Document:

EX-4.2:

 

EXHIBIT 4.2

SECURITY AGREEMENT

among

COINMACH SERVICE CORP.,

COINMACH LAUNDRY CORPORATION

and

THE BANK OF NEW YORK,

as Collateral Agent

Dated as of November 24, 2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	

	 	ARTICLE I	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	SECURITY INTERESTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1.

	 	Grant of Security Interests
	 	 	2	 
	Section 1.2.

	 	Power of Attorney
	 	 	3	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1.

	 	Necessary Filings
	 	 	4	 
	Section 2.2.

	 	No Liens
	 	 	4	 
	Section 2.3.

	 	Other Financing Statements
	 	 	4	 
	Section 2.4.

	 	Chief Executive Office; Records; Corporate
Name; Jurisdiction of Incorporation
	 	 	5	 
	Section 2.5.

	 	Location of Inventory and Equipment
	 	 	5	 
	Section 2.6.

	 	Recourse
	 	 	5	 
	Section 2.7.

	 	Trade Names; Change of Name
	 	 	6	 
	Section 2.8.

	 	Benefit to Laundry Corp
	 	 	6	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	SPECIAL PROVISIONS CONCERNING	 	 	 	 
	

	 	ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS	 	 	 	 
	

	 	AND CERTAIN OTHER TYPES OF COLLATERAL	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1.

	 	Additional Representations and Warranties
	 	 	6	 
	Section 3.2.

	 	Maintenance of Records
	 	 	7	 
	Section 3.3.

	 	Direction to Account Debtors; Contracting Parties, etc.
	 	 	7	 
	Section 3.4.

	 	Modification of Terms, etc.
	 	 	8	 
	Section 3.5.

	 	Collection
	 	 	8	 
	Section 3.6.

	 	Further Actions
	 	 	8	 
	Section 3.7.

	 	Special Provisions Regarding Certain Types of Collateral
	 	 	9	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE IV	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	SPECIAL PROVISIONS CONCERNING MARKS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.1.

	 	Additional Representations and Warranties
	 	 	12	 
	Section 4.2.

	 	Licenses and Assignments
	 	 	13	 

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	 	 	 	 	Page
	Section 4.3.

	 	Infringements
	 	 	13	 
	Section 4.4.

	 	Preservation of Trademarks
	 	 	13	 
	Section 4.5.

	 	Maintenance of Registration
	 	 	13	 
	Section 4.6.

	 	Future Registered Marks
	 	 	14	 
	Section 4.7.

	 	Remedies
	 	 	14	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE V	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	SPECIAL PROVISIONS CONCERNING	 	 	 	 
	

	 	PATENTS AND COPYRIGHTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1.

	 	Additional Representations and Warranties
	 	 	14	 
	Section 5.2.

	 	Licenses and Assignments
	 	 	15	 
	Section 5.3.

	 	Infringements
	 	 	15	 
	Section 5.4.

	 	Maintenance of Patents
	 	 	15	 
	Section 5.5.

	 	Prosecution of Patent Application
	 	 	16	 
	Section 5.6.

	 	Other Patents and Copyrights
	 	 	16	 
	Section 5.7.

	 	Remedies
	 	 	16	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE VI	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	PROVISIONS CONCERNING ALL COLLATERAL	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.1.

	 	Protection of Collateral Agent’s Security
	 	 	16	 
	Section 6.2.

	 	Warehouse Receipts Non-negotiable
	 	 	17	 
	Section 6.3.

	 	Further Actions
	 	 	17	 
	Section 6.4.

	 	Financing Statements
	 	 	17	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE VII	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.1.

	 	Remedies; Obtaining the Collateral Upon Default
	 	 	18	 
	Section 7.2.

	 	Remedies; Disposition of the Collateral
	 	 	19	 
	Section 7.3.

	 	Waiver of Claims
	 	 	20	 
	Section 7.4.

	 	Application of Proceeds
	 	 	21	 
	Section 7.5.

	 	Remedies Cumulative
	 	 	21	 
	Section 7.6.

	 	Discontinuance of Proceedings
	 	 	22	 
	Section 7.7.

	 	Additional Remedies With Respect to Collateral Located in Louisiana
	 	 	22	 

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	 	 	 	 	Page
	

	 	ARTICLE VIII	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	INDEMNITY	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.1.

	 	Indemnity
	 	 	23	 
	Section 8.2.

	 	Indemnity Obligations Secured by Collateral; Survival
	 	 	25	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE IX	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE X	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.1.

	 	Notices
	 	 	31	 
	Section 10.2.

	 	Waiver; Amendment
	 	 	32	 
	Section 10.3.

	 	Obligations Absolute
	 	 	32	 
	Section 10.4.

	 	Successors and Assigns
	 	 	33	 
	Section 10.5.

	 	Headings Descriptive
	 	 	33	 
	Section 10.6.

	 	Severability
	 	 	33	 
	Section 10.7.

	 	GOVERNING LAW
	 	 	33	 
	Section 10.8.

	 	Pledgor’s Duties
	 	 	33	 
	Section 10.9.

	 	Termination; Release
	 	 	34	 
	Section 10.10.

	 	Counterparts
	 	 	34	 
	Section 10.11.

	 	The Collateral Agent
	 	 	35	 
	Section 10.12.

	 	Intercreditor Agreement
	 	 	36	 

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SECURITY AGREEMENT

          SECURITY AGREEMENT (as amended, modified or supplemented from time to time, this
“Agreement”), dated as of November 24, 2004, by COINMACH SERVICE CORP. (the
“Company”), a Delaware corporation having an office at 303 Sunnyside Boulevard, Plainview,
New York 11803, and COINMACH LAUNDRY CORPORATION (“Laundry Corp.” and, together with the
Company, the “Pledgors”) in favor of THE BANK OF NEW YORK (“BNY”), as Collateral
Agent (in such capacity and together with any successors in such capacity, the “Collateral
Agent”) for the benefit of the Secured Creditors (as defined below). Except as otherwise
defined herein, all capitalized terms used herein and defined in the indenture, dated as of the
date hereof (as amended, modified or supplemented from time to time (the “Indenture”),
between the Company, the subsidiary guarantors party thereto from time to time and BNY as trustee
(the “Trustee”) and as Collateral Agent shall be used herein as so defined.

R E C I T A L S:

          1. The Company intends to issue on the date hereof $132,566,664.68 aggregate principal amount
of its 11% Senior Secured Notes due 2024 pursuant to the Indenture (together with any additional
11% Senior Secured Notes due 2024 issued from time to time in accordance with the Indenture, the
“Senior Secured Notes”).

          2. The obligations of the Company under the Indenture and the Senior Secured Notes will be
guaranteed by Laundry Corp. in accordance with the Indenture.

          3. Laundry Corp. will receive substantial benefits from the proceeds of the Senior Secured
Notes and has agreed to grant to the Collateral Agent Liens on and security interests in the
Collateral owned by it to secure its Obligations (as defined below).

          4. Laundry Corp. has previously granted a Lien and pledged all of its right, title and
interest in and relating to the Capital Stock of Coinmach Corporation (“Coinmach Corp.”), a
Delaware corporation, and Proceeds thereof (collectively, the “Shared Collateral”) in favor
of Deutsche Bank Trust Company Americas (“DB Trust”), as collateral agent (the “Credit
Agreement Collateral Agent”) under the Credit Agreement (as amended, modified or supplemented
from time to time, the “Credit Agreement”) dated as of January 25, 2002, among Laundry
Corp., Coinmach Corp., the lenders party thereto from time to time in their capacities as lenders
thereunder, DB Trust, as administrative agent and the Credit Agreement Collateral Agent.

          5. It is a condition precedent to the purchase of the Senior Secured Notes that the Pledgors
shall have executed and delivered this Agreement to the Collateral Agent for the benefit of the
Secured Creditors (as defined below).

          6. It is a condition precedent to the effectiveness of certain amendments to the Credit
Agreement and to the Holdings Pledge Agreement (as defined therein) necessary to permit the grant
by Laundry Corp. hereunder of the Liens in favor of the Collateral Agent on the

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Shared Collateral
that Laundry Corp. shall have executed and delivered a certain intercreditor agreement (the
“Intercreditor Agreement”) dated as of the date hereof (as the same may be amended,
supplemented or otherwise modified from time to time) among Laundry Corp., the Collateral Agent and
the Credit Agreement Collateral Agent.

          7. The Pledgors desire to enter into this Agreement in order to satisfy the condition
described in the preceding paragraph and to secure the payment and performance of all the
Obligations.

A G R E E M E N T:

          NOW, THEREFORE, in consideration of the above-described extensions of credit to be made to the
Pledgors and other benefits accruing to the Pledgors, the receipt and sufficiency of which are
hereby acknowledged, each Pledgor hereby makes the following representations and warranties to the
Collateral Agent for the benefit of the Secured Creditors and hereby covenants and agrees with the
Collateral Agent for the benefit of the Secured Creditors as follows:

ARTICLE I

SECURITY INTERESTS

          Section 1.1. Grant of Security Interests. (a) As security for the prompt and complete
payment and performance when due of all of the Obligations, each Pledgor does hereby collaterally
assign and transfer unto the Collateral Agent for the benefit of the Secured Creditors, and does
hereby grant to the Collateral Agent for the benefit of the Secured Creditors a continuing security
interest of first priority (subject to Liens evidenced by Permitted Filings and other Permitted
Liens) in, all of the right, title and interest of such Pledgor in, to and under all of the
following, whether now existing or hereafter from time to time acquired (collectively, the
“Collateral”):

   (i) all Equipment;

   (ii) all Inventory;

   (iii) all Contracts, together with all Contract Rights thereunder;

   (iv) all Instruments;

   (v) all General Intangibles;

   (vi) all Accounts;

   (vii) all Insurance Policies;

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   (viii) all Intellectual Property;

   (ix) all Chattel Paper;

   (x) all Investment Property and Financial Assets;

   (xi) all Deposit Accounts, including, without limitation, the Cash Collateral Account
established for the Pledgors and all monies, securities and instruments deposited or
required to be deposited in such Cash Collateral Account;

   (xii) all Letter-of-Credit Rights;

   (xiii) all Goods;

   (xiv) all Commercial Tort Claims, including, without limitation, each Specified
Commercial Tort Claim;

   (xv) all Documents;

   (xvi) all Fixtures;

   (xvii) all Supporting Obligations relating to any and all of the foregoing;

   (xviii) all books, records, ledgers, printouts, computer recording media, data files,
tapes, file materials and other papers containing information relating to any and all items
of Collateral; and

   (xix) to the extent not covered by clauses (i) through (xviii) of this sentence, all
other personal property whether tangible or intangible wherever located; and

   (xx) all Proceeds of any and all of the foregoing.

          (b) The security interests of the Collateral Agent under this Agreement extends to all
Collateral of the kind which is the subject of this Agreement which each Pledgor may acquire at any
time during the continuation of this Agreement.

          Section 1.2. Power of Attorney. Each Pledgor hereby constitutes and appoints the
Collateral Agent its true and lawful attorney, irrevocably with full power after the occurrence of
and during the continuance of an Event of Default (in the name of such Pledgor or as otherwise
provided herein), to take any action and to execute any instrument which is necessary or which the Collateral Agent may reasonably deem necessary or advisable to accomplish
the purposes of this Agreement, which appointment as attorney is coupled with an interest.

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ARTICLE II

GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

          Each Pledgor represents, warrants and covenants, as of the date hereof, which representations,
warranties and covenants shall survive execution and delivery of this Agreement, as follows:

          Section 2.1. Necessary Filings. All filings, registrations and recordings necessary or
appropriate to create, preserve, protect and perfect the security interest granted by each Pledgor
to the Collateral Agent hereby in respect of the Collateral are set forth in Schedule 7 to the
Perfection Certificate. To the knowledge of each Pledgor, such filings, registrations and
recordings have been filed, registered or recorded or concurrently herewith are being filed,
registered or recorded, and the security interest granted to the Collateral Agent pursuant to this
Agreement in and to the Collateral constitutes or shall constitute, upon such filing, registration
or recordings, a perfected security interest therein prior to the rights of all other Persons
therein and subject to no other Liens (except that the Collateral may be subject to the security
interests evidenced by the financing statements disclosed on Schedule 5 to the Perfection
Certificate (the “Permitted Filings”) and to any other Permitted Liens), and is or shall be
entitled to all the rights, priorities and benefits afforded by the Uniform Commercial Code to the
extent complied with or other relevant law as enacted in any relevant jurisdiction to perfected
security interests.

          Section 2.2. No Liens. Each Pledgor is, and as to Collateral acquired by it from time
to time after the date hereof such Pledgor will be, the owner of all of the Collateral pledged by
it hereunder free from any Lien, security interest, encumbrance or other right, title or interest
of any Person (other than Liens created hereby, Permitted Liens or Liens evidenced by the Permitted
Filings), and such Pledgor shall use its good faith efforts to defend the Collateral against all
claims and demands of all Persons at any time claiming the same or any interest therein adverse to
the Collateral Agent.

          Section 2.3. Other Financing Statements. As of the date hereof, there is no financing
statement (or similar statement or instrument of registration under the law of any jurisdiction) on
file or of record in any relevant jurisdiction covering or purporting to cover any interest of any
kind in the Collateral except as disclosed in Schedules 5 and 7 to the Perfection Certificate and
as may be filed in connection with Permitted Liens. So long as the Termination Date has not
occurred, no Pledgor shall execute or authorize to be filed in any public office any financing
statement (or similar statement or instrument of registration under the law of any jurisdiction) or
statements relating to the Collateral, except financing statements filed or to be filed in respect of and covering the security interests granted hereby by such
Pledgor or in respect of Permitted Liens.

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          Section 2.4. Chief Executive Office; Records; Corporate Name; Jurisdiction of
Incorporation. (a) As of the date hereof, the chief executive office of each Pledgor is
located at the address set forth on Schedule 2(a) to the Perfection Certificate.

          (b) The exact legal name, type of organization and jurisdiction of organization (together with
the organizational identification number, if any, issued by such jurisdiction to each Pledgor) of
each Pledgor is set forth in Schedule 1(a) to the Perfection Certificate. No Pledgor shall
“reincorporate” or “reorganize” or otherwise cause the Collateral to be transferred to a Person
incorporated or organized in another state except to the extent (i) permitted pursuant to the
provisions of the Indenture, (ii) it shall have given to the Collateral Agent not less than 10
days’ prior written notice of its intention so to do, clearly describing such transaction and
providing such other information in connection therewith as the Collateral Agent may reasonably
request, (iii) with respect to such transaction, such Pledgor shall have taken all action to
maintain the security interest of the Collateral Agent in the Collateral intended to be granted and
perfected hereby at all times fully perfected and in full force and effect and (iv) the Collateral
Agent shall have been provided with evidence that all other actions (including, without limitation,
the payment of all filing fees and taxes, if any, payable in connection with such actions) have
been taken, in order to perfect (and maintain the perfection and priority of) the security interest
granted hereby.

          Section 2.5. Location of Inventory and Equipment. All Inventory and Equipment held on
the date hereof by each Pledgor is located at one of the locations shown on the Schedules to
Section 2 of the Perfection Certificate. No Pledgor shall establish a new location for Equipment
and/or Inventory that shall cause the security interest of the Collateral Agent in such Equipment
and/or Inventory granted hereby (x) to be unperfected or (y) to lose its priority.

          Section 2.6. Recourse. This Agreement is made with full recourse to each Pledgor and
pursuant to and upon all the warranties, representations, covenants and agreements on the part of
such Pledgor contained herein or in the Senior Secured Notes or the Indenture, and otherwise in
writing in connection herewith or therewith.

          Section 2.7. Trade Names; Change of Name. No Pledgor has or operates in any
jurisdiction under, or in the preceding five years has not had or has not operated in any
jurisdiction under, any trade names, fictitious names or other names (including, without
limitation, any names of divisions or operations), except its legal name and such other trade,
fictitious or other names as are listed on Schedules 1(b) and 1(c) to the Perfection Certificate.
No Pledgor shall change its legal name or assume or operate in any jurisdiction under any trade,
fictitious or other name in any manner which might make any financing statement or continuation
statement filed in connection therewith seriously misleading within the meaning of Section 9-507
of the UCC except those names listed on Schedule 1(b) and 1(c) to the Perfection Certificate
and new names (including, without limitation, any names of divisions or operations) established in
accordance with the last sentence of this Section 2.7. No Pledgor shall assume or operate in any
jurisdiction under any new trade, fictitious or other name that would make any financing statement
or

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continuation statement filed in connection therewith, seriously misleading within the meaning of
Section 9-507 of the UCC until (i) it shall have given to the Collateral Agent not less than 10
days’ prior written notice of its intention so to do, clearly describing such new name and the
jurisdictions in which such new name shall be used and (ii) with respect to such new name, it shall
have taken all reasonable action to maintain the security interest of the Collateral Agent in the
Collateral intended to be granted hereby at all times fully perfected and in full force and effect.

          Section 2.8. Benefit to Laundry Corp. Laundry Corp. will receive substantial benefits
from the proceeds of the Senior Secured Notes.

ARTICLE III

SPECIAL PROVISIONS CONCERNING

ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS

AND CERTAIN OTHER TYPES OF COLLATERAL

          Section 3.1. Additional Representations and Warranties. As of the time when each of
its Accounts arises, each Pledgor shall be deemed to have represented and warranted that such
Account, and all records, papers and documents relating thereto (if any) are genuine and in all
material respects what they purport to be, and that all papers and documents (if any) relating
thereto to the actual knowledge of such Pledgor (i) will represent the genuine, legal, valid and
binding obligation of the account debtor evidencing indebtedness unpaid and owed by the respective
account debtor arising out of the performance of labor or services or the sale or lease and
delivery of the merchandise listed therein, or both, (ii) will be the only original writings
evidencing and embodying such obligation of the account debtor named therein (other than copies
created for general accounting purposes), (iii) will evidence true and valid obligations,
enforceable in accordance with their respective terms and (iv) will be in compliance and will
conform in each case in all material respects with all applicable federal, state and local laws and
applicable laws of any relevant foreign jurisdiction.

          Section 3.2. Maintenance of Records. Each Pledgor will keep and maintain at its own
cost and expense satisfactory and complete records of its Accounts and Contracts, including, but
not limited to, the originals or copies of all documentation (including each Contract) with respect
thereto, records of all payments received, all credits granted thereon, all merchandise returned
and all other dealings therewith, and such Pledgor will make the same available on such Pledgor’s
premises to the Collateral Agent for inspection, at such Pledgor’s own cost and expense, at any and
all reasonable times; provided, however, if no Event of Default has occurred and is
then continuing, the Collateral Agent shall give such Pledgor reasonable prior written notice of any such inspection. Upon the occurrence and
during the continuance of an Event of Default and upon the reasonable request of the Collateral
Agent, each Pledgor shall, at its own cost and expense, deliver all tangible evidence of its
Accounts and Contract Rights (including, without limitation, all documents evidencing the Accounts
and all Contracts) and such books and records to the Collateral Agent or to its representatives
(copies of which evidence and books and

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records may be retained by such Pledgor). Upon the
occurrence and during the continuance of an Event of Default and the delivery by the Collateral
Agent of notice thereof to the Company in accordance with Article Six of the Indenture to the
extent such notice is required pursuant to Article Six of the Indenture, if the Collateral Agent so
directs, each Pledgor shall legend its Accounts and the Contracts, as well as all books, records
and documents of such Pledgor evidencing or pertaining to such Accounts and Contracts with an
appropriate reference to the fact that such Accounts and Contracts have been assigned to the
Collateral Agent and that the Collateral Agent has a security interest therein.

          Section 3.3. Direction to Account Debtors; Contracting Parties, etc. Upon the
occurrence and during the continuance of an Event of Default and delivery of notice thereof to the
Company in accordance with Article Six of the Indenture to the extent such notice is required
pursuant to Article Six of the Indenture, and if the Collateral Agent so directs each Pledgor, to
the extent permitted by applicable law, each Pledgor agrees (x) to cause all payments on account of
the Accounts and Contracts to be made directly to the Cash Collateral Account, (y) that the
Collateral Agent may directly notify the obligors with respect to any Accounts and/or under any
Contracts to make payments with respect thereto as provided in preceding clause (x), and (z) that
the Collateral Agent may enforce collection of any such Accounts and Contracts and may adjust,
settle or compromise the amount of payment thereof, in the same manner and to the same extent as
such Pledgor. Without notice to or assent by any Pledgor, the Collateral Agent may apply any or
all amounts then in, or thereafter deposited in, the Cash Collateral Account which application
shall be effected in the manner provided in Section 7.4 of this Agreement. The reasonable costs
and expenses (including reasonable attorneys’ fees) of collection, whether incurred by any Pledgor
or the Collateral Agent, shall be borne by the Pledgors.

          Section 3.4. Modification of Terms, etc. Except as otherwise provided in the
Indenture, no Pledgor shall rescind or cancel any indebtedness evidenced by any Account or under
any Contract, or modify any term relating to such indebtedness or make any adjustment with respect
thereto, or extend or renew the same, or compromise or settle any material dispute, claim, suit or
legal proceeding relating thereto, or sell any Account or Contract, or interest therein, except as
permitted by Section 3.5. Except as otherwise provided in the Indenture, each Pledgor will duly
fulfill all obligations on its part to be fulfilled under or in connection with the Accounts and
Contracts and will do nothing to impair in any material respect the rights of the Collateral Agent
in the Accounts or Contracts. Notwithstanding anything to the contrary in this Agreement, each
Pledgor may forgive or cancel the indebtedness described in Schedule 12 to the Perfection
Certificate and owed to it as of the date hereof, together with interest thereon, by any employee,
officer or any of its Restricted Subsidiaries consistent with past practice of Laundry Corp., in
each case to the extent not prohibited by the Indenture.

          Section 3.5. Collection. Each Pledgor shall endeavor to cause to be collected from the
account debtor named in each of its Accounts or obligor under any of its Contracts, as and when due
(including, without limitation, amounts which are delinquent, such amounts to be collected in
accordance with generally accepted lawful collection procedures) any and all

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amounts owing under or
on account of such Account or Contract, and apply forthwith upon receipt thereof all such amounts
as are so collected to the outstanding balance of such Account or under such Contract, except that,
unless an Event of Default has occurred and is continuing and the Collateral Agent has delivered
notice thereof to the Company in accordance with Article Six of the Indenture to the extent such
notice is required pursuant to Article Six of the Indenture, and unless such notice prohibits the
following, such Pledgor may allow in the ordinary course of business as adjustments to amounts
owing under its Accounts and Contracts (i) an extension or renewal of the time or times of payment,
or settlement for less than the total unpaid balance, as such Pledgor finds appropriate in
accordance with sound business judgment and (ii) a refund or credit due as a result of returned or
damaged merchandise or improperly performed services. The reasonable costs and expenses
(including, without limitation, reasonable attorneys’ fees) of collection, whether incurred by any
Pledgor or the Collateral Agent, shall be borne by the Pledgors.

          Section 3.6. Further Actions. Each Pledgor will, at its own expense, make, execute,
endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such vouchers,
invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer
endorsements, powers of attorney, certificates, reports and other assurances or instruments and
take such further steps relating to its Accounts, Contracts, Instruments and other property or
rights covered by the security interest hereby granted as may be required hereunder or as the
Collateral Agent may reasonably require.

          Section 3.7. Special Provisions Regarding Certain Types of Collateral.

       (a) Deposit Accounts, Securities Accounts and Commodity Accounts. (i) Each Pledgor hereby represents, warrants and covenants that (A) it does not
maintain any Securities Accounts or Commodity Accounts with any Securities Intermediary or
Commodity Intermediary other than the Securities Accounts and/or Commodity Accounts listed
in Schedule 16 to the Perfection Certificate and (B) it shall not in the future maintain any
Securities Accounts or Commodity Accounts except with any Securities Intermediary or
Commodity Intermediary in accordance with the provisions of this Section 3.7. Each Pledgor
hereby represents and warrants that it does not maintain any Deposit Accounts other than the
Deposit Accounts listed in Schedule 16 to the Perfection Certificate (the “Existing
Deposit Accounts”). Each Pledgor agrees that, consistent with its existing practice, it
shall (i) deposit all amounts collected in the ordinary course of its business into the
Existing Deposit Accounts and (ii) ensure that no funds in an aggregate amount exceeding
$500,000 are on deposit for more than five Business Days in any Deposit Account with respect to which the Collateral Agent does not have control
and that no funds in an aggregate amount exceeding $3,000,000 are on deposit for more than
five Business Days in all Deposit Accounts with respect to which the Collateral Agent does
not have control. No Pledgor shall hereafter establish and maintain any Deposit Account,
Securities Account or Commodity Account with any Depository Bank, Securities Intermediary or
Commodity Intermediary, respectively, unless (1) such Pledgor shall have

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given the
Collateral Agent 10 days’ prior written notice of its intention to establish such new
Deposit Account, Securities Accounts or Commodity Accounts with such Depository Bank,
Securities Intermediary or Commodity Intermediary, (2) such Depository Bank, Securities
Intermediary or Commodity Intermediary shall be reasonably acceptable to the Collateral
Agent and (3) in the case of a new Deposit Account, Securities Account or Commodity
Account, the Pledgor shall have used commercially reasonable efforts to cause such
Depository Bank, Securities Intermediary or Commodity Intermediary to enter into a Control
Agreement. Each Pledgor shall accept any cash and Investment Property in trust for the
benefit of the Collateral Agent and within one (1) Business Day of actual receipt thereof,
deposit any cash or Investment Property and any new securities, instruments, documents or
other property by reason of ownership of the Investment Property received by it into a
Deposit Account, Securities Account or Commodity Account subject to Collateral Agent’s
control.

       (ii) Each Pledgor hereby acknowledges and agrees that notwithstanding any provisions
hereof or any other circumstance to the contrary, the Pledgors will use commercial
reasonable efforts to cause the Collateral Agent at all times to (A) have “control” (as
defined in Section 8-106 of the UCC) of all Investment Property, as confirmed in one or more
Control Agreements in respect thereof, and (B) be authorized to direct the applicable
Securities Intermediary or Commodity Intermediary with respect to such Investment Property
to comply without further consent of such Pledgor or any investment manager or any other
Person acting or purporting to act for any Pledgor being required, with all Entitlement
Orders originated by the Collateral Agent with respect to the Investment Property. The
Collateral Agent hereby agrees that it shall not issue any Entitlement Orders to any
Securities Intermediary or Commodity Intermediary in respect of the Investment Property
except in connection with the Collateral Agent’s exercise of remedies upon the occurrence of
an Event of Default.

       (iii) Each Pledgor hereby acknowledges and agrees that notwithstanding any provisions
hereof or any other circumstance to the contrary, the Pledgors will use commercially
reasonable efforts to cause the Collateral Agent at all times to (A) have “control” (as
defined in Section 9-104 of the UCC) of all Deposit Accounts, as confirmed in the Control
Agreement in respect thereof, and (B) be authorized to direct the institution maintaining
such Deposit Account to comply without further consent of any Pledgor or any person acting
or purporting to act for any Pledgor being required, with all instructions originated by the
Collateral Agent directing disposition of the funds in such Deposit Account. The Collateral
Agent hereby agrees that it shall not issue any such instructions
to the institution maintaining the Deposit Account except in connection with the
Collateral Agent’s exercise of remedies upon the occurrence of an Event of Default.

       (iv) So long as no Event of Default has occurred and is continuing, each Pledgor may
trade, sell, exchange, lend, apply or transfer funds or Investment Property from any Deposit
Account, Securities Account or Commodity Account, in each case to

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the extent not
inconsistent with the other provisions hereof or the provisions of the Indenture; and

       (v) As between the Collateral Agent and each Pledgor, such Pledgor shall bear the
investment risk with respect to the Investment Property, and the risk of loss of, damage to,
or the destruction of any cash or the Investment Property, whether in the possession of, or
maintained as a security entitlement or deposit by, or subject to the control of, the
Collateral Agent, a Securities Intermediary, a Commodity Intermediary or a Depository Bank,
such Pledgor or any other Person; provided, however, that nothing contained in
this Section 3.7(a)(v) shall release or relieve any Securities Intermediary, Commodity
Intermediary or Depository Bank of its duties and obligations to such Pledgors or any other
Person under the applicable Control Agreement or under applicable law. Each Pledgor shall
promptly pay all charges and fees of whatever kind or nature with respect to the cash or
Investment Property pledged by it or under this Agreement. In the event such Pledgor shall
fail to make such payment contemplated in the immediately preceding sentence, the Collateral
Agent may do so for the account of such Pledgor and such Pledgor shall promptly reimburse
and indemnify the Collateral Agent from all costs and expenses incurred by the Collateral
Agent under this Section 3.7(a)(v) in accordance with Section 8.1 hereof.

          (b) Instruments and Tangible Chattel Paper. If any amount payable under or in
connection with any of the Collateral shall be evidenced by any Instrument or Tangible
Chattel Paper in an amount in excess of $250,000, the Pledgor acquiring such Instrument or
Tangible Chattel Paper shall forthwith endorse, assign and deliver the same to the
Collateral Agent, accompanied by such instruments of transfer or assignment duly executed in
blank. As of the date hereof, such Instruments and Tangible Chattel Paper are set forth on
Schedule 12 to the Perfection Certificate.

          (c) Electronic Chattel Paper and Transferable Records. If any amount payable
under or in connection with any of the Pledged Collateral shall be evidenced by any
Electronic Chattel Paper or any “transferable record,” as that term is defined in Section
201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section
16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, in
each case in an amount in excess of $250,000, the Pledgor acquiring such Electronic Chattel
Paper or Transferable record shall promptly notify the Collateral Agent thereof and shall
take such action as is necessary to vest in the Collateral Agent control under UCC Section
9-105 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, Section 16 of the Uniform Electronic Transactions Act, as so in
effect in such jurisdiction, of such transferable record. The Collateral Agent agrees with
each Pledgor that the Collateral Agent will permit such Pledgor to make alterations to the
Electronic Chattel Paper or transferable record permitted under UCC Section 9-105 or, as the
case may be, Section 201 of the Federal Electronic Signatures in Global and National

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Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in control
to allow without loss of control, unless an Event of Default has occurred and is continuing
or would occur after taking into account any action by any Pledgor with respect to such
electronic chattel paper or transferable record.

          (d) Letter-of-Credit Rights. If any Pledgor is at any time a beneficiary under
a Letter of Credit now or hereafter issued in favor of such Pledgor in an amount in excess
of $250,000, such Pledgor shall promptly notify the Collateral Agent thereof and arrange for
the issuer and any confirmer of such Letter of Credit to consent to an assignment to the
Collateral Agent of the proceeds of any drawing under such Letter of Credit.

          (e) Commercial Tort Claims. If any Pledgor shall at any time hold or acquire a
Commercial Tort Claim in an amount in excess of $250,000, such Pledgor shall immediately
notify the Collateral Agent in writing signed by such Pledgor of the brief details thereof
and grant to the Collateral Agent in such writing a security interest therein and in the
Proceeds thereof, all upon the terms of this Agreement.

          (f) Motor Vehicles. At any time after the occurrence and during the continuance
of an Event of Default, each Pledgor shall deliver to the Collateral Agent originals of the
certificates of title or ownership for the motor vehicles (and any other Equipment covered
by Certificates of Title or ownership owned by it) with the Collateral Agent listed as
lienholder therein.

          (g) Intercompany Note and Intercompany Note Guaranty. No Pledgor shall:

       (i) sell, convey, transfer or assign (or otherwise engage in any other transfer for
value of) the Intercompany Note or Intercompany Note Guaranty or any of its interest
therein;

       (ii) amend, supplement, or waive any provision of the Intercompany Note or the
Intercompany Note Guaranty, other than any amendment, supplement or waiver which would not
have an adverse effect on the interests of the Collateral Agent or any other Secured
Creditor, the Indenture or the Senior Secured Notes, or subordinate its rights under the
Intercompany Note or the Intercompany Note Guaranty to the rights of any other creditor of
Coinmach Corp.;

       (iii) compromise, reduce, forgive or release or extend the time for payment of any
obligation of Coinmach Corp. under the Intercompany Note or of any Intercompany Note
Guarantor under the Intercompany Note Guaranty; or

       (iv) take or omit to take any action the taking or the omission of which would result
in any material impairment or alteration of any obligation of Coinmach Corp. under

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the Intercompany Note or any Intercompany Note Guarantor under the Intercompany Note Guaranty.

ARTICLE IV

SPECIAL PROVISIONS CONCERNING MARKS

          Section 4.1. Additional Representations and Warranties. Each Pledgor represents and
warrants that, as of the date hereof, it is the true and lawful exclusive owner of its Trademarks
listed in Schedule 14(a) to the Perfection Certificate and that said listed Trademarks include all
the United States federal registrations or applications registered in the United States Patent and
Trademark Office. Each Pledgor represents and warrants that, to the best of its knowledge, it owns
or is licensed to use or is not prohibited from using all Trademarks that it uses. Each Pledgor
further warrants that it is aware of no third party claim that any aspect of such Pledgor’s present
or contemplated business operations infringes or will infringe any Trademark. Each Pledgor
represents and warrants that it is the owner of record of all United States registrations and
applications listed in Schedule 14(a) to the Perfection Certificate and that said registrations are
valid, subsisting, have not been canceled and that such Pledgor is not aware of any third-party
claim that any of said registrations is invalid or unenforceable. Each Pledgor hereby grants to
the Collateral Agent an absolute power of attorney to sign, upon the occurrence and during the
continuance of an Event of Default and delivery of notice thereof to the Company in accordance with
Article Six of the Indenture to the extent such notice is required pursuant to Article Six of the
Indenture, and delivery of notice of its intention to exercise any or all of its rights under this
Section 4.1, any document which may be required by the United States Patent and Trademark Office in
order to effect an absolute assignment of all right, title and interest in each Trademark and
associated Goodwill, and record the same.

          Section 4.2. Licenses and Assignments. Other than the license agreements listed on
Schedule 14(a) to the Perfection Certificate, nonexclusive license agreements and any extensions or
renewals thereof, each Pledgor hereby agrees not to divest itself of any right under any
Significant Trademark.

          Section 4.3. Infringements. Each Pledgor agrees, promptly upon learning thereof, to
notify the Collateral Agent in writing of the name and address of, and to furnish such pertinent
information that may be available with respect to, any party who may be infringing or otherwise
violating any of such Pledgor’s rights in and to any Significant Trademark, or with respect to any
party claiming that such Pledgor’s use of any Significant Trademark violates any property right of that party, in each case to the extent that such Pledgor
reasonably believes that such infringement or violation is material to its business. Each Pledgor
further agrees, if consistent with good business practice and unless otherwise agreed by the
Collateral Agent, diligently to prosecute any Person infringing any Significant Trademark to the
extent that such Pledgor reasonably believes that such infringement is material to its business.

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          Section 4.4. Preservation of Trademarks. Each Pledgor agrees to use its Significant
Marks in interstate commerce during the time in which this Agreement is in effect, sufficiently to
preserve such Significant Trademarks as trademarks or service marks registered under the laws of
the United States.

          Section 4.5. Maintenance of Registration. Each Pledgor shall, at its own expense,
diligently process all documents required by the Trademark Act of 1946, 15 U.S.C. §§ 1051 et seq.
to maintain trademark registration, including but not limited to affidavits of use and applications
for renewals of registration in the United States Patent and Trademark Office for all of its
Significant Trademarks pursuant to 15 U.S.C. §§ 1058(a), 1059 and 1065, and shall pay all fees and
disbursements in connection therewith and shall not abandon any such filing of affidavit of use or
any such application of renewal prior to the exhaustion of all reasonable administrative and
judicial remedies.

          Section 4.6. Future Registered Marks. If any Trademark registration issues hereafter
to any Pledgor as a result of any application now or hereafter pending before the United States
Patent and Trademark Office, within thirty (30) days of receipt of such certificate such Pledgor
shall deliver a copy of such certificate, and a grant of security interest in such Trademark to the
Collateral Agent, confirming the grant thereof hereunder, the form of such confirmatory grant to be
substantially the same as the form hereof.

          Section 4.7. Remedies. If an Event of Default shall occur and be continuing, the
Collateral Agent may but is not obligated, upon delivery to the Company of written notice thereof
in accordance with Article Six of the Indenture to the extent such notice is required by Article
Six of the Indenture, and delivery of notice of its intention to exercise any or all of its rights
under this Section 4.7, take any or all of the following actions: (i) declare the entire right,
title and interest of each Pledgor in and to each of the Trademarks and the Goodwill of the
business associated therewith, together with all trademark rights and rights of protection to the
same, vested, in which event such rights, title and interest shall immediately vest, in the
Collateral Agent for the benefit of the Secured Creditors, in which case the Collateral Agent shall
be entitled to exercise the power of attorney referred to in Section 4.1 to execute, cause to be
acknowledged and notarized and record said absolute assignment with the applicable agency; (ii)
take and use or sell the Trademarks and the Goodwill of each Pledgor’s business symbolized by the
Trademarks and the right to carry on the business and use the assets of each Pledgor in connection
with which the Trademarks have been used; and (iii) direct each Pledgor to refrain, in which event
such Pledgor shall refrain, from using the Trademarks in any manner whatsoever, directly or
indirectly, and, if requested by the Collateral Agent, change such Pledgor’s corporate
name to eliminate therefrom any use of any Trademark and execute such other and further
documents necessary to further confirm this and to transfer ownership of the Trademarks and
registrations and any pending trademark application in the United States Patent and Trademark
Office or any equivalent government agency or office in any foreign jurisdiction to the Collateral
Agent.

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ARTICLE V

SPECIAL PROVISIONS CONCERNING

PATENTS AND COPYRIGHTS

          Section 5.1. Additional Representations and Warranties. Each Pledgor represents and
warrants that to the best of its knowledge, as of the date hereof, it is the true and lawful
exclusive owner of all rights in its Patents listed in Schedule 14(a) to the Perfection Certificate
and in the Copyrights listed in Schedule 14(b) to the Perfection Certificate hereto, that said
Patents include all the United States patents and applications for United States patents that such
Pledgor now owns and that said Copyrights constitute all the United States Copyrights registered
with the United States Copyright Office and applications for United States copyrights that the
Pledgor now owns. Each Pledgor represents and warrants that to the best of its knowledge, as of
the date hereof, it owns or is licensed to practice under all Patents and Copyrights that it now
uses or practices under. Such Pledgor further warrants that it is aware of no third party claim
that any aspect of such Pledgor’s present or contemplated business operations infringes or will
infringe any Patent or any Copyright. Each Pledgor hereby grants to the Collateral Agent an
absolute power of attorney to sign, upon the occurrence and during the continuance of any Event of
Default and delivery of notice thereof to the Company in accordance with Article Six of the
Indenture to the extent such notice is required pursuant to Article Six of the Indenture, and
delivery of notice of its intention to exercise any or all of its rights under this Section 5.1,
any document which may be required by the United States Patent and Trademark Office or the United
States Copyright Office in order to effect an absolute assignment of all right, title and interest
in each Patent and Copyright, and record the same.

          Section 5.2. Licenses and Assignments. Other than the license agreements listed on
Schedules 14(a) and 14(b) to the Perfection Certificate, nonexclusive license agreements and any
extensions or renewals thereof, each Pledgor hereby agrees not to divest itself of any right under
any Significant Patent or Significant Copyright.

          Section 5.3. Infringements. Each Pledgor agrees, promptly upon learning thereof, to
furnish the Collateral Agent in writing with all pertinent information available to such Pledgor
with respect to any infringement or other violation of such Pledgor’s rights in any Significant
Patent or Significant Copyright, or with respect to any claim that practice of any Significant
Patent or Significant Copyright violates any property right of that party, in each case to the
extent that such Pledgor reasonably believes that such infringement or violation is material to its
business. Each Pledgor further agrees, consistent with good business practice to
use its comercially reasonable efforts to prosecute any Person infringing any Significant
Patent or Significant Copyright to the extent that such Pledgor reasonably believes that such
infringement is material to its business, which consent shall not be unreasonably withheld.

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     Section 5.4. Maintenance of Patents. At its own expense, each Pledgor shall make
timely payment of all post-issuance fees required pursuant to 15 U.S.C. § 41 to maintain in force
rights under each Significant Patent.

     Section 5.5. Prosecution of Patent Application. At its own expense, each Pledgor shall
diligently prosecute all applications for Significant Patents listed in Schedule 14(a) to the
Perfection Certificate and shall not abandon any such application prior to exhaustion of all
reasonable administrative and judicial remedies.

     Section 5.6. Other Patents and Copyrights. Within 30 days of acquisition of any Patent
or Copyright, or of filing of an application for any Patent or Copyright, each Pledgor shall
deliver to the Collateral Agent a copy of such Patent or Copyright or such application, as the case
may be, with a grant of security as to such Patent or Copyright, as the case may be, confirming the
grant thereof hereunder, the form of such confirmatory grant to be substantially the same as the
form hereof.

     Section 5.7. Remedies. If an Event of Default shall occur and be continuing and
Collateral Agent has delivered notice thereof to the Company in accordance with Article Six of the
Indenture to the extent such notice is required pursuant to Article Six of the Indenture, the
Collateral Agent may by written notice to the Company, take any or all of the following actions:
(i) declare the entire right, title, and interest of each Pledgor in each of its Patents and
Copyrights vested, in which event such right, title, and interest shall immediately vest in the
Collateral Agent for the benefit of the Secured Creditors, in which case the Collateral Agent shall
be entitled to exercise the power of attorney referred to in Section 5.1 to execute, cause to be
acknowledged and notarized and record said absolute assignment with the applicable agency; (ii)
take and practice or sell the Patents and Copyrights; and (iii) direct each Pledgor to refrain, in
which event such Pledgor shall refrain, from practicing the Patents and Copyrights directly or
indirectly, and such Pledgor shall execute such other and further documents as necessary to confirm
this and to transfer ownership of the Patents and Copyrights to the Collateral Agent for the
benefit of the Secured Creditors.

ARTICLE VI

PROVISIONS CONCERNING ALL COLLATERAL

          Section 6.1. Protection of Collateral Agent’s Security. No Pledgor will do anything to
impair in any material respect the rights of the Collateral Agent in the Collateral. Each Pledgor
will at all times keep its Inventory and Equipment insured in favor of the Collateral Agent, at
such Pledgor’s own expense to the extent and in the manner provided in the Indenture. If such Pledgor shall fail to insure its Inventory and Equipment in accordance
with the preceding sentence, or if such Pledgor shall fail to so endorse and deposit all policies
with respect thereto, the Collateral Agent shall have the right (but shall be under no obligation),
upon prior notice to such Pledgor, to procure such insurance and such Pledgor agrees to promptly
reimburse the Col-

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lateral Agent for all reasonable costs and expenses of procuring such insurance.
The Collateral Agent shall, at the time such proceeds of such insurance are distributed to the
Secured Creditors, apply such proceeds in accordance with Section 7.4 or as otherwise provided in
the Indenture. Each Pledgor assumes all liability and responsibility in connection with the
Collateral acquired by it and the liability of such Pledgor to pay the Obligations shall in no way
be affected or diminished by reason of the fact that such Collateral may be lost, destroyed,
stolen, damaged or for any reason whatsoever unavailable to such Pledgor unless such loss or damage
is finally judicially determined to have been incurred by reason of the gross negligence or willful
misconduct of any Secured Creditor or any agent of any Secured Creditor or the failure of a Secured
Creditor, in exercising its remedies hereunder, to act in a commercially reasonable manner.

          Section 6.2. Warehouse Receipts Non-negotiable. Each Pledgor agrees that if any
warehouse receipt or receipt in the nature of a warehouse receipt is issued with respect to any of
its Inventory, such warehouse receipt or receipt in the nature thereof shall not be “negotiable”
(as such term is used in Section 7-104 of the Uniform Commercial Code as in effect in any relevant
jurisdiction or under other relevant law).

          Section 6.3. Further Actions. Each Pledgor will, at its own expense, make, execute,
endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such lists,
descriptions and designations of its Collateral, warehouse receipts, receipts in the nature of
warehouse receipts, bills of lading, documents of title, vouchers, invoices, schedules,
confirmatory assignments, conveyances, financing statements, transfer endorsements, powers of
attorney, certificates, reports and other assurances or instruments and take such further steps
relating to the Collateral and other property or rights covered by the security interest hereby
granted, which is necessary or which the Collateral Agent may reasonably deem necessary or
advisable to perfect, preserve or protect its security interest in the Collateral in accordance
with the terms hereof.

          Section 6.4. Financing Statements. Each Pledgor agrees to execute and deliver to the
Collateral Agent such financing statements, in form reasonably acceptable to the Collateral Agent,
as the Collateral Agent may from time to time reasonably request or as are necessary to establish
and maintain a valid, enforceable, first priority perfected security interest (subject to Permitted
Liens) in the Collateral as provided herein and the other rights and security contemplated hereby
all in accordance with the Uniform Commercial Code as enacted in any and all applicable
jurisdictions or any other applicable law. Each Pledgor will pay any applicable filing fees,
recordation taxes and related expenses. Each Pledgor authorizes the Collateral Agent to file any
such financing statements without the signature of such Pledgor where permitted by law including,
without limitation, the filing of financing statements describing the Collateral as “all assets in
which the Debtor now owns or hereafter acquires rights.”

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ARTICLE VII

REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT

          Section 7.1. Remedies; Obtaining the Collateral Upon Default. Each Pledgor agrees
that, if any Event of Default shall have occurred and be continuing and the Collateral Agent shall
have delivered to the Company notice thereof in accordance with Article Six of the Indenture to the
extent such notice is required pursuant to Article Six of the Indenture, and delivery of notice of
its intention to exercise any or all of its rights under this Section 7.1, then and in every such
case, subject to any mandatory requirements of applicable law then in effect, the Collateral Agent,
in addition to any rights now or hereafter existing under applicable law, shall have all rights as
a secured creditor under the Uniform Commercial Code in all applicable jurisdictions and may, but
without any obligation, also (subject to laws and regulations governing the national security of
the United States):

          (a) personally, or by agents or attorneys, immediately retake possession of the Collateral or
any part thereof, from such Pledgor or any other Person who then has possession of any part thereof
with or without notice or process of law, and for that purpose may enter upon such Pledgor’s
premises where any of the Collateral is located and remove the same and use in connection with such
removal any and all services, supplies, aids and other facilities of such Pledgor; possession of
machinery shall, however, be subject to the terms of the Location Leases; and

          (b) instruct the obligor or obligors on any agreement, instrument or other obligation
(including, without limitation, the Accounts and the Contracts) constituting the Collateral to make
any payment required by the terms of such agreement, instrument or other obligation directly to the
Collateral Agent and may exercise any and all remedies of such Pledgor in respect of such
Collateral; and

          (c) withdraw all monies, securities and instruments in the Cash Collateral Account for
application to the Obligations in accordance with Section 7.4; and

          (d) sell, assign or otherwise liquidate, or direct such Pledgor to sell, assign or otherwise
liquidate, any or all of its Collateral or any part thereof, and take possession of the proceeds of
any such sale or liquidation; and

          (e) take possession of the Collateral or any part thereof, by directing such Pledgor in
writing to deliver the same to the Collateral Agent at any commercially reasonable place or places
designated by the Collateral Agent, in which event such Pledgor shall at its own expense:

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               (i) forthwith cause the Collateral pledged by it to be moved to the place or
places so designated by the Collateral Agent and there delivered to the Collateral
Agent, and

               (ii) store and keep any Collateral so delivered to the Collateral Agent at such
place or places pending further action by the Collateral Agent as provided in
Section 7.2, and

               (iii) while the Collateral shall be so stored and kept, provide such guards and
maintenance services as shall be necessary to protect the same and to preserve and
maintain them in good condition; and

          (f) license or sublicense (to the extent not in violation of the license), whether on an
exclusive or nonexclusive basis, any Trademarks, Patents or Copyrights included in the Collateral;

it being understood that such Pledgor’s obligation so to deliver the Collateral is of the essence
of this Agreement and that, accordingly, upon application to a court of equity having jurisdiction,
the Collateral Agent shall be entitled to a decree requiring specific performance by such Pledgor
of said obligation.

          Section 7.2. Remedies; Disposition of the Collateral. Any Collateral repossessed by
the Collateral Agent under or pursuant to Section 7.1 and any other Collateral whether or not so
repossessed by the Collateral Agent, may be sold, assigned, leased or otherwise disposed of under
one or more contracts or as an entirety, and without the necessity of gathering at the place of
sale the property to be sold, and in general in such manner, at such time or times, at such place
or places and on such terms as the Collateral Agent may, in compliance with any mandatory
requirements of applicable law, determine. Any of the Collateral may be sold, leased or otherwise
disposed of, in the condition in which the same existed when taken by the Collateral Agent or after
any commercially reasonable overhaul or repair made by or at the direction of the Collateral Agent.
To the extent permitted by any requirement of law, the Collateral Agent and the Secured Creditors
or any of their respective Affiliates may be the purchaser, licensee, assignee or recipient of any
or all of the Collateral at any such sale and shall be entitled, for the purpose of bidding and
making settlement or payment of the purchase price for all or any portion of the Collateral sold,
assigned or licensed at such sale, to use and apply any of the Obligations owed to such Person as a
credit on account of the purchase price of any Collateral payable by such Person at such sale.
Each purchaser, assignee, licensee or recipient at any such sale shall acquire the property sold,
assigned or licensed absolutely free from any claim or right on the part of any Pledgor, and each
Pledgor hereby waives, to the fullest extent permitted by law, all rights of redemption, stay
and/or appraisal which it now has or may at any time in the future have under any rule of law or
statute now existing or hereafter enacted. The Collateral Agent shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. The Collateral Agent may
adjourn any public or private sale from time to time by announcement at

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the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned. Each Pledgor hereby waives, to the
fullest extent permitted by law, any claims against the Collateral Agent arising by reason of the
fact that the price at which any Collateral may have been sold, assigned or licensed at such a
private sale was less than the price which might have been obtained at a public sale, even if the
Collateral Agent accepts the first offer received and does not offer such Pledged Collateral to
more than one offeree. Each Pledgor acknowledges and agrees that, to the extent notice of sale
shall be required by law, ten days’ notice to such Pledgor of the time and place of any public sale
or of the time after which any private sale or other intended disposition is to take place shall be
commercially reasonable notification of such matters. No notification need be given to any Pledgor
if it has signed, after the occurrence of an Event of Default, a statement renouncing or modifying
any right to notification of sale or other intended disposition. Each Pledgor agrees to do or
cause to be done all such other acts and things as may be reasonably necessary to make such sale or
sales of all or any portion of the Collateral valid and binding and in compliance with any and all
applicable laws, regulations, orders, writs, injunctions, decrees or awards of any and all courts,
arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction over any
such sale or sales, all at such Pledgor’s reasonable expense.

          Section 7.3. Waiver of Claims. Except as otherwise provided in this Agreement, EACH
PLEDGOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN
CONNECTION WITH THE COLLATERAL AGENT’S TAKING POSSESSION OR THE COLLATERAL AGENT’S DISPOSITION OF
ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY
PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH RIGHT WHICH SUCH PLEDGOR WOULD OTHERWISE HAVE UNDER THE
CONSTITUTION OR ANY STATUTE OF THE UNITED STATES OR OF ANY STATE, and each Pledgor hereby further
waives, to the extent permitted by law:

          (a) all damages occasioned by such taking of possession except any damages which are the
direct result of the Collateral Agent’s gross negligence or willful misconduct or failure to act,
in exercising its remedies hereunder, in a commercially reasonable manner;

          (b) all other requirements as to the time, place and terms of sale or other requirements with
respect to the enforcement of the Collateral Agent’s rights hereunder; and

          (c) all rights of redemption, appraisement, valuation, stay, extension or moratorium now or
hereafter in force under any applicable law in order to prevent or delay the enforcement of this
Agreement or the absolute sale of the Collateral or any portion thereof, and each Pledgor, for
itself and all who may claim under it, insofar as it or they now or hereafter lawfully may, hereby
waives the benefit of all such laws unless such action or threatened action is not commercially
reasonable.

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Any sale of, or the grant of options to purchase, or any other realization upon, any Collateral
shall operate to divest all right, title, interest, claim and demand, either at law or in equity,
of each Pledgor therein and thereto, and shall be a perpetual bar both at law and in equity against
such Pledgor and against any and all Persons claiming or attempting to claim the Collateral so
sold, optioned or realized upon, or any part thereof, from, through and under such Pledgor other
than any Collateral remaining after the occurrence of the Termination Date.

          Section 7.4. Application of Proceeds. (a) All moneys collected by the Collateral
Agent (or, to the extent any Pledge Agreement or any other Collateral Agreement to which any
Pledgor is a party requires proceeds of Collateral under such agreement to be applied in accordance
with the provisions of this Agreement, the pledgee or secured creditor under such other agreement)
upon any sale or other disposition of the Collateral, together with all other moneys received by
the Collateral Agent hereunder, shall be applied in the order set forth in Section 6.10 of the
Indenture. Any balance of such Proceeds remaining after the occurrence of the Termination Date,
shall be paid over to the applicable Pledgor or to whomsoever may be lawfully entitled to receive
the same.

          (b) It is understood and agreed that each Pledgor shall remain liable to the extent of any
deficiency between the amount of the proceeds of the Collateral hereunder and the aggregate amount
of the Obligations, except to the extent that such proceeds are not applied by the Collateral Agent
in accordance with this Agreement and the Indenture.

          Section 7.5. Remedies Cumulative. Each and every right, power and remedy hereby
specifically given to the Collateral Agent shall be in addition to every other right, power and
remedy specifically given under this Agreement, the Senior Secured Notes or the Indenture or now or
hereafter existing at law or in equity, or by statute and each and every right, power and remedy
whether specifically herein given or otherwise existing may be exercised from time to time or
simultaneously and as often and in such order as may be deemed expedient by the Collateral Agent.
All such rights, powers and remedies shall be cumulative and the exercise or the beginning of
exercise of one shall not be deemed a waiver of the right to exercise of any other or others. No
delay or omission of the Collateral Agent in the exercise of any such right, power or remedy,
renewal or extension of any of the Obligations and no course of dealing between any Pledgor and the
Collateral Agent or any holder of any of the Obligations shall impair any such right, power or
remedy or shall be construed to be a waiver of any Default or Event of Default or an acquiescence
therein. No notice to or demand on any Pledgor in any case shall entitle it to any other or
further notice or demand in similar or other circumstances or constitute a waiver of any of the
rights of the Collateral Agent to any other or further action in any circumstances without notice
or demand. In the event that the Collateral Agent shall bring any suit to enforce any of its
rights hereunder and shall be entitled to judgment, then in such suit the Collateral Agent may
recover expenses, including reasonable attorneys’ fees, and the amounts thereof shall be included
in such judgment.

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          Section 7.6. Discontinuance of Proceedings. In case the Collateral Agent shall have
instituted any proceeding to enforce any right, power or remedy under this Agreement by
foreclosure, sale, entry or otherwise, and such proceeding shall have been discontinued or
abandoned for any reason or shall have been determined adversely to the Collateral Agent, then and
in every such case each Pledgor, the Collateral Agent and each holder of any of the Obligations
shall be restored to their former positions and rights hereunder with respect to the Collateral
subject to the security interest created under this Agreement, and all rights, remedies and powers
of the Collateral Agent shall continue as if no such proceeding had been instituted.

          Section 7.7. Additional Remedies With Respect to Collateral Located in Louisiana. Upon
the occurrence and during the continuance of any Event of Default and provided that the Collateral
Agent shall have delivered to the Company notice thereof in accordance with Article Six of the
Indenture to the extent such notice is required pursuant to Article Six of the Indenture, and
delivery of notice of its intention to exercise any or all of its rights under this Section 7.7,
the Collateral Agent shall be entitled to exercise any one or more of the following remedies (all
of which are cumulative):

          (a) Default Remedies. In addition to the rights of the Collateral Agent with respect
to possessory collateral, the Collateral Agent shall have the right, in accordance with the
Indenture, to accelerate payment of all amounts that each Pledgor may then owe to the Secured
Creditors, which will then entitle the Collateral Agent to foreclose under this Agreement under
ordinary or executory process procedures, or under the seizure and disposition remedies set forth
in R.S. 6:965 et seq. (where applicable), and to cause the Collateral to be immediately
seized wherever found, and sold with or without appraisal, in regular session of court or in
vacation, in accordance with applicable Louisiana law, without the necessity of further demanding
payment from such Pledgor, or of notifying such Pledgor, or placing such Pledgor in default. For
purposes of foreclosure under Louisiana executory process procedures, such Pledgor confesses
judgment and acknowledges to be indebted to the Secured Creditors up to the full amount of the
Obligations, in principal, interest, costs, expenses, attorney’s fees and other fees and charges
and all other amounts secured by this Agreement. To the extent permitted under applicable
Louisiana law, each Pledgor additionally: (A) waives any benefit of appraisal as provided under
Articles 2332, 2336, 2723 and 2724 of the Louisiana Code of Civil Procedure, and all other laws
with regard to appraisal upon judicial sale, recognizing that no appraisal shall be required prior
to sale; (B) waives the demand and three days’ delay as provided under Articles 2639 and 2721 of
the Louisiana Code of Civil Procedure; (C) waives the notice of seizure as provided under Articles
2293 and 2721 of the Louisiana Code of Civil Procedure; (D) waives the three (3) days’ delay
provided under Articles 2331 and 2722 of the Louisiana Code of Civil Procedure; and (E) waives all
other benefits provided under Articles 2331, 2722 and 2723 of the Louisiana Code of Civil Procedure
and all other Articles not specifically mentioned above. Each Pledgor further agrees that any
declaration of fact made by authentic act before a Notary Public by a person declaring that such
facts are within his or her knowledge shall constitute authentic evidence of such facts for
purposes of foreclosure under applicable Louisiana law, such Pledgor further agrees that the Collateral Agent may appoint a keeper of the Collateral in the event
of foreclosure.

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          Should the Collateral for any reason be located in another state at or following any Event of
Default, each Pledgor agrees that the Collateral Agent may, in accordance with the terms hereof,
take possession of the Collateral in any manner then permitted under the laws of the state in which
the Collateral is then located or under the laws of Louisiana as then applicable, including R.S.
6:965 et seq. Should the Collateral Agent for any reason have or acquire possession of the
Collateral at or following default, the Collateral Agent may sell the Collateral at public or
private sale as authorized by Louisiana law or the applicable provisions of the Uniform Commercial
Code or similar laws in effect in the state where the Collateral is then located. If the
Collateral Agent is required by law to give any Pledgor notice of the public or private sale of the
Collateral, each Pledgor agrees that the requirements of reasonable notice shall be met if the
Collateral Agent mails such notice to such Pledgor at the Company’s address as shown in this
Agreement at least ten (10) days before the time of any public sale or, if disposition is by
private sale, at least ten (10) days before the time after which private sale may occur. If public
sale is held, there will be sufficient compliance with all requirements of notice to the public by
a single publication in a newspaper in general circulation in the parish or county where the
Collateral is then located. This notice should include the time and place of sale, and a brief
description of the property to be sold.

          (b) Proceeds; Surplus; Deficiencies. The Collateral Agent shall apply any proceeds
derived or to be derived from the sale, collection or other disposition of the Collateral in the
manner provided in Section 7.4 hereof. The Pledgors shall be entitled to any surplus if one
results after application of the proceeds and the Pledgors shall remain liable for any deficiency.

ARTICLE VIII

INDEMNITY

          Section 8.1. Indemnity. (a) Each Pledgor, jointly and severally, agrees to indemnify,
reimburse and hold the Collateral Agent, each Secured Creditor and their respective successors,
assigns, employees, agents and servants (hereinafter in this Section 8.1 referred to individually
as an “Indemnitee” and collectively as “Indemnitees”) harmless from any and all
liabilities, obligations, damages, injuries, penalties, claims, demands, actions, suits, judgments
and any and all costs, expenses or disbursements (including reasonable attorneys’ fees and expenses
of counsel retained by the Collateral Agent) (for the purposes of this Section 8.1 the foregoing
are collectively called “expenses”) of whatsoever kind and nature imposed on, asserted
against or incurred by any of the Indemnities arising out of this Agreement, the Notes or the
Indenture or any other document executed in connection herewith and therewith or in any other way
connected with the administration of the transactions contemplated hereby and thereby or the
enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to or arising out of the manufacture,
ownership, ordering, purchase, delivery, control, acceptance, lease, financing, possession,
operation, condition, sale, return or other disposition, or use of the Collateral (including,
without limitation, latent or other defects, whether or not discoverable), any contract claim or,
to the maximum extent permitted under applicable law,

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the violation of the laws of any country,
state or other governmental body or unit, or any tort (including, without limitation, claims
arising or imposed under the doctrine of strict liability, or for or on account of injury to or the
death of any Person (including any Indemnitee), or property damage); provided that no
Indemnitee shall be indemnified pursuant to this Section 8.1(a) for expenses to the extent finally
judicially determined to have been incurred by reason of the gross negligence or willful misconduct
of such Indemnitee. Each Pledgor agrees that upon written notice by any Indemnitee of the
assertion of such a liability, obligation, damage, injury, penalty, claim, demand, action, suit or
judgment, such Pledgor shall assume full responsibility for the defense thereof. In addition, the
Collateral Agent may retain its own counsel, whose fees and expenses shall be paid jointly and
severally by the Pledgors. Each Indemnitee agrees to use its commercially reasonable efforts to
promptly notify the Company of any such assertion of which such Indemnitee has knowledge.

          (b) Without limiting the application of Section 8.1(a), each Pledgor agrees to pay, or
reimburse the Collateral Agent for any and all reasonable fees, costs and expenses of whatever kind
or nature incurred in connection with the creation, preservation or protection of the Collateral
Agent’s Liens on, and security interest in, the Collateral, including, without limitation, all fees
and taxes in connection with the recording or filing of instruments and documents in public
offices, payment or discharge of any taxes or Liens upon or in respect of the Collateral,
reasonable premiums for insurance with respect to the Collateral and all other reasonable fees,
costs and expenses in connection with protecting, maintaining or preserving the Collateral and the
Collateral Agent’s interest therein, whether through judicial proceedings or otherwise, or in
defending or prosecuting any actions, suits or proceedings arising out of or relating to the
Collateral as set forth herein and in the Indenture.

          (c) Without limiting the application of Section 8.1(a) or (b), each Pledgor agrees to pay,
indemnify and hold each Indemnitee harmless from and against any loss, costs, damages and expenses
which such Indemnitee may suffer, expend or incur in consequence of or growing out of any material
misrepresentation by such Pledgor in this Agreement or the Indenture, or in any writing
contemplated by or made or delivered pursuant to or in connection with this Agreement or the
Indenture as set forth herein and in the Indenture.

          (d) If and to the extent that the obligations of any Pledgor under this Section 8.1 are
unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the
payment and satisfaction of such obligations which is permissible under applicable law.

          Section 8.2. Indemnity Obligations Secured by Collateral; Survival. Any amounts paid
by any Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Obligations secured by the Collateral. The indemnification obligations
of each Pledgor contained in this Article VIII shall continue in full force and effect
notwithstanding the occurrence of the Termination Date.

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ARTICLE IX

DEFINITIONS

               (a) The following terms which are capitalized herein shall have the meanings given to them in
the Uniform Commercial Code. Such definitions shall be equally applicable to the singular and
plural forms of the terms defined.

                                   “Account”

                                   “Chattel Paper”

                                   “Commercial Tort Claim”

                                   “Commodity Account”

                                   “Commodity Intermediary”

                                   “Deposit Account”

                                   “Documents”

                                   “Electronic Chattel Paper”

                                   “Entitlement Holder”

                                   “Entitlement Order”

                                   “Equipment”

                                   “Financial Asset”

                                   “Fixtures”

                                   “General Intangibles”

                                   “Goods”

                                   “Inventory”

                                   “Investment Property”

                                   “Letter-of-Credit Right”

                                   “Letter of Credit”

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                                   “Payment Intangible”

                                   “Securities Account”

                                   “Securities Intermediary”

                                   “Security”

                                   “Security Entitlement”

                                   “Supporting Obligations”

                                   “Tangible Chattel Paper”

               (b) The following terms shall have the meanings herein specified. Such definitions shall be
equally applicable to the singular and plural forms of the terms defined.

               “Agreement” shall mean this Security Agreement as the same may be modified,
supplemented or amended from time to time in accordance with its terms.

               “Cash Collateral Account” shall mean a non-interest bearing cash collateral account
maintained with the Collateral Agent for the benefit of the Secured Creditors.

               “Coinmach Corp.” shall have the meaning provided in the fourth paragraph of the
Agreement.

               “Collateral” shall have the meaning provided in Section 1.1(a) of this Agreement.

               “Collateral Agent” shall have the meaning provided in the first paragraph of this
Agreement.

               “Company” shall have the meaning provided in the first paragraph of this Agreement.

               “Contract Rights” shall mean all rights of each Pledgor (including, without limitation,
all rights to payment) under each Contract.

               “Contracts” shall mean all contracts between each Pledgor and one or more additional
parties (including, without limitation, (i) each partnership agreement to which such Pledgor is a
party and (ii) any Interest Swap Obligations), but excluding (x) licenses to the
extent that the terms thereof prohibit the assignment of, or granting of a security interest
in, such licenses and (y) location contracts which have not, with the Collateral Agent’s approval,
been assigned to the Collateral Agent but, in each of the cases described in clauses (x) and (y) of
this definition, excluding the right to receive any payment (including, without limitation,
Accounts,

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General Intangibles and Payment Intangibles) or any other rights referred to in Sections
9-406(f), 9-407(a) or 9-408(a) of the Uniform Commercial Code (or any successor provisions of any
jurisdiction or any other applicable law); provided, however, that at such time as
such license is no longer subject to such prohibition, such license shall (without any act or
delivery by any Person) constitute a Contract hereunder.

               “Control Agreement” shall mean an agreement in form and substance reasonably acceptable
to the Collateral Agent sufficient to establish “control” (as defined in Section 8-106 of the
Uniform Commercial Code with respect to Securities Accounts, as defined in Section 9-104 of the
Uniform Commercial Code with respect to Deposit Accounts, and as defined in Section 9-106 of the
Uniform Commercial Code with respect to Commodity Accounts) over any applicable Investment Property
(including, without limitation, any Securities Account or Commodity Account) or Deposit Account.

               “Copyrights” shall mean, collectively, with respect to each Pledgor, all copyrights
(whether statutory or common law and whether established or registered in the United States or any
other country) now owned or hereafter created or acquired by or assigned to such Pledgor, whether
published or unpublished, and all copyright registrations and applications made by such Pledgor
including, without limitation, the copyrights, registrations and applications listed in Schedule
14(b) to the Perfection Certificate, together with any and all (i) rights and privileges arising
under applicable law with respect to such Pledgor’s use of any copyrights, (ii) reissues, renewals,
continuations and extensions thereof, (iii) income, fees, royalties, damages, claims and payments
now or hereafter due and/or payable with respect thereto, including, without limitation, damages
and payments for past, present or future infringements thereof, (iv) rights corresponding thereto
throughout the world and (v) rights to sue for past, present or future infringements thereof.

               “Credit Agreement Collateral Agent” shall have the meaning provided in the fourth
paragraph of this Agreement.

               “Depository Bank” shall have the meaning provided to the term “bank” in Article 9 of
the Uniform Commercial Code.

               “Existing Deposit Accounts” shall have the meaning provided in Section 3.7 of this
Agreement.

               “Goodwill” shall mean, collectively, with respect to each Pledgor, the goodwill
connected with such Pledgor’s business including, without limitation, (i) all goodwill connected
with the use of and symbolized by any of the Intellectual Property in which such
Pledgor has any interest and (ii) all know-how, trade secrets, customer and supplier lists,
proprietary information, inventions, methods, procedures, formulae, descriptions, compositions,
technical data, drawings, specifications, name plates, catalogs, confidential information and the
right to limit the use or disclosure thereof by any person or entity, pricing and cost information,
business and marketing

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plans and proposals, consulting agreements, engineering contracts and such
other assets which relate to such goodwill.

               “Holders” shall have the meaning provided in the first paragraph of this Agreement.

               “Indemnitee” shall have the meaning provided in Section 8.1(a) of this Agreement.

               “Indenture” shall have the meaning provided in the first paragraph of this Agreement.

               “Instrument” shall have the meaning provided to such term in Article 9 of the Uniform
Commercial Code as in effect on the date hereof in the State of New York but shall not include any
Location Leases.

               “Insurance Policies” shall mean, collectively, with respect to each Pledgor, all
insurance policies held by such Pledgor or naming such Pledgor as insured, additional insured or
loss payee, all such insurance policies entered into after the date hereof, other than insurance
policies (or certificates of insurance evidencing such insurance policies) relating to health and
welfare insurance and life insurance policies in which such Pledgor is not named as beneficiary
(i.e., insurance policies that are not “Key Man” insurance policies) and all rights, claims and
recoveries relating thereto (including, without limitation, all dividends, returned premiums and
other rights to receive money in respect of any of the foregoing).

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

               “Intercreditor Agreement” shall have the meaning provided in the sixth paragraph of the
Agreement.

               “Laundry Corp.” shall have the meaning provided in the first paragraph of this
Agreement.

               “Licenses” shall mean, collectively, with respect to each Pledgor, all license and
distribution agreements and covenants not to sue with any other party with respect to any Patent,
Trademark, or Copyright or any other patent, trademark or copyright, whether such Pledgor is a
licensor or licensee, distributor or distributee under any such license or distribution agreement,
including, without limitation, the license and distribution agreements listed in Schedules 14(a) and 14(b) to the Perfection Certificate, together with any and all (i) renewals,
extensions, supplements and continuations thereof, (ii) income, fees, royalties, damages, claims
and payments now and hereafter due and/or payable thereunder and with respect thereto including,
without limitation, damages and payments for past, present or future infringements or violations
thereof,

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(iii) rights to sue for past, present and future infringements or violations thereof and
(iv) any other rights to use, exploit or practice any or all of the Patents, Trademarks or
Copyrights or any other patents, trademarks or copyrights.

               “Location Leases” shall mean leases, licenses or other agreements pursuant to which any
Pledgor leases, licenses or otherwise obtains the right to use any real property at which
Collateral constituting personal property is located.

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

               “Patents” shall mean, collectively, with respect to each Pledgor, all patents issued or
assigned to and all patent applications and registrations made by such Pledgor (whether established
or registered or recorded in the United States or any other country), including, without
limitation, the patents, patent applications, registrations and recordings listed in Schedule 14(a)
to the Perfection Certificate, together with any and all (i) rights and privileges arising under
applicable law with respect to such Pledgor’s use of any patents, (ii) inventions and improvements
described and claimed therein, (iii) reissues, divisions, continuations, renewals, extensions and
continuations-in-part thereof, (iv) income, fees, royalties, damages, claims and payments now or
hereafter due and/or payable thereunder and with respect thereto including, without limitation,
damages and payments for past, present or future infringements thereof, (v) rights corresponding
thereto throughout the world, and (vi) rights to sue for past, present or future infringements
thereof.

               “Perfection Certificate” shall mean that certain Perfection Certificate dated the
Closing Date, delivered by the Company and Laundry Corp. in favor of the Collateral Agent (for the
benefit of the Secured Creditors).

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               “Permitted Filings” shall have the meaning provided in Section 2.1 of this Agreement.

               “Pledgors” shall have the meaning provided in the first paragraph of this Agreement.

               “Proceeds” shall have the meaning provided to such term in the Uniform Commercial Code
as in effect in the State of New York on the date hereof or under other relevant law and, in any
event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity,
warranty or guaranty payable to the Collateral Agent or any Pledgor from time to time with respect
to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and
payable to any Pledgor from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental
Authority (or any person acting under color of Governmental Authority) (iii) instruments
representing obligations to pay amounts in respect of any Collateral, (iv) products of the
Collateral and (v) any and all other amounts from time to time paid or payable under or in
connection with any of the Collateral.

               “Secured Creditors” shall mean the Collateral Agent, the Trustee and the Holders.

               “Senior Secured Notes” shall have the meaning provided in the first paragraph of this
Agreement.

               “Significant Copyrights” shall mean those Copyrights which each Pledgor believes in its
reasonable judgment to be material to its business.

               “Significant Patents” shall mean those Patents which each Pledgor believes in its
reasonable judgment to be material to its business.

               “Significant Trademarks” shall mean those Trademarks which each Pledgor believes in its
reasonable judgment to be material to its business.

               “Specified Commercial Tort Claims” shall mean each Commercial Tort Claim with respect
to which the applicable Pledgor has complied with the provisions of Section 3.8(e).

               “Termination Date” means the earliest to occur of the date on which (a) all Obligations
have been paid in full in cash; (b) the Company exercises its legal defeasance option or covenant
defeasance option described in Section 8.01 of the Indenture; (c) the satisfaction and discharge of the Indenture occurs in accordance with Section 8.02 thereof and (d) the
Merger Event occurs.

               “Trademarks” shall mean, collectively, with respect to each Pledgor, all trademarks
(including service marks), slogans, logos, designs, certification marks, trade dress, uniform
resource locations (URLs), domain names, corporate names and trade names, whether registered

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or
unregistered, owned by or assigned to such Pledgor and all registrations and applications for the
foregoing (whether statutory or common law and whether established or registered in the United
States or any other country) including, without limitation, the registrations and applications
listed in Schedule 14(a) to the Perfection Certificate, together with any and all (i) rights and

privileges arising under applicable law with respect to such Pledgor’s use of any trademarks, (ii)
reissues, continuations, extensions and renewals thereof, (iii) income, fees, royalties, damages
and payments now and hereafter due and/or payable thereunder and with respect thereto, including,
without limitation, damages, claims and payments for past, present or future infringements thereof,
(iv) rights corresponding thereto throughout the world and (v) rights to sue for past, present and
future infringements thereof.

               “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect on the
date hereof in the State of New York; provided, however, that if by reason of
mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the
security interest in any item or portion of the Pledged Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New York, “Uniform
Commercial Code” shall also mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection.

ARTICLE X

MISCELLANEOUS

               Section 10.1. Notices. All such notices and communications hereunder shall be
telecopied or delivered by messenger or overnight courier service and all such notices and
communications shall, when mailed, telegraphed, telecopied, or cabled or sent by overnight courier,
be effective when delivered to the telegraph company, cable company or as overnight courier, as the
case may be, or sent by overnight, telecopier and when mailed shall be effective three Business
Days following deposit in the mail with proper postage, except that notices and communications to
the Collateral Agent shall not be effective until received by the Collateral Agent. All notices,
requests, demands or other communications shall be in writing and addressed as follows:

               (a) if to any Pledgor, at:

	 	   	Coinmach Service Corp.

303 Sunnyside Boulevard, Suite 70

Plainview, New York 11803

Attention: Robert M. Doyle

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	 	   	with a copy to:
	 
	 	   	Coinmach Corporation

521 East Morehead Street

Charlotte, North Carolina 28202

Attention: Stephen R. Kerrigan
	 
	 	   	with a copy to:
	 
	 	   	Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, New York 10019

Attention: Ronald S. Brody, Esq.

               (b) if to the Collateral Agent:

	 	   	The Bank of New York

101 Barclay Street

Floor 8W

New York, New York 10286

Attention: Corporate Trust Administration

               Section 10.2. Waiver; Amendment. None of the terms and conditions of this Agreement
may be changed, waived, modified or varied any manner whatsoever except in accordance with Article
Nine of the Indenture.

               Section 10.3. Obligations Absolute. The obligations of each Pledgor hereunder shall
remain in full force and effect without regard to, and shall not be impaired by, (a) any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the
like of such Pledgor; (b) any exercise or non-exercise, or any waiver of, any right, remedy, power
or privilege under or in respect of this Agreement or the Indenture except as specifically set
forth in a waiver granted pursuant to Section 10.2 hereof; or (c) any amendment to or modification
of the Senior Secured Notes or the Indenture or any security for any of the Obligations; whether or
not such Pledgor shall have notice or knowledge of any of the foregoing.

               Section 10.4. Successors and Assigns. This Agreement shall be binding upon the parties
hereto and their respective successors and assigns and shall inure to the benefit of the Collateral
Agent, each Secured Creditor and each Pledgor and their respective successors and assigns, provided
that no Pledgor may transfer or assign any or all of its rights or obligations hereunder without the written consent of the Collateral Agent or otherwise in
compliance with the Indenture. All agreements, statements, representations and warranties made by
each Pledgor herein or in any certificate or other instrument delivered by such Pledgor or on its
behalf under this Agreement shall be considered to have been relied upon by the Secured Creditors
and shall

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survive the execution and delivery of this Agreement, the Senior Secured Notes and the
Indenture regardless of any investigation made by the Secured Creditors or on their behalf.

               Section 10.5. Headings Descriptive. The headings of the several sections of this
Agreement are inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Agreement.

               Section 10.6. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

               Section 10.7. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF
NEW YORK.

               Section 10.8. Pledgor’s Duties. It is expressly agreed, anything herein contained to
the contrary notwithstanding, that each Pledgor shall remain liable to perform all of the
obligations, if any, assumed by it with respect to the Collateral and the Collateral Agent shall
not have any obligations or liabilities with respect to any Collateral by reason of or arising out
of this Agreement, nor shall the Collateral Agent be required or obligated in any manner to perform
or fulfill any of the obligations of such Pledgor under or with respect to any Collateral except to
the extent directly resulting from the Collateral Agent’s gross negligence or willful misconduct or
failure to act, in exercising its remedies hereunder, in a commercially reasonable manner.

               Section 10.9. Termination; Release. (a) On the Termination Date, this Agreement and
the security interest created hereby shall terminate, and the Collateral Agent shall, at the
request and expense of the Pledgors, promptly execute and deliver to the applicable Pledgor as
promptly thereafter as reasonably practicable a proper instrument or instruments (including Uniform
Commercial Code termination statements on form UCC-3) acknowledging the satisfaction and
termination of this Agreement, and will duly assign, transfer and deliver to the applicable Pledgor
(without recourse and without any representation or warranty) such of the Collateral of such
Pledgor as may be in the possession of the Collateral Agent or any of its sub-agents and has not
theretofore been sold or otherwise applied or released pursuant to this Agreement, together with
any proceeds of Collateral at the time held by the Collateral Agent or any of its sub-agents
hereunder.

               (b) In the event that any part of the Collateral is sold in connection with a sale not
prohibited by the Indenture or released in accordance with Article Eleven of the Indenture and the
proceeds of such sale or sales or from such release are applied in accordance with, and to the
extent required by, the Indenture, to the extent required to be so applied, such Collateral will

-32-

 

be
sold or released, free and clear of the Liens created by this Agreement and the Collateral Agent,
at the request and expense of the applicable Pledgor, will duly assign, transfer and deliver to
such Pledgor (without recourse and without any representation or warranty) such of the Collateral
as is then being (or has been) so sold or released and as may be in the possession of the
Collateral Agent and has not theretofore been released pursuant to this Agreement.

               (c) At any time that any Pledgor desires that the Collateral Agent take any action to
acknowledge or give effect to any release of Collateral pursuant to the foregoing Section 10.9(b),
it shall deliver to the Collateral Agent a certificate signed by its chief financial officer
stating that the release of the respective Collateral is permitted pursuant to Section 10.9(a) or
(b).

               (d) The Collateral Agent shall have no liability whatsoever to any Holder as a result of any
release of Collateral by it in accordance with this Section 10.9.

               Section 10.10. Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on 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. A set of counterparts executed by all the parties hereto shall be lodged with the
Company and the Collateral Agent.

               Section 10.11. The Collateral Agent. (a) The Collateral Agent will hold in accordance
with this Agreement all items of the Collateral at any time received under this Agreement. It is
expressly understood and agreed by the parties hereto and each Secured Creditor, by accepting the
benefits of this Agreement acknowledges and agrees that the obligations of the Collateral Agent as
holder of the Collateral and interests therein and with respect to the disposition thereof, and
otherwise under this Agreement, are only those expressly set forth in this Agreement. In
connection with its appointment and acting hereunder, the Collateral Agent shall be entitled to all
rights, privileges, benefits, protections, immunities and indemnities provided to it under the
Indenture.

               (b) Beyond the exercise of reasonable care in the custody thereof, the Collateral Agent shall
have no duty as to any Collateral in its possession or control or in the possession or control of
any agent or bailee or any income thereon or as to preservation of rights against prior parties or
any other rights pertaining thereto and the Collateral Agent shall not be responsible for filing
any financing or continuation statements or recording any documents or instruments in any public
office at any time or times or otherwise perfecting or maintaining the perfection of any security
interest in the Collateral. The Collateral Agent shall be deemed to have exercised reasonable care
in the custody of the Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which it accords its own property and shall not be
liable or responsible for any loss or diminution in the value of any of the Collateral, by
reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected
by the Collateral Agent in good faith.

-33-

 

               (c) The Collateral Agent shall not be responsible for the existence, genuineness or value of
any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in
any of the Collateral, whether impaired by operation of law or by reason of any of any action or
omission to act on its part hereunder, except to the extent such action or omission constitutes
negligence, bad faith or wilful misconduct on the part of the Collateral Agent, for the validity or
sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of
the title of the Pledgors to the Collateral, for insuring the Collateral or for the payment of
taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the
Collateral.

               (d) The Collateral Agent shall have no duty to act outside of the United States in respect of
any Collateral located in the jurisdiction other than the United States.

               Section 10.12. Intercreditor Agreement(a) . (a) The Liens granted hereunder in favor
of the Collateral Agent for the benefit of the Secured Creditors in respect of the Shared
Collateral and the exercise of any right or remedy related thereto hereunder shall be subject, in
each case, to the terms of the Intercreditor Agreement.

               (b) In the event of any conflict between the terms and provisions of this Agreement and of the
Intercreditor Agreement, the terms and provisions of the Intercreditor Agreement shall govern.

               (c) Notwithstanding anything to the contrary herein, any provision hereof that requires any
Pledgor to (i) deliver any Shared Collateral to the Collateral Agent or (ii) provide that the
Collateral Agent have control over such Shared Collateral may be satisfied by (A) the delivery of
such Shared Collateral by such Pledgor to the Credit Agreement Collateral Agent for the benefit of
the Lenders and the Collateral Agent for the benefit of the Secured Creditors pursuant to Section
5.4 of the Intercreditor Agreement and (B) providing that the Credit Agreement Collateral Agent be
provided with control with respect to such Shared Collateral of such Pledgor for the benefit of the
Lenders and the Collateral Agent for the benefit of Secured Creditors pursuant to Section 5.4 of
the Intercreditor Agreement.

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

	 	 	 	 	 
	 	COINMACH SERVICE CORP,

as the Company and a Pledgor

 
	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COINMACH LAUNDRY CORPORATION,

as Guarantor and Pledgor

 
	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Collateral Agent

 
	 
	 	By:  	/s/ Julie Salovitch-Miller
 	 
	 	 	Name:  	Julie Salovitch-Miller 	 
	 	 	Title:  	Vice President 	 
	 

S-1EX-4.3:

 

EXHIBIT 4.3

PLEDGE AGREEMENT

          PLEDGE AGREEMENT (as amended, modified or supplemented from time to time, this
“Agreement”), dated as of November 24, 2004, made by COINMACH SERVICE CORP. (the
“Company”), a Delaware corporation, and COINMACH LAUNDRY CORPORATION (“Laundry
Corp.” and, together with the Company, the “Pledgors”), a Delaware corporation, in
favor of THE BANK OF NEW YORK (“BNY”), a New York banking corporation, as Collateral Agent
(in such capacity and together with any successors in such capacity, the “Collateral
Agent”), for the benefit of the Secured Creditors (as defined below). Except as otherwise
defined herein, all capitalized terms used herein and defined in the security agreement, dated as
of the date hereof (as amended, modified or supplemented from time to time, the “Security
Agreement”), between the Pledgors and the Collateral Agent shall be used herein as so defined.

R E C I T A L S :

          1. The Company intends to issue on the date hereof $132,566,664.68 aggregate principal amount
of its 11% Senior Secured Notes due 2024 pursuant to the Indenture (as defined) (together with any
additional 11% Senior Secured Notes due 2024 issued from time to time in accordance with the
Indenture, the “Senior Secured Notes”). “Indenture” means the indenture, dated as
of the date hereof, as amended, modified or supplemented from time to time, between the Company,
the subsidiary guarantors party thereto from time to time and BNY as trustee (the
“Trustee”) and as Collateral Agent.

          2. The obligations of the Company under the Indenture and the Senior Secured Notes will be
guaranteed by Laundry Corp. in accordance with the Indenture.

          3. Laundry Corp. will receive substantial benefits from the proceeds of the Senior Secured
Notes and has agreed to grant to the Collateral Agent Liens on and security interests in the
Collateral owned by it to secure its Obligations (as defined below).

          4. Laundry Corp. has previously granted a Lien and pledged all of its right, title and
interest in and relating to the Capital Stock of Coinmach Corporation (“Coinmach Corp.”), a
Delaware corporation, and Proceeds thereof (collectively, the “Shared Collateral”) in favor
of Deutsche Bank Trust Company Americas (“DB Trust”), as collateral agent (the “Credit
Agreement Collateral Agent”) under the Credit Agreement (as amended, modified or supplemented
from time to time, the “Credit Agreement”) dated as of January 25, 2002, among Laundry
Corp., Coinmach Corp., the lenders party thereto from time to time in their capacities as lenders
thereunder, DB Trust, as administrative agent and the Credit Agreement Collateral Agent.

          5. It is a condition precedent to the purchase of the Senior Secured Notes that the Pledgors
shall have executed and delivered this Agreement to the Collateral Agent for the benefit of the
Collateral Agent, the Trustee and the Holders from time to time of the Senior Secured Notes
(collectively, the “Secured Creditors”).

          6. It is a condition precedent to the effectiveness of certain amendments to the Credit
Agreement and to the Holdings Pledge Agreement (as defined therein) necessary to

 

 

permit the grant by Laundry Corp. hereunder of the Liens in favor of the Collateral Agent on
the Shared Collateral that Laundry Corp. shall have executed and delivered a certain intercreditor
agreement (the “Intercreditor Agreement”) dated as of the date hereof (as the same may be
amended, supplemented or otherwise modified from time to time) among Laundry Corp., the Collateral
Agent and the Credit Agreement Collateral Agent.

          7. The Pledgors desire to enter into this Agreement in order to satisfy the condition
described in the preceding paragraph and to secure the payment and performance of all the
Obligations.

A G R E E M E N T :

          NOW, THEREFORE, in consideration of the above-described extensions of credit to be made to the
Pledgors and other benefits accruing to the Pledgors, the receipt and sufficiency of which are
hereby acknowledged, each Pledgor hereby makes the following representations and warranties to the
Collateral Agent for the benefit of the Secured Creditors and hereby covenants and agrees with the
Collateral Agent for the benefit of the Secured Creditors as follows:

          Section 1. SECURITY FOR OBLIGATIONS. This Agreement is made by each Pledgor for the benefit
of the Secured Creditors to secure the full and prompt payment and performance when due (whether at
the stated maturity, by acceleration or otherwise in accordance with the terms of the Indenture) of
the Obligations, whether outstanding on the date of this Agreement or extended from time to time
after the date of this Agreement.

          Section 2. DEFINITION OF STOCK, INTERESTS, NOTES, SECURITIES, ETC.; REPRESENTATIONS AND
WARRANTIES. As used herein,

          (i) the term “Stock” shall mean (x) with respect to corporations incorporated
under the laws of the United States or any State or territory thereof (each, a “Domestic
Corporation”), all of the issued and outstanding shares of capital stock of whatever
class at any time owned by each Pledgor of each Domestic Corporation and (y) with respect to
corporations that do not constitute Domestic Corporations (each, a “Foreign
Corporation”), all of the issued and outstanding shares of capital stock of whatever
class at any time owned by each Pledgor of each Foreign Corporation, in each case described
in clauses (i)(x) and (i)(y) of this sentence, together with the certificates representing
such shares and any interest of such Pledgor in the entries on the books of any financial
intermediary pertaining to such shares; provided that, except as provided in the
last sentence of this Section 2, such Pledgor shall not be required to pledge hereunder more
than 65% of the total combined voting power of all classes of capital stock of any Foreign
Corporation entitled to vote,

          (ii) the term “Interests” shall mean (x) with respect to limited liability
companies, partnerships or other entities (other than corporations) organized under the laws
of the United States or any State or territory thereof (each, a “Domestic Non-Corporate
Entity”), all of the issued and outstanding membership interests, partnership interests
or other interests of whatever class at any time owned by each Pledgor of each Domestic

2

 

Non-Corporate Entity and (y) with respect to limited liability companies, partnerships
or other entities (other than corporations) that do not constitute Domestic Non-Corporate
Entities (each, a “Foreign Non-Corporate Entity”), all of the issued and outstanding
membership interests, partnership interests or other interests of whatever class at any time
owned by each Pledgor of each Foreign Non-Corporate Entity, in each case described in
clauses (ii)(x) and (ii)(y) of this sentence, together with all rights, privileges,
authority and powers of such Pledgor in and to each such Domestic Non-Corporate Entity or
Foreign Non-Corporate Entity or under the membership, partnership or other operative
agreement of each such entity, and the certificates, instruments and agreements, if any,
representing such membership, partnership or other equity interests; provided that,
except as provided in the last sentence of this Section 2, such Pledgor shall not be
required to pledge hereunder more than 65% of the total combined voting power of all classes
of interests of any Foreign Non-Corporate Entity entitled to vote, and

          (iii) the term “Notes” shall mean (x) all promissory notes at any time issued
to each Pledgor by any of its Subsidiaries (including the Intercompany Note), together with
all certificates or instruments evidencing such promissory notes and all proceeds thereof,
and all accessions thereto and substitutions therefor and (y) except as provided in the last
sentence of this Section 2, such Pledgor shall not be required to pledge hereunder any
promissory notes issued to such Pledgor by any Subsidiary of such Pledgor which is a Foreign
Corporation or Foreign Non-Corporate Entity.

          If and to the extent that the Collateral Agent receives or holds stock certificates
representing more than 65% of the total combined voting power of all classes of capital stock or
other interests of any Foreign Corporation or Foreign Non-Corporate Entity entitled to vote, the
Collateral Agent agrees to act as bailee and custodian for the benefit of the applicable Pledgor
with respect to any portion of such capital stock or other interest representing more than 65% of
the total combined voting power of all classes of capital stock or other interest of any Foreign
Corporation or Foreign Non-Corporate Entity entitled to vote except as otherwise provided in the
last sentence of this Section 2. As used herein, the term “Securities” shall mean all of
the Stock, Interests and Notes.

          Each Pledgor represents and warrants, as to the stock of corporations, interests in
non-corporate entities and promissory notes owned by such Pledgor, that on the date hereof (a) the
Stock consists of the number and type of shares of the stock of the corporations as described in
Part I of Schedule A hereto; (b) such Stock constitutes that percentage of the applicable class of
stock issued and outstanding capital stock of the issuing corporation as is set forth in Part I of
Schedule A hereto; (c) the Notes consist of the promissory notes described in Part II of Schedule A
hereto; (d) the Interests consist of the type of interests of the non-corporate entities as
described in Part III of Schedule A hereto; (e) such Interests constitute that percentage of the
issues interests of the issuing non-corporate entities as described in Part III of Schedule A
hereto; and (f) such Pledgor is the holder of record and sole beneficial owner of the Stock, the
Interest and the Notes and there exist no options or preemptive rights in respect of any of the
Securities. If following a change in the relevant sections of the Code or the regulations, rules,
rulings, notices or other official pronouncements issued or promulgated thereunder which would
permit a pledge (x) of 66-2/3% or more (or would be adjusted to permit a pledge of less than
66-2/3%) of

3

 

the total combined voting power of all classes of capital stock of any Foreign Corporation or
Foreign Non-Corporate Entity entitled to vote and (y) of any promissory note issued by any
Subsidiary of each Pledgor which is a Foreign Corporation or Foreign Non-Corporate Entity without
causing the undistributed earnings of such Foreign Corporation or Foreign Non-Corporate Entity as
determined for Federal income taxes to be treated as a deemed dividend to such Pledgor for Federal
income tax purposes and without causing any other material adverse tax consequences to the
applicable Pledgor or any of its Subsidiaries or Affiliates, then the 65% limitation set forth in
the provisions to clauses (i) and (ii) and the limitation set forth in clause (iii)(y) of this
Section 2 shall no longer be applicable (or shall be adjusted as appropriate) and such Pledgor
shall duly pledge and deliver to the Collateral Agent such of the Securities not theretofore
required to be pledged hereunder or the Collateral Agent shall return such Securities, as
applicable.

          Section 3. PLEDGE OF SECURITIES, ETC.

          Section 3.1. Pledge. To secure the payment and performance when due of all of the
Obligations and for the purposes set forth in Section 1, each Pledgor (i) hereby grants to the
Collateral Agent for the benefit of the Secured Creditors a continuing security interest in and to
all of the right, title and interests of such Pledgor in, to and under the Collateral (as
hereinafter defined), (ii) hereby pledges and deposits with the Collateral Agent the Securities
owned by such Pledgor on the date hereof, and, subject to Section 24, delivers to the Collateral
Agent certificates therefor, duly endorsed in blank in the case of promissory notes and accompanied
by undated stock powers duly executed in blank by such Pledgor (and accompanied by any transfer tax
stamps required in connection with the pledge of such Securities) in the case of capital stock, or
such other instruments of transfer as are reasonably acceptable to the Collateral Agent and (iii)
hereby collaterally assigns, transfers, hypothecates and sets over to the Collateral Agent all of
such Pledgor’s right, title and interest in and to such Securities (and in and to the certificates
or instruments evidencing such Securities and the other Collateral), to be held by the Collateral
Agent as collateral security for the Obligations, upon the terms and conditions set forth in this
Agreement.

          Section 3.2. Subsequently Acquired Securities. If any Pledgor shall acquire (by
purchase, stock dividend or otherwise) any additional Securities at any time or from time to time
after the date hereof, such Pledgor will promptly thereafter (and in any event within five Business
Days) pledge and deposit such Securities (or certificates or instruments representing Securities)
as security with the Collateral Agent and deliver to the Collateral Agent certificates or
instruments therefor, duly endorsed in blank in the case of promissory notes, and accompanied by
undated stock powers duly executed in blank by such Pledgor (and accompanied by any transfer tax
stamps required in connection with the pledge of such Securities) in the case of capital stock, or
such other instruments of transfer as are reasonably acceptable to the Collateral Agent, and will
promptly thereafter (and in any event within five Business Days) deliver to the Collateral Agent a
pledge amendment duly executed by a principal executive officer of such Pledgor in substantially
the form of Exhibit 1 hereto (each, a “Pledge Amendment”) describing such
Securities and certifying that the same have been duly pledged with the Collateral Agent hereunder.
Subject to the last sentence of Section 2, no Pledgor shall be required at any time to pledge
hereunder any promissory notes issued to such Pledgor by a Subsidiary which is a Foreign
Corporation or Foreign Non-Corporate Entity or more than 65% of the total combined voting power of

4

 

all classes of capital stock or other interests of any Foreign Corporation or Foreign
Non-Corporate Entity entitled to vote.

          Section 3.3. Uncertificated Securities. Notwithstanding anything to the contrary
contained in Sections 3.1 and 3.2, if any Securities (whether now owned or hereafter acquired) are
uncertificated securities, each Pledgor shall promptly (and in any event within ten Business Days)
notify the Collateral Agent thereof, and shall promptly (and in any event within ten Business Days)
take all actions reasonably required to perfect the security interest of the Collateral Agent under
applicable law. Each Pledgor further agrees to take such actions as are necessary or that the
Collateral Agent deems reasonably necessary or desirable to effect the foregoing (including,
without limitation, causing the issuer of such uncertificated Securities to execute and deliver to
the Collateral Agent an acknowledgment of the pledge of such Securities hereunder substantially in
the form of Exhibit 2 hereto) and to permit the Collateral Agent to exercise any of its
rights and remedies hereunder, and agrees to provide an opinion of counsel to the Collateral Agent
with respect to any such pledge of uncertificated Securities promptly upon the reasonable request
of the Collateral Agent.

          Section 3.4. Definitions of Pledged Stock; Pledged Notes; Pledged Securities and
Collateral. As used herein, “Collateral” shall mean all of the following property of
each Pledgor, whether now existing or owned or hereafter arising or acquired:

          (i) all Stock at any time pledged or required to be pledged hereunder (hereinafter
called the “Pledged Stock”);

          (ii) all Interests at any time pledged or required to be pledged hereunder (hereinafter
called the “Pledged Interests”);

          (iii) all Notes at any time pledged or required to be pledged hereunder (hereinafter
called the “Pledged Notes”; together with all Pledged Stock and Pledged Interests
are hereinafter called the “Pledged Securities”);

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

          (v) without affecting the obligations of such Pledgor under any provision prohibiting
such action hereunder or under the Indenture, in the event of any consolidation or merger in
which any Person listed in Schedule A hereto is not the surviving entity, all shares
of each class of the capital stock of the successor corporation or interests or certificates
of the successor limited liability company or partnership or other entity owned by such
Pledgor (unless such successor is such Pledgor itself) formed by or resulting from such
consolidation or merger; and

5

 

          (vi) all Proceeds (as defined under the Uniform Commercial Code as in effect in any
relevant jurisdiction (the “UCC”) or under other relevant law) of any of the
foregoing, and in any event, including, without limitation, any and all (a) proceeds of any
insurance, indemnity, warranty or guarantee payable to the Collateral Agent or to any
Pledgor from time to time with respect to any of the Collateral, (b) payments (in any form
whatsoever) made or due and payable to any Pledgor from time to time in connection with any
requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any Governmental Authority (or any person acting under color of a Governmental
Authority), (c) instruments representing obligations to pay amounts in respect of any
Collateral, (d) products of the Collateral and (e) any and all other amounts from time to
time paid or payable under or in connection with any of the Collateral, including any
securities and moneys received and at any time held by the Collateral Agent hereunder.

          Section 4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. The Collateral Agent shall have the
right to appoint one or more sub-agents, at the cost and expense of the Pledgors, for the purpose
of retaining physical possession of the Pledged Securities, which may be held (in the reasonable
discretion of the Collateral Agent) in the name of the applicable Pledgor, endorsed or assigned in
blank or in favor of the Collateral Agent or any nominee or nominees of the Collateral Agent or a
sub-agent appointed by the Collateral Agent.

          Section 5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until there shall have
occurred and be continuing an Event of Default and the Collateral Agent has given written notice to
the Company, each Pledgor shall, to the extent not prohibited in such notice, be entitled to vote
any and all Pledged Securities owned by it, and to give consents, waivers or ratifications in
respect thereof, provided that no vote shall be cast or any consent, waiver or ratification
given or any action taken which would violate or result in breach of any covenant contained in this
Agreement or the Indenture or which is not permitted under this Agreement or the Indenture and
could reasonably be expected to have the effect of materially impairing the value of the Collateral
or any material part thereof or the position or interests of the Collateral Agent or any Secured
Creditor. All such rights of each Pledgor to vote and to give consents, waivers and ratifications
shall cease in case an Event of Default has occurred and is continuing and the Collateral Agent has
given written notice to the Company prohibiting the exercise by any Pledgor of any such right, and
Section 7 hereof shall become applicable.

          Section 6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until there shall have occurred and
be continuing an Event of Default and the Collateral Agent has given written notice to the Company
prohibiting such payment, all cash dividends and distributions payable in respect of the Pledged
Stock and Pledges Interests and all payments in respect of the Pledged Notes shall be paid to the
applicable Pledgor. If there shall have occurred and be continuing an Event of Default, the
Collateral Agent shall be provided with directly, and to retain as part of the Collateral:

          (a) all other or additional stock or securities or other interests (other than cash)
paid or distributed by way of dividend or otherwise, as the case may be, in respect of the
Pledged Securities;

6

 

          (b) all other or additional stock or other securities or other interests paid (other
than cash) or distributed in respect of the Pledged Securities by way of stock split,
spin-off, split-up, reclassification, combination of shares or similar rearrangement; and

          (c) all other or additional stock or other securities or other interests or property
(excluding cash) which may be paid in respect of the Collateral by reason of any
consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar
corporate reorganization.

Nothing contained in this Section 6 shall limit or restrict in any way the Collateral Agent’s right
to receive proceeds of the Collateral in any form in accordance with Section 3 of this Agreement.
All dividends, distributions or other payments which are received by each Pledgor contrary to the
provisions of this Section 6 and Section 7 shall be received in trust for the benefit of the
Collateral Agent, shall be segregated from other property or funds of such Pledgor and shall be
forthwith paid or delivered over to the Collateral Agent as Collateral in the same form as so
received (with any necessary endorsement).

          Section 7. REMEDIES IN CASE OF EVENTS OF DEFAULT. If there shall have occurred and be
continuing an Event of Default and the Collateral Agent has given written notice to the Company of
its intent to exercise all or any of its rights under this Section 7, then and in every such case,
the Collateral Agent shall be entitled to exercise all of the rights, powers and remedies (whether
vested in it by this Agreement, the Senior Secured Notes or the Indenture, or by law) for the
protection and enforcement of its rights in respect of the Collateral, and the Collateral Agent
shall be entitled to exercise all the rights and remedies of a secured party under the UCC and also
shall be entitled, without limitation, to exercise the following rights, which the Collateral Agent
agrees to exercise in a commercially reasonable manner:

          (a) to receive all amounts payable in respect of the Collateral otherwise payable under
Section 6 to the Pledgors;

          (b) to transfer all or any part of the Collateral into the Collateral Agent’s name or
the name of its nominee or nominees;

          (c) to accelerate any Pledged Note which may be accelerated in accordance with its
terms, and take any other lawful action to collect upon any Pledged Note at such times and
under the conditions set forth therein;

          (d) to vote all or any part of the Pledged Stock and/or Pledged Interests (whether or
not transferred into the name of the Collateral Agent) and give all consents, waivers and
ratifications in respect of the Collateral and otherwise act with respect thereto in a
commercially reasonable manner as though it were the outright owner thereof (each Pledgor
hereby irrevocably constituting and appointing the Collateral Agent the proxy and
attorney-in-fact of such Pledgor, with full power of substitution to do so upon the
occurrence and during the continuance of an Event of Default provided the Collateral Agent
has delivered written notice to the Company of its intent to exercise all or any of its
rights under this clause (d))

7

 

          (e) to sell, assign and deliver, or grant options to purchase, all or any part of the
Collateral, or any interest therein, at any public or private sale, without demand of
performance, advertisement or notice of intention to sell or of the time or place of sale or
adjournment thereof or to redeem or otherwise (all of which are hereby waived by each
Pledgor), for cash, on credit or for other property, for immediate or future delivery
without any assumption of credit risk, and for such price or prices and on such terms as the
Collateral Agent may determine in a commercially reasonable manner, provided that at
least 10 days’ written notice of the time and place of any such sale shall be given to the
applicable Pledgor. The Collateral Agent shall not be obligated to make any such sale of
Collateral regardless of whether any such notice of sale has theretofore been given. Each
Pledgor hereby waives and releases to the fullest extent permitted by law any right or
equity of redemption with respect to the Collateral, whether before or after sale hereunder,
other than such Pledgor’s right to receive any excess proceeds or Collateral remaining after
the occurrence of the Termination Date. At any such sale, unless prohibited by applicable
law, the Collateral Agent on behalf of the Secured Creditors may bid for and purchase all or
any part of the Collateral so sold free from any such right or equity of redemption.
Neither the Collateral Agent nor any Secured Creditor shall be liable for failure to collect
(except in such cases where the Collateral Agent bids for and purchases all or part of the
Collateral) or realize upon any or all of the Collateral or for any delay in so doing nor
shall any of them be under any obligation to take any action whatsoever with regard thereto.

          Section 8. REMEDIES, ETC., CUMULATIVE. Each and every right, power and remedy of the
Collateral Agent provided for in this Agreement, the Senior Secured Notes or the Indenture now or
hereafter existing at law or in equity or by statute, shall be cumulative and concurrent and shall
be in addition to every other such right, power or remedy. The exercise or beginning of the
exercise by the Collateral Agent or any Secured Creditor of any one or more of the rights, powers
or remedies provided for in this Agreement, the Senior Secured Notes or the Indenture or now or
hereafter existing at law or in equity or by statute shall not preclude the simultaneous or later
exercise by the Collateral Agent or any Secured Creditor of all such other rights, powers or
remedies, and no failure or delay on the part of the Collateral Agent or any Secured Creditor to
exercise any such right, power or remedy shall operate as a waiver thereof except as required by
applicable law. Unless otherwise required by the Indenture, no notice to or demand on any Pledgor
in any case shall entitle it to any other or further notice or demand in similar or other
circumstances or constitute a waiver of any of the rights of the Collateral Agent or any Secured
Creditor to any other or further action in any circumstances without notice or demand.

          Section 9. APPLICATION OF PROCEEDS. All moneys collected by the Collateral Agent upon any
sale or other disposition of the Collateral, together with all other moneys received by the
Collateral Agent hereunder, shall be applied to the payment of the Obligations in the manner set
forth in Section 7.4 of the Security Agreement.

          Section 10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the Collateral Agent
hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or
otherwise), the receipt of the Collateral Agent or the officer making

8

 

the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral
so sold, and such purchaser or purchasers shall not be obligated to see to the application of any
part of the purchase money paid over to the Collateral Agent or such officer or be answerable in
any way for the misapplication or nonapplication thereof.

          Section 11. INDEMNITY. Each Pledgor agrees to indemnify and hold harmless the Collateral
Agent and each Secured Creditor and their respective successors, assigns, employees, agents and
servants (each, an “Indemnitee”; collectively, the “Indemnitees”) from and against
any and all claims, demands, losses, judgments and liabilities (including liabilities for
penalties) of whatsoever kind or nature, and to reimburse each Indemnitee for all costs and
expenses, including reasonable attorneys’ fees, growing out of or resulting from this Agreement or
the exercise by any Indemnitee of any right or remedy granted to it hereunder or under the
Indenture (but excluding any claims, demands, losses, judgments and liabilities or expenses to the
extent finally judicially determined to have been incurred by reason of gross negligence or willful
misconduct of such Indemnitee). If and to the extent that the obligations of any Pledgor under
this Section 11 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations that is permissible under
applicable law.

          Section 12. FURTHER ASSURANCES; POWER-OF-ATTORNEY. (a) Each Pledgor agrees that it will join
with the Collateral Agent in executing and, at its own expense, file and refile under the UCC or
other applicable law such financing statements, continuation statements and other documents in such
offices as are necessary or as the Collateral Agent may deem reasonably necessary and wherever
required by law in order to perfect and preserve the Collateral Agent’s security interest in the
Collateral and hereby authorizes the Collateral Agent to file financing statements and amendments
thereto relative to all or any part of the Collateral without the signature of such Pledgor, and
agrees to do such further acts and things and to execute and deliver to the Collateral Agent such
additional conveyances, assignments, agreements and instruments as are necessary or as the
Collateral Agent may reasonably require or deem necessary to carry into effect the purposes of this
Agreement or to further assure and confirm unto the Collateral Agent its rights, powers and
remedies hereunder.

          (a) Each Pledgor hereby appoints the Collateral Agent such Pledgor’s attorney-in-fact, with
full authority in the place and stead of such Pledgor and in the name of such Pledgor or otherwise,
from time to time after the occurrence and during the continuance of an Event of Default and
provided that the Collateral Agent shall have delivered notice to the Company of its intent to
exercise all or any of its rights under this clause (b), to take any action and to execute any
instrument necessary or which the Collateral Agent may reasonably deem necessary or advisable to
accomplish the purposes of this Agreement.

          Section 13. THE PLEDGEE AS AGENT. The Collateral Agent will hold in accordance with this
Agreement all items of the Collateral at any time received under this Agreement. It is expressly
understood and agreed by the parties hereto and each Secured Creditor, by accepting the benefits of
this Agreement, each such person acknowledges and agrees that the obligations of the Collateral
Agent as holder of the Collateral and interests therein and with respect to the disposition
thereof, and otherwise under this Agreement, are only those expressly

9

 

set forth in this Agreement. The Collateral Agent shall act hereunder on the terms and
conditions set forth herein and in Article Seven of the Indenture.

          Section 14. TRANSFER BY THE PLEDGOR. No Pledgor will sell or otherwise dispose of, grant any
option with respect to, or mortgage, pledge or otherwise encumber any of the Collateral or any
interest therein (except as may be permitted in accordance with the terms of the Indenture).

          Section 15. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGOR. (a) Each Pledgor
represents and warrants that as of the date hereof (i) it is, or at the time when pledged hereunder
will be, the legal, record and beneficial owner of, and has (or will have) good title to, all
Collateral pledged by it hereunder, subject to no Lien (except the Lien created by this Agreement
and except Permitted Liens); (ii) it has full corporate power, authority and legal right to pledge
all the Collateral pursuant to this Agreement; (iii) this Agreement has been duly authorized,
executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of
such Pledgor enforceable in accordance with its terms, except to the extent that the enforceability
hereof may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws generally affecting creditors’ rights and by equitable principles
(regardless of whether enforcement is sought in equity or at law); (iv) except to the extent
already obtained or made, no consent of any other party (including, without limitation, any
stockholder or creditor of such Pledgor or any of its Subsidiaries) and no consent, license,
permit, approval or authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required to be obtained by such Pledgor in
connection with (w) the execution, delivery or performance of this Agreement, (x) the validity or
enforceability of this Agreement, (y) the perfection or enforceability of the Collateral Agent’s
security interest in the Collateral or (z) except for compliance with or as may be required by
applicable securities laws, the exercise by the Collateral Agent of any of its rights or remedies
provided herein; (v) the execution, delivery and performance of this Agreement will not violate any
provision of any applicable law or regulation or of any order, judgment, writ, award or decree of
any court, arbitrator or governmental authority, domestic or foreign, applicable to such Pledgor,
or of the Certificate of Incorporation or By-Laws of such Pledgor or of any securities issued by
such Pledgor or any of its Subsidiaries, or of any material mortgage, indenture, lease, loan
agreement, credit agreement or other contract, agreement or instrument or undertaking to which such
Pledgor or any of its Subsidiaries is a party or which purports to be binding upon such Pledgor or
any of its Subsidiaries or upon any of their respective material assets and will not result in the
creation or imposition of (or the obligation to create or impose) any lien or encumbrance on any of
the assets of such Pledgor or any of its Subsidiaries except as contemplated by this Agreement;
(vi) all the shares of the Pledged Stock and Pledged Interests have been duly and validly issued,
are fully paid and non-assessable (in the case of Pledged Stock) and are subject to no options to
purchase or similar rights; (vii) each of the Pledged Notes to the extent executed by the Company
or any of its Subsidiaries constitutes, or when executed by the obligor thereof will constitute,
the legal, valid and binding obligation of such obligor, enforceable in accordance with its terms,
except to the extent that the enforceability thereof may by limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights
and by equitable principles (regardless of whether enforcement is sought in equity or at law); and
(viii) the pledge, collateral assignment and, in the case of
certificated

10

 

securities (other than the Pledged Stock of Coinmach Corp. for so long as the
Intercreditor Agreement remains in full force and effect), delivery to the Collateral Agent of the
Securities or, in the case of uncertificated securities and securities of Coinmach Corp., the
filing of a financing statement naming such Pledgor, as debtor, and the Collateral Agent, as
Secured Party, in each case pursuant to this Agreement creates a valid and perfected Lien on the
Collateral, subject to no other Lien or to any agreement purporting to grant to any third party a
Lien on the property or assets of the Pledgor which would include the Collateral, except Permitted
Liens. Each Pledgor covenants and agrees that it will take commercially reasonable steps to defend
the Collateral Agent’s right, title and security interest in and to the Collateral against the
claims and demands of all persons whomsoever; and each Pledgor covenants and agrees that it will
have like title to and right to pledge any other property at any time hereafter pledged to the
Collateral Agent as Collateral hereunder and will likewise take commercially reasonable steps to
defend the right thereto and security interest therein of the Collateral Agent and the Secured
Creditors.

          (a) Each Pledgor further represents, warrants and covenants that the exact legal name, type of
organization and jurisdiction of organization (together with the organizational identification
number, if any, issued by such jurisdiction to such Pledgor) of such Pledgor is set forth in
Schedule B hereto. Such Pledgor shall not “reincorporate” or “reorganize” or otherwise
cause the Collateral to be transferred to a Person incorporated or organized in another state
except to the extent (x) permitted pursuant to the provisions of the Indenture, (y) it shall have
given to Collateral Agent not less than 10 days’ prior written notice (in the form of an officers’
certificate) of its intention so to do clearly describing such transaction and providing such other
information in connection therewith as Collateral Agent may reasonably request and (z) with respect
to such transaction, such Pledgor shall have taken all action reasonably satisfactory to Collateral
Agent to maintain the perfection and priority of the security interest of Collateral Agent for the
benefit of the Secured Parties in the Collateral intended to be granted hereby.

          (b) Intercompany Note and Intercompany Note Guaranty. No Pledgor shall:

          (i) sell, convey, transfer or assign (or otherwise engage in any other transfer for
value of) the Intercompany Note or any of its interest therein;

          (ii) amend, supplement, or waive any provision of the Intercompany Note, other than any
amendment, supplement or waiver which would not have an adverse effect on the interests of
the Collateral Agent or any other Secured Creditor, the Indenture or the Notes, or
subordinate its rights under the Intercompany Note or the Senior Secured to the rights of
any other creditor of Coinmach Corp.;

          (iii) compromise, reduce, forgive or release or extend the time for payment of any
obligation of Coinmach Corp. under the Intercompany Note; or

          (iv) take or omit to take any action the taking or the omission of which would result
in any material impairment or alteration of any obligation of Coinmach Corp. under the
Intercompany Note.

          Section 16. PLEDGOR’S OBLIGATIONS ABSOLUTE, ETC. The obligations of each Pledgor under this
Agreement shall be absolute and unconditional and shall remain

11

 

in full force and effect without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence whatsoever, including, without
limitation: (a) any renewal, extension, amendment or modification of or addition or supplement to
or deletion from the Indenture or any other instrument or agreement referred to therein, or any
assignment or transfer of any thereof; (b) any waiver, consent, extension, indulgence or other
action or inaction under or in respect of any such agreement or instrument, including, without
limitation, this Agreement; (c) any furnishing of any additional security to the Collateral Agent
or its assignee or any acceptance thereof or any release of any security by the Collateral Agent or
its assignee; (d) any limitation on any party’s liability or obligations under any such instrument
or agreement or any invalidity or unenforceability, in whole or in part, of any such instrument or
agreement or any term thereof or (e) any bankruptcy, insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other like proceeding relating to any Pledgor or any
Subsidiary of such Pledgor, or any action taken with respect to this Agreement by any trustee or
receiver, or by any court, in any such proceeding, whether or not such Pledgor shall have notice or
knowledge of any of the foregoing.

          Section 17. REGISTRATION, ETC. If at any time when the Collateral Agent shall determine to
exercise its right to sell all or any part of the Pledged Securities pursuant to Section 7, and
such Pledged Securities or the part thereof to be sold shall not, for any reason whatsoever, be
effectively registered under the Securities Act of 1933, as then in effect, the Collateral Agent
may but without any obligation, in its sole and absolute discretion, sell such Pledged Securities
or part thereof by private sale in such manner and under such circumstances as the Collateral Agent
may deem reasonably necessary or advisable in order that such sale may legally be effected without
such registration. Without limiting the generality of the foregoing, in any such event the
Collateral Agent, in its commercially reasonable discretion, (i) may proceed to make such private
sale notwithstanding that a registration statement for the purpose of registering such Pledged
Securities or part thereof shall have been filed under such Securities Act, (ii) may approach and
negotiate with a single possible purchaser to effect such sale and (iii) may restrict such sale to
a purchaser who will represent and agree that such purchaser is purchasing for its own account, for
investment, and not with a view to the distribution or sale of such Pledged Securities or part
thereof. In the event of any such sale, the Collateral Agent shall incur no responsibility or
liability for selling all or any part of the Pledged Securities at a price which the Collateral
Agent, in its commercially reasonable discretion, in good faith deems reasonable under the
circumstances, notwithstanding the possibility that a substantially higher price might be realized
if the sale were deferred until after registration as aforesaid.

          Section 18. TERMINATION; RELEASE. (a) On the Termination Date, this Agreement and the
security interest created hereby shall terminate, and the Collateral Agent shall, at the request
and expense of the Pledgors, execute and deliver to the Pledgors as promptly thereafter as
reasonably practicable a proper instrument or instruments provided to it acknowledging the
satisfaction and termination of this Agreement, and will duly assign, transfer and deliver to the
Pledgors (without recourse and without any representation or warranty other than a representation
that the Collateral Agent has not granted any lien on or security interest in the Collateral) such
of the Collateral as may be in the possession of the Collateral Agent or any of its sub-agents and
has not theretofore been sold or otherwise applied or released pursuant to this

12

 

Agreement, together with any proceeds of Collateral at the time held by the Collateral Agent
or any of its sub-agents hereunder.

          (b) Notwithstanding anything to the contrary contained above, upon the presentment of
satisfactory evidence to the Collateral Agent in its sole discretion that all obligations evidenced
by any Pledged Note have been repaid or otherwise satisfied or forgiven in full, and that any
payments received by the applicable Pledgor were permitted to be received by such Pledgor pursuant
to Section 6 hereof, the Collateral Agent shall, upon the request and at the expense of such
Pledgor, duly assign, transfer and deliver to such Pledgor (without recourse and without any
representation or warranty other than a representation that the Collateral Agent has not granted
any lien on or security interest in such Pledged Note) such Pledged Note if same is then in the
possession of the Collateral Agent or any of its sub-agents and has not theretofore been sold or
otherwise applied or released pursuant to this Agreement.

          (c) In the event that any part of the Collateral is sold in connection with a sale permitted
by Section 4.16 of the Indenture or released in accordance with Section 11.05 of the Indenture and
the proceeds of such sale or sales or from such release are applied in accordance with, and to the
extent required by, the Indenture, to the extent required to be so applied, the Collateral Agent,
at the request and expense of the Pledgors, will duly assign, transfer and deliver to the
applicable Pledgor (without recourse and without any representation or warranty) such of the
Collateral as is then being (or has been) so sold or released and as may be in the possession of
the Collateral Agent or any of its sub-agents and has not theretofore been released pursuant to
this Agreement.

          (d) At any time that any Pledgor desires that Collateral be released as provided in the
foregoing subsection (a), (b) or (c), it shall deliver to the Collateral Agent a certificate signed
by its chief financial officer stating that the release of the respective Collateral is permitted
pursuant to such subsection (a), (b) or (c).

          (e) The Collateral Agent shall have no liability whatsoever to any Secured Creditor as the
result of any release of Collateral by it in accordance with this Section 18.

          Section 19. NOTICES, ETC. All notices and communications hereunder shall be telecopied or
delivered by messenger or overnight courier service and all such notices and communications shall,
when mailed, telegraphed, telexed, telecopied, or cabled or sent by overnight courier, be effective
when delivered to the telegraph company, cable company or overnight courier, as the case may be, or
sent by telex or telecopier and when mailed shall be effective three Business Days following
deposit in the mail with proper postage, except that notices and communications to the Collateral
Agent shall not be effective until received by the Collateral Agent. All notices and other
communications shall be in writing and addressed as follows:

	 	(a)  	if to any Pledgor, at:
	 
	 	   	Coinmach Service Corp.

303 Sunnyside Boulevard

Plainview, New York 11803

Attention: Robert M. Doyle

13

 

	 	   	with a copy to:
	 
	 	   	Coinmach Corporation

521 East Morehead Street

Charlotte, North Carolina 28202

Attention: Stephen R. Kerrigan
	 
	 	   	with a copy to:
	 
	 	   	Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, New York 10019

Attention: Ronald S. Brody
	 
	 	(b)  	if to the Collateral Agent, at:
	 
	 	   	The Bank of New York

101 Barclay Street

Floor 8W

New York, New York 10286
	 
	 	   	Attention: Corporate Trust Administration

or at such other address as shall have been furnished in writing by any Person described above to
and received by the party required to give notice hereunder.

          Section 20. WAIVER; AMENDMENT. None of the terms and conditions of this Agreement may be
changed, waived, modified or varied in any manner whatsoever except in accordance with Article Nine
of the Indenture.

          Section 21. MISCELLANEOUS. This Agreement shall be binding upon the parties hereto and their
respective successors and assigns and shall inure to the benefit of and be enforceable by each of
the parties hereto and its successors and assigns. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. The headings in this
Agreement are for purposes of reference only and shall not limit or define the meaning hereof.
This Agreement may be executed in any number of counterparts, each of which shall be an original,
but all of which shall constitute one instrument. In the event that any provision of this
Agreement shall prove to be invalid or unenforceable, such provision shall be deemed to be
severable from the other provisions of this Agreement, which shall remain binding on all parties
hereto.

          Section 22. RECOURSE. This Agreement is made with full recourse to each Pledgor and pursuant
to and upon all the representations, warranties, covenants and agreements on the part of such
Pledgor contained herein or in the Indenture, and otherwise in writing in connection herewith or
therewith.

14

 

          Section 23. THE COLLATERAL AGENT. (a) The Collateral Agent will hold in accordance with this Agreement all items of the
Collateral at any time received under this Agreement. It is expressly understood and agreed by the
parties hereto and each Secured Creditor, by accepting the benefits of this Agreement acknowledges
and agrees that the obligations of the Collateral Agent as holder of the Collateral and interests
therein and with respect to the disposition thereof, and otherwise under this Agreement, are only
those expressly set forth in this Agreement. In connection with its appointment and acting
hereunder, the Collateral Agent shall be entitled to all rights, privileges, benefits, protections,
immunities and indemnities provided to it under the Indenture.

          (b) Beyond the exercise of reasonable care in the custody thereof, the Collateral Agent shall
have no duty as to any Collateral in its possession or control or in the possession or control of
any agent or bailee or any income thereon or as to preservation of rights against prior parties or
any other rights pertaining thereto and the Collateral Agent shall not be responsible for filing
any financing or continuation statements or recording any documents or instruments in any public
office at any time or times or otherwise perfecting or maintaining the perfection of any security
interest in the Collateral. The Collateral Agent shall be deemed to have exercised reasonable care
in the custody of the Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which it accords its own property and shall not be liable or
responsible for any loss or diminution in the value of any of the Collateral, by reason of the act
or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral
Agent in good faith.

          (c) The Collateral Agent shall not be responsible for the existence, genuineness or value of
any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in
any of the Collateral, whether impaired by operation of law or by reason of any of any action or
omission to act on its part hereunder, except to the extent such action or omission constitutes
negligence, bad faith or wilful misconduct on the part of the Collateral Agent, for the validity or
sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of
the title of the Pledgors to the Collateral, for insuring the Collateral or for the payment of
taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the
Collateral.

          (d) The Collateral Agent shall have no duty to act outside of the United States in respect of
any Collateral located in the jurisdiction other than the United States.

          Section 24. INTERCREDITOR AGREEMENT.

     (a) The Liens granted hereunder in favor of the Collateral Agent for the benefit of the
Secured Creditors in respect of the Shared Collateral and the exercise of any right or
remedy related thereto hereunder shall be subject, in each case, to the terms of the
Intercreditor Agreement.

     (b) In the event of any conflict between the terms and provisions of this Agreement and
of the Intercreditor Agreement, the terms and provisions of the Intercreditor Agreement
shall govern.

15

 

     (c) Notwithstanding anything to the contrary herein, any provision hereof that requires
any Pledgor to (i) deliver any Shared Collateral to the Collateral Agent or (ii) provide
that the Collateral Agent have control over such Shared Collateral may be satisfied by (A)
the delivery of such Shared Collateral by such Pledgor to the Credit Agreement Collateral
Agent for the benefit of the Lenders and the Collateral Agent for the benefit of the Secured
Creditors pursuant to Section 5.4 of the Intercreditor Agreement and (B) providing that the
Credit Agreement Collateral Agent be provided with control with respect to such Shared
Collateral of such Pledgor for the benefit of the Lenders and the Collateral Agent for the
benefit of Secured Creditors pursuant to Section 5.4 of the Intercreditor Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

16

 

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

	 	 	 	 	 
	 	COINMACH SERVICE CORP.,

  as the Company and Pledgor

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COINMACH LAUNDRY CORPORATION,

  as Guarantor and Pledgor

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Collateral Agent

 	 
	 	By:  	/s/ Julie Salovitch-Miller
 	 
	 	 	Name:  	Julie Salovitch-Miller 	 
	 	 	Title:  	Vice President 	 

S-1

 

	 	 	 	 	 

SCHEDULE A

PLEDGOR: COINMACH SERVICE CORP.

Part I. Pledged Stock

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	 	 	Class of
	Name of	 	 	 	Number	 	 	Certificate	 	Capital Stock
	Issuing Corporation	 	Type of Shares	 	of Shares	 	 	No(s).	 	of Issuer
	Coinmach Laundry Corporation
	 	Common Stock	 	 	66,805.83	 	 	C-16	 	100%
	Coinmach Laundry Corporation
	 	Class B-1 Preferred Stock	 	 	27.1729	 	 	PB1-10	 	53.8290412%
	Coinmach Laundry Corporation
	 	Class B-2 Preferred Stock	 	 	1.67486	 	 	PB2-8	 	46.0126374%
	Appliance Warehouse of
America Inc.
	 	Common Stock	 	 	10,000	 	 	C-3	 	100%

Part II. Pledged Interests

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage of all Out-	 
	Name of Issuing	 	 	 	 	 	 	 	 	 	standing Interests	 
	Non-Corporate Entity	 	Type of Interest	 	 	Certificate No(s).	 	 	of Issuer	 
	None.
	 	 	 	 	 	 	 	 	 	 	 	 

Part III. Pledged Notes

	 	 	 	 	 	 	 	 	 	 	 
	Name of	 	Principal	 	Date of	 	 	 	 	 	Maturity
	Issuer	 	Amount	 	Issuance	 	Interest Rate	 	Date
	Coinmach Corporation

	 	As stated therein
	 	November 24, 2004
	 	 	10.95	%	 	December 1, 2024

 

 

PLEDGOR: COINMACH LAUNDRY
CORPORATION

Part I. Pledged Stock

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Percentage of	 
	 	 	 	 	 	 	 	 	 	 	 	 	Class of	 
	Name of	 	 	 	Number	 	 	Certificate	 	 	Capital Stock	 
	Issuing Corporation	 	Type of Shares	 	of Shares	 	 	No(s).	 	 	of Issuer	 
	Coinmach Corporation
	 	Common Stock	 	 	100	 	 	 	1	 	 	 	100	%

Part II. Pledged Interests

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage of all Out-
	Name of Issuing	 	 	 	 	 	standing Interests
	Non-Corporate Entity	 	Type of Interest	 	Certificate No(s).	 	of Issuer
	None.
	 	 	 	 	 	 

Part III. Pledged Notes

	 	 	 	 	 	 	 	 	 
	Name of	 	Principal	 	Date of	 	 	 	Maturity
	Issuer	 	Amount	 	Issuance	 	Interest Rate	 	Date
	None.
	 	 	 	 	 	 	 	 

* NOTE: A SEPARATE SHEET SHOULD BE USED FOR EACH PLEDGOR.

 

 

SCHEDULE B

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Organizational	 	 	 	 
	Pledgor’s	 	Type of	 	Jurisdiction of	 	Identification	 	Chief Executive	 	Principal Place
	Exact Name	 	Organization	 	Organization	 	Number	 	Office	 	of Business
	Coinmach Service
Corp.

	 	Corporation
	 	Delaware
	 	 	3744632	 	 	303 Sunnyside

Boulevard, Suite

70, Plainview, NY

11803
	 	303 Sunnyside

Boulevard, Suite

70, Plainview, NY

11803
	Coinmach Laundry

Corporation

	 	Corporation
	 	Delaware
	 	 	2495034	 	 	303 Sunnyside

Boulevard, Suite

70, Plainview, NY

11803
	 	303 Sunnyside

Boulevard, Suite

70, Plainview, NY

11803

 

 

EXHIBIT 1

PLEDGE AMENDMENT

          This Pledge Amendment, dated ___, is delivered pursuant to Section 3.2 of
the Agreement referred to below. The undersigned hereby agrees that this Pledge Amendment may be
attached to the PLEDGE AGREEMENT, dated as of November 24, 2004, among the undersigned, certain
other parties identified therein and The Bank of New York, as Collateral Agent (the
“Agreement”; capitalized terms used herein and not defined have the meanings ascribed to
them in the Agreement) and that the Pledged Securities listed on this Pledge Amendment shall be
deemed to be and shall become part of the Collateral and shall secure all Obligations.

	 	 	 	 	 
	 	 	
	,
	 	 	as Pledgor
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
	,
	

	 	 	 	Name:
	

	 	 	 	Title:

Part I. Pledged Stock

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	Class of
	Name of	 	 	 	Number	 	Certificate	 	Capital Stock
	Issuing Corporation	 	Type of Shares	 	of Shares	 	No(s).	 	of Issuer
	 
	 	 	 	 	 	 	 	 

Part II. Pledged Interests

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage of all Out-
	Name of Issuing	 	 	 	 	 	standing Interests
	Non-Corporate Entity	 	Type of Interest	 	Certificate No(s).	 	of Issuer
	 
	 	 	 	 	 	 

 

 

Part III. Pledged Notes

	 	 	 	 	 	 	 	 	 
	Name of	 	Principal	 	Date of	 	 	 	Maturity
	Issuer	 	Amount	 	Issuance	 	Interest Rate	 	Date
	 
	 	 	 	 	 	 	 	 

-2-

 

EXHIBIT 2

FORM OF ISSUER ACKNOWLEDGMENT

     The undersigned hereby (i) acknowledges receipt of a copy of the PLEDGE AGREEMENT (as amended,
amended and restated, supplemented or otherwise modified from time to time, the
“Agreement”; capitalized terms used herein but not defined herein have the meanings given
such terms in the Agreement), dated as of November 24, 2004, among COINMACH SERVICE CORP., COIMACH
LAUNDRY CORPORATION and THE BANK OF NEW YORK, as collateral agent (in such capacity, the
“Collateral Agent”), (ii) agrees promptly to note on its books the security interests
granted and confirmed under the Agreement in [DESCRIBE SECURITIES] (the “Uncertificated
Securities”), (iii) agrees that it will comply with the instructions of the Collateral Agent
with respect to the Uncertificated Securities and all proceeds and other interests related thereto
constituting Collateral without further consent by the applicable Pledgor, (iv) agrees to notify
the Collateral Agent upon obtaining knowledge of any interest in favor of any Person in the
Uncertificated Securities or any related Collateral that is adverse to the interest of the
Collateral Agent therein and (v) waives any right or requirement at any time hereafter to receive a
copy of the Agreement in connection with the registration of the Uncertificated Securities
thereunder in the name of the Collateral Agent or its nominee or the exercise of voting rights by
the Collateral Agent or its nominee.

	 	 	 	 	 
	 	[NAME OF ISSUER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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