Document:

exhibit10.2(b)guaranteeandcollateralagreement

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GUARANTEE AND COLLATERAL AGREEMENT
dated as of April 17, 2015
between
HOOPER HOLMES, INC.,
as Grantor,
and
SWK FUNDING LLC, 
as Agent

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GUARANTEE AND COLLATERAL AGREEMENT

GUARANTEE AND COLLATERAL AGREEMENT, dated as of April 17, 2015 (as may be amended, restated, supplemented, or otherwise modified from time to time, this “Agreement”), made by each signatory hereto (together with any other Person that becomes a party hereto as provided herein, “Grantors”), in favor of SWK FUNDING LLC, as Agent (“Agent”) for the benefit of all Lenders party to the Credit Agreement (as hereafter defined).
Agent and Lenders have severally agreed to extend credit to Hooper Holmes, Inc., a New York corporation (the “Borrower”), pursuant to the Credit Agreement.  The Borrower is affiliated with each other Grantor.  The Borrower and the other Grantors are engaged in interrelated businesses, and each Grantor will derive substantial direct and indirect benefit from extensions of credit under the Credit Agreement.  It is a condition precedent to each Lender’s obligation to extend credit under the Credit Agreement that Grantors shall have executed and delivered this Agreement to Agent for the ratable benefit of all Lenders.
In consideration of the premises and to induce Agent and Lenders to enter into the Credit Agreement and to induce Agent and Lenders to extend credit thereunder, each Grantor hereby agrees with Agent, for the ratable benefit of Lenders, as follows:
		
	1.
	Definitions.

1.1.    Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement, and the following terms are used herein as defined in the Code:  Accounts, Money, Certificated Security, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Farm Products, Goods, Health-Care-Insurance Receivables, Instruments, Inventory, Letter-of-Credit Rights, Software and Supporting Obligations.
1.2.    When used herein the following terms shall have the following meanings:
Agreement has the meaning set forth in the preamble hereto.
Borrower Obligations means all Obligations of Borrower.
Code means the Uniform Commercial Code as in effect in the State of New York; provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Code as in effect in a jurisdiction other than the State of New York, “Code” means the Uniform Commercial Code, as applicable if the context requires, as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.

Collateral has the meaning set forth in Section 3 hereof.  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.
Copyright Licenses means all written agreements naming any Grantor as licensor or licensee, including those listed on Schedule 4, granting any right under any Copyright, including the grant of rights to manufacture, distribute, exploit and sell materials derived from any Copyright (other than agreements relating to widely-available software subject to “shrink-wrap” or “click-through” software licenses).
Credit Agreement means the Credit Agreement, of even date herewith, among Borrower, Lenders and Agent, as amended, supplemented, restated or otherwise modified from time to time.
Excluded Property means, with respect to a Grantor: (i) any item of General Intangibles or other property (including, without limitation, any Material Contract) that is now or hereafter held by such Grantor but only to the extent that such item of General Intangibles or property, including, for the avoidance of doubt, Intellectual Property (or any agreement evidencing such item of General Intangibles or property) contains a term or is subject to a rule of law, statute or regulation that restricts, prohibits, or requires a consent (that has not been obtained) of a Person (other than such Grantor) to, the creation, attachment or perfection of the security interest granted herein, and any such restriction, prohibition and/or requirement of consent is effective and enforceable under applicable law and is not rendered ineffective by applicable law (including, without limitation, pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Code); provided, however, that (x) Excluded Property shall not include any Proceeds of any item of General Intangibles or other property described in this definition, and (y) any item of General Intangibles or such other property described in this definition that at any time ceases to satisfy the criteria for Excluded Property (whether as a result of obtaining any necessary consent, any change in any rule of law, statute or regulation, or otherwise) shall no longer be Excluded Property; (ii) trademark applications filed in the United States Patent and Trademark Office on the basis of such Grantor’s “intent to use” such trademark, unless and until acceptable evidence of use of the Trademark has been filed with the United States Patent and Trademark Office pursuant to Section 1(c) or Section 1(d) of the Lanham Act (15 U.S.C. 1051, et seq.), to the extent that granting a Lien in such Trademark application prior to such filing would adversely affect the enforceability or validity of such Trademark application; (iii) any asset subject to a Permitted Lien (other than Liens in favor of Agent) securing obligations permitted under the Credit Agreement to the extent that the grant of other Liens on such asset (A) would result in a breach or violation of, or constitute a default under, the agreement or instrument governing such Permitted Lien, (B) would result in the loss of use of such asset or (C) would permit the holder of such Permitted Lien to terminate the Grantor’s use of such asset and (iv) real property leases.
Fixtures means all of the following, whether now owned or hereafter acquired by a Grantor: plant fixtures; business fixtures; other fixtures and storage facilities, wherever located; and all additions and accessories thereto and replacements therefor.
General Intangibles means all “general intangibles” as such term is defined in Section 9‐102(a)(42) of the Code and, in any event, including with respect to any Grantor, all contracts, agreements, instruments and indentures in any form, and portions thereof, to which such Grantor is a party or under which such Grantor has any right, title or interest or to which such Grantor or any property of such Grantor is subject, as the same from time to time may be amended, supplemented or otherwise modified, including, without limitation, (a) all rights of such Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (b) all rights of such Grantor to damages arising thereunder and (c) all rights of such Grantor to perform and to exercise all remedies thereunder.
Guarantor Obligations means, collectively, with respect to each Guarantor, all payment and performance obligations of such Guarantor hereunder or under any other Loan Document to which such Guarantor is party.
Guarantors means the collective reference to each Grantor other than Borrower.
Identified Claims means the Commercial Tort Claims described on Schedule 6 as such schedule may be supplemented from time to time.
Intellectual Property shall mean all present and future:  trade secrets, know-how and other proprietary information; Trademarks and Trademark Licenses, internet domain names, service marks, trade dress, trade names, business names, designs, logos, slogans (and all translations, adaptations, derivations and combinations of the foregoing) indicia and other source and/or business identifiers, and the goodwill of the business relating thereto and all registrations or applications for registrations which have heretofore been or may hereafter be issued thereon throughout the world; Copyrights (including Copyrights for computer programs, but excluding commercially available off-the-shelf software and any Intellectual Property rights relating thereto) and Copyright Licenses, and all tangible and intangible property embodying the Copyrights, unpatented inventions (whether or not patentable); Patents and Patent Licenses; industrial design applications and registered industrial designs; license agreements related to any of the foregoing and income therefrom, books, records, writings, computer tapes or disks, flow diagrams, specification sheets, computer software, source codes, object codes, executable code, data, databases and other physical manifestations, embodiments or incorporations of any of the foregoing; customer lists and customer information, the right to sue for all past, present and future infringements of any of the foregoing; all other intellectual property; and all common law and other rights throughout the world in and to all of the foregoing.
Intercompany Note means any promissory note evidencing loans made by any Grantor to any other Grantor or its Affiliate. 
Investment Property means the collective reference to (a) all “investment property” as such term is defined in Section 9‐102(a)(49) of the Code (other than the equity interest of any Subsidiary excluded from the definition of Pledged Equity), (b) all “financial assets” as such term is defined in Section 8‐102(a)(9) of the Code, and (c) whether or not constituting “investment property” as so defined, all Pledged Notes and all Pledged Equity.
Issuers means the collective reference to each issuer of any Investment Property.
Patent Licenses means 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 any of the foregoing referred to in Schedule 4.
Permitted Liens has the meaning ascribed such term in the Credit Agreement.
Pledged Equity means the equity interests listed on Schedule 1, as amended from time to time, together with any other equity interests, certificates, options 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.
Pledged Notes means 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).
Proceeds means all “proceeds” as such term is defined in Section 9‐102(a)(64) of the Code and, in any event, shall include all dividends or other income from the Investment Property, collections thereon or distributions or payments with respect thereto.
Receivable means any right to payment for goods sold or leased or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and whether or not it has been earned by performance (including any Accounts).
Secured Obligations means, collectively, all Borrower Obligations and Guarantor Obligations.
Securities Act means the Securities Act of 1933, as amended.
Trademark Licenses means, collectively, each agreement, whether written or oral, providing for the grant by or to any Grantor of any right to use any Trademark, including any of the foregoing referred to in Schedule 4.
		
	2.
	Guarantee.

2.1.    Guarantee.
(a)    Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees to Agent, for the ratable benefit of Lenders and their respective successors, indorsees, transfers and assigns to the extent permitted by and in accordance with the Credit Agreement, the prompt and complete payment and performance by Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the Borrower Obligations.
(b)    The guarantee contained in this Section 2 shall remain in full force and effect and shall serve as a continuing security, until all of the Secured Obligations have been Paid in Full.
(c)    No payment made by Borrower, any of the Guarantors, any other guarantor or any other Person or received or collected by Agent or any Lender from 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 Secured 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 Secured Obligations or any payment received or collected from such Guarantor in respect of the Secured Obligations), remain liable for the Secured Obligations up to the maximum liability of such Guarantor hereunder until the Secured Obligations are Paid in Full.
2.2.    Right of Contribution.  Each Guarantor hereby agrees that to the extent that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder which has not paid its proportionate share of such payment.  Each 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 Guarantor to Agent and Lenders, and each Guarantor shall remain liable to Agent and Lenders for the full amount guaranteed by such 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 Agent or any Lender, no Guarantor shall be entitled to be subrogated to any of the rights of Agent or any Lender against Borrower or any other Guarantor or any collateral security or guarantee or right of offset held by Agent or any Lender for the payment of the Secured Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder, until all of the Secured Obligations are Paid in Full.  If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Secured Obligations shall not have been Paid in Full, such amount shall be held by such Guarantor in trust for Agent and Lenders, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be promptly turned over to Agent in the exact form received by such Guarantor (duly indorsed (but without any representation or warranty) by such Guarantor to Agent, if required), to be applied against the Secured Obligations, whether matured or unmatured, in a manner that is consistent with the provisions of Section 2.10.2 of the Credit Agreement.
2.4.    Amendments, etc. with Respect to the Secured 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 Secured Obligations made by Agent or any Lender may be rescinded by Agent or such Lender and any of the Secured Obligations continued, and the Secured Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset 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 Agent or any Lender, 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 Agent (or the Required Lenders or all Lenders, as the case may be) may deem advisable from time to time (provided that any such amendment, modification, supplement or termination complies with the relevant provisions of the Credit Agreement, this Agreement and/or such Loan Document), and any collateral security, guarantee or right of offset at any time held by Agent or any Lender for the payment of the Secured Obligations may be sold, exchanged, waived, surrendered or released to the extent permitted by the Credit Agreement, this Agreement and the other Loan Documents.  Neither Agent nor any Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Secured Obligations or for the guarantee contained in this Section 2 or any property subject thereto.
2.5.    Guarantee Absolute and Unconditional; Waivers.
(a)    Each Guarantor agrees that this Guaranty is a guaranty of payment and performance when due and not of collectability.  The liability of Guarantor under this Guaranty shall be absolute, irrevocable and unconditional irrespective of:
(i)    any lack of validity, regularity or enforceability of any Loan Document;
(ii)    any lack of validity, regularity or enforceability of this Agreement;
(iii)    any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to departure from any Loan Document;
(iv)    any exchange, release or non-perfection of any security interest in any Collateral, or any release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the Secured Obligations;
(v)    any failure on the part of Agent or any other Person to exercise, or any delay in exercising, any right under any Loan Document; and
(vi)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, Borrower, any Guarantor or any other guarantor with respect to the Secured Obligations (including, without limitation, all defenses based on suretyship or impairment of collateral, and all defenses that Borrower may assert to the repayment of the Secured Obligations, including, without limitation, failure of consideration, breach of warranty, payment, statute of frauds, bankruptcy, lack of legal capacity, lender liability, accord and satisfaction, and usury), this Agreement and the obligations of Guarantor under this Agreement, other than payment in full of the Guarantor Obligations.
(b)    Each Guarantor hereby agrees that if Borrower or any other guarantor of all or a portion of the Secured Obligations is the subject of a bankruptcy or insolvency case under applicable law, it will not assert the pendency of such case or any order entered therein as a defense to the timely payment of the Secured Obligations.  Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Secured Obligations and notice of or proof of reliance by Agent or any Lender upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Secured 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 Borrower and any of the Guarantors, on the one hand, and Agent and Lenders, 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 (i) diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon Borrower or any of the Guarantors with respect to the Secured Obligations; (ii) notice of the existence or creation or renewal or non-payment of all or any of the Secured Obligations; (iii) all diligence in collection or protection of or realization upon any Secured Obligations or any security for or guaranty of any Secured Obligations; (iv) any right to require Agent or any Lender, as a condition of payment or performance by Guarantor, to (A) proceed against Borrower, any other guarantor of the Guarantor Obligations or any other Person, (B) proceed against or exhaust any security held from Borrower, any such other guarantor or any other Person, (C) proceed against or have resort to any balance of any deposit account or credit on the books of Agent or any Lender in favor of Borrower or any other Person or (D) pursue any other remedy in the power of Agent or any Lender whatsoever; (v) any defense arising by reason of the incapacity, lack of authority or any disability or other defense of Borrower or any other Guarantor including any defense based on or arising out of the lack of validity or the unenforceability of the Guarantor Obligations or any agreement or instrument relating thereto or by reason of the cessation of the liability of Borrower or any other Guarantor from any cause other than payment in full of the Guarantor Obligations; (vi) any defense based upon Agent or any Lender’s errors or omissions in the administration of the Guarantor Obligations, except errors and omissions resulting from Agent or any Lender’s  gross negligence, bad faith, or willful misconduct and (vii)(A) any legal or equitable discharge of Guarantor’s obligations hereunder and (B) any rights to set‐offs, recoupments and counterclaims.
(c)    When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, Agent or any Lender 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 Borrower, any other Guarantor or any other Person or against any collateral security or guarantee for the Secured Obligations or any right of offset with respect thereto, and any failure by Agent or any Lender to make any such demand, to pursue such other rights or remedies or to collect any payments from Borrower, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of Borrower, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, 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 Agent or any Lender against any Guarantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.  Each Guarantor agrees that it is not a surety for purposes of any state statutes providing defenses for sureties, and each Guarantor waives any right that it may have under such statutes to assert the applicability thereof to the provisions of this Agreement to require that Agent commence action against Borrower or any other Person or against any of the Collateral.
(d)    Agent or any Lender may, from time to time, at its sole discretion and without notice to any Grantor, take any or all of the following actions:  (i) retain or obtain a security interest in any property to secure any of the Secured Obligations or any obligation hereunder, (ii) retain or obtain the primary or secondary obligation of any obligor or obligors with respect to any of the Secured Obligations, (iii) extend or renew any of the Secured Obligations for one or more periods (whether or not longer than the original period), alter or exchange any of the Secured Obligations, or release or compromise any obligation of any Guarantor or any obligation of any nature of any other obligor with respect to any of the Secured Obligations, (iv) release any guaranty or right of offset or its security interest in, or surrender, release or permit any substitution or exchange for, all or any part of any property securing any of the Secured Obligations or any obligation hereunder, or extend or renew for one or more periods (whether or not longer than the original period) or release, compromise, alter or exchange any obligations of any nature of any obligor with respect to any such property, and (v) resort to any Guarantor for payment of any of the Secured Obligations when due, whether or not Agent or such Lender shall have resorted to any property securing any of the Secured Obligations or any obligation hereunder or shall have proceeded against any other Guarantor or any other obligor primarily or secondarily obligated with respect to any of the Secured Obligations.
2.6.    Payments.  Each Guarantor hereby guarantees that payments hereunder will be paid to Agent without set-off or counterclaim in Dollars at the office of Agent specified in the Credit Agreement.
		
	3.
	Grant of Security Interest.

(a)    Each Grantor hereby assigns and transfers to Agent, and hereby grants to Agent, for the ratable benefit of Lenders and (to the extent provided herein) their Affiliates, a security interest in all of the following (if applicable):
(i)all of each Grantor’s right, title and interest in and to all of such Grantor’s assets, including any and all personal property, Accounts, Chattel Paper (including Electronic Chattel Paper), Deposit Accounts, Documents, Equipment, Farm Products, Fixtures, General Intangibles, Goods, Health-Care-Insurance Receivables, Instruments, Intellectual Property, Inventory, Investment Property, Letter-of-Credit Rights, Software, Money, Supporting Obligations, and Identified Claims, in each case whether now owned or at any time hereafter acquired or arising,
(ii)all books and records pertaining to any of the foregoing,
(iii)all Proceeds and products of any of the foregoing, and
(iv)all collateral security and guarantees given by any Person with respect to any of the foregoing,
(all of the foregoing, 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 the Secured Obligations; provided, that the Collateral shall not include the Excluded Property.
(b)    Each Grantor shall promptly notify Agent of any Commercial Tort Claims related to the Loans in which such Grantor has an interest arising after the Closing Date and shall provide all necessary information concerning each such Commercial Tort Claim and make all necessary filings with respect thereto to perfect Agent’s first-priority security interest (subject to Permitted Liens) therein. 
(c)    Each Grantor has full right and power to grant to Agent, for the benefit of Agent and Lenders, a perfected, first-priority security interest (subject to Permitted Liens) and Lien on the Collateral pursuant to this Agreement, subject to no transfer or other restrictions or Liens of any kind in favor of any other Person (subject to any Permitted Liens). Except with respect to any financing statement (i) securing debt to be paid off as of the Closing Date, (ii) securing Permitted Liens, or (iii) filed on behalf of Agent, no financing statement relating to any of the Collateral is on file in any public office. No Grantor is party to any agreement, document or instruction that conflicts with this Section 3.
(d)    Each Grantor hereby authorizes Agent to prepare and file financing statements provided for by the Code, or any similar law in any other jurisdiction, and to take such other action as may be required, in Agent's sole discretion, to perfect and to continue the perfection of Agent’s security interest in the Collateral.
(e)    Irrespective of any provision in this Agreement, the prior consent of Agent shall not be required in connection with the licensing or sublicensing of Intellectual Property pursuant to collaborations, licenses or other strategic transactions with third parties (“Permitted Licenses”) executed in the normal course of Borrower’s business and excluding, for the avoidance of doubt, any exclusive license or sublicense.
		
	4.
	Representations and Warranties.

To induce Agent and Lenders to enter into the Credit Agreement and to induce Lenders to make their respective extensions of credit to Borrower thereunder, each Grantor jointly and severally hereby represents and warrants to Agent and each Lender that, after giving effect to the Project Jefferson closing:
4.1.    Title; No Other Liens.  Except for Permitted Liens, the Grantors own each item of the Collateral, tangible and intangible, of any nature whatsoever that they purport to own free and clear of any and all Liens or claims of others (including infringement claims with respect to Intellectual Property).  As of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), no financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except filings evidencing Permitted Liens and filings for which termination statements have been delivered to Agent.
4.2.    Perfected First Priority Liens.  Each Grantor has full right and power to grant to Agent the security interests contemplated herein, and the security interests granted pursuant to this Agreement are prior and senior to all other Liens on the Collateral in existence on the date hereof except for Permitted Liens expressly permitted by the Credit Agreement.
4.3.    Grantor Information.  Schedule 2 sets forth, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), (a) each Grantor’s jurisdiction of organization, (b) the location of each Grantor’s chief executive office, (c) each Grantor’s exact legal name as it appears on its organizational documents, and (d) each Grantor’s federal business or tax identification number.
4.4.    Collateral Locations.  Schedule 3 sets forth, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), (a) each place of business of each Grantor (including its chief executive office), (b) all locations where all Inventory and the Equipment owned by each Grantor is kept, and (c) whether each such Collateral location and place of business (including each Grantor’s chief executive office) is owned or leased (and if leased, specifies the complete name and notice address of each lessor as set forth in the relevant lease).  No Collateral is located outside the United States or in the possession of any lessor, bailee, warehouseman or consignee, except as indicated on Schedule 3.
4.5.    Certain Property.  Except as set forth on Schedule 8, none of the Collateral constitutes, or is the Proceeds of, (a) Farm Products, (b) Health-Care-Insurance Receivables or (c) vessels, aircraft or any other property subject to any certificate of title or other registration statute of the United States, any state or other jurisdiction, except for personal vehicles owned by the Grantors and used by employees of the Grantors in the ordinary course of business.
4.6.    Investment Property.
(a)    The shares of Pledged Equity pledged by each Grantor hereunder constitute all the issued and outstanding equity interests of each Issuer owned by such Grantor.
(b)    All of the Pledged Equity issued by a Subsidiary of the Grantor has been duly and validly issued and is fully paid and nonassessable.
(c)    Each of the Intercompany Notes (if any) 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, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing).
(d)    Schedule 1 lists all Investment Property owned by each Grantor as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor).  Each Grantor is the record and beneficial owner of the Investment Property pledged by it hereunder that it purports to own, free of any and all Liens or options in favor of, or claims of, any other Person, except the security interest created by this Agreement and for Permitted Liens.
4.7.    Receivables.
(a)No amount payable to such Grantor under or in connection with any Receivable is evidenced by any Instrument or Chattel Paper which has not been delivered to Agent.
(b)The amounts represented by such Grantor to Lenders from time to time as owing to such Grantor in respect of the Receivables (to the extent such representations are required by any of the Loan Documents) will at all such times be accurate in all material respects, subject to the inability to collect Receivables in the ordinary course of business.
4.8.    Intellectual Property.
(a)    Schedule 4 lists all Intellectual Property owned by each Grantor in its own name (or a former name) on the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor).
(b)    On the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), all Intellectual Property owned by any Grantor is valid, subsisting, unexpired and enforceable, has not been abandoned and, to such Grantor’s knowledge, does not infringe on the intellectual property rights of any other Person.
(c)    Except as set forth in Schedule 4, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), none of the Intellectual Property owned by a Grantor is the subject of any licensing or franchise agreement pursuant to which such Grantor is the licensor or franchisor.
(d)    Except as set forth in Schedule 4, no holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity of, or any Grantor’s rights in, any Intellectual Property owned by any Grantor.
(e)    Except as set forth in Schedule 4, no action or proceeding is pending, or, to the knowledge of such Grantor, is threatened, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor) (i) seeking to limit, cancel or question the validity of any Intellectual Property or any Grantor’s interest therein, or (ii) which, if adversely determined, would materially and adversely affect the value of any Intellectual Property.  
(f)    Each Grantor owns and possesses or has a license or other right to use all Intellectual Property as is necessary for the conduct of the businesses of such Grantor as currently conducted, without any infringement, to such Grantor's knowledge, upon rights of others.
4.9.    Deposit Accounts and Other Accounts.  All Deposit Accounts and all other bank accounts, securities accounts and other accounts maintained by each Grantor as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), are described on Schedule 5 hereto, which description includes for each such account the name of the Grantor maintaining such account, the name, address, telephone and fax numbers of the financial institution at which such account is maintained, and the account number and the account officer, if any, of such account.
4.10.    Excluded Property.  Except as set forth in Schedule 7, each Grantor represents, warrants and covenants that it does not, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), own any Excluded Property, which by itself is, and/or when aggregated, are material to the business of such Grantor.
		
	5.
	Covenants.

Each Grantor covenants and agrees with Agent and Lenders that, from and after the date of this Agreement until the Secured Obligations shall have been Paid in Full:
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 (other than, for greater certainty, a license agreement), Certificated Security or Chattel Paper, such Instrument, Certificated Security or Chattel Paper shall be promptly delivered to Agent, duly indorsed in a manner reasonably satisfactory to Agent, to be held as Collateral pursuant to this Agreement and in the case of Electronic Chattel Paper, the applicable Grantor shall cause Agent to have control thereof within the meaning set forth in Section 9‐105 of the Code.  In the event that a Default or an Event of Default shall have occurred and be continuing, upon the request of Agent, any Instrument, Certificated Security or Chattel Paper not theretofore delivered to Agent and at such time being held by any Grantor shall be immediately delivered to Agent, duly indorsed in a manner satisfactory to Agent, to be held as Collateral pursuant to this Agreement and in the case of Electronic Chattel Paper, the applicable Grantor shall cause Agent to have control thereof within the meaning set forth in Section 9‐105 of the Code.
5.2.    Maintenance of Perfected Security Interest; Further Documentation.
(e)    Except as expressly permitted by this Agreement or the Credit Agreement, 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, provided that, unless otherwise required by Agent in writing at any time following the occurrence and continuance of an Event of Default, such security interest need not be perfected in property of the Grantor in which a security interest may not be perfected by filing a financing statement under the Code, having a value less than $100,000 individually or $350,000 in the aggregate.
(f)    Such Grantor will furnish to Agent and Lenders from time to time statements and schedules further identifying and describing the assets and property of such Grantor and such other reports in connection therewith as Agent may reasonably request, all in reasonable detail.
(g)    At any time and from time to time, upon the reasonable written request of 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 Agent 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 (i) filing any financing or continuation statements under the Code (or other similar laws) in effect in any jurisdiction with respect to the security interests created hereby, (ii) in the case of Investment Property, Deposit Accounts, Electronic Chattel Paper and Letter of Credit Rights and any other relevant Collateral, taking any actions necessary to enable Agent to obtain “control” (within the meaning of Code) with respect thereto, in each case pursuant to documents in form and substance reasonably satisfactory to Agent, provided that so long as no Event of Default has occurred and is continuing, no Grantor shall be required to cause the Agent to have control over such Investment Property, Electronic Chattel Paper, Letter of Credit Rights or other relevant Collateral (other than any Deposit Account) having a value less than $100,000 individually or $350,000 in the aggregate; provided  further that only during the continuance of an Event of Default and if requested by Agent, shall any Grantor be obligated to deliver, to the extent permitted by law, any original motor vehicle certificates of title received by such Grantor from the applicable secretary of state or other Governmental Authority with information reflecting Agent’s security interest recorded therein.
(h)    Such Grantor authorizes Agent to, at any time and from time to time, at such Grantor’s expense, file financing statements, continuation statements, and amendments thereto that describe the Collateral (including describing the Collateral as “all assets” of each Grantor, or words of similar effect), and which contain any other information required pursuant to the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment, and each Grantor agrees to furnish any such information to Agent promptly upon request.  Any such financing statement, continuation statement, or amendment may be signed (to the extent signature of a Grantor is required under applicable law) by Agent on behalf of any Grantor and may be filed at any time in any jurisdiction.
(i)    Such Grantor shall, at any time and from time to time, take such steps as Agent may reasonably request (i) to obtain an acknowledgement, in form and substance reasonably satisfactory to Agent, of any bailee having possession of any of the Collateral (provided that such Grantor shall not be required to obtain any such acknowledgement as it relates to Collateral having a value less than $100,000 individually or $350,000 in the aggregate unless otherwise required by Agent in writing at any time following the occurrence and continuance of an Event of Default), stating that the bailee holds such Collateral for Agent, (ii) to obtain “control” of any Letter-of-Credit Rights, or Electronic Chattel Paper (within the meaning of the Code) with any agreements establishing control to be in form and substance reasonably satisfactory to Agent (provided that such Grantor shall not be required to ensure Agent has “control” over any such Collateral described in this clause (ii) having a value less than $100,000 individually or $350,000 in the aggregate unless otherwise required by Agent in writing at any time following the occurrence and continuance of an Event of Default) and (iii) otherwise to ensure the continued perfection and priority of Agent’s security interest in any of the Collateral and of the preservation of its rights therein to the extent required in this Agreement and the Credit Agreement (subject to the conditions and exceptions in this Agreement).
(j)    Without limiting the generality of the foregoing, if such Grantor at any time holds or acquires an interest in any Electronic Chattel Paper or any “transferable record”, as that term is defined in Section 201 of the federal Electronic Signatures in Global and National Commerce Act, or in §16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, such Grantor shall promptly notify Agent thereof and, at the request of Agent, shall take such action as Agent may reasonably request to vest in Agent “control” under Section 9-105 of the Code of such electronic chattel paper or control under Section 201 of the federal Electronic Signatures in Global and National Commerce Act or, as the case may be, §16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record. Agent agrees with the Grantors that Agent will arrange, pursuant to procedures reasonably satisfactory to Agent and so long as such procedures will not result in Agent’s loss of control, for the Grantors to make alterations to such electronic chattel paper or transferable record permitted under Section 9-105 of the Code or, as the case may be, Section 201 of the federal Electronic Signatures in Global and National Commerce Act or §16 of the Uniform Electronic Transactions Act for a party in control to make without loss of control, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by any Grantor with respect to such electronic chattel paper or transferable record.
5.3.    Changes in Locations, Name, etc.  Except as permitted by the Credit Agreement, each Grantor shall not, except upon 30 days’ prior written notice to Agent and delivery to Agent of (a) all additional financing statements and other documents reasonably requested by Agent as to the validity, perfection and priority of the security interests provided for herein and (b) if applicable, a written supplement to Schedule 3 showing any additional location at which Inventory or Equipment having a fair market value greater than $100,000 at any single location shall be kept:
(i)    permit any of the Inventory or Equipment to be kept at a location other than those listed on Schedule 3; provided, that up to $100,000 in fair market value of any such Inventory and Equipment may be kept at other single locations;
(ii)    change the location of its chief executive office from that specified on Schedule 2 or in any subsequent notice delivered pursuant to this Section 5.3; or
(iii)    change its name or corporate structure (including without limitation, the merger into or with any other Person).
Such Grantor shall not change its jurisdiction of organization without the prior written consent of Required Lenders, which consent will not be unreasonably withheld or delayed.
5.4.    Notices.  Such Grantor will advise Agent promptly, in reasonable detail, of:
(a)    any Lien (other than Permitted Liens) on any of the Collateral; and
(b)    the occurrence of any other event which could reasonably be expected to have a material and adverse effect on the aggregate value of the Collateral or on the Liens created hereby.
5.5.    Investment Property.
(e)    If such Grantor shall become entitled to receive or shall receive any certificate, 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 of the Pledged Equity, or otherwise in respect thereof, such Grantor shall accept the same as the agent of Agent and Lenders, hold the same in trust for the benefit of the Agent and Lenders and deliver the same forthwith to Agent in the exact form received, duly indorsed (but without any representation or warranty) by such Grantor to Agent, if required, together with an undated instrument of transfer covering such certificate duly executed in blank by such Grantor and with, if Agent so reasonably request, signature guranateed, to be held by Agent, subject to the terms hereof, as additional Collateral for the Secured Obligations.  Upon the occurrence and during the continuance of an Event of Default, (i) any sums paid upon or in respect of the Investment Property upon the liquidation or dissolution of any Issuer shall be paid over to Agent to be held, at Agent’s option, either by it hereunder as additional Collateral for the Secured Obligations or applied to the Secured Obligations as provided in Section 6.5, and (ii) in case any distribution of capital shall be made on or in respect of the Investment Property or any property shall be distributed upon or with respect to the Investment Property pursuant to the recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the property so distributed shall, unless otherwise subject to a perfected Lien in favor of Agent, be delivered to Agent to be held, at Agent’s option, either by it hereunder as additional Collateral for the Secured Obligations or applied to the Secured Obligations as provided in Section 6.5.  Upon the occurrence and during the continuance of an Event of Default, if any sums of money or property 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 Agent, hold such money or property in trust for Lenders, segregated from other funds of such Grantor, as additional Collateral for the Secured Obligations.
(f)    Without the prior written consent of Agent, such Grantor will not, so long as an Event of Default has occurred and is continuing and to the extent permitted by the Credit Agreement, (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 or interests convertible into or granting the right to purchase or exchange for any equity interests of any nature of any Issuer, (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) other than, with respect to Investment Property not constituting Pledged Equity or Pledged Notes, and such action which is not prohibited by the Credit Agreement, (iii) create, incur or permit to exist any Lien 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 Permitted Liens, or (iv) enter into any agreement or undertaking restricting the right or ability of such Grantor or Agent to sell, assign or transfer any of the Investment Property or Proceeds thereof, except, with respect to such Investment Property, shareholders’ agreements entered into by such Grantor with respect to Persons in which such Grantor maintains an ownership interest of 50% or less. 
(g)    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, (ii) it will notify Agent promptly in writing of the occurrence of any of the events described in Section 5.5(a) with respect to the Investment Property issued by it and (iii) the terms of Sections 6.3(c) shall apply to such Grantor with respect to all actions that may be required of it pursuant to Section 6.3(c) regarding the Investment Property issued by it.
5.6.    Receivables.
(a)    Other than in the ordinary course of business, without the prior written consent of Agent, such Grantor will not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could materially adversely affect the value thereof, to the extent that any action in clauses (i) - (iv) above could reasonably be expected to have a Material Adverse Effect.
(b)    Such Grantor will deliver to Agent a copy of each material demand, notice or document received by it that questions or calls into doubt the validity or enforceability of more than 5% of the aggregate amount of the then outstanding Receivables for all Grantors.
5.7.    Intellectual Property.
(g)    Such Grantor (either itself or through licensees) will (i) continue to use each Trademark on each and every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force free from any claim of abandonment for non-use, (ii) maintain as in the past the quality of products and services offered under such Trademark, (iii) use such Trademark with the appropriate notice of registration and all other notices and legends required by applicable law, (iv) not adopt or use any mark which is confusingly similar or a colorable imitation of such Trademark unless Agent, for the ratable benefit of Lenders, shall obtain a perfected security interest in such mark pursuant to this Agreement and the IP Security Agreement, and (v) not (and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way, to the extent that any action in clauses (i) - (v) could reasonably be expected to have a Material Adverse Effect.
(h)    Such Grantor (either itself or through licensees) will not do any act, or omit to do any act, whereby any Patent may become forfeited, abandoned or dedicated to the public, to the extent such act or omission could reasonably be expected to have a Material Adverse Effect.
(i)    Such Grantor (either itself or through licensees) (i) will employ each Copyright and (ii) will not (and will not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any material portion of the Copyrights may become invalidated or otherwise impaired and which could reasonably be expected to have a Material Adverse Effect.  Such Grantor will not (either itself or through licensees) do any act whereby any material portion of the Copyrights may fall into the public domain and which could reasonably be expected to have a Material Adverse Effect.
(j)    Such Grantor (either itself or through licensees) will not do any act that knowingly uses any Intellectual Property to infringe the intellectual property rights of any other Person.
(k)    Such Grantor will notify Agent promptly if it knows, or has reason to know, that any application or registration relating to any Intellectual Property may become forfeited, abandoned or dedicated to the public, or of any adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office, or any court or tribunal in any country) regarding, such Grantor’s ownership of, or the validity of, any Intellectual Property or such Grantor’s right to register the same or to own and maintain the same, except to the extent that such forfeiture, abandonment or dedication, or adverse determination or development would not reasonably be expected to have a Material Adverse Effect.
(l)    Whenever such Grantor, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office, or any similar office or agency in any other country or any political subdivision thereof, such Grantor shall report such filing to Agent concurrently with the next delivery of financial statements of Borrower pursuant to Section 6.1.1 or 6.1.2 of the Credit Agreement, as applicable.  Upon the request of Agent, such Grantor shall execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers as Agent may reasonably request to evidence Agent’s and Lenders’ security interest in any Copyright, Patent or Trademark and the goodwill and general intangibles of such Grantor relating thereto or represented thereby.
(m)    Such Grantor will take all reasonable and necessary steps to maintain and pursue each application referred to in Section 5.7(f), (and to obtain the relevant registration), except to the extent the failure to maintain and pursue such application would not reasonably be expected to have a Material Adverse Effect, and to maintain each registration of all Intellectual Property owned by it, except to the extent that the failure to maintain registration of all Intellectual Property owned by it would not reasonably be expected to have a Material Adverse Effect.
(n)    In the event that any Intellectual Property is infringed upon or misappropriated or diluted by a third party, such Grantor shall (i) take such actions as such Grantor shall reasonably deem appropriate under the circumstances to protect such Intellectual Property and (ii) if such Intellectual Property is of material economic value, promptly notify Agent after it learns thereof and, to the extent, in its reasonable judgment, such Grantor determines it appropriate under the circumstances, sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution.
5.8.    Deposit Accounts and Other Accounts.  Such Grantor hereby authorizes the financial institutions at which such Grantor maintains a Deposit Account, other bank account, securities account or other account to provide Agent with such information with respect to such account as Agent may from time to time reasonably request, and each Grantor hereby consents to such information being provided to Agent.  Such Grantor will cause each financial institution at which such Grantor maintains a Deposit Account or other account to enter into a control agreement or other similar agreement with Agent and such Grantor, in form and substance reasonably satisfactory to Agent, in order to give Agent “control” (within the meaning set forth in Section 9‐104 of the Code) of such account, except for Exempt Accounts.
5.9.    Other Matters.  Such Grantor shall, within the time period required pursuant to the Post-Closing Agreement, cause to be delivered to Agent, at Agent’s request, a Collateral Access Agreement with respect to (a) each bailee with which such Grantor keeps Inventory or other assets as of the Closing Date having a value in excess of $125,000 and (b) each landlord which leases real property (and the accompanying facilities) to such Grantor as of the Closing Date at which it maintains its chief executive office or a substantial amount of its books or records. If such Grantor shall (x) cause to be delivered Inventory or other property having a value in excess of $250,000 to any bailee after the Closing Date, such Grantor shall on or prior to such delivery cause such bailee to sign a Collateral Access Agreement or (y) enter into any lease for real property after the Closing Date at which it maintains its chief executive office or a substantial amount of its books and records, such Grantor shall on or prior to the first day of the term of such lease cause the landlord to sign a Collateral Access Agreement.
5.10.    Commercial Tort Claims.  If such Grantor shall at any time acquire any Commercial Tort Claim, such Grantor shall promptly notify Agent thereof in writing, therein providing a reasonable description and summary thereof, and upon delivery thereof to Agent, such Grantor shall be deemed to thereby grant to Agent (and such Grantor hereby grants to Agent) a security interest in such Commercial Tort Claim and all proceeds thereof, and such Grantor shall execute such documentation as Agent shall require in order to document and effectuate such grant of a security interest.
		
	6.
	Remedial Provisions.

6.1.    Certain Matters Relating to Receivables.
(k)    At any time and from time to time after the occurrence and during the continuance of an Event of Default, Agent shall have the right to make test verifications of the Receivables in any manner and through any medium that it reasonably considers advisable, and each Grantor shall furnish all such assistance and information Agent may reasonably require in connection with such test verifications.  At any time and from time to time after the occurrence and during the continuance of an Event of Default, upon Agent’s reasonable request and at the expense of the relevant Grantor, such Grantor shall cause independent public accountants or others reasonably satisfactory to Agent to furnish to Agent reports showing reconciliations, agings and test verifications of, and trial balances for, the Receivables.
(l)    If required by Agent at any time after the occurrence and during the continuance of an Event of Default, any payments of Receivables, when collected or received by or on behalf of any Grantor, (i) shall be forthwith (and, in any event, within 2 Business Days) deposited by such Grantor in the exact form received, duly indorsed (but without any representation or warranty) by such Grantor to Agent if required, in a collateral account maintained under the sole dominion and control of Agent, for application to the Secured Obligations in accordance with Section 6.5, and (ii) until so turned over, shall be held by such Grantor in trust for Agent and Lenders, segregated from other funds of such Grantor.  Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit.
(m)    At any time and from time to time after the occurrence and during the continuance of an Event of Default, at Agent’s request, each Grantor shall deliver to Agent all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the Receivables, including all original orders, invoices and shipping receipts.
6.2.    Communications with Obligors; Grantors Remain Liable.
(b)    Agent in its own name or in the name of others may at any time after the occurrence and during the continuance of an Event of Default communicate with obligors under the Receivables to verify with them to Agent’s reasonable satisfaction the existence, amount and terms of any Receivables.
(c)    Upon the request of Agent at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall notify obligors on the Receivables that the Receivables have been assigned to Agent for the ratable benefit of Lenders and that payments in respect thereof shall be made directly to Agent.
(d)    Anything herein to the contrary notwithstanding, each Grantor shall remain liable in respect of each of the Receivables 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.  Neither Agent nor any Lender shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by Agent or any Lender of any payment relating thereto, nor shall Agent or any Lender be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto), 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.
(e)    For the purpose of enabling Agent to exercise rights and remedies under this Agreement, each Grantor hereby grants to Agent, for the benefit of Agent and Lenders, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to such Grantor) to use, license or sublicense any Intellectual Property that constitutes part of the Collateral now owned or hereafter acquired by such Grantor, to the extent such Intellectual Property may be so licensed or sublicensed, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof.
6.3.    Investment Property.
(c)    Unless an Event of Default shall have occurred and be continuing and Agent shall have given notice to the relevant Grantor of Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted to receive all cash dividends and distributions, payments and Proceeds paid in respect of the Pledged Equity, the Pledged Notes and all other Investment Property that constitutes Collateral, to the extent permitted in the Credit Agreement, and to exercise all voting and other rights and any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such Pledged Equity, Pledged Notes and Investment Property (including 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 structure of any Issuer, or upon the exercise by such Grantor of any right, privilege or option pertaining to such Pledged Equity, Pledged Notes or Investment Property, and in connection therewith, the right to deposit and deliver any and all of such Pledged Equity, Pledged Notes and Investment Property with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as such Grantor may determine); provided, that no vote shall be cast or other right exercised or action taken which would be inconsistent with or result in any violation of any provision of the Credit Agreement, this Agreement or any other Loan Document.
(d)    If an Event of Default shall occur and be continuing, upon notice to the relevant Grantor,  Agent shall have the right to (i) receive any and all cash dividends and distributions, payments or other Proceeds paid in respect of the Pledged Equity, the Pledged Notes and all other Investment Property and make application thereof to the Secured Obligations in accordance with Section 6.5, (ii) register any or all of the Investment Property in the name of Agent or its nominee, (iii) exercise, or permit its nominee to exercise, all voting and other rights pertaining to such Investment Property, and (iv) exercise, or permit its nominee to exercise, 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 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 structure of any Issuer, or upon the exercise by any Grantor or 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 Agent may determine), all without liability except to account for property actually received by it, but Agent shall have no duty to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing.
(e)    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 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 and the Credit 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, distributions or other payments with respect to the Investment Property directly to Agent.
6.4.    Proceeds to be Turned Over To Agent.  In addition to the rights of Agent specified in Section 6.1 with respect to payments of Receivables, if an Event of Default shall occur and be continuing, all such Proceeds of Collateral received by or on behalf of any Grantor consisting of cash, checks and other cash equivalent items shall be held by such Grantor in trust for Agent and Lenders, segregated from other funds of such Grantor, and shall, at the written request of Agent, forthwith upon receipt by such Grantor, be turned over to Agent in the exact form received by such Grantor (duly indorsed (but without any representation or warranty) by such Grantor to Agent, if required).  All Proceeds received by Agent hereunder shall be applied to the Secured Obligations as provided in Section 6.5.
6.5.    Application of Proceeds.  If an Event of Default shall have occurred and be continuing, Agent shall apply all or any part of Proceeds held in any collateral account established pursuant hereto or otherwise received by Agent to the payment of the Secured Obligations in a manner that is consistent with the provisions of Section 2.10.2 of the Credit Agreement.
6.6.    Code and Other Remedies.  If an Event of Default shall occur and be continuing, Agent, on behalf of Lenders, 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 Secured Obligations, all rights and remedies of a secured party under the Code, or any other applicable foreign or domestic law.  Without limiting the generality of the foregoing, if an Event of Default shall occur or be continuing, 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 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 Agent or any Lender 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 with assumption of any credit risk.  Agent may disclaim any warranties that might arise in connection with any such lease, assignment, grant of option or other disposition of Collateral and have no obligation to provide any warranties at such time.  Agent or any Lender 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.  Such sales may be adjourned and continued from time to time with or without notice.  Agent shall have the right to conduct such sales on any Grantor’s premises or elsewhere and shall have the right to use any Grantor’s premises without charge for such time or times as Agent deems necessary or advisable.  Each Grantor further agrees after an Event of Default has occurred and is continuing, at Agent’s request, to assemble the Collateral and make it available to Agent at places which Agent shall reasonably select, whether at such Grantor’s premises or elsewhere.  Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.6, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of Agent and Lenders hereunder, including reasonable attorneys’ fees and disbursements, to the payment of the Secured Obligations in a manner that is consistent with the provisions of Section 2.10.2 of the Credit Agreement.  To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against Agent or any Lender arising out of the exercise by them of any rights hereunder, except to the extent such claims, damages or demands arise from the gross negligence, willful misconduct or bad faith of the Agent or Lenders.  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 so long as (a) it is given at least 15 days before such sale or other disposition, and (b) contains such information as may be prescribed by applicable law.
6.7.    Pledged Equity.  Each Grantor recognizes that Agent may be unable to effect a public sale of any or all the Pledged Equity, by reason of certain prohibitions contained in the Securities Act and other applicable 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.  Agent shall be under no obligation to delay a sale of any of the Pledged Equity for the period of time necessary to permit the Issuer thereof to register such securities or other interests for public sale under the Securities Act, or other applicable state securities laws, even if such Issuer would agree to do so.
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 for the Secured Obligations to be Paid in Full and the fees and disbursements of any attorneys employed by Agent or any Lender to collect such deficiency.
6.9.    Permitted Licenses.  Agent hereby covenants and agrees that in connection with any foreclosure or other exercise of Agent’s rights with respect to Permitted Licenses, Agent shall not terminate, limit, or otherwise adversely affect the rights of the licensees or sublicensees under such Permitted Licenses, so long as such licensee or sublicensee is not then otherwise in default under the applicable  Permitted License in a way that would permit the applicable licensor to terminate such Permitted License.
6.10.    Protective Advances. Notwithstanding any provision of any Loan Document, Agent, in its sole discretion shall have the right, but not any obligation, at any time that Grantors fail to do so, subject to any applicable cure periods permitted by or otherwise set forth in the Loan Documents, and from time to time, without prior notice, to: (i) discharge (at Borrower’s expense) taxes or Liens affecting any of the Collateral that have not been paid in violation of any Loan Document or that jeopardize Agent’s Lien priority in the Collateral; or (ii) make any other payment (at Borrower’s expense) for the administration, servicing, maintenance, preservation or protection of the Collateral (each such advance or payment set forth in clauses (i) and (ii) herein, a “Protective Advance”).  Agent shall be reimbursed for all Protective Advances pursuant to Section 2.9.1(b) and/or Section 2.10 of the Credit Agreement, as applicable, and any Protective Advances shall bear interest at the Default Rate from the date such Protective Advance is paid by Agent until it is repaid.  No Protective Advance by Agent shall be construed as a waiver by Agent, or any Lender of any Default, Event of Default or any of the rights or remedies of Agent or any Lender under any Loan Document.
6.11.    Actions in Concert. Section 9.12 of the Credit Agreement shall be incorporated herein by reference.
		
	7.
	Agent.

7.1.    Agent’s Appointment as Attorney-in-Fact, etc.
(f)    Each Grantor hereby irrevocably constitutes and appoints Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact and proxy 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 strictly carrying out the terms of this Agreement, 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 terms of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives Agent the power and right, on behalf of and at the expense of such Grantor, without notice to or assent by such Grantor, to do any or all of the following to the extent otherwise expressly permitted by the terms of this Agreement and the Credit Agreement (including the satisfaction of any requirement to give notice to such Grantor prior to doing any of the following):
(i)    in the name of such Grantor or its own name, or otherwise, take possession of and indorse (but without any representation or warranty) and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Receivable 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 reasonably deemed appropriate by Agent for the purpose of collecting any and all such moneys due under any Receivable or with respect to any other Collateral whenever payable;
(ii)    in the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as Agent may reasonably request to evidence Agent’s security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby;
(iii)    discharge Liens (other than Permitted Liens) levied or placed on or threatened against the Collateral, and effect any repairs or insurance called for by the terms of this 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 Section 6.6 or 6.7, any indorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and
(v)    (A) 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 Agent or as Agent shall direct; (B) 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; (C) sign and indorse (but without any representation or warranty) 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; (D) 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; (E)  defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (F) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as Agent may deem appropriate; (G) assign any Copyright, Patent or Trademark, throughout the world for such term or terms, on such conditions, and in such manner, as Agent shall in its sole discretion determine; (H) vote any right or interest with respect to any Investment Property; (I) order good standing certificates and conduct lien searches in respect of such jurisdictions or offices as Agent may deem appropriate; and (J) 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 Agent were the absolute owner thereof for all purposes, and do, at Agent’s option and such Grantor’s expense, at any time, or from time to time, all acts and things which Agent deems necessary to protect, preserve or realize upon the Collateral and Agent’s security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might do.
(g)    THE POWER-OF-ATTORNEY AND PROXY GRANTED HEREBY IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW.  SUCH PROXY SHALL BE EFFECTIVE AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY INVESTMENT PROPERTY ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF THE INVESTMENT PROPERTY OR ANY OFFICER OR AGENT THEREOF).  Each Grantor acknowledges and agrees that in any event such power-of-attorney and proxy is intended to and shall, to the fullest extent permitted by applicable law, be valid and irrevocable until (x) the Secured Obligations have been Paid in Full and (y) Lenders and Agent have no further obligations under the Loan Documents. Such power-of-attorney and proxy shall be valid and irrevocable as provided herein notwithstanding any limitations to the contrary set forth in the charter, bylaws or other organizational documents of the relevant entities.
(h)    Upon exercise of the proxy set forth herein, all prior proxies given by any Grantor with respect to any of the Investment Property (other than to Agent or otherwise pursuant to the Loan Documents) are hereby revoked, and until the Secured Obligations are Paid in Full no subsequent proxies (other than to Agent or otherwise under the Loan Documents) will be given with respect to any of the Investment Property.  To the extent permitted by this Agreement, Agent, as proxy, will be empowered and may exercise the irrevocable proxy to vote the Investment Property at any and all times, including but not limited to, at any meeting of shareholders, partners or members, as the case may be, however called, and at any adjournment thereof, or in any action by written consent, and may waive any notice otherwise required in connection therewith.  To the fullest extent permitted by applicable law, Agent shall have no agency, fiduciary or other implied duties to any Grantor or any other party when acting in its capacity as such attorney-in-fact or proxy.  Each Grantor hereby waives and releases any claims that it may otherwise have against Agent with respect to any breach or alleged breach of any such agency, fiduciary or other duty, other than claims resulting from the gross negligence, bad faith or willful misconduct of Agent.  Notwithstanding the foregoing grant of a power of attorney and proxy, Agent shall have no duty to exercise any such right or to preserve the same and shall not be liable for any failure to do so or for any delay in doing so.
(i)    Anything in Section 7.1(a) to the contrary notwithstanding, Agent agrees that it will not exercise any rights under the power of attorney provided for in this Section 7.1 unless an Event of Default shall have occurred and be continuing.
(j)    If any Grantor fails to perform or comply with any of its agreements contained herein, Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement at such Grantor’s sole cost and expense.
(k)    Each Grantor hereby ratifies all that such attorneys shall be authorized hereunder to 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 Agent.  Agent's sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession shall be to deal with it in the same manner as Agent deals with similar property for its own account. Neither Agent or any Lender nor any of their respective officers, directors, employees or agents shall be liable for any failure to demand, collect or realize upon any of the Collateral or for any delay in doing so (except to the extent Agent, such Lender or such officers, directors, employees or agents acted with gross negligence, bad faith or in willful misconduct as determined by a court of competent jurisdiction) 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 Agent and Lenders hereunder are solely to protect Agent’s and Lenders’ interests in the Collateral and shall not impose any duty upon Agent or any Lender to exercise any such powers.  Agent and Lenders 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 to the extent Agent or a Lender (or such officer, director, employee or agent) acted with gross negligence, bad faith or in willful misconduct as determined by a court of competent jurisdiction.
7.3.    Photocopy of this Agreement.  A photographic or other reproduction of this Agreement shall be sufficient as a financing statement or other filing or recording document or instrument for filing or recording in any jurisdiction.
7.4.    Authority of Agent.  Each Grantor acknowledges that the rights and responsibilities of Agent under this Agreement with respect to any action taken by Agent or the exercise or non-exercise by 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 Agent and Lenders, 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 Agent and the Grantors, Agent shall be conclusively presumed to be acting as agent for Lenders 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.
		
	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 10.1 of the Credit Agreement.
8.2.    Notices.  All notices, requests and demands to or upon Agent or any Grantor hereunder shall be effected in the manner provided for in Section 10.2 of the Credit Agreement and each such notice, request or demand to or upon any Grantor shall be addressed to such Grantor in care of Borrower at Borrower’s notice address set forth on Schedule 1.
8.3.    Indemnification by Grantors.  Each Grantor hereby agrees, on a joint and several basis, to indemnify, exonerate and hold Agent, each Lender and each of the officers, directors, employees, Affiliates and agents of Agent and each Lender (each a “Lender Party” and collectively, the “Lender Parties”) free and harmless from and against any and all actions, causes of action, suits, losses, liabilities, damages and expenses, including Legal Costs, but expressly excluding any consequential, special or lost profits damages (collectively, the “Indemnified Liabilities”), incurred by Lender Parties or any of them as a result of, or arising out of, or relating to any act or omission by Borrower or any of its officer, directors, agents, including without limitation (a) any tender offer, merger, purchase of equity interests, purchase of assets or other similar transaction financed or proposed to be financed in whole or in part, directly or indirectly, with the proceeds of any of the Loans, (b) the use, handling, release, emission, discharge, transportation, storage, treatment or disposal of any hazardous substance at any property owned or leased by any Grantor or any Subsidiary, (c) any violation of any Environmental Laws with respect to conditions at any property owned or leased by any Grantor or any Subsidiary or the operations conducted thereon, (d) the investigation, cleanup or remediation of offsite locations at which any Grantor or any Subsidiary or their respective predecessors are alleged to have directly or indirectly disposed of hazardous substances, or (e) the execution, delivery, performance or enforcement of this Agreement or any other Loan Document by any Lender Party, except to the extent any such Indemnified Liabilities result from the applicable Lender Party’s own gross negligence, bad faith, willful misconduct or breach of contract as determined by a court of competent jurisdiction.  If and to the extent that the foregoing undertaking may be unenforceable for any reason, each Grantor hereby agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.  The agreements in this Section 8.3 shall survive repayment of the Secured Obligations, any foreclosure under, or any modification, release or discharge of, any or all of the Collateral Documents and termination of this Agreement.
8.4.    Enforcement Expenses.
(o)    Each Grantor agrees, on a joint and several basis, to pay or reimburse on demand each Lender and Agent for all duly documented, reasonable out-of-pocket costs and expenses (including Legal Costs) incurred in collecting against any Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Agreement and the other Loan Documents.
(p)    Each Grantor agrees to pay, and to save Agent and Lenders 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.
(q)    The agreements in this Section 8.4 shall survive repayment of the Secured Obligations, any foreclosure under, or any modification, release or discharge of, any or all of the Collateral Documents and termination of this Agreement.
8.5.    Captions.  Captions used in this Agreement are for convenience only and shall not affect the construction of this Agreement.
8.6.    Nature of Remedies.  All Secured Obligations of each Grantor and rights of Agent and Lenders expressed herein or in any other Loan Document shall be in addition to and not in limitation of those provided by applicable law.  No failure to exercise and no delay in exercising, on the part of Agent or any Lender, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
8.7.    Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement.  Receipt by facsimile machine or in “.pdf” format through electronic mail of any executed signature page to this Agreement or any other Loan Document shall constitute effective delivery of such signature page, unless stated otherwise in such correspondence.  This Agreement and the other Loan Documents to the extent signed and delivered by means of a facsimile machine or other electronic transmission (including “.pdf”), shall be treated in all manner and respects and for all purposes as an original agreement or amendment and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto or to any such other Loan Document shall raise the use of a facsimile machine or other electronic transmission to deliver a signature or the fact that any signature or agreement or amendment was transmitted or communicated through the use of a facsimile machine or other electronic transmission as a defense to the formation or enforceability of a contract and each such party forever waives any such defense.
8.8.    Severability.  The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument or agreement required hereunder.
8.9.    Entire Agreement.  This Agreement, together with the other Loan Documents, embodies the entire agreement and understanding among the parties hereto and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof and any prior arrangements made with respect to the payment by any Grantor of (or any indemnification for) any fees, costs or expenses payable to or incurred (or to be incurred) by or on behalf of Agent or Lenders.
8.10.    Successors; Assigns.  This Agreement shall be binding upon Grantors, Lenders and Agent and their respective successors and assigns, and shall inure to the benefit of Grantors, Lenders and Agent and the successors and assigns of Lenders and Agent.  No other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents.  No Grantor may assign or transfer any of its rights or Obligations under this Agreement without the prior written consent of Agent.
8.11.    Governing Law.  THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS CODE).
8.12.    Forum Selection; Consent to Jurisdiction.  ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK.  EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE.  EACH PARTY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, U.S. FIRST CLASS POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK.  EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
8.13.    Waiver of Jury Trial.  EACH GRANTOR, AGENT AND EACH LENDER, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
8.14.    Set-off.  Each Grantor agrees that Agent and each Lender have all rights of set-off and bankers’ lien provided by applicable law, and in addition thereto, each Grantor agrees that at any time any Event of Default has occurred and is continuing, Agent and each Lender may apply to the payment of any Secured Obligations, whether or not then due, any and all balances, credits, deposits, accounts or moneys of such Grantor then or thereafter with Agent or such Lender.
8.15.    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)    it has received a fully executed copy of this Agreement;
(c)    neither Agent nor any Lender 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 Agent and Lenders, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and
(d)    no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among Lenders or among the Grantors and Lenders.
8.16.    Additional Grantors.  Each Loan Party that is required to become a party to this Agreement pursuant to Section 6.8 of the Credit Agreement shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Loan Party of a joinder agreement in the form of Annex I hereto.
8.17.    Releases.
(a)    At such time as the Secured Obligations have been Paid in Full, the Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Grantors.  At the request and sole expense of any Grantor following any such termination, Agent shall deliver to the Grantors any Collateral held by Agent hereunder, and execute and deliver to the Grantors such documents as the Grantors shall reasonably request to evidence such termination.
(b)    If any of the Collateral shall be sold or otherwise disposed of by any Grantor in a transaction permitted by the Credit Agreement, then Agent, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other documents reasonably necessary or desirable for the release of the Liens created hereby on such Collateral, so long as Borrower delivers to Agent a certificate of an officer of Borrower as to such sale or disposition being made in compliance with the Loan Documents.  At the request and sole expense of Borrower, a Subsidiary Guarantor shall be released from its obligations hereunder in the event that all the equity interests of such Subsidiary Guarantor shall be sold, transferred, liquidated, dissolved or otherwise disposed of in a transaction permitted by the Credit Agreement; provided that Borrower shall have delivered to Agent, with reasonable notice prior to the date of the proposed release, a written request for release identifying the relevant Subsidiary Guarantor and the terms of the sale or other disposition in reasonable detail, including the price thereof and any expenses in connection therewith, together with a certification by Borrower stating that such transaction is in compliance with the Credit Agreement and the other Loan Documents.
8.18.    Obligations and Liens Absolute and Unconditional.  Each Grantor understands and agrees that the obligations of each Grantor under this Agreement shall be construed as continuing, absolute and unconditional without regard to (a) the validity or enforceability of any Loan Document, any of the Secured Obligations or any other collateral security therefor or guaranty or right of offset with respect thereto at any time or from time to time held by Agent or any Lender, (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 any Grantor or any other Person against Agent or any Lender, or (c) any other circumstance whatsoever (with or without notice to or knowledge of any Grantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of any Grantor for the Secured Obligations, in bankruptcy or in any other instance.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Grantor, Agent or any Lender 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 any other Grantor or any other Person or against any collateral security or guaranty for the Secured Obligations or any right of offset with respect thereto, and any failure by Agent or any Lender to make any such demand, to pursue such other rights or remedies or to collect any payments from any other Grantor or any other Person or to realize upon any such collateral security or guaranty or to exercise any such right of offset, or any release of any other Grantor or any other Person or any such collateral security, guaranty or right of offset, shall not relieve any Grantor 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 Agent or any Lender against any Grantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.
8.19.    Reinstatement.  This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor or any Issuer for liquidation or reorganization, should any Grantor or any Issuer become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor’s or any Issuer’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference”, “fraudulent conveyance”, or otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.
8.20.    Conflicting Terms. In the event of any conflict or inconsistency between the terms of this Agreement and the terms of the Credit Agreement, the terms of the Credit Agreement shall control.
8.21.    Subordination.    The security interest granted herein is subject to an Intercreditor Agreement between Agent and ACF.  In the event of any conflict or inconsistency between the terms of such Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement shall control.

[Signature page follows]

Each of the undersigned has caused this Guarantee and Collateral Agreement to be duly executed and delivered as of the date first above written.
GRANTOR:

HOOPER HOLMES, INC.,
a New York corporation

By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    Chief Executive Officer and President

HOOPER WELLNESS, LLC
a Kansas limited liability company

By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    Chief Executive Officer and President

JEFFERSON ACQUISITION, LLC,
a Kansas limited liability company

By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    Chief Executive Officer and President

HOOPER INFORMATION SERVICES, INC.,
a New Jersey corporation

By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    Chief Executive Officer and President

MID-AMERICA AGENCY SERVICES, INCORPORATED,
a Nebraska corporation

By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    Chief Executive Officer and President

TEG ENTERPRISES, INC.,
a Nebraska corporation

By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    Chief Executive Officer and President

HOOPER DISTRIBUTION SERVICES, LLC,
a New Jersey limited liability company

By:  Hooper Homes, Inc.,
its Manager 
 
 
By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    Chief Executive Officer and President

HOOPER KIT SERVICES, LLC,
a Kansas limited liability company

By:  Hooper Homes, Inc.,
its sole Member 
 
 
By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    Chief Executive Officer and President

AGENT:

SWK FUNDING LLC,
as Agent

By: SWK Holdings Corporation,
its sole Manager 
 
 
By:    /s/ Brett Pope 
Name:    Brett Pope
Title:    Chief Executive Officer

SCHEDULE 1 
 
INVESTMENT PROPERTY

A.    PLEDGED EQUITY
None.

B.    PLEDGED NOTES
None.

C.    OTHER INVESTMENT PROPERTY
None.

D.    NOTICE ADDRESS
Hooper Holmes, Inc.
560 N. Rogers Road
Olathe, KS 66062

SCHEDULE 2
 
GRANTOR INFORMATION
	
					
	Grantor 
(exact legal name)
	Jurisdiction of Organization
	Federal Employer Identification Number
	Chief Executive Office
	Organizational Identification Number

	Hooper Wellness, LLC
	Kansas
	47-3646005
	560 N. Rogers Road
Olathe, KS 66062
	7921356

	Jefferson Acquisitions, LLC
	Kansas
	None
	560 N. Rogers Road
Olathe, KS 66062
	4904777

	Hooper Holmes, Inc.
	New York
	22-1659359
	560 N. Rogers Road
Olathe, KS 66062
	27454

	Hooper Distribution Services, LLC
	New Jersey
	55-0796838
	560 N. Rogers Road
Olathe, KS 66062
	600149871

	Hooper Information Services, Inc.
	New Jersey
	22-2934927
	560 N. Rogers Road
Olathe, KS 66062
	100393789

	Hooper Kit Services, LLC
	Kansas
	48-1208378
	560 N. Rogers Road
Olathe, KS 66062
	2672012

	Mid-America Agency Services, Inc.
	Nebraska
	47-0720501
	560 N. Rogers Road
Olathe, KS 66062
	971644

	TEG Enterprises, Inc.
	Nebraska
	47-0786199
	560 N. Rogers Road
Olathe, KS 66062
	1337331

SCHEDULE 3

A.    COLLATERAL LOCATIONS
	
			
	Grantor
	Collateral Location or
Place of Business
(including chief executive office)
	Owner/Lessor
(if leased)

	Hooper Wellness, LLC
	560 N. Rogers Road
Olathe, KS 66062
	96-OP Prop, L.L.C.

	Jefferson Acquisitions, LLC
	560 N. Rogers Road
Olathe, KS 66062
	96-OP Prop, L.L.C.

	Hooper Holmes, Inc.
	560 N. Rogers Road
Olathe, KS 66062
	96-OP Prop, L.L.C.

	Hooper Distribution Services, LLC
	560 N. Rogers Road
Olathe, KS 66062
	96-OP Prop, L.L.C.

	Hooper Information Services, Inc.
	560 N. Rogers Road
Olathe, KS 66062
	96-OP Prop, L.L.C.

	Hooper Kit Services, LLC
	560 N. Rogers Road
Olathe, KS 66062
	96-OP Prop, L.L.C.

	Mid-America Agency Services, Inc.
	560 N. Rogers Road
Olathe, KS 66062
	96-OP Prop, L.L.C.

	TEG Enterprises, Inc.
	560 N. Rogers Road
Olathe, KS 66062
	96-OP Prop, L.L.C.

B.    COLLATERAL IN POSSESSION OF LESSOR, 
    BAILEE, CONSIGNEE OR WAREHOUSEMAN
	
			
	Grantor
	Collateral
	Lessor/Bailee/Consignee/Warehouseman

	None.
	All Collateral (other than Excluded Collateral) located at the leased premises.

	 

	 
	 
	 

	 
	 
	 

SCHEDULE 4 
 
INTELLECTUAL PROPERTY
Patents
None.

See Exhibit Schedule 4.1 – Inventory of URL and domain name registration (Part 1)
See Exhibit Schedule 4.2 – Inventory of URL and domain name registration (Part 2)

 
Copyrights
None.

Trademarks

	
				
	Trademark
	Application Number/Date
	Registration Number/Date
	Status

	HOOPER HOLMES

	75/789,749
September 1, 1999
	2,438,158
March 27, 2001
	Registered

	HOOPER HOLMES & LOGO
	77/288,338
September 25, 2007
	3,559,666
January 13, 2009
	Registered

Mask Works
None.

The following Intellectual Property acquired by Jefferson Acquisition, LLC in the Project Jefferson:
	
			
	Registered IP
	Trade names:  Accountable Health Solutions
Trademarks:  None
Service marks:  iConnect (unregistered service mark)
Domain names:

	 
	fbtwellness.com
	nhwellness365.com

	 
	fhlbwellness.com
	nipponlifewellness.com

	 
	fortinetwellness.com
	opecwellness.com

	 
	gafwellness.com
	owenwellness.com

	 
	gmchealthquest.com
	pathtowellness.info

	 
	gmchealthquestion.org
	pfgwellness.com

	 
	gpwellnesship.com
	phillipsmedisizestayingpositive.com

	 
	greenhillsrcwellness.com
	pioneerwellnesscenter.com

	 
	hayneedlewellness.com
	pmcwellnessworks.com

	 
	healthmatterstx.com
	principalwellnesscompany.com

	 
	hillviewfitforlife.com
	proliancewellness.com

	 
	hwy2hlth.com
	psplwell.com

	 
	hyveewellness.com
	pvmchealthwise.com

	 
	jdsucanadahealthyconnections.com
	pwc123.com

	 
	jdsuhealthyconnections.com
	pwc1234.com

	 
	jmwhighqualityliving.com
	pwc1234.xyz

	 
	jslwellness.com
	pwcemployees.com

	 
	konamipath.com
	regalbeloitwellness.com

	 
	kpsfit.com
	regalwellnesscanada.com

	 
	ksmwellness.com
	regalwellnessmexico.com

	 
	lendmarkhealthfit.com
	rsiwellness.com

	 
	livewellchildrens.com
	schurzwellness.com

	 
	livewellmbi.com
	sgiwellness.com

	 
	livewellmoritz.com
	sncwellnessforus.com

	 
	lnajourneytowellness.com
	srabrightrewards.com

	 
	mccainwellnessforlife.com
	suncokewellness.com

	 
	measwellness.com
	swsinvestinwellness.com

	 
	mehcwellness.com
	takeaction.co

	 
	meriterwellness.com
	thisisnoblewellness.com

	 
	meritresourcesbenefits.com
	thompsoncoburnwellness.com

	 
	meritwellness.com
	ticcraftwellness.com

	 
	metalsaleswellness.com
	totalfitteam.com

	 
	mgcommittobefit.com
	totallyfitteam.com

	 
	mhawellnessforlife.com
	trbridgetohealth.com

	 
	mhpbbt.com
	trihydrowellness.com

	 
	muscowellness.com
	twmcwellness.com

	 
	myaccountablehealthwellness.com
	walkingwarriors.com

	 
	myexpresswellness.com
	wellmarkwellness.com

	 
	myhealthymac.com
	wellnessatreliance.com

	 
	myjmwellness.com
	wellnessbartwest.com

	 
	mykiewitwellness.com
	wellnessfourme.com

	 
	myliihealthmatters.com
	wellnessvitalsigns.com

	 
	myprincipalwellness.com
	window2wellness.com

	 
	myrestorewellness.com
	winegardwellness.com

	 
	myunitywellness.com
	diabetesconnected.com

	 
	ncrwellness.com
	wellnessconnectasthma.com

	 
	newwestwellness.com
	wellnessconnectdiabetes.com

	 
	nfpwellness.com
	wellnessconnectsleep.com

	IP owned
	•    Accountable Health Solutions Wellness Portal:  A key aspect of the Accountable Health Solutions business is its internally developed internet-based wellness portal.  The portal is customizable and flexible.  The portal contains and displays key client and member-facing information, including a wellness assessment and educational materials
•    iConnect.

	IP licensed
	AppDynamaics
AssureBridge
Atlassian
Kenai Design Studio (WMS)
Navigate Wellness, LLC, d/b/a Live Health America (LHA)
Orbeon, Inc.
Qlik Tech Inc.
Rackspace
Xtivia Inc / Liferay
Iron. Io
MailGun
MySql Clustering
Nprinting
Barracuda

	Software related to the business (other than off-the-shelf, shrink-wrapped or click-wrapped)
	AppDynmaics
Orbeon, Inc.
Qlik Tech Inc
Rackspace
Xtivia Inc / Liferay

SCHEDULE 5 
 
DEPOSIT ACCOUNTS AND OTHER ACCOUNTS
	
					
	

Bank
	Account #
	Name on Account
	Type
	Status

	Central Bank of the Midwest
	*****8928
	Hooper Holmes Inc
	Checking
	Open

	Central Bank of the Midwest
	*****4502
	Hooper Kit Services, LLC
	Checking
	Open

	Central Bank of the Midwest
	*****5233
	Hooper Kit Services, LLC
	Lockbox
	Open

	Central Bank of the Midwest
	*****8944
	Hooper Information Services Inc
	Checking
	Open

	Central Bank of the Midwest
	*****8936
	APS - Hooper Holmes Inc
	Checking
	Open

	American National Bank
	******4939
	Mid-America Agency Services
	Checking
	Open

	American National Bank
	******9328
	Mid-America Agency Services
	Checking
	Closed

	TD AmeriTrade
	******2525
	Hooper Holmes Inc
	Checking
	Open

	TD AmeriTrade
	******3119
	Hooper Holmes Inc
	Money Market
	Open

SCHEDULE 6 
 
COMMERCIAL TORT CLAIMS
1.    Potential claim against examiners arising out of their fraudulent billing practices.  This claim and the prospects for recovering are still being investigated by Borrower.  No claim has been filed in court.   

SCHEDULE 7 
 
EXCLUDED PROPERTY
None.

SCHEDULE 8 
 
HEALTH CARE INSURANCE RECEIVABLES
None.
ANNEX I 
 
FORM OF JOINDER TO GUARANTEE AND COLLATERAL AGREEMENT
This JOINDER AGREEMENT (this “Agreement”) dated as of [____________], 20[__] is executed by the undersigned for the benefit of SWK Funding LLC, as Agent (the “Agent”) in connection with that certain Guarantee and Collateral Agreement dated as of April 17, 2015 among the Grantors party thereto and Agent (as amended, supplemented or modified from time to time, the “Guarantee and Collateral Agreement”).  Capitalized terms not otherwise defined herein are being used herein as defined in the Guarantee and Collateral Agreement.
Each Person signatory hereto is required to execute this Agreement pursuant to Section 8.16 of the Guarantee and Collateral Agreement.
NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each signatory hereby agrees as follows:
1.    Each such Person assumes all the obligations of a Grantor and a Guarantor under the Guarantee and Collateral Agreement and agrees that such Person is a Grantor and a Guarantor and bound as a Grantor and a Guarantor under the terms of the Guarantee and Collateral Agreement, as if it had been an original signatory to the Guarantee and Collateral Agreement.  In furtherance of the foregoing, such Person hereby (i) assigns, pledges and grants to Agent a security interest in all of its right, title and interest in and to the Collateral owned thereby to secure the Secured Obligations and (ii) guarantees the prompt and complete payment and performance by Borrower when due (whether at the stated maturity, by acceleration or otherwise) of Borrower Obligations.
2.    Schedules 1, 2, 3, 4, 5, 6, 7, and 8 of the Guarantee and Collateral Agreement are hereby amended to add the information relating to each such Grantor set forth in Schedules 1, 2, 3, 4, 5, 6, 7, and 8, respectively, hereof.  Each such Person hereby makes to Agent the representations and warranties set forth in the Guarantee and Collateral Agreement applicable to such Person and the applicable Collateral and confirms that such representations and warranties are true and correct after giving effect to such amendment to such Schedules.
3.    In furtherance of its obligations under Section 5.2 of the Guarantee and Collateral Agreement, each such Person  authorizes Agent to file appropriately complete Code financing statements naming such person or entity as debtor and Agent as secured party, and describing the Collateral, and agrees to execute and deliver such other documentation as Agent (or its successors or assigns) may require to evidence, protect and perfect the Liens created by the Guarantee and Collateral Agreement, as modified hereby.
4.    Each such Person’s address and fax number for notices under the Guarantee and Collateral Agreement shall be that of the Borrower as set forth in the Guarantee and Collateral Agreement.
5.    This Agreement shall be deemed to be part of, and a modification to, the Guarantee and Collateral Agreement and shall be governed by all the terms and provisions of the Guarantee and Collateral Agreement, with respect to the modifications intended to be made to such agreement, which terms are incorporated herein by reference, are ratified and confirmed and shall continue in full force and effect as valid and binding agreements of each such person or entity enforceable against such person or entity.  Each such person or entity hereby waives notice of Agent’s acceptance of this Agreement.  Each such person or entity will deliver an executed original of this Agreement to Agent.
[add signature block for each new Grantor and an acknowledgement by each existing Grantor]

#35080813_v4exhibit10.2(c)intercreditoragmt

    

INTERCREDITOR AGREEMENT
THIS INTERCREDITOR AGREEMENT dated as of April 17, 2015 (this "Agreement") by SWK Funding LLC (in its individual capacity, “SWK”), as Agent for the lenders party to the Credit Agreement  of even date herewith among Hooper Holmes, Inc., a New York corporation (the “Borrower”), the lenders party thereto (the “Junior Lenders”), and SWK, as agent (the “Agent”) for the Junior Lenders (the Agent and the Junior Lenders being hereinafter referred to collectively as the "Junior Lender"), in favor of ACF FinCo I LP, as assignee of Keltic Financial Partners II, LP, a Delaware limited partnership (the “Senior Lender”).
W I T N E S S E T H:
WHEREAS, the Junior Lender desires to make a second lien term loan to the Borrower in the original principal amount of $5,000,000 (such loan, including any amendment, restatement, extension or other modification of such loan and any promissory note or documentation related thereto, the “Junior Loan”);
WHEREAS, the Borrower and its wholly owned subsidiaries, Hooper Wellness, LLC (“Hooper Wellness”), Hooper Distribution Services, LLC, Hooper Information Services, Inc., Hooper Kit Services, LLC, Mid-America Agency Services, Incorporated and TEG Enterprises, Inc., and Jefferson Acquisition, LLC, a wholly owned subsidiary of Hooper Wellness (collectively, the “Hooper Subsidiaries,” and together with the Borrower, the “Obligors”), are granting security interests in all of their assets as security for the Junior Obligations (as defined below), and the Hooper Subsidiaries are guarantying the Obligations (as defined in the Junior Loan Agreement referred to below);
WHEREAS, the Borrower and the Senior Lender are parties to the Loan and Security Agreement, dated as of February 28, 2013, as amended through the date hereof (the “Senior Loan Agreement”), between the Senior Lender and the Borrower; 
WHEREAS, the Senior Loan Agreement prohibits the incurrence by the Borrower of the secured indebtedness under the Junior Loan Agreement and the granting of a lien by the Borrower to secure such indebtedness and the Borrower has requested that the Senior Lender consent to the incurrence by the Borrower of such indebtedness and the granting of such lien; and
WHEREAS, the Senior Lender has agreed to consent to the incurrence by the Borrower of the indebtedness under the Junior Loan Agreement and the granting of a lien by the Borrower to secure such indebtedness subject to the Junior Lender having executed and delivered this Agreement subordinating the Liens and certain rights of the Junior Lender with respect to the Junior Obligations to the Liens and certain rights of the Senior Lender with respect to the Senior Obligations (as defined below); 
NOW, THEREFORE, in consideration of the promises contained herein, the Senior Lender and the Junior Lender agrees as follows:
Section 1.    Definitions.  Capitalized terms not otherwise defined herein shall have the meanings set forth in the Senior Loan Agreement.
"Bankruptcy Code" means the provisions of Title 11 of the United States Code, 11 U.S.C. §§101 et seq.
"Business Day" means any day of the year that is not a Saturday, a Sunday or a day on which banks are required or authorized to close in New York City.
“Collateral” means all assets and properties of any kind whatsoever, real or personal, tangible or intangible and wherever located, of the Obligors, whether now owned or hereafter acquired, upon which a Lien (including, without limitation, any Liens granted in any Insolvency Proceeding) is now or hereafter granted or purported to be granted by an Obligor in favor of a Secured Creditor, as security for all or any part of the Obligations.

"Debt Action" means (a) the filing of a lawsuit by any Secured Creditor solely to collect the Obligations owed to such Secured Creditor and not to exercise their secured creditor remedies in respect of the Collateral, (b) the demand by any Secured Creditor for accelerated payment of any and all of the Obligations owed to such Secured Creditor, (c) the filing of any notice of claim or statement of interest and the voting of any such claim or interest in any Insolvency Proceeding involving an Obligor, (d) the filing of any motion in any Insolvency Proceeding permitted under Section 4 or (e) the filing of any defensive pleading in any Insolvency Proceeding consistent with the terms of this Agreement; provided, however, that any Lien obtained by a Secured Creditor in respect of a Debt Action shall be subject to and governed by the terms of this Agreement.

“DIP Cap” shall have the meaning set forth in Section 4(b).

“DIP Financing” shall have the meaning set forth in Section 4(b).

“DIP Liens” shall have the meaning set forth in Section 4(b).

"Disposition" means any sale, lease, exchange, transfer or other disposition, and "Dispose" and shall have the correlative meaning.

"Enforcement Action" means (a) any action by any Secured Creditor to foreclose on the Lien of any Person in any Collateral, (b) any action by any Secured Creditor to take possession of (other than taking "possession" (as such term is defined in the UCC) for the sole purpose of perfecting such Secured Creditor's Lien on such Collateral), or sell or otherwise realize upon, or to exercise any other rights or remedies with respect to, any Collateral, including any Disposition after the occurrence of an Event of Default of any Collateral by an Obligor with the consent of, or at the direction of, a Secured Creditor so long as such Disposition is (i) on commercially reasonable terms, (ii) on an arm's length basis and (iii) to a buyer not an affiliate of an Obligor, (c) the taking of any other actions by a Secured Creditor against any Collateral, including the taking of control or possession of (other than taking "control" or  "possession" (as such terms are defined in the UCC)), or the exercise of any right of setoff with respect to, any Collateral and/or (d) the commencement by any Secured Creditor of any legal proceedings or actions against or with respect to an Obligor or an Obligor's property or assets or any Collateral to facilitate any of the actions described in clauses (a), (b) and (c) above, provided that this definition shall not include any Debt Action or the commencement of any Insolvency Proceeding.

“Excess Senior Obligations" means the Senior Obligations that are in excess of the Maximum Senior Principal Amount.

"Final Order" means an order of the applicable bankruptcy court or any other court of competent jurisdiction as to which the time to appeal, petition for certiorari, or move for reargument or rehearing has expired and as to which no appeal, petition for certiorari, or other proceedings for reargument or rehearing shall then be pending, or, in the event that an appeal, writ of certiorari, or reargument or rehearing thereof has been filed or sought, such order of such bankruptcy court or other court of competent jurisdiction shall have been affirmed by the highest court to which such order was appealed, or from which certiorari, reargument or rehearing was sought, and the time to take any further appeal, petition for certiorari or move for reargument or rehearing shall have expired, provided that the possibility that a motion under Rule 59 or Rule 60 of the Federal Rules of Civil Procedure or any analogous rule under the Federal Rules of Bankruptcy Procedure or applicable state court rules of civil procedure may be filed with respect to such order shall not cause such order not to be a Final Order.
“Insolvency Proceeding” shall mean, with respect to an Obligor any other any Person, the occurrence of any of the following:  (i) such Person shall be adjudicated insolvent or bankrupt or institutes proceedings to be adjudicated insolvent or bankrupt, or shall generally fail to pay or admit in writing its inability to pay its debts as they become due, (ii) such Person shall seek dissolution or reorganization or the appointment of a receiver, trustee, custodian or liquidator for it or a substantial portion of its property, assets or business or to effect a plan or other arrangement with its creditors, (iii) such Person shall make a general assignment for the benefit of its creditors, or consent to or acquiesce in the appointment of a receiver, trustee, custodian or liquidator for a substantial portion of its property, assets or business, (iv) such Person shall file a voluntary petition under any bankruptcy, insolvency or similar law, (v) such Person shall take any corporate or similar act in furtherance of any of the foregoing, or (vi) such Person, or a substantial portion of its property, assets or business, shall become the subject of an involuntary proceeding or petition for (A) its dissolution or reorganization or (B) the appointment of a receiver, trustee, custodian or liquidator, and (I) such proceeding shall not be dismissed or stayed within sixty days or (II) such receiver, trustee, custodian or liquidator shall be appointed.

“Junior Adequate Protection Lien” shall have the meaning set forth in Section 4(d).

"Junior Default" means any "Event of Default" under the Junior Loan Agreement.

"Junior Default Notice" means with respect to the Junior Loan Agreement, a written notice from the Junior Lender to the Senior Lender, with a copy to the Borrower, indicating that a Junior Default has occurred and describing such Junior Default in reasonable detail.

“Junior Guarantee and Collateral Agreement” shall mean that certain Guarantee and Collateral Agreement of even date herewith by the Obligors in favor of SWK, as Agent for the Junior Lenders, as amended, supplemented or otherwise modified from time to time.

 “Junior Loan Agreement” shall mean that certain Credit Agreement of even date herewith among the Borrower, the Junior Lenders and SWK, as Agent for the Junior Lenders, as amended, supplemented or otherwise modified from time to time. 

"Junior Obligations" shall mean all Obligations (as defined in the Junior Loan Agreement)and all Guaranteed Obligations (as defined in the Junior Guarantee and Collateral Agreement), whether now existing or hereafter created or incurred, and whether they are or may be direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or joint, several or joint and several, all interest thereon, and all fees, costs and other charges related thereto (including all interest, fees, costs and other charges accruing after the commencement of any Insolvency Proceeding including the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of an Obligor, whether or not allowed in such case, proceeding or other action), all renewals, extensions and modifications thereof and any notes issued in whole or partial substitution therefor.    
    
“Lien” shall mean any lien, claim, charge, pledge, security interest, assignment, hypothecation, deed of trust, mortgage, lease, conditional sale, retention of title or other preferential arrangement having substantially the same economic effect as any of the foregoing, whether voluntary or imposed by law.

"Maximum Senior Principal Amount" means, as of any date of determination, (a) $7,000,000 plus (b) any additional principal amounts advanced by the Senior Lender under the Senior Loan Agreement not to exceed $700,000 plus (c) interest, fees, costs, expenses, indemnities and other amounts payable pursuant to the terms of the Senior Loan Agreement, to the extent the same are added to the principal amount of the Senior Obligations, and all permanent reductions of revolving loan commitments under the Senior Loan Agreement after the date hereof, other than as a result of a refinancing of the Senior Obligations.

"Obligations" means the Senior Obligations and the Junior Obligations, or any of them, as the context may require.
    
“Payment in Full” or “Paid in Full” shall mean the full, final and indefeasible payment of the Senior Obligations in cash or immediately available funds

"Purchase Notice" shall have the meaning set forth in Section 6(a).

"Post-Petition Interest" shall mean interest on the Senior Obligations at the rate stated in the Senior Loan Agreement from the date of the filing by or against an Obligor of a petition under any bankruptcy, insolvency or similar law to the date of the indefeasible payment in full of the Senior Obligations. 

“Release Documents” means, with respect to the Collateral, terminations of financing statements, partial lien releases, mortgage satisfactions and discharges, endorsements, assignments or other instruments of transfer, termination or release.

"Release Event" means the taking of any Enforcement Action to Dispose of Collateral by the Senior Lender or, after the occurrence and during the continuance of an Insolvency Proceeding, the entry of an order of the Bankruptcy Court pursuant to Section 363 of the Bankruptcy Code authorizing the sale of all or any portion of the Collateral conducted in accordance with Section 4(f).

“Recovery” shall have the meaning set forth in Section 4(e).

“Reorganization Security” shall have the meaning set forth in Section 4(i).

"Secured Creditors" means the Senior Lender and the Junior Lender, or any of them.

“Senior Adequate Protection Lien” shall have the meaning set forth in Section 4(b).

“Senior Default” shall mean a Default or Event of Default as defined in the Senior Loan Agreement.

"Senior Default Notice" means with respect to the Senior Loan Agreement, a written notice from the Senior Lender to the Junior Lender, with a copy to the Borrower, indicating that a Senior Default has occurred and describing such Senior Default in reasonable detail.

"Senior Obligations" shall mean all Obligations (as defined in the Senior Loan Agreement), whether now existing or hereafter created or incurred, and whether they are or may be direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or joint, several or joint and several, all interest thereon, and all fees, costs and other charges related thereto (including all interest, fees, costs and other charges accruing after the commencement of any Insolvency Proceeding including the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of an Obligor, whether or not allowed in such case, proceeding or other action), all renewals, extensions and modifications thereof and any notes issued in whole or partial substitution therefor.    

“Senior Termination” has the meaning specified in Section 8.

 "Standstill Period" means the period commencing on the date of (a) a Junior Default and ending upon the date which is the earlier of (i) 180 days after the Senior Lender has received a Junior Default Notice with respect to such Junior Default and (ii) the date on which the Senior Obligations (other than the Excess Senior Obligations) have been Paid in Full or (b) a Senior Default and ending upon the date which is the earlier of (i) 180 days after the Junior Lender has received a Senior Default Notice with respect to such Senior Default and (ii) the date on which the Senior Obligations have been Paid in Full.

"UCC" means the Uniform Commercial Code of any applicable jurisdiction and, if the applicable jurisdiction shall not have any Uniform Commercial Code, the Uniform Commercial Code as in effect in the State of New York.
"UCC Notice" shall have the meaning set forth in Section 2(g).
Section 2.    Suspension of Payment; Subordination in Insolvency Proceeding; Lien Priority; Collateral Management.   

(a)  Payments to Junior Lender.  Prior to Senior Termination, commencing on the date that the Junior Lender receives a Senior Default Notice, the Junior Lender shall not be entitled to receive or retain any payment in respect of the Junior Obligations through the end of the earlier of (i) the Standstill Period commencing on such date of receipt of the Senior Default Notice, or (ii) the date upon which the Senior Default referenced in the Senior Default Notice is either cured by the Borrower or another Obligor or waived by the Senior Lender.  If the Junior Lender receives any payment in respect of the Junior Obligations during such Standstill Period, the Junior Lender will hold the amount so received in trust for the Senior Lender and will forthwith turn over such payment to the Senior Lender in the form received (except for the endorsement of the Junior Lender where necessary) for application to then‐existing Senior Obligations (whether or not due), in such manner of application as the Senior Lender may deem appropriate.  If the Junior Lender fails to make any endorsement required under this Agreement, the Senior Lender, or any of its officers or employees or agents on behalf of the Senior Lender, is hereby irrevocably appointed as the attorney‐in‐fact (which appointment is coupled with an interest) for the Junior Lender to make such endorsement in the Junior Lender's name.
(a)    Distributions.  Upon any distribution to creditors of an Obligor in a liquidation or dissolution of such Obligor or upon the commencement of any Insolvency Proceeding: (i) the holders of the Senior Obligations shall be entitled to receive payment in full in cash, or to have such payment duly provided for, of all amounts payable under or in respect of the Senior Obligations (including Post-Petition Interest accrued after the commencement of such Insolvency Proceeding at the rate provided in the Senior Loan Agreement) before the Junior Lender shall be entitled to receive from such Obligor or its assets any payment under or in respect of the Junior Obligations and (ii) until the holders of the Senior Obligations have received such payment in full in cash, or such payment is duly provided for, any distribution from such Obligor or its assets to which the Junior Lender would otherwise be entitled shall be made to the holders of the Senior Obligations.  Subject to Senior Termination, the Junior Lender shall be subrogated to the rights of the holders of the Senior Obligations to receive payments or distributions in cash or property applicable to the Senior Obligations, and no payment or distribution made to the Senior Lender by virtue of this Agreement that otherwise would have been made to the Junior Lender shall be deemed to be a payment by such Obligor on account of the Junior Obligations, it being understood that the provisions of this Section 2(b) are intended solely for the purpose of defining the relative rights of the Junior Lender, on the one hand, and the Senior Lender, on the other hand.
(b)    Priorities.  Each of the Senior Lender and the Junior Lender hereby acknowledges that the Secured Creditors have been granted Liens upon the Collateral to secure their respective Obligations.  Until the Senior Termination has occurred, the Liens of the Senior Lender on the Collateral securing the Senior Obligations (other than the Excess Senior Obligations) are and shall be senior and prior in right to the Liens of the Junior Lender on the Collateral securing the Junior Obligations, and such Liens of the Junior Lender on the Collateral securing the Junior Obligations are and shall be junior and subordinate to the Liens of the Senior Lender on the Collateral securing the Senior Obligations.  Any Liens of the Senior Lender on the Collateral securing the Excess Senior Obligations are and shall be junior and subordinate in all respects to the Liens of the Junior Lender on the Collateral securing the Junior Obligations. The priorities of the Liens provided in this Section 2(c) shall not be altered or otherwise affected by any amendment, modification, supplement, extension, renewal, restatement, replacement or refinancing of any of the Obligations, nor by any action or inaction which any of the Secured Creditors may take or fail to take in respect of the Collateral.  The subordination of the Liens provided for in this Section 2(c) affects only the relative priority of those Liens, and does not subordinate any Obligations in right of payment to any other Obligations.  Nothing in this Agreement will affect the entitlement of the Junior Lender to receive and retain payments of interest, principal and other amounts in respect of the Junior Obligations unless the receipt is expressly prohibited by this Agreement.
(c)    No Alteration of Priority.  The priorities set forth in this Agreement are applicable irrespective of the order or time of attachment, or the order, time or manner of perfection, or the order or time of filing or recordation of any document or instrument, or other method of perfecting a Lien in favor of each Secured Creditor in any Collateral, and notwithstanding any conflicting terms or conditions which may be contained in any documents.
(d)    Challenge to Liens.  Each of the Senior Lender and the Junior Lender agrees that it will not (and hereby waives any right to) directly or indirectly contest or support any other Person (including a committee in any Insolvency Proceeding) in contesting, in any proceeding (including any Insolvency Proceeding), the perfection, priority, validity, extent or enforceability of a Lien held, or purported to be held, by or on behalf of the Senior Lender or the Junior Lender in Collateral or the provisions of this Agreement, provided that nothing in this Agreement shall be construed to prevent or impair the rights of the Senior Lender or the Junior Lender to enforce this Agreement, including the provisions of this Agreement relating to the priority of the Liens.
(e)    Proceeds of Collateral.  Unless the Senior Obligations (other than Excess Senior Obligations) have been Paid in Full, any Collateral or proceeds thereof received by the Junior Lender, or any payment or distribution, that may be received by the Junior Lender (other than Reorganization Securities) (i) in connection with the exercise of any right or remedy (including any right of setoff) with respect to the Collateral, (ii) in connection with any insurance policy claim or any condemnation award (or deed in lieu of condemnation) in respect of the Collateral, (iii) from the collection or other Disposition of, or realization on, the Collateral by the Junior Lender whether or not pursuant to an Insolvency Proceeding or (iv) in violation of this Agreement, shall be segregated and held in trust and promptly paid over to the Senior Lender.
(f)    Management of Collateral. Until Payment in Full of the Senior Obligations (other than Excess Senior Obligations), subject to the other terms and conditions of this Agreement, the Senior Lender shall have the exclusive right to manage, perform and enforce the terms of the Senior Loan Agreement with respect to the Collateral, including, without limitation, prosecuting Enforcement Actions, to exercise and enforce all privileges and rights thereunder according to their sole discretion and the exercise of their sole business judgment, including the exclusive right to take or retake control or possession of the Collateral and to hold, prepare for sale, process, Dispose of, or liquidate the Collateral and to incur expenses in connection with such Disposition and to exercise all the rights and remedies of a secured lender under the UCC of any applicable jurisdiction.  In conducting any public or private sale under the UCC, the Senior Lender shall give the Junior Lender such notice (a "UCC Notice") of such sale as may be required by the applicable UCC; provided, however, that 10 days' notice shall be deemed to be commercially reasonable notice.  Except as specifically provided in this Section 2(g) or Section 2(h) below, notwithstanding any rights or remedies available to a Junior Lender under any of the Junior Loan Agreement, applicable law or otherwise, until Payment in Full of the Senior Obligations (other than Excess Senior Obligations), no Junior Lender shall, directly or indirectly, take any Enforcement Action, provided that upon the expiration of the applicable Standstill Period, the Junior Lender may take any Enforcement Action (provided that it gives the Senior Lender at least 10 days written notice prior to taking such Enforcement Action, which notice may be given during the pendency of the applicable Standstill Period); provided further, however, that, notwithstanding the expiration of a Standstill Period or anything herein to the contrary, in no event shall the Junior Lender exercise or continue to exercise any such rights or remedies, or commence or petition for any such action or proceeding (including any foreclosure action or proceeding or any Insolvency Proceeding) if the Senior Lender shall have commenced the enforcement or exercise of any rights or remedies with respect to any of the Collateral or any such action or proceeding (including, without limitation, any of the following) has occurred and is continuing: (i) the diligent pursuit of solicitation of bids from third parties to conduct the liquidation of all or any material portion of the Collateral, the engagement or retention of sales brokers, marketing agents, investment bankers, accountants, auctioneers or other third parties for the purpose of valuing, marketing, promoting or selling all or any material portion of the Collateral and such sales brokers, marketing agents, investment bankers, accountants, auctioneers or other third parties are diligently pursuing such process, (ii) the initiation of any action to take possession of all or any material portion of the Collateral or the commencement of any legal proceedings or actions against or with respect to the foreclosure and sale of all or any material portion of the Collateral,  (iii) diligently attempting in good faith to vacate any stay prohibiting an Enforcement Action with respect to all or any material portion of the Collateral or any other Enforcement Action or (iv) an Insolvency Proceeding.
(g)    Permitted Actions.  Section 2(g) shall not be construed to limit or impair in any way the right of: (i) any Secured Creditor to bid for or purchase Collateral at any public, private or judicial foreclosure upon such Collateral initiated by any Secured Creditor provided that the Junior Lender shall not be permitted to credit bid on any Collateral at any public, private or judicial foreclosure sale unless such credit bid shall include cash in an amount sufficient to cause the Senior Obligations (other than Excess Senior Obligations) to be immediately Paid in Full, (ii) any Secured Creditor to join (but not control) any foreclosure or other judicial lien enforcement proceeding with respect to the Collateral initiated by another Secured Creditor for the sole purpose of protecting such Secured Creditor's Lien on the Collateral, so long as it does not materially delay or interfere with the exercise by such other Secured Creditor of its rights under this Agreement, the respective loan documents or applicable law, (iii) any Secured Creditor to take any Debt Action, (iv) any Secured Creditor to take action to create, perfect, preserve or protect its Lien on the Collateral, so long as such actions are not adverse to the priority status of the Liens on the Collateral set forth in this Agreement, (v) any Secured Creditor to exercise rights as an unsecured creditor in accordance with Section 4(i) hereof, provided that the Junior Lender shall not directly or indirectly participate or join in the commencement of any Insolvency Proceeding, (vi) the Junior Lender to make any filings and make any arguments and motions with respect to the Junior Obligations and the Collateral that are, in each case, in accordance with the terms of this Agreement, or (vii)  the Junior Lender to receive any remaining proceeds of Collateral for application to the Junior Obligations after Payment in Full of the Senior Obligations.
(h)    No Implied Waiver or Amendment.  The Senior Lender shall not be prejudiced in its right to enforce subordination the Junior Lender’s Liens on the Collateral by any act or failure to act on the part of any Obligor or any other Person whether or not such act or failure shall give rise to any right of rescission or other claim or cause of action on the part of the Junior Lender.  
(i)    Enforceability.  The provisions of this Section 2 shall be enforceable against the Obligors, the Junior Lender or the Senior Lender by the Senior Lender or any other holder of Senior Obligations, or the Junior Lender or any other holder of Junior Obligations, as the case may be.  
Section 3.    Covenants.    
(a)    Amendments to Senior Loan Agreement and Related Documents.  The Senior Lender, at any time and from time to time, may, without consent of or notice to the Junior Lender, without incurring any liability to the Junior Lender and without impairing or releasing any rights or obligations hereunder or otherwise, enter into such agreements, amendments and modifications with any Obligor as the Senior Lender may deem proper, extending the time of payment of or renewing or otherwise altering the terms and conditions of the Senior Obligations; provided, however, that, without the consent of the Junior Lender, the Senior Lender shall not amend, restate, supplement, modify, substitute, renew or replace any or all of the Senior Loan Agreement or related documents, or waive any term thereof if the effect thereof would be to (i) violate or directly conflict with any provision of this Agreement, (ii) increase the Revolving Credit Rate or the Default Rate, (iii) change the final maturity date of the Senior Loan Agreement to a date later than February 28, 2019, (iv) shorten the maturity of the Senior Loan Agreement, (v) increase the principal amount of the Senior Obligations in excess of the Maximum Senior Principal Amount, or (vi) modify or add any covenant or event of default under the Senior Loan Agreement or related documents which directly restricts any Obligor from making payments under the Junior Loan Agreement which would otherwise be permitted under the Senior Loan Agreement and this Agreement as in effect on the date hereof.
(a)    Amendments to Junior Loan Agreement and Related Documents.  The Junior Lender may at any time and from time to time and without consent of or notice to the Senior Lender, without incurring any liability to the Senior Lender and without impairing or releasing any rights or obligations hereunder or otherwise, amend, restate, supplement, modify, substitute, renew or replace any or all of the Junior Loan Agreement; provided, however, that, until the Senior Termination has occurred, without the consent of the Senior Lender, the Junior Lender shall not amend, restate, supplement, modify substitute, renew or replace any or all of the Junior Loan Agreement or waive any term thereof if the effect thereof would be to (i) violate or directly conflict with any provision of this Agreement, (ii) directly or indirectly result in an increase in the total yield on the Junior Obligations to an amount greater than 3% per annum above such total yield that is in effect on the date hereof, (iii) shorten the maturity of the Junior Obligations or require that any payment on the Junior Obligations be made earlier than the date originally scheduled for such payment or that any commitment expire any earlier than the date originally scheduled therefor, (iv) add or modify in a manner adverse to any Obligor or the Senior Lender any covenant, agreement or event of default under the Junior Loan Agreement and related documents unless corresponding provisions of the Senior Loan Agreement have been amended or modified, with appropriate differences in the covenant and default levels and thresholds consistent with the covenants and defaults in the Senior Loan Agreement, (v) increase the principal amount of the Junior Obligations, or (vi) alter any of the subordination provisions with respect to the Junior Obligations.
(b)    Turnover by Junior Lender.  Prior to Payment in Full of the Senior Obligations (other than the Excess Senior Obligations), the Junior Lender shall remit to the Senior Lender, as soon as available and in any event not later than five (5) days after the receipt by the Junior Lender thereof, all cash or other property held by or on behalf of the Junior Lender constituting proceeds of the Collateral.
(c)    Turnover by Senior Lender.  Upon Payment in Full of the Senior Obligations (other than the Excess Senior Obligations), the Senior Lender shall remit to the Junior Lender, as soon as available and in any event not later than five (5) days after the receipt by the Senior Lender thereof, all cash or other property held by or on behalf of the Senior Lender constituting proceeds of the Collateral.
(d)    Release of Collateral Upon Release Event.  The Junior Lender shall, at any time in connection with a Release Event with respect to any Collateral: (i) upon the request of the Senior Lender with respect to the Collateral subject to such Release Event (which request will specify the principal proposed terms of the sale and the type and amount of consideration expected to be received in connection therewith), release or otherwise terminate its Liens on such Collateral, to the extent the Disposition of such Collateral is either by the Senior Lender or its agents or representatives or any Obligor at the direction of the Senior Lender in accordance with the definition of Enforcement Action  and (ii) deliver such Release Documents and take such further actions as Senior Lender may reasonably require in connection therewith, provided that, (A) such release by the Junior Lender shall not extend to or otherwise affect any of the rights of the Junior Lender to the proceeds from any such Disposition of Collateral, (B) the Senior Lender shall promptly apply such proceeds to pay the Senior Obligations until the same have been Paid in Full (together with a concurrent reduction of the Maximum Senior Principal Amount by the amount of such payment), (C) such release or termination shall occur concurrently with the release or termination of the Senior Lender's security interest in the Collateral subject to such Release Event and (D) no such release and/or authorization documents shall be delivered (x) to the Borrower or any other Obligor or (y) more than 2 Business Days prior to the date of the closing of the Disposition of such Collateral, provided further that, if the closing of the Disposition of the Collateral subject to such Release Event is not consummated within 30 days of the proposed date of closing or any agreement governing such Disposition is terminated, the Senior Lender shall promptly, upon the Junior Lender's request, return all Release Documents to the Junior Lender.
Section 4.    Insolvency Proceedings.
(a)    Bankruptcy.  This Agreement shall be applicable both before and after the filing of any petition by or against the Borrower under the Bankruptcy Code or any other Insolvency Proceeding and all converted or succeeding cases in respect thereof, and all references herein to an Obligor shall be deemed to apply to the trustee for such Obligor and such Obligor as a debtor-in-possession.  The relative rights of the Senior Lender and the Junior Lender in respect of any Collateral or proceeds thereof shall continue after the filing of such petition on the same basis as prior to the date of such filing, subject to any court order approving the financing of, or use of cash collateral by, the applicable Obligor.  This Agreement shall constitute a "subordination agreement" for the purposes of Section 510(a) of the Bankruptcy Code and shall be enforceable in any Insolvency Proceeding in accordance with its terms. 
(b)    Financing Matters.  If an Obligor becomes subject to any Insolvency Proceeding, and if the Senior Lender desires to consent (or not object) to the sale, use or lease of cash or other collateral under the Bankruptcy Code or otherwise to provide financing to such Obligor under the Bankruptcy Code or otherwise or to consent (or not object) to the provision of such financing to such Obligor by any third party (a “DIP Financing”), then the Junior Lender agrees that (i) to the extent the aggregate principal amount of loans outstanding under any such DIP Financing together with the aggregate outstanding principal amount of the pre-petition Senior Obligations does not exceed 110% of the aggregate outstanding principal amount of the Senior Obligations immediately prior to the commencement of the Insolvency Proceedings (the "DIP Cap"), such DIP Financing (and any Senior Obligations not in excess of the Maximum Senior Principal Amount which arose prior to the Insolvency Proceeding) may be secured by Liens on all or a part of the assets of such Obligor which shall be superior in priority to the Liens on the assets of such Obligor held by any other Person, (ii) notice received three (3) Business Days prior to the entry of an interim order approving such DIP Financing and notice received fourteen (14) calendar days prior to entry of a Final Order approving such DIP Financing, shall be adequate notice, (iii) so long as the aggregate principal amount of such DIP Financing does not exceed the DIP Cap, the Junior Lender will not request or accept adequate protection or any other relief in connection with such DIP Financing except as set forth in Section 4(d) below, (iv) to the extent the aggregate principal amount such DIP Financing does not exceed the DIP Cap, the Junior Lender will subordinate (and will be deemed hereunder to have subordinated) the Liens securing the Junior Obligations (A) to the Liens securing such DIP Financing (the "DIP Liens") on the same terms (but on a basis junior to the Liens of the Senior Lender) as the Liens of the Senior Lender are subordinated thereto (and such subordination will not alter in any manner the terms of this Agreement), and (B) to any "replacement Lien" granted to the Senior Lender as adequate protection of its interests in the Collateral (the "Senior Adequate Protection Lien"), provided that, to the extent the aggregate principal amount such DIP Financing is in excess of the DIP Cap, such excess amount shall be subordinated to the Junior Obligations and (v) subject to Section 4(d) below, the Junior Lender shall not contest or oppose in any manner any adequate protection provided to the Senior Lender as adequate protection of its interests in the Collateral, or any DIP Financing, and shall be deemed to have waived any objections to such adequate protection, or DIP Financing, including, without limitation, any objection alleging such Obligor’s failure to provide "adequate protection" of the interests of the Junior Lender in the Collateral, provided, for purposes of the consents and limitations set forth in clauses (i) through (v) of this Section, that the DIP Financing does not by its express terms require such Obligor to (x) propose a specific plan of reorganization, or (y) sell substantially all of such Obligor’s assets, other than as a result of and after the occurrence of an event of default under such DIP Financing.  It is understood and agreed that the foregoing provisions of this Section 4(b) shall not limit the right of the Junior Lender to object to any motion regarding DIP Financing but only (x) to the extent that the DIP Financing contravenes the requirements of this Section 4(b), or (y) such objection is based upon the Junior Lender’s rights under Section 4(j).
(c)    Relief From the Automatic Stay.  The Junior Lender agrees that it will not seek relief from the automatic stay or from any other stay in any Insolvency Proceeding unless the Senior Lender requests relief from such stay. 
(d)    Adequate Protection.  Notwithstanding the foregoing provisions in this Section 4, in any Insolvency Proceeding, if the Senior Lender is granted adequate protection in the form of Senior Adequate Protection Liens, the Junior Lender may seek (and the Senior Lender may not oppose) adequate protection of its interests in the Collateral in the form of (i) a "replacement Lien" on the additional collateral subject to the Senior Adequate Protection Liens (the "Junior Adequate Protection Lien"), which Junior Adequate Protection Lien, if granted, will be subordinate to all Liens securing the Senior Obligations (including, without limitation, the Senior Adequate Protection Liens) and any Liens securing debtor-in-possession financing (whether or not constituting DIP Financing) on the same basis as the other Liens securing the Junior Obligations are so subordinated under this Agreement (provided that any failure of the Junior Lender to obtain such Junior Adequate Protection Liens shall not impair or otherwise affect the agreements, undertakings and consents of the Junior Lender pursuant to Section 4(b) and (ii) superpriority claims under Section 507(b) of the Bankruptcy Code junior in all respects to the superpriority claims granted under Section 507(b) of the Bankruptcy Code to the Senior Lender on account of any of the Senior Obligations or granted under Section 364(c)(1) of the Bankruptcy Code with respect to any debtor-in-possession financing (whether or not constituting DIP Financing), provided that the inability of the Junior Lender to receive any such Liens under Chapter 5 of the Bankruptcy Code or proceeds thereof shall not affect the agreements and waivers set forth in this Section 4; and provided, further, that the Junior Lender shall have irrevocably agreed, pursuant to Section 1129(a)(9) of the Bankruptcy Code, in any stipulation and/or order granting such adequate protection, that any such junior superpriority claims may be paid under any plan of reorganization in any combination of cash, debt, equity or other property having a value on the effective date of such plan equal to the allowed amount of such junior superpriority claims, and only after the Payment in Full of the Senior Obligations.  
(e)    Avoidance Issues.  If the Senior Lender is required in any Insolvency Proceeding or otherwise to disgorge, turn over or otherwise pay to the estate of an Obligor, because such amount was avoided or ordered to be paid or disgorged for any reason including, without limitation, because it was found to be a fraudulent or preferential transfer, any amount (a “Recovery”), whether received as proceeds of security, enforcement of any right of setoff or otherwise, then the Senior Obligations shall be reinstated to the extent of such Recovery and deemed to be outstanding as if such payment had not occurred and the Senior Termination shall be deemed not to have occurred. The Junior Lender agrees it shall not be entitled to benefit from any avoidance action affecting or otherwise relating to any distribution or allocation made in accordance with this Agreement, whether by preference or otherwise, it being understood and agreed that the benefit of such avoidance action otherwise allocable to the Junior Lender shall instead be allocated and turned over for application in accordance with the priorities set forth in this Agreement.
(f)    Asset Dispositions in an Insolvency Proceeding.  The Junior Lender agrees that it will not object to or oppose a Disposition of any Collateral securing the Senior Obligations (or any portion thereof) free and clear of Liens or other claims under Section 363 of the Bankruptcy Code or any other provision of the Bankruptcy Code, if the Senior Lender has consented to such or Disposition of such assets, as long as (a) the Maximum Senior Principal Amount is reduced by an amount equal to the proceeds of such Disposition received and retained by the Senior Lender on account of the Senior Obligations which are used to pay the principal or face amount, as applicable, of the Senior Obligations, and (b) pursuant to a court order the Liens of the Junior Lender attach to the net proceeds of such Disposition with the same priority and validity as the Liens held by the Junior Lender in such Collateral, provided that the Junior Lender is not deemed to have waived any rights to credit bid on the Collateral in any such Disposition in accordance with Section 363(k) to the extent such credit bid includes cash in an amount sufficient to cause the Senior Obligations to be immediately Paid in Full.  The Junior Lender waives any claim it may now or hereafter have arising out of the Senior Lender's election in any proceeding instituted under Chapter 11 of the Bankruptcy Code of the application of Section 1111(b)(2) of the Bankruptcy Code.
(g)    No Waivers of Rights.  Nothing contained herein shall prohibit or in any way limit the Senior Lender from objecting in any Insolvency Proceeding or otherwise to any action taken by the Junior Lender, including the seeking by the Junior Lender of adequate protection (other than as provided for in Section 4(d)); provided, however, the Senior Lender agrees not to initiate or prosecute or join with any Person to initiate or prosecute any claim, action or other proceeding challenging the enforceability, validity, priority or perfected status of any Liens on assets securing the Junior Obligations.
(h)    Plans of Reorganization.  The Junior Lender shall not support or vote in favor of any plan of reorganization (and shall vote and shall be deemed to have voted to reject any plan of reorganization) unless such plan (i) pays off, in cash in full, all Senior Obligations (other than Excess Senior Obligations) or (ii) is accepted by the Senior Lender.  To the extent that the Junior Lender attempts to vote or votes in favor of any plan or reorganization in a manner inconsistent with this Section 4(h), the Junior Lender irrevocably agrees that (A) the Senior Lender may be, and may be deemed, an “authorized agent” of such party under Bankruptcy Rules 3018(c) and 9010, (B) the Senior Lender is irrevocably appointed the Junior Lender’s attorney in fact, coupled with an interest, to vote on the Junior Lender’s behalf in such proceedings with respect to the Junior Obligations, and (C) the Senior Lender shall be authorized and entitled to submit a superseding ballot or vote, as the case may be, on behalf of the Junior Lender that is consistent herewith.
(i)    Other Matters.  In the event of any Insolvency Proceeding involving an Obligor, all proceeds of Collateral (including, without limitation, any Distribution which would otherwise, but for the terms hereof, be payable or deliverable in respect of the Junior Obligations) shall be paid or delivered directly to the Senior Lender (to be held and/or applied by the Senior Lender in accordance with the Senior Loan Agreement) until all Senior Obligations are Paid In Full before any of the same shall be made to one or more of the Junior Lenders on account of any Junior Obligations, and the Junior Lender irrevocably authorizes, empowers and directs any debtor, debtor in possession, receiver, trustee, liquidator, custodian, conservator or other Person having authority to pay or otherwise deliver all such Distributions in respect of any Junior Obligations to the Senior Lender, provided that the foregoing provision shall not apply to Distributions made in respect of the Junior Obligations pursuant to a plan of reorganization under the Bankruptcy Code with respect to such Obligor which has received the affirmative vote of the Senior Lender and which has been confirmed pursuant to a Final Order or to any Reorganization Securities received by the Junior Lender in accordance with this Section 4(i).  Nothing in this Agreement prohibits or limits the right of a Junior Lender to receive and retain any debt or equity securities that are issued by a reorganized debtor pursuant to a plan of reorganization or similar dispositive restructuring plan in connection with an Insolvency Proceeding (such debt or equity securities, "Reorganization Securities").
(j)    Rights as Unsecured Lenders.  In any Insolvency Proceeding, to the extent not prohibited by and in all respects consistent with this Agreement, the Junior Lender may take any action, file any pleading, appear in any proceeding and exercise rights and remedies whether as an unsecured lender or otherwise.  In any Insolvency Proceeding, to the extent not prohibited by and in all respects consistent with this Agreement, the Senior Lender may take any action, file any pleading, appear in any proceeding and exercise rights and remedies whether as an unsecured lender or otherwise.  
Section 5.     Representation and Warranties.  Each of the Secured Creditors represents and warrants as follows:
(a)    Enforceability.  This Agreement is the legal, valid and binding obligation of the respective Secured Creditors enforceable in accordance with its terms.
(b)    No Conflict.  The execution, delivery and performance by either of the Secured Creditors of this Agreement do not and will not contravene (i) any law, treaty, rule, regulation, order or determination of an arbitrator, court or other governmental authority or regulatory body or any franchise, license, lease, permit, certificate, authorization, qualification, easement, right of way, or other right or approval binding on either of the Secured Creditors or any of their property or (ii) any material contract to which it is a party or by which its property is bound.
(c)    Consents and Filings.  No consent, authorization or approval of, or filing with or other act by, either of the Secured Creditors or any governmental authority or regulatory body or any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement, except those that have been obtained. 
(d)    No Judgments or Litigation.  No judgments, orders, writs or decrees are outstanding against either of the Secured Creditors, nor is there now pending or, to the knowledge of either of the Secured Creditors after due inquiry, any threatened litigation, contested claim, investigation, arbitration, or governmental proceeding by or against either of the Secured Creditors that purports to affect the legality, validity or enforceability of this Agreement or the consummation of the transactions contemplated hereby.
(e)    Acceptance.  Both the Senior Lender and the Junior Lender, by their execution and delivery of this Agreement, have accepted this Agreement.
Section 6.     Junior Lender Purchase Option. 
(a)    Purchase Notice.  Upon (i) an acceleration of the Senior Obligations or the taking of any Enforcement Action by the Senior Lender, (ii) a payment default under the Senior Loan Agreement that is not cured by the Borrower or waived by the Senior Lender within 60 days of its occurrence, or (iii) the commencement of an Insolvency Proceeding, the Junior Lender shall have the option, but not the obligation, to purchase all, but not less than all, of the Senior Obligations owing to the Senior Lender from the Senior Lender, and assume all, but not less than all, of the then existing funding commitments under the Senior Loan Agreement by giving a written notice (the "Purchase Notice") to the Senior Lender no later than 15 Business Days after the Junior Lender has knowledge of any event set forth in clause (i), (ii), or (iii) above.  A Purchase Notice once delivered shall be irrevocable.
(b)    Purchase Option Closing.  On the date specified by the Junior Lender in the Purchase Notice (which shall not be more than 30 days after the receipt by the Senior Lender of the Purchase Notice), the Senior Lender shall sell to the Junior Lender, and the Junior Lender shall purchase from the Senior Lender, all, but not less than all, of the Senior Obligations (other than Excess Senior Obligations), and the Senior Lender shall assign to the Junior Lender, and the Junior Lender shall assume from the Senior Lender all, but not less than all, of the then existing funding commitments under the Senior Loan Agreement.
(c)    Purchase Price.  Such purchase and sale shall be made by execution and delivery by the Secured Creditors of an Assignment Agreement in form and substance satisfactory to the Secured Creditors.  Upon the date of such purchase and sale, the Junior Lender shall (a) pay to the Senior Lender as the purchase price therefor the full amount of all the Senior Obligations (other than Excess Senior Obligations) then outstanding and unpaid (including principal, interest, fees, prepayment premiums, indemnities and expenses, including, without limitation, reasonable attorneys' fees and legal expenses).  Such purchase price shall be remitted by wire transfer of immediately available funds to such bank account of the Senior Lender in New York, New York, as the Senior Lender may designate in writing to the Junior Lender for such purpose.  Interest shall be calculated to but excluding the Business Day on which such purchase and sale shall occur if the amounts so paid by the Junior Lender to the bank account designated by the Senior Lender are received in such bank account prior to 1:00 p.m., New York City time, and interest shall be calculated to and including such Business Day if the amounts so paid by the Junior Lender to the bank account designated by the Senior Lender are received in such bank account later than 1:00 p.m., New York City time.
(d)    Nature of Sale.  Such purchase and sale shall be expressly made without representation or warranty of any kind by the Senior Lender as to the Senior Obligations or otherwise and without recourse to the Senior Lender, except for representations and warranties as to the following:  (i) the amount of the Senior Obligations being purchased (including as to the principal of and accrued and unpaid interest on such Senior Obligations, fees and expenses thereof), (ii) that the Senior Lender owns the Senior Obligations free and clear of any Liens and (iii) that the Senior Lender has the full right and power to assign the Senior Obligations and such assignment has been duly authorized by all necessary partnership action by the Senior Lender.
(e)    Notice of Election to Purchase.  The Senior Lender shall not complete any Disposition in connection with any Enforcement Action, as long as the Senior Lender shall have received a Purchase Notice, the purchase and sale of the Senior Obligations provided for in this Section 6 shall have closed within 30 days of the Senior Lender's receipt of such Purchase Notice and the Senior Lender shall have received payment in full of the Senior Obligations (other than Excess Senior Obligations) as provided for in Section 6(c) within such 30 day period. 
Section 7.    Certain Matters of Construction.  The words "hereof", "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement and section references are to this Agreement unless otherwise specified.  For purposes of this Agreement, the following additional rules of construction shall apply: (a) wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, the feminine and the neuter, (b) the term "including" shall not be limiting or exclusive, unless specifically indicated to the contrary, (c) all references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations and (d) unless otherwise specified, all references to any instruments or agreements, including references to any of this Agreement and any other documents, shall include any and all modifications or amendments thereto and any and all extensions or renewals thereof, in each case, made in accordance with the terms hereof.
Section 8.     Termination.  This Agreement shall terminate and cease to be of any further force or effect upon the Payment in Full of the Senior Obligations (the occurrence of the foregoing being referred to herein as “Senior Termination”).
Section 9.    Benefit of Agreement.  Nothing in this Agreement, express or implied, shall give or be construed to give to any Person any legal or equitable right, remedy or claim under this Agreement or any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties hereto.
Section 10.    Notices.  Except as otherwise provided herein, all notices and other communications provided for hereunder shall be made in the manner and to the address set forth for the Senior Lender in the Senior Loan Agreement and the address set forth for the Junior Lender in the Junior Loan Agreement) or to such other address as the Senior Lender or the Junior Lender may specify to the other party in the manner required hereunder.
Section 11.    Amendments and Waivers.  Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and signed by the party to be charged thereby, and then any such amendment or waiver shall be effective only to the extent set forth therein.
 Section 12.    Delays; Partial Exercise of Remedies.  No delay or omission of the Senior Creditors to exercise any right or remedy hereunder shall impair any such right or operate as a waiver thereof.  No single or partial exercise by the Senior Creditors of any right or remedy shall preclude any other or further exercise thereof, or preclude the exercise of any other right or remedy.
Section 13.    Counterparts; Telecopied Signatures.  This Agreement and any waiver or amendment hereof may be executed in counterparts and by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  This Agreement may be executed and delivered by telecopier or other electronic transmission all with the same force and effect as if the same were a fully executed and delivered original manual counterpart.
Section 14.    Severability.  In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.
Section 15.    Entire Agreement; Successors and Assigns; Interpretation.  This Agreement constitutes the entire agreement among the parties, supersedes any prior written and verbal agreements among them with respect to the subject matter hereof, and shall bind and benefit the parties and their respective successors and permitted assigns.  This Agreement shall be deemed to have been jointly drafted, and no provision of it shall be interpreted or construed for or against a party because such party purportedly prepared or requested such provision, any other provision, or this Agreement as a whole.
Section 16.    SPECIFIC PERFORMANCE.  EITHER SECURED CREDITOR IS HEREBY AUTHORIZED TO DEMAND SPECIFIC PERFORMANCE OF THIS AGREEMENT AT ANY TIME WHEN THE OTHER SECURED CREDITOR SHALL HAVE FAILED TO COMPLY WITH ANY OF THE PROVISIONS OF THIS AGREEMENT APPLICABLE TO IT.  
Section 17.    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.
Section 18.    SUBMISSION TO JURISDICTION.  
(a)    ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OFTHE JUNIOR LENDER AND THE SENIOR LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.  EACH OF THE JUNIOR LENDER AND THE SENIOR LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT, ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO.  EACH OF THE JUNIOR LENDER AND THE SENIOR LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.
(b)    Nothing in this Section 18 shall affect the right of either the Senior Lender or the Junior Lender to serve legal process in any other manner permitted by law or affect the right of the Senior Lender or Junior Lender to bring any action or proceeding against the other party in the courts of any other jurisdiction.  
Section 19.    JURY TRIAL.  EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY AND IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
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IN WITNESS WHEREOF, each of the Junior Lender and the Senior Lender has executed this Agreement as of the date first set forth above.
JUNIOR LENDER:
SWK FUNDING LLC, in its capacity as Agent and sole initial Junior Lender

By: SWK Holdings Corporation, its sole Manager

By: /s/ Brett Pope
Name: Brett Pope
Title:   Chief Executive Officer

SENIOR LENDER:

ACF FINCO I LP

By: /s/ Oleh Szczupak
Name:  Oleh Szczupak
Title:    Vice President

ACKNOWLEDGMENT
Each of the undersigned hereby acknowledges the provisions of the foregoing Intercreditor Agreement and agrees to abide by the terms thereof.
Each of the undersigned will, at any time and from time to time, promptly execute and deliver all further instruments and documents, and take all further action, that the Senior Lender or the Junior Lender may reasonably request to protect any right or interest granted or purported to be granted hereby or by the foregoing Intercreditor Agreement to the Senior Lender or the Junior Lender or to enable the Senior Lender or the Junior Lender to exercise and enforce its rights and remedies hereunder or thereunder.
HOOPER HOLMES, INC., 
a New York corporation

By: /s/ Henry E. Dubois
Name: Henry E. Dubois 
Title:   President  

HOOPER WELLNESS, LLC,
a Kansas limited liability company

By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    President

JEFFERSON ACQUISITION, LLC,
a Kansas limited liability company

By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    President

HOOPER DISTRIBUTION SERVICES, LLC,
a New Jersey limited liability company
By:  Hooper Homes, Inc.,
its sole Manager 
 
 
By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    President of Hooper Homes, Inc.

HOOPER INFORMATION SERVICES, INC.,
a New Jersey corporation

By: /s/ Henry E. Dubois
Name:  Henry E. Dubois
Title:  President

MID-AMERICA AGENCY SERVICES, INCORPORATED,
a Nebraska corporation

By: /s/ Henry E. Dubois
Name:  Henry E. Dubois    
Title:  President

TEG ENTERPRISES, INC.,
a Nebraska Corporation

By: /s/ Henry E. Dubois
Name:  Henry E. Dubois
Title:  President

HOOPER KIT SERVICES, LLC, 
a Kansas limited liability company,
formerly known as Heritage Labs International, LLC

By:  Hooper Homes, Inc.,
its sole Member 
 
 
By:    /s/ Henry E. Dubois
Name:    Henry E. Dubois
Title:    President of Hooper Homes, Inc.

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