Document:

Exhibit 4.37

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT
dated as of August 14, 2009 (this “Security Agreement”), among
CLEAN HARBORS, INC., a Massachusetts corporation (the “Company”), each of the subsidiaries of the Company listed on Annex A
hereto or that becomes a party hereto pursuant to Section 8.13 hereof
(each such subsidiary being a “Subsidiary Grantor” and, collectively,
the “Subsidiary Grantors”; the Subsidiary Grantors and the Company are
referred to collectively as the “Grantors”),
and U.S. BANK NATIONAL ASSOCIATION, as Notes Collateral Agent (the “Collateral Agent”),
pursuant to an indenture, dated as of August 14, 2009 (as amended,
restated, supplemented or modified from time to time, the “Indenture”)
among the Company, each Guarantor (as defined in the Indenture), the Collateral
Agent and U.S. Bank National Association, as trustee (the “Trustee”) on
behalf of the holders of the Notes (as defined below) (the “Holders”).

 

W I T N E S S E T H:

 

WHEREAS,
pursuant to the Indenture, the Company has issued, or will issue $300,000,000
principal amount of 7.625% senior secured notes due 2016 (together with any
other Securities (as such term is defined in the Indenture), including Exchange
Notes issued pursuant to the Indenture, the “Notes”) upon the terms and
subject to the conditions set forth therein;

 

WHEREAS,
pursuant to the Indenture, each Guarantor party thereto has unconditionally and
irrevocably guaranteed, as primary obligor and not merely as surety, to the Trustee,
for the benefit of the Secured Parties the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations;

 

WHEREAS,
the Trustee has been appointed to serve as Notes Collateral Agent under the
Indenture and, in such capacity, to enter into this Security Agreement;

 

WHEREAS,
following the date hereof, if not prohibited by the Indenture, the Grantors may
incur Other Pari Passu Lien Obligations which are secured equally and ratably
with the Grantors’ obligations in respect of the Notes in accordance with Section 8.17
of this Security Agreement;

 

WHEREAS,
each Grantor will receive substantial benefits from the execution, delivery and
performance of the obligations under the Indenture, the Notes, the other Note
Documents and any Other Pari Passu Lien Agreement and each is, therefore,
willing to enter into this Security Agreement;

 

WHEREAS,
this Security Agreement is made by the Grantors in favor of the Collateral
Agent for the benefit of the Secured Parties to secure the payment and
performance in full when due of the Obligations;

 

WHEREAS,
each Subsidiary Grantor is a Domestic Subsidiary of the Company; and

 

 

NOW,
THEREFORE, in consideration of the premises and to induce the Trustee and the
Collateral Agent to enter into the Indenture and induce the Holders to purchase
the Notes, the Grantors hereby agree with the Collateral Agent, for the benefit
of the Secured Parties, as follows:

 

1.             Defined Terms.

 

(a)           Unless
otherwise defined herein, terms defined in the Indenture and used herein shall
have the meanings given to them in the Indenture and all terms defined in the
Uniform Commercial Code from time to time in effect in the State of New York
(the “NY UCC”) and not defined herein shall have the meanings specified
therein.

 

(b)           The
following terms shall have the following meanings:

 

“Accounts”
shall mean all “accounts” as such term is defined in Article 9 of the NY
UCC.

 

“Authorized
Representative” shall mean any duly authorized representative of any holder
of Other Pari Passu Lien Obligations under any Other Pari Passu Lien Agreement
designated as “Authorized Representative” for such holder in an Other Pari
Passu Lien Secured Party Consent delivered to the Collateral Agent.

 

“Chattel
Paper” shall mean all “chattel paper” as such term is defined in Article 9
of the NY UCC.

 

“Collateral” shall have the meaning assigned to
such term in Section 2.

 

“Collateral
Account” shall mean any collateral account established by the Collateral
Agent as provided in subsection 5.1.

 

“Collateral
Access Agreement” means any landlord waiver or other agreement, in form and
substance reasonably satisfactory to the Collateral Agent, between the
Collateral Agent and any third party (including any bailee, consignee, customs
broker, or other similar Person) in possession of any Collateral or any
landlord of any Loan Party for any real property where any Collateral is
located, which agreement or letter shall provide access rights, contain a
waiver or subordination of all Liens or claims that the landlord, bailee or
consignee may assert against the Collateral at that location, as such landlord
waiver or other agreement may be amended, restated, or otherwise modified from
time to time.

 

“Collateral
Agent” shall have the meaning assigned to such term in the recitals hereto.

 

“Collateral
Deposit Account” shall have the meaning assigned to such term in Section 5.2.

 

“Control
Agreement” means with respect any Deposit Account or Securities Account
maintained by any Grantor, an agreement, establishing the Collateral Agent’s
Control with 

 

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respect to such Deposit Account or Securities Account,
among such Grantor, an institution maintaining such Grantor’s account, and the
Collateral Agent.

 

“Copyright
License” means any written agreement, now or hereafter in effect, granting
any right to any third party under any copyright now owned or hereafter
acquired by any Grantor (including all Copyrights) or that any Grantor
otherwise has the right to license, or granting any right to any Grantor under
any copyright now owned or hereafter acquired by any third party, and all
rights of any Grantor under any such agreement, including those exclusive
agreements listed on Schedule 1.

 

“copyrights” means, with respect to any Person,
all of the following now owned or hereafter acquired by such Person: (i) all
copyright rights in any work subject to the copyright laws of the United States
or any other country or jurisdiction, whether as author, assignee, transferee
or otherwise, whether registered or unregistered, whether statutory or common
law and whether published or unpublished and (ii) all registrations and
applications for registration of any such copyright in the United States or any
other country, including registrations and pending applications for
registration in the United States Copyright Office.

 

 “Copyrights”
means all copyrights now owned or hereafter acquired by any Grantor, including
those listed on Schedule 2.

 

“Deposit
Accounts” shall mean all “deposit accounts,” as such term is defined in Article 9
of the NY UCC.

 

“Discharge
of Obligations” shall mean both (i) in the case of the Indenture, the
discharge or defeasance of the Indenture in accordance with Sections 8.1 and
8.2 thereof and (ii) in the case of each Other Pari Passu Lien Agreement,
the repayment of the Other Pari Passu Lien Obligations under such agreement or
such other event which entitles the Grantors to obtain a release of the Liens
securing such Other Pari Passu Lien Obligations under the Security Documents.

 

“Documents” shall mean all “documents,” as such
term is defined in Article 9 of the NY UCC.

 

“Equipment” shall mean all “equipment,” as such
term is defined in Article 9 of the NY UCC.

 

“Event
of Default” shall mean an “Event of Default” under and as defined in the
Indenture or any Other Pari Passu Lien Agreement.

 

 “Excluded
Accounts” shall mean (a) prior to the Discharge of ABL Obligations (as
defined in the Intercreditor Agreement), any Deposit Account or Securities
Account established solely to hold the identifiable proceeds of any sale of ABL
Collateral after an Event of Default (as defined in the Credit Agreement), (b) Deposit
Accounts exclusively used for funding zero balance disbursement Deposit
Accounts in respect of payroll, payroll taxes and other employee wage and
benefit payments and (c) other Deposit Accounts the average daily balance of which do not contain
more than $1.0 million in the aggregate for all such Deposit Accounts at 

 

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any time.

 

“Excluded Property” shall mean:

 

(a)           any
permit or license issued by a governmental authority to any Grantor or any
agreement to which any Grantor is a party, in each case, only to the extent and
for so long as the terms of such permit, license or agreement or any
requirement of law applicable thereto, validly prohibit the creation by such
Grantor of a security interest in such permit, license or agreement in favor of
the Collateral Agent (after giving effect to Sections 9-406(d), 9-407(a),
9-408(a) or 9-409 of the UCC (or any successor provision or provisions) or
any other applicable law (including the Bankruptcy Code) or principles of equity);

 

(b)           assets
owned by any Grantor on the date hereof or hereafter acquired and any proceeds
thereof that are subject to a Lien securing a Capital Lease Obligation permitted
to be incurred pursuant clauses (7) or (12) of the definition of “Permitted
Liens” in the Indenture to the extent and for so long as the contract or other
agreement in which such Lien is granted (or the documentation providing for
such Capital Lease Obligation) validly prohibits the creation of any other Lien
on such assets and proceeds;

 

(c)           any
property of a person existing at the time such person is acquired or merged
with or into or consolidated with any Grantor that is subject to a Lien
permitted by clause (17) of the definition of “Permitted Liens” in the
Indenture to the extent and for so long as the contract or other agreement in
which such Lien is granted validly prohibits the creation of any other Lien on
such property;

 

(d)           any
intent-to-use trademark application to the extent and for so long as creation
by a Grantor of a security interest therein would result in the loss by such
Grantor of any material rights therein;

 

(e)           assets
of the Grantors held outside of the United States;

 

(f)            assets
of the Company’s foreign Subsidiaries;

 

(f)            any
capital stock, notes, instruments, other equity interests and other securities
of any Subsidiary or Affiliate of the Company (other than any Securities Account);
provided that (x) notwithstanding the foregoing, intercompany
Indebtedness held by any Grantor shall be deemed Collateral, but no notes or
securities evidencing the same shall be required to be delivered to the
Collateral Agent hereunder and such notes or securities (but not the
Indebtedness underlying such notes and securities) shall not be Collateral, (y) no
Grantor or any of its Subsidiaries shall pledge or grant any security interest
in any such note or security to any Person without the consent of the
Collateral Agent and (z) the intercompany loans (or any whole or partial
replacements or refinancings thereof) made on July 31, 2009 and on or
about the date hereof to one or more Canadian Subsidiaries of the Issuer shall
not be evidenced by a note or a security; and

 

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(g)           any
property or asset only to the extent and for so long as the grant of a security
interest in such property or asset is prohibited by any applicable law or
requires a consent not obtained of any governmental authority pursuant to
applicable law, statute or regulation;

 

provided, however, that (A) Excluded Property
shall not include any Proceeds, substitutions or replacements of any Excluded
Property referred to in clause (a), (b), (c), (d), (e), (f) or (g) 
(unless such Proceeds, substitutions or replacements would constitute Excluded
Property referred to in clause (a), (b), (c), (d), (e), (f) or (g)) and (B) any
property or asset that constitutes Excluded Property by reason of any violation
or restriction shall cease to be Excluded Property upon the ineffectiveness,
lapse or termination of such prohibition or restriction.

 

“Final Date” shall
mean the date upon which there has been a Discharge of Obligations with respect
to the Indenture and each Other Pari Passu Lien Agreement.

 

“General
Intangibles” shall mean all “general intangibles” as such term is defined
in Article 9 of the NY UCC.

 

“Guarantors” shall mean each Grantor other than
the Company.

 

“Grantor” shall mean the Company and each of
the other Grantors identified in the recitals hereto.

 

“Instruments” shall mean all “instruments,” as
such term is defined in Article 9 of the NY UCC.

 

“Intellectual
Property” shall mean all rights, priorities and privileges relating to intellectual
property, whether arising under United States, multinational or foreign laws or
otherwise now owned or hereafter acquired, including (a) all proprietary
information used or useful arising from the business including all goodwill,
trade secrets, trade secret rights, know-how, customer lists, processes of
production, confidential business information, techniques, processes, formulas
and all other proprietary information, and (b) the Copyrights, the
Patents, the Trademarks and the Licenses and all rights to sue at law or in
equity for any infringement or other impairment thereof, including the right to
receive all proceeds and damages therefrom.

 

“Investment
Property” shall mean all Securities (whether certificated or uncertificated),
Security Entitlements, Securities Accounts, Commodity Contracts and Commodity Accounts
of any Grantor, whether now or hereafter acquired by any Grantor, in each case
with respect to Securities (other than Securities in a wholly-owned Subsidiary
of the Company) to the extent the grant by a Grantor of a Security Interest
therein pursuant to this Security Agreement in its right, title and interest in
any such Securities is not prohibited by any shareholder, joint venture or
similar agreement governing such Securities without the consent of any other
party thereto (other than a Grantor), would not give any other party (other
than a Grantor) to any such shareholder, joint venture or similar agreement
governing such Securities the right to terminate its obligations thereunder or is
permitted with consent (other than any consent of a Grantor) if all necessary
consents to such grant of a Security Interest have been obtained from the other
parties 

 

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thereto (other than to the extent that any such
prohibition would be rendered ineffective pursuant to Sections 9-406, 9-407,
9-408 or 9-409 of the Uniform Commercial Code (or any successor provision or
provisions) of any relevant jurisdiction or any other applicable law) (it being
understood that the foregoing shall not be deemed to obligate such Grantor to
obtain such consents).

 

“Letter
of Credit Rights” shall mean all “letter of credit rights” as such term is
defined in Article 9 of the NY UCC.

 

“License” shall mean any Patent License, Trademark
License, Copyright License or other license or sublicense to which any Grantor
is a party.

 

“Mortgaged
Property” shall mean each real property designated as “Mortgaged Property”
on Schedule III to the Purchase Agreement and any other real property subject
to a Mortgage.

 

“Motor
Vehicle Laws” shall mean all U.S. Federal, state, provincial and local
laws, regulations, rules and judicial or agency determinations and orders
applicable to the ownership and/or operation of vehicles (including, without limitation,
the Rolling Stock), or the business of the transportation of goods by motor
vehicle, including, without limitation, laws, regulations, rules and
judicial or agency determinations and orders promulgated or administered by the
Federal Highway Administration, the Federal Motor Carrier Safety
Administration, the National Highway Traffic Safety Administration, the Surface
Transportation Board and other state, provincial and local Governmental Authorities
with respect to vehicle safety and registration and motor carrier insurance,
financial assurance, credit extension, contract carriage, tariff and reporting
requirements.

 

“Note
Documents” means the Notes, the Guarantees, the Indenture, the Security
Documents and the Intercreditor Agreement.

 

“NY
UCC” has the meaning assigned to such term in Section 1(a).

 

“Obligations” shall mean the collective
reference to the Note Obligations and the Other Pari Passu Lien Obligations.

 

“Other
Pari Passu Lien Agreement” shall mean any indenture, credit agreement or
other agreement, if any, pursuant to which any Grantor has or will incur Other
Pari Passu Lien Obligations; provided that, in each case, the Indebtedness
thereunder has been designated as Other Pari Passu Lien Obligations pursuant to
and in accordance with Section 8.17.

 

“Other
Pari Passu Lien Obligations” shall mean all obligations, liabilities and indebtedness
(including, without limitation, principal, premium, interest (including,
without limitation, all interest that accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency, reorganization
or similar proceeding of any Grantor at the rate provided for in the respective
documentation, whether or not a claim for post-petition interest is allowed in
any such proceeding)) owing under any Other Pari Passu Lien Agreement that has
been designated as Other Pari Passu Lien Obligations pursuant to Section 8.17.

 

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“Other
Pari Passu Lien Secured Party Consent” shall mean a consent in the form of
Annex 4 to this Security Agreement executed by the Authorized Representative of
any holders of Other Pari Passu Lien Obligations pursuant to Section 8.17.

 

“Patent
License” means any written agreement, now or hereafter in effect, granting
to any third party any right to make, use or sell any invention on which a
patent, now owned or hereafter acquired by any Grantor (including all Patents)
or that any Grantor otherwise has the right to license, is in existence, or
granting to any Grantor any right to make, use or sell any invention on which a
patent, now owned or hereafter acquired by any third party, is in existence,
and all rights of any Grantor under any such agreement, including those
exclusive agreements listed on Schedule 3.

 

“patents” means, with respect to any Person,
all of the following now owned or hereafter acquired by such Person:  (a) all letters patent of the United
States or the equivalent thereof in any other country or jurisdiction, all
registrations and recordings thereof, and all applications for letters patent
of the United States or the equivalent thereof in any other country or
jurisdiction, including registrations and pending applications in the United
States Patent and Trademark Office or any similar offices in any other country
or jurisdiction, and (b) all rights and privileges arising under
applicable law with respect to such Person’s use of any patents, all reissues,
continuations, divisions, continuations-in-part, renewals or extensions
thereof, and the inventions disclosed or claimed therein, including the right
to make, use and/or sell the inventions disclosed or claimed therein.

 

“Patents” means all patents now owned or
hereafter acquired by any Grantor, including those listed on Schedule 4.

 

“Proceeds” shall mean all “proceeds” as such
term is defined in Article 9 of the NY UCC.

 

“Required
Secured Parties” shall mean the holders of a majority in an aggregate
principal amount of (i) the Notes, subject in all cases to Section 9.2
of the Indenture, and (ii) any Indebtedness constituting Other Pari Passu
Lien Obligations, in each case, excluding for all purposes of this definition
any holder of such debt whose vote is required to be disregarded under the Indenture
or the applicable Other Pari Passu Lien Agreement.

 

“Rolling
Stock”  shall mean all trucks, trailers,
tractors, service vehicles, automobiles, other registered mobile equipment and
any other Equipment covered by a certificate of title or ownership.

 

“Secured
Parties” shall mean (i) the Holders; (ii) the Trustee, (iii) the
Collateral Agent, (iv) the holders of any Other Pari Passu Lien Obligation
and (v) any Authorized Representative; (vi) the beneficiaries of each
indemnification obligation undertaken by any Grantor under any Note Document
and (vii) any successors, indorsees, transferees and assigns of each of
the foregoing.

 

“Securities
Accounts” shall mean all “securities accounts,” as such term is defined in Article 9
of the NY UCC.

 

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“Security
Agreement” shall mean this Security Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

 

“Security
Interest” shall have the meaning assigned to such term in Section 2.

 

“Trademark
License” means any written agreement, now or hereafter in effect, granting
to any third party any right to use any trademark now owned or hereafter
acquired by any Grantor (including any Trademark) or that any Grantor otherwise
has the right to license, or granting to any Grantor any right to use any
trademark now owned or hereafter acquired by any third party, and all rights of
any Grantor under any such agreement, including those exclusive agreements
listed on Schedule 5.

 

“trademarks” means, with respect to any Person,
all of the following now owned or hereafter acquired by such Person:  (i) all trademarks, service marks, trade
names, corporate names, company names, business names, fictitious business
names, trade dress, logos, other source or business identifiers, designs and
general intangibles of like nature, now owned or hereafter acquired, all
registrations and recordings thereof (if any), and all registration and
recording applications filed in connection therewith, including registrations
and registration applications in the United States Patent and Trademark Office
or any similar offices in any State of the United States or any other country
or any political subdivision thereof, and all extensions or renewals thereof, (ii) all
goodwill associated therewith or symbolized thereby and (iii) all other
assets, rights and interests that uniquely reflect or embody such goodwill.

 

“Trademarks” means all trademarks now owned or
hereafter acquired by any Grantor, including those listed on Schedule 6 hereto.

 

(c)           The
words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import
when used in this Security Agreement shall refer to this Security Agreement as
a whole and not to any particular provision of this Security Agreement, and
Section, subsection and Schedule references are to this Security Agreement
unless otherwise specified. The words “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.”

 

(d)           The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

 

(e)           Where
the context requires, terms relating to the Collateral or any part thereof,
when used in relation to a Grantor, shall refer to such Grantor’s Collateral or
the relevant part thereof

 

2.             Grant of Security Interest.

 

(a)           Each
Grantor hereby bargains, sells, conveys, assigns, sets over, mortgages,
pledges, hypothecates and transfers to the Collateral Agent, for the benefit of
the Secured Parties, and hereby grants to the Collateral Agent, for the benefit
of the Secured Parties, a security interest (the “Security Interest”) in
all of the following property now owned or hereafter acquired by such Grantor
or in which such Grantor now has or at any time in future may acquire 

 

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any
right, title or interest (collectively, the “Collateral”),
as collateral security for the prompt and complete payment and performance when
due (whether at the stated maturity, by acceleration or otherwise) of the
Obligations:

 

(i)              all Accounts;

 

(ii)             all cash and/or money;

 

(iii)            all Chattel Paper;

 

(iv)            all Deposit Accounts;

 

(v)             all Documents;

 

(vi)            all General Intangibles;

 

(vii)           all Instruments;

 

(viii)          all Intellectual Property;

 

(ix)            all Goods, including Equipment,
Inventory and Rolling Stock;

 

(x)             all Investment Property;

 

(xi)            all Commercial Tort Claims described
on Appendix F to the Perfection Certificate;

 

(xii)           all Supporting Obligations;

 

(xiii)          all Letter of Credit Rights;

 

(xiv)          books and records pertaining to the
Collateral;

 

(xv)           any other contract rights or rights
to payment of money, insurance claims and proceeds; and

 

(xvi)          to the extent not otherwise included,
all Proceeds and products of any and all of the foregoing.

 

Notwithstanding
anything to the contrary contained in clauses (i) through (xvi) above, the
security interest created by this Security Agreement shall not extend to, and
the term “Collateral” shall not include, any Excluded Property.

 

(b)           Each
Grantor hereby irrevocably authorizes the Collateral Agent at any time and from
time to time to file in any relevant jurisdiction any initial financing
statements with respect to the Collateral or any part thereof and amendments or
continuations thereto that contain the information required by Article 9
of the Uniform Commercial Code of each applicable jurisdiction for the filing
of any financing statement or amendment, including whether such 

 

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Grantor
is an organization, the type of organization and any organizational identification
number issued to such Grantor.  Such
financing statements may describe the Collateral in the same manner as
described herein or may contain an indication or description of collateral that
describes such property in any other manner such as “all assets” or “all
personal property, whether now owned or hereafter acquired.”  Each Grantor agrees to provide such
information to the Collateral Agent promptly upon request.

 

Each
Grantor also ratifies its authorization for the Collateral Agent to file in any
relevant jurisdiction any initial financing statements or amendments thereto if
filed prior to the date hereof.

 

The
Collateral Agent is further authorized to file with the United States Patent
and Trademark Office or United States Copyright Office (or any successor office
or any similar office in any other country) such documents executed by any
Grantor as may be necessary or advisable for the purpose of perfecting,
confirming, continuing, enforcing or protecting the Security Interest granted
by each Grantor over each Grantor’s registrations and applications for Copyrights,
Patents and Trademarks, and naming any Grantor or the Grantors as debtors and
the Collateral Agent as secured party.

 

Notwithstanding
the foregoing authorizations, it shall be the responsibility of the Grantors to
file or cause to be made all filings specified in this Section and this Section shall
not be construed to impose any duty or obligation upon the Collateral Agent.

 

The
Security Interests are granted as security only and shall not subject the Collateral
Agent or any other Secured Party to, or in any way alter or modify, any
obligation or liability of any Grantor with respect to or arising out of the
Collateral.

 

3.             Representations And Warranties.

 

Each
Grantor hereby represents and warrants to the Collateral Agent and each Secured
Party that:

 

3.1.               Title;
No Other Liens.  Except for the
Security Interest granted to the Collateral Agent for the benefit of the
Secured Parties pursuant to this Security Agreement and other Liens permitted
by the Indenture and each Other Pari Passu Lien Agreement, such Grantor owns
each item of the Collateral free and clear of any and all Liens or claims of
others.  No security agreement, financing
statement or other public notice with respect to all or any part of the
Collateral that evidences a Lien securing any material Indebtedness is on file
or of record in any public office, except such as have been filed in favor of
the Collateral Agent, for the benefit of the Secured Parties, pursuant to this
Security Agreement or are permitted by the Indenture.

 

3.2.               Perfected
First Priority Liens.

 

(a)           Subject
to the limitations set forth in clause (b) of this subsection 3.2, the
Security Interests granted pursuant to this Security Agreement (i) will
constitute valid perfected Security Interests in the Collateral in favor of the
Collateral Agent, for the benefit of the Secured Parties, as collateral
security for the Obligations, upon (A) the filing of all financing
statements 

 

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naming
each Grantor as “debtor” and the Collateral Agent as “secured party” and describing
the Collateral in the applicable filing offices, (B) delivery of all
Instruments, Chattel Paper and certificated Securities, together with
instruments of transfer or assignment duly executed in blank, (C) in the
case of Rolling Stock the ownership of which, under applicable law (including,
without limitation, any Motor Vehicle Law), is evidenced by a certificate of
title or ownership, the notation of the Security Interest created hereunder
noted thereon and (D) completion of the filing, registration and recording
of a fully executed agreement substantially in the form of Annex 3 hereto and
containing a description of all Collateral constituting registrations and
applications for Intellectual Property in the United States Patent and
Trademark Office within the three-month period (commencing as of the date
hereof) or, in the case of Collateral constituting registrations and
applications for Intellectual Property acquired after the date hereof,
thereafter pursuant to 35 USC §261 and 15 USC §1060 and the regulations
thereunder with respect to United States Patents and United States registered
and applied for Trademarks; and in the United States Copyright Office within
the one-month period (commencing as of the date hereof) or, in the case of
Collateral constituting registrations and applications for Intellectual
Property acquired after the date hereof, thereafter with respect to United
States registered Copyrights pursuant to 17 USC §205 and the regulations
thereunder and otherwise as may be required pursuant to the laws of any other
necessary jurisdiction to the extent that a security interest may be perfected
by such filings, registrations and recordings, and (ii) are prior to all
other Liens on the Collateral other than (A) Liens in favor of the secured
parties under the Credit Agreement as set forth in the Intercreditor Agreement
and (B) Permitted Liens and any equivalent provision of each Other Pari
Passu Lien Agreement.

 

(b)           Notwithstanding
anything to the contrary herein, no Grantor shall be required to perfect the
Security Interests granted by this Security Agreement (including Security
Interests in cash, cash accounts and Investment Property) by any means other
than by (i) filings pursuant to the Uniform Commercial Codes of the
relevant State(s), (ii) filings with the registrars of motor vehicles or
other appropriate authorities in the relevant jurisdictions, (iii) filings
approved by United States government offices with respect to registrations and
applications of Intellectual Property, (iv) in the case of Collateral that
constitutes Tangible Chattel Paper, Instruments, Certificated Securities or
Negotiable Documents, possession by the Collateral Agent in the United States,
and (v) the obtaining of Control Agreements over Deposit Accounts and Securities
Accounts (including, without limitation, those listed on Schedule 8) other than
Excluded Accounts; provided, however, that each Grantor shall be
required to do the following in order to perfect the Security Interests granted
under this Security Agreement: (i) comply with any provision of any
statute, regulation or treaty of the United States as to any Collateral if compliance
with such provision is a condition to attachment, perfection or priority of, or
ability of the Collateral Agent to enforce, the Collateral Agent’s security
interest in such Collateral; (ii) obtain governmental and other third
party waivers, consents and approvals in form and substance satisfactory to the
Collateral Agent, including any consent of any licensor, lessor or other person
obligated on the Collateral, (iii) obtain waivers from mortgagees and
landlords in form and substance satisfactory to the Collateral Agent, and (iv) take
all actions under any earlier versions of the NY UCC or under any other law, as
reasonably determined by the Collateral Agent to be applicable.  No Grantor shall be required to complete any
filings or other action with respect to the perfection of Security Interests in
any jurisdiction outside the United States.

 

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(c)           It
is understood and agreed that the Security Interests in cash, Deposit Accounts
and Investment Property created hereunder shall not prevent the Grantors from
using such assets in the ordinary course of their respective businesses.

 

3.3.               Collateral
Locations.  On the Issue Date, all of
such Grantor’s locations where Inventory is located (except for Equipment or
Inventory in transit, that has been sold (including sales on consignment or
approval in the ordinary course of business), that is out for repair or
maintenance or any Collateral with a value less than $1,000,000 in the aggregate)
are listed on Schedule 7.  All such
locations are owned by such Grantor except for locations (i) which are
leased by the Grantor as lessee and designated in part (b) of Schedule 7
and (ii) at which Inventory is held in a public warehouse or is otherwise
held by a bailee or on consignment as designated in part (c) of Schedule
7.

 

3.4.               Accounts
and Chattel Paper.  The names of the
obligors, amounts owing, due dates and other information with respect to its
Accounts and Chattel Paper are and will be correctly stated at the time
furnished in all records of such Grantor relating thereto and in all invoices
and other reports with respect thereto furnished to the Collateral Agent by
such Grantor from time to time.

 

3.5.               Inventory.  With respect to any Inventory that is
Collateral, (a) such Inventory is not subject to any licensing, patent,
royalty, trademark, trade name or copyright agreements with any third parties
which would require any consent of any third party upon sale or disposition of
that Inventory or the payment of any monies to any third party upon such sale
or other disposition other than the payment of royalties incurred pursuant to
the sale of such Inventory in the ordinary course of business, (b) such
Inventory has been produced in accordance with the Federal Fair Labor Standards
Act of 1938, as amended, and all rules, regulations and orders thereunder, to
the extent required thereby and (c) the completion of manufacture, sale or
other disposition of such Inventory by the Collateral Agent after the
occurrence and during the continuation of an Event of Default shall not require
the consent of any Person (other than any landlord with respect to any leased
real property of such Grantor in respect of which no Collateral Access
Agreement has been obtained or as required by applicable Law) and shall not
constitute a breach or default under any contract or agreement to which such
Grantor is a party or to which such property is subject.

 

3.6.               Perfection
Certificate.  All information set
forth on the Perfection Certificate relating to the Collateral and the
Mortgaged Property is accurate and complete, and there has been no change in
any of such information since the date on which the Perfection Certificate was
signed by such Grantor.

 

4.             Covenants.

 

Each
Grantor hereby covenants and agrees with the Collateral Agent and the Secured
Parties that, from and after the date of this Security Agreement until the
Final Date:

 

12

 

4.1.               Maintenance
of Perfected Security Interest; Further Documentation.

 

(a)           Such
Grantor shall maintain the Security Interest created by this Security Agreement
as a perfected Security Interest having at least the priority described in
subsection 3.2 and shall defend such Security Interest against the claims and
demands of all Persons whomsoever, in each case subject to subsection 3.2(b).

 

(b)           Such
Grantor will furnish to the Collateral Agent and the Secured Parties from time
to time statements and schedules further identifying and describing the assets
and property of such Grantor and such other reports in connection therewith as
the Collateral Agent may reasonably request. 
In addition, within 30 days after the end of each calendar quarter, such
Grantor will deliver to the Collateral Agent a written supplement hereto
substantially in the form of Annex 2 hereto with respect to any additional
registrations and applications for Copyrights, Patents, Trademarks and any
material exclusive Licenses acquired by such Grantor after the date hereof, all
in reasonable detail.

 

(c)           Subject
to clause (d) below and subsection 3.2(b), each Grantor agrees that at any
time and from time to time, at the reasonable request of the Collateral Agent,
at the expense of such Grantor, it will execute any and all further documents,
financing statements, agreements and instruments, and take all such further actions
(including the filing and recording of financing statements, fixture filings,
mortgages, deeds of trust and other documents), which may be required under any
applicable law, or which the Collateral Agent or the Required Secured Parties
may reasonably request, in order (x) to grant, preserve, protect and
perfect the validity and priority of the Security Interests created or intended
to be created hereby or (y) to enable the Collateral Agent to exercise and
enforce its rights and remedies hereunder with respect to any Collateral,
including the filing of any financing or continuation statements under the Uniform
Commercial Code in effect in any jurisdiction with respect to the Security
Interests created hereby, all at the expense of such Grantor.

 

(d)           Notwithstanding
anything in this subsection 4.1 to the contrary, (i) with respect to any
assets acquired by such Grantor after the date hereof that are required by the
Indenture or any Other Pari Passu Lien Agreement to be subject to the Lien
created hereby or (ii) with respect to any Person that, subsequent to the
date hereof, becomes a Subsidiary of the Company that is required by the
Indenture or any Other Pari Passu Lien Agreement to become a party hereto, the
relevant Grantor after the acquisition or creation thereof shall promptly take
all actions required by the Indenture, any applicable provisions of any Other
Pari Passu Lien Agreement or this subsection 4.1.

 

4.2.               Changes
in Locations, Name, etc.  Each
Grantor will furnish to the Collateral Agent promptly (and in any event within
30 days of such change) a written notice of any change (i) in its legal
name, (ii) in its jurisdiction of incorporation or organization, (iii) in
the location of its chief executive office, its principal place of business,
any office in which it maintains books or records relating to Collateral owned
by it (including the establishment of any such new office), (iv) in its
identity or type of organization or corporate structure or (v) in its
Federal Taxpayer Identification Number or organizational identification
number.  Each Grantor agrees promptly to
provide the Collateral Agent with certified organizational documents reflecting
any 

 

13

 

of
the changes described in the first sentence of this paragraph.  Each Grantor agrees to promptly take all
actions reasonably necessary or advisable to maintain a valid, legal and
perfected security interest in all the Collateral having at least the priority
described in subsection 3.2.

 

4.3.               Notices.  Each Grantor will advise the Collateral Agent
and the Secured Parties promptly, in reasonable detail, of any Lien of which it
has knowledge (other than the Security Interests created hereby or Liens
permitted under the Indenture and each Other Pari Passu Lien Agreement) on any
of the Collateral which would adversely affect, in any material respect, the
ability of the Collateral Agent to exercise any of its remedies hereunder.

 

4.4.               Filings with the United States
Patent and Trademark Office and the United States Copyright Office. On the
Issue Date, each Grantor agrees to file all appropriate and necessary documents
with the United States Patent and Trademark Office and the United States
Copyright Office required to record the Security Interest created
hereunder and evidence that the registrations and applications for United
States Trademarks, Patents and Copyrights listed on Schedules 2, 4 and 6
hereto are free and clear of any Liens (other than any Lien created under this
Security Agreement or Permitted Liens) recorded in such offices in respect of
such registrations and applications for United States Trademarks, Patents
and Copyright.

 

4.5.               Commercial
Tort Claims.  Each Grantor shall
promptly, and in any event within ten Business Days after the same is acquired
by it, notify the Collateral Agent of any commercial tort claims (as defined in
the UCC) acquired by it which could reasonably be expected to result in award
damages in excess of $1,000,000 in writing signed by such Grantor providing the
brief details thereof and grant to the Collateral Agent in such writing a
security interest therein and in the Proceeds thereof, all upon the terms of
this Security Agreement, with such writing to be in form and substance
substantially the same as any such writing provided under the ABL Security
Documents (as defined in the Intercreditor Agreement), if any.

 

4.6.               Collateral
Access Agreements.  Each Grantor
shall use its commercially reasonable efforts to obtain as soon as practicable
after the date hereof with respect to each location not owned by such Grantor
set forth in Schedule 7 a Collateral Access Agreement, from the lessor of each
leased property, mortgagee of owned property or bailee or consignee with
respect to any warehouse, processor or converter facility or other location
where Collateral having a value in excess of $1,000,000 is stored or located
and use commercially reasonable efforts to obtain a Collateral Access Agreement
from each lessor of each leased property, mortgagee of owned property or bailee
or consignee with respect to any warehouse, processor or converter facility or
other location where Collateral having a value in excess of $1,000,000 is
stored or located from time to time; provided that the aggregate value
of Collateral stored or located at these locations not owned by the Grantors
for which the applicable Grantor has not used commercially reasonable efforts
to obtain Collateral Access Agreements from the applicable lessors, bailees or
consignees shall not exceed $15,000,000 in the aggregate.

 

4.7.               Instruments
and Tangible Chattel Paper.  As of
the date hereof, no amounts payable under or in connection with any of the
Collateral are evidenced by any Instrument or Tangible Chattel Paper other than
such Instruments and Tangible Chattel Paper listed in Schedule 10
to the Perfection Certificate.  Each
Instrument and each item of Tangible Chattel Paper listed in Schedule 10
to the Perfection Certificate has been properly endorsed, assigned 

 

14

 

and
delivered to the Collateral Agent, accompanied by instruments of transfer or
assignment duly executed in blank.  If
any amount then payable under or in connection with any of the Collateral shall
be evidenced by any Instrument or Tangible Chattel Paper, and such amount,
together with all amounts payable evidenced by any Instrument or Chattel Paper
not previously delivered to the Collateral Agent exceeds $500,000 in the
aggregate for all Grantors, the Grantor acquiring such Instrument or Tangible
Chattel Paper shall promptly (but in any event within five days after receipt
thereof) endorse, assign and deliver the same to the Collateral Agent,
accompanied by such instruments of transfer or assignment duly executed in
blank as the Collateral Agent may from time to time specify.

 

4.8.               Special Covenants with Respect
to Rolling Stock. Each Grantor shall cause all Rolling Stock, now owned or
hereafter acquired by any Grantor, which, under applicable law, is required to
be registered, to be properly registered (including, without limitation, the
payment of all necessary taxes and receipt of any applicable permits) in the
name of such Grantor and cause all Rolling Stock, now owned or hereafter
acquired by any Grantor, the ownership of which, under applicable law
(including, without limitation, any Motor Vehicle Law), is evidenced by a
certificate of title or ownership, to be properly titled in the name of such
Grantor, and in the case of any individual Rolling Stock of an Grantor with a
fair market value in excess of $50,000, the applicable Grantor shall notify the
Collateral Agent of any such Rolling Stock acquired after the date hereof and
the Security Interest of the Collateral Agent created hereunder shall be noted
thereon.  At the Collateral Agent’s
request at any time after the occurrence and during the continuance of an Event
of Default, each Grantor shall deliver to the Collateral Agent the certificates
of title covering each item of Rolling Stock the perfection of which is governed
by the notation on the certificate of title of the Collateral Agent’s Security
Interest created hereunder. No Grantor shall request any Rolling Stock be
released from the Lien created by the Security Documents unless such a release
is permitted by the Note Documents and no such release shall be requested at
any time after the occurrence and during the continuation of an Event of
Default.

 

4.9.               Investment
Property. 
If any Grantor shall, now or at any time hereafter, hold or acquire any
certificated securities not constituting Excluded Property, such Grantor shall
forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied
by such instruments of transfer or assignment duly executed in blank as the
Collateral Agent may from time to time specify. 
If any securities now or hereafter acquired by any Grantor are uncertificated
and are issued to such Grantor or its nominee directly by the issuer thereof,
such Grantor shall immediately notify the Collateral Agent thereof and, at the
Collateral Agent’s request and option, pursuant to an agreement in form and
substance satisfactory to the Collateral Agent, either (a) cause the
issuer to agree to comply without further consent of such Grantor or such
nominee, at any time with instructions from the Collateral Agent as to such
securities, or (b) arrange for the Collateral Agent to become the
registered owner of the securities.  If
any securities, whether certificated or uncertificated, or other investment
property now or hereafter acquired by any Grantor are held by such Grantor or
its nominee through a securities intermediary or commodity intermediary, such
Grantor shall immediately notify the Collateral Agent thereof and, at the
Collateral Agent’s request and option, pursuant to an agreement in form and substance
satisfactory to the Collateral Agent, either (i) cause such securities
intermediary or (as the case may be) commodity intermediary to agree to comply,
in each case without further consent 

 

15

 

of
such Grantor or such nominee, at any time with entitlement orders or other
instructions from the Collateral Agent to such securities intermediary as to
such securities or other investment property, or (as the case may be) to apply
any value distributed on account of any commodity contract as directed by the
Collateral Agent to such commodity intermediary, or (ii) in the case of
financial assets or other investment property held through a securities
intermediary, arrange for the Collateral Agent to become the entitlement holder
with respect to such investment property, with such Grantor being permitted,
only with the consent of the Collateral Agent, to exercise rights to withdraw
or otherwise deal with such investment property.  The Collateral Agent agrees with each Grantor
that the Collateral Agent shall not give any such entitlement orders or
instructions or directions to any such issuer, securities intermediary or
commodity intermediary, and shall not withhold its consent to the exercise of
any withdrawal or dealing rights by such Grantor, unless an Event of Default
has occurred and is continuing, or, after giving effect to any such investment
and withdrawal rights not otherwise permitted by the Note Documents and the
Other Pari Passu Lien Agreements, would occur. 
The provisions of this paragraph shall not apply to any financial assets
credited to a securities account for which the Collateral Agent is the
securities intermediary.  The provisions
of this Section 4.9 shall be subject to the Intercreditor Agreement.

 

4.10.             Letter-of-Credit
Rights.  If any Grantor is, now or at
any time hereafter, a beneficiary under a letter of credit now or hereafter,
such Grantor shall promptly notify the Collateral Agent thereof and, at the
request and option of the Collateral Agent, such Grantor shall, pursuant to an
agreement in form and substance satisfactory to the Collateral Agent, use its
commercially reasonable efforts to, either (a) arrange for the issuer and
any confirmer of such letter of credit to consent to an assignment to the
Collateral Agent of the proceeds of the letter of credit or (b) arrange
for the Collateral Agent to become the transferee beneficiary of the letter of
credit, with the Collateral Agent agreeing, in each case, that the proceeds of
the letter of credit are to be applied as provided herein.

 

4.11.             Deposit
Accounts and Securities Accounts.  Subject to the Intercreditor
Agreement, for each Deposit Account and Securities Account (including, without
limitation, those listed on Schedule 8) that (i) prior to the Discharge of
ABL Obligations, to the extent such Deposit Account or Securities Account
constitutes ABL Priority Collateral (as defined in the Intercreditor
Agreement), that any Grantor causes the depositary bank or securities intermediary,
as applicable, to agree to comply without further consent of such Grantor, at
any time with instructions from the collateral agent for the Credit Agreement
to such depositary bank or securities intermediary, directing the disposition
of funds or financial assets, as applicable, from time to time credited to such
deposit account or securities account (provided that if the collateral agent or
administrative agent under the Credit Agreement shall have entered into a
control agreement with such depository bank or securities intermediary, the
Collateral Agent shall enter into a similar control agreement) or (ii) from
and after the Discharge of ABL Obligations or to the extent such Deposit
Account or Securities Account, as applicable, does not constitute ABL Priority
Collateral, that any Grantor, now or at any time hereafter, opens or maintains,
such Grantor shall, at the Collateral Agent’s request and option, pursuant to a
Control Agreement in form and substance satisfactory to the Collateral Agent,
use its commercially reasonable efforts to cause the depositary bank or
securities intermediary, as applicable, to agree to comply without further consent
of such Grantor, at any time with instructions from the Collateral Agent to
such depositary 

 

16

 

bank
or securities intermediary directing the disposition of funds or financial assets
from time to time credited to such deposit account or securities account.  The Collateral Agent agrees with each Grantor
that the Collateral Agent shall not give any such instructions or withhold any
withdrawal rights from such Grantor, unless an Event of Default has occurred
and is continuing.  The provisions of
this paragraph shall not apply to any Excluded Accounts.

 

4.12.             The
Collateral Agent shall have the right at any time or times, to verify the
validity, amount or any other matter relating to any Collateral, by mail,
telephone, facsimile transmission or otherwise.

 

4.13.             Insurance.

 

(a)           Maintenance
of Insurance.  Each Grantor will
maintain with financially sound and reputable insurers insurance with respect
to its properties, including, without limitation, the Mortgaged Property, and
business against such casualties and contingencies as shall be in accordance
with general practices of businesses engaged in similar activities in similar
geographic areas.  Such insurance shall
be in such minimum amounts that such Grantor will not be deemed a co-insurer
under applicable insurance laws, regulations and policies and otherwise shall
be in such amounts, contain such terms, be in such forms and be for such
periods as may be reasonably satisfactory to the Collateral Agent.  In addition, all such insurance shall be
payable to the Collateral Agent as loss payee under a “standard” or “New York”
loss payee clause for the benefit of the Secured Parties and the Collateral
Agent. Without limiting the foregoing, each Grantor will (a) keep all of
its physical property insured with casualty or physical hazard insurance on an “all
risks” basis, with broad form flood and earthquake coverages and electronic
data processing coverage, with a full replacement cost endorsement and an “agreed
amount” clause in an amount equal to 100% of the full replacement cost of such
property, (b) maintain all such workers’ compensation or similar insurance
as may be required by law and (c) maintain, in amounts and with
deductibles equal to those generally maintained by businesses engaged in
similar activities in similar geographic areas, general public liability
insurance against claims of bodily injury, death or property damage occurring,
on, in or about the properties of the Grantors, business interruption
insurance, and product liability insurance.

 

(b)           Insurance
Proceeds.  The proceeds of any
casualty insurance in respect of any casualty loss of any of the Collateral
shall, subject to the rights, if any, of other parties with an interest having
priority in the property covered thereby and subject to the Intercreditor
Agreement, (a) so long as no Default or Event of Default has occurred and
is continuing be disbursed to the applicable Grantor for direct application by
such Grantor solely to the repair or replacement of such Grantor’s property so
damaged or destroyed except to the extent such proceeds are required to be
applied to the Obligations as provided by the terms of the Credit Agreement,
and (b) in all other circumstances, be held by the Collateral Agent as
cash collateral for the Obligations. 
Subject to the Intercreditor Agreement, the Collateral Agent may, at its
sole option, disburse from time to time all or any part of such proceeds so
held as cash collateral, upon such terms and conditions as the Collateral Agent
may reasonably prescribe, for direct application by the applicable Grantor
solely to the repair or replacement of such Grantor’s property so damaged or
destroyed, or the Collateral Agent may apply all or any part of such proceeds
held as cash collateral to the Obligations with the Commitment (if not then
terminated) being reduced by the 

 

17

 

amount
so applied to the Obligations.

 

(c)           Continuation
of Insurance.  All policies of
insurance shall provide for at least thirty (30) days prior written
cancellation notice to the Collateral Agent. 
In the event of failure by the Grantors to provide and maintain
insurance as herein provided, the Collateral Agent may, at its option, provide
such insurance and charge the amount thereof to the Grantors.  The Grantors shall furnish the Collateral
Agent with certificates of insurance and policies evidencing compliance with
the foregoing insurance provision.

 

5.             Remedial Provisions.

 

(a)           Certain
Matters Relating to Accounts.  The
Collateral Agent hereby authorizes each Grantor to collect such Grantor’s
Accounts and the Collateral Agent may curtail or terminate said authority at
any time after the occurrence and during the continuance of an Event of
Default.  If required in writing by the
Collateral Agent at any time after the occurrence and during the continuance of
an Event of Default, any payments of Accounts, when collected by any Grantor, (i) shall
be forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly endorsed by such Grantor to the
Collateral Agent if required, in a Collateral Account maintained under the sole
dominion and control of and on terms and conditions reasonably satisfactory to
the Collateral Agent, subject to withdrawal by the Collateral Agent for the
account of the Secured Parties only as provided hereunder and in the Indenture,
and (ii) until so turned over, shall be held by such Grantor in trust for
the Collateral Agent and the Secured Parties, segregated from other funds of
such Grantor.  Each such deposit of Proceeds
of Accounts shall be accompanied by a report identifying in reasonable detail
the nature and source of the payments included in the deposit.  A Grantor shall not grant any extension of
the time of payment of any of the Accounts, compromise, compound or settle the
same for less than the full amount thereof, release, wholly or partly, any
person liable for the payment thereof, or allow any credit or discount
whatsoever thereon except in the ordinary course of business and unless an
Event of Default shall have occurred and subject to the Intercreditor
Agreement,  the Collateral Agent shall
have instructed the Grantors not to grant or make any such extension, credit,
discount, compromise, or settlement under any circumstances during the
continuance of such Event of Default.

 

5.2.               Communications
with Account Debtors; Grantors Remain Liable.

 

(a)           Subject
to the terms of the Intercreditor Agreement, the Collateral Agent in its own
name or in the name of others may at any time after the occurrence and during
the continuance of an Event of Default, communicate with Account Debtors under
the Accounts to verify with them to the Collateral Agent’s satisfaction the
existence, amount and terms of any Accounts. 
The Collateral Agent shall have the absolute right to share any
information it gains from such inspection or verification with any Secured
Party.

 

(b)           Subject
to the terms of the Intercreditor Agreement, upon the written request of the
Collateral Agent at any time after the occurrence and during the continuance of
an Event of Default, each Grantor shall notify Account Debtors on the Accounts
that the Accounts have been assigned to the Collateral Agent for the benefit of
the Secured Parties and that payments in respect thereof shall be made directly
to the Collateral Agent.

 

18

 

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

 

5.3.               Proceeds
To Be Turned Over to Collateral Agent. In addition to the rights of the
Collateral Agent and the other Secured Parties specified in subsection 5.1 with
respect to payments of Accounts, subject to the terms of the Intercreditor
Agreement, if an Event of Default shall occur and be continuing and the
Collateral Agent so requires by notice in writing to the relevant Grantor, all
Proceeds received by any Grantor consisting of cash, checks and other near-cash
items shall be held by such Grantor in trust for the Collateral Agent and the Secured
Parties, segregated from other funds of such Grantor, and shall, forthwith upon
receipt by such Grantor, be turned over to the Collateral Agent in the exact
form received by such Grantor (duly endorsed by such Grantor to the Collateral
Agent, if required).  All Proceeds
received by the Collateral Agent hereunder shall be held by the Collateral
Agent in a collateral deposit account maintained under its sole dominion and
control and on terms and conditions reasonably satisfactory to the Collateral
Agent (the “Collateral Deposit Account”).  All Proceeds while held by the Collateral
Agent in a Collateral Deposit Account (or by such Grantor in trust for the Collateral
Agent and the Secured Parties) shall continue to be held as collateral security
for all the Obligations and shall not constitute payment thereof until applied
as provided in subsection 5.4.

 

5.4.               Application
of Proceeds. (a) Subject to the terms of the Intercreditor Agreement,
the proceeds received by the Collateral Agent of any collection or sale of the
Collateral or Mortgaged Property as well as any Collateral consisting of cash,
at any time after receipt shall be applied as follows:

 

(i)            first,
to pay amounts owing to the Collateral Agent and Trustee (in its capacity as
such) pursuant to this Security Agreement, the Indenture or any other Security
Document;

 

(ii)           second,
to the extent proceeds remain after the application pursuant to preceding
clause (i), pro rata (based on the respective amounts of Obligations described
in subclauses (x) and (y) below) to (x) the Trustee, based on
the amount of Obligations then outstanding under the Indenture, for application
as provided in the Indenture and (y) each Authorized Representative, based
on the amount of Obligations then outstanding under the Other Pari Passu Lien
Agreement pursuant to which it is acting as such, for application as provided
in such Other Pari Passu Lien Agreement; and

 

19

 

(iii)            third,
the balance, if any, to the Grantors or such other persons entitled thereto.

 

Upon
any sale of the Collateral or Mortgaged Property by the Collateral Agent
(including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Collateral Agent or of the officer making the
sale shall be a sufficient discharge to the purchaser or purchasers of the
Collateral or Mortgaged Property so sold and such purchaser or purchasers shall
not be obligated to see to the application of any part of the purchase money
paid over to the Collateral Agent or such officer or be answerable in any way
for the misapplication thereof.

 

If, despite the provisions
of this Section 5.4, any Secured Party shall receive any payment or other
recovery in excess of its portion of payments on account of the Obligations to
which it is then entitled in accordance with this Section 5.4, such
Secured Party shall hold such payment or recovery in trust for the benefit of
all Secured Parties for distribution in accordance with this Section 5.4.  In making the determination and allocations
required by this Section 5.4, the Collateral Agent may conclusively rely
upon information supplied by (i) the Trustee as to the amounts of unpaid
principal and interest and other amounts outstanding with respect to the Note
Obligations and (ii) the applicable Authorized Representative as to the
amounts of unpaid principal and interest and other amounts outstanding with
respect to such Other Pari Passu Lien Obligations and the Collateral Agent
shall have no liability to any of the Secured Parties for actions taken in
reliance on such information.

 

(b)           It is understood that the Grantors
shall remain jointly and severally liable to the extent of any deficiency
between the amount of the proceeds of the Collateral and Mortgaged Property and
the aggregate amount of the Obligations.

 

(c)           It is understood and agreed by all
parties hereto that the Collateral Agent shall have no liability for any
determinations made by it in this Section 5.4.  The parties also agree that the Collateral
Agent may (but shall not be required to and shall have no liability for not
doing so), at any time and in its sole discretion, and with no liability
resulting therefrom, petition a court of competent jurisdiction regarding any
application of Collateral or Mortgaged Property in accordance with the
requirements hereof and of the Intercreditor Agreement, and the Collateral
Agent shall be entitled to wait for, and may conclusively rely on, any such
determination.

 

(d)           Each of the Secured Parties
acknowledges and agrees that notwithstanding the date, time or creation of any
Liens securing any of the Obligations under this Security Agreement or the
Security Documents, the Obligations shall be equally and ratably secured by the
Liens of this Security Agreement and the Security Documents and all Liens
securing any of the Obligations (and any proceeds received from the enforcement
of any such Liens) shall be for the equal and ratable benefit of all Secured
Parties and shall be applied as provided in clause (a) above.  Each Secured Party, by its acceptance of the
benefits hereunder and of the Security Documents, hereby agrees for the benefit
of the other Secured Parties that, to the extent any additional or substitute
collateral for any of the Obligations is delivered by a Grantor to or for the
benefit of any Secured Party, such collateral shall be subject to the
provisions of this clause (d).

 

20

 

(e)           Each of the Secured Parties hereby
agrees not to challenge or question in any proceeding the validity or enforceability
of any Security Document (in each case as a whole or any term or provision contained
therein) or the validity of any Lien or financing statement in favor of the
Collateral Agent for the benefit of the Secured Parties as provided in this
Security Agreement and the other Security Documents, or the relative priority
of any such Lien.

 

(f)            Upon any sale of the Collateral by
the Collateral Agent (including pursuant to a power of sale granted by statute
or under a judicial proceeding), the receipt of the Collateral Agent or of the
officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral or Mortgaged Property so sold and such purchaser
or purchasers shall not be obligated to see to the application of any part of
the purchase money paid over to the Collateral Agent or such officer or be
answerable in any way for the misapplication thereof.

 

5.5.               Code
and Other Remedies.  If an Event of
Default shall occur and be continuing and subject to the terms of the
Intercreditor Agreement, the Collateral Agent may exercise in respect of the
Collateral, in addition to all 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 NY UCC or any other applicable law and also may 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 exchange broker’s board
or at any of the Collateral Agent’s offices or elsewhere, for cash, on credit
or for future delivery, at such price or prices and upon such other terms as
are commercially reasonable irrespective of the impact of any such sales on the
market price of the Collateral.  The
Collateral Agent shall be authorized at any such sale (if it deems it advisable
to do so) to restrict the prospective bidders or purchasers of Collateral to Persons
who will represent and agree that they are purchasing the Collateral for their
own account for investment and not with a view to the distribution or sale
thereof, and, upon consummation of any such sale, the Collateral Agent shall
have the right to assign, transfer and deliver to the purchaser or purchasers
thereof the Collateral so sold.  Each
purchaser at any such sale shall hold the property sold absolutely free from
any claim or right on the part of any Grantor, and each Grantor hereby waives
(to the extent permitted by law) all rights of redemption, stay and/or appraisal
that it now has or may at any time in the future have under any rule of
law or statute now existing or hereafter enacted.  The Collateral Agent or any Secured Party
shall have the right upon any such public sale, and, to the extent permitted by
law, upon any such private sale, to purchase the whole or any part of the
Collateral so sold, and the Collateral Agent or such Secured Party may subject
to (x) the satisfaction in full in cash of all payments due pursuant to
the Indenture, and (y) the ratable satisfaction of the Obligations in
accordance with the Indenture pay the purchase price by crediting the amount
thereof against the Obligations.  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.  To the extent permitted by law, each Grantor
hereby waives any claim against the Collateral Agent arising by reason of the
fact that the price at which any Collateral may have been sold at such a
private sale was less than the price that might have been obtained at a public
sale, even if the Collateral

 

21

 

Agent accepts the first offer received and does not
offer such Collateral to more than one offeree. 
Each Grantor further agrees, at the Collateral Agent’s request, to
assemble the Collateral and make it available to the Collateral Agent at places
which the Collateral Agent shall reasonably select, whether at such Grantor’s
premises or elsewhere. The Collateral Agent shall apply the net proceeds of any
action taken by it pursuant to this subsection 5.5 in accordance with the provisions
of subsection 5.4.

 

5.6.            Deficiency. 
Each Grantor shall remain liable for any deficiency if the proceeds of
any sale or other disposition of the Collateral or Mortgaged Property are
insufficient to pay its Obligations and the fees and disbursements of any
attorneys employed by the Collateral Agent or any Secured Party to collect such
deficiency.

 

5.7.            Amendments, etc. with Respect to the
Obligations; Waiver of Rights. Each Grantor shall remain obligated hereunder
notwithstanding that, without any reservation of rights against any Grantor and
without notice to or further assent by any Grantor, (a) any demand for
payment of any of the Obligations made by the Collateral Agent or any other
Secured Party may be rescinded by such party and any of the Obligations
continued, (b) the Obligations, or the liability of any other party upon
or for any part thereof, or any collateral security or guarantee therefor or
right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Collateral Agent or any other Secured
Party, (c) the Indenture, Notes, the other Note Documents, the Other Pari
Passu Lien Agreements and any other documents executed and delivered in
connection therewith may be amended, modified, supplemented or terminated, in
whole or in part, and (d) any collateral security, guarantee or right of
offset at any time held by the Collateral Agent or any other Secured Party for
the payment of the Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Collateral Agent nor any other
Secured Party shall have any obligation to protect, secure, perfect or insure
any Lien at any time held by it as security for the Obligations or for this
Security Agreement or any property subject thereto.  When making any demand hereunder against any
Grantor, the Collateral Agent or any other Secured Party may, but shall be
under no obligation to, make a similar demand on the Company or any Grantor or
grantor, and any failure by the Collateral Agent or any other Secured Party to
make any such demand or to collect any payments from the Company or any Grantor
or grantor or any release of the Company or any Grantor or grantor shall not
relieve any Grantor in respect of which a demand or collection is not made or
any Grantor not so released of its several obligations or liabilities
hereunder, and shall not impair or affect the rights and remedies, express or
implied, or as a matter of law, of the Collateral Agent or any other Secured
Party against any Grantor.  For the purposes
hereof “demand” shall include the commencement and continuance of any legal
proceedings.

 

5.8.            Suretyship Waivers by the Grantors. 
Each Grantor waives promptness, diligence, presentment, demand, notice,
protest, notice of acceptance of this Security Agreement, notice of loans made,
credit extended, Collateral received or delivered, notice of any Obligations
incurred and any other notice with respect to any of the Obligations and this Security
Agreement and any requirement that any Secured Party protect, secure, perfect
or insure against any Lien, or any property subject thereto, or exhaust any
right or take any action against any Loan Party or any other Person (including
any other Grantor) or any Collateral securing the 

 

22

 

Obligations
or other action taken in reliance hereon and all other demands and notices of
any description.  With respect to both
the Obligations and the Collateral, each Grantor assents to any extension or
postponement of the time of payment or any other indulgence, to any
substitution, exchange or release of or failure to perfect any security
interest in any Collateral, to the addition or release of any party or person
primarily or secondarily liable, to the acceptance of partial payment thereon
and the settlement, compromising or adjusting of any thereof, all in such manner
and at such time or times as the Collateral Agent may deem advisable.  Each Grantor further waives any and all other
suretyship defenses and all defenses which may be available by virtue of any
valuation, stay, moratorium law, or other similar law now or hereafter in
effect.

 

5.9.            Marshaling.  Neither the
Collateral Agent nor any Secured Party shall be required to marshal any present
or future collateral security (including but not limited to the Collateral)
for, or other assurances of payment of, the Obligations or any of them or to
resort to such collateral security or other assurances of payment in any particular
order, and all of the rights and remedies of the Collateral Agent or any
Secured Party hereunder and of the Collateral Agent or any Secured Party in
respect of such collateral security and other assurances of payment shall be
cumulative and in addition to all other rights and remedies, however existing
or arising.  To the extent that it
lawfully may, each Grantor hereby agrees that it will not invoke any law
relating to the marshaling of collateral which might cause delay in or impede
the enforcement of the Collateral Agent’s rights and remedies under this
Security Agreement or under any other instrument creating or evidencing any of
the Obligations or under which any of the Obligations is outstanding or by
which any of the Obligations is secured or payment thereof is otherwise assured,
and, to the extent that it lawfully may, each Grantor hereby irrevocably waives
the benefits of all such laws.

 

6.             The Collateral Agent.

 

6.1.            Collateral Agent’s Appointment as
Attorney-in-Fact, etc.

 

(a)           Each Grantor hereby appoints, which
appointment is irrevocable and coupled with an interest, effective upon and
during occurrence of an Event of Default, the Collateral Agent and any officer
or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of such Grantor
and in the name of such Grantor or otherwise, for the purpose of carrying out
the terms of this Security Agreement and the other Security Documents, to take
any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of
this Security Agreement and the other Security Documents, and, without limiting
the generality of the foregoing, each Grantor hereby gives the Collateral Agent
the power and right, on behalf of such Grantor, either in the Collateral Agent’s
name or in the name of such Grantor or otherwise, without assent by such
Grantor, to do any or all of the following, in each case after and during the
occurrence of an Event of Default and after written notice by the Collateral
Agent of its intent to do so (it being understood that the Collateral Agent has
no obligation to take any such action):

 

(i)            take possession of and endorse and
collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Account or with respect to any other Collateral
or Mortgaged Property and file any claim or take any other 

 

23

 

action or proceeding in
any court of law or equity or otherwise deemed appropriate by the Collateral
Agent for the purpose of collecting any and all such moneys due under any
Account or with respect to any other Collateral or Mortgaged Property whenever
payable and exercise all of such Grantor’s rights and remedies to collect any
Account;

 

(ii)              in the case of any Intellectual Property,
execute and deliver, and have recorded, any and all agreements, instruments,
documents and papers as the Collateral Agent may request to evidence the
Collateral Agent’s and the Secured Parties’ Security Interest in such
Intellectual Property and the goodwill and general intangibles of such Grantor
relating thereto or represented thereby;

 

(iii)             pay or discharge taxes and Liens levied
or placed on or threatened against the Collateral;

 

(iv)            execute, in connection with any sale
provided for in subsection 5.5 or in any other Security Document, any
endorsements, assignments or other instruments of conveyance or transfer with
respect to the Collateral or Mortgaged Property;

 

(v)             obtain and adjust insurance required to
be maintained by such Grantor or paid to the Collateral Agent pursuant to
subsection 4.4 or pursuant to any other Security Document; and

 

(vi)            direct any party liable for any payment
under any of the Collateral or Mortgaged Property to make payment of any and
all moneys due or to become due thereunder directly to the Collateral Agent or
as the Collateral Agent shall direct;

 

(vii)           ask or demand for, collect and receive
payment of and receipt for, any and all moneys, claims and other amounts due or
to become due at any time in respect of or arising out of any Collateral or
Mortgaged Property;

 

(viii)          sign and endorse any invoices, freight or
express bills, bills of lading, storage or warehouse receipts, drafts against
debtors, assignments, verifications, notices and other documents in connection
with any of the Collateral or Mortgaged Property, endorsing any such Grantor’s
name upon any items of payment in respect of Accounts or otherwise received by
the Collateral Agent and deposit the same in the Collateral Agent’s account for
application to the Obligations, and endorsing any such Grantor’s name upon any
chattel paper, document, instrument, invoice, or similar document or agreement
relating to any Account or any goods pertaining thereto or any other Collateral,
including any negotiable or non-negotiable documents;

 

(ix)             commence and prosecute any suits, actions
or proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or Mortgaged Property or any portion thereof and to
enforce any other right in respect of any Collateral or Mortgaged Property;

 

(x)              defend any suit, action or proceeding
brought against such Grantor with respect to any Collateral or Mortgaged
Property (with such Grantor’s consent to the 

 

24

 

extent such action or its
resolution could materially affect such Grantor or any of its Affiliates in any
manner other than with respect to its continuing rights in such Collateral or
Mortgaged Property);

 

(xi)             settle, compromise or adjust any such
suit, action or proceeding and, in connection therewith, give such discharges
or releases as the Collateral Agent may deem appropriate (with such Grantor’s
consent to the extent such action or its resolution could materially affect
such Grantor or any of its Affiliates in any manner other than with respect to
its continuing rights in such Collateral or Mortgaged Property) and discharge
or release any Account;

 

(xii)            assign any Copyright, Patent or Trademark
(along with the goodwill of the business to which any such Copyright, Patent or
Trademark pertains), throughout the world for such term or terms, on such
conditions, and in such manner, as the Collateral Agent shall in its reasonable
discretion determine;

 

(xiii)           settle, adjust, compromise, extend or
renew an Account;

 

(xiv)           notify the post office authorities to
change the address for delivery of remittances from account debtors or other
obligors in respect of Accounts or other proceeds of Collateral to an address
designated by the Administrative Agent, and open and dispose of all mail
addressed to any such Grantor and handle and store all mail relating to the Accounts;

 

(xv)     take control in any manner of any item of
payment in respect of Accounts or otherwise received in or for deposit in the
applicable deposit account subject to a Control Agreement or otherwise received
by the Collateral Agent;

 

(xvi)           clear Inventory the purchase of which was
financed with proceeds of the Notes through US Customs or foreign export
control authorities in any Grantor’s name, the Collateral Agent’s name or the
name of the Collateral Agent’s designee, and to sign and deliver to customs
officials powers of attorney in any Grantor’s name for such purpose, and to
complete in any Grantor’s or the Collateral Agent’s name, any order, sale or
transaction, obtain the necessary documents in connection therewith and collect
the proceeds thereof;

 

(xvii)          have access to any lockbox or postal box
into which remittances from account debtors or other obligators in respect of
Accounts or other proceeds of Collateral are sent or received; and

 

(xviii)         generally, sell, transfer, pledge and
make any agreement with respect to or otherwise deal with any of the Collateral
or Mortgaged Property as fully and completely as though the Collateral Agent
were the absolute owner thereof for all purposes, and do, at the Collateral
Agent’s option and such Grantor’s expense, at any time, or from time to time,
all acts and things that the Collateral Agent deems necessary to protect, preserve
or realize upon the Collateral or Mortgaged Property and the Collateral Agent’s
and the Secured Parties’ Security Interests therein and to effect the intent of
this Security 

 

25

 

Agreement or the other
Security Documents, all as fully and effectively as such Grantor might do.

 

Anything in this subsection 6.1(a) to the contrary
notwithstanding, the Collateral Agent agrees that it will not exercise any
rights under the power of attorney provided for in this subsection 6.1(a) unless
an Event of Default shall have occurred and be continuing.

 

(b)           If any Grantor fails to perform or comply
with any of its agreements contained herein or in any other Security Document,
the Collateral Agent, at its option, but without any obligation so to do, may
perform or comply, or otherwise cause performance or compliance, with such agreement.

 

(c)           The expenses of the Collateral Agent
incurred in connection with actions undertaken as provided in this subsection
6.1, together with interest thereon at a rate per annum equal to 7.625%, from
the date of payment by the Collateral Agent to the date reimbursed by the
relevant Grantor, shall be payable by such Grantor to the Collateral Agent on
demand.

 

(d)           Each Grantor hereby ratifies all that
said attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies
contained in this Security Agreement are coupled with an interest and are
irrevocable until this Security Agreement is terminated and the Security
Interests created hereby are released.

 

6.2.            Duty of Collateral Agent. The Collateral Agent’s sole duty with respect
to the custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the NY UCC or otherwise, shall be to
deal with it in the same manner as the Collateral Agent deals with similar
property for its own account.  The Collateral
Agent shall be deemed to have exercised reasonable care in the custody and
preservation of any Collateral or Mortgaged Property in its possession if such
Collateral or Mortgaged Property is accorded treatment substantially equal to
that which the Collateral Agent accords its own property.  Neither the Collateral Agent, any Secured
Party nor any of their respective officers, directors, employees or agents
shall be liable for failure to demand, collect or realize upon any of the
Collateral or Mortgaged Property or for any delay in doing so or shall be under
any obligation to sell or otherwise dispose of any Collateral or Mortgaged
Property upon the request of any Grantor or any other Person or to take any
other action whatsoever with regard to the Collateral, Mortgaged Property or
any part thereof.  The powers conferred
on the Collateral Agent and the Secured Parties hereunder or pursuant to the
other Security Documents are solely to protect the Collateral Agent’s and the
Secured Parties’ interests in the Collateral and Mortgaged Property and shall
not impose any duty upon the Collateral Agent or any Secured Party to exercise
any such powers.  The Collateral Agent
and the Secured Parties shall be accountable only for amounts that they
actually receive as a result of the exercise of such powers, and neither they
nor any of their officers, directors, employees or agents shall be responsible
to any Grantor for any act or failure to act hereunder or pursuant to the other
Security Documents, except for their own gross negligence or willful misconduct.

 

Beyond the
exercise of reasonable care in the custody thereof, the Collateral Agent shall
have no duty as to any Collateral or Mortgaged Property in its possession or
control or in the possession or control of any agent or bailee or any income
thereon or as to preservation of rights 

 

26

 

against prior
parties or any other rights pertaining thereto and the Collateral Agent shall
not be responsible for filing any financing or continuation statements or
recording any documents or instruments in any public office at any time or
times or otherwise perfecting or maintaining the perfection of any security
interest in the Collateral or Mortgaged Property.  The Collateral Agent shall not be liable or
responsible for any loss or diminution in the value of any of the Collateral or
Mortgaged Property, by reason of the act or omission of any carrier, forwarding
agency or other agent or bailee selected by the Collateral Agent in good faith.

 

The Collateral
Agent is hereby authorized to enter into a Collateral Agency Agreement with
Corporation Service Company, Bank of America, N.A., as ABL Secured Party and Clean Harbors Environmental Services, Inc.
(as amended, restated, supplemented or modified from time to time, the “Collateral
Agency Agreement”) for the purpose of engaging Corporation Service Company
to act as collateral agent with respect to Rolling Stock for the benefit of the
Collateral Agent.

 

The Collateral
Agent shall not be responsible for the existence, genuineness or value of any
of the Collateral or Mortgaged Property or for the validity, perfection,
priority or enforceability of the Liens in any of the Collateral or Mortgaged
Property, whether impaired by operation of law or by reason of any of any
action or omission to act on its part hereunder, except to the extent such
action or omission constitutes gross negligence, bad faith or willful
misconduct on the part of the Collateral Agent, for the validity or sufficiency
of the Collateral or Mortgaged Property or any agreement or assignment
contained therein, for the validity of the title of the Company to the
Collateral or Mortgaged Property, for insuring the Collateral or Mortgaged
Property or for the payment of taxes, charges, assessments or Liens upon the
Collateral or otherwise as to the maintenance of the Collateral or Mortgaged
Property.

 

Notwithstanding
anything in this Security Agreement to the contrary and for the avoidance of
doubt, the Collateral Agent shall have no duty to act outside of the United
States in respect of any Collateral located in the jurisdiction other than the
United States.

 

6.3.            Authority of Collateral Agent. 
Each Grantor acknowledges that the rights and responsibilities of the
Collateral Agent under this Security Agreement or the other Security Documents
with respect to any action taken by the Collateral Agent or the exercise or
non-exercise by the Collateral Agent of any option, voting right, request, judgment
or other right or remedy provided for herein or resulting or arising out of
this Security Agreement or the other Security Documents shall, as between the
Collateral Agent and the Secured Parties, be governed by the Indenture and by
such other agreements with respect thereto as may exist from time to time among
them, but, as between the Collateral Agent and the Grantors, the Collateral
Agent shall be conclusively presumed to be acting as agent for the Secured
Parties with full and valid authority so to act or refrain from acting, and no
Grantor shall be under any obligation, or entitlement, to make any inquiry respecting
such authority.

 

6.4.            Security Interest Absolute. 
All rights of the Collateral Agent hereunder and under the other
Security Documents, the security interest and all obligations of the Grantors
hereunder and under the other Security Documents shall be absolute and unconditional.

 

27

 

6.5.            Continuing Security Interest; Assignments
Under the Indenture;
Release.

 

(a)           This Security Agreement and the other
Security Documents shall remain in full force and effect and be binding in
accordance with and to the extent of its terms upon each Grantor and the
successors and assigns thereof and shall inure to the benefit of the Collateral
Agent and the other Secured Parties and their respective successors, indorsees,
transferees and assigns until the Final Date. 
In addition, the security interests granted hereunder shall terminate
and be released, in whole or in part, (i) as to Note Obligations under the
Indenture, as provided in the Indenture and (ii) as to the Other Pari
Passu Lien Obligations under any Other Pari Passu Lien Agreement, as provided
in such Other Pari Passu Lien Agreement.

 

(b)           In connection with any termination or
release pursuant to paragraph (a), the Collateral Agent shall execute and
deliver to any Grantor, at such Grantor’s expense, all documents that such
Grantor shall reasonably request to evidence such termination or release.  Any execution and delivery of documents
pursuant to this subsection 6.5 shall be without recourse to or warranty by the
Collateral Agent.

 

6.6.            Reinstatement. 
This Security Agreement and the other Security Documents shall continue
to be effective, or be reinstated, as the case may be, if at any time payment,
or any part thereof, of any of the Obligations is rescinded or must otherwise
be restored or returned by the Collateral Agent or any other Secured Party upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Company or any other Credit Party, or upon or as a result of the appointment of
a receiver, intervenor or conservator of, or trustee or similar officer for,
the Company or any other Credit Party or any substantial part of its property,
or otherwise, all as though such payments had not been made.

 

7.             Collateral Agent As Agent.

 

(a)           U.S. Bank National Association has been
appointed to act as Collateral Agent under the Indenture by the Holders and, by
their acceptance of the benefits hereof and the other Security Documents, the
other Secured Parties.  The Collateral
Agent shall be obligated, and shall have the right hereunder and under the
other Security Documents, to make demands, to give notices, to exercise or
refrain from exercising any rights, and to take or refrain from taking any
action (including the release or substitution of Collateral or Mortgaged
Property), solely in accordance with this Security Agreement, the other
Security Documents, the Indenture and the Intercreditor Agreement, provided that, except as otherwise expressly
provided in the Indenture or the other Note Documents, the Collateral Agent
shall exercise, or refrain from exercising, any remedies provided for herein,
including in Section 5, in accordance with the instructions of the
Required Secured Parties.  In furtherance
of the foregoing provisions of this subsection 7(a), each Secured Party, by its
acceptance of the benefits hereof, agrees that it shall have no right individually
to realize upon any of the Collateral hereunder or Mortgaged Property, it being
understood and agreed by such Secured Party that all rights and remedies
hereunder or pursuant to the other Security Documents, may be exercised solely
by the Collateral Agent for the benefit of the Secured Parties in accordance
with the terms of this subsection 7(a).

 

(b)           The Collateral Agent shall at all times
be the same Person that is the Trustee

 

28

 

under
the Indenture.  Written notice of
resignation by the Trustee pursuant to subsection 7.8 of the Indenture shall
also constitute notice of resignation as Collateral Agent under this Security
Agreement and the other Security Documents; removal of the Collateral Agent
shall also constitute removal as Collateral Agent under this Security Agreement
or the other Security Documents; and appointment of a successor Trustee
pursuant to subsection 7.8 of the Indenture shall also constitute appointment
of a successor Collateral Agent under this Security Agreement and the other
Security Documents.  Upon the acceptance
of any appointment as Collateral Agent under subsection 7.8 of the Indenture by
a successor Collateral Agent, that successor Collateral Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring or removed Collateral Agent under this Security Agreement and
the other Security Documents, and the retiring or removed Collateral Agent
under this Security Agreement and the other Security Documents shall promptly (i) transfer
to such successor Collateral Agent all sums, securities and other items of
Collateral held hereunder, together with all records and other documents
necessary or appropriate in connection with the performance of the duties of
the successor Collateral Agent under this Security Agreement and the other
Security Documents, and (ii) execute and deliver to such successor
Collateral Agent or otherwise authorize the filing of such amendments to
financing statements and take such other actions, as may be necessary or appropriate
in connection with the assignment to such successor Collateral Agent of the
Security Interests created hereunder, whereupon such retiring or removed
Collateral Agent shall be discharged from its duties and obligations under this
Security Agreement and the other Security Documents.  After any retiring or removed Collateral
Agent’s resignation or removal hereunder as Collateral Agent, the provisions of
this Security Agreement and the other Security Documents shall inure to its
benefit as to any actions taken or omitted to be taken by it under this
Security Agreement and the other Security Documents while it was Collateral
Agent hereunder.  Notwithstanding anything
to the contrary, upon the occurrence of Discharge of Obligations with respect
to the Indenture, the Required Secured Parties shall be entitled to appoint a
successor Collateral Agent under this Security Agreement and the other Security
Documents.

 

8.             Miscellaneous.

 

8.1.            Amendments in Writing. 
None of the terms or provisions of this Security Agreement may be waived,
amended, supplemented or otherwise modified except by a written instrument
executed by the affected Grantor and the Collateral Agent in accordance with Section 9.2
of the Indenture and by each other Authorized Representative to the extent required
by (and in accordance with) each Other Pari Passu Lien Agreement.

 

8.2.            Notices. 
All notices, requests and demands pursuant hereto shall, if to the
Collateral Agent, Trustee or any Holder, be made in accordance with Sections
14.2 of the Indenture (whether or not then in effect) and if to any Authorized
Representative or holders of any Other Pari Passu Lien Obligation, to the
address specified in the applicable Other Pari Passu Lien Joinder
Agreement.  All communications and
notices hereunder to any Subsidiary Grantor shall be given to it in care of the
Company at the Company’s address set forth in Section 14.2 of the
Indenture (whether or not then in effect).

 

8.3.            No Waiver by Course of Conduct;
Cumulative Remedies.  Neither the Collateral Agent nor any Secured
Party shall by any act (except by a written instrument 

 

29

 

pursuant
to subsection 8.1 hereof), delay, indulgence, omission or otherwise be deemed
to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default or in any breach of any of the terms and conditions
hereof.  No failure to exercise, nor any
delay in exercising, on the part of the Collateral Agent or any other Secured
Party, any right, power or privilege hereunder shall operate as a waiver
thereof.  No single or partial exercise
of any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.  A waiver by the Collateral Agent or any other
Secured Party of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy that the Collateral Agent or such
other Secured Party would otherwise have on any future occasion.  The rights, remedies, powers and privileges
herein provided are cumulative, may be exercised singly or concurrently and are
not exclusive of any other rights or remedies provided by law.

 

8.4.            Enforcement Expenses; Indemnification.

 

(a)           Each Grantor agrees to pay any and all
expenses (including all reasonable fees and disbursements of counsel) that may
be paid or incurred by any Secured Party in enforcing, or obtaining advice of
counsel in respect of, any rights with respect to, or collecting, any or all of
the Obligations and/or enforcing any rights with respect to, or collecting
against, such Grantor under this Security Agreement or any other Security
Document.

 

(b)           Each Grantor agrees to pay, and to save
the Collateral Agent and the Secured Parties harmless from, any and all
liabilities with respect to, or resulting from any delay in paying, any and all
stamp, excise, sales or other taxes which may be payable or determined to be
payable with respect to any of the Collateral or the Mortgaged Property or in
connection with any of the transactions contemplated by this Security Agreement
or any other Security Document.

 

(c)           Each Grantor agrees to pay, and to save
the Collateral Agent and the Secured Parties harmless from, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Security Agreement or any other Security Document to the extent the
Company would be required to do so pursuant to subsection 7.7 of the Indenture
(whether or not then in effect).

 

(d)           The agreements in this subsection 8.4
shall survive repayment of the Obligations and all other amounts payable under
the Indenture, Notes, the other Note Documents and the Other Pari Passu Lien
Agreements.

 

8.5.            Successors and Assigns. 
The provisions of this Security Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that no Grantor may assign, transfer or
delegate any of its rights or obligations under this Security Agreement except
pursuant to a transaction permitted by the Indenture and each Other Pari Passu
Lien Agreement.

 

8.6.            Counterparts. 
This Security Agreement may be executed by one or more of the parties to
this Security Agreement on any number of separate counterparts (including 

 

30

 

by
facsimile or other electronic transmission), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of a signature
page of this Security Agreement by telecopy or other electronic means
shall be effective as delivery of a manually executed counterpart of this
Security Agreement.  A set of the copies
of this Security Agreement signed by all the parties shall be lodged with the
Collateral Agent and the Company.

 

8.7.            Severability. 
Any provision of this Security Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. 
The parties hereto shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

 

8.8.            Section Headings. 
The Section headings used in this Security Agreement are for
convenience of reference only and are not to affect the construction hereof or
be taken into consideration in the interpretation hereof.

 

8.9.            Integration. 
This Security Agreement, together with the other Note Documents, represents
the agreement of each of the Grantors with respect to the subject matter hereof
and there are no promises, undertakings, representations or warranties by the
Collateral Agent or any other Secured Party relative to the subject matter
hereof not expressly set forth or referred to herein, in the other Note
Documents or in the Other Pari Passu Lien Agreements.

 

8.10.          GOVERNING LAW. 
THIS SECURITY AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE
GENERAL OBLIGATIONS LAWS OF THE STATE OF NEW YORK).

 

8.11.          Submission to Jurisdiction Waivers. 
Each Grantor hereby irrevocably and unconditionally:

 

(a)           submits for itself and its property in
any legal action or proceeding relating to this Security Agreement, the other
Note Documents to which it is a party and any Other Pari Passu Lien Agreement,
or for recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York
located in the State, County and City of New York, the courts of the United
States of America for the Southern District of New York, and appellate courts
from any thereof;

 

(b)           consents that any such action or
proceeding may be brought in such courts and waives any objection that it may
now or hereafter have to the venue of any such action or proceeding in any such
court or that such action or proceeding was brought in an

 

31

 

inconvenient court and
agrees not to plead or claim the same;

 

(c)           agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Grantor at its address referred to in subsection 8.2 or at
such other address of which the Collateral Agent shall have been notified pursuant
thereto;

 

(d)           agrees that nothing herein shall affect
the right of the Collateral Agent or any other Secured Party to effect service
of process in any other manner permitted by law or shall limit the right of the
Collateral Agent or any Secured Party to sue in any other jurisdiction; and

 

(e)           waives, to the maximum extent not
prohibited by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this subsection 8.11 any special,
exemplary, punitive or consequential damages.

 

8.12.             Acknowledgments. 
Each Grantor hereby acknowledges that:

 

(a)           it has been advised by counsel in the
negotiation, execution and delivery of this Security Agreement, the other Note
Documents and the Other Pari Passu Lien Agreements to which it is a party;

 

(b)           neither the Collateral Agent nor any
other Secured Party has any fiduciary relationship with or duty to any Grantor
arising out of or in connection with this Security Agreement, any of the other
Note Documents or the Other Pari Passu Lien Agreements and the relationship
between the Grantors, on the one hand, and the Collateral Agent and the other
Secured Parties, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor; and

 

(c)           no joint venture is created hereby or by
the other Note Documents or the Other Pari Passu Lien Agreements or otherwise
exists by virtue of the transactions contemplated hereby among the Holders and
any other Secured Party or among the Grantors and the Holders and any other Secured
Party.

 

8.13.             Additional Grantors. 
Each Subsidiary of the Company that is required to become a party to
this Security Agreement pursuant to Section 4.20 of the Indenture and/or
the equivalent provision of any Other Pari Passu Lien Agreement shall become a
Grantor, with the same force and effect as if originally named as a Grantor
herein, for all purposes of this Security Agreement upon execution and delivery
by such Subsidiary of a Supplement substantially in the form of Annex 1
hereto.  The execution and delivery of
any instrument adding an additional Grantor as a party to this Security
Agreement shall not require the consent of any other Grantor hereunder.  The rights and obligations of each Grantor
hereunder shall remain in full force and effect notwithstanding the addition of
any new Grantor as a party to this Security Agreement.

 

32

 

8.14.             Delivery of ABL Priority Collateral. 
Notwithstanding anything herein to the contrary, prior to the Discharge
of ABL Obligations (as such term is defined in the Intercreditor Agreement), (i) the
requirements of this Security Agreement to endorse, assign or deliver
Collateral constituting ABL Priority Collateral (as such term is defined in the
Intercreditor Agreement) to the Collateral Agent shall be deemed satisfied by
endorsement, assignment or delivery of such ABL Priority Collateral to the
collateral agent for the Credit Agreement and (ii) any endorsement, assignment
or delivery to the collateral agent for the Credit Agreement with respect to
the ABL Priority Collateral shall be deemed an endorsement, assignment or
delivery to the Collateral Agent for all purposes hereunder.

 

8.15.             Intercreditor Agreement. 
Notwithstanding
anything herein to the contrary, the liens and security interests granted to
the Collateral Agent pursuant to this Security Agreement and the exercise of
any right or remedy by the Collateral Agent hereunder, in each case, with
respect to the Collateral are subject to the limitations and provisions of the
Intercreditor Agreement.  In the event of
any conflict between the terms of the Intercreditor Agreement and the terms of
this Security Agreement with respect to the Collateral, the terms of the Intercreditor
Agreement shall govern and control.

 

8.16.             WAIVER OF JURY TRIAL. 
EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY
IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS SECURITY AGREEMENT, ANY
OTHER NOTE DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

8.17.             Other Pari Passu Lien Obligations. 
On or after the date hereof and so long as expressly permitted by the
Indenture and any Other Pari Passu Lien Agreement then outstanding, the Company
may from time to time designate Indebtedness at the time of incurrence to be
secured on a pari passu basis with the Note Obligations as Other Pari Passu
Lien Obligations hereunder by delivering to the Collateral Agent and each
Authorized Representative (a) a certificate signed by an Authorized
Officer of the Company (i) identifying the obligations so designated and
the initial aggregate principal amount or face amount thereof, (ii) stating
that such obligations are designated as Other Pari Passu Lien Obligations for
purposes hereof, (iii) representing that such designation of such
obligations as Other Pari Passu Lien Obligations complies with the terms of the
Indenture and any Other Pari Passu Lien Agreement then outstanding and (iv) specifying
the name and address of the Authorized Representative for such obligations and (b) a
fully executed Other Pari Passu Lien Secured Party Consent (in the form
attached as Annex 4).  Each Authorized
Representative agrees that upon the satisfaction of all conditions set forth in
the preceding sentence, the Collateral Agent shall act as agent for the benefit
of all Secured Parties, including without limitation, any Secured Parties that
hold any such Other Pari Passu Lien Obligations, and each Authorized
Representative agrees to the appointment, and acceptance of the appointment, of
the Collateral Agent as agent for the holders of such Other Pari Passu Lien
Obligations as set forth in each Other Pari Passu Lien Secured Party Consent
and agrees, on behalf of itself and each Secured Party it represents, to be
bound by this Security Agreement and the Intercreditor Agreement.

 

33

 

8.18.             Incorporation by Reference.  In connection with its execution and acting
hereunder Collateral Agent is entitled to all rights, privileges, benefits,
protections, immunities and indemnities provided to it under the Indenture.

 

34

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Security Agreement to
be duly executed and delivered as of the date first above written.

 

	
   

  	
   

  	
  CLEAN
  HARBORS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  /s/
  James M. Rutledge

  
	
   

  	
   

  	
  Name:

  	
  James
  M. Rutledge

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and Chief Financial
  Officer

  

 

Signature Page to Security
Agreement

 

 

	
   

  	
   

  	
  SUBSIDIARY
  GRANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ALTAIR DISPOSAL SERVICES, LLC

  
	
   

  	
   

  	
  BATON ROUGE DISPOSAL, LLC

  
	
   

  	
   

  	
  BRIDGEPORT DISPOSAL, LLC

  
	
   

  	
   

  	
  CH INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
   

  	
  CLEAN HARBORS (MEXICO), INC.

  
	
   

  	
   

  	
  CLEAN HARBORS ANDOVER, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS ANTIOCH, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS ARAGONITE, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS ARIZONA, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS BATON ROUGE, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS BDT, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS BUTTONWILLOW, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS CHATTANOOGA, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS CLIVE, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS COFFEYVILLE, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS COLFAX, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS DEER TRAIL, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS DEVELOPMENT, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS DISPOSAL
  SERVICES, INC.

  
	
   

  	
   

  	
  CLEAN HARBORS EL DORADO, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS ENVIRONMENTAL
  SERVICES, INC.

  
	
   

  	
   

  	
  CLEAN HARBORS FLORIDA, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS GRASSY MOUNTAIN,
  LLC

  
	
   

  	
   

  	
  CLEAN HARBORS KANSAS, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS KINGSTON FACILITY
  CORPORATION

  
	
   

  	
   

  	
  CLEAN HARBORS LAUREL, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS LONE MOUNTAIN,
  LLC

  
	
   

  	
   

  	
  CLEAN HARBORS LONE STAR CORP.

  
	
   

  	
   

  	
  CLEAN HARBORS LOS ANGELES, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS OF BALTIMORE,
  INC.

  
	
   

  	
   

  	
  CLEAN HARBORS OF BRAINTREE,
  INC.

  
	
   

  	
   

  	
  CLEAN HARBORS OF CONNECTICUT,
  INC.

  
	
   

  	
   

  	
  CLEAN HARBORS OF NATICK, INC.

  
	
   

  	
   

  	
  CLEAN HARBORS OF TEXAS, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS PECATONICA, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS PPM, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS RECYCLING
  SERVICES OF CHICAGO, LLC

  
	
   

  	
   

  	
  (list continued on next page)

  

 

 

	
   

  	
   

  	
  CLEAN HARBORS RECYCLING
  SERVICES OF OHIO, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS REIDSVILLE, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS SAN JOSE, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS SERVICES, INC.

  
	
   

  	
   

  	
  CLEAN HARBORS TENNESSEE, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS WESTMORLAND, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS WHITE CASTLE, LLC

  
	
   

  	
   

  	
  CLEAN HARBORS WILMINGTON, LLC

  
	
   

  	
   

  	
  CROWLEY DISPOSAL, LLC

  
	
   

  	
   

  	
  DISPOSAL PROPERTIES, LLC

  
	
   

  	
   

  	
  GSX DISPOSAL, LLC

  
	
   

  	
   

  	
  HARBOR MANAGEMENT CONSULTANTS,
  INC.

  
	
   

  	
   

  	
  HILLIARD DISPOSAL, LLC

  
	
   

  	
   

  	
  MURPHY’S WASTE OIL SERVICE,
  INC.

  
	
   

  	
   

  	
  ROEBUCK DISPOSAL, LLC

  
	
   

  	
   

  	
  SAWYER DISPOSAL SERVICES, LLC

  
	
   

  	
   

  	
  SERVICE CHEMICAL, LLC

  
	
   

  	
   

  	
  SPRING GROVE RESOURCE RECOVERY,
  INC.

  
	
   

  	
   

  	
  TULSA DISPOSAL, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ James M. Rutledge

  
	
   

  	
   

  	
  Name: James M.
  Rutledge

  
	
   

  	
   

  	
  Title: Executive
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PLAQUEMINE REMEDIATION
  SERVICES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ William Geary

  
	
   

  	
   

  	
  Name: William
  Geary

  
	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CLEAN HARBORS FINANCIAL
  SERVICES COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ James M. Rutledge

  
	
   

  	
   

  	
  Name: James M.
  Rutledge

  
	
   

  	
   

  	
  Title: Trustee

  

 

(signatures
continued on next page)

 

 

	
   

  	
   

  	
  CLEAN HARBORS DEER PARK, L.P.

  
	
   

  	
   

  	
  CLEAN HARBORS LAPORTE, L.P.

  
	
   

  	
   

  	
  HARBOR INDUSTRIAL SERVICES
  TEXAS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Clean Harbors of
  Texas, LLC, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ James M. Rutledge

  
	
   

  	
   

  	
   

  	
  Name:
  James M. Rutledge

  
	
   

  	
   

  	
   

  	
  Title:
  Executive Vice President

  

 

[Security Agreement]

 

 

	
   

  	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION,
  AS COLLATERAL AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Karen R. Beard

  
	
   

  	
   

  	
   

  	
  Name:
  Karen R. Beard

  
	
   

  	
   

  	
   

  	
  Title:
  Vice President

  

 

[Security Agreement]

 

 

ANNEX A TO THE

SECURITY AGREEMENT

 

SUBSIDIARY GRANTORS

 

·      Subsidiary Grantors

 

ALTAIR
DISPOSAL SERVICES, LLC

BATON
ROUGE DISPOSAL, LLC

BRIDGEPORT
DISPOSAL, LLC

CH
INTERNATIONAL HOLDINGS, INC.

CLEAN
HARBORS ANDOVER, LLC

CLEAN
HARBORS ANTIOCH, LLC

CLEAN
HARBORS ARAGONITE, LLC

CLEAN
HARBORS ARIZONA, LLC

CLEAN
HARBORS OF BALTIMORE, INC.

CLEAN
HARBORS BATON ROUGE, LLC

CLEAN
HARBORS BDT, LLC

CLEAN
HARBORS BUTTONWILLOW, LLC

CLEAN
HARBORS CHATTANOOGA, LLC

CLEAN
HARBORS COFFEYVILLE, LLC

CLEAN
HARBORS COLFAX, LLC

CLEAN
HARBORS DEER PARK, L.P.

CLEAN
HARBORS DEER TRAIL, LLC

CLEAN
HARBORS DEVELOPMENT, LLC

CLEAN
HARBORS DISPOSAL SERVICES, INC.

CLEAN
HARBORS EL DORADO, LLC

CLEAN
HARBORS FINANCIAL SERVICES COMPANY

CLEAN
HARBORS FLORIDA, LLC

CLEAN
HARBORS GRASSY MOUNTAIN, LLC

CLEAN
HARBORS KANSAS, LLC

CLEAN
HARBORS LAPORTE, L.P.

CLEAN
HARBORS LAUREL, LLC

CLEAN
HARBORS LONE MOUNTAIN, LLC

CLEAN
HARBORS LONE STAR CORP.

CLEAN
HARBORS LOS ANGELES, LLC

CLEAN
HARBORS (MEXICO), INC.

CLEAN
HARBORS OF TEXAS, LLC

CLEAN
HARBORS PECATONICA, LLC

PLAQUEMINE
REMEDIATION SERVICES, LLC

CLEAN
HARBORS PPM, LLC

CLEAN
HARBORS REIDSVILLE, LLC

CLEAN
HARBORS RECYCLING SERVICES OF CHICAGO, LLC

CLEAN
HARBORS RECYCLING SERVICES OF OHIO, LLC

CLEAN
HARBORS SAN JOSE, LLC

CLEAN
HARBORS TENNESSEE, LLC

 

 

CLEAN
HARBORS WESTMORLAND, LLC

CLEAN
HARBORS WHITE CASTLE, LLC

CLEAN
HARBORS WILMINGTON, LLC

CROWLEY
DISPOSAL, LLC

DISPOSAL
PROPERTIES, LLC

GSX
DISPOSAL, LLC

HARBOR
MANAGEMENT CONSULTANTS, INC.

HARBOR
INDUSTRIAL SERVICES TEXAS, L.P.

HILLIARD
DISPOSAL, LLC

CLEAN
HARBORS CLIVE, LLC

ROEBUCK
DISPOSAL, LLC

SAWYER
DISPOSAL SERVICES, LLC

SERVICE
CHEMICAL, LLC

TULSA
DISPOSAL, LLC

CLEAN
HARBORS ENVIRONMENTAL SERVICES, INC.

CLEAN
HARBORS OF BRAINTREE, INC.

CLEAN
HARBORS OF NATICK, INC.

CLEAN
HARBORS SERVICES, INC.

MURPHY’S
WASTE OIL SERVICE INC.

CLEAN
HARBORS KINGSTON FACILITY CORPORATION

CLEAN
HARBORS OF CONNECTICUT, INC.

SPRING GROVE RESOURCE
RECOVERY, INC.

 

Notice Address for All Grantors

 

c/o Clean Harbors, Inc.

42 Longwater Street

P.O. Box 9149

Norwell, MA 02061

 

[Security
Agreement]

 

 

SCHEDULE
1 TO THE 

SECURITY AGREEMENT

 

COPYRIGHT LICENSES

 

 

SCHEDULE
2 TO THE 

SECURITY AGREEMENT

 

COPYRIGHT REGISTRATIONS

 

 

SCHEDULE
3 TO THE 

SECURITY AGREEMENT

 

PATENT LICENSES

 

 

SCHEDULE
4 TO THE 

SECURITY AGREEMENT

 

PATENTS

 

 

SCHEDULE
5 TO THE 

SECURITY AGREEMENT

 

DOMESTIC TRADEMARK LICENSES

 

 

SCHEDULE
6 TO THE 

SECURITY AGREEMENT

 

TRADEMARK REGISTRATIONS AND APPLICATIONS

 

 

SCHEDULE
7 TO THE 

SECURITY AGREEMENT

 

INVENTORY LOCATIONS

 

 

SCHEDULE
8 TO THE 

SECURITY AGREEMENT

 

DEPOSIT ACCOUNTS AND SECURITIES ACCOUNTS

 

 

ANNEX 1 TO THE

SECURITY AGREEMENT

 

SUPPLEMENT NO. [ ]
dated as of [ ], to the Security Agreement dated as of August 14,
2009, among CLEAN HARBORS, INC., a Massachusetts corporation (the “Company”),
each subsidiary of the Company listed on Annex A thereto (each such subsidiary
individually a “Subsidiary Grantor” and, collectively, the “Subsidiary
Grantors”; the Subsidiary Grantors and the Company are referred to
collectively herein as the “Grantors”), U.S. Bank National Association,
as collateral agent (the “Collateral Agent”), pursuant to an indenture,
dated as of August 14, 2009 (as amended, restated, supplemented or
modified from time to time, the “Indenture”) among the Company, each
Guarantor (as defined in the Indenture), the Collateral Agent and U.S. Bank
National Association, as trustee (the “Trustee”) on behalf of the
holders of the Notes (as defined below) (the “Holders”).

 

A.                                   Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Security Agreement.

 

B.                                     The Grantors have entered into the
Security Agreement in order to induce the Holders to purchase the Notes.

 

C.                                     Section 4.20 of the Indenture and/or
any equivalent provision of any Other Pari Passu Lien Agreement and Section 8.13
of the Security Agreement provide that each Subsidiary of the Company that is
required to become a party to the Security Agreement pursuant to Section 4.20
of the Indenture and/or any equivalent provision of any Other Pari Passu Lien
Agreement shall become a Grantor, with the same force and effect as if
originally named as a Grantor therein, for all purposes of the Security
Agreement upon execution and delivery by such Subsidiary of an instrument in
the form of this Supplement. Each undersigned Subsidiary (each a “New
Grantor”) is executing this Supplement in accordance with the requirements
of the Security Agreement to become a Subsidiary Grantor under the Security
Agreement as consideration for purchase of the Notes by the Holders.

 

Accordingly,
the Collateral Agent and the New Grantors agree as follows:

 

SECTION 1.  In accordance with subsection 8.13 of the
Security Agreement, each New Grantor by its signature below becomes a Grantor
under the Security Agreement with the same force and effect as if originally
named therein as a Grantor and each New Grantor hereby (a) agrees to all
the terms and provisions of the Security Agreement applicable to it as a
Grantor thereunder and (b) represents and warrants that the
representations and warranties made by it as a Grantor thereunder are true and
correct on and as of the date hereof. In furtherance of the foregoing, each New
Grantor, as security for the payment and performance in full of the
Obligations, does hereby bargain, sell, convey, assign, set over, mortgage,
pledge, hypothecate and transfer to the Collateral Agent, for the benefit of
the Secured Parties, and hereby grants to the Collateral Agent, for the benefit
of the Secured Parties, a security interest in all of the Collateral of such 

 

 

New Grantor, in each case whether now or hereafter
existing or in which it now has or hereafter acquires an interest. Each
reference to a “Grantor” in the Security Agreement shall be deemed to include
each New Grantor. The Security Agreement is hereby incorporated herein by reference.

 

SECTION 2.  Each New Grantor represents and warrants to
the Collateral Agent and the other Secured Parties that this Supplement has
been duly authorized, executed and delivered by it and constitutes its legal,
valid and binding obligation, enforceable against it in accordance with its
terms.

 

SECTION 3.  This Supplement may be executed by one or
more of the parties to this Supplement on any number of separate counterparts
(including by facsimile or other electronic transmission), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. A set of the copies of this Supplement signed by all the parties
shall be lodged with the Collateral Agent and the Company. This Supplement
shall become effective as to each New Grantor when the Collateral Agent shall
have received counterparts of this Supplement that, when taken together, bear
the signatures of such New Grantor and the Collateral Agent.

 

SECTION 4.  Each New Grantor hereby represents and
warrants that (a) set forth on Schedule I attached hereto is (i) the
legal name of such New Grantor, (ii) the jurisdiction of incorporation or
organization of such New Grantor, (iii) the true and correct location of
the chief executive office and principal place of business and any office in
which it maintains books or records relating to Collateral owned by it, (iv) the
identity or type of organization or corporate structure of such New Grantor and
(v) the Federal Taxpayer Identification Number and organizational number
of such New Grantor and (b) as of the date hereof (i) Schedule II
hereto sets forth all of each New Grantor’s Copyright Licenses, (ii) Schedule
III hereto sets forth, in proper form for filing with the United States
Copyright Office, all of each New Grantor’s registered Copyrights (and all
applications therefor), (iii) Schedule IV hereto sets forth all of each
New Grantor’s Patent Licenses, (iv) Schedule V hereto sets forth, in
proper form for filing with the United States Patent and Trademark Office, all
of each New Grantor’s Patents (and all applications therefor), (v) Schedule
VI hereto sets forth all of each New Grantor’s Trademark Licenses, (vi) Schedule
VII hereto sets forth, in proper form for filing with the United States Patent
and Trademark Office, all of each New Grantor’s registered Trademarks (and all
applications therefor); (vii) Schedule VIII hereto sets forth the
inventory locations of the New Grantor; and (viii) Schedule IX hereto sets
forth the Deposit Accounts and Security Accounts of the New Grantor.

 

SECTION 5.  Except as expressly supplemented hereby, the
Security Agreement shall remain in full force and effect.

 

SECTION 6.  THIS SUPPLEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAWS OTHER THAN SECTION 5-1401
AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAWS OF THE STATE OF NEW
YORK).

 

SECTION 7.  Any provision of this Supplement that is
prohibited or unenforceable 

 

2

 

in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof and in the Security Agreement, and
any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.
The parties hereto shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

 

SECTION 8.  All notices, requests and demands pursuant
hereto shall be made in accordance with Sections 14.2 of the Indenture of the
Indenture (whether or not then in effect). All communications and notices
hereunder to each New Grantor shall be given to it in care of the Company at
the Company’s address set forth in Section 14.2 of the Indenture (whether
or not then in effect).

 

SECTION 9.  Each New Grantor agrees to reimburse the
Collateral Agent for its reasonable out-of-pocket expenses in connection with
this Supplement, including the reasonable fees, other charges and disbursements
of counsel for the Collateral Agent.

 

3

 

IN
WITNESS WHEREOF, each New Grantor and the Collateral Agent have duly executed
this Supplement to the Security Agreement as of the day and year first above
written.

 

	
   

  	
  [NAME OF NEW GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, AS COLLATERAL AGENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

 

SCHEDULE I

TO THE SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

COLLATERAL

 

	
  Legal Name

  	
   

  	
  Jurisdiction of Incorporation

  or Organization

  	
   

  	
  Location of Chief

  Executive Office

  and Principal

  Place of Business

  	
   

  	
  Type of

  Organization or Corporate

  Structure

  	
   

  	
  Federal Taxpayer

  Identification Number 

  and Organizational

  Identification Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE II

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

COPYRIGHT LICENSES

 

 

SCHEDULE III

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

COPYRIGHT REGISTRATIONS AND APPLICATIONS

 

	
  Registered Owner/Grantor

  	
   

  	
  Title

  	
   

  	
  Registration Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE IV

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

PATENT LICENSES

 

 

SCHEDULE V

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

 PATENT REGISTRATIONS AND
APPLICATIONS

 

 

SCHEDULE VI

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

TRADEMARK LICENSES

 

 

SCHEDULE VII

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

TRADEMARK REGISTRATIONS AND APPLICATIONS

 

Domestic Trademarks

 

	
  Registered

  Owner/Grantor

  	
   

  	
  Trademark

  	
   

  	
  Registration

  No.

  	
   

  	
  Application

  No.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Foreign Trademarks

 

	
  Registered Owner/Grantor

  	
   

  	
  Trademark

  	
   

  	
  Registration

  No.

  	
   

  	
  Application

  No.

  	
   

  	
  Country

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE VIII

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

INVENTORY LOCATIONS

 

 

SCHEDULE IX

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

DEPOSIT ACCOUNTS AND SECURITIES ACCOUNTS

 

 

ANNEX 2 TO THE

SECURITY AGREEMENT

 

SUPPLEMENT NO. [ ] dated
as of [ ], to the Security Agreement dated as of August 14, 2009, among
CLEAN HARBORS, INC., a Massachusetts corporation (the “Company”), each
subsidiary of the Company listed on Annex A thereto (each such subsidiary
individually a “Subsidiary Grantor” and, collectively, the “Subsidiary
Grantors”; the Subsidiary Grantors and the Company are referred to
collectively herein as the “Grantors”), U.S. BANK NATIONAL
ASSOCIATION, as
collateral agent (the “Collateral Agent”), pursuant to an indenture,
dated as of August 14, 2009 (as amended, restated, supplemented or
modified from time to time, the “Indenture”) among the Company, each
Guarantor (as defined in the Indenture), the Collateral Agent and U.S. Bank
National Association, as trustee (the “Trustee”) on behalf of the
holders of the Notes (as defined below) (the “Holders”).

 

A.            Capitalized terms used herein and
not otherwise defined herein shall have the meanings assigned to such terms in
the Security Agreement.

 

B.            The Grantors have entered into the
Security Agreement in order to induce the Holders to purchase the Notes.
Pursuant to Section 4.1(b) of the Security Agreement, within 30 days
after the end of each calendar quarter, each Grantor has agreed to deliver to
the Collateral Agent a written supplement substantially in the form of Annex 2
thereto with respect to any additional registrations and applications for
Copyrights, Patents and Trademarks and any material exclusive Licenses acquired
by such Grantor after the date of the Indenture. The Grantors have identified
the additional registrations and applications for Copyrights, Patents and Trademarks
and material exclusive Licenses acquired by such Grantors after the date of the
Indenture set forth on Schedule I, II, III, IV, V, VI, VII and VIII
hereto. The undersigned Grantors are executing this Supplement in order to
facilitate supplemental filings to be made by the Collateral Agent with the
United States Copyright Office and the United States Patent and Trademark Office
of any registrations and applications for Copyrights, Patents and Trademarks.

 

Accordingly,
the Collateral Agent and the Grantors agree as follows:

 

SECTION 1.  (a) Schedule 1 of the Security Agreement
is hereby supplemented, as applicable, by the information set forth in the
Schedule I hereto, (b) Schedule 2 of the Security Agreement is hereby
supplemented, as applicable, by the information set forth in the Schedule II
hereto, (c) Schedule 3 of the Security Agreement is hereby supplemented,
as applicable, by the information set forth in the Schedule III hereto, (d) Schedule
4 of the Security Agreement is hereby supplemented, as applicable, by the
information set forth in the Schedule IV hereto, (e) Schedule 5 of the
Security Agreement is hereby supplemented, as applicable, by the information
set forth in the Schedule V hereto, (f) Schedule 6 of the Security
Agreement is hereby supplemented, as applicable, by the information set forth
in the Schedule VI hereto, (g) Schedule 7 of the Security Agreement is
hereby supplemented, as applicable, by the information set forth in the
Schedule VII hereto and (h) and Schedule 8 of the Security Agreement is
hereby supplemented, 

 

 

as applicable, by the information set forth in the
Schedule VIII hereto.

 

SECTION 2.  Each Grantor hereby represents and warrants
that the information set forth on Schedules I, II, III, IV, V, VI,
VII and VIII hereto is true and correct.

 

SECTION 3.  This Supplement may be executed by one or
more of the parties to this Supplement on any number of separate counterparts
(including by facsimile or other electronic transmission), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. A set of the copies of this Supplement signed by all the parties
shall be lodged with the Collateral Agent and the Company. This Supplement
shall become effective as to each Grantor when the Collateral Agent shall have
received counterparts of this Supplement that, when taken together, bear the
signatures of such Grantor and the Collateral Agent.

 

SECTION 4.  Except as expressly supplemented hereby, the
Security Agreement shall remain in full force and effect.

 

SECTION 5.  THIS SUPPLEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK

 

SECTION 6.  Any provision of this Supplement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof and in the Security Agreement, and
any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.
The parties hereto shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

 

SECTION 7.  All notices, requests and demands pursuant
hereto shall be made in accordance with Section 8.2 of the Security
Agreement. All communications and notices hereunder to each Grantor shall be
given to it in care of the Company at the Company’s address set forth in Section 14.2
of the Indenture (whether or not then in effect).

 

SECTION 8.  Each Grantor agrees to reimburse the
Collateral Agent for its reasonable out-of-pocket expenses in connection with
this Supplement, including the reasonable fees, other charges and disbursements
of counsel for the Collateral Agent.

 

2

 

IN
WITNESS WHEREOF, each Grantor and the Collateral Agent have duly executed this
Supplement to the Security Agreement as of the day and year first above
written.

 

	
   

  	
  [GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, AS COLLATERAL AGENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

3

 

SCHEDULE I

TO SUPPLEMENT NO.     TO THE

SECURITY AGREEMENT

 

COPYRIGHT LICENSES

 

 

SCHEDULE II

TO SUPPLEMENT NO.     TO THE

SECURITY AGREEMENT

 

COPYRIGHT REGISTRATIONS

 

	
  Registered Owner/Grantor

  	
   

  	
  Title

  	
   

  	
  Registration

  Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE III

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

PATENT LICENSES

 

 

SCHEDULE IV

TO SUPPLEMENT NO.     TO THE

SECURITY AGREEMENT

 

PATENT REGISTRATIONS AND APPLICATIONS

 

 

SCHEDULE V

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

TRADEMARK LICENSES

 

 

SCHEDULE VI

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

TRADEMARK REGISTRATIONS AND APPLICATIONS

 

Domestic Trademarks

 

	
  Registered

  Owner/Grantor

  	
   

  	
  Trademark

  	
   

  	
  Registration

  No.

  	
   

  	
  Application

  No.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Foreign Trademarks

 

	
  Registered

  Owner/Grantor

  	
   

  	
  Trademark

  	
   

  	
  Registration

  No.

  	
   

  	
  Application

  No.

  	
   

  	
  Country

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE VII

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

INVENTORY LOCATIONS

 

 

SCHEDULE VIII

TO SUPPLEMENT NO.      TO THE

SECURITY AGREEMENT

 

DEPOSIT ACCOUNTS AND SECURITIES ACCOUNTS

 

 

ANNEX 3 TO THE

SECURITY AGREEMENT

 

GRANT OF

SECURITY INTEREST IN [TRADEMARK/PATENT/COPYRIGHT] RIGHTS

 

This GRANT OF SECURITY INTEREST IN [TRADEMARK/ PATENT/ COPYRIGHT]
RIGHTS (“Agreement”), effective as of [    ], 2009 is made
by [    ], a [state] [form of entity], located at [              ]
(the “Grantor”), in favor of U.S. Bank National Association, as Collateral
Agent (the “Agent”) pursuant to an indenture, dated as of August 14,
2009 (as amended, restated, supplemented or modified from time to time, the “Indenture”)
among Clean Harbors, Inc., a Massachusetts corporation (“Company”),
each Guarantor (as defined in the Indenture), the Agent and U.S. Bank National
Association, as trustee (the “Trustee”) on behalf of the holders of the
Notes (as defined below) (the “Holders”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Indenture, the Holders have severally agreed
to purchase the Notes upon the terms and subject to the conditions set forth
therein; and

 

WHEREAS, in connection with the Indenture, the Grantor and certain
other subsidiaries of the Company have executed and delivered a Security
Agreement, dated as of August 14, 2009, in favor of the Agent (together
with all amendments and modifications, if any, from time to time thereafter
made thereto, the “Security Agreement”);

 

WHEREAS, pursuant to the Security Agreement, the Grantor pledged and
granted to the Agent for the benefit of the Secured Parties, a security
interest in all of the Grantor’s Intellectual Property, including the
[Trademarks/Patents/Copyrights]; and

 

WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Agreement;

 

NOW THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and in order to induce the Holders to purchase
the Notes pursuant to the Indenture, the Grantor agrees, for the benefit of the
Secured Parties, as follows:

 

1.             Definitions.  Unless otherwise defined herein or the
context otherwise requires, terms used in this Agreement, including its
preamble and recitals, have the meanings provided or provided by reference in
the Indenture and the Security Agreement.

 

2

 

2.             Grant of Security Interest.  The Grantor hereby pledges and grants a
security interest in, and agrees to assign, transfer and convey, upon demand
made upon and during occurrence of an Event of Default, all of the Grantor’s
right, title and interest in, to and under the [Trademarks/Patents/Copyrights]
(including, without limitation, those items listed on Schedule A hereto)
(collectively, the “Collateral”), to the Agent for the benefit of the
Agent and the Secured Parties to secure payment, performance and observance of
the Obligations.

 

3.             Purpose.  This Agreement has been executed and
delivered by the Grantor for the purpose of recording the grant of security
interest herein with the United States [Patent and Trademark][Copyright]
Office.  The security interest granted
hereby has been granted to the Secured Parties in connection with the Security Agreement
and is expressly subject to the terms and conditions thereof.  The Security Agreement (and all rights and
remedies of the Secured Parties thereunder) shall remain in full force and
effect in accordance with its terms.

 

4.             Acknowledgment.  The Grantor does hereby further acknowledge
and affirm that the rights and remedies of the Secured Parties with respect to
the security interest in the Collateral granted hereby are more fully set forth
in the Security Agreement and the other Note Documents, the terms and
provisions of which (including the remedies provided for therein) are
incorporated by reference herein as if fully set forth herein.  In the event of any conflict between the
terms of this Agreement and the terms of the Security Agreement, the terms of
the Security Agreement shall govern.

 

5.            Counterparts.  This Agreement may be executed in
counterparts, each of which will be deemed an original, but all of which
together constitute one and the same original.

 

3

 

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

 

	
   

  	
  [          ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. Bank National
  Association,

  
	
   

  	
  as Collateral
  Agent for the Secured Parties

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

4

 

SCHEDULE
A

 

U.S. [Patent/Trademark/Copyright]
Registrations and Applications

 

[For Patents:]

 

	
  Patent

  	
   

  	
  Patent or
  Application Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

[For Trademarks:]

 

	
  Trademark

  	
   

  	
  Registration or Serial Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

[For Copyrights:]

 

	
  Copyright

  	
   

  	
  Registration Number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

ANNEX 4 TO THE

SECURITY AGREEMENT

 

[Form of]

 

OTHER PARI PASSU
LIEN SECURED PARTY CONSENT

 

[Name of Other Pari Passu Lien Secured Party]

[Address of Other Pari Passu Lien Secured Party]

 

[Date]

 

The undersigned is the
Authorized Representative for Persons wishing to become Secured Parties (the “New
Secured Parties”) under the Security Agreement dated as of August 14, 2009
(the “Security Agreement” (terms used without definition herein have the
meanings assigned to such term by the Security Agreement)) among Clean Harbors, Inc.,
the Subsidiary Grantors party thereto and U.S. Bank National Association, as
Collateral Agent (the “Collateral Agent”).

 

In consideration of the
foregoing, the undersigned hereby:

 

(i)            represents that the Authorized
Representative has been duly authorized by the New Secured Parties to become a
party to the Security Agreement and the other Security Documents on behalf of
the New Secured Parties under that [DESCRIBE OPERATIVE AGREEMENT] (the “New
Secured Obligation”) and to act as the Authorized Representative for the New
Secured Parties;

 

(ii)           acknowledges that the New Secured
Parties has received a copy of the Security Agreement and the Intercreditor
Agreement;

 

(iii)          appoints and authorizes the Collateral
Agent to take such action as agent on its behalf and on behalf of all other
Secured Parties and to exercise such powers under the Security Agreement,
Intercreditor Agreement and other Security Documents as are delegated to the
Collateral Agent by the terms thereof, together with all such powers as are
reasonably incidental thereto;

 

(iv)          accepts and acknowledges the terms of
the Intercreditor Agreement applicable to it and the New Secured Parties and
agrees to serve as Authorized Representative for the New Secured Parties with
respect to the New Secured Obligations and agrees on its own behalf and on
behalf of the New Secured Parties to be bound by the terms thereof 

 

2

 

applicable to holders of
Other Pari Passu Lien Obligations, with all the rights and obligations of a
Secured Party thereunder and bound by all the provisions thereof (including,
without limitation, Section 2.02(b) thereof) as fully as if it had
been a Secured Party on the effective date of the Intercreditor Agreement and
agrees that its address for receiving notices pursuant to the Security
Agreement and the other Security Documents shall be as follows:

 

[Address]

 

The Collateral
Agent, by acknowledging and agreeing to this Other Pari Passu Lien Secured
Party Consent, accepts the appointment set forth in clause (iii) above.

 

THIS OTHER PARI PASSU
LIEN SECURED PARTY CONSENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

3

 

IN WITNESS WHEREOF, the
undersigned has caused this Other Pari Passu Lien Secured Party Consent to be
duly executed by its authorized officer as of the
       day of 20    .

 

	
   

  	
  [NAME OF AUTHORIZED
  REPRESENTATIVE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  Acknowledged and Agreed

  	
   

  
	
  [                         ],

  	
   

  
	
  as Collateral Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  CLEAN HARBORS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

4Exhibit
4.38

 

INTERCREDITOR
AGREEMENT

 

This Intercreditor Agreement
is dated as of August 14, 2009, and entered into by and among Clean
Harbors, Inc., a Massachusetts corporation (the “Company”), the
subsidiaries of the Company listed on the signature pages hereof (together
with any subsidiary that becomes a party hereto after the date hereof, the “Company
Subsidiaries”), Bank of America, N.A., in its capacity as administrative
agent under the ABL Loan Agreement, including its successors and assigns from
time to time (the “Initial ABL Agent”) and U.S. Bank National
Association, as Trustee (the “Senior Secured Notes Trustee”), not in its
individual capacity, but solely in its capacity as trustee and collateral agent
under the Senior Secured Notes Indenture. 
Capitalized terms used in this Agreement have the meanings assigned to
them in Section 1.

 

RECITALS

 

The Company, the ABL Lenders
and the Initial ABL Agent have entered into that certain Credit Agreement,
dated as of July 31, 2009 (as amended, restated, supplemented or modified
from time to time, the “Initial ABL Loan Agreement”);

 

The Company has issued, or
will issue, $300,000,000 principal amount of 75/8% senior secured notes due 2016 (the “Initial Senior Secured Notes”)
under an indenture, dated as of August 14, 2009 (as amended, restated,
supplemented or modified from time to time, the “Senior Secured Notes Indenture”)
among the Company, each Guarantor (as defined in the Senior Secured Notes
Indenture) and the Senior Secured Notes Trustee;

 

Following the date hereof,
the Company may issue Junior Secured Notes and enter into a Junior Secured
Notes Agreement to the extent permitted by the ABL Loan Documents and the
Senior Secured Notes Documents;

 

The Company may from time to
time following the date hereof issue Additional Pari Passu Senior Secured Notes
Obligations to the extent permitted by the ABL Loan Agreement, the Senior
Secured Notes Indenture and the Junior Secured Notes Agreement (if any);

 

In order to induce the ABL
Agent and the ABL Lenders to consent to the Grantors incurring the Senior
Secured Notes Obligations and the Junior Secured Notes Obligations (if any) and
granting the Liens to the Senior Secured Notes Agent and the Junior Secured
Notes Agent and in order to induce the Senior Secured Notes Agent and the
Senior Secured Noteholders to consent to the Grantors incurring the ABL
Obligations and the Junior Secured Notes Obligations (if any) and granting the
Liens to the ABL Agent and the Junior Secured Notes Agent, the ABL Agent, on
behalf of the ABL Claimholders, the Senior Secured Notes Agent, on behalf of
the Senior Secured Notes Claimholders and, should a Junior Secured Notes
Agreement be entered into, following the execution of the Junior Secured Notes
Joinder Agreement, the Junior Secured Notes Agent, on behalf of the Junior
Secured Notes Claimholders, have agreed to the relative priority of their
respective Liens on the Collateral and certain other rights, priorities and
interests as set forth in this Agreement.

 

AGREEMENT

 

In consideration of the
foregoing, the mutual covenants and obligations herein set forth and for other
good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

 

 

I.

DEFINITIONS

 

1.1.          Defined Terms. 
As used in this Agreement, the following terms shall have the following
meanings:

 

“ABL Agent” means the
Initial ABL Agent and any successor or other agent under the ABL Loan
Agreement.

 

“ABL Claimholders”
means, at any relevant time, the holders of ABL Obligations at that time,
including, without limitation, the ABL Lenders and the ABL Agent under the ABL
Loan Agreement, in each case solely in their capacities as such and not in any
other capacity (except to the extent that such ABL Claimholder is acting in
such other capacity for the primary purpose of benefiting its ABL Obligations).

 

“ABL Collateral”
means all of the assets and property of any Grantor, whether real, personal or
mixed, with respect to which a Lien is granted as security for any ABL
Obligations.

 

“ABL Default” means
an “Event of Default” (as defined in the ABL Loan Agreement).

 

“ABL Lenders” means
the “Lenders” under and as defined in the ABL Loan Agreement or any other
Person which extends credit under the ABL Loan Agreement in each case solely in
their capacities as such and not in any other capacity (except to the extent
that such ABL Lender is acting in such other capacity for the primary purpose
of benefiting its ABL Obligations).

 

“ABL Loan Agreement”
means collectively, (a) the Initial ABL Loan Agreement and (b) any
other credit agreement or credit agreements, one or more debt facilities,
and/or commercial paper facilities, in each case, with banks or other
institutional or commercial lenders providing for revolving credit loans, term
loans, receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from (or sell such
receivables to) such lenders against such receivables), letters of credit,
bankers’ acceptances, or other borrowings, that has been incurred to increase,
replace (whether upon or after termination or otherwise), Refinance or refund
in whole or in part from time to time the Obligations outstanding under the
Initial ABL Loan Agreement or any other agreement or instrument referred to in
this clause which (I) is designated to each ABL Agent as an “ABL Loan Agreement”
by (x) if any other ABL Loan Agreement is then in effect, the ABL Agent
(and, so long as an ABL Default has not occurred and is continuing at the time
of such designation, the Company) or (y) if no other ABL Loan Agreement is
then in effect, the Company, and (II) the ABL Agent for such agreement
shall have executed a supplement to this Agreement agreeing to be bound hereby
on the same terms applicable to the Initial ABL Agent, whether or not such
increase, replacement, refinancing or refunding occurs (i) with the
original parties thereto, (ii) on one or more separate occasions or (iii) simultaneously
or not with the termination or repayment of the Initial ABL Loan Agreement or
any other agreement or instrument referred to in this clause, unless such
agreement or instrument is not a Permitted Refinancing Agreement.  Any reference to the ABL Loan Agreement hereunder
shall be deemed a reference to any ABL Loan Agreement then in existence.

 

“ABL Loan Documents”
means the ABL Loan Agreement and the “Loan Documents” (as defined in the
ABL Loan Agreement), and each of the other agreements, documents and
instruments executed pursuant thereto, and any other document or instrument
executed or delivered at any time in connection with the ABL Loan Agreement,
including any intercreditor or joinder agreement among holders of ABL
Obligations, to the extent such are effective at the relevant time, as each may
be amended, restated, 

 

2

 

supplemented, modified,
renewed, extended or Refinanced from time to time in accordance with the provisions
of this Agreement.

 

“ABL
Obligations”
means all advances to, and Indebtedness, liabilities, obligations, covenants
and duties of the Company and the Company Subsidiaries (whether for principal,
premium, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities payable under the documentation governing such
Indebtedness, liabilities, obligations, covenants and duties) arising under (i) the
ABL Loan Agreement or otherwise with respect to any loans or letters of credit
issued or borrowed pursuant to the ABL Loan Agreement, (ii) any Secured
Cash Management Agreement or (iii) any Secured Hedge Agreement, in each
case whether direct or indirect (including those acquired by assumption), absolute
or contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against
the Company or any Company Subsidiary or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

 

“ABL Priority Collateral”
means all now-owned or hereafter acquired ABL Collateral that constitutes:

 

(a)           Accounts, other than Accounts which arise from the sale,
license, assignment or other Disposition of Senior Secured Notes Priority
Collateral;

 

(b)           Deposit Accounts and Securities Accounts (including all
cash, cash equivalents, Money, checks, Instruments, funds, ACH transfers, wired
funds, Investment Property, and other funds and property held in or on deposit
in any of the foregoing, but excluding any identifiable Proceeds of Senior
Secured Notes Priority Collateral held in any of the foregoing), in each case,
to the extent arising out of, or related to, or derivative of the foregoing;

 

(c)           Letter of Credit Rights arising out of, or related to, or
derivative of any of the property or interests in property described in this
definition;

 

(d)           Supporting Obligations and Commercial Tort Claims, in each
case, to the extent arising out of, or related to, or derivative of, the
property or interests described in this definition;

 

(e)           all contracts, contract rights and other General
Intangibles (other than any Intellectual Property and the Senior Secured Notes
Priority Collateral), all Documents, Chattel Paper, and Instruments (including
promissory notes), in each case, to the extent arising out of, or related to,
or derivative of the property or interests in property described in this definition;

 

(f)            all books and Records relating to the items referred to
in the preceding clauses (a) through (e) (including all books,
databases, data processing software, customer lists, engineer drawings, and
Records, whether tangible or electronic, which contain any information relating
to any of the items referred to in the preceding clauses (a) through (e));
and

 

(g)           all collateral security and guarantees with respect to any
of the foregoing and, subject to Section 3.5, all proceeds,
products, substitutions, replacements, accessions, cash, Money, insurance proceeds,
Instruments, Securities, Security Entitlements, Financial Assets and Deposit
Accounts (excluding any identifiable Proceeds of Senior Secured Notes Priority
Collateral held in any of the foregoing) received as proceeds of any of the
foregoing, but excluding proceeds of Senior Secured Notes Priority Collateral.

 

3

 

 “ABL Security Documents” means any
agreement, document or instrument pursuant to which a Lien is granted securing
any ABL Obligations or under which rights or remedies with respect to such
Liens are governed.

 

“Account Agreements”
means any lockbox account agreement, pledged account agreement, blocked account
agreement, securities account control agreement, or any similar deposit or
securities account agreements among the Senior Secured Notes Agent and the ABL
Agent, one or more Grantors and the relevant financial institution depository
or securities intermediary.

 

“Accounts” means all
present and future “accounts” (as defined in Article 9 of the UCC).

 

“Additional Joinder
Agreement” shall mean a joinder agreement in the form of Exhibit B
hereto.

 

“Additional Pari Passu
Senior Secured Notes Agent” means the Person appointed to act as trustee,
agent or representative for the holders of Additional Pari Passu Senior Secured
Notes Obligations pursuant to any Additional Pari Passu Senior Secured Notes
Agreement.

 

“Additional Pari Passu
Senior Secured Notes Agreement” means the indenture, credit agreement or
other agreement under which any Additional Pari Passu Senior Secured Notes
Obligations are incurred.

 

“Additional Pari Passu
Senior Secured Notes Obligations” means Indebtedness of the Grantors issued
following the date of this Agreement to the extent (a) such Indebtedness
is not prohibited by the terms of the ABL Loan Agreement, the Senior Secured
Notes Indenture, the Junior Secured Notes Agreement (if any) from being secured
by Liens on the Collateral ranking pari  passu with the Liens securing
the Senior Secured Notes Obligations, (b) the Grantors have granted Liens,
consistent with clause (a), on the Collateral to secure the Obligations in
respect of such Indebtedness, and (c) the Additional Pari Passu Senior
Secured Notes Agent, for the holders of such Indebtedness, has entered into an
Additional Joinder Agreement on behalf of the Senior Secured Notes Claimholders
under such agreement acknowledging that such holders shall be bound by the
terms hereof applicable to Senior Secured Notes Claimholders.

 

“Affiliate” means,
with respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, controls or is controlled by or is under
common control with the Person specified. 
For purposes of this definition, a Person shall be deemed to “control”
or be “controlled by” a Person if such Person possesses, directly or
indirectly, power to direct or cause the direction of the management or
policies of such Person whether through ownership of equity interests, by
contract or otherwise.

 

“Agents” means the
ABL Agent, the Senior Secured Notes Agent and the Junior Secured Notes Agent.

 

“Agreement” means
this Intercreditor Agreement, as amended, restated, renewed, extended, supplemented
or otherwise modified from time to time.

 

“Bankruptcy Code”
means Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

 

“Bankruptcy Law”
means the Bankruptcy Code and any similar federal or state law for the relief
of debtors.

 

4

 

“Business Day” means
a day other than a Saturday, Sunday or other day on which commercial banks in
Boston, Massachusetts, New York, New York or Wilmington, Delaware are
authorized or required by law to close.

 

“Capital Stock” means
(a) in the case of a corporation, capital stock, (b) in the case of
an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of capital
stock, (c) in the case of a partnership, partnership interests (whether general
or limited), (d) in the case of a limited liability company, membership
interests and (e) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person and all rights, warrants or
options exchangeable for or convertible into any of the items described in
clauses (a) through (e) above; provided that with respect to
the foregoing, Capital Stock shall exclude any debt securities convertible into
Capital Stock, whether or not such debt securities include any right of vote or
participation with Capital Stock.

 

“Cash
Management Agreement” means any agreement to provide cash management
services, including treasury, depository, overdraft, credit or debit card,
electronic funds transfer and other cash management arrangements.

 

“Cash Management Bank” means any
Person that, at the time it enters into a Cash Management Agreement, is a
lender under the ABL Loan Agreement or an Affiliate of a lender under the ABL
Loan Agreement, in such Person’s capacity as a party to such Cash Management
Agreement.

 

“Chattel Paper” means
all present and future “chattel paper” (as defined in Article 9 of the
UCC).

 

“Claimholder” means
any Senior Secured Notes Claimholder, Junior Secured Notes Claimholder or ABL
Claimholder, as applicable.

 

“Collateral” means
any and all of the assets and property of any Grantor, whether real, personal
or mixed, which constitute ABL Collateral, Senior Secured Notes Collateral or
Junior Secured Notes Collateral.

 

“Commercial Tort Claims”
means all present and future “commercial tort claims” (as defined in Article 9
of the UCC).

 

“Company” has the
meaning assigned to that term in the Preamble to this Agreement.

 

“Company Subsidiary”
has the meaning assigned to that term in the Preamble to this Agreement.

 

“Conforming Plan of
Reorganization” means any Plan of Reorganization whose provisions are
consistent with the provisions of this Agreement.

 

“Copyrights” means (a) all
registered United States copyrights in any works which are subject to copyright
protection pursuant to Title 17 of the United States Code, now existing or
hereafter created or acquired, all registrations and recordings thereof, and
all applications in connection therewith, including, without limitation,
registrations, recordings and applications in the United States Copyright
Office and (b) all renewals thereof.

 

“Debtor Relief Laws” means the
Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, 

 

5

 

insolvency, reorganization,
or similar debtor relief laws or regulations of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

 

“Deposit Accounts”
means all present and future “deposit accounts” (as defined in Article 9
of the UCC).

 

“DIP Financing” has
the meaning assigned to that term in Section 6.1.

 

“Discharge of ABL
Obligations” means, except to the extent otherwise expressly provided in Section 5.5:

 

(a)           payment in full in cash of all ABL Obligations (other than
contingent obligations or contingent indemnification obligations except as
provided in clause (d) below);

 

(b)           termination or expiration of all commitments, if any, to
extend credit under the ABL Loan Documents;

 

(c)           termination, cash collateralization (in an amount and
manner reasonably satisfactory to the ABL Agent, but in no event greater than
105% of the aggregate undrawn face amount, plus commissions, fees, and
expenses) or backstop of all letters of credit issued under the ABL Loan
Agreement in compliance with the terms of the ABL Loan Agreement; and

 

(d)           cash collateralization (or support by a letter of credit)
for any costs, expenses and contingent indemnification obligations consisting
of ABL Obligations not yet due and payable but with respect to which a claim
has been asserted in writing under any ABL Loan Documents (in an amount and
manner reasonably satisfactory to the ABL Agent).

 

“Discharge of Junior
Secured Notes Obligations” means, except to the extent otherwise expressly
provided in Section 5.5, (x) payment in full in cash (or, to
the extent provided in the applicable Junior Secured Notes Documents, other
property) of all Junior Secured Notes Obligations (other than contingent
obligations or indemnification obligations, in each case for which no claim has
been asserted) or (y) any discharge or legal defeasance of the Junior
Secured Notes Agreement in accordance with the express terms thereof.

 

“Discharge of Prior Lien
Obligations” means:

 

(a)           with respect to the Junior Secured Notes Claimholders, the
Discharge of ABL Obligations and the Discharge of Senior Secured Notes Obligations;

 

(b)           with respect to the ABL Priority Collateral as it relates
to the Senior Secured Notes Claimholders, the Discharge of ABL Obligations; and

 

(c)           with respect to the Senior Secured Notes Priority
Collateral as it relates to the ABL Claimholders, the Discharge of Senior
Secured Notes Obligations.

 

“Discharge of Senior
Secured Notes Obligations” means, except to the extent otherwise expressly
provided in Section 5.5, (x) payment in full in cash of all
Senior Secured Notes Obligations (other than contingent obligations or
indemnification obligations, in each case for which no claim has been asserted
in writing) or (y) any discharge or legal defeasance of the Senior Secured
Notes Indenture and each Additional Pari Passu Senior Secured Notes Agreement
in accordance with the express terms thereof.

 

6

 

“Disposition” means
any sale, lease, exchange, transfer or other disposition of any Collateral.

 

“Documents” means all
present and future “documents” (as defined in Article 9 of the UCC).

 

“Enforcement” means,
collectively or individually for one or more of the ABL Agent, the Senior
Secured Notes Agent or the Junior Secured Notes Agent to enforce or attempt to
enforce any right or power to repossess, replevy, attach, garnish, levy upon,
collect the Proceeds of, foreclose or realize in any manner whatsoever its Lien
upon, sell, liquidate or otherwise dispose of, or otherwise restrict or
interfere with the use of, or exercise any remedies with respect to, any Collateral,
whether by judicial enforcement of any of the rights and remedies under the ABL
Loan Documents, the Senior Secured Notes Documents, the Junior Secured Notes
Documents and/or under any applicable law, by self-help repossession, by
non-judicial foreclosure sale, lease, or other Disposition, by set-off, by
notification to account obligors of any Grantor, by any sale, lease, or other
Disposition implemented by any Grantor at the direction of the ABL Agent, the
Senior Secured Notes Agent or the Junior Secured Notes Agent, or otherwise, but
in all cases excluding (i) the establishment of borrowing base reserves,
collateral ineligibles, or other conditions for advances, (ii) the
changing of advance rates or advance sublimits, (iii) the imposition of a
default rate or late fee, (iv) the collection and application (including
pursuant to “cash dominion” provisions) of Accounts or other monies deposited
from time to time in Deposit Accounts or Securities Accounts, in each case,
against the ABL Obligations pursuant to the provisions of the ABL Loan
Documents (including, without limitation, the notification of account debtors,
depositary institutions or any other Person to deliver proceeds of Collateral
to the ABL Agent), (v) the cessation of lending pursuant to the provisions
of the ABL Loan Documents, including upon the occurrence of a default on the
existence of an over-advance, (vi) the filing of a proof of claim in any
Insolvency or Liquidation Proceeding, (vii) the consent by the ABL Agent
to Disposition by any Grantor of any of the ABL Priority Collateral, and (viii) the
acceleration of the Senior Secured Notes Obligations, the ABL Obligations or
the Junior Secured Notes Obligations.

 

“Enforcement Notice”
means a written notice delivered, at a time when an ABL Default or Senior
Secured Notes Default has occurred and is continuing, by either the ABL Agent
or the Senior Secured Notes Agent to the other announcing that such party
intends to commence Enforcement against its Priority Collateral and specifying
the relevant event of default.

 

“Equipment” means, as
to each Grantor, all of such Grantor’s now owned and hereafter acquired
equipment, as defined in Article 9 of the UCC, wherever located.

 

“Financial Assets”
means all present and future “financial assets” (as defined in Article 9
of the UCC).

 

“General Intangibles”
means all present and future “general intangibles” (as defined in Article 9
of the UCC), but excluding (a) Hedge Agreements and (b) Intellectual
Property and any rights thereunder.

 

“Governmental Authority”
means any federal, state, municipal, national or other government, governmental
department, commission, board, bureau, court, agency or instrumentality or
political subdivision thereof or any entity or officer exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to any government or any court, in each case whether associated with a state of
the United States, the United States, or a foreign entity or government.

 

“Grantors” means
Holdings, the Company, each Company Subsidiary and each other Person that has
or may from time to time hereafter execute and deliver an ABL Security
Document, a Senior Secured 

 

7

 

Notes Security Document or a
Junior Secured Notes Security Document, as a grantor of a security interest (or
the equivalent thereof).

 

“Hedge Bank” means any Person that, at the time it
enters into a Swap Contract permitted under the indenture, is a lender under
the ABL Loan Agreement or an Affiliate of a lender under the ABL Loan
Agreement, in such Person’s capacity as a party to such Swap Contract.

 

“Indebtedness” means
and includes all “Indebtedness,” or any similar term within the meaning of the
ABL Loan Agreement, the Senior Secured Notes Indenture or the Junior Secured
Notes Agreement, as applicable.

 

“Initial ABL Loan
Agreement” has the meaning assigned to that term in the Recitals.

 

“Initial Senior Secured
Notes” has the meaning assigned to that term in the Recitals.

 

“Insolvency or
Liquidation Proceeding” means:

 

(a)           any voluntary or involuntary case or proceeding under the
Bankruptcy Code or other applicable bankruptcy or insolvency laws of another
jurisdiction with respect to any Grantor;

 

(b)           any other voluntary or involuntary insolvency, reorganization
or bankruptcy case or proceeding, or any receivership, liquidation,
reorganization or other similar case or proceeding with respect to any Grantor
or with respect to a material portion of their respective assets;

 

(c)           any composition of liabilities or similar arrangement
relating to any Grantor, whether or not under a court’s jurisdiction or
supervision;

 

(d)           any liquidation, dissolution, reorganization or winding up
of any Grantor, whether voluntary or involuntary, whether or not under a court’s
jurisdiction or supervision, and whether or not involving insolvency or
bankruptcy; or

 

(e)           any general assignment for the benefit of creditors or any
other marshalling of assets and liabilities of any Grantor.

 

“Instruments” means
all present and future “instruments” (as defined in Article 9 of the UCC).

 

“Intellectual Property”
means, all of the following in any jurisdiction throughout the world:  (a) patents, patent applications and
inventions, including all renewals, extensions, combinations, divisions, or
reissues thereof (“Patents”); (b) trademarks, service marks, trade
names, trade dress, logos, internet domain names and other business
identifiers, together with the goodwill symbolized by any of the foregoing, and
all applications, registrations, renewals and extensions thereof (“Trademarks”);
(c) copyrights and all works of authorship including all registrations,
applications, renewals, extensions and reversions thereof (“Copyrights”);
(d) all computer software, source code, executable code, data, databases
and documentation thereof; (e) all trade secret rights in information,
including trade secret rights in any formula, pattern, compilation, program,
device, method, technique, or process, that (1) derives independent
economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other Persons who can obtain
economic value from its disclosure or use, and (2) is the subject of
efforts that are reasonable under the circumstances to maintain its secrecy; (f) all
other intellectual property or proprietary rights in any discoveries, concepts,
ideas, research and development, 

 

8

 

know-how, formulae,
patterns, inventions, compilations, compositions, manufacturing and production
processes and techniques, program, device, method, technique, technical data,
procedures, designs, recordings, graphs, drawings, reports, analyses,
specifications, databases, and other proprietary or confidential information,
including customer lists, supplier lists, pricing and cost information,
business and marketing plans and proposals and advertising and promotional
materials; and (g) all rights to sue at law or in equity for any
infringement or other impairment or violation thereof and all products and
proceeds of the foregoing.

 

“Inventory” means as
to each Grantor, all of such Grantor’s now owned and hereafter existing or
acquired inventory, as defined in Article 9 of the UCC, wherever located.

 

“Investment Property”
means all present and future “investment property” (as defined in Article 9
of the UCC), including, without limitation, all Capital Stock of Subsidiaries
of the Grantors.

 

 “Junior Secured Noteholders” means the
holders of the Junior Secured Notes, solely in their capacities as such and not
in any other capacity (except to the extent that such Junior Secured Noteholder
is acting in such other capacity for the primary purpose of benefiting its
Junior Secured Notes Obligations).

 

“Junior Secured Notes”
any indebtedness that has been incurred after the date hereof which is
designated to each Agent as “Junior Secured Notes” by the Junior Secured Notes
Agent; provided that (a) the Junior
Secured Notes Agent under the Junior Secured Notes Agreement under which such
indebtedness has been incurred shall have executed a supplement to this
Agreement agreeing to bound hereby, (b) the Indebtedness represented by
such Junior Secured Notes is not prohibited by the terms of the ABL Loan
Documents or the Senior Secured Notes Documents and (c) the Grantors have
granted Liens on all or a portion of the Collateral to secure the Obligations
in respect of such Indebtedness.

 

“Junior Secured Notes
Agent” means the Person appointed to act as trustee, agent or representative
for the holders of Junior Secured Notes Obligations pursuant to any Junior
Secured Notes Agreement.

 

“Junior Secured Notes
Agreement” means the indenture, credit agreement or other agreement under
which any Junior Notes Obligations are incurred pursuant to the issuance and
sale of the Junior Secured Notes.

 

 “Junior Secured Notes Claimholders”
means, at any relevant time, the holders of Junior Secured Notes Obligations at
that time, including the Junior Secured Noteholders and the Junior Secured
Notes Agent, in each case solely in their capacities as such and not in any
other capacity (except to the extent that such Junior Secured Notes Claimholder
is acting in such other capacity for the primary purpose of benefiting its
Junior Secured Notes Obligations).

 

“Junior Secured Notes
Collateral” means any and all of the assets and property of any Grantor,
whether real, personal or mixed, with respect to which a Lien is granted as
security for any Junior Secured Notes Obligations.

 

“Junior Secured Notes
Default” means an “Event of Default” as defined in the Junior Secured Notes
Agreement.

 

“Junior Secured Notes
Documents” means the Junior Secured Notes Agreement, the Junior Secured
Notes, the Junior Secured Notes Security Documents and each of the other
agreements, documents and instruments executed pursuant thereto, and any other
document or instrument executed or delivered at 

 

9

 

any time in connection with
any Junior Secured Notes Obligations, including any intercreditor or joinder
agreement among holders of Junior Secured Notes Obligations to the extent such
are effective at the relevant time, as each may be amended, restated,
supplemented, modified, renewed, extended or Refinanced from time to time in
accordance with the provisions of this Agreement.

 

“Junior Secured Notes
Joinder Agreement” means a joinder agreement in the form of Exhibit A
hereto.

 

“Junior Secured Notes
Obligations” means all Obligations outstanding under the Junior Secured
Notes and the other Junior Secured Notes Documents.  “Junior Secured Notes Obligations” shall
include all interest accrued or accruing (or which would, absent commencement
of an Insolvency or Liquidation Proceeding, accrue) after commencement of an
Insolvency or Liquidation Proceeding in accordance with the rate specified in
the relevant Junior Secured Notes Document, whether or not the claim for such
interest is allowed as a claim in such Insolvency or Liquidation Proceeding.

 

“Junior Secured Notes
Security Documents” means any agreement, document or instrument pursuant to
which a Lien is granted securing any Junior Secured Notes Obligations or under
which rights or remedies with respect to such Liens are governed.

 

“Letter of Credit Rights”
means all present and future “letter of credit rights” (as defined in Article 9
of the UCC).

 

“Lien” means any
mortgage, pledge, hypothec, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or
any other security agreement (including, without limitation, any conditional
sale or other title retention agreement and any capital lease having
substantially the same economic effect as any of the foregoing).

 

“Money” means all
present and future “money” (as defined in Article 9 of the UCC).

 

“New Agent” has the
meaning assigned to that term in Section 5.5.

 

“New Debt Notice” has
the meaning assigned to that term in Section 5.5.

 

“Non-Conforming Plan of
Reorganization” means any Plan of Reorganization whose provisions are
inconsistent with the provisions of this Agreement, including any plan of
reorganization that purports to re-order (whether by subordination,
invalidation, or otherwise) or otherwise disregard, in whole or part, the
provisions of Article II (including the Lien priorities of Section 2.1),
the provisions of Article IV, or the provisions of Article VI,
unless such Plan of Reorganization has been accepted by the voluntary required
vote of each class of Priority Claimholders for such class to have approved
such Plan of Reorganization.

 

“Obligations” means
all present and future loans, advances, liabilities, obligations, covenants, duties,
and debts from time to time owing by any Grantor to any agent or trustee
(including any Agent), the ABL Claimholders, the Senior Secured Notes Claimholders,
the Junior Secured Notes Claimholders or any of them or their respective
Affiliates, arising from or in connection with the ABL Loan Documents, the
Senior Secured Notes Documents or the Junior Secured Notes Documents, whether
for principal, interest or payments for early termination, whether or not
evidenced by any note, or other instrument or document, whether arising from an
extension of credit, opening of a letter of credit, acceptance, loan, guaranty,
indemnification or otherwise, whether direct or indirect, absolute or
contingent, due or to become due, primary or secondary, as principal or
guarantor, and including all principal, interest, charges, 

 

10

 

expenses, fees, attorneys’
fees, filing fees and any other sums chargeable to the Grantors, including, without
limitation, the “Obligations” as defined in the ABL Loan Agreement and any
corresponding term used in the Senior Secured Notes Indenture or the Junior
Secured Notes Agreement.

 

“Permitted Refinancing”
means any Refinancing the governing documentation of which constitutes
Permitted Refinancing Agreements.

 

“Permitted Refinancing
Agreements” means, with respect to either the ABL Loan Agreement, the
Senior Secured Notes, any Additional Pari Passu Senior Secured Notes
Obligations or the Junior Secured Notes, as applicable, any credit agreement,
loan agreement, note agreement, promissory note, indenture or other agreement
or instrument evidencing or governing the terms of any indebtedness or other
financial accommodation that has been incurred to increase, replace, (whether
upon or after termination or otherwise) Refinance or refund in whole or in part
the Obligations outstanding under the ABL Loan Agreement, the Senior Secured
Notes, any Additional Pari Passu Senior Secured Notes Obligations or the Junior
Secured Notes, whether or not such increase, replacement, refinancing or
refunding occurs (i) with the original parties thereto, (ii) on one
or more separate occasions or (iii) simultaneously or not with the termination
or repayment of the ABL Loan Agreement, the Senior Secured Notes, any
Additional Pari Passu Senior Secured Notes Obligations or the Junior Secured
Notes or any other agreement or instrument referred to in this clause, unless
such agreement or instrument expressly provides that it is not intended to be
and is not a Permitted Refinancing Agreement, as such financing documentation
may be amended, restated, supplemented or otherwise modified from time to time
and that, in each case, would not be prohibited by Section 5.3(a).

 

“Person” means any
natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity.

 

“Plan of Reorganization”
means any plan of reorganization, plan of liquidation, agreement for
composition, or other type of plan of arrangement proposed in or in connection
with any Insolvency or Liquidation Proceeding.

 

“Pledged Collateral”
has the meaning set forth in Section 5.4(a).

 

“Prior Lien Agent”
means:

 

(a)           as it relates to the Junior Secured Notes Agent and the
Junior Secured Notes Claimholders for all purposes of this Agreement, each of
the ABL Agent and the Senior Secured Notes Agent;

 

(b)           as it relates to the ABL Agent and the ABL Claimholders
with respect to all matters relating to the Senior Secured Notes Priority
Collateral (but not the ABL Priority Collateral) prior to the Discharge of
Senior Secured Notes Obligations, the Senior Secured Notes Agent; and

 

(c)           as it relates to the Senior Secured Notes Agent and the
Senior Secured Notes Claimholders with respect to all matters relating to the
ABL Priority Collateral (but not the Senior Secured Notes Priority Collateral)
prior to the Discharge of ABL Obligations, the ABL Agent.

 

“Prior Lien Claimholders”
mean:

 

(a)           as it relates to the Junior Secured Notes Claimholders for
all purposes of this Agreement, the ABL Claimholders and the Senior Secured
Notes Claimholders;

 

11

 

(b)           as it relates to the ABL Claimholders with respect to all
matters relating to the Senior Secured Notes Priority Collateral (but not the
ABL Priority Collateral) prior to the Discharge of Senior Secured Notes
Obligations, the Senior Secured Notes Claimholders; and

 

(c)           as it relates to the Senior Secured Notes Claimholders
with respect to all matters relating to the ABL Priority Collateral (but not
the Senior Secured Notes Priority Collateral) prior to the Discharge of ABL
Obligations, the ABL Claimholders.

 

“Prior Lien Collateral”
means with respect to any Person, all Collateral with respect to which (and
only for so long as) such Person is a “Prior Lien Claimholder” as provided in
the definition thereof.

 

“Prior Lien Documents”
mean:

 

(a)           as it relates to the Junior Secured Notes Claimholders for
all purposes of this Agreement, the ABL Loan Documents and the Senior Secured
Notes Documents;

 

(b)           as it relates to the ABL Claimholders with respect to all
matters relating to the Senior Secured Notes Priority Collateral (but not the
ABL Priority Collateral) prior to the Discharge of Senior Secured Notes Obligations,
the Senior Secured Notes Documents; and

 

(c)           as it relates to the Senior Secured Notes Claimholders
with respect to all matters relating to the ABL Priority Collateral (but not
the Senior Secured Notes Priority Collateral) prior to the Discharge of ABL
Obligations, the ABL Loan Documents.

 

“Prior Lien Obligations”
mean:

 

(a)           as it relates to the Junior Secured Notes Obligations for
all purposes of this Agreement, the ABL Obligations and the Senior Secured
Notes Obligations;

 

(b)           as it relates to the ABL Obligations with respect to all
matters relating to the Senior Secured Notes Priority Collateral (but not the
ABL Priority Collateral) prior to the Discharge of Senior Secured Notes
Obligations, the Senior Secured Notes Obligations; and

 

(c)           as it relates to the Senior Secured Notes Obligations with
respect to all matters relating to the ABL Priority Collateral (but not the
Senior Secured Notes Priority Collateral) prior to the Discharge of ABL
Obligations, the ABL Obligations.

 

“Proceeds” means all “proceeds”
(as defined in Article 9 of the UCC), including any payment or property
received on account of any claim secured by Collateral in any Insolvency or
Liquidation Proceeding.

 

“Real Estate Asset”
means, at any time of determination, any interest (fee, leasehold or otherwise)
then owned by the Company or any Grantor in any real property.

 

“Records” means all
present and future “records” (as defined in Article 9 of the UCC).

 

“Recovery” has the
meaning set forth in Section 6.4.

 

“Refinance” means, in
respect of any Indebtedness, to refinance, extend, renew, defease, amend,
modify, supplement, restructure, replace, refund or repay, or to issue other
indebtedness, in exchange or 

 

12

 

replacement for, such Indebtedness,
in any case in whole or in part.  “Refinanced”
and “Refinancing” shall have correlative meanings.

 

“Secured Cash Management Agreement” means any Cash Management Agreement that is entered into by
and between the Company or any Company Subsidiary and any Cash Management Bank.

 

“Secured Hedge Agreement” means any Swap Contract permitted under the ABL Loan Documents, the Senior Secured Notes Dcouments
and the Junior Secured Notes Documents that is entered into by and between
the Company or any Company Subsidiary and any Hedge Bank.

 

“Securities” means
all present and future “Securities” (as defined in Article 9 of the UCC).

 

“Securities Accounts”
means all present and future “securities accounts” (as defined in Article 8
of the UCC), including all monies, “uncertificated securities,” and “securities
entitlements” (as defined in Article 8 of the UCC) contained therein.

 

“Security Entitlements”
means all present and future “security entitlements” (as defined in Article 9
of the UCC).

 

“Senior Secured
Noteholders” means the “Holders” as defined in the Senior Secured Notes Indenture
and any holders of Additional Pari Passu Senior Secured Notes Obligations in
each case solely in their capacities as such and not in any other capacity
(except to the extent that such Senior Secured Noteholder is acting in such
other capacity for the primary purpose of benefiting its Senior Secured Notes Obligations).

 

“Senior Secured Notes”
means, collectively, (a) the Initial Senior Secured Notes and (b) any
other credit agreement, loan agreement, note agreement, promissory note,
indenture or other agreement or instrument evidencing or governing the terms of
any indebtedness or other financial accommodation (other than ABL Obligations)
that has been incurred to increase, replace, Refinance or refund in whole or in
part the Obligations outstanding under the Initial Senior Secured Notes or any
other agreement or instrument referred to in this clause which (I) is
designated as “Senior Secured Notes” by (x) so long as the Senior Secured
Notes Indenture or any Additional Pari Passu Senior Secured Notes Agreement is
in effect, the Senior Secured Notes Agent (and, so long as a Senior Secured
Notes Default has not occurred and is continuing at the time of such
designation, the Company) or (y) otherwise, the Company, and (II) the
Senior Secured Notes Agent for such agreement shall have executed a supplement
to this Agreement agreeing to be bound hereby on the same terms applicable to
the Initial Senior Secured Notes Agent whether or not such increase,
replacement, refinancing or refunding occurs (i) with the original parties
thereto, (ii) on one or more separate occasions or (iii) simultaneously
or not with the termination or repayment of the Initial Senior Secured Notes,
unless such agreement or instrument is not a Permitted Refinancing
Agreement.  Any reference to the Senior
Secured Notes hereunder shall be deemed a reference to any Senior Secured Notes
then in existence.

 

“Senior Secured Notes
Agent” means (i) the Senior Secured Notes Trustee, including its successors
and assigns from time to time, for so long as any Initial Senior Secured Notes
are outstanding and (ii) thereafter, any Additional Pari Passu Senior
Secured Notes Agent.

 

“Senior Secured Notes
Claimholders” means, at any relevant time, the holders of Senior Secured
Notes Obligations at that time, including the Senior Secured Noteholders, each
Additional Pari Passu Senior Secured Notes Agent and the Senior Secured Notes
Agent in each case solely in their capacities as 

 

13

 

such and not in any other
capacity (except to the extent that such Senior Secured Notes Claimholder is acting
in such other capacity for the primary purpose of benefiting its Senior Secured
Notes Obligations).

 

“Senior Secured Notes
Collateral” means any and all of the assets and property of any Grantor,
whether real, personal or mixed, with respect to which a Lien is granted as
security for any Senior Secured Notes Obligations.

 

“Senior Secured Notes
Default” means an “Event of Default” as defined in the Senior Secured Notes
Indenture or in any Additional Pari Passu Senior Secured Notes Agreement.

 

“Senior Secured Notes
Documents” means the Senior Secured Notes Indenture, the Senior Secured
Notes, each Additional Pari Passu Senior Secured Notes Agreement, the Senior
Secured Notes Security Documents and each of the other agreements, documents
and instruments executed pursuant thereto, and any other document or instrument
executed or delivered at any time in connection with any Senior Secured Notes
Obligations, including any intercreditor or joinder agreement among holders of
Senior Secured Notes Obligations to the extent such are effective at the
relevant time, as each may be amended, restated, supplemented, modified,
renewed, extended or Refinanced from time to time in accordance with the provisions
of this Agreement.

 

“Senior Secured Notes
General Intangibles” means all General Intangibles, including Intellectual
Property, which are not ABL Priority Collateral.

 

“Senior Secured Notes
Indenture” has the meaning assigned to that term in the Recitals to this
Agreement.

 

“Senior Secured Notes
Obligations” means all Obligations outstanding under the Senior Secured
Notes and the other Senior Secured Notes Documents, and all Additional Pari
Passu Senior Secured Notes Obligations.  “Senior
Secured Notes Obligations” shall include all interest accrued or accruing (or
which would, absent commencement of an Insolvency or Liquidation Proceeding,
accrue) after commencement of an Insolvency or Liquidation Proceeding in
accordance with the rate specified in the relevant Senior Secured Notes Document,
whether or not the claim for such interest is allowed as a claim in such
Insolvency or Liquidation Proceeding.

 

“Senior Secured Notes
Pledged Collateral” means any Collateral consisting of Capital Stock owned
by any Grantor that is not Excluded Collateral (as defined in the Indenture).(1)

 

“Senior Secured Notes
Priority Collateral” means all now owned or hereafter acquired Senior Secured
Notes Collateral that constitutes:

 

(a)           Real Estate Assets;

 

(b)           Equipment;

 

(c)           Inventory;

 

(1)           These could be securities of a
non-affiliate

 

14

 

(d)           Senior Secured Notes General Intangibles;

 

(e)           Senior Secured Notes Pledged Collateral;

 

(f)            Documents related to Equipment or Inventory;

 

(g)           Deposit Accounts and Securities Accounts to the extent
containing identifiable proceeds of the foregoing (including all cash, cash
equivalents, Money, checks, Instruments, funds, ACH transfers, wired funds,
Investment Property, and other funds and property held in or on deposit in any
of the foregoing, but excluding any identifiable Proceeds of ABL Priority Collateral);

 

(h)           Letter of Credit Rights arising out of, or related to, or
derivative of any of the property or interests in property described in this
definition;

 

(i)            Supporting Obligations and Commercial Tort Claims, in
each case, to the extent arising out of, or related to, or derivative of, the
property or interests described in this definition;

 

(j)            all other Collateral other than ABL Priority Collateral
and Excluded Collateral (as defined in the Indenture); and

 

(k)           all collateral security and guarantees with respect to any
of the foregoing and, subject to Section 3.5, all proceeds,
products, substitutions, replacements, accessions, cash, Money, insurance
proceeds, Instruments, Securities, Security Entitlements, Financial Assets and
Deposit Accounts received as proceeds of any of the foregoing, but excluding
proceeds of ABL Priority Collateral.

 

“Senior
Secured Notes Security Documents” means any agreement, document or
instrument pursuant to which a Lien is granted securing any Senior Secured
Notes Obligations or under which rights or remedies with respect to such Liens
are governed.

 

“Subordinated Lien Agent”
means:

 

(a)           with respect to all Collateral, the Junior Secured Notes
Agent;

 

(b)           with respect to all matters relating to the ABL Priority
Collateral (but not the Senior Secured Notes Priority Collateral) prior to the
Discharge of ABL Obligations, the Senior Secured Notes Agent; and

 

(c)           with respect to all matters relating to the Senior Secured
Notes Priority Collateral (but not the ABL Priority Collateral) prior to the
Discharge of Senior Secured Notes Obligations, the ABL Agent.

 

“Subordinated Lien
Claimholders” mean:

 

(a)           with respect to all Collateral, the Junior Secured Notes
Claimholders;

 

(b)           with respect to all matters relating to the ABL Priority
Collateral (but not the Senior Secured Notes Priority Collateral) prior to the
Discharge of ABL Obligations, the Senior Secured Notes Claimholders; and

 

15

 

(c)           with respect to all matters relating to the Senior Secured
Notes Priority Collateral (but not the ABL Priority Collateral) prior to the
Discharge of Senior Secured Notes Obligations, the ABL Claimholders.

 

“Subordinated Lien
Collateral” means with respect to any Person, all Collateral with respect
to which (and only for so long as) such Person is a “Subordinated Lien
Claimholder” as provided in the definition thereof.

 

“Subordinated Lien
Documents” mean:

 

(a)           the Junior Secured Notes Documents for all purposes of
this Agreement;

 

(b)           with respect to all matters relating to the ABL Priority
Collateral (but not the Senior Secured Notes Priority Collateral) prior to the
Discharge of ABL Obligations, the Senior Secured Notes Documents; and

 

(c)           with respect to all matters relating to the Senior Secured
Notes Priority Collateral (but not the ABL Priority Collateral) prior to the
Discharge of Senior Secured Notes Obligations, the ABL Loan Documents.

 

“Subordinated Lien
Obligations” mean:

 

(a)           the Junior Secured
Notes Obligations for all purposes of this Agreement;

 

(b)           with respect to all
matters relating to the ABL Priority Collateral (but not the Senior Secured
Notes Priority Collateral) prior to the Discharge of ABL Obligations, the
Senior Secured Notes Obligations; and

 

(c)           with respect to all
matters relating to the Senior Secured Notes Priority Collateral (but not the
ABL Priority Collateral) prior to the Discharge of Senior Secured Notes
Obligations, the ABL Obligations.

 

“Subsidiary” means,
with respect to any Person, any corporation, partnership, limited liability
company, association, joint venture or other business entity of which more than
50% of the total voting power of shares of stock or other ownership interests
entitled (without regard to the occurrence of any contingency) to vote in the
election of the Person or Persons (whether directors, managers, trustees or
other Persons performing similar functions) having the power to direct or cause
the direction of the management and policies thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof.

 

“Supporting Obligations”
mean all present and future “supporting obligations” (as defined in Article 9
of the UCC).

 

“Swap Contract” means (a) any
and all rate swap transactions, basis swaps, credit derivative transactions,
forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond
price or bond index swaps or options or forward bond or forward bond price or
forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar transactions
or any combination of any of the foregoing (including any options to enter into
any of the foregoing), 

 

16

 

whether or not any such
transaction is governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations, which are
subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master
agreement (any such master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

 

“UCC” means the
Uniform Commercial Code (or any similar equivalent legislation) as in effect
from time to time in the State of New York; provided, however,
that, at any time, if by reason of mandatory provisions of law, any or all of
the perfection or priority of the Agents’ security interest in any item or
portion of the Collateral is governed by the Uniform Commercial Code as in
effect in a jurisdiction other that the State of New York, the term “UCC” shall
mean the Uniform Commercial Code as in effect, at such time, in such other
jurisdiction for purposes of the provisions hereof relating to such perfection
or priority and for purposes of definitions relating to such provisions.

 

1.2.          Terms Generally. 
The definitions of terms in this Agreement shall apply equally to the
singular and plural forms of the terms defined. 
Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have
the same meaning and effect as the word “shall.” Unless the context requires
otherwise:

 

(a)           any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, restated, supplemented, modified, renewed or extended;

 

(b)           any reference herein
to any Person shall be construed to include such Person’s permitted successors
and assigns;

 

(c)           the words “herein,” “hereof”
and “hereunder,” and words of similar import, shall be construed to refer to
this Agreement in its entirety and not to any particular provision hereof;

 

(d)           all references
herein to Sections or Articles shall be construed to refer to Sections or
Articles of this Agreement;

 

(e)           all uncapitalized
terms have the meanings, if any, given to them in the UCC, as now or hereafter
enacted in the State of New York (unless otherwise specifically defined
herein);

 

(f)            the words “asset”
and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including
cash, securities, accounts and contract rights;

 

(g)           any reference herein
to a Person in a particular capacity or capacities excludes such Person in any
other capacity or individually;

 

(h)           any reference herein
to any law shall be construed to refer to such law as amended, modified,
codified, replaced, or re-enacted, in whole or in part, and in effect on the pertinent
date; and

 

17

 

(i)            in the compilation
of periods of time hereunder from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each
means” to, but not through.”

 

II.

LIEN PRIORITIES

 

2.1.          Relative Priorities. 
Irrespective of the date, time, method, manner or order of grant,
attachment or perfection of any Liens securing the ABL Obligations, the Senior
Secured Notes Obligations or the Junior Secured Notes Obligations (including,
in each case, irrespective of whether any such Lien is granted (or secures
Obligations relating to the period) before or after the commencement of any
Insolvency or Liquidation Proceeding) and notwithstanding any provision of any
UCC, or any other applicable law, or the ABL Loan Documents, the Senior Secured
Notes Documents or the Junior Secured Notes Documents or any defect or
deficiencies in, or failure to attach or perfect, the Liens securing the ABL
Obligations, the Senior Secured Notes Obligations or the Junior Secured Notes
Obligations or any other circumstance whatsoever, the ABL Agent, on behalf of
the ABL Claimholders, the Senior Secured Notes Agent, on behalf of the Senior
Secured Notes Claimholders and the Junior Secured Notes Agent, on behalf of the
Junior Secured Notes Claimholders, each hereby agree that:

 

(a)           any Lien of the
Prior Lien Agent on the ABL Priority Collateral securing Prior Lien
Obligations, whether such Lien is now or hereafter held by or on behalf of the
Prior Lien Agent or any other Prior Lien Claimholder or any other agent or
trustee therefor, regardless of how or when acquired, whether by grant,
possession, statute, operation of law, subrogation or otherwise, shall be
senior in all respects and prior to any Lien on the ABL Priority Collateral securing
any Subordinated Lien Obligations; and

 

(b)           any Lien of the
Prior Lien Agent on the Senior Secured Notes Priority Collateral securing Prior
Lien Obligations, whether such Lien is now or hereafter held by or on behalf of
the Prior Lien Agent, any other Prior Lien Claimholder or any other agent or
trustee therefor, regardless of how or when acquired, whether by grant,
possession, statute, operation of law, subrogation or otherwise, shall be
senior in all respects to all Liens on the Senior Secured Notes Priority Collateral
securing any Subordinated Lien Obligations.

 

2.2.          Prohibition on Contesting Liens.  Each of the Senior Secured Notes Agent, on
behalf of each Senior Secured Notes Claimholder, the ABL Agent, on behalf of
each ABL Claimholder, and the Junior Secured Notes Agent, on behalf of each
Junior Secured Notes Claimholder, consents to the granting of Liens in favor of
the other Agents to secure the ABL Obligations, the Senior Secured Notes
Obligations and the Junior Secured Notes Obligations, as applicable, and agrees
that no Claimholder will be entitled to, and it will not (and shall be deemed
to have irrevocably, absolutely, and unconditionally waived any right to),
contest (directly or indirectly) or support (directly or indirectly) any other
Person in contesting, in any proceeding (including any Insolvency or
Liquidation Proceeding):  (a) the
attachment, perfection, priority, validity or enforceability of any Lien in the
Collateral held by or on behalf of any of the ABL Claimholders to secure the
payment of the ABL Obligations, any of the Senior Secured Notes Claimholders to
secure the payment of the Senior Secured Notes Obligations or any of the Junior
Secured Notes Claimholders to secure the payment of the Junior Secured Notes
Obligations, (b) the priority, validity or enforceability of the ABL
Obligations, the Senior Secured Notes Obligations or the Junior Secured Notes
Obligations, including the allowability or priority of the ABL Obligations, the
Senior Secured Notes Obligations or the Junior Secured Notes Obligations, as
applicable, in any Insolvency or Liquidation Proceeding, or (c) the
validity or enforceability of the provisions of this Agreement; provided
that nothing in this Agreement shall be construed to prevent or impair the
rights of the ABL Agent, on 

 

18

 

behalf of the ABL Claimholders, the Senior
Secured Notes Agent, on behalf of the Senior Secured Notes Claimholders, or the
Junior Secured Notes Agent, on behalf of the Junior Secured Notes Claimholders
to enforce this Agreement, including the provisions of this Agreement relating
to the priority of the Liens securing the Obligations as provided in Sections
2.1, 3.1, 3.2 and 6.1.

 

2.3.          No New Liens. 
During the term of this Agreement, whether or not any Insolvency or
Liquidation Proceeding has been commenced by or against one or more of the
Company or any other Grantor, the parties hereto agree, subject to Article VI,
that the Company shall not, and shall not permit any other Grantor to:

 

(a)           grant or permit any
additional Liens on any asset or property to secure any Senior Secured Notes
Obligations unless it has granted or concurrently grants a Lien on such asset
or property to secure the ABL Obligations and the Junior Secured Notes
Obligations (if any) with the respective priorities required by Section 2.1;

 

(b)           grant or permit any
additional Liens on any asset or property to secure any ABL Obligations unless
it has granted or concurrently grants a Lien on such asset or property to
secure the Senior Secured Notes Obligations and the Junior Secured Notes
Obligations (if any) with the respective priorities required by Section 2.1;
and

 

(c)           grant or permit any
additional Liens on any asset or property to secure any Junior Secured Notes
Obligations unless it has granted or concurrently grants a Lien on such asset
or property to secure the Senior Secured Notes Obligations and the ABL
Obligations with the respective priorities required by Section 2.1;

 

provided that with
respect to the Junior Secured Notes Obligations, clauses (a) and (b) above
shall not apply to Pledged Collateral or Securities which are specifically
excluded from the Junior Secured Notes Collateral pursuant to the terms of the
Junior Secured Notes Security Documents.

 

To the extent any additional
Liens are granted on any asset or property in contravention of this Section 2.3
for any reason, without limiting any other rights and remedies available
hereunder, the ABL Agent, on behalf of the ABL Claimholders, the Senior Secured
Notes Agent, on behalf of the Senior Secured Notes Claimholders and the Junior
Secured Notes Agent, on behalf of the Junior Secured Notes Claimholders, agree
that any amounts received by or distributed to any of them pursuant to or as a
result of Liens granted in contravention of this Section 2.3 shall
be subject to Section 4.2.

 

2.4.          Similar Liens and Agreements.  The parties hereto agree that it is their
intention that the ABL Collateral, the Senior Secured Notes Collateral and the
Junior Secured Notes Collateral be identical except (a) the Junior Secured
Notes Collateral shall not include certain Pledged Collateral or Securities
which are specifically excluded from the Junior Secured Notes Collateral
pursuant to the terms of the Junior Secured Notes Security Documents and (b) as
provided in Article VI and as otherwise provided herein.  In furtherance of the foregoing and of Section 8.8,
the parties hereto agree, subject to the other provisions of this Agreement,
upon request by the ABL Agent, the Senior Secured Notes Agent or the Junior
Secured Notes Agent, to cooperate in good faith (and to direct their counsel to
cooperate in good faith) from time to time in order to determine the specific
items included in the ABL Collateral, the Senior Secured Notes Collateral and
the Junior Secured Notes Collateral and the steps taken to perfect their
respective Liens thereon and the identity of the respective parties obligated
under the ABL Loan Documents, the Senior Secured Notes Documents and the Junior
Secured Notes Documents.

 

19

 

III.

EXERCISE OF REMEDIES; ENFORCEMENT

 

3.1.          Restrictions on the Subordinated Lien Agents and the
Subordinated Lien Claimholders with respect to ABL Priority Collateral.

 

(a)           Until the Discharge of Prior Lien Obligations has
occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against any Grantor, the Subordinated Lien Agents and the
Subordinated Lien Claimholders:

 

(i)            will
not exercise or seek to exercise (but instead shall be deemed to have hereby
irrevocably, absolutely and unconditionally waived), any rights, powers, or
remedies with respect to any ABL Priority Collateral (including (A) any
right of set-off or any right under any Account Agreement, landlord waiver or
bailee’s letter or similar agreement or arrangement to which any Subordinated
Lien Agent or any other Subordinated Lien Claimholder is a party, (B) any
right to undertake self-help re-possession or non-judicial Disposition of any
ABL Priority Collateral (including any partial or complete strict foreclosure),
and/or (C) any right to institute, prosecute, or otherwise maintain any
action or proceeding with respect to such rights, powers or remedies (including
any action of foreclosure));

 

(ii)           will
not, directly or indirectly, contest, protest or object to or hinder any
judicial or non-judicial foreclosure proceeding or action (including any
partial or complete strict foreclosure) brought by the Prior Lien Agent or any
Prior Lien Claimholder relating to the ABL Priority Collateral or any other
exercise by the Prior Lien Agent or any other Prior Lien Claimholder of any
other rights, powers and remedies relating to the ABL Priority Collateral,
including any sale, lease, exchange, transfer, or other Disposition of the ABL
Priority Collateral, whether under the Prior Lien Documents, applicable law, or
otherwise;

 

(iii)          will
not object to the forbearance by the Prior Lien Agent or any Prior Lien
Claimholders from bringing or pursuing any Enforcement action with respect to
the ABL Priority Collateral;

 

(iv)          except
as may be permitted by Section 3.1(c), irrevocably, absolutely, and
unconditionally waive any and all rights the Subordinated Lien Agent or the
Subordinated Lien Claimholders may have as a junior lien creditor or otherwise
to object (and seek or be awarded any relief of any nature whatsoever based on
any such objection) to the manner in which the Prior Lien Agent or the Prior
Lien Claimholders (A) enforce or collect (or attempt to collect) the Prior
Lien Obligations or (B) realize or seek to realize upon or otherwise
enforce the Liens in and to the ABL Priority Collateral securing the Prior Lien
Obligations, regardless of whether any action or failure to act by or on behalf
of the Prior Lien Agent or Prior Lien Claimholders is adverse to the interest
of the Subordinated Lien Agent or the Subordinated Lien Claimholders.  Without limiting the generality of the
foregoing, to the maximum extent permitted by law, the Subordinated Lien
Claimholders shall be deemed to have hereby irrevocably, absolutely, and unconditionally
waived any right to object (and seek or be awarded any relief of any nature
whatsoever based on any such objection), at any time prior or subsequent to any
Disposition of any of the ABL Priority Collateral, on the ground(s) that
any such Disposition of ABL Priority Collateral (x) would not be or was
not “commercially reasonable” within the meaning of any applicable UCC and/or (y) would
not or did not comply with any other requirement under any applicable UCC or
under any other applicable law governing the manner in which a secured creditor
(including one with a Lien on real property) is to realize on its collateral;
and

 

20

 

(v)           acknowledge
and agree that no covenant, agreement or restriction contained in the
Subordinated Lien Documents shall be deemed to restrict in any way the rights
and remedies of the Prior Lien Agent or the Prior Lien Claimholders with respect
to the ABL Priority Collateral as set forth in this Agreement and the Prior
Lien Documents;

 

provided, however,
that, in the case of (i), (ii) and (iii) above, the Liens granted to
secure the Subordinated Lien Obligations of the Subordinated Lien Claimholders
shall attach to any Proceeds resulting from actions taken by the Prior Lien
Agent or any Prior Lien Claimholder with respect to the ABL Priority Collateral
in accordance with the respective priorities set forth in Section 2.1
of this Agreement after application of such Proceeds to the extent necessary to
meet the requirements of a Discharge of Prior Lien Obligations.

 

(b)           Until the Discharge of Prior Lien Obligations has
occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against any Grantor, the Prior Lien Agent and the other Prior
Lien Claimholders shall have the right to enforce rights, exercise remedies
(including set-off) and, in connection therewith (including any Enforcement)
make determinations regarding the release, Disposition, or restrictions with
respect to the ABL Priority Collateral without any consultation with or the
consent of any Subordinated Lien Agent or any Subordinated Lien Claimholder; provided,
however, that the Liens securing the Subordinated Lien Obligations shall
remain on the Proceeds (other than those applied to the Prior Lien Obligations
in accordance with Section 4.1) of such ABL Priority Collateral
released or disposed of subject to the relative priorities described in Section 2.1.  In exercising rights, powers, and remedies
with respect to the ABL Priority Collateral, the Prior Lien Agent and the Prior
Lien Claimholders may enforce the provisions of the Prior Lien Documents and
exercise rights, powers, and/or remedies thereunder and/or under applicable law
or otherwise, all in such order and in such manner as they may determine in the
exercise of their sole discretion.  Such
exercise and enforcement shall include the rights of an agent appointed by them
to sell or otherwise dispose of the ABL Priority Collateral upon foreclosure,
to incur expenses in connection with such sale or Disposition, and to exercise
all the rights and remedies of a secured creditor under the UCC and of a
secured creditor under the Bankruptcy Laws of any applicable jurisdiction.

 

(c)           Notwithstanding anything to the contrary contained herein,
any Subordinated Lien Agent or Subordinated Lien Claimholder may:

 

(i)            file
a claim or statement of interest with respect to its Subordinated Lien Obligations;
provided that an Insolvency or Liquidation Proceeding has been commenced
by or against any Grantor;

 

(ii)           take
any action (not adverse to the priority status of the Liens on the ABL Priority
Collateral, or the rights of the Prior Lien Agent or any of the Prior Lien
Claimholders to exercise rights, powers, and/or remedies in respect thereof,
including those under Article VI) in order to create, perfect,
preserve or protect (but not enforce) its Lien on any of the ABL Priority Collateral;

 

(iii)          file
any necessary responsive or defensive pleadings in opposition to any motion,
claim, adversary proceeding or other pleading made by any Person objecting to
or otherwise seeking the disallowance of the claims of the Prior Lien
Claimholders, including any claims secured by the ABL Priority Collateral, if
any, in each case in accordance with the terms of this Agreement;

 

21

 

(iv)          file
any pleadings, objections, motions or agreements which assert rights or interests
available to unsecured creditors of the Grantors arising under either any
Insolvency or Liquidation Proceeding or applicable non-bankruptcy law, in each
case not inconsistent with the terms of this Agreement or applicable law
(including the Bankruptcy Laws of any applicable jurisdiction) and, subject to
the restrictions set forth in Section 3.2, any pleadings,
objections, motions or agreements which assert rights or interests available to
secured creditors solely with respect to the Senior Secured Notes Priority Collateral;

 

(v)           vote
on any Plan of Reorganization, file any proof of claim, make other filings and
make any arguments and motions (including in support of or opposition to, as
applicable, the confirmation or approval of any Plan of Reorganization) that
are, in each case, in accordance with the terms of this Agreement.  Without limiting the generality of the
foregoing or of the other provisions of this Agreement, any vote to accept, and
any other act to support the confirmation or approval of, any Non-Conforming
Plan of Reorganization shall be inconsistent with and accordingly, a violation
of the terms of this Agreement, and the Prior Lien Agent shall be entitled to
have any such vote to accept a Non-Conforming Plan of Reorganization changed
and any such support of any Non-Conforming Plan of Reorganization withdrawn;
and

 

(vi)          to
the extent not otherwise permitted by the terms of the Senior Secured Notes
Documents, in the case of the Senior Secured Notes Agent or any Senior Secured
Notes Claimholder, exercise any of its rights, powers, and/or remedies with
respect to any of the Senior Secured Notes Priority Collateral.

 

The Subordinated Lien
Agents, on behalf of the Subordinated Lien Claimholders, agrees that no Subordinated
Lien Claimholder will take or receive any ABL Priority Collateral (including
Proceeds) in connection with the exercise of any right or remedy (including
set-off) in its capacity as a creditor in violation of this Agreement.  Without limiting the generality of the
foregoing, unless and until the Discharge of Prior Lien Obligations has
occurred, except as expressly provided in Section 6.7, the sole
right of the Subordinated Lien Agents and the Subordinated Lien Claimholders
with respect to the ABL Priority Collateral is to hold a Lien on such
Collateral pursuant to the Subordinated Lien Documents for the period and to
the extent granted therein and to receive a share of the Proceeds thereof, if any,
in accordance with Section 4.1.

 

(d)           Except as otherwise specifically set forth in Sections
3.1(a), 3.1(c)(v) and Article VI, any Subordinated
Lien Agent or Subordinated Lien Claimholders with respect to the ABL Priority
Collateral may exercise rights and remedies as unsecured creditors against any
Grantor and, subject to Section 3.2, may exercise rights and
remedies with respect to the Senior Secured Notes Priority Collateral, in each
case, in accordance with the terms of the Subordinated Lien Documents and
applicable law; provided, however, that in the event that any
Subordinated Lien Agent or any Subordinated Lien Claimholder becomes a judgment
Lien creditor in respect of ABL Priority Collateral as a result of its enforcement
of its rights as an unsecured creditor (or secured creditor with respect to the
Senior Secured Notes Priority Collateral) with respect to the Subordinated Lien
Obligations, such judgment Lien shall be subject to the terms of this Agreement
for all purposes (including in relation to the Prior Lien Obligations) as the
other Liens on ABL Priority Collateral securing the Subordinated Lien
Obligations are subject to this Agreement.

 

(e)           Subject to Section 6.3, nothing in this Section 3.1
shall prohibit the receipt by any Subordinated Lien Agent or any other
Subordinated Lien Claimholders of the required payments of interest, principal
and other amounts owed in respect of the Subordinated Lien Obligations so long
as such receipt is not the direct or indirect result of the exercise by any Subordinated
Lien Agent or any Subordinated 

 

22

 

Lien Claimholders of rights
or remedies as a secured creditor (including set-off) with respect to ABL Priority
Collateral or enforcement in contravention of this Agreement of any Lien held
by any of them.  Nothing in this Section 3.1
impairs or otherwise adversely affects any rights or remedies the Prior Lien
Agent or the Prior Lien Claimholders may have against the Grantors under the
Prior Lien Documents.

 

3.2.          Restrictions on the Subordinated Lien Agents and the
Subordinated Lien Claimholders with respect to Senior Secured Notes Priority
Collateral.

 

(a)           Until the Discharge of Prior Lien Obligations has
occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against any Grantor, subject to the limited extent provided in Article VI,
the Subordinated Lien Agents and the other Subordinated Lien Claimholders:

 

(i)            will not exercise or seek to exercise (but instead shall
be deemed to have hereby irrevocably, absolutely and unconditionally waived)
any rights, powers, or remedies with respect to any Senior Secured Notes
Priority Collateral (including (A) any right of set-off or any right under
any Account Agreement, landlord waiver or bailee’s letter or similar agreement
or arrangement to which any Subordinated Lien Agent or any Subordinated Lien
Claimholder is a party, (B) any right to undertake self-help repossession
or nonjudicial Disposition of any Senior Secured Notes Priority Collateral
(including any partial or complete strict foreclosure), or (C) any right
to institute, prosecute or otherwise maintain any action or proceeding with
respect to such rights, powers, or remedies (including any action of
foreclosure));

 

(ii)           will
not, directly or indirectly, contest, protest or object to or hinder any judicial
or non-judicial foreclosure proceeding or action (including any partial or
complete strict foreclosure) brought by the Prior Lien Agent or any other Prior
Lien Claimholder relating to the Senior Secured Notes Priority Collateral or
any other exercise by the Prior Lien Agent or any other Prior Lien Claimholder
of any rights, powers and remedies relating to the Senior Secured Notes Priority
Collateral, including any sale, lease, exchange, transfer, or other Disposition
of the Senior Secured Notes Priority Collateral, whether under the Prior Lien
Documents, applicable law, or otherwise;

 

(iii)          will
not object to the forbearance by the Prior Lien Agent or the Prior Lien
Claimholders from bringing or pursuing any Enforcement with respect to the
Senior Secured Notes Priority Collateral;

 

(iv)          except
as may be permitted by Section 3.2(c), irrevocably, absolutely and
unconditionally waive any and all rights the Subordinated Lien Agent and
Subordinated Lien Claimholders may have as a junior lien creditor or otherwise
to object (and seek or be awarded any relief of any nature whatsoever based on
any such objection) to the manner in which the Prior Lien Agent or the Prior
Lien Claimholders (a) enforce or collect (or attempt to collect) the Prior
Lien Obligations or (b) realize or seek to realize upon or otherwise
enforce the Liens in and to the Senior Secured Notes Priority Collateral
securing the Prior Lien Obligations, regardless of whether any action or
failure to act by or on behalf of the Prior Lien Agent or Prior Lien Claimholders
is adverse to the interest of the Subordinated Lien Claimholders.  Without limiting the generality of the
foregoing, the Subordinated Lien Claimholders shall be deemed to have hereby
irrevocably, absolutely and unconditionally waived any right to object (and
seek or be awarded any relief of any nature whatsoever based on any such
objection), at any time prior to or subsequent to any Disposition of any Senior
Secured Notes Priority Collateral, on the ground(s) that any such Disposition
of Senior Secured Notes Priority Collateral (a) would not be or was not “commercially

 

23

 

reasonable” within the meaning of any applicable UCC and/or (b) would
not or did not comply with any other requirement under any applicable UCC or
under any other applicable law governing the manner in which a secured creditor
(including one with a Lien on real property) is to realize on its collateral;
and

 

(v)           acknowledge
and agree that no covenant, agreement or restriction contained in any
Subordinated Lien Document shall be deemed to restrict in any way the rights
and remedies of the Prior Lien Agent or the Prior Lien Claimholders with respect
to the Senior Secured Notes Priority Collateral as set forth in this Agreement
and the Prior Lien Documents;

 

provided, however,
that in the case of (i), (ii) and (iii) above, the Liens granted to
secure the Subordinated Lien Obligations of the Subordinated Lien Claimholders
shall attach to any Proceeds resulting from actions taken by the Prior Lien
Agent or any Prior Lien Claimholder with respect to the Senior Secured Notes
Priority Collateral in accordance with the respective priorities set forth in Section 2.1
of this Agreement after application of such Proceeds to the extent necessary to
meet the requirements of a Discharge of Prior Lien Obligations.

 

(b)           Until the Discharge of Prior Lien Obligations has
occurred, whether or not any Insolvency or Liquidation Proceeding has been
commenced by or against any Grantor, the Prior Lien Agent and the Prior Lien
Claimholders shall have the right to enforce rights, exercise remedies
(including set-off) and make, in connection therewith (including Enforcements)
determinations regarding the release, Disposition, or restrictions with respect
to the Senior Secured Notes Priority Collateral without any consultation with
or the consent of any Subordinated Lien Agent or any Subordinated Lien
Claimholder; provided, however, that the Liens securing the
Subordinated Lien Obligations shall remain on the Proceeds (other than those
properly applied to the Prior Lien Obligations in accordance with the Prior
Lien Documents) of such Collateral released or disposed of subject to the
relative priorities described in Section 2.1.  In exercising rights, powers and remedies
with respect to the Senior Secured Notes Priority Collateral, the Prior Lien
Agent and the Prior Lien Claimholders may enforce the provisions of the Prior
Lien Documents and exercise rights, powers and/or remedies thereunder, all in
such order and in such manner as they may determine in the exercise of their
sole discretion.  Such exercise and
enforcement shall include the rights of an agent appointed by them to sell or
otherwise dispose of the Senior Secured Notes Priority Collateral upon
foreclosure, to incur expenses in connection with such sale or Disposition, and
to exercise all the rights, powers and remedies of a secured creditor under the
UCC and of a secured creditor under the Bankruptcy Laws of any applicable
jurisdiction.

 

(c)           Notwithstanding anything to the contrary contained herein,
any Subordinated Lien Agent and any Subordinated Lien Claimholder may:

 

(i)            file
a claim or statement of interest with respect to the Subordinated Lien Obligations;
provided that an Insolvency or Liquidation Proceeding has been commenced
by or against any Grantor;

 

(ii)           take
any action (not adverse to the priority status of the Liens on the Senior Secured
Notes Priority Collateral, or the rights of the Prior Lien Agent or any of the
Prior Lien Claimholders to exercise rights, powers and/or remedies in respect
thereof, including those under Article VI) in order to create,
perfect, preserve or protect (but not enforce) its Lien on any of the Senior
Secured Notes Priority Collateral;

 

(iii)          file
any necessary responsive or defensive pleadings in opposition to any motion,
claim, adversary proceeding or other pleading made by any Person objecting to
or otherwise 

 

24

 

seeking the disallowance of the claims of the Subordinated Lien
Claimholders, including any claims secured by the Senior Secured Notes Priority
Collateral, if any, in each case in accordance with the terms of this Agreement;

 

(iv)          file
any pleadings, objections, motions or agreements which assert rights or interests
available to unsecured creditors of the Grantors arising under either any
Insolvency or Liquidation Proceeding or applicable non-bankruptcy law, in each
case not inconsistent with the terms of this Agreement or applicable law
(including the Bankruptcy Laws of any applicable jurisdiction) and, subject to
the restrictions set forth in Section 3.1, any pleadings,
objections, motions or agreements which assert rights or interests available to
secured creditors solely with respect to the ABL Priority Collateral;

 

(v)           vote
on any Plan of Reorganization, file any proof of claim, make other filings and
make any arguments and motions (including in support of or opposition to, as
applicable, the confirmation or approval of any Plan of Reorganization) that
are, in each case, in accordance with the terms of this Agreement.  Without limiting the generality of the
foregoing or of the other provisions of this Agreement, any vote to accept, and
any other act to support the confirmation or approval of, any Non-Conforming
Plan of Reorganization shall be inconsistent with and, accordingly, a violation
of the terms of this Agreement, and the Prior Lien Agent shall be entitled to
have any such vote to accept a Non-Conforming Plan of Reorganization changed
and any such support of any Non-Conforming Plan of Reorganization withdrawn;
and

 

(vi)          to
the extent otherwise permitted by the ABL Loan Documents, in the case of the
ABL Agent or any ABL Claimholder, exercise any of its rights, powers, and/or
remedies with respect to any of the ABL Priority Collateral.

 

Each Subordinated Lien
Agent, on behalf of the Subordinated Lien Claimholders, agrees that no Subordinated
Lien Claimholder will take or receive any Senior Secured Notes Priority
Collateral (including Proceeds) in connection with the exercise of any right or
remedy (including set-off) with respect to any Senior Secured Notes Priority
Collateral in violation of this Agreement. 
Without limiting the generality of the foregoing, unless and until the
Discharge of Prior Lien Obligations has occurred, except as expressly provided
in Section 3.2(c)(vi), the sole right of the Subordinated Lien
Agents and the Subordinated Lien Claimholders with respect to the Senior
Secured Notes Priority Collateral is to hold a Lien on such Collateral pursuant
to the Subordinated Lien Documents for the period and to the extent granted
therein and to receive a share of the Proceeds thereof, if any, in accordance
with Section 4.1.

 

(d)           Except as otherwise specifically set forth in Sections
3.2(a), 3.2(c)(v) and Article VI, the Subordinated
Lien Agents and the Subordinated Lien Claimholders with respect to the Senior
Secured Notes Collateral may exercise rights and remedies as unsecured
creditors against any Grantor and, subject to Section 3.1, may
exercise rights and remedies with respect to the ABL Priority Collateral, in
each case, in accordance with the terms of the Subordinated Lien Documents and
applicable law; provided, however, that in the event that any
Subordinated Lien Agent or Subordinated Lien Claimholder becomes a judgment
Lien creditor in respect of Senior Secured Notes Priority Collateral as a
result of its enforcement of its rights as an unsecured creditor (or a secured
creditor with respect to the ABL Priority Collateral) with respect to the Subordinated
Lien Obligations, such judgment Lien shall be subject to the terms of this
Agreement for all purposes (including in relation to the Prior Lien
Obligations) as the other Liens securing the Subordinated Lien Obligations are
subject to this Agreement.

 

(e)           Subject to Section 6.3, nothing in this Section 3.2
shall prohibit the receipt by any Subordinated Lien Agent or any Subordinated
Lien Claimholders of the required payments of interest, principal 

 

25

 

and other amounts owed in
respect of the Subordinated Lien Obligations so long as such receipt is not the
direct or indirect result of the exercise by a Subordinated Lien Agent or any
Subordinated Lien Claimholders of rights or remedies as a secured creditor
(including set-off) with respect to Senior Secured Notes Priority Collateral or
enforcement in contravention of this Agreement of any Lien held by any of
them.  Nothing in this Section 3.2
impairs or otherwise adversely affects any rights or remedies the Prior Lien
Agent or the Prior Lien Claimholders may have against the Grantors under the
Prior Lien Documents.

 

3.3.          Set-Off and Tracing of and Priorities in Proceeds.  The Senior Secured Notes Agent, on behalf of
the Senior Secured Notes Claimholders, and the Junior Secured Notes Agent, on
behalf of the Junior Secured Notes Claimholders, acknowledge and agree that, to
the extent the Senior Secured Notes Agent, any Senior Secured Notes
Claimholder, the Junior Secured Notes Agent or any Junior Secured Notes
Claimholder exercises its rights of set-off against any ABL Priority
Collateral, the amount of such set-off shall be held and distributed pursuant
to Section 4.1.  The ABL
Agent, for itself and on behalf of the ABL Claimholders, the Senior Secured
Notes Agent, for itself and on behalf of the Senior Secured Notes Claimholders,
and the Junior Secured Notes Agent, for itself and on behalf of the Junior
Secured Notes Claimholders, each further agrees that, solely as between Agents
and Claimholders, prior to an issuance of an Enforcement Notice or the
commencement of any Insolvency or Liquidation Proceeding, any Collateral
purchased or acquired by a Grantor using Proceeds of Collateral shall be
treated as Collateral, and not Proceeds of Collateral, for purposes of
determining the relative priorities in such Collateral.  In addition, unless and until the Discharge
of ABL Obligations occurs, subject to Section 4.2, the Senior
Secured Notes Agent, on behalf of itself and the Senior Secured Notes
Claimholders, and the Junior Secured Notes Agent, on behalf of itself and the
Junior Secured Notes Claimholders, each hereby consents to the application,
prior to the receipt by the ABL Agent of an Enforcement Notice issued by the
Senior Secured Notes Agent, and thereafter, except as it relates to
identifiable proceeds of Senior Notes Priority Collateral, of cash or other
Proceeds of Collateral, deposited under Account Agreements in favor of the ABL
Agent to the repayment of ABL Obligations pursuant to the ABL Loan Documents.

 

IV.

PAYMENTS

 

4.1.          Application of Proceeds.

 

(a)           Prior to the Discharge of Prior Lien Obligations, whether
or not any Insolvency or Liquidation Proceeding has been commenced by or
against any Grantor, all ABL Priority Collateral or Proceeds thereof received
in connection with the sale or other Disposition of, or collection on, such ABL
Priority Collateral upon any Enforcement by any Agent or any Claimholder or in
any Insolvency or Liquidation Proceeding, shall be delivered to the Prior Lien
Agent and shall be applied in the following order: first, to repay all
ABL Obligations in such order as is specified in the ABL Loan Documents or as a
court of competent jurisdiction may otherwise direct until the Discharge of ABL
Obligations has occurred, second, to repay all outstanding Senior
Secured Notes Obligations in such order as specified in the Senior Secured
Notes Security Documents or as a court of competent jurisdiction may otherwise
direct until the Discharge of Senior Secured Notes Obligations has occurred and
third, to repay any Junior Secured Notes Obligations in such order as
specified in the Junior Secured Notes Security Documents or as a court of
competent jurisdiction may otherwise direct.

 

(b)           Prior to the Discharge of Prior Lien Obligations, whether
or not any Insolvency or Liquidation Proceeding has been commenced by or
against any Grantor, all Senior Secured Notes Priority Collateral or Proceeds
thereof received in connection with the sale or other Disposition of, or
collection on, such Senior Secured Notes Priority Collateral upon any Enforcement
by any Agent or any Claimholder or in any Insolvency or Liquidation Proceeding,
shall be delivered to the Prior Lien Agent and shall be 

 

26

 

applied in the following
order: first, to repay all Senior Secured Notes Obligations in such
order as is specified in the Senior Secured Notes Security Documents or as a
court of competent jurisdiction may otherwise direct until the Discharge of
Senior Secured Notes Obligations has occurred, second, to repay all
outstanding ABL Obligations in such order as specified in the ABL Loan
Documents or as a court of competent jurisdiction may otherwise direct until
the Discharge of ABL Obligations has occurred and third, to repay any
Junior Secured Notes Obligations in such order as specified in the Junior
Secured Notes Security Documents or as a court of competent jurisdiction may
otherwise direct.

 

(c)           Unless otherwise agreed to by the ABL Agent and the Senior
Secured Notes Agent, prior to the Discharge of Prior Lien Obligations, whether
or not any Insolvency or Liquidation Proceeding has been commenced by or
against any Grantor, Proceeds received in connection with the sale or other
disposition of any Grantor (whether in one transaction or a series of
transactions) shall be allocated among the Collateral sold based on the
respective net book values of the ABL Priority Collateral and the Senior Secured
Notes Priority Collateral of the Grantor sold in such sale or disposition and
the applicable allocable share of such proceeds shall be delivered to the
applicable Prior Lien Agent.

 

4.2.          Payments Over in Violation of Agreement.  So long as the Discharge of Prior Lien
Obligations has not occurred with respect to any Collateral, whether or not any
Insolvency or Liquidation Proceeding has been commenced by or against any
Grantor, any Collateral (including assets or Proceeds subject to Liens referred
to in the final sentence of Section 2.3) received by any Agent or
any Claimholder in connection with any Enforcement (including set-off) relating
to the Collateral in contravention of this Agreement or in any Insolvency or
Liquidation Proceeding shall be segregated and held in trust and forthwith paid
over to the Prior Lien Agent for the benefit of the Prior Lien Claimholders, in
the same form as received, with any necessary endorsements or as a court of
competent jurisdiction may otherwise direct. 
Each Prior Lien Agent with respect to any Collateral is hereby
authorized by the Subordinated Lien Agents and the Subordinated Lien
Claimholders with respect to such Collateral to make any such endorsements as
agent for any Subordinated Lien Agent or any Subordinated Lien
Claimholder.  This authorization is
coupled with an interest and is irrevocable until the Discharge of Prior Lien
Obligations.

 

4.3.          Application of Payments.  Subject to the other terms of this Agreement,
all payments received by (a) the ABL Agent or the ABL Claimholders may be
applied, reversed and reapplied, in whole or in part, to the ABL Obligations to
the extent provided for in the ABL Loan Documents and (b) the Senior
Secured Notes Agent or the Senior Secured Notes Claimholders may be applied,
reversed and reapplied, in whole or in part, to the Senior Secured Notes
Obligations to the extent provided for in the Senior Secured Notes Documents.

 

4.4.          Revolving Nature of ABL Obligations.  The Senior Secured Notes Agent, on behalf of
the Senior Secured Notes Claimholders, and the Junior Secured Notes Agent, on
behalf of the Junior Secured Notes Claimholders, each acknowledges and agrees
that the ABL Loan Agreement includes a revolving commitment and that the amount
of the ABL Obligations that may be outstanding at any time or from time to time
may be increased or reduced and subsequently reborrowed.

 

V.

OTHER AGREEMENTS

 

5.1.          Releases.

 

(a)           (i)            If, in
connection with any exercise of remedies or Enforcement (including as provided
for in Section 3.1(b) or Section 6.8(a)) by the
Prior Lien Agent or any Prior Lien Claimholder with respect to any ABL Priority
Collateral, irrespective of whether an ABL Default, Senior Secured Notes 

 

27

 

Default or Junior Secured
Notes Default has occurred and its continuing, the Prior Lien Agent, on behalf
of any of the Prior Lien Claimholders, releases any of its Liens on any part of
the ABL Priority Collateral, then the Liens, if any, of the Subordinated Lien
Agents, for the benefit of the Subordinated Lien Claimholders, on the ABL
Priority Collateral sold or disposed of in connection therewith, shall be
automatically, unconditionally and simultaneously released; provided
that, to the extent the Proceeds of such ABL Priority Collateral are not applied
to reduce Prior Lien Obligations, the Subordinated Lien Agents shall retain
Liens on such Proceeds with the respective priorities set forth in Section 2.1.  Each Subordinated Lien Agent, on behalf of
the applicable Subordinated Lien Claimholders, promptly shall execute and deliver
to the Prior Lien Agent such termination statements, releases and other
documents as the Prior Lien Agent may request in writing to effectively confirm
such release.

 

(ii)           If, in connection with any exercise
of remedies or Enforcement (including as provided for in Sections 3.2(b) or
Section 6.8(b)) by the Prior Lien Agent or any Prior Lien
Claimholder with respect to any Senior Secured Notes Priority Collateral,
irrespective of whether a Senior Secured Notes Default, ABL Default or Junior
Secured Notes Default has occurred and its continuing, the Prior Lien Agent, on
behalf of any of the Prior Lien Claimholders, releases any of its Liens on any
part of the Senior Secured Notes Priority Collateral, then the Liens, if any,
of each Subordinated Lien Agent, for the benefit of the Subordinated Lien
Claimholders, on the Senior Secured Notes Priority Collateral sold or disposed
of in connection therewith, shall be automatically, unconditionally and
simultaneously released; provided, further, that, to the extent
the Proceeds of such Senior Secured Notes Priority Collateral are not applied
to reduce Prior Lien Obligations, the Subordinated Lien Agents shall retain
Liens on such Proceeds with the respective priorities set forth in Section 2.1.  Each Subordinated Lien Agent, on behalf of
the applicable Subordinated Lien Claimholders, promptly shall execute and
deliver to the Prior Lien Agent such termination statements, releases and other
documents as the Prior Lien Agent may request in writing to effectively confirm
such release.

 

(iii)          If, in connection with any Disposition
permitted under any Prior Lien Documents (other than in connection with a
Discharge of Prior Lien Obligations), irrespective of whether an ABL Default,
Senior Secured Notes Default or Junior Secured Notes Default has occurred and
is continuing, the Prior Lien Agent, on behalf of the Prior Lien Claimholders,
releases any of its Liens on any part of the ABL Priority Collateral, then the
Liens, if any, of the Subordinated Lien Agents, for the benefit of the
Subordinated Lien Claimholders, on the ABL Priority Collateral sold or disposed
of in connection therewith, shall be automatically, unconditionally and
simultaneously released; provided that, to the extent the Proceeds of
such ABL Priority Collateral are not applied to reduce Prior Lien Obligations,
the Subordinated Lien Agents shall retain Liens on such Proceeds with the
respective priorities set forth in Section 2.1.  Each Subordinated Lien Agent, on behalf of
the applicable Subordinated Lien Claimholders, promptly shall execute and deliver
to the Prior Lien Agent such termination statements, releases and other
documents as the Prior Lien Agent may request in writing to effectively confirm
such release.

 

(iv)          If, in connection with any Disposition
permitted under any Prior Lien Documents (other than in connection with a
Discharge of Prior Lien Obligations), irrespective of whether an ABL Default,
Senior Secured Notes Default or Junior Secured Notes Default has occurred and
is continuing, the Prior Lien Agent, on behalf of the Prior Lien Claimholders,
releases any of its Liens on any part of the Senior Secured Notes Priority
Collateral, then the Liens, if any, of each Subordinated Lien Agent, for the benefit
of the Subordinated Lien Claimholders, on the Senior Secured Notes Priority
Collateral sold or disposed of in connection therewith, shall be automatically,
unconditionally and simultaneously released; provided, further,
that, to the extent the Proceeds of such Senior Secured Notes Priority Collateral
are not applied to reduce Prior Lien Obligations, the Subordinated Lien Agents
shall retain Liens on such Proceeds with the respective priorities set forth in
Section 2.1.  Each
Subordinated Lien Agent, on behalf of the applicable Subordinated Lien
Claimholders, promptly shall execute and deliver to the Prior Lien Agent such 

 

28

 

termination statements,
releases and other documents as the Prior Lien Agent may request in writing to
effectively confirm such release

 

(b)           Each Subordinated Lien Agent with respect to any
Collateral, on behalf of the applicable Subordinated Lien Claimholders, hereby
irrevocably constitutes and appoints each Prior Lien Agent with respect to such
Collateral and any officer or agent of such Prior Lien Agent, with full power
of substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Subordinated Lien Agent or
such Subordinated Lien Claimholder or in the Subordinated Lien Agent’s own
name, from time to time in such Prior Lien Agent’s discretion exercised in good
faith, for the purpose of carrying out the terms of this Section 5.1,
to take any and all appropriate action and to execute any and all documents and
instruments which may be necessary to accomplish the purposes of this Section 5.1,
including any endorsements or other instruments of transfer or release.

 

5.2.          Insurance.

 

(a)           Subject to the terms of, and the rights of the Grantors
under, the Prior Lien Documents, the Prior Lien Agent, on behalf of the Prior
Lien Claimholders, shall have the sole and exclusive right to adjust settlement
for any insurance policy covering the ABL Priority Collateral in the event of
any loss thereunder and to approve any award granted in any condemnation or
similar proceeding (or any deed in lieu of condemnation) affecting such ABL
Priority Collateral.  All Proceeds of any
such policy and any such award (or any payments with respect to a deed in lieu
of condemnation) if in respect of the ABL Priority Collateral and to the extent
required by the Prior Lien Documents shall be paid to the Prior Lien Agent for
the benefit of the Prior Lien Claimholders pursuant to the terms of the Prior Lien
Documents (including, without limitation, for purposes of cash
collateralization of letters of credit) and thereafter until the Discharge of
Prior Lien Obligations has occurred. If any Subordinated Lien Agent or any
Subordinated Lien Claimholders shall, at any time, receive any Proceeds of any
such insurance policy or any such award or payment with respect to ABL Priority
Collateral in contravention of this Agreement, it shall segregate and hold in
trust and forthwith pay such amount over to the Prior Lien Agent in accordance
with the terms of Section 4.2.

 

(b)           Subject to the terms of, and the rights of the Grantors
under, the Prior Lien Documents, the Prior Lien Agent, on behalf of the Prior
Lien Claimholders, shall have the sole and exclusive right to adjust settlement
for any insurance policy covering the Senior Secured Notes Priority Collateral
in the event of any loss thereunder and to approve any award granted in any
condemnation or similar proceeding (or any deed in lieu of condemnation)
affecting such Senior Secured Notes Priority Collateral.  All Proceeds of any such policy and any such
award (or any payments with respect to a deed in lieu of condemnation) if in
respect of the Senior Secured Notes Priority Collateral and to the extent
required by the Prior Lien Documents shall be paid to the Prior Lien Agent for
the benefit of the Prior Lien Claimholders pursuant to the terms of the Prior
Lien Documents (including, without limitation, for purposes of cash collateralization
of letters of credit) and thereafter until the Discharge of Prior Lien
Obligations has occurred. If any Subordinated Lien Agent or any Subordinated
Lien Claimholders shall, at any time, receive any Proceeds of any such
insurance policy or any such award or payment with respect to Senior Secured
Notes Priority Collateral in contravention of this Agreement, it shall
segregate and hold in trust and forthwith pay such amount over to the Prior
Lien Agent in accordance with the terms of Section 4.2.

 

(c)           To effectuate the foregoing, and to the extent that the
pertinent insurance company agrees to issue such endorsements, the Agents shall
each receive separate lender’s loss payable endorsements naming themselves as
loss payee and additional insured, as their interests may appear, with respect
to policies which insure Collateral hereunder.

 

29

 

5.3.          Amendments to ABL Loan Documents, Senior Secured Notes
Documents and Junior Secured Notes Documents; Refinancing.

 

(a)           All without affecting the Lien subordination or other
provisions of this Agreement, the (i) ABL Obligations may be Refinanced
without notice to, or the consent of the Senior Secured Notes Agent, the Senior
Secured Notes Claimholders, the Junior Secured Notes Agent or the Junior Secured
Notes Claimholders and without affecting the Lien subordination or other
provisions of this Agreement, (ii) Senior Secured Notes Obligations may be
Refinanced without notice to, or consent of, the ABL Agent, the ABL Claimholders,
the Junior Secured Notes Agent or the Junior Secured Notes Claimholders and (iii) Junior
Secured Notes Obligations may be Refinanced without notice to, or consent of,
the ABL Agent, the ABL Claimholders, the Senior Secured Notes Agent or the
Senior Secured Notes Claimholders, in each case, without affecting the Lien
subordination and other provisions of this Agreement so long as such
Refinancing is on terms and conditions that would not violate the Senior
Secured Notes Documents, the ABL Loan Documents or the Junior Secured Notes
Documents; provided, however, that, in each case, the lenders or
holders of any such Refinancing debt that is purported to be secured by a Lien
on any Collateral bind themselves in writing to the terms of this Agreement; provided
further, however, that, if such Refinancing debt is secured by a
Lien on any Collateral the holders of such Refinancing debt shall be deemed
bound by the terms hereof regardless of whether or not such writing is
provided; provided, further, however, that no such
Refinancing shall be prohibited by the ABL Loan Documents, the Senior Secured
Notes Documents or the Junior Secured Notes Documents; provided, further,
however, that no such Refinancing shall have the effect of prohibiting
the ABL Obligations (or any Refinancing thereof) or Senior Secured Notes
Obligations (or any Refinancing thereof) to the extent permitted under the
Senior Secured Notes Documents as in effect on the date hereof or ABL Loan
Documents as in effect on the date hereof, respectively.  For the avoidance of doubt, the sale or other
transfer of Indebtedness is not restricted by this Agreement but the provisions
of this Agreement shall be binding on all holders of ABL Obligations, Senior
Secured Notes Obligations and Junior Secured Notes Obligations.

 

(b)           The Company shall use commercially reasonable efforts to
notify the parties hereto of any written amendment or modification to the ABL
Loan Documents, the Senior Secured Notes Documents and the Junior Secured Notes
Documents, but the failure to provide such notice shall not create a cause of
action against the party failing to give such notice or create any claim or
right on behalf of any Secured Party.

 

(c)           So long as the Discharge of ABL Obligations has not
occurred, the Senior Secured Notes Agent agrees that each Senior Secured Notes
Security Document shall include the following language (or similar language
acceptable to the ABL Agent):  “Notwithstanding
anything herein to the contrary, the liens and security interests granted to
U.S. Bank National Association, as Senior Secured Notes Agent, pursuant to this
Agreement and the exercise of any right or remedy by U.S. Bank National
Association, as Trustee hereunder, are subject to the provisions of the
Intercreditor Agreement dated as of August 14, 2009 (as amended, restated,
supplemented or otherwise modified from time to time, the “Intercreditor
Agreement”), among Bank of America, N.A., as ABL Agent, U.S. Bank National
Association, as Senior Secured Notes Agent, the Junior Secured Notes Agent from
time to time party thereto and the Grantors (as defined in the Intercreditor
Agreement) from time to time party thereto. 
In the event of any conflict between the terms of the Intercreditor
Agreement and the terms of this Agreement, the terms of the Intercreditor
Agreement shall govern and control.”

 

(d)           So long as the Discharge of Senior Secured Notes
Obligations has not occurred, the ABL Agent agrees that each applicable ABL
Security Document shall include the following language (or similar language
acceptable to the Senior Secured Notes Agent): “Notwithstanding anything herein
to the contrary, the liens and security interests granted to the Collateral
Agent pursuant to this Agreement and the 

 

30

 

exercise of any right or
remedy by the Collateral Agent hereunder, are subject to the provisions of the
Intercreditor Agreement dated as of August 14, 2009 (as amended, restated,
supplemented or otherwise modified from time to time, the “Intercreditor
Agreement”), among Bank of America, N.A., as ABL Agent, U.S. Bank National
Association, as Senior Secured Notes Agent, the Junior Secured Notes Agent from
time to time party thereto and the Grantors (as defined in the Intercreditor
Agreement) from time to time party thereto. 
In the event of any conflict between the terms of the Intercreditor
Agreement and the terms of this Agreement, the terms of the Intercreditor
Agreement shall govern and control.”

 

(e)           So long as the Discharge of Prior Lien Obligations has not
occurred, the Junior Secured Notes Agent agrees that each applicable Junior
Secured Notes Security Document shall include the following language (or
similar language acceptable to ABL Agent and the Senior Secured Notes
Agent):  “Notwithstanding anything herein
to the contrary, the liens and security interests granted to the Collateral
Agent pursuant to this Agreement and the exercise of any right or remedy by the
Collateral Agent hereunder, are subject to the provisions of the Intercreditor
Agreement dated as of August 14, 2009 (as amended, restated, supplemented
or otherwise modified from time to time, the “Intercreditor Agreement”),
among Bank of America, N.A., as ABL Agent, U.S. Bank National Association, as
Senior Secured Notes Agent, the Junior Secured Notes Agent from time to time
party thereto and the Grantors (as defined in the Intercreditor Agreement) from
time to time party thereto.  In the event
of any conflict between the terms of the Intercreditor Agreement and the terms
of this Agreement, the terms of the Intercreditor Agreement shall govern and
control.”

 

5.4.          Collateral agents for Perfection.

 

(a)           Each Agent agrees to hold that part of the Collateral that
is in its possession or control (or in the possession or control of its agents
or bailees) to the extent that possession or control thereof is taken to
perfect a Lien thereon (such Collateral, which shall include without limitation
Account Agreements and Capital Stock (but shall exclude solely for purposes of
the Junior Secured Notes Obligations any Pledged Collateral which is
specifically excluded from the Junior Secured Notes Collateral pursuant to the
Junior Secured Notes Security Documents), being the “Pledged Collateral”)
as (i) in the case of the ABL Agent, the collateral agent for the ABL
Claimholders under the ABL Loan Documents or, in the case of the Senior Secured
Notes Agent, the collateral agent for the Senior Secured Notes Claimholders
under the Senior Secured Notes Documents or, in the case of the Junior Secured
Notes Collateral Agent, the collateral agent for the Junior Secured Notes
Claimholders and (ii) collateral agent for the benefit of, and on behalf
of, each other Agent (such agreement being intended, among other things, to
satisfy the requirements of Sections 8-301(a)(2), 8-106(d) and 9-313(c) of
the UCC) and any assignee solely for the purpose of perfecting the security
interest granted under the ABL Loan Documents, the Senior Secured Notes
Documents and the Junior Secured Notes Documents, respectively, subject to the
terms and conditions of this Section 5.4.  The Senior Secured Notes Agent, the Senior
Secured Notes Claimholders, the Junior Secured Notes Agent and the Junior
Secured Notes Claimholders hereby appoint the ABL Agent as their collateral
agent for the purposes of perfecting their security interest in all Pledged
Collateral in which the ABL Agent has a perfected security interest under the
UCC.  The ABL Agent, the ABL Claimholders,
the Junior Secured Notes Agent and the Junior Secured Notes Claimholders hereby
appoint the Senior Secured Notes Agent as their collateral agent for the
purposes of perfecting their security interest in all Pledged Collateral in
which the Senior Secured Notes Agent has a perfected security interest under
the UCC.  The ABL Agent, the ABL
Claimholders, the Senior Secured Notes Agent and the Senior Secured Notes
Claimholders hereby appoint the Junior Secured Notes Agent as their collateral
agent for the purposes of perfecting their security interest in all Pledged
Collateral in which the Junior Secured Notes Agent has a perfected security
interest under the UCC.  Each Agent
hereby accepts such appointments pursuant to this Section 5.4(a) and
acknowledges and agrees that it shall act for the benefit of, and on behalf of,
the other Claimholders with respect to any Pledged Collateral and that any
Proceeds received by

 

31

 

such Agent under any Pledged
Collateral shall be applied in accordance with Article IV.  In furtherance of the foregoing, each Grantor
hereby grants a security interest in the Pledged Collateral to (x) the
Senior Secured Notes Agent for the benefit of, and on behalf of, the ABL
Claimholders and the Junior Secured Notes Claimholders, (y) the ABL Agent
for the benefit of, and on behalf of, the Senior Secured Notes Claimholders and
the Junior Secured Notes Claimholders and (z) the Junior Secured Notes
Agent for the benefit of, and on behalf of, the ABL Claimholders and the Senior
Secured Notes Claimholders.

 

(b)           No Agent shall have any
obligation whatsoever to any other Secured Party as a result of Section 5.4(a) to
ensure that the Pledged Collateral is genuine or owned by any of the Grantors
or to preserve rights or benefits of any Person.  The duties or responsibilities of the
respective Agents under this Section 5.4 shall be limited solely to
holding the Pledged Collateral as collateral agent in accordance with this Section 5.4
and delivering the Pledged Collateral with respect to which it is the Prior
Lien Agent that is in its possession upon a Discharge of Prior Lien Obligations
as provided in paragraph (d) below.

 

(c)           No Agent acting pursuant to
this Section 5.4 shall have by reason of the ABL Loan Documents,
the Senior Secured Notes Documents, the Junior Secured Notes Documents, this
Agreement or any other document a fiduciary relationship in respect of any
other Agent or Secured Party.

 

(d)           Upon the Discharge of Senior
Secured Notes Obligations, the Senior Secured Notes Agent shall deliver the
remaining Pledged Collateral (if any) in its possession together with any
necessary endorsements, first, to the ABL Agent to the extent the
Discharge of ABL Obligations has not occurred, and second, to the Junior
Secured Notes Agent to the extent there are Junior Secured Notes outstanding or
the Discharge of Junior Secured Notes Obligations has not occurred.  Upon the Discharge of ABL Obligations, the
ABL Agent shall deliver the remaining Pledged Collateral (if any) in its
possession together with any necessary endorsements, first, to the
Senior Secured Notes Agent to the extent the Discharge of Senior Secured Notes
Obligations has not occurred, and second, to the Junior Secured Notes
Agent to the extent there are Junior Secured Notes outstanding or the Discharge
of Junior Secured Notes Obligations has not occurred.  Notwithstanding anything to the contrary
contained in this Agreement, any obligation of the Agent, to make any delivery
to the other Agent under this Section 5.4(d) or Section 5.5
is subject to (i) the order of any court of competent jurisdiction, or (ii) any
automatic stay imposed in connection with any Insolvency or Liquidation Proceeding.

 

5.5.          When Discharge of ABL
Obligations and Discharge of Senior Secured Notes Obligations Deemed to Not
Have Occurred.  If at any
time after the Discharge of ABL Obligations or a Discharge of Senior Secured
Notes Obligations, the Company shall enter into any Permitted Refinancing of
any ABL Obligation or Senior Secured Notes Obligations, as applicable, then
such Discharge of ABL Obligations or Discharge of Senior Secured Notes
Obligations shall automatically be deemed not to have occurred for all purposes
of this Agreement (other than with respect to any actions taken as a result of
the occurrence of such first Discharge of ABL Obligations or Discharge of
Senior Secured Notes Obligations in order to effectuate such discharge among (i) the
agent(s) and other claimholders under the facility to be discharged, (ii) the
agents and other claimholders under the new facility, and (iii) the
Grantors), and, from and after the date on which the New Debt Notice is
delivered to each Agent in accordance with the next sentence, the obligations
under such Permitted Refinancing shall automatically be treated as ABL
Obligations or Senior Secured Notes Obligations for all purposes of this
Agreement, as applicable, including for purposes of the Lien priorities and
rights in respect of Collateral set forth herein, and the ABL Agent or the
Senior Secured Notes Agent, as applicable, under such new ABL Loan Documents or
Senior Secured Notes Documents, as applicable, shall be the ABL Agent or the
Senior Secured Notes Agent, as applicable, for all purposes of this
Agreement.  Upon receipt of a notice (the
“New Debt Notice”) stating that the Company has entered into new ABL
Loan Documents or new Senior Secured Notes Documents (which notice shall
include a complete copy of the relevant new documents and provide 

 

32

 

the identity of the new Agent, such agent,
the “New Agent”), each other Agent, upon written request of the New
Agent, shall promptly (a) enter into such documents and agreements
(including amendments or supplements to this Agreement) as the Company or such
New Agent shall reasonably request in order to provide to the New Agent the
rights contemplated hereby, in each case consistent in all material respects
with the then terms of this Agreement and (b) deliver to the New Agent any
Pledged Collateral in the possession of any Subordinated Lien Agent to the
extent such New Agent is the Prior Lien Agent with respect to such Pledged
Collateral together with any necessary endorsements (or otherwise allow the New
Agent to obtain control of such Pledged Collateral).  In accordance with Section 5.3(a),
the New Agent shall agree in a writing addressed to each other Agent and the
Claimholders, as applicable, to be bound by the terms of this Agreement.

 

VI.

INSOLVENCY OR LIQUIDATION PROCEEDINGS

 

6.1.          Finance and Sale Issues.  Each Subordinated Lien Agent, on behalf of
the applicable Subordinated Lien Claimholders, hereby agrees that, until the
Discharge of Prior Lien Obligations has occurred, if any Grantor shall be
subject to any Insolvency or Liquidation Proceeding and the Prior Lien Agent or
the Prior Lien Claimholders with respect to any of such Subordinated Lien
Claimholders’ Subordinated Lien Collateral shall desire to permit the use of “cash
collateral” (as such term is defined in Section 363(a) of the
Bankruptcy Code) representing Proceeds of such Subordinated Lien Collateral or
to permit any Grantor to obtain financing, whether from the Prior Lien
Claimholders or any other Person under Section 364 of the Bankruptcy Code
or any similar Bankruptcy Law (“DIP Financing”) secured by a Lien on
such Subordinated Lien Collateral, then no Subordinated Lien Claimholder will
be entitled to raise (and will not raise or support any Person in raising), but
instead shall be deemed to have hereby irrevocably and absolutely waived, any
objection to, and shall not otherwise in any manner be entitled to oppose or
will oppose or support any Person in opposing, such cash collateral use or DIP
Financing (including, except as expressly provided below, any claim that the
Subordinated Lien Claimholders are entitled to adequate protection on account
of their interests in such Subordinated Lien Collateral as a condition thereto)
so long as such cash collateral use or DIP Financing meets the following
requirements: (i) each Subordinated Lien Claimholder retains a Lien on its
Subordinated Lien Collateral for any DIP Financing with, except as provided in
the following sentence, the respective priorities provided in Section 2.1,
and (x) with respect to Subordinated Lien Collateral of the ABL
Claimholders or cash collateral in respect thereof, no Lien is granted to
secure such DIP Financing on any ABL Priority Collateral and no such cash
collateral to be used constitutes Proceeds of ABL Priority Collateral unless
the ABL Claimholders have consented thereto in accordance with the ABL Loan
Agreement or (y) with respect to Subordinated Lien Collateral of the
Senior Secured Notes Claimholders or cash collateral in respect thereof, no
Lien is granted to secure such DIP Financing on any Senior Secured Notes
Priority Collateral and no such cash collateral to be used constitutes Proceeds
of Senior Secured Notes Priority Collateral unless the Senior Secured Notes
Claimholders have consented thereto, (ii) to the extent that the Prior
Lien Agent is granted adequate protection in the form of a Lien on Collateral
arising after the commencement of the Insolvency or Liquidation Proceeding, the
Subordinated Lien Claimholders are permitted to seek a Lien on such additional
Collateral with, except as set forth in the following sentence, the relative
priority set forth in Section 2.1 (and no Prior Lien Agent or Prior
Lien Claimholder shall oppose any motion by any Subordinated Lien Claimholder
to receive such a Lien), (iii) the terms of such DIP Financing or use of
cash collateral do not require any Grantor to seek approval for any Plan of
Reorganization that is not a Conforming Plan of Reorganization and (iv) the
terms of such DIP Financing do not require such Subordinated Claimholders to
extend additional credit pursuant to such DIP Financing.  If requested by the Prior Lien Agent, each
Subordinated Lien Agent and Subordinated Lien Claimholders shall be required to
subordinate and will subordinate its Liens in its Subordinated Lien Collateral
to the Liens securing any such DIP Financing (and all obligations relating
thereto, including any “carve-out” granting 

 

33

 

administrative priority status or Lien
priority to secure repayment of fees and expenses of professionals retained by
any debtor or creditors’ committee and bankruptcy court and U.S. trustee fees);
provided that the Liens on such Subordinated Lien Collateral securing such DIP
Financing rank pari  passu with or senior to the Liens securing
the Prior Lien Obligations.  Each
Subordinated Lien Agent on behalf of itself and the applicable Subordinated
Lien Claimholders, agrees that no such Person shall provide to such Grantor any
DIP Financing (or support any other Person in seeking to provide to any Grantor
any such DIP Financing) to the extent that any Subordinated Lien Claimholder
would, in connection with such financing, be granted a Lien on any of its
Subordinated Lien Collateral unless the Prior Lien Claimholders shall have
consented thereto.

 

6.2.          Relief from the Automatic
Stay.  Until the Discharge of Prior
Lien Obligations, each Subordinated Lien Agent, and the other Subordinated Lien
Claimholders, agree that none of them shall seek (or support any other Person
seeking) relief from the automatic stay or any other stay in any Insolvency or
Liquidation Proceeding in respect of any of their respective Subordinated Lien
Collateral, without the prior written consent of the Prior Lien Agent for such
Collateral (given or not given in its sole and absolute discretion), unless (i) the
Prior Lien Agent already has filed a motion (which remains pending) for such
relief with respect to its interest in such Collateral and (ii) a
corresponding motion, in the reasonable judgment of the applicable Subordinated
Lien Agent, must be filed solely for the purpose of preserving such
Subordinated Lien Agent’s ability to receive residual distributions pursuant to
Section 4.1, although the Subordinated Lien Claimholders shall
otherwise remain subject to the applicable restrictions in Section 3.1
and Section 3.2 following the granting of any such relief from the
automatic stay.

 

6.3.          Adequate Protection.

 

(a)           Prior to the Discharge of
Prior Lien Obligations, each Subordinated Lien Agent, on behalf of itself and
the applicable Subordinated Lien Claimholders, agrees that none of them shall
be entitled to contest and none of them shall contest (or support any other
Person contesting) (but instead shall be deemed to have hereby irrevocably,
absolutely, and unconditionally waived any such right):

 

(i)            any request by the Prior Lien Agent or the other
Prior Lien Claimholders for relief from the automatic stay with respect to the
Subordinated Lien Collateral of such Subordinated Lien Claimholders; or

 

(ii)           any request by the Prior Lien Agent or the other
Prior Lien Claimholders for adequate protection with respect to the
Subordinated Lien Collateral of such Subordinated Lien Claimholders; or

 

(iii)          any objection by the Prior Lien Agent or the other
Prior Lien Claimholders to any motion, relief, action or proceeding based on
the Prior Lien Agent or the other Prior Lien Claimholders claiming a lack of
adequate protection with respect to the Subordinated Lien Collateral of such
Subordinated Lien Claimholders.

 

(b)           Consistent with the
foregoing provisions in this Section 6.3, and except as provided in
Sections 6.1 and 6.7, in any Insolvency or Liquidation
Proceeding, no Subordinated Lien Claimholder shall be entitled (and each
Subordinated Lien Claimholder shall be deemed to have hereby irrevocably,
absolutely, and unconditionally waived any right) to seek or otherwise be
granted any type of adequate protection with respect to its interests in its
Subordinated Lien Collateral (except as expressly set forth in Section 6.1
or as may otherwise be consented to in writing by the Prior Lien Agent with
respect to such Collateral in its sole and absolute discretion); provided,
however, subject to Section 6.1, Subordinated 

 

34

 

Lien Claimholders may seek
and obtain adequate protection in the form of an additional or replacement
Liens on Collateral so long as (i) the Prior Lien Claimholders have been
granted adequate protection in the form of a replacement lien on such
Collateral, and (ii) any such Lien on Subordinated Lien Collateral (and on
any Collateral granted as adequate protection for the Subordinated Lien
Claimholders in respect of their interest in such Subordinated Lien Collateral)
is subordinated to the Liens of the Prior Lien Agent in such Collateral on the
same basis as the other Liens of the Subordinated Lien Agents on Subordinated
Lien Collateral; and

 

(c)           Nothing herein shall limit
the rights of any Prior Lien Agent or the Prior Lien Claimholders to seek
adequate protection with respect to their rights in their Prior Lien Collateral
in any Insolvency or Liquidation Proceeding (including adequate protection in
the form of a cash payment, periodic cash payments or otherwise) so long as
such request is not otherwise inconsistent with this Agreement.

 

6.4.          Avoidance Issues.  If any Prior Lien Claimholder is required in
any Insolvency or Liquidation Proceeding or otherwise to turn over or otherwise
pay to the estate of the applicable Grantor any amount paid in respect of ABL
Obligations or the Senior Secured Notes Obligations, as applicable (a “Recovery”),
then such ABL Claimholders or Senior Secured Notes Claimholders shall be
entitled to a reinstatement of ABL Obligations or the Senior Secured Notes
Obligations, as applicable, with respect to all such recovered amounts.  If this Agreement shall have been terminated
with respect to any Claimholder prior to such Recovery, this Agreement shall be
reinstated in full force and effect, and such prior termination shall not
diminish, release, discharge, impair or otherwise affect the obligations of the
parties hereto from such date of reinstatement.

 

6.5.          Reorganization Securities.  Subject to the ability of the ABL
Claimholders, the Senior Secured Notes Claimholders and the Junior Secured
Notes Claimholders, as applicable, to support or oppose confirmation or
approval of any Conforming Plan of Reorganization or to oppose confirmation or
approval of any Non-Conforming Plan of Reorganization, as provided herein, if,
in any Insolvency or Liquidation Proceeding, debt obligations of the
reorganized debtor secured by Liens upon any property of the reorganized debtor
are distributed pursuant to a Plan of Reorganization, both on account of Prior
Lien Obligations and on account of Subordinated Lien Obligations, then, to the
extent the debt obligations distributed on account of the Prior Lien
Obligations and on account of the Subordinated Lien Obligations are secured by
Liens upon the same property, the provisions of this Agreement will survive the
distribution of such debt obligations pursuant to such plan and will apply with
like effect to the debt obligations so distributed, to the Liens securing such
debt obligations and the distribution of Proceeds thereof.

 

6.6.          Post-Petition Interest.  No Subordinated Lien Claimholder shall oppose
or seek to challenge any claim by any Prior Lien Agent or any Prior Lien
Claimholder for allowance in any Insolvency or Liquidation Proceeding of Prior
Lien Obligations consisting of post-petition interest, fees or expenses to the
extent of the value of the Lien on such Prior Lien Claimholder’s Prior Lien
Collateral, without regard to the existence of the Subordinated Lien
Obligations with respect to such Collateral.

 

6.7.          Separate Grants of Security
and Separate Classification.  The ABL Agent, on behalf of the ABL
Claimholders, the Senior Secured Notes Agent, on behalf of the Senior Secured
Notes Claimholders and the Junior Secured Notes Agent, on behalf of the Junior
Secured Notes Claimholders, acknowledge and intend that:  the respective grants of Liens pursuant to
the ABL Security Documents, the Senior Secured Notes Documents and the Junior
Secured Notes Security Documents constitute three separate and distinct grants
of Liens, and because of, among other things, their differing rights in the
Collateral (i) the Senior Secured Notes Obligations are fundamentally
different from the ABL Obligations and the Junior Secured Notes Obligations, (ii) the
ABL Obligations are fundamentally different from the 

 

35

 

Senior Secured Notes Obligations and the
Junior Secured Notes Obligations and (iii) the Junior Secured Notes
Obligations are fundamentally different from the ABL Obligations and the Senior
Secured Notes Obligations and, in each case, must be separately classified in
any Plan of Reorganization proposed or confirmed (or approved) in an Insolvency
or Liquidation Proceeding.  To further
effectuate the intent of the parties as provided in the immediately preceding
sentence, if it is held that the claims of (i) the ABL Claimholders and
the Senior Secured Notes Claimholders and/or the Junior Secured Notes
Claimholders, (ii) the Senior Secured Notes Claimholders and the ABL
Claimholders and/or the Junior Secured Notes Claimholders or (iii) the
Junior Secured Notes Claimholders and the ABL Claimholders and/or the Senior
Secured Notes Claimholders, in each case, in respect of the Collateral
constitute claims in the same class (rather than at least three separate classes
of secured claims with the priorities described in Section 2.1),
then the ABL Claimholders, the Senior Secured Notes Claimholders and the Junior
Secured Notes Claimholders hereby acknowledge and agree that all distributions
shall be made as if there were three separate classes of ABL Obligations,
Senior Secured Notes Obligations and Junior Secured Notes Obligations (with the
effect being that, to the extent that the aggregate value of their Prior Lien
Collateral is sufficient (for this purpose ignoring all claims held by the
Subordinated Lien Claimholders thereon), the Prior Lien Claimholders shall be
entitled to receive, in addition to amounts distributed to them in respect of
principal, pre-petition interest and other claims, all amounts owing in respect
of post-petition interest, fees or expenses that is available from their Prior
Lien Collateral, before any distribution is made in respect of the Subordinated
Lien Obligations with respect to such Collateral, with each Subordinated Lien
Claimholder acknowledging and agreeing to turn over to the Prior Lien Agent
with respect to such Collateral amounts otherwise received or receivable by
them to the extent necessary to effectuate the intent of this sentence, even if
such turnover has the effect of reducing the aggregate recoveries of the
Subordinated Lien Obligations.

 

6.8.          Asset Dispositions in an
Insolvency or Liquidation Proceeding.

 

(a)           Without limiting the Prior
Lien Agent’s and the Prior Lien Claimholders’ rights under Section 3.1(b),
neither any Subordinated Lien Agent nor any other Subordinated Lien Claimholder
shall, in any Insolvency or Liquidation Proceeding or otherwise, oppose any
sale or Disposition of any ABL Priority Collateral that is supported by the
Prior Lien Claimholders, and each Subordinated Lien Agent and each other
Subordinated Lien Claimholder will be deemed to have irrevocably, absolutely,
and unconditionally consented under Section 363 of the Bankruptcy Code
(and otherwise) to any sale of any ABL Priority Collateral supported by the
Prior Lien Claimholders and to have released their Liens on such assets; provided
that to the extent the Proceeds of such Collateral are not applied to reduce
Prior Lien Obligations or any DIP Financing secured by a prior Lien on such ABL
Priority Collateral, each Subordinated Lien Agent shall retain a Lien on such
Proceeds with the respective priorities described in Section 2.1.

 

(b)           Without limiting the Prior
Lien Agent’s and the Prior Lien Claimholders’ rights under Section 3.2(b),
neither any Subordinated Lien Agent nor any other Subordinated Lien Claimholder
shall, in any Insolvency Proceeding or otherwise, oppose any sale or
Disposition of any Senior Secured Notes Priority Collateral that is supported
by the Prior Lien Claimholders, and each Subordinated Lien Agent and each other
Subordinated Lien Claimholder will be deemed to have consented under Section 363
of the Bankruptcy Code (and otherwise) to any sale of any Senior Secured Notes
Priority Collateral supported by the Prior Lien Claimholders and to have
released their Liens on such assets; provided that to the extent the
Proceeds of such Collateral are not applied to reduce Prior Lien Obligations or
any DIP Financing secured by a prior Lien on such Senior Secured Notes Priority
Collateral, each Subordinated Lien Agent shall retain a Lien on such Proceeds
with the respective priorities described in Section 2.1.

 

36

 

(c)           Notwithstanding the
foregoing, this Agreement shall not be construed to in any way limit or impair
the right of the Subordinated Lien Claimholders from exercising a credit bid in
a sale or other Disposition of their Subordinated Lien Collateral under Section 363
of the Bankruptcy Code; provided  that in connection with and immediately
after giving effect to such sale and credit bid there occurs a Discharge of
Prior Lien Obligations.

 

(d)           Until the Discharge of Prior
Lien Obligations, no Subordinated Lien Agent or any other Subordinated Lien
Claimholder shall, in an Insolvency Proceeding or otherwise, assert or enforce
(or support any Person asserting or enforcing) any claim under Section 506(c) of
the Bankruptcy Code pari passu with
the Liens on the Prior Lien Collateral securing the Prior Lien Obligations for
costs or expenses of preserving or disposing of any Prior Lien Collateral.  Furthermore, no Subordinated Lien Agent or
any other Subordinated Lien Claimholder shall, in an Insolvency Proceeding or
otherwise, oppose or otherwise contest (or support any Person opposing or
otherwise contesting) any lawful exercise by the Prior Lien Claimholders of the
right to credit bid at any sale of the Prior Lien Collateral.

 

VII.

RELIANCE; WAIVERS; ETC.

 

7.1.          Reliance.  Other than any reliance on the terms of this
Agreement, the ABL Agent, on behalf the ABL Claimholders, acknowledges that it
and the other ABL Claimholders have, independently and without reliance on the
Senior Secured Notes Agent, or any Senior Secured Notes Claimholder, the Junior
Secured Notes Agent or any Junior Secured Notes Claimholder and based on
documents and information deemed by them appropriate, made their own credit
analysis and decision to enter into ABL Loan Documents and be bound by the
terms of this Agreement, and they will continue to make their own credit
decision in taking or not taking any action under the ABL Loan Documents or
this Agreement.  The Senior Secured Notes
Agent, on behalf of the Senior Secured Notes Claimholders, acknowledges that it
and the other Senior Secured Notes Claimholders have, independently and without
reliance on the ABL Agent, or any other ABL Claimholder, the Junior Secured
Notes Agent or any Junior Secured Notes Claimholder, and based on documents and
information deemed by them appropriate, made their own credit analysis and
decision to enter into each of the other Senior Secured Notes Documents and be
bound by the terms of this Agreement, and they will continue to make their own
credit decision in taking or not taking any action under the Senior Secured
Notes Documents or this Agreement.  The
Junior Secured Notes Agent, on behalf of the Junior Secured Notes Claimholders,
acknowledges that it and the other Junior Secured Notes Claimholders have,
independently and without reliance on the ABL Agent, any other ABL Claimholder,
the Senior Secured Notes Agent or any Senior Secured Notes Claimholder, and
based on documents and information deemed by them appropriate, made their own
credit analysis and decision to enter into each of the other Junior Secured
Notes Documents and be bound by the terms of this Agreement, and they will
continue to make their own credit decision in taking or not taking any action
under the Junior Secured Notes Documents or this Agreement.

 

7.2.          No Warranties or Liability.  The ABL Agent, on behalf of the ABL
Claimholders, acknowledges and agrees that none of the Senior Secured Notes
Agent, the Senior Secured Notes Claimholders, the Junior Secured Notes Agent
and the Junior Secured Notes Claimholders have made any express or implied
representation or warranty, including with respect to the execution, validity,
legality, completeness, collectibility or enforceability of any of the other
Senior Secured Notes Documents or the Junior Secured Notes Documents, the
ownership by any Grantor of any Collateral or the perfection of any Liens
thereon.  Except as otherwise provided in
this Agreement, the Senior Secured Notes Agent, the Senior Secured Notes
Claimholders, the Junior Secured Notes Agent and the Junior Secured Notes
Claimholders will be entitled to manage and supervise their respective loans
and extensions of credit under the Senior Secured Notes Documents and the
Junior Secured Notes Documents, respectively, in 

 

37

 

accordance with law and as they may
otherwise, in their sole discretion, deem appropriate.  The Senior Secured Notes Agent, on behalf of
the Senior Secured Notes Claimholders, acknowledges and agrees that none of the
ABL Agent, the ABL Claimholders, the Junior Secured Notes Agent and the Junior
Secured Notes Claimholders have made any express or implied representation or
warranty, including with respect to the execution, validity, legality,
completeness, collectibility or enforceability of any of the other ABL Loan
Documents or the Junior Secured Notes Documents, the ownership by any Grantor
of any Collateral or the perfection of any Liens thereon.  Except as otherwise provided in this
Agreement, the ABL Agent, the ABL Claimholders, the Junior Secured Notes Agent
and the Junior Secured Notes Claimholders will be entitled to manage and
supervise their respective loans and extensions of credit under the ABL Loan
Documents and the Junior Secured Notes Documents, respectively, in accordance
with law and as they may otherwise, in their sole discretion, deem appropriate.  The Junior Secured Notes Agent, on behalf of
the Junior Secured Notes Claimholders, acknowledges and agrees that none of the
ABL Agent, the ABL Claimholders, the Senior Secured Notes Agent and the Senior
Secured Notes Claimholders have made any express or implied representation or
warranty, including with respect to the execution, validity, legality,
completeness, collectibility or enforceability of any of the other ABL Loan
Documents or the Senior Secured Notes Documents, the ownership by any Grantor
of any Collateral or the perfection of any Liens thereon.  Except as otherwise provided in this
Agreement, the ABL Agent, the ABL Claimholders, the Senior Secured Notes Agent
and the Senior Secured Notes Claimholders will be entitled to manage and
supervise their respective loans and extensions of credit under the ABL Loan
Documents and the Senior Secured Notes Documents, respectively, in accordance
with law and as they may otherwise, in their sole discretion, deem
appropriate.  Except as expressly
provided herein (i) the Senior Secured Notes Agent and the Senior Secured
Notes Claimholders shall have no duty to the ABL Agent, any of the ABL
Claimholders, the Junior Secured Notes Agent or any of the Junior Secured Notes
Claimholders, (ii) the ABL Agent and the other ABL Claimholders shall have
no duty to the Senior Secured Notes Agent, any of the other Senior Secured
Notes Claimholders, the Junior Secured Notes Agent or any of the other Junior
Secured Notes Claimholders and (iii) the Junior Secured Notes Agent and
the Junior Secured Notes Claimholders shall have no duty to the ABL Agent, any
of the ABL Claimholders, the Senior Secured Notes Agent or any of the Senior
Secured Notes Claimholders, in each case, to act or refrain from acting in a
manner which allows, or results in, the occurrence or continuance of an event
of default or default under any agreements any Grantor (including the ABL Loan
Documents, the Senior Secured Notes Documents and the Junior Secured Notes
Documents), regardless of any knowledge thereof which they may have or be
charged with.

 

7.3.          No Waiver of Lien Priorities.

 

(a)           No right of the Agents or
the other Claimholders to enforce any provision of this Agreement or any ABL
Loan Document, Senior Secured Notes Document or Junior Secured Notes Document shall
at any time in any way be prejudiced or impaired by any act or failure to act
on the part of any Grantor or by any act or failure to act by such Agents or
Claimholders or by any noncompliance by any Person with the terms, provisions
and covenants of this Agreement, any of the ABL Loan Documents, any of the
Senior Secured Notes Documents or any of the Junior Secured Notes Documents,
regardless of any knowledge thereof which the Agents or the ABL Claimholders,
the Senior Secured Notes Claimholders or the Junior Secured Notes Claimholders,
or any of them, may have or be otherwise charged with.

 

(b)           Without in any way limiting
the generality of the foregoing paragraph (but subject to the rights of the
Grantors under the ABL Loan Documents, the Senior Secured Notes Documents and
the Junior Secured Notes Documents and except as otherwise expressly provided
in this Agreement), the Agents and the other Claimholders may, at any time and
from time to time in accordance with the ABL Loan Documents, the Senior Secured
Notes Documents and the Junior Secured Notes Documents and/or applicable law,
without the consent of, or notice to, any other Agent or any other Claimholder
(as applicable), 

 

38

 

without incurring any liabilities
to such Persons and without impairing or releasing the Lien priorities and
other benefits provided in this Agreement (even if any right of subrogation or
other right or remedy is affected, impaired or extinguished thereby) do any one
or more of the following:

 

(i)            change the manner, place or terms of payment or
change or extend the time of payment of, or amend, renew, exchange, increase or
alter, the terms of any of the Obligations or any Lien or guaranty thereof or
any liability of any Grantor, or any liability incurred directly or indirectly
in respect thereof (including any increase in or extension of the Obligations,
without any restriction as to the tenor or terms of any such increase or
extension) or otherwise amend, renew, exchange, extend, modify or supplement in
any manner any Liens held by the Agents or any rights or remedies under any of
the ABL Loan Documents, the Senior Secured Notes Documents or the Junior
Secured Notes Documents;

 

(ii)           sell, exchange, release, surrender, realize upon,
enforce or otherwise deal with in any manner and in any order any part of the
Collateral (except to the extent provided in this Agreement) or any liability
of any Grantor or any liability incurred directly or indirectly in respect
thereof;

 

(iii)          settle or compromise any Obligation or any other
liability of any Grantor or any security therefore or any liability incurred
directly or indirectly in respect thereof and apply any sums by whomsoever paid
and however realized to any liability in any manner or order that is not
inconsistent with the terms of this Agreement; and

 

(iv)          exercise or delay in or refrain from exercising any
right or remedy against any security or any Grantor or any other Person, elect
any remedy and otherwise deal freely with any Grantor.

 

7.4.          Obligations Unconditional.  All rights, interests, agreements and
obligations of the ABL Claimholders, the Senior Secured Notes Claimholders and
the Junior Secured Notes Claimholders, respectively, hereunder shall remain in
full force and effect irrespective of:

 

(a)           any lack of
validity or enforceability of any ABL Loan Documents, any Senior Secured Notes
Documents or any Junior Secured Notes Documents;

 

(b)           except, in each
case, as otherwise expressly set forth in this Agreement, any change in the
time, manner or place of payment of, or in any other terms of, all or any of
the ABL Obligations, Senior Secured Notes Obligations or Junior Secured Notes
Obligations, or any amendment or waiver or other modification, including any
increase in the amount thereof, whether by course of conduct or otherwise, of
the terms of any ABL Loan Document, Senior Secured Notes Document or any Junior
Secured Notes Document;

 

(c)           except as
otherwise expressly set forth in this Agreement, any exchange, release,
voiding, avoidance or non-perfection of any security interest in any Collateral
or any other collateral, or any amendment, waiver or other modification,
whether in writing or by course of conduct or otherwise, of all or any of the
ABL Obligations, Senior Secured Notes Obligations or Junior Secured Notes
Obligations or any guaranty thereof;

 

(d)           the
commencement of any Insolvency or Liquidation Proceeding in respect of any
Grantor; or

 

39

 

(e)           any other
circumstances which otherwise might constitute a defense available to, or a
discharge of, any Grantor in respect of the any Agent or Claimholder in respect
of this Agreement.

 

VIII.

MISCELLANEOUS

 

8.1.          Conflicts.  In the event of any conflict between the
provisions of this Agreement and the provisions of any ABL Loan Document,
Senior Secured Notes Document or Junior Secured Notes Document, the provisions
of this Agreement shall govern and control.

 

8.2.          Effectiveness; Continuing
Nature of this Agreement; Severability.  This Agreement shall become effective when
executed and delivered by the parties hereto (it being understood that this
Agreement shall become effective among the Grantors, the ABL Claimholders and
the Senior Secured Notes Claimholders upon execution and delivery of this
Agreement by the ABL Agent, the Senior Secured Notes Agent and the Grantors
party hereto on the date hereof).  This
is a continuing agreement of Lien subordination (as opposed to an agreement of
debt or claim subordination), and the ABL Claimholders, the Senior Secured
Notes Claimholders and the Junior Secured Notes Claimholders may continue, at
any time and without notice to any other Agent or Claimholder, to extend credit
and other financial accommodations and lend monies to or for the benefit of any
Grantor in reliance hereon.  Each of the
Agents, on behalf of the applicable Claimholders, as applicable, hereby
irrevocably, absolutely, and unconditionally waives any right any Claimholder
may have under applicable law to revoke this Agreement or any of the provisions
of this Agreement.  The terms of this
Agreement shall survive, and shall continue in full force and effect, in any
Insolvency or Liquidation Proceeding.  Consistent
with, but not in limitation of, the preceding sentence, each of the Agents, on
behalf of the applicable Claimholders irrevocably acknowledges that this
Agreement constitutes a “subordination agreement” within the meaning of both
New York law and Section 510(a) of the Bankruptcy Code.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.  All references
to any Grantor shall include such Grantor as debtor and debtor-in-possession
and any receiver or trustee for any Grantor (as applicable) in any Insolvency
or Liquidation Proceeding.  This
Agreement shall terminate and be of no further force and effect subject to the
rights provided to Prior Lien Claimholders under Section 6.4:

 

(a)           with respect to
the ABL Agent, the ABL Claimholders and the ABL Obligations, the date on which
the Discharge of ABL Obligations has occurred in accordance with the terms of
this Agreement;

 

(b)           with respect to
the Senior Secured Notes Agent, the Senior Secured Notes Claimholders and the
Senior Secured Notes Obligations, the date on which the Discharge of Senior Secured
Notes Obligations has occurred in accordance with the terms of this Agreement;
and

 

(c)           with respect to
the Junior Secured Notes Agent, the Junior Secured Notes Claimholders and the
Junior Secured Notes Obligations, the date on which the Discharge of Junior Secured
Notes Obligations has occurred in accordance with the terms of this Agreement.

 

8.3.          Amendments; Waivers.  Except as provided in the following sentence,
no amendment, modification or waiver of any of the provisions of this Agreement
shall be deemed to be made unless the same shall be in writing signed on behalf
of each party hereto or its authorized agent and each waiver, if any, shall be
a waiver only with respect to the specific instance involved and shall in no
way impair the 

 

40

 

rights of the parties making such waiver or
the obligations of the other parties to such party in any other respect or at
any other time.  Notwithstanding the
foregoing, (i) no Grantor shall have any right to consent to or approve
any amendment, modification or waiver of any provision of this Agreement except
to the extent its rights are directly affected, (ii) the Junior Secured
Notes Agent, on behalf of the Junior Secured Notes Claimholders, shall become
party hereto, without any further action by any other party hereto, upon
execution and delivery by the Junior Secured Notes Agent and the Company to
each of the ABL Agent and the Senior Secured Notes Agent of a properly
completed Junior Secured Notes Joinder Agreement and (iii) any Additional
Pari Passu Senior Secured Notes Agent, on behalf of itself and the Senior
Secured Notes Claimholders under any Additional Pari Passu Senior Secured Notes
Agreement, may become a party to this Agreement, without any further action by
any other party hereto, upon execution and delivery by the Company and such
Agent of a properly completed Additional Joinder Agreement to each Agent.

 

8.4.          Information Concerning
Financial Condition of the Company and Its Subsidiaries.  Each Agent and Claimholder shall be
responsible for keeping themselves informed of (a) the financial condition
of the Grantors and (b) all other circumstances bearing upon the risk of
nonpayment of the ABL Obligations, the Senior Secured Notes Obligations and the
Junior Secured Notes Obligations.  No
Claimholder shall have any duty to advise any other Claimholder of information
known to it or them regarding such condition or any such circumstances or
otherwise.  In the event any Agent or
other Claimholder undertakes at any time or from time to time to provide any
such information to any of the other Claimholders, it or they shall be under no
obligation, (i) to make, and shall not make, any express or implied
representation or warranty, including with respect to the accuracy,
completeness, truthfulness or validity of any such information so provided, (ii) to
provide any additional information or to provide any such information on any
subsequent occasion, (iii) to undertake any investigation, or (iv) to
disclose any information, which pursuant to accepted or reasonable commercial
finance practices, such party wishes to maintain confidential or is otherwise
required to maintain confidential.

 

8.5.          Subrogation.  With respect to the value of any payments or
distributions in cash, property or other assets that any of the Subordinated
Lien Claimholders actually pay over to the Prior Lien Agent or the Prior Lien
Claimholders under the terms of this Agreement, the Subordinated Lien
Claimholders shall be subrogated to the rights of such Prior Lien Claimholders;
provided, however, that each Subordinated Lien Agent, on behalf
of the Subordinated Lien Claimholders, hereby agrees not to assert or enforce
all such rights of subrogation it may acquire as a result of any payment
hereunder until the Discharge of Prior Lien Obligations has occurred.  The Grantors acknowledge and agree that, to
the extent permitted by applicable law, the value of any payments or
distributions in cash, property or other assets received by the Subordinated
Lien Claimholders that are paid over to the Prior Lien Claimholders pursuant to
this Agreement shall not reduce any of the Subordinated Lien Obligations.  Notwithstanding the foregoing provisions of
this Section 8.5, none of the Subordinated Lien Claimholders shall
have any claim against any of the Prior Lien Claimholders for any impairment of
any subrogation rights herein granted to the Subordinated Lien Claimholders.

 

8.6.          SUBMISSION TO JURISDICTION;
WAIVERS.

 

(a)           ALL JUDICIAL PROCEEDINGS
BROUGHT AGAINST ANY PERSON ARISING OUT OF OR RELATING HERETO MAY BE
BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE,
COUNTY AND CITY OF NEW YORK.  BY
EXECUTING AND DELIVERING THIS AGREEMENT, EACH AGENT, FOR ITSELF AND ON BEHALF
OF THE SENIOR SECURED NOTES CLAIMHOLDERS (IN THE CASE OF THE SENIOR SECURED
NOTES AGENT), THE ABL CLAIMHOLDERS (IN THE CASE OF THE ABL AGENT), AND THE
JUNIOR SECURED NOTES CLAIMHOLDERS (IN THE CASE OF THE JUNIOR SECURED NOTES
AGENT) IRREVOCABLY:

 

41

 

(1)           AGREES THAT THE ONLY NECESSARY PARTIES TO ANY AND
ALL JUDICIAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE
THE PARTIES HERETO, EXCEPT WHERE IN ANY SUCH JUDICIAL PROCEEDING RELIEF
(INCLUDING INJUNCTIVE RELIEF OR THE RECOVERY OF MONEY) IS BEING SOUGHT DIRECTLY
AGAINST OR FROM A PERSON THAT IS NOT A PARTY AND EXCEPT THAT, IN ANY SUCH
JUDICIAL PROCEEDINGS AMONG ANY SENIOR SECURED NOTES AGENT, ABL AGENT OR JUNIOR
SECURED NOTES AGENT THAT DOES NOT SEEK ANY RELIEF AGAINST OR FROM ANY GRANTOR,
THE GRANTORS SHALL NOT BE NECESSARY PARTIES. 
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, AND CONSISTENT WITH
THE PROVISIONS OF SECTIONS 8.14 AND 8.17, NONE OF THE ABL
CLAIMHOLDERS (OTHER THAN THE ABL AGENT), THE SENIOR SECURED NOTES CLAIMHOLDERS
(OTHER THAN THE SENIOR SECURED NOTES AGENT) OR THE JUNIOR SECURED NOTES
CLAIMHOLDERS (OTHER THAN THE JUNIOR SECURED NOTES AGENT) SHALL BE NECESSARY OR
OTHERWISE APPROPRIATE PARTIES TO ANY SUCH JUDICIAL PROCEEDINGS, UNLESS IN SUCH
JUDICIAL PROCEEDING SUMS ARE BEING SOUGHT TO BE RECOVERED DIRECTLY FROM SUCH
PERSONS, INCLUDING PURSUANT TO SECTION 4.2 OR THE PROVISIONS OF
THIS AGREEMENT ARE SEEKING TO BE ENFORCED DIRECTLY AGAINST SUCH PERSONS.

 

(2)           ACCEPTS GENERALLY AND UNCONDITIONALLY THE
NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS;

 

(3)           WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;

 

(4)           AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, TO THE APPLICABLE PERSON (AND IN THE CASE OF A PARTY,
AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 8.7); AND

 

(5)           AGREES THAT SERVICE AS PROVIDED IN CLAUSE (3) ABOVE
IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE PERSON IN ANY
SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND
BINDING SERVICE IN EVERY RESPECT.

 

(b)           WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT, ANY OF THE ABL LOAN DOCUMENTS, ANY OF THE
SENIOR SECURED NOTES DOCUMENTS OR ANY OF THE JUNIOR SECURED NOTES
DOCUMENTS.  EACH OF THE PARTIES HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT,
THE ABL LOAN DOCUMENTS, THE SENIOR SECURED NOTES DOCUMENTS AND THE JUNIOR
SECURED NOTES DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.6.

 

42

 

8.7.          Notices.  All notices permitted or required under this
Agreement need be sent only to the Senior Secured Notes Agent, the ABL Agent
and the Junior Secured Notes Agent, as applicable, in order to be effective and
otherwise binding on any applicable Claimholder.  If any notice is sent for whatever reason to
the other Senior Secured Notes Claimholders, the Junior Secured Notes
Claimholders or the ABL Claimholders, such notice shall also be sent to the
applicable Agent.  Unless otherwise
specifically provided herein, any notice hereunder shall be in writing and may
be personally served, telexed or sent by telefacsimile or United States mail or
courier service and shall be deemed to have been given when delivered in person
or by overnight courier service and signed for against receipt thereof, upon
receipt of telefacsimile or telex during normal business hours, or three
Business Days after depositing it in the United States certified mails (return
receipt requested) with postage prepaid and properly addressed.  For the purposes hereof, the addresses of the
parties hereto shall be as set forth below each party’s name on the signature pages hereto,
or, as to each party, at such other address as may be designated by such party
in a written notice to all of the other parties.

 

8.8.          Further Assurances.  The ABL Agent, on behalf of the ABL
Claimholders, the Senior Secured Notes Agent, on behalf of the Senior Secured
Notes Claimholders, the Junior Secured Notes Agent, on behalf of the Junior
Secured Notes Claimholders, and the Grantors, agree that each of them shall
take such further action and shall execute and deliver such additional
documents and instruments (in recordable form, if requested) as any other Agent
may reasonably request to effectuate the terms of and the Lien priorities
contemplated by this Agreement.  Each of
the Senior Secured Notes Agent, the ABL Agent and the Junior Secured Notes
Agent agrees that if it sends any Enforcement Notice to another Agent, it shall
be sent all of the Agents.

 

8.9.          APPLICABLE LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (INCLUDING
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

8.10.        Specific Performance.  Each of the ABL Agent and the Senior Secured
Notes Agent may demand specific performance of this Agreement.  The ABL Agent, on behalf of itself and the
ABL Claimholders, the Senior Secured Notes Agent, on behalf of itself and the
Senior Secured Notes Claimholders, and the Junior Secured Notes Agent, on
behalf of itself and the Junior Secured Notes Claimholders, hereby irrevocably
waive any defense based on the adequacy of a remedy at law and any other
defense which might be asserted to bar the remedy of specific performance in
any action which may be brought by the ABL Agent or the other ABL Claimholders
or the Senior Secured Notes Agent or the other Senior Secured Notes
Claimholders, as applicable.

 

8.11.        Headings.  Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose or be given any substantive
effect.

 

8.12.        Counterparts.  This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract. 
Delivery of an executed counterpart of a signature page of this
Agreement or any document or instrument delivered in connection herewith by
telecopy shall be effective as delivery of a manually executed counterpart of
this Agreement or such other document or instrument, as applicable.

 

43

 

8.13.        Authorization.  By its signature, each party hereto
represents and warrants to the other parties hereto that the individual signing
this Agreement on its behalf is duly authorized to execute this Agreement.  The Senior Secured Notes Agent hereby
represents that it is authorized to, and by its signature hereon does, bind the
other Senior Secured Notes Claimholders to the terms of this Agreement.  The Junior Secured Notes Agent hereby
represents that it is authorized to, and by its execution and delivery of the
Junior Secured Notes Joinder Agreement does, bind the Junior Secured Notes
Claimholders to the terms of this Agreement. 
The ABL Agent hereby represents that it is authorized to, and by its
signature hereon does, bind the other ABL Claimholders to the terms of this
Agreement.

 

8.14.        No Third Party Beneficiaries.  This Agreement and the rights and benefits
hereof shall inure to the benefit of each of the parties hereto and its
respective successors and assigns and shall inure to the benefit of (and shall
be binding upon) each of the Agents and the other Claimholders and their
respective successors and assigns.

 

8.15.        Provisions Solely to Define
Relative Rights.  The
provisions of this Agreement are and are intended solely for the purpose of
defining the respective relative rights of the ABL Claimholders, the Senior
Secured Notes Claimholders and the Junior Secured Notes Claimholders.  No Grantor or any other creditor thereof
shall have any rights hereunder, and no Grantor may rely on the terms
hereof.  Nothing in this Agreement is
intended to or shall impair as between the Grantors and the ABL Agent and the
other ABL Claimholders, as between the Grantors and the Senior Secured Notes
Agent and the other Senior Secured Notes Claimholders, or as between the
Grantors and the Junior Secured Notes Agent and the other Junior Secured Notes
Claimholders, the Obligations of any Grantor, which are absolute and
unconditional, to pay principal, interest, fees and other amounts as provided
in the other ABL Loan Documents, the other Senior Secured Notes Documents or
the Junior Secured Notes Documents, respectively, including as and when the
same shall become due and payable in accordance with their terms.  Nothing in this Agreement shall prevent one
or more classes of Junior Secured Notes Claimholders from entering into
intercreditor agreements with any other class of Junior Secured Notes
Claimholders in order to define the relative rights of such Junior Secured
Notes Claimholders in the Junior Secured Notes Collateral; provided that
(i) any such agreement provides that it is subject to the terms of this
Agreement and (ii) no such agreement shall be binding on any ABL
Claimholder or Senior Secured Notes Claimholder.

 

8.16.        Marshalling of Assets.  Each Subordinated Lien Agent, on behalf of
the applicable Subordinated Lien Claimholders, hereby irrevocably, absolutely,
and unconditionally waives any and all rights or powers any Subordinated Lien
Claimholder may have at any time under applicable law or otherwise to have its
Subordinated Lien Collateral, or any part thereof, marshaled upon any
foreclosure or other enforcement of such Subordinated Lien Agent’s Liens.

 

8.17.        Exclusive Means of
Exercising Rights under this Agreement.  The Senior Secured Notes Claimholders shall
be deemed to have irrevocably appointed the Senior Secured Notes Agent, the ABL
Claimholders shall be deemed to have irrevocably appointed the ABL Agent and by
execution and delivery of the Junior Secured Notes Joinder Agreement, the Junior
Secured Notes Claimholders shall be deemed to have irrevocably appointed the
Junior Secured Notes Agent, as their respective and exclusive agents
hereunder.  Consistent with such
appointment, the Senior Secured Notes Claimholders, the ABL Claimholders and
the Junior Secured Notes Claimholders further shall be deemed to have agreed
that their respective Agents (and not any individual Claimholder or group of
Claimholders) shall have the exclusive right to exercise any rights, powers,
and/or remedies under or in connection with this Agreement (including bringing
any action to interpret or otherwise enforce the provisions of this Agreement)
or the Collateral.  Specifically, but
without limiting the generality of the foregoing, each Senior Secured Notes
Claimholder (other than the Senior Secured Notes Agent), each ABL Claimholder 

 

44

 

(other than the ABL Agent) and each Junior
Secured Notes Claimholder (other than the Junior Secured Notes Agent), shall
not be entitled to take or file, but instead shall be precluded from taking or
filing (whether in any Insolvency or Liquidation Proceeding or otherwise), any
action, judicial or otherwise, to enforce any right or power or pursue any
remedy under this Agreement (including any declaratory judgment or other action
to interpret or otherwise enforce the provisions of this Agreement), except
solely as provided in the proviso in the preceding sentence.

 

8.18.        Interpretation.  This Agreement is a product of negotiations
among representatives of, and has been reviewed by counsel to, the Senior
Secured Notes Agent, if a Junior Secured Notes Agreement shall be entered into,
the Junior Secured Notes Agent, the ABL Agent and the Grantors and is the
product of those Persons on behalf of themselves and the Senior Secured Notes
Claimholders (in the case of the Senior Secured Notes Agent), the ABL
Claimholders (in the case of the ABL Claimholders) and the Junior Secured Notes
Claimholders (in the case of the Junior Secured Notes Agent).  Accordingly, this Agreement’s provisions
shall not be construed against, or in favor of, any part or other Person merely
by virtue of that party or other Person’s involvement, or lack of involvement,
in the preparation of this Agreement and of any of its specific provisions.

 

8.19.        Capacity of Senior Secured
Notes Agent.  U.S. Bank
National Association is entering into this Agreement in its capacity as “trustee”
and “collateral agent” under the Senior Secured Notes Indenture and the rights,
powers, privileges and protections afforded to the “trustee” and “collateral
agent” under the Senior Secured Notes Indenture shall also apply to U.S. Bank
National Association as the Senior Secured Notes Agent hereunder. The Senior
Secured Notes Claimholders have expressly authorized and instructed the Senior
Secured Notes Agent to execute and deliver this Agreement.

 

[Signature Pages Follow]

 

45

 

IN WITNESS WHEREOF, the
parties hereto have executed this Intercreditor Agreement as of the date first
written above.

 

	
   

  	
  ABL
  Agent:

  
	
   

  	
   

  
	
   

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as
  ABL Agent and not in its individual capacity

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher O’Halloran

  
	
   

  	
   

  	
  Name:
  Christopher O’Halloran

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  Bank
  of America, N.A.

  
	
   

  	
  One
  Federal Street

  
	
   

  	
  MA5-503-07-19

  
	
   

  	
  Boston,
  MA 02110

  
	
   

  	
  Attention:
  Christopher O’Halloran

  
	
   

  	
  Telephone:
  617-346-1183

  
	
   

  	
  Telecopier:
  617-654-1167

  
	
   

  	
  Electronic
  Mail:

  
	
   

  	
  Christopher.o’halloran@bankofamerica.com

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Senior Secured Notes Agent:

  
	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, not in its individual capacity, but solely in its
  capacity as Trustee and Collateral Agent under the Senior Secured Notes Indenture
  and Collateral Agent under the Senior Secured Notes Documents, as Senior
  Secured Notes Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Karen R. Beard

  
	
   

  	
   

  	
  Name:
  Karen R. Beard

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  One Federal St.

  
	
   

  	
  Boston, MA 02110

  
	
   

  	
  Attn: Clean
  Harbors, Inc.

  

 

 

	
  Acknowledged
  and Agreed to by:

  
	
   

  
	
  Company:

  
	
   

  
	
  CLEAN
  HARBORS, INC.

  
	
   

  
	
  By:

  	
  /s/
  James M. Rutledge

  	
   

  
	
   

  	
  Name:
  James M. Rutledge

  
	
   

  	
  Title:
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  
	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
    42
  Longwater Drive

  
	
   

  	
    P.O. Box
  9149

  
	
   

  	
    Norwell,
  MA 02061

  

 

 

Company
Subsidiaries:

 

ALTAIR
DISPOSAL SERVICES, LLC

BATON
ROUGE DISPOSAL, LLC

BRIDGEPORT
DISPOSAL, LLC

CH
INTERNATIONAL HOLDINGS, INC.

CLEAN
HARBORS (MEXICO), INC.

CLEAN
HARBORS ANDOVER, LLC

CLEAN
HARBORS ANTIOCH, LLC

CLEAN
HARBORS ARAGONITE, LLC

CLEAN
HARBORS ARIZONA, LLC

CLEAN
HARBORS BATON ROUGE, LLC

CLEAN
HARBORS BDT, LLC

CLEAN
HARBORS BUTTONWILLOW, LLC

CLEAN
HARBORS CHATTANOOGA, LLC

CLEAN
HARBORS CLIVE, LLC

CLEAN
HARBORS COFFEYVILLE, LLC

CLEAN
HARBORS COLFAX, LLC

CLEAN
HARBORS DEER TRAIL, LLC

CLEAN
HARBORS DEVELOPMENT, LLC

CLEAN
HARBORS DISPOSAL SERVICES, INC.

CLEAN
HARBORS EL DORADO, LLC

CLEAN
HARBORS ENVIRONMENTAL SERVICES, INC.

CLEAN
HARBORS FLORIDA, LLC

CLEAN
HARBORS GRASSY MOUNTAIN, LLC

CLEAN
HARBORS KANSAS, LLC

CLEAN HARBORS
KINGSTON FACILITY CORPORATION

CLEAN
HARBORS LAUREL, LLC

CLEAN
HARBORS LONE MOUNTAIN, LLC

CLEAN
HARBORS LONE STAR CORP.

CLEAN
HARBORS LOS ANGELES, LLC

CLEAN
HARBORS OF BALTIMORE, INC.

CLEAN
HARBORS OF BRAINTREE, INC.

CLEAN
HARBORS OF CONNECTICUT, INC.

CLEAN
HARBORS OF NATICK, INC.

CLEAN
HARBORS OF TEXAS, LLC

CLEAN
HARBORS PECATONICA, LLC

CLEAN
HARBORS PPM, LLC

CLEAN
HARBORS RECYCLING SERVICES OF CHICAGO, LLC

(list
continued on next page)

 

 

CLEAN
HARBORS RECYCLING SERVICES OF OHIO, LLC

CLEAN
HARBORS REIDSVILLE, LLC

CLEAN
HARBORS SAN JOSE, LLC

CLEAN
HARBORS SERVICES, INC.

CLEAN
HARBORS TENNESSEE, LLC

CLEAN
HARBORS WESTMORLAND, LLC

CLEAN
HARBORS WHITE CASTLE, LLC

CLEAN
HARBORS WILMINGTON, LLC

CROWLEY
DISPOSAL, LLC

DISPOSAL
PROPERTIES, LLC

GSX
DISPOSAL, LLC

HARBOR
MANAGEMENT CONSULTANTS, INC.

HILLIARD
DISPOSAL, LLC

MURPHY’S
WASTE OIL SERVICE, INC.

ROEBUCK
DISPOSAL, LLC

SAWYER
DISPOSAL SERVICES, LLC

SERVICE
CHEMICAL, LLC

SPRING
GROVE RESOURCE RECOVERY, INC.

TULSA
DISPOSAL, LLC

 

	
  By:
  

  	
  /s/
  James M. Rutledge

  	
   

  
	
  Name:
  James M. Rutledge

  
	
  Title:
  Executive Vice President

  
	
   

  
	
  PLAQUEMINE
  REMEDIATION SERVICES, LLC

  
	
   

  
	
  By:
  

  	
  /s/
  William Geary

  	
   

  
	
  Name:
  William Geary

  
	
  Title:
  Manager

  
	
   

  
	
  CLEAN
  HARBORS FINANCIAL SERVICES COMPANY

  
	
   

  
	
  By:
  

  	
  /s/
  James M. Rutledge

  	
   

  
	
  Name:
  James M. Rutledge

  
	
  Title:
  Trustee

  

 

 

CLEAN
HARBORS DEER PARK, L.P.

CLEAN
HARBORS LAPORTE, L.P.

HARBOR
INDUSTRIAL SERVICES TEXAS, L.P.

 

By:
Clean Harbors of Texas, LLC, its General Partner

 

	
   

  	
  By:
  

  	
  /s/
  James M. Rutledge

  	
   

  
	
   

  	
  Name:
  James M. Rutledge

  
	
   

  	
  Title: Executive Vice
  President

  

 

Notice Address:

c/o
Clean Harbors, Inc.

42 Longwater Drive

P.O. Box 9149

Norwell, MA 02061

 

 

EXHIBIT A TO THE

INTERCREDITOR AGREEMENT

 

[Form of]

JUNIOR SECURED NOTES JOINDER AGREEMENT

 

[Name of Junior Secured Notes Agent]

[Address of Junior Secured Notes Agent]

 

[Date]

 

[Names
of ABL Agent and Senior Secured Notes Agent]

[Addresses
of ABL Agent and Senior Secured Notes Agent]

 

The undersigned, together
with its successors and assigns under the Junior Secured Notes Agreement, is
the Junior Secured Notes Trustee for Persons (the “Junior Secured
Noteholders”) wishing to become Junior Secured Notes Claimholders under and
as defined in the Intercreditor Agreement dated as of August 14, 2009 (as
heretofore amended and/or supplemented, the “Intercreditor Agreement”
(terms used without definition herein have the meanings assigned to such terms
by the Intercreditor Agreement)) among Clean Harbors, Inc., the Grantors
party thereto, the ABL Agent thereunder and the Senior Secured Notes Agent
thereunder.

 

In consideration of the
foregoing, the undersigned hereby:

 

(i)            represents that Junior Secured Noteholders have
authorized the Junior Secured Notes Trustee to become a party to the
Intercreditor Agreement on behalf of such Junior Secured Notes Claimholders and
to act as the Junior Secured Notes Agent thereunder;

 

(ii)           acknowledges that the Junior Secured Notes Agent has
received a copy of the Intercreditor Agreement;

 

(iii)          acknowledges on behalf of itself and the Junior Secured
Noteholders that the Obligations under the Junior Secured Notes Agreement
constitute Junior Secured Notes Obligations for all purposes of the
Intercreditor Agreement; and

 

(iv)          accepts and acknowledges, on behalf of itself and the
Junior Secured Noteholders, the terms of the Intercreditor Agreement applicable
to the Junior Secured Notes Agent and the other Junior Secured Notes
Claimholders and agrees on its own behalf and on behalf of the Junior Secured
Noteholders to be bound by the terms of the Intercreditor Agreement applicable
to holders of Junior Secured Notes Obligations, with all the rights, duties and
obligations of the Junior Secured Notes Claimholders thereunder and bound by
all the provisions thereof as fully as if they had been named as Junior Secured
Notes Claimholders on the effective date of the Intercreditor Agreement and
agrees that its address for receiving notices pursuant to the Intercreditor
Agreement shall be as follows:

 

[Address]

 

THIS JUNIOR SECURED NOTES
JOINDER AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
CONFLICT OF LAWS PRINCIPLES 

 

A-1

 

THEREOF (INCLUDING SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

[                    ] is entering into the
Intercreditor Agreement pursuant to this joinder agreement in its capacity as “trustee”
and “collateral agent” under the Junior Secured Notes Agreement and the rights,
powers, privileges and protections afforded to the “trustee” and “collateral
agent” under the Junior Secured Notes Agreement shall also apply to [                    ] as the Junior Secured
Notes Agent hereunder.

 

A-2

 

IN WITNESS WHEREOF, the
undersigned has caused this Junior Secured Notes Joinder Agreement to be duly
executed by its authorized officer as of the
        day of 20    .

 

	
   

  	
  [NAME
  OF JUNIOR SECURED NOTES AGENT]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Acknowledged
and Agreed

 

CLEAN
HARBORS, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

A-3

 

EXHIBIT B TO THE

INTERCREDITOR AGREEMENT

 

[Form of]

ADDITIONAL JOINDER AGREEMENT

 

[Name of Additional [Pari Passu]
[Junior][Senior] Secured Notes Agent]

[Address of [Junior][Senior] Secured Notes
Agent]

 

[Date]

 

[Names
of ABL Agent, Senior Secured Notes Agent and Junior Secured Notes Agent]

[Addresses
of ABL Agent, Senior Secured Notes Agent and Junior Secured Notes Agent]

 

The undersigned, together
with its successors and assigns (the “New Secured Agent”) under
[identify [Additional Pari Passu] [Junior][Senior] Secured Notes Agreement]
(the “New Secured Agreement”), is the [Additional Pari Passu]
[Junior][Senior] Secured Notes Agent for Persons (the “New Secured Claimholders”)
wishing to become [Junior][Senior] Secured Notes Claimholders under and as defined
in the Intercreditor Agreement dated as of August 14, 2009 (as amended
and/or supplemented from time to time, the “Intercreditor Agreement”
(terms used without definition herein have the meanings assigned to such terms
by the Intercreditor Agreement)) among Clean Harbors, Inc., the Grantors
party thereto, the ABL Agent thereunder, each Senior Secured Notes Agent
thereunder and each Junior Secured Notes Agent thereunder.

 

In consideration of the
foregoing, the undersigned hereby:

 

(i)            represents that the New Secured Claimholders have
authorized the New Secured Agent to become a party to the Intercreditor
Agreement on behalf of such New Secured Claimholders and to act as the
Additional Pari Passu [Junior][Senior] Secured Notes Agent on behalf of such
New Secured Claimholders under the Indenture;

 

(ii)           acknowledges that the New Secured Agent has received a
copy of the Intercreditor Agreement;

 

(iii)          acknowledges on behalf of itself and the other New Secured
Claimholders that the Obligations under the New Secured Agreement constitute
[Junior][Senior] Secured Notes Obligations for all purposes of the
Intercreditor Agreement; and

 

(iv)          accepts and acknowledges the terms of the Intercreditor
Agreement applicable to the [Additional Pari Passu] [Junior] [Senior] Secured
Notes Agent and the other [Junior][Senior] Secured Notes Claimholders and
agrees on its own behalf and on behalf of the New Secured Claimholders to be
bound by the terms thereof applicable to holders of [Junior][Senior] Secured
Notes Obligations, with all the rights, duties and obligations of the
[Junior][Senior] Secured Notes Claimholders under the Intercreditor Agreement
and to be bound by all the provisions thereof as fully as if they had been
named as [Junior][Senior] Secured Notes Claimholders on the effective date of
the Intercreditor Agreement and agrees that the New Secured Agent’s address for
receiving notices pursuant to the Intercreditor Agreement shall be as follows:

 

[Address]

 

B-1

 

THIS ADDITIONAL JOINDER
AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT
OF LAWS PRINCIPLES THEREOF (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAW).

 

B-2

 

IN WITNESS WHEREOF, the
undersigned has caused this Additional Joinder Agreement to be duly executed by
its authorized officer as of the
          day of
20    .

 

	
   

  	
  [NAME
  OF NEW SECURED AGENT]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  The
  Company hereby represents and warrants to each Agent on the date hereof that
  the New Secured Agreement meets the requirements set forth in the definition
  of “Additional Pari Passu [Junior] [Senior] Secured Notes Agreement.”

  	
   

  	
   

  	
   

  
				

 

Clean
Harbors, Inc.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

B-3

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