Document:

exv10w9

 

Exhibit 10.9

TRADEMARK SECURITY AGREEMENT AND LICENSE

     This TRADEMARK SECURITY AGREEMENT AND LICENSE (hereinafter referred to as the
“Agreement”) is made as of August 2, 2007 by LEASECOMM CORPORATION, a Massachusetts
corporation (the “Obligor”), in favor of SOVEREIGN BANK, in its capacity as agent for and
representative of (in such capacity, the “Agent”) the Lenders under the Credit Agreement
dated as of the date hereof among TimePayment Corp., a Delaware corporation (the
“Borrower”) the Agent and the Lenders named therein (the “Credit Agreement”).
Unless otherwise defined herein, the terms defined in the Credit Agreement are used herein as
defined in the Credit Agreement

WITNESSETH:

     WHEREAS, the Borrower, the Agent, the Lenders are parties to a Credit Agreement, dated as of
even date herewith (as amended, modified or supplemented from time to time, the “Credit
Agreement”);

     WHEREAS, the Borrower and the Obligor will benefit, directly or indirectly, from the
extensions of credit to be made under the Credit Agreement;

     WHEREAS, the Borrower has entered into a Security Agreement, of even date herewith, with the
Agent (as the same may be amended, modified, supplemented, or restated from time to time, the
“Security Agreement”), pursuant to which the Borrower has granted to the Agent for the
benefit of the Agent and the Lenders, a security interest in certain TM Collateral (as hereafter
defined) of the Borrower and has agreed to execute and cause to be filed further documents required
to be recorded or filed, in order to perfect and maintain the security interests granted under the
Security Agreement;

     WHEREAS, in order to induce the Agent and the Lenders to enter into the Credit Agreement, the
Borrower has also agreed to grant a security interest in and collaterally assign the TM Collateral
to secure the Borrower’s obligations under the Loan Documents, including, without limitation, its
obligations under the Notes issued by the Borrower pursuant to the Credit Agreement and to place in
the public record of the Patent and Trademark Office (as defined below) the security interest
granted hereunder; and

     WHEREAS, the Borrower wishes to grant the Agent for the benefit of the Lenders, a
non-exclusive license in and to all of its trademarks, including, without limitation, all
unregistered trademarks of the Borrower; provided, however, that, unless an Event
of Default has occurred and is continuing, the foregoing license shall not be exercised and shall
be effective only to the extent necessary to perfect the Agent’s security interest in the TM
Collateral under applicable law.

     NOW THEREFORE, for good and valuable consideration, and to secure the payment and performance
of all the Secured Obligations (as defined below), the parties hereto agree as follows:

 

 

     Section 1. Definitions. All capitalized terms used herein and not otherwise defined
shall have the meanings prescribed therefor in the Credit Agreement. The following additional
terms, as used herein, shall have the following respective meanings:

     “Business Judgment Exception” shall have the meaning set forth in Section 4
below.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), or preference, priority or other
security agreement of any kind or nature whatsoever (including without limitation, any
exclusive license, shop right or covenant by the Borrower not to sue third Persons).

     “Patent and Trademark Office” means the United States Patent and Trademark
Office.

     “Permitted Lien” means any Lien that is a Permitted Encumbrance under the
Credit Agreement.

     “Secured Obligations” means all Obligations of the Borrower under or in respect
of the Credit Agreement and all other Loan Documents, including the prompt payment or
performance in full when due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including the payment of amounts that would
become due but for the operation of the automatic stay under Section 362(a) of the
Bankruptcy Code, 11 U.S.C. 362(a)), of all obligations and liabilities of every nature of
the Borrower now or hereafter existing under or arising out of or in connection with the
Credit Agreement and all other Loan Documents and all extensions or renewals thereof,
whether for principal, interest (including without limitation interest that, but for the
filing of a petition in bankruptcy with respect to the Borrower, would accrue on such
obligations), fees, expenses, indemnities or otherwise, whether voluntary or involuntary,
direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not
jointly owed with others, and whether or not from time to time decreased or extinguished and
later increased, created or incurred, and all or any portion of such obligations or
liabilities that are paid, to the extent all or any part of such payment is avoided or
recovered directly or indirectly from the Secured Party or any Lender as a preference,
fraudulent transfer or otherwise (all such obligations and liabilities being the
“Underlying Debt”), and all obligations of every nature of the Borrower now or
hereafter existing under this Agreement.

     “Trademark License” means any agreement, whether written or oral, providing for
the grant by the Borrower to any Person or Persons of any right to use any Trademark,
including, without limitation, the Trademarks described in Schedule I hereto.

     “Trademarks” means all of the following to the extent owned by the Borrower:

all trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, logos, other source
or business identifiers, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in

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connection therewith, including, without limitation, registrations,
recordings and applications in the Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any
other country or any political subdivision thereof, including, without
limitation, those described Schedule I hereto, and all reissues,
extensions or renewals thereof.

     Section 2. Grant of Security Interest. In furtherance and as confirmation of the
security interests granted by the Borrower under the Security Agreement and in order to secure the
prompt and complete payment and performance of all the Secured Obligations, together with any and
all reasonable expenses which may be incurred by the Agent or the Lenders in collecting any or all
of such Secured Obligations or enforcing any rights, obligations or liabilities under this
Agreement, the Borrower hereby grants a security interest to the Agent, for the benefit of the
Lenders, in (including, without limitation, a collateral assignment and pledge of) all of the
Borrower’s present and future right, title and interest in and to the following whether presently
existing or hereafter arising or acquired (collectively, the “TM Collateral”):

     (a) all registered or unregistered Trademarks of the Borrower and, where applicable, the
federal registrations thereof, including, without limitation, the federal registrations
listed on Schedule I attached hereto (the “Registered Trademarks”);

     (b) the Borrower’s rights under any licenses that the Borrower has granted, or will in
the future grant, to any Person or Persons with respect to the Trademarks (the “Trademark
Licenses”);

     (c) all of the goodwill of the business connected with the use of, and symbolized by,
each Trademark and Trademark License;

     (d) all products and proceeds of each Trademark and Trademark License, including,
without limitation, any claim by the Borrower against third parties for past, present or
future infringement or dilution of any Trademark, including, without limitation, the
Registered Trademarks, and any Trademark licensed under any Trademark License, or for injury
to the goodwill associated with any Trademark or any Trademark licensed under any Trademark
License;

     (e) all causes of action, claims and warranties now or hereafter owned or acquired by
the Borrower in respect of any of the items listed above; and

     (f) all proceeds of any of the items described in clauses (a) through (e).

Each of the Lenders shall be deemed to hold a security interest, proportionate to such Lender’s
Commitment, in the TM Collateral.

Notwithstanding the Security Agreement, the collateral assignment and the pledge to the Agent,
Borrower may continue to own, use and license the TM Collateral. Furthermore, notwithstanding
anything in this Agreement, the “TM Collateral” described in this Agreement shall not include any
Trademark Licenses to the extent that the granting of a security interest therein would constitute
a breach thereof or is prohibited thereby and such prohibition is not

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ineffective under Sections 9-406, 9-407, 9-408 or 9-409 of Article 9 of the Uniform Commercial
Code, as applicable and as then in effect in any relevant jurisdiction, or any other applicable law
(including the U.S. Bankruptcy Code) or principles of equity; provided that (x) all
accounts and payment intangibles arising under such Trademark Licenses contracts shall be included
in the TM Collateral and (y) the TM Collateral shall include all payments and other property
received or receivable in connection with any sale or other disposition of such Trademark Licenses;
provided further that the foregoing exclusions shall not apply if such prohibition has been
waived or such other Person has otherwise consented to the creation hereunder of a security
interest in such Trademark Licenses; and provided further that immediately upon the
ineffectiveness, lapse or termination of any such prohibition, the Agent shall be deemed to have
granted a security interest in all its rights, title and interests in and to Trademark Licenses, as
if such prohibition had never been in effect.

     Section 3. Representations and Warranties. As an inducement to the Agent to enter into
this Agreement, the Borrower makes the following representations and warranties:

     (a) Schedule I sets forth a complete and correct list of all Trademarks and
Trademark Licenses in which the Borrower has any right, title or interest; said Trademarks
are valid, subsisting, unexpired and in full force and effect, have not been adjudged invalid
or unenforceable, in whole or in part, and have not been abandoned; to the best of the
Borrower’s knowledge no holding, decision or judgment has been rendered by any governmental
authorities which would be reasonably likely to limit, cancel or question the validity of any
Trademark.

     (b) The Borrower is the sole beneficial owner of the Registered Trademarks, and is the
owner of or duly licensed to use or license any of the Trademarks, and, except for Permitted
Liens, no Lien exists or will exist upon any Registered Trademark at any time except for the
collateral assignment thereof in favor of the Agent provided for herein, which collateral
assignment and security interest constitutes a first priority perfected security interest in
all of the Registered Trademarks.

     (c) Except pursuant to Trademark Licenses entered into by the Borrower in the ordinary
course of business, the Borrower owns and possesses the exclusive right to use, and has done
nothing to authorize or enable any other Person to use, the Trademarks, including the
Registered Trademarks listed on Schedule I.

     (d) Except as otherwise disclosed in Exhibit C to the Credit Agreement, to the
best of the Borrower’s knowledge, there is no infringement by others of any right of the
Borrower with respect to any Trademark that would reasonably be expected to have a Material
Adverse Effect, the Borrower is not infringing in any respect upon any trademark of any other
Person, and no proceedings have been instituted or are pending against the Borrower or
threatened, alleging any such violation, which proceedings would reasonably be expected to
have a Material Adverse Effect.

     (e) All applications pertaining to the Trademarks have been duly and properly filed, and
all registrations or letters pertaining to such Trademarks have been properly filed and
issued.

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     Section 4. Defense of TM Collateral, Etc. The Borrower agrees that it will at its
expense, at the Agent’s request, defend the TM Collateral from any and all claims and demands of
any other Person; provided, however, nothing herein shall prevent the Borrower in
the exercise of its reasonable business judgment from determining that it is in the best interest
of the Borrower to abandon any item of TM Collateral or to refrain from defending any item of TM
Collateral against such claims or demands (the foregoing prerogative of the Borrower being
sometimes referred to herein as the “Business Judgment Exception”). The Borrower hereby
agrees to pay, indemnify, and hold the Agent harmless from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses of
disbursements or any kind or nature whatsoever with respect to the TM Collateral, including,
without limitation, claims of trademark infringement to the extent such claims arise prior to the
Agent’s exercising a right of control over the TM Collateral pursuant hereto, provided that the
Borrower shall have no obligation hereunder with respect to such indemnification arising from the
Agent’s gross negligence or willful misconduct.

     Section 5. Continued Use of Trademarks, Etc.

     (a) During the term of this Agreement, the Borrower shall (i) employ standards of
quality consistent with past practices in its manufacture of products and delivery of
services sold or provided under the Trademarks (and shall do any and all acts reasonably
required by the Agent to ensure the Borrower’s compliance with such standards), (ii) employ
the appropriate notice of such Trademarks in connection with its use of such Trademarks,
(iii) subject, in each case, to the Business Judgment Exception, use each Trademark in such a
manner as to maintain such Trademark in full force and effect free from any claim or
abandonment for non-use and (iv) not adopt or use any mark which is confusingly similar or a
colorable imitation of such Trademark unless the Agent shall obtain a perfected security
interest in such mark pursuant to this Agreement. The Borrower hereby grants to the Agent and
its employees and agents the right to visit the Borrower’s facilities which manufacture,
inspect or store products or which provide services sold under any of the Trademarks, and to
inspect the products or monitor the services and quality control records relating thereto
upon reasonable notice and at reasonable times during regular business hours. The Borrower
confirms its commitment to take any and all actions reasonable required by the Agent to
ensure the maintenance of quality standards consistent with past practices for such products
and services.

     (b) Subject to the Business Judgment Exception, the Borrower agrees as follows: (i) the
Borrower shall use its best efforts to maintain the registration of the Registered Trademarks
listed on Schedule I hereto in full force and effect and use best efforts to obtain
registrations for Trademarks that are the subject of pending trademark applications by taking
any action which it believes necessary, through attorneys of its choice, all at its expense
and (ii) in the event that any Trademark is infringed by a third party which may have a
Material Adverse Effect or if such infringement gives rise to litigation or to the filing of
a claim or notice of opposition with the Trademark Office which may have a Material Adverse
Effect, the Borrower shall promptly notify the Agent and shall take such actions as may be
reasonably required to terminate such infringement. Any damages recovered from the infringing
party shall be deemed to be part of the TM Collateral.

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     (c) The Borrower shall promptly notify the Agent if it knows, or has reason to know,
that any application or registration relating to any Trademark may become abandoned or of any
adverse determination or development of any foreign or domestic governmental agency, court or
body regarding the Borrower’s ownership of any Trademark or its right to register the same or
to keep and maintain the same.

     Section 6. No Assignments, Etc. The Borrower shall not, except as otherwise permitted
by the Credit Agreement, grant, create or permit to exist any Lien upon the TM Collateral in favor
of any other Person, or assign this Agreement or any rights in the TM Collateral or the material
protected thereby without, in either case, the prior written approval of the Agent and such
attempted Lien or assignment shall be void ab initio.

     Section 7. Continuing Liability. The Borrower hereby expressly agrees that, anything
herein to the contrary notwithstanding, it shall remain liable under any Trademark License,
interest or obligation with respect to which the Agent has been granted a security interest
pursuant to Section 2 hereof to observe and perform all the conditions and obligations to
be observed and performed by the Borrower thereunder, all in accordance with and pursuant to the
terms and provisions thereof. The Agent shall not have any obligation or liability under any such
Trademark License, interest or obligation by reason of or arising out of this Agreement or the
conditional assignment thereof, or the grant of a security interest therein, to the Agent or the
receipt by the Agent of any payment relating to any such Trademark License, interest or obligation
pursuant hereto, nor shall the Agent be required or obligated in any manner to perform or fulfill
any of the obligations of the Borrower thereunder or pursuant thereto, or to make any payment, or
to make any inquiry as to the nature or the sufficiency of any payment received by it or the
sufficiency of any performance by any party under any such Trademark License, interest or
obligation, or to present or file any claim, or to take any action to collect or enforce any
performance or the payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

     Section 8. New Trademarks. If, before the Obligations shall have been paid in full
and the Commitments of all of the Lenders terminated, the Borrower, either by itself or through an
agent, employee, licensee or designee, shall develop or obtain rights to any new Trademarks, the
Borrower shall give to the Agent prompt notice thereof in writing hereof, and shall, where such
Trademarks are subject to federal registration, execute and deliver, and file with the Patent and
Trademark Office, an IP Security Agreement Supplement amending Schedule I hereto to include
such new Trademark thereon. Notwithstanding the foregoing, the Borrower hereby irrevocably appoints
the Agent its true and lawful attorney (such appointment coupled with an interest), with full power
of substitution, to execute an amendment of this Agreement on behalf of the Borrower amending
Schedule I hereto to include such new Trademark.

     Section 9. Retention of Rights. Unless and until an Event of Default shall have
occurred and be continuing and the Agent shall have exercised its remedies hereunder, but subject
to the terms and conditions of this Agreement, the Borrower shall retain the legal and equitable
title to the TM Collateral and shall have full right to use the TM Collateral in the ordinary
course of its business.

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     Section 10. Remedies.

     (a) If an Event of Default under the Credit Agreement has occurred and is continuing,
the Agent may exercise, in addition to all other rights and remedies granted to it in this
Agreement and any other Loan Document, all rights and remedies of a secured party under the
Uniform Commercial Code. Without limiting the generality of the foregoing, the Borrower
expressly agrees that in any such event the Agent, without demand of performance or other
demand, advertisement or notice of any kind (except to such extent as notice may be required
by applicable law with respect to the time or place of any public or private sale and except
as otherwise provided in the Loan Documents) to or upon the Borrower or any other Person (all
and each of which demands, advertisements and/or notices are hereby expressly waived), may
forthwith collect, receive, appropriate and realize upon the TM Collateral, or any part
thereof, and/or may forthwith sell, lease, license, assign, give an option or options to
purchase, or sell or otherwise dispose of and deliver said TM Collateral (or contract to do
so), or any part thereof, in one or more parcels at public or private sale or sales, at any
exchange, broker’s board or at any of the Agent’s offices or elsewhere at such prices as it
may deem best, for cash or on credit or for future delivery without assumption of any credit
risk. The Agent shall have the right upon any such public sale or sales, and, to the extent
permitted by law, upon any such private sale or sales, to purchase the whole or any part of
the TM Collateral so sold, free of any right or equity of redemption in the Borrower, which
right or equity is hereby expressly waived and released. To the extent permitted by
applicable law, the Borrower waives all claims, damages and demands against the Agent arising
out of the repossession, retention or sale of the TM Collateral.

     (b) Without limiting the generality of the foregoing, if any Event of Default has
occurred and is continuing:

     (i) the Agent may license, or sublicense, whether on an exclusive or
non-exclusive basis, any Trademark included in the TM Collateral throughout the world
for such term or terms, on such conditions and in such manner as the Agent shall in
its commercially reasonable discretion determine, the proceeds of such license or
sublicense to be applied to the payment of the Secured Obligations;

     (ii) the Agent may (without assuming any obligations or liability thereunder),
at any time and from time to time, enforce (and shall have the exclusive right to
enforce) against any licensee or sublicensee all rights and remedies of the Borrower
in, to and under any Trademark Licenses and take or refrain from taking any action
under any thereof; and the Borrower hereby releases the Agent from, and agrees to
hold the Agent free and harmless from and against, any claims arising out of any
lawful action so taken or omitted to be taken with respect thereto other than any
claims arising by reason of its own gross negligence or willful misconduct; and

     (iii) upon request by the Agent, the Borrower will execute and deliver to the
Agent a power of attorney, in addition to and supplemental to that set forth in
Section 12 below, in form and substance reasonably satisfactory to the Agent,

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for the implementation of any lease, assignment, license, sublicense, a grant of
option, sale or other disposition of a Trademark, provided, however, that in the
event of any disposition pursuant to this Section 10 the Borrower shall
supply its customer lists and other records relating to such Trademarks and to the
distribution of said products and sale of such services, to the Agent.

     Section 11. Grant of License to Use TM Collateral. For the purposes (a) of perfecting
the Agent‘s security interest in the TM Collateral and (b) of enabling the Agent to
exercise rights and remedies under Section 10 hereof or under any other Loan Document, the
Borrower hereby grants to the Agent, for the benefit of the Agent and the Lenders, an irrevocable,
non-exclusive license (exercisable without payment of royalty or other compensation to the
Borrower), subject to any third-party rights, to use, assign, license or sublicense any of the TM
Collateral, whether now owned or hereafter acquired by the Borrower, and wherever the same may be
located, including in such license reasonable access to all media in which any of the licensed
items may be recorded or stored and to all computer programs used for the compilation or printout
thereof, provided, however, that, unless an Event of Default has occurred and is continuing, the
foregoing license shall not be exercised and shall be effective only to the extent necessary to
perfect the Agent‘s security interest in the TM Collateral under applicable law. The
Agent shall have no duty as to the protection of TM Collateral or any income thereon, nor as to the
preservation or rights against prior parties, nor as to the preservation of any rights pertaining
thereto. The Agent may exercise its rights with respect to any portion of the TM Collateral without
resorting or regard to other TM Collateral or sources of reimbursement for liability.

     Section 12. Power of Attorney. The Borrower hereby irrevocably appoints the Agent its
true and lawful attorney (such appointment coupled with an interest), with full power of
substitution, in the name of the Borrower, the Agent, or otherwise, for the sole use and benefit of
the Agent, but at the Borrower’s expense, to exercise (to the extent permitted by law), at any time
and from time to time while an Event of Default has occurred and is continuing, all or any of the
following powers with respect to all or any of the TM Collateral:

     (a) to demand, sue for, collect, receive and give acquittance for any and all monies due
or to become due thereon or by virtue thereof;

     (b) to settle, compromise, compound, prosecute or defend any action or proceeding with
respect thereto;

     (c) to sell, transfer, assign or otherwise deal in or with the same or the proceeds or
avails thereof, as fully and effectually as if the Agent were the absolute owner thereof;

     (d) to extend the time of payment of any or all thereof and to make any allowance and
other adjustments with reference thereto;

provided, however, that the Agent shall have no duty as to the protection of the TM
Collateral or any income thereon, nor as to the preservation or rights against prior parties, nor
as to the preservation of any rights pertaining thereto.

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     Section 13. Further Assurances. The Borrower will, from time to time, at its expense,
execute, deliver, file and record any statement, assignment, instrument, document, agreement,
notice or other paper and take any other action that the Agent may from time to time reasonably
determine to be necessary or desirable in order to create, preserve, upgrade in rank (to the extent
required hereby), perfect, confirm or validate the TM Collateral or to enable the Agent to obtain
the full benefits of this Agreement, or to enable the Agent to exercise and enforce any of its
rights, powers and remedies hereunder with respect to any of the TM Collateral. At the request of
the Agent, the Borrower will use commercially reasonable efforts to obtain the consent of any
Person that is necessary or desirable to effect the pledge hereunder of any right, title, claims
and benefits now owned or hereafter acquired by any Borrower in and to any TM Collateral. To the
extent permitted by law, the Borrower hereby authorizes the Agent to execute, file and record
notices, financing statements or continuation statements without the Borrower’s signature appearing
thereon. The Borrower agrees that a carbon, photographic or other reproduction of this Agreement or
of a financing statement is sufficient as a notice or financing statement. The Borrower shall pay
the reasonable costs of, or incidental to, any recording or filing of any notice or financing or
continuation statements concerning the TM Collateral.

     Section 14. Notices. All notices under this Agreement shall be in writing, and shall
be given and shall be effective in accordance with the Credit Agreement.

     Section 15. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other Jurisdiction.

     Section 16. No Waiver; Cumulative Remedies. The Agent shall not, by any act, delay,
omission or otherwise be deemed to have waived any of its rights or remedies hereunder, and no
waiver shall be valid unless in writing, signed by the Agent, and then only to the extent therein
set forth. A waiver by the Agent of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Agent would otherwise have had on any other
occasion. No failure to exercise nor any delay in exercising on the part of the Agent any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or privilege. The rights and remedies hereunder provided
are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and
remedies provided by law.

     Section 17. Waivers; Amendments. None of the terms and provisions of this Agreement
may be waived, altered, modified or amended except by an instrument in writing executed by the
parties hereto.

     Section 18. Limitation by Law. All rights, remedies and powers provided herein may be
exercised only to the extent that the exercise thereof does not violate any applicable provision of
law, and all the provisions hereof are intended to be subject to all applicable mandatory
provisions of law which may be controlling and to be limited to the extent necessary so that they
will not render this Agreement invalid, unenforceable in whole or in part or not entitled to be
recorded, registered, or filed under the provisions of any applicable law.

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     Section 19. Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and shall inure to the benefit of the Agent and its successors
and assigns, and nothing herein or in the Credit Agreement or any other Loan Document is intended
or shall be construed to give any other Person any right, remedy or claim under, to or in respect
of this Agreement, the Credit Agreement or any other Loan Document.

     Section 20. Governing Law; Consent to Jurisdiction, Etc. THIS AGREEMENT AND EACH OF
THE OTHER LOAN DOCUMENTS ARE CONTRACTS UNDER THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS AND
SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID
COMMONWEALTH (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW). THE BORROWER CONSENTS
TO THE JURISDICTION OF ANY OF THE FEDERAL OR STATE COURTS LOCATED IN SUFFOLK COUNTY IN THE
COMMONWEALTH OF MASSACHUSETTS IN CONNECTION WITH ANY SUIT TO ENFORCE THE RIGHTS OF THE LENDERS
UNDER THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS AND CONSENTS TO SERVICE OF PROCESS IN ANY
SUCH SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE BORROWER’S ADDRESS SET FORTH HEREIN. THE
BORROWER IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE
OF ANY SUCH ACTION BROUGHT IN THE COURTS REFERRED TO IN THIS SECTION AND IRREVOCABLY WAIVES AND
AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH ACTION THAT SUCH ACTION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

     Section 21. Waiver of Jury Trial. THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF
ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER, THE PERFORMANCE
OF SUCH RIGHTS AND OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY. EXCEPT AS PROHIBITED BY LAW, THE BORROWER HEREBY WAIVES
ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THE PRECEDING SENTENCE
ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION
TO, ACTUAL DAMAGES. THE BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE
AGENT OR THE LENDERS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE AGENT OR THE LENDERS WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT THE
AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE CREDIT AGREEMENT AND THE
OTHER LOAN DOCUMENTS TO WHICH EACH IS A PARTY BECAUSE OF, AMONG OTHER THINGS, THE BORROWER’S WAIVER
AND CERTIFICATIONS CONTAINED HEREIN.

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     IN WITNESS WHEREOF, the parties hereto have caused this Trademark Security Agreement and
License to be executed and delivered by their duty authorized officers as of the date first set
forth above.

	 	 	 	 	 
	 	LEASECOMM CORPORATION

 	 
	 	By:  	/s/ Richard F. Latour
 	 
	 	 	Name:  	Richard F. Latour 	 
	 	 	Title:  	President 	 
	 
	 	SOVEREIGN BANK, as Agent

 	 
	 	By:  	/s/ Jeffrey G. Millman
 	 
	 	 	Name:  	Jeffrey G. Millman 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO LEASECOME TRADEMARK SECURITY AGREEMENT]

 

 

SCHEDULE I

INTELLECTUAL PROPERTY MATTERS

[TO BE COMPLETED BY BORROWER]

TRADEMARKS (including registered and material unregistered trademarks, trade names and
service marks, and all applications for any of the foregoing.)

CORPORATE NAMES

INTERNET DOMAIN NAMESexv10w10

 

Exhibit 10.10

PLEDGE AGREEMENT

     This PLEDGE AGREEMENT (this “Agreement”), is made as of August 2, 2007, and entered
into by and among MicroFinancial Incorporated, a Massachusetts corporation (the “Pledgor”),
TimePayment Corp., a Delaware corporation and wholly owned subsidiary of the Pledgor (the
“Borrower”), and Sovereign Bank, as agent for and representative of (in such capacity herein
called “Secured Party”) the financial institutions (“Lenders”) party to the Credit
Agreement (as hereinafter defined).

WITNESSETH:

     WHEREAS, the Pledgor is the legal and beneficial owner of the shares of stock described next
to Pledgor’s name in Schedule I annexed hereto and issued by the corporations named therein
(the “Pledged Shares”);

     WHEREAS, the Secured Party and the Lenders have entered into a Credit Agreement dated as of
the date hereof (said Credit Agreement, as it may hereafter be amended, supplemented or otherwise
modified from time to time, being the “Credit Agreement”) with the Borrower, pursuant to
which the Lenders have made certain commitments, subject to the terms and conditions set forth in
the Credit Agreement, to extend certain credit facilities to the Borrower; and

     WHEREAS, it is a condition precedent to the initial extensions of credit by the Lenders under
the Credit Agreement that the Pledgor shall have granted the security interests and undertaken the
obligations contemplated by this Agreement;

     NOW, THEREFORE, in order to induce Lenders to make Loans and other extensions of credit under
the Credit Agreement and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the Pledgor hereby agrees with the Secured Party as follows:

Section 1. Definitions.

     Unless otherwise defined herein, terms defined in the Credit Agreement are used herein as
defined in the Credit Agreement. Except as otherwise defined herein, terms defined in the Uniform
Commercial Code as in effect in the Commonwealth of Massachusetts (the “UCC”) are used
herein with the meanings set forth therein.

Section 2. Pledge of Security.

     The Pledgor hereby pledges and assigns to the Secured Party for the benefit of the Lenders,
and hereby grants to the Secured Party for the benefit of the Lenders a security interest in, all
of the Pledgor’s right, title and interest in and to the following (the “Pledged
Collateral”):

(a) the Pledged Shares and the certificates representing the Pledged Shares and any interest of the
Pledgor in the entries on the books of any financial or securities intermediary pertaining to the
Pledged Shares, and all securities (including capital stock of the Borrower), dividends, cash,
warrants, rights, instruments and other property or proceeds from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all of the Pledged Shares;

(b) all additional shares of, and all securities convertible into and warrants, options and other
rights to purchase or otherwise acquire, stock of any issuer of the Pledged Shares from time to
time acquired by the Pledgor in any manner (which shares shall be deemed to be part of the Pledged
Shares), the

 

 

certificates or other instruments representing such additional shares, securities, warrants,
options or other rights and any interest of the Pledgor in the entries on the books of any
financial or securities intermediary pertaining to such additional shares, and all dividends, cash,
warrants, rights, instruments and other property or proceeds from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all of such additional shares,
securities, warrants, options or other rights; and

(c) all shares of, and all securities convertible into and warrants, options and other rights to
purchase or otherwise acquire, stock of any Person that, after the date of this Agreement, becomes,
as a result of any occurrence, a direct Subsidiary of the Pledgor (which shares shall be deemed to
be part of the Pledged Shares), the certificates or other instruments representing such shares,
securities, warrants, options or other rights and any interest of the Pledgor in the entries on the
books of any financial or securities intermediary pertaining to such shares, and all dividends,
cash, warrants, rights, instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such shares,
securities, warrants, options or other rights; and

(d) to the extent not covered by clauses (a) and (c above, all proceeds of any or all of the
foregoing Pledged Collateral. For purposes of this Agreement, the term “proceeds” includes
whatever is receivable or received when Pledged Collateral or proceeds are sold, exchanged,
collected or otherwise disposed of, whether such disposition is voluntary or involuntary, and
includes, without limitation, proceeds of any indemnity or guaranty payable to any Pledgor or the
Secured Party from time to time with respect to any of the Pledged Collateral.

Section 3. Security for Obligations.

     This Agreement secures, and the Pledged Collateral is collateral security for, all
Obligations, including all obligations of every nature of the Pledgor now or hereafter existing
under this Agreement.

Section 4. Delivery of Pledged Collateral.

     All certificates or instruments representing or evidencing the Pledged Collateral shall be
delivered to and held by or on behalf of the Secured Party pursuant hereto and shall be in suitable
form for transfer by delivery or, as applicable, shall be accompanied by the Pledgor’s endorsement,
where necessary, or duly executed instruments of transfer or assignment in blank, all in form and
substance reasonably satisfactory to the Secured Party. The Secured Party shall have the right, at
any time, in its discretion and without notice to the Pledgor, to transfer to or to register in the
name of the Secured Party or any of its nominees any or all of the Pledged Collateral. In
addition, the Secured Party shall have the right at any time to exchange certificates or
instruments representing or evidencing Pledged Collateral for certificates or instruments of
smaller or larger denominations.

Section 5. Representations and Warranties.

     The Pledgor represents and warrants as follows:

     (a) Due Authorization of Pledged Collateral. All of the Pledged have been duly
authorized and validly issued and are fully paid and non-assessable.

     (b) Description of Pledged Collateral. The Pledged Shares constitute that percentage
of the issued and outstanding shares of stock of each issuer thereof set forth in Schedule
I as of the date hereof, and as of the date hereof there are no outstanding warrants, options
or other rights to purchase, or other agreements outstanding with respect to, or property that is
now or hereafter convertible into, or that requires the issuance or sale of, any Pledged Shares
other than this Agreement.

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     (c) Ownership of Pledged Collateral. The Pledgor is the legal, record and beneficial
owner of the Pledged free and clear of any Encumbrance except for the security interest created by
this Agreement.

     (d) Governmental Authorizations. No authorization, approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body is required for either (i)
the pledge by the Pledgor of the Pledged Collateral pursuant to this Agreement and the grant by the
Pledgor of the security interest granted hereby or for the execution, delivery or performance of
this Agreement by the Pledgor or (ii) the exercise by the Secured Party of the voting or other
rights, or the remedies in respect of the Pledged Collateral, provided for in this Agreement.

     (e) Issuer and Pledgor Authorization. Other than as contemplated in this Agreement and
other than such actions which have already been taken or effected, no consent, authorization,
approval or other action by, and no notice to or filing with, and no corporate action on behalf of
the issuers of the Pledged Shares or on behalf of the Pledgor is required for either (i) the pledge
by the Pledgor of the Pledged Collateral pursuant to this Agreement and the grant by the Pledgor of
the security interest granted hereby or for the execution, delivery or performance of this
Agreement by the Pledgor or (ii) the exercise by the Secured Party of the voting or other rights,
or the remedies in respect of such Pledged Collateral, provided for in this Agreement.

     (f) Perfection. The pledge, assignment and delivery to the Secured Party by the
Pledgor of the Pledged Shares pursuant to this Agreement creates a valid and perfected first
priority security interest in such Pledged Shares securing the payment of the Obligations, and as a
result of the delivery of the certificates representing the Pledged Shares pledged by the Pledgor
to the Secured Party, together with the appropriately completed and executed instruments of
transfer, the Secured Party will have “control” over the Pledged Shares to the extent such Pledged
Shares constitute “certificated securities”, as such terms are defined in the UCC.

     (g) Margin Regulations. The pledge by the Pledgor of the Pledged Collateral pursuant
to this Agreement does not violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System.

     (h) Other Information. All information heretofore, herein or hereafter supplied to
Secured Party by or on behalf of Pledgor with respect to the Pledged Collateral is accurate and
complete in all material respects.

Section 6. Transfers and Other Liens; Additional Pledged Collateral: etc.

     The Pledgor shall:

     (a) not (i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant
any option with respect to, any of the Pledged Collateral, (ii) create or suffer to exist any
Encumbrance upon or with respect to any of the Pledged Collateral, except for the security interest
under this Agreement, or (iii) vote to enable any issuer of Pledged Shares to merge or consolidate
except as permitted under the Credit Agreement;

     (b) (i) not permit any issuer of Pledged Shares to issue any stock or other securities in
addition to or in substitution for the Pledged Shares issued by such issuer except to the Pledgor,
and (ii) pledge hereunder, immediately upon its acquisition (directly or indirectly) thereof, any
and all additional shares of stock or other securities of each issuer of Pledged Shares, and (iii)
pledge hereunder, immediately upon its acquisition (directly or indirectly) thereof, any and all
shares of stock of or other securities indicating ownership interest in any Person that, after the
date of this Agreement, becomes, as a

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result of any occurrence, a direct Subsidiary of such Pledgor;

     (c) promptly notify the Secured Party of any event of which the Pledgor becomes aware causing
loss or depreciation in the value of the Pledged Collateral in any material respect;

     (d) promptly deliver to the Secured Party all written notices received by it with respect to
the Pledged Collateral; and

     (e) pay promptly when due all taxes, assessments and governmental charges or levies imposed
upon, and all claims against, the Pledged Collateral, except to the extent the validity thereof is
being contested in good faith; provided that the Pledgor shall in any event pay such taxes,
assessments, charges, levies or claims not later than five Business Days prior to the date of any
proposed sale under any judgment, writ or warrant of attachment entered or filed against the
Pledgor or any of the Pledged Collateral as a result of the failure to make such payment.

Section 7. Further Assurances; Pledge Amendments.

     (a) The Pledgor agrees that from time to time, at its expense, the Pledgor will promptly execute
and deliver all further instruments and documents, and take all further action, that may be
necessary or reasonably desirable, or that the Secured Party may reasonably request, in order to
perfect and protect any security interest granted or purported to be granted hereby or to enable
the Secured Party to exercise and enforce its rights and remedies hereunder with respect to any
Pledged Collateral. Without limiting the generality of the foregoing, the Pledgor will: (i) execute
and file such financing or continuation statements, or amendments thereto, and such other
instruments or notices, as may be necessary or desirable, or as the Secured Party may reasonably
request, in order to perfect and preserve the security interests granted or purported to be granted
hereby, (ii) do all things necessary or desirable, as reasonably determined by the Secured Party,
to transfer control over any Pledged Collateral to the Secured Party including, but not limited to,
registering the Secured Party as the holder of any securities entitlement or commodities contract,
as appropriate, relating to the Pledged Collateral and entering into any control agreement, in the
form designated by the Secured Party, pursuant to which the securities intermediary shall agree
that it will comply with the entitlement orders originated by the Secured Party without further
consent by the Pledgor, with respect to the Pledged Collateral, and entering into any control
agreement, in the form designated by the Secured Party, pursuant to which the commodity
intermediary shall agree that it will apply any value distributed on account of any commodity
contract constituting Pledged Collateral, as directed by the Secured Party without further consent
by the Pledgor and (iii) at the Secured Party’s reasonable request, appear in and defend any action
or proceeding that would reasonably be expected to materially and adversely affect the Pledgor’s
title to or the Secured Party’s security interest in all or any part of the Pledged Collateral
pledged by the Pledgor.

     (b) The Pledgor further agrees that it will, upon obtaining any additional shares of stock or
other securities required to be pledged hereunder as provided in Section 6(b), promptly (and in any
event within five (5) Business Days) deliver to the Secured Party a Pledge Amendment, duly executed
by the Pledgor, in substantially the form of Schedule II annexed hereto (a “Pledge
Amendment”), in respect of the additional Pledged Shares to be pledged pursuant to this
Agreement. The Pledgor hereby authorizes the Secured Party to attach each Pledge Amendment to this
Agreement and agree that all Pledged Shares listed on any Pledge Amendment delivered to the Secured
Party shall for all purposes hereunder be considered Pledged Collateral; provided that the
failure of any Pledgor to execute a Pledge Amendment with respect to any additional Pledged Shares
pledged pursuant to this Agreement shall not impair the security interest of the Secured Party
therein or otherwise adversely affect the rights and remedies of the Secured Party hereunder with
respect thereto.

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Section 8. Voting Rights: Dividends: Etc.

     (a) So long as no Event of Default shall have occurred and be continuing:

     (i) The Pledgor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Pledged Shares or any part thereof for any purpose not inconsistent
with the terms of this Agreement or the Credit Agreement; provided, however,
that no Pledgor shall exercise or shall refrain from exercising any such right if the
Secured Party shall have notified the Pledgor that, in the Secured Party’s reasonable
judgment, such action would have a material adverse effect on the value of the Pledged
Shares; and provided, further, that the Pledgor shall give the Secured Party
at least five (5) Business Days’ prior written notice of the manner in which it intends to
exercise, or the reasons for refraining from exercising, any such right. It is understood,
however, that neither (A) the voting by any Pledgor of any Pledged Shares for or any
Pledgor’s consent to the election of directors at a regularly scheduled annual or other
meeting of stockholders or with respect to incidental matters at any such meeting nor (B)
any Pledgor’s consent to or approval of any action otherwise permitted under this Agreement
and the Credit Agreement shall be deemed inconsistent with the terms of this Agreement or
the Credit Agreement within the meaning of this [        ], and no notice of any
such voting or consent need be given to the Secured Party;

     (ii) The Pledgor shall be entitled to receive and retain, and to utilize free and clear
of the lien of this Agreement, any and all dividends paid and distributions made in respect
of the Pledged Collateral; provided, however, that any and all

	 	(A)	 	dividends paid or payable other than in cash in respect of, and
instruments and other property received, receivable or otherwise distributed in
respect of, or in exchange for, any Pledged Collateral,
	 
	 	(B)	 	dividends and other distributions paid or payable in cash in
respect of any Pledged Collateral in connection with a partial or total
liquidation or dissolution or winding up or in connection with a reduction of
capital, capital surplus or paid-in-surplus, and
	 
	 	(C)	 	cash paid, payable or otherwise distributed in respect of or in
redemption of or in exchange for any Pledged Shares,

shall be, and shall forthwith be delivered to the Secured Party to hold as Pledged
Collateral and shall, if received by any Pledgor, be received in trust for the benefit of
the Secured Party, be segregated from the other property or funds of the Pledgor and be
forthwith delivered to the Secured Party as Pledged Collateral in the same form as so
received (with all necessary endorsements); and

     (iii) The Secured Party shall promptly execute and deliver (or cause to be executed and
delivered) to the Pledgor all such proxies, dividend payment orders and other instruments as
the Pledgor may from time to time reasonably request for the purpose of enabling the Pledgor
to exercise the voting and other consensual rights which it is entitled to exercise pursuant
to paragraph (i) above, to receive the dividends, and other distributions which it is
authorized to receive and retain pursuant to paragraph (ii) above, and to exercise its right
to purchase capital stock under any warrants or options pledged by the Pledgor hereunder,
provided that all stock issued as a result of exercise of such warrants or options, together
with all necessary instruments of transfer executed in blank, shall be immediately pledged
and delivered to the Secured Party

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pursuant to the terms of this Agreement.

     (b) Upon the occurrence and during the continuation of an Event of Default:

     (i) upon written notice from the Secured Party to the Pledgor, all rights of the
Pledgor to exercise the voting and other consensual rights which they would otherwise be
entitled to exercise pursuant to Section 8(a)(i) shall cease, and all such rights shall
thereupon become vested in the Secured Party who shall thereupon have the sole right to
exercise such voting and other consensual rights;

     (ii) all rights of the Pledgor to receive the dividend and other distributions which
they would otherwise be authorized to receive and retain pursuant to 8(a)(i) shall cease,
and all such rights shall thereupon become vested in the Secured Party who shall thereupon
have the sole right to receive and hold as Pledged Collateral such dividends and other
distributions; and

     (iii) all dividends and other distributions which are received by any Pledgor contrary
to the provisions of paragraph (ii) of this Section 8(b) shall be received in trust for the
benefit of the Secured Party, shall be segregated from other funds of the Pledgor and shall
forthwith be paid over to the Secured Party as Pledged Collateral in the same form as so
received (with any necessary endorsements).

     (c) In order to permit the Secured Party to exercise the voting and other consensual rights
which it may be entitled to exercise pursuant to Section 8(b)(i) and to receive all dividends and
other distributions which it may be entitled to receive under Section 7(a)(ii) or 0Section
7(b)(ii), the Pledgor shall promptly execute and deliver (or cause to be executed and delivered) to
the Secured Party all such proxies, dividend payment orders and other instruments as the Secured
Party may from time to time reasonably request.

Section 9. Secured Party Appointed Attorney-in-Fact.

     The Pledgor hereby irrevocably appoints the Secured Party as the Pledgor’s attorney-in-fact,
with full authority in the place and stead of the Pledgor and in the name of the Pledgor, the
Secured Party or otherwise, in the Secured Party’s discretion to take any action and to execute any
instrument that the Secured Party may deem necessary or advisable to accomplish the purposes of
this Agreement, including without limitation (a) subject to the rights of such Pledgor under
Section 8(a) to receive, endorse and collect any instruments made payable to the Pledgor
representing any dividend or other distribution in respect of the Pledged Collateral or
any part thereof and to give full discharge for the same, and (b) from time to time in the Secured
Party’s discretion to file one or more financing or continuation statements, or amendments thereto,
relative to all or any part of the Pledged Collateral without the signature of the Pledgor.

Section 10. Secured Party May Perform.

     If any Pledgor fails to perform any agreement contained herein, the Secured Party may itself
perform, or cause performance of, such agreement, and the reasonable expenses of the Secured Party
incurred in connection therewith shall be payable by the Pledgor under Section 14.

Section 11. Standard of Care.

     The powers conferred on the Secured Party hereunder are solely to protect its interest in the
Pledged Collateral and shall not impose any duty upon it to exercise any such powers. Except for
the

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exercise of reasonable care in the custody of any Pledged Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Secured Party shall have no duty as to
any Pledged Collateral, it being understood that the Secured Party shall have no responsibility for
(a) ascertaining or taking action with respect to calls, conversions, exchanges, tenders or other
matters relating to any Pledged Collateral, whether or not the Secured Party has or is deemed to
have knowledge of such matters, (b) taking any necessary steps (other than steps taken in
accordance with the standard of care set forth above to maintain possession of the Pledged
Collateral) to preserve rights against any parties with respect to any Pledged Collateral, (c)
taking any necessary steps to collect or realize upon the Obligations or any guarantee therefor, or
any part thereof, or any of the Pledged Collateral, or (d) initiating any action to protect the
Pledged Collateral against the possibility of a decline in market value. The Secured Party shall be
deemed to have exercised reasonable care in the custody and preservation of Pledged Collateral in
its possession if such Pledged Collateral is accorded treatment substantially equal to that which
the Secured Party accords its own property consisting of negotiable securities.

Section 12. Remedies.

     (a) If any Event of Default shall have occurred and be continuing, the Secured Party may
exercise in respect of the Pledged Collateral, in addition to all other rights and remedies
provided for herein or otherwise available to it, all the rights and remedies of a Secured Party on
default under the UCC or other applicable Uniform Commercial Code as in effect in any relevant
jurisdiction (whether or not the Uniform Commercial Code applies to the affected Pledged
Collateral), and the Secured Party may also in its sole discretion, without notice except as
specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public
or private sale, at any exchange or broker’s board or at any of the Secured Party’s offices or
elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or
prices and upon such other terms as the Secured Party may deem commercially reasonable,
irrespective of the impact of any such sales on the market price of the Pledged Collateral. The
Secured Party or any Secured Party may be the purchaser of any or all of the Pledged Collateral at
any such sale and the Secured Party, as agent for and representative of the Lender but not any
Secured Party or Lender in its or their respective individual capacities unless Majority Lenders
shall otherwise agree in writing, shall be entitled, for the purpose of bidding and making
settlement or payment of the purchase price for all or any portion of the Pledged Collateral sold
at any such public sale, to use and apply any of the Obligations as a credit on account of the
purchase price for any Pledged Collateral payable by the Secured Party at such sale. Each purchaser
at any such sale shall hold the property sold absolutely free from any claim or right on the part
of any Pledgor, and the Pledgor hereby waives (to the extent permitted by applicable law) all
rights of redemption, stay and/or appraisal which it now has or may at any time in the future have
under any rule of law or statute now existing or hereafter enacted. The Pledgor agrees that, to the
extent notice of sale shall be required by law, at least ten (10) Business Days’ notice to the
Pledgor of the time and place of any public sale or the time after which any private sale is to be
made shall constitute reasonable notification. The Secured Party shall not be obligated to make any
sale of Pledged Collateral regardless of notice of sale having been given. The Secured Party may
adjourn any public or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and place to which it was
so adjourned. The Pledgor hereby waives any claims against the Secured Party arising by reason of
the fact that the price at which any Pledged Collateral may have been sold at such a private sale
was less than the price which might have been obtained at a public sale, even if the Secured Party
accepts the first offer received and does not offer such Pledged Collateral to more than one
offeree. If the proceeds of any sale or other disposition of the Pledged Collateral are
insufficient to pay all the Secured Obligations, the Pledgor shall be liable for the deficiency and
the reasonable fees of any attorneys employed by Secured Party to collect such deficiency.

The Pledgor recognizes that, by reason of certain prohibitions contained in the Securities Act of
1933 (“Securities Act”) and applicable state securities laws, the Secured Party may be
compelled, with respect

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to any sale of all or any part of the Pledged Collateral conducted without prior registration or
qualification of such Pledged Collateral under the Securities Act and/or such state securities
laws, to limit purchasers to those who will agree, among other things, to acquire the Pledged
Collateral for their own account, for investment and not with a view to the distribution or resale
thereof. The Pledgor acknowledges that any such private sales may be at prices and on terms less
favorable than those obtainable through a public sale without such restrictions (including, without
limitation, a public offering made pursuant to a registration statement under the Securities Act)
and, notwithstanding such circumstances, the Pledgor agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner and that the Secured Party shall have
no obligation to engage in public sales and no obligation to delay the sale of any Pledged
Collateral for the period of time necessary to permit the issuer thereof to register it for a form
of public sale requiring registration under the Securities Act or under applicable state securities
laws, even if such issuer would, or should, agree to so register it.

     (b) If the Secured Party determines to exercise its right to sell any or all of the Pledged
Collateral, upon written request, the Pledgor shall, and shall cause each other issuer of any
Pledged Shares to be sold hereunder from time to time, to furnish to the Secured Party all such
information as the Secured Party may request in order to determine the number of shares and other
instruments included in the Pledged Collateral which may be sold by the Secured Party in exempt
transactions under the Securities Act and the rules and regulations of the Securities and Exchange
Commission thereunder, as the same are from time to time in effect.

Section 13. Application of Proceeds.

     Except as expressly provided elsewhere in this Agreement, all proceeds received by the Secured
Party in respect of any sale of, collection from, or other realization upon all or any part of the
Pledged Collateral may, in the discretion of the Secured Party, be held by the Secured Party as
Pledged Collateral for, and/or then, or at any time thereafter, applied in full or in part by the
Secured Party to the reasonable expenses of retaking, holding, preparing for sale, selling and the
like, to reasonable attorneys’ fees, travel and all other expenses which may be incurred by the
Secured Party in attempting to collect the Obligations or to enforce this Agreement or in the
prosecution or defense of any action or proceeding related to the subject matter of this Agreement,
and then to the Obligations in accordance with Section 2.8(c) of the Credit Agreement.

Section 14. Indemnity and Expenses.

     The Pledgor will pay to the Secured Party upon demand the amount of any and all costs and
expenses, including the reasonable fees and expenses of its counsel and of any experts and agents,
that the Secured Party may incur in connection with (i) the administration of this Agreement, (ii)
the custody or preservation of, or the sale of, collection from, or other realization upon, any of
the Pledged Collateral, (iii) the exercise or enforcement of any of the rights of the Secured Party
hereunder, or (iv) the failure by the Pledgor to perform or observe any of the provisions hereof.

Section 15. Continuing Security Interest: Transfer of Loans and Notes.

     This Agreement shall create a continuing security interest in the Pledged Collateral and shall
(a) remain in full force and effect until the indefeasible payment in full of all Obligations
(other than contingent indemnification obligations), the cancellation or termination of all of the
Commitments, (b) be binding upon the Pledgor, its successors and assigns, and (c) inure, together
with the rights and remedies of the Secured Party hereunder, to the benefit of the Lenders and
their respective successors, transferees and assigns. Without limiting the generality of the
foregoing clause (c), to the extent permitted under the Credit Agreement, any Lender may assign or
otherwise transfer any Loans, Notes or other Obligations

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held by it to any other Person, and such other Person shall thereupon become vested with all
the benefits in respect thereof granted to such Lender herein or otherwise. Upon the indefeasible
payment in full in cash of all Obligations (other than contingent indemnification obligations), the
security interest granted hereby shall terminate and all rights to the Pledged Collateral shall
revert to the Pledgor. Upon any such termination the Secured Party will, at the Pledgor’s
reasonable expense, execute and deliver to the Pledgor such documents as the Pledgor shall
reasonably request to evidence such termination and the Pledgor shall be entitled to the return,
upon their request and at their reasonable expense, against receipt and without recourse to the
Secured Party, of such of the Pledged Collateral as shall not have been sold or otherwise applied
pursuant to the terms hereof.

Section 16. Secured Party as Agent.

     (a) The Secured Party has been appointed to act as the Agent hereunder by the Lenders. The
Secured Party shall be obligated, and shall have the right hereunder, to make demands, to give
notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any
action (including, without limitation, the release or substitution of Pledged Collateral), solely
in accordance with this Agreement and the Credit Agreement.

     (b) The Secured Party shall at all times be the same Person that is the Agent under the Credit
Agreement. Written notice of resignation by the Agent pursuant to Section 10.7 of the Credit
Agreement shall also constitute notice of resignation as Secured Party under this Agreement; and
appointment of a successor Agent pursuant to Section 10.7 of the Credit Agreement shall also
constitute appointment of a successor Secured Party under this Agreement. Upon the acceptance of
any appointment as Agent under Section 10.7 of the Credit Agreement by a successor Agent, that
successor Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Secured Party under this Agreement, and the retiring Secured
Party under this Agreement shall promptly (i) transfer to such successor Secured Party all sums,
securities and other items of Collateral held hereunder, together with all records and other
documents necessary or appropriate in connection with the performance of the duties of the
successor Secured Party under this Agreement, and (ii) execute and deliver to such successor
Secured Party such amendments to financing statements, and take such other actions, as may be
necessary or appropriate in connection with the assignment to such successor Secured Party of the
security interests created hereunder, whereupon such retiring Secured Party shall be discharged
from its duties and obligations under this Agreement. After any retiring Secured Party’s
resignation hereunder as the Secured Party, the provisions of this Agreement shall inure to its
benefit as to any actions taken or omitted to be taken by it under this Agreement while it was the
Secured Party hereunder.

Section 17. Amendments, Etc.

     No amendment or waiver of any provision of this Agreement, or consent to any departure by any
Pledgor herefrom, shall in any event be effective unless the same shall be in writing and signed by
the Secured Party and the Pledgor, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it was given.

Section 18. Notices.

     All notices hereunder shall be given in the same manner as set forth in Section 11.1 of the
Credit Agreement and any notice given to the Borrower in accordance with the terms of such Section
shall be deemed to be given to the Pledgor.

Section 19. Failure or Indulgence Not Waiver; Remedies Cumulative.

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     No failure or delay on the part of the Secured Party in the exercise of any power, right or
privilege hereunder shall impair such power, right or privilege or be construed to be a waiver of
any default or acquiescence therein, nor shall any single or partial exercise of any such power,
right or privilege preclude any other or further exercise thereof or of any other power, right or
privilege. All rights and remedies existing under this Agreement are cumulative to, and not
exclusive of, any rights or remedies otherwise available.

Section 20. Waivers by Pledgor.

The Pledgor waives presentment, demand, protest, notice of acceptance, notice of Obligations
incurred and all other notices of any kind, all defenses which may be available by virtue of any
valuation, stay, moratorium law or other similar law now or hereafter in effect, any right to
require the marshalling of assets of the Borrower or the Pledgor, and all suretyship defenses
generally. Without limiting the generality of the foregoing, the Pledgor agrees to the provisions
of any instrument evidencing, securing or otherwise executed in connection with any Obligations and
agrees that the obligations of the Pledgor hereunder shall not be released or discharged, in whole
or in part, or otherwise affected by (i) the failure of the Secured Party or any Lender to assert
any claim or demand or to enforce any right or remedy against the Borrower; (ii) any extensions or
renewals of any of the Obligations; (iii) any rescissions, waivers, amendments or modifications of
any of the terms or provisions of any agreement evidencing, securing or otherwise executed in
connection with any of the Obligations; (iv) the substitution or release of any entity primarily or
secondarily liable for any of the Obligations; (v) the adequacy of any rights the Secured Party or
any Lender may have against any collateral or other means of obtaining repayment of the
Obligations; (vi) the impairment of any collateral securing any of the Obligations, including
without limitation the failure to perfect or preserve any rights the Secured Party and the Lenders
might have in such collateral or the substitution, exchange, surrender, release, loss or
destruction of any such collateral; or (vii) any other act or omission which might in any manner or
to any extent vary the risk of the Pledgor or otherwise operate as a release or discharge of the
Pledgor, all of which may be done without notice to the Pledgor.

THE PLEDGOR HEREBY WAIVES THE APPLICATION TO THE SECURED PARTY AND THE SECURED PARTY’S RIGHTS
HEREUNDER IN AND TO THE PLEDGED COLLATERAL OF ANY AND ALL RESTRICTIONS ON TRANSFER CONTAINED IN THE
ORGANIZATIONAL DOCUMENTS OF THE ISSUERS THEREOF AND ANY OTHER AGREEMENTS OR DOCUMENTS BINDING ON
THE HOLDERS OF EQUITY INTERESTS OF THE ISSUERS THEREOF.

Section 21. Unenforceability Of Obligations Against Borrower.

     If for any reason the Borrower has no legal existence or is under no legal obligation to
discharge any of the Obligations, or if any of the Obligations have become irrecoverable from the
Borrower by operation of law or for any other reason, this Agreement and the pledge of the Pledged
Collateral hereunder shall nevertheless be binding on and enforceable against the Pledgor to the
same extent as if the Pledgor at all times had been the principal obligor on all such Obligations.

Section 22. Severability.

     In case any provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not
in any way be affected or impaired thereby.

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Section 23. Headings.

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

Section 24. Governing Law: Consent to Jurisdiction.

     THIS AGREEMENT IS INTENDED TO TAKE EFFECT AS A SEALED INSTRUMENT. THIS AGREEMENT IS A
CONTRACT UNDER THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS AND SHALL FOR ALL PURPOSES BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID COMMONWEALTH (EXCLUDING THE LAWS
APPLICABLE TO CONFLICTS OR CHOICE OF LAW). THE PLEDGOR CONSENTS TO THE JURISDICTION OF ANY OF THE
FEDERAL OR STATE COURTS LOCATED IN SUFFOLK COUNTY IN THE COMMONWEALTH OF MASSACHUSETTS IN
CONNECTION WITH ANY SUIT TO ENFORCE THE RIGHTS OF THE SECURED PARTY UNDER THIS AGREEMENT AND
CONSENTS TO SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE PLEDGOR IN THE MANNER PROVIDED
IN SECTION 18 ABOVE. THE PLEDGOR IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUCH ACTION BROUGHT IN THE COURTS REFERRED TO IN THIS SECTION
AND IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH ACTION THAT SUCH ACTION HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.

Section 25. Waiver of Jury Trial.

     EACH OF THE PLEDGOR AND THE SECURED PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN
CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER, THE PERFORMANCE OF SUCH RIGHTS
AND OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER ORAL OR WRITTEN)
OR ACTIONS OF ANY PARTY. EXCEPT AS PROHIBITED BY LAW, EACH OF THE PLEDGOR AND THE SECURED PARTY
HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THE
PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER
THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE PLEDGOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF THE SECURED PARTY OR THE LENDERS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE
SECURED PARTY OR THE LENDERS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVERS AND (B) ACKNOWLEDGES THAT THE SECURED PARTY AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH EACH IS A PARTY BECAUSE
OF, AMONG OTHER THINGS, THE PLEDGOR’S WAIVERS AND CERTIFICATIONS CONTAINED HEREIN.

Section 26. Counterparts.

     This Agreement may be executed in one or more counterparts and by different parties hereto in

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separate counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the same document.

[Remainder of page intentionally left blank.

The next page is the signature page.]

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     IN WITNESS WHEREOF, the Pledgor, the Borrower and the Secured Party have caused this
Pledge Agreement to be duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

	 	 	 	 	 
	 	MICROFINANCIAL INCORPORATED

 	 
	 	By:  	/s/ Richard F. Latour
 	 
	 	 	Name:  	Richard F. Latour 	 
	 	 	Title:  	President 	 
	 
	 	TIMEPAYMENT CORP.

 	 
	 	By:  	/s/ Richard F. Latour
 	 
	 	 	Name:  	Richard F. Latour 	 
	 	 	Title:  	President 	 
	 
	 	SOVEREIGN BANK, as Agent

 	 
	 	By:  	/s/ Jeffrey G. Millman
 	 
	 	 	Name:  	Jeffrey G. Millman 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO PLEDGE AGREEMENT]

 

 

Pledge Agreement

Schedule I

MicroFinancial Incorporated, Pledgor

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	% of	 
	 	 	 	 	 	 	 	Certificate	 	 	Outstanding	 
	 	  Issuer	 	 	Stock Held by Pledgor	 	 	Number	 	 	Stock	 
	 	  TimePayment Corp.

	 	 	 100 Shares of
 Common Stock
 $.01 Par Value	 	 	1	 	 	100%	 
	 	  Leasecomm Corporation

	 	 	 185,000 Shares of
 Common Stock
 $.01 par value	 	 	1	 	 	100%	 
	 

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SCHEDULE II

PLEDGE AMENDMENT

     This Pledge Amendment, dated                                         , is delivered pursuant to Section [ ] of
the Pledge Agreement referred to below. The undersigned hereby agrees that this Pledge Amendment
may be attached to the Pledge Agreement dated August 2, 2007, between the undersigned and
Sovereign, as the Secured Party (the “Pledge Agreement”, capitalized terms defined therein
being used herein as therein defined), and that the shares and membership interests listed on this
Pledge Amendment shall be deemed to be part of the Pledged Shares and shall become part of the
Pledged Collateral and shall secure all Obligations.

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	[Name] 	 
	 	 	[Title] 	 
	 

Pledgor pledges:

[                                        ]

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