Document:

Guarantee and Collateral Agreement

 Exhibit 10.42 

 
  
 GUARANTEE AND COLLATERAL AGREEMENT 
 dated as of 

May 2, 2011, 

among 

PHARMERICA CORPORATION, 
 ITS SUBSIDIARIES PARTY HERETO 
 and 

CITIBANK, N.A., 

as Collateral Agent 
  

 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	1	  
				
		 	 1.01
	  	Credit Agreement	  	 	1	  
		 	 1.02
	  	Other Defined Terms	  	 	1	  
		
	 ARTICLE II GUARANTEE
	  	 	5	  
				
		 	2.01	  	Guarantee	  	 	5	  
		 	2.02	  	Guarantee of Payment	  	 	5	  
		 	2.03	  	No Limitations	  	 	5	  
		 	2.04	  	Reinstatement	  	 	6	  
		 	2.05	  	Agreement To Pay; Subrogation	  	 	6	  
		 	2.06	  	Information	  	 	7	  
		
	 ARTICLE III PLEDGE OF SECURITIES
	  	 	7	  
				
		 	 3.01
	  	Pledge	  	 	7	  
		 	 3.02
	  	Delivery of the Pledged Collateral	  	 	8	  
		 	 3.03
	  	Representations, Warranties and Covenants	  	 	8	  
		 	 3.04
	  	Certification of Limited Liability Company and Limited Partnership Interests	  	 	9	  
		 	 3.05
	  	Registration in Nominee Name; Denominations	  	 	9	  
		 	 3.06
	  	Voting Rights; Dividends and Interest	  	 	9	  
		
	 ARTICLE IV SECURITY INTERESTS IN PERSONAL PROPERTY
	  	 	11	  
				
		 	 4.01
	  	Security Interest	  	 	11	  
		 	 4.02
	  	Representations and Warranties	  	 	13	  
		 	 4.03
	  	Covenants	  	 	14	  
		 	 4.04
	  	Other Actions	  	 	16	  
		
	 ARTICLE V REMEDIES
	  	 	18	  
				
		 	 5.01
	  	Remedies Upon Default	  	 	18	  
		 	 5.02
	  	Application of Proceeds	  	 	19	  
		 	 5.03
	  	Grant of License to Use Intellectual Property	  	 	20	  
		 	 5.04
	  	Securities Act	  	 	20	  
		 	 5.05
	  	Registration	  	 	21	  
		
	 ARTICLE VI INDEMNITY, SUBROGATION AND SUBORDINATION
	  	 	22	  
				
		 	 6.01
	  	Indemnity and Subrogation	  	 	22	  
		 	 6.02
	  	Contribution and Subrogation	  	 	22	  
		 	 6.03
	  	Subordination	  	 	22	  

  
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	 ARTICLE VII MISCELLANEOUS
	  	 	23	  
				
		 	 7.01
	  	Notices	  	 	23	  
		 	 7.02
	  	Waivers; Amendment	  	 	23	  
		 	 7.03
	  	Collateral Agent’s Fees and Expenses; Indemnification	  	 	23	  
		 	 7.04
	  	Successors and Assigns	  	 	24	  
		 	 7.05
	  	Survival of Agreement; Reinstatement	  	 	25	  
		 	 7.06
	  	Counterparts; Effectiveness; Several Agreement	  	 	25	  
		 	 7.07
	  	Severability	  	 	25	  
		 	 7.08
	  	Right of Set-Off	  	 	25	  
		 	 7.09
	  	Governing Law; Jurisdiction; Consent to Service of Process	  	 	26	  
		 	 7.10
	  	WAIVER OF JURY TRIAL	  	 	26	  
		 	 7.11
	  	Headings	  	 	27	  
		 	 7.12
	  	Termination or Release	  	 	27	  
		 	 7.13
	  	Additional Subsidiaries	  	 	27	  
		 	 7.14
	  	Collateral Agent Appointed Attorney-in-Fact	  	 	28	  

  

			
	Schedules	  	
		
	Schedule I	  	Subsidiary Loan Parties
	Schedule II	  	Specified Pledge Equity Interests; Specified Pledged Indebtedness
	Schedule III	  	U.S. Intellectual Property
	Schedule IV	  	Commercial Tort Claims
		
	Exhibits	  	
		
	Exhibit I	  	Form of Supplement
	Exhibit II	  	Form of Patent and Trademark Security Agreement
	Exhibit III	  	Form of Copyright Security Agreement

  
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 GUARANTEE AND COLLATERAL AGREEMENT (this “Agreement”), dated as of
May 2, 2011, among PHARMERICA CORPORATION, a Delaware corporation (the “Borrower”), the Subsidiaries of the Borrower from time to time party hereto and Citibank, N.A. (“Citi”), as Collateral Agent. 

Reference is made to the Credit Agreement dated as of May 2, 2011 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among the Borrower, the Lenders party thereto and Citi, as Administrative Agent. The Lenders have agreed to extend credit to the Borrower subject to the terms and conditions set forth in the Credit
Agreement. The obligations of the Lenders to extend such credit are conditioned upon, among other things, the execution and delivery of this Agreement. The Subsidiary Loan Parties are subsidiaries of the Borrower, will derive substantial benefits
from the extension of credit to the Borrower pursuant to the Credit Agreement and are willing to execute and deliver this Agreement in order to induce the Lenders to extend such credit. Accordingly, the parties hereto agree as follows: 

ARTICLE I 

Definitions 
 1.01 Credit Agreement. 
 (a) Capitalized terms used in this Agreement, not
otherwise defined herein and defined in the Credit Agreement shall have the meanings specified in the Credit Agreement. Unless the context otherwise requires, all terms defined in the New York UCC (as defined herein) and not defined in this
Agreement have the meanings specified therein; the term “instrument” shall have the meaning specified in Article 9 of the New York UCC. 
 (b) The rules of construction specified in Section 1.03 of the Credit Agreement also apply to this Agreement. 
 1.02 Other Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 
 “Account Debtor” means any Person who is or who may become obligated to any Loan Party under, with respect to or on account of an Account. 

“Article 9 Collateral” has the meaning assigned to such term in Section 4.01. 

“Borrower Group Members” means, collectively, the Borrower and the Subsidiaries. 

“CHAMPVA” means, collectively, the Civilian Health and Medical Program of the Department of Veteran Affairs, a program
of medical benefits covering retirees and dependents of former members of the armed services administered by the United States Department of Veteran Affairs and all laws, rules, 

 
regulations, manuals, orders, guidelines or requirements pertaining to such program, including (a) all Federal statutes (whether set forth in 38 U.S.C. § 1713 or elsewhere) affecting
such program or applicable to CHAMPVA; and (b) all rules, regulations (including 38 C.F.R. § 17.54), manuals, orders and administrative, reimbursement and other guidelines of all Governmental Authorities promulgated in connection with such
program (whether or not having the force of law), in each case as the same may be amended, supplemented or otherwise modified from time to time. 
 “Collateral” means Article 9 Collateral and Pledged Collateral. 

“Contingent Obligations” means contingent obligations for indemnification, expense reimbursement, tax gross-up or yield
protection as to which no claim has been made. 
 “Copyright License” means any written agreement, now or
hereafter in effect, granting any right to any third party under any copyright now or hereafter owned by any Loan Party or that such Loan Party otherwise has the right to license, or granting any right to any Loan Party under any copyright now or
hereafter owned by any third party, and all rights of such Loan Party under any such agreement. 
 “Copyrights”
means all of the following now owned or hereafter acquired by any Loan Party: (a) all copyright rights in any work subject to the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise,
and (b) all registrations and applications for registration of any such copyright in the United States, including registrations, recordings, supplemental registrations and pending applications for registration in the United States Copyright
Office, including those listed on Schedule III. 
 “Credit Agreement” has the meaning assigned to such term in
the preliminary statement of this Agreement. 
 “Excluded Equity Interests” has the meaning assigned to such
term in Section 3.01. 
 “Federal Securities Laws” has the meaning assigned to such term in
Section 5.04. 
 “General Intangibles” has the meaning assigned to such term in Article 9 of the New York
UCC and, for the avoidance of doubt, includes indemnification claims and contract rights. 
 “Immaterial
Indebtedness” means, with respect to any Loan Party, Indebtedness of any other Borrower Group Member that is less than $1,000,000 in the aggregate for all such Indebtedness of such Borrower Group Member owing to such Loan Party. 

“Intellectual Property” means all intellectual and similar property of every kind and nature now owned or hereafter
acquired by any Loan Party, including inventions, designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary technical and business information, know how, show how or other data or information, software and
databases and all embodiments or fixations thereof and related documentation, registrations and franchises, and all additions, improvements and accessions to, and books and records describing or used in connection with, any of the foregoing.

 “IP Agreements” has the meaning assigned to such term in Section 4.02(a). 

  
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 “License” means any Patent License, Trademark License, Copyright License or
other license or sublicense agreement relating to intellectual property to which any Loan Party is a party. 
 “Medicaid
Receivable” means any Account with respect to which the obligor is a state Governmental Authority (or agent thereof) obligated to pay, pursuant to Federal or state Medicaid program statutes or regulations, for services rendered to eligible
beneficiaries thereunder. 
 “Medicare Receivable” means any Account with respect to which the obligor is a
Federal Governmental Authority (or agent thereof) obligated to pay, pursuant to federal Medicare program statutes or regulations, for services rendered to eligible beneficiaries thereunder. 

“New York UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York. 

“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 or hereafter owned by any Loan Party or that any Loan Party otherwise has the right to license, is in existence, or granting to any Loan Party any right to make, use or sell any invention on which a
patent, now or hereafter owned by any third party, is in existence, and all rights of any Loan Party under any such agreement. 

“Patents” means all of the following now owned or hereafter acquired by any Loan Party: (a) all letters patent of
the United States or the equivalent thereof in any other country, all registrations and recordings thereof, and all applications for letters patent of the United States or the equivalent thereof in any other country, including registrations,
recordings and pending applications in the United States Patent and Trademark Office, including those listed on Schedule III, and (b) 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. 
 “Pledged Collateral” has the meaning assigned to such term in Section 3.01. 
 “Pledged Equity Interests” has the meaning assigned to such term in Section 3.01. 
 “Pledged Indebtedness” has the meaning assigned to such term in Section 3.01. 
 “Pledged Securities” means any promissory notes, stock certificates or other securities certificates or instruments now or hereafter included in the Pledged Collateral, including all
certificates and instruments representing or evidencing any Pledged Collateral. 
 “Proceeds” has the meaning
assigned to such term in Section 9-102 of the New York UCC. 
 “Retained Collection Rights” means, with
respect to any Medicaid Receivable, Medicare Receivable, TRICARE Receivable or VA Receivable of any Loan Party, the right of such Loan Party to collect and receive from the obligor thereon payments in respect of such receivable in

  
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the absence of a court order requiring such obligor to submit payments thereon directly to a Person other than such Loan Party. 

“Secured Cash Management/Purchasing Card Obligations” means the obligations described in clause (c) of the
definition of the term “Secured Obligations”. 
 “Secured Parties” means, collectively, (a) the
Lenders, (b) the Collateral Agent, (c) the Administrative Agent, (d) the Issuing Banks, (e) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document, (f) each Permitted
Secured Hedge Bank, (g) each other Person to whom any of the Secured Obligations (including Secured Cash Management/Purchasing Card Obligations) is owed and (h) the successors and assigns of each of the foregoing. 

“Security Interest” has the meaning assigned to such term in Section 4.01. 

“Specified Pledged Equity Interests” means, with respect to any Loan Party, any Pledged Equity Interests that are Equity
Interests in a Subsidiary. 
 “Specified Pledged Indebtedness” means, with respect to any Loan Party, Pledged
Indebtedness (other than Immaterial Indebtedness) owing to it by any other Borrower Group Member. 
 “Specified Pledged
Securities” means, collectively, the Specified Pledged Equity Interests and the Specified Pledged Indebtedness. 

“Trademark License” means any written agreement, now or hereafter in effect, granting to any third party any right to
use any trademark now or hereafter owned by any Loan Party or that any Loan Party otherwise has the right to license, or granting to any Loan Party any right to use any trademark now or hereafter owned by any third party, and all rights of any Loan
Party under any such agreement. 
 “Trademarks” means all of the following now owned or hereafter acquired by
any Loan Party: (a) all trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names, trade styles, trade dress, logos, other source or business identifiers, designs and general intangibles
of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all registration and recording applications filed in connection therewith, and all extensions or renewals thereof, including registrations
and registration applications in the United States Patent and Trademark Office or any similar offices in any State of the United States, and all extensions, or renewals thereof, including those listed on Schedule III, (b) all goodwill
associated therewith or symbolized thereby and (c) all other assets, rights and interests that uniquely reflect or embody such goodwill. 
 “TRICARE” means, collectively, a program of medical benefits covering former and active members of the uniformed services and certain of their dependents, financed and administered by the
United States Department of Defense, Department of Health and Human Services and Department of Transportation, which program was formerly known as the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), and all laws, rules,

  
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regulations, manuals, orders and administrative, reimbursement and other guidelines of all Governmental Authorities promulgated in connection with such program (whether or not having the force of
law), in each case as the same may be amended, supplemented or otherwise modified from time to time. 
 “TRICARE
Receivable” means any Account payable pursuant to TRICARE. 
 “VA Receivable” means any Account
payable pursuant to CHAMPVA. 
 ARTICLE II 
 Guarantee 
 2.01 Guarantee. Each Subsidiary Loan Party
unconditionally guarantees, jointly with the other Subsidiary Loan Parties and severally, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Secured Obligations. Each of the Subsidiary Loan Parties
further agrees that the Secured Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Secured
Obligation. Each of the Subsidiary Loan Parties waives presentment to, demand of payment from and protest to the Borrower or any other Subsidiary Loan Party of any of the Secured Obligations, and also waives notice of acceptance of its guarantee and
notice of protest for nonpayment. 
 2.02 Guarantee of Payment. Each of the Subsidiary Loan Parties further agrees that
its guarantee hereunder constitutes a guarantee of payment when due and not of collection. Each of the Subsidiary Loan Parties waives any right to require that any resort be had by the Collateral Agent or any other Secured Party to any security held
for the payment of the Secured Obligations or to any balance of any deposit account or credit on the books of the Collateral Agent or any other Person in favor of the Borrower or any Subsidiary Loan Party. 

2.03 No Limitations. 
 (a) Except for termination or release of a Subsidiary Loan Party’s obligations hereunder as expressly provided in Section 7.12, the obligations of each Subsidiary Loan Party hereunder shall not
be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set-off, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or unenforceability of the Secured Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Subsidiary Loan Party hereunder shall not be
discharged or impaired or otherwise affected by (i) the failure of the Collateral Agent or any other Secured Party to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or otherwise;
(ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Subsidiary Loan Party under this Agreement;
(iii) the release of any security held by the Collateral Agent or any other Secured Party for the Secured Obligations or any of them; (iv) any default, failure or delay, willful or otherwise, in the performance of the Secured Obligations;
or (v) any other act or 

  
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omission that may or might in any manner or to any extent vary the risk of any Subsidiary Loan Party or otherwise operate as a discharge of any Subsidiary Loan Party as a matter of law or equity
(other than the payment in full in cash of all the Secured Obligations). Each Subsidiary Loan Party expressly authorizes the Secured Parties, to the fullest extent permitted by applicable law, to take and hold security for the payment and
performance of the Secured Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or to
release or substitute any one or more other guarantors or obligors upon or in respect of the Secured Obligations, all without affecting the obligations of any Subsidiary Loan Party hereunder. 

(b) To the fullest extent permitted by applicable law, each Subsidiary Loan Party waives any defense based on or arising out of any
defense of the Borrower or any other Loan Party or the unenforceability of the Secured Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower or any other Loan Party, other than the payment
in full in cash of all the Secured Obligations. The Collateral Agent and the other Secured Parties may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of
any such security in lieu of foreclosure, compromise or adjust any part of the Secured Obligations, make any other accommodation with the Borrower or any other Loan Party or exercise any other right or remedy available to them against the Borrower
or any other Loan Party, without affecting or impairing in any way the liability of any Subsidiary Loan Party hereunder except to the extent the Secured Obligations have been fully paid in full in cash or the guarantee of such Subsidiary Loan Party
has been terminated or released pursuant to Section 7.12. To the fullest extent permitted by applicable law, each Subsidiary Loan Party waives any defense arising out of any such election even though such election operates, pursuant to
applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Subsidiary Loan Party against the Borrower or any other Loan Party, as the case may be, or any security. 

2.04 Reinstatement. Each of the Subsidiary Loan Parties agrees that its guarantee hereunder shall, to the fullest extent permitted
by applicable law, continue to be effective or be reinstated, as the case may be, if at any time payment of any Secured Obligation, or any part thereof, is rescinded or must otherwise be restored by the Collateral Agent or any other Secured Party
upon the bankruptcy or reorganization of the Borrower, any other Loan Party or otherwise. 
 2.05 Agreement To Pay;
Subrogation. In furtherance of the foregoing and not in limitation of any other right that the Collateral Agent or any other Secured Party has at law or in equity against any Subsidiary Loan Party by virtue hereof, upon the failure of any Loan
Party to pay any Secured Obligation that such Loan Party is obligated to pay, when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Subsidiary Loan Party hereby promises to and
will forthwith pay, or cause to be paid, to the Collateral Agent for distribution to the applicable Secured Parties in cash the amount of such unpaid Secured Obligation. Upon payment by any Subsidiary Loan Party of any sums to the Collateral Agent
as provided above, all rights of such Subsidiary Loan Party against the Borrower or any other Loan Party arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subject
to Article VI. 

  
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 2.06 Information. Each Subsidiary Loan Party assumes all responsibility for being and
keeping itself informed of the Borrower’s and each other Subsidiary Loan Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Secured Obligations and the nature, scope and extent
of the risks that such Subsidiary Loan Party assumes and incurs hereunder, and agrees that none of the Collateral Agent or the other Secured Parties will have any duty to advise such Subsidiary Loan Party of information known to it or any of them
regarding such circumstances or risks. 
 ARTICLE III 
 Pledge of Securities 
 3.01 Pledge. As security for the payment or
performance, as the case may be, in full of the Secured Obligations, each Loan Party hereby assigns and pledges to the Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, and hereby grants to the
Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, a security interest in, all of such Loan Party’s right, title and interest in, to and under the following assets, whether now owned or hereafter
acquired (a)(i) the shares of capital stock and other Equity Interests owned by such Loan Party on the date hereof (including all such shares and other Equity Interests in the Subsidiaries listed opposite the name of such Loan Party on Schedule II),
(ii) any Equity Interests obtained in the future by such Loan Party and (iii) the certificates representing all such Equity Interests (all of the foregoing being collectively referred to as the “Pledged Equity Interests”);
provided that the Pledged Equity Interests shall not include (A) more than 66% of the issued and outstanding voting Equity Interests of any CFC or (B) Equity Interests in any Person other than a wholly-owned Subsidiary where such
assignment or pledge hereunder requires, pursuant to the constituent documents of such Person or any related joint venture, shareholder or like agreement binding on any shareholder, partner or member of such Person, the consent of any governing
body, shareholder, partner or member of such Person (other than a Loan Party) and such consent shall not have been obtained (the Equity Interests so excluded being collectively referred to herein as the “Excluded Equity Interests”);
(b)(i) debt securities owned by such Loan Party on the date hereof (including all such debt securities of other Borrower Group Members listed opposite the name of such Loan Party on Schedule II), (ii) any debt securities obtained in the future
by such Loan Party and (iii) all promissory notes and any other instruments evidencing such debt securities (all of the foregoing being collectively referred to as the “Pledged Indebtedness”); (c) subject to
Section 3.06, all payments of principal or interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other
Proceeds received in respect of, the securities and instruments referred to in clauses (a) and (b) above; (d) subject to Section 3.06, all rights and privileges of such Loan Party with respect to the securities, instruments and
other property referred to in clauses (a), (b) and (c) above; and (e) all Proceeds of any of the foregoing (the items referred to in clauses (a) through (e) above being collectively referred to as the “Pledged
Collateral”). 
 TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest, powers,
privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, forever; subject, however, to the terms, covenants and conditions hereinafter
set forth. 

  
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 3.02 Delivery of the Pledged Collateral. 

(a) Each Loan Party represents and warrants that any and all Specified Pledged Securities in existence on the date hereof have been
delivered to the Collateral Agent. Each Loan Party agrees to deliver or cause to be delivered to the Collateral Agent any and all Specified Pledged Securities at any time owned by such Loan Party promptly (and in any event within 5 Business Days)
upon acquiring such Specified Pledged Securities. 
 (b) Each Loan Party represents and warrants that any and all Indebtedness
(other than Immaterial Indebtedness) for borrowed money owed to it evidenced by a duly executed promissory note in existence on the date hereof have been delivered to the Collateral Agent. Each Loan Party will cause any Indebtedness for borrowed
money owed to it by any other Borrower Group Member (other than Immaterial Indebtedness) to be evidenced by a duly executed promissory note that is pledged and delivered to the Collateral Agent pursuant to the terms hereof promptly (and in any event
within 5 Business Days) upon receipt of such promissory note. 
 (c) Upon delivery to the Collateral Agent, all Specified
Pledged Securities shall be accompanied by stock powers duly executed in blank or other instruments of transfer reasonably satisfactory to the Collateral Agent. Each delivery of Specified Pledged Securities after the date of this Agreement shall be
accompanied by a schedule describing the Specified Pledged Securities so delivered, which schedule shall be attached to Schedule II hereto and made a part thereof; provided that failure to so attach any such schedule shall not affect the
validity of such pledge of such Specified Pledged Securities. 
 (d) The security interests granted in Section 3.01 are
granted as security only and shall not subject the Collateral Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of any Loan Party with respect to or arising out of the Pledged Collateral. 

3.03 Representations, Warranties and Covenants. The Loan Parties jointly and severally represent, warrant and covenant to and with
the Collateral Agent, for the benefit of the Secured Parties, that: 
 (a) Schedule II sets forth a true and
complete list, with respect to each Loan Party, of (i) all the Equity Interests owned by such Loan Party in the Subsidiaries on the date hereof (other than any Excluded Equity Interests), setting forth the percentage of the issued and
outstanding units of each class of the Equity Interests of the issuer thereof represented by the Pledged Equity Interests of such Loan Party, and (ii) all Specified Pledged Indebtedness owned by such Loan Party on the date hereof, including all
promissory notes in respect thereof; 
 (b) except to the extent any failure to be so authorized or issued could
not, in the aggregate, be reasonably expected to be adverse to the interests of the Secured Parties in any material respect, (i) the Pledged Equity Interests and Pledged Indebtedness have been duly and validly authorized and issued by the
issuers thereof, (ii) in the case of Pledged Equity Interests, the same are fully paid and nonassessable and (iii) in the case of 

  
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Pledged Indebtedness, the same are valid and binding obligations of the issuers thereof, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting
creditors’ rights generally, concepts of reasonableness and general principles of equity, regardless of whether considered in a proceeding in equity or at law; 

(c) except for the security interests granted hereunder, each of the Loan Parties (i) is and, subject to any
transfers made in compliance with the Credit Agreement, will continue to be the direct owner, beneficially, and to the extent applicable, of record, of the Specified Pledged Securities indicated on Schedule II as owned by such Loan Party,
(ii) holds the same free and clear of all Liens, other than Liens created by this Agreement and non-consensual Permitted Encumbrances, and (iii) will, to the extent commercially reasonable, defend its title or interest thereto or therein
against any and all Liens (other than the Lien created by this Agreement and Permitted Encumbrances), however arising, of all Persons whomsoever; and 
 (d) no consent or approval of any Governmental Authority, any securities exchange or any other Person was or is necessary to the validity of the pledge effected hereby (other than such consents and
approvals as have been obtained and are in full force and effect). 
 3.04 Certification of Limited Liability Company and
Limited Partnership Interests. Each Loan Party acknowledges and agrees that (a) each interest in any limited liability company or limited partnership that is a Specified Pledged Equity Interest pledged hereunder and not represented by a
certificate shall not be a “security” within the meaning of Article 8 of the New York UCC and shall not be governed by Article 8 of the Uniform Commercial Code of the applicable jurisdiction and (b) the Loan Parties shall at no time
elect to treat any such interest as a “security” within the meaning of Article 8 of the New York UCC or issue any certificate representing such interest (except that the Loan Parties may elect to so treat any such interest as a
“security” and issue any certificate representing such interest if promptly thereafter the applicable Loan Party delivers such certificate to the Collateral Agent). 
 3.05 Registration in Nominee Name; Denominations. The Collateral Agent, on behalf of the Secured Parties, shall have the right to hold the Specified Pledged Securities in the name of the applicable
Loan Party, endorsed or assigned in blank or in favor of the Collateral Agent or, at any time upon the occurrence and during the continuance of an Event of Default, in its own name (as pledgee) or the name of its nominee (as pledgee or as
sub-agent). Upon the occurrence and during the continuance of an Event of Default, each Loan Party will promptly give to the Collateral Agent copies of any material notices or other communications received by it with respect to Pledged Securities
registered in the name of such Loan Party. 
 3.06 Voting Rights; Dividends and Interest. 

(a) Unless and until an Event of Default shall have occurred and be continuing and the Collateral Agent shall have notified the Loan
Parties that their rights under this Section 3.06 are being suspended: 

  
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 (i) Each Loan Party shall be entitled to exercise any and all voting and/or
other consensual rights and powers inuring to an owner of Pledged Equity Interests or Pledged Indebtedness; provided that such rights and powers shall not be exercised in any manner that could materially and adversely affect the rights
inuring to a holder of any Pledged Equity Interests or any Pledged Indebtedness or the rights and remedies of any of the Collateral Agent or the other Secured Parties under this Agreement or any other Loan Document or the ability of the Secured
Parties to exercise the same. 
 (ii) The Collateral Agent shall execute and deliver to each Loan Party, or cause
to be executed and delivered to such Loan Party, all such proxies, powers of attorney and other instruments as such Loan Party may reasonably request for the purpose of enabling such Loan Party to exercise the voting and/or consensual rights and
powers it is entitled to exercise pursuant to subparagraph (i) above. 
 (iii) Each Loan Party shall be
entitled to receive and retain any and all dividends, interest, principal and other distributions paid on or distributed in respect of the Pledged Equity Interests and the Pledged Indebtedness to the extent and only to the extent that such
dividends, interest, principal and other distributions are not prohibited by the terms and conditions of the Credit Agreement, the other Loan Documents and applicable laws; provided that any noncash dividends, interest, principal or other
distributions that would constitute Pledged Equity Interests or Pledged Indebtedness, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Equity Interests or received
in exchange for Pledged Equity Interests or Pledged Indebtedness or any part thereof, or in redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise,
shall be and become part of the Pledged Collateral, and to the extent constituting a Specified Pledged Security, if received by any Loan Party shall be held in trust for the benefit of the Collateral Agent and the other Secured Parties and shall be
forthwith delivered to the Collateral Agent in the same form as so received (with any necessary endorsement). 
 (b) Upon the
occurrence and during the continuance of an Event of Default, after the Collateral Agent shall have notified the Loan Parties of the suspension of their rights under paragraph (a)(iii) of this Section 3.06, then all rights of any Loan Party to
dividends, interest, principal or other distributions that such Loan Party is authorized to receive pursuant to paragraph (a)(iii) of this Section 3.06 shall cease, and all such rights shall thereupon become vested in the Collateral Agent,
which shall have the sole and exclusive right and authority to receive and retain such dividends, interest, principal or other distributions. All dividends, interest, principal or other distributions received by any Loan Party contrary to the
provisions of this Section 3.06 shall be held in trust for the benefit of the Collateral Agent and the other Secured Parties, shall be segregated from other property or funds of such Loan Party and shall be forthwith delivered to the Collateral
Agent upon demand in the same form as so received (with any necessary endorsement). Any and all money and other property paid over to or received by the Collateral Agent pursuant to the provisions of this paragraph (b) shall be retained by the
Collateral Agent in an account to be established by the Collateral Agent upon receipt of such money or other property and shall be applied in accordance with the provisions of Section 5.02. After all Events of Default have been cured or waived
and the Borrower has delivered to the 

  
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Collateral Agent a certificate to that effect, the Collateral Agent shall promptly repay to each Loan Party (without interest) all dividends, interest, principal or other distributions that such
Loan Party would otherwise be permitted to retain pursuant to the terms of paragraph (a)(iii) of this Section 3.06 and that remain in such account. 
 (c) Upon the occurrence and during the continuance of an Event of Default, after the Collateral Agent shall have notified the Loan Parties of the suspension of their rights under paragraph (a)(i) of this
Section 3.06, then (subject to any restriction contained in joint venture agreements in respect of the applicable Pledged Equity Interests) all rights of any Loan Party to exercise the voting and consensual rights and powers it is entitled to
exercise pursuant to paragraph (a)(i) of this Section 3.06, and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 3.06, shall cease, and all such rights shall thereupon become vested in the Collateral Agent,
which shall have the sole and exclusive right and authority to exercise such voting and consensual rights and powers; provided that, unless otherwise directed by Lenders constituting “Required Lenders” under the Credit Agreement,
the Collateral Agent shall have the right from time to time following and during the continuance of an Event of Default to permit the Loan Parties to exercise such rights. After all Events of Default have been cured or waived and the Borrower has
delivered to the Collateral Agent a certificate to that effect, the voting and consensual rights and powers the Loan Parties are otherwise entitled to exercise pursuant to paragraph (a)(i) of this Section 3.06 shall be restored. 

(d) Any notice given by the Collateral Agent to the Loan Parties suspending their rights under paragraph (a) of this
Section 3.06 may (i) be given by telephone if promptly confirmed in writing, (ii) be given to one or more of the Loan Parties at the same or different times and (iii) suspend the rights of the Loan Parties under paragraph (a)(i)
or paragraph (a)(iii) in part without suspending all such rights (as specified by the Collateral Agent in its sole and absolute discretion) and without waiving or otherwise affecting the Collateral Agent’s rights to give additional notices from
time to time suspending other rights so long as an Event of Default has occurred and is continuing. 
 ARTICLE IV 

Security Interests in Personal Property 
 4.01 Security Interest. 
 (a) As security for the payment or performance,
as the case may be, in full of the Secured Obligations, each Loan Party hereby assigns and pledges to the Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, its
successors and permitted assigns, for the benefit of the Secured Parties, a security interest (the “Security Interest”) in, all right, title and interest in, to and under any and all of the following assets and properties now owned
or at any time hereafter acquired by such Loan Party or in which such Loan Party now has or at any time in the future may acquire any right, title or interest (collectively, the “Article 9 Collateral”): 

(i) all Accounts, including all Health-care-insurance Receivables; 

  
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 (ii) all Chattel Paper; 

(iii) all Documents; 
 (iv) all Equipment; 
 (v) all Inventory; 

(vi) all other Goods; 
 (vii) all Instruments; 
 (viii) all Investment Property;

 (ix) all Intellectual Property (except for “intent-to-use” applications for a trademark or service
mark, to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such “intent-to-use” application under applicable Federal law); 

(x) all other General Intangibles; 

(xi) all Letter-of-Credit Rights that are Supporting Obligations; 

(xii) all Commercial Tort Claims specifically described on Schedule IV hereto, as such schedule may be supplemented from
time to time pursuant to the terms hereof; 
 (xiii) all books and records pertaining to any Article 9
Collateral; and 
 (xiv) to the extent not otherwise included, all Proceeds, Supporting Obligations and products
of any and all of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing; 

provided that, Article 9 Collateral shall not include (A) Intellectual Property to the extent, but only to the extent that, perfection of a
security interest therein requires a filing to be made in any jurisdiction other than the United States, any political subdivision thereof or its territories or possessions, (B) the Excluded Equity Interests, (C) to the extent (but only to
the extent) that at any time the Collateral Agent may not validly possess a security interest in any Retained Collection Rights under applicable law, such Retained Collection Rights, (D) any contract, agreement, lease, license or permit to
which a Loan Party is a party or any of its rights or interests thereunder if and for so long as the grant of such security interest shall constitute or result in (1) the unenforceability of any right of the Loan Party therein or (2) a
breach or termination pursuant to the terms of, or a default under, any such contract, agreement, lease, license or permit (other than to the extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or
9-409 of the New York UCC or any other applicable law or principles of equity), provided that such security interest shall attach immediately at such time as the condition causing such unenforceability, breach or termination shall cease to be
applicable and, to the extent severable, shall attach immediately to any portion of such contract or agreement that does not result in any of the consequences specified this clause, including any

  
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Proceeds of such contract or agreement, (E) motor vehicles the perfection of a security interest in which is excluded from the Uniform Commercial Code in the relevant jurisdiction,
(F) Deposit Accounts (except to the extent constituting or containing Collateral referred to in clause (xiv) above) and (G) Letter-of-Credit Rights not constituting Supporting Obligations, (H) cash (except to the extent
constituting Collateral referred to in clause (xiv) above), (I) real property leases and (J) Commercial Tort Claims that are not specifically described in Schedule IV (as such schedule may be supplemented from time to time).

 (b) Each Loan Party hereby irrevocably authorizes the Collateral Agent at any time and from time to time to file in the
jurisdiction of its organization any initial financing statements with respect to the Collateral or any part thereof and amendments thereto that (i) indicate the Collateral as all assets of such Loan Party or words of similar effect as being of
an equal or lesser scope or with greater detail and (ii) contain the information required by Article 9 of the Uniform Commercial Code of such jurisdiction for the filing of any financing statement or amendment, including whether such Loan Party
is an organization, the type of organization and any organizational identification number issued to such Loan Party. Each Loan Party agrees to provide such information to the Collateral Agent promptly upon request. 

Each Loan Party hereby further irrevocably authorizes the Collateral Agent at any time and from time to time to file with the United
States Patent and Trademark Office or United States Copyright Office (or any successor office) such documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest
granted by such Loan Party in any United States registered Patent, United States registered Copyright and United States registered Trademark (and applications for any of the foregoing), without the signature of such Loan Party and naming such Loan
Party as debtor and the Collateral Agent as secured party. 
 (c) The Security Interest is granted as security only and shall
not subject the Collateral Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of any Loan Party with respect to or arising out of the Article 9 Collateral. 

4.02 Representations and Warranties. The Loan Parties jointly and severally represent and warrant to the Collateral Agent, for the
benefit of the Secured Parties, that: 
 (a) The Perfection Certificate has been duly prepared, completed and
executed and the information set forth therein, including the exact legal name of each Loan Party, is correct and complete as of the date of this Agreement. Each Loan Party shall ensure that a Patent and Trademark Security Agreement, in the form of
Exhibit II hereto, and a Copyright Security Agreement in the form of Exhibit III hereto (such agreements being collectively referred to as the “IP Agreements”), in each case containing a description of the Article 9 Collateral
consisting of the United States registered Patents, United States registered Trademarks and United States registered Copyrights (and applications for any of the foregoing), as applicable, and executed by each Loan Party owning any such Article 9
Collateral, shall be received by the Collateral Agent within one month after the execution of this Agreement, for registration thereof with the United States Patent and Trademark Office or the United States Copyright

  
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Office pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. § 205 and the regulations thereunder, as applicable. 

(b) The Article 9 Collateral is owned by the Loan Parties free and clear of any Lien, except for Liens permitted under
Section 6.02 of the Credit Agreement. 
 (c) Schedule III hereto sets forth, as of the date hereof,
(i) all of each Loan Party’s United States registered Patents and Patent applications, including the name of the registered owner, type, registration or application number and the expiration date (if already registered) of each such Patent
and Patent application owned by any Loan Party, (ii) all of each Loan Party’s United States registered Trademarks and Trademark applications, including the name of the registered owner, the registration or application number and the
expiration date (if already registered) of each such Trademark and Trademark application owned by any Loan Party, and (iii) all of each Loan Party’s United States registered Copyrights and Copyright applications, including the name of the
registered owner, title and, if applicable, the registration number of each such Copyright or Copyright application owned by any Loan Party. 
 (d) Schedule IV hereto sets forth, as of the date hereof, each Commercial Tort Claim in respect of which a complaint or a counterclaim has been filed by any Loan Party seeking damages in an amount of
$5,000,000 or more. 
 (e) The security interest in and Lien on the Collateral granted to the Collateral Agent
for the benefit of the Secured Parties hereunder constitutes (a) a legal and valid security interest in all the Collateral securing the payment and performance of the Secured Obligations, and (b) subject to the filings and other actions
required hereunder, a perfected security interest in all the Collateral and will at all times constitute a perfected, continuing security interest therein, prior to all other Liens on the Collateral except for Permitted Encumbrances. 

(f) All financing statements, agreements, instruments and other documents necessary to perfect the security interest
hereunder granted by it to the Collateral Agent in respect of the Collateral have been delivered to the Collateral Agent in completed and, to the extent necessary or appropriate, duly executed form for filing in each appropriate governmental,
municipal or other office and at the sole cost and expense of the Loan Parties, such Loan Party will maintain the security interest created by this Agreement in the Collateral as a perfected first priority security interest subject only to Permitted
Encumbrances. 
 4.03 Covenants. 
 (a) Each Loan Party agrees promptly to notify the Collateral Agent in writing of any change (i) in its legal name, (ii) in its type of organization or corporate structure, (iii) in its
Federal Taxpayer Identification Number or organizational identification number, if any, issued to it by the jurisdiction of its organization, (iv) in the jurisdiction of its organization or (v) in its chief executive office. Each Loan
Party agrees to promptly provide the Collateral Agent with certified organizational documents reflecting any of the changes described in the first sentence of 

  
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this paragraph. Each Loan Party agrees not to effect or permit any change referred to in this paragraph unless all filings have been made under the Uniform Commercial Code or otherwise that are
required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral as and to the extent required hereunder. 

(b) Each Loan Party agrees to maintain, at its own cost and expense, such complete and accurate records with respect to the Collateral
owned by it as is consistent with its current practices and, upon the occurrence and during the continuance of an Event of Default, promptly to prepare and deliver to the Collateral Agent a duly certified schedule or schedules setting forth such
information relating to the Collateral as the Collateral Agent may reasonably request. 
 (c) Each Loan Party shall, at its own
expense, use commercially reasonable efforts to defend title to the Collateral against all Persons and to defend the Security Interest of the Collateral Agent in the Collateral and the priority thereof against any Lien not permitted under
Section 6.02 of the Credit Agreement; provided, however, that the foregoing shall not require a Loan Party to institute an Intellectual Property infringement action against a third party unless such action would be (i) in the
ordinary course of business of the Borrower and the Subsidiaries and (ii) in accordance with such prudent and standard practice used in industries that are the same as or similar to those in which the Borrower and the Subsidiaries are engaged.

 (d) Each Loan Party agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the Collateral Agent may from time to time reasonably request to better assure, preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the
payment of any fees and taxes required in connection with the execution and delivery of this Agreement, the granting of the Security Interest and the filing of any financing statements or other documents in connection herewith or therewith;
provided that no Loan Party shall be required (i) to make any filing or record any document to perfect the Security Interest in Intellectual Property of such Loan Party other than the filing of Uniform Commercial Code financing
statements with applicable filing offices and the filing of IP Security Agreements with the United States Patent and Trademark Office or the United States Copyright Office, (ii) to provide control with respect to any Deposit Account, Securities
Account or Security Entitlements, (iii) to deliver to the Collateral Agent any tangible Chattel Paper or to provide control in respect of any Electronic Chattel Paper or (iv) to deliver any securities certificates or Instruments other than
the Specified Pledged Securities. 
 (e) Upon the occurrence and during the continuance of an Event of Default, the Collateral
Agent may, at its option, discharge past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Collateral and not permitted pursuant to Section 6.02 of the Credit Agreement,
and may pay for the maintenance and preservation of the Collateral to the extent any Loan Party fails to do so as required by the Credit Agreement or this Agreement, and each Loan Party jointly and severally agrees to reimburse the Collateral Agent
on demand for any payment made or any expense reasonably incurred by the Collateral Agent pursuant to the foregoing authorization; provided that nothing in this paragraph shall be interpreted as excusing any Loan Party from the performance
of, or imposing any obligation on the Collateral Agent or any Secured Party to cure or perform, any 

  
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covenants or other promises of any Loan Party with respect to taxes, assessments, charges, fees, Liens, security interests or other encumbrances and maintenance as set forth herein or in the
other Loan Documents. 
 (f) Each Loan Party shall remain liable to observe and perform all the conditions and obligations to be
observed and performed by it under each contract, agreement or instrument relating to the Collateral, all in accordance with the terms and conditions thereof, and each Loan Party jointly and severally agrees to indemnify and hold harmless the
Collateral Agent and the other Secured Parties from and against any and all liability for such performance. 
 (g) None of the
Loan Parties shall make or permit to be made an assignment, pledge or hypothecation of the Article 9 Collateral, or shall grant any other Lien in respect of the Article 9 Collateral, except to the extent not prohibited by the Credit Agreement.

 (h) The Loan Parties, at their own expense, shall maintain or cause to be maintained insurance covering physical loss or
damage to the Inventory and Equipment in accordance with Section 5.07 of the Credit Agreement. Each Loan Party irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated by the Collateral
Agent) as such Loan Party’s true and lawful agent (and attorney-in-fact) for the purpose, during the continuance of an Event of Default, of making, settling and adjusting claims in respect of Article 9 Collateral under such policies of
insurance, endorsing the name of such Loan Party on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect thereto. In the event that any Loan
Party at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or to pay any premium in whole or part relating thereto, the Collateral Agent may, without waiving or releasing any obligation or liability
of the Loan Parties hereunder or any Event of Default, in its sole discretion, obtain and maintain such policies of insurance and pay such premium and take any other actions with respect thereto as the Collateral Agent deems advisable. All sums
disbursed by the Collateral Agent in connection with this paragraph, including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable, upon demand, by the Loan Parties to the Collateral Agent and
shall be additional Secured Obligations secured hereby. 
 4.04 Other Actions. In order to further insure the attachment,
perfection and priority of, and the ability of the Collateral Agent to enforce, the Security Interest, each Loan Party agrees, in each case at such Loan Party’s own expense, to take the following actions with respect to the following Article 9
Collateral: 
 (a) Commercial Tort Claims. Within five Business Days after any delivery of financial
statements under Section 5.01(a) or Section 5.01(b) of the Credit Agreement, the Loan Parties will deliver a supplement to Schedule IV hereto specifically describing any Commercial Tort Claim in respect of which a complaint or counterclaim
seeking damages in an amount of $5,000,000 or more has been filed by any Loan Party prior to the last day of the fiscal quarter or fiscal year to which such certificate relates and that has not been so described on such Schedule prior to such
supplement. 

  
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 (b) Covenants Regarding Patent, Trademark and Copyright Collateral.
(i) Within five Business Days after any delivery of financial statements under Section 5.01(a) or Section 5.01(b) of the Credit Agreement, the Loan Parties will deliver a supplement to Schedule III hereto identifying (A) all of
each Loan Party’s United States registered Patents and Patent applications, including the name of the registered owner, type, registration or application number and the expiration date (if already registered) of each such Patent and Patent
application, (B) all of each Loan Party’s United States registered Trademarks and Trademark applications, including the name of the registered owner, the registration or application number and the expiration date (if already registered) of
each such Trademark and Trademark application, and (C) all of each Loan Party’s United States registered Copyrights and Copyright applications, including the name of the registered owner, title and, if applicable, the registration number
of each such Copyright or Copyright application, in each case, that have not been so identified prior to such supplement; provided that any such item enumerated in the preceding clauses (A), (B) or (C) shall automatically constitute
Collateral as if such would have constituted Collateral at the time of execution hereof and be subject to the Lien and security interest created by this Agreement without further action by any party. Each Loan Party hereby (1) agrees to execute
and deliver any and all agreements, instruments, documents and papers as the Collateral Agent may reasonably request to evidence the Collateral Agent’s security interest in such Intellectual Property and (2) appoints the Collateral Agent
as its attorney-in-fact to execute and file such writings for the sole purposes of evidencing or perfecting such Security Interest, all acts of such attorney being hereby ratified and confirmed and such power, being coupled with an interest, being
irrevocable. 
 (ii) Except to the extent that the failure to do so, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, each Loan Party agrees that it will not do any act or omit do to any act (and will exercise commercially reasonable efforts to prevent its licensees from doing any act or omitting to do any
act) whereby any United States registered Patent may become invalidated or dedicated to the public, and agrees that it shall continue to mark any products covered by a United States registered Patent with the relevant patent number as necessary and
sufficient to establish and preserve its maximum rights under applicable patent laws. 
 (iii) Except to the
extent that the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, each Loan Party (either itself or through its licensees or its sublicensees) will, for each United States
registered Trademark, (A) maintain such Trademark in full force free from any claim of abandonment or invalidity for non-use, (B) maintain the quality of products and services offered under such Trademark, (C) display such Trademark
with notice of Federal or foreign registration to the extent necessary and sufficient to establish and preserve its maximum rights under applicable law and (D) not knowingly use or knowingly permit the use of such Trademark in violation of any
third party rights. 
 (iv) Except to the extent that the failure to do so, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect, each Loan Party (either itself or through its licensees or sublicensees) will, for each work covered by a United States registered Copyright, continue to publish, reproduce,
display, 

  
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adopt and distribute the work with appropriate copyright notice as necessary and sufficient to establish and preserve its maximum associated rights under applicable copyright laws. 

(v) Except to the extent that the failure to do so, individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect, each Loan Party will take all necessary steps that are consistent with the practice in any proceeding before the United States Patent and Trademark Office, United States Copyright Office or any office or agency in any
political subdivision of the United States to maintain and pursue each material application relating to any United States Patent, United States Trademark or United States Copyright (and to obtain the relevant grant or registration) and to maintain
each issued United States Patent and each registration of United States Trademarks and United States Copyrights. 
 ARTICLE V

 Remedies 
 5.01 Remedies Upon Default. Upon the occurrence and during the continuance of an Event of Default, each Loan Party agrees to deliver each item of Collateral to the Collateral Agent on demand, and
it is agreed that the Collateral Agent shall have the right, with or without legal process and with or without prior notice or demand for performance (but subject to Section 9-609 of the New York UCC), to take possession of the Collateral and
without liability for trespass to enter any premises where the Collateral may be located for the purpose of taking possession of or removing the Collateral and, generally, to exercise any and all rights afforded to a secured party under the Uniform
Commercial Code or other applicable law. Without limiting the generality of the foregoing, each Loan Party agrees that the Collateral Agent shall have the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose
of all or any part of the Collateral at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. The Collateral Agent shall be
authorized at any such sale of securities (if it deems it advisable to do so) to restrict the prospective bidders or purchasers 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 such purchaser
at any sale of Collateral shall hold the property sold absolutely, free from any claim or right on the part of any Loan Party, and each Loan Party hereby waives (to the extent permitted by law) all rights of redemption, stay and appraisal which such
Loan Party 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 shall give the applicable Loan Parties 10 days’ written notice (which each Loan Party agrees is reasonable
notice within the meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale of Collateral. Such notice, in the case of a public sale, shall state the time
and place for such sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day on which the Collateral,

  
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or portion thereof, will first be offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places
as the Collateral Agent may fix and state in the notice (if any) of such sale. At any such sale, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole
and absolute discretion) determine. The Collateral Agent shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The
Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at
the time and place to which the same was so adjourned. In case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the Collateral Agent until the sale price is paid by the
purchaser or purchasers thereof, but the Collateral Agent shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold
again upon like notice. At any public (or, to the extent permitted by law, private) sale made pursuant to this Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by law) from any right of redemption, stay, valuation
or appraisal on the part of any Loan Party (all said rights being also hereby waived and released to the extent permitted by law), the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then
due and payable to such Secured Party from any Loan Party as a credit against the purchase price, and such Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to any
Loan Party therefor. For purposes hereof and to the extent permitted by applicable law, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof; the Collateral Agent shall be free to carry out such
sale pursuant to such agreement and no Loan Party shall be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement all Events
of Default shall have been remedied and the Secured Obligations paid in full. As an alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose this
Agreement and to sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. 

5.02 Application of Proceeds. The Collateral Agent shall apply the proceeds of any collection or sale of Collateral, including any
Collateral consisting of cash, as follows: 
 FIRST, to the payment of all costs and expenses incurred by the
Collateral Agent in connection with such collection or sale or otherwise in connection with this Agreement, any other Loan Document or any of the Secured Obligations, including all court costs and the fees and expenses of its agents and legal
counsel, the repayment of all advances made by the Collateral Agent hereunder or under any other Loan Document on behalf of any Loan Party and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or
under any other Loan Document; 
 SECOND, to the payment in full of the Secured Obligations (the amounts so
applied to be distributed among the Secured Parties pro rata in accordance with the 

  
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amounts of the Secured Obligations owed to them on the date of any such distribution); and 
 THIRD, to the Loan Parties, their successors or assigns, or as a court of competent jurisdiction may otherwise direct. 
 The Collateral Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the Collateral
Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral
so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof. 

5.03 Grant of License to Use Intellectual Property. For the purpose of enabling the Collateral Agent to exercise rights and
remedies under this Agreement at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies after the occurrence and during the continuance of an Event of Default, each Loan Party hereby grants to the
Collateral Agent an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to the Loan Parties) to use, license or sublicense (other than in violation of any then-existing licensing arrangements) any of the
Article 9 Collateral consisting of Intellectual Property now owned or hereafter acquired by such Loan Party, and wherever the same may be located, and including in such license reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer software and programs used for the compilation or printout thereof. The use of such license by the Collateral Agent may be exercised, at the option of the Collateral Agent, upon the occurrence and during the
continuation of an Event of Default, and any gain or proceeds of such use shall be applied in accordance with the provisions of Section 5.02; provided that any license, sublicense or other transaction entered into by the Collateral Agent
in accordance herewith shall be binding upon the Loan Parties notwithstanding any subsequent cure of any such Event of Default. 

5.04 Securities Act. In view of the position of the Loan Parties in relation to the Pledged Collateral, or because of other
current or future circumstances, a question may arise under the Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter enacted analogous in purpose or effect (such Act and any such similar statute as from time to
time in effect being called the “Federal Securities Laws”) with respect to any disposition of the Pledged Collateral permitted hereunder. Each Loan Party understands that compliance with the Federal Securities Laws might very
strictly limit the course of conduct of the Collateral Agent if the Collateral Agent were to attempt to dispose of all or any part of the Pledged Collateral, and might also limit the extent to which or the manner in which any subsequent transferee
of any Pledged Collateral could dispose of the same. Similarly, there may be other legal restrictions or limitations affecting the Collateral Agent in any attempt to dispose of all or part of the Pledged Collateral under applicable Blue Sky or other
state securities laws or similar laws analogous in purpose or effect. Each Loan Party recognizes that in light of such restrictions and limitations the Collateral Agent may, with respect to any sale of the Pledged Collateral, limit the purchasers to
those who will agree, among other things, to acquire such Pledged Collateral for their own 

  
 -20-

 
account, for investment, and not with a view to the distribution or resale thereof. Each Loan Party acknowledges and agrees that in light of such restrictions and limitations, the Collateral
Agent, in its sole and absolute discretion (a) may proceed to make such a sale whether or not a registration statement for the purpose of registering such Pledged Collateral or part thereof shall have been filed under the Federal Securities
Laws and (b) may approach and negotiate with a single potential purchaser to effect such sale. Each Loan Party acknowledges and agrees that any such sale might result in prices and other terms less favorable to the seller than if such sale were
a public sale without such restrictions. In the event of any such sale, the Collateral Agent shall incur no responsibility or liability for selling all or any part of the Pledged Collateral at a price that the Collateral Agent, in its sole and
absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might have been realized if the sale were deferred until after registration as aforesaid or if more
than a single purchaser were approached. The provisions of this Section 5.04 will apply notwithstanding the existence of a public or private market upon which the quotations or sales prices may exceed substantially the price at which the
Collateral Agent sells. 
 5.05 Registration. Each Loan Party agrees that, upon the occurrence and during the continuance
of an Event of Default, if for any reason the Collateral Agent desires to sell any of the Pledged Collateral at a public sale, it will, at any time and from time to time, upon the written request of the Collateral Agent, use commercially reasonable
efforts to take or to cause the issuer of such Pledged Collateral to take such action and prepare, distribute and/or file such documents, as are required or advisable in the reasonable opinion of counsel for the Collateral Agent to permit the public
sale of such Pledged Collateral. Each Loan Party further agrees to indemnify, defend and hold harmless the Collateral Agent, each other Secured Party, any underwriter and their respective officers, directors, affiliates and controlling persons from
and against all loss, liability, expenses, costs of counsel (including, without limitation, reasonable fees and expenses to the Collateral Agent of legal counsel), and claims (including the costs of investigation) that they may incur insofar as such
loss, liability, expense or claim arises out of or is based upon any alleged untrue statement of a material fact contained in any prospectus (or any amendment or supplement thereto) or in any notification or offering circular, or arises out of or is
based upon any alleged omission to state a material fact required to be stated therein or necessary to make the statements in any thereof not misleading, except insofar as the same may have been caused by any untrue statement or omission based upon
information furnished in writing to such Loan Party or the issuer of such Pledged Collateral by the Collateral Agent or any other Secured Party expressly for use therein. Each Loan Party further agrees, upon such written request referred to above,
to use commercially reasonable efforts to qualify, file or register, or cause the issuer of such Pledged Collateral to qualify, file or register, any of the Pledged Collateral under the Blue Sky or other securities laws of such states as may be
requested by the Collateral Agent and keep effective, or cause to be kept effective, all such qualifications, filings or registrations. Each Loan Party will bear all costs and expenses of carrying out its obligations under this Section 5.05.
Each Loan Party acknowledges that there is no adequate remedy at law for failure by it to comply with the provisions of this Section 5.05 and that such failure would not be adequately compensable in damages, and therefore agrees that its
agreements contained in this Section 5.05 may be specifically enforced. 

  
 -21-

 ARTICLE VI 
 Indemnity, Subrogation and Subordination 
 6.01 Indemnity and
Subrogation. In addition to all such rights of indemnity and subrogation as the Subsidiary Loan Parties may have under applicable law (but subject to Section 6.03), the Borrower agrees that (a) in the event a payment of an obligation
shall be made by any Subsidiary Loan Party under this Agreement, the Borrower shall indemnify such Subsidiary Loan Party for the full amount of such payment and such Subsidiary Loan Party shall be subrogated to the rights of the Person to whom such
payment shall have been made to the extent of such payment and (b) in the event any assets of any Subsidiary Loan Party shall be sold pursuant to this Agreement or any other Loan Document to satisfy in whole or in part an obligation owed to any
Secured Party, the Borrower shall indemnify such Subsidiary Loan Party in an amount equal to the greater of the book value or the fair market value of the assets so sold. 
 6.02 Contribution and Subrogation. Each Subsidiary Loan Party (a “Contributing Party”) agrees (subject to Section 6.03) that, in the event a payment shall be made by any other
Subsidiary Loan Party hereunder in respect of any Secured Obligation or assets of any other Subsidiary Loan Party shall be sold pursuant to any Loan Document to satisfy any Secured Obligation and such other Subsidiary Loan Party (the
“Claiming Party”) shall not have been fully indemnified by the Borrower as provided in Section 6.01, the Contributing Party shall indemnify the Claiming Party in an amount equal to the amount of such payment or the greater of
the book value or the fair market value of such assets, as the case may be, in each case multiplied by a fraction of which the numerator shall be the net worth of the Contributing Party on the date hereof and the denominator shall be the aggregate
net worth of all the Subsidiary Loan Parties on the date hereof (or, in the case of any Subsidiary Loan Party or Subsidiary Loan Party becoming a party hereto pursuant to Section 7.13, the date of the supplement hereto executed and delivered by
such Subsidiary Loan Party). Any Contributing Party making any payment to a Claiming Party pursuant to this Section 6.02 shall be subrogated to the rights of such Claiming Party under Section 6.01 to the extent of such payment. 

6.03 Subordination. Notwithstanding any provision of this Agreement to the contrary, all rights of the Subsidiary Loan Parties
under Sections 6.01 and 6.02 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the payment in full in cash of the Secured Obligations (and shall continue to be
subordinated if at any time payment of any Secured Obligation, or any part thereof, is rescinded or must otherwise be restored by the Collateral Agent or any other Secured Party upon the bankruptcy or reorganization of the Borrower, any other Loan
Party or otherwise). No failure on the part of the Borrower or any Subsidiary Loan Party or Loan Party to make the payments required by Sections 6.01 and 6.02 (or any other payments required under applicable law or otherwise) shall in any respect
limit the obligations and liabilities of any Subsidiary Loan Party with respect to its obligations hereunder, and each Subsidiary Loan Party shall remain liable for the full amount of the obligations of such Subsidiary Loan Party hereunder.

  
 -22-

 ARTICLE VII 
 Miscellaneous 
 7.01 Notices. All communications and notices
hereunder shall (except as otherwise expressly permitted herein) be in writing and given as provided in Section 9.01 of the Credit Agreement. All communications and notices hereunder to any Subsidiary Loan Party shall be given to it in care of
the Borrower as provided in Section 9.01 of the Credit Agreement. 
 7.02 Waivers; Amendment. 

(a) No failure or delay by the Administrative Agent, the Collateral Agent, any Issuing Bank or any Secured Party in exercising any right
or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any
other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Collateral Agent, the Issuing Banks and the Secured Parties hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section 7.02, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan
or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, the Collateral Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time.
No notice or demand on any Loan Party in any case shall entitle any Loan Party to any other or further notice or demand in similar or other circumstances. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Collateral Agent and the Loan Party or
Loan Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 9.02 of the Credit Agreement. 

7.03 Collateral Agent’s Fees and Expenses; Indemnification. 

(a) The parties hereto agree that the Collateral Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided
in Section 9.03 of the Credit Agreement. 
 (b) Without limitation of its indemnification obligations under the other Loan
Documents, each Loan Party jointly and severally agrees to indemnify the Collateral Agent and the other Indemnitees (as defined in Section 9.03(b) of the Credit Agreement) against, and hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related expenses, including the reasonable fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with or

  
 -23-

 
as a result of (i) the arrangement and the syndication of the credit facilities provided for in the Credit Agreement, the preparation, execution, delivery and administration of the
Commitment Letter, the Loan Documents or any other agreement or instrument contemplated thereby, the performance by the parties to the Loan Documents of their respective obligations thereunder or the consummation of the Transactions or any other
transactions contemplated thereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by any Issuing Bank to honor a demand for payment under a Letter of Credit so issued if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property currently or formerly owned or operated by the Borrower
or any of the Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of the Subsidiaries or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether
based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto and whether such matter is initiated by a third party or by any Loan Party or any Affiliate thereof; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence, bad faith or willful misconduct of such Indemnitee or from the breach by such Indemnitee of its obligations under the Loan Documents. 
 (c) To the extent permitted by applicable law, no Loan Party shall assert, and hereby waives, any claim against any Indemnitee, (i) for any damages arising from the use by others of information or
other materials obtained through electronic telecommunications or other information transmission systems (including the internet), except for damages due to willful misconduct, bad faith or gross negligence of such Indemnitee (it being understood
that this clause (i) is not intended to exculpate any knowing and intentional breach of any confidentiality agreement), or (ii) on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this Agreement, the Commitment Letter, the Credit Agreement or any agreement or instrument contemplated thereby, the Transactions, any Loan or Letter of Credit or the use of the
proceeds thereof. 
 (d) Any such amounts payable as provided hereunder shall be additional Secured Obligations secured hereby
and by the other Security Documents. The provisions of this Section 7.03 shall remain operative and in full force and effect regardless of the termination of this Agreement or any other Loan Document, the consummation of the transactions
contemplated hereby, the repayment of any of the Secured Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on behalf of the Collateral Agent or any
other Secured Party. All amounts due under this Section 7.03 shall be payable not later than 10 days after written demand therefor. 
 7.04 Successors and Assigns. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and
all covenants, promises and agreements by or on behalf of any Loan Party or the Collateral Agent that are contained in this Agreement shall bind and inure to the benefit of their respective successors and assigns. 

  
 -24-

 7.05 Survival of Agreement; Reinstatement. All covenants, agreements, representations
and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon
by the Lenders and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any Lender or on its behalf and notwithstanding that the
Administrative Agent, the Collateral Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Credit Agreement, and shall continue in
full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under any Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have
not expired or terminated. Each of the Loan Parties agrees that its obligations hereunder and the security interest created hereunder shall continue to be effective or be reinstated, as applicable, if at any time payment, or any part thereof, of all
or any part of the Secured Obligations is rescinded or must otherwise be restored by the Secured Party upon the bankruptcy or reorganization of any Loan Party or otherwise. 
 7.06 Counterparts; Effectiveness; Several Agreement. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an
original but all of which when taken together shall constitute a single contract. Delivery of an executed signature page to this Agreement by facsimile or electronic transmission shall be as effective as delivery of a manually executed counterpart
of this Agreement. This Agreement shall become effective as to any Loan Party when a counterpart hereof executed on behalf of such Loan Party shall have been delivered to the Collateral Agent and a counterpart hereof shall have been executed and
delivered on behalf of the Collateral Agent, and thereafter shall be binding upon such Loan Party and the Collateral Agent and their respective successors and assigns, and shall inure to the benefit of such Loan Party, the Collateral Agent and the
other Secured Parties and their respective permitted successors and assigns, except that no Loan Party shall have the right to assign or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any such
assignment or transfer shall be void) except as expressly contemplated by this Agreement or the Credit Agreement. This Agreement shall be construed as a separate agreement with respect to each Loan Party and may be amended, modified, supplemented,
waived or released with respect to any Loan Party without the approval of any other Loan Party and without affecting the obligations of any other Loan Party hereunder. 
 7.07 Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction. 
 7.08 Right of Set-Off. If an Event of Default shall have occurred and be continuing, each Lender and
each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other
obligations at any time owing by such Lender or Affiliate to or for the credit or the account of any Loan Party against any of and 

  
 -25-

 
all the obligations then due of any Loan Party now or hereafter existing under this Agreement or any other Loan Document owed to such Lender, irrespective of whether or not such Lender shall have
made any demand under this Agreement. The rights of each Lender under this Section 7.08 are in addition to other rights and remedies (including other rights of set-off) which such Lender may have. 

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

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

(b) Each of the Loan Parties hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of
or relating to this Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may
be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Subject to Section 9.17 of the Credit Agreement, nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, the
Collateral Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Loan Party or its properties in the courts of any jurisdiction. 

(c) Each of the Loan Parties hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so,
any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this
Section 7.09. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

(d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 7.01.
Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
 7.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR 

  
 -26-

 
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 BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.10. 
 7.11 Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or
to be taken into consideration in interpreting, this Agreement. 
 7.12 Termination or Release. 

(a) This Agreement, the Guarantees made herein, the Security Interest and all other security interests granted hereby shall terminate in
their entirety when all the Obligations (other than Contingent Obligations) have been paid in full and the Lenders have no further commitment to lend under the Credit Agreement, the Issuing Banks have no further obligation to issue Letters of
Credit, the LC Exposure has been reduced to zero or, with the consent of each affected Issuing Bank, cash collateralized pursuant to arrangements satisfactory to such Issuing Bank (which arrangements result in the release of the Lenders from their
obligation to make payments in respect of LC Disbursements). 
 (b) A Subsidiary Loan Party shall automatically be released from
its obligations hereunder and any security interest granted by such Subsidiary Loan Party (or in the Equity Interests of such Subsidiary Loan Party) hereunder shall be automatically released upon the consummation of any transaction permitted by the
Credit Agreement as a result of which such Subsidiary Loan Party ceases to be a Subsidiary of the Borrower; provided that the Required Lenders shall have consented to such transaction (to the extent required by the Credit Agreement) and the
terms of such consent did not provide otherwise. 
 (c) Upon any sale or other transfer by any Loan Party of any Collateral that
is permitted under the Credit Agreement (other than to a Loan Party), or upon the effectiveness of any written consent to the release of the security interest granted hereby in any Collateral pursuant to Section 9.02 of the Credit Agreement,
the security interest in such Collateral shall be automatically released. 
 (d) In connection with any termination or release
pursuant to paragraph (a), (b) or (c) of this Section 7.12, the Collateral Agent shall promptly execute and deliver to any Loan Party, at such Loan Party’s expense, all documents that such Loan Party shall reasonably request to
evidence such termination or release subject to the Collateral Agent’s receipt of a certification by the Borrower and applicable Loan Party stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents
and as to such other matters as the Collateral Agent may reasonably request. Any execution and delivery of documents pursuant to this Section 7.12 shall be without recourse to or warranty by the Collateral Agent. 

7.13 Additional Subsidiaries. The Loan Parties shall cause each Subsidiary of the Borrower which, from time to time, after the
date hereof shall be required to pledge any assets to 

  
 -27-

 
the Collateral Agent for the benefit of the Secured Parties pursuant to the provisions of the Credit Agreement, to execute and deliver to the Collateral Agent and instrument in the form of
Exhibit I hereto and a Perfection Certificate, in each case, within 90 days of the date on which it was acquired or created. Upon execution and delivery by the Collateral Agent and a Subsidiary of an instrument in the form of Exhibit I hereto, such
Subsidiary shall become a party hereto (and a guarantor and grantor hereunder) with the same force and effect as if it were a party hereto (and a guarantor and grantor hereunder) on the date hereof. The execution and delivery of any such instrument
shall not require the consent of any other Loan Party hereunder. The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary as a party to this Agreement.

 7.14 Collateral Agent Appointed Attorney-in-Fact. Each Loan Party hereby appoints the Collateral Agent the
attorney-in-fact of such Loan Party, which appointment is irrevocable and coupled with an interest, upon the occurrence and during the continuance of an Event of Default, with full power of substitution either in the Collateral Agent’s name or
in the name of such Loan Party, (a) to receive, endorse, assign and/or deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the Collateral or any part thereof; (b) to demand,
collect, receive payment of, give receipt for and give discharges and releases of all or any of the Collateral; (c) to sign the name of any Loan Party on any invoice or bill of lading relating to any of the Collateral; (d) to send
verifications of accounts receivable to any Account Debtor; (e) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise realize on all or any of the
Collateral or to enforce any rights in respect of any Collateral; (f) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any of the Collateral; (g) to notify, or to require any Loan Party
to notify, any Account Debtor to make payment directly to the Collateral Agent; and (h) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and
things necessary to carry out the purposes of this Agreement, as fully and completely as though the Collateral Agent were the absolute owner of the Collateral for all purposes; provided that nothing herein contained shall be construed as
requiring or obligating the Collateral Agent to make any commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Collateral Agent, or to present or file any claim or notice, or to take any action with respect
to the Collateral or any part thereof or the moneys due or to become due in respect thereof or any property covered thereby. The Collateral Agent and the other Secured Parties shall be accountable only for amounts actually received as a result of
the exercise of the powers granted to them herein (if any), and neither they nor their officers, directors, employees or agents shall be responsible to any Loan Party for any act or failure to act hereunder, except for their own gross negligence,
willful misconduct or bad faith. 

  
 -28-

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written. 
  

					
	PHARMERICA CORPORATION
		
	By:	 	 /s/ Michael J. Culotta

		 	Name:	 	Michael J. Culotta
		 	Title:	 	Executive Vice President and Chief Financial Officer
	
	 CITIBANK, N.A.,
 as
the Collateral Agent

		
	By:	 	  

		 	Name:
		 	Title:

 [Signature page
to Pharmerica Corporation Guarantee and Collateral Agreement] 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written. 
  

			
	PHARMERICA CORPORATION,
		
	By:	 	  

		 	Name:
		 	Title:
	
	 CITIBANK, N.A.,
 as
the Collateral Agent

		
	By:	 	 /s/ Justin S. Tichauer

		 	Name: Justin S. Tichauer
		 	Title:   Vice President

[Signature page to Pharmerica Corporation Guarantee and Collateral Agreement] 

 
			
	 ADVANCED INFUSION SYSTEMS LLC
 ARK PHARMACY SERVICES, LLC
 CAPSTONE PHARMACY OF DELAWARE, LLC

CHEMRX PHARMACY SERVICES, LLC
 CLINICARE CONCEPTS
INC.
 COMPUTRAN SYSTEMS INC.

CONTINUUMCARE PHARMACY LLC
 FAMILY CENTER
PHARMACY, LLC
 GOOT NURSING HOME PHARMACY INC
 INSTA-CARE PHARMACY SERVICES CORPORATION
 INTEGRITY MEDICAL SUPPLIES, LLC

INTEGRITY PHARMACY SERVICES, LLC
 LS ACQUISITION
COMPANY I, LLC
 LS ACQUISITION COMPANY II, LLC
 PHARMACY CORPORATION OF AMERICA
 PHARMERICA CHICAGO, LLC

PHARMERICA DRUG SYSTEMS, LLC
 PHARMERICA EAST,
LLC
 PHARMERICA HOLDINGS, INC.

PHARMERICA INSTITUTIONAL PHARMACY SERVICES, LLC

PHARMERICA LONG-TERM CARE LLC
 PHARMERICA
MIDWEST, LLC
 PHARMERICA MOUNTAIN, LLC

PHARMERICA PENNSYLVANIA, LLC
 PHARMERICA
TECHNOLOGY SOLUTIONS LLC
 PHARMERICA WISCONSIN, LLC
 PMC HEALTHCARE PHARMACIES, LLC
 PMC PHARMACY SERVICES, LLC

SOUTHWEST PHARMACIES, INC.

		
	By:	 	 /s/ Michael J. Culotta

	Name:	 	Michael J. Culotta
	Title:	 	Treasurer

 [Signature page to
Pharmerica Corporation Guarantee and Collateral Agreement] 

 
					
	PHARMERICA HOSPITAL PHARMACY SERVICES, LLC
		
	By:	 	 /s/ Berard Tomassetti

	Name:	 	Berard Tomassetti
	Title:	 	Treasurer
	
	LONE STAR PHARMACY, LTD
		
	By:	 	 LS Acquisition Company II, LLC,
 its General Partner

		
		 	 /s/ Thomas A. Caneris

		 	Name:	 	Thomas A. Caneris
		 	Title:	 	Vice President
	
	PHARMASTAT TRANSPORT, LTD
		
	By:	 	 LS Acquisition Company I, LLC,
 its General Partner

		
		 	 /s/ Thomas A. Caneris

		 	Name:	 	Thomas A. Caneris
		 	Title:	 	Vice President

 [Signature page to
Pharmerica Corporation Guarantee and Collateral Agreement] 

 SCHEDULE I 

Subsidiary Loan Parties 
  

					
	 Advanced Infusion Systems LLC
	  	 	CA	  
	 Ark Pharmacy Services, LLC
	  	 	DE	  
	 Capstone Pharmacy of Delaware, LLC
	  	 	DE	  
	 ChemRx Pharmacy Services, LLC
	  	 	DE	  
	 Clinicare Concepts Inc.
	  	 	FL	  
	 Computran Systems Inc.
	  	 	OR	  
	 ContinuumCare Pharmacy LLC
	  	 	DE	  
	 Family Center Pharmacy, LLC
	  	 	DE	  
	 Goot Nursing Home Pharmacy Inc
	  	 	AZ	  
	 Insta-Care Pharmacy Services Corporation
	  	 	TX	  
	 Integrity Medical Supplies, LLC
	  	 	FL	  
	 Integrity Pharmacy Services, LLC
	  	 	FL	  
	 Lone Star Pharmacy, LTD
	  	 	TX	  
	 LS Acquisition Company I, LLC
	  	 	DE	  
	 LS Acquisition Company II, LLC
	  	 	DE	  
	 Pharmacy Corporation of America
	  	 	CA	  
	 Pharmastat Transport, LTD
	  	 	TX	  
	 PharMerica Chicago, LLC
	  	 	DE	  
	 PharMerica Drug Systems, LLC
	  	 	DE	  
	 PharMerica East, LLC
	  	 	DE	  
	 PharMerica Holdings, Inc.
	  	 	DE	  
	 PharMerica Hospital Pharmacy Services, LLC
	  	 	DE	  
	 PharMerica Institutional Pharmacy Services, LLC
	  	 	DE	  
	 PharMerica Long-Term Care LLC
	  	 	DE	  
	 PharMerica Midwest, LLC
	  	 	DE	  
	 PharMerica Mountain, LLC
	  	 	DE	  
	 PharMerica Pennsylvania, LLC
	  	 	DE	  
	 PharMerica Technology Solutions LLC
	  	 	DE	  
	 PharMerica Wisconsin, LLC
	  	 	DE	  
	 PMC Healthcare Pharmacies, LLC
	  	 	DE	  
	 PMC Pharmacy Services, LLC
	  	 	DE	  
	 Southwest Pharmacies, Inc.
	  	 	AZ	  

 SCHEDULE II 

Specified Pledged Equity Interests 
  

									
	 Issuer
	  	 Number of
Certificate
	  	 Registered Owner
	  	 Number of

Shares
	  	 Percentage of

Equity Interests

	 Advanced Infusion Systems LLC
	  	N/A	  	PMC Pharmacy Services, LLC	  	N/A	  	100%
	 Ark Pharmacy Services, LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 Capstone Pharmacy of Delaware, LLC
	  	N/A	  	PharMerica Drug Systems, LLC	  	N/A	  	100%
	 ChemRx Pharmacy Services, LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 CliniCare Concepts, Inc.
	  	3	  	PharMerica Holdings, Inc.	  	100	  	100%
	 Computran Systems, Inc.
	  	40	  	Pharmacy Corporation of America	  	1,887,320	  	100%
	 ContinuumCare Pharmacy LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 Family Center Pharmacy, LLC
	  	N/A	  	PharMerica Drug Systems, LLC	  	N/A	  	100%
	 Goot Nursing Home Pharmacy, Inc.
	  	2	  	Southwest Pharmacies, Inc.	  	1,000	  	100%
	 Insta-Care Pharmacy Services Corporation
	  	3	  	Pharmacy Corporation of America	  	100	  	100%
	 Integrity Medical Supplies, LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 Integrity Pharmacy Services, LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 LS Acquisition Company I, LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 LS Acquisition Company II, LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 Lone Star Pharmacy, LTD
	  	N/A	  	LS Acquisition Company I, LLC	  	N/A	  	99%
	 Lone Star Pharmacy, LTD
	  	N/A	  	LS Acquisition Company II, LLC	  	N/A	  	1%
	 Pharmacy Corporation of America
	  	2	  	PharMerica Holdings, Inc.	  	1,000	  	100%
	 Pharmastat Transport, LTD
	  	N/A	  	LS Acquisition Company I, LLC	  	N/A	  	100%
	 PharMerica Chicago, LLC
	  	N/A	  	PharMerica Institutional Pharmacy Services, LLC is the sole member	  	N/A	  	100%
	 PharMerica Drug Systems, LLC
	  	N/A	  	Pharmacy Corporation of America is the sole member	  	N/A	  	100%
	 PharMerica East, LLC
	  	N/A	  	PharMerica Institutional Pharmacy Services, LLC is the sole member	  	N/A	  	100%
	 PharMerica Holdings, Inc.
	  	1	  	PharMerica Corporation	  	100	  	100%
	 PharMerica Hospital Pharmacy Services, LLC
	  	N/A	  	PMC Pharmacy Services, LLC is the sole member	  	N/A	  	100%
	 PharMerica Institutional Pharmacy Services, LLC
	  	N/A	  	PMC Pharmacy Services, LLC is the sole member	  	N/A	  	100%

									
	 Issuer
	  	 Number of
Certificate
	  	 Registered Owner
	  	 Number of

Shares
	  	 Percentage of

Equity Interests

	 PharMerica Long-Term Care, LLC
	  	N/A	  	PharMerica Holdings, Inc. is the sole member	  	N/A	  	100%
	 PharMerica Midwest, LLC
	  	N/A	  	PharMerica Institutional Pharmacy Services, LLC is the sole member	  	N/A	  	100%
	 PharMerica Mountain, LLC
	  	N/A	  	PharMerica Institutional Pharmacy Services, LLC is the sole member	  	N/A	  	100%
	 PharMerica Pennsylvania, LLC
	  	N/A	  	PharMerica Institutional Pharmacy Services, LLC is the sole member	  	N/A	  	100%
	 PharMerica Technology Solutions, LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 PharMerica Wisconsin, LLC
	  	N/A	  	PharMerica Institutional Pharmacy Services, LLC is the sole member	  	N/A	  	100%
	 PMC Healthcare Pharmacies, LLC
	  	N/A	  	PharMerica Holdings, Inc. is the sole member	  	N/A	  	100%
	 PMC Pharmacy Services, LLC
	  	N/A	  	Pharmacy Corporation of America	  	N/A	  	100%
	 Southwest Pharmacies, Inc.
	  	3	  	PharMerica Drug Systems. LLC	  	1,000	  	100%

 Specified Pledged
Indebtedness 
  

							
	 Issuer
	  	 Principal Amount
	  	 Date of Note
	  	 Maturity Date

	PharMerica Corporation and subsidiaries (global intercompany note pursuant to Guarantee and Collateral Agreement dated as of May 2, 2011)	  	N/A	  	May 2, 2011	  	N/A

 SCHEDULE III- U.S. Intellectual Property 

U.S. COPYRIGHTS OWNED 
 U.S.
Copyright Registrations 
  

							
	 Company
	  	 Title
	  	 Reg. No.
	  	 Author

		  	 None
	  		  	

 U.S. Copyright Applications 

 

									
	 Company
	  	 Title
	  	 Author
	  	 Class
	  	 Date Filed

		  	 None
	  		  		  	

 U.S. PATENTS OWNED 
 U.S. Patent Registrations 
  

					
	 Company
	  	 Patent Numbers
	  	 Issue Date

		  		  	

 U.S. Patent Applications 
  

					
	 Company
	  	 Patent Application No.
	  	 Filing Date

	 PharMerica Technology Solutions, LLC
	  	10/848,157	  	5/19/04

 U.S. TRADEMARKS 
 U.S. Trademark Registrations 
  

							
	 Company
	  	 Mark
	  	 Reg. Date
	  	 Reg. No.

	PharMerica Corporation	  	 4 Crossed Hands (design)

 

	  	09-05-1989	  	1,554,991
	PharMerica Corporation	  	COMPUTRAN	  	08-18-2009	  	3,668,760
	PharMerica Corporation	  	CONSULTPRO	  	08-11-2009	  	3,666,207
	PharMerica Corporation	  	CONSULTWARE	  	06-09-2009	  	3,635,311
	PharMerica Corporation	  	IT’S MORE THAN JUST FILLING PRESCRIPTIONS, IT’S A FULFILLING CAREER	  	04-11-2006	  	3,079,570
	PharMerica Corporation	  	MEDMATE	  	10-24-2006	  	3,161,289
	PharMerica Corporation	  	 Pill logo (design)

 

	  	07-08-2008	  	3,464,646
	PharMerica Corporation	  	 Pill logo (design)

 

	  	07-14-2009	  	3,656,001
	PharMerica Corporation	  	ONE PRESCRIPTION AT A TIME, ONE PERSON	  	03-07-2006	  	3,066,406
		  	AT A TIME	  		  	
	PharMerica Corporation	  	PHARMACY CORPORATION OF AMERICA	  	03-07-1989	  	1,528,564
	PharMerica Corporation	  	PHARMERICA	  	12-28-1999	  	2,304,597
	PharMerica Corporation	  	 PHARMERICA FORECASTER (plus design)

 

	  	09-05-2006	  	3,139,556
	PharMerica Corporation	  	VALUE. TRUST. PERFORMANCE.	  	07-08-2008	  	3,463,909
	PharMerica Corporation	  	VALUE. TRUST. PERFORMANCE.	  	07-07-2009	  	3,651,627
	PharMerica Corporation	  	VIEWMASTERX	  	07-27-2010	  	3,825,885
	PharMerica Corporation	  	**DESIGN ONLY**	  	09-06-2005	  	2,992,983

							
	Chem RX Pharmacy Services, LLC	  	CHEM RX	  	01-15-2008	  	3368772

 U.S. Trademark Applications

  

							
	 Company
	  	 Mark
	  	 Filing Date
	  	 Application No.

	PharMerica Corporation	  	A PRESCRIPTION FOR LONG-TERM CARE SUCCESS	  	02-04-2011	  	85/234,413
	PharMerica Corporation	  	A PRESCRIPTION FOR SUCCESS	  	02-04-2011	  	85/234,456
	PharMerica Corporation	  	EZ-MAR	  	02-25-2011	  	85/251,946
	PharMerica Corporation	  	EZORDER	  	01-31-2011	  	85/230,378
	PharMerica Corporation	  	RXALLOW	  	01-21-2011	  	85/223,171
	PharMerica Corporation	  	RXEXACT	  	01-10-2011	  	85/213,887
	PharMerica Corporation	  	RXFORECASTER	  	07-15-2010	  	85/085,171
	PharMerica Corporation	  	STAR (STRATEGIC TREND ANALYSIS REPORT)	  	03-01-2011	  	85/254,640
	PharMerica Corporation	  	 PCA PHARMACY CORPORATION OF AMERICA (plus design)

 

	  	01-07-2009	  	77/644,549

 SCHEDULE IV 

Commercial Tort Claims 
 None. 

 Exhibit I to the 
 Guarantee and Collateral Agreement 
 SUPPLEMENT NO.
[    ] dated as of [                    ], to the Guarantee and Collateral Agreement dated as of May 2, 2011 (as amended,
supplemented or otherwise modified from time to time, the “Collateral Agreement”), among PHARMERICA CORPORATION, a Delaware corporation (the “Borrower”), the Subsidiaries of the Borrower from time to time party
thereto and CITIBANK, N.A. (“Citi”), as Collateral Agent. 
 A. Reference is made to
(i) the Credit Agreement dated as of May 2, 2011 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the Lenders party thereto and Citi, as Administrative Agent.

 B. Capitalized terms used herein, not otherwise defined herein and defined in the Credit Agreement or the
Collateral Agreement shall have the meanings specified in the Credit Agreement or the Collateral Agreement, as applicable. 
 C. The Borrower and the Subsidiary Loan Parties have entered into the Collateral Agreement in order to induce the Lenders to make Loans and the Issuing Banks to issue Letters of Credit. Section 7.13
of the Collateral Agreement provides that additional Subsidiaries of the Borrower may become parties to the Collateral Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the “New
Subsidiary”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a party to the Collateral Agreement in order to induce the Lenders to make additional Loans and the Issuing Banks to issue
additional Letters of Credit and as consideration for Loans previously made and Letters of Credit previously issued. 
 Accordingly, the Collateral Agent and the New Subsidiary agree as follows: 
 SECTION 1. In accordance with Section 7.13 of the Collateral Agreement, the New Subsidiary by its signature below becomes a party to the Collateral Agreement as a “Subsidiary Loan Party”
and a guarantor and grantor thereunder, with the same force and effect as if originally named therein as such, and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Collateral Agreement applicable to it as a Subsidiary
Loan Party thereunder and (b) represents and warrants that the representations and warranties made by it in such capacity thereunder are true and correct in all material respects on and as of the date hereof. In furtherance of the foregoing,
the New Subsidiary, as security for the payment or performance, as the case may be, in full of the Secured Obligations does hereby assign and pledge to the Collateral Agent, its successors and permitted assigns, for the benefit of the Secured
Parties, and does hereby grant to the Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, a security interest in, all of the New Subsidiary’s right, title and interest in, to and under the Collateral
(as defined in the Collateral Agreement) of the New Subsidiary. Each reference to a “Subsidiary Loan Party” in the Collateral Agreement shall be deemed to include the New Subsidiary. The Collateral Agreement is hereby incorporated herein
by reference. 

 SECTION 2. The New Subsidiary represents and warrants to the Collateral
Agent and the 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, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other laws affecting creditors’ rights generally, concepts of reasonableness and general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

SECTION 3. This Supplement may be executed in counterparts (and by different parties hereto on different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Collateral Agent shall have received a counterpart of this Supplement that bears the
signature of the New Subsidiary and the Collateral Agent has executed a counterpart hereof. Delivery of an executed signature page to this Supplement by facsimile shall be as effective as delivery of a manually executed counterpart of this
Supplement. 
 SECTION 4. The New Subsidiary hereby represents and warrants that (a) set forth on Schedule
II attached hereto is a true and correct list, as of the date hereof, of all the Specified Pledged Securities of the New Subsidiary, (b) set forth on Schedule III attached hereto is a true and correct list, as of the date hereof, of all United
States registered Patents, United States registered Trademarks and United States registered Copyrights (and applications for any of the foregoing) of the New Subsidiary, including (i) the name of the registered owner, type, registration or
application number and the expiration date (if already registered) of each such Patent and Patent application owned by such New Subsidiary, (ii) the name of the registered owner, the registration or application number and the expiration date
(if already registered) of each such Trademark and Trademark application owned by such New Subsidiary and (iii) the name of the registered owner, title and, if applicable, the registration number of each such Copyright or Copyright application
owned by such New Subsidiary, (c) set forth on Schedule IV attached hereto is a true and correct list and a specific description, as of the date hereof, of each Commercial Tort Claim in respect of which a complaint or a counterclaim has been
filed by the New Subsidiary seeking damages in an amount of $5,000,000 or more and (d) set forth under its signature hereto, is the true and correct legal name of the New Subsidiary, its jurisdiction of organization, the organizational
identification number, if any, issued by its jurisdiction of organization and the location of its chief executive office, in each case as of the date hereof. 
 SECTION 5. Except as expressly supplemented hereby, the Collateral Agreement shall remain in full force and effect. 

SECTION 6. THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 SECTION 7. Any provision of this Supplement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a
particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

  
 -2-

 SECTION 8. All communications and notices hereunder shall be in writing and
given as provided in Section 7.01 of the Collateral Agreement. 
 SECTION 9. The New Subsidiary agrees to
reimburse the Collateral Agent for its reasonable and documented out-of-pocket expenses in connection with this Supplement, including the reasonable and documented fees, disbursements and other charges of counsel for the Collateral Agent.

  
 -3-

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

					
	[NAME OF NEW SUBSIDIARY],
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	 Legal Name:
 Jurisdiction of Organization:
 Organizational ID Number:

Location of Chief Executive office:

	
	 CITIBANK, N.A.,
 as
Collateral Agent,

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 EXHIBIT II 
 PATENT AND TRADEMARK SECURITY AGREEMENT dated as of [            ], 2011 (this “Agreement”), among PharMerica Corporation (the
“Borrower”), the Subsidiaries party hereto (the “Subsidiary Loan Parties” and, collectively with the Borrower, the “Loan Parties”) and CITIBANK, N.A. (“Citi”), as Collateral Agent.

 Reference is made to (a) the Credit Agreement dated as of May 2, 2011 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the Borrower, the Lenders from time to time party thereto, Citi, as Administrative Agent, and the other parties thereto, and (b) the Guarantee and Collateral Agreement
dated as of. May 2, 2011 (as amended, supplemented or otherwise modified from time to time, the “Collateral Agreement”), among the Borrower, the Subsidiaries of the Borrower party thereto and Citi, as Collateral Agent (the
“Collateral Agent”). The Lenders have agreed to extend credit to the Borrower and the Issuing Banks have agreed to issue Letters of Credit, in each case, subject to the terms and conditions set forth in the Credit Agreement. The
obligations of the Lenders to extend such credit and of the Issuing Banks to issue such Letters of Credit are conditioned upon, among other things, the execution and delivery of this Agreement. The Subsidiary Loan Parties will derive substantial
benefits from the extensions of credit and the issuance of Letters of Credit to the Borrower pursuant to the Credit Agreement and are willing to execute and deliver this Agreement in order to induce the Lenders to extend such credit and the Issuing
Banks to issue such Letters of Credit. Accordingly, the parties hereto agree as follows: 
 SECTION 1. Terms. Capitalized
terms used in this Agreement and not otherwise defined herein have the meanings specified in the Collateral Agreement. The rules of construction specified in Section 1.03 of the Credit Agreement also apply to this Agreement. 

SECTION 2. Grant of Security Interest. As security for the payment or performance, as the case may be, in full of the Secured
Obligations, each of the Loan Parties, pursuant to the Collateral Agreement, did and hereby does assign and pledge to the Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, and did and hereby does grant
to the Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, a security interest in, all right, title and interest in, to and under any and all of the following assets and properties now owned or at any time
hereafter acquired by such Loan Party or in which such Loan Party now has or at any time in the future may acquire any right, title or interest (collectively, the “Patent and Trademark Collateral”): 

(a) all letters patent of the United States, all registrations and recordings thereof, and all applications for letters
patent of the United States, including registrations, recordings and pending applications in the United States Patent and Trademark Office, including those registered Patents (as defined in the Collateral Agreement) and Patent applications listed on
Schedule I (the “Patents”); 
 (b) 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; 

(c) all trademarks, service marks, trade names, corporate names, company names, business names, fictitious business
names, trade styles, trade dress, logos, other source or business identifiers, designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all registration and
recording 

 
applications filed in connection therewith, and all extensions or renewals thereof, including registrations and registration applications in the United States Patent and Trademark Office or any
similar offices in any State of the United States, and all extensions, or renewals thereof, including those United States registered Trademarks (as defined in the Collateral Agreement) and Trademark applications listed on Schedule II (the
“Trademarks”); and 
 (d) all goodwill associated with the Trademarks or symbolized thereby. 

SECTION 3. Collateral Agreement. The security interests granted to the Collateral Agent herein are granted in furtherance, and not
in limitation of, the security interests granted to the Collateral Agent pursuant to the Collateral Agreement. Each Loan Party hereby acknowledges and affirms that the rights and remedies of the Collateral Agent with respect to the Patent and
Trademark Collateral are more fully set forth in the Collateral Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein. In the event of any conflict between the terms of this Agreement
and the Collateral Agreement, the terms of the Collateral Agreement shall govern. 
 SECTION 4. Governing Law. This
Agreement shall be construed in accordance with and governed by the law of the State of New York. 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Patent and
Trademark Security Agreement as of the day and year first above written. 
  

			
	PHARMERICA CORPORATION,
		
	By:	 	  

		 	Name:
		 	Title:
	
	 PHARMERICA TECHNOLOGY SOLUTIONS, LLC,

	CHEM RX PHARMACY SERVICES, LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	CITIBANK, N.A., as Collateral Agent,
		
	By:	 	  

		 	Name:
		 	Title:

 SCHEDULE I 
 U.S. Patent Registrations 
  

					
	 Company
	  	 Patent Numbers
	  	 Issue Date

		  		  	

 U.S. Patent Applications 
  

					
	 Company
	  	 Patent Application No.
	  	 Filing Date

		  		  	

 SCHEDULE II 
 U.S. Trademark Registrations 
  

							
	 Company
	  	 Mark
	  	 Reg. Date
	  	 Reg. No.

		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 U.S. Trademark Applications 

 

							
	 Company
	  	 Mark
	  	 Filing Date
	  	 Application No.

		  		  		  	
		  		  		  	
		  		  		  	

 EXHIBIT III 
 Exhibit III to the 
 Guarantee and Collateral Agreement 

[FORM OF] COPYRIGHT SECURITY AGREEMENT dated as of
[                    ], 2011 (this “Agreement”), among PharMerica Corporation (the “Borrower”), the Subsidiaries of
the Borrower party hereto (the “Subsidiary Loan Parties” and, collectively with the Borrower, the “Loan Parties”) and CITIBANK, N.A. (“Citi”), as Collateral Agent. 

Reference is made to (a) the Credit Agreement dated as of May 2, 2011 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the Borrower, the Lenders from time to time party thereto and Citi, as Administrative Agent, and (b) the Guarantee and Collateral Agreement dated as of May 2, 2011
(as amended, supplemented or otherwise modified from time to time, the “Collateral Agreement”), among the Borrower, the Subsidiaries of the Borrower party thereto and Citi, as Collateral Agent (the “Collateral
Agent”). The Lenders have agreed to extend credit to the Borrower and the Issuing Banks have agreed to issue Letters of Credit, in each case, subject to the terms and conditions set forth in the Credit Agreement. The obligations of the
Lenders to extend such credit and of the Issuing Banks to issue such Letters of Credit are conditioned upon, among other things, the execution and delivery of this Agreement. The Subsidiary Loan Parties will derive substantial benefits from the
extensions of credit and the issuance of Letters of Credit to the Borrower pursuant to the Credit Agreement and are willing to execute and deliver this Agreement in order to induce the Lenders to extend such credit and the Issuing Banks to issue
such Letters of Credit. Accordingly, the parties hereto agree as follows: 
 SECTION 1. Terms.
Capitalized terms used in this Agreement and not otherwise defined herein have the meanings specified in the Collateral Agreement. The rules of construction specified in Section 1.03 of the Credit Agreement also apply to this Agreement.

 SECTION 2. Grant of Security Interest. As security for the payment or performance, as the case may be,
in full of the Secured Obligations, each of the Loan Parties, pursuant to the Collateral Agreement, did and hereby does assign and pledge to the Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, and did
and hereby does grant to the Collateral Agent, its successors and permitted assigns, for the benefit of the Secured Parties, a security interest in, all right, title and interest in, to and under any and all of the following assets and properties
now owned or at any time hereafter acquired by such Loan Party or in which such Loan Party now has or at any time in the future may acquire any right, title or interest (collectively, the “Copyright Collateral”): 

(a) all copyright rights in any work subject to the copyright laws of the United States, whether as
author, assignee, transferee or otherwise; and 
 (b) all registrations and applications for
registration of any such copyright in the United States, including registrations, recordings, supplemental registrations and pending applications for registration in the United States Copyright

 
Office, including those registered Copyrights (as defined in the Collateral Agreement) and Copyright applications listed on Schedule I. 

SECTION 3. Collateral Agreement., The security interests granted to the Collateral Agent herein are granted in
furtherance, and not in limitation of, the security interests granted to the Collateral Agent pursuant to the Collateral Agreement. Each Loan Party hereby acknowledges and affirms that the rights and remedies of the Collateral Agent with respect to
the Copyright Collateral are more fully set forth in the Collateral Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein. In the event of any conflict between the terms of this
Agreement and the Collateral Agreement, the terms of the Collateral Agreement shall govern. 
 SECTION 4.
Governing Law. This Agreement shall be construed in accordance with and governed by the law of the State of New York. 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Copyright
Security Agreement as of the day and year first above written. 
  

			
	PHARMERICA CORPORATION,
		
	By:	 	  

		 	Name:
		 	Title:
	
	[SUBSIDIARY LOAN PARTIES],
		
	By:	 	  

		 	Name:
		 	Title:
	
	CITIBANK, N.A., as Collateral Agent,
		
	By:	 	  

		 	Name:
		 	Title:

 SCHEDULE I 
 United States Registered Copyrights 
 Copyright ApplicationsSummary of 2011 CEO Short-Term Incentive Program

 Exhibit 10.43 
 PHARMERICA CORPORATION 
 SUMMARY OF 

2011 SHORT-TERM INCENTIVE PROGRAM – CEO 
 AND 
 2011 SHORT-TERM INCENTIVE PROGRAM 

2011 Short-Term Incentive Program – CEO 
 On March 25, 2011, the Board of Directors of PharMerica Corporation (the “Corporation”), upon recommendation of the Compensation Committee, adopted the 2011 Short-Term Incentive Program
(the “CEO STIP”) under the PharMerica Corporation 2007 Omnibus Incentive Plan, as amended (the “Omnibus Plan”), for the Corporation’s Chief Executive Officer, Mr. Gregory Weishar. The CEO STIP provides for a
performance-based annual cash award to Mr. Weishar. 
 Performance Cycle. The CEO STIP performance cycle is for the
current year, beginning on January 1, 2011 and ending on December 31, 2011. 
 Maximum Award. If the
Corporation’s Adjusted EBITDA (as defined below) is equal to or greater than a target Adjusted EBITDA for the 2011 fiscal year, then Mr. Weishar is eligible to receive a payment under the CEO STIP equal to the lesser of (i) 2% of
Adjusted EBITDA for the 2011 fiscal year; or (ii) $2 million (the “Maximum Award”). The Compensation Committee, in its sole discretion, may decrease the Maximum Award based on its assessment of the Corporation’s performance, the
Chief Executive Officer’s individual performance, or any other factors it considers relevant, however in no event may the Compensation Committee reduce the Maximum Award below the annual bonus amount for the Chief Executive Officer (the
“Bonus Amount”). 
 Bonus Amount. The target Bonus Amount for Mr. Weishar is 125% of 2011 Base Salary. 70%
of the target Bonus Amount is based on the Corporation’s performance and 30% of the target Bonus Amount is based on individual performance goals. The Corporation must at least meet threshold Adjusted EBITDA of 82.0% of the target Adjusted
EBITDA amount in order for any payment to be made under the individual performance-based component. 
 The Corporation’s
performance will be measured by comparing the Corporation’s adjusted annual earnings before interest, taxes, integration, merger and acquisition related costs and other related charges, depreciation and amortization expense, impairment charges
of intangibles, and other accounting principle changes (“Adjusted EBITDA”), to a target Adjusted EBITDA for the entire 2011 fiscal year. Individual performance will be measured by comparing certain individual performance metrics to the
target individual performance metrics determined by the Compensation Committee. 
 The actual Bonus Amount is based on the
percentage of the performance target achieved. Generally, the percentage of the Bonus Amount earned at the end of the performance cycle will be determined according to the following schedule; however the actual Bonus Amount will be interpolated
between the percentages set forth in the chart based on actual results: 
  

			
	 Performance Achievement
	  	 Payout Level

	 < 82.0% of Performance Target
	  	0.0% of Award Target
		
	 82.0% of Performance Target
	  	30.0% of Award Target
		
	 90.0% of Performance Target
	  	61.0% of Award Target
		
	 96.0% of Performance Target
	  	84.3% of Award Target

			
	 100.0% of Performance Target
	  	100.0% of Award Target
		
	 105.0% of Performance Target
	  	123.0% of Award Target
		
	 110.0% of Performance Target
	  	140.3% of Award Target
		
	 115.0% of Performance Target
	  	157.7% of Award Target
		
	 120.0% of Performance Target
	  	175.0% of Award Target
		
	 > 120.0% of Performance Target
	  	175.0% of Award Target

Other. Terms related to payment of awards, vesting and forfeiture, and other terms & provisions are as described below.

 2011 Short-Term Incentive Program – Other Named Executive Officers 

On March 25, 2011, the Board of Directors of the Corporation, upon recommendation of the Compensation Committee, adopted the 2011
Short-Term Incentive Program (the “STIP”) under the Omnibus Plan. The STIP provides for performance-based annual cash awards to the Corporation’s executive officers, and certain other officers and employees of the Corporation. The
STIP advances the Corporation’s commitment to performance-based compensation practices by providing participants an opportunity to earn annual cash bonuses upon achievement of certain pre-established short-term performance objectives.

 Eligibility. Officers and employees of the Corporation may receive STIP cash awards as determined by the Board of
Directors or the Compensation Committee. 
 Performance Cycle. The STIP performance cycle is for the current year,
beginning on January 1, 2011 and ending on December 31, 2011. 
 Award Targets. The amount of the awards under
the STIP are based on individual participant bonus targets. Individual participant bonus targets are established for each participant by the Compensation Committee, in the case of the senior executive officers reporting to the Chief Executive
Officer, and by the Chief Executive Officer, for other participants, based upon a determination of the appropriate bonus target amounts which will enable the Corporation to remain competitive, to retain and recruit top employees, and to align such
employee’s interests with certain strategic initiatives of the Corporation. Individual non-executive participant bonus targets range from 5% to 100% of base salary on December 31, 2011, with targets for the Corporation’s executive
officers between 25% and 125% of base salary. 
 The Compensation Committee established the bonus targets under the STIP for the
Corporation’s fiscal 2010 Named Executive Officers, other than the principal executive officer, as follows: 
  

					
	 Executive
	  	 Title
	  	 Bonus Target

	Michael J. Culotta	  	Executive Vice President & Chief Financial Officer	  	80% of base salary
			
	William Monast	  	Executive Vice President of Sales and Client Management	  	75% of base salary
			
	Robert McKay	  	Senior Vice President of Purchasing and Trade Relations	  	65% of base salary
			
	Thomas Caneris	  	Senior Vice President, General Counsel and Secretary	  	70% of base salary

 Performance
Criteria. The performance criteria under the STIP is divided into a company performance-based component and individual/group performance-based component for different employees. The breakdown for the Named Executive Officers, other than the
Chief Executive Officer, is as set forth in the chart below. The Corporation must at least meet threshold Adjusted EBITDA of 82.0% of target in order for any payment to be made under the individual/group performance-based components of the STIP.

											
	 Executive
	  	 Title
	  	Company
Performance	 	 	Individual/Group
Performance	 
	Michael J. Culotta	  	Executive Vice President & Chief Financial Officer	  	 	70	% 	 	 	30	% 
				
	William Monast	  	Executive Vice President of Sales and Client Management	  	 	70	% 	 	 	30	% 
				
	Robert McKay	  	Senior Vice President of Purchasing and Trade Relations	  	 	50	% 	 	 	50	% 
				
	Thomas Caneris	  	Senior Vice President, General Counsel and Secretary	  	 	50	% 	 	 	50	% 

 Under the STIP, company
performance will be measured by comparing the Corporation’s Adjusted EBITDA, to a target Adjusted EBITDA for the entire 2011 fiscal year. Individual/group performance will be measured by comparing certain individual/group performance metrics to
target individual/group performance metrics established by the Corporation’s Compensation Committee in consultation with the Chief Executive Officer for the Named Executive Officers other than the Chief Executive Officer. 

Award Payouts. Award payout levels are based on the percentage of the performance target achieved. Generally, the percentage of
the award earned at the end of the performance cycle will be determined according to the following schedule; however the actual award payout will be interpolated between the percentages set forth in the chart based on actual results: 

 

			
	 Performance Achievement
	  	 Payout Level

	 < 82.0% of Performance Target
	  	0.0% of Award Target
		
	 82.0% of Performance Target
	  	30.0% of Award Target
		
	 90.0% of Performance Target
	  	61.0% of Award Target
		
	 96.0% of Performance Target
	  	84.3% of Award Target
		
	 100.0% of Performance Target
	  	100.0% of Award Target
		
	 105.0% of Performance Target
	  	123.0% of Award Target
		
	 110.0% of Performance Target
	  	140.3% of Award Target
		
	 115.0% of Performance Target
	  	157.7% of Award Target
		
	 120.0% of Performance Target
	  	175.0% of Award Target
		
	 > 120.0% of Performance Target
	  	175.0% of Award Target

Payment of Awards. Payment of STIP awards will be made in cash. Awards will be paid on a specific date by which the Compensation
Committee reasonably expects that the Corporation’s Adjusted EBITDA for the year on which the award was based will have been reported. The Corporation will make the payment of the STIP awards to participants as soon as administratively
practicable following the date of the award determination, but no later than March 15, 2012. 
 Vesting and
Forfeiture. STIP participants must remain continuously employed full-time by the Corporation until the award payment date in order to be entitled to receive a payout of an STIP award. 

 Other Terms & Provisions. STIP participants are not permitted to transfer
STIP awards, except by will or the laws of descent and distribution. The Corporation is entitled to withhold from any payments of awards under the STIP any and all amounts required to be withheld for federal, state and local withholding taxes. The
Compensation Committee has the discretion to change terms and conditions of STIP awards as it deems necessary to ensure that the STIP awards satisfy all requirements for “performance-based compensation” within the meaning of
Section 162(m)(4)(c) of the Internal Revenue Code.

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