
      constitutes “investment property” (other than the Pledged Shares) with respect
      to which the Administrative Agent does not have “control” (as such terms are
      defined in the UCC) and (iii) certain other actions may be necessary under
      the
      laws of the jurisdictions of the Foreign Subsidiaries.

    

    
      
         

      

      
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    (k) All
      of the
      representations and warranties contained in the Credit Agreement and the other
      Loan Documents are true and correct in all material respects, are incorporated
      herein by this reference and deemed to be made herein by each Pledgor for
      purposes of this Pledge Agreement.

    

    (l) This
      Pledge Agreement has been duly authorized, executed and delivered by each
      Pledgor and constitutes a legal, valid and binding obligation of such Pledgor
      enforceable against such Pledgor in accordance with its terms.

    

    (m) Each
      Pledgor further acknowledges and agrees that the Pledged Membership Interests,
      shall not be for purposes of this Pledge Agreement and the other Loan Documents
      a “security” within the meaning of Article 8 of the UCC and shall not be
      governed by Article 8 of the UCC.  No Pledgor shall at any time elect
      to treat any such interest as a “security” within the meaning of Article 8 of
      the UCC or issue any certificate representing such interest.

    

    The
      representations and warranties set
      forth in this Section
      5 shall survive the execution and delivery of this Pledge
      Agreement.

    

    6. Covenants. 
      Each Pledgor covenants and agrees that from and after the date of this Pledge
      Agreement and until the payment and performance in full of all of the Secured
      Obligations of such Pledgor:

    

    (a) Such
      Pledgor shall not sell, assign,
      transfer, pledge or otherwise encumber any of its rights in or to its Pledged
      Collateral or any unpaid dividends or other distributions or payments with
      respect thereto except as permitted by the Credit Agreement.

    

    (b) Such
      Pledgor will not cause or permit
      any issuer of Pledged Shares or Pledged Membership Interests to issue or grant
      any warrants, stock options of any nature or other instruments convertible
      into
      membership interests or shares of any class of capital stock or additional
      membership interests or shares of capital stock or sell or transfer any
      membership interests or treasury stock except as permitted by the Credit
      Agreement.

    

    (c) Such
      Pledgor will, at its own cost and
      expense, promptly execute, acknowledge and deliver all such instruments and
      take
      all such action as the Administrative Agent from time to time may reasonably
      request in order to perfect and protect the Lien granted or purported to be
      granted hereby or to enable the Administrative Agent to exercise and enforce
      its
      rights and remedies hereunder with respect to the Pledged
      Collateral.

    

    (d)  Such
      Pledgor has and will, at its
      own cost and expense, defend the title to its Pledged Collateral and the Liens
      of the Administrative Agent thereon against the claim of any Person and will
      maintain and preserve such Liens.

    

    
      
         

      

      
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    (e) Such
      Pledgor will comply with Section
      5.8 of the Credit Agreement.

    

    (f)   
      Such
      Pledgor shall not certificate any of the Pledged Membership
      Interests.

     

    (g)   
      Such
      Pledgor shall not treat any Pledged Membership Interest as a “security” within
      the meaning of Article 8 of the UCC and no Pledged Membership Interest
      shall  be governed by Article 8 of the UCC.

    

    7. Adjustments
      and Distributions Concerning Pledged Collateral.  Should the Pledged
      Collateral, or any part thereof, ever be converted in any manner by any Pledgor
      into another type of property or any money or other proceeds ever be paid or
      delivered to any Pledgor as a result of such Pledgor’s rights in the Pledged
      Collateral, then in any such event (except as expressly provided in Section 8 hereof),
      all such property, money and other proceeds shall promptly be and become part
      of
      the Pledged Collateral, and each Pledgor covenants and agrees to forthwith
      pay
      and deliver all money so received to the Administrative Agent, for the benefit
      of the Secured Parties, as Pledged Collateral hereunder in accordance with
      the
      provisions of the Credit Agreement; and, if the Administrative Agent deems
      it
      necessary and so requests, to properly endorse, assign or transfer any and
      all
      such other proceeds to the Administrative Agent and to deliver to the
      Administrative Agent any and all such other proceeds which require perfection
      by
      possession under the UCC.  With respect to any of such property of a
      kind requiring an additional security agreement, financing statement or other
      writing to perfect a security interest therein in favor of the Administrative
      Agent, each Pledgor will forthwith execute and deliver to the Administrative
      Agent, or cause to be executed and delivered to the Administrative Agent,
      whatever the Administrative Agent shall reasonably deem necessary or proper
      for
      such purposes.

    

    8. Pledgors’
      Rights; Termination Of Rights.

    

    (a) Unless
      an Event of Default shall have
      occurred and be continuing:

    

    (i) Each
      Pledgor shall have the right, from time to time, to vote and give consents
      with
      respect to its Pledged Collateral or any part thereof for all purposes permitted
      by the Credit Agreement or any other Loan Documents; provided, that,
      without limitation of the foregoing, no vote shall be cast, and no consent
      shall
      be given or action taken by any Pledgor without the prior written consent of
      the
      Administrative Agent that would authorize or effect (except if and to the extent
      permitted by the Credit Agreement: (A) the dissolution or liquidation, in whole
      or in part, of any issuer of the Pledged Collateral, (B) the consolidation
      or
      merger of any issuer of the Pledged Collateral with any other Person (other
      than
      any Pledgor), (C) the sale, disposition or encumbrance of any portion of the
      assets of any issuer of the Pledged Collateral or any business or division
      thereof, (D) any change in the authorized number of shares or membership
      interests, the stated capital or the authorized shares or member interest
      capital of any issuer of the Pledged Collateral or the issuance of any
      additional shares of capital stock or membership interests thereof, or (E)
      the
      alteration of the voting rights with respect to the capital stock or membership
      interests of any issuer of the Pledged Collateral);

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    (ii) Each
      Pledgor shall be entitled, from time to time, to collect and receive for its
      own
      use all dividends, distributions and other amounts paid in respect of its
      Pledged Collateral to the extent not in violation of the Credit
      Agreement.

    

    (b) All
      dividends (other than such cash
      dividends as are permitted to be paid to the Pledgors in accordance with Section 8(a)(ii)
      above), distributions and other amounts in respect of any of the Pledged Shares
      or Pledged Membership Interests, whenever paid or made, shall be delivered
      to
      the Administrative Agent to hold as Pledged Collateral and shall, if received
      by
      any Pledgor, be received in trust for the benefit of the Administrative Agent,
      be segregated from the other property or funds of such Pledgor, and be forthwith
      delivered promptly to the Administrative Agent as Pledged Collateral of such
      Pledgor in the same form as so received (with any necessary endorsement or
      assignment).

    

    (c) Upon
      the occurrence of an Event of
      Default and during the continuation thereof, all of Pledgors’ rights to exercise
      voting and other consensual rights pursuant to Section 8(a)(i)
      hereof and all of Pledgors’ rights to receive any cash dividends and
      distributions pursuant to Section 8(a)(ii)
      hereof shall cease and all such rights shall thereupon become vested in the
      Administrative Agent, for the benefit of the Secured Parties, who shall have
      the
      sole and exclusive right to exercise the voting and other consensual rights
      which the Pledgors would otherwise be authorized to exercise pursuant to Section 8(a)(i)
      hereof and to receive and retain the dividends and distributions which the
      Pledgors would otherwise be authorized to receive and retain pursuant to Section 8(a)(ii)
      hereof.  Upon the occurrence of an Event of Default and during the
      continuation thereof, each Pledgor shall pay over to the Administrative Agent,
      for the benefit of the Secured Parties, at the Administrative Agent’s election,
      any dividends received by such Pledgor with respect to its Pledged Collateral
      and any and all money and other property paid over to or received by the
      Administrative Agent shall be retained by the Administrative Agent, for the
      benefit of the Secured Parties, as Pledged Collateral hereunder and shall be
      applied in accordance with the terms of the Credit Agreement.

    

    9. Default.  The
      Pledgors
      shall be in default under this Pledge Agreement upon the happening of any of
      the
      following events or conditions (hereinafter referred to as an “Event of
      Default”):

    

    (i)             The
      occurrence of an Event of Default as defined in the Credit Agreement;
      and

    (ii)           
      Any representation or warranty made by or on behalf of any Pledgor under or
      pursuant to this Agreement shall have been false or misleading in any material
      respect when made; or

    (iii)           Failure
      of any Pledgor to observe any of its respective covenants set forth in this
      Pledge Agreement other than those referenced in paragraphs (i) and (ii) above,
      and if such failure is capable of being remedied, such failure shall remain
      unremedied for thirty (30) days after notice from the Administrative
      Agent.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

    

    10. Remedies
      Upon An Event Of Default.

    

    (a) Upon
      the occurrence of an Event of
      Default and during the continuation thereof, the Administrative Agent may
      exercise all rights of a secured party under the UCC (whether or not the UCC
      applies to the affected collateral).  In addition, the Administrative
      Agent is hereby authorized and empowered to  transfer and register in
      its name or in the name of its nominee the whole or any part of the Pledged
      Collateral, exercise the voting rights with respect thereto, collect and receive
      all cash dividends and other distributions made thereon, sell in one or more
      sales after ten (10) days’ notice (or such longer period as may be afforded by
      the UCC) of the time and place of any public sale or of the time after which
      a
      private sale is to take place (which notice each Pledgor agrees is commercially
      reasonable), but without any previous notice or advertisement, the whole or
      any
      part of the Pledged Collateral and otherwise act with respect to the Pledged
      Collateral as though the Administrative Agent was the legal and record owner
      thereof.  Each Pledgor hereby irrevocably constitutes and appoints the
      Administrative Agent, for the benefit of the Secured Parties, as the proxy
      and
      attorney-in-fact of such Pledgor with respect to the Pledged Collateral, with
      full power of substitution to exercise any of the rights provided in the
      preceding sentence; provided, that the
      Administrative Agent shall not have any duty to exercise any such right or
      to
      preserve the same and shall not be liable for any failure to do so or for any
      delay in doing so.  Any sale shall be made at a public or private sale
      at the Administrative Agent’s offices or elsewhere to be named in the notice of
      sale, either for cash or upon credit or for future delivery at such price as
      the
      Administrative Agent may deem fair, and any Secured Party may be the purchaser
      of the whole or any part of the Pledged Collateral so sold and hold the same
      thereafter in its own right free from any claim of any Pledgor or any right
      of
      redemption, which each Pledgor hereby waives to the extent permitted by
      applicable law.  Each sale shall be made to the highest bidder, but
      the Administrative Agent reserves the right to reject any and all bids at such
      sale which, in its discretion, it shall deem inadequate.  Demands of
      performance, except as otherwise herein specifically provided for, notices
      of
      sale, advertisements and the presence of property at sale are hereby waived
      and
      any sale hereunder may be conducted by an auctioneer or any officer or agent
      of
      the Administrative Agent.

    

    (b) If,
      at the original time or times
      appointed for the sale of the whole or any part of the Pledged Collateral,
      the
      highest bid, if there be but one sale, shall be inadequate to discharge in
      full
      all the Secured Obligations, or if the Pledged Collateral be offered for sale
      in
      lots, if at any of such sales, the highest bid for the lot offered for sale
      would indicate to the Administrative Agent, in its discretion, the unlikelihood
      of the proceeds of the sales of the whole of the Pledged Collateral being
      sufficient to discharge all the Secured Obligations, the Administrative Agent
      may, on one or more occasions and in its discretion, postpone any of said sales
      by public announcement at the time of sale or the time of previous postponement
      of sale, and no other notice of such postponement or postponements of sale
      need
      be given, any other notice being hereby waived; provided, that any
      sale or sales made after such postponement shall be after ten (10) days’
notice(or such longer period as may be afforded by the UCC) from the
      Administrative Agent to any such Pledgor.

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

    

    (c) If,
      at any time that the Administrative
      Agent shall determine to exercise its rights to sell the whole or any part
      of
      the Pledged Collateral hereunder, such Pledged Collateral or the part thereof
      to
      be sold shall not, for any reason whatsoever, be effectively registered under
      the Securities Act of 1933, as amended (the “Act”), the
      Administrative Agent may, in its discretion (subject only to applicable
      requirements of law), sell such Pledged Collateral or part thereof by private
      sale in such manner and under such circumstances as the Administrative Agent
      may
      deem necessary or advisable, but subject to the other requirements of this
Section 9, and shall
      not be required to effect such registration or to cause the same to be
      effected.  Without limiting the generality of the foregoing, in any
      such event the Administrative Agent in its discretion (i) may, in accordance
      with applicable securities laws, proceed to make such private sale
      notwithstanding that a registration statement for the purpose of registering
      such Pledged Collateral or part thereof could be or shall have been filed under
      said Act (or similar statute), (ii) may approach and negotiate with a single
      possible purchaser to effect such sale, (iii) may restrict such sale to a
      purchaser who will represent and agree that such purchaser is purchasing for
      its
      own account, for investment and not with a view to the distribution or sale
      of
      such Pledged Collateral or part thereof, and (iv) may place all or any part
      of
      the Pledged Collateral with an investment banking firm for private placement,
      which firm shall be entitled to purchase all or any part of the Pledged
      Collateral for its own account.  If any of the Pledged Collateral
      shall not be freely distributable to the public without registration under
      the
      Act (or similar statute), then the Administrative Agent shall not be required
      to
      effect such registration or cause the same to be effected but, in its discretion
      (subject to applicable requirements of law), may require that any sale hereunder
      (including a sale at auction) be conducted subject to restrictions (i) as to
      the
      financial sophistication and ability of any Person permitted to bid or purchase
      at any such sale, (ii) as to the content of legends to be placed upon any
      certificates representing the Pledged Collateral sold in such sale, including
      restrictions on future transfer thereof, (iii) as to the representations
      required to be made by each Person bidding or purchasing at such sale relating
      to that Person’s access to financial information about any Pledgor or any of its
      subsidiaries so sold and such Person’s intentions as to the holding of the
      Pledged Collateral so sold for investment, for its own account, and not with
      a
      view to the distribution thereof, and (iv) as to such other matters as the
      Administrative Agent may, in its discretion, deem necessary or appropriate
      in
      order that such sale (notwithstanding any failure so to register) may be
      effected in compliance with the UCC and other laws affecting the enforcement
      of
      creditors’ rights and the Act and all applicable state securities
      laws.

    

    (d) Each
      Pledgor recognizes that the
      Administrative Agent may be unable to effect a public sale of any or all the
      Pledged Collateral and may be compelled to resort to one or more private sales
      thereof.  Each Pledgor also acknowledges that any such private sale
      may result in prices and other terms less favorable to the seller than if such
      sale were a public sale and, notwithstanding such circumstances, agrees that
      any
      such private sale shall be deemed to have been made in a commercially reasonable
      manner.  The Administrative Agent shall be under no obligation to
      delay a sale of any of the Pledged Collateral for the period of time necessary
      to permit the registrant to register such securities for public sale under
      the
      Act, or under applicable state securities laws, even if each Pledgor would
      agree
      to do so.

    

    (e) Any
      cash held by the Administrative
      Agent as Pledged Collateral and all cash proceeds received by the Administrative
      Agent in respect of any sale of, collection from, or other realization upon
      all
      or any part of the Pledged Collateral shall be applied in the manner set forth
      in Section 8.2 of the Credit Agreement.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

    (f) Each
      Pledgor agrees that following the
      occurrence and during the continuation of an Event of Default it will not at
      any
      time plead, claim or take the benefit of any appraisal, valuation, stay,
      extension, moratorium or redemption law now or hereafter in force in order
      to
      prevent or delay the enforcement of this Pledge Agreement, or the absolute
      sale
      of the whole or any part of the Pledged Collateral or the possession thereof
      by
      any purchaser at any sale hereunder, and each Pledgor waives the benefit of
      all
      such laws to the extent it lawfully may do so.  Each Pledgor agrees
      that it will not interfere with any right, power and remedy of the
      Administrative Agent provided for in this Pledge Agreement or now or hereafter
      existing at law or in equity or by statute or otherwise, or the exercise or
      beginning of the exercise by the Administrative Agent of any one or more of
      such
      rights, powers, or remedies.  No failure or delay on the part of the
      Administrative Agent to exercise any such right, power or remedy and no notice
      or demand which may be given to or made upon any Pledgor by the Administrative
      Agent with respect to any such remedies shall operate as a waiver thereof,
      or
      limit or impair the Administrative Agent’s right to take any action or to
      exercise any power or remedy hereunder, without notice or demand, or prejudice
      its rights as against any Pledgor in any respect.  Except for gross
      negligence or willful misconduct, each Pledgor waives all claims, damages and
      demands against the Administrative Agent arising out of the repossession,
      retention or sale of the Pledged Collateral.

    

    11. Power
      Of
      Attorney.  Each Pledgor appoints the Administrative Agent, or
      any other Person whom the Administrative Agent may designate, as each Pledgor’s
      true and lawful attorney-in-fact, with, upon the occurrence of an Event of
      Default, power to endorse each  Pledgor’s name on any checks, notes,
      acceptances, money orders, drafts or other form of payment or security
      representing a portion of the Pledged Collateral that may come into the
      Administrative Agent’s possession and to do all things  necessary to
      carry out the terms of this Pledge Agreement.  Each Pledgor ratifies
      and approves all such acts of such attorney-in-fact.   Except
      gross negligence or willful misconduct, neither the Administrative Agent nor
      any
      other Person designated by the Administrative Agent as attorney-in-fact
      hereunder will be liable for any acts or omissions, nor for any errors of
      judgment or mistakes of fact or law.  This power, coupled with an
      interest, is irrevocable until the Termination Time.

    

    12. Administrative
      Agent’s Right To Take Action.  In the event that any Pledgor fails
      or refuses promptly to perform any of its obligations set forth herein, or
      otherwise fails or refuses to pay any amount necessary for the preservation
      and
      protection of the Pledged Collateral, the Administrative Agent shall have the
      right, without obligation, by notice to the Pledgors, to do all things it deems
      necessary or advisable to discharge the same and any sums paid by the
      Administrative Agent, or the cost thereof, including, without limitation,
      reasonable attorneys’ fees, shall be reimbursed by the Pledgors, to the
      Administrative Agent on demand and, until so reimbursed, shall bear interest
      at
      the default rate of interest set forth in the Credit Agreement and shall be
      additional Secured Obligations hereunder.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

       

    

    13. Expenses.  The
      Pledgors shall, jointly and severally, pay (i) all reasonable out-of-pocket
      costs, expenses, taxes and fees incurred by the Administrative Agent, including
      the reasonable fees, charges and disbursements of counsel for the Administrative
      Agent, in connection with the negotiation, preparation, execution and delivery
      of this Pledge Agreement and all certificates, opinions and other documents
      relating to these transactions, in all cases whether or not the transaction
      contemplated hereby shall be consummated; (ii) all costs, expenses, taxes and
      fees incurred by the Administrative Agent in connection with the perfection,
      registration, maintenance, administration, custody and preservation of the
      Pledged Collateral; and (iii) all costs, expenses, taxes and fees incurred
      by
      any of the Secured Parties in connection with or after the occurrence of any
      Event of Default, including, without limitation, in connection with (a) the
      negotiation, preparation, execution and delivery of any waiver, amendment or
      consent by the Secured Parties, (b) the negotiation of any restructuring or
      workout transaction, and the preparation, execution and delivery of any
      documents prepared in connection therewith, and (c) enforcement or foreclosure
      with respect to this Pledge Agreement, in all such cases such costs, expenses,
      taxes and fees shall include, without limitation, the reasonable disbursements
      and reasonable professional fees actually incurred of counsel to any Secured
      Party.  To the extent that any such fees and expenses are subject to
      value added taxes, such taxes will be paid by the Pledgors.  To the
      extent reimbursement is sought pursuant to this Section 13 or any
      other document executed pursuant hereto, the Secured Parties shall submit to
      the
      Pledgors a statement of expenses to be paid by the Pledgors.  Such
      expenses shall be due and payable within thirty (30) days of the date of the
      original statement to the extent that such Secured Party is entitled to such
      reimbursement.

     

    14. Indemnity.  The
      Pledgors,
      jointly and severally, will indemnify and hold harmless each of the Secured
      Parties and each of their respective employees, representatives, officers and
      directors from and against any and all claims, liabilities, investigations,
      losses, damages, actions, and demands by any party against the Secured Parties
      or any of them resulting from any breach or alleged breach by any Pledgor of
      any
      representation or warranty made hereunder, or otherwise arising out of this
      Pledge Agreement, unless, with respect to any of the above, any of the Secured
      Parties are finally judicially determined to have acted or failed to act with
      gross negligence or willful misconduct.  This Section 14 shall
      survive termination of this Pledge Agreement.

    

    15. Limitation
      On the Administrative Agent’s Duty In Respect Of Pledged Collateral. The
      Administrative Agent shall use reasonable care with respect to the Pledged
      Collateral in its possession or under its control. The powers conferred on
      the
      Administrative Agent hereunder are solely to protect its interest in the Pledged
      Collateral and shall not impose any duty upon it to exercise any such powers.
      Except for the safe custody of any Pledged Collateral in its possession and
      the
      accounting for moneys actually received by it hereunder, the Administrative
      Agent shall have no duty as to any Pledged Collateral or any income thereon,
      as
      to ascertaining or taking action with respect to calls, conversions, exchanges,
      maturities, tenders or other matters relative to any Pledged Collateral, whether
      or not the Administrative Agent, or any other 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
      Pledged Collateral.  The Administrative Agent shall be deemed to have
      exercised reasonable care in the custody and preservation of any Pledged
      Collateral in its possession if such Pledged Collateral is accorded treatment
      substantially equal to that which the Administrative Agent accords its own
      property.

    

    16. Security
      Interest Absolute.  All rights of the Administrative Agent and
      security interests hereunder, and all obligations of each Pledgor hereunder,
      shall be absolute and unconditional irrespective of:

    

    (a)  any
      lack of validity or enforceability of the Loan Documents;

    

    
      
         

      

      
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    (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 Loan Documents including, without limitation, any
      increase in the Secured Obligations resulting from the extension of additional
      credit to any Pledgor or any of its Subsidiaries or otherwise;

    

    (c) any
      taking, exchange, release or non-perfection of any other collateral, or any
      taking, release or amendment or waiver of or consent to departure from any
      guaranty, for all or any of the Secured Obligations;

    

    (d) any
      manner
      of application of collateral, or proceeds thereof, to all or any of the Secured
      Obligations, or any manner of sale or other disposition of any collateral for
      all or any part of the Secured Obligations or any other assets of any Pledgor
      or
      any of its Subsidiaries;

    

    (e) any
      change, restructuring or termination of the corporate structure or existence
      of
      any Pledgor or any of its Subsidiaries; or

    

    (f) any
      other
      circumstance which might otherwise constitute a defense available to, or a
      discharge of, any Pledgor or a third party pledgor.

    

    17. Reinstatement.  This
      Pledge
      Agreement shall remain in full force and effect and continue to be effective
      should any petition be filed by or against any Pledgor for liquidation or
      reorganization, should any Pledgor 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 any Pledgor’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 Secured Obligations, 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 Secured Obligations, whether as
      a
“voidable preference,” “fraudulent conveyance,” “fraudulent transfer” 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 Secured Obligations shall be
      reinstated and deemed reduced only by such amount paid and not so rescinded,
      reduced, restored or returned.

    

    18. Successors
      And Assigns.  This Pledge Agreement and all obligations of each
      Pledgor hereunder shall be binding upon the successors and assigns of such
      Pledgor (including any debtor-in-possession on behalf of such Pledgor) and
      shall, together with the rights and remedies of the Administrative Agent, for
      the benefit of the Secured Parties, hereunder, inure to the benefit of the
      Administrative Agent, the other Secured Parties, all future holders of any
      instrument evidencing any of the Secured Obligations 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 Secured Obligations or any portion thereof or interest
      therein shall in any manner affect the Lien granted to the Administrative Agent,
      for the benefit of the Secured Parties, hereunder.  No Pledgor may
      assign, sell, hypothecate or otherwise transfer any interest in or obligation
      under this Pledge Agreement.

    

    
      
         

      

      
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    19. Waivers;
      Amendment.

     

    (a)           
      No failure or delay by any Secured Party of any kind in exercising any power,
      right or remedy hereunder and no course of dealing between any Pledgor on the
      one hand and the administrative Agent or the holder of any Note on the other
      hand shall operate as a waiver thereof, nor shall any single or partial exercise
      of any such power, right or remedy hereunder or under any other Loan Document,
      or any abandonment or discontinuance of steps to enforce such a power, right
      or
      remedy, preclude any other or further exercise thereof or the exercise of any
      other power, right or remedy. The rights of the Secured Parties hereunder and
      of
      the Lenders under the other Loan Documents are cumulative and are not exclusive
      of any rights or remedies that they would otherwise have. No waiver of any
      provision of this Pledge Agreement or consent to any departure by any Pledgor
      therefrom shall in any event be effective unless the same shall be permitted
      by
      subsection (b) below, and then such waiver and consent shall be effective
      only in the specific instance and for the purpose for which given.  No
      notice or demand on any Pledgor in any case shall entitle such Pledgor to any
      other or further notice in similar or other circumstances.

     

    (b)           
      Neither this Pledge Agreement nor any provision hereof may be waived, amended
      or
      modified except pursuant to a written agreement entered into between the
      Pledgors with respect to which such waiver, amendment or modification relates
      and the Administrative Agent, with the prior written consent of the Required
      Lenders (except as otherwise provided in the Credit Agreement).

    

    20. Severability.   Any
      provision of this Pledge Agreement held to be illegal, invalid or unenforceable
      in any jurisdiction, shall, as to such jurisdiction, be ineffective to the
      extent of such illegality, invalidity or unenforceability without affecting
      the
      legality, validity or enforceability of the remaining provisions hereof or
      thereof; and the illegality, invalidity or unenforceability of a particular
      provision in a particular jurisdiction shall not invalidate or render
      unenforceable such provision in any other jurisdiction.

    

    21. Notices.  All
      notices,
      requests and other communications to the Pledgors or Administrative Agent
      hereunder shall be delivered in the manner required by the Credit Agreement
      and
      shall be sufficiently given to Administrative Agent or any Pledgor if addressed
      or delivered to them at, in the case of the Administrative Agent and Borrower,
      its addresses and telecopier numbers specified in the Credit Agreement and
      in
      the case of any other Pledgor, at their respective addresses and telecopier
      numbers provided in the Subsidiary Guaranty Agreement.  All such
      notices and communications shall be deemed to have been duly given at the times
      set forth in the Credit Agreement.

    

    22. Counterparts;
      Integration.  This Pledge
      Agreement may be executed by one or more of the parties to this Pledge Agreement
      on any number of separate counterparts (including by telecopy), and all of
      said
      counterparts taken together shall be deemed to constitute one and the same
      instrument. This Pledge Agreement constitutes the entire agreement among the
      parties hereto regarding the subject matters hereof and supersedes all prior
      agreements and understandings, oral or written, regarding such subject
      matter.

    

    
      
         

      

      
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    23. Governing
      Law; Jurisdiction; Consent to Service of Process.

    

    (a)           
      This Pledge Agreement shall be construed in accordance with and be governed
      by
      the law of the State of New York.

     

    (b)           
      Each party to this Pledge Agreement hereby irrevocably and unconditionally
      submits, for itself and its property, to the non-exclusive jurisdiction of
      the
      United States courts located within the Southern district
      in the
      State of New York, and of any state court of the State of New York located
      in
      New York county and any appellate court from any thereof, in any action or
      proceeding arising out of or relating to this Pledge Agreement or any other
      Loan
      Document or the transactions contemplated hereby or thereby, or for recognition
      or enforcement of any judgment, and each of the parties hereto hereby
      irrevocably and unconditionally agrees that all claims in respect of any such
      action or proceeding may be heard and determined in such New York state court
      or, to the extent permitted by applicable law, 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.  Nothing in this
      Pledge Agreement shall affect any right that the Administrative Agent, the
      Issuing Bank or any Lender may otherwise have to bring any action or proceeding
      relating to this Pledge Agreement against any Pledgor or its properties in
      the
      courts of any jurisdiction.

     

    (c)           
      Each party to this Pledge Agreement ir­­revocably and unconditionally
      waives any objection which it may now or hereafter have to the laying of
      venue of any such suit, action or proceeding described in paragraph (b) of
      this
      Section and brought in any court referred to in paragraph (b) of this
      Section.  Each party hereto 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)           
      Each party to this Pledge Agreement irrevocably consents to the service of
      process in the manner provided for notices in Section 10.1 of the Credit
      Agreement. Nothing in this Pledge Agreement will affect the right of the
      Administrative Agent or any Lender to serve process in any other manner
      permitted by law.

    

    24. WAIVER
      OF
      JURY TRIAL.  EACH PARTY HERETO 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 THIS PLEDGE
      AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
      OR
      THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
      (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
      HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
      THE
      EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND
      (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
      ENTER INTO THIS PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
      THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

       

    

    25. Benefit
      of Secured Parties.  All Liens granted or contemplated hereby
      shall be for the benefit of the Secured Parties, and all proceeds or payments
      realized from Pledged Collateral in accordance herewith shall be applied to
      the
      Secured Obligations in accordance with Section 8.2 of the Credit
      Agreement.

    

    26. Termination
      of this Pledge Agreement.  No termination or cancellation
      (regardless of cause or procedure) of the Credit Agreement shall in any way
      affect or impair the powers, obligations, duties, rights and liabilities of
      the
      parties hereto in any way with respect to (i) any transaction or event occurring
      prior to such termination or cancellation, (ii) the Pledged Collateral, or
      (iii)
      any Pledgor’s undertakings, agreements, covenants, warranties and
      representations contained in this Pledge Agreement and all such undertakings,
      agreements, covenants, warranties and representations shall survive such
      termination or cancellation until the Termination Time.  Subject to
Section
      17  hereof, this Pledge Agreement and the security interests
      granted hereunder shall terminate at the Termination Time.  Upon such
      termination, Administrative Agent shall return all Pledged Collateral in its
      possession to the respective Pledgors and will, at the sole cost and expense
      of
      the Pledgors, execute such documents, without recourse or warranty, as Pledgors
      deem reasonably necessary to release any interests held by Administrative Agent
      or the Secured Parties in the Pledged Collateral.

    

    27. Additional
      Pledged Collateral.  In the event that the any Pledgor is required,
      under the terms of any Loan Document or otherwise, to pledge and hypothecate
      any
      Collateral after the Closing Date, such Pledgor shall pledge and hypothecate
      such Collateral, and be bound with respect to such Col­lateral by all of the
      terms and conditions hereof, by delivery to the Administrative Agent of an
      executed counter­part of a Supplement to Subsidiary Pledge Agreement in the
      form of Exhibit A
      attached hereto.

    

    28. Additional
      Pledgors.  Pursuant to
      Section 5.11 of the Credit Agreement, each Subsidiary that that is required
      to
      become a Subsidiary Loan Party after the date of the Credit Agreement is
      required to enter into this Agreement as a Pledgor upon becoming such a
      Subsidiary Loan Party.  Upon execution and delivery after the date
      hereof by the Administrative Agent and such Subsidiary of an instrument in
      the
      form of Exhibit
      B, such Subsidiary shall become a Pledgor hereunder with the same force
      and effect as if originally named as a Pledgor herein.  The execution
      and delivery of any instrument adding an additional Pledgor as a party to this
      Pledge Agreement shall not require the consent of any other Pledgor
      hereunder.  The rights and obligations of each Pledgor hereunder shall
      remain in full force and effect notwithstanding the addition of any new Pledgor
      as a party to this Pledge Agreement.

     

    

    [Signature
      Pages Follow]

     

     

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

       

    

     

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

    

    
      
        	MAXIMUS,
                INC., a
                Virginia corporation
	 	 
	By:	
                 /s/
                  Richard A.
                  Montoni

              
	Name:	
                 Richard
                  A. Montoni

              
	Title:	
                 President
                  and CEO

              

      

    

     

    
      Acknowledged
        and Agreed to:

       

          SUNTRUST
        BANK,

          as
        Administrative Agent

       

          By:
/s/
        Linda L.
        Bergmann                          
 

          Name:  Linda
        L. Bergmann

          Title:    Vice
        President

    
 

     

    
      [SIGNATURE
        PAGE TO AMENDED AND RESTATED BORROWER PLEDGE
        AGREEMENT]

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