Document:

Exhibit 10.4

 

THE TERMS AND CONDITIONS SET FORTH IN THIS
SECURITY AGREEMENT ARE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THAT
CERTAIN SUBORDINATION AND INTERCREDITOR AGREEMENT DATED AS OF THE DATE HEREOF
BY AND AMONG COMVEST INVESTMENT PARTNERS II LLC, HADDOCK, INC. AND FLOUNDER
CORPORATION.

 

SECURITY AGREEMENT

 

SECURITY AGREEMENT made by FISCHER IMAGING CORPORATION
(the “Debtor”) in favor of HOLOGIC, INC. (the “Secured Party”).  Capitalized terms used but not defined herein
shall have the meanings ascribed to them in the Loan Agreement (hereinafter
defined).  In consideration of the
agreement of Secured Party to extend credit or other financial accommodations
to the Debtor subject to the terms and conditions set forth in the Loan
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Debtor hereby agrees for the
benefit of Secured Party as follows:

 

1.   Grant  of  Security  Interest.  As
collateral security for the payment and performance when due of all Obligations
(defined below), the Debtor hereby collaterally assigns, mortgages, and pledges
to Secured Party, and hereby grants to Secured Party a continuing security
interest in and right of setoff against, all of the Debtor’s right, title and
interest in, to and under the Collateral (defined below).

 

“Collateral” means all the Debtor’s present and future
right, title and interest in and to any of the following property, wherever
located and whether now owned or hereafter acquired (together with all other
collateral security for the Obligations at any time granted to or held or
acquired by Secured Party):  All of the
Debtor’s tangible and intangible personal property, including without
limitation, all inventory, equipment and other goods, all accounts receivable,
notes, drafts, acceptances, instruments and documents, chattel paper, general
intangibles (including, without limitation, Intellectual Property (hereinafter
defined)), deposit accounts (and
all monies, credit balances, deposits and other property of Debtor now or
hereafter held or received by or in transit to Secured Party or at any
depositary or other institution from or for the account of Debtor, whether for
safekeeping, pledge, custody, transmission, collection or otherwise), investment
property, commercial tort claims, letters of credit and banker’s acceptances,
books and records, and all cash and non-cash proceeds of the foregoing in
whatever form received, including without limitation insurance proceeds and
claims against third parties for loss
or damage to or destruction of or other involuntary conversion of any kind or
nature of any or all of the other Collateral, but excluding rights (other than
payment rights) under agreements to the extent that the inclusion of
such rights would cause a default by the Debtor under the terms of any
agreement in effect on the date hereof. 
Any of the foregoing terms which are specifically defined in the Uniform
Commercial Code as in effect in the Commonwealth of Massachusetts shall have
the meanings given therein on the date hereof (“UCC”).

 

 

“Intellectual Property”
shall mean Debtor’s now owned and hereafter arising or acquired: patents,
patent rights, patent applications, copyrights, works which are the subject
matter of copyrights, copyright registrations, trademarks, trade names, trade
styles, trademark and service mark applications, and licenses and rights to use
any of the foregoing; all extensions, renewals, reissues, divisions,
continuations, and continuations-in-part of any of the foregoing; all rights to
sue for past, present and future infringement of any of the foregoing;
inventions, trade secrets, formulae, processes, compounds, drawings, designs,
blueprints, surveys, reports, manuals, and operating standards; goodwill
(including any goodwill associated with any trademark or the license of any
trademark); customer and other lists in whatever form maintained; and trade
secret rights, copyright rights, rights in works of authorship, domain names
and domain name registrations; software and contract rights relating to
software, in whatever form created or maintained.

 

“Loan Documents” shall mean this Agreement, the Loan
Agreement, the Note, that certain Patent Security Agreement dated as of even
date hereof by Borrower, that certain Trademark Security Agreement dated as of
even date hereof by Borrower and the other agreements, documents and
instruments executed and/or delivered in connection herewith and/or therewith.

 

“Obligations” means any and
all payment and performance obligations of every kind, nature and description
of the Debtor to Secured Party, including, without limitation, principal,
interest, charges, fees, costs and expenses, however evidenced, whether as
principal, surety, endorser, Debtor or otherwise, now existing or hereafter
arising, direct or indirect, absolute or contingent, due or to become due,
primary or secondary, secured or unsecured, liquidated or unliquidated, arising
under that certain Loan Agreement between Debtor and Secured Party dated as of
the date hereof (the “Loan Agreement”), under the other Loan Documents, whether
arising after the commencement of any case with respect to Debtor under the
United States Bankruptcy Code or any similar statute (including the payment of
interest and other amounts which would accrue and become due but for the
commencement of such case, whether or not such amounts are allowed or allowable
in whole or in part in such case).

 

“Permitted Liens” shall mean
liens for taxes, assessments or other governmental charges or levies not yet
delinquent and liens securing purchase money indebtedness or capitalized leases
for the acquisition of capital assets.

 

“UCC” shall have the meaning
set forth in the definition of Collateral above.

 

2.             Perfection of Security Interests.

 

(a)           Debtor irrevocably and unconditionally authorizes Secured
Party (or its agent) to file at any time and from time to time such financing
statements with respect to the Collateral naming Secured Party or its designee
as the secured party and Debtor as debtor, as Secured Party may require, and
including any other information with respect to Debtor or

 

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otherwise required by part 5 of Article 9 of
the Uniform Commercial Code of such jurisdiction as Secured Party may determine,
together with any amendment and continuations with respect thereto, which
authorization shall apply to all financing statements filed on, prior to or
after the date hereof.  Debtor hereby
ratifies and approves all financing statements naming Secured Party or its
designee as secured party and Debtor as debtor with respect to the Collateral
(and any amendments with respect to such financing statements) filed by or on
behalf of Secured Party prior to the date hereof and ratifies and confirms the
authorization of Secured Party to file such financing statements (and
amendments, if any).  Debtor hereby
authorizes Secured Party to adopt on behalf of Debtor any symbol required for
authenticating any electronic filing.  In
no event shall Debtor at any time file, or permit or cause to be filed,  any correction statement or termination
statement with respect to any financing statement (or amendment or continuation
with respect thereto) naming Secured Party or its designee as secured party and
Debtor as debtor, except as provided in Section 9-509(d) of the UCC.

 

(b)           Debtor shall take any other actions
reasonably requested by Secured Party from time to time to cause the
attachment, perfection and second priority of (junior only to the liens of
ComVest Investment Partners II LLC and the Permitted Liens), and the ability of
Secured Party to enforce the security interest of Secured Party in any and all
of the Collateral, including, without limitation, (i) executing,
delivering and, where appropriate, filing financing statements and amendments
relating thereto under the UCC or other applicable law, to the extent, if any,
that Debtor’s signature thereon is required therefor, (ii) causing Secured
Party’s name to be noted as secured party on any certificate of title for a titled
good if such notation is a condition to attachment, perfection or priority of,
or ability of Secured Party to enforce, the security interest of Secured Party
in such Collateral, (iii) complying with any provision of any statute,
regulation or treaty of the United States as to any Collateral if compliance
with such provision is a condition to attachment, perfection or priority of, or
ability of Secured Party to enforce, the security interest of Secured Party in
such Collateral, (iv) obtaining the consents and approvals of any
Governmental Authority or third party, including, without limitation, any
consent of any licensor, lessor or other person obligated on Collateral, and
taking all actions required by any earlier versions of the UCC or by other law,
as applicable in any relevant jurisdiction.

 

3.             Secured Party’s Rights and Obligations.  Debtor shall remain liable under all accounts
receivable, instruments and documents and general intangibles.  Secured Party shall not have any obligation
or liability under any accounts receivable, instruments and documents or
general intangibles by reason of this Security Agreement or the exercise of
Secured Party’s rights and remedies hereunder, nor shall Secured Party be
required to perform the Debtor’s obligations pursuant thereto. Secured Party
shall have no obligation to inquire as to the sufficiency of any payment
received by it on account of any of Debtor’s accounts receivable or to take any
action to collect or enforce the payment of any account receivable.

 

4.             Insurance. 
Debtor shall, at all times, maintain with financially sound and
reputable insurers adequate insurance with respect to the Collateral.  In addition to such requirements:

 

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(a)           Debtor shall furnish certificates,
policies or endorsements to Secured Party as Secured Party shall require as
proof of such insurance, and, if Debtor fails to do so, Secured Party is
authorized, but not required, to obtain such insurance at the expense of
Debtor;

 

(b)           All policies shall provide for at least
thirty (30) days prior written notice to Secured Party of any cancellation or
reduction of coverage and that Secured Party may act as attorney for Debtor in
obtaining, and at any time an Event of Default exists or has occurred and is
continuing, adjusting, settling, amending and canceling such insurance; and

 

(c)           Debtor shall cause Secured Party to be
named as a loss payee and an additional insured (but without any liability for
any premiums) under such insurance policies and Debtor shall obtain
non-contributory lender’s loss payable endorsements to all insurance policies
in form and substance satisfactory to Secured Party (such lender’s loss payable
endorsements shall specify that the proceeds of such insurance shall be payable
to Secured Party as its interests may appear and further specify that Secured
Party shall be paid regardless of any act or omission by Debtor or any of its
affiliates).

 

At its option, Secured Party may apply any insurance
proceeds received by Secured Party at any time to the cost of repairs or
replacement of Collateral and/or to payment of the Obligations, whether or not
then due, in any order and in such manner as Secured Party may determine or
hold such proceeds as cash collateral to secure the Obligations.

 

5.             Further  Assurances.  At Secured Party’s request from time to time,
the Debtor will execute and deliver or cause to be executed and delivered any
and all such further agreements, instruments and documents and take such
further actions as Secured Party may reasonably deem desirable to evidence, perfect, maintain and enforce the Secured Party’s
security interests and the priority thereof in the Collateral and to otherwise
effectuate the provisions or purposes of this Security Agreement and the other
Loan Documents.

 

6.             Events
of  Default.  The following shall each constitute an Event
of Default hereunder:

 

(a)           occurrence of any Event of Default as defined
in the Loan Agreement; and

 

(b)           any failure of Debtor in the performance in any material
respect of any of the terms or conditions of, or any breach of any material
representation, covenant or warranty under, or any other material default under
this Agreement.

 

7.             Remedies  Upon  Default.

 

(a)           Upon the
occurrence and during the continuance of any Event of Default, and subject to
(and without limitation of) the terms of the Loan Agreement (including, without
limitation, the cure periods (if any) with respect to such Events of Default
set forth therein):

 

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(i)            Secured
Party may declare all Obligations secured hereby immediately due and payable
and shall have all of the rights and remedies of a secured party under the
Uniform Commercial Code as now in effect in the Commonwealth of Massachusetts
or under other applicable law.

 

(ii)           Secured Party may notify Debtor’s account or contract
debtors (or other obligors whose obligations to Debtor secure this agreement)
of Secured Party’s security interest and that such account or contract debtors
are to make payments directly to Secured Party. 
Secured Party may send this notice in Debtor’s name or in Secured Party’s
name, and at Secured Party’s request Debtor will join in Secured Party’s
notice, provide written confirmation of Secured Party’s security interest and
request that payment be sent to Secured Party. 
Secured Party may enforce this obligation by specific performance.  Secured Party may collect all amounts due on
the accounts and accounts receivable. 
Upon and after notification by Secured Party to Debtor, Debtor shall
hold any proceeds and collections of any of the collateral in trust for Secured
Party and shall not commingle such proceeds or collections with any other of
Debtor’s funds, and Debtor shall deliver all such proceeds to Secured Party
immediately upon Debtor’s receipt thereof in the identical form received and
duly endorsed or assigned to Secured Party.

 

(iii)          with or without judicial process or the aid or assistance
of others, Secured Party may enter upon any premises on or in which any of the
Collateral may be located and take possession of the Collateral or complete
processing, manufacturing and repair of all or any portion of the Collateral.

 

(iv)          Secured Party may collect, foreclose, receive, appropriate,
setoff and realize upon any and all Collateral.

 

(v)           Secured Party may remove any or all of the Collateral from
any premises on or in which the same may be located for the purpose of
effecting the sale, foreclosure or other disposition thereof or for any other
purpose.

 

(vi) Secured Party may sell,
lease, transfer, assign, deliver or otherwise dispose of any and all Collateral
(including entering into contracts with respect thereto, public or private
sales at any exchange, broker’s board, at any office of Secured Party or
elsewhere) at such prices or terms as Secured Party may deem reasonable, for
cash, upon credit or for future delivery, with the Secured Party having the
right to purchase the whole or any part of the Collateral at any such public
sale, all of the foregoing being free from any right or equity of redemption of
Debtor, which right or equity of redemption is hereby expressly waived and
released by Debtor.

 

(vii)         At
the request of Secured Party, the Debtor shall cause the Collateral, or such
portion of the Collateral as Secured Party may direct, to be assembled for
Secured Party at such location (including, without limitation, Debtor’s
business address) as Secured Party may request.

 

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(viii)   Secured
Party may exercise any other rights and remedies that it may have under the
other Loan Documents.

 

(b)           If any of the Collateral is sold or leased by Secured
Party upon credit terms or for future delivery, the Obligations shall not be
reduced as a result thereof until payment therefor is finally collected by
Secured Party.  If notice of disposition
of Collateral is required by law, ten (10) days prior notice by Secured Party
to Debtor designating the time and place of any public sale or the time after which
any private sale or other intended disposition of Collateral is to be made,
shall be deemed to be reasonable notice thereof and Debtor waives any other
notice.  In the event Secured Party
institutes an action to recover any Collateral or seeks recovery of any
Collateral by way of prejudgment remedy, Debtor waives the posting of any bond
which might otherwise be required.  Any
such sale may take place from Debtor’s location or such other location as
Secured Party may designate.

 

(c)           Debtor hereby irrevocably appoints Secured Party as its
true and lawful attorney-in-fact with full power of substitution, effective
upon the occurrence and continuation of an Event of Default, to take any of the
foregoing actions set forth in this Section in the name of the Debtor or
Secured Party to carry out the terms of this Agreement and to protect, enforce,
preserve or perfect Secured Party’s rights hereunder and under the other Loan
Documents.  Such power of attorney is
irrevocable and shall be deemed to be coupled with an interest.

 

(d)           For the purpose of enabling Secured Party to exercise the
rights and remedies hereunder, Debtor hereby grants to Secured Party, to the
extent assignable, an irrevocable, non-exclusive license (exercisable without
payment of royalty or other compensation to Debtor) to use, assign, license or
sublicense any of the trademarks, service-marks, trade names, business names,
trade styles, designs, logos and other source of business identifiers and other
Intellectual Property and general intangibles now owned or hereafter acquired
by Debtor, wherever the same maybe located, including in such license
reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer programs used for the compilation or
printout thereof.

 

(e)           Secured Party may apply the cash proceeds of Collateral
actually received by Secured Party from any sale, lease, foreclosure or other
disposition of the Collateral to payment of the Obligations, in whole or in
part and in such order as Secured Party may elect, whether or not then
due.  Debtor shall remain liable to
Secured Party for the payment of any deficiency with interest at the highest
rate provided for in the Loan Agreement and, subject to the provisions of the
Asset Purchase Agreement, all costs and expenses of collection or enforcement,
including attorneys’ fees and legal expenses.

 

8.             Waiver of Counterclaims. 
Debtor waives all rights to interpose any claims, deductions, setoffs or
counterclaims of any nature (other then compulsory counterclaims) in any action
or proceeding with respect to this Security Agreement, the other Loan
Documents, the Obligations, the Collateral or any matter arising therefrom or
relating hereto or thereto.

 

9.             Miscellaneous. 
Subject to the provisions of the Asset Purchase Agreement, expenses of
enforcing Secured Party’s rights hereunder including, but not limited
to, Secured

 

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Party’s reasonable attorneys’ fees and other expenses shall be payable
by Debtor on demand and shall constitute Obligations hereunder.  None of the terms or provisions of this
Agreement may be waived, altered, modified or amended except by an instrument
in writing, duly executed by Secured Party and Debtor.  Secured Party’s rights and remedies hereunder
or under any other agreement or instrument shall be cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by law.  This Agreement
shall be governed by the laws of the Commonwealth of
Massachusetts.  This Agreement shall be assignable by Secured Party
without Debtor’s consent and shall be binding upon and shall inure to the
benefit of Debtor and Secured Party and their respective successors and
assigns; PROVIDED THAT Debtor may not assign or transfer any rights or obligations
hereunder without Secured Party’s prior written consent. This Security
Agreement is supplemental to the Loan Agreement (the terms of which, including,
without limitation, the notice and governing law provisions, no waiver
provisions and waiver of jury trial provisions, the Debtor expressly accepts,
confirms and acknowledges are incorporated herein by reference).  In the event of any irreconcilable conflict
between the provisions of this Security Agreement and the Loan Agreement the
provisions of the Loan Agreement shall control.

 

REMAINDER OF PAGE INTENTIONALLY
BLANK

 

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Signature Page to Security
Agreement

 

EXECUTED an instrument under seal as of June 22, 2005.

 

	
   

  	
  FISCHER IMAGING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Harris Ravine

  
	
   

  	
   

  	
    Name:
  Harris Ravine

  
	
   

  	
   

  	
    Title: President and Chief Executive
  Officer

  

 

8Exhibit 10.5

 

THE TERMS AND CONDITIONS SET FORTH IN THIS
TRADEMARK SECURITY AGREEMENT ARE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH
IN THAT CERTAIN SUBORDINATION AND INTERCREDITOR AGREEMENT DATED AS OF THE DATE
HEREOF BY AND AMONG COMVEST INVESTMENT PARTNERS II LLC, HADDOCK, INC. AND
FLOUNDER CORPORATION.

 

TRADEMARK SECURITY AGREEMENT

 

AGREEMENT dated as of June 22, 2005 made by Fischer Imaging
Corporation, a Delaware corporation (“Borrower”), in favor of Hologic, Inc., a
Delaware corporation, and its successors, assigns, and other legal representatives
(“Secured Party”).

 

W I  T
N  E  S  S  E  T  H:

 

WHEREAS, Borrower and Secured Party are parties to a
Loan Agreement, dated as of June 22, 2005 (the “Loan Agreement”), and certain
supplements, agreements and instruments entered into pursuant thereto as such
may be amended, modified or supplemented from time to time (together with the
Loan Agreement and this Trademark Security Agreement, the “Loan Documents”),
pursuant to which Secured Party has agreed to make a certain loan to Borrower;

 

WHEREAS, Secured Party’s willingness to enter into the
Loan Documents and make such loan available thereunder is subject to the
condition, among others, that Borrower execute and deliver this Trademark
Security Agreement;

 

NOW, THEREFORE, in consideration of the premises and
for one dollar ($1.00) and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and in addition to, and not
in limitation of, any rights of the Secured Party under the other Loan
Documents, Borrower hereby agrees for the benefit of Secured Party as follows:

 

1.             DEFINITIONS.

 

1.1           Capitalized
terms used but not defined herein shall have the meanings ascribed to them in
the Loan Agreement.

 

1.2           “Proceeds”
shall mean any consideration received from the sale, exchange, license, lease
or other transfer or disposition of any right, interest, asset or property
which constitutes Trademark Collateral, any value received as a consequence of
the ownership, possession, or use of any Trademark Collateral, and any payment
received from any insurer or other person or entity as a result of the
destruction, loss, theft or other involuntary conversion of whatever nature of
any right, interest, asset or property which constitutes Trademark Collateral.

 

1.3           “PTO”
shall mean the United States Patent and Trademark Office.

 

1

 

1.4           “Trademarks”
shall mean all of the trademarks, service marks, designs, logos, indicia, trade
names, corporate names, company names, business names, fictitious business
names, trade styles, elements of package or trade dress, and/or other source
and/or product or service identifiers, and general intangibles of like nature,
used or associated with or appurtenant to the products, services and business
of the Borrower, which (i) are set forth on Schedule  A attached
hereto, or (ii) have been adopted, acquired, owned, held or used by the
Borrower and are now owned, held or used by the Borrower, in the Borrower’s
business, or with the Borrower’s products and services, or in which the
Borrower has any right, title or interest, or (iii) are in the future adopted,
acquired, owned, held and/or used by the Borrower in the Borrower’s business or
with the Borrower’s products and services, or in which the Borrower in the
future acquires any right, title or interest.

 

1.5           “Trademark
Collateral” shall mean all of the Borrower’s right, title and interest (to
the extent Borrower has any such right, title or interest) in and to all of the
Trademarks, the Trademark Registrations, the Trademark Rights, and all additions,
improvements and accessions to, substitutions for, replacements of, and all
products and Proceeds (including insurance proceeds) of any and all of the
foregoing provided, however, that Trademark Collateral shall exclude all
rights of Borrower (except payment rights) to the extent that the inclusion of
such rights would cause a default by Borrower under the terms of any agreement.

 

1.6           “Trademark
Registrations” shall mean all past, present or future federal, state, local
and foreign registrations of the Trademarks (and all renewals and extensions of
such registrations), all past, present and future applications for any such
registrations of the Trademarks (and any such registrations thereof upon
approval of such applications), together with the right (but not the
obligation) to apply for such registrations (and prosecute such applications),
and to take any and all actions necessary or appropriate to maintain such
registrations in effect and/or renew and extend such registrations.

 

1.7           “Trademark
Rights” shall mean any and all past, present or future rights in, to and
associated with the Trademarks throughout the world, whether arising under
federal law, state law, common law, foreign law or otherwise, including but not
limited to the following:  all such
rights arising out of or associated with the Trademark Registrations; the right
(but not the obligation) to register claims under any state, federal or foreign
trademark law or regulation; the right (but not the obligation) to sue or bring
opposition or cancellation proceedings for any and all past, present and future
infringements or dilution of or any other damages or injury to the Trademarks,
the Trademark Rights, and the rights to damages or profits due or accrued
arising out of or in connection with any such past, present or future
infringement, dilution, damage or injury.

 

1.8           “Use”
of any Trademark shall include all uses of such Trademark by, for or in
connection with the Borrower or its business or for the direct or indirect
benefit of the Borrower or its business, including but not limited to all such
uses by the Borrower itself, by any of the affiliates of the Borrower, or by
any licensee or contractor of the Borrower.

 

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2.             GRANT
OF SECURITY; COLLATERAL ASSIGNMENT.

 

2.1           Grant
of Security Interest.  As collateral
security for the complete and timely payment, performance and satisfaction of
all Obligations (as defined in the Security Agreement from Borrower to Secured
Party dated as of the date hereof (“Security Agreement”)), the Borrower hereby
unconditionally grants to the Secured Party, a continuing security interest in
and lien on the Trademark Collateral, and pledges, mortgages and hypothecates
(but does not transfer title to) the Trademark Collateral to the Secured Party.

 

2.2           Supplemental
to Loan Documents.  The parties
expressly acknowledge and agree that the Borrower has delivered the Loan
Documents pursuant to which the Borrower unconditionally granted to the Secured
Party a continuing security interest in and lien on the Collateral (as defined
in the Security Agreement) (including the Trademark Collateral).  In no event shall this Trademark Security
Agreement, or the recordation of this Trademark Security Agreement (or any
document hereunder) with the PTO, adversely affect or impair, in any way or to
any extent, the Loan Documents, the security interest of the Secured Party in
the Collateral (including the Trademark Collateral) pursuant to the Loan
Documents, the attachment and perfection of such security interest under the
UCC (as defined in the Security Agreement), or the present or future rights and
interests of the Secured Party in and to the Collateral under or in connection
with the Loan Documents, this Trademark Security Agreement and/or the UCC.  Any and all rights and interests of the
Secured Party in and to the Trademark Collateral (and any and all obligations
of the Borrower with respect to the Trademark Collateral) provided herein, or
arising hereunder or in connection herewith, shall only supplement and be
cumulative and in addition to the rights and interests of the Secured Party
(and the obligations of the Borrower) in, to or with respect to the Collateral
(including the Trademark Collateral) provided in or arising under or in
connection with the other Loan Documents.

 

3.             REPRESENTATIONS
AND WARRANTIES.  The Borrower
represents and warrants to, and covenants and agrees with, Secured Party, as
follows:

 

3.1           Title.  The Borrower will subject to its reasonable
business judgment, take all actions as it shall determine to defend its right,
title and interests in and to the Trademarks and the Trademark Collateral
against claims of any third parties.

 

3.2           Maintenance
of Trademark Collateral.  The
Borrower shall take such actions (including but not limited to institution and
maintenance of suits, proceedings or actions) as it determines to be
appropriate to maintain, protect, preserve, care properly for and enforce the
Trademarks and the Trademark Registrations, Trademark Rights and to preserve
the Borrower’s rights in the Trademarks.

 

3.3           No
Infringements.  To the best of the
Borrower’s knowledge and belief, there is at present no material infringement
or unauthorized or improper use of the Trademarks or the Trademark
Registrations or the Trademark Rights related thereto.  In the event any such infringement or
unauthorized or improper use by any third party has been reasonably established

 

3

 

by the Borrower, the Borrower shall promptly notify the Secured Party
and Secured Party shall have the right to sue and recover therefor and to
retain any and all damage so recovered or obtained.

 

3.4           Recording
at PTO.  Borrower acknowledges that
Secured Party may cause this Trademark Security Agreement to be recorded with
the PTO.

 

4.             RIGHTS
OF AND LIMITATIONS ON SECURED PARTY.

 

4.1           Borrower
to Remain Liable.  It is expressly
agreed by Borrower that Borrower shall remain liable to observe and perform all
the conditions and obligations to be observed and performed by it relating to
the Trademark Collateral.  Secured Party
shall not have any obligation or liability under or in relation to the
Trademark Collateral by reason of the execution and delivery of this Trademark
Security Agreement and Secured Party’s rights hereunder, or the grant of a
security interest by Borrower to Secured Party of, or the receipt by Secured
Party in accordance with this Trademark Security Agreement of, any payment relating
to any Trademarks, nor shall Secured Party be required or obligated in any
manner to perform or fulfill any of the obligations of Borrower relating to the
Trademark Collateral or be liable to any party on account of Borrower’s use of
the Trademark Collateral.

 

4.2           Specific
Enforcement.  Due to the unique
nature of the Trademark Collateral, and in order to preserve its value, the
Borrower agrees that the Borrower’s agreements, duties and obligations under
this Trademark Security Agreement shall be subject to specific enforcement and
other appropriate equitable orders and remedies.

 

5.             REMEDIES
UPON AN EVENT OF DEFAULT.  During the
continuance of an Event of Default:

 

(a)           Secured
Party may declare all Obligations secured hereby immediately due and payable
and shall have all of the rights and remedies of a secured party under the UCC
as now in effect in the Commonwealth of Massachusetts or under other applicable
law.

 

(b)           Secured
Party may notify any obligors with respect to the Trademark Collateral of Secured
Party’s security interest and that such obligors are to make payments directly
to Secured Party.  Secured Party may send
this notice in Borrower’s name or in Secured Party’s name, and at Secured Party’s
request Borrower will join in Secured Party’s notice, provide written
confirmation of Secured Party’s security interest and request that payment be
sent to Secured Party.  Secured Party may
enforce this obligation by specific performance.  Secured Party may collect all amounts due
from such obligors.  Upon and after
notification by Secured Party to Borrower, Borrower shall hold any proceeds and
collections of any of the Trademark Collateral in trust for Secured Party and
shall not commingle such proceeds or collections with any other of Borrower’s
funds, and Borrower shall deliver all such proceeds to Secured Party
immediately upon Borrower’s receipt thereof in the identical form received and
duly endorsed or assigned to Secured Party.

 

4

 

(c)           Secured
Party will give to the Borrower reasonable notice of the time and place of any
public sale of Trademark Collateral or of the time after which any private sale
or other intended disposition thereof is to be made.  Such requirement of reasonable notice shall
be met if such notice is delivered to the address of the Borrower set forth in
this Trademark Security Agreement at least ten (10) days before the time of the
proposed sale or disposition.  Any such
sale may take place from Borrower’s location or such other location as Secured
Party may designate.  Borrower shall
remain liable for any deficiency in payment of the Obligations after any such
sale.

 

(d)           Borrower
hereby irrevocably appoints Secured Party as its true and lawful
attorney-in-fact with full power of substitution to take any of the foregoing
actions in the name of the Borrower or Secured Party to carry out the terms of
this Trademark Security Agreement and to protect, enforce, preserve or perfect
Secured Party’s rights hereunder.  Such
power of attorney is irrevocable and shall be deemed to be coupled with an
interest.

 

6.             LIABILITY
FOR USES OF TRADEMARK COLLATERAL. 
The Borrower shall be liable for any and all uses or misuses of and the
practice, manufacture, sales (or other transfers or dispositions) of any of the
Trademark Collateral by the Borrower and its affiliates.  The Borrower shall also be exclusively liable
for any claim, suit, loss, damage, expense or liability arising out of or in
connection with the fault, negligence, acts or omissions of the Borrower
(regardless of whether such fault, negligence, acts or omissions occurred or
occur prior to or after the applicable license termination).

 

7.             LICENSE
AGREEMENT OBLIGATIONS.  Nothing in
this Trademark Security Agreement shall relieve the Borrower from any
performance of any covenant, agreement or obligation of the Borrower under any
license agreement now or hereafter in effect licensing any part of the
Trademark Collateral, or from any liability to any licensee or licensor under
any such license agreement or to any other party, or shall impose any liability
on Secured Party for any act or omission of the Borrower in connection with any
such license agreement.

 

8.             GENERAL
PROVISIONS.  This Trademark Security
Agreement is supplemental to the Security Agreement and the Loan Agreement (the
terms of which, including, without limitation, the notice and governing law
provisions and no waiver provision, the Borrower expressly accepts, confirms
and acknowledges are incorporated herein by reference).  In the event of any irreconcilable conflict
between the provisions of this Trademark Security Agreement and the Loan
Agreement or the Security Agreement, the provisions most advantageous to
Secured Party and most restrictive to Borrower shall govern.

 

REMAINDER OF PAGE
INTENTIONALLY BLANK

 

5

 

IN WITNESS WHEREOF, Borrower has caused this Trademark
Security Agreement to be executed by its duly authorized officer as of the date
first written above.

 

 

	
  WITNESS:

  	
  FISCHER IMAGING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Harris Ravine

  	
   

  
	
   

  	
   

  	
   Name:

  	
  Harris Ravine

  	
   

  
	
   

  	
   

  	
   Title:

  	
  President and Chief Executive Officer

  	
   

  
							

 

 

	
  STATE: Colorado

  	
   

  	
   

  
	
  COUNTY: Denver

  	
   

  	
  June 22, 2005

  

 

Then personally appeared the above-named Harris Ravine
and stated that he is a duly authorized Officer of Flounder Corporation (the “Corporation”)
and acknowledged the foregoing instrument to be his free act and deed, and the
free act and deed of said Corporation, before me,

 

 

	
   

  	
  /s/ Marilyn R. Moll

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My Commission Expires: November 12, 2005

  
	
   

  	
  My Commission Expires:

  

 

6

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