Document:

Exhibit 10.19

 

AMENDMENT NO. 1

TO

INTERCREDITOR AGREEMENT

 

This
AMENDMENT NO. 1 TO INTERCREDITOR AGREEMENT (this “Amendment”), dated as
of December 22, 2009, is entered into by and among Wells Fargo Bank,
National Association, as the Collateral Agent and Administrative Agent (in such
capacities, together with successors and assigns, the “Aimco Agent”)
under the Aimco Credit Agreement, HSH Nordbank AG, New York Branch, as the
Collateral Agent (in such capacity, together with its successors and assigns,
the “Holdings Agent”) under the HSH Facilities, and is hereby
acknowledged by the lenders from time to time party to the HSH Facilities (the “Holdings
Lenders”).

 

RECITALS

 

WHEREAS,
the Aimco Agent and the Holdings Agent have entered into that certain Intercreditor
Agreement, dated as of July 17, 2009 (the “Intercreditor Agreement”);

 

WHEREAS,
as of the date hereof, the Borrower will form CSSW Stetson Holdings, LLC (the “Stetson
Intermediate Holding Company”), as a direct subsidiary of the Borrower and
the Borrower will own directly 100% of the Equity Interests of the Stetson
Intermediate Holding Company.  The
Stetson Intermediate Holding Company will own 100% of the Equity Interests in
Stetson Holdings which owns 100% of the Equity Interests in the Stetson Project
Company and Stetson Wind II, LLC (the “Stetson II Project Company”);

 

WHEREAS,
the Borrower has requested that the Aimco Lender and the Holdings Lenders amend
the Aimco Guarantee and Security Agreement and the Comparable Holdings Security
Document, respectively, to release its existing pledge of and Lien on the
Equity Interests in Stetson Holdings and in consideration thereof, the Borrower
will pledge all of the outstanding Equity Interests in the Stetson Intermediate
Holding Company;

 

WHEREAS,
the Aimco Lender has entered into that certain Credit Agreement, dated as of July 17,
2009, as amended as of September 16, 2009, as amended and restated as of December 22,
2009 (the “Aimco Amended and Restated Credit Agreement”) among CSSW,
LLC, a Delaware limited liability company, as borrower under the Aimco Amended
and Restated Credit Agreement, CSSW Holdings, LLC, a Delaware limited liability
company, the Aimco Lenders from time to time party thereto, and the Aimco
Agent, which amendment increases the obligations thereunder in an amount which
exceeds the sum of the Aimco Lien Cap Amount and the Aimco Lien Additional
Amount; and

 

WHEREAS,
the Aimco Agent, on behalf of the Aimco Lender, desires to amend the Aimco Lien
Cap Amount in the Intercreditor Agreement and effect certain other amendments.

 

NOW,
THEREFORE, in consideration of the foregoing and mutual agreements herein
contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound hereby, agree as follows:

 

 

SECTION 1.1.     Defined
Terms. Capitalized terms used and not otherwise defined in this Amendment
(including in the preamble and recitals hereto) shall have the meanings
assigned to such terms in the Intercreditor Agreement and the principles of
interpretation set forth therein shall apply herein.

 

SECTION 1.2.     Amendments
to the Intercreditor Agreement.

 

(a)         The definition of “Aimco
Lien Indebtedness” is hereby amended by deleting “$115,000,000” and inserting “$130,000,000”
in lieu thereof.

 

(b)        The definition of “Discharge
of Aimco Lien Indebtedness” is hereby amended by (i) deleting the word “and”
after the words “Initial Term Loan Commitment” and inserting “,” in lieu
thereof and (ii) inserting the words “and Stetson II Term Loan Commitment”
after the words “Subsequent Term Loan Commitment”.

 

(c)         The definition of “Steel
Winds Holding Company” is hereby deleted in its entirety and replaced with the
following:

 

‘“Steel Winds Holding Company” shall mean New York Wind II, LLC,
which owns directly 100% of the Equity Interests in the Steel Winds Project
Company.”

 

SECTION 1.3.     Conditions
to Effectiveness. This Amendment shall become effective as of the day set
forth above (the “Amendment Effective Date”) on the date that all of the
following conditions are satisfied: (i) the Aimco Agent and the Holdings
Agent (or their respective counsel) shall have received from such other party
and the Holdings Lenders counterparts of this Amendment (or a copy thereof by
facsimile or “pdf” transmission) signed on behalf of each such party and (ii) the
Aimco Amended and Restated Credit Agreement shall have been amended and
restated and entered into by the parties required to execute such agreement.
Except as expressly set forth herein, the Intercreditor Agreement, as
specifically amended by this Amendment, shall remain unchanged and in full
force and effect and is hereby ratified and confirmed.

 

SECTION 1.4.     Governing
Law; Counterparts.

 

(a)         This Amendment and the
rights and obligations of the parties hereunder shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York.

 

(b)        This Amendment may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument. This Amendment may be delivered by
facsimile or “pdf” transmission of the relevant signature pages thereof.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the
parties have caused this Amendment to be duly executed and delivered as of the
day and year first above written.

 

	
   

  	
  AIMCO AGENT:

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION, as agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Pinzon

  
	
   

  	
   

  	
  Name: Michael Pinzon

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HOLDINGS AGENT:

  
	
   

  	
   

  
	
   

  	
  HSH NORDBANK AG, NEW YORK BRANCH, as agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

AMENDMENT
NO. 1 TO INTERCREDITOR AGREEMENT (AIMCO CREDIT AGREEMENT)

 

 

IN WITNESS WHEREOF, the
parties have caused this Amendment to be duly executed and delivered as of the
day and year first above written.

 

	
   

  	
  AIMCO AGENT:

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION, as agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HOLDINGS AGENT:

  
	
   

  	
   

  
	
   

  	
  HSH NORDBANK AG, NEW YORK BRANCH, as agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sylvia Cheng

  
	
   

  	
   

  	
  Name: Sylvia Cheng

  
	
   

  	
   

  	
  Title: Senior Vice President 

  
	
   

  	
   

  	
  HSH Nordbank AG, New York Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Watson

  
	
   

  	
   

  	
  Name: David Watson

  
	
   

  	
   

  	
  Title: Vice President 

  
	
   

  	
   

  	
  HSH Nordbank AG, New York Branch

  

 

AMENDMENT
NO. 1 TO INTERCREDITOR AGREEMENT (AIMCO CREDIT AGREEMENT)

 

 

Acknowledge and Agreed:

 

 

HSH
NORDBANK AG, NEW YORK BRANCH  

 

	
  By:

  	
  /s/ Sylvia Cheng

  	
   

  	
   

  
	
   

  	
  Name: Sylvia Cheng

  	
   

  	
   

  
	
   

  	
  Title: Senior Vice President 

  	
   

  	
   

  
	
   

  	
  HSH Nordbank AG, New York Branch

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David Watson

  	
   

  	
   

  
	
   

  	
  Name: David Watson

  	
   

  	
   

  
	
   

  	
  Title: Vice President 

  	
   

  	
   

  
	
   

  	
  HSH Nordbank AG, New York Branch

  	
   

  	
   

  

 

AMENDMENT
NO. 1 TO INTERCREDITOR AGREEMENT (AIMCO CREDIT AGREEMENT)Exhibit 10.20

 

 

Execution Copy

 

 

 

FIRST LIEN GUARANTEE AND SECURITY AGREEMENT

 

made by

 

CSSW Holdings, LLC,

 

CSSW, LLC

 

and certain of its Subsidiaries

 

in favor of

 

Wells Fargo Bank, National Association,

 

as Collateral Agent

 

Dated as of July 17, 2009

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINED TERMS

  	
  1

  
	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  GUARANTEE

  	
  4

  
	
  2.1

  	
  Guarantee

  	
  4

  
	
  2.2

  	
  Right of Contribution

  	
  5

  
	
  2.3

  	
  No Subrogation

  	
  5

  
	
  2.4

  	
  Amendments, etc. with
  respect to the Borrower Obligations

  	
  6

  
	
  2.5

  	
  Guarantee Absolute and
  Unconditional

  	
  6

  
	
  2.6

  	
  Reinstatement

  	
  7

  
	
  2.7

  	
  Payments

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  GRANT OF SECURITY INTEREST

  	
  7

  
	
  3.1

  	
  Grant of Security Interest

  	
  7

  
	
  3.2

  	
  Deposit Accounts

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
  8

  
	
  4.1

  	
  Title; No Other Liens

  	
  8

  
	
  4.2

  	
  Perfected First Priority
  Liens

  	
  9

  
	
  4.3

  	
  Jurisdiction of
  Organization; Federal Identification Number; Chief Executive Office

  	
  9

  
	
  4.4

  	
  Investment Property

  	
  9

  
	
  4.5

  	
  Intellectual Property

  	
  10

  
	
  4.6

  	
  Commercial Tort Claims

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  COVENANTS

  	
  11

  
	
  5.1

  	
  Delivery of Instruments,
  Certificated Securities and Chattel Paper

  	
  11

  
	
  5.2

  	
  Maintenance of Perfected
  Security Interest; Further Documentation

  	
  11

  
	
  5.3

  	
  Changes in Name, etc.

  	
  11

  
	
  5.4

  	
  Investment Property

  	
  11

  
	
  5.5

  	
  Intellectual Property

  	
  12

  
	
  5.6

  	
  Commercial Tort Claims

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REMEDIAL PROVISIONS

  	
  13

  
	
  6.1

  	
  Grantors Remain Liable

  	
  13

  
	
  6.2

  	
  Pledged Stock

  	
  13

  
	
  6.3

  	
  Proceeds to be Turned Over
  To Collateral Agent

  	
  14

  
	
  6.4

  	
  Application of Proceeds

  	
  14

  
	
  6.5

  	
  Code and Other Remedies

  	
  14

  
	
  6.6

  	
  Sale of Pledged Stock

  	
  15

  
	
  6.7

  	
  Subordination

  	
  15

  
	
  6.8

  	
  Deficiency

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  THE COLLATERAL AGENT

  	
  15

  
	
  7.1

  	
  Collateral Agent’s
  Appointment as Attorney-in-Fact, etc.

  	
  15

  
	
  7.2

  	
  Duty of Collateral Agent

  	
  17

  
	
  7.3

  	
  Execution of Financing
  Statements

  	
  17

  
	
  7.4

  	
  Authority of Collateral
  Agent

  	
  17

  

 

i

 

	
  7.5

  	
  Collateral and
  Administrative Agent’s Duties

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  MISCELLANEOUS

  	
  18

  
	
  8.1

  	
  Amendments in Writing

  	
  18

  
	
  8.2

  	
  Notices

  	
  18

  
	
  8.3

  	
  No Waiver by Course of
  Conduct; Cumulative Remedies

  	
  18

  
	
  8.4

  	
  Enforcement Expenses; Indemnification

  	
  18

  
	
  8.5

  	
  Successors and Assigns

  	
  19

  
	
  8.6

  	
  Set-Off

  	
  19

  
	
  8.7

  	
  Counterparts

  	
  19

  
	
  8.8

  	
  Severability

  	
  19

  
	
  8.9

  	
  Section Headings

  	
  19

  
	
  8.10

  	
  Integration

  	
  19

  
	
  8.11

  	
  GOVERNING
  LAW

  	
  19

  
	
  8.12

  	
  Submission To Jurisdiction

  	
  19

  
	
  8.13

  	
  Acknowledgements

  	
  20

  
	
  8.14

  	
  Additional Grantors

  	
  20

  
	
  8.15

  	
  Termination; Releases

  	
  20

  
	
  8.16

  	
  Security Interest Absolute

  	
  21

  
	
  8.17

  	
  Reinstatement

  	
  22

  
	
  8.18

  	
  WAIVER OF
  JURY TRIAL

  	
  22

  
	
  8.19

  	
  Intercreditor Agreement

  	
  22

  

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1

  	
  Pledged Stock

  	
   

  
	
  Schedule 2

  	
  Perfection Matters

  	
   

  
	
  Schedule 3

  	
  Jurisdictions of
  Organization, Federal Identification Numbers and Chief Executive Offices

  	
   

  
	
  Schedule 4

  	
  Intellectual Property

  	
   

  
	
  Schedule 5

  	
  Notice Addresses

  	
   

  
	
  Schedule 6

  	
  Commercial Tort Claims

  	
   

  
	
  Schedule 7

  	
  Deposit Accounts and
  Securities Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNEX

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Annex I

  	
  Assumption Agreement

  	
   

  

 

ii

 

FIRST LIEN GUARANTEE AND SECURITY AGREEMENT

 

FIRST
LIEN GUARANTEE AND SECURITY AGREEMENT, dated as of July 17, 2009 (this “Agreement”),
made by each of the signatories hereto (together with any other entity that may
become a party hereto as provided herein, the “Grantors”), in favor of
Wells Fargo Bank, National Association, as collateral agent (in such capacity,
and together with its successors and assigns in such capacity, the “Collateral
Agent”) for the benefit of PIP3PX FirstWind Debt Ltd.  and PIP3GV FirstWind Debt Ltd. (the “Initial
Lenders”) and the banks and other financial institutions or entities (the “Other
Lenders” and together with the Initial Lenders, the “Lenders”) from
time to time parties to the Credit Agreement referred to below.

 

W I T N E S S E T H:

 

WHEREAS,
pursuant to the Credit Agreement, dated as of July 17, 2009 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among CSSW, LLC, as borrower (the “Borrower”), CSSW Holdings, LLC
(“CSSW Parent”), the Initial Lenders, Wells Fargo Bank, National
Association, as administrative agent (in such capacity, and together with its
successors and assigns in such capacity, the “Administrative Agent”) and
the Collateral Agent, the Initial Lenders have severally agreed to make their
respective extensions of credit to the Borrower upon the terms and subject to
the conditions set forth therein;

 

WHEREAS,
the Borrower is a member of an affiliated group of companies that includes each
other Grantor;

 

WHEREAS,
the proceeds of the extensions of credit under the Credit Agreement will be
used in part to enable the Borrower to make valuable transfers to one or more
of the other Grantors in connection with the operation of their respective
businesses;

 

WHEREAS,
the Borrower and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the making of
the extensions of credit under the Credit Agreement; and

 

WHEREAS,
it is a condition precedent to the obligation of the Initial Lenders to make
their respective extensions of credit to the Borrower under the Credit
Agreement that the Grantors shall have executed and delivered this Agreement to
the Collateral Agent for the ratable benefit of the Secured Parties;

 

NOW,
THEREFORE, in consideration of the premises and to induce the Agents and the
Initial Lenders to enter into the Credit Agreement and to induce the Initial
Lenders to make their respective extensions of credit to the Borrower
thereunder, each Grantor hereby agrees with the Collateral Agent, for the
ratable benefit of the Secured Parties, as follows:

 

SECTION 1.    DEFINED TERMS

 

1.1           Definitions. (a)   Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
(including in the preamble and recitals hereto) shall have the meanings given
to them in the Credit Agreement, and the following terms are used herein as
defined in the New York UCC: Accounts, Certificated Security, Chattel Paper,
Commercial Tort Claims, Contracts, Deposit Accounts,

 

 

Documents, Equipment,
General Intangibles, Instruments, Inventory, Letter-of-Credit Rights, Proceeds,
Securities Accounts and Supporting Obligations.

 

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

 

“Administrative
Agent” shall have the meaning set forth in the recitals hereto. 

 

“Agreement”
shall have the meaning set forth in the preamble hereto.

 

“Borrower”
shall have the meaning set forth in the recitals hereto.

 

“Borrower
Obligations” shall mean the collective reference to the unpaid principal of
and interest on the Term Loans and all other obligations and liabilities of the
Borrower (including, without limitation, interest accruing at the then
applicable rate provided in the Credit Agreement after the maturity of the Term
Loans and interest accruing at the then applicable rate provided in the Credit
Agreement after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding, relating to the Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) to the Collateral Agent, the Lenders or any other Secured
Party, whether direct or indirect, absolute or contingent, due or to become
due, or now existing or hereafter incurred, which may arise under, out of, or
in connection with, the Credit Agreement, this Agreement, the other Loan
Documents or any other document made, delivered or given in connection with any
of the foregoing, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to the
Collateral Agent or to the Secured Parties that are required to be paid by the
Borrower pursuant to the terms of any of the foregoing agreements).

 

“Collateral”
shall have the meaning ascribed to such term in Section 3.1.

 

“Collateral
Account” shall mean any collateral account established by the Collateral
Agent as provided in Section 6.3 or 6.4.

 

“Collateral
Agent” shall have the meaning set forth in the preamble hereto.

 

“Contracts”
shall mean all contracts and agreements to which any Grantor is or may
hereafter become a party (in each case, whether written or oral, or third party
or intercompany), including the Material Project Documents, as the same may be
amended, supplemented or otherwise modified from time to time, including,
without limitation, (i) all rights of any Grantor to receive moneys due
and to become due to it thereunder or in connection therewith, (ii) all
rights of any Grantor to damages arising thereunder and proceeds of any
insurance, indemnity, warranty or guaranty with respect thereto and (iii) all
rights of any Grantor to perform and to exercise all remedies thereunder.

 

“Copyrights”
shall mean (i) all copyrights arising under the laws of the United States,
any other country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished (including, without
limitation, those listed in Schedule 4), all registrations and
recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the
United States Copyright Office, and (ii) the right to obtain all renewals
thereof.

 

“Copyright
Licenses” shall mean any written agreement naming any Grantor as licensor
or licensee (including, without limitation, those listed in Schedule 4),
granting any right under any Copyright, including, without limitation, the
grant of rights to manufacture, distribute, exploit and sell materials derived
from any Copyright.

 

“Credit
Agreement” shall have the meaning set forth in the recitals hereto.

 

2

 

“CSSW
Parent” shall have the meaning set forth in the recitals hereto. 

 

“Deposit
Account” shall have the meaning ascribed to such term in the Uniform
Commercial Code of any applicable jurisdiction and, in any event, including,
without limitation, any demand, time, savings, passbook or like account
maintained with a depositary institution.

 

“Deposit
Account Control Agreement” shall have the meaning ascribed to such term in Section 3.2.

 

“Grantors”
shall have the meaning set forth in the preamble hereto.

 

“Guarantor
Obligations” shall mean with respect to any Guarantor, all obligations and
liabilities of such Guarantor which may arise under or in connection with this
Agreement (including, without limitation, Section 2) or any other Loan
Document to which such Guarantor is a party, in each case whether on account of
guarantee obligations, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all Attorney Costs and
expenses of the Collateral Agent or the Secured Parties that are required to be
paid by such Guarantor pursuant to the terms of this Agreement or any other
Loan Document).

 

“Guarantors”
shall mean the collective reference to each Grantor other than the Borrower.

 

“Initial
Lenders” shall have the meaning set forth in the preamble hereto.

 

“Intellectual
Property” shall mean the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including, without limitation, the
Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the
Trademarks and the Trademark Licenses, and all rights to sue at law or in
equity for any infringement or other impairment thereof, including the right to
receive all proceeds and damages therefrom.

 

“Intercompany
Note” shall mean any promissory note evidencing loans made by any Grantor
to CSSW Parent or any of its Subsidiaries.

 

“Investment
Property” shall mean the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(a)(49) of the New York
UCC and (ii) whether or not constituting “investment property” as so
defined, all Pledged Notes and all Pledged Stock.

 

“Issuers”
shall mean the collective reference to each issuer of any Investment Property. 

 

“Lenders”
shall have the meaning set forth in the preamble hereto.

 

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

 

“Obligations”
shall mean (i) in the case of the Borrower, the Borrower Obligations, and (ii) in
the case of each Guarantor, its Guarantor Obligations.

 

“Other
Lenders” shall have the meaning set forth in the preamble hereto.

 

“Patents”
shall mean (i) all letters patent of the United States, any other country
or any political subdivision thereof, all reissues and extensions thereof and
all goodwill associated therewith, including, without limitation, any of the
foregoing referred to in Schedule 4, (ii) all applications for
letters patent of the United States or any other country and all divisions,
continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule 4, and (iii) all
rights to obtain any reissues or extensions of the foregoing.

 

3

 

“Patent
License” shall mean all agreements, whether written or oral, providing for
the grant by or to any Grantor of any right to manufacture, use or sell any
invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in Schedule 4.

 

“Pledged
Notes” shall mean all promissory notes listed on Schedule 1, all
Intercompany Notes at any time issued to any Grantor and all other promissory
notes issued to or held by any Grantor (other than promissory notes issued in
connection with extensions of trade credit by any Grantor in the ordinary
course of business).

 

“Pledged
Stock” shall mean the Equity Interests listed on Schedule 1,
together with any other shares, stock certificates, options, interests or
rights of any nature whatsoever in respect of the Equity Interests of any
Person that may be issued or granted to, or held by, any Grantor while this
Agreement is in effect.

 

“Proceeds”
shall mean all “proceeds” as such term is defined in Section 9-102(a)(64)  of the New York UCC and, in any event, shall
include, without limitation, all dividends or other income from the Investment
Property, collections thereon or distributions or payments with respect
thereto.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended. 

 

“Subsidiary
Guarantors” shall mean after the Subsequent Closing Date, to the extent
Grantors hereunder, the collective reference to the Steel Winds Holding Company
and the Steel Winds Project Company.

 

“Trademarks”
shall mean (i) all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade styles, service marks,
logos and other source or business identifiers, and all goodwill associated
therewith, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, whether in
the United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country or any
political subdivision thereof, or otherwise, and all common-law rights related
thereto, including, without limitation, any of the foregoing referred to in Schedule
4, and (ii) the right to obtain all renewals thereof.

 

“Trademark
License” shall mean any agreement, whether written or oral, providing for
the grant by or to any Grantor of any right to use any Trademark, including,
without limitation, any of the foregoing referred to in Schedule 4.

 

1.2           Other
Definitional Provisions. (a)  The “Interpretation, Etc. “
provisions set forth in Section 1.3 of the Credit Agreement shall apply to
this Agreement, including terms defined in the preamble and the recitals hereto.

 

(b)           Where the
context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor’s Collateral or the
relevant part thereof.

 

SECTION 2.     GUARANTEE

 

2.1           Guarantee. (a)  Each
of the Guarantors hereby, jointly and severally, unconditionally and
irrevocably, guarantees to the Collateral Agent, for the ratable benefit of the
Secured Parties and their respective successors, indorsees, transferees and
assigns, the prompt and complete payment and performance by the Borrower when
due (whether at the stated maturity, by acceleration or otherwise) of the
Borrower Obligations.

 

4

 

(b)           Anything herein
or in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall
in no event exceed the amount which can be guaranteed by such Guarantor under
applicable federal and state laws relating to fraudulent conveyances, transfers
or the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

 

(c)           Each Guarantor
agrees that the Borrower Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without
impairing the guarantee of such Guarantor contained in this Section 2 or
affecting the rights and remedies of the Collateral Agent or any Secured Party
hereunder.

 

(d)           Subject to Section 8.15  hereof, the guarantee contained in this Section 2
shall remain in full force and effect until all the Borrower Obligations and
the obligations of each Guarantor under the guarantee contained in this Section 2
shall have been satisfied by full and final payment in cash and the Initial
Term Loan Commitment and Subsequent Term Loan Commitment shall be terminated,
notwithstanding that from time to time during the term of the Credit Agreement
the Borrower may be free from any Borrower Obligations.

 

(e)           No payment made
by the Borrower, any of the Guarantors, any other guarantor or any other Person
or received or collected by the Collateral Agent or any Secured Party from the
Borrower, any of the Guarantors, any other guarantor or any other Person by
virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of
the Borrower Obligations shall be deemed to modify, reduce, release or
otherwise affect the liability of any Guarantor hereunder which shall,
notwithstanding any such payment (other than any payment made by such Guarantor
in respect of the Borrower Obligations or any payment received or collected
from such Guarantor in respect of the Borrower Obligations), remain liable for
the Borrower Obligations up to the maximum liability of such Guarantor
hereunder until the Borrower Obligations are paid in full and the Initial Term
Loan Commitment and Subsequent Term Loan Commitment are terminated.

 

2.2           Right of
Contribution.  Each Subsidiary Guarantor hereby agrees that
to the extent that a Subsidiary Guarantor shall have paid more than its
proportionate share of any payment made hereunder, such Subsidiary Guarantor
shall be entitled to seek and receive contribution from and against any other
Subsidiary Guarantor hereunder which has not paid its proportionate share of
such payment. Each Subsidiary Guarantor’s right of contribution shall be
subject to the terms and conditions of Section 2.3. The provisions of this
Section 2.2 shall in no respect limit the obligations and liabilities of
any Subsidiary Guarantor to the Collateral Agent and the Secured Parties, and
each Subsidiary Guarantor shall remain liable to the Collateral Agent and the
Secured Parties for the full amount guaranteed by such Subsidiary Guarantor
hereunder.

 

2.3           No Subrogation.  Notwithstanding
any payment made by any Guarantor hereunder or any set-off or application of
funds of any Guarantor by the Collateral Agent or any Secured Party, no
Guarantor shall be entitled to be subrogated to any of the rights of the
Collateral Agent or any Secured Party against the Borrower or any other
Guarantor or any collateral security or guarantee or right of set-off held by
the Collateral Agent or any Secured Party for the payment of the Borrower
Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from the Borrower or any other Guarantor in
respect of payments made by such Guarantor hereunder, until all amounts owing
to the Collateral Agent and the Secured Parties by the Borrower on account of
the Borrower Obligations are paid in full and the Initial Term Loan Commitment
and Subsequent Term Loan Commitment are terminated. If any amount shall be paid
to any Guarantor on account of such subrogation rights at any time when all of the
Borrower Obligations shall not have been paid in full, such amount shall be
held by such Guarantor in trust for the Collateral Agent and the Secured
Parties, segregated from other funds of

 

5

 

such Guarantor, and shall,
forthwith upon receipt by such Guarantor, be turned over to the Collateral
Agent in the exact form received by such Guarantor (duly indorsed by such
Guarantor to the Collateral Agent, if required), to be applied against the
Borrower Obligations, whether matured or unmatured, in such order as the
Collateral Agent, at the direction of the Majority Lenders, may determine.

 

2.4           Amendments,
etc. with respect to the Borrower Obligations.  Each Guarantor shall
remain obligated hereunder notwithstanding that, without any reservation of
rights against any Guarantor and without notice to or further assent by any
Guarantor, any demand for payment of any of the Borrower Obligations made by
the Collateral Agent or any Secured Party may be rescinded by the Collateral
Agent or such Secured Party and any of the Borrower Obligations continued, and
the Borrower Obligations, or the liability of any other Person upon or for any
part thereof, or any collateral security or guarantee therefor or right of
set-off with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Collateral Agent or any Secured Party, and the
Credit Agreement and the other Loan Documents and any other documents executed
and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Collateral Agent (or the Majority
Lenders or all Lenders, as the case may be) may deem advisable from time to
time, and any collateral security, guarantee or right of set-off at any time
held by the Collateral Agent or any Secured Party for the payment of the
Borrower Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Collateral Agent nor any Secured
Party shall have any obligation to protect, secure, perfect or insure any Lien
at any time held by it as security for the Borrower Obligations or for the
guarantee contained in this Section 2 or any property subject thereto.

 

2.5           Guarantee
Absolute and Unconditional. Each Guarantor waives any
and all notice of the creation, renewal, extension or accrual of any of the
Borrower Obligations and notice of or proof of reliance by the Collateral Agent
or any Secured Party upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Borrower
Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the guarantee contained in this Section 2; and all dealings
between the Borrower and any of the Guarantors, on the one hand, and the
Collateral Agent and the Secured Parties, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon the
guarantee contained in this Section 2. Each Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to
or upon the Borrower or any of the Guarantors with respect to the Borrower
Obligations.  Each Guarantor understands
and agrees that the guarantee contained in this Section 2 shall be
construed as a continuing, absolute and unconditional guarantee of payment
without regard to (a) the validity or enforceability of the Credit
Agreement or any other Loan Document, any of the Borrower Obligations or any
other collateral security therefor or guarantee or right of set-off with
respect thereto at any time or from time to time held by the Collateral Agent
or any Secured Party, (b) any defense, set-off or counterclaim (other than
a defense of payment or performance) which may at any time be available to or
be asserted by the Borrower or any other Person against the Collateral Agent or
any Secured Party, or (c) any other circumstance whatsoever (with or
without notice to or knowledge of the Borrower or such Guarantor) which
constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrower for the Borrower Obligations, or of such Guarantor
under the guarantee of such Guarantor contained in this Section 2, in
bankruptcy or in any other instance. When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against any Guarantor, the
Collateral Agent or any Secured Party may, but shall be under no obligation to,
make a similar demand on or otherwise pursue such rights and remedies as it may
have against the Borrower, any other Guarantor or any other Person or against
any collateral security or guarantee for the Borrower Obligations or any right
of set-off with respect thereto, and any failure by the Collateral Agent or any
Secured Party to make any such demand, to pursue such other rights or remedies
or to collect any payments from the Borrower, any other Guarantor or any other
Person or to realize upon any such collateral security or guarantee or to

 

6

 

exercise any such right of
set-off, or any release of the Borrower, any other Guarantor or any other
Person or any such collateral security, guarantee or right of set-off, shall
not relieve any Guarantor of any obligation or liability hereunder, and shall
not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Collateral Agent or any Secured Party
against any Guarantor. For the purposes hereof “demand” shall include the
commencement and continuance of any legal proceedings.

 

2.6           Reinstatement. The guarantee
contained in this Section 2 shall continue to be effective, or be reinstated,
as the case may be, if at any time payment, or any part thereof, of any of the
Borrower Obligations is rescinded or must otherwise be restored or returned by
the Collateral Agent or any Secured Party upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Borrower or any Guarantor, or
upon or as a result of the appointment of a receiver, intervenor or conservator
of, or trustee or similar officer for, the Borrower or any Guarantor or any
substantial part of its property, or otherwise, all as though such payments had
not been made.

 

2.7           Payments. Payments by
any Guarantor made hereunder will be paid to the Collateral Agent without
set-off or counterclaim in Dollars at the Payment Office of the Collateral
Agent specified in the Credit Agreement.

 

SECTION 3.    GRANT OF SECURITY INTEREST

 

3.1           Grant of
Security Interest. Each Grantor hereby assigns and transfers to the
Collateral Agent, and hereby grants to the Collateral Agent, for the ratable
benefit of the Secured Parties, a security interest in, all of the following
property now owned or at any time hereafter acquired by such Grantor or in
which such Grantor now has or at any time in the future may acquire any right,
title or interest (collectively, the “Collateral”), as collateral
security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of such Grantor’s
Obligations:

 

(a)          all Accounts;

 

(b)         all Chattel Paper;

 

(c)          all Contracts;

 

(d)         all Deposit Accounts;

 

(e)          all Documents;

 

(f)            all Equipment;

 

(g)         all Fixtures;

 

(h)         all General Intangibles;

 

(i)             all Instruments;

 

(j)             all Intellectual Property;

 

(k)          all Inventory;

 

7

 

(l)             all Investment Property;

 

(m)       all Letter-of-Credit Rights;

 

(n)         all Commercial Tort Claims from time to time
described on Schedule 6;

 

(o)   all other property not
otherwise described above (except for any property specifically excluded from
any clause in this section above, and any property specifically excluded from
any defined term used in any clause of this section above);

 

(p)         all books and records pertaining to the Collateral;
and

 

(q)   to the extent not otherwise
included, all Proceeds, Supporting Obligations and products of any and all of
the foregoing and all collateral security and guarantees given by any Person
with respect to any of the foregoing;

 

provided,
however, that notwithstanding any of the other provisions set forth in this Section 3.1,
this Agreement shall not constitute a grant of a security interest in any
property to the extent that such grant of a security interest is prohibited by
any Requirements of Law of a Governmental Authority, requires a consent not
obtained of any Governmental Authority pursuant to such Requirement of Law or
is prohibited by, or constitutes a breach or default under or results in the
termination of or requires any consent not obtained under, any contract,
license, agreement, instrument or other document evidencing or giving rise to
such property or, in the case of any Investment Property, Pledged Stock or
Pledged Note, any applicable shareholder or similar agreement, except to the
extent that such Requirement of Law or the term in such contract, license,
agreement, instrument or other document or shareholder or similar agreement
providing for such prohibition, breach, default or termination or requiring
such consent is ineffective under applicable law; provided that any such
property shall be excluded from such security interest only to the extent and
for so long as the consequences specified above shall exist and shall cease to
be excluded and shall be subject to the Lien of the Security Documents
immediately and automatically at such time as such consequence shall no longer
exist.

 

3.2           Deposit Accounts. Each Grantor
agrees that upon the opening by it of any Deposit Account, the Collateral Agent
shall have “control” (as defined in Section 9-104, 9-105, 9-106 or 9-107 of
the UCC) with respect to all cash and other Collateral on deposit therein. Each
Grantor hereby agrees that in the event it opens a Deposit Account, it shall
execute and deliver a deposit account control agreement (a “Deposit Account
Control Agreement”) with respect to such Deposit Account to the Collateral
Agent within 30 days of opening such Deposit Account, in form and substance
reasonably acceptable to the Collateral Agent. 
No Grantor shall have any account other than a Deposit Account and no
Grantor shall deposit any cash or other Collateral into any account other than
a Deposit Account subject to a Deposit Account Control Agreement with the
Collateral Agent.

 

SECTION 4.     REPRESENTATIONS AND WARRANTIES

 

To
induce the Agents and the Initial Lenders to enter into the Credit Agreement
and to induce the Initial Lenders to make their respective extensions of credit
to the Borrower thereunder, each Grantor hereby represents and warrants to the
Agents and each Lender that:

 

4.1           Title; No Other
Liens.  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 on the Collateral under
the Credit Agreement, such Grantor owns each item of the Collateral free and
clear of any and all Liens, encumbrances or claims of others.  No financing statement or other public notice
with respect to all

 

8

 

or any part of the
Collateral is on file or of record in any public office, except such as have
been filed in favor of the Collateral Agent, for the ratable benefit of the
Secured Parties, pursuant to this Agreement or as are permitted under the
Credit Agreement. No Person shall have “control” (as defined in Section 9-104,
9-105, 9-106 or 9-107 of the UCC) of any Deposit Account, Chattel Paper,
Investment Property or Letter-of-Credit Right constituting part of the
Collateral other than the Collateral Agent. For the avoidance of doubt, it is
understood and agreed that any Grantor may, as part of its business, grant
licenses to third parties to use Intellectual Property owned or developed by a
Grantor. For purposes of restriction on Liens and encumbrances under this
Agreement and the other Loan Documents, such licensing activity shall not
constitute a “Lien” on such Intellectual Property. Each of the Collateral Agent
and each Secured Party understands that any such licenses may be exclusive to
the applicable licensees, and such exclusivity provisions may limit the ability
of the Collateral Agent to utilize, sell, lease or transfer the related
Intellectual Property or otherwise realize value from such Intellectual
Property pursuant hereto.

 

4.2           Perfected First
Priority Liens. The security interests granted pursuant to this
Agreement (a) upon execution and delivery of any relevant Deposit Account
Control Agreements and upon completion of the filings and other actions
specified on Schedule 2 (which, in the case of all filings and other
documents referred to on said Schedule, have been delivered to the Collateral
Agent in completed and duly executed form) will constitute valid perfected
security interests in all of the Collateral in favor of the Collateral Agent,
for the ratable benefit of the Secured Parties, as collateral security for such
Grantor’s Obligations, enforceable in accordance with the terms hereof against
all creditors of such Grantor and any Persons purporting to purchase any
Collateral from such Grantor and (b) are prior to all other Liens on the
Collateral in existence on the date hereof except for, in the case of Liens on
Steel Winds Companies, Permitted Liens (other than as described in clause (n) of
the definition of “Permitted Liens”).

 

4.3           Jurisdiction of
Organization; Federal Identification Number; Chief Executive Office. On the date
hereof, such Grantor’s jurisdiction of organization, federal identification
number from the jurisdiction of organization (if any), and the location of such
Grantor’s chief executive office or sole place of business or principal
residence, as the case may be, are specified on Schedule 3.

 

4.4           Investment
Property. (a) The shares of Pledged Stock pledged by
such Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Equity Interests of each Issuer owned by such Grantor.

 

(b)           All the shares
of the Pledged Stock have been duly and validly issued and are fully paid and
nonassessable.  None of the Pledged Stock
is subject to any voting trust, shareholder agreement or voting agreement or
other agreement, right instrument or understanding with respect to any
purchase, sale, issuance, transfer, repurchase, redemption or voting agreement,
other than limited liability company agreements, partnership agreements or
other governing documents of the relevant Issuer.  None of the Pledged Stock is subject to an
existing option, warrant, call, right, commitment or other agreement, and there
is no membership interest or other Equity Interests outstanding required to be
pledged hereunder in any Subsidiary, that upon conversion or exchange would
require, the issuance by the applicable Grantor of any additional membership
interests or other Equity Interests of such Subsidiary or other securities
convertible into, exchangeable for or evidencing the right to subscribe for or
purchase, a membership interest or other Equity Interests of such Subsidiary.

 

(c)           Unless otherwise
consented to by the Collateral Agent, Equity Interests required to be pledged
hereunder in any Subsidiary that is organized as a limited liability company or
limited partnership and pledged hereunder shall either (i) be represented
by a certificate, and in the Organizational Documents of such Subsidiary, the
applicable Grantor shall cause the Issuer of such interests to elect to treat
such interests as a “security” within the meaning of Article 8 of the
Uniform

 

9

 

Commercial Code of its
jurisdiction of organization or formation, as applicable, by including in its
Organizational Documents language substantially similar to the following and,
accordingly, such interests shall be governed by Article 8 of the Uniform
Commercial Code:

 

“The
[partnership/limited liability company] hereby irrevocably elects that all
[partnership/membership] interests in the [partnership/limited liability
company] shall be securities governed by Article 8 of the Uniform
Commercial Code of [jurisdiction of organization or formation, as
applicable].  Each certificate evidencing
[partnership/membership] interests in the [partnership/limited liability
company] shall bear the following legend: “This certificate evidences an
interest in [name of [partnership/limited liability company]] and shall be a
security for purposes of Article 8 of the Uniform Commercial Code. “ No
change to this provision shall be effective until all outstanding certificates
have been surrendered for cancellation and any new certificates thereafter
issued shall not bear the foregoing legend.”

 

or (ii) not have
elected to be treated as a “security” within the meaning of Article 8 of
the Uniform Commercial Code and shall not be represented by a certificate.

 

(d)                                 Each of the
Pledged Notes constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms, subject
to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally and general equitable principles (whether
considered in a proceeding in equity or at law).

 

(e)                                  Such Grantor is
the record and beneficial owner of, and has good and marketable title to, the
Investment Property pledged by it hereunder, free and clear of any and all
Liens, encumbrances or options in favor of, or claims of, any other Person,
except the security interest created by this Agreement and as permitted by the
Credit Agreement.

 

4.5                                 Intellectual
Property. (a) Schedule 4 lists all material
Intellectual Property owned by such Grantor in its own name on the date hereof.

 

(b)                                 On the date
hereof, all material Intellectual Property is valid, subsisting, unexpired and
enforceable, has not been abandoned and does not knowingly infringe the
intellectual property rights of any other Person.

 

4.6                                 Commercial Tort
Claims. (a) On the date hereof, no Grantor has rights in any Commercial
Tort Claim with potential value in excess of $500,000.

 

(b)              Upon the filing of a
financing statement covering any Commercial Tort Claim referred to in Section 5.6  hereof against such Grantor in the
jurisdiction specified in Schedule 3 hereto, the security interest
granted in such Commercial Tort Claim will constitute a valid perfected
security interest in favor of the Collateral Agent, for the ratable benefit of
the Secured Parties, as collateral security for such Grantor’s Obligations,
enforceable in accordance with the terms hereof against all creditors of such
Grantor and any Persons purporting to purchase such Collateral from Grantor,
which security interest shall be prior to all other Liens on such Collateral
except for unrecorded liens permitted by the Credit Agreement which have
priority over the Liens on such Collateral by operation of law.

 

4.7                                 Deposit
Accounts and Securities Accounts. Schedule 7 sets forth a complete and correct
list of all Deposit Accounts and Securities Accounts for each Grantor on the
date hereof.

 

10

 

SECTION 5.    COVENANTS

 

Each
Grantor covenants and agrees with the Collateral Agent and the Secured Parties
that, from and after the date of this Agreement until the Obligations shall
have been paid in full and the Initial Term Loan Commitment and Subsequent Term
Loan Commitment shall have terminated:

 

5.1                                 Delivery of
Instruments, Certificated Securities and Chattel Paper. If any amount
payable under or in connection with any of the Collateral shall be or become
evidenced by any Instrument, Certificated Security or Chattel Paper, upon its
receipt thereof, the Grantor shall promptly deliver to the Collateral Agent
such Instrument, Certificated Security or Chattel Paper, as applicable, duly
indorsed in a manner reasonably satisfactory to the Collateral Agent, to be
held as Collateral pursuant to this Agreement.

 

5.2                                 Maintenance of
Perfected Security Interest; Further Documentation. (a) Such
Grantor shall maintain the security interest created by this Agreement as a
perfected security interest having at least the priority described in Section 4.2  and shall defend such security interest
against the claims and demands of all Persons whomsoever, subject to the rights
of such Grantor under the Loan Documents to dispose of or pledge the
Collateral.

 

(b)                                 Such Grantor
will furnish to the Collateral Agent and the Secured Parties from time to time
statements and schedules further identifying and describing the assets and
property of such Grantor as the Collateral Agent may reasonably request, all in
reasonable detail.

 

(c)                                  At any time and
from time to time, upon the written request of the Collateral Agent, and at the
sole expense of such Grantor, such Grantor will promptly and duly execute and
deliver, and have recorded, such further instruments and documents and take
such further actions as the Collateral Agent or any Lender may reasonably
request for the purpose of obtaining or preserving the full benefits of this
Agreement and of the rights and powers herein granted, including, without
limitation, (i) the filing of any financing or continuation statements
under the Uniform Commercial Code (or other similar laws) in effect in any
jurisdiction with respect to the security interests created hereby and (ii) subject
to Section 3.2,  in the case of
Deposit Accounts and Letter-of-Credit Rights and any other relevant Collateral,
taking any commercially reasonable actions necessary to enable the Collateral
Agent to obtain “control” (within the meaning of the applicable Uniform
Commercial Code) with respect thereto.

 

5.3                                 Changes in
Name, etc. Such Grantor will not, (a) except upon 30
days’ prior written notice to the Collateral Agent and delivery to the
Collateral Agent of all additional financing statements and other documents
reasonably requested by the Collateral Agent to maintain the validity,
perfection and priority of the security interests provided for herein, change
its jurisdiction of organization or the location of its chief executive office
or sole place of business or principal residence from that referred to in Section 4.3  or (b) except upon 10 days’ prior
written notice to the Collateral Agent and delivery to the Collateral Agent of
all additional financing statements and other documents reasonably requested by
the Collateral Agent to maintain the validity, perfection and priority of the
security interests provided for herein, change its name.

 

5.4                                 Investment
Property. (a) If such Grantor shall become entitled to
receive or shall receive any certificate (including, without limitation, any
certificate representing a dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Equity
Interests of any Issuer, whether in addition to, in substitution of, as a
conversion of, or in exchange for, any shares of the Pledged Stock, or
otherwise in respect thereof, such Grantor shall accept the same as the agent
of the Collateral Agent and the Secured Parties, hold the same in trust for the
Collateral Agent and the Secured Parties and deliver the same forthwith to the
Collateral Agent in the exact form received, duly indorsed by such Grantor to
the Collateral Agent, if required, together with an undated stock power
covering such

 

11

 

certificate duly executed in
blank by such Grantor and with, if the Collateral Agent so requests, signature
guaranteed, to be held by the Collateral Agent, subject to the terms hereof, as
additional collateral security for the Obligations. Any sums paid upon or in
respect of Pledged Stock or Pledged Notes and except as otherwise expressly
provided in the Credit Agreement, any other Investment Property, upon the
liquidation or dissolution of any Issuer shall be paid over to the Collateral
Agent to be held by it hereunder as additional collateral security for the
Obligations, and in case any distribution of capital constituting Collateral
shall be made on or in respect of such Investment Property or any property
shall be distributed upon or with respect to such Investment Property pursuant
to the recapitalization or reclassification of the capital of any Issuer or
pursuant to the reorganization thereof, the property constituting Collateral so
distributed shall, unless otherwise subject to a perfected security interest in
favor of the Collateral Agent, be delivered to the Collateral Agent to be held
by it hereunder as additional collateral security for the Obligations. If any
sums of money or property constituting Collateral so paid or distributed in
respect of the Investment Property shall be received by such Grantor, such
Grantor shall, until such money or property is paid or delivered to the
Collateral Agent, hold such money or property in trust for the Collateral Agent
and the Secured Parties, segregated from other funds of such Grantor, as
additional collateral security for the Obligations.

 

(b)                                 Without the
prior written consent of the Collateral Agent, such Grantor will not (i) vote
to enable, or take any other action to permit, any Issuer to issue any Equity
Interests of any nature or to issue any other securities convertible into or
granting the right to purchase or exchange for any Equity Interests of any
nature of any Issuer, unless such securities are delivered to the Collateral
Agent, concurrently with the issuance thereof, to be held by the Collateral
Agent as Collateral, (ii) sell, assign, transfer, exchange, or otherwise
dispose of, or grant any option with respect to, the Investment Property or
Proceeds thereof (except pursuant to a transaction expressly permitted by the
Credit Agreement), (iii) create, incur or permit to exist any Lien,
encumbrance or option in favor of, or any claim of any Person with respect to,
any of the Investment Property or Proceeds thereof, or any interest therein,
except for the security interests created by this Agreement or Permitted Liens
under the Credit Agreement or (iv) enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Collateral Agent to
sell, assign or transfer any of the Investment Property or Proceeds thereof.

 

(c)                                  In the case of
each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Investment Property issued
by it and will comply with such terms insofar as such terms are applicable to
it and (ii) the terms of Sections 6.2(c)  and 6.6  shall apply to it, mutatis mutandis,
with respect to all actions that may be required of it pursuant to Section 6.2(c) 
or 6.6  with respect to the Investment
Property issued by it.

 

5.5                                 Intellectual
Property. Such Grantor shall take commercially reasonable
actions to maintain the value and validity of all Intellectual Property owned
by it that is material to its business, except to the extent the failure to
take any such action could not reasonably be expected to have a Material
Adverse Effect.

 

5.6                                 Commercial Tort
Claims. If such Grantor shall obtain an interest in any Commercial Tort Claim
with a potential value in excess of $500,000, 
such Grantor shall within 30 days of obtaining such interest sign and
deliver documentation reasonably acceptable to the Collateral Agent granting a
security interest under the terms and provisions of this Agreement in and to
such Commercial Tort Claim.

 

12

 

SECTION 6.    REMEDIAL PROVISIONS

 

6.1                                 Grantors Remain
Liable. Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each of the Contracts to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all
in accordance with the terms of any agreement giving rise thereto and neither
the Collateral Agent nor any Secured Party shall have any obligation or
liability under any Contract by reason of or arising out of this Agreement or
the receipt by the Collateral Agent or any Secured Party of any payment
relating thereto.  Neither the Collateral
Agent or any Secured Party shall be obligated in any manner to perform any of
the obligations of any Grantor under or pursuant to any Contract, to make any
payment, to make any inquiry as to the nature or the sufficiency of any payment
received by it or as to the sufficiency of any performance by any party
thereunder, to present or file any claim, to take any action to enforce any
performance or to collect the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

 

6.2                                 Pledged Stock. (a) Unless
an Event of Default shall have occurred and be continuing and the Collateral
Agent shall have given notice to the relevant Grantor of the Collateral Agent’s
intent to exercise its corresponding rights pursuant to Section 6.2(b),  each Grantor shall be permitted to receive
all cash dividends paid in respect of the Pledged Stock and all payments made
in respect of the Pledged Notes, in each case, paid in the normal course of
business of the relevant Issuer and consistent with past practice, to the
extent permitted in the Credit Agreement, and to exercise all voting and
corporate or other organizational rights with respect to the Investment
Property; provided, however, that no vote shall be cast or
corporate or other organizational right exercised or other action taken which,
in the Majority Lenders’ reasonable judgment, would materially impair the
Pledged Stock or which would result in any violation of any provision of the
Credit Agreement, this Agreement or any other Loan Document.

 

(b)                                 If an Event of
Default shall occur and be continuing and the Collateral Agent shall give
notice of its intent to exercise such rights to the relevant Grantor or
Grantors, (i) the Collateral Agent shall have the right to receive any and
all cash dividends, payments or other Proceeds paid in respect of the
Investment Property and make application thereof to the Obligations in such
order as the Collateral Agent may determine, and (ii) any or all of the
Investment Property shall be registered in the name of the Collateral Agent or
its nominee, and the Collateral Agent or its nominee may thereafter exercise (x) all
voting, corporate and other rights pertaining to such Investment Property at
any meeting of shareholders of the relevant Issuer or Issuers or otherwise and (y) any
and all rights of conversion, exchange and subscription and any other rights,
privileges or options pertaining to such Investment Property as if it were the
absolute owner thereof (including, without limitation, the right to exchange at
its discretion any and all of the Investment Property upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate
or other organizational structure of any Issuer, or upon the exercise by any
Grantor or the Collateral Agent of any right, privilege or option pertaining to
such Investment Property, and in connection therewith, the right to deposit and
deliver any and all of the Investment Property with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and
conditions as the Collateral Agent may determine), all without liability except
to account for property actually received by it, but the Collateral Agent shall
have no duty to any Grantor to exercise any such right, privilege or option and
shall not be responsible for any failure to do so or delay in so doing.

 

(c)                                  Each Grantor
hereby authorizes and instructs each Issuer of any Investment Property pledged
by such Grantor hereunder to (i) comply with any instruction received by
it from the Collateral Agent in writing that (x) states that an Event of
Default has occurred and is continuing and (y) is otherwise in accordance
with the terms of this Agreement, without any other or further instructions
from such Grantor, and each Grantor agrees that each Issuer shall be fully
protected in so complying and (ii) unless otherwise expressly permitted
hereby, pay any dividends or other payments with respect to the Investment
Property directly to the Collateral Agent.

 

13

 

6.3                                 Proceeds to be
Turned Over To Collateral Agent. If an Event of Default
shall occur and be continuing, all Proceeds received by any Grantor consisting
of cash, checks and other near cash items shall be held by such Grantor in
trust for the Collateral Agent and the Secured Parties, segregated from other
funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be
turned over to the Collateral Agent in the exact form received by such Grantor
(duly indorsed by such Grantor to the Collateral Agent, if required). All
Proceeds received by the Collateral Agent hereunder shall be held by the
Collateral Agent in a Collateral Account maintained under its sole dominion and
control. All Proceeds while held by the Collateral Agent in a Collateral
Account (or by such Grantor in trust for the Collateral Agent and the Secured
Parties) shall continue to be held as collateral security for all the
Obligations and shall not constitute payment thereof until applied as provided
in Section 6.4.

 

6.4                                 Application of
Proceeds. If an Event of Default shall have occurred and be
continuing, the Collateral Agent shall apply all or any part of Proceeds
constituting Collateral, whether or not held in any Collateral Account, and any
proceeds of the guarantee set forth in Section 2, in payment of the Obligations
then due and owing in accordance with Section 11.5  of the Credit Agreement and the Collateral
Agent shall retain any other proceeds constituting Collateral in accordance
with the terms of this Agreement.

 

6.5                                 Code and Other
Remedies. If an Event of Default shall occur and be
continuing, the Collateral Agent, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or relating
to the Obligations, all rights and remedies of a secured party under the New
York UCC or any other applicable law. Without limiting the generality of the
foregoing, the Collateral Agent, without demand of performance or other demand,
presentment, protest, advertisement or notice of any kind (except any notice
required by law referred to below) to or upon any Grantor or any other Person
(all and each of which demands, defenses, advertisements and notices are hereby
waived), may in such circumstances forthwith collect, receive, appropriate and
realize upon the Collateral, or any part thereof, and/or may forthwith sell,
lease, assign, give option or options to purchase, or otherwise dispose of and
deliver the Collateral or any part thereof (or contract to do any of the
foregoing), in one or more parcels at public or private sale or sales, at any
exchange, broker’s board or office of the Collateral Agent or any Secured Party
or elsewhere upon such terms and conditions as it may deem advisable and at
such prices as it may deem best, for cash or on credit or for future delivery
without assumption of any credit risk. The Collateral Agent or any Secured
Party shall have the right upon any such public sale or sales, and, to the
extent permitted by law, upon any such private sale or sales, to purchase the
whole or any part of the Collateral so sold, free of any right or equity of
redemption in any Grantor, which right or equity is hereby waived and released.
Each Grantor further agrees, at the Collateral Agent’s request, to assemble the
Collateral and make it available to the Collateral Agent at places which the
Collateral Agent shall reasonably select, whether at such Grantor’s premises or
elsewhere. The Collateral Agent shall apply the net proceeds of any action taken
by it pursuant to this Section 6.5 
with respect to any Grantor’s Collateral, after deducting all reasonable
costs and expenses of every kind incurred for the care or safekeeping of any of
the Collateral of such Grantor or in any way relating to preserving or
maintaining the Collateral of such Grantor or the rights of the Collateral
Agent and the Secured Parties hereunder with respect thereto, including,
without limitation, reasonable attorneys’ fees and disbursements, to the
payment in whole or in part of the Obligations of such Grantor, in such order
as the Collateral Agent may elect and only after such application and after the
payment by the Collateral Agent of any other amount required by any provision
of law, including, without limitation, Section 9-615(a)(3) of the New York
UCC, need the Collateral Agent account for the surplus, if any, to any Grantor.
To the extent permitted by applicable law, each Grantor waives all claims,
damages and demands it may acquire against the Collateral Agent or any Secured
Party arising out of the exercise by them of any rights hereunder. If any
notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least 10
days before such sale or other disposition.

 

14

 

6.6                                 Sale of Pledged
Stock. (a) Each Grantor recognizes that the Collateral Agent may be
unable to effect a public sale of any or all the Pledged Stock, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may be compelled to resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The Collateral
Agent shall be under no obligation to delay a sale of any of the Pledged Stock
for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer would agree to do so.

 

(b)                                 Each Grantor
agrees to use its best efforts to do or cause to be done all such other acts as
may be necessary to make such sale or sales of all or any portion of the
Pledged Stock pursuant to this Section 6.6 valid and binding and in
compliance with any and all other applicable Requirements of Law. Each Grantor
further agrees that a breach of any of the covenants contained in this Section 6.6
will cause irreparable injury to the Collateral Agent and the Secured Parties,
that the Collateral Agent and the 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 6.6 shall be specifically enforceable
against such Grantor, and such Grantor 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 or is continuing
under the Credit Agreement.

 

6.7                                 Subordination. Each Grantor
hereby agrees that, upon the occurrence and during the continuance of an Event
of Default, unless otherwise agreed by the Collateral Agent, all Indebtedness
owing by it to any Subsidiary of any Grantor shall be fully subordinated to the
indefeasible payment in full in cash of such Grantor’s Obligations.

 

6.8                                 Deficiency. Each Grantor
shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay its Obligations and
reasonable Attorney Costs and expenses of the Collateral Agent or any Secured
Party to collect such deficiency.

 

SECTION 7.    THE COLLATERAL AGENT

 

7.1                                 Collateral
Agent’s Appointment as Attorney-in-Fact, etc. (a) Each Grantor
hereby irrevocably constitutes and appoints the Collateral Agent and any
officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of such Grantor and in the name of such Grantor or in its own name,
for the purpose of carrying out the terms of this Agreement, subject to the
last sentence of this Section 7.1(a), to take any and all appropriate
action and to execute any and all documents and instruments which may be
necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Collateral Agent the power and right, on behalf of such Grantor, without notice
to or assent by such Grantor, to do any or all of the following:

 

(i)                                     in the name of
such Grantor or its own name, or otherwise, take possession of and indorse and
collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Contract or with respect to any other
Collateral and file any claim or take any other action or proceeding in any
court of law or equity or otherwise deemed appropriate by the Collateral Agent
for the purpose of collecting any and all such moneys due under any Contract or
with respect to any other Collateral whenever payable;

 

15

 

(ii)                                  in the case of
any Intellectual Property, execute and deliver, and have recorded, any and all
agreements, instruments, documents and papers as the Collateral Agent or any
Lender may request to evidence the Collateral Agent’s and the Secured Parties’ security
interest in such Intellectual Property and the goodwill and general intangibles
of such Grantor relating thereto or represented thereby;

 

(iii)                               pay or
discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or any insurance called for by the terms of the
Credit Agreement and pay all or any part of the premiums therefor and the costs
thereof;

 

(iv)                              execute, in
connection with any sale provided for in Sections 6.5 or 6.6,  any indorsements, assignments or other
instruments of conveyance or transfer with respect to the Collateral; and

 

(v)                                 (1) direct
any party liable for any payment under any of the Collateral to make payment of
any and all moneys due or to become due thereunder directly to the Collateral Agent
or as the Collateral Agent shall direct; (2) ask or demand for, collect,
and receive payment of and receipt for, any and all moneys, claims and other
amounts due or to become due at any time in respect of or arising out of any
Collateral; (3) sign and indorse any invoices, freight or express bills,
bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in connection with any
of the Collateral; (4) commence and prosecute any suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral; (5) defend any suit, action or proceeding
brought against such Grantor with respect to any Collateral; (6) settle,
compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such discharges or releases as the Collateral Agent may deem
appropriate; (7) assign any Copyright, Patent or Trademark (along with the
goodwill of the business to which any such Copyright, Patent or Trademark
pertains), throughout the world for such term or terms, on such conditions, and
in such manner, as the Collateral Agent shall in its sole discretion determine;
and (8) generally, sell, transfer, pledge and make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely
as though the Collateral Agent were the absolute owner thereof for all
purposes, and do, at the Collateral Agent’s option and such Grantor’s expense,
at any time, or from time to time, all acts and things which the Collateral
Agent deems necessary to protect, preserve or realize upon the Collateral and
the Collateral Agent’s and the Secured Parties’ security interests therein and
to effect the intent of this Agreement, all as fully and effectively as such
Grantor might do.

 

Anything
in this Section 7.1(a)  to the contrary notwithstanding, the
Collateral Agent agrees that it will not exercise any rights under the power of
attorney provided for in this Section 7.1(a) unless an Event of
Default shall have occurred and be continuing.

 

(b)                                 If any Grantor
fails to perform or comply with any of its agreements contained herein, the
Collateral Agent, at its option, but without any obligation so to do, may
perform or comply, or otherwise cause performance or compliance, with such
agreement.

 

(c)                                  The reasonable
expenses of the Collateral Agent incurred in connection with actions undertaken
as provided in this Section 7.1, together with interest thereon at a rate
per annum equal to the highest rate per annum at which interest would then be
payable on any past due Term Loans under the Credit Agreement, from the date of
payment by the Collateral Agent to the date reimbursed by the relevant Grantor,
shall be payable by such Grantor to the Collateral Agent immediately upon
demand.

 

16

 

(d)                                 Each Grantor
hereby ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof. All powers, authorizations and agencies contained in this
Agreement are coupled with an interest and are irrevocable until this Agreement
is terminated and the security interests created hereby are released.

 

7.2                                 Duty of
Collateral Agent. The Collateral Agent’s sole duty with respect to
the custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the New York UCC or otherwise, shall be
to deal with it in the same manner as the Collateral Agent deals with similar
property for its own account. Neither the Collateral Agent, any Secured Party
nor any of their respective officers, directors, employees or agents shall be
liable for failure to demand, collect or realize upon any of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of any Grantor or any other Person
or to take any other action whatsoever with regard to the Collateral or any
part thereof. The powers conferred on the Collateral Agent and the Secured
Parties hereunder are solely to protect the Collateral Agent’s and the Secured
Parties’ interests in the Collateral and shall not impose any duty upon the
Collateral Agent or any Secured Party to exercise any such powers. The
Collateral Agent and the Secured Parties shall be accountable only for amounts
that they actually receive as a result of the exercise of such powers, and
neither they nor any of their officers, directors, employees or agents shall be
responsible to any Grantor for any act or failure to act hereunder, except for
their own gross negligence or willful misconduct.

 

7.3                                 Execution of
Financing Statements. Pursuant to any applicable law, each Grantor
authorizes the Collateral Agent to file or record financing statements and
other filing or recording documents or instruments with respect to the
Collateral without the signature of such Grantor in such form and in such
offices as the Collateral Agent or any Lender determines appropriate to perfect
the security interests of the Collateral Agent under this Agreement. Each
Grantor authorizes the Collateral Agent to use the collateral description “all
personal property” or “all assets” in any such financing statements.

 

7.4                                 Authority of
Collateral Agent. Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under this Agreement with respect to
any action taken by the Collateral Agent or the exercise or non-exercise by the
Collateral Agent of any option, voting right, request, judgment or other right
or remedy provided for herein or resulting or arising out of this Agreement
shall, as between the Collateral Agent and the Secured Parties, be governed by
the Credit Agreement and by such other agreements with respect thereto as may
exist from time to time among them, but, as between the Collateral Agent and
the Grantors, the Collateral Agent shall be conclusively presumed to be acting
as agent for the Secured Parties with full and valid authority so to act or
refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

 

7.5                                 Collateral and
Administrative Agent’s Duties. (a) Wells Fargo Bank,
National Association, in its capacity as Collateral Agent and Administrative
Agent, agrees to take any actions or exercise any powers or remedies provided
for it under this Agreement or the Loan Documents if so instructed by the
requisite Lenders; provided, however, that the Agents shall
not be required to take any action that exposes it to personal liability,
requires it to advance or expend funds, or that is contrary to this Agreement,
the Loan Documents or any Requirement of Law. 
The Lenders acknowledge that the Administrative Agent and the Collateral
Agent will only be required to exercise its rights and remedies under this
Agreement or the other Loan Documents upon the written direction of the
requisite Lenders and that any permissive duty contained in this Agreement or
the other Loan Documents shall not be construed as an obligations imposed upon
either the Administrative Agent or the Collateral Agent.

 

17

 

(b)                                 Notwithstanding
anything herein to the contrary, the Collateral Agent shall be afforded all of
the rights, powers, immunities and indemnities of the Collateral Agent set
forth in the Credit Agreement and the other Loan Documents, as if such rights,
powers, immunities and indemnities were specifically set forth herein. Each
Grantor hereby acknowledges the appointment of the Collateral Agent pursuant to
the Credit Agreement. The rights, privileges, protections and benefits given to
the Collateral Agent, including their right to be indemnified, are extended to,
and shall be enforceable by, the Collateral Agent in its capacity hereunder.

 

SECTION 8.    MISCELLANEOUS

 

8.1                                 Amendments in
Writing. None of the terms or provisions of this Agreement may be waived,
amended, supplemented or otherwise modified except in accordance with Section 13.10  of the Credit Agreement.

 

8.2                                 Notices. All notices,
requests and demands to or upon the Collateral Agent or any Grantor hereunder
shall be effected in the manner provided for in Section 13.3  of the Credit Agreement; provided that any
such notice, request or demand to or upon any Guarantor shall be addressed to
such Guarantor at its notice address set forth on Schedule 5.

 

8.3                                 No Waiver by
Course of Conduct; Cumulative Remedies. Neither the Collateral
Agent nor any Secured Party shall by any act (except by a written instrument
pursuant to Section 8.1),  delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default. No failure
to exercise, nor any delay in exercising, on the part of the Collateral Agent
or any Secured Party, any right, power or privilege hereunder shall operate as
a waiver thereof. No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. A waiver by the Collateral
Agent or any Secured Party of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Collateral
Agent or such Secured Party would otherwise have on any future occasion. The
rights and remedies herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by
law.

 

8.4                                 Enforcement
Expenses; Indemnification. (a) Each Guarantor agrees to pay or
reimburse each Secured Party and the Collateral Agent for all its properly
documented reasonable costs, fees and expenses incurred in collecting against
such Guarantor under the guarantee contained in Section 2 or otherwise
enforcing or preserving any rights under this Agreement and the other Loan
Documents to which such Guarantor is a party, including, without limitation,
Attorney Costs and expenses of each Secured Party and the Collateral Agent.

 

(b)                                 Each Guarantor
agrees to pay, and to save the Collateral Agent and the Secured Parties
harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes which may be
payable or determined to be payable with respect to any of the Collateral or in
connection with any of the transactions contemplated by this Agreement.

 

(c)                                  Each Guarantor
agrees to pay, and to save the Collateral Agent and the Secured Parties
harmless from, any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement to the extent the Borrower
would be required to do so pursuant to Sections 13.1 and 13.2 of the Credit
Agreement.

 

(d)                                 The agreements
in this Section 8.4 shall survive repayment of the Obligations and all
other amounts payable under the Credit Agreement and the other Loan Documents.

 

18

 

8.5                                 Successors and
Assigns. This Agreement shall be binding upon the successors and assigns of
each Grantor and shall inure to the benefit of the Collateral Agent and the
Secured Parties and their successors and assigns; provided that no Grantor
may assign, transfer or delegate any of its rights or obligations under this
Agreement without the prior written consent of the Collateral Agent.

 

8.6                                 Set-Off. In addition
to any rights and remedies of the Secured Parties provided by law, each Secured
Party shall have the right, without notice to any Grantor, any such notice
being expressly waived by each Grantor to the extent permitted by applicable
law, upon any Obligations becoming due and payable by any Grantor (whether at
the stated maturity, by acceleration or otherwise), to apply to the payment of
such Obligations, by setoff or otherwise, any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Secured Party, any affiliate thereof or any of their respective
branches or agencies to or for the credit or the account of such Grantor. Each
Secured Party agrees promptly to notify the relevant Grantor and the Collateral
Agent after any such application made by such Secured Party, provided that the
failure to give such notice shall not affect the validity of such application.

 

8.7                                 Counterparts. This
Agreement may be executed by one or more of the parties to this Agreement on
any number of separate counterparts (including by .pdf or telecopy), and all of
said counterparts taken together shall be deemed to constitute one and the same
instrument.

 

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

 

8.9                                 Section Headings. The Section headings
used in this Agreement are for convenience of reference only and are not to
affect the construction hereof or be taken into consideration in the
interpretation hereof.

 

8.10                           Integration. This
Agreement and the other Loan Documents represent the agreement of the Grantors,
the Collateral Agent and the Secured Parties with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or
warranties by the Collateral Agent or any Secured Party relative to subject
matter hereof and thereof not expressly set forth or referred to herein or
therein.

 

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

 

8.12                           Submission To
Jurisdiction. Each party hereto hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York State court sitting in New York City
for the purposes of all legal proceedings arising out of or relating to this
Agreement, any other Loan Document or the transactions contemplated hereby or
thereby. Each party hereby irrevocably waives, to the fullest extent permitted
by applicable Requirement of Law, any objection which it may now or hereafter
have to the laying of the venue of any such proceeding brought in such a court
and any claim that any such proceeding brought in such a court has been brought
in an inconvenient forum. Nothing herein shall affect the right to serve
process in any other manner permitted by applicable Requirements of Law or any
right to bring legal action or proceedings in any other competent jurisdiction,
including judicial or non-judicial foreclosure of real property interests which
are part of the Collateral. To the extent permitted by applicable Requirements
of Law, each party hereto

 

19

 

further irrevocably agrees
to the service of process of any of the aforementioned courts in any suit,
action or proceeding by the mailing of copies thereof by certified mail, postage
prepaid, return receipt requested, to such party at the address referenced in Section 8.2,  such service to be effective upon the date
indicated on the postal receipt returned from such party.

 

8.13                           Acknowledgements. Each Grantor
hereby acknowledges that:

 

(a)                                  it has been
advised by counsel in the negotiation, execution and delivery of this Agreement
and the other Loan Documents to which it is a party;

 

(b)                                 neither the
Collateral Agent nor any Secured Party has any fiduciary relationship with or
duty to any Grantor arising out of or in connection with this Agreement or any
of the other Loan Documents, and the relationship between the Grantors, on the
one hand, and the Collateral Agent and Secured Parties, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

 

(c)                                  no joint
venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Secured Parties or
among the Grantors and the Secured Parties.

 

8.14                           Additional
Grantors. Each Subsidiary of the Borrower that is required
to become a party to this Agreement on or after the Subsequent Closing Date
pursuant to Section 9.22  of the
Credit Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the
form of Annex I hereto.  The parties
hereto acknowledge and agree that with respect to the Steel Winds Project, if
the Steel Winds Letters of Credit are in existence as of the Subsequent Closing
Date and the Steel Winds Project Company is the obligor thereunder, then the
Steel Winds Companies shall be required to become a party to this Agreement
upon the termination or expiration of such Steel Winds Letters of Credit.

 

8.15                           Termination;
Releases. (a) Upon the indefeasible payment and
performance in full (in cash) of any and all Obligations (other than inchoate
Obligations for which no claims have been asserted), whether due or to become
due, direct or indirect, absolute or contingent, and howsoever evidences, held
or acquired, this Agreement and the other Loan Documents shall automatically
terminate and be of no further force and effect (other than the provisions
hereof that by their express terms survive such termination) and at the
direction of the Majority Lenders, the Administrative Agent and Collateral
Agent shall execute and deliver such documentation confirming such termination
as may reasonably be requested by the Borrower and the Collateral shall
automatically be released from the Liens of under this Agreement and any other
Security Documents and the guarantees thereunder terminated, all without
delivery of any instrument or performance of any act by any Person.

 

(b)                                 Notwithstanding
anything to the contrary contained herein or in any other Loan Document, the
Agents are hereby irrevocably authorized by each Lender (without requirement of
notice to or consent of any Lender) to take any action requested by the
Borrower having the effect of releasing any Collateral or guarantee obligations
under Section 2 hereunder (i) to the extent necessary to permit
consummation of any transaction permitted by the Loan Documents or that has
been consented to by the Majority Lenders or (ii) the circumstances
described in clause (a) above.

 

(c)                                  Upon the
incurrence or issuance of any Qualified Tax Equity Financing or any Steel Winds
Permitted Project Indebtedness, in each case with respect to the Steel Winds
Project (including by either of the Steel Winds Companies) on and after the
Subsequent Closing Date and so long as the Net Cash Proceeds thereof have been
applied in accordance with Section 4.1(a)  of the Credit Agreement to

 

20

 

the extent the Steel Winds
Companies have granted Collateral pursuant to Section 9.22  of the Credit Agreement and Section 8.14  of this Agreement, the Collateral granted by
the Steel Winds Companies shall be released from the Liens created by the
Security Documents, and the Security Documents shall no longer be applicable to
the Steel Winds Companies and all obligations (other than those that expressly
survive such release) of the Steel Winds Companies (including the guarantee
obligations of Steel Winds Holding Company) under this Agreement and any other Security
Document shall terminate, all without delivery of any instrument or performance
of any act by any Person.

 

8.16                           Security
Interest Absolute. To the maximum extent permitted by applicable
Requirement of Law, the rights and remedies of the Collateral Agent hereunder,
the Liens created hereby, and, subject to Section 2.5,  the obligations of the Grantors under this
Agreement are absolute, irrevocable and unconditional and will remain in full
force and effect without regard to, and will not be released, suspended,
discharged, terminated or otherwise affected by, any circumstance or occurrence
whatsoever (other than termination or release pursuant to Section 8.15),  including: (a) any renewal, extension,
amendment or modification of, or addition or supplement to or deletion from,
any of the Loan Documents or any other instrument or agreement referred to
therein, or any assignment or transfer of any thereof, (b) any waiver of,
consent to or departure from, extension, indulgence or other action or inaction
under or in respect of any of the Obligations, this Agreement, any other Loan
Document or other instrument or agreement relating thereto, or any exercise or
non-exercise of any right, remedy, power or privilege under or in respect of
the Obligations, this Agreement, any other Loan Document or any such other
instrument or agreement relating thereto, (c) any furnishing of any
additional security for the Obligations or any part thereof to the Collateral
Agent or any other Person or any acceptance thereof by the Collateral Agent or
any other Person or any substitution, sale, exchange, release, surrender or
realization of or upon any such security by the Collateral Agent or any other
Person or the failure to create, preserve, validate, perfect or protect any
other Lien granted to, or purported to be granted to, or in favor of, the
Collateral Agent or any other Secured Party, (d) any invalidity,
irregularity or unenforceability of all or any part of the Obligations, any
other Loan Document or any other agreement or instrument relating thereto or
any security therefor, (e) the acceleration of the maturity of any of the
Obligations or any other modification of the time of payment thereof, (f) any
judicial or nonjudicial foreclosure or sale of, or other election of remedies
with respect to, any interest in real property or other collateral serving as
security for all or any part of the Obligations, even though such foreclosure,
sale or election of remedies may impair the subrogation rights of any Grantor
or may preclude any Grantor from obtaining reimbursement, contribution,
indemnification or other recovery and even though such Grantor may or may not,
as a result of such foreclosure, sale or election of remedies, be liable for
any deficiency, (g) any act or omission of the Collateral Agent or any
other Person (other than payment of the Obligations) that directly or
indirectly results in or aids the discharge or release of any Grantor or any
part of the Obligations or any security or guarantee (including any letter of
credit) for all or any part of the Obligations by operation of law or
otherwise, (h) the election by the Collateral Agent, in any bankruptcy
proceeding of any Person, of the application or non-application of Section 1111(b)(2) of
the Bankruptcy Code, (i) any extension of credit or the grant of any Lien
under Section 364 of the Bankruptcy Code, (j) any use of cash
collateral under Section 363 of the Bankruptcy Code, (k) any
agreement or stipulation with respect to the provision of adequate protection
in any bankruptcy proceeding of any Person, (l) the avoidance of any Lien
in favor of the Collateral Agent for any reason, (m) any bankruptcy,
insolvency, reorganization, arrangement, readjustment of debt, liquidation or
dissolution proceeding commenced by or against any Person, including any
discharge of, or bar or stay against collecting, all or any part of the
Obligations (or any interest on all or any part of the Obligations) in or as a
result of any such proceeding or (n) any other event or circumstance
whatsoever which might otherwise constitute a legal or equitable discharge of a
surety or a guarantor, it being the intent of this Section 8.16  that the obligations of any Grantor hereunder
shall be absolute, irrevocable and unconditional under any and all circumstances.

 

21

 

8.17                           Reinstatement. This
Agreement and the Liens created hereunder shall automatically be reinstated if
at any time payment, or any part thereof, of any of the Obligations is
rescinded or must otherwise be restored or returned by the Collateral Agent or
any Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Borrower or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made, and such
Grantor shall indemnify the Collateral Agent, each other Secured Party and its
respective employees, officers and agents on demand for all reasonable fees,
costs and expenses (including reasonable fees, costs and expenses of counsel)
incurred by the Collateral Agent, such other Secured Party or their respective
employees, officers or agents in connection with such reinstatement, rescission
or restoration.

 

8.18                        WAIVER OF
JURY TRIAL. EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

8.19                           Intercreditor
Agreement. 
Notwithstanding anything to the contrary herein, in the case of any
inconsistency between this Agreement and the Intercreditor Agreement, the
Intercreditor Agreement shall govern.

 

22

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly
executed and delivered as of the date first above written.

 

 

	
   

  	
  CSSW, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Evelyn Lim

  
	
   

  	
   

  	
  Name:  Evelyn Lim

  
	
   

  	
   

  	
  Title:  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CSSW HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Evelyn Lim

  
	
   

  	
   

  	
  Name:  Evelyn Lim

  
	
   

  	
   

  	
  Title:  Secretary

  

 

[Signature Page to First Lien Guarantee and Security Agreement]

 

 

	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION,

  As Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Pinzon

  
	
   

  	
   

  	
  Name:  Michael Pinzon

  
	
   

  	
   

  	
  Title:  Vice President

  

 

[Signature Page to First Lien Guarantee and Security Agreement]

 

 

Schedule 1

 

DESCRIPTION OF INVESTMENT
PROPERTY

Pledged Stock:

 

	
  Issuer

  	
   

  	
  Class of Stock

  	
   

  	
  Stock Certificate No.

  	
   

  	
  No. of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSSW, LLC 

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  100% of membership  interests 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New York Wind III, LLC 

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  100% of membership  interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stetson Holdings, LLC 

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  100% of membership  interests 

  	
   

  

 

 

Pledged
Notes:

 

None.

 

 

Schedule 2

 

FILINGS AND OTHER ACTIONS

 

REQUIRED TO PERFECT SECURITY INTERESTS

 

Uniform Commercial Code Filings

 

Secretary of State of the State of Delaware

 

Patent and Trademark Filings

 

None.

 

Actions with respect to Pledged Stock

 

Other Actions

 

Delivery of all share certificates of Pledged Stock to Collateral Agent

 

 

Schedule 3

 

LOCATION OF JURISDICTIONS OF ORGANIZATION; FEDERAL IDENTIFICATION
NUMBERS; 

CHIEF EXECUTIVE OFFICES

 

	
  Full and Correct Legal Name

  	
   

  	
  CSSW HOLDINGS, LLC

  	
   

  	
  CSSW, LLC

  
	
  Type of Organization

  	
   

  	
  Limited Liability Company

  	
   

  	
  Limited Liability Company

  
	
  Jurisdiction of
  Organization

  	
   

  	
  Delaware

  	
   

  	
  Delaware

  
	
  Organizational ID Number

  	
   

  	
  4707418

  	
   

  	
  4707420

  
	
  Mailing Address

  	
   

  	
  c/o First Wind Energy, LLC

  	
   

  	
  c/o First Wind Energy, LLC

  
	
   

  	
   

  	
  85 Wells Avenue,
  Suite 305

  	
   

  	
  85 Wells Avenue,
  Suite 305

  
	
   

  	
   

  	
  Newton, MA 02459

  	
   

  	
  Newton, MA 02459

  
	
   

  	
   

  	
  Attention: President

  	
   

  	
  Attention: President

  
	
  Place of Business

  	
   

  	
  Delaware

  	
   

  	
  Delaware

  
	
  Location of Chief
  Executive Officer

  	
   

  	
  c/o First Wind Energy, LLC

  	
   

  	
  c/o First Wind Energy, LLC

  
	
   

  	
   

  	
  85 Wells Avenue,
  Suite 305

  	
   

  	
  85 Wells Avenue, Suite 305

  
	
   

  	
   

  	
  Newton, MA 02459

  	
   

  	
  Newton, MA 02459

  
	
   

  	
   

  	
  Attention: President

  	
   

  	
  Attention: President

  
	
  Change of Name

  	
   

  	
  N/A

  	
   

  	
  N/A

  

 

 

Schedule 4

 

COPYRIGHTS AND COPYRIGHT LICENSES

 

None.

 

PATENTS AND PATENT LICENSES

 

None.

 

TRADEMARKS AND TRADEMARK LICENSES

 

None.

 

 

Schedule 5

 

NOTICE ADDRESSES OF GUARANTORS

 

c/o First Wind Energy, LLC

85 Wells Avenue, Suite 305

Newton, MA 02459

 

 

Schedule 6

 

COMMERCIAL TORT CLAIMS

 

None.

 

 

Schedule 7

 

DEPOSIT AND SECURITY ACCOUNTS

 

None.

 

 

Annex I to

Guarantee and Security Agreement

 

ASSUMPTION
AGREEMENT, dated as of
                                ,
20   , made by 
                            
              (the
“Additional Grantor”), in favor of Wells Fargo Bank, National
Association, as collateral agent (in such capacity, and together with its
successors and assigns in such capacity, the “Collateral Agent”) for the
benefit of PIP3PX FirstWind Debt Ltd. and PIP3GV FirstWind Debt Ltd. (the “Initial
Lenders”) and the banks and other financial institutions or entities (the “Other
Lenders” and together with the Initial Lenders, the “Lenders”)
parties to the Credit Agreement referred to below. All capitalized terms not
defined herein shall have the meaning ascribed to them in such Credit Agreement
referred to below.

 

W I T N E S S E T H :

 

WHEREAS,
CSSW, LLC as borrower (the “Borrower”), CSSW Holdings, LLC (“CSSW
Parent”), the Initial Lenders, Wells Fargo Bank, National Association, as
administrative agent (in such capacity, and together with its successors and
assigns in such capacity, the “Administrative Agent”) and the Collateral
Agent have entered into the Credit Agreement, dated as of July 17, 2009
(as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”);

 

WHEREAS,
in connection with the Credit Agreement, the Borrower and certain of its
Affiliates (other than the Additional Grantor) have entered into the Guarantee
and Security Agreement, dated as of July 17, 2009 (as amended,
supplemented or otherwise modified from time to time, the “Guarantee and
Security Agreement”) in favor of the Collateral Agent for the ratable
benefit of the Secured Parties;

 

WHEREAS,
the Credit Agreement requires in certain circumstances for the Additional
Grantor to become a party to the Guarantee and Security Agreement on or after
the Subsequent Closing Date; and

 

WHEREAS,
the Additional Grantor has agreed to execute and deliver this Assumption
Agreement in order to become a party to the Guarantee and Security Agreement;

 

NOW,
THEREFORE, IT IS AGREED:

 

1.  Guarantee and Security Agreement. By
executing and delivering this Assumption Agreement, the Additional Grantor, as
provided in Section 8.14  of the
Guarantee and Security Agreement, hereby becomes a party to the Guarantee and
Security Agreement as a Grantor thereunder with the same force and effect as if
originally named therein as a Grantor and, without limiting the generality of
the foregoing, hereby expressly assumes all obligations and liabilities of a
Grantor thereunder. The information set forth in Annex I-A hereto is hereby added
to the information set forth in the Schedules to the Guarantee and Security
Agreement.  The Additional Grantor hereby
represents and warrants that each of the representations and warranties
contained in Section 4 of the Guarantee and Security Agreement is true and
correct on and as the date hereof (after giving effect to this Assumption
Agreement) as if made on and as of such date.

 

 

2.  Governing Law.
THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

3.  Acknowledgment.  The undersigned hereby
acknowledges and consents to, the Intercreditor Agreement, dated as of July 17,
2009, between HSH Nordbank, AG, New York Branch, as the Holdings Agent and
Wells Fargo Bank, National Association, as the Aimco Agent. The undersigned
agrees to be bound by the Intercreditor Agreement, and that the Intercreditor
Agreement may be amended by Aimco Agent and Holdings Agent (as such terms are
defined in the Intercreditor Agreement) without notice to, or the consent of,
the Additional Grantor or any other Person.

 

IN
WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be
duly executed and delivered as of the date first above written.

 

 

	
   

  	
  [ADDITIONAL GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Annex I-A to

Assumption Agreement

 

Supplement to Schedule 1

 

Supplement to Schedule 2

 

Supplement to Schedule 3

 

Supplement to Schedule 4

 

Supplement to Schedule 5

 

Supplement to Schedule 6

 

Supplement to Schedule 7

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