Document:

Exhibit 10.4

 

[FORM OF]

REVOLVING NOTE

 

FOR VALUE RECEIVED, the undersigned (the “Borrowers”), hereby
promises to pay to                           or
registered assigns (the “Lender”), in accordance with the provisions of
the Senior Secured Credit Agreement dated as of April 1, 2008 (as amended,
modified, supplemented or extended from time to time, the “Credit Agreement”)
among Mac-Gray Corporation, a Delaware
corporation (the “Parent Borrower”), Mac-Gray Services, Inc., a
Delaware corporation (“MGS”), Intirion Corporation, a Delaware corporation (“Intirion”;
together with the Parent Borrower and MGS, each a “Borrower” and
collectively, the “Borrowers”),
the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent and Collateral Agent.
Capitalized terms used but not otherwise defined herein have the
meanings provided in the Credit Agreement.

 

The
Borrowers promise to pay interest on the unpaid principal amount of each
Revolving Loan from the date of such Revolving Loan until such principal amount
is paid in full, at such interest rates and
at such times as provided in the Credit Agreement. All payments of principal
and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately available funds at the Administrative
Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be
paid upon demand, from the due date thereof until the date of actual
payment (and before as well as after judgment) computed at the per annum rate
set forth in the Credit Agreement.

 

This Revolving Note is one of the Revolving Notes
referred to in the Credit Agreement, is entitled
to the benefits thereof and may be prepaid in whole or in part subject to the
terms and conditions provided therein. Upon the occurrence
and continuation of one or more of the Events of
Default specified in the Credit Agreement, all amounts then remaining unpaid on
this Revolving Note shall become, or may be declared to be, immediately due and
payable all as provided in the Credit
Agreement. Revolving Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the
ordinary course of business. The Lender may also
attach schedules to this Revolving Note and endorse thereon the date, amount
and maturity of its Revolving Loans and payments with respect thereto.

 

Each Borrower, for itself, its successors and assigns,
hereby waives diligence, presentment, protest and demand and
notice of protest, demand, dishonor and nonpayment of this Revolving Note.

 

[SIGNATURE PAGE FOLLOWS]

 

 

THIS REVOLVING NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

 

	
   

  	
  MAC-GRAY CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAC-GRAY SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTIRION CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit 10.5

 

[FORM OF]

SWINGLINE NOTE

 

FOR VALUE RECEIVED, the undersigned (the “Borrowers”),
hereby promises to pay to BANK OF AMERICA, N.A. or
registered assigns (the “Swingline Lender”), in accordance with the provisions of the Senior Secured Credit Agreement
dated as of April 1, 2008 (as amended, modified, supplemented or extended from time to time, the “Credit
Agreement”) among Mac-Gray Corporation, a Delaware corporation (the “Parent
Borrower”), Mac-Gray Services, Inc., a Delaware corporation (“MGS”), Intirion Corporation, a Delaware
corporation (“Intirion”; together with the Parent Borrower and MGS, each
a “Borrower” and collectively, the “Borrowers”), the Lenders from time to time party thereto and
Bank of America, N.A., as Administrative
Agent and Collateral Agent. Capitalized terms used but not otherwise defined herein
have the meanings provided in the Credit Agreement.

 

The Borrowers promise to pay interest on the unpaid
principal amount of each Swingline Loan from
the date of such Swingline Loan until such principal amount is paid in full, at
such interest rates and at such times as
provided in the Credit Agreement. All payments of principal and interest shall be made to the Administrative Agent for the account of
the Swingline Lender in Dollars in immediately
available funds at the Administrative Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest,
to be paid upon demand, from the due date thereof until the date of actual
payment (and before as well as after judgment) computed at the per annum
rate set forth in the Credit Agreement.

 

This
Swingline Note is the Swingline Note referred to in the Credit Agreement, is
entitled to the benefits thereof and may be
prepaid in whole or in part subject to the terms and conditions provided therein. Upon the occurrence and
continuation of one or more of the Events of Default specified in the Credit Agreement, all amounts then
remaining unpaid on this Swingline Note shall become, or may be declared to be, immediately due and payable all
as provided in the Credit Agreement. Swingline Loans made by the
Swingline Lender shall be evidenced by one or more loan accounts or records
maintained by the Lender in the ordinary course of business. The Swingline Lender may also attach schedules to
this Swingline Note and endorse thereon the date, amount and maturity of
its Swingline Loans and payments with respect thereto.

 

Each Borrower, for itself, its successors and assigns,
hereby waives diligence, presentment, protest and demand and
notice of protest, demand, dishonor and nonpayment of this Swingline Note.

 

[SIGNATURE PAGE FOLLOWS]

 

 

THIS SWINGLINE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

 

	
   

  	
  MAC-GRAY CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAC-GRAY SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTIRION CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit 10.6

 

[FORM OF]

TERM LOAN NOTE

 

FOR VALUE RECEIVED, the undersigned (the “Borrowers”), hereby
promises to pay to                         or
registered assigns (the “Lender”), in accordance with the provisions of
the Senior Secured Credit Agreement dated as of April 1, 2008 (as amended,
modified, supplemented or extended from time to time, the “Credit Agreement”)
among Mac-Gray Corporation, a Delaware
corporation (the “Parent Borrower”), Mac-Gray Services, Inc., a
Delaware corporation (“MGS”), Intirion Corporation, a Delaware corporation (“Intirion”;
together with the Parent Borrower and MGS, each a “Borrower” and
collectively, the “Borrowers”),
the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent and Collateral Agent.
Capitalized terms used but not otherwise defined herein have the
meanings provided in the Credit Agreement.

 

The
Borrowers promise to pay interest on the unpaid principal amount of each Term
Loan from the date of such Term Loan until such principal amount is paid in
full, at such interest rates and at such
times as provided in the Credit Agreement. All payments of principal and interest shall be made to the Administrative Agent
for the account of the Lender in Dollars in immediately available funds at the Administrative Agent’s Office. If any
amount is not paid in full when due
hereunder, such unpaid amount shall bear interest, to be paid upon demand, from
the due date thereof until the date of actual payment (and before as
well as after judgment) computed at the per annum rate set forth in the Credit
Agreement.

 

This Term Loan Note is one of the Term Loan Notes
referred to in the Credit Agreement, is entitled
to the benefits thereof and may be prepaid in whole or in part subject to the
terms and conditions provided therein. Upon the occurrence
and continuation of one or more of the Events of
Default specified in the Credit Agreement, all amounts then remaining unpaid on
this Term Loan Note shall become, or may be declared to be, immediately due and
payable all as provided in the Credit
Agreement. The Term Loan made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the
ordinary course of business. The Lender may also
attach schedules to this Term Loan Note and endorse thereon the date, amount
and maturity of the Term Loan and payments with respect thereto.

 

Each Borrower, for itself, its successors and assigns,
hereby waives diligence, presentment, protest and demand and
notice of protest, demand, dishonor and nonpayment of this Term Loan Note.

 

[SIGNATURE PAGE FOLLOWS]

 

 

THIS TERM LOAN NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

 

	
   

  	
  MAC-GRAY CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAC-GRAY SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTIRION CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit 10.7

 

GUARANTEE AND COLLATERAL AGREEMENT

 

dated as of

 

April 1, 2008,

 

among

 

MAC-GRAY CORPORATION,

MAC-GRAY SERVICES, INC.,

INTIRION CORPORATION,

 

THE SUBSIDIARIES OF THE BORROWERS

IDENTIFIED HEREIN

 

and

BANK OF AMERICA, N.A.,

as Collateral Agent

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I Definitions

  	
  1

  
	
  SECTION 1.01.

  	
  Credit Agreement

  	
  1

  
	
  SECTION 1.02.

  	
  Other Defined Terms

  	
  1

  
	
  ARTICLE II Guarantee

  	
  4

  
	
  SECTION 2.01.

  	
  Guarantee

  	
  4

  
	
  SECTION 2.02.

  	
  Guarantee of Payment

  	
  4

  
	
  SECTION 2.03.

  	
  No Limitations

  	
  5

  
	
  SECTION 2.04.

  	
  Reinstatement

  	
  6

  
	
  SECTION 2.05.

  	
  Agreement To Pay;
  Subrogation

  	
  6

  
	
  SECTION 2.06.

  	
  Information

  	
  6

  
	
  SECTION 2.07.

  	
  Certain Waivers

  	
  6

  
	
  SECTION 2.08.

  	
  Remedies

  	
  7

  
	
  SECTION 2.09.

  	
  Rights of Contribution

  	
  7

  
	
  ARTICLE III Pledge of Securities

  	
  7

  
	
  SECTION 3.01.

  	
  Pledge

  	
  7

  
	
  SECTION 3.02.

  	
  Delivery of the Pledged
  Collateral

  	
  7

  
	
  SECTION 3.03.

  	
  Representations,
  Warranties and Covenants

  	
  8

  
	
  SECTION 3.04.

  	
  Certification of Limited
  Liability Company and Limited Partnership Interests

  	
  9

  
	
  SECTION 3.05.

  	
  Registration in Nominee
  Name; Denominations

  	
  9

  
	
  SECTION 3.06.

  	
  Voting Rights; Dividends
  and Interest

  	
  9

  
	
  ARTICLE IV Security Interests in Personal Property

  	
  11

  
	
  SECTION 4.01

  	
  Security Interest

  	
  11

  
	
  SECTION 4.02.

  	
  Representations and
  Warranties

  	
  12

  
	
  SECTION 4.03.

  	
  Covenants

  	
  14

  
	
  SECTION 4.04.

  	
  Other Actions

  	
  16

  
	
  SECTION 4.05.

  	
  Covenants Regarding
  Patent, Trademark and Copyright Collateral

  	
  18

  
	
  ARTICLE V Remedies

  	
  20

  
	
  SECTION 5.01

  	
  Remedies Upon Default

  	
  20

  
	
  SECTION 5.02.

  	
  Application of Proceeds

  	
  21

  
	
  SECTION 5.03.

  	
  Grant of License to Use
  Intellectual Property

  	
  21

  
	
  SECTION 5.04.

  	
  Securities Act

  	
  21

  
	
  SECTION 5.05.

  	
  Registration

  	
  22

  
	
  ARTICLE VI Indemnity, Subrogation and Subordination

  	
  23

  
	
  SECTION 6.01

  	
  Indemnity and Subrogation

  	
  23

  
	
  SECTION 6.02.

  	
  Contribution and
  Subrogation

  	
  23

  
	
  SECTION 6.03.

  	
  Subordination

  	
  23

  
	
  ARTICLE VII Miscellaneous

  	
  23

  
	
  SECTION 7.01

  	
  Notices

  	
  23

  
	
  SECTION 7.02.

  	
  Waivers; Amendment

  	
  24

  
	
  SECTION 7.03.

  	
  Collateral Agent’s Fees
  and Expenses; Indemnification

  	
  24

  
	
  SECTION 7.04.

  	
  Successors and Assigns

  	
  24

  
	
  SECTION 7.05.

  	
  Survival of Agreement

  	
  24

  
	
  SECTION 7.06.

  	
  Counterparts; Effectiveness;
  Several Agreement

  	
  25

  
	
  SECTION 7.07.

  	
  Severability

  	
  25

  
	
  SECTION 7.08.

  	
  Right of Set-Off

  	
  25

  
	
  SECTION 7.09.

  	
  Governing Law;
  Jurisdiction; Consent to Service of Process

  	
  25

  
	
  SECTION 7.10.

  	
  WAIVER OF JURY TRIAL

  	
  26

  
	
  SECTION 7.11.

  	
  Headings

  	
  26

  
	
  SECTION 7.12.

  	
  Security Interest Absolute

  	
  26

  

 

 

	
  SECTION 7.13.

  	
  Termination or Release

  	
  27

  
	
  SECTION 7.14.

  	
  Additional Subsidiaries

  	
  27

  
	
  SECTION 7.15.

  	
  Collateral Agent Appointed
  Attorney-in-Fact

  	
  27

  
	
  SECTION 7.16.

  	
  Joint and Several
  Obligations of Grantors

  	
  28

  

 

 

Schedules

 

	
  Schedule
  I

  	
   

  	
  Guarantors

  
	
  Schedule
  II

  	
   

  	
  Pledged
  Stock; Debt Securities

  
	
  Schedule
  III

  	
   

  	
  Intellectual
  Property

  
	
  Schedule
  IV

  	
   

  	
  Commercial
  Tort Claims

  
	
  Schedule
  V

  	
   

  	
  Insurance
  Requirements

  
	
  Schedule
  VI

  	
   

  	
  Deposit
  Accounts

  

 

Exhibits

 

	
  Exhibit I

  	
   

  	
  Form of
  Supplement

  
	
  Exhibit II

  	
   

  	
  Form of
  Stock Power

  
	
  Exhibit III

  	
   

  	
  Form of
  Notice of Grant of Security Interests in Patents

  
	
  Exhibit IV

  	
   

  	
  Form of
  Notice of Grant of Security Interests in Trademarks

  
	
  Exhibit V

  	
   

  	
  Form of
  Notice of Grant of Security Interests in Copyrights

  

 

 

GUARANTEE
AND COLLATERAL AGREEMENT dated as of April 1, 2008 (as amended, restated,
supplemented and otherwise modified from time to time, this “Agreement”,
among Mac-Gray Corporation (the “Parent Borrower”), Mac-Gray Services, Inc.  (“Services”), Intirion Corporation
(together with the Parent Borrower and Services, the “Borrowers”), the
Subsidiaries of the Borrowers identified herein and Bank of America, N.A., as
Collateral Agent (together with its successors in such capacity, the “Collateral
Agent”).

 

Reference
is made to the Senior Secured Credit Agreement dated as of April 1, 2008
(as amended, restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among the Borrowers, the Lenders party thereto
and Bank of America, N.A., as Administrative Agent and Collateral Agent.  The Lenders have agreed to extend credit to
the Borrowers 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 Guarantors are subsidiaries and affiliates of the Borrowers, will
derive substantial benefits from the extension of credit to the Borrowers
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

 

SECTION 1.01.       Credit
Agreement.  (a) Capitalized terms used in this
Agreement and not otherwise defined herein have the meanings specified in the
Credit Agreement.  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 1.02 of the Credit
Agreement also apply to this Agreement.

 

SECTION 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 Grantor
under, with respect to or on account of an Account.

 

“Agreement”
has the meaning assigned to such term in the preliminary statement of this
Agreement.

 

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

 

“Claiming
Party” has the meaning assigned to such term in Section 6.02.

 

“Collateral”
means Article 9 Collateral and Pledged Collateral.

 

“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
Grantor or that such Grantor otherwise has the right to license, or granting
any right to any Grantor under any copyright now or hereafter owned by any
third party, and all rights of such Grantor under any such agreement.

 

 

“Copyrights”
means all of the following now owned or hereafter acquired by any Grantor: (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 or any other country, including registrations,
recordings, supplemental registrations and pending applications for
registration in the United States Copyright Office, including those listed on Schedule
III, and all renewals thereof.

 

“Credit
Agreement” has the meaning assigned to such term in the preliminary
statement of this Agreement.

 

“Deposit
Account Control Agreement” means any agreement approved by the Collateral
Agent in its reasonable discretion, among the applicable Grantor, the
Collateral Agent and the applicable depositary bank.

 

“Federal
Securities Laws” has the meaning assigned to such term in Section 5.04.

 

“Financial
Asset” has the meaning specified in Section 8-102(a)(9) of the
New York UCC.

 

“General
Intangibles” means such term as defined in the New York UCC, including all
choses in action and causes of action and all other intangible personal
property of every kind and nature (other than Accounts) now owned or hereafter
acquired by any Grantor, including corporate or other business records,
indemnification claims, contract rights (including rights under leases, whether
entered into as lessor or lessee, Swap Agreements and other agreements),
Intellectual Property, goodwill, registrations, franchises, tax refund claims
and any letter of credit, guarantee, claim, security interest or other security
held by or granted to any Grantor to secure payment by an Account Debtor of any
of the Accounts.

 

“Grantors”
means the Borrowers and the Guarantors.

 

“Guarantors”
means (a) the Borrowers, (b) the Subsidiaries identified on Schedule
I and (c) each other Subsidiary that becomes a party to this Agreement
as a Guarantor after the Closing Date.

 

“Intellectual
Property” means all intellectual and similar property of every kind and
nature now owned or hereafter acquired by any Grantor, including inventions,
designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential
or proprietary technical and business information, know-how and show-how.

 

“License”
means any Patent License, Trademark License, Copyright License or other license
or sublicense agreement to which any Grantor is a party, including those listed
on Schedule III.

 

“Loan
Document Obligations” means (a) the due and punctual payment by the
Borrowers of (i) the principal of and interest (including interest
accruing during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the Loans, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise, (ii) each
payment required to be made by the Borrowers under the Credit Agreement in
respect of any Letter of Credit, when and as due, including payments in respect
of reimbursement of disbursements, interest thereon and obligations to provide
Cash Collateral and (iii) all other monetary obligations of any of the
Borrowers to any of the Secured Parties under the Credit Agreement and each of
the other Loan Documents, including obligations to pay fees, expense
reimbursement obligations and indemnification obligations, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary
obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or 

 

2

 

allowable in such proceeding), (b) the
due and punctual performance of all other obligations of the Borrowers under or
pursuant to the Credit Agreement and each of the other Loan Documents and (c) the
due and punctual payment and performance of all the obligations of each other
Loan Party under or pursuant to this Agreement and each of the other Loan
Documents.

 

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

 

“Obligations”
means (a) Loan Document Obligations, (b) the due and punctual payment
and performance of all obligations of each Loan Party under or in connection
with each Swap Agreement that (i) is in effect on the Closing Date with a
counterparty that is a Lender or an Affiliate of a Lender as of the Closing
Date or (ii) is entered into after the Closing Date with any counterparty
that is a Lender or an Affiliate of a Lender at the time such Swap Agreement is
entered into (even if that counterparty should subsequently cease to be a
Lender (or an Affiliate of a Lender)) and (c) the due and punctual payment
and performance of all obligations in respect of overdrafts and related
liabilities owed to the Administrative Agent (in its individual capacity), any
Lender or any of their respective Affiliates and arising from treasury,
depositary and cash management services in connection with any automated
clearinghouse transfers of funds.

 

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

 

“Patents”
means all of the following now owned or hereafter acquired by any Grantor: (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 or any similar offices in any other
country, 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
Debt Securities” has the meaning assigned to such term in Section 3.01.

 

“Pledged
Securities” means any promissory notes, stock certificates or other
securities now or hereafter included in the Pledged Collateral, including all
certificates, instruments or other documents representing or evidencing any
Pledged Collateral.

 

“Pledged
Stock” has the meaning assigned to such term in Section 3.01.

 

“Proceeds”
has the meaning specified in Section 9-102 of the New York UCC.

 

“Secured
Parties” means (a) the Lenders (and any Affiliate of any Lender to
which any obligation referred to in clause (c) of the definition of the
term “Obligations” is owed), (b) the Administrative Agent, (c) the
Collateral Agent, (d) the L/C Issuer, (e) each counterparty to any
Swap Agreement with a Loan Party the obligations under which constitute
Obligations, (f) the beneficiaries of each indemnification

 

3

 

obligation undertaken by any Loan Party under
any Loan Document and (g) the successors and assigns of each of the foregoing.

 

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

 

“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
Grantor or that any Grantor otherwise has the right to license, or granting to
any Grantor any right to use any trademark now or hereafter owned by any third
party, and all rights of any Grantor under any such agreement.

 

“Trademarks”
means all of the following now owned or hereafter acquired by any Grantor: (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, and the goodwill associated therewith, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and all
registration and recording applications filed in connection therewith,
including registrations and registration applications in the United States
Patent and Trademark Office or any similar offices in any State of the United
States or any other country or any political subdivision thereof, and all
extensions or renewals thereof, 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.

 

ARTICLE II

 

Guarantee

 

SECTION 2.01.       Guarantee.  Each
Guarantor unconditionally guarantees, jointly with the other Guarantors and
severally, as a primary obligor and not merely as a surety, the due and
punctual payment in full when due and performance of the Obligations.  Each of the Guarantors further agrees that
the 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 Obligation.  Each of the Guarantors waives diligence, presentment
to, demand of payment from and protest to the Borrowers or any other Loan Party
of any of the Obligations, and also waives notice of acceptance of its
guarantee and notice of protest for nonpayment and any requirement that the Collateral Agent or any Secured Party
exhaust any right, power or remedy or proceed against any Person under any of
the Loan Documents or any other documents relating to the Obligations or any
other agreement or instrument referred to therein, or against any other Person under
any other guarantee of, or security for, any of the Obligations.

 

SECTION 2.02.       Guarantee
of Payment.  (a)    Each
of the Guarantors further agrees that its guarantee hereunder constitutes a
continuing guarantee of payment in full when due (whether at stated maturity,
as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) strictly in accordance with the terms thereof
and not of collection, and 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 Obligations or to any balance of any deposit account or credit
on the books of the Collateral Agent or any other Secured Party in favor of the
Borrowers or any other Person.  The Guarantors hereby further agree that if
any of the Obligations are not paid in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise), the Guarantors will, jointly and severally,
promptly pay the same, without any demand or notice whatsoever, and that in the
case of any extension of time of payment or renewal of any of the Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
as a mandatory prepayment, by acceleration,

 

4

 

as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension
or renewal.

 

(b)           Notwithstanding any provision to the
contrary contained herein, in any other of the Loan Documents, Swap Agreements
or other documents relating to the Obligations, the obligations of each Guarantor under this Agreement and the other Loan Documents
shall be limited to an aggregate amount equal to the largest amount that
would not render such obligations subject to avoidance under the Debtor Relief
Laws or any comparable provisions of any applicable state law.

 

SECTION 2.03.       No
Limitations.  (a)    Except
for termination of a Guarantor’s obligations hereunder as expressly provided in
Section 7.13, the obligations of each Guarantor 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 Obligations or otherwise.  Without limiting the generality of the
foregoing, the obligations of each Guarantor 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 Guarantor under this Agreement; (iii) the
release of any security held by the Collateral Agent or any other Secured Party
for the Obligations or any of them; (iv) any default, failure or delay,
willful or otherwise, in the performance of the Obligations; (v) any Lien granted to, or in favor of, the
Collateral Agent or any Secured Party as security for any of the Obligations
shall fail to attach or be perfected; (vi) any of the Obligations shall be
determined to be void or voidable (including, without limitation, for the
benefit of any creditor of any Guarantor) or shall be subordinated to the
claims of any Person (including, without limitation, any creditor of any
Guarantor); or (vii) any other act or omission that may or might in
any manner or to any extent vary the risk of any Guarantor or otherwise operate
as a discharge of any Guarantor as a matter of law or equity (other than the
indefeasible payment in full in cash of all the Obligations).  Each Guarantor expressly authorizes the
Collateral Agent to take and hold security for the payment and performance of
the 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 its sole discretion or to release or
substitute any one or more other guarantors or obligors upon or in respect of
the Obligations, all without affecting the obligations of any Guarantor
hereunder.

 

(b)           To
the fullest extent permitted by applicable law, each Guarantor waives any
defense based on or arising out of any defense of the Borrowers or any other
Loan Party or the unenforceability of the Obligations or any part thereof from
any cause, or the cessation from any cause of the liability of the Borrowers or
any other Loan Party, other than the indefeasible payment in full (other than
contingent indemnification obligations that survive the termination of the Loan
Documents) in cash of all the Obligations,
irrespective of any other circumstance whatsoever that might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor,
it being the intent of this Section 2.03 that the obligations of
the Guarantors hereunder shall be absolute and unconditional under any and all
circumstances.  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 Obligations, make any other accommodation
with the Borrowers or any other Loan Party or exercise any other right or
remedy available to them against the Borrowers or any other Loan Party, without
affecting or impairing in any way the liability of any Guarantor hereunder except
to the extent the Obligations have been fully and indefeasibly paid in full in
cash.  To the fullest extent permitted by
applicable law, each Guarantor waives any defense arising out of any such
election even though such election operates, pursuant to applicable 

 

5

 

law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of such Guarantor against
the Borrowers or any other Loan Party, as the case may be, or any security.

 

SECTION 2.04.       Reinstatement.  Each
of the Guarantors agrees that its guarantee hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any Obligation is rescinded or must otherwise be restored by
the Collateral Agent or any other Secured Party upon the bankruptcy or
reorganization of the Borrowers, any other Loan Party or otherwise.  The
obligations of the Guarantors under this Article II shall be
automatically reinstated if and to the extent that for any reason any payment
by or on behalf of any Person in respect of the Obligations is rescinded or
must be otherwise restored by any holder of any of the Obligations, whether as
a result of any proceedings pursuant to any Debtor Relief Law or otherwise, and
each Guarantor agrees that it will indemnify the Collateral Agent and each
Secured Party on demand for all reasonable costs and expenses (including all
reasonable fees, expenses and disbursements of one outside law firm and reasonably
necessary special and local counsel)
incurred by the Collateral Agent or such Secured Party in connection with such
rescission or restoration, including any such costs and expenses incurred in
defending against any claim alleging that such payment constituted a
preference, fraudulent transfer or similar payment under any Debtor Relief Law.

 

SECTION 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 Guarantor by virtue
hereof, upon the failure of the Borrowers or any other Loan Party to pay any
Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor 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 Obligation.  Upon payment by
any Guarantor of any sums to the Collateral Agent as provided above, all rights
of such Guarantor against the Borrowers 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.

 

SECTION 2.06.       Information.  Each
Guarantor assumes all responsibility for being and keeping itself informed of
the Borrowers’ and each other Loan Party’s financial condition and assets, and
of all other circumstances bearing upon the risk of nonpayment of the
Obligations and the nature, scope and extent of the risks that such Guarantor
assumes and incurs hereunder, and agrees that none of the Collateral Agent or
the other Secured Parties will have any duty to advise such Guarantor of
information known to it or any of them regarding such circumstances or risks.

 

SECTION 2.07.      Certain
Waivers.  Each
Guarantor acknowledges and agrees that (a) the guaranty given hereby may
be enforced without the necessity of resorting to or otherwise exhausting
remedies in respect of any other security or collateral interests, and without
the necessity at any time of having to take recourse against any Borrower
hereunder or against any collateral securing the Obligations or otherwise, (b) it
will not assert any right to require the action first be taken against any
Borrower or any other Person (including any co-guarantor) or pursuit of any
other remedy or enforcement any other right and (c) nothing contained
herein shall prevent or limit action being taken against any Borrower
hereunder, under the other Loan Documents or the other documents and agreements
relating to the Obligations or from foreclosing on any security or collateral
interests relating hereto or thereto, or from exercising any other rights or
remedies available in respect thereof and the exercise of any such rights and
completion of any such foreclosure proceedings shall not constitute a discharge
of the Guarantors’ obligations hereunder unless as a result thereof, the
Obligations shall have been paid in full and the commitments relating thereto
shall have expired or been terminated, it being the purpose and intent that the
Guarantors’ obligations hereunder be absolute, irrevocable, independent and
unconditional under all circumstances.

 

6

 

SECTION 2.08.      Remedies.  The Guarantors agree that, to the
fullest extent permitted by law, as between the Guarantors, on the one hand,
and the Collateral Agent and the Secured Parties, on the other hand, the
Obligations may be declared to be forthwith due and payable to the extent
provided in Section 8.01 of the Credit Agreement (and shall be deemed to
have become automatically due and payable in the circumstances provided in Section 8.01
of the Credit Agreement) for purposes of this Article II,
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or preventing the Obligations from becoming automatically due and
payable) as against any other Person and that, in the event of such declaration
(or the Obligations being deemed to have become automatically due and payable),
the Obligations (whether or not due and payable by any other Person) shall
forthwith become due and payable by the Guarantors for purposes of this Article II.  The Guarantors acknowledge and agree that the
Obligations are secured in accordance with the terms hereof and that the
Secured Parties may exercise their remedies hereunder in accordance with the
terms hereof.

 

SECTION 2.09.      Rights
of Contribution.  The Guarantors hereby
agree as among themselves that, in connection with payments made hereunder,
each Guarantor shall have a right of contribution from each other Guarantor in
accordance with applicable Law.  Such contribution
rights shall be subordinate and subject in right of payment to the Obligations
until such time as the Obligations have been irrevocably paid in full (other
than contingent indemnification obligations that survive the termination of the
Loan Documents) and the commitments relating thereto shall have expired or been
terminated, and none of the Guarantors shall exercise any such contribution
rights until the Obligations have been irrevocably paid in full (other than
contingent indemnification obligations that survive the termination of the Loan
Documents) and the commitments relating thereto shall have expired or been
terminated.

 

ARTICLE III

 

Pledge of Securities

 

SECTION 3.01.       Pledge.  As
security for the payment or performance, as the case may be, in full of the
Obligations, each Grantor hereby assigns and pledges to the Collateral Agent,
its successors and assigns, for the ratable benefit of the Secured Parties, and
hereby grants to the Collateral Agent, its successors and assigns, for the
ratable benefit of the Secured Parties, a security interest in all of such
Grantor’s right, title and interest in, to and under (a) the shares of
capital stock and other Equity Interests owned by it, which, as of the Closing
Date are listed on Schedule II, and any other Equity Interests obtained
in the future by such Grantor and the certificates, if any, representing all
such Equity Interests (the “Pledged Stock”); provided that the
Pledged Stock shall not include more than 65% of the issued and outstanding
voting Equity Interests of any Foreign Subsidiary, (b) the debt securities
owned by it, which, as of the Closing Date are listed opposite the name of such
Grantor on Schedule II and any debt securities in the future issued to
such Grantor and the promissory notes and any other instruments evidencing such
debt securities (the “Pledged Debt Securities”), (c) all other
property that may be delivered to and held by the Collateral Agent pursuant to
the terms of this Section 3.01, (d) 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 referred to in clauses (a) and (b) above,
(e) subject to Section 3.06, all rights and privileges of such
Grantor with respect to the securities and other property referred to in
clauses (a), (b), (c) and (d) above and (f) 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”).

 

SECTION 3.02.       Delivery
of the Pledged Collateral.  (a) Each Grantor agrees
promptly to deliver or cause to be delivered to the Collateral Agent any and
all certificated Pledged Securities.

 

7

 

(b)           Each
Grantor will cause any Indebtedness for borrowed money owed to such Grantor by
any Person to be evidenced by a duly executed promissory note that is pledged
and delivered to the Collateral Agent, together with any necessary undated
indorsement executed in blank, pursuant to the terms hereof.

 

(c)           Upon
delivery to the Collateral Agent, (i) any certificated Pledged Securities
shall be accompanied by undated stock powers, substantially in the form of Exhibit II
hereto, duly executed in blank or other instruments of transfer satisfactory to
the Collateral Agent and by such other instruments and documents as the
Collateral Agent may reasonably request and (ii) all other property
comprising part of the Pledged Collateral shall be accompanied by proper
instruments of assignment duly executed by the applicable Grantor and such
other instruments or documents as the Collateral Agent may reasonably request.  Each delivery of Pledged Securities shall be
accompanied by a schedule describing the securities, which schedule shall be
attached hereto as Schedule II and made a part hereof; provided
that failure to attach any such schedule hereto shall not affect the validity
of such pledge of such Pledged Securities. 
Each schedule so delivered shall supplement any prior schedules so
delivered.

 

SECTION 3.03.       Representations,
Warranties and Covenants.  The Grantors jointly and
severally represent, warrant and covenant to and with the Collateral Agent, for
the benefit of the Secured Parties, that:

 

(a)           Schedule
II correctly sets forth the percentage of the issued and outstanding units
of each class of the Equity Interests of the issuer thereof represented by the
Pledged Stock and includes all Equity Interests, debt securities and promissory
notes required to be pledged hereunder in order to satisfy the Collateral and
Guarantee Requirement;

 

(b)           the
Pledged Stock and Pledged Debt Securities have been duly and validly authorized
and issued by the issuers thereof, are not subject to any preemptive rights,
warrants, options or other rights to purchase of any Person, or equity holder,
voting trust or similar agreements outstanding with respect thereto, except to
the extent not prohibited under the Loan Documents, and (i) in the case of
Pledged Stock of issuers that are corporations, are fully paid and
nonassessable and (ii) in the case of Pledged Debt Securities, are legal,
valid and binding obligations of the issuers thereof; provided, however,
that to the extent the Pledged Stock and Pledged Debt Securities are issued by
Persons which are not Subsidiaries, each representation and warranty made in
this clause (b) is made only to the Grantor’s knowledge;

 

(c)           except
for the security interests granted hereunder, each of the Grantors (i) is
and, subject to any transfers made in compliance with the Credit Agreement,
will continue to be the direct owner, beneficially and of record, of the
Pledged Securities indicated on Schedule II as owned by such Grantor
other than sales, dispositions and other transfers not prohibited by the Credit
Agreement, (ii) holds the same free and clear of all Liens, other than
Liens created by this Agreement, Permitted Encumbrances and transfers made in
compliance with the Credit Agreement, (iii) will make no assignment,
pledge, hypothecation or transfer of, or create or permit to exist any security
interest in or other Lien on, the Pledged Collateral, other than Liens created
by this Agreement, Permitted Encumbrances and transfers made in compliance with
the Credit Agreement, (iv) will 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 (v) has good and indefeasible title to the Pledged
Securities and, to such Loan Party’s knowledge, there exists no “adverse claim”
within the meaning of Section 1-203 of the New York UCC;

 

(d)           except
for restrictions and limitations imposed by the Loan Documents or securities
laws generally, the Pledged Collateral is and will continue to be freely
transferable and assignable, and none of 

 

8

 

the Pledged Collateral is or will be subject
to any option, right of first refusal, shareholders agreement, charter or
by-law provisions or contractual restriction of any nature that might prohibit,
impair, delay or otherwise affect the pledge of such Pledged Collateral
hereunder, the sale or disposition thereof pursuant hereto or the exercise by
the Collateral Agent of rights and remedies hereunder;

 

(e)           each
of the Grantors has the power and authority to pledge the Pledged Collateral
pledged by it hereunder in the manner hereby done or contemplated;

 

(f)            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 of the
Pledged Collateral effected hereby (other than such as have been obtained and
are in full force and effect); and

 

(g)           by
virtue of the execution and delivery by the Grantors of this Agreement, when
any certificated Pledged Securities are delivered to the Collateral Agent in
accordance with this Agreement, the Collateral Agent will obtain a legal, valid
and perfected first priority lien upon and security interest in such Pledged
Securities as security for the payment and performance of the Obligations.

 

SECTION 3.04.       Certification
of Limited Liability Company and Limited Partnership Interests.  Each
interest in any limited liability company or limited partnership in which any
Grantor holds more than a 50% interest in the voting and total equity interests
and pledged hereunder shall be represented by a certificate, shall be a “security”
within the meaning of Article 8 of the New York UCC and shall be governed
by Article 8 of the New York UCC.

 

SECTION 3.05.       Registration
in Nominee Name; Denominations.  The
Collateral Agent, on behalf of the Secured Parties, shall have the right (in
its sole and absolute discretion) to hold the certificated Pledged Securities
in its own name as pledgee, the name of its nominee (as pledgee or as
sub-agent) or the name of the applicable Grantor, endorsed or assigned in blank
or in favor of the Collateral Agent. 
Each Grantor will promptly give to the Collateral Agent copies of any
material notices or other communications received by it in its capacity as
holder of and with respect to Pledged Securities registered in the name of such
Grantor.  The Collateral Agent shall at
all times have the right to exchange the certificates representing certificated
Pledged Securities for certificates of smaller or larger denominations for any
purpose consistent with this Agreement.

 

SECTION 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 Grantors that their rights under this Section 3.06
are being suspended:

 

(i)              Each Grantor shall be entitled to
exercise any and all voting and/or other consensual rights and powers inuring
to an owner of Pledged Securities or any part thereof for any purpose
consistent with the terms of this Agreement, the Credit Agreement and the other
Loan Documents; 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 Securities or the rights and remedies of any
of the Collateral Agent or the other Secured Parties under this Agreement or
the Credit 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
Grantor, or cause to be executed and delivered to such Grantor, all such
proxies, powers of attorney and other instruments as such Grantor may
reasonably request for the purpose of enabling such Grantor to exercise the
voting and/or consensual rights and powers it is entitled to exercise pursuant
to subparagraph (i) above.

 

9

 

(iii)          Each Grantor 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 Securities to the extent and only to the
extent that such dividends, interest, principal and other distributions are
permitted by, and otherwise paid or distributed in accordance with, 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 Stock or Pledged Debt Securities,
whether resulting from a subdivision, combination or reclassification of the
outstanding Equity Interests of the issuer of any Pledged Securities or
received in exchange for Pledged Securities 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, if received by any
Grantor, shall not be commingled by such Grantor with any of its other funds or
property but shall be held separate and apart therefrom, shall be held in trust
for the benefit of the Collateral Agent and, if certificated, 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 Grantors of the suspension of their
rights under paragraph (a)(iii) of this Section 3.06, then all
rights of any Grantor to dividends, interest, principal or other distributions
that such Grantor 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 Grantor contrary to
the provisions of this Section 3.06 shall be held in trust for the
benefit of the Collateral Agent, shall be segregated from other property or
funds of such Grantor 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 8.02 of the Credit Agreement.  After all Events of Default have been cured
or waived, the Collateral Agent shall promptly repay to each Grantor (without
interest) all dividends, interest, principal or other distributions that such
Grantor 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 Grantors of the suspension of their
rights under paragraph (a)(i) of this Section 3.06, all rights
of any Grantor 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 the Required Lenders, the Collateral Agent
shall have the right from time to time following and during the continuance of
an Event of Default to permit the Grantors to exercise such rights.

 

(d)           Any
notice given by the Collateral Agent to the Grantors suspending their rights
under paragraph (a) of this Section 3.06 (i) may be given
by telephone if promptly confirmed in writing, (ii) may be given to one or
more of the Grantors at the same or different times and (iii) may suspend
the rights of the Grantors 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

 

10

 

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

 

SECTION 4.01        Security Interest.  (a) As security for the payment or
performance, as the case may be, in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise of the Obligations, each
Grantor hereby assigns and pledges to the Collateral Agent, its successors and
assigns, for the ratable benefit of the Secured Parties, and hereby grants to
the Collateral Agent, its successors and assigns, for the ratable benefit of
the Secured Parties, a security interest (the “Security Interest”) in
all right, title or interest in or to any and all of the following assets and
properties now owned or at any time hereafter acquired by such Grantor or in
which such Grantor now has or at any time in the future may acquire any right,
title or interest (collectively, the “Article 9 Collateral”):

 

	
  (i)

  	
   

  	
  all
  Accounts;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  all
  Chattel Paper;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  all
  cash and Deposit Accounts;

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  all
  Documents;

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  all
  Equipment;

  
	
   

  	
   

  	
   

  
	
  (vi)

  	
   

  	
  all
  General Intangibles;

  
	
   

  	
   

  	
   

  
	
  (vii)

  	
   

  	
  all
  Instruments;

  
	
   

  	
   

  	
   

  
	
  (viii)

  	
   

  	
  all
  Inventory;

  
	
   

  	
   

  	
   

  
	
  (ix)

  	
   

  	
  all
  Investment Property;

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  Letter
  of Credit rights;

  
	
   

  	
   

  	
   

  
	
  (xi)

  	
   

  	
  all
  commercial tort claims against any Grantor (as identified on Schedule IV
  hereto);

  
	
   

  	
   

  	
   

  
	
  (xii)

  	
   

  	
  all
  books and records pertaining to the Article 9 Collateral; and

  
	
   

  	
   

  	
   

  
	
  (xiii)

  	
   

  	
  to
  the extent not otherwise included, all Proceeds 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;

  

 

Notwithstanding
anything to the contrary contained herein, the security interests granted under
this Agreement shall not extend to and the definition of Collateral and Article 9
Collateral shall not include any permit, lease, license, contract or instrument
now or hereafter in effect of a Grantor if the grant of a security interest in
such permit, lease, license, contract or instrument in a manner contemplated by this Agreement, under
the terms thereof or under applicable Law, is prohibited and would result in the

 

11

 

termination thereof or give the
other parties thereto the right to terminate, accelerate or otherwise
materially and adversely alter such Grantor’s rights, titles and interests
thereunder (including upon the giving of notice or the lapse of time or both);
provided, however that (A) such security interest, to the extent
severable, shall attach immediately to any portion of such permit, lease,
license, contract or instrument that does not result in any of the consequences
specified above; and (B) the foregoing exclusion shall not in any way
limit, impair or otherwise affect the Collateral Agent’s continuing liens upon
rights or interests of the Grantors in or to (I) monies due or to become
due in respect of such permit, lease, license, contract or instrument or (II) any
and all proceeds from the sale, transfer, assignment, license, lease or other
disposition of such permit, lease, license, contract or instrument (provided
that this requirement shall not constitute consent by the Collateral Agent or
any Secured Party to any such sale, transfer, assignment, license, lease or
other disposition that is prohibited by the Loan Documents).

 

(b)           Each
Grantor hereby irrevocably authorizes the Collateral Agent at any time and from
time to time to file in any relevant jurisdiction any initial financing
statements (including fixture filings) with respect to the Article 9
Collateral or any part thereof and amendments thereto that (i) indicate
the Collateral as all assets of such Pledgor, and (ii) contain the
information required by Article 9 of the Uniform Commercial Code of each
applicable jurisdiction for the filing of any financing statement or amendment,
including (A) whether such Grantor is an organization, the type of
organization and any organizational identification number issued to such
Grantor and (B) in the case of a financing statement filed as a fixture
filing, a sufficient description of the real property to which such Article 9
Collateral relates.  Each Grantor agrees
to provide such information to the Collateral Agent promptly upon request.  The Collateral Agent hereby agrees that it
shall not file any “fixture filings” and the Grantors shall have no obligation
to provide information required for any “fixture filings” except in respect of
any fixtures associated with any Mortgaged Property.

 

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

 

The
Collateral Agent is further authorized to file with the United States Patent
and Trademark Office or United States Copyright Office (or any successor office
or any similar office in any other country) such documents substantially in the
form of Exhibit III, IV or V, as applicable, as may
be necessary or advisable for the purpose of perfecting, confirming,
continuing, enforcing or protecting the Security Interest granted by each
Grantor, without the signature of any Grantor, and naming any Grantor or the
Grantors as debtors 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 Grantor with respect to or arising out of
the Article 9 Collateral.

 

SECTION 4.02.       Representations and
Warranties.  The
Grantors jointly and severally represent and warrant to the Collateral Agent
and the Secured Parties that:

 

(a)           Each
Grantor has good and valid rights in and title to the Article 9 Collateral
with respect to which it has purported to grant a Security Interest hereunder
and has full power and authority to grant to the Collateral Agent the Security
Interest in such Article 9 Collateral pursuant hereto and to execute,
deliver and perform its obligations in accordance with the terms of this
Agreement, without the consent or approval of any other Person other than any
consent or approval that has been obtained.

 

(b)           The
Collateral Questionnaire  has been duly
prepared, completed and executed and the information set forth therein,
including the exact legal name of each Grantor, is correct and complete as of
the Closing Date.  Uniform Commercial
Code financing statements (including fixture filings, if required 

 

12

 

under Section 4.01(b)) or other
appropriate filings, recordings or registrations prepared by the Collateral
Agent based upon the information provided to the Collateral Agent in the
Collateral Questionnaire for filing in each governmental, municipal or other
office specified in the Collateral Questionnaire (or specified by notice from
any Borrower to the Collateral Agent after the Closing Date in the case of
filings, recordings or registrations required by Section 6.03 or Section 6.12
of the Credit Agreement), are all the filings, recordings and registrations
(other than filings required to be made in the United States Patent and
Trademark Office and the United States Copyright Office in order to perfect the
Security Interest in Article 9 Collateral consisting of United States
Patents, Trademarks and Copyrights) that are necessary to publish notice of and
protect the validity of and to establish a legal, valid and perfected security
interest in favor of the Collateral Agent (for the ratable benefit of the
Secured Parties) in respect of all Article 9 Collateral in which the
Security Interest may be perfected by filing, recording or registration in the
United States (or any political subdivision thereof) and no further or
subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary in any such jurisdiction, except as provided under
applicable law with respect to the filing of continuation statements.  Each Grantor represents and warrants that a
fully executed agreement in the form of Exhibit III, IV, or V,
as applicable, or in a form reasonably satisfactory to the Collateral Agent
containing a description of all Article 9 Collateral consisting of
Intellectual Property with respect to United States Patents and United States
registered Trademarks (and Trademarks for which United States registration
applications are pending) and United States registered Copyrights have been
delivered to the Collateral Agent for recording by the United States Patent and
Trademark Office and the United States Copyright 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 to protect the validity of and to establish a legal, valid and
perfected security interest in favor of the Collateral Agent (for the ratable
benefit of the Secured Parties) in respect of all Article 9 Collateral
consisting of Patents, Trademarks and Copyrights in which a security interest
may be perfected by filing, recording or registration in the United States (or
any political subdivision thereof) and its territories and possessions, and no
further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary (other than such actions as are necessary to
perfect the Security Interest with respect to any Article 9 Collateral
consisting of Patents, Trademarks and Copyrights (or registration or
application for registration thereof) acquired or developed after the date
hereof).

 

(c)           The
Security Interest constitutes (i) a legal and valid security interest in
all the Article 9 Collateral securing the payment and performance of the
Obligations, (ii) subject to the filings described in Section 4.02(b),
a perfected security interest in all Article 9 Collateral in which a
security interest may be perfected by filing, recording or registering a
financing statement or analogous document in the United States (or any
political subdivision thereof) pursuant to the Uniform Commercial Code and (iii) a
security interest that shall be perfected in all Article 9 Collateral in
which a security interest may be perfected upon the receipt and recording of
this Agreement with the United States Patent and Trademark Office and the
United States Copyright Office, as applicable, within the three-month period
(commencing as of the date hereof) pursuant to 35 U.S.C. § 261 or 15 U.S.C. §
1060 or the one month period (commencing as of the date hereof) pursuant to 17
U.S.C. § 205.  The Security Interest is
and shall be prior to any other Lien on any of the Article 9 Collateral,
other than Permitted Encumbrances that have priority as a matter of law and
Liens expressly permitted to be prior to the Security Interest pursuant to Section 7.02
of the Credit Agreement.

 

(d)           The
Article 9 Collateral is owned by the Grantors free and clear of any Lien,
except for Liens expressly permitted pursuant to Section 7.02 of the
Credit Agreement.  None of the Grantors
has filed or consented to the filing of (i) any financing statement or
analogous document under the Uniform Commercial Code or any other applicable
laws covering any Article 9 Collateral, (ii) any assignment in which
any Grantor collaterally assigns any Collateral or any security agreement or
similar instrument covering any Article 9 Collateral with the United
States Patent and Trademark Office or the United States Copyright Office or (iii) any
assignment in which any Grantor collaterally assigns any Article 9
Collateral 

 

13

 

or any security agreement or similar
instrument covering any Article 9 Collateral with any foreign
governmental, municipal or other office, which financing statement or analogous
document, assignment, security agreement or similar instrument is still in
effect, except, in each case, for Liens expressly permitted pursuant to Section 7.02
of the Credit Agreement.

 

SECTION 4.03.       Covenants.  (a)  Each Grantor agrees promptly to
notify the Collateral Agent in writing of any change (i) in corporate
name, (ii) in the location of its chief executive office, its principal
place of business or any office in which it maintains books or records relating
to Article 9 Collateral owned by it, (iii) in its identity or type of
organization or corporate structure, (iv) in its Federal Taxpayer
Identification Number or organizational identification number or (v) in
its jurisdiction of organization.  Each
Grantor agrees to promptly provide the Collateral Agent with certified
organizational documents reflecting any of the changes described in the first
sentence of this paragraph.  Each Grantor
agrees not to effect or permit any change referred to in the preceding sentence
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 first
priority security interest in all the Article 9 Collateral, subject only
to Permitted Encumbrances.  Each Grantor
agrees promptly to notify the Collateral Agent if any substantial portion of
the Article 9 Collateral owned or held by such Grantor is damaged or
destroyed.

 

(b)           Each
Grantor agrees to (i) maintain, at its own cost and expense, such complete
and accurate records with respect to the Article 9 Collateral owned by it
as is consistent with its current practices and in accordance with such prudent
and standard practices used in industries that are the same as or similar to
those in which such Grantor is engaged, but in any event to include complete
accounting records indicating all payments and proceeds received with respect
to any part of the Article 9 Collateral and (ii) at such time or
times as the Collateral Agent may reasonably request, promptly to prepare and
deliver to the Collateral Agent a duly certified schedule or schedules in form
and detail consistent with each Grantor’s current practices showing the
identity, amount and location of any and all Article 9 Collateral; provided
that upon the occurrence and during the continuance of an Event of Default,
such certified schedules or schedules shall be prepared and delivered in form
and detail reasonably satisfactory to the Collateral Agent.

 

(c)           Each
Grantor shall, at its own expense, take any and all actions necessary to defend
title to the Article 9 Collateral against all Persons and to defend the
Security Interest of the Collateral Agent in the Article 9 Collateral and
the priority thereof against any Lien not expressly permitted pursuant to Section 7.02
of the Credit Agreement.

 

(d)           Each
Grantor 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 to the
extent required by the Credit Agreement, the granting of the Security Interest
and the filing of any financing statements (including fixture filings) or other
documents in connection herewith or therewith; provided that it is
understood and agreed that such actions shall not include the requirement that
any Grantor obtain any third party consent or approval arising under any
Laundry Facility Agreement.  If any
amount payable under or in connection with any of the Article 9 Collateral
shall be or become evidenced by any promissory note or other instrument, such
note or instrument shall be immediately pledged and delivered to the Collateral
Agent, duly endorsed in a manner satisfactory to the Collateral Agent.

 

Without
limiting the generality of the foregoing, each Grantor hereby authorizes the
Collateral Agent, with prompt notice thereof to the Grantors, to supplement
this Agreement by supplementing 

 

14

 

Schedule III or adding
additional schedules hereto to specifically identify any asset or item that may
constitute Copyrights, Licenses, Patents or Trademarks; provided that
any Grantor shall have the right, exercisable within 10 days after it has been
notified in writing by the Collateral Agent of the specific identification of
such Collateral, to advise the Collateral Agent in writing of any inaccuracy of
the representations and warranties made by such Grantor hereunder with respect
to such Collateral.  Each Grantor agrees
that it will use commercially reasonable efforts to take such action as shall
be necessary in order that all representations and warranties hereunder shall
be true and correct with respect to such Collateral within 30 days after the
date it has been notified in writing by the Collateral Agent of the specific
identification of such Collateral.

 

(e)           [reserved]

 

(f)            At
its option, the Collateral Agent may, after notice and demand to the Grantors
to do so, discharge past due taxes, assessments, charges, fees, Liens, security
interests or other encumbrances at any time levied or placed on the Article 9
Collateral and not permitted pursuant to Section 7.02 of the Credit
Agreement, and, after notice and demand to the Grantors to do so, may pay for
the maintenance and preservation of the Article 9 Collateral to the extent
any Grantor fails to do so as required by the Credit Agreement or this
Agreement, and each Grantor jointly and severally agrees to reimburse the
Collateral Agent on demand for any payment made or any expense incurred by the
Collateral Agent pursuant to the foregoing authorization; provided that
nothing in this paragraph shall be interpreted as excusing any Grantor from the
performance of, or imposing any obligation on the Collateral Agent or any
Secured Party to cure or perform, any covenants or other promises of any Grantor
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.

 

(g)           If
at any time any Grantor shall take a security interest in any property of an
Account Debtor or any other Person to secure payment and performance of an
Account, such Grantor shall promptly assign such security interest to the
Collateral Agent.  Such assignment need
not be filed of public record unless necessary to continue the perfected status
of the security interest against creditors of and transferees from the Account
Debtor or other Person granting the security interest.

 

(h)           Each
Grantor 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 Article 9 Collateral, all in accordance with
the terms and conditions thereof (except as otherwise permitted by the Credit
Agreement), and each Grantor jointly and severally agrees to indemnify and hold
harmless the Collateral Agent and the Secured Parties from and against any and
all liability for such performance.

 

(i)            None
of the Grantors shall make or permit to be made any transfer, assignment,
pledge or hypthecation of the Article 9 Collateral and each Grantor shall
remain at all times in possession of the Article 9 Collateral owned by it,
except that unless and until the Collateral Agent shall notify the Grantors
(which notice may be given by telephone if promptly confirmed in writing) that
an Event of Default shall have occurred and be continuing and that during the
continuance thereof the Grantors shall not sell, convey, lease, assign,
transfer or otherwise dispose of any Article 9 Collateral without the
prior consent of the Collateral Agent, the Grantors may use and dispose of the Article 9
Collateral in any lawful manner not inconsistent with the provisions of this
Agreement, the Credit Agreement or any other Loan Document.  Without limiting the generality of the foregoing,
each Grantor agrees that it shall not permit any Inventory to be in the
possession or control of any warehouseman, agent, bailee, or processor at any
time unless such warehouseman, bailee, agent or processor shall have been
notified of the Security Interest and shall have acknowledged in writing, in
form and substance reasonably satisfactory to the Collateral Agent, that such
warehouseman, agent, bailee or processor holds the Inventory for the benefit 

 

15

 

of the Collateral Agent subject to the
Security Interest and shall act upon the instructions of the Collateral Agent
without further consent from the Grantor, and that such warehouseman, agent,
bailee or processor further agrees to waive and release any Lien held by it
with respect to such Inventory, whether arising by operation of law or
otherwise.

 

(j)            None
of the Grantors will, without the Collateral Agent’s prior written consent,
grant any extension of the time of payment of any Accounts included in the Article 9
Collateral, compromise, compound or settle the same for less than the full
amount thereof, release, wholly or partly, any Person liable for the payment
thereof or allow any credit or discount whatsoever thereon, other than
extensions, compromises, settlements, releases, credits or discounts granted or
made in the ordinary course of business and consistent with its current
practices.

 

(k)           The
Grantors, 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 the requirements set forth in Schedule V hereto and Section 6.07
of the Credit Agreement.  Each Grantor
irrevocably makes, constitutes and appoints the Collateral Agent (and all
officers, employees or agents designated by the Collateral Agent) as such
Grantor’s true and lawful agent (and attorney-in-fact) for the purpose, upon
the occurrence and during the continuance of an Event of Default, of making,
settling and adjusting claims in respect of Article 9 Collateral under
policies of insurance, endorsing the name of such Grantor 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 Grantor at any time or
times shall fail to obtain or maintain any of the policies of insurance
required hereby or under the Credit Agreement 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 Grantors 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 Grantors to the Collateral Agent
and shall be additional Obligations secured hereby.

 

(l)            Each
Grantor shall maintain, in form and manner reasonably satisfactory to the
Collateral Agent, records of its Chattel Paper and its books, records and
documents evidencing or pertaining thereto.

 

(m)          Each Grantor shall execute and deliver
(and cause to be executed and delivered) all agreements, assignments,
instruments or other documents as the Collateral Agent shall request for the
purpose of obtaining and maintaining control within the meaning of the New York
UCC with respect to any Article 9 Collateral consisting of Investment
Property, Letter-of-Credit Rights and Electronic Chattel Paper.

 

SECTION 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 Grantor agrees, in each case at such Grantor’s own
expense, to take the following actions with respect to the following Article 9
Collateral:

 

(a)           Instruments.  If any Grantor shall at any time hold or
acquire any Instruments, such Grantor shall forthwith endorse, assign and
deliver the same to the Collateral Agent, accompanied by such instruments of
transfer or assignment duly executed in blank as the Collateral Agent may from
time to time reasonably request.

 

(b)           Deposit
Accounts.  Schedule VI
identifies each deposit account of the Grantors as of the date hereof.  In accordance with Section 6.12 of the
Credit Agreement, for each deposit account held by any Grantor at Wachovia
Bank, National Association and for each deposit account that any Grantor at any

 

16

 

time opens or maintains after the date hereof
as the Collateral Agent may reasonably require, such Grantor shall, in
accordance with Section 6.12 of the Credit Agreement, either (i) cause
the depositary bank to agree to comply with instructions from the Collateral
Agent to such depositary bank directing the disposition of funds from time to
time credited to such deposit account, without further consent of such Grantor
or any other Person, pursuant to a Deposit Account Control Agreement, or (ii) arrange
for the Collateral Agent to become the customer of the depositary bank with
respect to the deposit account, with the Grantor being permitted, only with the
consent of the Collateral Agent, to exercise rights to withdraw funds from such
deposit account.  The Collateral Agent
agrees with each Grantor that the Collateral Agent shall not give any such
instructions or withhold any withdrawal rights from any Grantor unless an Event
of Default has occurred and is continuing. 
The provisions of this paragraph shall not apply to deposit accounts for
which the Collateral Agent is the depositary. 
Each Grantor agrees to use its best efforts to cause any amounts in any
deposit account for which a Deposit Account Control Agreement is not required
to be executed and delivered pursuant to the provisions of this paragraph to be
remitted on a regular basis in a manner consistent with its past practice to a
deposit account for which a Deposit Account Control Agreement has been executed
and delivered.  Notwithstanding the
forgoing or anything in any Loan Document to the contrary, in no event shall
any Grantor be required to obtain a Deposit Account Control Agreement with
respect to accounts established solely for the purpose of funding payroll,
payroll taxes and other compensation and benefits to employees.

 

(c)           Investment
Property.  Except to the extent
otherwise provided in Article III, if any Grantor shall at any time
hold or acquire any certificated securities, such Grantor shall forthwith
endorse, assign and deliver the same to the Collateral Agent, accompanied by
such instruments of transfer or assignment duly executed in blank as the
Collateral Agent may from time to time specify. 
If any securities (other than securities held in an Account) now or
hereafter acquired by any Grantor are uncertificated and are issued to such
Grantor or its nominee directly by the issuer thereof, such Grantor shall
immediately notify the Collateral Agent thereof and, at the Collateral Agent’s
request and option, pursuant to an agreement in form and substance reasonably
satisfactory to the Collateral Agent, either (i) cause the issuer to agree
to comply with instructions from the Collateral Agent as to such securities,
without further consent of any Grantor or such nominee, or (ii) arrange
for the Collateral Agent to become the registered owner of the securities.  If any securities, whether certificated or
uncertificated, or other investment property now or hereafter acquired by any
Grantor are held by such Grantor or its nominee through a securities
intermediary or commodity intermediary, such Grantor shall immediately notify
the Collateral Agent thereof and, at the Collateral Agent’s request and option,
pursuant to an agreement in form and substance reasonably satisfactory to the
Collateral Agent, either (i) cause such securities intermediary or (as the
case may be) commodity intermediary to agree to comply with entitlement orders
or other instructions from the Collateral Agent to such securities intermediary
as to such security entitlements, or (as the case may be) to apply any value
distributed on account of any commodity contract as directed by the Collateral
Agent to such commodity intermediary, in each case without further consent of
any Grantor or such nominee, or (ii) in the case of Financial Assets or
other Investment Property held through a securities intermediary, arrange for
the Collateral Agent to become the entitlement holder with respect to such
investment property, with the Grantor being permitted, only with the consent of
the Collateral Agent, to exercise rights to withdraw or otherwise deal with
such investment property.  The Collateral
Agent agrees with each of the Grantors that the Collateral Agent shall not give
any such entitlement orders or instructions or directions to any such issuer,
securities intermediary or commodity intermediary, and shall not withhold its
consent to the exercise of any withdrawal or dealing rights by any Grantor,
unless an Event of Default has occurred and is continuing, or, after giving
effect to any such investment and withdrawal rights would occur.  The provisions of this paragraph shall not
apply to any financial assets credited to a securities account for which the
Collateral Agent is the securities intermediary.

 

17

 

(d)           Electronic
Chattel Paper and Transferable Records. 
If any Grantor at any time holds or acquires an interest in any
electronic chattel paper or any “transferable record,” as that term is defined
in Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act
as in effect in any relevant jurisdiction, such Grantor shall promptly notify
the Collateral Agent thereof and, at the request of the Collateral Agent, shall
take such action as the Collateral Agent may reasonably request to vest in the
Collateral Agent control under New York UCC Section 9-105 of such
electronic chattel paper or control under Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or, as the case may
be, Section 16 of the Uniform Electronic Transactions Act, as so in effect
in such jurisdiction, of such transferable record.  The Collateral Agent agrees with such Grantor
that the Collateral Agent will arrange, pursuant to procedures reasonably
satisfactory to the Collateral Agent and so long as such procedures will not
result in the Collateral Agent’s loss of control, for the Grantor to make
alterations to the electronic chattel paper or transferable record permitted
under UCC Section 9-105 or, as the case may be, Section 201 of the
Federal Electronic Signatures in Global and National Commerce Act or Section 16
of the Uniform Electronic Transactions Act for a party in control to allow
without loss of control, unless an Event of Default has occurred and is
continuing or would occur after taking into account any action by such Grantor
with respect to such electronic chattel paper or transferable record.

 

(e)           Letter-of-Credit
Rights.  If any Grantor is at any
time a beneficiary under a letter of credit now or hereafter issued in favor of
such Grantor, such Grantor shall promptly notify the Collateral Agent thereof
and, at the request and option of the Collateral Agent, such Grantor shall,
pursuant to an agreement in form and substance reasonably satisfactory to the
Collateral Agent, either (i) arrange for the issuer and any confirmer of
such letter of credit to consent to an assignment to the Collateral Agent of
the proceeds of any drawing under the letter of credit or (ii) arrange for
the Collateral Agent to become the transferee beneficiary of the letter of
credit, with the Collateral Agent agreeing, in each case, that the proceeds of
any drawing under the letter of credit are to be paid to the applicable Grantor
unless an Event of Default has occurred or is continuing.

 

(f)            Commercial
Tort Claims.  If any Grantor shall at
any time hold or acquire a commercial tort claim in an amount reasonably
estimated to exceed $250,000, the Grantor shall promptly notify the Collateral
Agent thereof in a writing signed by such Grantor including a summary
description of such claim and grant to the Collateral Agent in such writing a
security interest therein and in the proceeds thereof, all upon the terms of
this Agreement, with such writing to be in form and substance reasonably
satisfactory to the Collateral Agent.

 

SECTION 4.05.       Covenants Regarding
Patent, Trademark and Copyright Collateral.

 

(a)           Each
Grantor 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 Patent that is material to the
conduct of such Grantor’s business, as determined by such Grantor in its
reasonable business judgment, may lapse or become dedicated to the public prior
to such Patent’s natural expiration, and agrees that it shall continue to mark
any products covered by such Patent with the relevant patent number as
necessary and sufficient to establish and preserve its maximum rights under
applicable patent laws.

 

(b)           Each
Grantor (either itself or through its licensees or its sublicensees) will, for
each Trademark material to the conduct of such Grantor’s business as determined
by such Grantor in its reasonable business judgment, (i) maintain such
Trademark in full force free from any claim of abandonment or invalidity for
non-use, maintain the quality of products and services offered under such
Trademark, display such Trademark with notice of Federal or foreign
registration to the extent necessary 

 

18

 

and sufficient to establish and preserve its
maximum rights under applicable law and (ii) not knowingly use or
knowingly permit the use of such Trademark in violation of any third party
rights.

 

(c)           Each
Grantor (either itself or through its licensees or sublicensees) will, for each
work covered by a Copyright material to the conduct of such Grantor’s business,
as determined by such Grantor in its reasonable business judgment, continue to
publish, reproduce, display, adopt and distribute such work with appropriate
copyright notice as necessary and sufficient to establish and preserve its
rights under applicable copyright laws.

 

(d)           Each
Grantor shall notify the Collateral Agent promptly if it knows or has reason to
know that any Patent, Trademark or Copyright material to the conduct of its
business, as determined by such Grantor in its reasonable business judgment,
may become abandoned, lost or dedicated to the public, or of any materially
adverse determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, United States Copyright Office or any court or similar office
of any country) regarding such Grantor’s ownership of any such Patent,
Trademark or Copyright, its right to register the same, or its right to keep
and maintain the same.

 

(e)           In
no event shall any Grantor, either itself or through any agent, employee,
licensee or designee, file an application for any Patent, Trademark or
Copyright (or for the registration of any Trademark or Copyright) with the
United States Patent and Trademark Office, United States Copyright Office or
any office or agency in any political subdivision of the United States or in
any other country or any political subdivision thereof, unless it promptly
informs the Collateral Agent, and, upon request of the Collateral Agent,
executes and delivers 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 Patent, Trademark or Copyright, and each Grantor
hereby appoints the Collateral Agent as its attorney-in-fact to execute and
file such requested writings for the foregoing purposes, all acts of such
attorney being hereby ratified and confirmed; such power, being coupled with an
interest, is irrevocable.

 

(f)            Each
Grantor will take all necessary steps that are consistent with past 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 or in any other country or any political subdivision thereof (i) to
maintain and pursue each material application relating to the Patents,
Trademarks and/or Copyrights (and to obtain the relevant grant or registration)
and (ii) to maintain each issued Patent and each registration of the
Trademarks and Copyrights, in each case, that is material to the conduct of any
Grantor’s business, as determined by such Grantor in its reasonable business
judgment, including timely filings of applications for renewal, affidavits of
use, affidavits of incontestability and payment of maintenance fees, and, if
consistent with such Grantor’s reasonable business judgment, to initiate
opposition, interference and cancellation proceedings against third parties.

 

(g)           In
the event that any Grantor knows or has reason to believe that any Article 9
Collateral consisting of a Patent, Trademark or Copyright material to the
conduct of any Grantor’s business, as determined by such Grantor in its
reasonable business judgment, has been or is about to be infringed,
misappropriated or diluted by a third party, such Grantor promptly shall notify
the Collateral Agent and shall, if consistent with such Grantor’s reasonable
business judgment, promptly sue for infringement, misappropriation or dilution
and to recover any and all damages for such infringement, misappropriation or
dilution, and take such other actions as are appropriate under the
circumstances to protect such Article 9 Collateral.

 

(h)           Upon
the occurrence and during the continuance of an Event of Default, each Grantor
shall use commercially reasonable efforts to obtain all requisite consents or
approvals by the licensor of

 

19

 

each Copyright License, Patent License or
Trademark License to effect the assignment of all such Grantor’s right, title
and interest thereunder to the Collateral Agent or its designee.

 

ARTICLE V

 

Remedies

 

SECTION 5.01        Remedies Upon Default.  (a)  Upon the occurrence and during the
continuance of an Event of Default, each Grantor 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 to take any of or all the following
actions at the same or different times:  (i) with
respect to any Article 9 Collateral consisting of Intellectual Property,
on demand, to cause the Security Interest to become an assignment, transfer and
conveyance of any of or all such Article 9 Collateral by the applicable
Grantors to the Collateral Agent, or to license or sublicense, whether general,
special or otherwise, and whether on an exclusive or nonexclusive basis, any
such Article 9 Collateral throughout the world on such terms and
conditions and in such manner as the Collateral Agent shall determine (other
than in violation of any then-existing licensing arrangements to the extent
that waivers cannot be obtained), and (ii) with or without legal process
and with or without prior notice or demand for performance, to take possession
of the Article 9 Collateral and without liability to any Grantor for
trespass to enter any premises where the Article 9 Collateral may be
located for the purpose of taking possession of or removing the Article 9
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 Grantor 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 such sale of
Collateral shall hold the property sold absolutely, free from any claim or
right on the part of any Grantor, and each Grantor hereby waives (to the extent
permitted by law) all rights of redemption, stay and appraisal which such
Grantor now has or may at any time in the future have under any rule of
law or statute now existing or hereafter enacted.

 

(b)           The
Collateral Agent shall give the applicable Grantors 10 days’ written notice
(which each Grantor 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, 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 

 

20

 

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
Grantor (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 Grantor 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 Grantor
therefor.  In the event that the proceeds of any sale, collection or realization
are insufficient to pay all amounts to which the Collateral Agent or the
Secured Parties are legally entitled, the Grantors shall be jointly and
severally liable for the deficiency (subject to Section 7.16
hereof), together with interest thereon at the Default Rate, together with the
costs of collection and attorneys’ fees. 
Any surplus remaining after the full payment and satisfaction of the
Obligations shall be returned to the Grantors or to whomsoever a court of
competent jurisdiction shall determine to be entitled thereto.  For purposes hereof, 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 Grantor 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 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.  Any sale
pursuant to the provisions of this Section 5.01 shall be deemed to
conform to the commercially reasonable standards as provided in Section 9-610(b) of
the New York UCC or its equivalent in other jurisdictions.

 

SECTION 5.02.       Application of Proceeds.  The Collateral Agent shall apply the proceeds
of any collection or sale of or foreclosure or other realization upon any
Collateral, including any Collateral consisting of cash as provided in Section 8.02
of the Credit Agreement.

 

SECTION 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 and upon the occurrence and during the continuation of an Event of
Default, each Grantor hereby grants to the Collateral Agent an irrevocable,
nonexclusive license (exercisable without payment of royalty or other
compensation to the Grantors) to use, license or sublicense any of the Article 9
Collateral consisting of Intellectual Property now owned or hereafter acquired
by such Grantor, and wherever the same may be located, and including in such
license 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, only upon the occurrence and only during the continuation of
an Event of Default; provided that any license, sublicense or other transaction
entered into by the Collateral Agent in accordance herewith shall be binding
upon the Grantors notwithstanding any subsequent cure of an Event of Default.

 

SECTION 5.04.       Securities Act.  In view of the position of the Grantors 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.

 

21

 

Each Grantor 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 Grantor
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 account, for investment, and not with a view to the
distribution or resale thereof.  Each
Grantor 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 Grantor 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.

 

SECTION 5.05.       Registration.  Each Grantor 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
Grantor 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 of one outside counsel and reasonably necessary
special and local counsel to the Collateral Agent), 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 Grantor or the
issuer of such Pledged Collateral by the Collateral Agent or any other Secured
Party expressly for use therein.  Each Grantor
further agrees, upon such written request referred to above, to use its best
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 Grantor will bear all costs and expenses of carrying out its
obligations under this Section 5.05.  Each Grantor 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.

 

22

 

ARTICLE VI

Indemnity, Subrogation and Subordination

 

SECTION 6.01        Indemnity and
Subrogation.  In
addition to all such rights of indemnity and subrogation as the Guarantors may
have under applicable law (but subject to Section 6.03), the
Borrowers agree that (a) in the event a payment shall be made by any
Guarantor under this Agreement, the Borrowers shall, jointly and severally,
indemnify such Guarantor for the full amount of such payment and such Guarantor
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 Grantor shall be sold pursuant to this Agreement or any other Security
Document to satisfy in whole or in part an obligation owed to any Secured
Party, the Borrowers shall, jointly and severally, indemnify such Grantor in an
amount equal to the greater of the book value or the fair market value of the
assets so sold.

 

SECTION 6.02.       Contribution and
Subrogation.  Each
Guarantor and Grantor (a “Contributing Party”) agrees (subject to Section 6.03)
that, in the event a payment shall be made by any other Guarantor hereunder in
respect of any Obligation or assets of any other Grantor shall be sold pursuant
to any Security Document to satisfy any Obligation owed to any Secured Party
and such other Guarantor or Grantor (the “Claiming Party”) shall not
have been fully indemnified by the Borrowers 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
Guarantors and Grantors on the date hereof (or, in the case of any Guarantor or
Grantor becoming a party hereto pursuant to Section 7.14, the date
of the supplement hereto executed and delivered by such Guarantor or
Grantor).  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.

 

SECTION 6.03.       Subordination.  (a)  Notwithstanding any provision of
this Agreement to the contrary, all rights of the Guarantors and Grantors 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 indefeasible payment in full in cash of the
Obligations.  No failure on the part of
any Borrower or any Guarantor or Grantor 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
Guarantor or Grantor with respect to its obligations hereunder, and each
Guarantor and Grantor shall remain liable for the full amount of the
obligations of such Guarantor or Grantor hereunder.

 

(b)           Each
Guarantor and Grantor hereby agrees that all Indebtedness and other monetary
obligations owed by it to any other Guarantor, Grantor or any other Subsidiary
shall be fully subordinated to the indefeasible payment in full in cash of the
Obligations, except as otherwise permitted under the Credit Agreement.

 

ARTICLE VII

Miscellaneous

 

SECTION 7.01        Notices.  All communications and notices hereunder
shall (except as otherwise expressly permitted herein) be in writing and given as
provided in Section 10.02 of the Credit 

 

23

 

Agreement. 
All communications and notices hereunder to any Guarantor shall be given
to it in care of the Parent Borrower as provided in Section 10.02 of the
Credit Agreement.

 

SECTION 7.02.       Waivers; Amendment.  (a)  No failure or delay by the
Collateral Agent, the L/C Issuer or any Lender 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 Collateral Agent, the L/C Issuer and the Lenders 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.  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 10.01 of the Credit Agreement.

 

SECTION 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 10.04 of the Credit Agreement.

 

(b)           The
parties hereto agree that the Collateral Agent and the other Indemnitees (as
defined in Section 10.04(b) of the Credit Agreement) shall be
entitled to indemnification as provided in Section 10.04 of the Credit Agreement.

 

(c)           Any
such amounts payable as provided hereunder shall be additional 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 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
within 10 days of written demand therefor.

 

SECTION 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 Guarantor, Grantor or the Collateral Agent
that are contained in this Agreement shall bind and inure to the benefit of
their respective successors and assigns.

 

SECTION 7.05.       Survival of Agreement.  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 the other Secured Parties 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 other Secured Party or on its behalf and shall continue in full
force and effect as long as the principal of or any accrued interest on any
Loan or 

 

24

 

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.

 

SECTION 7.06.       Counterparts;
Effectiveness; Several Agreement.  This Agreement may be executed in
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 transmission shall be as effective as delivery of a
manually signed 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 on behalf of the Collateral Agent, and thereafter shall be binding
upon such Loan Party and the Collateral Agent and their respective permitted
successors and assigns, and shall inure to the benefit of such Loan Party, the
Collateral Agent and the other Secured Parties and their respective 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.

 

SECTION 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
uneforceability 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.  The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 7.08.       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
Guarantor against any of and all the obligations of such Guarantor now or
hereafter existing under this agreement owed to such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement and
although such obligations may be unmatured. 
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.

 

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

 

(a)           GOVERNING
LAW.  THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)           SUBMISSION
TO JURISDICTION.  EACH OF THE
GUARANTORS AND THE GRANTORS IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF
AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF SUCH STATE 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 IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN 

 

25

 

RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE 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.  NOTHING IN THIS
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO
BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST THE BORROWERS OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE
COURTS OF ANY JURISDICTION.

 

(c)           WAIVER
OF VENUE.  EACH OF THE GUARANTORS AND
THE GRANTORS IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY 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 APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

 

(d)           SERVICE
OF PROCESS.  EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 10.02 OF THE CREDIT AGREEMENT. 
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

SECTION 7.10.       WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY).  EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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
AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 7.10.

 

SECTION 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.

 

SECTION 7.12.       Security Interest
Absolute.  All rights
of the Collateral Agent hereunder, the Security Interest, the grant of a
security interest in the Pledged Collateral and all obligations of each Grantor
and Guarantor hereunder shall be absolute and unconditional irrespective of (a) any
lack of validity or enforceability of the Credit Agreement, any other Loan
Document, any agreement with respect to any of the Obligations or any other
agreement or instrument relating to any of

 

26

 

the foregoing, (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 the Credit Agreement, any other Loan Document or any other
agreement or instrument, (c) any exchange, release or non-perfection of
any Lien on other collateral, or any release or amendment or waiver of or
consent under or departure from any guarantee, securing or guaranteeing all or
any of the Obligations, or (d) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Grantor or Guarantor
in respect of the Obligations or this Agreement.

 

SECTION 7.13.       Termination or Release.  (a)  This Agreement, the Guarantees made
herein, the Security Interest and all other security interests granted hereby
shall terminate when all the Obligations have been paid in full and the Lenders
have no further commitment to lend under the Credit Agreement, the L/C
Obligations have been reduced to zero (unless such Letter of Credit has been
Cash Collateralized to the reasonable satisfaction of the L/C Issuer) and the
L/C Issuer has no further obligations to issue Letters of Credit under the
Credit Agreement.

 

(b)           A
Guarantor shall automatically be released from its obligations hereunder and
the Security Interest in the Collateral of such Guarantor shall be
automatically released upon the consummation of any transaction permitted by
the Credit Agreement as a result of which such Guarantor ceases to be a
Subsidiary of any 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 Grantor of any Collateral that is permitted
under the Credit Agreement, or upon the effectiveness of any written consent to
the release of the security interest granted hereby in any Collateral pursuant
to Section 10.01 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), the Collateral Agent shall promptly execute and deliver to any Grantor, at
such Grantor’s expense, all documents and instruments that such Grantor shall
reasonably request to evidence such termination or release.  Any execution and delivery of documents
pursuant to this Section 7.13 shall be without recourse to or
warranty by the Collateral Agent.

 

SECTION 7.14.       Additional Subsidiaries.  Pursuant to Section 6.12 of the Credit
Agreement, each Subsidiary of a Loan Party that was not in existence or not a
Subsidiary on the date of the Credit Agreement and is not a Foreign Subsidiary
is required to enter in this Agreement as a Guarantor upon becoming such a
Subsidiary.  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 Guarantor hereunder with the same force
and effect as if originally named as a Guarantor herein.  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 Loan Party as a party to this Agreement.

 

SECTION 7.15.       Collateral Agent
Appointed Attorney-in-Fact.  Each Grantor hereby appoints the Collateral
Agent the attorney-in-fact of such Grantor for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instrument
that the Collateral Agent may deem necessary or advisable to accomplish the
purposes hereof, which appointment is irrevocable and coupled with an interest.  Without limiting the generality of the
foregoing, the Collateral Agent shall have the right, 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 Grantor (a) to
receive, endorse, assign and/or deliver any and all notes, acceptances, checks,
drafts, money orders or 

 

27

 

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 Grantor 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 Grantor to notify, Account Debtors 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, and
neither they nor their Related Parties shall be responsible to any Grantor for
any act or failure to act hereunder, except for their own gross negligence or
willful misconduct.

 

SECTION 7.16.       Joint and Several
Obligations of Grantors.

 

(a)           Subject to subsection (c) of
this Section 7.16, each of the Grantors is accepting joint and
several liability hereunder in consideration of the financial accommodation to
be provided by the Secured Parties, for the mutual benefit, directly and
indirectly, of each of the Grantors and in consideration of the undertakings of
each of the Grantors to accept joint and several liability for the obligations
of each of them.

 

(b)           Subject to subsection (c) of
this Section 7.16, each of the Grantors jointly and severally
hereby irrevocably and unconditionally accepts, not merely as a surety but also
as a co-debtor, joint and several liability with the other Grantors with
respect to the payment and performance of all of the Obligations arising under
this Agreement, the other Loan Documents and any other documents relating to
the Obligations, it being the intention of the parties hereto that all the
Obligations shall be the joint and several obligations of each of the Grantors
without preferences or distinction among them.

 

(c)           Notwithstanding any provision to the contrary
contained herein, in any other of the Loan Documents or in any other documents
relating to the Obligations, the obligations of each Grantor under the Credit Agreement, the other Loan
Documents and the other documents relating to the Obligations shall be
limited to an aggregate amount equal to the largest amount that would not
render such obligations subject to avoidance under Section 548 of the
United States Bankruptcy Code or any comparable provisions of any applicable
state law.

 

28

 

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

 

	
   

  	
  MAC-GRAY
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael J. Shea

  
	
   

  	
   

  	
  Name:

  	
  Michael
  J. Shea

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MAC-GRAY
  SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael J. Shea

  
	
   

  	
   

  	
  Name:

  	
  Michael
  J. Shea

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INTIRION
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael J. Shea

  
	
   

  	
   

  	
  Name:

  	
  Michael
  J. Shea

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK
  OF AMERICA, N.A., as

  
	
   

  	
  Collateral
  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William Faidell, Jr.

  
	
   

  	
   

  	
  Name:

  	
  William
  Faidell, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Assistant
  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]