Document:

Prepared by MERRILL CORPORATION

PLEDGE AGREEMENT

 

THIS PLEDGE

AGREEMENT (the "Agreement") dated as of April 3, 2001, is by

and between F.Y.I. INCORPORATED, a Delaware corporation ("Debtor"),

and BANK OF AMERICA, N.A., as Administrative Agent for the "Lenders"

as that term is defined below (the "Secured Party").

 

R E C I T A L S:

 

A.                Debtor entered into that certain

Credit Agreement dated as of April 3, 2001, with the financial institutions

that are parties thereto (each individually a "Lender" and

collectively, the "Lenders") and the Secured Party, as

Administrative Agent for the Lenders (such Agreement as it may be amended or

otherwise modified from time to time herein referred to as the "Credit

Agreement").

 

B.                The execution and delivery of

this Agreement is required by the Credit Agreement as a condition to making

extensions of credit thereunder on and after the Closing Date.

 

NOW, THEREFORE, in

consideration of the premises and for other good and valuable consideration,

the adequacy, receipt and sufficiency of which are hereby acknowledged, and in

order to induce the Administrative Agent and Lenders to enter into the Credit

Agreement, the parties hereto hereby agree as follows:

 

ARTICLE I

 

Definitions

 

Section

1.1.  Definitions.  As

used in this Agreement, the following terms have the following meanings:

 

"Collateral"

has the meaning specified in Section 2.1 of this Agreement.

 

"Obligations"

means as such term is defined in the Credit Agreement, and includes, without

limitation, all present and future indebtedness, liabilities and obligations of

Debtor to the Secured Party and the Lenders under the Credit Agreement and the

other Loan Documents.

 

"Pledged

Shares" means the shares of capital stock or other equity, partnership

or membership interests described on Schedule 1.1 attached hereto or on Schedule

1 to an amendment to this Agreement in the form of Exhibit A hereto.

 

"Proceeds"

means any "proceeds," as such term is defined in Article or

Chapter 9 of the UCC and, in any event, shall include, but not be limited

to, (a) any and all proceeds of any insurance, indemnity, warranty or guaranty

payable to Debtor from time to time with respect to any of the Collateral,

(b) any and all pay­ments (in any form whatsoever) made or due and payable

to Debtor from time to time in connection with any requisition, confiscation,

condemnation, seizure or forfeiture of all or any part of the Collateral by any

Governmental Authority (or any Person acting, or purporting to act, for or on

behalf of any Governmental Authority), and (c) any and all other amounts from

time to time paid or payable under or in connection with any of the Collateral.

 

"UCC" means the Uniform Commercial

Code as in effect in the State of Texas; provided, that if, by

applicable law, the perfection or effect of perfection or non-perfection of the

security interest created hereunder in any Collateral is governed by the

Uniform Commercial Code as in effect on or after the date hereof in any other

jurisdiction, "UCC" means the Uniform Commercial Code as in effect in

such other jurisdiction for purposes of the provisions hereof relating to such

perfection or the effect of perfection or non-perfection.

 

Section

1.2.  Other Definitional Provisions.  Terms used herein that are defined in the Credit Agreement and

are not otherwise defined herein shall have the meanings therefor specified in

the Credit Agreement.  References to

"Sections," "subsections," "Exhibits"

and "Schedules" shall be to Sections, subsections, Exhibits

and Schedules, respectively, of this Agreement unless otherwise specifically provided.  All definitions contained in this Agreement

are equally applicable to the singular and plural forms of the terms

defined.  All references to statutes and

regulations shall include any amendments of the same and any successor statutes

and regulations.  References to

particular sections of the UCC should be read to refer also to parallel

sections of the UCC as enacted in each state or other jurisdiction where any

portion of the Collateral is or may be located.  Terms used herein, which are defined in the UCC, unless otherwise

defined herein or in the Credit Agreement, shall have the meanings determined

in accordance with the UCC.

 

ARTICLE II

 

Security Interest

 

Section

2.1.  Security Interest. 

As collateral security for the prompt payment and performance in full

when due of the Obligations (whether at stated maturity, by acceleration or oth­erwise)

and all obligations, indebtedness and liability of Debtor to Secured Party and

the Lenders arising under the Loan Documents, Debtor hereby pledges and collaterally

assigns to the Secured Party, and grants to the Secured Party a continuing lien

on and security interest in, all of Debtor's right, title and interest in and

to the following, whether now owned or hereafter arising or acquired and

wherever located (collectively, the "Collateral"):

 

(a)           the Pledged Shares and the

certificates representing the Pledged Shares, and all dividends, cash,

instruments and other property from time to time received, receivable or

otherwise distributed or distributable in respect of or in exchange for any or

all of the Pledged Shares;

 

(b)           all additional shares of stock of the

Subsidiaries of Debtor from time to time owned or acquired by Debtor in any

manner, and all dividends, cash, instruments and other property from time to

time received, receivable or otherwise distributed or distributable in respect

of or in exchange for any or all of such shares; and

 

(c)           all products and Proceeds, in cash or

otherwise, of any of the property described in the foregoing clauses (a)

and (b).

 

Section

2.2.  Debtor Remains Liable. 

Notwithstanding any­thing to the contrary contained herein, (a) Debtor

shall remain liable under the documentation included in the Collateral to the

extent set forth therein to perform all of its duties and obligations

thereunder to the same extent as if this Agreement had not been executed, (b)

the exercise by the Secured Party of any of its rights or remedies hereunder

shall not release Debtor from any of its duties or obligations under such

documentation, (c) the Secured Party shall not have any obligation under any of

such documentation ­included in the Collateral by reason of this Agreement, and

(d) the Secured Party shall not be obligated to per­form any of the

obligations of Debtor thereunder or to take any action to collect or enforce

any claim for payment assigned hereunder.

 

ARTICLE III

 

Representations and Warranties

 

To induce the

Secured Party and the Lenders to enter into this Agreement and the Credit

Agreement, Debtor represents and warrants to the Secured Party and the Lenders

that:

 

Section 3.1.  Office Locations; Fictitious Names.  The chief place of business and the chief

executive office of Debtor is located at the place identified on Schedule 3.1.  Schedule 3.1 also sets forth all

other places where Debtor keeps its books and records and all other locations

where Debtor has a place of business. 

Debtor does not do business and has not done business during the past

five years under any trade-name or fictitious business name except as disclosed

on Schedule 3.1.

 

Section 3.2.  Delivery of Collateral.  Except as provided by Section 4.1, as

of the date hereof Debtor has delivered to Secured Party all collateral the

possession of which is necessary to perfect the security interest of Secured

Party therein.  Immediately upon

Debtor's receipt of any Pledged Shares, Debtor shall deliver such Pledged

Shares, endorsed in blank, to Secured Party.

 

ARTICLE IV

 

Covenants

 

Debtor covenants

and agrees with the Secured Party that until the Obligations are paid and performed

in full, all Com­mitments of the Secured Party and the Lenders to Debtor have

expired or have been terminated and no Letter of Credit remains outstanding:

 

Section

4.1.  Further Assurances. 

At any time and from time to time, upon the request of the Secured

Party, and at the sole expense of Debtor, Debtor shall promptly execute and

deliver all such further agreements, documents and instruments and take such

further action as the Secured Party may reasonably deem neces­sary or

appropriate to preserve and perfect its security interest in the Collateral and

carry out the provisions and purposes of this Agreement or to enable the

Secured Party to exercise and enforce its rights and remedies hereunder with

respect to any of the Collateral. 

Without limiting the generality of the forego­ing, Debtor shall, upon

request by the Secured Party, (a) execute and deliver to the Secured Party such

financing statements as the Secured Party may from time to time require;

(b) take such action as the Secured Party may request to permit the

Secured Party to have control over any Collateral; (c) deliver to the Secured

Party all Collateral the possession of which is necessary to perfect the

security interest therein, duly endorsed and/or accompanied by duly executed

instruments of transfer or assignment, all in form and substance satisfactory

to Secured Party; except that, prior to the occurrence of an Event of

Default and when the same shall no longer be continuing, Debtor may:

 

(i)                retain

any letters of credit received in the ordinary course of business, and

 

(ii)                retain and utilize in the

ordinary course of business all dividends and interest paid in respect to any

of the Pledged Shares or any other Collateral;

 

and (d) execute and

deliver to the Secured Party such other agreements, documents and instruments

as the Secured Party may reasonably require to perfect and maintain the

validity, effectiveness and priority of the Liens intended to be created by the

Loan Documents.

 

Section

4.2.  Corporate Changes. 

Debtor shall not change its name, identity or corporate structure in any

manner that might make any financing statement filed in connection with this

Agreement seriously misleading unless Debtor shall have given the Secured Party

thirty (30) days prior written notice thereof and shall have taken all action

reasonably deemed necessary or desirable by the Secured Party to protect its

Liens and the perfection and priority thereof required by the Loan

Documents.  Debtor shall not change its

prin­cipal place of business, chief executive office or the place where it

keeps its books and records unless it shall have given the Secured Party thirty

(30) days prior written notice thereof and shall have taken all action

reasonably deemed necessary or desirable by the Secured Party to cause its

security interest in the Collat­eral to be perfected with the priority required

by the Loan Documents.

 

Section 4.3.

  Voting Rights; Distributions, Etc.  So long as no Event of Default shall have occurred and be

continuing, Debtor shall be entitled to exercise any and all voting and other

consensual rights (including, without limitation, the right to give consents,

waivers and notifications) pertaining to any of the Pledged Shares; provided,

however, that no vote shall be cast or consent, waiver or ratification

given or action taken without the prior written consent of the Secured Party

which would be inconsistent with or violate any provision of this Agreement or

any other Loan Document.

 

Section

4.4.  Transfers and Other Liens; Additional Investments.  Except as may be expressly permitted by the

terms of the Credit Agreement or this Agreement, Debtor agrees that it will (i)

cause each issuer of any of the Collateral not to issue any shares of stock,

notes or other securities or instruments in addition to or in substitution for

any of the Collateral, (ii) pledge hereunder, immediately upon its acquisition

(directly or indirectly) thereof, any and all such shares of stock, membership

interests, notes or instruments, and (iii) promptly (and in any event within

three Business Days) deliver to the Secured Party an Amendment, duly executed

by Debtor, in substantially the form of Exhibit A hereto (an "Amendment"),

in respect of such shares of stock, membership interests, notes or instruments,

together with all certificates, notes or other instruments representing or

evidencing the same.  Debtor hereby (i)

authorizes the Secured Party to attach each Amendment to this Agreement, and

(ii) agrees that all such shares of stock, membership interests, notes or instruments

listed on any Amendment delivered to the Secured Party shall for all purposes

hereunder constitute Pledged Shares.

 

ARTICLE V

 

Rights of the Secured Party

 

Section

5.1.  POWER OF ATTORNEY. 

DEBTOR HEREBY IRREVO­CABLY CONSTITUTES AND APPOINTS THE SECURED PARTY

AND ANY OFFICER OR AGENT THEREOF, WITH FULL POWER OF SUBSTITUTION, AS ITS TRUE

AND LAWFUL ATTORNEY–IN–FACT WITH FULL IRREVOCABLE POWER AND

AUTHORITY IN THE NAME OF DEBTOR OR IN ITS OWN NAME, TO TAKE, AFTER THE

OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, ANY AND ALL

ACTIONS AND TO EXECUTE ANY AND ALL DOCUMENTS AND INSTRUMENTS WHICH THE SECURED

PARTY AT ANY TIME AND FROM TIME TO TIME DEEMS NECESSARY OR DESIRABLE TO

ACCOMPLISH THE PURPOSES OF THIS AGREEMENT. 

WITHOUT LIMITING THE GENERALITY OF THE FORE­GOING, DEBTOR HEREBY GIVES

THE SECURED PARTY THE POWER AND RIGHT ON BEHALF OF DEBTOR AND IN ITS OWN NAME

TO DO ANY OF THE FOLLOWING AFTER THE OCCURRENCE AND DURING THE CONTINUANCE OF

AN EVENT OF DEFAULT, WITH NOTICE TO DEBTOR BUT WITHOUT THE CONSENT OF DEBTOR:

 

(i)                to demand, sue for, collect or

receive, in the name of Debtor or in its own name, any money or property at any

time payable or receivable on account of or in exchange for any of the

Collateral and, in connection there­with, endorse checks, notes, drafts,

acceptances, money orders, documents of title or any other instruments for the

payment of money under the Collateral or any policy of insurance;

 

(ii)                to pay or discharge taxes, Liens

or other encum­brances levied or placed on or threatened against the

Collateral;

 

(iii)                (A) to direct account debtors

and any other par­ties liable for any payment under any of the Collateral to

make payment of any and all monies due and to become due thereunder directly to

the Secured Party or as the Secured Party shall direct (Debtor agrees that if

any Proceeds of any Collateral shall be received by Debtor while an Event of

Default exists, Debtor shall promptly deliver such Proceeds to the Secured

Party with any necessary endorsements, and until such Proceeds are delivered to

the Secured Party, such Proceeds shall be held in trust by Debtor for the

benefit of the Secured Party and shall not be commingled with any other funds

or property of Debtor); (B) to receive payment of and receipt for any and all

monies, claims and other amounts due and to become due at any time in respect

of or arising out of any Collateral; (C) to sign and endorse any invoices,

freight or express bills, bills of lading, storage or warehouse receipts,

drafts against debtors, assignments, proxies, stock powers, verifications and

notices in connection with accounts and other documents relating to the

Collateral; (D) to commence and prosecute any suit, action or proceeding at law

or in equity in any court of competent jurisdiction to collect the Collateral

or any part thereof and to enforce any other right in respect of any

Collateral; (E) to defend any suit, action or proceeding brought against Debtor

with respect to any Collateral; (F) to settle, compromise or adjust any suit,

action or proceeding described above and, in connection therewith, to give such

discharges or releases as the Secured Party may deem appropriate; (G) to

exchange any of the Collateral for other property upon any merger,

consolidation, reorganization, recapitalization or other readjustment of the

issuer thereof and, in connection therewith, deposit any of the Collateral with

any committee, depositary, transfer agent, registrar or other designated agency

upon such terms as the Secured Party may determine; (H) to add or release any

guarantor, indorser, surety or other party to any of the Collateral; (I) to

renew, extend or otherwise change the terms and conditions of any of the

Collateral; (J) to make, settle, compromise or adjust any claims under or pertaining

to any of the Collateral (including claims under any policy of insurance); and

(K) to sell, transfer, pledge, convey, make any Agreement with respect to or

otherwise deal with any of the Col­lateral as fully and completely as though

the Secured Party were the absolute owner thereof for all purposes, and to do,

at the Secured Party's option and Debtor's expense, at any time, or from time

to time, all acts and things which the Secured Party deems necessary to

protect, preserve, maintain, or realize upon the Collateral and the Secured

Party's security interest therein.

 

THIS POWER OF

ATTORNEY IS A POWER COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE.  The Secured Party shall be under no duty to

exercise or withhold the exercise of any of the rights, powers, privileges and

options expressly or implicitly granted to the Secured Party in this Agreement,

and shall not be liable for any failure to do so or any delay in doing so.  Neither the Secured Party nor any Person

designated by the Secured Party shall be liable for any act or omission or for

any error of judgment or any mistake of fact or law, except any of the same

resulting from its or their gross negligence or willful misconduct.  This power of attorney is conferred on the

Secured Party solely to protect, preserve, maintain and realize upon its

security interest in the Collat­eral. 

The Secured Party shall not be responsible for any decline in the value

of the Collateral and shall not be required to take any steps to preserve

rights against prior parties or to protect, preserve or maintain any Lien given

to secure the Collateral.

 

Section

5.2.  Assignment by the Secured Party.  The Secured Party and each Lender may at any

time assign or otherwise transfer all or any portion of their rights and

obligations under this Agreement and the other Loan Documents (including,

without limitation, the Obligations) to any other Person, to the extent

permitted by, and upon the conditions contained in, the Credit Agreement, and

such Person shall thereupon become vested with all the benefits thereof granted

to the Secured Party and the Lenders, respectively, herein or otherwise.

 

Section

5.3.  Possession; Reasonable Care.  The Secured Party may, from time to time, in its sole discretion,

appoint one or more agents to hold physical custody, for the account of the

Secured Party, of any or all of the Collateral that the Secured Party has a

right to possess.  The Secured Party

shall be deemed to have exercised reasonable care in the custody and

preservation of the Collateral in its possession if the Collateral is accorded

treatment substantially equal to that which the Secured Party accords its own

property, it being understood that the Secured Party shall not have any

responsibility for (a) ascertaining or taking action with respect to calls,

conversions, exchanges, maturities, tenders or other matters relative to any

Collateral, whether or not the Secured Party has or is deemed to have knowledge

of such matters, or (b) taking any necessary steps to preserve rights against any

parties with respect to any Collateral.

 

ARTICLE VI

 

Default

 

Section

6.1.  Rights and Remedies. 

If an Event of Default shall have occurred and be continuing, the

Secured Party shall have the following rights and remedies:

 

(a)                In addition to all other rights

and remedies granted to the Secured Party in this Agreement or in any other

Loan Document or by applicable law, the Secured Party shall have all of the

rights and remedies of a secured party under the UCC (whether or not the UCC

applies to the affected Collateral). 

Without limiting the generality of the foregoing, the Secured Party may

(A) without demand or notice to Debtor, collect, receive or take possession of

the Collateral or any part thereof and for that purpose the Secured Party may

enter upon any premises on which the Collateral is located and remove the

Collateral therefrom or render it inoperable, and/or (B) sell or otherwise

dispose of the Collateral, or any part thereof, in one or more parcels at

public or private sale or sales, at the Secured Party's offices or elsewhere,

for cash, on credit or for future delivery, and upon such other terms as the

Secured Party may reasonably deem commercially reasonable or otherwise as may

be permitted by law.  The Secured Party

shall have the right at any public sale or sales, and, to the extent permitted

by applicable law, at any private sale or sales, to bid (which bid may be, in

whole or in part, in the form of cancellation of indebtedness) and become a

purchaser of the Collateral or any part thereof free of any right or equity of

redemption on the part of Debtor, which right or equity of redemption is hereby

expressly waived and released by Debtor. 

Upon the request of the Secured Party, Debtor shall assemble the

Collateral and make it available to the Secured Party at any place designated

by the Secured Party that is reasonably convenient to Debtor and the Secured

Party.  Debtor agrees that the Secured

Party shall not be obligated to give more than ten (10) days prior written

notice of the time and place of any public sale or of the time after which any

private sale may take place and that such notice shall constitute reasonable

notice of such matters.  The Secured

Party shall not be obligated to make any sale of Collateral if it shall

determine not to do so, regardless of the fact that notice of sale of

Collateral may have been given.  The

Secured Party 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.  Debtor shall be liable for

all reasonable expenses of retaking, holding, preparing for sale or the like,

and all reasonable attorneys' fees, legal expenses and other costs and expenses

incurred by the Secured Party in connec­tion with the collection of the

Obligations and the enforce­ment of the Secured Party's rights under this

Agreement.  Debtor shall remain liable

for any deficiency if the Proceeds of any sale or other disposition of the

Collateral applied to the Obligations are insufficient to pay the Obligations

in full.  The Secured Party may apply

the Collateral against the Obliga­tions as provided in the Credit Agreement.  Debtor waives all rights of marshaling,

valuation and appraisal in respect of the Collateral.  Any cash held by the Secured Party as Collateral and all cash

proceeds received by the Secured Party in respect of any sale of, collection

from or other realization upon all or any part of the Collateral may, in the

discretion of the Secured Party, be held by the Secured Party as collateral

for, and then or at any time thereafter applied in whole or in part by the

Secured Party against, the Obligations in the order permitted by the Credit

Agreement.  Any surplus of such cash or

cash proceeds and interest accrued thereon, if any, held by the Secured Party

and remaining after payment in full of all the Obligations shall be promptly

paid over to Debtor or to whomsoever may be lawfully entitled to receive such

surplus.

 

(b)                The Secured Party may cause any

or all of the Collateral held by it to be transferred into the name of the

Secured Party or the name or names of the Secured Party's nominee or nominees.

 

(c)                The Secured Party may exercise

any and all rights and remedies of Debtor under or in respect of the

Collateral, including, without limitation, any and all rights of Debtor to

demand or otherwise require payment of any amount under, or performance of any

provision of, any of the Collateral and any and all voting rights and corporate

powers in respect of the Collateral. 

Debtor shall execute and deliver (or cause to be executed and delivered)

to the Secured Party all such proxies and other instruments as the Secured

Party may reasonably request for the purpose of enabling the Secured Party to

exercise the voting and other rights which it is entitled to exercise pursuant

to this clause (c) and to receive the dividends, interest and other

distributions which it is entitled to receive hereunder.

 

(d)                The Secured Party may collect or

receive all money or property at any time payable or receivable on account of

or in exchange for any of the Collateral, but shall be under no obligation to

do so.

 

(e)                On any sale of the Collateral,

the Secured Party is hereby authorized to comply with any limitation or

restriction with which compliance is necessary, in the view of the Secured

Party's counsel, in order to avoid any violation of applicable law or in order

to obtain any required approval of the purchaser or purchasers by any

applicable Governmental Authority.

 

Section

6.2.  Private Sales. 

Debtor recognizes that the Secured Party may be unable to effect a

public sale of any or all of the Collateral by reason of certain prohibitions

contained in the laws of any jurisdiction outside the United States or in the

Securities Act of 1933, as amended from time to time (the "Securities

Act"), and applicable state securities laws, but may be compelled to

resort to one or more private sales thereof to a restricted group of purchasers

who will be obliged to agree, among other things, to acquire such Collateral

for their own account for investment and not with a view to the distribution or

resale thereof.  Debtor acknowledges and

agrees that any such private sale may result in prices and other terms less

favorable to the seller than if such sale were a public sale and,

notwithstanding such circumstances, agrees that any such private sale shall, to

the extent permitted by law, be deemed to have been made in a commercially

reasonable manner.  Neither the Secured

Party nor the Lenders shall be under any obligation to delay a sale of any of

the Collateral for the period of time necessary to permit the issuer of such

securities to register such securities under the laws of any jurisdiction

outside the United States, under the Securities Act or under any applicable

state securities laws, even if such issuer would agree to do so.  Debtor further agrees to do or cause to be

done, to the extent that Debtor may do so under applicable law, all such other

reasonable acts and things as may be necessary to make such sales or resales of

any portion or all of the Collateral valid and binding and in compliance with

any and all applicable laws, regulations, orders, writs, injunctions, decrees

or awards of any and all courts, arbitrators or governmental instrumentalities,

domestic or foreign, having jurisdiction over any such sale or sales, all at

Debtor's expense; provided, however, Debtor shall not be required

to file or cause any issuer of the Pledged Shares to file a registration

statement under applicable laws in connection with an initial public offering

of securities.

 

ARTICLE VII

 

Miscellaneous

 

Section

7.1.  No Waiver; Cumulative Remedies.  No failure on the part of the Secured Party

to exercise and no delay in exercising, and no course of dealing with respect

to, any right, power or privilege under this Agreement shall operate as a

waiver thereof, nor shall any single or partial exercise of any right, power or

privilege under this Agreement preclude any other or further exercise thereof

or the exercise of any other right, power, or privilege.  The rights and remedies provided for in this

Agreement are cumulative and not exclusive of any rights and remedies provided

by law.

 

Section

7.2.  Successors and Assigns. 

This Agreement shall be binding upon and inure to the benefit of Debtor

and the Secured Party and their respective successors and assigns, except that

Debtor may not assign any of its rights or obligations under this Agreement

without the prior written consent of the Lenders and Secured Party may not

appoint a successor Secured Party except in accordance with the Credit

Agreement.

 

Section 7.3.  AMENDMENT; ENTIRE AGREEMENT.  THIS AGREEMENT EMBODIES THE FINAL, ENTIRE

AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDES ANY AND ALL PRIOR

COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR

ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED OR

VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREE­MENTS OR

DISCUSSIONS OF THE PARTIES HERETO. 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.  Except as set forth in Section 4.4

hereof, the provisions of this Agreement may be amended or waived only by an

instrument in writ­ing signed by the parties hereto and the Required Lenders.

 

Section

7.4.  Notices.  All

notices and other communica­tions provided for in this Agreement shall be given

or made in accordance with the Credit Agreement.

 

Section

7.5.  Governing Law. 

This Agreement shall be governed by, and construed in accordance with,

the laws of the State of Texas and applicable laws of the United States of

America.

 

Section

7.6.  Headings.  The

headings, captions, and arrangements used in this Agreement are for convenience

only and shall not affect the interpretation of this Agreement.

 

Section

7.7.  Survival of Representations and Warranties.  All representations and warranties made in

this Agreement or in any certificate delivered pursuant hereto shall survive

the exe­cution and delivery of this Agreement, and no investigation by the

Secured Party shall affect the representations and warranties or the right of

the Secured Party to rely upon them.

 

Section

7.8.  Counterparts.  This Agreement may be executed in any number of counterparts, each

of which shall be deemed an original, but all of which together shall

constitute one and the same Agreement.

 

Section

7.9.  Waiver of Bond. 

In the event the Secured Party seeks to take possession of any or all of

the Collateral by judicial process, Debtor hereby irrevocably waives any bonds

and any surety or security relating thereto that may be required by applicable

law as an incident to such possession, and waives any demand for possession

prior to the commencement of any such suit or action.

 

Section

7.10.  Severability. 

Any provision of this Agree­ment which is determined by a court of

competent jurisdiction to be prohibited or unenforceable in any jurisdiction

shall, as to such jurisdiction, be ineffective to the extent of such

prohibition or unenforceability without invalidating the remaining provisions

of this Agreement, and any such prohibition or unenforceability in any

jurisdiction shall not invalidate or render unenforceable such provision in any

other jurisdiction.

 

Section

7.11.  Termination.  If

all of the Obligations shall have been paid and performed in full, all

Commitments of the Secured Party or any Lender to Debtor shall have expired or

terminated and no Letters of Credit shall remain outstanding, the Secured Party

shall, upon the written request of Debtor, execute and deliver to Debtor a

proper instru­ment or instruments acknowledging the release and termination of

the security interests created by this Agreement, and shall duly assign and

deliver to Debtor (without recourse and without any representation or warranty)

such of the Collateral as may be in the possession of the Secured Party and has

not previously been sold or otherwise applied pursuant to this Agreement.  Notwithstanding anything to the contrary

contained in this Agreement, if the payment of any amount of the Obligations is

rescinded, voided or must otherwise be refunded by the Secured Party or any

Lender upon the insolvency, bankruptcy or reorganization of Debtor or any other

Loan Party or otherwise for any reason whatsoever, then the security interests

created by this Agreement will be automatically reinstated and become

automatically effective and in full force and effect, all to the extent that

and as though such payment so rescinded, voided or otherwise refunded had never

been made and such release and termination of such security interests had never

been given.

 

Section

7.12.  Obligations Absolute. 

All rights and remedies of the Secured Party hereunder, and all

obligations of Debtor hereunder, shall be absolute and unconditional

irrespective of:

 

(a)                any lack of validity or

enforceability of any of the Loan Documents;

 

(b)                any change in the time, manner,

or place of payment of, or in any other term of, all or any of the Obligations,

or any other amendment or waiver of or any consent to any departure from any of

the Loan Documents;

 

(c)                any exchange, release, or

nonperfection of any Collateral, or any release or amendment or waiver of or

consent to any departure from any guarantee, for all or any of the Obligations;

or

 

(d)                any other circumstance that

might otherwise constitute a defense available to, or a discharge of, a third

party pledgor.

 

Section 7.13.  WAIVER OF

JURY TRIAL.  TO THE FULLEST EXTENT

PERMITTED BY APPLICABLE LAW, DEBTOR HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL

RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER

BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE

TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF

THE SECURED PARTY OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION, OR

ENFORCEMENT THEREOF.

 

IN WITNESS

WHEREOF, the parties hereto have duly executed this Agreement as of the day and

year first written above.

 

	

   

  	

  DEBTOR:

  
	

   

  	

   

  	

   

  
	

   

  	

  F.Y.I. INCORPORATED

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  Barry L. Edwards

  
	

   

  	

   

  	

  Barry L. Edwards

  
	

   

  	

   

  	

  Executive Vice

  President and Chief Financial Officer

  
	

   

  	

   

  	

   

  
	

   

  	

  SECURED PARTY:

  
	

   

  	

   

  	

   

  
	

   

  	

  BANK OF AMERICA, N.A., as Administrative Agent

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  David A. Johanson

  
	

   

  	

   

  	

  David A. Johanson

  
	

   

  	

   

  	

  Vice President

  
					

 

EXHIBIT A

TO

PLEDGE AGREEMENT

 

FORM OF AMENDMENT

 

This Amendment,

dated __________, is delivered pursuant to Section 4.4 of the Pledge

Agreement (as herein defined) referred to below.  The undersigned hereby agrees that this Amendment may be attached

to the Pledge Agreement dated as of April 3, 2001, between the undersigned and

Bank of America, N.A., as Secured Party for the ratable benefit of the Lenders

referred to therein (the "Pledge Agreement"), and that the shares

of stock, membership, partnership or other equity interests, notes or other

instruments listed on Schedule 1 annexed hereto shall be and become part

of the Collateral referred to in the Pledge Agreement and shall secure payment

and performance of all Obligations as provided in the Pledge Agreement.

 

Capitalized terms

used herein but not defined herein shall have the meanings therefor provided in

the Pledge Agreement.

 

	

   

  	

  F.Y.I. INCORPORATED

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:Prepared by MERRILL CORPORATION

MASTER PLEDGE

AGREEMENT

 

THIS MASTER PLEDGE

AGREEMENT (the "Agreement") dated as of April 3, 2001, is by

and among each of the undersigned parties and any party hereafter added as a

"Debtor" pursuant to a Joinder Agreement (each a "Debtor"

and collectively the "Debtors") and BANK OF AMERICA, N.A., as

Administrative Agent for the "Lenders" as that term is defined

below (the "Secured Party").

 

R E C I T A L S:

 

A.                F.Y.I. Incorporated ("Borrower")

entered into that certain Credit Agreement dated as of April 3, 2001, with the

financial institutions that are parties thereto (each individually a "Lender"

and collectively, the "Lenders") and the Secured Party, as

Administrative Agent for the Lenders (such Agreement as it may be amended or

otherwise modified from time to time herein referred to as the "Credit

Agreement").

 

B.                Each of the Debtors is a

Subsidiary of Borrower and the execution and delivery of this Agreement is

required by the Credit Agreement as a condition to making extensions of credit

thereunder on and after the Closing Date.

 

NOW, THEREFORE, in

consideration of the premises and for other good and valuable consideration,

the adequacy, receipt and sufficiency of which are hereby acknowledged, and in

order to induce the Administrative Agent and Lenders to enter into the Credit

Agreement, the parties hereto hereby agree as follows:

 

ARTICLE I

 

Definitions

 

Section

1.1.  Definitions.  As

used in this Agreement, the following terms have the following meanings:

 

"Collateral"

has the meaning specified in Section 2.1 of this Agreement.

 

"Obligations"

means as such term is defined in the Credit Agreement, and includes, without

limitation, all present and future indebtedness, liabilities and obligations of

Borrower to the Secured Party and the Lenders under the Credit Agreement and

the other Loan Documents.

 

"Pledged

Shares" means the shares of capital stock or other equity, partnership

or membership interests described on Schedule 1.1 attached hereto or on Schedule

1 to an amendment to this Agreement in the form of Exhibit A hereto.

 

"Proceeds"

means any "proceeds," as such term is defined in Article or

Chapter 9 of the UCC and, in any event, shall include, but not be limited

to, (a) any and all proceeds of any insurance, indemnity, warranty or guaranty

payable to Debtor from time to time with respect to any of the Collateral,

(b) any and all pay­ments (in any form whatsoever) made or due and payable

to Debtor from time to time in connection with any requisition, confiscation,

condemnation, seizure or forfeiture of all or any part of the Collateral by any

Governmental Authority (or any Person acting, or purporting to act, for or on

behalf of any Governmental Authority), and (c) any and all other amounts from

time to time paid or payable under or in connection with any of the Collateral.

 

"UCC" means the Uniform Commercial

Code as in effect in the State of Texas; provided, that if, by

applicable law, the perfection or effect of perfection or non-perfection of the

security interest created hereunder in any Collateral is governed by the

Uniform Commercial Code as in effect on or after the date hereof in any other

jurisdiction, "UCC" means the Uniform Commercial Code as in effect in

such other jurisdiction for purposes of the provisions hereof relating to such

perfection or the effect of perfection or non-perfection.

 

Section

1.2.  Other Definitional Provisions.  Terms used herein that are defined in the Credit Agreement and

are not otherwise defined herein shall have the meanings therefor specified in

the Credit Agreement.  References to

"Sections," "subsections," "Exhibits"

and "Schedules" shall be to Sections, subsections, Exhibits

and Schedules, respectively, of this Agreement unless otherwise specifically

provided.  All definitions contained in

this Agreement are equally applicable to the singular and plural forms of the

terms defined.  All references to

statutes and regulations shall include any amendments of the same and any

successor statutes and regulations. 

References to particular sections of the UCC should be read to refer

also to parallel sections of the UCC as enacted in each state or other

jurisdiction where any portion of the Collateral is or may be located.  Terms used herein, which are defined in the

UCC, unless otherwise defined herein or in the Credit Agreement, shall have the

meanings determined in accordance with the UCC.

 

ARTICLE II

 

Security Interest

 

Section

2.1.  Security Interest. 

As collateral security for the prompt payment and performance in full

when due of the Obligations (whether at stated maturity, by acceleration or oth­erwise)

and all obligations, indebtedness and liability of each Debtor to Secured Party

and the Lenders arising under the Loan Documents, each Debtor hereby pledges

and collaterally assigns to the Secured Party, and grants to the Secured Party

a continuing lien on and security interest in, all of such Debtor's right,

title and interest in and to the following, whether now owned or hereafter

arising or acquired and wherever located (collectively, the "Collateral"):

 

(a)           the Pledged Shares and the

certificates representing the Pledged Shares, and all dividends, cash,

instruments and other property from time to time received, receivable or

otherwise distributed or distributable in respect of or in exchange for any or

all of the Pledged Shares;

 

(b)           all additional shares of stock of the

Subsidiaries of such Debtor from time to time owned or acquired by such Debtor

in any manner, and all dividends, cash, instruments and other property from

time to time received, receivable or otherwise distributed or distributable in

respect of or in exchange for any or all of such shares; and

 

(c)           all products and Proceeds, in cash or

otherwise, of any of the property described in the foregoing clauses (a)

and (b).

 

Section

2.2.  Limitation of Obligations Secured.  Notwithstanding anything to the contrary

contained in this Agreement, the secured Obligations of each Debtor hereunder

shall not exceed an aggregate amount equal to the greatest amount that would

not render such Debtor's indebtedness, liabilities or obligations under this

Agreement subject to avoidance under Sections 544, 548 or 550 of the Federal

Bankruptcy Code or subject to being set aside or annulled under any applicable

state law relating to fraud on creditors; provided, however, that,

for purposes of the immediately preceding clause, it shall be presumed that the

secured Obligations of each Debtor under this Agreement do not equal or exceed

any aggregate amount which would render such Debtor's indebtedness, liabilities

or obligations under this Agreement subject to being so avoided, set aside or

annulled, and the burden of proof to the contrary shall be on the party

asserting to the contrary.  Subject to,

but without limiting the generality of, the foregoing sentence, the provisions

of this Agreement are severable and, in any legally binding action or

proceeding involving any state corporate law or any bankruptcy, insolvency or

other laws of general application relating to the enforcement of creditors'

rights and general principles of equity, if the indebtedness, liabilities or

obligations of any Debtor under this Agreement would otherwise be held or

determined to be void, invalid or unenforceable on account of the amount of its

indebtedness, liabilities or obligations under this Agreement, then,

notwithstanding any other provisions of this Agreement to the contrary, the

amount of such indebtedness, liabilities or obligations shall, without any

further action by such Debtor, Secured Party, Lenders or any other Person, be

automatically limited and reduced to the greatest amount which is valid and

enforceable as determined in such action or proceeding.

 

Section

2.3.  Debtors Remain Liable. 

Notwithstanding any­thing to the contrary contained herein, (a) each

Debtor shall remain liable under the documentation included in the Collateral

to the extent set forth therein to perform all of its duties and obligations

thereunder to the same extent as if this Agreement had not been executed, (b)

the exercise by the Secured Party of any of its rights or remedies hereunder

shall not release any Debtor from any of its duties or obligations under such

documentation, (c) the Secured Party shall not have any obligation under any of

such documentation ­included in the Collateral by reason of this Agreement, and

(d) the Secured Party shall not be obligated to per­form any of the

obligations of any Debtor thereunder or to take any action to collect or

enforce any claim for payment assigned hereunder.

 

ARTICLE III

 

Representations and Warranties

 

To induce the Secured

Party and the Lenders to enter into this Agreement and the Credit Agreement,

each Debtor represents and warrants to the Secured Party and the Lenders that:

 

Section

3.1.  Office Locations; Fictitious Names.  The chief place of business and the chief

executive office of each Debtor is located at the place identified on Schedule 3.1.  Schedule 3.1 also sets forth all

other places where any Debtor keeps its books and records and all other

locations where any Debtor has a place of business.  No Debtor does business and no Debtor has done business during

the past five years under any trade-name or fictitious business name except as

disclosed on Schedule 3.1.

 

Section

3.2.  Delivery of Collateral. 

Except as provided by Section 4.1, as of the date hereof each

Debtor has delivered to Secured Party all collateral the possession of which is

necessary to perfect the security interest of Secured Party therein.  Immediately upon each Debtor's receipt of

any Pledged Shares, such Debtor shall deliver such Pledged Shares, endorsed in

blank, to Secured Party.

 

ARTICLE IV

 

Covenants

 

Each Debtor

covenants and agrees with the Secured Party that until the Obligations are paid

and performed in full, all Com­mitments of the Secured Party and the Lenders to

the Borrower have expired or have been terminated and no Letter of Credit

remains outstanding:

 

Section

4.1.  Further Assurances. 

At any time and from time to time, upon the request of the Secured

Party, and at the sole expense of the Debtors, each Debtor shall promptly execute

and deliver all such further agreements, documents and instruments and take

such further action as the Secured Party may reasonably deem neces­sary or

appropriate to preserve and perfect its security interest in the Collateral and

carry out the provisions and purposes of this Agreement or to enable the

Secured Party to exercise and enforce its rights and remedies hereunder with

respect to any of the Collateral. 

Without limiting the generality of the forego­ing, each Debtor shall,

upon request by the Secured Party, (a) execute and deliver to the Secured Party

such financing statements as the Secured Party may from time to time require;

(b) take such action as the Secured Party may request to permit the

Secured Party to have control over any Collateral; (c) deliver to the Secured

Party all Collateral the possession of which is necessary to perfect the

security interest therein, duly endorsed and/or accompanied by duly executed

instruments of transfer or assignment, all in form and substance satisfactory

to Secured Party; except that, prior to the occurrence of an Event of

Default and when the same shall no longer be continuing, each Debtor may:

 

(i)                retain any letters of credit

received in the ordinary course of business, and

 

(ii)                retain and utilize in the

ordinary course of business all dividends and interest paid in respect to any

of the Pledged Shares or any other Collateral;

 

and (d) execute and

deliver to the Secured Party such other agreements, documents and instruments

as the Secured Party may reasonably require to perfect and maintain the

validity, effectiveness and priority of the Liens intended to be created by the

Loan Documents.

 

Section

4.2.  Corporate Changes. 

No Debtor shall change its name, identity or corporate structure in any

manner that might make any financing statement filed in connection with this

Agreement seriously misleading unless such Debtor shall have given the Secured

Party thirty (30) days prior written notice thereof and shall have taken all

action reasonably deemed necessary or desirable by the Secured Party to protect

its Liens and the perfection and priority thereof required by the Loan

Documents.  No Debtor shall change its

prin­cipal place of business, chief executive office or the place where it

keeps its books and records unless it shall have given the Secured Party thirty

(30) days prior written notice thereof and shall have taken all action

reasonably deemed necessary or desirable by the Secured Party to cause its

security interest in the Collat­eral to be perfected with the priority required

by the Loan Documents.

 

Section 4.3.

  Voting Rights; Distributions, Etc.  So long as no Event of Default shall have occurred and be

continuing, the Debtors shall be entitled to exercise any and all voting and

other consensual rights (including, without limitation, the right to give

consents, waivers and notifications) pertaining to any of the Pledged Shares; provided,

however, that no vote shall be cast or consent, waiver or ratification

given or action taken without the prior written consent of the Secured Party

which would be inconsistent with or violate any provision of this Agreement or

any other Loan Document.

 

Section

4.4.  Transfers and Other Liens; Additional Investments.  Except as may be expressly permitted by the

terms of the Credit Agreement or this Agreement, each Debtor agrees that it

will (i) cause each issuer of any of the Collateral not to issue any shares of

stock, notes or other securities or instruments in addition to or in

substitution for any of the Collateral, (ii) pledge hereunder, immediately upon

its acquisition (directly or indirectly) thereof, any and all such shares of

stock, membership interests, notes or instruments, and (iii) promptly (and in

any event within three Business Days) deliver to the Secured Party an

Amendment, duly executed by Debtor, in substantially the form of Exhibit A

hereto (an "Amendment"), in respect of such shares of stock,

membership interests, notes or instruments, together with all certificates,

notes or other instruments representing or evidencing the same.  Each Debtor hereby (i) authorizes the

Secured Party to attach each Amendment to this Agreement, and (ii) agrees that

all such shares of stock, membership interests, notes or instruments listed on

any Amendment delivered to the Secured Party shall for all purposes hereunder

constitute Pledged Shares.

 

ARTICLE V

 

Rights of the Secured

Party

 

Section 5.1.  POWER OF ATTORNEY.  EACH DEBTOR HEREBY IRREVO­CABLY CONSTITUTES

AND APPOINTS THE SECURED PARTY AND ANY OFFICER OR AGENT THEREOF, WITH FULL

POWER OF SUBSTITUTION, AS ITS TRUE AND LAWFUL ATTORNEY–IN–FACT WITH

FULL IRREVOCABLE POWER AND AUTHORITY IN THE NAME OF DEBTOR OR IN ITS OWN NAME,

TO TAKE, AFTER THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF

DEFAULT, ANY AND ALL ACTIONS AND TO EXECUTE ANY AND ALL DOCUMENTS AND

INSTRUMENTS WHICH THE SECURED PARTY AT ANY TIME AND FROM TIME TO TIME DEEMS

NECESSARY OR DESIRABLE TO ACCOMPLISH THE PURPOSES OF THIS AGREEMENT.  WITHOUT LIMITING THE GENERALITY OF THE FORE­GOING,

EACH DEBTOR HEREBY GIVES THE SECURED PARTY THE POWER AND RIGHT ON BEHALF OF

SUCH DEBTOR AND IN ITS OWN NAME TO DO ANY OF THE FOLLOWING AFTER THE OCCURRENCE

AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, WITH NOTICE TO SUCH DEBTOR

BUT WITHOUT THE CONSENT OF SUCH DEBTOR:

 

(i)                to demand, sue for, collect or

receive, in the name of such Debtor or in its own name, any money or property

at any time payable or receivable on account of or in exchange for any of the

Collateral and, in connection there­with, endorse checks, notes, drafts,

acceptances, money orders, documents of title or any other instruments for the

payment of money under the Collateral or any policy of insurance;

 

(ii)                to pay or discharge taxes, Liens

or other encum­brances levied or placed on or threatened against the

Collateral;

 

(iii)                (A) to direct account debtors

and any other par­ties liable for any payment under any of the Collateral to

make payment of any and all monies due and to become due thereunder directly to

the Secured Party or as the Secured Party shall direct (each Debtor agrees that

if any Proceeds of any Collateral shall be received by any Debtor while an

Event of Default exists, such Debtor shall promptly deliver such Proceeds to

the Secured Party with any necessary endorsements, and until such Proceeds are

delivered to the Secured Party, such Proceeds shall be held in trust by such

Debtor for the benefit of the Secured Party and shall not be commingled with

any other funds or property of such Debtor); (B) to receive payment of and

receipt for any and all monies, claims and other amounts due and to become due

at any time in respect of or arising out of any Collateral; (C) to sign and

endorse any invoices, freight or express bills, bills of lading, storage or

warehouse receipts, drafts against debtors, assignments, proxies, stock powers,

verifications and notices in connection with accounts and other documents

relating to the Collateral; (D) to commence and prosecute any suit, action or

proceeding at law or in equity in any court of competent jurisdiction to

collect the Collateral or any part thereof and to enforce any other right in

respect of any Collateral; (E) to defend any suit, action or proceeding brought

against such Debtor with respect to any Collateral; (F) to settle, compromise

or adjust any suit, action or proceeding described above and, in connection

therewith, to give such discharges or releases as the Secured Party may deem

appropriate; (G) to exchange any of the Collateral for other property upon any

merger, consolidation, reorganization, recapitalization or other readjustment

of the issuer thereof and, in connection therewith, deposit any of the

Collateral with any committee, depositary, transfer agent, registrar or other

designated agency upon such terms as the Secured Party may determine; (H) to

add or release any guarantor, indorser, surety or other party to any of the

Collateral; (I) to renew, extend or otherwise change the terms and conditions

of any of the Collateral; (J) to make, settle, compromise or adjust any claims

under or pertaining to any of the Collateral (including claims under any policy

of insurance); and (K) to sell, transfer, pledge, convey, make any Agreement

with respect to or otherwise deal with any of the Col­lateral as fully and

completely as though the Secured Party were the absolute owner thereof for all

purposes, and to do, at the Secured Party's option and the Debtors' expense, at

any time, or from time to time, all acts and things which the Secured Party

deems necessary to protect, preserve, maintain, or realize upon the Collateral

and the Secured Party's security interest therein.

 

THIS POWER OF

ATTORNEY IS A POWER COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE.  The Secured Party shall be under no duty to

exercise or withhold the exercise of any of the rights, powers, privileges and

options expressly or implicitly granted to the Secured Party in this Agreement,

and shall not be liable for any failure to do so or any delay in doing so.  Neither the Secured Party nor any Person

designated by the Secured Party shall be liable for any act or omission or for

any error of judgment or any mistake of fact or law, except any of the same

resulting from its or their gross negligence or willful misconduct.  This power of attorney is conferred on the

Secured Party solely to protect, preserve, maintain and realize upon its

security interest in the Collat­eral. 

The Secured Party shall not be responsible for any decline in the value

of the Collateral and shall not be required to take any steps to preserve

rights against prior parties or to protect, preserve or maintain any Lien given

to secure the Collateral.

 

Section

5.2.  Assignment by the Secured Party.  The Secured Party and each Lender may at any

time assign or otherwise transfer all or any portion of their rights and

obligations under this Agreement and the other Loan Documents (including,

without limitation, the Obligations) to any other Person, to the extent

permitted by, and upon the conditions contained in, the Credit Agreement, and

such Person shall thereupon become vested with all the benefits thereof granted

to the Secured Party and the Lenders, respectively, herein or otherwise.

 

Section

5.3.  Possession; Reasonable Care.  The Secured Party may, from time to time, in its sole discretion,

appoint one or more agents to hold physical custody, for the account of the

Secured Party, of any or all of the Collateral that the Secured Party has a

right to possess.  The Secured Party

shall be deemed to have exercised reasonable care in the custody and

preservation of the Collateral in its possession if the Collateral is accorded

treatment substantially equal to that which the Secured Party accords its own

property, it being understood that the Secured Party shall not have any

responsibility for (a) ascertaining or taking action with respect to calls,

conversions, exchanges, maturities, tenders or other matters relative to any

Collateral, whether or not the Secured Party has or is deemed to have knowledge

of such matters, or (b) taking any necessary steps to preserve rights against

any parties with respect to any Collateral.

 

ARTICLE VI

 

Default

 

Section

6.1.  Rights and Remedies. 

If an Event of Default shall have occurred and be continuing, the

Secured Party shall have the following rights and remedies:

 

(a)                In addition to all other rights

and remedies granted to the Secured Party in this Agreement or in any other

Loan Document or by applicable law, the Secured Party shall have all of the

rights and remedies of a secured party under the UCC (whether or not the UCC applies

to the affected Collateral).  Without

limiting the generality of the foregoing, the Secured Party may (A) without

demand or notice to the Debtors, collect, receive or take possession of the

Collateral or any part thereof and for that purpose the Secured Party may enter

upon any premises on which the Collateral is located and remove the Collateral

therefrom or render it inoperable, and/or (B) sell or otherwise dispose of the

Collateral, or any part thereof, in one or more parcels at public or private sale

or sales, at the Secured Party's offices or elsewhere, for cash, on credit or

for future delivery, and upon such other terms as the Secured Party may

reasonably deem commercially reasonable or otherwise as may be permitted by

law.  The Secured Party shall have the

right at any public sale or sales, and, to the extent permitted by applicable

law, at any private sale or sales, to bid (which bid may be, in whole or in

part, in the form of cancellation of indebtedness) and become a purchaser of

the Collateral or any part thereof free of any right or equity of redemption on

the part of the Debtors, which right or equity of redemption is hereby

expressly waived and released by the Debtors. 

Upon the request of the Secured Party, the Debtors shall assemble the Collateral

and make it available to the Secured Party at any place designated by the

Secured Party that is reasonably convenient to the Debtors and the Secured

Party.  Each Debtor agrees that the

Secured Party shall not be obligated to give more than ten (10) days prior

written notice of the time and place of any public sale or of the time after

which any private sale may take place and that such notice shall constitute

reasonable notice of such matters.  The

Secured Party shall not be obligated to make any sale of Collateral if it shall

determine not to do so, regardless of the fact that notice of sale of

Collateral may have been given.  The

Secured Party 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.  Each Debtor shall be liable

for all reasonable expenses of retaking, holding, preparing for sale or the

like, and all reasonable attorneys' fees, legal expenses and other costs and

expenses incurred by the Secured Party in connec­tion with the collection of

the Obligations and the enforce­ment of the Secured Party's rights under this

Agreement.  Each Debtor shall remain

liable for any deficiency if the Proceeds of any sale or other disposition of

the Collateral applied to the Obligations are insufficient to pay the

Obligations in full.  The Secured Party

may apply the Collateral against the Obliga­tions as provided in the Credit

Agreement.  Each Debtor waives all

rights of marshaling, valuation and appraisal in respect of the

Collateral.  Any cash held by the

Secured Party as Collateral and all cash proceeds received by the Secured Party

in respect of any sale of, collection from or other realization upon all or any

part of the Collateral may, in the discretion of the Secured Party, be held by

the Secured Party as collateral for, and then or at any time thereafter applied

in whole or in part by the Secured Party against, the Obligations in the order

permitted by the Credit Agreement.  Any

surplus of such cash or cash proceeds and interest accrued thereon, if any,

held by the Secured Party and remaining after payment in full of all the

Obligations shall be promptly paid over to the Debtors or to whomsoever may be

lawfully entitled to receive such surplus.

 

(b)                The Secured Party may cause any

or all of the Collateral held by it to be transferred into the name of the

Secured Party or the name or names of the Secured Party's nominee or nominees.

 

(c)                The Secured Party may exercise

any and all rights and remedies of the Debtors under or in respect of the

Collateral, including, without limitation, any and all rights of the Debtors to

demand or otherwise require payment of any amount under, or performance of any

provision of, any of the Collateral and any and all voting rights and corporate

powers in respect of the Collateral. 

Each Debtor shall execute and deliver (or cause to be executed and

delivered) to the Secured Party all such proxies and other instruments as the

Secured Party may reasonably request for the purpose of enabling the Secured

Party to exercise the voting and other rights which it is entitled to exercise

pursuant to this clause (c) and to receive the dividends, interest

and other distributions which it is entitled to receive hereunder.

 

(d)                The Secured Party may collect or

receive all money or property at any time payable or receivable on account of

or in exchange for any of the Collateral, but shall be under no obligation to

do so.

 

(e)                On any sale of the Collateral,

the Secured Party is hereby authorized to comply with any limitation or

restriction with which compliance is necessary, in the view of the Secured

Party's counsel, in order to avoid any violation of applicable law or in order

to obtain any required approval of the purchaser or purchasers by any

applicable Governmental Authority.

 

Section

6.2.  Private Sales. 

Each Debtor recognizes that the Secured Party may be unable to effect a

public sale of any or all of the Collateral by reason of certain prohibitions

contained in the laws of any jurisdiction outside the United States or in the

Securities Act of 1933, as amended from time to time (the "Securities

Act"), and applicable state securities laws, but may be compelled to

resort to one or more private sales thereof to a restricted group of purchasers

who will be obliged to agree, among other things, to acquire such Collateral

for their own account for investment and not with a view to the distribution or

resale thereof.  Each Debtor

acknowledges and agrees that any such private sale may result in prices and

other terms less favorable to the seller than if such sale were a public sale

and, notwithstanding such circumstances, agrees that any such private sale

shall, to the extent permitted by law, be deemed to have been made in a

commercially reasonable manner.  Neither

the Secured Party nor the Lenders shall be under any obligation to delay a sale

of any of the Collateral for the period of time necessary to permit the issuer

of such securities to register such securities under the laws of any

jurisdiction outside the United States, under the Securities Act or under any

applicable state securities laws, even if such issuer would agree to do

so.  Each Debtor further agrees to do or

cause to be done, to the extent that such Debtor may do so under applicable

law, all such other reasonable acts and things as may be necessary to make such

sales or resales of any portion or all of the Collateral valid and binding and

in compliance with any and all applicable laws, regulations, orders, writs,

injunctions, decrees or awards of any and all courts, arbitrators or

governmental instrumentalities, domestic or foreign, having jurisdiction over

any such sale or sales, all at such Debtor's expense; provided, however,

no Debtor shall be required to file or cause any issuer of the Pledged Shares

to file a registration statement under applicable laws in connection with an

initial public offering of securities.

 

ARTICLE VII

 

Miscellaneous

 

Section

7.1.  No Waiver; Cumulative Remedies.  No failure on the part of the Secured Party

to exercise and no delay in exercising, and no course of dealing with respect

to, any right, power or privilege under this Agreement shall operate as a

waiver thereof, nor shall any single or partial exercise of any right, power or

privilege under this Agreement preclude any other or further exercise thereof

or the exercise of any other right, power, or privilege.  The rights and remedies provided for in this

Agreement are cumulative and not exclusive of any rights and remedies provided

by law.

 

Section

7.2.  Successors and Assigns. 

This Agreement shall be binding upon and inure to the benefit of the

Debtors and the Secured Party and their respective successors and assigns,

except that no Debtor may assign any of its rights or obligations under this

Agreement without the prior written consent of the Lenders and Secured Party

may not appoint a successor Secured Party except in accordance with the Credit

Agreement.

 

Section 7.3.  AMENDMENT; ENTIRE AGREEMENT.  THIS AGREEMENT EMBODIES THE FINAL, ENTIRE

AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDES ANY AND ALL PRIOR

COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR

ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED OR

VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREE­MENTS OR

DISCUSSIONS OF THE PARTIES HERETO. 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.  Except as set forth in Section 4.4

hereof, the provisions of this Agreement may be amended or waived only by an

instrument in writ­ing signed by the parties hereto and the Required Lenders.

 

Section

7.4.  Notices.  All

notices and other communica­tions provided for in this Agreement shall be given

or made in accordance with the Credit Agreement.

 

Section

7.5.  Governing Law. 

This Agreement shall be governed by, and construed in accordance with,

the laws of the State of Texas and applicable laws of the United States of

America.

 

Section

7.6.  Headings.  The

headings, captions, and arrangements used in this Agreement are for convenience

only and shall not affect the interpretation of this Agreement.

 

Section

7.7.  Survival of Representations and Warranties.  All representations and warranties made in

this Agreement or in any certificate delivered pursuant hereto shall survive

the exe­cution and delivery of this Agreement, and no investigation by the

Secured Party shall affect the representations and warranties or the right of

the Secured Party to rely upon them.

 

Section

7.8.  Counterparts. 

This Agreement may be executed in any number of counterparts, each of

which shall be deemed an original, but all of which together shall constitute one

and the same Agreement.

 

Section

7.9.  Waiver of Bond. 

In the event the Secured Party seeks to take possession of any or all of

the Collateral by judicial process, each Debtor hereby irrevocably waives any

bonds and any surety or security relating thereto that may be required by

applicable law as an incident to such possession, and waives any demand for

possession prior to the commencement of any such suit or action.

 

Section

7.10.  Severability. 

Any provision of this Agree­ment which is determined by a court of

competent jurisdiction to be prohibited or unenforceable in any jurisdiction

shall, as to such jurisdiction, be ineffective to the extent of such

prohibition or unenforceability without invalidating the remaining provisions

of this Agreement, and any such prohibition or unenforceability in any

jurisdiction shall not invalidate or render unenforceable such provision in any

other jurisdiction.

 

Section

7.11.  Termination.  If

all of the Obligations shall have been paid and performed in full, all Commitments

of the Secured Party or any Lender to the Borrower shall have expired or

terminated and no Letters of Credit shall remain outstanding, the Secured Party

shall, upon the written request of any Debtor, execute and deliver to such

Debtor a proper instru­ment or instruments acknowledging the release and

termination of the security interests created by this Agreement, and shall duly

assign and deliver to such Debtor (without recourse and without any

representation or warranty) such of the Collateral as may be in the possession

of the Secured Party and has not previously been sold or otherwise applied

pursuant to this Agreement. 

Notwithstanding anything to the contrary contained in this Agreement, if

the payment of any amount of the Obligations is rescinded, voided or must

otherwise be refunded by the Secured Party or any Lender upon the insolvency,

bankruptcy or reorganization of the Borrower or any other Loan Party or

otherwise for any reason whatsoever, then the security interests created by

this Agreement will be automatically reinstated and become automatically

effective and in full force and effect, all to the extent that and as though

such payment so rescinded, voided or otherwise refunded had never been made and

such release and termination of such security interests had never been given.

 

Section

7.12.  Obligations Absolute. 

All rights and remedies of the Secured Party hereunder, and all

obligations of the Debtors hereunder, shall be absolute and unconditional

irrespective of:

 

(a)                any lack of validity or

enforceability of any of the Loan Documents;

 

(b)                any change in the time, manner,

or place of payment of, or in any other term of, all or any of the Obligations,

or any other amendment or waiver of or any consent to any departure from any of

the Loan Documents;

 

(c)                any exchange, release, or

nonperfection of any Collateral, or any release or amendment or waiver of or

consent to any departure from any guarantee, for all or any of the Obligations;

or

 

(d)                any other circumstance that

might otherwise constitute a defense available to, or a discharge of, a third

party pledgor.

 

Section 7.13.  WAIVER

OF JURY TRIAL.  TO THE FULLEST

EXTENT PERMITTED BY APPLICABLE LAW, EACH DEBTOR HEREBY IRREVOCABLY AND

EXPRESSLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR

COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR

RELATING TO THE TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY

OR THE ACTIONS OF THE SECURED PARTY OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION,

OR ENFORCEMENT THEREOF.

 

IN WITNESS

WHEREOF, the parties hereto have duly executed this Agreement as of the day and

year first written above.

 

	

   

  	

  DEBTORS:

  
	

   

  	

   

  
	

   

  	

  COPY RIGHT ACQUISITION CORP.

  
	

   

  	

  F.Y.I. INVESTMENTS HOLDING, INC.

  
	

   

  	

  GLOBAL DIRECT ACQUISITION CORP.

  
	

   

  	

  IMC MANAGEMENT, INC.

  
	

   

  	

  INFORMATION MANAGEMENT SERVICES

  
	

   

  	

   

  	

  ACQUISITION CORP.

  
	

   

  	

  INPUT MANAGEMENT, INC.

  
	

   

  	

  LEXICODE ACQUISITION CORP.

  
	

   

  	

  LIFO MANAGEMENT, INC.

  
	

   

  	

  MAILING & MARKETING ACQUISITION CORP.

  
	

   

  	

  MANAGED CARE PROFESSIONALS ACQUISITION

  
	

   

  	

   

  	

  CORP.

  
	

   

  	

  PERMANENT RECORDS MANAGEMENT, INC.

  
	

   

  	

  PMI IMAGING SYSTEMS ACQUISITION CORP.

  
	

   

  	

  QUALITY COPY ACQUISITION CORP.

  
	

   

  	

  RUST CONSULTING ACQUISITION CORP.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Barry L. Edwards

  
	

   

  	

  Name: 

  	

  Barry L. Edwards

  
	

   

  	

  Title:  

  	

  Vice President for each

  of the corporations above

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  F.Y.I. INVESTMENTS, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Ron Zazworsky

  
	

   

  	

  Name:

  	

  Ron Zazworsky

  
	

   

  	

  Title: 

  	

  President

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  SECURED PARTY:

  
	

   

  	

   

  
	

   

  	

  BANK OF AMERICA, N.A., as Administrative Agent

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ David A. Johanson

  
	

   

  	

  Name:

  	

  David A. Johanson

  
	

   

  	

  Title:

  	

  Vice President

  
					

 

EXHIBIT A

TO

MASTER PLEDGE

AGREEMENT

 

FORM OF AMENDMENT

 

This Amendment,

dated __________, is delivered pursuant to Section 4.4 of the Pledge

Agreement (as herein defined) referred to below.  The undersigned hereby agrees that this Amendment may be attached

to the Master Pledge Agreement dated as of April ____, 2001, between the

undersigned and Bank of America, N.A., as Secured Party for the ratable benefit

of the Lenders referred to therein (the "Pledge Agreement"),

and that the shares of stock, membership, partnership or other equity

interests, notes or other instruments listed on Schedule 1 annexed

hereto shall be and become part of the Collateral referred to in the Pledge

Agreement and shall secure payment and performance of all Obligations as

provided in the Pledge Agreement.

 

Capitalized terms

used herein but not defined herein shall have the meanings therefor provided in

the Pledge Agreement.

 

	

   

  	

  [NAME OF DEBTOR]

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]