Document:

Exhibit 10.2

 

FIRST
LIEN GUARANTY

 

GUARANTY AGREEMENT (this “Agreement”) dated as of
January 11, 2007, among each of the Subsidiaries of RiskMetrics Group Holdings,
LLC (the “Borrower”) listed in Schedule I hereto (the “Subsidiary
Guarantors”) and any other Person (as defined in the Credit Agreement)
which may become a Subsidiary Guarantor hereunder pursuant to a duly executed
joinder agreement in the form attached as Exhibit A hereto (each an “Additional
Guarantor”, and together with the Subsidiary Guarantors, the “Guarantors”
and each, a “Guarantor”) and Bank of America, N.A., as collateral agent
(in such capacity, the “Collateral Agent”) for the Secured Parties (as
defined in the Credit Agreement referred to below).

 

Reference is made to that
certain First Lien Credit Agreement dated as of January 11, 2007 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Credit Agreement;” the terms defined therein being used
herein as therein defined), among the Borrower, RISKMETRICS GROUP, INC., a
Delaware corporation (“Holdings”), each lender from time to time party
hereto (collectively, the “Lenders” and individually, a “Lender”),
BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer and BANC OF AMERICA SECURITIES
LLC and CREDIT SUISSE SECURITIES (USA) LLC, as joint lead arrangers and joint
book managers (collectively, the “Arrangers”). Capitalized terms used
and not defined herein (including, without limitation, the term “Obligations,”
as used in Section I and elsewhere herein) are used with the meanings assigned
to such terms in the Credit Agreement.

 

The Lenders have agreed to
make Loans to the Borrower, and the L/C Issuer has agreed to issue Letters of
Credit for the account of the Borrower, in each case pursuant to, and upon the
terms and subject to the conditions specified in, the Credit Agreement. Each
Subsidiary Guarantor is a Subsidiary of the Borrower and, along with the Parent
Guarantor, acknowledges that it has derived and will derive substantial benefit
from the making of the Loans by the Lenders to the Borrower and the issuance of
the Letters of Credit by the L/C Issuer for the account of the Borrower. As
consideration therefor and in order to induce the Lenders to make Loans and the
L/C Issuer to issue Letters of Credit, each Guarantor is willing to execute
this Agreement.

 

Accordingly, the parties
hereto agree as follows:

 

I.              Guarantee.   Each
Guarantor unconditionally guarantees, jointly with any other Guarantors of the
Obligations under the Credit Agreement and other Loan Documents and severally,
as a primary obligor and not merely as a surety, the due and punctual payment
of the Obligations. Each Guarantor waives notice of, or any requirement for
further assent to, any agreements or arrangements whatsoever by the Secured
Parties with any other person pertaining to the Obligations, including
agreements and arrangements for payment, extension, renewal, subordination,
composition, arrangement, discharge or release of the whole or any part of the
Obligations, or for the discharge or surrender of any or all security, or for
the compromise, whether by way of acceptance of part payment or otherwise, and
the same shall in no way impair each Guarantor’s liability hereunder.

 

II.             Obligations Not Waived.   To
the fullest extent permitted by applicable law, each Guarantor waives
presentment to, demand of payment from and protest to the Borrower or any other
person of any of the Obligations, and also waives notice of acceptance of its
guarantee, notice of protest for nonpayment and all other formalities. To the
fullest extent permitted by applicable law, the Guaranty of each Guarantor
hereunder shall not be affected by (a) the failure of any Loan Party to assert
any claim or demand or to enforce or exercise any right or remedy against the
Borrower or any Guarantor under the provisions of the Credit Agreement, any
other Loan Document or otherwise; (b) any extension, renewal

 

 

or increase of or in any of
the Obligations; (c) any rescission, waiver, amendment or modification of, or
any release from, any of the terms or provisions of this Agreement, the Credit
Agreement, any other Loan Document, any guarantee or any other agreement or
instrument, including with respect to any Guarantor under the Loan Documents;
(d) the release of (or the failure to perfect a security interest in) any of
the security held by or on behalf of the Collateral Agent or any other Secured
Party; or (e) the failure or delay of any Secured Party to exercise any right
or remedy against the Borrower or any Guarantor of the Obligations.

 

III.            Security.   Each
Guarantor authorizes the Collateral Agent to (a) take and hold security for the
payment of this Guaranty and the Obligations and exchange, enforce, waive and
release any such security pursuant to the terms of any other Loan Documents;
(b) apply such security and direct the order or manner of sale thereof as it in
its sole discretion may determine subject to the terms of any other Loan
Documents; and (c) release or substitute any one or more endorsees, other
Guarantors or other obligors pursuant to the terms of any other Loan Documents.
In no event shall this Section III require any Guarantor to grant security,
except as required by the terms of the Loan Documents.

 

IV.            Guarantee of Payment.   Each
Guarantor further agrees that its guarantee constitutes an absolute and
unconditional guarantee of payment and performance when due 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 of the security held for 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 Borrower or any
other person.

 

V.             No Discharge or Diminishment of Guaranty.   The obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason (other than the indefeasible payment in full in cash
of the Obligations), including any claim of waiver, release, surrender,
alteration or compromise of any of the Obligations, and shall not be subject to
any defense (other than a defense of payment) or setoff, 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 the failure of the
Collateral Agent or any other Secured Party to assert any claim or demand or to
enforce any remedy under the Credit Agreement, any other Loan Document, any
guarantee or any other agreement or instrument, by any amendment, waiver or
modification of any provision of the Credit Agreement or any other Loan Document
or other agreement or instrument, by any default, failure or delay, willful or
otherwise, in the performance of the Obligations, or by any other act, omission
or delay to do any other act that may or might in any manner or to any extent
vary the risk of any Guarantor or that would 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) or which would impair or
eliminate any right of any Guarantor to subrogation.

 

VI.           Defenses Waived.   To the fullest extent permitted by applicable
law, each Guarantor waives any defense based on or arising out of the
unenforceability of the Obligations or any part thereof from any cause or the
cessation from any cause of the liability (other than the final and
indefeasible payment in full in cash of the Obligations) of the Borrower or any
other person. Subject to the terms of the other Loan Documents, 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 Borrower or any other Guarantor or exercise any other right or remedy
available to them against the Borrower or any other Guarantor, without
affecting or impairing in any way the liability of each Guarantor hereunder
except to the extent the Obligations have been fully, finally and indefeasibly
paid in cash. Pursuant to and 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 law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of each Guarantor against
the Borrower or any other Guarantor or any security.

 

VII.          Agreement to Pay; Subordination.   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 each Guarantor by virtue hereof, upon the
failure of the Borrower 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 or such other
Secured Party as designated thereby in cash an amount equal to the unpaid
principal amount of such Obligations then due, together with accrued and unpaid
interest and fees on such Obligations. Upon payment by each Guarantor of any
sums to the Collateral Agent or any Secured Party as provided above, all rights
of each Guarantor against the Borrower arising as a result thereof by way of
right of subrogation, contribution, reimbursement, indemnity or otherwise shall
in all respects be subordinate and junior in right of payment to the prior
indefeasible payment in full in cash of all the Obligations. In addition, any
indebtedness of the Borrower or any Subsidiary now or hereafter held by each
Guarantor that is required by the Credit Agreement to be subordinated to the
Obligations is hereby subordinated in right of payment to the prior payment in
full of the Obligations. If any amount shall be paid to any Guarantor on
account of (i) such subrogation, contribution, reimbursement, indemnity or
similar right or (ii) any such indebtedness at any time when any Obligation
then due and owing has not been paid, such amount shall be held in trust for
the benefit of the Secured Parties and shall forthwith be paid to the
Collateral Agent to be credited against the payment of the Obligations, whether
matured or unmatured, in accordance with the terms of the Loan Documents.

 

VIII.         General Limitation on Guarantee Obligations.   In any action or proceeding involving
any Subsidiary state corporate law, or any state, Federal or foreign
bankruptcy, insolvency, reorganization or other law affecting the rights of
creditors generally, if the obligations of any Guarantor under this Agreement
would otherwise be held or determined to be void, voidable, invalid or
unenforceable, or subordinated to the claims of any other creditors, on account
of the amount of its liability under this Agreement, then, notwithstanding any
other provision to the contrary, the amount of such liability shall, without
any further action by any Guarantor, any creditor or any other Person, be
automatically limited and reduced to the highest amount that is valid and
enforceable and not subordinated to the claims of other creditors as determined
in such action or proceeding.

 

IX.           Information.   Each
Guarantor assumes all responsibility for being and keeping itself informed of
the Borrower’s financial condition and assets, all other circumstances bearing
upon the risk of nonpayment of the Obligations and the nature, scope and extent
of the risks that each 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.

 

X.            Covenant; Representations and Warranties.   Each Guarantor agrees and covenants
to, and to cause its Subsidiary to, take, or refrain from taking, each action
that is necessary to be taken or not taken, so that no breach of the agreements
and covenants contained in the Credit Agreement pertaining to actions to be
taken, or not taken, by such Guarantor or its Subsidiary will result. Each
Guarantor represents and warrants as to itself that all representations and
warranties relating to it contained in the Credit Agreement are true and
correct, provided that each reference in any such
representation and warranty to the knowledge of Holdings or the Borrower shall,
for the purposes of this Section X, be deemed to be a reference to Guarantor’s
knowledge.

 

 

XI.           Termination.   The
Guaranties made hereunder are continuing and irrevocable guaranties of all
Obligations now or hereafter existing and shall terminate when (i) the
principal of and premium, if any, 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 all Loans; (ii) each payment required to be made under the
Credit Agreement in respect of any Letter of Credit; and (iii) all other
Obligations then due and owing, have in each case been indefeasibly 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 and the L/C Issuer has
no further obligation to issue Letters of Credit under the Credit Agreement; provided that any such Guaranty shall continue to be
effective or be reinstated, as the case may be, if at any time any payment, or
any part thereof, on any Obligation is rescinded or must otherwise be restored
by any Secured Party upon the bankruptcy or reorganization of the Borrower, the
Guarantors or otherwise.

 

XII.          Binding Effect; Several Agreement; Assignments; Releases.   Whenever in
this Agreement any of the parties hereto is referred to, such reference shall
be deemed to include the successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of each Guarantor that are
contained in this Agreement shall bind and inure to the benefit of each party
hereto and their respective successors and assigns. This Agreement shall become
effective as to each Guarantor when a counterpart hereof executed on behalf of
each Guarantor 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 each Guarantor and the Collateral Agent
and their respective successors and assigns, and shall inure to the benefit of
each Guarantor, the Collateral Agent and the other Secured Parties, and their
respective successors and assigns, except that neither the Borrower, Holdings
nor the Guarantors shall have the right to assign its rights or obligations
hereunder or any interest herein (and any such attempted assignment shall be
void) without the prior written consent of the Required Lenders. The Collateral
Agent is hereby expressly authorized to, and agrees upon request of the
Borrower it will, release any Guarantor from its obligations hereunder
(including its Guaranty) in the event that all the Equity Interests of such
Guarantor shall be sold, transferred or otherwise disposed of to a person other
than Holdings or any of its Subsidiaries in a transaction permitted by the
Credit Agreement.

 

XIII.         Waivers; Amendment.   (a)
No failure or delay of the Collateral Agent in exercising any power or right
hereunder 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 hereunder and of the other Secured Parties 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 Guarantor therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) below, 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 Guarantor in any case
shall entitle such Guarantor 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 a written
agreement entered into between the Borrower, the Guarantors and the Collateral
Agent (with the consent of the Lenders if required under the Credit Agreement).

 

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

 

 

XV.          Notices.   All
communications and notices hereunder shall be in writing and given as provided
in Section 11.02 of the Credit Agreement. All communications and notices
hereunder to each Guarantor shall be given to it at its respective address set
forth in Schedule I with a copy to the Borrower.

 

XVI.        Survival of Agreement;
Severability.   (a) All covenants, agreements, representations and warranties made by the Borrower and the Guarantors herein 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 Collateral Agent and the other
Secured Parties and shall survive the making by the Lenders of the Loans and
the issuance of the Letters of Credit by the L/C Issuer regardless of any
investigation made by the Secured Parties or on their behalf, and shall
continue in full force and effect as long as the principal of or any accrued
interest on any Loan or any other fee or amount payable under this Agreement or
any other Loan Document is outstanding and unpaid or the Commitments have not
been terminated.

 

(b)           In the event any one or more of the provisions contained in this
Agreement or in any other Loan Document should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of 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.

 

XVII.        Counterparts.   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, and shall become
effective as provided in Section XII. Delivery of an executed signature page to
this Agreement by electronic transmission (including facsimile or other
electronic transmission (i.e., “PDF” or “TIF”)) shall be as effective as
delivery of a manually executed counterpart of this Agreement.

 

XVIII.      Rules of Interpretation.   The
rules of interpretation specified in Section 1.02 of the Credit Agreement shall
be applicable to this Agreement.

 

XIX.        Jurisdiction; Consent to Service of Process.   (a) Each party
hereto hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or Federal court of the United States
of America sitting in New York City, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or the
other Loan Documents, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in such New York State court or, to the extent permitted by law, in
such Federal court. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that the Collateral Agent or
any other Secured Party may otherwise have to bring any action or proceeding
relating to this Agreement or the other Loan Documents against each Guarantor
or its properties in the courts of any jurisdiction.

 

(b)           Each party hereto hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or the other Loan Documents in any
New York State or Federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

 

(c)            Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in Section
XV. Nothing in this Agreement will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

 

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

 

XXI.        Right of Setoff.   If an Event of Default shall have occurred
and be continuing, each Secured
Party 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
Indebtedness at any time owing by such Secured Party to or for the credit or
the account of each Guarantor against any or all the obligations of such
Guarantor now or hereafter existing under this Agreement and the other Loan
Documents held by such Secured Party, irrespective of whether or not the
Collateral Agent or any Secured Party shall have made any demand under this
Agreement or any other Loan Document and although such obligations may be
unmatured. The rights of each Secured Party under this Section XXI are in
addition to other rights and remedies (including other rights of setoff) which
such Secured Party may have.

 

XXII.       Effectiveness of Obligations.   The covenants, agreements and other obligations hereunder of
Holdings and each of its Subsidiaries parties hereto will become effective
concurrently with (but not prior to) the effectiveness of the Merger, and
thereupon such covenants, agreements and other obligations shall become fully
effective and operative without any further grant, act, confirmation or consent
by Holdings or any such Subsidiary.

 

 

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

 

 

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

 

 

	
   

  	
  INSTITUTIONAL
  SHAREHOLDER SERVICES

  
	
   

  	
  HOLDINGS, INC.

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M. Connolly

  
	
   

  	
   

  	
  Title: President

  

 

 

	
   

  	
  INSTITUTIONAL
  SHAREHOLDER SERVICES,

  
	
   

  	
  INC.

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M. Connolly

  
	
   

  	
   

  	
  Title: President

  

 

 

	
   

  	
  INVESTOR
  RESPONSIBILITY RESEARCH

  
	
   

  	
  CENTER,
  INC.

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M. Connolly

  
	
   

  	
   

  	
  Title: President

  

 

 

	
   

  	
  ISS
  CORPORATE SERVICES, INC.

  
	
   

  	
  as
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M. Connolly

  
	
   

  	
   

  	
  Title: President

  

 

 

	
   

  	
  ISS RREV, INC.

  
	
   

  	
  as
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M. Connolly

  
	
   

  	
   

  	
  Title: President

  

 

 

[First
Lien Guaranty Agreement]

 

 

	
   

  	
  RISKMETRICS
  SOLUTIONS, INC.

  
	
   

  	
  as
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. Ethan Berman

  	
   

  
	
   

  	
   

  	
  Name: M. Ethan Berman

  
	
   

  	
   

  	
  Title: President

  

 

 

	
   

  	
  SECURITIES
  CLASS ACTION SERVICES LLC

  
	
   

  	
  as
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M.
  Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M.
  Connolly

  
	
   

  	
   

  	
  Title: President

  

 

 

[First Lien Guaranty Agreement]

 

 

	
  Agreed to
  and Accepted:

  
	
   

  
	
  BANK OF
  AMERICA, N.A.,

  
	
  as Administrative Agent

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Robert Klawinski

  	
   

  
	
   

  	
  Name: Robert Klawinski

  	
   

  
	
   

  	
  Title: Senior
  Vice President

  	
   

  

 

 

[First Lien Guaranty Agreement]

 

 

Schedule I

to the Guaranty

 

Names and Notice Addresses of each Guarantor

 

	
  RiskMetrics Solutions,

  	
   

  	
  One
  Chase Manhattan

  
	
  Inc.

  	
   

  	
  Plaza,
  44th Floor

  
	
   

  	
   

  	
  New
  York, New York

  
	
   

  	
   

  	
  10005

  
	
   

  	
   

  	
   

  
	
  Institutional Shareholder

  	
   

  	
  2099
  Gaither Road,

  
	
  Services
  Holdings, Inc.

  	
   

  	
  Suite
  501

  
	
   

  	
   

  	
  Rockville,
  Maryland

  
	
   

  	
   

  	
  20850

  
	
   

  	
   

  	
   

  
	
  Institutional Shareholder

  	
   

  	
  2099
  Gaither Road,

  
	
  Services,
  Inc.

  	
   

  	
  Suite
  501

  
	
   

  	
   

  	
  Rockville,
  Maryland

  
	
   

  	
   

  	
  20850

  
	
   

  	
   

  	
   

  
	
  Securities
  Class Action

  	
   

  	
  2099
  Gaither Road,

  
	
  Services
  LLC

  	
   

  	
  Suite
  501

  
	
   

  	
   

  	
  Rockville,
  Maryland

  
	
   

  	
   

  	
  20850

  
	
   

  	
   

  	
   

  
	
  Investor Responsibility

  	
   

  	
  2099
  Gaither Road,

  
	
  Research
  Center, Inc.

  	
   

  	
  Suite
  501

  
	
   

  	
   

  	
  Rockville,
  Maryland

  
	
   

  	
   

  	
  20850

  
	
   

  	
   

  	
   

  
	
  ISS
  RREV, Inc.

  	
   

  	
  2099
  Gaither Road,

  
	
   

  	
   

  	
  Suite
  501

  
	
   

  	
   

  	
  Rockville,
  Maryland

  
	
   

  	
   

  	
  20850

  
	
   

  	
   

  	
   

  
	
  ISS Corporate Services,

  	
   

  	
  2101 Gaither Road, Suite 200

  
	
  Inc.

  	
   

  	
  Rockville,
  Maryland 20850

  

 

 

EXHIBIT A

to the Guaranty

 

[Form of]

JOINDER
AGREEMENT

 

Reference is made to that
certain First Lien Credit Agreement dated as of January 11, 2007 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Credit Agreement;” the terms defined therein being used
herein as therein defined), among RISKMETRICS GROUP HOLDINGS, LLC, a Delaware
limited liability company (the “Borrower”), RISKMETRICS GROUP, INC., a
Delaware corporation (“Holdings”), each lender from time to time party
thereto (collectively, the “Lenders” and individually, a “Lender”),
BANK OF AMERICA, N.A., as Administrative Agent, Swing
Line Lender and L/C Issuer and BANC OF AMERICA SECURITIES LLC and CREDIT SUISSE
SECURITIES (USA) LLC, as joint lead arrangers and joint book managers
(collectively, the “Arrangers”). Capitalized terms used and not defined
herein are used with the meanings assigned to such terms in the Credit
Agreement.

 

WITNESSETH:

 

WHEREAS, the Subsidiary
Guarantors, any other Person (as defined in the Credit Agreement) which may
become a Guarantor thereunder pursuant to a duly executed joinder agreement in
the form attached as Exhibit A thereto (each a “Guarantor”,
collectively, the “Guarantors”) and Bank of America, N.A., as collateral
agent (in such capacity, the “Collateral Agent”) for the Secured Parties
(as defined in the Credit Agreement) are parties to the Guaranty Agreement (the
“Guaranty”) dated as of January 11,2007.

 

WHEREAS, the Lenders have
agreed to make Loans to the Borrower, and the L/C Issuer has agreed to issue
Letters of Credit for the account of the Borrower, in each case pursuant to,
and upon the terms and subject to the conditions specified in, the Credit
Agreement.

 

WHEREAS, each Subsidiary
Guarantor is a Subsidiary of the Borrower and acknowledges that it has derived
and will derive substantial benefit from the making of the Loans by the Lenders
to the Borrower and the issuance of the Letters of Credit by the L/C Issuer for
the account of the Borrower.

 

WHEREAS,
pursuant to Section 6.12(a) of the Credit Agreement, each Subsidiary that was
not in existence on the date of the Credit Agreement is required to become a
Guarantor under the Credit Agreement by executing a joinder agreement.

 

WHEREAS,
the undersigned Subsidiary (the “New Guarantor”) is executing this
joinder agreement (“Joinder Agreement”) to the Guaranty in order to
induce the Lenders to make additional Revolving Loans and as consideration for the
Loans previously made.

 

NOW,
THEREFORE, the Administrative Agent, Collateral Agent and the New Guarantor
hereby agree as follows:

 

 

(a)           Guarantee.   In
accordance with Section 6.12(a) of the Credit Agreement, the New Guarantor by
its signature below becomes a Guarantor under the Guaranty with the same force
and effect as if originally named therein as a Guarantor.

 

(b)           Representations and Warranties.   The New Guarantor
hereby (a) agrees to all the
terms and provisions of the Guaranty applicable to it and its subsidiaries as a
Guarantor thereunder and (b) represents and warrants that the representations
and warranties made by it as a Guarantor thereunder are true and correct in all
material respects (except that any representation and warranty that is qualified
as to “materiality” or “Material Adverse Effect” shall be true and correct in
all respects) on and as of the date hereof. Each reference to a Guarantor in
the Guaranty shall be deemed to include the New Guarantor.

 

(c)           Severability.   Any
provision of this Joinder Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

(d)           Counterparts.   This
Joinder Agreement may be executed in counterparts, each of which shall
constitute an original. Delivery of an executed signature page to this Joinder
Agreement by electronic transmission (including by facsimile or other
electronic transmission (i.e., “PDF” or “TIF”)) shall be as effective as
delivery of a manually executed counterpart of this Joinder Agreement.

 

(e)           No Waiver.   Except
as expressly supplemented hereby, the Guaranty shall remain in full force and
effect.

 

(f)            Notices.   All
notices, requests and demands to or upon the New Guarantor, any Agent or any
Lender shall be governed by the terms of Section 11.02 of the Credit Agreement.

 

(g)           Governing Law.   THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

[Signature
Pages Follow]

 

2

 

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

 

 

 

	
   

  	
   

  	
    [NEW
  GUARANTOR]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Address for
  Notices:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
    BANK OF AMERICA, N.A. , as Collateral

  	
   

  
	
   

  	
   

  	
    Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

3Exhibit 10.3

 

 

 

FIRST LIEN SECURITY AGREEMENT

 

By

 

RISKMETRICS GROUP HOLDINGS, LLC,

as Borrower

 

and

 

THE GUARANTORS PARTY HERETO

 

and

 

BANK OF AMERICA, N.A.,

as Collateral Agent

 

 

Dated as of January 11, 2007

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  PREAMBLE

  	
  1

  
	
   

  	
   

  
	
  RECITALS

  	
  1

  
	
   

  	
   

  
	
  AGREEMENT

  	
  2

  
	
   

  	
   

  
	
  ARTICLE I

  
	
   

  	
   

  
	
  DEFINITIONS AND INTERPRETATION

  
	
   

  	
   

  
	
  SECTION 1.1.

  	
  Definitions

  	
  2

  
	
  SECTION 1.2.

  	
  Interpretation

  	
  7

  
	
  SECTION 1.3.

  	
  Resolution
  of Drafting Ambiguities

  	
  7

  
	
  SECTION 1.4.

  	
  Perfection
  Certificate

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  
	
  GRANT OF SECURITY AND SECURED OBLIGATIONS

  
	
   

  	
   

  	
   

  
	
  SECTION 2.1.

  	
  Grant of
  Security Interest

  	
  8

  
	
  SECTION 2.2.

  	
  Filings

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES; USE OF PLEDGED
  COLLATERAL

  
	
   

  
	
  SECTION 3.1.

  	
  Delivery of
  Certificated Securities Collateral

  	
  10

  
	
  SECTION 3.2.

  	
  Perfection
  of Uncertificated Securities Collateral

  	
  10

  
	
  SECTION 3.3.

  	
  [Reserved]

  	
  10

  
	
  SECTION 3.4.

  	
  Other
  Actions

  	
  11

  
	
  SECTION 3.5.

  	
  Joinder of
  Additional Guarantors

  	
  12

  
	
  SECTION 3.6.

  	
  Supplements;
  Further Assurances

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS, WARRANTIES AND COVENANTS

  
	
   

  
	
  SECTION 4.1.

  	
  Defense of
  Claims; Transferability of Pledged Collateral

  	
  14

  
	
  SECTION 4.2.

  	
  Other
  Financing Statements

  	
  14

  
	
  SECTION 4.3.

  	
  Location of
  Inventory and Equipment

  	
  14

  

 

i

 

	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.4.

  	
  [Reserved]

  	
   

  	
  14

  
	
  SECTION 4.5.

  	
  Consents,
  etc.

  	
   

  	
  14

  
	
  SECTION 4.6.

  	
  Pledged
  Collateral

  	
   

  	
  15

  
	
  SECTION 4.7.

  	
  Insurance

  	
   

  	
  15

  
	
  SECTION 4.8.

  	
  Chief
  Executive Office; Change of Name; Jurisdiction of Organization

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL

  
	
   

  
	
  SECTION 5.1.

  	
  Pledge of
  Additional Securities Collateral

  	
  15

  
	
  SECTION 5.2.

  	
  Voting
  Rights; Distributions; etc.

  	
  16

  
	
  SECTION 5.3.

  	
  [Reserved]

  	
  17

  
	
  SECTION 5.4.

  	
  Certain
  Agreements of Pledgors As Issuers and Holders of Equity Interests

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  CERTAIN PROVISIONS CONCERNING INTELLECTUAL

  
	
  PROPERTY COLLATERAL

  
	
   

  
	
  SECTION 6.1.

  	
  Grant of
  Intellectual Property License

  	
  17

  
	
  SECTION 6.2.

  	
  Protection
  of Collateral Agent’s Security

  	
  18

  
	
  SECTION 6.3.

  	
  After-Acquired
  Property

  	
  18

  
	
  SECTION 6.4.

  	
  Litigation

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  CERTAIN PROVISIONS CONCERNING RECEIVABLES

  
	
   

  
	
  SECTION 7.1.

  	
  Maintenance
  of Records

  	
  19

  
	
  SECTION 7.2.

  	
  [Reserved]

  	
  20

  
	
  SECTION 7.3.

  	
  [Reserved]

  	
  20

  
	
  SECTION 7.4.

  	
  Collection

  	
  20

  
	
  ARTICLE VIII

  
	
   

  
	
  TRANSFERS

  
	
  SECTION 8.1.

  	
  [Reserved]

  	
  20

  
					

 

ii

 

	
   

  	
  Page

  
	
   

  
	
  ARTICLE IX

  
	
   

  
	
  REMEDIES

  
	
   

  
	
  SECTION 9.1.

  	
  Remedies

  	
  20

  
	
  SECTION 9.2.

  	
  Notice of
  Sale

  	
  22

  
	
  SECTION 9.3.

  	
  Waiver of
  Notice and Claims

  	
  22

  
	
  SECTION 9.4.

  	
  Certain
  Sales of Pledged Collateral

  	
  23

  
	
  SECTION 9.5.

  	
  No Waiver;
  Cumulative Remedies

  	
  24

  
	
  SECTION 9.6.

  	
  Certain
  Additional Actions Regarding Intellectual Property

  	
  24

  
	
   

  
	
  ARTICLE X

  
	
   

  
	
  APPLICATION OF PROCEEDS

  
	
   

  
	
  SECTION
  10.1.

  	
  Application
  of Proceeds

  	
  24

  
	
  ARTICLE XI

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  
	
  SECTION
  11.1.

  	
  Concerning
  Collateral Agent

  	
  25

  
	
  SECTION
  11.2.

  	
  Collateral
  Agent May Perform; Collateral Agent Appointed Attorney-in-Fact

  	
  26

  
	
  SECTION
  11.3.

  	
  Continuing
  Security Interest; Assignment

  	
  27

  
	
  SECTION
  11.4.

  	
  Termination;
  Release

  	
  27

  
	
  SECTION
  11.5.

  	
  Modification
  in Writing

  	
  28

  
	
  SECTION
  11.6.

  	
  Notices

  	
  28

  
	
  SECTION
  11.7.

  	
  Governing
  Law, Consent to Jurisdiction and Service of Process; Waiver of Jury Trial

  	
  28

  
	
  -SECTION 11.8.

  	
  Severability
  of Provisions

  	
  29

  
	
  SECTION
  11.9.

  	
  Execution in
  Counterparts

  	
  29

  
	
  SECTION 11.10.

  	
  Business
  Days

  	
  29

  
	
  SECTION
  11.11.

  	
  No Credit
  for Payment of Taxes or Imposition

  	
  29

  
	
  SECTION
  11.12.

  	
  No Claims
  Against Collateral Agent

  	
  29

  
	
  SECTION
  11.13.

  	
  No Release

  	
  29

  
	
  SECTION
  11.14.

  	
  Obligations
  Absolute

  	
  30

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
  S-1

  
	
   

  	
   

  	
   

  
	
  EXHIBIT 1

  	
  Form of Issuer’s
  Acknowledgment

  	
   

  
	
  EXHIBIT 2

  	
  Form of
  Securities Pledge Amendment

  	
   

  
	
  EXHIBIT 3

  	
  Form of
  Joinder Agreement

  	
   

  
	
  EXHIBIT 4

  	
  [Reserved]

  	
   

  

 

iii

 

	
  EXHIBIT 5

  	
  [Reserved]

  
	
  EXHIBIT 6

  	
  Form of
  First Lien Copyright Security Agreement

  
	
  EXHIBIT 7

  	
  Form of
  First Lien Patent Security Agreement

  
	
  EXHIBIT 8

  	
  Form of
  First Lien Trademark Security Agreement

  

 

iv

 

FIRST LIEN SECURITY AGREEMENT

 

This FIRST
LIEN SECURITY AGREEMENT dated as of January 11, 2007 (as amended, amended and
restated, supplemented or otherwise modified from time to time in accordance
with the provisions hereof, this “Agreement”) made by RISKMETRICS GROUP
HOLDINGS, LLC, a Delaware limited liability company (the “Borrower”),
and the Guarantors from to time to time party hereto (the “Guarantors”),
as pledgors, assignors and debtors (the Borrower, together with the Guarantors,
in such capacities and together with any successors in such capacities, the “Pledgors,”
and each, a “Pledgor”), in favor of BANK OF AMERICA, N.A., in its
capacity as collateral agent pursuant to the Credit Agreement (as hereinafter
defined), as pledgee, assignee and secured party (in such capacities and
together with any successors in such capacities, the “Collateral Agent”).

 

RECITALS:

 

A.            The Borrower,
RiskMetrics Group, Inc., a Delaware corporation (“Holding”), Bank of
America, N.A., as Administrative Agent and the lenders from time to time party
thereto have, in connection with the execution and delivery of this Agreement,
entered into that certain First Lien Credit Agreement, dated as of the date
hereof (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”; which term shall also include
and refer to any increase in the amount of indebtedness under the Credit
Agreement and any refinancing or replacement of the Credit Agreement (whether
under a bank facility, securities offering or otherwise) or one or more
successor or replacement facilities whether or not with a different group of
agents or lenders (whether under a bank facility, securities offering or
otherwise) and whether or not with different obligors upon the Administrative
Agent’s acknowledgment of the termination of the predecessor Credit Agreement).

 

B.            Each Guarantor has,
pursuant to the Guaranty, unconditionally guaranteed the Secured Obligations
(as hereinafter defined).

 

C.            The Borrower and each
Guarantor will receive substantial benefits from the execution, delivery and
performance of the obligations under the Credit Agreement, the Guaranty and the
other Loan Documents and each is, therefore, willing to enter into this
Agreement.

 

D.            This Agreement is
given by each Pledgor in favor of the Collateral Agent for the benefit of the
Secured Parties (as hereinafter defined) to secure the payment and performance
of all of the Secured Obligations.

 

F.             It is a condition to
(i) the obligations of the Lenders to make the Loans under the Credit
Agreement, (ii) the obligations of the L/C Issuer to issue Letters of Credit,
and (iii) the performance of the obligations of the Secured Parties under
Secured Hedge Agreements and Secured Cash Management Agreements that each
Pledgor execute and deliver the applicable Loan Documents, including this
Agreement.

 

 

AGREEMENT:

 

NOW THEREFORE,
in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
each Pledgor and the Collateral Agent hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS AND INTERPRETATION

 

SECTION 1.1.        Definitions.

 

(a)           Unless
otherwise defined herein or in the Credit Agreement, capitalized terms used
herein that are defined in the UCC shall have the meanings assigned to them in
the UCC; provided that in any event, the following terms shall have the
meanings assigned to them in the UCC:

 

“Accounts”; “Bank”; “Chattel Paper”; “Commercial
Tort Claim”; “Commodity Account”; “Commodity Contract”; “Documents”;
“Electronic Chattel Paper”; “Entitlement Order”; “Equipment”;
“Financial Asset”; “Fixtures”; “Goods”, “Inventory”;
“Letter-of-Credit Rights”; “Letters of Credit”; “Money”; “Payment
Intangibles”; “Proceeds”; “Records”; “Securities
Intermediary”; “Security Entitlement”; “Supporting Obligations”;
and “Tangible Chattel Paper.”

 

(b)           Terms used but not
otherwise defined herein that are defined in the Credit Agreement shall have
the meanings given to them in the Credit Agreement.

 

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

 

“Account Debtor” shall mean each person who is obligated on a
Receivable or Supporting Obligation related thereto.

 

“Agreement” shall have the meaning assigned to such term in the
Preamble hereof.

 

“Borrower”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Collateral Agent” shall have the meaning assigned to such term
in the Preamble hereof.

 

“Collateral Support” shall mean all property (real or personal)
assigned, hypothecated or otherwise securing any Pledged Collateral and shall
include any security agreement or other agreement granting a lien or security
interest in such real or personal property.

 

“Contracts” shall mean, collectively, with respect to each
Pledgor, all sale, service, performance, equipment or property lease contracts,
agreements and grants and all other

 

2

 

contracts,
agreements or grants (in each case, whether written or oral, or third party or
intercompany), between such Pledgor and any third party, and all assignments,
amendments, restatements, supplements, extensions, renewals, replacements or
modifications thereof.

 

“Control” shall mean in the case of any Security Entitlement, “control,”
as such term is defined in Section 8-106 of the UCC.

 

“Control Agent” has the meaning assigned to such term in the
Intercreditor Agreement.

 

“Control Collateral” has the meaning assigned to such term in
the Intercreditor Agreement.

 

“Copyrights” shall mean, collectively, with respect to each
Pledgor, all copyrights (whether statutory or common law, whether established
or registered in the United States or any other country or any political
subdivision thereof, whether registered or unregistered and whether published
or unpublished) and all copyright registrations and applications made by such
Pledgor, in each case, whether now owned or hereafter created or acquired by or
assigned to such Pledgor, together with any and all (i) rights and privileges
arising under applicable law with respect to such Pledgor’s use of such
copyrights, (ii) reissues, renewals, continuations and extensions thereof and
amendments thereto, (iii) income, fees, royalties, damages, claims and payments
now or hereafter due and/or payable with respect thereto, including damages and
payments for past, present or future infringements thereof, (iv) rights
corresponding thereto throughout the world and (v) rights to sue for past,
present or future infringements thereof.

 

“Credit Agreement” shall have the meaning assigned to such term
in Recital A hereof.

 

“Distributions” shall mean, collectively, with respect to each
Pledgor, all dividends, cash, options, warrants, rights, instruments,
distributions, returns of capital or principal, income, interest, profits and
other property, interests (debt or equity) or proceeds, including as a result
of a split, revision, reclassification or other like change of the Pledged
Securities, from time to time received, receivable or otherwise distributed to
such Pledgor in respect of or in exchange for any or all of the Pledged
Securities or Intercompany Notes.

 

“First Lien Copyright Security Agreement” shall mean an
agreement substantially in the form of Exhibit 6 hereto.

 

“First Lien Patent Security Agreement” shall mean an agreement
substantially in the form of Exhibit 7 hereto.

 

“First Lien Trademark Security Agreement” shall mean an
agreement substantially in the form of Exhibit 8 hereto.

 

3

 

“General
Intangibles” shall mean, collectively, with respect to each Pledgor, all “general
intangibles,” as such term is defined in the UCC, of such Pledgor and, in any
event, shall include (i) all of such Pledgor’s rights, title and interest in,
to and under all Contracts and insurance policies (including all rights and
remedies relating to monetary damages, including indemnification rights and
remedies, and claims for damages or other relief pursuant to or in respect of
any Contract), (ii) all know-how and warranties relating to any of the Pledged
Collateral, (iii) any and all other rights, claims, choses-in-action and causes
of action of such Pledgor against any other person and the benefits of any and
all collateral or other security given by any other person in connection
therewith, (iv) all guarantees, endorsements and indemnifications on, or of,
any of the Pledged Collateral, (v) all lists, books, records, correspondence,
ledgers, printouts, files (whether in printed form or stored electronically),
tapes and other papers or materials containing information relating to any of
the Pledged Collateral, including all customer lists, identification of
suppliers, data, plans, blueprints, specifications, designs, drawings,
appraisals, recorded knowledge, surveys, studies, engineering reports, test
reports, manuals, standards, processing standards, performance standards,
catalogs, research data, computer and automatic machinery software and programs
and the like, field repair data, accounting information pertaining to such
Pledgor’s operations or any of the Pledged Collateral and all media in which or
on which any of the information or knowledge or data or records may be recorded
or stored and all computer programs used for the compilation or printout of
such information, knowledge, records or data, (vi) all licenses, consents,
permits, variances, certifications, authorizations and approvals, however
characterized, now or hereafter acquired or held by such Pledgor, including
building permits, certificates of occupancy, environmental certificates,
industrial permits or licenses and certificates of operation and (vii) all
rights to reserves, deferred payments, deposits, refunds, indemnification of
claims and claims for tax or other refunds against any Governmental Authority.

 

“Goodwill” shall mean, collectively, with respect to each
Pledgor, the goodwill connected with such Pledgor’s business including all
goodwill connected with (i) the use of and symbolized by any Trademark or
Intellectual Property License with respect to any Trademark in which such
Pledgor has any interest, (ii) all know-how, trade secrets, customer and
supplier lists, proprietary information, inventions, methods, procedures,
formulae, descriptions, compositions, technical data, drawings, specifications,
name plates, catalogs, confidential information and the right to limit the use
or disclosure thereof by any person, pricing and cost information, business and
marketing plans and proposals, consulting agreements, engineering contracts and
such other assets which relate to such goodwill and (iii) all product lines of
such Pledgor’s business.

 

“Guarantors” shall have the meaning assigned to such term in the
Preamble hereof.

 

“Instruments” shall mean, collectively, with respect to each
Pledgor, all “instruments,” as such term is defined in Article 9, rather than
Article 3, of the UCC, and shall include all promissory notes, drafts, bills of
exchange or acceptances.

 

“Intellectual Property Collateral” shall mean, collectively, the
Patents, Trademarks, Copyrights, Intellectual Property Licenses and Goodwill.

 

4

 

“Intellectual
Property Licenses” shall mean, collectively, with respect to each Pledgor,
all license and distribution agreements with, and covenants not to sue, any
other party with respect to any Patent, Trademark or Copyright or any other
patent, trademark or copyright, whether such Pledgor is a licensor or licensee,
distributor or distributee under any such license or distribution agreement,
together with any and all (i) renewals, extensions, supplements and continuations thereof, (ii) income,
fees, royalties, damages, claims and payments now and hereafter due and/or
payable thereunder and with respect thereto including damages and payments for
past, present or future infringements or violations thereof, (iii) rights to
sue for past, present and future infringements or violations thereof and (iv)
other rights to use, exploit or practice any or all of the Patents, Trademarks
or Copyrights or any other patent, trademark or copyright.

 

“Intercompany Notes” shall mean, with respect to each Pledgor,
all intercompany notes described in Schedule 11 to the Perfection
Certificate and intercompany notes hereafter acquired by such Pledgor and all
certificates, instruments or agreements evidencing such intercompany notes, and
all assignments, amendments, restatements, supplements, extensions, renewals,
replacements or modifications thereof to the extent permitted pursuant to the
terms hereof.

 

“Investment Property” shall mean a security, whether
certificated or uncertificated, Security Entitlement, Commodity Contract or
Commodity Account, excluding, however, the Securities Collateral.

 

“Joinder Agreement” shall mean an agreement substantially in the
form of Exhibit 3 hereto.

 

“LC Account” shall mean any account established and maintained
in accordance with the provisions of Section 2.03(g) of the Credit
Agreement and all property from time to time on deposit in such LC Account.

 

“Material Intellectual Property Collateral” shall mean any
Intellectual Property Collateral that is material (i) to the use and operation
of the Pledged Collateral or (ii) to the business, results of operations,
properties or financial condition, of the Pledgors, taken as a whole.

 

“Patents” shall mean, collectively, with respect to each
Pledgor, all patents issued or assigned to, and all patent applications and
registrations made by, such Pledgor (whether established or registered or
recorded in the United States or any other country or any political subdivision
thereof), together with any and all (i) rights and privileges arising under
applicable law with respect to such Pledgor’s use of any patents, (ii)
inventions and improvements described and claimed therein, (iii) reissues,
divisions, continuations, renewals, extensions and continuations-in-part
thereof and amendments thereto, (iv) income, fees, royalties, damages, claims
and payments now or hereafter due and/or payable thereunder and with respect
thereto including damages and payments for past, present or future
infringements thereof, (v) rights corresponding thereto throughout the world
and (vi) rights to sue for past, present or future infringements thereof.

 

5

 

“Perfection
Certificate” shall mean that certain perfection certificate dated January
11, 2007, executed and delivered by each Pledgor in favor of the Collateral
Agent for the benefit of the Secured Parties, and each other Perfection
Certificate (which shall be in form and substance reasonably acceptable to the
Collateral Agent) executed and delivered by the applicable Guarantor in favor
of the Collateral Agent for the benefit of the Secured Parties
contemporaneously with the execution and delivery of each Joinder Agreement
executed in accordance with Section 3.5 hereof, in each case, as the same may
be amended, amended and restated, supplemented or otherwise modified from time
to time in accordance with the Credit Agreement or upon the request of the
Collateral Agent.

 

“Pledge Amendment” shall have the meaning assigned to such term
in Section 5.1 hereof.

 

“Pledged Collateral” shall have the meaning assigned to such
term in Section 2.1 hereof.

 

“Pledged Securities” shall mean, collectively, with respect to
each Pledgor, (i) all issued and outstanding Equity Interests of each issuer
set forth on Schedules 10(a) and 10(b) to the Perfection
Certificate as being owned by such Pledgor and all options, warrants, rights,
agreements and additional Equity Interests of whatever class of any such issuer
acquired by such Pledgor (including by issuance), together with all rights,
privileges, authority and powers of such Pledgor relating to such Equity
Interests in each such issuer or under any Organizational Document of each such
issuer, and the certificates, instruments and agreements representing such
Equity Interests and any and all interest of such Pledgor in the entries on the
books of any financial intermediary pertaining to such Equity Interests, (ii)
all Equity Interests of any issuer, which Equity Interests are hereafter
acquired by such Pledgor (including by issuance) and all options, warrants,
rights, agreements and additional Equity Interests of whatever class of any
such issuer acquired by such Pledgor (including by issuance), together with all
rights, privileges, authority and powers of such Pledgor relating to such
Equity Interests or under any Organizational Document of any such issuer, and
the certificates, instruments and agreements representing such Equity Interests
and any and all interest of such Pledgor in the entries on the books of any
financial intermediary pertaining to such Equity Interests, from time to time
acquired by such Pledgor in any manner, and (iii) all Equity Interests issued
in respect of the Equity Interests referred to in clause (i) or (ii) upon any
consolidation or merger of any issuer of such Equity Interests; provided,
however, that Pledged Securities shall not include (i) any Equity
Interests which are not required to be pledged pursuant to Section 6.12
of the Credit Agreement, (ii) any Equity Interests in any Joint Venture to the
extent and for so long as the applicable joint venture agreement or other
Organizational Document prohibits the pledge of such Equity Interests to the
Collateral Agent or (iii) any Equity Interests of any CFC which represent more
than 65% of the total voting power of all Equity Interests of such CFC.

 

“Pledgor”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Receivables” shall mean all (i) Accounts, (ii) Chattel Paper,
(iii) Payment Intangibles, (iv) General Intangibles, (v) Instruments and (vi)
all other rights to payment, whether or

 

6

 

not earned by
performance, for goods or other property sold, leased, licensed, assigned or
otherwise disposed of, or services rendered or to be rendered, regardless of
how classified under the UCC together with all of Pledgors’ rights, if any, in
any goods or other property giving rise to such right to payment and all
Collateral Support and Supporting Obligations related thereto and all Records
relating thereto.

 

“Secured Obligations” shall mean (i) the Obligations, and (ii)
the due and punctual payment and performance of all obligations of the Borrower
and the other Loan Parties under each Secured Hedge Agreement and Secured Cash
Management Agreement.

 

“Securities Collateral” shall mean, collectively, the Pledged Securities,
the Intercompany Notes and the Distributions.

 

“Trademarks” shall mean, collectively, with respect to each
Pledgor, all trademarks (including service marks), slogans, logos,
certification marks, trade dress, uniform resource locations (URL’s), domain
names, corporate names and trade names, whether registered or unregistered,
owned by or assigned to such Pledgor and all registrations and applications for
the foregoing (whether statutory or common law and whether established or
registered in the United States or any other country or any political
subdivision thereof), together with any and all (i) rights and privileges
arising under applicable law with respect to such Pledgor’s use of any
trademarks, (ii) reissues, continuations, extensions and renewals thereof and
amendments thereto, (iii) income, fees, royalties, damages and payments now and
hereafter due and/or payable thereunder and with respect thereto, including
damages, claims and payments for past, present or future infringements thereof,
(iv) rights corresponding thereto throughout the world and (v) rights to sue
for past, present and future infringements thereof.

 

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

 

SECTION 1.2.       Interpretation.   The
rules of interpretation specified in the Credit Agreement (including Section
1.02 thereof) shall be applicable to this Agreement.

 

SECTION 1.3.       Resolution
of Drafting Ambiguities.   Each Pledgor acknowledges and agrees that it
was represented by counsel in connection with the execution and delivery
hereof, that it and its counsel reviewed and participated in the preparation
and negotiation hereof and that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party (i.e., the
Collateral Agent) shall not be employed in the interpretation hereof.

 

7

 

SECTION 1.4.        Perfection Certificate.   The
Collateral Agent and each Secured Party agree that the Perfection Certificate
and all descriptions of Pledged Collateral, schedules, amendments and
supplements thereto are and shall at all times remain a part of this Agreement.

 

ARTICLE II

 

GRANT OF SECURITY AND SECURED OBLIGATIONS

 

SECTION 2.1.        Grant
of Security Interest.   As collateral security for the payment and
performance in full of all the Secured Obligations, each Pledgor hereby pledges
and grants to the Collateral Agent for the benefit of the Secured Parties, a
lien on and security interest in all of the right, title and interest of such
Pledgor in, to and under the following property, wherever located, and whether
now existing or hereafter arising or acquired from time to time (collectively, the
“Pledged Collateral”):

 

	
  (i)

  	
   

  	
  all Accounts;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  all Equipment, Goods, Inventory and Fixtures;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  all Documents, Instruments and Chattel Paper;

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  all Letters of Credit and Letter-of-Credit Rights;

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  all Securities Collateral;

  
	
   

  	
   

  	
   

  
	
  (vi)

  	
   

  	
  all Investment Property;

  
	
   

  	
   

  	
   

  
	
  (vii)

  	
   

  	
  all Intellectual Property Collateral;

  
	
   

  	
   

  	
   

  
	
  (viii)

  	
   

  	
  the Commercial Tort Claims described on Schedule 13 to the
  Perfection Certificate;

  
	
   

  	
   

  	
   

  
	
  (ix)

  	
   

  	
  all General Intangibles;

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  all Supporting Obligations;

  
	
   

  	
   

  	
   

  
	
  (xi)

  	
   

  	
  all books and records relating to the Pledged Collateral; and

  
	
   

  	
   

  	
   

  
	
  (xii)

  	
   

  	
  to the extent not covered by clauses (i) through (xi) of this
  sentence, all other personal property of such Pledgor, whether tangible or
  intangible, and all Proceeds and products of each of the foregoing and all
  accessions to, substitutions and replacements for, and rents, profits and
  products of, each of the foregoing, any and all Proceeds of any insurance,
  indemnity, warranty or guaranty payable to such Pledgor from time to time
  with respect to any of the foregoing.

  
	
   

  	
   

  	
   

  

8

 

Notwithstanding
anything to the contrary contained in clauses (i) through (xii) above, the
security interest created by this Agreement shall not extend to, and the term “Pledged
Collateral” shall not include, any Excluded Property. The Pledgors shall
provide to the Collateral Agent such information regarding any Excluded
Property as the Collateral Agent may reasonably request. In addition, as
collateral security for the payment and performance in full of all the Secured
Obligations, each Pledgor hereby pledges and grants to the Control Agent for
the benefit of the Collateral Agent and the Secured Parties, a Lien on and
security interest in all of the right, title and interest of such Pledgor in,
to and under the Control Collateral. It is further understood and agreed that
at any time that the Intercreditor Agreement is in effect, any Control
Collateral that is required to be delivered, or control over which is required
to be granted, to the Collateral Agent hereunder shall be delivered to the
Control Agent or be subject to Control Agent’s control.

 

SECTION 2.2.       Filings.

 

(a)           Each
Pledgor hereby irrevocably authorizes the Collateral Agent at any time and from
time to time to file in any relevant jurisdiction any financing statements
(including fixture filings) and amendments thereto that contain the information
required by Article 9 of the Uniform Commercial Code of each applicable
jurisdiction for the filing of any financing statement or amendment relating to
the Pledged Collateral, including (i) whether such Pledgor is an organization,
the type of organization and any organizational identification number issued to
such Pledgor, (ii) any financing or continuation statements or other documents
without the signature of such Pledgor where permitted by law, including the
filing of a financing statement describing the Pledged Collateral as “all
assets now owned or hereafter acquired by the Pledgor or in which Pledgor
otherwise has rights” and (iii) in the case of a financing statement filed as a
fixture filing or covering Pledged Collateral constituting minerals or the like
to be extracted or timber to be cut, a sufficient description of the real
property to which such Pledged Collateral relates. Each Pledgor agrees to
provide all information described in the immediately preceding sentence to the
Collateral Agent promptly upon request by the Collateral Agent.

 

(b)          Each
Pledgor hereby ratifies its authorization for the Collateral Agent to file in
any relevant jurisdiction any financing statements relating to the Pledged
Collateral if filed prior to the date hereof.

 

(c)          Each
Pledgor hereby further authorizes the Collateral Agent to file filings 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), including
this Agreement and the First Lien Copyright Security Agreement, First Lien
Patent Security Agreement, First Lien Trademark Security Agreement, or other
documents for the purpose of perfecting, confirming, continuing, enforcing or
protecting the security interest granted by such Pledgor hereunder, without the
signature of such Pledgor, and naming such Pledgor, as debtor, and the
Collateral Agent, as secured party.

 

9

 

ARTICLE III

 

PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES;

USE OF PLEDGED COLLATERAL

 

SECTION 3.1.        Delivery of
Certificated Securities Collateral.   Each Pledgor represents and
warrants that all certificates, agreements or instruments representing or
evidencing the Securities Collateral in existence on the date hereof have been
delivered to the Collateral Agent in suitable form for transfer by delivery or
accompanied by duly executed instruments of transfer or assignment in blank and
that the Collateral Agent has a perfected first priority security interest
therein. Each Pledgor hereby agrees that all certificates, agreements or
instruments representing or evidencing Securities Collateral acquired by such
Pledgor after the date hereof shall promptly (but in any event within five days
after receipt thereof by such Pledgor) be delivered to and held by or on behalf
of the Collateral Agent pursuant hereto. All certificated Securities Collateral
shall be in suitable form for transfer by delivery or shall be accompanied by
duly executed instruments of transfer or assignment in blank, all in form and
substance satisfactory to the Collateral Agent. The Collateral Agent shall have
the right, at any time upon the occurrence and during the continuance of any
Event of Default, to endorse, assign or otherwise transfer to or to register in
the name of the Collateral Agent or any of its nominees or endorse for
negotiation any or all of the Securities Collateral, without any indication
that such Securities Collateral is subject to the security interest hereunder.
In addition, upon the occurrence and during the continuance of an Event of
Default, the Collateral Agent shall have the right at any time to exchange
certificates representing or evidencing Securities Collateral for certificates
of smaller or larger denominations.

 

SECTION 3.2.       Perfection
of Uncertificated Securities Collateral.   Each Pledgor represents and
warrants that the Collateral Agent has a perfected first priority security
interest in all uncertificated Pledged Securities pledged by it hereunder that
are in existence on the date hereof. Each Pledgor hereby agrees that if any of
the Pledged Securities are at any time not evidenced by certificates of
ownership, then each applicable Pledgor shall, to the extent permitted by
applicable law, (i) cause the issuer to execute and deliver to the Collateral
Agent an acknowledgment of the pledge of such Pledged Securities substantially
in the form of Exhibit 1 hereto or such other form that is reasonably
satisfactory to the Collateral Agent, (ii) if necessary to perfect a security
interest in such Pledged Securities, cause such pledge to be recorded on the
equity-holder register or the books of the issuer, execute any customary pledge
forms or other documents necessary or appropriate to complete the pledge and
give the Collateral Agent the right to transfer such Pledged Securities under
the terms hereof, and (iii) after the occurrence and during the continuance of
any Event of Default, upon request by the Collateral Agent, (A) cause the
Organizational Documents of each such issuer that is a Subsidiary of the
Borrower to be amended to provide that such Pledged Securities shall be treated
as “securities” for purposes of the UCC and (B) cause such Pledged Securities
to become certificated and delivered to the Collateral Agent in accordance with
the provisions of Section 3.1.

 

SECTION 3.3.       [Reserved].

 

10

 

SECTION 3.4.        Other Actions.   In
order to further ensure the attachment, perfection and priority of, and the
ability of the Collateral Agent to enforce, the Collateral Agent’s security
interest in the Pledged Collateral, each Pledgor represents and warrants (as to
itself) as follows and agrees, in each case at such Pledgor’s own expense, to
take the following actions with respect to the following Pledged Collateral:

 

(a)            Instruments
and Tangible Chattel Paper.   As of the date hereof, no amounts payable
under or in connection with any of the Pledged Collateral are evidenced by any
Instrument or Tangible Chattel Paper other than such Instruments and Tangible
Chattel Paper listed in Schedule 11 to the Perfection Certificate or
with an aggregate value of less than $1,000,000. Each Instrument and each item
of Tangible Chattel Paper with an aggregate value in excess of $1,000,000 has
been properly endorsed, assigned and delivered to the Collateral Agent,
accompanied by instruments of transfer or assignment duly executed in blank. If
any amount then payable under or in connection with any of the Pledged
Collateral shall be evidenced by any Instrument or Tangible Chattel Paper, and
such amount, together with all amounts payable evidenced by any Instrument or
Tangible Chattel Paper not previously delivered to the Collateral Agent exceeds
$1,000,000 in the aggregate for all Pledgors, the Pledgor acquiring such
Instrument or Tangible Chattel Paper shall promptly (but in any event within
ten days after receipt thereof) endorse, assign and deliver the same to the
Collateral Agent, accompanied by such instruments of transfer or assignment
duly executed in blank as the Collateral Agent may from time to time reasonably
specify.

 

(b)           [Reserved]

 

(c)           [Reserved]

 

(d)           Electronic Chattel
Paper and Transferable Records.   As of the date hereof, no amount
under or in connection with any of the Pledged Collateral is evidenced by 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) other than such Electronic Chattel Paper
and transferable records listed in Schedule 11 to the Perfection
Certificate or with an aggregate value of less than $1,000,000. If any amount
payable under or in connection with any of the Pledged Collateral shall be
evidenced by any Electronic Chattel Paper or any transferable record, the
Pledgor acquiring such Electronic Chattel Paper or transferable record shall
promptly notify the Collateral Agent thereof and shall take such action as the
Collateral Agent may reasonably request to vest in the Collateral Agent control
of such Electronic Chattel Paper under Section 9-105 of the UCC 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 requirement in the preceding sentence shall not apply to the extent
that such amount, together with all amounts payable evidenced by Electronic
Chattel Paper or any transferable record in which the Collateral Agent has not
been vested control within the

 

11

 

meaning of the
statutes described in the immediately preceding sentence, does not exceed
$1,000,000 in the aggregate for all Pledgors. The Collateral Agent agrees with
such Pledgor that the Collateral Agent will arrange, pursuant to procedures
satisfactory to the Collateral Agent and so long as such procedures will not
result in the Collateral Agent’s loss of control, for the Pledgor to make
alterations to the Electronic Chattel Paper or transferable record permitted under
Section 9-105 of the UCC 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 Pledgor with respect
to such Electronic Chattel Paper or transferable record.

 

(e)            Letter-of-Credit
Rights.   If any Pledgor is at any time a beneficiary under a Letter of
Credit now or hereafter issued with a face amount in excess of $250,000, such
Pledgor shall promptly notify the Collateral Agent thereof and such Pledgor
shall, at the request of the Collateral Agent, 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 such 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 applied as provided in the Credit Agreement. The actions in
the preceding sentence shall not be required to the extent that the amount of
any such Letter of Credit, together with the aggregate amount of all other
Letters of Credit for which the actions described above in clause (i) and (ii)
have not been taken, does not exceed $1,000,000 in the aggregate for all
Pledgors.

 

(f)            Commercial
Tort Claims.   As of the date hereof, each Pledgor hereby represents
and warrants that it holds no Commercial Tort Claims other than those listed in
Schedule 13 to the Perfection Certificate. If any Pledgor shall at any
time hold or acquire a Commercial Tort Claim, such Pledgor shall immediately
notify the Collateral Agent in writing signed by such Pledgor of the brief
details thereof and grant to the Collateral Agent in such writing a security
interest therein and in the Proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance reasonably
satisfactory to the Collateral Agent. The requirement in the preceding sentence
shall not apply to the extent that the amount of such Commercial Tort Claim,
together with the amount of all other Commercial Tort Claims held by any
Pledgor in which the Collateral Agent does not have a security interest, does
not exceed $2,000,000 in the aggregate for all Pledgors.

 

SECTION 3.5.        Joinder of Additional
Guarantors.   The Pledgors shall cause each Subsidiary of the Borrower
which, from time to time, after the date hereof shall be required to pledge any
assets to the Collateral Agent for the benefit of the Secured Parties pursuant
to the provisions of the Credit Agreement, to execute and deliver to the
Collateral Agent (i) a Joinder Agreement substantially in the form of Exhibit
3 hereto and (ii) a Perfection Certificate, in each

 

12

 

case, within
thirty (30) days of the date on which it was acquired or created, upon such
execution and delivery, such Subsidiary shall constitute a “Guarantor” and a “Pledgor”
for all purposes hereunder with the same force and effect as if originally
named as a Guarantor and Pledgor herein. The execution and delivery of such
Joinder Agreement shall not require the consent of any Pledgor hereunder. The
rights and obligations of each Pledgor hereunder shall remain in full force and
effect notwithstanding the addition of any new Guarantor and Pledgor as a party
to this Agreement.

 

SECTION 3.6.        Supplements Further
Assurances.   Each Pledgor shall take such further actions, and execute
and/or deliver to the Collateral Agent such additional financing statements,
amendments, assignments, agreements, supplements, powers and instruments, as
the Collateral Agent may in its reasonable judgment deem necessary in order to
create, perfect, preserve and protect the security interest in the Pledged
Collateral as provided herein and the rights and interests granted to the
Collateral Agent hereunder, to carry into effect the purposes hereof or better
to assure and confirm the validity, enforceability and priority of the
Collateral Agent’s security interest in the Pledged Collateral or permit the
Collateral Agent to exercise and enforce its rights, powers and remedies
hereunder with respect to any Pledged Collateral, including the filing of
financing statements, continuation statements and other documents (including
this Agreement) under the Uniform Commercial Code (or other similar laws) in
effect in any jurisdiction with respect to the security interest created
hereby, all in form reasonably satisfactory to the Collateral Agent and in such
offices (including the United States Patent and Trademark Office and the United
States Copyright Office) wherever required by law to perfect, continue and maintain
the validity, enforceability and priority of the security interest in the
Pledged Collateral as provided herein and to preserve the other rights and
interests granted to the Collateral Agent hereunder, as against third parties,
with respect to the Pledged Collateral. Without limiting the generality of the
foregoing, each Pledgor shall make, execute, endorse, acknowledge, file or
refile and/or deliver to the Collateral Agent from time to time upon reasonable
request by the Collateral Agent such lists, schedules, descriptions and
designations of the Pledged Collateral, copies of warehouse receipts, receipts
in the nature of warehouse receipts, bills of lading, documents of title,
vouchers, invoices, schedules, confirmatory assignments, supplements, additional
security agreements, conveyances, financing statements, transfer endorsements,
powers of attorney, certificates, reports and other assurances or instruments
as the Collateral Agent shall reasonably request. If an Event of Default has
occurred and is continuing, the Collateral Agent may institute and maintain, in
its own name or in the name of any Pledgor, such suits and proceedings as the
Collateral Agent may be advised by counsel shall be necessary or expedient to
prevent any impairment of the security interest in or the perfection thereof in
the Pledged Collateral. All of the foregoing shall be at the sole cost and
expense of the Pledgors.

 

13

 

ARTICLE IV

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Each Pledgor
represents, warrants and covenants as follows:

 

SECTION 4.1.       Defense of Claims:
Transferability of Pledged Collateral.   Subject to Section 7.09
of the Credit Agreement, each Pledgor shall, at its own cost and expense,
defend title to the Pledged Collateral pledged by it hereunder and the security
interest therein and Lien thereon granted to the Collateral Agent and the
priority thereof against all claims and demands of all persons, at its own cost
and expense, at any time claiming any interest therein adverse to the
Collateral Agent or any other Secured Party other than Liens permitted by Section
7.01 of the Credit Agreement. Other than the Second Lien Loan Documents and
the Intercreditor Agreement, there is no agreement, order, judgment or decree,
and no Pledgor shall enter into any agreement or take any other action, that
would restrict the transferability of any of the Pledged Collateral or
otherwise impair or conflict with such Pledgor’s obligations or the rights of
the Collateral Agent hereunder.

 

SECTION 4.2.       Other
Financing Statements.   It has not filed, nor authorized any third
party to file (nor will there be), any valid or effective financing statement
(or similar statement, instrument of registration or public notice under the
law of any jurisdiction) covering or purporting to cover any interest of any
kind in the Pledged Collateral, except such as have been filed in favor of the
Collateral Agent pursuant to this Agreement or in favor of any holder of a Lien
permitted by Section 7.01 of the Credit Agreement with respect to such
Lien or financing statements or public notices relating to the termination
statements listed on Schedule 9 to the Perfection Certificate. No
Pledgor shall execute, authorize or permit to be filed in any public office any
financing statement (or similar statement, instrument of registration or public
notice under the law of any jurisdiction) relating to any Pledged Collateral,
except financing statements and other statements and instruments filed or to be
filed in respect of and covering the security interests granted by such Pledgor
to the holder of the Liens permitted by Section 7.01 of the Credit
Agreement.

 

SECTION 4.3.      Location
of Inventory and Equipment.   It shall not move any Equipment or
Inventory to any location (other than Equipment and Inventory in transit, out
for repair or otherwise movable, in each case, in the ordinary course of
business), other than any location that is listed in the relevant Schedules to
the Perfection Certificate, unless it shall have given the Collateral Agent not
less than 30 days’ prior written notice (in the form of an Officers’
Certificate) of its intention so to do, clearly describing such new location
and providing such other information in connection therewith as the Collateral
Agent may request; provided that in no event shall any Equipment or Inventory
be moved to any location outside of the continental United States.

 

SECTION 4.4.      [Reserved].

 

SECTION 4.5.      Consents,
etc.   In the event that the Collateral Agent desires to exercise any
remedies, voting or consensual rights or attorney-in-fact powers set forth in
this Agreement and determines it necessary to obtain any approvals or consents
of any Governmental Authority or any other person therefor, then, upon the
reasonable request of the Collateral Agent, such Pledgor agrees to use its
commercially reasonable efforts to assist and aid the Collateral Agent to
obtain as soon as practicable any necessary approvals or consents for the
exercise of any such remedies, rights and powers.

 

14

 

SECTION 4.6.        Pledged Collateral.   All
information set forth herein, including the schedules hereto, and all
information contained in any documents, schedules and lists heretofore
delivered to any Secured Party, including the Perfection Certificate and the
schedules thereto, in connection with this Agreement, in each case, relating to
the Pledged Collateral, is accurate and complete in all material respects. The
Pledged Collateral described on the schedules to the Perfection Certificate
constitutes all of the property of such type of Pledged Collateral owned or
held by the Pledgors.

 

SECTION 4.7.        Insurance.   In
the event that the proceeds of any insurance claim are paid to any Pledgor
after the Collateral Agent has exercised its right to foreclose after an Event
of Default, such Net Cash Proceeds shall be held in trust for the benefit of
the Collateral Agent and immediately after receipt thereof shall be paid to the
Collateral Agent for application in accordance with the Credit Agreement.

 

SECTION 4.8.       Chief
Executive Office; Change of Name; Jurisdiction of Organization.   Except
as otherwise permitted by Section 7.04 of the Credit Agreement, no Pledgor will
effect any change (i) to its legal name, (ii) in its identity or organizational
structure, (iii) in its organizational identification number, if any, or (iv)
in its jurisdiction of organization (in each case, including by merging with or
into any other entity, reorganizing, dissolving, liquidating, reorganizing or
organizing in any other jurisdiction), unless (A) it shall have given the
Collateral Agent promptly but in any event within 10 days after such change,
written notice clearly describing such change and providing such other
information in connection therewith as the Collateral Agent may reasonably
request and (B) it shall take all action necessary to maintain the perfection
and priority of the security interest of the Collateral Agent for the benefit
of the Secured Parties in the Collateral.

 

ARTICLE V

 

CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL

 

SECTION 5.1.       Pledge
of Additional Securities Collateral.   Each Pledgor shall, upon
obtaining any Pledged Securities or Intercompany Notes of any person with an
aggregate value in excess of $1,000,000, accept the same in trust for the
benefit of the Collateral Agent and promptly (but in any event within ten days after
receipt thereof) deliver to the Collateral Agent a pledge amendment, duly
executed by such Pledgor, in substantially the form of Exhibit 2 hereto
(each, a “Pledge Amendment”), and the certificates and other documents
required under Section 3.1 and Section 3.2 hereof in respect of
the additional Pledged Securities or Intercompany Notes which are to be pledged
pursuant to this Agreement, and confirming the attachment of the Lien hereby
created on and in respect of such additional Pledged Securities or Intercompany
Notes. The actions in the preceding sentence shall not be required to the
extent that the amount of any such Pledged Securities or Intercompany Notes for
which the actions described above have not been taken does not exceed
$1,000,000 in the aggregate for all Pledgors. Each Pledgor hereby authorizes
the Collateral Agent to attach each Pledge Amendment to this Agreement and
agrees that all Pledged Securities or Intercompany Notes listed on any Pledge
Amendment delivered to the Collateral Agent shall for all purposes hereunder be
considered Pledged Collateral.

 

15

 

SECTION 5.2.        Voting Rights;
Distributions; etc.

 

(a)            So long as no Event of
Default shall have occurred and be continuing and the Collateral Agent has not
given notice of the revocation of the following rights:

 

(i)           Each
Pledgor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Securities Collateral or any part thereof for any
purpose not inconsistent with the terms or purposes hereof, the Credit
Agreement or any other document evidencing the Secured Obligations; provided,
however, that no Pledgor shall in any event exercise such rights in any
manner which could reasonably be expected to have a Material Adverse Effect.

 

(ii)           Each Pledgor shall be
entitled to receive and retain, and to utilize free and clear of the Lien
hereof, any and all Distributions, but only if and to the extent made in
accordance with the provisions of the Credit Agreement; provided, however,
that any and all such Distributions consisting of rights or interests in the
form of securities shall be forthwith delivered to the Collateral Agent to hold
as Pledged Collateral and shall, if received by any Pledgor, be received in
trust for the benefit of the Collateral Agent, be segregated from the other
property or funds of such Pledgor and be promptly (but in any event within five
days after receipt thereof) delivered to the Collateral Agent as Pledged
Collateral in the same form as so received (with any necessary endorsement).

 

(b)           So
long as no Event of Default shall have occurred and be continuing, the
Collateral Agent shall be deemed without further action or formality to have
granted to each Pledgor all necessary consents relating to voting rights and
shall, if necessary, upon written request of any Pledgor and at the sole cost
and expense of the Pledgors, from time to time execute and deliver (or cause to
be executed and delivered) to such Pledgor all such instruments as such Pledgor
may reasonably request in order to permit such Pledgor to exercise the voting
and other rights which it is entitled to exercise pursuant to Section
5.2(a)(i) hereof and to receive the Distributions which it is authorized to
receive and retain pursuant to Section 5.2(a)(ii) hereof.

 

(c)          Upon
the occurrence and during the continuance of any Event of Default and after
notice from the Collateral Agent:

 

(i)          All
rights of each Pledgor to exercise the voting and other consensual rights it
would otherwise be entitled to exercise pursuant to Section 5.2(a)(i)
hereof shall immediately cease, and all such rights shall thereupon become
vested in the Collateral Agent, which shall thereupon have the sole right to
exercise such voting and other con-sensual rights.

 

(ii)          All rights of each
Pledgor to receive Distributions which it would otherwise be authorized to
receive and retain pursuant to Section 5.2(a)(ii) hereof shall
immediately cease and all such rights shall thereupon become vested in the
Collateral Agent, which shall thereupon have the sole right to receive and hold
as Pledged Collateral such Distributions.

 

16

 

(d)            Upon the occurrence of
an Event of Default, each Pledgor shall, at its sole cost and expense, from time
to time execute and deliver to the Collateral Agent appropriate instruments as
the Collateral Agent may reasonably request in order to permit the Collateral
Agent to exercise the voting and other rights which it may be entitled to
exercise pursuant to Section 5.2(c)(i) hereof and to receive all
Distributions which it may be entitled to receive under Section 5.2(c)(ii)
hereof.

 

(e)            All Distributions
which are received by any Pledgor contrary to the provisions of Section
5.2(a)(ii) hereof shall be received in trust for the benefit of the
Collateral Agent, shall be segregated from other funds of such Pledgor and
shall immediately be paid over to the Collateral Agent as Pledged Collateral in
the same form as so received (with any necessary endorsement).

 

SECTION 5.3.        [Reserved]

 

SECTION 5.4.        Certain
Agreements of Pledgors As Issuers and Holders of Equity Interests.

 

(a)           In the case of each
Pledgor which is an issuer of Securities Collateral, such Pledgor agrees to be
bound by the terms of this Agreement relating to the Securities Collateral
issued by it and will comply with such terms insofar as such terms are
applicable to it.

 

(b)           In
the case of each Pledgor which is a partner, shareholder or member, as the case
may be, in a partnership, limited liability company or other entity, such
Pledgor hereby consents to the extent required by the applicable Organizational
Document to the pledge by each other Pledgor, pursuant to the terms hereof, of
the Pledged Securities in such partnership, limited liability company or other
entity and, upon the occurrence and during the continuance of an Event of
Default, to the transfer of such Pledged Securities to the Collateral Agent or
its nominee and to the substitution of the Collateral Agent or its nominee as a
substituted partner, shareholder or member in such partnership, limited
liability company or other entity with all the rights, powers and duties of a
general partner, limited partner, shareholder or member, as the case may be.

 

ARTICLE VI

 

CERTAIN PROVISIONS CONCERNING INTELLECTUAL

PROPERTY COLLATERAL

 

SECTION
6.1.       Grant of Intellectual Property License.   For the purpose of enabling the Collateral Agent, during the
continuance of an Event of Default, to exercise rights and remedies under Article
IX hereof at such time as the Collateral Agent shall be lawfully entitled
to exercise such rights and remedies, and for no other purpose, each Pledgor
hereby grants to the Collateral Agent, to the extent assignable, an
irrevocable, non-exclusive license to use, assign, license or sublicense any of
the Intellectual Property Collateral now owned or hereafter acquired by such
Pledgor, wherever the same may be located. Such license shall include access to
all media

 

17

 

in which any
of the licensed items may be recorded or stored and to all computer programs
used for the compilation or printout hereof.

 

SECTION 6.2.        Protection of
Collateral Agent’s Security.   On a continuing basis, each Pledgor
shall, at its sole cost and expense, (i) promptly following its becoming aware
thereof, notify the Collateral Agent of any adverse determination in any
proceeding or the institution of any proceeding in any federal, state or local
court or administrative body or in the United States Patent and Trademark
Office or the United States Copyright Office regarding any Material
Intellectual Property Collateral, such Pledgor’s right to register such
Material Intellectual Property Collateral or its right to keep and maintain
such registration in full force and effect, (ii) maintain all Material
Intellectual Property Collateral as presently used and operated, (iii) not
permit to lapse or become abandoned any Material Intellectual Property
Collateral, and not settle or compromise any pending or future litigation or
administrative proceeding with respect to any such Material Intellectual
Property Collateral, in either case except as shall be consistent with
commercially reasonable business judgment, (iv) upon such Pledgor obtaining
knowledge thereof, promptly notify the Collateral Agent in writing of any event
which may be reasonably expected to materially and adversely affect the value
or utility of any Material Intellectual Property Collateral or the rights and
remedies of the Collateral Agent in relation thereto including a levy or threat
of levy or any legal process against any Material Intellectual Property
Collateral, (v) not license any Intellectual Property Collateral other than
licenses entered into by such Pledgor in, or incidental to, the ordinary course
of business, or amend or permit the amendment of any of the licenses in a
manner that materially and adversely affects the right to receive payments
thereunder, or in any manner that would materially impair the value of any
Intellectual Property Collateral or the Lien on and security interest in the
Intellectual Property Collateral created therein hereby, without the consent of
the Collateral Agent, (vi) diligently keep adequate records respecting all
Intellectual Property Collateral and (vii) furnish to the Collateral Agent from
time to time upon the Collateral Agent’s request therefor reasonably detailed
statements and amended schedules further identifying and describing the
Intellectual Property Collateral and such other materials evidencing or reports
pertaining to any Intellectual Property Collateral as the Collateral Agent may
from time to time request.

 

SECTION
6.3.       After-Acquired
Property.   If any Pledgor shall at any time after the date hereof (i)
obtain any rights to any additional Intellectual Property Collateral or (ii)
become entitled to the benefit of any additional Intellectual Property
Collateral or any renewal or extension thereof, including any reissue,
division, continuation, or continuation-in-part of any Intellectual Property
Collateral, or any improvement on any Intellectual Property Collateral, the
provisions hereof shall automatically apply thereto and any such item enumerated
in the preceding clause (i) or (ii) shall automatically constitute Intellectual
Property Collateral as if such would have constituted Intellectual Property
Collateral at the time of execution hereof and be subject to the Lien and
security interest created by this Agreement without further action by any
party. Each Pledgor shall promptly provide to the Collateral Agent written
notice of any of the foregoing and confirm the attachment of the Lien and
security interest created by this Agreement to any rights described in clauses
(i) and (ii) above by execution of an instrument in form reasonably acceptable
to the Collateral Agent and the filing of any instruments or statements

 

18

 

as shall be
reasonably necessary to create, preserve, protect or perfect the Collateral
Agent’s security interest in such Intellectual Property Collateral. Further,
each Pledgor authorizes the Collateral Agent to modify this Agreement by
amending Schedules 12(a) and 12(b) to the Perfection Certificate to
include any Intellectual Property Collateral of such Pledgor acquired or
arising after the date hereof.

 

SECTION 6.4.        Litigation.   Unless
there shall occur and be continuing any Event of Default, each Pledgor shall
have the right to commence and prosecute in its own name, as the party in
interest, for its own benefit and at the sole cost and expense of the Pledgors,
such applications for protection of the Intellectual Property Collateral and
suits, proceedings or other actions to prevent the infringement,
counterfeiting, unfair competition, dilution, diminution in value or other
damage as are necessary to protect the Intellectual Property Collateral. Upon
the occurrence and during the continuance of any Event of Default, the
Collateral Agent shall have the right but shall in no way be obligated to file
applications for protection of the Intellectual Property Collateral and/or
bring suit in the name of any Pledgor, the Collateral Agent or the Secured
Parties to enforce the Intellectual Property Collateral and any license
thereunder. In the event of such suit, each Pledgor shall, at the reasonable
request of the Collateral Agent, do any and all lawful acts and execute any and
all documents requested by the Collateral Agent in aid of such enforcement and
the Pledgors shall promptly reimburse and indemnify the Collateral Agent for
all costs and expenses incurred by the Collateral Agent in the exercise of its
rights under this Section 6.4 in accordance with Section 11.04 of
the Credit Agreement. In the event that the Collateral Agent shall elect not to
bring suit to enforce the Intellectual Property Collateral, each Pledgor
agrees, at the reasonable request of the Collateral Agent, to take all
commercially reasonable actions necessary, whether by suit, proceeding or other
action, to prevent the infringement, counterfeiting, unfair competition,
dilution, diminution in value of or other damage to any of the Intellectual
Property Collateral by any person.

 

ARTICLE VII

 

CERTAIN PROVISIONS CONCERNING RECEIVABLES

 

SECTION 7.1.       Maintenance
of Records.   Each Pledgor shall keep and maintain at its own cost and
expense complete records of each Receivable, in a manner consistent with
prudent business practice, including records of all payments received, all
credits granted thereon, all merchandise returned and all other documentation
relating thereto. Each Pledgor shall, at such Pledgor’s sole cost and expense,
upon the Collateral Agent’s demand made at any time after the occurrence and
during the continuance of any Event of Default, deliver all tangible evidence
of Receivables, including all documents evidencing Receivables and any books
and records relating thereto to the Collateral Agent or to its representatives
(copies of which evidence and books and records may be retained by such
Pledgor). Upon the occurrence and during the continuance of any Event of
Default, the Collateral Agent may transfer a full and complete copy of any
Pledgor’s books, records, credit information, reports, memoranda and all other
writings relating to the Receivables to and for the use by any person that has
acquired or is contemplating acquisition of an interest in the Receivables or
the Collateral Agent’s security interest therein without the consent of any
Pledgor.

 

19

 

SECTION 7.2.         [Reserved].

 

SECTION 7.3.         [Reserved].

 

SECTION 7.4.         Collection.   Each
Pledgor shall use commercially reasonable efforts to collect from the Account
Debtor of each of the Receivables, as and when due in the ordinary course of
business and consistent with prudent business practice (including Receivables
that are delinquent, such Receivables to be collected in accordance with
generally accepted commercial collection procedures), any and all amounts owing
under or on account of such Receivable, and apply forthwith upon receipt
thereof all such amounts as are so collected to the outstanding balance of such
Receivable, except that any Pledgor may, with respect to a Receivable, allow in
the ordinary course of business (i) a refund or credit due as a result of
returned or damaged or defective merchandise and (ii) such extensions of time
to pay amounts due in respect of Receivables and such other modifications of
payment terms or settlements in respect of Receivables as shall be commercially
reasonable in the circumstances, all in accordance with such Pledgor’s ordinary
course of business consistent with its collection practices as in effect from
time to time. The costs and expenses (including attorneys’ fees) of collection,
in any case, whether incurred by any Pledgor, the Collateral Agent or any
Secured Party, shall be paid by the Pledgors.

 

ARTICLE VIII

 

TRANSFERS

 

SECTION 8.1.        [Reserved].

 

ARTICLE IX

 

REMEDIES

 

SECTION 9.1.        Remedies.   Upon
the occurrence and during the continuance of any Event of Default, the
Collateral Agent may from time to time exercise in respect of the Pledged
Collateral, in addition to the other rights and remedies provided for herein or
otherwise available to it, the following remedies:

 

(i)           Personally,
or by agents or attorneys, immediately take possession of the Pledged
Collateral or any part thereof, from any Pledgor or any other person who then
has possession of any part thereof with or without notice or process of law,
and for that purpose may enter upon any Pledgor’s premises where any of the
Pledged Collateral is located, remove such Pledged Collateral, remain present
at such premises to receive copies of all communications and remittances
relating to the Pledged Collateral and use in connection with such removal and
possession any and all services, supplies, aids and other facilities of any
Pledgor;

 

(ii)           Demand, sue for,
collect or receive any money or property at any time payable or receivable in
respect of the Pledged Collateral including instructing the obligor

 

20

 

or obligors on
any agreement, instrument or other obligation constituting part of the Pledged
Collateral to make any payment required by the terms of such agreement,
instrument or other obligation directly to the Collateral Agent, and in
connection with any of the foregoing, compromise, settle, extend the time for
payment and make other modifications with respect thereto; provided, however,
that in the event that any such payments are made directly to any Pledgor,
prior to receipt by any such obligor of such instruction, such Pledgor shall
segregate all amounts received pursuant thereto in trust for the benefit of the
Collateral Agent and shall promptly (but in no event later than one (1)
Business Day after receipt thereof) pay such amounts to the Collateral Agent;

 

(iii)         Sell,
assign, grant a license to use or otherwise liquidate, or direct any Pledgor to
sell, assign, grant a license to use or otherwise liquidate, any and all
investments made in whole or in part with the Pledged Collateral or any part
thereof, and take possession of the proceeds of any such sale, assignment,
license or liquidation;

 

(iv)         Take possession of the
Pledged Collateral or any part thereof, by directing any Pledgor in writing to
deliver the same to the Collateral Agent at any place or places so designated
by the Collateral Agent, in which event such Pledgor shall at its own expense:
(A) forthwith cause the same to be moved to the place or places designated by
the Collateral Agent and therewith delivered to the Collateral Agent, (B) store
and keep any Pledged Collateral so delivered to the Collateral Agent at such
place or places pending further action by the Collateral Agent and (C) while
the Pledged Collateral shall be so stored and kept, provide such security and
maintenance services as shall be necessary to protect the same and to preserve
and maintain them in good condition. Each Pledgor’s obligation to deliver the
Pledged Collateral as contemplated in this Section 9.1 (iv) is of
the essence hereof. Upon application to a court of equity having jurisdiction,
the Collateral Agent shall be entitled to a decree requiring specific
performance by any Pledgor of such obligation;

 

(v)          Retain and apply the
Distributions to the Secured Obligations as provided in Article X
hereof;

 

(vi)         Exercise
any and all rights as beneficial and legal owner of the Pledged Collateral,
including perfecting assignment of and exercising any and all voting, consensual
and other rights and powers with respect to any Pledged Collateral; and

 

(vii)        Exercise
all the rights and remedies of a secured party on default under the UCC, and
the Collateral Agent may also in its sole discretion, without notice except as
specified in Section 9.2 hereof, sell, assign or grant a license to use
the Pledged Collateral or any part thereof in one or more parcels at public or
private sale, at any exchange, broker’s board or at any of the Collateral Agent’s
offices or elsewhere, for cash, on credit or for future delivery, and at such
price or prices and upon such other terms as the Collateral Agent may deem
commercially reasonable. The Collateral Agent or any other Secured Party or any
of their respective Affiliates may be the purchaser, licensee, assignee or
recipient of the Pledged Collateral or any part thereof at any such sale and
shall be entitled,

 

21

 

for the
purpose of bidding and making settlement or payment of the purchase price for
all or any portion of the Pledged Collateral sold, assigned or licensed at such
sale, to use and apply any of the Secured Obligations owed to such person as a
credit on account of the purchase price of the Pledged Collateral or any part
thereof payable by such person at such sale. Each purchaser, assignee, licensee
or recipient at any such sale shall acquire the property sold, assigned or
licensed absolutely free from any claim or right on the part of any Pledgor,
and each Pledgor hereby waives, to the fullest extent permitted by 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 Collateral Agent shall not be obligated to make any sale of the
Pledged Collateral or any part thereof regardless of notice of sale having been
given. The Collateral Agent may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned. Each Pledgor hereby waives, to the fullest extent permitted by law,
any claims against the Collateral Agent arising by reason of the fact that the
price at which the Pledged Collateral or any part thereof may have been sold,
assigned or licensed at such a private sale was less than the price which might
have been obtained at a public sale, even if the Collateral Agent accepts the
first offer received and does not offer such Pledged Collateral to more than
one offeree.

 

SECTION 9.2.        Notice of Sale.   Each
Pledgor acknowledges and agrees that, to the extent notice of sale or other
disposition of the Pledged Collateral or any part thereof shall be required by
law, ten (10) days’ prior notice to such Pledgor of the time and place of any
public sale or of the time after which any private sale or other intended
disposition is to take place shall be commercially reasonable notification of
such matters. No notification need be given to any Pledgor if it has signed,
after the occurrence of an Event of Default, a statement renouncing or
modifying any right to notification of sale or other intended disposition.

 

SECTION
9.3.        Waiver of Notice and Claims.   Each Pledgor hereby waives, to the fullest extent permitted by
applicable law, notice or judicial hearing in connection with the Collateral
Agent’s taking possession or the Collateral Agent’s disposition of the Pledged
Collateral or any part thereof, including any and all prior notice and hearing
for any prejudgment remedy or remedies and any such right which such Pledgor
would otherwise have under law, and each Pledgor hereby further waives, to the
fullest extent permitted by applicable law: (i) all damages occasioned by such
taking of possession, (ii) all other requirements as to the time, place and
terms of sale or other requirements with respect to the enforcement of the
Collateral Agent’s rights hereunder and (iii) all rights of redemption,
appraisal, valuation, stay, extension or moratorium now or hereafter in force
under any applicable law. The Collateral Agent shall not be liable for any
incorrect or improper payment made pursuant to this Article IX in the
absence of bad faith, gross negligence or willful misconduct on the part of the
Collateral Agent. Any sale of, or the grant of options to purchase, or any
other realization upon, any Pledged Collateral shall operate to divest all
right, title, interest, claim and demand, either at law or in equity, of the
applicable Pledgor therein and thereto, and shall be a perpetual bar both at
law and in equity against

 

22

 

such Pledgor
and against any and all persons claiming or attempting to claim the Pledged
Collateral so sold, optioned or realized upon, or any part thereof, from,
through or under such Pledgor.

 

SECTION 9.4.        Certain Sales of
Pledged Collateral.

 

(a)           Each Pledgor recognizes
that, by reason of certain prohibitions contained in law, rules, regulations or
orders of any Governmental Authority, the Collateral Agent may be compelled,
with respect to any sale of all or any part of the Pledged Collateral, to limit
purchasers to those who meet the requirements of such Governmental Authority.
Each Pledgor acknowledges that any such sales may be at prices and on terms
less favorable to the Collateral Agent than those obtainable through a public
sale without such restrictions, and, notwithstanding such circumstances, agrees
that any such restricted sale shall be deemed to have been made in a
commercially reasonable manner and that, except as may be required by
applicable law, the Collateral Agent shall have no obligation to engage in
public sales.

 

(b)           Each
Pledgor recognizes that, by reason of certain prohibitions contained in the
Securities Act, and applicable state securities laws, the Collateral Agent may
be compelled, with respect to any sale of all or any part of the Securities
Collateral and Investment Property, to limit purchasers to persons who will agree,
among other things, to acquire such Securities Collateral or Investment
Property for their own account, for investment and not with a view to the
distribution or resale thereof. Each Pledgor acknowledges that any such private
sales may be at prices and on terms less favorable to the Collateral Agent than
those obtainable through a public sale without such restrictions (including a
public offering made pursuant to a registration statement under the Securities
Act), and, notwithstanding such circumstances, agrees that any such private
sale shall be deemed to have been made in a commercially reasonable manner and
that the Collateral Agent shall have no obligation to engage in public sales
and no obligation to delay the sale of any Securities Collateral or Investment
Property 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 agree to do so.

 

(c)          If
the Collateral Agent determines to exercise its right to sell any or all of the
Securities Collateral or Investment Property, upon written request, the
applicable Pledgor shall from time to time furnish to the Collateral Agent all
such information as the Collateral Agent may request in order to determine the
number of securities included in the Securities Collateral or Investment
Property which may be sold by the Collateral Agent as exempt transactions under
the Securities Act and the rules of the Securities and Exchange Commission
thereunder, as the same are from time to time in effect.

 

(d)          Each
Pledgor further agrees that a breach of any of the covenants contained in this Section
9.4 will cause irreparable injury to the Collateral Agent and the other
Secured Parties, that the Collateral Agent and the other Secured Parties have
no adequate remedy at law in respect of such breach and, as a consequence, that
each and every covenant contained in this Section 9.4 shall be
specifically enforceable against such Pledgor, and such Pledgor hereby

 

23

 

waives and agrees not to assert any defenses
against an action for specific performance of such covenants except for a
defense that no Event of Default has occurred and is continuing.

 

SECTION 9.5.        No Waiver Cumulative Remedies.

 

(a)            No failure on the part
of the Collateral Agent to exercise, no course of dealing with respect to, and
no delay on the part of the Collateral Agent in exercising, any right, power or
remedy hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right, power, privilege or remedy hereunder
preclude any other or further exercise thereof or the exercise of any other
right, power, privilege or remedy; nor shall the Collateral Agent be required
to look first to, enforce or exhaust any other security, collateral or
guaranties. All rights and remedies herein provided are cumulative and are not
exclusive of any rights or remedies provided by law or otherwise available.

 

(b)           In
the event that the Collateral Agent shall have instituted any proceeding to
enforce any right, power, privilege or remedy under this Agreement or any other
Loan Document by foreclosure, sale, entry or otherwise, and such proceeding
shall have been discontinued or abandoned for any reason or shall have been
determined adversely to the Collateral Agent, then and in every such case, the
Pledgors, the Collateral Agent and each other Secured Party shall be restored
to their respective former positions and rights hereunder with respect to the
Pledged Collateral, and all rights, remedies, privileges and powers of the
Collateral Agent and the other Secured Parties shall continue as if no such
proceeding had been instituted.

 

SECTION 9.6.       Certain
Additional Actions Regarding Intellectual Property.  If any Event of Default shall have occurred
and be continuing, upon the written demand of the Collateral Agent, each
Pledgor shall execute and deliver to the Collateral Agent an assignment or
assignments of the registered Patents, Trademarks and/or Copyrights and
Goodwill and such other documents as are necessary or appropriate to carry out
the intent and purposes hereof. Within five (5) Business Days of written notice thereafter from the Collateral
Agent, each Pledgor shall make available to the Collateral Agent, to the extent
within such Pledgor’s power and authority, such personnel in such Pledgor’s
employ on the date of the Event of Default as the Collateral Agent may
reasonably designate to permit such Pledgor to continue, directly or
indirectly, to produce, advertise and sell the products and services sold by
such Pledgor under the registered Patents, Trademarks and/or Copyrights, and
such persons shall be available to perform their prior functions on the
Collateral Agent’s behalf

 

ARTICLE X

 

APPLICATION OF PROCEEDS

 

SECTION 10.1.     Application
of Proceeds.   The proceeds received by the Collateral Agent in respect
of any sale of, collection from or other realization upon all or any part of
the Pledged Collateral pursuant to the exercise by the Collateral Agent of its
remedies shall be

 

24

 

applied, together with any
other sums then held by the Collateral Agent pursuant to this Agreement,
in accordance with the Credit Agreement.

 

ARTICLE XI

 

MISCELLANEOUS

 

SECTION 11.1.      Concerning Collateral
Agent.

 

(a)           The
Collateral Agent has been appointed as collateral agent pursuant to the Credit
Agreement. The actions of the Collateral Agent hereunder are subject to the
provisions of the Credit Agreement. The Collateral Agent 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 action (including the
release or substitution of the Pledged Collateral), in accordance with this
Agreement and the Credit Agreement. The Collateral Agent may employ agents and
attorneys-in-fact in connection herewith and shall not be liable for the
negligence or misconduct of any such agents or attorneys-in-fact selected by it
in good faith. The Collateral Agent may resign and a successor Collateral Agent
may be appointed in the manner provided in the Credit Agreement. Upon the
acceptance of any appointment as the Collateral Agent by a successor Collateral
Agent, that successor Collateral Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Collateral Agent under this Agreement, and the retiring Collateral Agent shall
thereupon be discharged from its duties and obligations under this Agreement.
After any retiring Collateral Agent’s resignation, the provisions hereof shall
inure to its benefit as to any actions taken or omitted to be taken by it under
this Agreement while it was the Collateral Agent.

 

(b)           The
Collateral Agent shall be deemed to have exercised reasonable care in the
custody and preservation of the Pledged Collateral in its possession if such
Pledged Collateral is accorded treatment substantially equivalent to that which
the Collateral Agent, in its individual capacity, accords its own property
consisting of similar instruments or interests, it being understood that
neither the Collateral Agent nor any of the Secured Parties shall have
responsibility for (i) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relating to any
Securities Collateral, whether or not the Collateral Agent or any other Secured
Party has or is deemed to have knowledge of such matters or (ii) taking any
necessary steps to preserve rights against any person with respect to any
Pledged Collateral.

 

(c)          The
Collateral Agent shall be entitled to rely upon any written notice, statement,
certificate, order or other document or any telephone message believed by it to
be genuine and correct and to have been signed, sent or made by the proper
person, and, with respect to all matters pertaining to this Agreement and its
duties hereunder, upon advice of counsel selected
by it.

 

(d)          If
any item of Pledged Collateral also constitutes collateral granted to the
Collateral Agent under any other deed of trust, mortgage, security agreement,
pledge or instrument 

 

25

 

of any type,
in the event of any conflict between the provisions hereof and the provisions
of such other deed of trust, mortgage, security agreement, pledge or instrument
of any type in respect of such collateral, the Collateral Agent, in its sole
discretion, shall select which provision or provisions shall control.

 

(e)           Notwithstanding any
provision to the contrary contained herein, the terms of this Agreement, the
Liens created hereby and the rights and remedies of the Collateral Agent
hereunder are subject to the terms of the Intercreditor Agreement. In the event
of any conflict between the terms of this Agreement and the Intercreditor
Agreement, the terms of the Inter-creditor Agreement shall govern.

 

(f)            The
Collateral Agent may rely on advice of counsel as to whether any or all UCC
financing statements of the Pledgors need to be amended as a result of any of
the changes described in Section 4.10. If any Pledgor fails to provide
information to the Collateral Agent about such changes on a timely basis, the
Collateral Agent shall not be liable or responsible to any party for any
failure to maintain a perfected security interest in such Pledgor’s property
constituting Pledged Collateral, for which the Collateral Agent needed to have
information relating to such changes. The Collateral Agent shall have no duty
to inquire about such changes if any Pledgor does not inform the Collateral
Agent of such changes, the parties acknowledging and agreeing that it would not
be feasible or practical for the Collateral Agent to search for information on
such changes if such information is not provided by any Pledgor.

 

SECTION 11.2.     Collateral
Agent May Perform; Collateral Agent Appointed Attorney-in-Fact.   If
any Pledgor shall fail to perform any covenants contained in this Agreement
(including such Pledgor’ s covenants to (i) pay the premiums in respect of all
required insurance policies hereunder, (ii) pay and discharge any taxes,
assessments and special assessments, levies, fees and governmental charges
imposed upon or assessed against, and landlords’, carriers’, mechanics’, workmen’s, repairmen’s, laborers’, materialmen’s,
suppliers’ and ware-housemen’s Liens and other claims arising by
operation of law against, all or any portion of the Pledged Collateral, (iii)
make repairs, (iv) discharge Liens or (v) pay or perform any obligations of
such Pledgor under any Pledged Collateral) or if any representation or warranty
on the part of any Pledgor contained herein shall be breached, the Collateral
Agent may (but shall not be obligated to) do the same or cause it to be done or
remedy any such breach, and may expend funds for such purpose; provided,
however, that the Collateral Agent shall in no event be bound to inquire
into the validity of any tax, Lien, imposition or other obligation which such
Pledgor fails to pay or perform as and when required hereby and which such
Pledgor does not contest in accordance with the provisions of the Credit
Agreement. Any and all amounts so expended by the Collateral Agent shall be
paid by the Pledgors in accordance with the provisions of Section 11.04
of the Credit Agreement. Neither the provisions of this Section 11.2 nor
any action taken by the Collateral Agent pursuant to the provisions of this Section
11.2 shall prevent any such failure to observe any covenant contained in
this Agreement nor any breach of representation or warranty from constituting
an Event of Default. Each Pledgor hereby appoints the Collateral Agent its attorney-in-fact,
with full power and authority in the place and stead of such Pledgor and in the
name of such Pledgor, or otherwise, from time to time in the Collateral Agent’s
discretion to take any action and to execute any instrument consistent with the
terms of the Credit Agreement, this

 

26

 

Agreement and
the other Security Documents which the Collateral Agent may deem necessary or
advisable to accomplish the purposes hereof (but the Collateral Agent shall not
be obligated to and shall have no liability to such Pledgor or any third party
for failure to so do or take action). The foregoing grant of authority is a
power of attorney coupled with an interest and such appointment shall be
irrevocable for the term hereof. Each Pledgor hereby ratifies all that such
attorney shall lawfully do or cause to be done by virtue hereof.

 

SECTION 11.3.      Continuing
Security Interest; Assignment.   This Agreement shall create a
continuing security interest in the Pledged Collateral and shall (i) be binding
upon the Pledgors, their respective successors and assigns and (ii) inure,
together with the rights and remedies of the Collateral Agent hereunder, to the
benefit of the Collateral Agent and the other Secured Parties and each of their
respective successors, transferees and assigns. No other persons (including any
other creditor of any Pledgor) shall have any interest herein or any right or
benefit with respect hereto. Without limiting the generality of the foregoing
clause (ii), any Secured Party may assign or otherwise transfer any
indebtedness held by it secured by this Agreement to any other person, and such
other person shall thereupon become vested with all the benefits in respect
thereof granted to such Secured Party, herein or otherwise, subject however, to
the provisions of the Credit Agreement and, in the case of a Secured Party that
is a party to a Secured Hedge Agreement or Secured Cash Management Agreement,
such Secured Hedge Agreement or a Secured Cash Management Agreement, as
applicable. Each of the Pledgors agrees that its obligations hereunder and the
security interest created hereunder shall continue to be effective or be
reinstated, as applicable, if at any time payment, or any part thereof, of all
or any part of the Secured Obligations is rescinded or must otherwise be
restored by the Secured Party upon the bankruptcy or reorganization of any
Pledgor or otherwise.

 

SECTION 11.4.     Termination; Release.

 

(a)          When all the Secured
Obligations have been paid in full and the Commitments of the Lenders to make
any Loan or to issue any Letter of Credit under the Credit Agreement shall have
expired or been sooner terminated and all Letters of Credit have been
terminated or cash collateralized in accordance with the provisions of the
Credit Agreement, this Agreement shall terminate. Upon termination of this
Agreement the Pledged Collateral shall be released from the Lien of this
Agreement. Upon such release or any release of Pledged Collateral or any part
thereof in accordance with the provisions of the Credit Agreement, the
Collateral Agent shall, upon the request and at the sole cost and expense of
the Pledgors, assign, transfer and deliver to Pledgor, against receipt and
without recourse to or warranty by the Collateral Agent except as to the fact
that the Collateral Agent has not encumbered the released assets, such of the
Pledged Collateral or any part thereof to be released (in the case of a release)
as may be in possession of the Collateral Agent and as shall not have been sold
or otherwise applied pursuant to the terms hereof, and, with respect to any
other Pledged Collateral, proper documents and instruments (including UCC-3
termination financing statements or releases) acknowledging the termination
hereof or the release of such Pledged Collateral, as the case may be.

 

(b)          Notwithstanding the
foregoing and subject to the terms of the Intercreditor Agreement, if (i) the
Obligations (other than contingent indemnification obligations) have been

 

27

 

paid in full
and the Commitments of the Lenders to make any Loan or to issue any Letter of
Credit under the Credit Agreement shall have expired or been sooner terminated
and all Letters of Credit have been terminated or cash collateralized in
accordance with the provisions of the Credit Agreement, (ii) Secured
Obligations of the type described in clause (b) of the definition of Secured
Obligations (“Remaining Secured Obligations”) remain outstanding and
(iii) all or a portion of the repayment of the Obligations is financed by the
proceeds of Indebtedness of one or more Loan Parties or any affiliate of a Loan
Party (“Refinancing Indebtedness”) which Refinancing Indebtedness is
secured by property of such persons, this Agreement shall terminate as if the
Remaining Secured Obligations have been paid in full and the provisions of
paragraph (a) of this Section 11.4 shall apply concurrently with the
incurrence of the Refinancing Indebtedness and the securing of the Refinancing
Indebtedness and the Remaining Secured Obligations on an equal and ratable
basis. For the avoidance of doubt, if the Refinancing Indebtedness is not
secured, this Agreement shall not terminate but shall remain in full force and
effect.

 

(c)          Notwithstanding
the foregoing and subject to the terms of the Intercreditor Agreement, if any
of the Collateral shall be sold, transferred or otherwise disposed of by any
Grantor to a Person that is not a Grantor in a transaction permitted by the
Credit Agreement, then the Collateral Agent, at the request and sole expense of
such Grantor, shall promptly execute and deliver to such Grantor all releases
or other documents reasonably necessary for the release of the Liens created
hereby on such Collateral.

 

SECTION 11.5.     Modification
in Writing.   No amendment, modification, supplement, termination or
waiver of or to any provision hereof, nor consent to any departure by any
Pledgor therefrom, shall be effective unless the same shall be made in
accordance with the terms of the Credit Agreement and unless in writing and
signed by the Collateral Agent and each Pledgor. Any amendment, modification or
supplement of or to any provision hereof, any waiver of any provision hereof
and any consent to any departure by any Pledgor from the terms of any provision
hereof in each case shall be effective only in the specific instance and for
the specific purpose for which made or given. Except where notice is
specifically required by this Agreement or any other document evidencing the
Secured Obligations, no notice to or demand on any Pledgor in any case shall
entitle any Pledgor to any other or further notice or demand in similar or
other circumstances.

 

SECTION 11.6.     Notices.   Unless
otherwise provided herein or in the Credit Agreement, any notice or other
communication herein required or permitted to be given shall be given in the
manner and become effective as set forth in the Credit Agreement, as to any
Pledgor, addressed to it at the address of the Borrower set forth in the Credit
Agreement and as to the Collateral Agent, addressed to it at the address set
forth in the Credit Agreement, or in each case at such other address as shall
be designated by such party in a written notice to the other party complying as
to delivery with the terms of this Section 11.6.

 

SECTION 11.7.       Governing
Law, Consent to Jurisdiction and Service of Process; Waiver of Jury Trial.   Sections 11.14
and 11.15 of the Credit Agreement are incorporated herein, mutatis mutandis, as if a part hereof.

 

28

 

SECTION 11.8.     Severability
of Provisions.   Any provision hereof which is invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without invalidating the remaining provisions hereof or affecting the validity,
legality or enforceability of such provision in any other jurisdiction.

 

SECTION 11.9.     Execution in
Counterparts.   This Agreement and any amendments, waivers, consents or
supplements hereto may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original, but all such
counterparts together shall constitute one and the same agreement.

 

SECTION 11.10.   Business Days.   In
the event any time period or any date provided in this Agreement ends or falls
on a day other than a Business Day, then such time period shall be deemed to
end and such date shall be deemed to fall on the next succeeding Business Day,
and performance herein may be made on such Business Day, with the same force
and effect as if made on such other day.

 

SECTION 11.11.   No Credit for
Payment of Taxes or Imposition.   Such Pledgor shall not be entitled to
any credit against the principal, premium, if any, or interest payable under
the Credit Agreement, and such Pledgor shall not be entitled to any credit
against any other sums which may become payable under the terms thereof or
hereof, by reason of the payment of any Tax on the Pledged Collateral or any
part thereof.

 

SECTION 11.12.   No Claims
Against Collateral Agent.   Nothing contained in this Agreement shall
constitute any consent or request by the Collateral Agent, express or implied,
for the performance of any labor or services or the furnishing of any materials
or other property in respect of the Pledged Collateral or any part thereof, nor
as giving any Pledgor any right, power or authority to contract for or permit the
performance of any labor or services or the furnishing of any materials or
other property in such fashion as would permit the making of any claim against
the Collateral Agent in respect thereof or any claim that any Lien based on the
performance of such labor or services or the furnishing of any such materials
or other property is prior to the Lien hereof.

 

SECTION 11.13.   No Release.   Nothing
set forth in this Agreement or any other Loan Document, nor the exercise by the
Collateral Agent of any of the rights or remedies hereunder, shall relieve any
Pledgor from the performance of any term, covenant, condition or agreement on
such Pledgor’s part to be performed or observed under or in respect of any of
the Pledged Collateral or from any liability to any person under or in respect
of any of the Pledged Collateral or shall impose any obligation on the
Collateral Agent or any other Secured Party to perform or observe any such
term, covenant, condition or agreement on such Pledgor’s part to be so
performed or observed or shall impose any liability on the Collateral Agent or
any other Secured Party for any act or omission on the part of such Pledgor
relating thereto or for any breach of any representation or warranty on the
part of such Pledgor contained in this Agreement, the Credit Agreement or the
other Loan Documents, or under or in respect of the Pledged Collateral

 

29

 

or made in
connection herewith or therewith. Anything herein to the contrary
notwithstanding, neither the Collateral Agent nor any other Secured Party shall
have any obligation or liability under any contracts, agreements and other
documents included in the Pledged Collateral by reason of this Agreement, nor
shall the Collateral Agent or any other Secured Party be obligated to perform
any of the obligations or duties of any Pledgor thereunder or to take any
action to collect or enforce any such contract, agreement or other document
included in the Pledged Collateral hereunder. The obligations of each Pledgor
contained in this Section 11.13 shall survive the termination hereof and
the discharge of such Pledgor’s other obligations under this Agreement, the
Credit Agreement and the other Loan Documents.

 

SECTION 11.14.   Obligations
Absolute.   All obligations of each Pledgor hereunder shall be absolute
and unconditional irrespective of:

 

(i)           any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of any other Pledgor;

 

(ii)           any lack of validity or
enforceability of the Credit Agreement, any Secured Hedge Agreement, any
Secured Cash Management Agreement or any other Loan Document, or any other
agreement or instrument relating thereto;

 

(iii)           any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Secured Obligations, or any other amendment or waiver of or any
consent to any departure from the Credit Agreement, any Secured Hedge
Agreement, any Secured Cash Management Agreement or any other Loan Document or
any other agreement or instrument relating thereto;

 

(iv)          any
pledge, exchange, release or non-perfection of any other collateral, or any
release or amendment or waiver of or consent to any departure from any
guarantee, for all or any of the Secured Obligations;

 

(v)          any
exercise, non-exercise or waiver of any right, remedy, power or privilege under
or in respect hereof, the Credit Agreement, any Secured Hedge Agreement, any
Secured Cash Management Agreement or any other Loan Document except as
specifically set forth in a waiver granted pursuant to the provisions of Section
11.5 hereof; or

 

(vi)          any
other circumstances which might otherwise constitute a defense available to, or
a discharge of, any Pledgor.

 

[REMAINDER OF
THIS PAGE INTENTIONALLY LEFT BLANK.]

 

30

 

IN WITNESS
WHEREOF, each Pledgor and the Collateral Agent have caused this Agreement to be
duly executed and delivered by their duly authorized officers as of the date
first above written.

 

 

	
   

  	
  RISKMETRICS
  GROUP HOLDINGS, LLC,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. Ethan Berman

  	
   

  
	
   

  	
   

  	
  Name: M.
  Ethan Berman

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RISKMETRICS
  GROUP, INC.,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. Ethan
  Berman

  	
   

  
	
   

  	
   

  	
  Name: M. Ethan
  Berman

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INSTITUTIONAL
  SHAREHOLDER SERVICES

  
	
   

  	
  HOLDINGS,
  INC.,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M.
  Connolly

  	
   

  
	
   

  	
   

  	
  Name: John
  M. Connolly

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INSTITUTIONAL
  SHAREHOLDER SERVICES,

  
	
   

  	
  INC.,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M.
  Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M. Connolly

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INVESTOR
  RESPONSIBILITY RESEARCH

  
	
   

  	
  CENTER,
  INC.,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M.
  Connolly

  	
   

  
	
   

  	
   

  	
  Name: John
  M. Connolly

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
  [First Lien Security Agreement]

  

 

 

	
   

  	
  ISS
  CORPORATE SERVICES, INC.,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M.
  Connolly

  	
   

  
	
   

  	
   

  	
  Name: John
  M. Connolly

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ISS RREV, INC.,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M.
  Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M.
  Connolly

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RISKMETRICS
  SOLUTIONS, INC.,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. Ethan Berman

  	
   

  
	
   

  	
   

  	
  Name: M. Ethan Berman

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SECURITIES
  CLASS ACTION SERVICES LLC,

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M.
  Connolly

  	
   

  
	
   

  	
   

  	
  Name: John M. Connolly

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
  [First Lien Security Agreement]

  

 

 

	
   

  	
  BANK OF
  AMERICA, N.A.,

  
	
   

  	
  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  Klawinski

  	
   

  
	
   

  	
   

  	
  Name: Robert
  Klawinski

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [First Lien Security Agreement]

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