Document:

Exhibit 10.2

 

AMENDED AND RESTATED GUARANTY

 

Dated as of May 6, 2010

 

From

 

THE GUARANTORS NAMED HEREIN

 

And

 

THE ADDITIONAL GUARANTORS
REFERRED TO HEREIN

 

as Guarantors

 

in favor of

 

THE SECURED PARTIES REFERRED
TO IN

THE CREDIT AGREEMENT REFERRED TO HEREIN

 

 

T  A  B  L  E  O  F  C  O  N  T  E  N
T  S

 

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 1.  
  Guaranty; Limitation of Liability

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 2.  
  Guaranty Absolute

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 3.  
  Waivers and Acknowledgments

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 4.  
  Subrogation

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 5.  
  Payments Free and Clear of Taxes, Etc.

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 6.  
  Representations and Warranties

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 7.  
  Covenants

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 8.  
  Amendments, Guaranty Supplements, Etc.

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 9.  
  Notices, Etc.

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 10.  
  No Waiver; Remedies

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 11.  
  Right of Set-off

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 12.  
  Indemnification

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 13.  
  Continuing Guaranty; Assignments under the Credit Agreement

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 14.  
  Execution in Counterparts

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 15.  
  Governing Law; Jurisdiction; Waiver of Jury Trial, Etc.

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  Exhibit A - Guaranty
  Supplement

  	
   

  	
   

  

 

 

GUARANTY

 

AMENDED AND RESTATED GUARANTY dated as of May 6,
2010 (the “Guaranty”) made by the Persons
listed on the signature pages hereof under the caption “Guarantors” and
the Additional Guarantors (as defined in Section 8(b)) (such
Persons so listed and the Additional Guarantors being, collectively, the “Guarantors” and,
individually, each a “Guarantor”) in favor of the Secured Parties (as defined in
the Credit Agreement referred to below).

 

PRELIMINARY STATEMENTS

 

WHEREAS, UHS Holdco, Inc., a Delaware corporation (the “Parent”) entered into that certain Guaranty dated as of May 31,
2007 (the “Existing Guaranty”) guaranteeing
the obligations of Universal Hospital Services, Inc., a Delaware
corporation (the “Borrower”)
under that certain Credit Agreement dated as of May 31, 2007 (the “Existing Credit Agreement”) among the Borrower, the Parent,
the lenders and financial institutions from time to time party thereto, and GE
Business Financial Services, Inc. (formerly known as Merrill Lynch
Business Financial Services Inc.), as administrative agent.

 

WHEREAS, the parties thereto have amended and restated the Existing
Credit Agreement pursuant to the Amended and Restated Credit Agreement dated as
of May 6, 2010 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; the capitalized terms
defined therein and not otherwise defined herein being used herein as therein
defined) among the Borrower, the Parent, the Lenders party thereto, the Initial
L/C Issuer, the Initial Swing Line Lender, GE Business Financial Services Inc.,
as Administrative Agent, and GE Capital Markets, Inc. and Banc of America
Securities, LLC, as Co-Lead Arrangers and as Co-Book Runners.

 

NOW, THEREFORE, in consideration of the premises and
in order to induce the Lenders to make Loans and to issue Letters of Credit
under the Credit Agreement, and the Hedge Banks to enter into Secured Hedge
Agreements from time to time, each Guarantor, jointly and severally with each
other Guarantor, hereby agrees to amend and restate the Existing Guaranty as
follows:

 

Section 1.  Guaranty;
Limitation of Liability.  (a)  Each
Guarantor hereby absolutely, unconditionally and irrevocably guarantees the
punctual payment when due, whether at scheduled maturity or on any date of a
required prepayment or by acceleration, demand or otherwise, of all Obligations
of the Borrower, in its capacity as a Borrower and not as a Guarantor, each
Loan Party guaranteeing the Obligations of the Borrower and each other
Restricted Subsidiary that is an obligor with respect to the Cash Management
Obligations now or hereafter existing (including, without limitation, any
extensions, modifications, substitutions, amendments or renewals of any or all
of the foregoing Obligations), whether direct or indirect, absolute or
contingent, and whether for principal, interest, premiums, fees, indemnities,
contract causes of action, costs, expenses or otherwise (such Obligations being
the “Guaranteed Obligations”),
and agrees to pay any and all reasonable expenses (including, without
limitation, reasonable fees and reasonable out-of-pocket expenses of counsel)
incurred by the Administrative Agent or any other Secured Party in enforcing
any rights under this Guaranty or any other Loan Document in accordance with Section 10.04
of the Credit Agreement (including reasonable fees, expenses and disbursements
of any law firm or other external counsel to the Administrative Agent);  provided, however, that in no event shall the Guaranteed Obligations
of any Guarantor include any of its obligations as a Borrower under the Credit
Agreement.  Without limiting the
generality of the foregoing, each Guarantor’s liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by
any other Guarantor to any Secured Party under or in respect of the Loan
Documents but for the fact that they are unenforceable or not  allowable due to the
existence of a bankruptcy, reorganization or similar proceeding involving such
other Guarantor.

 

 

(b)                                 Each Guarantor (other than the Borrower), and by its
acceptance of this Guaranty, the Administrative Agent and each other Secured
Party, hereby confirms that it is the intention of all such Persons that this
Guaranty and the Obligations of each Guarantor hereunder not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law (as
hereinafter defined), the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar foreign, federal or state Law to the
extent applicable to this Guaranty and the Obligations of each Guarantor
hereunder.  To effectuate the foregoing
intention, the Administrative Agent, the other Secured Parties and the
Guarantors hereby irrevocably agree that the Obligations of each Guarantor
under this Guaranty at any time shall be limited to the maximum amount as will
result in the Obligations of such Guarantor under this Guaranty not
constituting a fraudulent transfer or conveyance.  For purposes hereof, “Bankruptcy Law” means any proceeding of the type referred to in Section 8.01(f) of
the Credit Agreement or Title 11, U.S. Code, or any similar foreign, federal or
state Law for the relief of debtors.

 

(c)                                  Each Guarantor hereby unconditionally and irrevocably agrees
that in the event any payment shall be required to be made to any Secured Party
under this Guaranty or any other guaranty, such Guarantor will contribute, to
the maximum extent permitted by Law, such amounts to each other Guarantor and
each other guarantor so as to maximize the aggregate amount paid to the Secured
Parties under or in respect of the Loan Documents.

 

(d)                                 To the extent that any Guarantor (other than the Parent)
shall be required hereunder to pay a portion of the Guaranteed Obligations
exceeding the greater of (a) the amount of the economic benefit actually
received by such Guarantor from the Loans and (b) the amount such
Guarantor would otherwise have paid if such Guarantor had paid the aggregate
amount of the Guaranteed Obligations (excluding the amount thereof repaid by
the Borrower) in the same proportion as such Guarantor’s net worth at the date
enforcement is sought hereunder bears to the aggregate net worth of all the
Guarantors (taken together with the aggregate net worth of all other “Guarantors” (as such term is defined in the
Credit Agreement) obligated with respect to the Guaranteed Obligations (the “Other Guarantors”)) at the date of
enforcement is sought hereunder, then each Other Guarantor shall reimburse such
other Guarantors for the amount of such excess, pro rata, based on the
respective net worths of such Other Guarantors at the date enforcement
hereunder is sought.

 

Section 2.  Guaranty
Absolute.  Each Guarantor
guarantees that the Guaranteed Obligations will be paid strictly in accordance
with the terms of the Loan Documents, regardless of any Law, regulation or
order now or hereafter in effect in any jurisdiction affecting any of such
terms or the rights of any Secured Party with respect thereto.  The Obligations of each Guarantor under or in
respect of this Guaranty are independent of the Guaranteed Obligations or any
other Obligations of any other Loan Party under or in respect of the Loan
Documents, and a separate action or actions may be brought and prosecuted
against each Guarantor to enforce this Guaranty, irrespective of whether any
action is brought against the Borrower or any other Loan Party or whether the
Borrower or any other Loan Party is joined in any such action or actions.  The liability of each Guarantor under this
Guaranty shall be irrevocable, absolute and unconditional irrespective of, and
each Guarantor hereby irrevocably waives any defenses it may now have or
hereafter acquire in any way relating to, any or all of the following:

 

(a)                                  any lack of validity or enforceability of any Loan Document
or any agreement or instrument relating thereto;

 

(b)                                 any change in the time, manner or place of payment of, or in
any other term of, all or any of the Guaranteed Obligations or any other
Obligations of any other Loan Party under or in respect of the Loan Documents,
or any other amendment or waiver of or any consent to departure from any Loan
Document, including, without limitation, any increase in the Guaranteed

 

2

 

Obligations
resulting from the extension of additional credit to any Loan Party or any of
its Subsidiaries or otherwise;

 

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

 

(d)                                 any manner of application of Collateral or any other
collateral, or proceeds thereof, to all or any of the Guaranteed Obligations,
or any manner of sale or other disposition of any Collateral or any other
collateral for all or any of the Guaranteed Obligations or any other
Obligations of any Loan Party under the Loan Documents or any other assets of
any Loan Party or any of its Subsidiaries;

 

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

 

(f)                                    any failure of any Secured Party to disclose to any Loan
Party any information relating to the business, condition (financial or
otherwise), operations, performance, properties or prospects of any other Loan
Party now or hereafter known to such Secured Party (each Guarantor waiving any
duty on the part of the Secured Parties to disclose such information);

 

(g)                                 the failure of any other Person to execute or deliver this
Guaranty, any Guaranty Supplement (as hereinafter defined) or any other
guaranty or agreement or the release or reduction of liability of any Guarantor
or other guarantor or surety with respect to the Guaranteed Obligations; or

 

(h)                                 any other circumstance (including, without limitation, any
statute of limitations) or any existence of or reliance on any representation
by any Secured Party that might otherwise constitute a defense available to, or
a discharge of, any Loan Party or any other guarantor or surety (other than
payment of the Guaranteed Obligations in full).

 

This Guaranty shall continue
to be effective or be reinstated, as the case may be, if at any time any
payment of any of the Guaranteed Obligations is rescinded or must otherwise be
returned by any Secured Party or any other Person upon the insolvency,
bankruptcy or reorganization of the Borrower or any other Loan Party or
otherwise, all as though such payment had not been made.

 

Section 3.  Waivers
and Acknowledgments.  (a)  Each
Guarantor hereby unconditionally and irrevocably waives promptness, diligence,
notice of acceptance, presentment, demand for performance, notice of
nonperformance, default, acceleration, protest or dishonor and any other notice
with respect to any of the Guaranteed Obligations and this Guaranty and any
requirement that any Secured Party protect, secure, perfect or insure any Lien
or any property subject thereto or exhaust any right or take any action against
any Loan Party or any other Person or any Collateral.

 

(b)                                 Each Guarantor hereby unconditionally and irrevocably waives
any right to revoke this Guaranty and acknowledges that this Guaranty is
continuing in nature and applies to all Guaranteed Obligations, whether
existing now or in the future.

 

(c)                                  Each Guarantor hereby unconditionally and irrevocably waives
(i) any defense arising by reason of any claim or defense based upon an
election of remedies by any Secured Party that in any manner impairs, reduces,
releases or otherwise adversely affects the subrogation, reimbursement,
exoneration, contribution or indemnification rights of such Guarantor or other
rights of such Guarantor to

 

3

 

proceed against any of the other
Loan Parties, any other guarantor or any other Person or any Collateral and (ii) any
defense based on any right of set-off or counterclaim against or in respect of
the Obligations of such Guarantor hereunder.

 

(d)                                 Each Guarantor acknowledges that the Collateral Agent may,
without notice to or demand upon such Guarantor and without affecting the
liability of such Guarantor under this Guaranty, foreclose under any mortgage
by nonjudicial sale, and each Guarantor hereby waives any defense to the
recovery by the Collateral Agent and the other Secured Parties against such
Guarantor of any deficiency after such nonjudicial sale and any defense or
benefits that may be afforded by applicable Law.

 

(e)                                  Each Guarantor hereby unconditionally and irrevocably waives
any duty on the part of any Secured Party to disclose to such Guarantor any
matter, fact or thing relating to the business, condition (financial or
otherwise), operations, performance, properties or prospects of any other Loan
Party or any of its Subsidiaries now or hereafter known by such Secured Party.

 

(f)                                    Each Guarantor acknowledges that it will receive substantial
direct and indirect benefits from the financing arrangements contemplated by
the Loan Documents and that the waivers set forth in Section 2 and
this Section 3 are knowingly made in contemplation of such
benefits.

 

Section 4.  Subrogation.  Each Guarantor hereby
unconditionally and irrevocably agrees not to exercise any rights that it may
now have or hereafter acquire against the Borrower, any other Loan Party or any
other insider guarantor that arise from the existence, payment, performance or
enforcement of such Guarantor’s Obligations under or in respect of this
Guaranty or any other Loan Document, including, without limitation, any right
of subrogation, reimbursement, exoneration, contribution or indemnification and
any right to participate in any claim or remedy of any Secured Party against
the Borrower, any other Loan Party or any other insider guarantor or any
Collateral, whether or not such claim, remedy or right arises in equity or
under contract, statute or common Law, including, without limitation, the right
to take or receive from the Borrower, any other Loan Party or any other insider
guarantor, directly or indirectly, in cash or other property or by set-off or
in any other manner, payment or security on account of such claim, remedy or
right, unless and until all of the Guaranteed Obligations (other than (x) obligations
with respect to Secured Hedge Agreements, (y) Cash Management Obligations
not yet due and payable and (z) contingent indemnification obligations not
yet accrued and payable under the Loan Documents) and all other amounts payable
under this Guaranty shall have been paid in full in cash, all Letters of Credit
shall have been cash collateralized or otherwise back-stopped, in each case, on
terms required by the Credit Agreement or shall have expired or been terminated
and the Commitments shall have expired or been terminated.  If any amount shall be paid to any Guarantor
in violation of the immediately preceding sentence at any time prior to the
latest of (a) the payment in full in cash of the Guaranteed Obligations
and all other amounts payable under this Guaranty, (b) the Maturity Date
of the Revolving Credit Facility and (c) the latest date of cash
collateralization or other back-stop, in each case, on the terms required by
the Credit Agreement or the expiration or termination of all Letters of Credit,
such amounts shall be received and held in trust for the benefit of the Secured
Parties, shall be segregated from other property and funds of such Guarantor
and shall forthwith be paid or delivered to the Administrative Agent in the
same form as so received (with any necessary endorsement or assignment) to be
credited and applied to the Guaranteed Obligations and all other amounts
payable under this Guaranty, whether matured or unmatured, in accordance with
the terms of the Loan Documents, or to be held as Collateral for any Guaranteed
Obligations (other than (x) obligations with respect to Secured Hedge
Agreements, (y) Cash Management Obligations not yet due and payable and (z) contingent
indemnification obligations not yet accrued and payable under the Loan
Documents) or other amounts payable under this Guaranty thereafter
arising.  If (i) any Guarantor shall
make payment to any Secured Party of all or any part of the Guaranteed
Obligations, (ii) all of the Guaranteed Obligations and all other amounts,
if any, payable under this Guaranty shall have been paid in full in cash, (iii) the
Maturity Date of

 

4

 

the Revolving Credit
Facility shall have occurred and (iv) all Letters of Credit shall have
been cash collateralized or otherwise back-stopped, in each case, on the terms
required under the Credit Agreement, or shall have expired or been terminated,
the Secured Parties will, at such Guarantor’s request and expense, execute and
deliver to such Guarantor appropriate documents, without recourse and without
representation or warranty, necessary to evidence the transfer by subrogation
to such Guarantor of an interest in the Guaranteed Obligations resulting from
such payment made by such Guarantor pursuant to this Guaranty.

 

Section 5.  Payments
Free and Clear of Taxes, Etc.  Any payment made by a Guarantor
pursuant to this Guaranty which results in the imposition of Taxes which would
not have been imposed had the payment been made by the Borrower shall be made
free and clear of and without deduction for any such Taxes; provided that if a Guarantor shall be required to deduct any
such Taxes from such payments, then (i) the sum payable shall be increased
as necessary so that after making all required deductions (including deductions
applicable to additional sums paid under this section) the Administrative
Agent, Lender or L/C Issuer (as the case may be) receives an amount equal to
the sum it would have received had no such deductions been made, (ii) such
Guarantor shall make such deductions and (iii) such Guarantor shall pay
the full amount deducted to the relevant taxation authority or other authority
in accordance with applicable Law. For the avoidance of doubt, this
Section 5 shall be read as an obligation of the Guarantors that is in
addition to their Guarantee of the Borrower’s obligations to indemnify for
Taxes and Other Taxes pursuant to Section 3.01 of the Credit
Agreement and shall not relieve a Guarantor of its obligations to make payments
pursuant to Section 3.01 of the Credit Agreement on the relevant
Borrower’s behalf.

 

Section 6.  Representations
and Warranties.  Each Guarantor
hereby makes each representation and warranty made in the Loan Documents by the
Borrower with respect to such Guarantor and each Guarantor hereby further
represents and warrants as follows:

 

(a)                                  There are no conditions precedent to the effectiveness of
this Guaranty that have not been satisfied or waived.

 

(b)                                 Such Guarantor has, independently and without reliance upon
any Secured Party and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Guaranty and each other Loan Document to which it is or is to be a party, and
such Guarantor has established adequate means of obtaining from each other Loan
Party on a continuing basis information pertaining to, and is now and on a
continuing basis will be familiar with, the business, condition (financial or
otherwise), operations, performance, properties and prospects of such other
Loan Party.

 

Section 7.  Covenants.  Each Guarantor (other than
the Borrower) covenants and agrees that, so long as any part of the Guaranteed
Obligations shall remain unpaid, any Letter of Credit shall be outstanding and
not cash collateralized or otherwise back-stopped in accordance with the Cash Collateralization
or back-to-back letter of credit provisions set forth in Section 2.03(g) of
the Credit Agreement or any Lender shall have any Commitment, such Guarantor
will perform and observe, and cause each of its Subsidiaries to perform and
observe, all of the terms, covenants and agreements set forth in the Loan
Documents on its or their part to be performed or observed or that the Borrower
has agreed to cause such Guarantor or such Subsidiaries to perform or observe.

 

Section 8.  Amendments,
Guaranty Supplements, Etc.  (a)  No amendment or waiver of
any provision of this Guaranty and no consent to any departure by any Guarantor
therefrom shall in any event be effective unless the same shall be in writing
and signed by the Administrative Agent and the Required Lenders, and then such
waiver or consent shall be effective only in the specific instance and for

 

5

 

the specific purpose for
which given.  Upon the sale of a
Guarantor to the extent permitted in accordance with the terms of the Loan
Documents, such Guarantor (other than the Borrower) shall be automatically
released from this Guaranty.  The
Administrative Agent will, at such Guarantor’s expense, execute and deliver to
such Guarantor such documents as such Guarantor shall reasonably request to
evidence the release of such Guarantor from its Guarantee hereunder pursuant to
this Section 8; provided that
such Guarantor shall have delivered to the Administrative Agent a written
request therefor and a certificate of such Guarantor to the effect that the
transaction is in compliance with the Loan Documents.  The Administrative Agent shall be authorized
to rely on any such certificate without independent investigation.

 

(b)                                 Upon the execution and delivery by any Person of a guaranty
supplement in substantially the form of Exhibit A hereto (each, a “Guaranty
Supplement”), (i) such
Person shall be referred to as an “Additional Guarantor” and shall become and be a Guarantor hereunder, and each
reference in this Guaranty to a “Guarantor”
shall also mean and be a reference to such Additional Guarantor, and each
reference in any other Loan Document to a “Guarantor
“shall also mean and be a reference to such Additional Guarantor, and (ii) each
reference herein to “this Guaranty”, “hereunder”, “hereof” or words of
like import referring to this Guaranty, and each reference in any other Loan
Document to the “Guaranty”, “thereunder”, “thereof” or words of
like import referring to this Guaranty, shall mean and be a reference to this
Guaranty as supplemented by such Guaranty Supplement.

 

Section 9.  Notices,
Etc.  All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy, pdf or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered to it,
if to any Guarantor, addressed to it in care of the Borrower at the Borrower’s
address specified in Schedule 10.02 of the Credit Agreement, if to
any Agent, at its address specified in Schedule 10.02 of the Credit Agreement,
if to or any Lender, at its address specified in its Administrative
Questionnaire, if to any Hedge Bank, at its address specified in the Secured
Hedge Agreement to which it is a party, or, as to any party, at such other
address as shall be designated by such party in a written notice to each other
party.  All such notices and other
communications shall be deemed to be given or made at such time as shall be set
forth in Section 10.02 of the Credit Agreement.  Delivery by telecopier or pdf of an executed
counterpart of a signature page to any amendment or waiver of any
provision of this Guaranty or of any Guaranty Supplement to be executed and
delivered hereunder shall be effective as delivery of an original executed
counterpart thereof.

 

Section 10.  No
Waiver; Remedies.  No failure on
the part of any Secured Party to exercise, and no delay in exercising, any
right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. 
The remedies herein provided are cumulative and not exclusive of any
remedies provided by Law.

 

Section 11.  Right
of Set-off.  Upon the
occurrence and during the continuance of any Event of Default, the
Administrative Agent and, after obtaining the prior written consent of the
Administrative Agent, each other Agent and each Lender and each of their
respective Affiliates is hereby authorized at any time and from time to time,
to the fullest extent permitted by Law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final, but
excluding payroll, tax and trust accounts) at any time held and other
indebtedness at any time owing by such Agent, such Lender or such Affiliate to
or for the credit or the account of any Guarantor against any and all of the
Obligations of such Guarantor now or hereafter existing under the Loan
Documents, irrespective of whether such Agent or such Lender shall have made
any demand under this Guaranty or any other Loan Document provided such
Obligations shall be due and payable. 
Each Agent and each Lender agrees promptly to notify such Guarantor
after any such set-off and application; provided,
however, that the failure to give
such notice shall not affect the validity of such set-off and application.  The rights of each Agent and each

 

6

 

Lender and their respective
Affiliates under this Section are in addition to other rights and remedies
(including, without limitation, other rights of set-off) that such Agent, such
Lender and their respective Affiliates may have.

 

Section 12.  Indemnification.  (a)  Without limitation
on any other Obligations of any Guarantor or remedies of the Secured Parties
under this Guaranty, each Guarantor shall, to the fullest extent permitted by
law, indemnify, defend and save and hold harmless each Secured Party and each
of their Affiliates and their respective officers, directors, employees, agents
and advisors (each, an “Indemnified
Party”) from and against, any and all claims, damages, losses, liabilities and
expenses (including, without limitation, Attorney Costs) (which shall be
limited to one (1) counsel to the Administrative Agent and the Secured
Parties (exclusive of one local counsel to the Administrative Agent and the
Secured Parties in each appropriate jurisdiction), unless (x) the
interests of the Administrative Agent and the Secured Parties are sufficiently
divergent, in which case one (1) additional counsel may be appointed and
(y) if the interests of any Secured Party or group of Secured Parties
(other than all of the Secured Parties) are distinctly or disproportionately
affected, one (1) additional counsel for such Secured Party or group of Secured
Parties in connection with the execution, delivery, enforcement, performance or
administration of any Loan Document or any other agreement, letter or
instrument delivered in connection with the transactions contemplated thereby
or the consummation of the transactions contemplated thereby) that may be
actually incurred by or awarded against any Indemnified Party in connection
with or as a result of any failure of any Guaranteed Obligations to be the
legal, valid and binding obligations of any Loan Party enforceable against such
Loan Party in accordance with their terms.

 

(b)                                 Each Guarantor hereby also agrees that none of the
Indemnified Parties shall have any liability (whether direct or indirect, in
contract, tort or otherwise) to any of the Guarantors or any of their
respective Affiliates or any of their respective officers, directors,
employees, agents and advisors, and each Guarantor hereby agrees not to assert
any claim against any Indemnified Party on any theory of liability, for
special, indirect, consequential or punitive damages arising out of or
otherwise relating to the Facilities, the actual or proposed use of the
proceeds of the Loans or the Letters of Credit, the Loan Documents or any of
the transactions contemplated by the Loan Documents.

 

(c)                                  Each of the Indemnified Parties hereby also agrees that none
of the Guarantors shall have any liability (whether direct or indirect, in
contract, tort or otherwise) to any of the Indemnified Parties or any of their
respective Affiliates or any of their respective officers, directors,
employees, agents and advisors, and each of the Indemnified Parties hereby
agrees not to assert any claim against any Guarantor on any theory of
liability, for special, indirect, consequential or punitive damages arising out
of or otherwise relating to the Facilities, the actual or proposed use of the
proceeds of the Loans or the Letters of Credit, the Loan Documents or any of
the transactions contemplated by the Loan Documents.

 

(d)                                 Without prejudice to the survival of any of the other
agreements of any Guarantor under this Guaranty or any of the other Loan
Documents, the agreements and obligations of each Guarantor contained in Section 1(a) (with
respect to enforcement expenses), the last sentence of Section 2, Section 5
and this Section 12 shall survive the payment in full of the
Guaranteed Obligations and all of the other amounts payable under this
Guaranty.

 

Section 13.  Continuing
Guaranty; Assignments under the Credit Agreement.  This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until
the latest of (i) the payment in full in cash of the Guaranteed
Obligations (other than with respect to the Secured Hedge Agreement and the
Cash Management Obligations that are not yet due and payable and contingent indemnification
obligations for which no claim has been asserted) and all other amounts payable
under this Guaranty, (ii) the Maturity Date of the Revolving Credit
Facility and (iii) the latest date of cash collateralization or other
back-stop, in each case, on the terms required by the Credit Agreement, or

 

7

 

expiration or termination of
all Letters of Credit, (b) be binding upon each Guarantor, its successors
and assigns and (c) inure to the benefit of and be enforceable by the
Secured Parties and their successors, transferees and assigns.  Without limiting the generality of
clause (c) of the immediately preceding sentence, any Secured Party
may assign or otherwise transfer all or any portion of its rights and
obligations under the Credit Agreement (including, without limitation, all or
any portion of its Commitments, the Loans owing to it and the Note or Notes
held by it) to any other Person, and such other Person shall thereupon become
vested with all the benefits in respect thereof granted to such Secured Party
herein or otherwise, in each case as and to the extent provided in Section 10.07
of the Credit Agreement.  Except as
expressly provided in the Credit Agreement, no Guarantor shall have the right
to assign its rights hereunder or any interest herein without the prior written
consent of the Secured Parties.

 

Section 14.  Execution
in Counterparts.  This Guaranty
and each amendment, waiver and consent with respect hereto may be executed in
any number of counterparts and by different parties thereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Guaranty by telecopier or pdf
shall be effective as delivery of an original executed counterpart of this
Guaranty.

 

Section 15.  Governing
Law; Jurisdiction; Waiver of Jury Trial, Etc.  (a)  This
Guaranty shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

(b)                                 Each Guarantor and each of the Secured Parties hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of
the United States of America sitting in New York City, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to this Guaranty or any of the other Loan Documents to which it is or is to be
a party, or for recognition or enforcement of any judgment, and each Guarantor
and each of the Secured Parties hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court.  Each Guarantor
and each of the Secured Parties and each of the Secured Parties agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Guaranty or any other Loan Document shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Guaranty or
any other Loan Document in the courts of any jurisdiction.

 

(c)                                  Each Guarantor and each of the Secured Parties irrevocably
and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection that it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Guaranty or any of the other Loan Documents to which it is or is to be a
party in any New York State or federal court.  Each Guarantor and each of the Secured
Parties hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such suit, action or
proceeding in any such court.

 

(d)                                 EACH GUARANTOR AND EACH OF THE SECURED PARTIES HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO ANY OF THE LOAN DOCUMENTS, THE LOANS OR THE ACTIONS OF ANY SECURED
PARTY OR GUARANTOR IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR
ENFORCEMENT THEREOF.

 

[Remainder of Page Left Intentionally Blank]

 

8

 

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

 

 

	
   

  	
  UHS
  HOLDCO, INC., as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Rex T. Clevenger

  
	
   

  	
   

  	
  Name: Rex T. Clevenger

  
	
   

  	
   

  	
  Title: CFO & Executive Vice President

  

 

 

	
   

  	
  [OTHER
  GUARANTORS]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A

To The

Amended and Restated Guaranty

 

FORM OF GUARANTY SUPPLEMENT

 

, 201  

 

GE Business Financial Services Inc., as
Administrative Agent

500 West Monroe Street

Chicago, IL 60661

Phone: (312) 441-6908

Fax: (866) 388-3572

 

Amended and Restated Credit
Agreement dated as of May 6, 2010 among UNIVERSAL HOSPITAL SERVICES, INC.,
a Delaware corporation (the “Borrower”), UHS
HOLDCO, INC., a Delaware corporation (the “Parent”) the
Lenders, the Initial L/C Issuer, the Initial Swing Line Lender, GE BUSINESS
FINANCIAL SERVICES INC., as Administrative Agent, and GE CAPITAL MARKETS, INC.
and BANC OF AMERICA SECURITIES, LLC, as Co-Lead Arrangers and Co-Book Runners.

 

Ladies and Gentlemen:

 

Reference is made to the above-captioned Amended and
Restated Credit Agreement and to the Guaranty referred to therein (such
Guaranty, as in effect on the date hereof and as it may hereafter be amended,
amended and restated, supplemented or otherwise modified from time to time,
together with this Guaranty Supplement, being the “Amended and
Restated Guaranty”).  The
capitalized terms defined in the Amended and Restated Guaranty or in the
Amended and Restated Credit Agreement and not otherwise defined herein are used
herein as therein defined.

 

Section 1. 
Guaranty; Limitation of Liability.  (a)  The
undersigned hereby absolutely, unconditionally and irrevocably guarantees the
punctual payment when due, whether at scheduled maturity or on any date of a
required prepayment or by acceleration, demand or otherwise, of all Obligations
of the Borrower, each Loan Party guaranteeing the Obligations of the Borrower
and each other Restricted Subsidiary which is an obligor with respect to the
Cash Management Obligations now or hereafter existing under or in respect of
the Loan Documents (including, without limitation, any extensions,
modifications, substitutions, amendments or renewals of any or all of the
foregoing Obligations), whether direct or indirect, absolute or contingent, and
whether for principal, interest, premiums, fees, indemnities, contract causes
of action, costs, expenses or otherwise (such Obligations being the “Guaranteed Obligations”), and
agrees to pay any and all expenses (including, without limitation, reasonable
fees and reasonable out-of-pocket expenses of counsel) incurred by the
Administrative Agent or any other Secured Party in enforcing any rights under
this Guaranty Supplement, the Amended and Restated Guaranty or any other Loan
Document in accordance with Section 10.04 of the Amended and
Restated Credit Agreement (including reasonable fees, expenses and
disbursements of any law firm or other external counsel to the Administrative
Agent); provided, however, that in no event
shall the Guaranteed Obligations of any Guarantor include any of its
obligations as a Borrower under the Amended and Restated Credit Agreement.  Without limiting the generality of the
foregoing, the

 

 

undersigned’s liability
shall extend to all amounts that constitute part of the Guaranteed Obligations
and would be owed by any other Loan Party to any Secured Party under or in
respect of the Loan Documents but for the fact that they are unenforceable or
not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving such other Loan Party.

 

(b)                                 The
undersigned, and by its acceptance of this Guaranty Supplement, the
Administrative Agent and each other Secured Party, hereby confirms that it is
the intention of all such Persons that this Guaranty Supplement, the Amended
and Restated Guaranty and the Obligations of the undersigned hereunder and
thereunder not constitute a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar foreign, federal or state law to the extent
applicable to this Guaranty Supplement, the Amended and Restated Guaranty and
the Obligations of the undersigned hereunder and thereunder.  To effectuate the foregoing intention, the
Administrative Agent, the other Secured Parties and the undersigned hereby
irrevocably agree that the Obligations of the undersigned under this Guaranty
Supplement and the Amended and Restated Guaranty at any time shall be limited
to the maximum amount as will result in the Obligations of the undersigned
under this Guaranty Supplement and the Amended and Restated Guaranty not
constituting a fraudulent transfer or conveyance.

 

(c)                                  The undersigned
hereby unconditionally and irrevocably agrees that in the event any payment
shall be required to be made to any Secured Party under this Guaranty
Supplement, the Amended and Restated Guaranty; or any other guaranty, the
undersigned will contribute, to the maximum extent permitted by applicable law,
such amounts to each other Guarantor and each other guarantor so as to maximize
the aggregate amount paid to the Secured Parties under or in respect of the
Loan Documents.

 

(d)                                 To the extent
that any Guarantor (other than the Parent) shall be required hereunder to pay a
portion of the Guaranteed Obligations exceeding the greater of (a) the
amount of the economic benefit actually received by such Guarantor from the
Loans and (b) the amount such Guarantor would otherwise have paid if such
Guarantor had paid the aggregate amount of the Guaranteed Obligations
(excluding the amount thereof repaid by the Borrower) in the same proportion as
such Guarantor’s net worth at the date enforcement is sought hereunder bears to
the aggregate net worth of all the Guarantors (taken together with the
aggregate net worth of all other “Guarantors” (as
such term is defined in the Amended and Restated Credit Agreement) obligated
with respect to the Guaranteed Obligations (the “Other
Guarantors”)) at the date of enforcement is sought hereunder, then
each Other Guarantor shall reimburse such other Guarantors for the amount of
such excess, pro rata, based on the respective net worths of such Other
Guarantors at the date enforcement hereunder is sought.

 

Section 2. 
Obligations Under the Guaranty.  The undersigned
hereby agrees, as of the date first above written, to be bound as a Guarantor
by all of the terms and conditions of the Amended and Restated Guaranty to the
same extent as each of the other Guarantors thereunder.  The undersigned further agrees, as of the
date first above written, that each reference in the Amended and Restated
Guaranty to an “Additional
Guarantor” or a “Guarantor”
shall also mean and be a reference to the undersigned, and each reference in
any other Loan Document to a “Domestic Guarantor” or a “Loan Party” shall also mean and
be a reference to the undersigned.

 

Section 3. 
Representations and Warranties.  The undersigned
hereby makes each representation and warranty set forth in Section 6
of the Amended and Restated Guaranty to the same extent as each other
Guarantor.

 

Section 4. 
Delivery by Telecopier.  Delivery of an
executed counterpart of a signature page to this Guaranty Supplement by
telecopier shall be effective as delivery of an original executed counterpart
of this Guaranty Supplement.

 

2

 

Section 5. 
Governing Law; Jurisdiction; Waiver of Jury Trial, Etc.  (a)  This
Guaranty Supplement shall be governed by, and construed in accordance with, the
laws of the State of New York.

 

(b)                                 The undersigned
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any New York State court or any federal
court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Guaranty Supplement, the Amended and Restated Guaranty or any
of the other Loan Documents to which it is or is to be a party, or for
recognition or enforcement of any judgment, and the undersigned hereby
irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such federal court.  The undersigned 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 Guaranty Supplement
or the Amended and Restated Guaranty or any other Loan Document shall affect
any right that any party may otherwise have to bring any action or proceeding
relating to this Guaranty Supplement, the Amended and Restated Guaranty or any
of the other Loan Documents to which it is or is to be a party in the courts of
any other jurisdiction.

 

(c)                                  The undersigned
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection that it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Guaranty Supplement, the Amended and Restated Guaranty or any of the other
Loan Documents to which it is or is to be a party in any New York State or
federal court.  The undersigned hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such suit, action or proceeding in any
such court.

 

(d)                                 THE UNDERSIGNED
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF
OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE LOANS OR THE ACTIONS OF ANY
SECURED PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT
THEREOF.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME
  OF ADDITIONAL GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  

 

3Exhibit 10.3

 

AMENDED AND RESTATED FIRST
LIEN SECURITY AGREEMENT

 

Dated as of May 6, 2010

From

The Grantors referred to herein

as Grantors

To

GE BUSINESS FINANCIAL SERVICES INC.

as Collateral Agent

 

 

T  A  B  L
E  O  F  C  O  N  T  E  N
T  S

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1.
  Grant of Security

  	
  2

  
	
   

  	
   

  
	
  SECTION 2.
  Security for Obligations

  	
  5

  
	
   

  	
   

  
	
  SECTION 3.
  Grantors Remain Liable

  	
  5

  
	
   

  	
   

  
	
  SECTION 4.
  Delivery and Control of Security Collateral and Chattel Paper

  	
  5

  
	
   

  	
   

  
	
  SECTION 5.
  Maintaining the Collateral Account; Pledged Accounts

  	
  6

  
	
   

  	
   

  
	
  SECTION 6.
  Investing of Amounts in the Collateral Account

  	
  6

  
	
   

  	
   

  
	
  SECTION 7.
  Release of Amounts

  	
  7

  
	
   

  	
   

  
	
  SECTION 8.
  Representations and Warranties

  	
  7

  
	
   

  	
   

  
	
  SECTION 9.
  Further Assurances

  	
  9

  
	
   

  	
   

  
	
  SECTION 10.
  As to Equipment and Inventory

  	
  10

  
	
   

  	
   

  
	
  SECTION 11.
  Insurance

  	
  10

  
	
   

  	
   

  
	
  SECTION 12.
  Post-Closing Changes

  	
  11

  
	
   

  	
   

  
	
  SECTION 13.
  As to Intellectual Property Collateral

  	
  11

  
	
   

  	
   

  
	
  SECTION 14.
  Commercial Tort Claims

  	
  12

  
	
   

  	
   

  
	
  SECTION 15.
  Transfers and Other Liens

  	
  12

  
	
   

  	
   

  
	
  SECTION 16.
  Collateral Agent Appointed Attorney in Fact

  	
  12

  
	
   

  	
   

  
	
  SECTION 17.
  Collateral Agent May Perform

  	
  13

  
	
   

  	
   

  
	
  SECTION 18.
  The Collateral Agent’s Duties

  	
  13

  
	
   

  	
   

  
	
  SECTION 19.
  As to Receivables and Security Collateral

  	
  13

  
	
   

  	
   

  
	
  SECTION 20.
  Remedies

  	
  13

  
	
   

  	
   

  
	
  SECTION 21.
  Indemnity and Expenses

  	
  15

  
	
   

  	
   

  
	
  SECTION 22.
  Amendments; Waivers; Additional Grantors; Etc.

  	
  15

  
	
   

  	
   

  
	
  SECTION 23.
  Notices, Etc.

  	
  16

  
	
   

  	
   

  
	
  SECTION 24.
  Continuing Security Interest; Assignments under the Credit Agreement

  	
  16

  

 

ii

 

	
  SECTION 25.
  Release; Termination

  	
  16

  
	
   

  	
   

  
	
  SECTION 26.
  Execution in Counterparts

  	
  17

  
	
   

  	
   

  
	
  SECTION 27. Governing
  Law

  	
  17

  

 

	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
  —

  	
  Investment
  Property

  
	
  Schedule II

  	
  —

  	
  Pledged
  Accounts

  
	
  Schedule III

  	
  —

  	
  [Intentionally
  Omitted].

  
	
  Schedule IV

  	
  —

  	
  Intellectual
  Property

  
	
  Schedule V

  	
  —

  	
  Commercial
  Tort Claims

  
	
  Schedule VI

  	
  —

  	
  Location,
  Chief Executive Office, Type of Organization, Jurisdiction of Organization
  and Organizational Identification Number

  
	
  Schedule VII

  	
  —

  	
  Changes
  in Name, Location, Etc.

  
	
  Schedule VIII

  	
  —

  	
  Locations
  of Equipment and Inventory

  
	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  —

  	
  [Intentionally
  Omitted]

  
	
  Exhibit B

  	
  —

  	
  Form of
  Copyright Security Agreement

  
	
  Exhibit C

  	
  —

  	
  Form of
  Patent Security Agreement

  
	
  Exhibit D

  	
  —

  	
  Form of
  Trademark Security Agreement

  
	
  Exhibit E

  	
  —

  	
  Form of
  Security Agreement Supplement

  

 

iii

 

AMENDED AND RESTATED FIRST
LIEN SECURITY AGREEMENT

 

AMENDED AND RESTATED FIRST LIEN SECURITY AGREEMENT
dated as of May 6, 2010 (this “Agreement”)
made by UNIVERSAL HOSPITAL SERVICES, INC., a Delaware corporation (the “Borrower”), UHS HOLDCO, INC., a Delaware
corporation (the “Parent”) and
any other Person that subsequently becomes a party hereto (together with the
Borrower, the “Grantors”),
to GE BUSINESS FINANCIAL SERVICES INC. (formerly known as Merrill Lynch
Business Financial Services Inc.), as collateral agent (together with any
successor collateral agent appointed pursuant to Article 9 of the
Credit Agreement referred to below, the “Collateral Agent”) for the Secured
Parties (as defined in the Credit Agreement referred to below).

 

PRELIMINARY STATEMENTS

 

The Borrower and the Parent, have entered into a First
Lien Security Agreement dated May 31,
2007 (the “Existing Security Agreement”)
securing the obligations of Borrower under that certain Credit Agreement dated
as of May 31, 2007 (the “Existing Credit Agreement”)
among the Borrower, the Parent, the lenders and
financial institutions from time to time party thereto, and GE Business
Financial Services, Inc., as Administrative Agent.

 

The
parties thereto have amended and restated the Existing Credit Agreement
pursuant to the Amended and Restated Credit Agreement dated as of the date
hereof (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) among the Borrower, the Parent, the
Lenders party thereto, the Initial L/C Issuer, the Initial Swing Line Lender,
the Administrative Agent, and GE Capital Markets, Inc. and Banc of America
Securities, LLC, as Co-Lead Arrangers and as Co-Book Runners.

 

Each Grantor is the owner of
the indebtedness (the “Initial Pledged Debt”)
set forth opposite such Grantor’s name on and as otherwise described in
Schedule I hereto and issued by the obligors named therein.

 

Each Grantor is the owner of
the deposit accounts (the “Pledged Deposit Accounts”) and the securities accounts (the
“Pledged
Securities Accounts”) set forth opposite such Grantor’s name on
Schedule II hereto.

 

The Borrower will be the
owner of an account to be opened at the request of the Collateral Agent (the “Collateral Account”
and, together with the Pledged Deposit Accounts and the Pledged Securities
Accounts, the “Pledged Accounts”).

 

The Grantors own the other
Collateral described below.

 

It is a condition precedent
to the effectiveness of the amendment and restatement of the Existing Credit
Agreement that the Grantors shall have amended and restated the Existing
Security Agreement and granted the security interest contemplated by this
Agreement.  Each Grantor will derive
substantial direct and indirect benefit from the transactions contemplated by
the Loan Documents.

 

Terms defined in the Credit
Agreement and not otherwise defined in this Agreement are used in this
Agreement as defined in the Credit Agreement. 
Further, unless otherwise defined in this Agreement or in the Credit
Agreement, terms defined in Article 8 or 9 of the UCC (as defined below)
are used in this Agreement as such terms are defined in such Article 8 or
9.  “UCC” means the Uniform Commercial Code
as in effect from time to time in the State of New York; provided that, if perfection or the
effect of perfection or non-perfection or the priority of the security interest
in any Collateral is governed by the 

 

 

Uniform Commercial Code as
in effect in a jurisdiction other than the State of New York,  “UCC” means the Uniform Commercial Code as in effect from
time to time in such other jurisdiction for purposes of the provisions hereof
relating to such perfection, effect of perfection or non-perfection or
priority.

 

NOW, THEREFORE, in consideration
of the premises and in order to induce (a) the Lenders to amend and
restate the Existing Credit Agreement and make Loans and issue Letters of
Credit under the Credit Agreement, (b) Affiliates of the Lenders to incur
Cash Management Obligations, and (c) the Hedge Banks to enter into Secured
Hedge Agreements from time to time, each Grantor hereby agrees with the
Collateral Agent for the ratable benefit of the Secured Parties as follows:

 

SECTION 1.  Grant of Security.  Each Grantor hereby grants to the Collateral
Agent, for the ratable benefit of the Secured Parties, a security interest in
such Grantor’s right, title and interest in and to the following, in each case,
as to each type of property described below, whether now owned or hereafter
acquired by such Grantor, wherever located, and whether now or hereafter
existing or arising (collectively, the “Collateral”):

 

(a)                                  all equipment
in all of its forms, including, without limitation, all machinery, tools, motor
vehicles, vessels, aircraft, furniture and fixtures, and all parts thereof and
all accessions thereto, including, without limitation, computer programs and
supporting information that constitute equipment within the meaning of the UCC
(any and all such property being the “Equipment”);

 

(b)                                 all inventory
in all of its forms, including, without limitation, (i) all raw materials,
work in process, finished goods and materials used or consumed in the
manufacture, production, preparation or shipping thereof, (ii) goods in
which such Grantor has an interest in mass or a joint or other interest or
right of any kind (including, without limitation, goods in which such Grantor
has an interest or right as consignee) and (iii) goods that are returned
to or repossessed or stopped in transit by such Grantor), and all accessions
thereto and products thereof and documents therefor, including, without
limitation, computer programs and supporting information that constitute
inventory within the meaning of the UCC (any and all such property being the “Inventory”);

 

(c)                                  all accounts
(including, without limitation, health-care-insurance receivables), chattel
paper (including, without limitation, tangible chattel paper and electronic
chattel paper), instruments (including, without limitation, promissory notes),
deposit accounts, securities accounts, letter-of-credit rights, general
intangibles (including, without limitation, payment intangibles) and other
obligations of any kind, whether or not arising out of or in connection with
the sale or lease of goods or the rendering of services and whether or not
earned by performance, and all rights now or hereafter existing in and to all
supporting obligations and in and to all security agreements, mortgages, Liens,
leases, letters of credit and other contracts securing or otherwise relating to
the foregoing property (any and all of such accounts, chattel paper,
instruments, deposit accounts, securities accounts, letter-of-credit rights,
general intangibles and other obligations, to the extent not referred to in
subsection (d) or (e) below, being the “Receivables,” and any and all such supporting obligations,
security agreements, mortgages, Liens, leases, letters of credit and other
contracts being the “Related Contracts”);

 

(d)                                 the following
(collectively, the “Security  Collateral”):

 

(i)                                     the Initial
Pledged Debt and the instruments, if any, evidencing the Initial Pledged Debt,
and all interest, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Initial Pledged Debt;

 

 

(ii)                                  all additional
indebtedness from time to time owed to such Grantor (such indebtedness,
together with the Initial Pledged Debt, being the “Pledged Debt”) and the instruments,
if any, evidencing such indebtedness, and all interest, cash, instruments and
other property from time to time received, receivable or otherwise distributed
in respect of or in exchange for any or all of such indebtedness;

 

(e)                                  Contracts;

 

(f)                                    the following
(collectively, the “Account Collateral”):

 

(i)                                     the Pledged
Deposit Accounts, the Pledged Securities Accounts, the Collateral Account and
all funds and financial assets from time to time credited thereto (including
without limitation, all Cash Equivalents), all interest, dividends, distributions,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such funds
and financial assets, and all certificates and instruments, if any, from time
to time representing or evidencing the Pledged Deposit Accounts, the Pledged
Securities Accounts or the Collateral Account;

 

(ii)                                  all promissory
notes, certificates of deposit, checks and other instruments from time to time
delivered to or otherwise possessed by the Collateral Agent for or on behalf of
such Grantor in substitution for or in addition to any or all of the then
existing Account Collateral; and

 

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

 

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

 

(i)                                     all patents,
patent applications, utility models and statutory invention registrations, all
inventions claimed or disclosed therein and all improvements thereto (“Patents”);

 

(ii)                                  all trademarks,
service marks, domain names, trade dress, logos, designs, slogans, trade names,
business names, corporate names and other source identifiers, whether
registered or unregistered (provided that no security interest shall be granted
in United States intent-to-use trademark applications to the extent that, and
solely during the period in which, the grant of a security interest therein
would impair the validity or enforceability of such intent-to-use trademark
applications under applicable federal law), together, in each case, with the
goodwill symbolized thereby (“Trademarks”);

 

(iii)                               all copyrights,
including, without limitation, copyrights in Computer Software (as hereinafter
defined), internet web sites and the content thereof, whether registered or
unregistered (“Copyrights”);

 

(iv)                              all computer
software, programs and databases (including, without limitation, source code,
object code and all related applications and data files), firmware and
documentation and materials relating thereto, together with any and all
maintenance rights, service rights, programming rights, hosting rights, test
rights, improvement rights, renewal rights and indemnification rights and any
substitutions, replacements, improvements, error corrections, updates and new
versions of any of the foregoing (“Computer Software”);

 

 

(v)                                 all
confidential and proprietary information, including, without limitation,
know-how, trade secrets, manufacturing and production processes and techniques,
inventions, research and development information, databases and data,
including, without limitation, technical data, financial, marketing and
business data, pricing and cost information, business and marketing plans and
customer and supplier lists and information (collectively, “Trade Secrets”),
and all other intellectual, industrial and intangible property of any type,
including, without limitation, industrial designs and mask works;

 

(vi)                              all
registrations and applications for registration for any of the foregoing,
including, without limitation, those registrations and applications for
registration set forth in Schedule IV hereto, together with all reissues,
divisions, continuations, continuations-in-part, extensions, renewals and
reexaminations thereof;

 

(vii)                           all tangible
embodiments of the foregoing, all rights in the foregoing provided by
international treaties or conventions, all rights corresponding thereto
throughout the world and all other rights of any kind whatsoever of such
Grantor accruing thereunder or pertaining thereto;

 

(viii)                        all agreements,
permits, consents, orders and franchises relating to the license, development,
use or disclosure of any of the foregoing to which such Grantor, now or
hereafter, is a party or a beneficiary (all of the foregoing collectively
referred to as “IP
Agreements”); and

 

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

 

(h)                                 the commercial
tort claims described in Schedule V hereto (together with any commercial tort
claims as to which the Grantors have complied with the requirements of Section 14,
the “Commercial Tort Claims Collateral”);

 

(i)                                     all books and
records (including, without limitation, customer lists, credit files, printouts
and other computer output materials and records) of such Grantor pertaining to
any of the Collateral; and

 

(j)                                     all proceeds
of, collateral for, income, royalties and other payments now or hereafter due
and payable with respect to, and supporting obligations relating to, any and
all of the Collateral (including, without limitation, proceeds, collateral and
supporting obligations that constitute property of the types described in
subsections (a) through (i) of this Section 1) and, to
the extent not otherwise included, all (A) payments under insurance
(whether or not the Collateral Agent is the loss payee thereof), or any
indemnity, warranty or guaranty, payable by reason of loss or damage to or
otherwise with respect to any of the foregoing Collateral, and (B) cash.

 

Notwithstanding anything
herein to the contrary, this Agreement shall not constitute a grant of security
interest in (and the term “Collateral” shall be deemed not to include) (A) any
lease, license, contract, property rights or agreement to which any Grantor is
a party or any of its rights or interests thereunder, to the extent that and
for so long as (but only for so long as), the grant of such security interest
shall (1) constitute or result in the abandonment, invalidation or
unenforceability under applicable law of any right, title or interest of any
Grantor therein or (2) constitute or result in a material breach or
termination pursuant to the terms of, or a material default, under, any such
lease, license, contract, property rights or agreement (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 (or any successor provision or 

 

 

provisions)); (B) any
Equipment owned by any Grantor that is subject to a purchase money Lien or a
Capitalized Lease (as defined in the Credit Agreement) permitted pursuant to
the Credit Agreement if the contract or other agreement in which such Lien is
granted (or in the documentation providing for such Capitalized Lease)
prohibits the creation of any other Lien on such Equipment, but only, in each
case, to the extent and for so long as (but only for so long as), the
Indebtedness (as defined in the Credit Agreement) secured by the applicable
Lien or the applicable Capitalized Lease has not been repaid in full or the
applicable prohibition has not otherwise been removed or terminated; provided that any proceeds, substitutions or replacements of any
property included in subclauses (A) and (B) above shall not be
excluded (unless such proceeds, substitutions or replacements would itself
constitute property excluded under subclause (A) or (B)); (C) any
Equity Interests or investment property in any subsidiary or joint venture; or (D) motor
vehicles and other assets subject to certificates of title and letter of credit
rights, and assets requiring perfection through control agreements (other than
deposit accounts and securities accounts (excluding any payroll, trust, petty
cash, zero balance and tax withholding accounts).

 

SECTION 2.  Security for Obligations.  This Agreement secures, in the case of each
Grantor, the payment of all Obligations of such Grantor now or hereafter
existing under the Loan Documents and all Cash Management Obligations and
Secured Hedge Obligations of such Grantor, whether direct or indirect, absolute
or contingent, and whether for principal, reimbursement obligations, interest,
fees, premiums, penalties, indemnifications, contract causes of action, costs,
expenses or otherwise (all such Obligations being the “Secured Obligations”). 
Without limiting the generality of the foregoing, this Agreement
secures, as to each Grantor, the payment of all amounts that constitute part of
the Secured Obligations and would be owed by such Grantor to any Secured Party
under the Loan Documents, but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving a Loan Party.

 

SECTION 3.  Grantors Remain Liable.  Anything herein to the contrary
notwithstanding, (a) each Grantor shall remain liable under the contracts
and agreements included in such Grantor’s Collateral to the extent set forth
therein to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (b) the exercise by the
Collateral Agent of any of the rights hereunder shall not release any Grantor
from any of its duties or obligations under the contracts and agreements
included in the Collateral and (c) no Secured Party shall have any obligation
or liability under the contracts and agreements included in the Collateral by
reason of this Agreement or any other Loan Document, nor shall any Secured
Party be obligated to perform any of the obligations or duties of any Grantor
thereunder or to take any action to collect or enforce any claim for payment
assigned hereunder.

 

SECTION 4.  Delivery and Control of Security
Collateral and Chattel Paper. 
(a)  All instruments representing or evidencing Security Collateral
in excess of $500,000 in principal amount individually shall be delivered to
and held by or on behalf of the Collateral Agent pursuant hereto and shall be
in suitable form for transfer by delivery, or shall be accompanied by duly
executed instruments of transfer or assignment in blank, all in form and
substance reasonably satisfactory to the Collateral Agent.  Upon the occurrence and during the
continuance of (x) an Event of Default, the Collateral Agent shall have
the right, at any time, to (i) transfer to or to register in the name of
the Collateral Agent or any of its nominees any or all of the Security
Collateral and (ii) exchange instruments representing or evidencing
Security Collateral for instruments of smaller or larger denominations; provided that the Collateral Agent provides written notice
to the applicable Grantor.  If any
Grantor has possession of any Chattel Paper representing monetary obligations
in excess of $500,000, such Chattel Paper shall be marked with the following
legend: “This writing and the obligations evidenced or secured thereby are
subject to the security interest of Merrill Lynch Capital, a division of
Merrill Lynch Business Financial Services Inc., as Collateral Agent, for the
benefit of the Collateral Agent and certain Lenders”.  If any Grantor has possession of any electronic
chattel paper representing monetary obligations in excess of $500,000, each
Grantor shall take all steps necessary to grant the Collateral Agent control of
all such 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)                                 Upon the
occurrence and during the continuance of an Event of Default, the Collateral
Agent shall have the right to transfer to or to register in the name of the
Collateral Agent or any of its nominees any or all of the Security Collateral.

 

(c)                                  Upon the
request of the Collateral Agent upon the occurrence and during the continuance
of an Event of Default, each Grantor will notify each issuer of Security
Collateral granted by it hereunder that such Security Collateral is subject to
the security interest granted hereunder.

 

SECTION 5.  Maintaining the Collateral Account;
Pledged Accounts.  So long as any
Loan or any other Obligation of any Loan Party under any Loan Document shall
remain unpaid (other than contingent indemnification obligations not yet
accrued and payable and which by their terms survive termination of the Loan
Document), any Letter of Credit shall be outstanding, or any Lender shall have
any Commitment (provided that Letters of Credit
shall be deemed no longer outstanding hereunder in accordance with the Cash
Collateralization or back-to-back letter of credit provisions set forth in Section 2.03(g) of
the Credit Agreement):

 

(a)                                  Each Grantor
will maintain the Pledged Accounts only with the financial institution acting
as Collateral Agent hereunder or with a bank or other institution (a “Pledged Account Bank”) that has agreed with
such Grantor and the Collateral Agent to comply, upon the occurrence and during
the continuance of an Event of Default, and upon a receipt of notice of
exclusive control, to comply with instructions originated by the Collateral
Agent directing the disposition of funds in such deposit account without the
further consent of such Grantor, such agreement to be in form and substance
reasonably satisfactory to the Collateral Agent (a “Control Agreement”); provided,
however, that this Section 5(a) shall not apply (i) to
deposit accounts to the extent the average daily balance, measurable over a
trailing 30 day period, on deposit in each such deposit account does not exceed
$50,000 at any time or operated solely as a payroll account, zero balance
account or tax withholding account, (ii) to securities accounts to the
extent that the average daily value, measurable over a 30 day trailing period,
of financial assets credited to each such securities account does not exceed
$50,000 at any time, and (iii) as expressly limited by clause (c) below.  Each Grantor agrees that at no time shall the
sum of (x) the average daily balance, measurable over a trailing 30 day
period, of amounts on deposit in all deposit accounts for which there is not in
effect a Control Agreement and (y) the average daily value, measurable
over a trailing 30 day period, of financial assets credited to all securities
accounts for which there is not in effect a Control Agreement, exceed in the
aggregate $250,000.

 

(b)                                 If an Event of
Default shall have occurred or be continuing, the Collateral Agent may, at any
time and without notice to, or consent from, the Grantor, transfer, or direct
the transfer of funds from the Pledged Accounts to satisfy the Grantor’s
Obligations under the Loan Documents.

 

(c)                                  Anything in
clause (a) above to the contrary notwithstanding, the Grantors shall not
be required to deliver fully-executed Control Agreements with respect to the
Pledged Securities Accounts until June 21, 2010.  At the request of the Grantors, such date may
be extended in the reasonable discretion of the Collateral Agent.

 

SECTION 6.  Investing of Amounts in the Collateral
Account.  During periods when the
Collateral Agent exercises sole control over the Collateral Account, the
Collateral Agent shall, subject to the provisions of Sections 5, 7
and 20:  (a) from time
to time, invest, or direct the applicable Pledged Account Bank to invest,
amounts received with respect to the Collateral Account in such Cash
Equivalents credited to the Collateral Account as the Borrower may select,
(b) from time to time, invest

 

 

interest paid on the Cash Equivalents referred to in
subsection (a) above and reinvest other proceeds of any such Cash
Equivalents that may mature or be sold, in each case in such Cash Equivalents
credited in the same manner, (c) deposit interest and proceeds that are
not invested or reinvested in Cash Equivalents as provided above in the
Collateral Account and (d) have the right to exchange, or direct the
applicable Pledged Account Bank to exchange, such Cash Equivalents for similar
Cash Equivalents of smaller or larger determinations, or for other Cash
Equivalents, credited to the Collateral Account.

 

SECTION 7.  Release of Amounts.  To the extent that (a) any proceeds were
deposited in a Pledged Account during the continuance of an Event of Default
and (b) there are remaining proceeds in such Pledged Account upon the
termination of such Event of Default, so long as no Event of Default shall have
occurred and be continuing, the Collateral Agent will pay and release, or
direct the applicable Pledged Account Bank to pay and release, to the
applicable Grantor or at its order or, at the request of such Grantor, to the
Collateral Agent to be applied to the Obligations of the Grantors under the
Loan Documents, such amount, if any, as is then on deposit in such Pledged
Account, in each case to the extent permitted to be released under the terms of
the Credit Agreement.

 

SECTION 8.  Representations and Warranties.  Each Grantor represents and warrants as
follows:

 

(a)                                  Such Grantor’s
exact legal name, as defined in Section 9-503(a) of the UCC, is
correctly set forth in Schedule VI hereto. 
Such Grantor’s location, chief executive office, type of organization,
jurisdiction of organization and organizational identification number, if any,
is set forth in Schedule VI hereto and is accurate in all material
respects.  Within the five years
preceding the date hereof, such Grantor has not changed its legal name,
location (as defined in the UCC), chief executive office, type of organization,
jurisdiction of organization or organizational identification number, if any,
from those set forth in Schedule VI hereto except as set forth in
Schedule VII hereto.

 

(b)                                 Such Grantor is
the legal and beneficial owner of, or with respect to Intellectual Property has
the right to use, the Collateral for which a security interest is granted or
purported to be granted by it under this Agreement free and clear of any Lien,
claim, option or right of others, except for the security interest created
under this Agreement or otherwise permitted under the Credit Agreement.  No effective financing statement or other
instrument similar in effect covering all or any part of the Collateral or
listing such Grantor as debtor is on file in any relevant recording office,
except such as may have been filed in favor of the Collateral Agent relating to
the Loan Documents or as otherwise permitted under the Credit Agreement.

 

(c)                                  All of the
Equipment and Inventory (other than Equipment and Inventory that is (i) located
at customer or supplier locations in the normal course of business or (ii) in
transit or out for repair or further process) of such Grantor are located at
the places specified therefor in Schedule VIII hereto or at another owned or
leased location as to which such Grantor has complied (or will comply within
the period set forth therein) with the requirements of Section 10
or otherwise has an aggregate book value of no more than $250,000.

 

(d)                                 None of the
Receivables or Agreement Collateral is evidenced by a promissory note or other instrument
in excess of (i) $250,000 individually and (ii) $1,000,000 in the
aggregate, that has not been delivered to the Collateral Agent.

 

(e)                                  If such Grantor
is an issuer of Security Collateral, such Grantor confirms that it has received
notice of the security interest granted hereunder.

 

(f)                                    The Pledged
Debt pledged by such Grantor hereunder has been duly authorized, authenticated
or issued and delivered, is the legal, valid and binding obligation of the
issuers thereof, is

 

 

not in default and, to the extent applicable,
is evidenced by one or more promissory notes (which promissory notes have been
delivered to the Collateral Agent).

 

(g)                                 The Initial
Pledged Debt constitutes all of the outstanding indebtedness in excess of (i) $100,000
individually and (ii) $500,000 in the aggregate, owed to such Grantor by
the issuers thereof evidenced by a note or other instrument and is outstanding
in the principal amount indicated on Schedule I hereto.

 

(h)                                 Such Grantor
has (i) no deposit accounts to the extent that the average daily balance,
measurable over a 30 day trailing period, on deposit in each such deposit
account is in excess of $50,000 other than the Collateral Account, or Pledged
Deposit Accounts listed on Schedule II hereto or operated solely as a payroll
account, zero balance account or tax withholding account and additional Pledged
Deposit Accounts as to which such Grantor has complied with the applicable
requirements of Section 5, and (ii) no securities accounts to
the extent that the average daily value, measurable over a 30 day trailing
period, of financial assets credited to each such securities account is in
excess of $50,000 other than the Pledged Securities Accounts listed on Schedule
II hereto and additional Pledged Securities Accounts as to which such Grantor
has complied with the applicable requirements of Section 5.

 

(i)                                     This Agreement
creates in favor of the Collateral Agent for the benefit of the Secured Parties
a valid first priority security interest, except as otherwise provided for
under the Loan Documents, in the Collateral granted by such Grantor, securing
the payment of the Secured Obligations. 
Each Grantor has authorized the Collateral Agent to file financing and
continuation statements under the UCC and record Intellectual Property Security
Agreements referred to in Section 13(c) with the U.S. Patent
and Trademark Office and the U.S. Copyright Office necessary to perfect a first
priority security interest in the respective Collateral, as applicable, subject
to certain exceptions contained herein and in the Credit Agreement.

 

(j)                                     No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required (other than as
otherwise provided for under the Credit Agreement or this Agreement) for (i) the
grant by such Grantor of the security interest granted hereunder or for the
execution, delivery or performance of this Agreement by such Grantor, (ii) the
perfection (to the extent required hereunder and excluding any security interest
in cash) or maintenance of the security interest created hereunder (including
the first priority nature of such security interest), except for the filing of
financing and continuation statements under the UCC, which, upon filing of the
financing statements delivered pursuant to Section 4.01(a)(iv)(B) of
the Credit Agreement, have been duly filed and are in full force and effect,
upon the recordation of the Intellectual Property Security Agreements referred
to in Section 13(d) with the U.S. Patent and Trademark Office
and the U.S. Copyright Office, any filings outside the United States required
to perfect a security interest in Intellectual Property Collateral, and the
actions described in Section 4 with respect to the Security
Collateral, which actions, upon filing of the Intellectual Property Security
Agreement executed by the Loan Parties on the Closing Date, have been taken and
are in full force and effect, or (iii) the exercise by the Collateral
Agent of its voting or other rights provided for in this Agreement or the
remedies in respect of the Collateral pursuant to this Agreement, except as may
be required in connection with the disposition of any portion of the Security
Collateral by laws affecting the offering and sale of securities generally.

 

(k)                                  As to itself
and its Intellectual Property Collateral:

 

(i)                                     Except as could
not be reasonably expected to have a Material Adverse Effect, the operation of
such Grantor’s business as currently conducted and the use of the Material
Intellectual Property Collateral (as defined below) in connection therewith
does not infringe,

 

 

misappropriate,
dilute, misuse or otherwise violate the intellectual property rights of any
third party.

 

(ii)                                  Such Grantor is
the exclusive owner or joint owner of all right, title and interest in and to
the Material Intellectual Property Collateral, or is entitled to use the
Material Intellectual Property Collateral subject only to the terms of the
related IP Agreements.

 

(iii)                               The
Intellectual Property Collateral set forth on Schedule IV hereto includes all
patents, patent applications, domain names, trademark registrations and
applications, copyright registrations and applications that are owned by and
material to the business of such Grantor in each case which are reasonably necessary
to the operation of such Grantor’s respective business.

 

(iv)                              The Material
Intellectual Property Collateral owned by such Grantor is subsisting and has
not been adjudged invalid or unenforceable in whole or part, and is valid and
enforceable.

 

(v)                                 Except as set
forth on Schedule IV hereto, such Grantor has not granted any material license,
release, covenant not to sue, non-assertion assurance, or other material right
to any Person with respect to any part of the Material Intellectual Property
Collateral (other than (A) licenses granted to such Grantor’s customers in
the ordinary course of business), the effect of which would create a material
impairment of such Grantor’s use of such Material Intellectual Property
Collateral as intended in the operation of its respective business. The
consummation of the transactions contemplated by the Transaction Documents will
not result in the termination or impairment of any of the Material Intellectual
Property Collateral.

 

(vi)                              With respect to
each material IP Agreement, except as could not be reasonably expected to have
a Material Adverse Effect:  (A) such
IP Agreement is valid and binding and in full force and effect with respect to
such Grantor, and to the knowledge of any Specified Officer of such Grantor, with
respect to any other party thereto, and represents the entire agreement between
the respective parties thereto with respect to the subject matter thereof; (B) such
IP Agreement will not cease to be valid and binding and in full force and
effect on terms identical to those currently in effect as a result of the
rights and interest granted herein, nor will the grant of such rights and
interest constitute a material breach or default under such IP Agreement or
otherwise give any party thereto a right to terminate such IP Agreement; (C) such
Grantor has not received any written notice of termination or cancellation
under such IP Agreement; (D) such Grantor has not received any notice of a
breach or default under such IP Agreement, which breach or default has not been
cured; and (E) neither such Grantor nor, to the knowledge of any Specified
Officer of such Grantor, is any other party to such IP Agreement is in breach
or default thereof in any material respect, and, to the knowledge of any
Specified Officer of such Grantor no event has occurred that, with notice or
lapse of time or both, would constitute such a breach or default or permit
termination, modification or acceleration under such IP Agreement.

 

(l)                                     Such Grantor
has no commercial tort claims in excess of $2,500,000 other than those listed
in Schedule V hereto and additional commercial tort claims as to which such
Grantor has complied with the requirements of Section 14.

 

SECTION 9.  Further Assurances.  (a)  Each Grantor agrees that from time
to time, at the expense of such Grantor, such Grantor will promptly execute and
deliver, or otherwise authenticate, all further instruments and documents, and
take all further commercially reasonable action that is necessary, or that the
Collateral Agent may reasonably request, in order to perfect and protect any
pledge or security interest granted or purported to be granted by such Grantor
hereunder or to enable the Collateral Agent to exercise and enforce its rights
and remedies hereunder with respect to any Collateral of such Grantor.  Each

 

 

Grantor further agrees that it shall, at the expense
of such Grantor, take any and all commercially reasonable actions necessary to
defend title to the Collateral against all Persons and to defend the security
interest created hereunder and the priority thereof against any Lien prohibited
under the Credit Agreement.

 

(b)                                 Each Grantor
hereby authorizes the Collateral Agent to file one or more financing or
continuation statements, and amendments thereto, including, without limitation,
one or more financing statements indicating that such financing statements
cover all assets or all personal property (or words of similar effect) of such
Grantor, regardless of whether any particular asset described in such financing
statements falls within the scope of the UCC or the granting clause of this
Agreement.  A photocopy or other
reproduction of this Agreement shall be sufficient as a financing statement
where permitted by law.

 

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

 

(d)                                 Notwithstanding
anything to the contrary in this Agreement or any other Collateral Document,
this Agreement shall be subject to the provisions of Section 6.12
of the Credit Agreement.

 

SECTION 10.  As to Equipment and Inventory.  Each Grantor will keep its Equipment (other
than Equipment that is located at a customer or supplier location or is
intransit in the ordinary course of business or sold in accordance with the
Credit Agreement) and Inventory (other than Inventory on consignment or sold in
the ordinary course of business) at the places therefor specified in Section 8(c) or
at such other places identified by UHS concurrently with the delivery of the
financial statements pursuant to Section 6.01(b) of the Credit
Agreement.

 

(a)                                  Each Grantor
will cause its Equipment to be maintained and preserved in accordance with Section 6.06
of the Credit Agreement.

 

(b)                                 Each Grantor
will pay promptly when due all property and other material taxes, assessments
and governmental charges or levies imposed upon, and all claims (including,
without limitation, claims for labor, materials and supplies) against, its
Equipment and Inventory, except to the extent payment thereof is not required
by Section 6.04 of the Credit Agreement.

 

(c)                                  Each Grantor,
at its own expense, shall deliver to the Collateral Agent the results of each
physical verification, if any, which such Grantor may in its discretion have
made, or caused any other Person to make on its behalf, of all or a portion of
its Inventory.

 

SECTION 11.  Insurance.  Each Grantor will, at its
own expense, maintain insurance as required by the terms of the Credit
Agreement.  Each casualty, property and
liability (excluding business interruption) policy shall in addition
(a) name the Collateral Agent as loss payee or additional insured party, as
applicable, thereunder (without any representation or warranty by or obligation
upon the Collateral Agent) or other language satisfactory to the Collateral
Agent, (b) provide that there shall be no recourse against the Collateral
Agent for payment of premiums or other amounts with respect thereto and
(c) provide that at least 10 days’ prior written notice of cancellation or
of lapse shall be given to the Collateral Agent by the insurer or other
language satisfactory to the Collateral Agent. 
Each Grantor will, if so reasonably requested by the Collateral Agent,
deliver to the Collateral Agent original or duplicate policies of such
insurance.  Reimbursement under any
liability insurance maintained by any Grantor

 

 

pursuant to this Section 11 may
be paid directly to the Person who shall have incurred liability covered by
such insurance.

 

SECTION 12.  Post-Closing Changes.  Each Grantor agrees to promptly notify the
Collateral Agent in writing of any change to its legal name, type of
organization, jurisdiction of organization or organizational identification
number (if any) and shall take all action reasonably required by the Collateral
Agent for the purposes of perfecting or protecting the security interest
granted by this Agreement.  Each Grantor
will hold and preserve its records relating to the Collateral, including,
without limitation and the Related Contracts, and will permit representatives
of the Collateral Agent at any reasonable time during normal business hours to
inspect and make abstracts from such records and other documents, upon
reasonable advance notice to such Grantor; provided that,
excluding any such visits and inspections during the continuance of an Event of
Default, only the Collateral Agent may exercise rights under this Section 12
and the Collateral Agent shall not exercise such rights more often than one
(1) time during any calendar year absent the existence of an Event of
Default; provided further that, upon the
occurrence and during the continuance of an Event of Default, the Collateral
Agent or any Lender (or any respective representative or independent
contractor) may do any of the foregoing at the reasonable expense of such
Grantor at any time during normal business hours and upon reasonable advance
notice. If any Grantor does not have an organizational identification number
and later obtains one, within thirty (30) days, it will notify the Collateral
Agent of such organizational identification number.

 

SECTION 13.  As to Intellectual Property Collateral.  (a)  With respect to each item of its
Intellectual Property Collateral that is material to the business of any
Grantor (any such item of Intellectual Property Collateral being “Material Intellectual Property Collateral”), except to the
extent failure to act could not reasonably be expected to have a Material
Adverse Effect, with respect to each item of Material Intellectual Property
Collateral owned by such Grantor, each Grantor agrees to take, at its expense,
commercially reasonable actions that it determines are necessary in accordance
with the exercise of its business discretion, including, without limitation, in
the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other
governmental authority, to (i) maintain the validity and enforceability of
such Material Intellectual Property Collateral and maintain such Material
Intellectual Property Collateral in full force and effect, and (ii) pursue
the registration and maintenance of each patent, trademark, or copyright
registration or application, now or hereafter included in such Material
Intellectual Property Collateral of such Grantor, including, without
limitation, the payment of required fees and taxes, the filing of responses to
office actions issued by the U.S. Patent and Trademark Office, the U.S.
Copyright Office or other governmental authorities, the filing of applications
for renewal or extension, the filing of affidavits under Sections 8 and 15 of
the U.S. Trademark Act, the filing of divisional, continuation,
continuation-in-part, reissue and renewal applications or extensions, the
payment of maintenance fees and the participation in interference,
reexamination, opposition, cancellation, infringement and misappropriation
proceedings.

 

(b)                                 Except as could
not be reasonably expected to have a Material Adverse Effect, no Grantor shall
do or permit any act or knowingly omit to do any act whereby any of its
Material Intellectual Property Collateral may lapse, be terminated or become
invalid or unenforceable or placed in the public domain (or, in case of a trade
secret, lose its competitive value) other than the expiration of patents at the
end of their statutory term.

 

(c)                                  Except when
failure to do so could not reasonably be expected to cause a Material Adverse
Effect, each Grantor shall take commercially reasonable actions that it
determines are necessary in accordance with the exercise of its business
discretion to preserve and protect each item of its Material Intellectual
Property Collateral.

 

 

(d)           With
respect to its Material Intellectual Property, on the Closing Date or such
later date as provided under the terms of the Credit Agreement or which the
Collateral Agent consents to in writing, each Grantor agrees to execute and
deliver to the Collateral Agent, with respect to all Material Intellectual
Property that is registered or with respect to which registration is pending
(i) an agreement, in substantially the form set forth in Exhibit B
hereto or otherwise in form and substance reasonably satisfactory to the
Collateral Agent (a “Copyright Security
Agreement”), (ii) an agreement, in substantially the form set
forth in Exhibit C hereto or otherwise in form and substance reasonably
satisfactory to the Collateral Agent (a “Patent
Security Agreement”) and (iii) an agreement, in substantially
the form set forth in Exhibit D hereto or otherwise in form and substance
reasonably satisfactory to the Collateral Agent (a “Trademark Security Agreement” and, together with each
Copyright Security Agreement and each Patent Security Agreement, the “Intellectual Property Security Agreements”),
in each case for recording the security interest granted hereunder to the
Collateral Agent in such Intellectual Property Collateral with the U.S. Patent
and Trademark Office or the U.S. Copyright Office, as applicable.

 

(e)           Each
Grantor agrees that should it obtain an ownership interest in any item of the
type set forth in Section 1(g) that is not on the date hereof
a part of the Intellectual Property Collateral (“After-Acquired Intellectual Property”) (i) the provisions
of this Agreement shall automatically apply thereto, and (ii) any such
After-Acquired Material Intellectual Property and, in the case of trademarks,
the goodwill symbolized thereby, shall automatically become part of the
Intellectual Property Collateral subject to the terms and conditions of this
Agreement with respect thereto.  After
the end of each fiscal quarter of the Borrower, as set forth in Section 6.14(b) of
the Credit Agreement, each Grantor shall provide written notice to the
Collateral Agent identifying the After-Acquired Intellectual Property
consisting of material patents, patent applications, trademark registrations,
trademark applications, copyright registrations, and copyright applications acquired
during such fiscal quarter, and such Grantor shall execute and deliver to the
Collateral Agent with such written notice, or otherwise authenticate, an
agreement in form and substance reasonably satisfactory to the Collateral Agent
(an “IP Security Agreement Supplement”)
covering such After-Acquired Intellectual Property, which IP Security Agreement
Supplement shall be recorded with the U.S. Patent and Trademark Office, the
U.S. Copyright Office and any other governmental authorities necessary to
perfect (subject to the exceptions contained herein and in the Credit
Agreement) the security interest hereunder in such After-Acquired Intellectual
Property in the United States.

 

SECTION 14. 
Commercial Tort Claims. 
Each Grantor will promptly after the end of each fiscal quarter give
notice to the Collateral Agent of any commercial tort claim individually in
excess of $2,500,000 that may arise after the date hereof and will immediately
execute or otherwise authenticate a supplement to this Agreement, and otherwise
take all necessary action, to subject such commercial tort claim to the first
priority security interest created under this Agreement.

 

SECTION 15. 
Transfers and Other Liens. 
(a)  Each Grantor agrees that it will not (i) sell, assign or
otherwise dispose of, or grant any option with respect to, any of the
Collateral, other than sales, assignments and other dispositions of Collateral
and options relating to Collateral permitted under the terms of the Credit
Agreement or (ii) create or suffer to exist any Lien upon or with respect
to any of the Collateral of such Grantor except for the pledge, assignment and
security interest created under this Agreement and Liens permitted under the
Loan Documents.

 

SECTION 16. 
Collateral Agent Appointed Attorney in Fact.  Each Grantor hereby irrevocably appoints the
Collateral Agent such Grantor’s attorney in fact, with full authority in the
place and stead of such Grantor and in the name of such Grantor or otherwise,
from time to time, upon the occurrence and during the continuance of an Event
of Default, in the Collateral Agent’s reasonable discretion, to take any 

 

 

action and to execute any instrument that the Collateral Agent may deem
necessary or advisable to effect the provisions of this Agreement, including, without
limitation:

 

(a)           to obtain and adjust insurance
required to be paid to the Collateral Agent pursuant to Section 11,

 

(b)           to ask for, demand, collect, sue for,
recover, compromise, receive and give acquittance and receipts for moneys due
and to become due under or in respect of any of the Collateral,

 

(c)           to receive, indorse and collect any
drafts or other instruments, documents and chattel paper, in connection with
subsection (a) or (b) above, and

 

(d)           to file any claims or take any action
or institute any proceedings that the Collateral Agent may deem necessary or
desirable for the collection of any of the Collateral or the rights of the
Collateral Agent with respect to any of the Collateral.

 

SECTION 17. 
Collateral Agent May Perform.  If any Grantor fails to perform any agreement
contained herein, the Collateral Agent may, but without any obligation to do
so, with notice (or upon the occurrence and during the continuance of an Event
of Default, without notice), itself perform, or cause performance of, such
agreement, and the expenses of the Collateral Agent incurred in connection
therewith shall be payable by such Grantor under Section 21.

 

SECTION 18. 
The Collateral Agent’s Duties. 
The powers conferred on the Collateral Agent hereunder are solely to
protect the Secured Parties’ interest in the Collateral and shall not impose
any duty upon it to exercise any such powers. 
Except for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Collateral Agent
shall have no duty (other than as imposed by law, this Agreement or any other
Loan Document) as to any Collateral, as to ascertaining or taking action with
respect to calls, conversions, exchanges, maturities, tenders or other matters relative
to any Collateral, whether or not any Secured Party has or is deemed to have
knowledge of such matters, or as to the taking of any necessary steps to
preserve rights against any parties or any other rights pertaining to any
Collateral.  The Collateral Agent shall
be deemed to have exercised reasonable care in the custody and preservation of
any Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which it accords its own property or as required by
law and will not be liable or responsible for any loss or damage to any
Collateral, or for any diminution in the value thereof, by reason of any act or
omission of any sub-agent or bailee selected by the Collateral Agent in good
faith, except to the extent that such liability arises from the Collateral
Agent’s gross negligence, bad faith or willful misconduct.

 

SECTION 19. 
As to Receivables and Security Collateral.  The Collateral Agent may at any time in the
Collateral Agent’s own name, in the name of a nominee of the Collateral Agent
or in the name of any Grantor communicate (by mail, telephone, facsimile or
otherwise) with Account Debtors and obligors in respect of any Security
Collateral to verify with such Persons, to the Collateral Agent’s satisfaction,
the existence, the amount, the terms of, and any other matter relating to
Receivables, payment intangibles, Security Collateral or Chattel Paper.

 

SECTION 20. 
Remedies.  Subject to Section 8.02
of the Credit Agreement, if any Event of Default shall have occurred and be
continuing:

 

(a)           The
Collateral Agent may exercise in respect of the Collateral, in addition to
other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of a 

 

 

secured party upon default under the UCC (whether or not the UCC
applies to the affected Collateral) and also may:  (i) require each Grantor to, and each
Grantor hereby agrees that it will at its expense and upon request of the
Collateral Agent forthwith, assemble all or part of the Collateral as directed
by the Collateral Agent and make it available to the Collateral Agent at a
place and time to be designated by the Collateral Agent that is reasonably
convenient to both parties; (ii) without notice except as specified below,
sell the Collateral or any part thereof in one or more parcels at public or
private sale, at any of the Collateral Agent’s offices or elsewhere, for cash,
on credit or for future delivery, and upon such other terms as the Collateral
Agent may deem commercially reasonable; (iii) occupy any premises owned
or, to the extent lawful and permitted, leased by any of the Grantors where the
Collateral or any part thereof is assembled or located for a reasonable period
in order to effectuate its rights and remedies hereunder or under law, without
obligation to such Grantor in respect of such occupation; and
(iv) exercise any and all rights and remedies of any of the Grantors under
or in connection with the Collateral, or otherwise in respect of the
Collateral, including, without limitation, (A) any and all rights of such
Grantor to demand or otherwise require payment of any amount under, or
performance of any provision of, the Receivables, the Related Contracts and the
other Collateral, (B) withdraw, or cause or direct the withdrawal, of all
funds with respect to the Account Collateral and (C) exercise all other
rights and remedies with respect to the Receivables, the Related Contracts and
the other Collateral, including, without limitation, those set forth in
Section 9-607 of the UCC.  Each
Grantor agrees that, to the extent notice of sale shall be required by law, at
least ten days’ notice to such Grantor of the time and place of any public sale
or the time after which any private sale is to be made shall constitute
reasonable notification.  The Collateral
Agent shall not be obligated to make any sale of Collateral regardless of
notice of sale having been given.  The
Collateral Agent may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned.

 

(b)           Any
cash held by or on behalf of the Collateral Agent and all cash proceeds
received by or on behalf of the Collateral Agent in respect of any sale of,
collection from, or other realization upon all or any part of the Collateral
may, in the discretion of the Collateral Agent, be held by the Collateral Agent
as collateral for, or at any time thereafter applied (after payment of any
amounts payable to the Collateral Agent pursuant to Section 21) in
whole or in part by the Collateral Agent for the ratable benefit of the Secured
Parties against, all or any part of the Secured Obligations, as set forth in Section 8.03
of the Credit Agreement.

 

(c)           [Intentionally
omitted].

 

(d)           The
Collateral Agent may, without notice to any Grantor except as required by law
and at any time or from time to time, charge, set off and otherwise apply all
or any part of the Secured Obligations against any funds held with respect to
the Account Collateral or in any other deposit account or securities account.

 

(e)           The
Collateral Agent may send to each bank party to any Control Agreement a “Notice
of Exclusive Control” (or similar term) as defined in and under such Agreement.

 

(f)            In
the event of any sale or other disposition of any of the Intellectual Property
Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to
such sale or other disposition shall be included therein, and such Grantor
shall supply to the Collateral Agent or its designee such Grantor’s know-how
and expertise, and documents and things relating to any Intellectual Property
Collateral subject to such sale or other disposition, and such Grantor’s
customer lists and other records and documents relating to such Intellectual
Property Collateral and to the manufacture, distribution, advertising and sale
of products and services of such Grantor.

 

 

(g)           If
the Collateral Agent shall determine to exercise its right to sell all or any
of the Security Collateral of any Grantor pursuant to this Section 20,
each Grantor agrees that, upon request of the Collateral Agent, such Grantor
will, at its own reasonable expense, do or cause to be done all such other
commercially reasonable acts and things as may be reasonably necessary to make
such sale of such Security Collateral or any part thereof valid and binding and
in compliance with applicable law.

 

(h)           Notwithstanding
anything to the contrary in this Agreement, the exercise of remedies by the
Collateral Agent under this Agreement upon the occurrence and during the
continuance of an Event of Default shall be subject to Section 8.02
of the Credit Agreement.

 

SECTION 21. 
Indemnity and Expenses. 
(a)  Each Grantor agrees to indemnify, defend and save and hold
harmless each Secured Party and each Representative Party (as defined below) of
any of the foregoing Persons (each, an “Indemnified Party”) from and against,
and shall pay on demand, any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of
counsel (which shall be limited to one (1) counsel to the Collateral Agent
and the Lenders (exclusive of one local counsel to the Collateral Agent and the
Lenders in each appropriate jurisdiction), unless (x) the interests of the
Collateral Agent and the Lenders are sufficiently divergent, in which case one
(1) additional counsel may be appointed and (y) if the interests of
any Lender or group of Lenders (other than all of the Lenders) are distinctly
or disproportionately affected, one (1) additional counsel for such Lender
or group of Lenders))) that may be incurred by or asserted or awarded against
any Indemnified Party, in each case arising out of or in connection with or
resulting from this Agreement (including, without limitation, enforcement of
this Agreement), provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses (x) are determined by a
court of competent jurisdiction by final judgment to have resulted from the
gross negligence, bad faith or willful misconduct of such Indemnitee or such
Indemnitee’s Representative Parties or (y) result from a claim brought by
any Grantor against an Indemnitee for breach of such Indemnitee’s obligations
under this Agreement, if such Grantor has obtained a final judgment in its
favor on such claim as determined by a court of competent jurisdiction.  For purposes of this Section 21(a),
“Representative Parties” means, as to
any Person, (i) such Person’s officers, directors and employees and
(ii) such Person’s Affiliates, agents, advisers and other representatives,
in each case to the extent acting at the direction of such Person.

 

(b)           Each
Grantor will within 30 days of written demand pay to the Collateral Agent the
amount of any and all reasonable expenses, including, without limitation, the
reasonable fees and reasonable out-of-pocket expenses of its counsel and of any
experts and agents, that the Collateral Agent may incur in connection with
(i) the custody, preservation, use or operation of, or the sale of,
collection from or other realization upon, any of the Collateral of such
Grantor, (ii) the exercise or enforcement of any of the rights of the Collateral
Agent or the other Secured Parties hereunder or (iii) the failure by such
Grantor to perform or observe any of the provisions hereof.

 

SECTION 22. 
Amendments; Waivers; Additional Grantors; Etc.  (a)  No amendment or waiver of any
provision of this Agreement, and no consent to any departure by any Grantor
herefrom, shall in any event be effective unless the same shall be in writing
and signed by the Collateral Agent and the Grantors, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.  No failure on
the part of the Collateral Agent or any other Secured Party to exercise, and no
delay in exercising any right hereunder, shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right.

 

(b)           Upon
the execution and delivery by any Person of a security agreement supplement in
substantially the form of Exhibit E hereto (each a “Security Agreement Supplement”), 

 

 

such Person shall be referred to as an “Additional Grantor” and shall be and become a Grantor
hereunder, and each reference in this Agreement and the other Loan Documents to
“Grantor” shall also mean and be a reference to such Additional Grantor, each
reference in this Agreement and the other Loan Documents to the “Collateral” shall also mean and be a
reference to the Collateral granted by such Additional Grantor and each
reference in this Agreement to a Schedule shall also mean and be a reference to
the schedules attached to such Security Agreement Supplement.

 

SECTION 23. 
Notices, Etc.  All notices
and other communications provided for hereunder shall be either (a) in
writing (including telegraphic, telecopier or telex communication) and mailed,
telegraphed, telecopied, telexed or otherwise delivered or (b) by
electronic mail (if electronic mail addresses are designated as provided below)
confirmed immediately in writing, in the case of the Borrower or the Collateral
Agent (as provided for the Administrative Agent thereunder), addressed to it at
its address specified in the Credit Agreement and, in the case of each Grantor
other than the Borrower, addressed to it at its address set forth opposite such
Grantor’s name on the signature pages hereto or on the signature
page to the Security Agreement Supplement pursuant to which it became a
party hereto; or, as to any party, at such other address as shall be designated
by such party in a written notice to the other parties.  All such notices and other communications
shall be deemed to be given or made upon the earlier to occur of
(a) actual receipt by the relevant party hereto and (b) (i) if
delivered by hand or by courier, when signed for by or on behalf of the relevant
party hereto; (ii) if delivered by mail, four (4) Business Days after
deposit in the mails, postage prepaid; (iii) if delivered by facsimile,
when sent and receipt has been confirmed; and (iv) if delivered by
electronic mail, when delivered.  Delivery by telecopier of “pdf” of an
executed counterpart of any amendment or waiver of any provision of this
Agreement or of any Security Agreement Supplement or Schedule hereto shall be
effective as delivery of an original executed counterpart thereof.

 

SECTION 24. 
Continuing Security Interest; Assignments under the Credit Agreement.  This Agreement shall create a continuing
security interest in the Collateral and shall (a) remain in full force and
effect until the latest of (i) the payment in full in cash of the Secured
Obligations (other than (x) obligations with respect to Secured Hedge
Agreements, (y) Cash Management Obligations not yet due and payable and
(z) the contingent obligations not yet accrued and payable under the Loan
Documents), (ii) the Maturity Date for the Revolving Credit Facility,
(iii) the Maturity Date for the Term Loan Facility and (iv) the
termination or expiration of all Letters of Credit, (b) be binding upon
each Grantor, its permitted successors and assigns and (c) inure, together
with the rights and remedies of the Collateral Agent hereunder, to the benefit
of the Secured Parties and their respective permitted successors, transferees
and assigns.  Without limiting the
generality of the foregoing subsection (c), any Lender may assign or otherwise
transfer all or any portion of its rights and obligations under the Credit
Agreement (including, without limitation, all or any portion of its
Commitments, the Loans owing to it and the Note or Notes, if any, held by it)
to any other Person, and such other Person shall thereupon become vested with
all the benefits in respect thereof granted to such Lender herein or otherwise,
in each case as provided in Section 10.07 of the Credit Agreement.

 

SECTION 25.  Release;
Termination.  (a)  Upon any
sale, lease, transfer or other disposition of any item of Collateral of any
Grantor in accordance with the terms of the Loan Documents (other than sales of
Inventory in the ordinary course of business), the Collateral Agent will, at
such Grantor’s expense, execute and deliver to such Grantor such documents as
such Grantor shall reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted hereby; provided, however,
that (i) such Grantor shall have delivered to the Collateral Agent a
written request for release describing the item of Collateral and the terms of
the sale, lease, 

 

 

transfer or other disposition in reasonable detail, together with a
form of release for execution by the Collateral Agent and a certificate of such
Grantor to the effect that the transaction is in compliance with the Loan
Documents and as to such other matters as the Collateral Agent may reasonably
request, and (ii) the proceeds of any such sale, lease, transfer or other
disposition required to be applied, or any payment to be made in connection
therewith, in accordance with Section 2.05(b) of the Credit
Agreement shall, to the extent so required, be paid or made to, or in
accordance with the instructions of, the Collateral Agent when and as required
under Section 2.05(b) of the Credit Agreement.

 

(b)           Upon
the latest of (i) the payment in full in cash of the Secured Obligations
(other than (x) obligations with respect to Secured Hedge Agreements,
(y) Cash Management Obligations not yet due and payable and
(z) contingent indemnification obligations not yet accrued and payable
under the Loan Documents), (ii) the Maturity Date for the Revolving Credit
Facility, (iii) the Maturity Date for the Term Loan Facility and
(iv) the cash collateralization, back-stop (on terms reasonably
satisfactory to the Collateral Agent), termination or expiration of all Letters
of Credit, the pledge and security interest granted hereby shall terminate and
all rights to the Collateral shall revert to the applicable Grantor.  Upon any such termination, the Collateral
Agent will, at the applicable Grantor’s expense, execute and deliver to such
Grantor such documents as such Grantor shall reasonably request to evidence
such termination.

 

SECTION 26. 
Execution in Counterparts. 
This Agreement may be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this Agreement by telecopier shall be effective as
delivery of an original executed counterpart of this Agreement.

 

SECTION 27. 
Governing Law.  This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

 

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

 

 

	
   

  	
  UHS
  HOLDCO, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rex T. Clevenger

  
	
   

  	
   

  	
  Name: Rex T. Clevenger

  
	
   

  	
   

  	
  Title: CFO &
  Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Address
  for Notices:

  
	
   

  	
   

  
	
   

  	
   

  

 

 

	
   

  	
  UNIVERSAL HOSPITAL SERVICES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rex T. Clevenger

  
	
   

  	
   

  	
  Name: Rex T. Clevenger

  
	
   

  	
   

  	
  Title: CFO &
  Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

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