Document:

Ex 4.17 Purchase Agreement

Exhibit 4.17

$235,000,000 
HARLAND CLARKE HOLDINGS CORP.
9.750% Senior Secured Notes due 2018

PURCHASE AGREEMENT
July 17, 2012

Credit Suisse Securities (USA) LLC
Citigroup Global Markets Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Deutsche Bank Securities Inc.
Jefferies & Company, Inc.
UBS Securities LLC
Natixis Securities Americas LLC
c/o Credit Suisse Securities (USA) LLC (“Credit Suisse”),
Eleven Madison Avenue
New York, N.Y. 10010-3629

Dear Sirs and Madams:

1.Introductory.  Harland Clarke Holdings Corp., a Delaware corporation (the “Company”) and each other entity listed on Annex I hereto (the “Co-Issuers”), agrees with the several initial purchasers named in Schedule A hereto (the “Purchasers”) subject to the terms and conditions stated herein, to issue and sell to the several Purchasers $235,000,000 principal amount of its 9.750% Senior Secured Notes due 2018 (the “Offered Securities”) to be issued under an indenture, to be dated as of the Closing Date (the “Indenture”), among the Company, the Co-Issuers, the Guarantors (as defined below) and Wells Fargo Bank, National Association, as Trustee.  The Offered Securities will be issued, jointly and severally,  by the Company and each Co-Issuer and guaranteed, jointly and severally and fully and unconditionally, by each Guarantor listed on Annex II hereto (the “Guarantors” and such guarantees, the “Guarantees”). Capitalized terms that are not defined herein shall have the meanings set forth in the General Disclosure Package (as defined below).

On May 10, 2012, the Company and certain subsidiaries of the Company entered into an Amendment Agreement relating to the Company's existing credit agreement (the “Amendment Agreement”) on the terms described in the General Disclosure Package, among the Company, the Guarantors, certain other subsidiaries of the Company party thereto, Credit Suisse, as administrative agent and collateral agent (in its capacity as collateral agent, the “Credit Agreement Collateral Agent”), and the other parties thereto.  The Amendment Agreement includes amendments to such credit agreement that are expected to become effective substantially concurrently with the issue and sale of the Offered Securities as described in the General Disclosure Package (such credit agreement 

as so amended, the “Amended Credit Agreement”).  The net proceeds from the sale of the Offered Securities will be used to repay portions of the term loan under the Company's credit facility, as described in the Pricing Circular and the Offering Circular (each as defined below) and to pay related transaction fees and expenses.
    
The Company, the Co-Issuers and the Guarantors have agreed to secure their obligations under the Offered Securities and the Guarantees by granting liens on substantially all of their assets other than certain excluded assets described in the General Disclosure Package (the “Collateral”), pursuant to (i) a pledge and security agreement, dated as of the Closing Date (the “Security Agreement”), that will be entered into among the Company, the Guarantors and the Collateral Trustee, (ii) those certain patent, copyright and trademark security agreements, each dated as of the Closing Date (the “IP Security Agreements”), each of which will be entered into among the Company, certain of the Guarantors and the Collateral Trustee, and (iii) that certain collateral trust agreement, dated as of the Closing Date (the “Collateral Trust Agreement”), that will be entered into among the Company, the Collateral Trustee and the Credit Agreement Collateral Agent (the foregoing, collectively, the “Collateral Documents”). This Agreement, the Offered Securities, the Guarantees, the Indenture and the Collateral Documents are hereinafter referred to collectively as the “Operative Documents” and the transactions contemplated hereby and thereby are collectively referred to herein as the “Transactions.”

Each of the Company, the Co-Issuers and the Guarantors hereby agrees with the several Purchasers as follows:
2.Representations and Warranties of the Company, the Co-Issuers and the Guarantors.  As of the date hereof and as of the Closing Date, each of the Company and each Guarantor, jointly and severally, represents and warrants to, and agrees with the several Purchasers that:
(a)Offering Circulars; Certain Defined Terms.  The Company has prepared or will prepare a Preliminary Offering Circular and a Final Offering Circular.

For purposes of this Agreement:

“Applicable Time” means 7:45 P.M. (New York City time) on the date of this Agreement.

“Closing Date” has the meaning set forth in Section 3 hereof.

“Commission” means the Securities and Exchange Commission.
        
“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

“Final Offering Circular” means the final offering circular relating to the Offered Securities to be offered by the Purchasers that discloses the offering price and other final terms of the Offered Securities and is dated as of the date of this Agreement (even if finalized and issued subsequent to the date of this Agreement).

“Free Writing Communication” means a written communication (as such term is defined in Rule 405 of Regulation C under the Securities Act) that constitutes an offer to sell or a solicitation of an offer to buy the Offered Securities and is made by means other than the Preliminary Offering Circular or the Final Offering Circular.

“General Disclosure Package” means the Preliminary Offering Circular together with any Issuer Free Writing Communication existing at the Applicable Time and the other information which is 

intended for general distribution to prospective investors, as evidenced by its being specified in Schedule B hereto. 

“Issuer Free Writing Communication” means a Free Writing Communication prepared by or on behalf of the Company, used or referred to by the Company or containing a description of the final terms of the Offered Securities or of their offering, in the form retained in the Company's records.  

“Preliminary Offering Circular” means the preliminary offering circular, dated May 14, 2012, as superseded by the preliminary offering circular, dated July 16, 2012,  relating to the Offered Securities to be offered by the Purchasers.

“Rules and Regulations” means the rules and regulations of the Commission.

“Securities Act” means the United States Securities Act of 1933, as amended and the rules and regulations of the Commission.

“Securities Laws” means, collectively, the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”), the Securities Act, the Exchange Act, the Rules and Regulations, the auditing principles, rules, standards and practices applicable to auditors of “issuers” (as defined in Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board and, as applicable, the rules of the New York Stock Exchange and the NASDAQ Global Market (“Exchange Rules”).

“Supplemental Marketing Material” means any Issuer Free Writing Communication other than any Issuer Free Writing Communication specified in Schedule B hereto.  Supplemental Marketing Materials include, but are not limited to, the Supplemental Term Sheet, any electronic Bloomberg roadshow slides and any accompanying audio recording. 
        
“Supplemental Term Sheet” means the preliminary summary terms regarding the Offered Securities, distributed on July 13, 2012, attached as Schedule C hereto.
References herein to “Preliminary Offering Circular” and “Final Offering Circular” include the documents incorporated therein by reference.
Unless otherwise specified, a reference to a “rule” is to the indicated rule under the Securities Act.

(b)Disclosure.  As of the date of this Agreement, the Final Offering Circular does not, and as of the Closing Date, the Final Offering Circular will not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  At the Applicable Time, and as of the Closing Date, neither (i) the General Disclosure Package, nor (ii) any individual Supplemental Marketing Material, when considered together with the General Disclosure Package, included, or will include, any untrue statement of a material fact or omitted, or will omit, to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  The preceding two sentences do not apply to statements in or omissions from the Preliminary or Final Offering Circular, the General Disclosure Package or any Supplemental Marketing Material based upon written information furnished to the Company by any Purchaser through Credit Suisse specifically for use therein, it being understood and agreed that the only such information is that described as such in Section 8(b) hereof.  On the date of this Agreement, the Company's Annual Report on Form 10‐K most recently filed with the Commission and all reports for subsequent periods (collectively, the “Exchange Act Reports”) which have been filed by the Company with the Commission or sent to stockholders pursuant to the Exchange Act, when considered 

together with the General Disclosure Package, do not include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  Such documents, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the Rules and Regulations.  
(c)Good Standing of the Company, the Co-Issuers and the Guarantors.  Each of the Company, the Co-Issuers and the Guarantors has been duly incorporated or formed and is validly existing as a corporation or other entity in good standing under the laws of its jurisdiction of incorporation or formation, with all requisite corporate or other power and authority to carry on its business as it is currently being conducted and as described in the General Disclosure Package and the Final Offering Circular and to own, lease and operate its properties, as described in the General Disclosure Package and the Final Offering Circular; and the Company and each Guarantor is duly qualified and is in good standing as a foreign corporation or other entity authorized to do business in each jurisdiction in which the nature of its business or its ownership or leasing of property requires such qualification, except where the failure to be so qualified would not reasonably be expected to (1) result, individually or in the aggregate, in a material adverse effect on the properties, business, results of operations, condition (financial or otherwise), or affairs of the Company, the Co-Issuers and the Guarantors, taken as a whole, or (2) in any manner draw into question the validity of this Agreement or any other Operative Document or the transactions described in the General Disclosure Package and the Offering Circular under the caption “Use of Proceeds” (any of the events set forth in clauses (1) or (2), a “Material Adverse Effect”).
(d)Subsidiaries.  Each subsidiary of the Company and each subsidiary of the Guarantors has been duly incorporated or formed and is validly existing as a corporation or other entity in good standing under the laws of its jurisdiction of incorporation or formation, with all requisite corporate or other power and authority to carry on its business as it is currently being conducted and as described in the General Disclosure Package and the Final Offering Circular and to own, lease and operate its properties, as described in the General Disclosure Package and the Final Offering Circular; and each subsidiary of the Company and each subsidiary of the Guarantors is duly qualified and is in good standing as a foreign corporation or other entity authorized to do business in each jurisdiction in which the nature of its business or its ownership or leasing of property requires such qualification, except where the failure to be so qualified would not reasonably be expected to result in a Material Adverse Effect; all of the outstanding shares of capital stock of each subsidiary of the Company and each Guarantor are owned, directly or indirectly, by the Company or respective Guarantor, free and clear of any security interest, claim, defect, lien, limitation on voting rights or encumbrance (other than transfer restrictions imposed by the Credit Facility, the Securities Act and the securities or Blue Sky laws of certain jurisdictions); and all such securities have been duly authorized, validly issued and are fully paid and nonassessable and were not issued in violation of any preemptive or similar rights.
(e)Corporate Power and Authority.  Each of the Company, the Co-Issuers and the Guarantors has all requisite corporate or other power and authority to execute, deliver and perform its obligations under this Agreement and each other Operative Document to which it is a party and to consummate the Transactions, including, without limitation, the corporate or other power and authority to issue, sell and deliver the Offered Securities as provided herein and therein.
(f)Corporate Structure.  The entities listed on Annex III hereto are the only subsidiaries, direct or indirect, of the Company as of the date hereof.
(g)Indenture; Offered Securities.  The Indenture has been duly and validly authorized by the Company, the Co-Issuers and the Guarantors, and when duly executed and delivered by the Company, each Co-Issuer and each Guarantor will be the valid and legally binding agreement of each of the Company, the Co-Issuers and the Guarantors enforceable against each of them in 

accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance or transfer, reorganization, moratorium or similar laws affecting creditors' rights generally and subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law); the Offered Securities have been duly authorized by the Company and each Co-Issuer, and when the Offered Securities are delivered and paid for pursuant to this Agreement on the Closing Date, such Offered Securities will have been duly executed, authenticated, issued and delivered by the Company and each Co-Issuer, will be the valid and legally binding agreement of each of the Company and the Co-Issuers, enforceable against them in accordance with their terms, subject to bankruptcy, insolvency, fraudulent conveyance or transfer, reorganization, moratorium or similar laws affecting creditors' rights generally and subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law) and entitled to the benefits and security provided by the Indenture; the General Disclosure Package and the Offering Circular each contain a summary of the terms of the Indenture and the Offered Securities, which summary is accurate in all material respects.
(h)Guarantee.  The Guarantee of each Guarantor has been duly and validly authorized by such Guarantor; and, when the Offered Securities are delivered and paid for pursuant to this Agreement on the Closing Date and issued, executed and authenticated in accordance with the terms of the Indenture and the Guarantee of each Guarantor endorsed thereon will have been duly executed and delivered by each such Guarantor, will conform to the description thereof contained in the General Disclosure Package and the Final Offering Circular and will constitute valid and legally binding obligations of such Guarantor, enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles.  
(i)Purchase Agreement.  This Agreement has been duly and validly authorized, executed and delivered by the Company, each Co-Issuer and each Guarantor.
(j)Collateral Documents.  Each of the Collateral Documents has been duly authorized by the Company, each Co-Issuer and each Guarantor that is a party thereto and, at the Closing Date, will have been duly executed and delivered by the Company, each Co-Issuer and each Guarantor that is a party thereto, and will constitute a valid and legally binding agreement of the Company, each Co-Issuer and each Guarantor that is a party thereto enforceable against the Company, each Co-Issuer and each Guarantor that is a party thereto in accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance or transfer, reorganization, moratorium or similar laws affecting creditors' rights generally and subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law) and will create valid security interests in the Collateral covered thereby.
(k)Collateral.  Upon the filing of Uniform Commercial Code (“UCC”) financing statements in the filing offices identified in the applicable schedule to the Security Agreement and payment of all applicable filing fees relating thereto, the security interests of the Collateral Trustee in all Collateral that can be perfected by the filing of a UCC financing statement under the UCC as in effect in any relevant jurisdiction as of the Closing Date will constitute a valid and perfected first priority security in all Collateral, securing the obligations of the Company, the Co-Issuers and the Guarantors with respect to the Offered Securities and the Guarantees, subject to the intercreditor provisions set forth in the Collateral Trust Agreement and the Indenture and other Permitted Liens.  Upon the filing of such UCC financing statements and, to the extent that perfection or priority of the security interest therein is not subject to Article 9 of the UCC, upon recordation of the IP Security Agreements with the U.S. Patent and Trademark Office and the U.S. Copyright Office, as applicable, and payment of all applicable filing fees relating thereto, the security interests granted to the Collateral Trustee in the property described in the IP Security Agreements as of the Closing Date shall constitute valid, perfected first priority security interests, subject to the intercreditor provisions set forth in the 

Collateral Trust Agreement and the Indenture and other Permitted Liens.  As of the Closing Date, such UCC financing statements and IP Security Agreements will have been delivered to the Collateral Trustee in duly completed and, to the extent applicable, duly executed form and may be filed by the Collateral Trustee at any time on or after the Closing Date. As of the Closing Date, as contemplated by the Collateral Trust Agreement and the Credit Agreement, the Credit Agreement Collateral Agent shall have possession and control of all Collateral comprising certificated securities for which the Collateral Documents require such possession or control as of the Closing Date.
(l) No Finder's Fee.  Except as disclosed in the General Disclosure Package, and each between the Company and the Purchasers or affiliates of the Purchasers, there are no contracts, agreements or understandings among the Company and any other person that would give rise to a valid claim against the Company, its subsidiaries or the Purchasers for a brokerage commission, finder's fee or like payment in connection with the issuance, purchase and sale of the Offered Securities.
(m)No Registration Rights.  There are no holders of securities of the Company or its subsidiaries who, by reason of the execution of this Agreement or any other Operative Document, or the consummation by the Company or the Guarantors of the transactions contemplated hereby, have the right to request or demand that the Company or its subsidiaries register under the Securities Act or analogous foreign laws and regulations securities held by them; except as described in the General Disclosure Package and the Final Offering Circular, there are not currently any outstanding subscriptions, rights, warrants, calls, commitments of sale or options to acquire, or instruments convertible into or exchangeable for, any capital stock or other equity interests of the Company and its subsidiaries.
(n)Absence of Further Requirements, Consents, Approvals or Authorizations.  Assuming the accuracy of the Purchasers' representations and warranties in Section 4 of this Agreement, no consent, approval, authorization, or order of, or, except for any filings required in order to perfect the security interest relating to the Offered Securities, filing or registration with, any person (including any governmental agency or body or any court) is required for the consummation of the Transactions and the execution, delivery and performance of the Operative Documents or the offering, issuance and sale of the Offered Securities by the Company and the Co-Issuers and the issuance of the Guarantees by the Guarantors except (1) such consents as have been or will be obtained or made on or prior to the Closing Date and (2) where the failure to obtain such consents, approvals, authorizations or orders, filings, registrations, qualifications, licenses or permits would not be reasonably expected to result in a Material Adverse Effect.
(o)Title to Property.  Except as disclosed in the General Disclosure Package and the Final Offering Circular, the Company, the Co-Issuers and the Guarantors and their respective subsidiaries have good and marketable title to all real properties and all other properties and assets owned by them, in each case free from liens that would materially affect the value thereof or materially interfere with the use made or to be made thereof by them; and each of the Company, the Guarantors and their respective subsidiaries, has peaceful and undisturbed possession under all material leases to which any of them is a party as lessee and each of which lease is valid and binding and no default exists thereunder, except in each case as would not reasonably be expected to have a Material Adverse Effect.
(p)Absence of Defaults and Conflicts Arising From Transactions.  Assuming the accuracy of the Purchasers' representations and warranties in Section 4 of this Agreement, none of (i) the execution, delivery, assumption or performance by the Company, any Co-Issuer or any Guarantor, of this Agreement, or any of the other Operative Documents to which it is a party, including the consummation of the Amended Credit Agreement, (ii) the issuance and sale of the Offered Securities by the Company and the Co-Issuers and the issuance of the Guarantees by the Guarantors, (iii) the compliance by the Company, the Co-Issuers and the Guarantors in all material respects with the terms and provisions of this Agreement, or any of the other Operative Documents to which it is 

a party, or (iv) the consummation by the Company, the Co-Issuers or the Guarantors of the transactions described in the Preliminary Offering Circular and the Final Offering Circular under the caption “Use of Proceeds,” violates, conflicts with or constitutes a breach of any of the terms or provisions of, or will violate, conflict with or constitute a breach of any of the terms or provisions of, or a default under (or an event that with notice or the lapse of time, or both, would constitute a default under), or require consent under, or result in the imposition of a lien or encumbrance on any properties of the Company or its subsidiaries, or an acceleration of any indebtedness of the Company or its subsidiaries pursuant to, (A) the charter or bylaws or other organizational documents of the Company, any Co-Issuer, any Guarantor or their respective subsidiaries, (B) any bond, debenture, note, indenture, mortgage, deed of trust or other agreement or instrument to which the Company, any Co-Issuer, any Guarantor or their respective subsidiaries is a party or by which any of them is bound or to which any of their properties are subject, (C) any statute, rule or regulation applicable to the Company, any Co-Issuer, any Guarantor or their respective subsidiaries or any of their assets or properties or (D) any judgment, order or decree of any court or governmental agency, body or authority or administrative agency, domestic or foreign, having jurisdiction over the Company, any Co-Issuer, any Guarantor or their respective subsidiaries or any of their assets or properties except, with respect to clauses (B) through (D) as would not reasonably be expected to result in a Material Adverse Effect.
(q)No Consents, Approvals or Authorizations.  Assuming the accuracy of the Purchasers' representations and warranties in Section 4 of this Agreement, no consent, approval, authorization or order of, or, except for any filings required in order to perfect the security interest relating to the Offered Securities, filing, registration, qualification, license or permit of or with, (i) any court or governmental agency, body or authority or administrative agency or (ii) any other person is required for (A) the execution, delivery and performance by the Company or the Guarantors of this Agreement or any of the other Operative Documents to which it is a party, or (B) the issuance and sale of the Offered Securities, the issuance of the Guarantees and the Transactions, except (x) such consents as have been or will be obtained or made on or prior to the Closing Date and (y) where the failure to obtain such consents, approvals, authorizations or orders, filings, registrations, qualifications, licenses or permits would not be reasonably expected to result in a Material Adverse Effect.
(r)Absence of Existing Defaults and Conflicts.  Each of the Company, each Guarantor and their  respective subsidiaries, is not (i) in violation of its charter or bylaws or other organizational documents, (ii) (except as set forth in the General Disclosure Package and the Final Offering Circular) in default (or with the giving of notice or lapse of time would be in default) under any existing obligation, agreement, covenant or condition contained in any bond, debenture, note, indenture, mortgage, deed of trust or other agreement or instrument to which it is a party or by which it is bound or to which any of its properties is subject that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect or (iii) except as disclosed in the Preliminary Offering Circular and the Final Offering Circular, in violation of any local, state, federal or foreign law, statute, ordinance, rule, regulation, requirement, judgment or court decree (including, without limitation, environmental laws, statutes, ordinances, rules, regulations, requirements, judgments or court decrees) applicable to it or any of its assets or properties (whether owned or leased) that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.  To the knowledge of the Company, there exists no condition (with respect to clauses (ii) and (iii) above) that, with notice, the passage of time or otherwise, would constitute a default under any such document or instrument except for any such default which would not be reasonably expected to result in a Material Adverse Effect.
(s)Possession of Licenses and Permits.  Each of the Company, the Guarantors and their respective subsidiaries possess, and are in compliance with the terms of, all adequate certificates, permits, licenses, franchises and authorizations of governmental or regulatory authorities 

(“Licenses”), including, without limitation, under any applicable Environmental Laws, as are necessary or material to lease and operate its respective properties and to conduct its businesses as proposed in the General Disclosure Package and the Final Offering Circular, except where the failure to have such Licenses would not reasonably be expected to have a Material Adverse Effect; each of the Company, the Guarantors and their respective subsidiaries has fulfilled and performed all of its obligations with respect to such Licenses and have not received any notice of proceedings relating to, and no event has occurred that allows, or after notice or lapse of time would allow, revocation, termination or modification thereof in either case, except where such failure to perform, or occurrence of such event would not reasonably be expected to have a Material Adverse Effect.
(t)Absence of Labor Dispute.  There is (i) no significant unfair labor practice complaint pending against the Company, the Guarantors or any of their respective subsidiaries, nor, to the knowledge of the Company, threatened against any of them, before the National Labor Relations Board, any state or local labor relations board or any foreign labor relations board, and no significant grievance or significant arbitration proceeding arising out of or under any collective bargaining agreement is so pending against the Company, the Guarantors or any of their respective subsidiaries, or, to the knowledge of the Company, threatened against any of them, (ii) no significant strike, labor dispute, slowdown or stoppage pending against the Company, the Guarantors or any of their subsidiaries, or to the knowledge the Company, threatened against any of them and (iii) to the knowledge of the Company, there is no union representation question existing with respect to the employees of the Company, the Guarantors or any of their respective subsidiaries, except for any union representation question that would not reasonably be expected to have a Material Adverse Effect.  To the knowledge of the Company, no material collective bargaining organizing activities are taking place with respect to the Company, the Guarantors or any of their respective subsidiaries.  Neither the Company, the Guarantors or any of their respective subsidiaries has violated (i) any federal, state or local law or foreign law relating to discrimination in hiring, promotion or pay of employees, (ii) any applicable wage or hour laws or (iii) any provision of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or the rules and regulations thereunder, except those violations that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(u)Possession of Intellectual Property.  Each of the Company, the Guarantors and their respective subsidiaries owns, possesses, can acquire on reasonable terms or has the right to employ all patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, software, systems or procedures), trademarks, service marks and trade names, computer programs, technical data and information (collectively, the “Intellectual Property”) presently employed by it in connection with the businesses now operated by it free and clear of and without violating any right, claimed right, charge, encumbrance, pledge, security interest, restriction or lien of any kind of any other person, and the Company has not received any written notice of infringement of or conflict with asserted rights of others with respect to any of the foregoing, except such infringements as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The use of the Intellectual Property in connection with the business and operations of the Company, the Guarantors and their respective subsidiaries does not infringe on the rights of any person, except such infringements as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(v)Environmental Laws.  Except as set forth in the General Disclosure Package and the Final Offering Circular, neither the Company, the Guarantors nor any of their respective subsidiaries, has violated, or is in violation of, any foreign, federal, state or local law or regulation, or decision or order of any governmental agency or body or any court relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or 

contaminants (collectively, “Environmental Laws”), which violations would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  There is no alleged liability, or to the knowledge of the Company, potential liability (including, without limitation, alleged or potential liability or investigatory costs, cleanup costs, governmental response costs, natural resource damages, property damages, personal injuries or penalties) of the Company, the Guarantors or any of their respective subsidiaries, arising out of, based on or resulting from either (i) the presence or release into the environment of any Hazardous Material (as defined) at any location of the Company, the Guarantors or any such subsidiary, as the case may be, or (ii) any violation or alleged violation of any Environmental Law, which alleged or potential liability is required to be disclosed in the Preliminary Offering Circular and the Final Offering Circular, in either case, other than as disclosed therein, or would not reasonably be expected to have a Material Adverse Effect.  The term “Hazardous Material” means (A) any “hazardous substance” as defined by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, (B) any “hazardous waste” as defined by the Resource Conservation and Recovery Act of 1976, as amended, (C) any petroleum or petroleum product, (D) any polychlorinated biphenyl and (E) any pollutant or contaminant or hazardous, dangerous or toxic chemical, material, waste or substance regulated under or within the meaning of any other law relating to protection of human health or the environment or imposing liability or standards of conduct concerning any such chemical material, waste or substance.
(w)Absence of Manipulation.  Neither the Company, nor the Guarantors nor their respective subsidiaries has taken, directly or indirectly, any action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of any security of the Company, the Guarantors or their respective subsidiaries to facilitate the sale or resale of the Offered Securities.
(x)Statistical and Market-Related Data.  The statistical, industry and market-related data included in the Preliminary Offering Circular, the Final Offering Circular, any Issuer Free Writing Communication or any Supplemental Marketing Material are based on or derived from management estimates and third-party sources, and the Company, the Co-Issuers and the Guarantors believe such estimates and sources are reasonable, reliable and accurate in all material respects.
(y)Internal Controls and Compliance with the Sarbanes-Oxley Act.  The Company maintains a system of internal accounting controls, including, but not limited to, disclosure controls and procedures and internal controls over accounting matters and financial reporting (collectively, “Internal Controls”), that are sufficient to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer, and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer's assets that would have a material effect on the financial statements.
(z)Tax Matters.  All federal, state and foreign income and franchise tax returns required to be filed by the Company, the Guarantors or their respective subsidiaries in all jurisdictions have been so filed and are accurate in all material respects.  All taxes, including withholding taxes, penalties and interest, assessments, fees and other charges due or claimed to be due from such entities or that are due and payable have been paid, other than those being contested in good faith and for which adequate reserves have been provided in accordance with generally accepted accounting principles or those currently payable without penalty or interest and except where the failure to make 

such required filings or payments would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  To the knowledge of the Company there are no material proposed additional tax assessments against the Company, the Guarantors or their respective subsidiaries or the assets or property of the Company, the Guarantors or their respective subsidiaries, except those tax assessments for which adequate reserves have been established or those tax assessments that would not reasonably be expected to result in a Material Adverse Effect.

(aa)    Insurance.  Each of the Company, the Guarantors and their respective subsidiaries, maintains insurance covering its properties, operations, personnel and businesses, insuring against such losses and risks as are consistent with industry practice, except where failure to maintain such insurance would not reasonably be expected to have a Material Adverse Effect.  Neither the Company nor the Guarantors has received written notice from any insurer or agent of such insurer that substantial capital improvements or other expenditures will have to be made in order to continue such insurance.  Neither the Company, the Guarantors or any of their respective subsidiaries has been refused any insurance coverage sought or applied for; and neither the Company nor any such subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.. 

(bb)    Certain Relationships.  Except as described in the General Disclosure Package and the Final Offering Circular, no relationship, direct or indirect, exists between or among the Company, the Guarantors or their respective subsidiaries on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company, the Guarantors or their respective subsidiaries on the other hand, that would be required by the Securities Act to be described in the Final Offering Circular if the Final Offering Circular were a prospectus included in a registration statement on Form S-1 filed with the Commission.

(cc)    Absence of Legal and Other Proceedings  There is (i) no action, suit, investigation or proceeding before or by any court, arbitrator or governmental agency, body or authority or administrative agency, domestic or foreign, now pending, or, to the knowledge of each of the Company, threatened or contemplated, to which the Company, the Guarantors or any of their respective subsidiaries is or may be a party or to which the assets or property of the Company, the Guarantors or any of their respective subsidiaries is or may be subject, (ii) no statute, rule, regulation or order that has been enacted, adopted or issued by any governmental agency, body or authority or administrative agency or that has been proposed by any governmental agency, body or authority or administrative agency and (iii) no injunction, restraining order or order of any nature by a federal or state court or foreign court of competent jurisdiction to which the Company, the Guarantors or any of their respective subsidiaries is or may be subject or to which the business, assets or property of the Company, the Guarantors or any of their respective subsidiaries is or may be subject, that, in the case of clauses (i), (ii) and (iii) above, (A) is required to be disclosed in the General Disclosure Package and the Final Offering Circular and that is not so disclosed or (B) would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or (C) which are otherwise material in the context of the sale of the Offered Securities.  No action has been taken and no statute, rule, regulation or order has been enacted, adopted or issued by any governmental agency that prevents the issuance of the Offered Securities or Guarantees or prevents or suspends the use of the Final Offering Circular; no injunction, restraining order or order of any nature by a federal or state court of competent jurisdiction has been issued that prevents the issuance of the Offered Securities or Guarantees or prevents or suspends the sale of the Offered Securities in any jurisdiction referred to in Section 2(c) hereof; and every request of any securities authority or agency of any jurisdiction for 

additional information in connection with the offering of Offered Securities has been complied with in all material respects.

(dd)    Financial Statements.  The accountants who have certified or will certify the historical financial statements included or to be included as part of the Preliminary Offering Circular and the Final Offering Circular are independent registered public accountants as required by the Securities Act.  Except as described in the Preliminary Offering Circular and the Final Offering Circular, and except that separate financials statements that may be required under Rule 3-16 of Regulation S-X have not been included, the historical consolidated financial statements, together with related schedules and notes thereto, included in the Preliminary Offering Circular and the Final Offering Circular comply as to form in all material respects with the requirements applicable to financial statements required in registration statements on Form S-1 under the Securities Act and present fairly in all material respects the financial position and results of operations at the dates and for the periods indicated.  All such financial statements have been prepared in accordance with generally accepted accounting principles in the United States applied on a consistent basis throughout the periods presented, except as disclosed therein.  The other financial and statistical information and data included in the Preliminary Offering Circular and the Final Offering Circular derived from the historical consolidated financial statements are fairly presented in all material respects and prepared on a basis consistent with the historical consolidated financial statements included in the Preliminary Offering Circular and the Final Offering Circular and the books and records as applicable.

(ee)    No Material Adverse Change in Business.  Since the respective dates as of which information is given in the Preliminary Offering Circular, there has been no change, nor any development or event involving a prospective change, in the condition (financial or otherwise), results of operations, or business, properties of the Company, the Guarantors and their respective subsidiaries, taken as a whole, that is material and adverse, (i) there has not been any material adverse change, nor any development that is reasonably likely to result in a material adverse change, in the capital stock or the long‐term debt or net current assets, or material increase in the short-term debt, of the Company, the Guarantors or their respective subsidiaries from that set forth in the General Disclosure Package and the Final Offering Circular, (ii) no dividend or distribution of any kind has been declared, paid or made by the Company, the Guarantors or their subsidiaries on any class of its stock, and (iii) neither the Company, nor the Guarantors nor any of their respective subsidiaries has incurred any liabilities or obligations, direct or contingent, that are material, individually or in the aggregate, to the Company, the Guarantors or their respective subsidiaries taken as a whole, and that are required to be disclosed on a balance sheet or notes thereto in accordance with generally accepted accounting principles in the United States and are not disclosed on the latest balance sheet or notes thereto included in the Final Offering Circular, nor entered into any transaction not in the ordinary course of business.  Since the date hereof and since the dates as of which information is given in the Final Offering Circular, there has not occurred any change, or any development that is reasonably likely to result in a Material Adverse Effect.

(ff)    Investment Company Act.  Neither the Company, nor the Guarantors nor their respective subsidiaries is, or after giving effect to the Transactions and applying the net proceeds as described in the General Disclosure Package or the Final Offering Circular under the caption “Use of Proceeds” will be an “investment company” required to be registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”).

(gg)    Regulations T, U, X.  None of the execution, delivery and performance of this Agreement, the issuance and sale of the Offered Securities, the application of the proceeds from the 

issuance and sale of the Offered Securities and the consummation of the transactions contemplated thereby as set forth in the Preliminary Offering Circular and the Final Offering Circular, will violate Regulations T, U or X promulgated by the Board of Governors of the Federal Reserve System or analogous foreign laws and regulations.  Neither the Company nor the Guarantors nor any of their respective subsidiaries nor any agent thereof acting on their behalf has taken, and none of them will take, any action that might cause this Agreement or the issuance or sale of the Offered Securities to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System.
    
(hh)    Accurate Disclosure.  The statements in the General Disclosure Package and the Final Offering Circular under the heading “Certain United States Federal Income Tax Considerations”, “Description of Other Indebtedness” and “Description of Notes”  insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings and present the information required to be shown in all material respects.

(ii)    Compliance with Securities Act Rule 144A.  Each of the Preliminary Offering Circular and the Final Offering Circular, as of its date, and each amendment or supplement thereto, as of its date, contains the information specified in, and meets the requirements of, Rule 144A(d)(4) under the Securities Act.

(jj)    Class of Securities Not Listed.  When the Offered Securities are issued and delivered pursuant to this Agreement, no Offered Security will be of the same class (within the meaning of Rule 144A under the Securities Act) as securities of the Company that are listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a United States automated interdealer quotation system.

(kk)    No Registration.  The offer and sale of the Offered Securities and the Guarantees in the manner contemplated by this Agreement will be exempt from the registration requirements of the Securities Act by reason of Section 4(2) thereof and Regulation S thereunder assuming (A) that the purchasers who buy the Offered Securities in the Exempt Resales are Eligible Purchasers and (B) the accuracy of the Purchasers' representations contained herein, it is not necessary to qualify an indenture in respect of the Offered Securities or the Guarantees under the Trust Indenture Act.

(ll)    No General Solicitation; No Directed Selling Efforts.  None of the Company or the Guarantors or any of their affiliates, or any person acting on their behalf (it being understood that no representation or warranty is made regarding the Purchasers) (i) has, within the six month period prior to the date hereof, offered or sold in the United States or to a U.S. Person (as such terms are defined in Regulation S under the Securities Act (“Regulation S”)), the Offered Securities or any security of the same class or series as the Offered Securities or (ii) has offered or will offer or sell the Offered Securities (A) in the United States or to any U.S. Person by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act or (B) with respect to any such securities sold in reliance on Rule 903 of Regulation S under the Securities Act, by means of any directed selling efforts within the meaning of Rule 902(c) of Regulation S.  The Company, the Guarantors and their respective affiliates and all persons acting on their behalf (other than the Purchasers, as to whom no representation or warranty is made) have complied with and will comply with the offering restrictions requirements of Regulation S in connection with the offering of the Offered Securities outside the United States (assuming that the purchasers who buy the Offered 

Securities in the Exempt Resales to Reg S Investors are Reg S Investors) and, in connection therewith, the Preliminary Offering Circular and the Final Offering Circular contain or will contain the disclosure required by Rule 902(g)(2) under the Securities Act.  The Offered Securities offered and sold in reliance on Regulation S have been and will be offered and sold only in offshore transactions (assuming that the purchasers who buy the Offered Securities in the Exempt Resales to Reg S Investors are Reg S Investors).  The sale of the Offered Securities pursuant to Regulation S is not part of a plan or scheme to evade the registration provisions of the Securities Act.  

(mm)    Foreign Corrupt Practices Act and Anti-Money Laundering.  The Company, the Co-Issuers, the Guarantors and their respective subsidiaries have instituted and maintain policies designed to ensure continued compliance with each of the laws listed below; in addition, the Company, the Co-Issuers, the Guarantors and their respective subsidiaries, and to their knowledge, each of their officers, directors, affiliates, managers, agents, employees and representatives, have not violated (and will not violate as the result of this offering) the following laws: (a) anti-bribery laws, including but not limited to, any applicable law, rule, or regulation of any locality, including but not limited to any law, rule, or regulation promulgated to implement the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed December 17, 1997, including the U.S. Foreign Corrupt Practices Act of 1977 or any other law, rule or regulation of similar purpose and scope, (b) anti-money laundering laws, including but not limited to, applicable federal, state, international, foreign or other laws, regulations or government guidance regarding anti-money laundering, including, without limitation, Title 18 U.S. Code section 1956 and 1957, the Patriot Act, the Bank Secrecy Act, and international anti-money laundering principals or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering, of which the United States is a member and with which designation the United States representative to the group or organization continues to concur, all as amended, and any Executive order, directive, or regulation pursuant to the authority of any of the foregoing, or any orders or licenses issued thereunder or (c) laws and regulations imposing U.S. economic sanctions measures, including, but not limited to, the International Emergency Economic Powers Act, the Trading with the Enemy Act, the United Nations Participation Act, and the Syria Accountability and Lebanese Sovereignty Act, all as amended, and any Executive Order, directive, or regulation pursuant to the authority of any of the foregoing, including the regulations of the United States Treasury Department set forth under 31 CFR, Subtitle B, Chapter V, as amended, or any orders or licenses issued thereunder.

(nn)    OFAC.  None of the Company, the Co-Issuers, the Guarantors or, if applicable, their respective affiliates or any of their subsidiaries, directors, officers or employees derives more than 10% of their revenue in the aggregate with the governments of or any person or entity in or is organized under the laws of, or directly or indirectly owned or controlled by the governments of or a person in or organized under the laws of Cuba, Iran, Myanmar (Burma), North Korea, Sudan, Libya or Syria; none of the Company, the Co-Issuers, the Guarantors or, if applicable, their respective affiliates, subsidiaries, directors, officers, employees or agents, is, directly or indirectly, controlled by a person subject to any of the economic sanctions administered by the Swiss State Secretariat for Economic Affairs, the United States Department of Treasury's Office of Foreign Assets Control (“OFAC”), the United Nations, the European Union, HM Treasury and the Foreign and Commonwealth Office of the United Kingdom, the Monetary Authority of Singapore and/or the Hong Kong Monetary Authority (all such countries, persons and entities under the preceding clauses (other than the Company, the Co-Issuers, the Guarantors, their respective affiliates and any of their subsidiaries, directors, officers, employees or agents) collectively referred to as “Restricted Parties”).  The Company and the Co-Issuers will not use any proceeds received from the sale of the Offered Securities to fund any sales to, purchases from, operations or investments in, or any payments 

to or in favor of Restricted Parties.

(oo)    Distribution of Material.  The Company and the Co-Issuers have not distributed or, prior to the later to occur of (i) the Closing Date and (ii) completion of the distribution of the Offered Securities, will distribute any material in connection with the offering and sale of the Offered Securities other than the Preliminary Offering Circular, the Final Offering Circular or other material, if any, not prohibited by the Securities Act and the Financial Services and Markets Act 2000 of the United Kingdom (“FSMA”) (or regulations promulgated to the Securities Act or the FSMA) and approved by the Purchasers, such approval not to be unreasonably withheld or delayed.

Each of the Company, the Co-Issuers and the Guarantors acknowledge that the Purchasers and, for purposes of the opinions to be delivered to the Purchasers pursuant to Section 7 hereof, counsel for the Company, the Co-Issuers and the Guarantors and counsel for the Purchasers, will rely upon the accuracy and truth of the foregoing representations and hereby consent to such reliance.
3.Purchase, Sale and Delivery of Offered Securities.  On the basis of the representations, warranties and agreements and subject to the terms and conditions set forth herein, the Company and the Co-Issuers, jointly and severally, agree to issue to the several Purchasers, and the Designated Issuers (as defined below) agree to sell to the several Purchasers, and each of the Purchasers agrees, severally and not jointly, to purchase from the respective Designated Issuer (or the Company or one or more of the Co-Issuers pursuant to the last paragraph of this Section 3), at a purchase price of 96.000% of the principal amount thereof plus accrued interest from July 24, 2012 to the Closing Date (as hereinafter defined), the respective principal amounts of the Offered Securities set forth opposite the names of the several Purchasers in Schedule A hereto.  Each of the Purchasers agrees that the Company may designate the principal amount of Offered Securities to be sold by the Company and/or one or more of the Co-Issuers (each, a “Designated Issuer”) to the Purchasers at the Company's sole discretion.

The Designated Issuers will deliver against payment of the purchase price the Offered Securities to be offered and sold by the Purchasers in reliance on Regulation S (the “Regulation S Securities”) in the form of one or more permanent global securities in registered form without interest coupons (the “Regulation S Global Securities”) which will be deposited with the Trustee as custodian for The Depository Trust Company (“DTC”) for the respective accounts of the DTC participants for the operator of the Euroclear System (“Euroclear”), and Clearstream Banking, société anonyme (“Clearstream, Luxembourg”) and registered in the name of Cede & Co., as nominee for DTC. The Designated Issuers will deliver against payment of the purchase price the Offered Securities to be purchased by each Purchaser hereunder and to be offered and sold by each Purchaser in reliance on Rule 144A (the “144A Securities”) in the form of one permanent global security in definitive form without interest coupons (the “Restricted Global Securities”) deposited with the Trustee as custodian for DTC and registered in the name of Cede & Co., as nominee for DTC. The Regulation S Global Securities and the Restricted Global Securities shall be assigned separate CUSIP numbers. The Restricted Global Securities shall include the legend regarding restrictions on transfer set forth under “Transfer Restrictions” in the Final Offering Circular.  Until the termination of the distribution compliance period (as defined in Regulation S) with respect to the offering of the Offered Securities, interests in the Regulation S Global Securities may only be held by the DTC participants for Euroclear and Clearstream, Luxembourg. Interests in any permanent global securities will be held only in book-entry form through Euroclear, Clearstream, Luxembourg or DTC, as the case may be, except in the limited circumstances described in the Final Offering Circular.

Payment for the Regulation S Securities and the 144A Securities shall be made by the 

Purchasers in Federal (same day) funds by wire transfer to an account specified by the Company on behalf of the Designated Issuers at a bank acceptable to Credit Suisse at the office of Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, New York, at 9:00 A.M., New York time, on July 24, 2012 , or at such other time not later than seven full business days thereafter as Credit Suisse and the Company determine, such time being herein referred to as the “Closing Date”, against delivery to the Trustee as custodian for DTC of (i) the Regulation S Global Securities representing all of the Regulation S Securities for the respective accounts of the DTC participants for Euroclear and Clearstream, Luxembourg and (ii) the Restricted Global Securities representing all of the Offered 144A Securities. The Regulation S Global Securities and the Restricted Global Securities will be made available for checking at the above office of  Latham & Watkins at least 24 hours prior to the Closing Date.

To the extent any Designated Issuer fails to sell or deliver any Offered Securities to the Purchasers and perform the other obligations as required under this Agreement, each of the Company and the Co-Issuers agrees, jointly and severally, to sell and deliver the Offered Securities to the Purchasers and perform the other obligations of such Designated Issuer in fulfillment of such Designated Issuer's obligations under this Agreement.  The Company may make determinations, notifications and deliveries under this Section 3 on behalf of the Designated Issuers.

4.Representations by Purchasers; Resale by Purchasers.  Each of the Purchasers, severally and not jointly, represents, warrants and covenants to the Company, the Co-Issuers and the Guarantors as of the date hereof that:
(a)such Purchaser is an institutional “accredited investor” (as defined in Regulation D under the Securities Act) with such knowledge and experience in financial and business matters as are necessary in order to evaluate the merits and risks of an investment in the Offered Securities. 
(b)(i) in connection with the offering of the Offered Securities, it will solicit offers to buy the Offered Securities only from, and will offer to sell the Offered Securities (the “Exempt Resales”) only to persons whom the Purchasers reasonably believe to be “qualified institutional buyers” (“QIBs”), as defined in Rule 144A under the Securities Act and non-U.S. persons outside the United States in reliance upon Regulation S the Securities Act (each, a “Reg S Investor,” and, collectively with the QIBs, the “Eligible Purchasers”) and (ii) in the case of such Eligible Purchasers, such Offered Securities will not have been registered under the Securities Act and may be resold, pledged or otherwise transferred only (x)(I) to a person whom the seller reasonably believes is a QIB purchasing for its own account or for the account of a QIB for which such person is acting as fiduciary or agent, in a transaction meeting the requirements of Rule 144A under the Securities Act, (II) in an offshore transaction (as defined in Rule 902 under the Securities Act) meeting the requirements of Rule 904 under the Securities Act, (III) in a transaction meeting the requirements of Rule 144 under the Securities Act, (IV) to an institutional accredited investor that, prior to such transfer, furnishes the Trustee a signed letter containing certain representations and agreements relating to the registration of transfer of such Offered Securities (the form of which can be obtained from the Trustee) and, if such transfer is in respect of an aggregate principal amount of Offered Securities in excess of $250,000, an opinion of counsel acceptable to the Company that such transfer is in compliance with the Securities Act or (V) in accordance with another exemption from the registration requirements of the Securities Act (and based upon an opinion of counsel if the Company so requests), (y) to the Company or any of its subsidiaries, (z) pursuant to an effective registration statement under the Securities Act and, in each case, in accordance with any applicable securities laws of any state of the United States or any other applicable jurisdiction and (iii) acknowledges that they will, and each subsequent holder is required to, notify any purchaser of the security evidenced thereby of the resale restrictions set forth in (ii) above.

(c)such Purchaser is not acquiring the Offered Securities with a view to any distribution thereof that would violate the Securities Act or the securities laws of any state of the United States or any other applicable jurisdiction.
(d)at or prior to confirmation of a sale of Offered Securities by it to any distributor, dealer or person receiving a selling concession, fee or other remuneration during the 40-day distribution compliance period referred to in Rule 903(b)(2) under the Securities Act, it will send to such distributor, dealer or person receiving a selling concession, fee or other remuneration a confirmation or notice to substantially the following effect:

“THE SECURITIES COVERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED AND SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (I) AS PART OF YOUR DISTRIBUTION AT ANY TIME OR (II) OTHERWISE UNTIL 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OF THE SECURITIES AND THE CLOSING OF THE OFFERING, EXCEPT IN EITHER CASE IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT (OR RULE 144A OR TO ACCREDITED INSTITUTIONS IN TRANSACTIONS THAT ARE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT), AND IN CONNECTION WITH ANY SUBSEQUENT SALE BY YOU OF THE INITIAL NOTES COVERED HEREBY IN RELIANCE ON REGULATION S DURING THE PERIOD REFERRED TO ABOVE TO ANY DISTRIBUTOR, DEALER OR PERSON RECEIVING A SELLING CONCESSION, FEE OR OTHER REMUNERATION, YOU MUST DELIVER A NOTICE TO SUBSTANTIALLY THE FOREGOING EFFECT.  TERMS USED ABOVE HAVE THE MEANINGS ASSIGNED TO THEM IN REGULATION S.”
(e)the Offered Securities offered and sold by such Purchaser pursuant hereto in reliance on Regulation S have been and will be offered and sold only in offshore transactions (assuming that the purchasers who buy the Offered Securities in the Exempt Resales to Reg S Investors are Reg S Investors). 
(f)such Purchaser and its affiliates or any person acting on its or their behalf has not engaged or will not engage in any directed selling efforts within the meaning of Regulation S with respect to the Offered Securities thereof.
(g)the sale of Offered Securities offered and sold by such Purchaser pursuant hereto in reliance on Regulation S is not part of a plan or scheme to evade the registration provisions of the Securities Act.
(h)such Purchaser has not distributed nor, prior to the later to occur of (i) the Closing Date and (ii) completion of the distribution of the Offered Securities, will distribute any material in connection with the offering and sale of the Offered Securities other than the General Disclosure Package, the Final Offering Circular or other material, if any, not prohibited by the Securities Act and the FSMA (or regulations promulgated to the Securities Act or the FSMA).
(i)no form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) has been or will be used by such Purchaser or any of its representatives in connection with the offer and sale of any of the Offered Securities, including, but not limited to, (i) any advertisement, articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast over television or radio, (ii) or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.  Each Purchaser severally agrees, with respect to resales made in reliance on Rule 144A of any of the Offered Securities, to deliver either with the confirmation of such resale or otherwise prior to settlement of such resale a notice to the effect that the resale of such Offered Securities has been made in reliance 

upon the exemption from the registration requirements of the Securities Act provided by Rule 144A.
(j)in relation to each Member State of the European Economic Area that has implemented the Prospectus Directive (each, a “Relevant Member State”), each of the Purchasers severally represents and agrees that with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State (the “Relevant Implementation Date”), it has not made and will not make an offer of the Offered Securities to the public in that Relevant Member State other than:
(i)to any legal entity which is a qualified investor as defined in the Prospectus Directive;
(ii)to fewer than 100 or, if the Relevant Member State has implemented the relevant provision of the 2010 PD Amending Directive, 150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive), as permitted under the Prospective Directive, subject to obtaining the prior consent of the initial purchasers; or
(iii) in any other circumstances falling within Article 3(2) of the Prospectus Directive,

provided that no such offer of Offered Securities shall require the Company or any Purchaser to publish a prospectus pursuant to Article 3 of the Prospectus Directive.

For the purposes of this representation, the expression an “offer of Offered Securities to the public” in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the Offered Securities to be offered so as to enable an investor to decide to purchase or subscribe to the Offered Securities, as the same may be varied in that Relevant Member State by any measure implementing the Prospectus Directive in that Relevant Member State and the expression “Prospectus Directive” means Directive 2003/71/EC and includes any relevant implementing measure in each Relevant Member State.
(iv)(A)    it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of the Offered Securities in circumstances in which Section 21(1) of the FSMA does not apply to the Company or the Guarantors; and
(B)    it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Offered Securities in, from or otherwise involving the United Kingdom.

The Purchasers acknowledge that the Company, the Co-Issuers and the Guarantors, for purposes of the opinions to be delivered to the Purchasers pursuant to Section 7 hereof, counsel for the Company, the Co-Issuers and the Guarantors and counsel for the Purchasers will rely upon the accuracy and truth of the foregoing representations and hereby consent to such reliance.
5.Certain Agreements of the Company and each Guarantor.  As of the date hereof, the Company, the Co-Issuers and the Guarantors, jointly and severally, covenants and agrees with the Purchasers as follows:
(a)Amendments and Supplements to Offering Circulars.  The Company, the Co-Issuers and the Guarantors will promptly advise the Purchasers of any proposal to amend or supplement the Preliminary Offering Circular or Final Offering Circular and will not effect such amendment or supplementation at any time prior to the completion of the resale of the Offered Securities by the Purchasers (as determined by the Purchasers) without the Purchasers' consent.  If, at any time prior to the completion of the resale of the Offered Securities by the Purchasers, there occurs an event or development as a result of which, in the reasonable judgment of the Company or 

the Purchasers or in the reasonable judgment of counsel for the Company or counsel for the Purchasers, any document included in the Preliminary Offering Circular or Final Offering Circular, the General Disclosure Package or any Supplemental Marketing Material, if republished immediately following such event or development, included or would include an untrue statement of a material fact or omitted or would omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary or advisable, in the reasonable judgment of the Company or the Purchasers or in the reasonable judgment of counsel for the Company or counsel for the Purchasers, to amend or supplement the Preliminary Offering Circular, the General Disclosure Package or the Final Offering Circular to comply with applicable law, the Company, the Co-Issuers and the Guarantors promptly will notify the Purchasers of such event and use their commercially reasonable efforts to promptly prepare and furnish, at its own expense, to the Purchasers and the dealers and to any other dealers at the reasonable request of the Purchasers, an amendment or supplement which will correct such statement or omission, or reasonably assure that correct the Preliminary Offering Circular, the General Disclosure Package or the Final Offering Circular will comply with applicable law.  Neither the Purchasers' consent to, nor the Purchasers' delivery to offerees or investors of, any such amendment or supplement shall constitute a waiver of any of the conditions set forth in Section 7. 
(b)Furnishing of Offering Circulars.  The Company, the Co-Issuers and the Guarantors will furnish the Purchasers and those persons identified by the Purchasers to the Company, without charge, as many copies of the Preliminary Offering Circular, each other document comprising a part of the General Disclosure Package, the Final Offering Circular, any amendments and supplements to such documents and each item of Supplemental Marketing Material, in each case as soon as available and in such quantities as the Purchasers may reasonably request.  To the extent such materials are required to be provided to holders under the Indenture, at any time when the Company is not subject to Section 13 or 15(d), the Company, the Co-Issuers and the Guarantors will promptly furnish or cause to be furnished to the Purchasers and, upon request of holders and prospective purchasers of the Offered Securities, to such holders and purchasers, copies of the information required to be delivered to holders and prospective purchasers of the Offered Securities pursuant to Rule 144A(d)(4) (or any successor provision thereto) in order to permit compliance with Rule 144A in connection with resales by such holders of the Offered Securities.  The Company will pay the reasonable expenses of printing and distributing to the Purchasers all such documents.  The Company, the Co-Issuers and the Guarantors consent to the use of the Preliminary Offering Circular, the General Disclosure Package and the Final Offering Circular, and any amendments and supplements thereto required pursuant hereto, by the Purchasers in connection with Exempt Resales.
(c)Blue Sky Qualifications.  The Company, the Co-Issuers and the Guarantors will use commercially reasonable efforts to cooperate with the Purchasers and counsel for the Purchasers in connection with the qualification or registration of the Offered Securities under the securities or Blue Sky laws of such jurisdictions as the Purchasers may reasonably request and to continue such qualification in effect so long as required for the Exempt Resales; provided, however, that neither the Company nor the Guarantors shall be required in connection therewith to register or qualify as a foreign corporation where it is not now so qualified or to take any action that would subject it to service of process in suits or taxation, in any jurisdiction where it is not now so subject.
(d)Reporting Requirements.  To the extent such materials are required to be provided to holders under the Indenture, during a period of three years following the Closing Date, for so long as any Offered Securities remain outstanding, if not otherwise available on the Commission's Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”), the Company will furnish to the Purchasers (i) all publicly available reports or other information that the Company or the Guarantors mail or otherwise make available to their stockholders, (ii) all reports, financial statements and proxy or information statements filed by the Company with the Commission or any 

national securities exchange and (iii) from time to time, such other information concerning the Company, the Co-Issuers and the Guarantors as the Purchasers may reasonably request.
(e)Transfer Restrictions.  During the period of one year after the Closing Date, the Company will, upon request, furnish to the Purchasers and any holder of Offered Securities a copy of the restrictions on transfer applicable to the Offered Securities.
(f)Resales by Affiliates.  During the period of one year after the Closing Date, unless permitted under Rule 144, the Company will not, and will not permit any of its affiliates (as defined in Rule 144) to, resell any of the Offered Securities that have been reacquired by any of them, except in a tender offer by the Company the result of which is the cancellation of the Offered Securities so tendered.
(g)Investment Company.  During the period of two years after the Closing Date, neither the Company nor any Guarantor will be or become, an open-end investment company, unit investment trust or face-amount certificate company that is or is required to be registered under Section 8 of the Investment Company Act.
(h)Payment of Expenses.  The Company, the Co-Issuers and the Guarantors will pay all reasonable costs, expenses, fees and taxes incidental to the performance of their respective obligations under this Agreement and the Indenture, including but not limited to (i) the reasonable fees and expenses of the Trustee and its professional advisers and all collateral agents; (ii) the reasonable expenses in connection with the execution, issue, authentication, packaging and initial delivery of the Offered Securities and, as applicable, the preparation and printing of this Agreement, the Offered Securities, the Indenture, the Preliminary Offering Circular, any other documents comprising any part of the General Disclosure Package, the Final Offering Circular, all amendments and supplements thereto, each item of Supplemental Marketing Material and any other document relating to the issuance, offer, sale and delivery of the Offered Securities; (iii) the cost of any advertising approved by the Company in connection with the issue of the Offered Securities; (iv) any expenses (including reasonable fees and disbursements of counsel to the Purchasers) incurred in connection with qualification of the Offered Securities for sale under the laws of such jurisdictions in the United States and Canada as the Purchasers designate and the preparation and printing of memoranda relating thereto; (v) any fees charged by investment rating agencies for the rating of the Offered Securities; (vi) expenses incurred in distributing the Preliminary Offering Circular, any other documents comprising any part of the General Disclosure Package, the Final Offering Circular (including any amendments and supplements thereto) and any Supplemental Marketing Material to the Purchasers; (vii) the filing fees and expenses associated with the assignment, creation and perfection of security interests, including, without limitation, pursuant to the Collateral Documents and the related UCC financing statements; (viii) the fees and expenses of Latham & Watkins LLP and local counsel fees and expenses incurred in connection with the creation and negotiation of the security agreements, Collateral Documents (including the form of the ABL Intercreditor Agreement and the Collateral Trust Agreement) and the related UCC financing statements, in an amount not to exceed $450,000; and (ix) the fees and expenses of the Collateral Trustee and any agent thereof in connection with the Collateral Documents, the financing statements and the Collateral securing the Offered Securities.  The Company, the Co-Issuers and the Guarantors, on the one hand, and the Purchasers on the other hand, will pay their own respective costs and expenses relating to investor presentations on any “road show” in connection with the offering and sale of the Offered Securities; provided that the cost of any aircraft chartered for such purpose will be borne 50% by the Company, the Co-Issuers and the Guarantors and 50% by the Purchasers, regardless of whether the aircraft was chartered by the Co-Issuers or the Purchasers.
(i)Use of Proceeds.  The Company will use the net proceeds from the sale of the Offered Securities substantially in the manner described in the Final Offering Circular and General Disclosure Package under the caption “Use of Proceeds” and, except as disclosed in the General 

Disclosure Package and the Final Offering Circular, the Company does not intend to use any of the proceeds from the sale of the Offered Securities hereunder to repay any outstanding debt owed to any affiliate of any Purchaser.
(j)Absence of Manipulation.  Until Credit Suisse shall have notified the Company and the other Purchasers of the completion of the resale of the Offered Securities, such notification not to be unreasonably delayed, neither the Company, the Guarantors nor any of their affiliates will take, directly or indirectly, any action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Offered Securities  Except as permitted in writing by the Purchasers, none of the Company nor any Guarantor will distribute any (i) preliminary offering circular, including, without limitation, the Preliminary Offering Circular, (ii) offering circular, including, without limitation, the Final Offering Circular, or (iii) other offering material in connection with the offering and sale of the Offered Securities.
(k)Conditions Precedent.  The Company and each Guarantor will use commercially reasonable efforts to do and perform all things required or necessary to be done and performed under this Agreement prior to or after the Closing Date and to satisfy all conditions precedent on its part to the delivery of the Offered Securities. 
(l)Restriction on Sale of Securities.  For a period of 60 days after the date hereof, neither the Company nor any Guarantor will, directly or indirectly, take any of the following actions with respect to any United States dollar-denominated secured debt securities issued or guaranteed by the Company or such Guarantor and having a maturity of more than one year from the date of issue or any securities convertible into or exchangeable or exercisable for any of its securities (“Lock-Up Securities”):  (i) offer, sell, issue, contract to sell, pledge or otherwise dispose of Lock-Up Securities, (ii) offer, sell, issue, contract to sell, contract to purchase or grant any option, right or warrant to purchase Lock-Up Securities, (iii) enter into any swap, hedge or any other agreement that transfers, in whole or in part, the economic consequences of ownership of Lock-Up Securities, (iv) establish or increase a put equivalent position or liquidate or decrease a call equivalent position in Lock-Up Securities within the meaning of Section 16 of the Exchange Act or (v) file with the Commission a registration statement under the Securities Act relating to Lock-Up Securities or publicly disclose the intention to take any such action, without the prior written consent of Credit Suisse except issuances of Lock-Up Securities pursuant to the exercise of warrants or options, in each case outstanding on the date hereof, grants of employee stock options pursuant to the terms of a plan in effect on the date hereof, issuances of Lock-Up Securities pursuant to the exercise of such options or issuances of Lock-Up Securities pursuant to the Company's or such Guarantor's dividend reinvestment plan.  Neither the Company nor any Guarantor will at any time directly or indirectly, take any action referred to in clauses (i) through (v) above with respect to any securities under circumstances where such offer, sale, pledge, contract or disposition would cause the exemption afforded by Section 4(2) of the Securities Act or the safe harbor of Regulation S thereunder to cease to be applicable to the offer and sale of the Offered Securities.

Credit Suisse may, in its sole discretion, waive in writing the performance by the Company, the Co-Issuers or the Guarantors of any one or more of the foregoing covenants or extend the time for their performance.
6.Free Writing Communications.  Issuer Free Writing Communications.  The Company and each Guarantor each represent and agree that, unless it obtains the prior consent of Credit Suisse, and each Purchaser represents and agrees that, unless it obtains the prior consent of the Company and Credit Suisse, it has not made and will not make any offer relating to the Offered Securities that would constitute an Issuer Free Writing Communication.

(b)    Term Sheets.  The Company consents to the use by any Purchaser of a Free Writing Communication that (i) contains only (A) information describing the preliminary terms of the Offered Securities or their offering or (B) information that describes the final terms of the Offered Securities or their offering and that is included in or is subsequently included in the Final Offering Circular, including by means of a pricing term sheet in the form of Schedule B hereto, or (ii) does not contain any material information about the Company or any Guarantor or their securities that was provided by or on behalf of the Company or any Guarantor, it being understood and agreed that the Company and each Guarantor shall not be responsible to any Purchaser for liability arising from any inaccuracy in such Free Writing Communications referred to in clause (i) or (ii) as compared with the information in the Preliminary Offering Circular, the Final Offering Circular or the General Disclosure Package.
7.Conditions of the Obligations of the Purchasers.  The obligations of the several Purchasers to purchase and pay for the Offered Securities, as provided herein, shall be subject to the satisfaction of the following conditions:
(a)Representations and Warranties.  All of the representations and warranties of the Company, the Co-Issuers and the Guarantors contained in this Agreement shall be true and correct on the date hereof and on the Closing Date, as applicable, with the same force and effect as if made on and as of the date hereof and the Closing Date, as applicable.  The Company, the Co-Issuers and the Guarantors shall have performed or complied in all material respects with all of the agreements contained herein and required to be performed or complied with by it on or prior to the Closing Date.
(b)Final Offering Circular.  The Final Offering Circular shall have been printed and copies distributed to the Purchasers not later than 10 A.M., New York City time, on the day that is two business days following the date of this Agreement or at such later date and time as to which the Purchasers may agree. 
(c)Stop Orders.  No stop order suspending the qualification or exemption from qualification of the Offered Securities in any jurisdiction referred to in Section 2(c) shall have been issued and no proceeding for that purpose shall have been commenced or shall be pending or threatened.
(d)Litigation; Conflicting Law.  No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental agency that would, as of the Closing Date, prevent the issuance of either series of the Offered Securities or the Guarantees; no action, suit, investigation or proceeding shall have been commenced and be pending against or affecting or, to the knowledge of the Company, threatened against, the Company, the Guarantors or any of their respective subsidiaries, before any court or arbitrator or any governmental body, agency or authority or administrative agency that, if adversely determined, would reasonably be expected to result in a Material Adverse Effect; and no stop order shall have been issued preventing the use of the Preliminary Offering Circular, the General Disclosure Package, any Free Writing Communication, the Final Offering Circular or any amendment or supplement thereto, or that would reasonably be expected to have a Material Adverse Effect.
(e)No Material Adverse Change.  Since the respective dates as of which information is given in the General Disclosure Package, (i) there shall not have occurred any change, or any development or event involving a prospective change, in the condition (financial or otherwise), results of operations, business or properties of the Company, the Guarantors and their respective subsidiaries taken as a whole which, in the judgment of the Purchasers, is material and adverse and makes it impractical or inadvisable to market the Offered Securities, (ii) there shall not have been any material adverse change, or any development that is reasonably likely to result in a material adverse change, in the capital stock or the long‐term debt of the Company, or material increase in the short-term debt of the Company, or any downgrading in the rating of any debt securities of the Company by any “nationally recognized statistical rating organization” (as defined for purposes of 

Rule 436(g)), or any public announcement that any such organization has under surveillance or review its rating of any debt securities of the Company (other than an announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of such rating), or any announcement of placement on negative outlook, of the Company from that set forth in the General Disclosure Package and the Final Offering Circular, (iii) no dividend or distribution of any kind shall have been declared, paid or made by the Company or any of its subsidiaries on any class of their respective capital stock or membership interests, (iv) no change in U.S. or international financial, political or economic conditions or currency exchange rates or exchange controls the effect of which is such as to make it, in the judgment of the Purchasers, impractical to market or to enforce contracts for the sale of the Offered Securities, whether in the primary market or in respect of dealings in the secondary market, (v) there shall not have occurred any suspension or material limitation of trading in securities generally on the New York Stock Exchange, or any setting of minimum or maximum prices for trading on such exchange nor any suspension of trading of any securities of the Company or any Guarantor on any exchange or in the over-the-counter market, nor any banking moratorium declared by any U.S. federal or New York authorities, (vi) there shall not have occurred any major disruption of settlements of securities, payment, or clearance services in the United States or any other country where such securities are listed, (vii) there shall not have occurred any attack on, outbreak or escalation of hostilities or act of terrorism involving the United States, any declaration of war by Congress or any other national or international calamity or emergency if, in the judgment of the Purchasers, the effect of any such attack, outbreak, escalation, act, declaration, calamity or emergency is such as to make it in the judgment of the Purchasers impractical or inadvisable to market the Offered Securities or to enforce contracts for the sale of the Offered Securities and (viii) neither the Company, the Guarantors nor any of their respective subsidiaries, shall have incurred any liabilities or obligations, direct or contingent, that are material, individually or in the aggregate, to the Company and its subsidiaries taken as a whole, and that are required to be disclosed on a balance sheet or notes thereto in accordance with generally accepted accounting principles in the United States and are not disclosed on the latest balance sheet or notes thereto included in the General Disclosure Package and Final Offering Circular, nor entered into any transaction not in the ordinary course of business, in each case, other than as provided under the Operative Documents and as disclosed in the General Disclosure Package and the Final Offering Circular.  Since the date hereof and since the dates as of which information is given in the Preliminary Offering Circular, there has not occurred any Material Adverse Effect, or any development that is reasonably likely to result in a Material Adverse Effect.  
(f)Officers' Certificate.  The Purchasers shall have received officers' certificates, dated the Closing Date, signed on behalf of the Company and each Guarantor, by an executive officer and a principal financial or accounting officer thereof, in form and substance reasonably satisfactory to the Purchasers and counsel for the Purchasers, confirming, as of the Closing Date, and that the matters set forth in paragraphs (a), (c), (d) and (e) of this Section 7 and that, as of the Closing Date, the obligations of the Company and each Guarantor to be performed hereunder on or prior thereto have been duly performed in all material respects.
(g)Chief Financial Officer's Certificate.       The Purchasers shall have received from the principal financial or accounting officer of the Company, (A) a certificate, dated the date hereof, in form and substance reasonably satisfactory to the Purchasers and its counsel, with respect to certain financial information contained in the General Disclosure Package, and (B) a certificate, dated the Closing Date, in form and substance reasonably satisfactory to the Purchasers and its counsel, to the effect that the principal financial or accounting officer reaffirms the statements made in its letter furnished pursuant to clause (A) with respect to certain financial information contained in the General Disclosure Package and the Final Offering Circular.
(h)Opinion of Counsel for Company.  The Purchasers shall have received on the Closing Date an opinion and negative assurance letter, each dated the Closing Date and each in form 

and substance reasonably satisfactory to the Purchasers and counsel for the Purchasers, of Paul, Weiss, Rifkind, Wharton & Garrison, LLP counsel for the Company, substantially to the effect set forth in Exhibit A and Exhibit B hereto.
(i)Opinion of Local Counsel.  The Purchasers shall have received on the Closing Date an opinion, dated the Closing Date, in form and substance reasonably satisfactory to the Purchasers and counsel for the Purchasers, of (i) Troutman Sanders LLP, Georgia counsel for the Company, and (ii) Schwabe, Williamson & Wyatt, P.C., Oregon counsel for the Company, substantially to the effect set forth in Exhibit C1 and Exhibit C2 hereto.
(j)Opinion of General Counsel for Company.  The Purchasers shall have received on the Closing Date an opinion, dated the Closing Date, in form and substance reasonably satisfactory to the Purchasers and counsel for the Purchasers, of the General Counsel of the Company, substantially to the effect set forth in Exhibit D hereto.
(k)Accountants' Comfort Letter for Company.  At the time this Agreement is executed and at the Closing Date, the Purchasers shall have received from Ernst & Young LLP, independent auditors with respect to the Company, dated as of the date of this Agreement and as of the Closing Date, customary comfort letters addressed to the Purchasers and in form and substance reasonably satisfactory to the Purchasers and counsel for the Purchasers with respect to the financial statements and certain financial information contained in the Preliminary Offering Circular and the Final Offering Circular.
(l)Opinion of Counsel for Purchasers.  The Purchasers shall have received, on the Closing Date, an opinion, dated the Closing Date, in form and substance reasonably satisfactory to the Purchasers, of Latham & Watkins LLP, counsel for the Purchasers, covering such matters as are customarily covered in such opinions.  
(m)Indenture.  The Company, the Co-Issuers, the Guarantors and the Trustee shall have entered into the Indenture, and the Purchasers shall have received counterparts, conformed as executed, thereof.
(n)Collateral Documents.  At the Closing Date, the Security Agreement, the Collateral Trust Agreement and the IP Security Agreements shall have been executed and delivered by all the parties thereto.
(o)Credit Facility.  The Company on behalf of the Designated Issuers shall have delivered to the Purchasers applicable instructions to distribute the net proceeds of the Offered Securities required by Sections 4A and 4B of the Amendment Agreement directly to the account of the administrative agent under the Amended Credit Agreement in connection with the transactions contemplated by the Amendment Agreement on the terms described in the General Disclosure Package and the Final Offering Circular. 
(p)Collateral.  The Collateral Trustee shall have received (with a copy for the Purchasers) on the Closing Date:
(i)appropriately completed copies, which have been duly authorized for filing by the appropriate person, of UCC-1 financing statements or equivalent filings naming the Company and each Guarantor as a debtor and the Collateral Trustee as the secured party, or other similar instruments or documents to be filed under the UCC of all jurisdictions as may be necessary or, in the reasonable opinion of the Collateral Trustee and its counsel, desirable to perfect the security interests of the Collateral Trustee in any Collateral held by the Company or the Guarantors that can be perfected by filing of UCC-1 financing statements (other than fixture filings);
(ii)appropriately completed copies, which have been duly authorized for filing by the appropriate person, of Form UCC‐3 termination statements or equivalent filings, if any, necessary to release all liens (other than the Permitted Liens, as defined in the Final Offering Circular under the caption “Description of Notes”) of any person in any Collateral 

held by the Company or the Guarantors;
(iii)certified copies of UCC Requests for Information or Copies (Form UCC‐11), or a similar search report certified by a party acceptable to the Trustee, dated a date reasonably near to the Closing Date, listing all effective financing statements which name the Company or any Guarantor (under its present name and any previous names) as the debtor, together with copies of such financing statements (none of which shall cover any collateral described in any Collateral Document, other than such financing statements that evidence Permitted Liens);
(iv)fully executed IP Security Agreements, in proper form for filing or recording the U.S. Patent and Trademark Office and the U.S. Copyright Office, as applicable; and
(v)such other approvals, opinions, or documents with respect to any Collateral held by the Company or any of the Guarantors as the Collateral Trustee may reasonably request in form and substance reasonably satisfactory to the Collateral Trustee. 

The Company, the Co-Issuers and the Guarantors will furnish the Purchasers with such conformed copies of such opinions, certificates, letters and documents as the Purchasers reasonably request.
8.Indemnification and Contribution.  
(a)Indemnification of Purchasers.  The Company, the Co-Issuers and the Guarantors (as of the Closing Date) will, jointly and severally, indemnify and hold harmless each Purchaser, its officers, employees, agents, partners, members, directors and its affiliates and each person, if any, who controls such Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an “Indemnified Party”), against any and all losses, claims, damages or liabilities, joint or several, to which such Indemnified Party may become subject, under the Securities Act, the Exchange Act, other Federal or state statutory law or regulation or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Supplemental Term Sheet, the Preliminary Offering Circular or the Final Offering Circular, in each case as amended or supplemented, or any Issuer Free Writing Communication (including without limitation any Supplemental Marketing Material), the General Disclosure Package or the Exchange Act Reports (with respect to the portions of such Exchange Act Reports that are incorporated by reference into the Preliminary Offering Circular or the Final Offering Circular or any Supplemental Marketing Material), or arise out of or are based upon the omission or alleged omission of a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and will reimburse each Indemnified Party for any reasonable and documented legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating, preparing or defending against any loss, claim, damage, liability, action, litigation, investigation or proceeding whatsoever (whether or not such Indemnified Party is a party thereto) whether threatened or commenced and in connection with the enforcement of this provision with respect to any of the above as such expenses are incurred; provided, however, that the Company, the Co-Issuers and the Guarantors will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission from any of such documents in reliance upon and in conformity with written information furnished to the Company by any Purchaser through Credit Suisse specifically for use therein, it being understood and agreed that the only such information consists of the information described as such in subsection (b) below.
(b)Indemnification of Company.  Each Purchaser will severally and not jointly indemnify and hold harmless each of the Company, the Co-Issuers and the Guarantors (as of the 

Closing Date), each of their respective directors and each of their respective officers and each person, if any, who controls the Company, such Co-Issuer or such Guarantor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Purchaser Indemnified Party”), against any losses, claims, damages or liabilities to which such Purchaser Indemnified Party may become subject, under the Securities Act, the Exchange Act, other Federal or state statutory law or regulation or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Supplemental Term Sheet, the Preliminary Offering Circular or the Final Offering Circular, in each case as amended or supplemented, any Issuer Free Writing Communication (including without limitation any Supplemental Marketing Material) or the General Disclosure Package or arise out of or are based upon the omission or the alleged omission of a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by such Purchaser through the Purchasers specifically for use therein, and will reimburse any reasonable and documented legal or other expenses reasonably incurred by such Purchaser Indemnified Party in connection with investigating, preparing or defending against any such loss, claim, damage, liability, action, litigation, investigation or proceeding whatsoever (whether or not such Purchaser Indemnified Party is a party thereto) whether threatened or commenced based upon any such untrue statement or omission, or any such alleged untrue statement or omission as such expenses are incurred, it being understood and agreed that the only such information furnished by any Purchaser consists of the following information in the Preliminary and Final Offering Circular furnished on behalf of each Purchaser: under the caption “Plan of Distribution”, the second sentence of paragraph 16, provided, however, that the Purchasers shall not be liable for any losses, claims, damages or liabilities arising out of or based upon the Company's, any Co-Issuer's or any Guarantor's failure to perform its obligations under Section 5(a) of this Agreement.
(c)Actions against Parties; Notification.  Promptly after receipt by an indemnified party under this Section of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under subsection (a) or (b) above, notify the indemnifying party of the commencement thereof; but the failure to notify the indemnifying party shall not relieve it from any liability that it may have under subsection (a) or (b) above except to the extent that it has been materially prejudiced by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under subsection (a) or (b) above.  In case any such action is brought against any indemnified party and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation.  No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement includes (i) an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action and (ii) does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any indemnified party.  If at any time an indemnified party shall have requested an indemnifying 

party to reimburse the indemnified party for fees and expenses of counsel in accordance with the provisions hereof, such indemnifying party shall be liable for any settlement of the nature contemplated by Section 8(a) effected without its written consent only if (i) such settlement is entered into in good faith by the indemnified party more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.
(d)Contribution.  If the indemnification provided for in this Section is unavailable or insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the Co-Issuers and the Guarantors on the one hand and the Purchasers on the other from the offering of the Offered Securities, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, the Co-Issuers and the Guarantors on the one hand and the Purchasers on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities as well as any other relevant equitable considerations.  The relative benefits received by the Company, the Co-Issuers and the Guarantors on the one hand and the Purchasers on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Offered Securities (before deducting expenses) received by the Company bear to the total discounts and commissions with respect to the Offered Securities received by the Purchasers from the Company under this Agreement.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company, the Co-Issuers and the Guarantors or the Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this subsection (d).  Notwithstanding the provisions of this subsection (d), no Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Offered Securities purchased by it were resold exceeds the amount of any damages which such Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  The Purchasers' obligations in this subsection (d) to contribute are several in proportion to their respective purchase obligations and not joint.  The Company, the Guarantors and the Purchasers agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this subsection (d).
9.Default of Purchasers.  If any Purchaser or Purchasers default in their obligations to purchase Offered Securities hereunder and the aggregate principal amount of the Offered Securities that such defaulting Purchaser or Purchasers agreed but failed to purchase does not exceed 10% of the total principal amount of the Offered Securities, Credit Suisse may make arrangements satisfactory to the Company for the purchase of such Offered Securities by other persons, including any of the Purchasers, but if no such arrangements are made by the Closing Date, the non-defaulting Purchasers shall be obligated severally, in proportion to their respective commitments hereunder, to purchase the Offered Securities that such defaulting 

Purchasers agreed but failed to purchase.  If any Purchaser or Purchasers so default and the aggregate principal amount of the Offered Securities with respect to which such default occur exceeds 10% of the total principal amount of the Offered Securities and arrangements satisfactory to Credit Suisse and the Company for the purchase of the Offered Securities by other persons are not made within 36 hours after such default, this Agreement will terminate without liability on the part of any non-defaulting Purchaser or the Company, except as provided in Section 10.  As used in this Agreement, the term “Purchaser” includes any person substituted for a Purchaser under this Section.  Nothing herein will relieve a defaulting Purchaser from liability for its default.
10.Survival of Certain Representations and Obligations.  The respective indemnities, agreements, representations, warranties and other statements of the Company, the Guarantors or their respective officers and of the several Purchasers set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation, or statement as to the results thereof, made by or on behalf of any Purchaser, the Company, the Guarantors or any of their respective purchasers, officers or directors or any controlling person, and will survive delivery of and payment for the Offered Securities.  If for any reason the purchase of any series of the Offered Securities by the Purchasers is not consummated, the Company, the Co-Issuers and the Guarantors shall remain responsible for the expenses to be paid or reimbursed by it pursuant to Section 5 and the respective obligations of the Company, the Guarantors and the Purchasers pursuant to Section 8 shall remain in effect.  If the purchase of the Offered Securities by the Purchasers is not consummated for any reason other than solely because of the termination of this Agreement pursuant to Section 9 or the occurrence of any event specified in clause (iv), (v) (other than a halt in trading of any securities of the Company) or (viii) of Section 7(e), the Company  and the Guarantors will reimburse the Purchasers for all reasonable and documented out-of-pocket expenses (including fees and disbursements of counsel) reasonably incurred by them in connection with the offering of the Offered Securities.
11.Notices.  All communications hereunder will be in writing and, if sent to the Purchasers will be mailed, delivered or telegraphed and confirmed to the Purchasers c/o Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, N.Y. 10010-3629, Attention:  LCD-IBD, with a copy to Latham & Watkins LLP, 885 Third Avenue, New York, New York 10022, Attention: Peter Labonski, or, if sent to the Company or the Guarantors, will be mailed, delivered or telegraphed and confirmed to it at Harland Clarke Holdings Corp., 10931 Laureate Drive, San Antonio, Texas 78249, Attention: Chief Financial Officer; with a copy to Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, New York 10019, Attention:  Lawrence G. Wee, provided, however, that any notice to a Purchaser pursuant to Section 8 will be mailed, delivered or telegraphed and confirmed to such Purchaser.
12.Successors.  This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the controlling persons referred to in Section 8, and no other person will have any right or obligation hereunder, except that holders of Offered Securities shall be entitled to enforce the agreements for their benefit contained in Section 5(b) hereof against the Company as if such holders were parties thereto.
13.Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same Agreement.
14.Absence of Fiduciary Relationship.  The Company, the Co-Issuers and the Guarantors acknowledge and agree that:
(a)No Other Relationship.  The Purchasers have been retained solely to act as initial purchasers in connection with the initial purchase, offering and resale of the Offered Securities and that no fiduciary, advisory or agency relationship between the Company or the Guarantors and the Purchasers has been created in respect of any of the transactions contemplated by this Agreement or the Preliminary Offering Circular or Final Offering Circular, irrespective of whether the Purchasers have advised or is advising the Company or the Guarantors on other matters; 
(b)Arm's-Length Negotiations.  The purchase price of the Offered Securities set 

forth in this Agreement was established by the Company, the Co-Issuers and the Guarantors following discussions and arms-length negotiations with the Purchasers and the Company, the Co-Issuers and the Guarantors are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the transactions contemplated by this Agreement;
(c)Absence of Obligation to Disclose.  The Company has been and the Guarantors have been advised that the Purchasers and their affiliates are engaged in a broad range of transactions which may involve interests that differ from those of the Company or the Guarantors and that the Purchasers have no obligation to disclose such interests and transactions to Company or the Guarantors by virtue of any fiduciary, advisory or agency relationship; and
(d)Waiver.  The Company, the Co-Issuers and the Guarantors waive, to the fullest extent permitted by law, any claims it may have against the Purchasers for breach of fiduciary duty or alleged breach of fiduciary duty and agree that the Representative shall have no liability (whether direct or indirect) to the Company or the Guarantors in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including stockholders, employees or creditors of the Company or the Guarantors.
15.Applicable Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

The Company, the Co-Issuers and the Guarantors hereby submit to the non-exclusive jurisdiction of the Federal and state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.  The Company, the Co-Issuers and the Guarantors irrevocably and unconditionally waive any objection to the laying of venue of any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby in Federal and state courts in the Borough of Manhattan in The City of New York and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit or proceeding in any such court has been brought in an inconvenient forum.

If the foregoing is in accordance with the Purchasers' understanding of our agreement, kindly sign and return to us one of the counterparts hereof, whereupon it will become a binding agreement among the Company, the Co-Issuers and the Guarantors and the several Purchasers in accordance with its terms.

[Signature Page Follows]

    

    

Very truly yours,

Harland Clarke Holdings Corp., as Issuer

By:..........................................................
Name:
Title:

Harland Clarke Corp., as Co-Issuer and Guarantor

By: .............................................
Name:
Title:

Harland Financial Solutions, Inc., as Co-Issuer and Guarantor

By: .............................................
Name:
Title:

Scantron Corporation, as Co-Issuer and Guarantor

By: .............................................
Name:
Title:

Checks in the Mail, Inc., as Co-Issuer and Guarantor

By: .............................................
Name:
Title:

New Faneuil, Inc., as Guarantor

By: .............................................

Name:
Title:

Faneuil, Inc., as Guarantor

By: .............................................
Name:
Title:

Faneuil, Virginia LLC, as Guarantor

By: .............................................
Name:
Title:

Faneuil Toll Operations LLC, as Guarantor

By: .............................................
Name:
Title:

Original Research II LLC, as Guarantor

By: .............................................
Name:
Title:

Harland Financial Solutions India, LLC, as Guarantor

By: .............................................
Name:
Title:

HFS Research & Development, Inc., as Guarantor

By: .............................................

Name:
Title:

HFS Scantron Holdings Corp, as Guarantor

By: .............................................
Name:
Title:

John H. Harland Company of Puerto Rico, as Guarantor

By: .............................................
Name:
Title: 

The foregoing Purchase Agreement
     is hereby confirmed and accepted
     as of the date first above written.

Credit Suisse Securities (USA) LLC

By: .............................................
Name:
Title:

Citigroup Global Markets Inc.

By: .............................................
Name:
Title:

Merrill Lynch, Pierce, Fenner & Smith 
                                Incorporated

By: .............................................
Name:
Title:

Deutsche Bank Securities Inc.

By: .............................................
Name:
Title:
By: .............................................
Name:
Title:

Jefferies & Company, Inc.

By: .............................................
Name:
Title:

UBS Securities LLC

By: .............................................
Name:
Title:

By: .............................................
Name:
Title:

Natixis Securities Americas LLC

By: .............................................
Name:
Title:

By: .............................................
Name:
Title:

Annex I
Co-Issuers
Harland Clarke Corp.
Harland Financial Solutions, Inc.
Scantron Corporation
Checks in the Mail, Inc.

Annex II
Guarantors

Checks in the Mail, Inc.
New Faneuil, Inc.
Faneuil, Inc.
Faneuil Virginia LLC
Faneuil Toll Operations LLC
Original Research II LLC
Harland Clarke Corp.
Harland Financial Solutions, Inc.
Harland Financial Solutions India, LLC 
HFS Research & Development, Inc.
HFS Scantron Holdings Corp. 
John H. Harland Company of Puerto Rico
Scantron Corporation

Annex III
Subsidiaries
Harland Clarke Corp. 
Checks In the Mail, Inc. 
HFS Scantron Holdings Corp. 
Scantron Corporation 
Harland Financial Solutions, Inc. 
HFS Research & Development, Inc. 
John H. Harland Company of Puerto Rico 
Harland Financial Solutions India, LLC 
Spectrum K12 School Solutions, Inc. 
Global Scholar, Inc. 
Global Scholar Sub I, LLC 
Global Scholar Sub II, LLC 
Excelsior Software, LLC
Harland Financial Solutions Worldwide Limited 
Harland Israel Ltd. 
Scantron Canada, Ltd. 
HFS Software India Private Ltd. 
KUED Education Digital India Private Ltd.

SCHEDULE A
	
				
	Purchaser
	Principal Amount of
Offered Securities 

	Credit Suisse Securities (USA) LLC
	$
	70,500,000
	

	Citigroup Global Markets Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated 
Deutsche Bank Securities Inc. 
Jefferies & Company, Inc. 
UBS Securities LLC 
Natixis Securities Americas LLC 
	$58,750,000
$23,500,000
$23,500,000
$23,500,000
$23,500,000
$11,750,000
	

	 
	 

	Total
	$
	235,000,000
	

SCHEDULE B
Issuer Free Writing Communications (included in the General Disclosure Package)
Final term sheet, dated July 17, 2012, a copy of which is attached hereto as Schedule B-1.

Schedule B-1
HARLAND CLARKE HOLDINGS CORP.
[l ]% SENIOR SECURED NOTES DUE 2018
Pricing Term Sheet
This summary pricing term sheet relates only to the securities described below and should only be read together with the preliminary offering circular, subject to completion, dated July 16, 2012 (the “Preliminary Offering Circular”), relating to these securities and supersedes the information in the Preliminary Offering Circular to the extent inconsistent with the information in the Preliminary Offering Circular.  This pricing term sheet is qualified in its entirety by reference to the Preliminary Offering Circular.	
		
	Issuer:
Co-Issuers:
	Harland Clarke Holdings Corp.
Harland Clarke Corp.
Harland Financial Solutions, Inc.
Scantron Corporation
Checks in the Mail, Inc.

	Security Description:
	Senior Secured Notes

	Face Amount:
	$250,000,000

	Gross Proceeds:
	$[  ]

	Maturity Date:
	[  ], 2018

	Coupon:
	[  ]%

	Offering Price:
	[  ]%

	Yield to Maturity:
	[  ]%

	Spread to Treasury:
	[  ] basis points

	Benchmark Treasury:
	UST [  ]% due [____]

	Ratings:
	[__] (Moody's) / [__] (S&P) (1)

	Interest Payment Dates:
	[  ]

	Commencing:
	[  ], 2013

	Equity Clawback:
	Redeem until [  ], 2015 at [  ]% for up to 35.0%

	Make-Whole Redemption:
	Make-whole redemption at Treasury Rate + 50 basis points prior to [____], 2015

	Optional Redemption:
	Callable, on or after the following dates, and at the following prices:
Date                     Price
[  ], 2015                    [  ]%
[  ], 2016                    [  ]%
[  ], 2017                    [  ]%
[  ], 2018 and thereafter   100.000%

	CUSIP/ISIN:
	144A:  [_____]
144A ISIN: [_____]
Reg S: [____]
Reg S ISIN: [____]

	Joint Book-Running Managers:
	Credit Suisse Securities (USA) LLC
Citigroup Global Markets Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Deutsche Bank Securities Inc.
Jefferies & Company, Inc.
UBS Securities LLC
Natixis Securities Americas LLC

	Trade Date:
	July 16, 2012

	Settlement Date:
	July [  ], 2012 (T+5)

Certain United States Federal 
Income Tax Considerations            

Under the heading “CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS-Excess Cash Flow Offer/Payments upon Change of Control or Other Circumstances” on page 222 of the Preliminary Offering Circular, the seventh sentence is changed as follows:

Our position is not, however, binding on the IRS, and if the IRS were to successfully challenge this position, a Holder might be required to accrue interest income at a rate higher than the stated interest rate and original issue discount (discussed below) on the notes, and to treat as ordinary interest income any gain realized on the taxable disposition of a note.

Under the heading “CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS-United States Holders-Interest” on page 223 of the Preliminary Offering Circular, the paragraph is changed as follows:

Payments of qualified interest on the notes generally will be taxable to a United States Holder as ordinary income at the time that such payments are received or accrued, in accordance with such holder's method of accounting for U.S. federal income tax purposes.  

Under the heading “CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS-United States Holders-Original Issue Discount” on page 223 of the Preliminary Offering Circular, the two paragraphs are deleted and replaced with the following paragraphs:

A note with a term that exceeds one year will be treated as issued with original issue discount (“OID”) if the “stated redemption price at maturity” of the note exceeds its “issue price” by more than the de minimis amount of 1⁄4 of 1 percent of the “stated redemption price at maturity” multiplied by the number of complete years from the issue date of the note to its maturity.  

The “stated redemption price at maturity” of the notes may exceed the “issue price” of the notes by more than a de minimis amount, and the notes may therefore constitute discount notes issued with OID.  Following is a summary of the OID rules and their application to the notes.
The “issue price” of a note generally is the first price at which a substantial amount of the issue of which the note is a part is sold to persons other than bond houses, brokers or similar persons acting in the capacity of underwriters, placement agents or wholesalers.
The “stated redemption price at maturity” of a note generally is the total amount of payments provided by the note other than “qualified stated interest” payments.  Generally, an interest payment on a note is “qualified stated interest” if it is one of a series of stated interest payments on a note that are unconditionally payable at least annually at a single fixed rate, with certain exceptions for lower rates paid during some periods, applied to the outstanding principal amount of the note.  Qualified stated interest payable on a note will be taxable to you when accrued or received in accordance with your normal method of accounting.

Interest is considered unconditionally payable only if reasonable legal remedies exist to compel timely payment or the note otherwise provides terms and conditions that make the likelihood of late payment (other than a late payment within a reasonable grace period) or non-payment a remote contingency.  Interest is payable at a single fixed rate only if the rate appropriately takes into account the length of the interval between stated interest payments.  Thus, if the interval between payments varies during the term of a note, the value of the fixed rate on which payment is based generally must be adjusted to reflect a compounding assumption consistent with the length of the interval between payments.
Notes that have de minimis OID generally will be treated as not having OID unless a holder elects to treat all interest on the note as OID.  A note will be considered to have de minimis OID if the difference between its stated redemption price at maturity and its issue price is less than the de minimis amount of 1⁄4 of 1 percent of the stated redemption price at maturity multiplied by the number of complete years from the issue date of the note to its maturity.  
Because the notes may be issued with OID, you may be required to include OID in gross income for U.S. federal income tax purposes as it accrues (regardless of your method of accounting), which may be in advance of receipt of the cash attributable to that income.  OID accrues under the constant-yield method, based on a compounded yield to maturity, as described below.  Accordingly, you generally will be required to include in income increasingly greater amounts of OID, if any, in successive accrual periods.
If the notes are issued with OID, the annual amounts of OID includible in income by you will equal the sum of the “daily portions” of the OID with respect to a note for each day on which you own the note during the taxable year.  Generally, you determine the daily portions of OID by allocating to each day in an “accrual period” a pro rata portion of the OID that is allocable to that accrual period.  The term “accrual period” means an interval of time with respect to which the accrual of OID is measured and which may vary in length over the term of a note provided that each accrual period is no longer than one year and each scheduled payment of principal or interest occurs on either the first or last day of an accrual period.
The amount of OID, if any, allocable to an accrual period will be the excess of: 
•the product of the “adjusted issue price” of the note at the beginning of the accrual period and its “yield to maturity” over
•the aggregate amount of any qualified stated interest payments allocable to the accrual period.

The adjusted issue price of a note at the beginning of the first accrual period is its issue price, and, on any day thereafter, it is the sum of the issue price and the amount of OID, if any, previously included in gross income, reduced by the amount of any payment (other than a payment of qualified stated interest) previously made on the note.  If an interval between payments of qualified stated interest on a note contains more than one accrual period, then, when you determine the amount of OID, if any, allocable to an accrual period, you must allocate the amount of qualified stated interest payable at the end of the interval, including any qualified stated interest that is payable on the first day of the accrual period immediately following the interval, pro rata to each accrual period in the interval based on their relative lengths.  In addition, you must increase the adjusted issue price at the beginning of each accrual period in the interval by the amount of any qualified stated interest that has accrued prior to the first day of the accrual period but that is not payable until the end of the interval. If all accrual periods are of equal length except for a shorter 

initial and/or final accrual period, you can compute the amount of OID, if any, allocable to the initial period using any reasonable method; however, the OID, if any, allocable to the final accrual period will always be the difference between the amount payable at maturity (other than a payment of qualified stated interest) and the adjusted issue price at the beginning of the final accrual period.

Under the heading “CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS-United States Holders-Sale or Other Taxable Disposition of the Notes” on page 224 of the Preliminary Offering Circular, the second sentence is changed as follows:

A United States Holder's adjusted tax basis in a note will generally be the price such United States Holder paid therefor, increased by the amount of OID, if any, previously included in income and reduced (but not below zero) by payments, if any, such holder previously received other than interest payments.

Under the heading “CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS-Non-United States Holders-Interest Payments” on page 225 of the Preliminary Offering Circular, the paragraph is changed as follows:

Subject to the discussion below concerning effectively connected income and backup withholding, interest (including OID, if any) paid to a non-United States Holder on a note generally will not be subject to U.S. federal income tax or withholding tax, provided that such non-United States Holder meets all of the following requirements:

•Such holder does not own, actually or constructively, for U.S. federal income tax purposes, stock constituting 10% or more of the total combined voting power of all classes of our stock entitled to vote.
•Such holder is not, for U.S. federal income tax purposes, a controlled foreign corporation related, directly or indirectly, to us through equity ownership.
•Such holder is not considered a bank that receives such interest in a transaction described in Section 881(c)(3)(A) of the Code.
•Such holder provides a properly completed IRS Form W-8BEN certifying its non-U.S. status.

Backup withholding is not an additional tax. Any amounts withheld from payments to a United States Holder under the backup withholding rules will be allowed as a credit against such United States Holder's U.S.  federal income tax liability and may entitle such United States Holder to a refund, provided the required information is timely furnished to the IRS. United States Holders should consult their own tax advisors regarding the application of backup withholding in their particular situations, the availability of an exemption from backup withholding and the procedure for obtaining such an exemption, if available.
_________________
		
	(1)
	 Neither of these ratings is a recommendation to buy, sell or hold these securities.  Each rating may be subject to revision or withdrawal at any time, and should be evaluated independently of any other rating.

We expect that delivery of the notes will be made against payment therefor on or about the settlement date specified above, which will be the [fifth] business day following the date of pricing of the notes (this settlement cycle being referred to as “T+[5]”).  Under Rule 15c6-1 of the Securities Exchange Act of 1934, as amended, trades in the secondary market generally are required to settle in three business days, unless the parties to any such trade expressly agree otherwise.  Accordingly, purchasers who wish to trade notes on the date of pricing or the [two] 

succeeding business day[s] will be required, by virtue of the fact that the notes initially will settle T+[5], to specify an alternate settlement cycle at the time of any such trade to prevent a failed settlement.  Purchasers of notes who wish to trade notes on the date of pricing or the [two] succeeding business days should consult their own advisors.

* * *

The communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy any security. No offer to buy securities described herein can be accepted, and no part of the purchase price thereof can be received, unless the person making such investment decision has received and reviewed the information contained in the relevant prospectus or offering circular in making their investment decisions.  This communication is not intended to be a confirmation as required under Rule 10b-10 of the Securities Exchange Act of 1934, as amended.  A formal confirmation will be delivered to you separately.  This notice shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.  The notes will be offered and sold to qualified institutional buyers in the United States in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Act”), and to persons in offshore transactions in reliance on Regulation S under the Act.  The notes have not been registered under the Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements.

SCHEDULE C
Supplemental Term Sheet
(See Attached)

EXHIBIT A
Form of Opinion of Paul Weiss, Rifkind, Wharton & Garrison LLP

_______________, 2012   
Credit Suisse Securities (USA) LLC
Citigroup Global Markets Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Deutsche Bank Securities Inc.
Jefferies & Company, Inc.
UBS Securities LLC
Natixis Securities Americas LLC
c/o Credit Suisse Securities (USA) LLC 
Eleven Madison Avenue
New York, N.Y. 10010-3629
Ladies and Gentlemen:
We have acted as special counsel to Harland Clarke Holdings Corp., a Delaware corporation (the “Company”), and Guarantors referred to below in connection with the Purchase Agreement (the “Purchase Agreement”), dated as of July 17, 2012, among the Initial Purchasers named on Schedule A thereof (the “Initial Purchasers”), the guarantors who have signed the Purchase Agreement (the “Guarantors”), the co-issuers who have signed the Purchase Agreement (the “Co-Issuers”) and the Company, relating to the purchase today by the Initial Purchasers of $235,000,000 aggregate principal amount of 9.750% Senior Secured Notes due 2018 (the “Notes”).  The Notes are to be issued under the Indenture, dated as of July 24, 2012 (the “Indenture”), among the Company, the Co-Issuers, the Guarantors and Wells Fargo Bank, National Association, as Trustee (the “Trustee”).  This opinion is being furnished at the request of the Company as contemplated by Section 7(h) of the Purchase Agreement.  Capitalized terms used and not otherwise defined in this letter have the respective meanings given those terms in the Purchase Agreement.
In connection with the furnishing of this opinion, we have examined originals, or copies certified or otherwise identified to our satisfaction, of the following documents:
		
	1.
	the Purchase Agreement;

		
	2.
	the Indenture;

		
	3.
	the Notes issued on the date of this letter (including the guarantees endorsed thereon (the “Guarantees”));

		
	4.
	the Supplemental Term Sheet; 

		
	5.
	the Preliminary Offering Circular regarding the Notes, dated May 14, 2012;

		
	6.
	the Preliminary Offering Circular regarding the Notes, dated July 16, 2012, together with the information set forth in the Issuer Free Writing Communication, dated July 

17, 2012, setting forth the final terms of the Notes attached as Schedule B to the Purchase Agreement (the “General Disclosure Package”);
		
	7.
	the Offering Circular regarding the Notes, dated July 17, 2012 (the “Final Offering Circular”); 

		
	8.
	the Collateral Trust Agreement, dated as of the date of this letter (the “Collateral Trust Agreement”), by and among the Company, the Co-Issuers, the Guarantors, Wells Fargo Bank, National Association, as the collateral trustee (the “Collateral Trustee”) and Credit Suisse AG, Cayman Islands Branch (“CS”) as agent for the lenders under the Credit Agreement, dated as of April 4, 2007, among the Company, certain subsidiaries of the Company party thereto as co-borrowers, the lenders party thereto and CS, as administrative agent, as amended by the First Amendment dated as of May 4, 2007 and the Amendment Agreement dated as of May 10, 2012; and

		
	9.
	the Security Agreement, dated as of the date of this letter, by and among the Company, the Co-Issuers, the Guarantors and the Collateral Trustee (the “Security Agreement”, and together with the Collateral Trust Agreement, the “Collateral Documents”).

Together, we refer to the Purchase Agreement, the Indenture, the Notes, the Guarantees, the Security Agreement and the Collateral Trust Agreement as the “Transaction Documents.”  In addition, we have examined:  (i) such organizational records of the Company each Co-Issuer organized in the State of Delaware (collectively, the “Covered Co-Issuers”) and each Guarantor organized in the State of Delaware or the State of New York (collectively, the “Covered Guarantors,”) that we have considered appropriate, including, as applicable, a copy of the articles of incorporation, by-laws, certificate of formation and limited liability company agreement, in each case, as amended, of the Company, each Covered Co-Issuer and of each Covered Guarantor, certified by the Company, each Covered Co-Issuer or each Covered Guarantor as in effect on the date of this letter (collectively, the “Charter Documents”) and copies of resolutions of the board of directors of the Company, each Covered Co-Issuer and of each Covered Guarantor or of the member or members, the board of managers or other governing body of each Co-Issuer and each Covered Guarantor relating to the issuance of the Notes and the Guarantees, each certified by the Company, each Covered Co-Issuer and the Covered Guarantors; (ii) the unfiled copies of UCC-1 financing statements, copies of which are attached as Schedule III to this letter (the “Delaware Financing Statements”), naming the Company and each Co-Issuer and Guarantor organized under the laws of Delaware (each, a “Delaware Party”) as debtor and the Collateral Trustee as secured party, which we understand will be filed with the Secretary of State of the State of Delaware (the “Delaware Filing Office”); (iii) the unfiled copy of the UCC-1 financing statement, a copy of which is attached as Schedule IV to this letter (the “New York Financing Statement”), naming the Guarantor organized under the laws of New York (the “New York Party”) as debtor and the Collateral Trustee as secured party, which we understand will be filed with the Secretary of State of the State of New York (the “New York Filing Office”); and (iv) such other certificates, agreements and documents as we deemed relevant and necessary as a basis for the opinions and beliefs expressed below.  We have also relied upon oral and written statements of officers and representatives of the Company, the Co-Issuers and the Guarantors, the factual matters contained in the representations and warranties of the Company, the Co-Issuers and the Guarantors made in the Transaction Documents and upon certificates of public officials and the officers of the Company, the Co-Issuers and the Guarantors.  

In our examination of the documents referred to above, we have assumed, without independent investigation, the genuineness of all signatures, the legal capacity of all individuals who have executed any of the documents reviewed by us, the authenticity of all documents submitted to us as originals, the 

conformity to the originals of all documents submitted to us as certified, photostatic, reproduced or conformed copies of valid existing agreements or other documents, the authenticity of the latter documents and that the statements regarding matters of fact in the certificates, records, agreements, instruments and documents that we have examined are accurate and complete.  We have also assumed, without independent investigation, (i) that each Co-Issuer and Guarantor (other than the Covered Issuers and the Covered Guarantors) (each a “Non-Covered Party”) is validly existing and in good standing under the laws of its jurisdiction of organization, (ii) that each Non-Covered Party has all necessary corporate or limited liability power and authority to execute, deliver and perform its obligations under the Transaction Documents, (iii) the execution, delivery and performance of the Transaction Documents have been duly authorized by all necessary corporate or limited liability company action by each Non-Covered Party (to the extent a party thereto) and do not violate the organizational documents of such Non-Covered Party or the laws of such Non-Covered Party's jurisdiction of organization and (iv) the due execution and delivery of the Transaction Documents by the Non-Covered Parties under the laws of their respective jurisdictions of organization.  We have also assumed that each Transaction Document has been duly authorized and executed by, and represents valid and legally binding obligations of, the parties thereto (other than the Company, the Co-Issuers and the Guarantors).
Based upon the above, and subject to the stated assumptions, exceptions and qualifications, we are of the opinion that:
Each of the Company, the Covered Co-Issuers and the Covered Guarantors incorporated or formed in Delaware have been duly incorporated or formed and are validly existing and in good standing under the laws of the State of Delaware.  The Covered Guarantor incorporated in New York is validly existing and in good standing under the laws of the State of New York.    
Each of the Company, the Covered Co-Issuers and the Covered Guarantors has all necessary corporate or limited liability company power and authority to execute, deliver and perform its obligations under each Transaction Document to which it is a party and to own and hold its properties and conduct its business as described in the General Disclosure Package and the Final Offering Circular.
The Notes have been duly authorized by the Company and each Covered Co-Issuer.  The Notes, when duly issued and delivered by the Company and the Co-Issuers against payment as provided in the Purchase Agreement, will constitute valid and legally binding obligations of the Company and each of the Co-Issuers entitled to the benefits of the Indenture and enforceable against the Company and each of the Co-Issuers in accordance with their terms, except that the enforceability of the Notes may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors' rights generally and subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law); and the Notes, when issued and delivered, will conform in all material respects to the description contained in the General Disclosure Package and the Final Offering Circular under the caption “Description of Notes.”
The Indenture has been duly authorized, executed and delivered by the Company, each Covered Co-Issuer and each Covered Guarantor.  The Indenture is a valid and legally binding obligation of the Company, each Co-Issuer and each Guarantor, enforceable against the Company, each Co-Issuer and each Guarantor in accordance with its terms, except that the enforceability of the Indenture may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors' rights generally and subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law); and the Indenture conforms in all material respects to its description contained in the General Disclosure Package and the Final Offering Circular under the caption “Description of Notes.”  
The Purchase Agreement has been duly authorized, executed and delivered by the Company, each Covered Co-Issuer and each Covered Guarantor.
Each Covered Guarantor has duly authorized its Guarantee.  When the Notes are duly issued and delivered by the Company and each Co-Issuer against payment as provided in the Purchase 

Agreement, the Guarantee of each Guarantor will be a valid and legally binding obligation of each such Guarantor, enforceable against each such Guarantor in accordance with its terms, except that the enforceability of the Guarantee may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors' rights generally and subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).  The Guarantees conform in all material respects to their description contained in the General Disclosure Package and the Final Offering Circular under the caption “Description of Notes.”
The statements in the General Disclosure Package and the Final Offering Circular under the heading “Certain United States Federal Income Tax Considerations,” to the extent that they constitute summaries of United States federal law or regulation or legal conclusions, have been reviewed by us and fairly summarize the matters described under that heading in all material respects.
Based upon the representations, warranties and agreements of the Company, the Co-Issuers and the Guarantors in the Purchase Agreement and of the Initial Purchasers in the Purchase Agreement, it is not necessary in connection with the offer, sale and delivery of the Notes (including the Guarantees) to the Initial Purchasers under the Purchase Agreement or in connection with the initial resale of the Notes (including the Guarantees) by the Initial Purchasers in accordance with the Purchase Agreement to register the Notes or the Guarantees under the Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended, it being understood that we express no opinion as to any subsequent resale of the Notes.
The issuance and sale of the Notes by the Company and the Co-Issuers, the issuance of the Guarantees by the Guarantors, the compliance by the Company, each Co-Issuer and each Guarantor with all of the provisions of each Transaction Document to which it is a party and the performance of their obligations thereunder will not (i) result in a violation of the Charter Documents, (ii) breach or result in a default under any agreement, indenture or instrument listed on Schedule I to this opinion or (iii) violate Applicable Law or any judgment, order or decree of any court or arbitrator listed on Schedule II to this opinion, except, in the case of clauses (ii) and (iii) above, where the breach, default or violation could not reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole.  For purposes of this letter, the term “Applicable Law” means the General Corporation Law of the State of Delaware (the “GCL”), the Delaware Limited Liability Company Act (the “DLLCA”) and those laws, rules and regulations of the United States of America and the State of New York, in each case which in our experience are normally applicable to the transactions of the type contemplated by the Purchase Agreement (other than the United States federal securities laws, any state securities or Blue Sky laws of the various states, anti-fraud laws and the rules and regulations of the Financial Industry Regulatory Authority, Inc.) but without us having made any special investigation as to applicability of any specific rule or regulation.
No consent, approval, authorization or order of, or filing, registration or qualification with, any Governmental Authority, which has not been obtained, taken or made is required by the Company, the Co-Issuers or Guarantors under any Applicable Law for the issuance or sale of the Notes or the performance by the Company, the Co-Issuers and Guarantors of their obligations under the Transaction Documents to which they are parties other than filings which are necessary to perfect the security interests referred to therein.  For purposes of this opinion, the term “Governmental Authority” means any executive, legislative, judicial, administrative or regulatory body of the State of New York, the State of Delaware or the United States of America.
The Company, the Co-Issuers and the Guarantors are not and, after giving effect to the offering and sale of the Notes, will not be required to be registered as an investment company under the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission promulgated thereunder.
Each of the Collateral Documents has been duly authorized, executed and delivered by the Company, each Covered Co-Issuer and each Covered Guarantor party thereto.  Each of the Collateral 

Documents is a valid and legally binding obligation of the Company, each Co-Issuer and each Guarantor party thereto, enforceable against the Company, each Co-Issuer and each Guarantor party thereto in accordance with their respective terms, except that enforceability of the Collateral Documents may be (i) subject to bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors' rights generally, (ii) subject to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law) and (iii) subject to the qualification that certain remedial provisions of the Security Agreement are or may be unenforceable in whole or in part under the laws of the State of New York, but the inclusion of such provisions does not make the remedies afforded by the Security Agreement inadequate for the practical realization of the rights and benefits purported to be provided by the Security Agreement except for the economic consequences resulting from any delay imposed by, or any procedure required by, applicable New York laws, rules, regulations and court decisions and by constitutional requirements in and of the State of New York. 
The Security Agreement is effective to create a valid security interest in favor of the Collateral Trustee, for the benefit of the Secured Parties (as defined in the Security Agreement), to secure the Obligations (as defined in the Security Agreement), in the Collateral (as defined in the Security Agreement) in which the Company, the Co-Issuers and the Guarantors (collectively, the “Debtors”) have an interest to the extent that a security interest in that Collateral may be created under Article 9 of the Uniform Commercial Code of the State of New York (the “NY-UCC”) (such security interest, the “Security Interest”).  For the New York Party, the New York Filing Office is the office in the State of New York in which filings are required to perfect the Security Interest to the extent that it can be perfected by filing under the NY‐UCC.  For each Delaware Party, the Delaware Filing Office is the office in the State of Delaware in which filings are required to perfect the Security Interest to the extent that it can be perfected by filing under the Uniform Commercial Code of the State of Delaware (the “DE-UCC”).  Upon the filing of the New York Financing Statements in the New York Filing Office and the Delaware Financing Statements in the Delaware Filing Office, in each case with the appropriate filing fees paid, the Security Interest granted by such New York Parties and Delaware Parties will be perfected to the extent that a security interest in the Collateral may be perfected by filing under the NY-UCC or the DE-UCC, respectively.
Upon the Collateral Trustee taking possession of the certificates representing the equity interests of the subsidiaries of the Company pledged pursuant to the Security Agreement that are listed on Schedule [4.2(e)(i)] to that agreement (the “Pledged Stock”) in the State of New York, together with related stock powers which have been duly executed in blank by the Debtors that are the registered owners of the Pledged Stock, and assuming that the Collateral Trustee continues to have possession of the Pledged Stock and stock powers in the State of New York, the Collateral Trustee will have a valid and perfected security interest, for the benefit of the Secured Parties (as defined in the Security Agreement), to secure the Obligations (as defined in the Security Agreement), in all right, title and interest of those Debtors in and to the Pledged Stock.  
[Upon the Collateral Trustee taking possession of the promissory notes pledged to the pursuant to the Security Agreement that are listed on Schedule [4.2(e)(ii)] to that agreement (the “Pledged Notes”) in the State of New York, together with related transfer forms which have been duly executed in blank by the Debtors that are the registered owners of the Pledged Notes, and assuming that the Collateral Trustee continues to have possession of the Pledged Notes and transfer forms in the State of New York, the Collateral Trustee will have a valid and perfected security interest for the benefit of the Secured Parties (as defined in the Security Agreement) to secure the Obligations (as defined in the Security Agreement) in all right, title and interest of those Debtors in and to the Pledged Notes.] 1 
1NTD Subject to confirmation on whether there will be pledged notes.

This opinion is subject to the following assumptions, exceptions and qualifications:

 (a)    We express no opinion as to the enforceability of any provisions in the Transaction Documents that:  (i) purport to establish (or may be construed to establish) evidentiary standards; (ii)  constitute waivers which are prohibited under Section 9‐602 of the NY-UCC;  (iii) constitute forum selection clauses in the federal courts or the courts of any state other than New York state courts; (iv) provide for indemnification against, or release or exculpation of, criminal violations, intentional harm, violations of securities laws or acts of gross negligence or willful misconduct to the extent the enforcement of those provisions is contrary to public policy; or (v) impose penalties or liquidated damages under certain circumstances.  
(b)    With respect to paragraphs 13, 14  [and 15] above, we have assumed, without independent investigation, that value has been given within the meaning of Section 9-203(b)(1) of the NY-UCC, and we express no opinion as to:  (i) any Debtor's right, title or interest in or to any Collateral; (ii) the perfection and effect of perfection or non-perfection of a security interest in the Collateral to the extent subject to any laws other than the laws of the State of New York and, in the case of paragraph 13 above, the DE-UCC; (iii) the perfection of security interests in fixtures, as-extracted collateral, timber to be cut, consumer goods, commercial tort claims and ownership interests in real property cooperative organizations; or (iv) the creation, validity, perfection, priority or enforceability of any security interest sought to be created in any items of property to the extent that a security interest in them is excluded from the coverage of Article 9 of the NY-UCC or the DE-UCC.  In addition, (x) except as specifically set forth in paragraphs 13,14 [and 15] above, we express no opinion as to the perfection of any security interest and (y) we express no opinion as to the priority of any security interest.  We wish to point out, however, that the security interests referred to above are subject to the intercreditor terms of the Collateral Trust Agreement.
(c)    We wish to point out that in the case of proceeds (as defined in Article 9 of the NY‐UCC or the DE-UCC, as applicable), the continuation of perfection of any security interest in them is limited to the extent set forth in Section 9‐315 of the NY-UCC or the DE-UCC, as applicable.  
(d)    We call to your attention the fact that (i) Article 9 of the NY-UCC and the DE-UCC require the filing of continuation statements within the period of six months prior to the expiration of each five year period from the date of the original filing of financing statements in order to maintain the effectiveness of the filings referred to in this opinion; and (ii) additional filings may be necessary if any Debtor changes its name, identity or corporate structure or the jurisdiction in which it is organized.
(e)      For purposes of paragraph 13 above, we note that agreements constituting or relating to Collateral may contain provisions purportedly restricting the assignability thereof or the granting of a security interest with respect thereto.
(f)    For purposes of paragraph 14 above, we have also assumed, without independent investigation, that each share of Pledged Stock [(i)] is a “certificated security” in “registered form” within the meaning of Section 8-102 of the NY-UCC and is registered on the books of the issuer in the name of the applicable Debtor [and (ii) is either (x) stock issued by a corporation or (y) an equity interest in a limited partnership or limited liability company the terms of which expressly provide that it is a security governed by Article 8 of the NY-UCC] 2.  Insofar as this opinion relates to any security interest in any Pledged Stock issued by a corporation not organized under the laws of a state of the United States of America, or the enforceability of the Security Agreement with respect to the Pledged Stock, we express no opinion as to any steps which may be required under the relevant local law or organizational documents with respect to the Pledged Stock, and our opinion is given only to the extent that New York law is applicable.

2Subject to review of the applicable Pledged Stock Certificates.

[(g)    For purposes of paragraph 15 above, we have also assumed, without independent investigation, that each Pledged Note (x) is either (A) a “certificated security” in “registered form” within the meaning of Section 8-102 of the NY-UCC that is registered on the books of the issuer in the name of the applicable Debtor or (B) an “instrument” within the meaning of § 9-102(a)(47) of the NY-UCC and (y) is not a negotiable instrument or chattel paper (as defined in Sections 3-104 and 9-102(a)(11) of the NY-UCC, respectively).  Insofar as this opinion relates to any security interest in any Pledged Notes issued by a corporation not organized under the laws of a state of the United States of America, or the enforceability of the Security Agreement with respect to those Pledged Notes, we express no opinion as to any steps which may be required under the relevant local law or organizational documents with respect to such Pledged Notes, and our opinion is given only to the extent that New York law is applicable.]
The opinions expressed above are limited to the laws of the State of New York, the GCL, the DLLCA, the Uniform Commercial Code of the State of Delaware and the federal laws of the United States of America.  Our opinions are rendered only with respect to the laws, and the rules, regulations and orders under those laws, that are currently in effect.  
This letter is furnished by us solely for your benefit in connection with the transactions referred to in the Purchase Agreement and may not be circulated to, or relied upon by, any other person without our prior written consent.
Very truly yours,
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP

Schedule I

Agreements, Indentures and Other Instruments

		
	1.
	Indenture dated as of May 1, 2007 among Harland Clarke Holdings Corp., the co-issuers and guarantors party thereto and Wells Fargo Bank, N.A., as trustee.

		
	2.
	Credit Agreement, dated as of April 4, 2007 among Harland Clarke Holdings Corp., the Subsidiary Borrowers (listed therein), the Lenders (listed therein) and Credit Suisse, Cayman Islands Branch, as administrative agent, as amended by the First Amendment and the Amendment Agreement referred to below.

		
	3.
	First Amendment to Credit Agreement, dated as of May 4, 2007, by and among Harland Clarke Holdings Corp., the lender parties (listed therein) and Credit Suisse, Cayman Islands Branch, as administrative and collateral agent.

		
	4.
	Amendment Agreement dated as of May 10, 2012, by and among Harland Clarke Holdings Corp., the lender parties (listed therein) and Credit Suisse, Cayman Islands Branch, as administrative and collateral agent.

Schedule II

Judgments, Orders or Decrees of Any Court

None.

Schedule III
Delaware Financing Statements

(to be attached)

Schedule IV
New York Financing Statement

(to be attached)

EXHIBIT B
Form of Negative Assurance Letter
_______________, 2012   
Credit Suisse Securities (USA) LLC
Citigroup Global Markets Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Deutsche Bank Securities Inc.
Jefferies & Company, Inc.
UBS Securities LLC
Natixis Securities Americas LLC
c/o Credit Suisse Securities (USA) LLC (“Credit Suisse”),
Eleven Madison Avenue
New York, N.Y. 10010-3629
Ladies and Gentlemen:

We have acted as special counsel to Harland Clarke Holdings Corp. (the “Company”) and the Co-Issuers and Guarantors referred to below in connection with the Purchase Agreement (the “Purchase Agreement”), dated as of July 17, 2012, among the Initial Purchasers named on Schedule 1 thereof (the “Initial Purchasers”), the guarantors who have signed the Purchase Agreement (the “Guarantors”), and the Company, relating to the purchase today by the Initial Purchasers of $235,000,000 aggregate principal amount of 9.750% Senior Secured Notes due 2018 (the “Notes”) of the Company, as issuer, and Harland Clarke Corp., Scantron Corporation, and Harland Financial Solutions, Inc., as co-issuers (collectively, the “Co-Issuers”).  This letter is being furnished at the request of the Company in connection with the delivery of our opinion to you of even date herewith (the “Opinion”) under the Purchase Agreement.  Capitalized terms used and not otherwise defined in this letter have the respective meanings given those terms in the Purchase Agreement.

The primary purpose of our professional engagement was not to establish factual matters or financial, accounting or statistical information.  In addition, many determinations involved in the preparation of the Preliminary Offering Circular regarding the Notes, dated July 16, 2012 (the “Preliminary Offering Circular”), and the Offering Circular regarding the Notes, dated July 17, 2012 (together with the documents incorporated by reference therein, the “Final Offering Circular”) are of a wholly or partially non-legal character or relate to legal matters outside the scope of the Opinion.  Furthermore, the limitations inherent in the independent verification of factual matters and in the role of outside counsel are such that we have not undertaken to independently verify, and cannot and do not assume responsibility for the accuracy, completeness or fairness of, the statements contained in the Preliminary Offering Circular, the Final Offering Circular or the documents incorporated by reference therein (other than as explicitly stated in paragraphs 2, 3, 4, 6 and 7 of the Opinion).
In the course of acting as counsel to the Company in connection with the offering of the Notes, we have participated in conferences and telephone conversations with officers and other representatives of the Company and the independent registered public accountants for the Company during which conferences and conversations the contents of the Preliminary Offering Circular, the Final Offering Circular and related matters were discussed.  Based upon such participation (and relying as to factual matters on officers, employees and other representatives of the Company and its subsidiaries), our understanding of the U.S. federal securities laws and the experience we have gained in our practice thereunder, we hereby advise you that our work in connection with this matter did not disclose any information that gave us reason to believe that (i) as of the Applicable Time, the Preliminary Offering Circular, when taken together with the Pricing Information (as defined below) (except for the financial statements, financial statement schedules and other financial data included therein or omitted therefrom or included in or omitted from the Pricing Information, in each case, as to which we express no such belief), included an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not 

misleading; or (ii) at the time the Final Offering Circular was issued or at the Time of Delivery, the Final Offering Circular (except for the financial statements, financial statement schedules and other financial data included or incorporated by reference therein or omitted therefrom or from those documents incorporated by reference, as to which we express no such belief) included an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  For purposes of this letter, the term “Pricing Information” means the information set forth in the final term sheet attached as Schedule B to the Purchase Agreement.
This letter is furnished by us solely for your benefit in connection with the transactions referred to in the Purchase Agreement and may not be circulated to, or relied upon by, any other person without our prior written consent.
Very truly yours,

PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP

EXHIBIT C-1
Form of Opinion of Georgia Counsel
1.The Company (a) is a corporation validly existing under the laws of the State of Georgia; and (b) has all requisite corporate power to execute, deliver and perform its obligations under the Note Documents to which it is a party.
2.The execution, delivery and performance by the Company of its obligations under the Note Documents to which the Company is party have been duly authorized by all necessary corporate power on the part of the Company.  Each of the Note Documents to which the Company is party has been duly executed and delivered by the Company.
3.The execution, delivery, and performance by the Company of its obligations under the Note Documents to which it is party, do not (a) contravene the Company's Constituent Documents; or (b) violate any applicable Georgia statute, rule, or regulation. 
4.No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority of the State of Georgia is required of the Company as a condition to the due execution, delivery and performance by the Company of the Note Documents to which it is a party, other than filings necessary to perfect liens arising pursuant to the Note Documents.
5.    The financing statement listing the Company as the debtor (the “Financing Statement”) is in appropriate form for filing in the office of the Clerk of the Superior Court of any County in the State of Georgia (each, a “Filing Office”).  Upon the proper filing of the Financing Statement in a Filing Office, the security interest of the Collateral Agent in that portion of the “Collateral”, as such term is defined in the Security Agreement, in which a security interest may be perfected by filing a financing statement under the Article 9 of the Uniform Commercial Code as in effect in the State of Georgia will be perfected.

 

EXHIBIT C-2
Form of Opinion of Oregon Counsel
1.The Company is a corporation duly incorporated and validly existing under the laws of the State of Oregon.
2.The Company has all necessary corporate power and authority to (a) execute, deliver and perform its obligations under the Transaction Documents and (b) own and hold its properties and conduct its business as described in the General Disclosure Package and the Final Offering Circular.
3.Each of the Transaction Documents has been duly authorized, executed and delivered by the Company.
4.The execution and delivery by the Company of the Transaction Documents to which it is a party, and consummation of the closing of the transactions contemplated by each of the Transaction Documents do not:
		
	(a)
	violate the Company's Charter Documents;

		
	(b)
	violate any Oregon statute or regulation, which, in our experience, are normally applicable to the transactions contemplated by the Transaction Documents; or

		
	(c)
	require the consent or approval of, or any filing or registration with, any Oregon governmental authority, which, in our experience, are normally applicable to the transactions contemplated by the Transaction Documents, other than (1) the filing of the Financing Statement in the Filing Office and (2) those which have been obtained.

5.The Financing Statement is sufficient as to form to perfect a security interest in the Article 9 Collateral, except that we express no opinion as to Collateral consisting of (a) personal property affixed to real property in such a manner as to become a fixture, (b) as-extracted collateral or (c) timber to be cut, and we call your attention to the fact that the security interest in certain of such Collateral may not be perfected by filing financing statements under Article 9 of the Oregon Uniform Commercial Code.  Assuming the Financing Statement has been properly filed in the Filing Office, the Agent's security interest in the Article 9 Collateral has been perfected, to the extent such security interest may be perfected by the filing of the Financing Statement

EXHIBIT D
Form of Opinion of General Counsel
1.Each of Company and its subsidiaries is not and as a result of the consummation of the Transactions will not be, (a) in violation of its charter or bylaws or other organizational documents, (b) in default in the performance of any bond, debenture, note, indenture, mortgage, deed of trust or other agreement or instrument to which it is a party or by which it is bound or to which any of its properties is subject or (c) in violation of any local, state, federal or foreign law, statute, ordinance, rule, regulation, requirement, judgment or court decree (including, without limitation, environmental laws, statutes, ordinances, rules, regulations, requirements, judgments or court decrees) applicable to it or any of its assets or properties (whether owned or leased), that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.  
2.There is (a) no action, suit, investigation or proceeding before or by any court, arbitrator or governmental agency, body or authority or administrative agency, domestic or foreign, now pending or, to my knowledge, threatened or contemplated, to which the Company and its subsidiaries is or may be a party or to which the business or property of the Company and its subsidiaries is or may be subject, (b) no statute, rule, regulation or order that has been enacted, adopted or issued by any governmental agency or that to my knowledge has been proposed by any governmental agency, body or authority or administrative agency, and (c) no injunction, restraining order or order of any nature by a federal or state court or foreign court of competent jurisdiction to which the Company and its subsidiaries is or may be subject or to which the business, assets, or property of the Company and its subsidiaries is or may be subject, that, in the case of clauses (a), (b) and (c) above, (1) is required to be disclosed in the Final Offering Circular and that is not disclosed, or (2) would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
3.Except as described in the General Disclosure Package and the Final Offering Circular, all of the outstanding shares of capital stock of each subsidiary of the Company are owned, directly or indirectly, by the Company, free and clear of any security interest, claim, lien, limitation on voting rights or encumbrance; and all such securities have been duly authorized, validly issued and are fully paid and nonassessable and were not issued in violation of any preemptive or similar rights.
4.There are not currently any outstanding subscriptions, rights, warrants, calls, commitments of sale or options to acquire, or instruments convertible into or exchangeable for, any capital stock, membership interests or other equity interests of the Company or its subsidiaries.
5.There are no holders of securities of the Company or its subsidiaries who, by reason of the execution by the Company, the Co-Issuers and the Guarantors of the Purchase Agreement or any other Operative Document to which it is a party or the consummation by the Company or any of the Guarantors of the transactions contemplated thereby, have the right to request or demand that the Company or any of its subsidiaries register under the Securities Act or analogous foreign laws and regulations securities held by them.Ex 4.18 Security Agreement

Exhibit 4.18

SECURITY AGREEMENT
made by
HARLAND CLARKE HOLDINGS CORP.,
HARLAND FINANCIAL SOLUTIONS, INC.,
SCANTRON CORPORATION,
and certain Subsidiaries of Harland Clarke Holdings Corp.
in favor of
WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Collateral Trustee
Dated as of July 24, 2012

1

TABLE OF CONTENTS
Page
	
				
	SECTION 1.
	DEFINED TERMS
	5

	1.1
	

	Definitions
	5

	1.2
	

	Other Definitional Provisions
	11

	 
	 
	 

	SECTION 2.
	GRANT OF SECURITY INTEREST;  CONTINUING LIABILITY UNDER COLLATERAL
	11

	 
	 
	 

	SECTION 3.
	REPRESENTATIONS AND WARRANTIES
	13

	 
	 
	 

	SECTION 4.
	COVENANTS
	17

	4.1
	

	Delivery and Control of Instruments, Chattel Paper, Negotiable Documents and Investment Property
	18

	4.2
	

	Maintenance of Insurance
	19

	4.3
	

	Payment of Obligations
	19

	4.4
	

	Compliance with Terms
	19

	4.5
	

	Disposition of Collateral
	19

	4.6
	

	Maintenance of Perfected Security Interest; Further Documentation
	19

	4.7
	

	Changes in Locations, Name, Jurisdiction of Incorporation, etc
	20

	4.8
	

	Notices
	20

	4.9
	

	Investment Property
	20

	4.10
	

	Receivables
	22

	4.11
	

	Intellectual Property
	22

	4.12
	

	Commercial Tort Claims
	25

	4.13
	

	No Interference
	25

	4.14
	

	Perfection of Certain Collateral
	25

	 
	 
	 

	SECTION 5.
	REMEDIAL PROVISIONS
	25

	5.1
	

	Certain Matters Relating to Receivables
	25

	5.2
	

	Communications with Obligors; Grantors Remain Liable
	26

	5.3
	

	Pledged Securities
	26

	5.4
	

	Proceeds to be Turned Over To Collateral Trustee
	27

	5.5
	

	Application of Proceeds
	27

	5.6
	

	Code and Other Remedies
	27

	5.7
	

	Registration Rights
	29

	5.8
	

	Deficiency
	29

	5.9
	

	Grant of Intellectual Property License
	30

	 
	 
	 

	SECTION 6.
	THE COLLATERAL TRUSTEE
	30

	6.1
	

	Collateral Trustee's Appointment as Attorney-in-Fact, etc
	30

	6.2
	

	Execution of Financing Statements
	31

	6.3
	

	Authority of Collateral Trustee
	31

	6.4
	

	Immunities of the Collateral Trustee.  The Collateral Trustee's rights and obligations hereunder are subject to Article 5 of the Collateral Trust Agreement in all respects.
	32

2

	
			
	SECTION 7.
	ABL INTERCREDITOR AGREEMENT AND COLLATERAL TRUST AGREEMENT
	32

	7.1
	ABL Intercreditor Agreement
	32

	7.2
	Collateral Trust Agreement
	32

	 
	 
	 

	SECTION 8.
	MISCELLANEOUS
	32

	8.1
	Amendments in Writing
	32

	8.2
	Notices
	32

	8.3
	No Waiver by Course of Conduct; Cumulative Remedies
	32

	8.4
	Enforcement Expenses; Indemnification
	33

	8.5
	Successors and Assigns
	33

	8.6
	[Intentionally Omitted]
	33

	8.7
	Counterparts
	33

	8.8
	Severability
	33

	8.9
	Section Headings
	33

	8.10
	Integration
	33

	8.11
	APPLICABLE LAW
	34

	8.12
	Submission to Jurisdiction; Waivers
	34

	8.13
	Acknowledgments.
	34

	8.14
	Additional Grantors
	34

	8.15
	Releases
	35

	8.16
	WAIVER OF JURY TRIAL
	35

	8.17
	Reinstatement
	35

EXHIBITS

Exhibit A    Assumption Agreement
Exhibit B-1    Form of Intellectual Property Security Agreement
Exhibit B-2    Form of After-Acquired Intellectual Property Security Agreement
Exhibit C    Form of Uncertificated Securities Control Agreement

SCHEDULES

Schedule 3(e)(i)    Intellectual Property
Schedule 3(e)(iii)    Licenses with Grantor as Licensee
Schedule 3(e)(vi)    Licenses with Grantor as Licensor
Schedule 3(e)(viii)    Unpaid Fees and Taxes
Schedule 3(f)        Commercial Tort Claims
Schedule 3(g)        Filings and Other Actions Required to Perfect Security Interests
Schedule 3(i)        Organizational Information
Schedule 3(j)        Location of Inventory and Equipment
Schedule 3(k)(i)    Description of Equity Instruments
Schedule 3(k)(ii)    Description of Pledged Debt Instruments
Schedule 3(k)(iii)    Description of Pledged Accounts
Schedule 8.2        Notice Addresses of Grantors

3

SECURITY AGREEMENT, dated as of July 24, 2012 (as amended, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”), made by each of the signatories hereto (together with any other entity that may become a party hereto as provided herein, the “Grantors” and, each a “Grantor”), in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Collateral Trustee (in such capacity and together with its successors, the “Collateral Trustee”) for the benefit of each other and for the equal and ratable benefit of the Secured Parties.
W I T N E S S E T H:
WHEREAS, the Company and the other Grantors have entered into that certain credit agreement dated as of April 4, 2007, among Harland Clarke Holdings Corp., a Delaware corporation (the “Company”), CA Acquisition Holdings Inc., a Delaware corporation (“Holdings”), certain subsidiaries of the Company party thereto as co-borrowers, the several lenders from time to time parties thereto, and Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent (the “Agent”), (as amended by First Amendment dated May 4, 2007 and by the Amendment Agreement dated May 10, 2012, and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).
WHEREAS, the Company and the other Grantors have entered into an indenture dated as of the date hereof (as amended, amended and restated, supplemented or otherwise modified from time to time, the “-Indenture”) with Wells Fargo Bank, National Association, as trustee (in such capacity and together with its successors, the “Notes Trustee”) for the holders of the Co-Issuers' 9.750% Senior Secured Notes due 2019 (including any additional notes that may be issued under the Indenture from time to time and any exchange notes issued in respect of such notes and additional notes, the “Notes”). 
WHEREAS, the Company and the other Grantors may enter into other Collateral Trust Parity Lien Documents in respect of additional Collateral Trust Parity Lien Obligations to be incurred in the future. 
WHEREAS, in order to induce the Notes Trustee to enter into the Indenture and the Collateral Trust Parity Lien Representatives and the other holders of the Collateral Trust Parity Lien Obligations to enter into the other Collateral Trust Parity Lien Documents, the Grantors have agreed to grant, pursuant to the terms of this Agreement, a continuing security interest in and to the Collateral to the Collateral Trustee for the ratable benefit of the Secured Parties to secure the Collateral Trust Parity Lien Obligations. 
WHEREAS, the Collateral Trustee has agreed, pursuant to the terms of the Collateral Trust Agreement, dated as of the date hereof, by and among the Company, the other Grantors, the Collateral Trustee, the Notes Trustee and the other parties party thereto (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Collateral Trust Agreement”) to accept the grant of a security interest under this Agreement as security for the Collateral Trust Parity Lien Obligations. 
WHEREAS, each Grantor will derive substantial direct and indirect benefit from the transactions contemplated by the Indenture and the other Collateral Trust Parity Lien Documents. 
NOW, THEREFORE, in consideration of the premises and the agreements herein and for other good and valuable consideration, the receipt and sufficiency of which are being acknowledged, the parties hereto agree as follows:

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	Section 1.
	DEFINED TERMS

1.1Definitions
.  
(a)  (a)  Unless otherwise defined herein, terms defined in the Collateral Trust Agreement and used herein shall have the meanings given to them in the Collateral Trust Agreement, and the following terms are used herein as defined in the New York UCC (and if defined in more than one Article of the New York UCC, such terms shall have the meanings given in Article 9 thereof): Accounts, Account Debtor, Certificated Security, Chattel Paper, Commercial Tort Claim, Commodity Account, Commodity Contract, Commodity Intermediary, Documents, Deposit Account, Electronic Chattel Paper, Equipment, Financial Asset, Fixtures, Goods, Instruments, Inventory, Letter of Credit, Letter of Credit Rights, Money, Payment Intangibles, Securities Account, Securities Intermediary, Security, Security Entitlement, Supporting Obligations, Tangible Chattel Paper and Uncertificated Security. 
(b)The following terms shall have the following meanings:
 “Agent” shall have the meaning assigned to such term in the recitals.
“Agreement”  shall have the meaning assigned to such term in the preamble.
“Applicable Issue Date” shall mean the Issue Date, the date of issuance of Additional Notes and each date of issuance or incurrence of any Series of Collateral Trust Parity Lien Debt.
“Assumption Agreement” means an agreement in the form of Exhibit A hereto. 
“Collateral” shall have the meaning assigned to such term in Section 2.
“Collateral Account” shall mean any collateral account established by the Collateral Trustee as provided in Section 5.1 or 5.4.  
“Collateral Account Funds” shall mean, collectively, the following:  all funds (including all trust monies), investments (including all cash equivalents) credited to, or purchased with funds from, any Collateral Account and all certificates and instruments from time to time representing or evidencing such investments; all notes, certificates of deposit, checks and other instruments from time to time hereafter delivered to or otherwise possessed by the Collateral Trustee for or on behalf of any Grantor in substitution for, or in addition to, any or all of the Collateral; and all interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the items constituting Collateral.
 “Collateral Trust Agreement” shall have the meaning assigned to such term in the recitals.
“Collateral Trustee”  shall have the meaning assigned to such term in the preamble.
“Company” shall have the meaning assigned to such term in the recitals.
“Contracts” shall mean all contracts and agreements between any Grantor and any other person (in each case, whether written or oral, or third party or intercompany) as the same may be amended, assigned, extended, restated, supplemented, replaced or otherwise modified from time to time including (i) all rights of any Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (ii) all rights of any Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect thereto, (iii) all rights of any Grantor to damages arising thereunder and (iv) all rights of any Grantor to terminate and to perform and compel performance of, such Contracts and 

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to exercise all remedies thereunder.
“Copyright Licenses” shall mean, with respect to any Grantor, any agreement, whether written or oral, providing for the grant by or to such Grantor of any right in, to or under any Copyright (including the grant of rights to manufacture, print, publish, copy, import, export, distribute, exploit and sell materials derived from any Copyright), including those agreements listed in Schedule 3(e)(i) (as such schedule may be amended from time to time).
“Copyrights”  shall mean (i) all copyrights arising under the laws of the United States, any other country, or union of countries, or any political subdivision of any of the foregoing, whether registered or unregistered and whether or not the underlying works of authorship have been published, all registrations and recordings thereof, and all applications in connection therewith, including all registrations, recordings and applications in the United States Copyright Office (including those registrations and applications listed in Schedule 3(e)(i) (as such schedule may be amended from time to time)), (ii) all extensions and renewals thereof, and the right to obtain all extensions and renewals thereof, (iii) the right to sue or otherwise recover for past, present and future infringements of any of the foregoing, (iv) all proceeds of the foregoing, including all royalties, income, payments, claims, damages, and proceeds of suit now or hereafter due and/or payable with respect thereto, including, without limitation, payments under all licenses entered into in connection therewith, and damages or payments for past, present or future infringements thereof, and (v) all other rights of any kind whatsoever accruing thereunder or pertaining thereto throughout the world.
“Credit Agreement” shall have the meaning assigned to such term in the recitals.
“dollars” or “$” shall mean lawful money of the United States of America.
“Excluded Assets” means each of the following:

(a)   any permit, lease, license, contract, property right or agreement to which any Grantor is a party or any of its rights or interests thereunder if and only for so long as the grant of a security interest hereunder shall constitute or result in a breach, termination or default under any such permit, lease, license, contract, property right or agreement (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code of any relevant jurisdiction or any other applicable law or principles of equity); provided, however, that such security interest shall attach immediately to any portion of such permit, lease, license, contract, property rights or agreement that does not result in any of the consequences specified above;

(b)   Letter of Credit Rights (other than Supporting Obligations);

(c)   any vehicle covered by a certificate of title or ownership;

(d)   assets owned by any Grantor on the date hereof or hereafter acquired that are subject to a Lien permitted to be incurred pursuant to clauses (11), (12),(19), (20) (with respect to any Liens described in this clause (d)) or (21) of the definition of “Permitted Liens” in the Indenture if the contract or other agreement in which such Lien is granted (or the documentation providing for the obligations subject to such Lien) validly prohibits the creation of the Lien created under the Collateral Trust Security Documents on such assets;

(e)   “intent-to-use” applications for Trademarks filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, unless and until an Amendment to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of the Lanham Act has been filed, to the extent that any assignment of an “intent-to-use” 

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application prior to such filing would violate the Lanham Act or cause the Trademark that is the subject thereof to be invalidated or abandoned;

(f)   Equity Interests in (i) any Immaterial Subsidiary (unless it is required to be a party to the Indenture or any other Collateral Trust Parity Lien Document in accordance with the terms of such documents) (ii) any Unrestricted Subsidiary and (iii) any Receivables Subsidiary; and

(g)   any asset with respect to which the Collateral Trustee (in consultation with the Company) has determined that the burden or cost of attaching a security interest thereto is excessive in relation to the benefits to be obtained by the Secured Parties.

The Excluded Assets shall not include any proceeds (as defined in the Uniform Commercial Code), substitutions or replacements of Excluded Assets (unless such proceeds, substitutions or replacements would otherwise constitute Excluded Assets).  The security interest granted pursuant to Section 2 shall attach to such property and assets immediately and automatically (without the need for any further grant or act) at such time as the applicable condition described in clause (a) through (g) ceases to exist.

 “Excluded Foreign Subsidiary Voting Stock” shall mean the voting Equity Interests in any Foreign Subsidiary.
“General Intangibles” shall mean all “general intangibles” as such term is defined in Section 9-102(a)(42) of the New York UCC and, in any event, including with respect to any Grantor, all rights of such Grantor to receive any tax refunds, all agreements governing Hedging Obligations and all contracts, agreements, instruments and indentures and all licenses, permits, concessions, franchises and authorizations issued by Governmental Authorities in any form, and portions thereof, to which such Grantor is a party or under which such Grantor has any right, title or interest or to which such Grantor or any property of such Grantor is subject, as the same may from time to time be amended, supplemented, replaced or otherwise modified, including (i) all rights of such Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect thereto, (iii) all rights of such Grantor to damages arising thereunder and (iv) all rights of such Grantor to terminate and to perform and compel performance and to exercise all remedies thereunder. 
“Grantors” shall have the meaning assigned to such term in the preamble.
“Holdings” shall have the meaning assigned to such term in the recitals.
“Indenture” shall have the meaning assigned to such term in the recitals.
“Insurance” shall mean (i) all insurance policies covering any or all of the Collateral (regardless of whether the Agent is the loss payee thereof) and (ii) any key man life insurance policies. 
“Intellectual Property” shall mean all rights in and to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets and the Trade Secret Licenses, and all rights to sue or otherwise recover at law or in equity for any past, present and future infringement, misappropriation, dilution or other impairment thereof, including the right to receive all proceeds and damages therefrom.
“Intellectual Property Security Agreement” means an agreement in the form of Exhibit B-1 hereto. 

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“Intercompany Note” shall mean any promissory note evidencing loans made by any Grantor to any Co-Issuer or any of the Subsidiaries.  
 “Investment Property” shall mean the collective reference to (i) all “investment property” as such term is defined in Section 9-102(a)(49) of the New York UCC (other than any Excluded Foreign Subsidiary Voting Stock excluded from the definition of “Pledged Equity Interests”) including all Certificated Securities and Uncertificated Securities, all Security Entitlements, all Securities Accounts, all Commodity Contracts and all Commodity Accounts, (ii) security entitlements, in the case of any United States Treasury book-entry securities, as defined in 31 C.F.R. section 357.2, or, in the case of any United States federal agency book-entry securities, as defined in the corresponding United States federal regulations governing such book-entry securities, and (iii) whether or not otherwise constituting “investment property,” all Pledged Notes, all Pledged Equity Interests, all Pledged Security Entitlements and all Pledged Commodity Contracts. 
“Issue Date” shall have the meaning assigned to such term in the Indenture.
“Issuers” shall mean the collective reference to each issuer of a Pledged Security.
 “Licensed Intellectual Property” shall have the meaning assigned to such term in Section 3.1(e)(i).
“New York UCC” shall mean the Uniform Commercial Code as from time to time in effect in the State of New York.
“Notes” shall have the meaning assigned to such term in the recitals.
“Notes Trustee” shall have the meaning assigned to such term in the recitals.
“Owned Intellectual Property” shall have the meaning assigned to such term in Section 3.1(e)(i).
“Patent License” shall mean, with respect to any Grantor, any agreement, whether written or oral, providing for the grant by or to such Grantor of any right in, to or under any Patent (including the grant of rights to manufacture, use, import, export, distribute or sell any invention covered in whole or in part by a Patent), including those agreements listed in Schedule 3(e)(i) (as such schedule may be amended or supplemented from time to time).
“Patents” shall mean (i) all patents of the United States, any other country, or union of countries or any political subdivision of any of the foregoing, and all applications in connection therewith, including all patents and patent applications in the United States Patent and Trademark Office (including those listed in Schedule 3(e)(i) (as such schedule may be amended or supplemented from time to time)), (ii) all reissues, extensions, divisions, continuations and continuations-in-part thereof, and the right to obtain all reissues and extensions thereof, (iii) all inventions (whether or not patentable) and all improvements thereof, (iv) the right to sue or otherwise recover for past, present and future infringements of any of the foregoing, (v) all proceeds of the foregoing, including all royalties, income, payments, claims, damages and proceeds of suit now and hereafter due and/or payable with respect thereto (including payments under all licenses entered into in connection therewith, and damages and payments for past, present or future infringements thereof), and (vi) all other rights of any kind whatsoever accruing thereunder or pertaining thereto throughout the world.    
 “person” shall mean any natural person, corporation, trust, business trust, joint venture, 

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joint stock company, association company, limited liability company, partnership, Governmental Authority or other entity.
“Pledged Alternative Equity Interests” shall mean all interests of any Grantor in participation or other interests in any equity or profits of any business entity and the certificates, if any, representing such interests and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such interests and any other warrant, right or option to acquire any of the foregoing; provided, however, that Pledged Alternative Equity Interests shall not include any Pledged Stock, Pledged Partnership Interests, Pledged LLC Interests or Pledged Trust Interests.
“Pledged Commodity Contracts” shall mean all commodity contracts listed on Schedule 3(k)(iii) (as such schedule may be amended from time to time) and all other commodity contracts to which any Grantor is party from time to time.
“Pledged Debt Securities” shall mean all debt securities now owned or hereafter acquired by any Grantor, including the debt securities listed on Schedule 3(k)(ii), (as such schedule may be amended or supplemented from time to time), together with any other certificates, options, rights or security entitlements of any nature whatsoever in respect of the debt securities of any person that may be issued or granted to, or held by, any Grantor while this Agreement is in effect.
“Pledged Equity Interests” shall mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests, Pledged Trust Interests and Pledged Alternative Equity Interests.
“Pledged LLC Interests” shall mean all interests of any Grantor now owned or hereafter acquired in any limited liability company, including all limited liability company interests listed on Schedule 3(k)(i) hereto under the heading “Pledged LLC Interests” (as such schedule may be amended or supplemented from time to time) and the certificates, if any, representing such limited liability company interests and any interest of such Grantor on the books and records of such limited liability company and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such limited liability company interests and any other warrant, right or option to acquire any of the foregoing.
“Pledged Notes” shall mean all promissory notes now owned or hereafter acquired by any Grantor, including those listed on Schedule 3(k)(ii) (as such schedule may be amended or supplemented from time to time) and all Intercompany Notes at any time issued to or held by any Grantor (other than promissory notes in an aggregate principal amount not to exceed $5,000,000 at any time outstanding issued in connection with extensions of trade credit by any Grantor in the ordinary course of business).
“Pledged Partnership Interests” shall mean all interests of any Grantor now owned or hereafter acquired in any general partnership, limited partnership, limited liability partnership or other partnership, including all partnership interests listed on Schedule 3(k)(i) hereto under the heading “Pledged Partnership Interests” (as such schedule may be amended or supplemented from time to time) and the certificates, if any, representing such partnership interests and any interest of such Grantor on the books and records of such partnership and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such partnership interests and any other warrant, right or option to acquire any of the foregoing.

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“Pledged Securities” shall mean the collective reference to the Pledged Debt Securities, the Pledged Notes and the Pledged Equity Interests.
“Pledged Security Entitlements” shall mean all security entitlements with respect to the financial assets listed on Schedule 3(k)(iii) (as such schedule may be amended from time to time) and all other security entitlements of any Grantor.
“Pledged Stock” shall mean all shares of capital stock now owned or hereafter acquired by any Grantor, including all shares of capital stock listed on Schedule 3(k)(i) hereto under the heading “Pledged Stock” (as such schedule may be amended or supplemented from time to time), and the certificates, if any, representing such shares and any interest of such Grantor in the entries on the books of the issuer of such shares and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares and any other warrant, right or option to acquire any of the foregoing; provided, however, that in no event shall more than 65% of the total outstanding Excluded Foreign Subsidiary Voting Stock be required to be pledged hereunder. 
“Pledged Trust Interests” shall mean all interests of any Grantor now owned or hereafter acquired in a Delaware business trust or other trust, including all trust interests listed on Schedule 3(k)(i) hereto under the heading “Pledged Trust Interests” (as such schedule may be amended or supplemented from time to time) and the certificates, if any, representing such trust interests and any interest of such Grantor on the books and records of such trust or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such trust interests and any other warrant, right or option to acquire any of the foregoing.
“Proceeds” shall mean all “proceeds” as such term is defined in Section 9-102(a)(64) of the New York UCC and, in any event, shall include all dividends or other income from the Investment Property, collections thereon or distributions or payments with respect thereto. 
“Receivable” shall mean all Accounts and any other right to payment for goods or other property sold, leased, licensed or otherwise disposed of or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper or classified as a Payment Intangible and whether or not it has been earned by performance.  References herein to Receivables shall include any Supporting Obligation or collateral securing such Receivable.
 “Secured Parties” means the Collateral Trustee and the Collateral Trust Parity Lien Secured Parties.  
“Securities Act” shall mean the Securities Act of 1933, as amended.
“Subsidiary” shall mean any subsidiary of the Borrower.
“Trademark License” shall mean, with respect to any Grantor, any agreement, whether written or oral, providing for the grant by or to such Grantor of any right in, to or under any Trademark, including those agreements listed in Schedule 3(e)(i) (as such schedule may be amended or supplemented from time to time).
“Trademarks” shall mean (i) all United States, State and foreign trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names, trade styles, 

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trade dress, domain names, logos and other source or business identifiers, whether registered or unregistered, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country, union of countries, or any political subdivision of any of the foregoing, or otherwise, and all common-law rights related thereto, including the registrations and applications listed in Schedule 3(e)(i) (as such schedule may be amended or supplemented from time to time), (ii) all renewals thereof and the right to obtain all renewals thereof, (iii) the right to sue or otherwise recover for past, present and future infringements or dilutions of any of the foregoing or for any injury to goodwill, (iv) all proceeds of the foregoing, including all royalties, income, payments, claims, damages and proceeds of suit now and hereafter due and/or payable with respect thereto (including payments under all licenses entered into in connection therewith, and damages and payments for past, present or future infringements or dilutions thereof, and (v) all other rights of any kind whatsoever accruing thereunder or pertaining thereto throughout the world, together in each case with the goodwill of the business connected with the use of, and symbolized by, each of the above.
“Trade Secret License” shall mean, with respect to any Grantor, any agreement, whether written or oral, providing for the grant by or to such Grantor of any right in, to or under any Trade Secret, including those agreements listed in Schedule 3(e)(i) (as such schedule may be amended or supplemented from time to time).
“Trade Secrets” shall mean (i) all trade secrets and all other confidential or proprietary information and know-how, whether or not reduced to a writing or other tangible form, (ii) the right to sue or otherwise recover for past, present and future misappropriations of any of the foregoing, (iii) all proceeds of the foregoing, including all royalties, income, payments, claims, damages and proceeds of suit now and hereafter due and/or payable with respect thereto (including payments under all licenses entered into in connection therewith, and damages and payments for past, present or future misappropriations thereof, and (iv) all other rights of any kind whatsoever accruing thereunder or pertaining thereto throughout the world.
1.2Other Definitional Provisions
.  
a.The words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and Schedule references are to the specific provisions of this Agreement unless otherwise specified.
b.The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.
c.Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to the property or assets such Grantor has granted as Collateral or the relevant part thereof.
d.The expressions “payment in full,” “paid in full” and any other similar terms or phrases when used herein with respect to the Collateral Trust Parity Lien Obligations shall mean the Discharge of Collateral Trust Parity Lien Obligations. 
e.The words “include,” “includes” and “including,” and words of similar import, shall not be limiting and shall be deemed to be followed by the phrase “without limitation.”
f.The provisions of Section 1.2(e) of the Collateral Trust Agreement shall apply to this Agreement.
Section 2.GRANT OF SECURITY INTEREST; CONTINUING LIABILITY UNDER COLLATERAL

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(a)Each Grantor hereby assigns and transfers to the Collateral Trustee, and hereby grants to the Collateral Trustee, for the ratable benefit of the Secured Parties, a security interest in all of the personal property of such Grantor, including the following property, in each case, wherever located and now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor's Collateral Trust Parity Lien Obligations:
(i)all Accounts;
(ii)all Chattel Paper;
(iii)all Collateral Accounts and all Collateral Account Funds;
(iv)all Commercial Tort Claims from time specifically described on Schedule 3(f);
(v)all Contracts;
(vi)all Deposit Accounts;
(vii)all Documents;
(viii)all Equipment;
(ix)all Fixtures;
(x)all General Intangibles;
(xi)all Goods;
(xii)all Instruments;
(xiii)all Insurance;
(xiv)all Intellectual Property;
(xv)all Inventory;
(xvi)all Investment Property;
(xvii)all Money;
(xviii)all Securities Accounts;
(xix)all books, records, ledger cards, files, correspondence, customer lists, blueprints, technical specifications, manuals, computer software, computer printouts, tapes, disks and other electronic storage media and related data processing software and similar items that at any time pertain to or evidence or contain information relating to any of the Collateral or are otherwise necessary or helpful in the collection thereof or realization thereupon; and
(xx)to the extent not otherwise included, all other property, whether tangible or intangible, of the Grantor and all Proceeds, products, accessions, rents and profits of any and all of the foregoing and all collateral security, Supporting Obligations and guarantees given by any person with respect to any of the foregoing;
provided that, notwithstanding any other provision set forth in this Section 2, this Agreement shall not, at any time, constitute a grant of a security interest in any property that is, at such time, an Excluded Asset.
(b)Notwithstanding anything herein to the contrary, (i) each Grantor shall remain liable for all obligations under and in respect of the Collateral and nothing contained herein is intended or shall be a delegation of duties to the Collateral Trustee or any other Secured Party, (ii) each Grantor shall remain liable under and each of the agreements included in the Collateral, including any agreements relating to any Receivables, any Contracts and any agreements relating to Pledged Partnership Interests or Pledged LLC Interests, to perform all of the obligations undertaken by it thereunder all in accordance with and pursuant to the terms and provisions thereof and neither the Collateral Trustee nor any other Secured Party shall have any obligation or liability under any of such agreements by reason of or arising out of this Agreement or any other document related hereto nor shall the Collateral Trustee nor any other Secured Party have any obligation to 

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make any inquiry as to the nature or sufficiency of any payment received by it or have any obligation to take any action to collect or enforce any rights under any agreement included in the Collateral, including any agreements relating to any Receivables, any Contracts or any agreements relating to Pledged Partnership Interests or Pledged LLC Interests and (iii) the exercise by the Collateral Trustee of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral, including any agreements relating to any Receivables, any Contracts and any agreements relating to Pledged Partnership Interests or Pledged LLC Interests.

Section 3.REPRESENTATIONS AND WARRANTIES
Each Grantor hereby represents and warrants, on the Issue Date, on the date of issuance of Additional Notes, if any, and on each date on which representations and warranties are made or deemed made hereunder in accordance with the terms of the applicable Collateral Trust Parity Lien Documents relating to any Series of Collateral Trust Parity Lien Debt (in each such case, for the benefit of the applicable Series of Collateral Trust Parity Lien Debt), that:
(a)Title; No Other Liens
.  Such Grantor owns each item of the Collateral free and clear of any and all Liens or claims, including Liens arising as a result of such Grantor becoming bound (as a result of merger or otherwise) as grantor under a security agreement entered into by another person, except for Liens permitted by the Collateral Trust Parity Lien Documents.  No financing statement, mortgage or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except such as have been filed in favor of the Collateral Trustee, for the ratable benefit of the Secured Parties, pursuant to this Agreement or as are permitted by the Collateral Trust Parity Lien Documents.
(b)Farm Products.  Except as disclosed to the Collateral Trustee from time to time upon its request, none of the Collateral constitutes, or is the Proceeds of, Farm Products, or As Extracted Collateral.  
(c)Investment Property.
(i)The Pledged Debt Securities and Pledged Notes (with respect to Pledged Debt Securities and Pledged Notes issued by a Person other the Company or a subsidiary of the Company only, to the best knowledge of such Grantor and only to the extent that such Pledged Debt Securities and Pledged Notes, either individually or in the aggregate, constitute a material portion of the Collateral) have been duly authorized, authenticated or issued, and delivered and are the legal, valid and binding obligation of the issuers thereof enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principals of equity, regardless of whether considered in a proceeding in equity or at law, and are not in default and constitute all of the issued and outstanding inter-company indebtedness evidenced by an instrument or certificated security of the respective issuers thereof owing to such Grantor.
(ii)The shares of Pledged Equity Interests pledged by such Grantor hereunder constitute all of the issued and outstanding shares of all classes of Equity Interests in each Issuer owned by such Grantor except, in the case of Excluded Foreign Subsidiary Voting Stock, the Pledged Equity Interests shall not constitute more than 65% of the outstanding Excluded Foreign Subsidiary Voting Stock of each relevant Issuer. 
(iii)The Pledged Equity Interests (with respect to Pledged Equity Interests issued by a Person other than the Company or a subsidiary of the Company only, to the best knowledge of such Grantor) have been duly and validly issued and are fully paid and nonassessable.
(iv)Such Grantor is the record and beneficial owner of, and has good and marketable title to, the Investment Property and Deposit Accounts pledged by it hereunder, free of any and 

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all Liens in favor of any other person, except Liens permitted by the Collateral Trust Parity Lien Documents, there are no outstanding warrants, options or other rights to purchase, or shareholder, voting trust or similar agreements outstanding with respect to, or property that is convertible into, or that requires the issuance or sale of, any Pledged Equity Interests.
(d)    Receivables
.  
 
(i)  No amount payable to such Grantor under or in connection with any Receivable that is included in the Collateral is evidenced by any Instrument or Tangible Chattel Paper which has not been delivered to the Collateral Trustee (or its agent or bailee) or constitutes Electronic Chattel Paper that has not been subjected to the control (within the meaning of Section 9-105 of the New York UCC) of the Collateral Trustee (or its agent or bailee), in each such case to the extent required by Section 4.1.
(ii)Except in each case as could not reasonably be expected to have a Material Adverse Effect, to the best knowledge of each Grantor, each Receivable that is included in the Collateral (i) is and will be the legal, valid and binding obligation of the Account Debtor in respect thereof, representing an unsatisfied obligation of such Account Debtor, (ii) is and will be enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principals of equity, regardless of whether considered in a proceeding in equity or at law, (iii) is not and will not be subject to any setoffs, defenses, taxes, counterclaims (except with respect to refunds, returns and allowances in the ordinary course of business with respect to damaged merchandise) and (iv) is and will be in compliance with all applicable laws and regulations.
(e)    Intellectual Property
  

(i)     Schedule 3(e)(i) lists all Intellectual Property which is registered with a Governmental Authority or is the subject of an application for registration and all material unregistered Intellectual Property, in each case which is owned by such Grantor on the date hereof (collectively, the “Owned Intellectual Property”).  Except as set forth in Schedule 3(e)(i), such Grantor is the exclusive owner of the entire and unencumbered right, title and interest in and to all such Owned Intellectual Property and is otherwise entitled to use, and grant to others the right to use, all such Owned Intellectual Property subject only to the license terms of the licensing or franchise agreements referred to in paragraph (iii) below.  Such Grantor has a valid and enforceable right to use all third party Intellectual Property which it uses in its business, but does not own (collectively, the “Licensed Intellectual Property” and, together with the Owned Intellectual Property and any other Intellectual Property owned by such Grantor, the “Company Intellectual Property”).
(ii)On the date hereof, all Owned Intellectual Property and, to such Grantor's knowledge, all Licensed Intellectual Property, in each case, which is material to such Grantor's business (collectively, the “Material Intellectual Property”), is valid, subsisting, unexpired and enforceable and has not been abandoned.  To the Grantor's knowledge, neither the operation of such Grantor's business as currently conducted or as contemplated to be conducted nor the use of any Company Intellectual Property in connection therewith infringes, misappropriates, dilutes, misuses or otherwise violates in any material respect the intellectual property rights of any other person.  
(iii)Except as set forth in Schedule 3(e)(iii), on the date hereof (A) none of the Material Intellectual Property is the subject of any licensing or franchise agreement pursuant to which such Grantor is the licensee or franchisee and (B) to the Grantor's knowledge, there are no other 

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agreements, obligations, orders or judgments which affect the use of any Material Intellectual Property.
(iv)Except as could not reasonably be expected to have a Material Adverse Effect, (A) the rights of such Grantor in or to the Company Intellectual Property do not infringe, misappropriate, dilute, misuse or otherwise violate the rights of any third party, and (B) no claim has been asserted that the use of the Company Intellectual Property by such Grantor, or, to the knowledge of such Grantor, by a third party authorized by such Grantor pursuant to a valid license, sublicense or similar agreement, in each case infringes, misappropriates, dilutes, misuses or otherwise violates the rights of any third party.
(v)Except as could not reasonably be expected to have a Material Adverse Effect, (A) to such Grantor's knowledge, no holding, decision or judgment has been rendered by any Governmental Authority or arbitrator in the United States or outside the United States which would limit, cancel or question the validity or enforceability of, or such Grantor's rights in, any Company Intellectual Property, and (B) such Grantor is not aware of any uses of any item of Company Intellectual Property that could reasonably be expected to lead to such item becoming invalid or unenforceable including unauthorized uses by third parties and uses which were not supported by the goodwill of the business connected with Trademarks and Trademark Licenses.
(vi)Except as could not reasonably be expected to have a Material Adverse Effect, no action or proceeding is pending, or, to such Grantor's knowledge, threatened (A) seeking to limit, cancel or question the validity of, or such Grantor's rights in, any Owned Intellectual Property, (B) alleging that any services provided by, processes used by, or products manufactured or sold by such Grantor infringe, misappropriate, dilute, misuse or otherwise violate any patent, trademark, copyright, or any other right of any other person, (C) alleging that any Company Intellectual Property is being licensed, sublicensed or used in violation of any intellectual property or any other right of any other person, or (D) which, if adversely determined, would affect the value of any Company Intellectual Property.  Except as could not reasonably be expected to have a Material Adverse Effect, to such Grantor's knowledge, no person is engaging in any activity that infringes upon, or is otherwise an unauthorized use of, any Company Intellectual Property or upon the rights of such Grantor therein.  Except as set forth in Schedule 3(e)(vi), such Grantor has not granted any license, release, covenant not to sue, non-assertion assurance, or other right to any person with respect to any part of the Material Intellectual Property.  The consummation of the transactions contemplated by this Agreement (including the enforcement of remedies) could not reasonably be expected to result in the termination or impairment of any of the Material Intellectual Property.
(vii)With respect to each Copyright License, Trademark License, Trade Secret License and Patent License the loss of which could reasonably be expected to have a Material Adverse Effect:  (A) such license is valid and binding and in full force and effect and represents the entire agreement between the respective licensor and licensee with respect to the subject matter of such license; (B) such license will not cease to be valid and binding and in full force and effect on terms identical to those currently in effect as a result of the rights and interests granted herein, nor will the grant of such rights and interests constitute a breach or default under such license or otherwise give the licensor or licensee a right to terminate such license; (C) such Grantor has not received any notice of termination or cancellation under such license; (D) such Grantor has not received any notice of a breach or default under such license, which breach or default has not been cured; and (E) such Grantor is not in breach or default in any material respect, and no event has occurred that, with notice and/or lapse of time, would constitute such a breach or default or permit termination, modification or acceleration under such license.
(viii)Except as set forth in Schedule 3(e)(viii), such Grantor has performed all acts and has paid all fees and taxes necessary in its reasonable business judgment to adequately maintain and protect its interest in each and every item of Material Intellectual Property.  To the extent such Grantor has reasonably determined that it is commercially practicable to do so, such Grantor has used proper statutory notice in connection with its use of each Patent, Trademark and Copyright included in the 

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Material Intellectual Property.
(ix)Except as could not reasonably be expected to have a Material Adverse Effect, (A) none of the Trade Secrets included in the Company Intellectual Property have been used, divulged, disclosed or appropriated to the detriment of such Grantor for the benefit of any other person; (B) to the knowledge of such Grantor, no employee, independent contractor or agent of such Grantor has misappropriated any trade secrets of any other person in the course of the performance of his or her duties as an employee, independent contractor or agent of such Grantor; and (C) to the knowledge of such Grantor, no employee, independent contractor or agent of such Grantor is in default or breach of any term of any employment agreement, non-disclosure agreement, assignment of inventions agreement or similar agreement or contract relating in any way to the protection, ownership, development, use or transfer of such Grantor's Intellectual Property.
(x)Except as could not reasonably be expected to have a Material Adverse Effect, such Grantor has made all filings and recordations necessary to adequately protect its interest in its Owned Intellectual Property, including registration of its Patents and Trademarks with the United States Patent and Trademark Office and, and registration of any of its Copyrights with the United States Copyright Office.
(xi)Except as could not reasonably be expected to have a Material Adverse Effect, no Grantor is subject to any settlement or consents, judgment, injunction, order, decree, covenants not to sue, non-assertion assurances or releases that would impair the validity or enforceability of, or such Grantor's rights in, any Company Intellectual Property. 
(d)Commercial Tort Claims
.  No Grantor has any Commercial Tort Claims as of the date hereof individually or in the aggregate in excess of $1,000,000 for which such Grantor has filed a complaint in a court of competent jurisdiction, except as specifically described on Schedule 3(f).
(e)Perfected First Priority Liens.  The security interests granted pursuant to this Agreement (x) upon completion of the filings and other actions specified on Schedule 3(g) (all of which, in the case of all filings and other documents referred to on said Schedule, subject to Section 4.14, have been delivered to the Collateral Trustee in duly completed and duly executed form (which shall include real estate descriptions sufficient to enable the Collateral Trustee to record financing statements in the county records, in such counties identified on Schedule 3(g), sufficient to perfect a security interest in all Collateral that constitutes Fixtures), as applicable, and may be filed by the Collateral Trustee or its agent at any time) and payment of all filing fees, will constitute valid, perfected security interests in all of the Collateral (other than Deposit Accounts) in favor of the Collateral Trustee, for the ratable benefit of the Secured Parties, as collateral security for such Grantor's Collateral Trust Parity Lien Obligations, enforceable in accordance with the terms hereof and (y) are prior to all other Liens on the Collateral, except for Liens permitted by the Collateral Trust Parity Lien Documents.  
(f)Perfection Certificate.  
The Perfection Certificates substantially in the form of Annex A hereto have been duly prepared, completed and executed by an Officer of the Company and the inf
ormation set forth therein is correct and complete in all material respects as of such date (after giving effect to all supplements thereto delivered to the Collateral Trustee substantially in the form of Annex F hereto, prior to such date).  
(g)Name; Jurisdiction of Organization, etc
.  On the date hereof, such Grantor's exact legal name (as indicated on the public record of such Grantor's jurisdiction of formation or organization), jurisdiction of organization, organizational 

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identification number, if any, and the location of such Grantor's chief executive office or sole place of business are specified on Schedule 3(i).  On the date hereof, each Grantor is organized solely under the law of the jurisdiction so specified and has not filed any certificates of domestication, transfer or continuance in any other jurisdiction.  Except as otherwise indicated on Schedule 3(i), the jurisdiction of each such Grantor's organization of formation is required to maintain a public record showing the Grantor to have been organized or formed.
(j)    Inventory and Equipment
  

(i)On the date hereof, any Inventory and the Equipment with a fair market value of $10,000 or more (other than mobile goods or Inventory in transit) that is included in the Collateral are kept at the locations listed on Schedule 3(j), and each such location is owned by a Grantor except for locations (x) that are leased by a Grantor as lessee and designated on Part A of Schedule 3(j) and (y) at which Inventory is held in a public warehouse or is otherwise held by a bailee or on consignment as designated in Part B of Schedule 3(j).  
(ii)Except for those locations listed on Part B of Schedule 3(j), as of the date hereof, no Inventory or Equipment with a fair market value of $10,000 or more that is included in the Collateral is in the possession of an issuer of a negotiable document (as defined in Section 7-104 of the New York UCC) therefor or is otherwise in the possession of any bailee or warehouseman.    
(k)    Investment Property.    Schedule 3(k)(i) hereto sets forth under the headings “Pledged Stock,” “Pledged LLC Interests,” “Pledged Partnership Interests” and “Pledged Trust Interests,” respectively, all of the Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust Interests owned by any Grantor as of the Applicable Issue Date and, as of the Applicable Issue Date, such Pledged Equity Interests constitute the percentage of issued and outstanding shares of stock, percentage of membership interests, percentage of partnership interests or percentage of beneficial interests of the respective issuers thereof indicated on such schedule.  Schedule 3(k)(ii) sets forth under the heading “Pledged Debt Securities” or “Pledged Notes” all of the Pledged Debt Securities and Pledged Notes owned by any Grantor as of the Applicable Issue Date.  Schedule 3(k)(iii) hereto sets forth under the headings “Securities Accounts,”  “Commodities Accounts,” and “Deposit Accounts” respectively, all of the Securities Accounts, Commodities Accounts and Deposit Accounts in which each Grantor has an interest as of the Applicable Issue Date and in which such Grantor customarily maintains cash, securities or other assets in excess of $10,000.  Each respective Grantor, as the case may be, is the sole entitlement holder or customer of each such account (other than the Collateral Trustee, where its interests may appear), and no Grantor has consented to or is otherwise aware of any person, other than the Collateral Trustee, as the case may be, having “control” (within the meanings of Sections 8-106, 9-106 and 9-104 of the New York UCC) over, or any other interest in, any Securities Account, Commodity Account, Deposit Account, in each case in which such Grantor has an interest, or any securities, commodities or other property credited thereto other than Liens permitted under the Collateral Trust Parity Lien Documents.

(1)Schedule Updates.  In connection with the making of the representations and warranties contained in this Section 3 on any Applicable Issue Date, the Company may (but is not obligated to) deliver to the Collateral Trustee updated versions of any of the Schedules referred to in this Section 3.

Section 4.COVENANTS
Each Grantor covenants and agrees with the Secured Parties that, from and after the date of this Agreement until the Discharge of Collateral Trust Parity Lien Obligations shall have occurred:  

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4.1Delivery and Control of Instruments, Chattel Paper, Negotiable Documents and Investment Property
a. If any amount in excess of $1,000,000 individually or $5,000,000 in the aggregate (with respect to which the actions specified in this Section 4.1(a) have not been taken) payable in respect of the Collateral is or shall become evidenced or represented by any Instrument, Certificated Security, Negotiable Document or Tangible Chattel Paper, such Instrument (other than checks received in the ordinary course of business), Certificated Security, Negotiable Documents or Tangible Chattel Paper shall be immediately delivered to the Collateral Trustee, duly endorsed in blank to the Collateral Trustee or in a manner that the Credit Agreement Collateral Agent approves in respect of the equivalent provision in the agreements relating to the Applicable Credit Agreement, to be held as Collateral pursuant to this Agreement, and all of such property owned by any Grantor as of the Applicable Issue Date shall be delivered on the Applicable Issue Date; provided, that after the Discharge of Credit Agreement Obligations, replacement endorsements executed in blank shall be promptly delivered to the Collateral Trustee.
b.If any amount in excess of $1,000,000 individually or $5,000,000 in the aggregate (with respect to which the actions specified in this Section 4.1(b) have not been taken) payable in respect of the Collateral is or shall become “Electronic Chattel Paper” such Grantor shall use commercially reasonable efforts to ensure that (i) a single authoritative copy exists which is unique, identifiable, unalterable (except as provided in clauses (iii), (iv) and (v) of this paragraph), (ii) such authoritative copy identifies the Collateral Trustee (or its bailee or agent) as the assignee and is communicated to and maintained by the Collateral Trustee (or its bailee, agent or designee), (iii) copies or revisions that add or change the assignee of the authoritative copy can only be made with the participation of the Collateral Trustee (or its bailee or agent), (iv) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy and not the authoritative copy and (v) any revision of the authoritative copy is readily identifiable as an authorized or unauthorized revision.
c.If any Collateral is or shall become evidenced or represented by an Uncertificated Security, such Grantor shall cause each Issuer thereof that is a Subsidiary or shall use commercially reasonable efforts to cause each other Issuer thereof either (i) to register the Collateral Trustee (or its bailee or agent) as the registered owner of such Uncertificated Security, upon original issue or registration of transfer or (ii) to agree in writing with such Grantor and the Collateral Trustee (or its bailee or agent) that such Issuer will comply with instructions with respect to such Uncertificated Security originated by the Collateral Trustee (or its bailee or agent) without further consent of such Grantor, such agreement to be in substantially the form of Exhibit C or such other form reasonably acceptable to the Collateral Trustee or, if prior to the Discharge of Credit Agreement Obligations, approved by the Credit Agreement Collateral Agent in respect of the equivalent provision in the agreements relating to the Applicable Credit Agreement.  
d.In addition to and not in lieu of the foregoing (and subject to the terms of Section 4.14), if any Issuer of any Investment Property included in the Collateral is organized under the law of, or has its chief executive office in, a jurisdiction outside of the United States, each Grantor shall take such additional actions (or use commercially reasonable efforts to take such actions if the Issuer is not a Subsidiary), including causing the Issuer to register the pledge on its books and records, as may be reasonably requested by the Collateral Trustee pursuant to an Act of Required Collateral Trust Holders or, if prior to the Discharge of Credit Agreement Obligations, if requested by the Credit Agreement Collateral Agent in respect of the equivalent provisions in the agreements relating to the Applicable Credit Agreement, under the laws of such jurisdiction to insure the validity, perfection and priority of the security interest of the Collateral Trustee (or its bailee or agent).  
e.Any Indebtedness of any Subsidiary that is not a Loan Party owing to any Co-Issuer or any Subsidiary that is a Grantor in excess of $1,000,000 individually and $5,000,000 in the aggregate (with respect to which the actions specified in this Section 4.1(e) have not been taken) shall be reasonably 

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promptly evidenced by a promissory note or other instrument, and such note or instrument shall be promptly pledged and delivered to the Collateral Trustee (or its bailee or agent), duly endorsed in a manner satisfactory to the Collateral Trustee or, if prior to the Discharge of Credit Agreement Obligations, approved by the Credit Agreement Collateral Agent in respect of the equivalent provision in the agreements relating to the Applicable Credit Agreement. 
4.2Maintenance of Insurance
a.  Such Grantor will maintain all insurance policies required under any Collateral Trust Parity Lien Document.  All insurance shall provide that the issuing insurer will endeavor to provide at least 30 days written notice to the Collateral Trustee of any cancellation of such policy.
(b)    Such Grantor will deliver to the Collateral Trustee on behalf of the Secured Parties, (i) with ten (10) Business Days after the Applicable Issue Date, a certificate dated the date of delivery showing the amount and types of insurance coverage as of such date, (ii) upon the reasonable request of the Collateral Trustee from time to time, reasonably detailed information as to the insurance carried, (iii) promptly following receipt of notice from any insurer, a copy of any notice of cancellation or material adverse change in coverage from that existing on the Applicable Issue Date, (iv) promptly upon receipt thereof, notice of any cancellation or nonrenewal of coverage by such Grantor and (v) promptly after such information is available to such Grantor, reasonably detailed information as to any claim for an amount in excess of $1,000,000 with respect to any property and casualty insurance policy maintained by such Grantor.  The Applicable Controlling Agent shall be named as additional insured on all such liability insurance policies of such Grantor and the Applicable Controlling Agent shall be named as loss payee on all property and casualty insurance policies of such Grantor (except to the extent otherwise agreed by the Applicable Controlling Agent in the exercise of its reasonable discretion); provided that after the Discharge of Credit Agreement Obligations, the Collateral Trustee shall be named as additional insured and loss payee on such liability, property and casualty insurance policies, as applicable.

4.3Payment of Obligations
.  Except as would not reasonably be expected to have a Material Adverse Effect, such Grantor shall pay and discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all taxes, assessments and governmental charges or levies imposed upon the Collateral or in respect of income or profits therefrom, as well as all claims of any kind (including claims for labor, materials and supplies) against or with respect to the Collateral, except that no such charge need be paid if the amount or validity thereof is currently being contested in good faith by appropriate proceedings, reserves in conformity with GAAP with respect thereto have been provided on the books of such Grantor and such proceedings could not reasonably be expected to result in the sale, forfeiture or loss of any material portion of the Collateral or any interest therein.
4.4Compliance with Terms
.  Except as would not reasonably be expected to have a Material Adverse Effect, each Grantor will perform and comply in all material respects with all obligations in respect of the Collateral and all material agreements relating to the Collateral to which it is a party or by which it is bound.  
4.5Disposition of Collateral
.  No Grantor will sell, lease, transfer or otherwise dispose of the Collateral except for sales, leases, transfers and other dispositions permitted under the Collateral Parity Lien Documents.  
4.6Maintenance of Perfected Security Interest; Further Documentation
.  
a.    Subject to the terms of Section 4.14, such Grantor shall maintain each of the security interests created by this Agreement as a perfected security interest (excluding, other 

19

than to the extent such Grantor so maintains the security agreements under the Applicable Credit Agreement, under foreign laws) having at least the priority described in Section 3(g) and shall defend such security interest against the claims and demands of all persons whomsoever, subject to the provisions of Section 5.15.
b.Such Grantor shall furnish to the Secured Parties from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the assets and property of such Grantor as the Collateral Trustee may reasonably request (but not more frequently than once per quarter), all in reasonable detail.
c.Subject to the terms of Section 4.14, at any time and from time to time, upon the written request of the Collateral Trustee, or if prior to the Discharge of Credit Agreement Obligations, if requested by the Credit Agreement Collateral Agent in respect of the equivalent provision in the agreements relating to the Applicable Credit Agreement, and at the sole expense of such Grantor, such Grantor shall promptly and duly authorize, execute and deliver, and have recorded, such further instruments and documents and take such further actions as the Collateral Trustee or the Credit Agreement Collateral Agent, as applicable, may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, including, the filing of any financing or continuation statements under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security interests created hereby and (ii) in the case of Investment Property and any other relevant Collateral (in each case, other than Deposit Accounts and Securities Accounts), taking any actions necessary to enable the Collateral Trustee (or its bailee or agent) to obtain “control” (within the meaning of the applicable Uniform Commercial Code) with respect thereto.
4.7Changes in Locations, Name, Jurisdiction of Incorporation, etc
.  Such Grantor agrees to furnish prompt written notice to the Collateral Trustee of the following:
a.to the extent furnished to the Credit Agreement Collateral Agent, changes in the location of Inventory or Equipment in excess of $1,000,000 (other than mobile goods) to a location other than those listed on Schedule 3(j);
b.changes to its legal name, jurisdiction of organization or the location of its chief executive office or sole place of business from that referred to in Section 3(i); or
(c)    changes its legal name, identity or structure to such an extent that any financing statement filed by the Collateral Trustee in connection with this Agreement would become misleading.

Such Grantor shall deliver to the Collateral Trustee any duly authorized and, where required, executed copies of all additional financing statements and other documents reasonably requested by the Collateral Trustee, or if prior to the Discharge of Credit Agreement Obligations, if requested by the Credit Agreement Collateral Agent in respect of the equivalent provision in the agreements relating to the Applicable Credit Agreement, to maintain the validity, perfection and priority of the security interests provided for herein.  

4.8Notices
.  Such Grantor shall advise the Collateral Trustee promptly, in reasonable detail, of:
a.any Lien (other than any Lien permitted by the Collateral Trust Parity Lien Documents) on any of the Collateral which would adversely affect the ability of the Collateral Trustee to exercise any of its remedies hereunder; and
b.of the occurrence of any other event which could reasonably be expected to have a material adverse effect on the aggregate value of the Collateral or on the security interests created hereby.
4.9Investment Property

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.  
a.   If such Grantor shall become entitled to receive or shall receive any stock or other ownership certificate (including any certificate representing a stock dividend or a distribution in connection with any reclassification, increase or reduction of capital or any certificate issued in connection with any reorganization), option or rights in respect of the Equity Interests in any Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any shares of or other ownership interests in the Pledged Securities, or otherwise in respect thereof, such Grantor shall accept the same as the agent of the Secured Parties, hold the same in trust for the Secured Parties deliver the same forthwith to the Collateral Trustee (or its bailee or agent) in the exact form received, duly endorsed by such Grantor to the Collateral Trustee (or its bailee or agent), if required, together with an undated stock power or similar instrument of transfer covering such certificate duly executed in blank by such Grantor, to be held by the Collateral Trustee (or its bailee or agent), subject to the terms hereof, as additional collateral security for the Collateral Trust Parity Lien Obligations.  Promptly thereafter, such Grantor shall deliver to the Collateral Trustee a written supplement to Schedule 3(k)(i) and Schedule 3(k)(ii), as applicable, that shall accurately reflect, as of the date of delivery, the Pledged Securities of such Grantor and, with respect to Pledged Equity Interests, the percentage of issued and outstanding shares of stock, percentage of membership interests, percentage of partnership interests or percentage of beneficial interests of the respective Issuers thereof that are subsidiaries of such Grantor.  While a Collateral Trust Parity Lien Default exists, any sums paid upon or in respect of the Pledged Securities upon the liquidation or dissolution of any Issuer shall be paid over to the Collateral Trustee (or its bailee or agent) to be held by it hereunder as additional collateral security for the Collateral Trust Parity Lien Obligations, and in case any distribution of capital shall be made on or in respect of the Pledged Securities or any property shall be distributed upon or with respect to the Pledged Securities pursuant to the recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the property so distributed shall, unless otherwise subject to a perfected security interest in favor of the Collateral Trustee (or its bailee or agent), be delivered to the Collateral Trustee (or its bailee or agent) to be held by it hereunder as additional collateral security for the Collateral Trust Parity Lien Obligations.  While a Collateral Trust Parity Lien Default exists, if any sums of money or property so paid or distributed in respect of the Pledged Securities shall be received by such Grantor, such Grantor shall, until such money or property is paid or delivered to the Collateral Trustee (or its bailee or agent), hold such money or property in trust for the Collateral Trust Parity Lien Secured Parties, segregated from other funds of such Grantor, as additional collateral security for the Collateral Trust Parity Lien Obligations.
b.Without the prior written consent of the Collateral Trustee (or the written consent of the Credit Agreement Collateral Agent in accordance with Section 7.1(b)(3) of the Collateral Trust Agreement), such Grantor shall not (i) vote to enable, or take any other action to permit, any Issuer to issue any stock, partnership interests, limited liability company interests or other equity securities of any nature or to issue any other securities convertible into or granting the right to purchase or exchange for any stock, partnership interests, limited liability company interests or other equity securities of any nature of any Issuer (except, in each case, pursuant to a transaction permitted under the Collateral Trust Parity Lien Documents), (ii) sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, any of the Investment Property or Proceeds thereof or any interest therein (except, in each case, pursuant to a transaction permitted under the Collateral Trust Parity Lien Documents), (iii) create, incur or permit to exist any Lien or option in favor of, or any claim of any person with respect to, any of the Investment Property or Proceeds thereof, or any interest therein, except for the security interests created by this Agreement or any Lien permitted thereon pursuant to the Collateral Trust Parity Lien Documents, (iv) enter into any agreement or undertaking restricting the right or ability of such Grantor or the 

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Collateral Trustee (or its bailee or agent) to sell, assign or transfer any of the Investment Property or Proceeds thereof or any interest therein (except, in each case, pursuant to a transaction permitted under the Collateral Trust Parity Lien Documents) or (v) cause or permit any subsidiary that is the Issuer of, or otherwise consent to any Issuer of, any Pledged Partnership Interests or Pledged LLC Interests which are not securities (for purposes of the New York UCC) on the date hereof to elect or otherwise take any action to cause such Pledged Partnership Interests or Pledged LLC Interests to be treated as securities for purposes of the New York UCC; provided, however, notwithstanding the foregoing, if any Issuer of any Pledged Partnership Interests or Pledged LLC Interests takes any such action in violation of the provisions in this clause (v), such Grantor shall promptly notify the Collateral Trustee in writing of any such election or action and, in such event, shall take all steps reasonably requested by the Collateral Trustee or if prior to the Discharge of Credit Agreement Obligations, if reasonably requested by the Credit Agreement Collateral Agent in respect of the equivalent provision in the agreements relating to the Applicable Credit Agreement, to establish the  “control” of the Collateral Trustee (or its bailee or agent) thereof.
c.In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it shall be bound by the terms of this Agreement relating to the Pledged Securities issued by it and shall comply with such terms insofar as such terms are applicable to it, (ii) it shall notify the Collateral Trustee promptly in writing of the occurrence of any of the events described in Section 4.9(a) with respect to the Pledged Securities issued by it and (iii) the terms of Sections 5.3(c) and 5.7 shall apply to it, mutatis mutandis, with respect to all actions that may be required of it pursuant to Section 5.3(c) or 5.7 with respect to the Pledged Securities issued by it.  In addition, each Grantor which is either an Issuer or an owner of any Pledged Security hereby consents to the grant by each other Grantor of the security interest hereunder in favor of the Collateral Trustee and to the transfer of any Pledged Security to the Collateral Trustee (or its bailee or agent) or its nominee while a Collateral Trust Parity Lien Default is continuing and to the substitution of the Collateral Trustee (or its bailee or agent) or its nominee as a partner, member or shareholder of the Issuer of the related Pledged Security.
d.If such Grantor shall maintain cash, securities or other assets in excess of $10,000 in any Securities Account, Commodities Account or Deposit Account other than those listed on Schedule 3(k)(iii) hereto, to the extent delivered to the Credit Agreement Collateral Agent, such Grantor shall concurrently deliver to the Collateral Trustee an amendment to Schedule 3(k)(iii) that shall accurately reflect such accounts maintained by such Grantor.
e.To the extent that the terms of any uncertificated Pledged LLC Interests and Pledged Partnership Interests do not expressly provide that they are securities governed by Article 8 of the Uniform Commercial Code in effect from time to time in the “issuer's jurisdiction” of the respective Issuer thereof (as such term is defined in the Uniform Commercial Code in effect in such jurisdiction), such Grantor shall inform the Collateral Trustee.
f.To the extent that the terms of any certificated Pledged LLC Interests and Pledged Partnership Interests do not expressly provide that they are securities governed by Article 8 of the New York UCC, such Grantor shall inform the Collateral Trustee.   
4.10Receivables
.  
 Other than in the ordinary course of business consistent with its past practice and except as would not reasonably be expected to have a Material Adverse Effect, such Grantor shall not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could adversely affect the value thereof.
4.11Intellectual Property

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a.  Such Grantor (either itself or through licensees) shall, in a manner reasonably commensurate with past practice, (i) continue to use each Trademark material to its business in order to maintain such Trademark in full force free from any claim of abandonment for non-use, (ii) maintain the quality of products and services offered under such Trademark and take all necessary steps to ensure that all licensed users of such Trademark maintain such quality, (iii) not adopt or use any mark which is confusingly similar or a colorable imitation of such Trademark unless the Collateral Trustee, for the ratable benefit of the Secured Parties, shall obtain a perfected security interest in such mark pursuant to this Agreement and the Intellectual Property Security Agreement, and (iv) not (and not permit any licensee or sublicensee thereof to) knowingly do any act or knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way.
b.Such Grantor (either itself or through licensees) shall not do any act, or omit to do any act, whereby any Patent owned by such Grantor material to its business may become forfeited, abandoned or dedicated to the public.
c.Such Grantor (either itself or through licensees) shall not knowingly (and shall not knowingly permit any licensee or sublicensee thereof to) do any act or omit to do any act whereby any Copyrights owned by such Grantor and material to its business could reasonably be expected to become invalidated or otherwise impaired.  Such Grantor shall not (either itself or through licensees) knowingly do any act whereby any such Copyrights may fall into the public domain.
d.Such Grantor (either itself or through licensees) shall not knowingly use any Company Intellectual Property in a manner that infringes, misappropriates or violates in any material respect the intellectual property rights of any other person.
e.To the extent such Grantor has reasonably determined that it is commercially practicable to do so, such Grantor (either itself or through licensees) shall use proper statutory notice in connection with the use of the Material Intellectual Property.
f.Such Grantor shall notify the Collateral Trustee promptly (and in any event not later than the date on which such notice is provided to the Credit Agreement Collateral Agent) if it knows, or has reason to know, that any application or registration relating to any Material Intellectual Property may become forfeited, abandoned or dedicated to the public, or of any adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court or tribunal in any country, but excluding non-final office actions of the United States Patent and Trademark Office) regarding such Grantor's ownership of, or the validity of, any Material Intellectual Property included in the Owned Intellectual Property or such Grantor's right to register the same or to own and maintain the same.
g.Promptly upon such Grantor's acquisition or creation of any copyrightable work, invention, trademark or other similar property that is material to the business of such Grantor, apply for registration thereof with the United States Copyright Office, the United States Patent and Trademark Office and any other appropriate office, if, in each case, in such  Grantor's reasonable business judgment it is appropriate to do so.  Whenever such Grantor, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any Material Intellectual Property included in the Owned Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, such Grantor shall report such filing to the Collateral Trustee within ten Business Days after the last day of the fiscal quarter in which such filing occurs.  Upon request of the Collateral Trustee, such Grantor shall execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers as the Collateral Trustee may request to evidence the Secured Parties' security interest in any Copyright, Patent, Trademark or other Owned Intellectual Property of such Grantor or, to the extent such Grantor has recorded its interests therein with the United States Copyright Office or the United States Patent and Trademark Office, any Intellectual Property exclusively licensed to such Grantor, and in each case the 

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goodwill and general intangibles of such Grantor relating thereto or represented thereby.
h.Such Grantor shall take all reasonable and necessary steps, including in any proceeding before the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of any item of Material Intellectual Property included in the Owned Intellectual Property, including the payment of required fees and taxes, the filing of responses to office actions issued by the United States Patent and Trademark Office and the United States Copyright Office, the filing of applications for renewal or extension, the filing of affidavits of use and affidavits of incontestability, the filing of divisional, continuation, continuation-in-part, reissue, and renewal applications or extensions, the payment of maintenance fees, and the participation in interference, reexamination, opposition, cancellation, infringement and misappropriation proceedings, unless such Grantor shall have previously determined that such use or the pursuit or maintenance of such Intellectual Property is no longer desirable in the conduct of such Grantor's business and that the loss thereof could not reasonably be expected to have a Material Adverse Effect.
i.Such Grantor (either itself or through licensees) shall not, without the prior written consent of the Collateral Trustee acting pursuant to an Act of Required Collateral Trust Holders (or the consent of the Credit Agreement Collateral Agent in accordance with Section 7.1(b)(3) of the Collateral Trust Agreement), discontinue use of or otherwise abandon any of its Material Intellectual Property, unless such Grantor shall have previously determined that such use or the pursuit or maintenance of such Intellectual Property is no longer desirable in the conduct of such Grantor's business and that the loss thereof could not reasonably be expected to have a Material Adverse Effect.
j.In the event that any item of Material Intellectual Property that is Owned Intellectual Property is infringed, misappropriated or diluted in any material respect by a third party, such Grantor shall (i) take such actions as such Grantor shall reasonably deem appropriate under the circumstances to protect such Intellectual Property which may include suing for infringement, misappropriation or dilution, seeking injunctive relief where appropriate and seeking to recover any and all damages for such infringement, misappropriation or dilution and (ii) if such Intellectual Property is of material economic value, promptly notify the Collateral Trustee after it learns thereof.
k.Such Grantor agrees that, should it obtain an ownership interest in any item of Intellectual Property which is not, as of the Applicable Issue Date, a part of the Collateral (the “After-Acquired Intellectual Property”), (i) the provisions of Section 2 shall automatically apply thereto, and any such After-Acquired Intellectual Property, and in the case of Trademarks, the goodwill of the business connected therewith or symbolized thereby, shall automatically become part of the Collateral, and (ii) with respect to any After-Acquired Intellectual Property that is Owned Intellectual Property, exclusively Licensed Intellectual Property, or otherwise Material Intellectual Property, it shall give prompt (and, in any event within ten Business Days after the last day of the fiscal quarter in which such Grantor acquires such ownership interest) written notice thereof to the Collateral Trustee in accordance herewith, and provide the Collateral Trustee promptly (and, in any event within ten Business Days after the last day of the fiscal quarter in which such Grantor acquires such ownership interest) with an amended Schedule 3(e)(i) and take the actions specified in Section 4.11(m). 
l.Such Grantor agrees to execute an Intellectual Property Security Agreement with respect to its Intellectual Property in substantially the form of Exhibit B-1 in order to record the security interest granted herein to the Collateral Trustee for the ratable benefit of the Secured Parties with the United States Patent and Trademark Office or the United States Copyright Office.
m.Such Grantor agrees to execute an After-Acquired Intellectual Property Security Agreement with respect to its After-Acquired Intellectual Property in substantially the form of Exhibit B-2 in order to record the security interest granted herein to the Collateral Trustee for the ratable benefit of the Secured Parties with the United States Patent and Trademark Office or the United States Copyright Office.  

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n.Such Grantor shall take all steps reasonably necessary to protect the secrecy of all Trade Secrets material to its business, including entering into confidentiality agreements with employees and labeling and restricting access to secret information and documents.
4.12Commercial Tort Claims
.  Such Grantor shall advise the Collateral Trustee promptly of any Commercial Tort Claim held by such Grantor individually or in the aggregate in excess of $1,000,000 for which such Grantor has filed a complaint in a court of competent jurisdiction and upon the request of the Collateral Trustee, or if prior to the Discharge of Credit Agreement Obligations, if requested by the Credit Agreement Collateral Agent in respect of the equivalent provision in the agreements relating to the Applicable Credit Agreement, shall promptly execute a supplement to this Agreement in a form effective to grant a security interest in such Commercial Tort Claim to the Collateral Trustee for the ratable benefit of the Secured Parties.

4.13No Interference
.  Each Grantor agrees that it will not interfere with any right, power and remedy of the Collateral Trustee (or its bailee or agent) provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Collateral Trustee of any one or more of such rights, powers and remedies.  
4.14Perfection of Certain Collateral
.  No Grantor shall be required to establish the Collateral Trustee's “control” (within the meanings of Sections 8-106(d)(2) or 9-104(a)(2) of the New York UCC, respectively) over any Securities Account or Deposit Account.  It is the further understanding of the parties (other than the Collateral Trustee and the Notes Trustee, which make no such determination) that the security interests granted pursuant to this Agreement may not be valid or fully perfected in certain assets with respect to which the Collateral Trustee acting pursuant to an Act of Required Collateral Trust Holders (or the Credit Agreement Collateral Agent in accordance with Section 7.1(b)(3) of the Collateral Trust Agreement) (in consultation with the Company) has determined that the burden of obtaining perfection of a security interest therein is excessive in relation to the benefits to be obtained by the Secured Parties.  
		
	Section 5.
	REMEDIAL PROVISIONS

5.1Certain Matters Relating to Receivables
a.   At any time and from time to time (but if a Collateral Trust Parity Lien Default does not exist, not more frequently than once per fiscal year), upon the Collateral Trustee's request, or if prior to the Discharge of Credit Agreement Obligations, if requested by the Credit Agreement Collateral Agent in respect of the equivalent provision in the agreements relating to the Applicable Credit Agreement, and at the expense of the relevant Grantor, such Grantor shall cause independent public accountants or others satisfactory to the Collateral Trustee or the Credit Agreement Collateral Agent, as the case may be, to furnish to the Collateral Trustee reports showing reconciliations, aging and test verifications of, and trial balances for, the Receivables that are included in the Collateral in any manner and through any medium that the Collateral Trustee or the Credit Agreement Collateral Agent, as the case may be, reasonably considers advisable.
b. If required by the Collateral Trustee at any time after the occurrence and during the continuance of a Collateral Trust Parity Lien Default, any payments of Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any event, within two Business Days) deposited by such Grantor in the exact form received, duly endorsed by such Grantor to the Collateral Trustee if required, in a Collateral Account maintained under the sole dominion and control of the Collateral Trustee, subject to withdrawal by the Collateral Trustee for the account of the Secured Parties only as provided in Section 5.5, and (ii) until so turned over, shall be held by such Grantor in trust for the Secured Parties, segregated from other funds of such Grantor.  Each such deposit of Proceeds of Receivables shall, if required by the 

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Collateral Trustee, be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit.  
c.If required by the Collateral Trustee at any time after the occurrence and during the continuance of a Collateral Trust Parity Lien Default, each Grantor shall deliver to the Collateral Trustee all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the Receivables that are included in the Collateral, including all original orders, invoices and shipping receipts.
5.2Communications with Obligors; Grantors Remain Liable
.  
a.The Collateral Trustee in its own name or in the name of others may at any time after the occurrence and during the continuance of a Collateral Trust Parity Lien Default upon prior notice to the Grantors communicate with obligors under the Receivables and parties to the Contracts to verify with them to the Collateral Trustee's satisfaction the existence, amount and terms of any Receivables or Contracts.
b.After the occurrence and during the continuance of a Collateral Trust Parity Lien Default, the Collateral Trustee may upon written notice to the applicable Grantor, notify, or require any Grantor to notify, the Account Debtor or counterparty to make all payments under the Receivables and/or Contracts directly to the Collateral Trustee;
c.Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each of the Receivables and Contracts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto.  No Secured Party shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) or Contract by reason of or arising out of this Agreement or the receipt by any Secured Party of any payment relating thereto, nor shall any Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto) or Contract, to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.
5.3Pledged Securities
a.  Unless a Collateral Trust Parity Lien Default shall have occurred and be continuing and the Collateral Trustee shall have given notice to the relevant Grantor of the Collateral Trustee's intent to exercise its corresponding rights pursuant to Section 5.3(b), each Grantor shall be permitted to receive all cash dividends paid in respect of the Pledged Equity Interests and all payments made in respect of the Pledged Notes, in each case paid in the normal course of business of the relevant Issuer and consistent with past practice, to the extent permitted in the Indenture, and to exercise all voting and corporate rights with respect to the Pledged Securities; provided, however, that no vote shall be cast or corporate or other ownership right exercised or other action taken which, in the Collateral Trustee's reasonable judgment, would impair the Collateral or which would be inconsistent with or result in any violation of any provision of this Agreement or any other Collateral Parity Lien Document.
b.If a Collateral Trust Parity Lien Default shall occur and be continuing and the Collateral Trustee shall have given the notice referred to in Section 5.3(a):  (i)  all rights of each Grantor to exercise or refrain from exercising the voting and other consensual rights which it would otherwise be entitled to exercise pursuant hereto shall cease and all such rights shall thereupon become vested in the Collateral Trustee who shall thereupon have the sole right, but shall be under no obligation, to exercise or refrain from exercising such voting and other consensual rights and (ii) the Collateral Trustee shall have the right, without notice to any Grantor, to transfer all or any portion of the Investment Property to its name or the name of its nominee or agent.  In addition, the Collateral Trustee shall have the right at any 

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time, without notice to any Grantor, to exchange any certificates or instruments representing any Investment Property for certificates or instruments of smaller or larger denominations.  In order to permit the Collateral Trustee to exercise the voting and other consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder each Grantor shall promptly execute and deliver (or cause to be executed and delivered) to the Collateral Trustee all proxies, dividend payment orders and other instruments as the Collateral Trustee may from time to time reasonably request and each Grantor acknowledges that the Collateral Trustee may utilize the power of attorney set forth herein.
c.Each Grantor hereby authorizes and instructs each Issuer of any Pledged Securities pledged by such Grantor hereunder to (i) comply with any instruction received by it from the Collateral Trustee in writing that (x) states that a Collateral Trust Parity Lien Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying, and (ii) upon any such instruction following the occurrence and during the continuance of a Collateral Trust Parity Lien Default, pay any dividends or other payments with respect to the Investment Property, including Pledged Securities, directly to the Collateral Trustee.    
5.4Proceeds to be Turned Over To Collateral Trustee
.  In addition to the rights of the Secured Parties specified in Section 5.1 with respect to payments of Receivables, if a Collateral Trust Parity Lien Default shall occur and be continuing and the Collateral Trustee shall have given the notice referred to in Section 5.3(a), all Proceeds received by any Grantor consisting of cash, cash equivalents, checks and other near-cash items shall be held by such Grantor in trust for the Secured Parties, and shall, at the request of the Collateral Trustee, forthwith upon receipt by such Grantor, be turned over to the Collateral Trustee in the exact form received by such Grantor (duly endorsed by such Grantor to the Collateral Trustee, if required).  All Proceeds received by the Collateral Trustee hereunder shall be held by the Collateral Trustee in a Collateral Account maintained under its sole dominion and control.  All Proceeds while held by the Collateral Trustee in a Collateral Account (or by such Grantor in trust for the Secured Parties) shall continue to be held as collateral security for all the Collateral Trust Parity Lien Obligations and shall not constitute payment thereof until applied as provided in Section 5.5.
5.5Application of Proceeds
. All Proceeds constituting Collateral realized through the exercise by the Collateral Trustee of its remedies hereunder, shall be applied in accordance with Section 3.5 of the Collateral Trust Agreement.
5.6Code and Other Remedies
a.  If a Collateral Trust Parity Lien Default shall occur and be continuing, the Collateral Trustee, on behalf of the Secured Parties, may exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Collateral Trust Parity Lien Obligations, all rights and remedies of a secured party under the New York UCC (whether or not the New York UCC applies to the affected Collateral) or its rights under any other applicable law or in equity.  Without limiting the generality of the foregoing, the Collateral Trustee, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other person (all and each of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, license, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker's board or office of any 

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Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk.  Each Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby waived and released.  Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by applicable 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.  Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days' notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The Collateral Trustee shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Collateral Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  The Collateral Trustee may sell the Collateral without giving any warranties as to the Collateral.  The Collateral Trustee may specifically disclaim or modify any warranties of title or the like.  This procedure will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.  Each Grantor agrees that it would not be commercially unreasonable for the Collateral Trustee to dispose of the Collateral or any portion thereof by using Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets.  Each Grantor hereby waives any claims against the Collateral Trustee arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale, even if the Collateral Trustee accepts the first offer received and does not offer such Collateral to more than one offeree.  Each Grantor further agrees, at the Collateral Trustee's request, to assemble the Collateral and make it available to the Collateral Trustee at places which the Collateral Trustee shall reasonably select, whether at such Grantor's premises or elsewhere.  The Collateral Trustee shall have the right to enter onto the property where any Collateral is located and take possession thereof with or without judicial process.
b.The Collateral Trustee shall apply the net proceeds of any action taken by it pursuant to this Section 5.6, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Secured Parties hereunder, including reasonable attorneys' fees and disbursements, to the payment in whole or in part of the Collateral Trust Parity Lien Obligations and only after such application and after the payment by the Collateral Trustee of any other  required by any provision of law, including Section 9-615(a) of the New York UCC, need the Collateral Trustee account for the surplus, if any, to any Grantor.  If the Collateral Trustee sells any of the Collateral upon credit, the Grantor will be credited only with payments actually made by the purchaser and received by the Collateral Trustee and applied to indebtedness of the purchaser.  In the event the purchaser fails to pay for the Collateral, the Collateral Trustee may resell the Collateral and the Grantor shall be credited with proceeds of the sale.  To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against any Secured Party arising out of the exercise by them of any rights hereunder.  
c.If a Collateral Trust Parity Lien Default shall occur and be continuing, in the event of any disposition of any of the Intellectual Property, the goodwill of the business connected with and symbolized by any Trademarks subject to such Disposition shall be included, and the applicable Grantor shall supply the Collateral Trustee or its designee with such Grantor's know-how and expertise, and with documents and things embodying or otherwise relating to any such Intellectual Property subject to such Disposition, and such Grantor's customer lists and other records and documents relating to such 

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Intellectual Property and to the manufacture, distribution, advertising and sale of products and services.
5.7Registration Rights
a.  If the Collateral Trustee shall determine to exercise its right to sell any or all of the Pledged Equity Interests or the Pledged Debt Securities pursuant to Section 5.6 and (acting pursuant to an Act of Required Collateral Trust Holders) elects to have the Pledged Equity Interests or the Pledged Debt Securities, or that portion thereof to be sold, registered under the provisions of the Securities Act, the relevant Grantor shall cause each Issuer thereof that is a Subsidiary or shall use commercially reasonable efforts to cause each other Issuer thereof to (i) execute and deliver, and cause the directors and officers of such Issuer to execute and deliver, all such instruments and documents, and do or cause to be done all such other acts as may be reasonably necessary or advisable to register the Pledged Equity Interests or the Pledged Debt Securities, or that portion thereof to be sold, under the provisions of the Securities Act, (ii) use commercially reasonable efforts to cause the registration statement relating thereto to become effective and to remain effective for a period of one year from the date of the first public offering of the Pledged Equity Interests or the Pledged Debt Securities, or that portion thereof to be sold, and (iii) make all amendments thereto and/or to the related prospectus which are reasonably necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations of the SEC applicable thereto.  Each Grantor agrees to use commercially reasonable efforts to cause such Issuer to comply with the provisions of the securities or “Blue Sky” laws of any and all jurisdictions which the Collateral Trustee shall designate and to make available to its security holders, as soon as practicable, an earnings statement (which need not be audited) which will satisfy the provisions of Section 11(a) of the Securities Act.
b.Each Grantor recognizes that the Collateral Trustee may be unable to effect a public sale of any or all the Pledged Equity Interests or the Pledged Debt Securities, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.  Each Grantor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner.  The Collateral Trustee shall be under no obligation to delay a sale of any of the Pledged Equity Interests or the Pledged Debt Securities for the period of time necessary to permit the Issuer thereof to register such securities for public sale under the Securities Act, or under applicable state securities laws, even if such Issuer would agree to do so.
c.Each Grantor agrees to use its commercially reasonable efforts to do or cause to be done all such other acts as may be necessary to make such sale or sales of all or any portion of the Pledged Equity Interests or the Pledged Debt Securities pursuant to this Section 5.7 valid and binding and in compliance with any and all other applicable Requirements of Law.  Each Grantor further agrees that a breach of any of the covenants contained in this Section 5.7 will cause irreparable injury to the Secured Parties, that the Secured Parties have no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 5.7 shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no Collateral Trust Parity Lien Default has occurred and is continuing under the Indenture or any other Collateral Trust Parity Lien Document or a defense of payment.
5.8Deficiency
.  Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay its Collateral Trust Parity Lien Obligations and the fees and disbursements of any attorneys employed by any Secured Party to collect such deficiency.

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5.9Grant of Intellectual Property License
.  For the purpose of enabling the Collateral Trustee, during the continuance of a Collateral Trust Parity Lien Default, to exercise rights and remedies under Section 5 hereof at such time as the Collateral Trustee shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to the Collateral Trustee, to the extent licensable, an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to such Grantor), subject, in the case of Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor to avoid the risk of invalidation of such Trademarks, to use or sublicense any of the Intellectual Property now owned or hereafter acquired, developed or created by such Grantor, wherever the same may be located.  Such license shall include access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout hereof.
		
	Section 6.
	THE COLLATERAL TRUSTEE

6.1Collateral Trustee's Appointment as Attorney-in-Fact, etc
.  
a.Each Grantor hereby irrevocably constitutes and appoints the Collateral Trustee and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, such appointment being coupled with an interest, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the Collateral Trustee the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the following:
i.in the name of such Grantor or its own name, or otherwise, take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Receivable or Contract or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Collateral Trustee for the purpose of collecting any and all such moneys due under any Receivable or Contract or with respect to any other Collateral whenever payable;
ii.in the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as the Collateral Trustee may request to evidence the Secured Parties' security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby;
iii.pay or discharge taxes and Liens levied or placed on or threatened against the Collateral, effect any repairs or any insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof;
iv.execute, in connection with any sale provided for in Section 5.7 or 5.8, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and
v.(1) direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Collateral Trustee or as the Collateral Trustee shall direct; (2) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (3) sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (4) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any 

30

portion thereof and to enforce any other right in respect of any Collateral; (5) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (6) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the Collateral Trustee may deem appropriate; (7) assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for such term or terms, on such conditions, and in such manner, as the Collateral Trustee shall in its sole discretion determine; and (8) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Collateral Trustee were the absolute owner thereof for all purposes, and do, at the Collateral Trustee's option and such Grantor's expense, at any time, or from time to time, all acts and things which the Collateral Trustee deems necessary to protect, preserve or realize upon the Collateral and the Secured Parties' security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might do.
Anything in this Section 6.1(b) to the contrary notwithstanding, the Collateral Trustee agrees that, except as provided in Section 6.1(c), it will not exercise any rights under the power of attorney provided for in this Section 6.1(b) unless a Collateral Trust Parity Lien Default shall have occurred and be continuing.
b.If any Grantor fails to perform or comply with any of its agreements contained herein, the Collateral Trustee, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement; provided, however, that unless a Collateral Trust Parity Lien Default has occurred and is continuing or time is of the essence, the Collateral Trustee shall not exercise this power without first making demand on the Grantor and the Grantor failing to immediately comply therewith.
c.Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.
6.2Execution of Financing Statements
.  Each Grantor agrees to file or record financing or continuation statements, and amendments thereto, and other filing or recording documents or instruments with respect to the Collateral in such form and in such offices in the United States (other than to the extent such Grantor makes filings or recordations outside the United States under the Applicable Credit Agreement) as appropriate to perfect or maintain the perfection of the security interests of the Collateral Trustee under this Agreement (in each case subject to and in accordance with Section 4.14).  Each Grantor agrees that such financing statements may describe the collateral in the same manner as described in the Security Documents or as “all assets” or “all personal property,” whether now owned or hereafter existing or acquired or such other description as is necessary or advisable.  A photographic or other reproduction of this Agreement shall be sufficient as a financing statement or other filing or recording document or instrument for filing or recording in any jurisdiction.
6.3Authority of Collateral Trustee
.  Each Grantor acknowledges that the rights and responsibilities of the Collateral Trustee under this Agreement with respect to any action taken by the Collateral Trustee or the exercise or non-exercise by the Collateral Trustee of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the Collateral Trustee and the other Secured Parties, be governed by the Collateral Trust Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between the Collateral Trustee and the Grantors, the Collateral Trustee shall be conclusively presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority. 

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6.4Immunities of the Collateral Trustee.  The Collateral Trustee's rights and obligations hereunder are subject to Article 5 of the Collateral Trust Agreement in all respects.  

		
	Section 7.
	ABL INTERCREDITOR AGREEMENT AND COLLATERAL TRUST AGREEMENT

7.1ABL Intercreditor Agreement
.  Notwithstanding anything to the contrary contained in this Agreement or any other Parity Lien Document, if the Borrower or any other Grantor incurs any Priority Lien Debt in connection with a Future ABL Facility, all rights and obligations of all parties to this Agreement will be subject to the ABL Intercreditor Agreement and, in the event of any conflict between the provisions of this Agreement and the provisions of the ABL Intercreditor Agreement, the provisions of the ABL Intercreditor Agreement will control.  Notwithstanding anything herein to the contrary, prior to the Discharge of Priority Lien Obligations (or a term of similar import, as defined in the ABL Intercreditor Agreement), the requirements of this Agreement to deliver Current Asset Collateral, or control thereof, to the Collateral Trustee or register the Collateral Trustee as the registered owner of any Current Asset Collateral shall be deemed satisfied by delivery of such Current Asset Collateral, or control thereof, to, or the registration of such Current Asset Collateral in the name of, the Priority Lien Representative.

7.2Collateral Trust Agreement 
. In the event of any conflict or inconsistency between the provisions of this Agreement and the Collateral Trust Agreement, the provisions of the Collateral Trust Agreement shall control, provided that in the event of inconsistency between the provisions of the Collateral Trust Agreement and the ABL Intercreditor Agreement, the ABL Intercreditor Agreement shall control. Notwithstanding anything herein to the contrary, prior to the Discharge of Credit Agreement Obligations, (x) the requirements of this Agreement to deliver Collateral, or control thereof, to the Collateral Trustee or register the Collateral Trustee as the registered owner of any Collateral shall be deemed satisfied by delivery of such Collateral, or control thereof, to, or the registration of such Collateral in the name of, the Applicable Controlling Agent and (y) the Credit Agreement Collateral Agent may exercise all remedies of the Collateral Trustee hereunder in accordance with Section 3.2(e) of the Collateral Trust Agreement.

		
	Section 8.
	MISCELLANEOUS

8.1Amendments in Writing
.  None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed by each affected Grantor and the Collateral Trustee, subject to any consents required under Section 7.1 of the Collateral Trust Agreement; provided that any provision of this Agreement imposing obligations on any Grantor may be waived by the Collateral Trustee in a written instrument executed by the Collateral Trustee.

8.2Notices
.  All notices, requests and demands to or upon the Collateral Trustee or any Grantor hereunder shall be effected in the manner provided for in Section 7.9 of the Collateral Trust Agreement; provided that any such notice, request or demand to or upon any Grantor shall be addressed to such Grantor at its notice address set forth on Schedule 8.2.
8.3No Waiver by Course of Conduct; Cumulative Remedies
.  No Secured Party shall by any act (except by a written instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Collateral Trust Parity Lien Default.  No failure to exercise, nor any delay in exercising, on the part of any Secured Party, any right, power or privilege hereunder shall operate as a 

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waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by any Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which such Secured Party would otherwise have on any future occasion.  The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.
8.4Enforcement Expenses; Indemnification
a.  Each Grantor agrees to pay or reimburse the fees and expenses contemplated by Section 7.12 of the Collateral Trust Agreement.
b.Each Grantor, jointly and severally with the other Grantors, agrees to pay, and to hold the Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement to the extent such Grantor would be required to do so pursuant to Section 7.13 of the Collateral Trust Agreement.
c.Each Grantor, jointly and severally with the other Grantors, agrees to pay, and to hold the Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement to the extent such Grantor would be required to do so pursuant to Section 7.13 of the Collateral Trust Agreement.
d.The agreements in this Section shall survive repayment of the Collateral Trust Parity Lien Obligations and all other amounts payable under the Collateral Trust Parity Lien Documents.
8.5Successors and Assigns
.  This Agreement shall be binding upon the successors and assigns of each Grantor and shall inure to the benefit of the Secured Parties and their successors and assigns; provided that no Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the Collateral Trustee, and any attempted assignment without such consent shall be null and void.
8.6[Intentionally Omitted]
8.7Counterparts
.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.
8.8Severability
.  To the extent permitted by law, any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality or enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.  
8.9Section Headings
.  The Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.
8.10Integration

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.  This Agreement, the other Collateral Trust Parity Lien Documents and any separate letter agreements with respect to fees payable to the Collateral Trustee constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.
8.11APPLICABLE LAW
.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

8.12Submission to Jurisdiction; Waivers
. All judicial proceedings brought against any party hereto arising out of or relating to this Agreement may be brought in any state or federal court of competent jurisdiction in the State, County and City of New York.  By executing and delivering this Agreement, each Grantor, for itself and in connection with its properties, irrevocably:
(a)        accepts generally and unconditionally the nonexclusive jurisdiction and venue of such courts;
(b)        waives any defense of forum non conveniens;
(c)        agrees that service of all process in any such proceeding in any such court may be made by registered or certified mail, return receipt requested, to such party at its address provided in accordance with Section 8.2;
(d)        agrees that service as provided in clause (c) above is sufficient to confer personal jurisdiction over such party in any such proceeding in any such court and otherwise constitutes effective and binding service in every respect; 
(e)        agrees that each party hereto retains the right to serve process in any other manner permitted by law or to bring proceedings against any party in the courts of any other jurisdiction; and
(f)         waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages.
8.13Acknowledgments. 
  Each Grantor hereby acknowledges that 
it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Collateral Trust Parity Lien Documents to which it is a party;
a.no Secured Party has any fiduciary relationship with or duty to any Grantor arising out of or in connection with this Agreement or any of the other Collateral Trust Parity Lien Documents, and the relationship between the Grantors, on the one hand, and the Secured Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and
b.no joint venture is created hereby or by the other Collateral Trust Parity Lien Documents or otherwise exists by virtue of the transactions contemplated hereby among the Secured Parties or among the Grantors and the Secured Parties.
8.14Additional Grantors
.  Each Subsidiary of the Company that is required to become a party to this Agreement pursuant to the applicable provisions of the Collateral Trust Parity Lien Documents or desires to become 

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party to this Agreement pursuant to the Collateral Trust Agreement and the Collateral Trust Parity Lien Documents shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption Agreement.
8.15Releases
a..    (a) The Collateral shall be released from the Liens created hereby and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Collateral Trustee and each Grantor hereunder shall terminate, and all rights to the Collateral shall revert to the Grantors, upon the payment in full of the Collateral Trust Parity Lien Obligations.
b.The Collateral shall otherwise be released from the Liens created hereby on the terms and conditions of and to the extent provided by Section 4 of the Collateral Trust Agreement. 
c.Except as expressly provided in the Collateral Trust Agreement, each Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement originally filed in connection herewith without the prior written consent of the Collateral Trustee, subject to such Grantor's rights under Section 9-509(d)(2) of the New York UCC.
8.16WAIVER OF JURY TRIAL
. Each party to this Agreement waives its rights to a jury trial of any claim or cause of action based upon or arising under this Agreement or any dealings between them relating to the subject matter of this Agreement.  The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this Agreement, including contract claims, tort claims, breach of duty claims and all other common law and statutory claims.  Each party to this Agreement acknowledges that this waiver is a material inducement to enter into a business relationship, that each party hereto has already relied on this waiver in entering into this Agreement, and that each party hereto will continue to rely on this waiver in its related future dealings.  Each party hereto further warrants and represents that it has reviewed this waiver with its legal counsel and that it knowingly and voluntarily waives its jury trial rights following consultation with legal counsel.  This waiver is irrevocable, meaning that it may not be modified either orally or in writing (other than by a mutual written waiver specifically referring to this Section 8.16 and executed by each of the parties hereto), and this waiver will apply to any subsequent amendments, renewals, supplements or modifications of or to this Agreement or to any other documents or agreements relating thereto.  In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.

8.17Reinstatement
.  This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor's assets, and shall continue to be effective or be reinstated, as the case be, if at any time payment and performance of the Collateral Trust Parity Lien Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Collateral Trust Parity Lien Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Collateral Trust Parity Lien Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.
[Remainder of page intentionally left blank]

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

HARLAND CLARKE HOLDINGS CORP.

By: /s/ Peter A. Fera, Jr.     .
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief 
Financial Officer

HARLAND CLARKE CORP.

By: /s/ Peter A. Fera, Jr.     .
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief 
Financial Officer

HARLAND FINANCIAL SOLUTIONS, INC.

By: /s/ Peter A. Fera, Jr.     .
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief 
Financial Officer

SCANTRON CORPORATION

By: /s/ Peter A. Fera, Jr.     .
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief 
Financial Officer

CHECKS IN THE MAIL, INC.

By: /s/ Peter A. Fera, Jr.     .
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief 
Financial Officer

NEW FANEUIL, INC. 

By: /s/ Michael C. Borofsky    
Name: Michael C. Borofsky
Title: Senior Vice President and Secretary

36

FANEUIL, INC.

By: /s/ Michael C. Borofsky    
Name: Michael C. Borofsky
Title: Senior Vice President and Secretary

FANEUIL VIRGINIA LLC

By: /s/ Michael C. Borofsky    
Name: Michael C. Borofsky
Title: Senior Vice President and Secretary

FANEUIL TOLL OPERATIONS LLC

By: /s/ Michael C. Borofsky    
Name: Michael C. Borofsky
Title: Senior Vice President and Secretary

ORIGINAL RESEARCH II LLC

By: /s/ Michael C. Borofsky    
Name: Michael C. Borofsky
Title: Senior Vice President and Secretary

HARLAND FINANCIAL SOLUTIONS INDIA, LLC

By: /s/ Peter A. Fera, Jr.     .
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief 
Financial Officer

HFS RESEARCH & DEVELOPMENT, INC.

By:  /s/ Peter A. Fera, Jr.                
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief
Financial Officer

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HFS SCANTRON HOLDINGS CORP.

By: /s/ Peter A. Fera, Jr.     .
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief 
Financial Officer

JOHN H. HARLAND COMPANY OF PUERTO RICO

By:  /s/ Peter A. Fera, Jr.                
Name: Peter A. Fera, Jr.
Title: Executive Vice President and Chief
Financial Officer

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WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Trustee

By: /s/ Yana Klelenko    
Name: Yana Klelenko
Title:  Vice President

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ANNEX A

PERFECTION CERTIFICATE

[separately provided]

40

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