Document:

Amended and Restated Non-Compete Agreement

 Exhibit 10.4 
 AMENDED AND RESTATED NON-COMPETE AGREEMENT 
 This Amended and Restated Non-Compete Agreement
(this “Non-Compete Agreement”) dated as of September 16, 2003, among Owens Coining, a Delaware corporation (“Seller”): and Advanced Glassfiber Yarns, LLC, a Delaware limited liability company
(“Company”). 
 WITNESSETH: 
 WHEREAS, Seller, the Company, AGY Holdings Corp., a Delaware corporation and Porcher Industries S.A., a French corporation (collectively, “Buyer”), entered into a Non-Compete Agreement dated as of
September 30, 1998 (the “Original Agreement Date”), as amended, supplemented or otherwise modified through the date hereof (as amended, supplemented or modified, the “Original Agreement”); 
 WHEREAS, Seller and the Company, together with certain of their respective affiliates, are debtors-in-possession in separate reorganization cases under
Chapter 11 of Title 11 of the United States Bankruptcy Code (each a “Reorganization Case”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”); 
 WHEREAS, pursuant to the terms of a Stipulation dated September 16, 2003 among Seller, certain of its affiliates and the Company (the
“Stipulation”). Seller and the Company have agreed, subject to Bankruptcy Court approval, (i) to execute and deliver this Non-Compete Agreement, the other Amended Contracts and New Agreements (each as defined in the
Stipulation), and to cause the execution and delivery of such agreements by each of their respective affiliates that are party thereto and (ii) to assume, in their respective Reorganization Cases the Assumed Contracts (as such term is defined
in the Stipulation); 

 NOW THEREFORE, in consideration of the premises and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree to amend and restate the Original Agreement as follows: 
  

	1.	NON-COMPETE  

  

	 	1.1	Acknowledgment  

 Seller acknowledges that the object of this
Non-Compete Agreement is to protect the Company and to preserve the value of the Business for the Company and that the execution and delivery of this Non-Compete Agreement by Seller and the Company is a condition precedent to the assumption by each
of Seller and the Company of this Non-Compete Agreement and the other Assumed Contracts in their respective Reorganization Case. 
  

	 	1.2	Effectiveness; Acknowledgement 

 (a) The
effectiveness of the terms and provisions of this Non-Compete Agreement, the other Amended Contracts and each New Agreement is subject to the occurrence of the Effective Date (as defined in the Stipulation). If the Effective Date does not occur,
this Non-Compete Agreement, each other Amended Contract and each New Agreement shall be null and void ab initio and the relationship among the parties under the Pre-Petition Agreements (as defined in the Stipulation) shall be deemed
restored status quo ante. 
 (b) Each of Seller and the Company acknowledge that Buyer has not executed this Non-Compete Agreement.
Seller and the Company further acknowledge and agree that notwithstanding the provisions of Section 3.7 of the Original Agreement to the contrary, the terms and provisions of this Non-Compete Agreement shall be effective as between Seller and
the Company irrespective of Buyer’s failure to execute this Non-Compete Agreement. 
  

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	 	1.3	Seller Covenant Not to Compete  

 Seller hereby
covenants and agrees that neither Seller nor any Affiliate of Seller will during the period commencing on the Original Agreement Date and ending on December 31, 2008 (the “Non-Compete Term”) 
 (a) manufacture or sell: 
 (i) Business Products other than: 
 (x) products which are not mechanically twisted in a
secondary operation and have a linear density of a TEX value of greater than or equal to 180 g/km; 
 (y) rubber
reinforcement with a linear density of a TEX value of greater than or equal to 100 g/km and a minimum nominal filament diameter of 8.89μ (micronage values herein shall refer to maximum or minimum nominal values in common usage in the industry,
in this instance, a G filament); or 
 (z) products which are riot mechanically twisted in a secondary operation and have a
linear density of a TEX value equal to 100 g/km for sale in South America; 
 (ii) S Glass or any product made of S Glass;

 (iii) any twisted and plied combination of polyester and glass yarns; or 
  

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 (iv) any air texturized glass fiber yarn having a filament or fiber diameter having a
minimum nominal diameter of less than 10.16μ, (collectively, “Restricted Products”, provided that Restricted Products shall not be considered to include: 
 (x) any chopped fiber product made of any material other than S Glass; 
 (y) intermediate products used to make products which are not Business Products; or 
 (z) any product which incorporates the identified Business Products with other materials); 
 (v) High Strength Glass; 
 (b) own, manage, operate, control, or participate financially or otherwise, directly or indirectly, in a business manufacturing or selling Restricted Products; or 
 (c) enter into an agreement with any other Person to do any of the foregoing (collectively, the (“Restricted
Activities”). The parties acknowledge and agree that any assignment of all or a portion of any equity interest in the Company to one or more Financing Sources (as defined in Section 3.5 of this Non-Compete Agreement) shall in no event
terminate this Agreement or Buyer’s or Seller’s non-compete obligations as set fort in this Section 1.3. 
  

	 	1.4	Buyer Covenant Not to Compete 

 Buyer hereby
covenants and agrees that neither Buyer nor any Affiliate of Buyer that receives, directly or indirectly from the Company, any Seller Licensed Know How or Business 

  

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Know How, will engage in any Restricted Activities for the period ending on the later or five years from the Original Agreement Date or the first day on
which the membership interest in the Company of either Seller together with its Affiliates, or Buyer together with its Affiliates is less than 5% (the “Original Non-Compete Term”) 
  

	 	1.5	Exceptions 

 (a) Neither Sections
1.3 and 1.4 nor any other provision of this Non-Compete Agreement shall be construed to prevent or restrict Buyer or Seller from, directly or indirectly through any Affiliate: 
 (i) acquiring any equity or other interest in any entity that engages, directly or indirectly, in any Restricted Activities (a
“Restricted Person”), so long as the purchase price for such Restricted Person is less than $150,000,000 and the annual revenue of such Restricted Person derived from such Restricted Activities in the most recent fiscal year prior
to the acquisition of such equity or other interest does not exceed 10% of the total revenue of such Restricted Person in such fiscal year and Buyer or Seller or such Affiliate of Buyer or Seller, as the case may be, divests or ceases operation of
such portion of such Restricted Person as is engaged in Restricted Activities within 24 months after such acquisition; or 
 (ii) acquiring and holding any securities of any Restricted Person which is publicly owned and traded, but only in an amount not to exceed at any one time 5% of any class of securities of such Restricted Person. 
 (b) Company acknowledges that: 
  

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 (i) Seller and its Affiliates have entered into joint venture relationships with the
parties listed in Schedule A, and that such relationships shall not be deemed a violation of Section 1.3, provided, however, that if Seller or its Affiliates have or obtain control of such joint ventures, Seller or its Affiliates
shall require such joint venture to comply with Section 1.3 of this Non-Compete Agreement, unless such action would breach an existing contractual obligation of Seller, its Affiliates, or the joint venture; and 
 (ii) the acquisition of Buyer, Seller or an assignee of Buyer or Seller by a Restricted Person, whether by purchase of stock or assets or
by merger, shall not be deemed a violation of Section 1.3, as long as: (a) such Restricted Person shall agree to assume the obligations set forth herein; (b) such Restricted Person shall divest or cease operation of such portion of
such Restricted Person as is engaged in Restricted Activities within twelve (12) months after such acquisition and there is no transfer or communication of any technology, proprietary information, or personnel between the Company and such
portion of such Restricted Activities; or (c) substantially all of the assets of such portion of such Restricted Person as is engaged in Restricted Activities are contributed to the Company on terms mutually acceptable to Company, Buyer and
Seller. 
 (c) Seller’s Affiliates may engage in Restricted Activities solely for the purpose of fulfilling its
obligations, if any, under the Guelph Facility Supply Agreement, the Battice Facility Supply Agreement, and the Transitional Services Agreement, and that this Non-Compete Agreement shall not be construed to prohibit Seller’s Affiliates
performance under those agreements. 
  

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 (d) Further, Company acknowledges that Seller and its Affiliates have previously entered
into license agreements with the parties listed in Schedule B in effect as of the Original Agreement Date, which license agreements may be construed to license Seller patents and/or know how rights to those parties to make, use, or sell Business
Products, and agrees that, except as indicated in Schedule B, Seller shall have no obligation to seek to modify such license agreements and the continued license of such rights under such agreements in effect as of the Original Agreement Date shall
not be deemed a violation of Section 1.3. Notwithstanding this paragraph 1.5(d), no Affiliate of Seller will be permitted to engage in any Restricted Activity during the term of this Non-Compete Agreement. 
  

	 	1.6	Termination 

 Unless otherwise agreed by the parties
before such transfer, Seller’s obligations under this Non-Compete Agreement shall terminate immediately upon the transfer by Company of any rights in any or all of the Business Patents, Business Know How, Seller Licensed Patents or Seller
Licensed Know or any tangible assets of the Company that incorporate any of the foregoing to CSG or any Affiliate thereof (unless Company believed in good faith, based upon reasonable inquiry, that the transferee entity was not at that time of the
transfer an Affiliate of CSG. In addition, Seller’s obligations under this Non-Compete Agreement shall terminate upon the occurrence of (i) CSG acquiring a majority of the voting rights or the right to elect a majority of the board of
directors of the Company, (ii) an Early Retiree Reimbursement Default, (iii) the failure of the Company to pay any Disputed Amount upon the final resolution of such amount as 

  

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provided in Section 4.34(m) of the Purchase Agreement or (iv) the failure of (x) the Company to cause the issuance of the Letter of Credit as
provided in Section 4.34(m) of the Purchase Agreement or (y) Seller to be able to draw upon the Letter of Credit as provided in Section 4.34(m) of the Purchase Agreement. 
  

	2.	INJUNCTIVE RELIEF 

 The provisions of
Sections 1 and 3.2 are reasonable and necessary to protect the Company in the conduct and operation of the Business, and Buyer and Seller acknowledge and agree that damages cannot compensate the Company in the event of a violation of any of the
foregoing covenants. Therefore, Buyer and Seller agree that in the event of a violation or breach of any covenant set forth in this Non-Compete Agreement, the Company may institute any action or proceeding to enforce such covenant at law or in
equity, including, but not limited to, injunctive relief. All provisions of this Non-Compete Agreement constitute a series of covenants and if any particular provision of this Non-Compete Agreement is adjudicated invalid or unenforceable, the
provision shall be deemed deleted, and such deletion shall apply only in the particular jurisdiction(s) in which such adjudication is made; provided, however, to the extent that any provision hereof is deemed unenforceable because of its scope in
terms of time, territory or business activities, but may be made enforceable by limitations thereon, such limitations may be made so that the covenant shall be enforceable to the fullest extent permissible under the laws and public policies
applicable to such jurisdiction(s). 
  

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	3.	GENERAL PROVISIONS 

  

	 	3.1	Definitions 

 As used in this Non-Compete Agreement,
the following defined terms shall have the meanings set forth below. Defined terms used herein without definition are used herein as defined in the Patent and Know How License Agreement or the Purchase Agreement, as the case may be. 
 (a) “High Strength Glass” means glass (i) having a tensile strength at room temperature (x) for a pristine
single filament of greater that 675 kpsi determined in accordance with the Seller Procedure as set forth in Schedule C to this Non-Compete Agreement and (y) for an impregnated strand determined in accordance with ASTM D2343 of greater than 450
kpsi and (ii) that further meets at least three of the following criteria: 
  

					
	 Criterion
	  	 Test Standard
	  	 Value

	Softening point	  	ASTM C-338	  	>1900 degrees F
			
	Tensile Modulus at Room Temperature	  	ASTM D2101	  	>12.5 Mpsi
			
	Strain to Failure (Elongation at Break)	  	ASTM D2101	  	>5.4%
			
	 Dimensional Stability
 (Coefficient of Thermal Expansion)

	  		  	<2.0 x 10E-6 in/in-°F

 (b) “Patent and Know How License Agreement” means the Patent and
Know How License Agreement, dated as of September 30, 1998, as amended by Amendment No. 1 thereto dated as of September 16, 2003 between seller, certain of its affiliates and Company. 
 (c) “Purchase Agreement” means the LLC Interest Sale and Purchase Agreement, dated as of July 31, 2003 among Seller,
Company, and AGY Holdings, Inc., as amended by No.1 thereto dated as of September 30, 1998 and Amendment No. 2 thereto dated as of September 16, 2003, as such Agreement may be further amended, restated, supplemented or otherwise
modified from time to time. 
  

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	 	3.2	Non-Solicitation 

 For the period commencing on
May 1, 2003 and ending on May 1, 2005 (the “Non-Solicitation Term”), Seller covenants and agrees that it shall not (and shall not permit any of its controlled Affiliates to) hire or attempt to hire, call upon or solicit, directly
or indirectly, interfere or attempt to interfere with, induce or attempt to induce any of the Company’s employees listed on Schedule D hereto (the “Restricted Employees”) to leave the employ of the Company or its affiliates or
violate the terms of their respective employment contacts, if any. Further, Seller covenants and agrees that it (i) shall not provide any confidential or proprietary information regarding any Restricted Employee to CSG or to Violet
Reinforcement S. de R.L. (“Violet”); and (ii) will notify CSG and Violet of its obligations under this Section 3.2. Notwithstanding the foregoing, the restrictions contained in this Section 3.2 shall not apply
(i) to any employee of the Company other than the Restricted Employees, (ii) to any Restricted Employee that has received a bona fide offer of employment from a third party in the Company’s industry that is not an Affiliate of Seller
(for this purpose Violet shall not be deemed an Affiliate of Seller); or (iii) in the event the Company publicly announces its intention to liquidate or to sell the Business other than as a going concern, provided that without the
Company’s consent, no Restricted Employee may be solicited or hired prior to the date that such publicly announced liquidation or sale is consummated, unless the Restricted Employees has been involuntarily terminated by Company prior to the
date of consummation of such liquidation or sale. 
  

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	 	3.3	Notices 

 All communications provided for hereunder
shall be in writing and shall be deemed to be given when delivered in person or by private courier with receipt, when telefaxed and received, or three (3) days after being deposited in the United States mail, first-class, registered or
certified, return receipt requested, with postage paid: 
  

			
	If to Company:	 	Advanced Glassfiber Yarns LLC
		 	 2558 Wagener Road
 Aiken, South Carolina 29801

Fax: 803-643-1526
 Attention: Chief Operating Officer

		
	With a copy to:	 	 Proskauer Rose LLP
 1585 Broadway
 New York, NY 10036
 Fax: 212-969-2900
 Attention: Scott K. Rutsky

		
	If to Buyer to:	 	 AGY Holdings, Inc.
 3802 Robert Porcher Way
 Greensboro, North Carolina 27410
 Fax: 336-845-7718
 Attention: President

		
	With a copy to:	 	 Alston & Bird, LLP
 601 Pennsylvania Avenue,
N.W. North Building
 Washington, DC 20004-2601
 Fax: 202-508-3333

 Attention: Frank M. Connor, III

		
	If to Seller:	 	 Owens Corning World Headquarters
 One Owens Corning
Parkway
 Toledo, Ohio 43659
 Fax: 419-248-8445
 Attention: Corporate Secretary

		
	With a copy to:	 	 Owens Corning World Headquarters
 One Owens Corning
Parkway
 Toledo, Ohio 43659
 Fax: 419-248-1723
 Attention: Law Department

  

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 or to such other address as any such party shall designate by written notice to the other parties hereto. 
  

	 	3.4	Governing Law 

 This Non-Compete Agreement shall be
governed by, and construed in accordance with, the laws of State of New York without giving effect to the conflicts of law principles thereof. 
  

	 	3.5	Assignability 

 This Non-Compete Agreement shall be
binding upon and shall inure to the benefit of the parties and their respective successors and assigns. Except as otherwise expressly provided herein, this Agreement shall not be assigned by any party hereto without the express prior written consent
of the other parties, and any attempted assignment, without such consents, shall be null and void. Notwithstanding any nonassignment provisions contained in this Section 3.5, Company, or any permitted assignee or transferee of Company, may
assign or otherwise transfer all of its rights and/or obligations hereunder (i) to any entity or entities, or any assignee of such entity or entities, providing financing for the transactions contemplated by this Agreement or to any entity or
entities providing to Company, Company’s Affiliates, or to any such permitted assignee of Company, financing relating to the Business (collectively, the “Financing Sources”), (ii) to any Affiliate of Company, provided that
(x) such Affiliate shall agree with Company and its permitted assignees or transferees, if any, in writing to assume the Company’s obligations hereunder and (y) any such assignment to an Affiliate of the Company shall not relieve the
Company from its obligations hereunder or (iii) to any entity to which Company, or any assignee or transferee of Company, assigns, sells, transfers or otherwise conveys (A) all or substantially all of the assets constituting the Business
(a “Complete Assignment”) or (B) all or substantially all of the assets constituting either the Aiken Facility, the Huntington Facility or the South Hill 
  

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 Facility (a “Partial Assignment”) provided that such acquiring entity agrees with and acknowledges in
writing to Seller and its permitted assignees or transferees, if any, that this Agreement shall be binding upon and enforceable against such entity as though such acquiring entity were Company and that such entity shall perform all of Company’s
obligations hereunder. Notwithstanding any nonassignment provisions contained in this Section 3.5, Seller, or any permitted assignee or transferee of Seller, may assign or otherwise transfer some or all of its rights and/or obligations
hereunder to any Affiliate of Seller, provided that (x) such Affiliate shall agree with Seller and/or its permitted assignees or transferees, if any, in writing to assume the Seller’s obligations hereunder and (y) any such assignment
to an Affiliate of the Seller shall not relieve the Seller from its obligations hereunder. To the extent that assignment and/or transfer of any of the rights, privileges, and/or obligations is permitted, this Agreement shall be binding on, and
except as otherwise expressly provided, shall inure to the benefit of, the legal successors, assigns, or representatives of the parties. 
  

	 	3.6	Entire Agreement 

 This Non-Compete Agreement
supersedes any prior agreement between the parties with respect to the subject hereof, including, without limitation the Original Agreement, and constitutes the entire agreement between the parties with respect to the subject hereof. 
  

	 	3.7	Amendment; Waiver 

 This Non-Compete Agreement may
be amended, supplemented or otherwise modified only by a written instrument executed by the parties hereto. No waiver by either party of any of the provisions hereof shall be effective unless explicitly set forth in writing and executed by the party
so waiving. Except as provided in the preceding sentence, no action taken pursuant to this Non-Compete Agreement, including without limitation, any investigation by or on behalf of any 

  

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parties shall be deemed to constitute a waiver by the party taking such action of compliance with any representations warranties, covenants or agreements
contained herein, and in any documents delivered or to be delivered pursuant to this Non-Compete Agreement. The waiver by any party hereto or a breach of any provisions of this Non-Compete Agreement shall not operate or be construed as a waiver of
any subsequent breach. 
  

	 	3.8	Counterparts 

 This Non-Compete Agreement may be
executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same interest. 
  

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 IN WITNESS WHEREOF, the parties have caused this Amended and Restated Non-Compete Agreement to be duly
executed as of the day and year first above written. 
  

			
	OWENS CORNING
		
	By:	 	 /s/ John W. Christy

	Name:	 	John W. Christy
	Title:	 	Vice President, Transactions & Assistant Secretary
	
	ADVANCED GLASSFIBER YARNS, LLC
		
	By:	 	 /s/ Gary Bernhardy

	Name:	 	Gary Bernhardy
	Title:	 	COOSecurity Agreement dated as of October 25, 2006

 Exhibit 10.5 
  
  
 SECURITY AGREEMENT 
 By 
 AGY HOLDING CORP., AGY AIKEN LLC AND AGY
HUNTINGDON LLC 
 as Borrowers 
 and 
 THE GUARANTORS PARTY HERETO 
 and 
 UBS AG, STAMFORD BRANCH, 
 as Collateral Agent 
 Dated as of October 25, 2006 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	Page
	PREAMBLE	  	1
		
	RECITALS	  	1
		
	AGREEMENT	  	2
	
	ARTICLE I  
 DEFINITIONS AND INTERPRETATION

			
	SECTION 1.1.	  	 DEFINITIONS
	  	2
	SECTION 1.2.	  	 INTERPRETATION
	  	9
	SECTION 1.3.	  	 RESOLUTION OF DRAFTING AMBIGUITIES
	  	9
	SECTION 1.4.	  	 PERFECTION CERTIFICATE
	  	9
	
	ARTICLE II  
 GRANT OF SECURITY AND SECURED OBLIGATIONS

			
	SECTION 2.1.	  	 GRANT OF SECURITY INTEREST
	  	9
	SECTION 2.2.	  	 FILINGS
	  	10
	SECTION 2.3.	  	 INTERCREDITOR AGREEMENT
	  	11
	
	ARTICLE III  
 PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES;
 USE OF PLEDGED COLLATERAL

			
	SECTION 3.1.	  	 DELIVERY OF CERTIFICATED SECURITIES COLLATERAL
	  	11
	SECTION 3.2.	  	 PERFECTION OF UNCERTIFICATED SECURITIES COLLATERAL
	  	12
	SECTION 3.3.	  	 FINANCING STATEMENTS AND OTHER FILINGS; MAINTENANCE OF PERFECTED SECURITY INTEREST
	  	12
	SECTION 3.4.	  	 OTHER ACTIONS
	  	12
	SECTION 3.5.	  	 JOINDER OF ADDITIONAL GUARANTORS
	  	16
	SECTION 3.6.	  	 SUPPLEMENTS; FURTHER ASSURANCES
	  	16

  

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	 	  	Page
	
	ARTICLE IV  
 REPRESENTATIONS, WARRANTIES AND COVENANTS

			
	SECTION 4.1.	  	 TITLE
	  	17
	SECTION 4.2.	  	 VALIDITY OF SECURITY INTEREST
	  	17
	SECTION 4.3.	  	 DEFENSE OF CLAIMS; TRANSFERABILITY OF PLEDGED COLLATERAL
	  	17
	SECTION 4.4.	  	 OTHER FINANCING STATEMENTS
	  	18
	SECTION 4.5.	  	 LOCATION OF INVENTORY AND EQUIPMENT
	  	18
	SECTION 4.6.	  	 DUE AUTHORIZATION AND ISSUANCE
	  	18
	SECTION 4.7.	  	 CONSENTS, ETC
	  	18
	SECTION 4.8.	  	 PLEDGED COLLATERAL
	  	19
	SECTION 4.9.	  	 INSURANCE
	  	19
	
	ARTICLE V  
 CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL

			
	SECTION 5.1.	  	 PLEDGE OF ADDITIONAL SECURITIES COLLATERAL
	  	19
	SECTION 5.2.	  	 VOTING RIGHTS; DISTRIBUTIONS; ETC
	  	19
	SECTION 5.3.	  	 DEFAULTS, ETC
	  	21
	SECTION 5.4.	  	 CERTAIN AGREEMENTS OF PLEDGORS AS ISSUERS AND HOLDERS OF EQUITY INTERESTS
	  	21
	
	ARTICLE VI  
 CERTAIN PROVISIONS CONCERNING INTELLECTUAL PROPERTY COLLATERAL

			
	SECTION 6.1.	  	 GRANT OF INTELLECTUAL PROPERTY LICENSE
	  	21
	SECTION 6.2.	  	 PROTECTION OF COLLATERAL AGENT’S SECURITY
	  	22
	SECTION 6.3.	  	 AFTER-ACQUIRED PROPERTY
	  	22
	SECTION 6.4.	  	 LITIGATION
	  	23
	
	ARTICLE VII  
 CERTAIN PROVISIONS CONCERNING RECEIVABLES

			
	SECTION 7.1.	  	 MAINTENANCE OF RECORDS
	  	23
	SECTION 7.2.	  	 LEGEND
	  	24
	SECTION 7.3.	  	 MODIFICATION OF TERMS, ETC
	  	24
	SECTION 7.4.	  	 COLLECTION
	  	24

  

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	 	  	Page
	
	ARTICLE VIII  
 TRANSFERS

			
	SECTION 8.1.	  	 TRANSFERS OF PLEDGED COLLATERAL
	  	24
	
	ARTICLE IX  
 REMEDIES

			
	SECTION 9.1.	  	 REMEDIES
	  	25
	SECTION 9.2.	  	 NOTICE OF SALE
	  	26
	SECTION 9.3.	  	 WAIVER OF NOTICE AND CLAIMS
	  	27
	SECTION 9.4.	  	 CERTAIN SALES OF PLEDGED COLLATERAL
	  	27
	SECTION 9.5.	  	 NO WAIVER; CUMULATIVE REMEDIES
	  	29
	SECTION 9.6.	  	 CERTAIN ADDITIONAL ACTIONS REGARDING INTELLECTUAL PROPERTY
	  	29
	
	ARTICLE X  
 APPLICATION OF PROCEEDS

			
	SECTION 10.1.	  	 APPLICATION OF PROCEEDS
	  	29
	
	ARTICLE XI  
 MISCELLANEOUS

			
	SECTION 11.1.	  	 CONCERNING COLLATERAL AGENT
	  	30
	SECTION 11.2.	  	 COLLATERAL AGENT MAY PERFORM; COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
	  	31
	SECTION 11.3.	  	 CONTINUING SECURITY INTEREST; ASSIGNMENT
	  	32
	SECTION 11.4.	  	 TERMINATION; RELEASE
	  	32
	SECTION 11.5.	  	 MODIFICATION IN WRITING
	  	33
	SECTION 11.6.	  	 NOTICES
	  	33
	SECTION 11.7.	  	 GOVERNING LAW, CONSENT TO JURISDICTION AND SERVICE OF PROCESS; WAIVER OF JURY TRIAL
	  	33
	SECTION 11.8.	  	 SEVERABILITY OF PROVISIONS
	  	33
	SECTION 11.9.	  	 EXECUTION IN COUNTERPARTS
	  	33
	SECTION 11.10.	  	 BUSINESS DAYS
	  	33
	SECTION 11.11.	  	 NO CREDIT FOR PAYMENT OF TAXES OR IMPOSITION
	  	34
	SECTION 11.12.	  	 NO CLAIMS AGAINST COLLATERAL AGENT
	  	34
	SECTION 11.13.	  	 NO RELEASE
	  	34

  

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	 	  	Page
			
	SECTION 11.14.	  	OBLIGATIONS ABSOLUTE	  	34
			
	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
	  	Form of Control Agreement Concerning Securities Accounts
	 EXHIBIT 5
	  	Form of Control Agreement Concerning Deposit Accounts
	 EXHIBIT 6
	  	Form of Copyright Security Agreement
	 EXHIBIT 7
	  	Form of Patent Security Agreement
	 EXHIBIT 8
	  	Form of Trademark Security Agreement
	 EXHIBIT 9
	  	Form of Bailee’s Letter

  

 -iv- 

 SECURITY AGREEMENT 
 This first lien SECURITY AGREEMENT dated as of October 25, 2006 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this
“Agreement”) made by AGY HOLDING CORP., a Delaware corporation (the ‘Parent Borrower”). AGY AIKEN LLC, a Delaware limited liability company (“Aiken”), AGY HUNTINGDON LLC, a Delaware limited
liability company (“Huntingdon”, and together with Parent Borrower and Aiken, each a “Borrower” and collectively, the “Borrowers”), and the Guarantors from to time to time party hereto (the
“Guarantors”), as pledgors, assignors and debtors (the Borrowers, together with the Guarantors, in such capacities and together with any successors in such capacities, the “Pledgors,” and each, a
“Pledgor”), in favor of UBS AG, STAMFORD BRANCH, 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 Borrowers, the Guarantors, the Collateral Agent and the lending institutions listed therein (the “Lenders”) have, in connection
with the execution and delivery of this Agreement, entered into that certain Credit Agreement, dated as of October 25, 2006 (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
Credit Agreement, unconditionally guaranteed the Secured Obligations. 
 C. Each Borrower and each Guarantor will receive substantial
benefits from the execution, delivery and performance of the obligations under the Credit Agreement 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. 
 E. The Parent Borrower has also entered into the Senior Second Lien Note
Agreement, and the Parent Borrower and each of the pledgors party thereto have entered into the Senior Second Lien Note Security Documents. 

 F. Concurrently herewith, the Collateral Agent hereunder and the Senior Second Lien Notes Collateral
Agent have entered into an Intercreditor Agreement which provides for, inter alia, the relative priorities of the security interests granted herein and in the other Security Documents, on the one hand, and in the Senior Second Lien Note Security
Documents, on the other hand. 
 G. It is a condition to (i) the obligations of the Lenders to make the Loans under the Credit
Agreement, (ii) the obligations of the Issuing Bank to issue Letters of Credit and (iii) the performance of the obligations of the Secured Parties under Hedging Agreements that constitute Secured Obligations 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”;
“Commodity Intermediary”; “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 Account”; “Securities Intermediary”; “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.
Sections 1.03 and 1.05 of the Credit Agreement shall apply herein mutatis mutandis. 
 (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. 
  

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

 “Bailee Letter” shall be an agreement in form substantially similar to Exhibit 9 hereto. 
 “Borrowers” 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. 
 “Commodity Account Control Agreement” shall mean a control agreement in a form that is reasonably satisfactory to the Administrative Agent establishing the Collateral Agent’s Control with respect to any Commodity
Account. 
 “Contracts” shall mean, collectively, with respect to each Pledgor, the Acquisition Documents, all sale,
service, performance, equipment or property lease contracts, agreements and grants and all other 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 (i) in the case of each Deposit Account, “control,” as such term is defined in Section 9-104 of the UCC, (ii) in the case of any Security Entitlement, “control,” as
such term is defined in Section 8-106 of the UCC, and (iii) in the case of any Commodity Contract, “control,” as such term is defined in Section 9-106 of the UCC. 
 “Control Agreements” shall mean, collectively, the Deposit Account Control Agreement, the Securities Account Control Agreement (if any)
and the Commodity Account Control Agreement (if any). 
 “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.

  

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 “Copyright Security Agreement” shall mean an agreement substantially in the form of
Exhibit 6 hereto. 
 “Credit Agreement” shall have the meaning assigned to such term in Recital A hereof.

 “Deposit Account Control Agreement” shall mean an agreement substantially in the form of Exhibit 5 hereto or such
other form that is reasonably satisfactory to the Collateral Agent establishing the Collateral Agent’s Control with respect to any Deposit Account. 
 “Deposit Accounts” shall mean, collectively, with respect to each Pledgor, (i) all “deposit accounts” as such term is defined in the UCC and in any event shall include the LC Account
and all accounts and sub-accounts relating to any of the foregoing accounts and (ii) all cash, funds, checks, notes and instruments from time to time on deposit in any of the accounts or sub-accounts described in clause (i) of this
definition. 
 “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. 
 “Excluded Property” shall mean 
 (a) any permit or license issued by a Governmental Authority to any Pledgor or any agreement to which any Pledgor is a party, in each case, only to the extent and for so long as the terms of such permit, license or
agreement or any Requirement of Law applicable thereto, validly prohibit the creation by such Pledgor of a security interest in such permit, license or agreement in favor of the Collateral Agent (after giving effect to Sections 9-406(d), 9-407(a),
9-408(a) or 9-409 of the UCC (or any successor provision or provisions) or any other applicable law (including the Bankruptcy Code) or principles of equity), and 
 (b) Equipment owned by any Pledgor on the date hereof or hereafter acquired that is subject to a Lien securing a Purchase Money Obligation
or Capital Lease Obligation permitted to be incurred pursuant to the provisions of the Credit Agreement if the contract or other agreement in which such Lien is granted (or the documentation providing for such Purchase Money Obligation or Capital
Lease Obligation) validly prohibits the creation of any other Lien on such Equipment; 

  

 -4- 

 provided, however, that Excluded Property shall not include any Proceeds, substitutions or replacements of
any Excluded Property referred to in clause (a) or (b) (unless such Proceeds, substitutions or replacements would constitute Excluded Property referred to in clause (a) or (b)). 
 “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 or the Mortgaged Property,
(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 or any of the Mortgaged Property, (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 or any of the Mortgaged Property, including all customer or tenant 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 or any of the Mortgaged Property 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.

  

 -5- 

 “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. 
 “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 (if any) 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, Securities
Account, 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 2.18(i) of the Credit Agreement and all property from time to time on deposit in such LC Account. 
 “Lenders” shall have the meaning assigned to such term in Recital A hereof. 
 “Material Intellectual Property Collateral” shall mean any Intellectual Property Collateral that is material (i) to the use and
operation of the Pledged Collateral or Mortgaged Property or (ii) to the business, results of operations, prospects or condition, financial or otherwise, of any Pledgor. 
 “Mortgaged Property” shall have the meaning assigned to such term in the Mortgages. 
  

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

 “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. 
 “Patent Security Agreement” shall mean an agreement substantially in the form of Exhibit 7 hereto. 
 “Perfection Certificate” shall mean that certain perfection certificate dated October 25, 2006, 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 

  

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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 any Equity Interests which are not required to be pledged pursuant to Section 5.10(b) of the Credit Agreement. 
 “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 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 Parties” shall mean, collectively, the Administrative Agent, the Collateral Agent, each other Agent, the Lenders
and each counterparty to a Hedging Agreement or Treasury Services Agreement if at the date of entering into such Hedging Agreement or Treasury Services Agreement such person was a Lender or an Affiliate of a Lender and such person executes and
delivers to the Administrative Agent a letter agreement in form and substance acceptable to the Administrative Agent pursuant to which such person (i) appoints the Collateral Agent as its agent under the applicable Loan Documents and
(ii) agrees to be bound by the provisions of Sections 11.03 and 11.09 as if it were a Lender. 
 “Securities
Account Control Agreement” shall mean an agreement substantially in the form of Exhibit 4 hereto or such other form that is reasonably satisfactory to the Collateral Agent establishing the Collateral Agent’s Control with respect
to any Securities Account. 
 “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 

  

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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. 
 “Trademark Security
Agreement” shall mean an agreement substantially in the form of Exhibit 8 hereto. 
 “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 1.03 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. 
 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; 

  

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	 	(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 Money and all Deposit Accounts; 

  

	 	(xi)	all Supporting Obligations; 

  

	 	(xii)	all books and records relating to the Pledged Collateral; and 

  

	 	(xiii)	to the extent not covered by clauses (i) through (xii) 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. 

 Notwithstanding anything to the contrary contained in clauses
(i) through (xiii) above, the security interest created by this Agreement shall not extend to, and the term “Pledged Collateral” shall not include, any Excluded Property and (i) the Pledgors shall from time to time at the
request of the Collateral Agent give written notice to the Collateral Agent identifying in reasonable detail the Excluded Property and shall provide to the Collateral Agent such other information regarding the Excluded Property as the Collateral
Agent may reasonably request and (ii) from and after the Closing Date, no Pledgor shall permit to become effective in any document creating, governing or providing for any permit, license or agreement a provision that would prohibit the
creation of a Lien on such permit, license or agreement in favor of the Collateral Agent unless such Pledgor believes, in its reasonable judgment, that such prohibition is usual and customary in transactions of such type. 
 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) 

  

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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, the Copyright Security Agreement (it being
understood that a Copyright Security Agreement is not required to be delivered on the Closing Date), the Patent Security Agreement and the 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. 
 SECTION 2.3. Intercreditor Agreement. Notwithstanding anything to the contrary contained in this Agreement, the priorities with respect to all
security interests granted to the Collateral Agent hereunder and under the other Loan Documents and to the Senior Second Lien Notes Collateral Agent under the Senior Second Lien Note Documents shall be governed by the terms and provisions of the
Intercreditor Agreement. 
 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 

  

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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 or desirable to perfect a security interest in such Pledged Securities, cause such pledge to be recorded on the equityholder 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, (iii) upon request by the Collateral Agent, provide to the
Collateral Agent an opinion of counsel, in form and substance reasonably satisfactory to the Collateral Agent, confirming such pledge and perfection thereof, and (iv) 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 a 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. Financing Statements and Other Filings: Maintenance of Perfected Security Interest. Each Pledgor represents and warrants that all financing statements, agreements, instruments and other documents
necessary to perfect the security interest granted by it to the Collateral Agent in respect of the Pledged Collateral have been delivered to the Collateral Agent in completed and, to the extent necessary or appropriate, duly executed form for filing
in each governmental, municipal or other office specified in Schedule 7 to the Perfection Certificate. Each Pledgor agrees that at the sole cost and expense of the Pledgors, such Pledgor will maintain the security interest created by this
Agreement in the Pledged Collateral as a perfected first priority security interest subject only to Permitted Collateral Liens. 
 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: 
  

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 (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. Each Instrument and each item
of Tangible Chattel Paper listed in Schedule 11 to the Perfection Certificate 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 $500,000 in the aggregate for all Pledgors, the Pledgor acquiring such Instrument or Tangible Chattel Paper shall promptly (but in any event within five 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 specify. 
 (b) Deposit Accounts. As of the date hereof, no Pledgor has any Deposit Accounts other than the accounts listed in Schedule 14 to the
Perfection Certificate. The Collateral Agent has a first priority security interest in each such Deposit Account, which security interest is perfected by Control. No Pledgor shall hereafter establish and maintain any Deposit Account unless
(1) it shall have given the Collateral Agent 30 days’ prior written notice of its intention to establish such new Deposit Account with a Bank, (2) such Bank shall be reasonably acceptable to the Collateral Agent and (3) such Bank
and such Pledgor shall have duly executed and delivered to the Collateral Agent a Deposit Account Control Agreement with respect to such Deposit Account. The Collateral Agent agrees with each Pledgor that the Collateral Agent shall not give any
instructions directing the disposition of funds from time to time credited to any Deposit Account or withhold any withdrawal rights from such Pledgor with respect to funds from time to time credited to any Deposit Account unless an Event of Default
has occurred and is continuing. The provisions of this Section 3.4(b) shall not apply to the LC Account or to any other Deposit Accounts for which the Collateral Agent is the Bank. No Pledgor shall grant Control of any Deposit Account to
any person other than the Collateral Agent. 
 (c) Securities Accounts and Commodity Accounts. (i) As of the date hereof, no
Pledgor has any Securities Accounts or Commodity Accounts other than those (if any) listed in Schedule 14 to the Perfection Certificate. The Collateral Agent has a first priority security interest in each such Securities Account and Commodity
Account, which security interest is perfected by Control. No Pledgor shall hereafter establish and maintain any Securities Account or Commodity Account with any Securities Intermediary or Commodity Intermediary unless (1) it shall have given
the Collateral Agent 30 days’ prior written notice of its intention to establish such new Securities Account or Commodity Account with such Securities Intermediary or Commodity Intermediary, (2) such Securities Intermediary or Commodity
Intermediary shall be reasonably acceptable to the Collateral Agent and (3) such Securities Intermediary or Commodity Intermediary, as the case may be, and such Pledgor shall have duly executed and delivered a Control Agreement 

  

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with respect to such Securities Account or Commodity Account, as the case may be. Each Pledgor shall accept any cash and Investment Property in trust for the
benefit of the Collateral Agent and within one (1) Business Day of actual receipt thereof, deposit any and all cash and Investment Property received by it into a Deposit Account or Securities Account subject to Collateral Agent’s Control.
The Collateral Agent agrees with each Pledgor that the Collateral Agent shall not give any Entitlement Orders or instructions or directions to any issuer of uncertificated securities, Securities Intermediary or Commodity Intermediary, and shall not
withhold its consent to the exercise of any withdrawal or dealing rights by such Pledgor, unless an Event of Default has occurred and is continuing or, after giving effect to any such investment and withdrawal rights, would occur. The provisions of
this Section 3.4(c) shall not apply to any Financial Assets credited to a Securities Account for which the Collateral Agent is the Securities Intermediary. No Pledgor shall grant Control over any Investment Property to any person other
than the Collateral Agent. 
 (ii) As between the Collateral Agent and the Pledgors, the Pledgors shall bear the investment risk with respect
to the Investment Property and Pledged Securities, and the risk of loss of, damage to, or the destruction of the Investment Property and Pledged Securities, whether in the possession of, or maintained as a Security Entitlement or deposit by, or
subject to the Control of, the Collateral Agent, a Securities Intermediary, a Commodity Intermediary, any Pledgor or any other person. 
 (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. 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 meaning of the statutes described in the immediately preceding sentence, does not exceed $500,000 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 

  

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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, 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, subject to the
Intercreditor 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 $500,000 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 $500,000 in the aggregate for all Pledgors. 
 (g) Landlord’s Access Agreements/Bailee Letters. Each Pledgor shall use its commercially reasonable efforts to obtain as soon as practicable
after the date hereof with respect to each location set forth in Schedule 4.01(m)(vi) to the Credit Agreement, where such Pledgor maintains Pledged Collateral, a Bailee Letter and/or Landlord Access Agreement, as applicable, and use
commercially reasonable efforts to obtain a Bailee Letter, Landlord Access Agreement and/or landlord’s lien waiver, as applicable, from all such bailees and landlords, as applicable, who from time to time have possession of any Pledged
Collateral if reasonably requested by the Collateral Agent. A waiver of bailee’s lien shall not be required if the value of the Pledged Collateral held by such bailee is less then $10,000, provided that the aggregate value of the Pledged
Collateral held by all bailees who have not delivered a Bailee Letter is less than $200,000 in the aggregate. 
  

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 (h) Motor Vehicles. Upon the request of the Collateral Agent, each Pledgor shall deliver to the
Collateral Agent originals of the certificates of title or ownership for the motor vehicles (and any other Equipment covered by certificates of title or ownership) owned by it, with the Collateral Agent listed as lienholder therein. Such requirement
shall not apply if any such motor vehicle (or any such other Equipment) is valued at less than $50,000, provided that the aggregate value of all motor vehicles (and such Equipment) as to which any Pledgor has not delivered a certificate of title or
ownership is less than $500,000. 
 SECTION 3.5. Joinder of Additional Guarantors. The Pledgros shall cause each Subsidiary of a
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, (a) to execute and deliver to the
Collateral Agent (i) a Joinder Agreement substantially in the form of Exhibit 3 hereto within thirty (30) days of the date on which it was acquired or created and (ii) a Perfection Certificate, in each case, within thirty
(30) days of the date on which it was acquired or created or (b) in the case of a Subsidiary organized outside of the United States required to pledge any assets to the Collateral Agent, to execute and deliver to the Collateral Agent such
documentation as the Collateral Agent shall reasonably request and, in each case with respect to clauses (a) and (b) above, 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 or appropriate 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 and the
execution and delivery of Control Agreements, 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, enforceablity 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 

  

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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. 
 ARTICLE IV 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 Each Pledgor represents, warrants and covenants as follows: 
 SECTION 4.1. Title. Except for the security interest granted to
the Collateral Agent for the ratable benefit of the Secured Parties pursuant to this Agreement and Permitted Liens, such Pledgor owns and has rights and, as to Pledged Collateral acquired by it from time to time after the date hereof, will own and
have rights in each item of Pledged Collateral pledged by it hereunder, free and clear of any and all Liens or claims of others. In addition, no Liens or claims exist on the Securities Collateral, other than as permitted by Section 6.02
of the Credit Agreement. 
 SECTION 4.2. Validity of Security Interest. The security interest in and Lien on the Pledged Collateral
granted to the Collateral Agent for the benefit of the Secured Parties hereunder constitutes (a) a legal and valid security interest in all the Pledged Collateral securing the payment and performance of the Secured Obligations, and
(b) subject to the filings and other actions described in Schedule 7 to the Perfection Certificate (to the extent required to be listed on the schedules to the Perfection Certificate as of the date this representation is made or deemed
made), a perfected security interest in all the Pledged Collateral. The security interest and Lien granted to the Collateral Agent for the benefit of the Secured Parties pursuant to this Agreement in and on the Pledged Collateral will at all times
constitute a perfected, continuing security interest therein, prior to all other Liens on the Pledged Collateral except for Permitted Collateral Liens. 
 SECTION 4.3. Defense of Claims: Transferabilitv of Pledged Collateral. Subject to Section 5.05 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 Permitted Collateral Liens 

  

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and (except with respect to priority) Liens in favor of the Senior Second Lien Notes Collateral Agent pursuant to the Senior Second Lien Note Documents.
Other than the Senior Second Lien Note Documents, 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 4.4. 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, in favor of the Senior Second Lien Notes Collateral Agent pursuant to the
Senior Second Lien Note Documents, or in favor of any holder of a Permitted Collateral Lien with respect to such Permitted Collateral 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 hereby, by such Pledgor to the Senior Second Lien Notes Collateral Agent and/or
to the holder of the Permitted Collateral Liens. 
 SECTION 4.5. Location of Inventory and Equipment. It shall not move any Equipment
or Inventory to any location, other than any location that is listed in the relevant Schedules to the Perfection Certificate, unless (i) 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 and (ii) to the extent applicable with respect to
such new location, such Pledgor shall have complied with Section 3.4(g); provided that in no event shall any Equipment or Inventory be moved to any location outside of the continental United States. 
 SECTION 4.6. Due Authorization and Issuance. All of the Pledged Securities existing on the date hereof have been, and to the extent any Pledged
Securities are hereafter issued, such Pledged Securities will be, upon such issuance, duly authorized, validly issued and fully paid and non-assessable to the extent applicable. There is no amount or other obligation owing by any Pledgor to any
issuer of the Pledged Securities in exchange for or in connection with the issuance of the Pledged Securities or any Pledgor’s status as a partner or a member of any issuer of the Pledged Securities. 
 SECTION 4.7. 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 best 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. 
  

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 SECTION 4.8. 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 4.9. 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, subject to the Intercreditor Agreement. 
 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, accept the same in trust for the benefit of the Collateral Agent and promptly
(but in any event within five 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. 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. 
 SECTION 5.2. Voting Rights; Distributions; etc. 
 (a) So long as no Event of Default shall have
occurred and be continuing: 
 (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. 
  

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 (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: 
 (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 consensual 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. 
 (d) 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 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(a)(i) or Section 5.2(c)(i) hereof and to receive all Distributions which it may be entitled to receive under Section 5.2(a)(ii) or 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) or Section 5.2(c)(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). 
  

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 SECTION 5.3. Defaults, etc. Such Pledgor is not in default in the payment of any portion of any
mandatory capital contribution, if any, required to be made under any agreement to which such Pledgor is a party relating to the Pledged Securities pledged by it, and such Pledgor is not in violation of any other provisions of any such agreement to
which such Pledgor is a party, or otherwise in default or violation thereunder. No Securities Collateral pledged by such Pledgor is subject to any defense, offset or counterclaim, nor have any of the foregoing been asserted or alleged against such
Pledgor by any person with respect thereto, and as of the date hereof, there are no certificates, instruments, documents or other writings (other than the Organizational Documents and certificates representing such Pledged Securities that have been
delivered to the Collateral Agent) which evidence any Pledged Securities of such Pledgor. 
 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 in which any of the licensed items may be recorded or stored
and to all computer programs used for the compilation or printout hereof. 
  

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 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 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. 
  

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 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 11.03 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. 
  

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 SECTION 7.2. Legend. Each Pledgor shall legend, at the request of the Collateral Agent and in form
and manner satisfactory to the Collateral Agent, the Receivables and the other books, records and documents of such Pledgor evidencing or pertaining to the Receivables with an appropriate reference to the fact that the Receivables have been assigned
to the Collateral Agent for the benefit of the Secured Parties and that the Collateral Agent has a security interest therein. 
 SECTION 7.3.
Modification of Terms, etc. No Pledgor shall rescind or cancel any obligations evidenced by any Receivable or modify any term thereof or make any adjustment with respect thereto except in the ordinary course of business consistent with
prudent business practice, or extend or renew any such obligations except in the ordinary course of business consistent with prudent business practice or compromise or settle any dispute, claim, suit or legal proceeding relating thereto or sell any
Receivable or interest therein except in the ordinary course of business consistent with prudent business practice without the prior written consent of the Collateral Agent. Each Pledgor shall timely fulfill all obligations on its part to be
fulfilled under or in connection with the Receivables. 
 SECTION 7.4. Collection. Each Pledgor shall cause to be collected 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. Transfers of Pledged Collateral. No Pledgor shall sell, convey, assign or otherwise dispose of, or grant any option
with respect to, any of the Pledged Collateral pledged by it hereunder except as expressly permitted by the Credit Agreement. 
  

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 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 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.l(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; 
  

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 (v) Withdraw all moneys, instruments, securities and other property in any bank, financial securities,
deposit or other account of any Pledgor constituting Pledged Collateral for application to the Secured Obligations as provided in Article X hereof; 
 (vi) Retain and apply the Distributions to the Secured Obligations as provided in Article X hereof; 
 (vii) 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 
 (viii) 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, 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 

  

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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 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 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 

  

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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) Notwithstanding the foregoing, each Pledgor shall, upon the occurrence and during the continuance of any Event of Default, at the reasonable request of the Collateral Agent, for the benefit of the Collateral Agent, cause any
registration, qualification under or compliance with any Federal or state securities law or laws to be effected with respect to all or any part of the Securities Collateral as soon as practicable and at the sole cost and expense of the Pledgors.
Each Pledgor will use its commercially reasonable efforts to cause such registration to be effected (and be kept effective) and will use its commercially reasonable efforts to cause such qualification and compliance to be effected (and be kept
effective) as may be so requested and as would permit or facilitate the sale and distribution of such Securities Collateral including registration under the Securities Act (or any similar statute then in effect), appropriate qualifications under
applicable blue sky or other state securities laws and appropriate compliance with all other requirements of any Governmental Authority. Each Pledgor shall use its commercially reasonable efforts to cause the Collateral Agent to be kept advised in
writing as to the progress of each such registration, qualification or compliance and as to the completion thereof, shall furnish to the Collateral Agent such number of prospectuses, offering circulars or other documents incident thereto as the
Collateral Agent from time to time may request, and shall indemnify and shall cause the issuer of the Securities Collateral to indemnify the Collateral Agent and all others participating in the distribution of such Securities Collateral against all
claims, losses, damages and liabilities caused by any untrue statement (or alleged untrue statement) of a material fact contained therein (or in any related registration statement, notification or the like) or by any omission (or alleged omission)
to state therein (or in any related registration statement, notification or the like) a material fact required to be stated therein or necessary to make the statements therein not misleading. 
 (d) 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. 
 (e) 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 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. 
  

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

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 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, the Intercreditor 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 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. 
  

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 (e) 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 5.12 of the Credit Agreement. 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 warehousemen’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 11.03 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 Agreement, the Intercreditor 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. 
  

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 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 Hedging Agreement and/or a Treasury
Services Agreement, such Hedging Agreement and/or Treasury Services 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, if (i) the 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, (ii) Secured Obligations of the type described in clause (b) and/or clause (c) 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 

  

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(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. 

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. 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 Parent 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 11.09 and 11.10 of the Credit Agreement are incorporated herein, mutatis mutandis, as if a part hereof. 
 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. 
  

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 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 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; 
  

 -34- 

 (ii) any lack of validity or enforceability of the Credit Agreement, any Hedging
Agreement, any Treasury Services 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 Hedging
Agreement, any Treasury Services 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
Hedging Agreement, any Treasury Services 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.] 
  

 -35- 

 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. 
  

			
	 AGY HOLDING CORP.,
 as
Pledgor

		
	By:	 	 /s/ C. Cuisson

	Name:	 	C. Cuisson
	Title:	 	VP CFO
	
	 KAGY HOLDING COMPANY, INC.,
 as
Pledgor

		
	By:	 	 /s/ Seth Hollander

	Name:	 	Seth Hollander
	Title:	 	Secretary
	
	 AGYAIKEN LLC,
 as
Pledgor

		
	By.	 	 /s/ C. Cuisson

	Name:	 	C. Cuisson
	Title:	 	VP CFO
	
	 AGY HUNTINGDON LLC,
 as
Pledgor

		
	By:	 	 /s/ C. Cuisson

	Name:	 	C. Cuisson
	Title:	 	VP CFO

 ABL Security Agreement Signature Page 

			
	 UBS AG, STAMFORD BRANCH,
as Collateral Agent

		
	By:	 	 /s/ Richard L. Tavrow

	Name:	 	Richard L. Tavrow
	Title:	 	Director
		
	By:	 	 /s/ Irja R. Otsa

	Name:	 	Irja R. Otsa
	Title:	 	Associate Director

 ABL Security Agreement Signature Page

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