Document:

Exhibit 4.7

 

SUPPLEMENT TO INTERCREDITOR AGREEMENT

 

Supplement No. 1 (this “Supplement”)
dated as of January 29, 2010, to the Intercreditor Agreement dated as of October 9,
2009 (as amended, restated, supplemented or otherwise modified from time to
time, the “Intercreditor Agreement”) among each of the parties listed on
the signature pages thereto and those additional entities that thereafter
become parties thereto, Bank of America, N.A., in its capacity as agent under
the ABL Credit Agreement (together with its successors, “ABL Agent”) and
U.S. Bank National Association, as trustee, not in its individual capacity, but
solely in its capacity as trustee and collateral agent under the Indenture and
(as the case may be) as collateral agent for and representative of the holders
of the Additional Pari Passu Notes Obligations, including in each case its
successors and assigns from time to time (in such capacities, the “Notes
Agent”)

 

W I T N E S S E T H:

 

WHEREAS, capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Intercreditor Agreement;

 

NOW, THEREFORE, for and in consideration of the
foregoing and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned (“New Company
Subsidiary”) hereby agrees as follows:

 

1.             The
New Company Subsidiary, by its signature below, becomes a “Company Subsidiary”
under the Intercreditor Agreement with the same force and effect as if originally
named therein as a “Company Subsidiary” and the New Company Subsidiary hereby acknowledges
all of the terms and provisions of the Intercreditor Agreement applicable to it
as a “Company Subsidiary” thereunder. 
Each reference to a “Company Subsidiary” in the Intercreditor Agreement
shall be deemed to include the New Company Subsidiary.  The Intercreditor Agreement is incorporated
herein by reference.

 

2.             The
New Company Subsidiary represents and warrants to the Notes Agent and the ABL
Agent that this Supplement has been duly executed and delivered by such New
Company Subsidiary and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as enforceability
thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent
transfer, moratorium or other similar laws affecting creditors’ rights
generally and general principles of equity (regardless of whether such
enforceability is considered in a proceeding at law or in equity).

 

3.             This
Supplement may be executed in multiple counterparts, each of which shall be
deemed to be an original, but all such separate counterparts shall together
constitute but one and the same instrument. 
Delivery of a counterpart hereof by facsimile transmission or by e-mail
transmission shall be as effective as delivery of a manually executed
counterpart hereof.

 

4.             Except
as expressly supplemented hereby, the Intercreditor Agreement shall remain in
full force and effect.

 

 

5.             This
Supplement shall be construed in accordance with and governed by the laws of
the State of New York without regard to the conflict of laws principles
thereof.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

2

 

IN WITNESS WHEREOF, the New Company Subsidiary, Notes
Agent and ABL Agent have duly executed this Supplement to the Intercreditor
Agreement as of the day and year first above written.

 

	
  NEW COMPANY SUBSIDIARY:

  	
   

  
	
   

  	
   

  
	
   

  	
  TOPS
  PT, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Frank Curci 

  
	
   

  	
  Name:

  	
  Frank
  Curci 

  
	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ABL
  AGENT

  
	
   

  	
   

  
	
   

  	
  Bank
  of America, N.A., as ABL Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Roger Malouf

  
	
   

  	
  Name:

  	
  Roger
  Malouf

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTES
  AGENT

  
	
   

  	
   

  
	
   

  	
  U.S.
  Bank National Association, not in its individual capacity, but solely in its
  capacity as Trustee and Collateral Agent under the Indenture and Collateral
  Agent under the Note Documents, as Notes Agent.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Beverly A. Freeney

  
	
   

  	
  Name:

  	
  Beverly
  A. Freeney

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

3Exhibit
4.8

 

EXECUTION VERSION

	
   

  	
   

  

 

SECURITY AGREEMENT

 

by

 

TOPS HOLDING CORPORATION AND TOPS MARKETS, LLC,

 

as Issuers

 

and

 

THE GUARANTORS PARTY HERETO

 

FROM TIME TO TIME

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

as Collateral Agent

Dated as of October 9, 2009

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  PREAMBLE

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  RECITALS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  AGREEMENT

  	
   

  	
  2

  
	
   

  
	
  ARTICLE I

  
	
   

  
	
  DEFINITIONS
  AND INTERPRETATION

  
	
   

  
	
  SECTION 1.1.

  	
  Definitions

  	
  2

  
	
  SECTION 1.2.

  	
  Interpretation

  	
  11

  
	
  SECTION 1.3.

  	
  Perfection Certificate

  	
  11

  
	
   

  
	
  ARTICLE II

  
	
   

  
	
  [reserved]

  
	
   

  
	
  ARTICLE III

  
	
   

  
	
  GRANT OF
  SECURITY AND SECURED OBLIGATIONS

  
	
   

  
	
  SECTION 3.1.

  	
  Pledge

  	
  11

  
	
  SECTION 3.2.

  	
  Secured Obligations

  	
  12

  
	
  SECTION 3.3.

  	
  Security Interest

  	
  12

  
	
   

  
	
  ARTICLE IV

  
	
   

  
	
  PERFECTION;
  SUPPLEMENTS; FURTHER ASSURANCES;

  
	
  USE OF
  COLLATERAL

  
	
   

  
	
  SECTION 4.1.

  	
  Delivery of Certificated Securities Collateral

  	
  13

  
	
  SECTION 4.2.

  	
  Perfection of Uncertificated Securities Collateral

  	
  13

  
	
  SECTION 4.3.

  	
  Financing Statements and Other Filings; Maintenance of
  Perfected Security Interest

  	
  14

  
	
  SECTION 4.4.

  	
  Other Actions

  	
  14

  
	
  SECTION 4.5.

  	
  Joinder of Additional Guarantors

  	
  18

  
	
  SECTION 4.6.

  	
  Supplements; Further Assurances

  	
  18

  
	
   

  
	
  ARTICLE V

  
	
   

  
	
  REPRESENTATIONS,
  WARRANTIES AND COVENANTS

  
	
   

  
	
  SECTION 5.1.

  	
  Title

  	
  19

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 5.2.

  	
  Limitation on Liens; Defense of Claims; Transferability of
  Collateral

  	
  19

  
	
  SECTION 5.3.

  	
  Chief Executive Office; Change of Name; Jurisdiction of
  Organization

  	
  20

  
	
  SECTION 5.4.

  	
  [Reserved]

  	
  20

  
	
  SECTION 5.5.

  	
  Due Authorization and Issuance

  	
  20

  
	
  SECTION 5.6.

  	
  No Claims

  	
  20

  
	
  SECTION 5.7.

  	
  No Conflicts, Consents, etc.

  	
  21

  
	
  SECTION 5.8.

  	
  Collateral Information

  	
  21

  
	
  SECTION 5.9.

  	
  Insurance

  	
  21

  
	
  SECTION 5.10.

  	
  Payment of Taxes; Compliance with Laws; Contested Liens;
  Claims

  	
  22

  
	
  SECTION 5.11.

  	
  Access to Collateral, Books and Records; Other Information

  	
  22

  
	
   

  
	
  ARTICLE VI

  
	
   

  
	
  CERTAIN
  PROVISIONS CONCERNING SECURITIES COLLATERAL

  
	
   

  
	
  SECTION 6.1.

  	
  Pledge of Additional Securities Collateral

  	
  22

  
	
  SECTION 6.2.

  	
  Voting Rights; Distributions; etc.

  	
  23

  
	
  SECTION 6.3.

  	
  Organizational Documents

  	
  24

  
	
  SECTION 6.4.

  	
  Defaults, Etc.

  	
  24

  
	
  SECTION 6.5.

  	
  Certain Agreements of Grantors As Issuers and Holders of
  Equity Interests

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  CERTAIN
  PROVISIONS CONCERNING INTELLECTUAL

  
	
  PROPERTY
  COLLATERAL

  
	
   

  
	
  SECTION 7.1.

  	
  Grant of License

  	
  25

  
	
  SECTION 7.2.

  	
  Registrations

  	
  25

  
	
  SECTION 7.3.

  	
  No Violations or Proceedings

  	
  25

  
	
  SECTION 7.4.

  	
  Protection of Collateral Agent’s Security

  	
  25

  
	
  SECTION 7.5.

  	
  After-Acquired Property

  	
  26

  
	
  SECTION 7.6.

  	
  Litigation

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  [RESERVED]

  
	
   

  
	
  ARTICLE IX

  
	
   

  
	
  REMEDIES

  
	
   

  
	
  SECTION 9.1.

  	
  Remedies

  	
  26

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 9.2.

  	
  Notice of Sale

  	
  28

  
	
  SECTION 9.3.

  	
  Waiver of Notice and Claims

  	
  28

  
	
  SECTION 9.4.

  	
  Certain Sales of Collateral

  	
  29

  
	
  SECTION 9.5.

  	
  No Waiver; Cumulative Remedies

  	
  30

  
	
   

  
	
  ARTICLE X

  
	
   

  
	
  APPLICATION
  OF PROCEEDS

  
	
   

  
	
  SECTION 10.1.

  	
  Application of Proceeds

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  
	
  SECTION 11.1.

  	
  Concerning Collateral Agent

  	
  30

  
	
  SECTION 11.2.

  	
  Collateral Agent May Perform; Collateral Agent
  Appointed Attorney-in-Fact

  	
  34

  
	
  SECTION 11.3.

  	
  [Reserved]

  	
  35

  
	
  SECTION 11.4.

  	
  Continuing Security Interest; Assignment

  	
  35

  
	
  SECTION 11.5.

  	
  Termination; Release

  	
  36

  
	
  SECTION 11.6.

  	
  Modification in Writing

  	
  36

  
	
  SECTION 11.7.

  	
  Notices

  	
  36

  
	
  SECTION 11.8.

  	
  GOVERNING LAW

  	
  37

  
	
  SECTION 11.9.

  	
  CONSENT TO JURISDICTION; SERVICE OF PROCESS; WAIVER OF JURY
  TRIAL

  	
  37

  
	
  SECTION 11.10.

  	
  Severability of Provisions

  	
  38

  
	
  SECTION 11.11.

  	
  Execution in Counterparts

  	
  38

  
	
  SECTION 11.12.

  	
  No Release

  	
  38

  
	
  SECTION 11.13.

  	
  Obligations Absolute

  	
  38

  
	
  SECTION 11.14.

  	
  Intercreditor Agreement

  	
  39

  
	
  SECTION 11.15.

  	
  Permitted Additional Pari Passu Lien Obligations

  	
  39

  
	
  SECTION 11.16.

  	
  Incorporation by Reference

  	
  40

  
	
  SECTION 11.17.

  	
  Certain Directions. The
  Collateral Agent shall comply with any direction given to it by (A) the
  Trustee pursuant to Section 10.01 of the Indenture or (B) any
  Additional Pari Passu Agent pursuant to any similar provision of a Permitted
  Additional Pari Passu Lien Agreement, provided in the case of clause
  (A) and (B) that such direction is not inconsistent with this Agreement.

  	
  40

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT 1

  	
  Form Supplement
  to Security Agreement

  	
   

  
	
  EXHIBIT 2

  	
  Form of
  Securities Pledge Amendment

  	
   

  
	
  SCHEDULE
  I

  	
  Intercompany
  Notes

  	
   

  
	
  SCHEDULE
  II

  	
  Filings,
  Registrations and Recordings

  	
   

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  III

  	
  Pledged
  Interests

  	
   

  
	
  SCHEDULE
  IV

  	
  Certain
  Existing Liens

  	
   

  
	
  EXHIBIT 3

  	
  Form of
  Additional Pari Passu Joinder Agreement

  	
   

  
	
  EXHIBIT 4

  	
  The
  Collateral Agent and Secured Party Acknowledgements

  	
   

  

 

iv

 

SECURITY AGREEMENT

 

SECURITY
AGREEMENT, dated as of October 9, 2009 (as amended, modified, supplemented
or restated and in effect from time to time, this “Agreement”), made by (i) TOPS
HOLDING CORPORATION, a Delaware corporation (in such capacity, “Holdings”)
(ii) TOPS MARKETS, LLC, a New York limited liability company (in such
capacity, the “Company” together with Holdings, the “Issuers”)
and (iii) THE GUARANTORS LISTED ON THE SIGNATURE PAGES HERETO (the “Original
Guarantors”) OR FROM TIME TO TIME PARTY HERETO BY EXECUTION OF A JOINDER
AGREEMENT (the “Additional Guarantors,” and together with the Original
Guarantors, the “Guarantors”), as pledgors, assignors and debtors (the
Issuers, together with the Guarantors, in such capacities and together with any
successors in such capacities, the “Grantors,” and each a “Grantor”),
in favor of U.S. Bank National Association, having an office at 100 Wall
Street, Suite 1600, New York, New York, 10005, in its capacity as
collateral agent (the “Collateral Agent”) for the Secured Parties (as
defined below).

 

R E C I T A L S :

 

A.            The Issuers, the Guarantors, the
Collateral Agent and U.S. Bank National Association, as trustee (the “Trustee”),
on behalf of the holders of the Notes and Additional Notes (each as defined
below) (the “Holders”), have, in connection with the execution and
delivery of this Agreement, entered into that certain indenture dated as of
October 9, 2009 (as amended, restated, supplemented or modified from time
to time, the “Indenture”), pursuant to which the Issuers have issued or
will issue $275,000,000 million principal amount of 10.125% senior secured
notes due 2015 (the “Notes”).

 

B.            Pursuant to the Indenture, each
Guarantor party hereto has unconditionally and irrevocably guaranteed, as
primary obligor and not merely as surety, to the Trustee, for the benefit of
the Secured Parties the prompt and complete payment and performance when due
(whether at the stated maturity, by acceleration or otherwise) of the Notes.

 

C.            The Trustee has been appointed to serve
as Collateral Agent under the Indenture and, in such capacity, to enter into
this Agreement.

 

D.            Following the date hereof, if not
prohibited by the Indenture, the Grantors may incur Permitted Additional Pari
Passu Obligations (including Additional Notes (as defined in the Indenture))
which are secured equally and ratably with the Grantors’ obligations in respect
of the Notes in accordance with SECTION 11.15 of this Agreement.

 

E.             The Issuers and the Guarantors will
receive substantial benefits from the execution, delivery and performance of
the obligations under the Indenture, the Notes and any Permitted Additional
Pari Passu Lien Agreement and each is, therefore, willing to enter into this
Agreement.

 

F.             Each Grantor is or, as to any
Collateral (as hereinafter defined) acquired by such Grantor after the date
hereof, will be the legal and/or beneficial owner of the Collateral pledged by
it hereunder.

 

 

G.            This Agreement is given by each
Grantor in favor of the Collateral Agent for the benefit of the Secured Parties
to secure the payment and performance in full when due of the Secured
Obligations.

 

A G R E E M E N T :

 

NOW
THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each Grantor and the Collateral Agent hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS AND
INTERPRETATION

 

SECTION 1.1.                 Definitions.

 

(a)           Unless otherwise defined herein or in the Indenture,
capitalized terms used herein that are defined in the UCC shall have the
meanings assigned to them in the UCC.

 

(b)           Capitalized terms used but not otherwise defined herein
that are defined in the Indenture shall have the meanings given to them in the
Indenture.

 

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

 

“ABL
Agent” shall have the meaning assigned to such term in the Intercreditor
Agreement.

 

“ABL
Credit Agreement” shall have the meaning assigned to such term in the
Intercreditor Agreement.

 

“ABL
Priority Collateral” shall have the meaning assigned to such term in the
Intercreditor Agreement.

 

“Additional
Guarantors” shall have the meaning assigned to such term in the Preamble
hereof.

 

“Additional
Pari Passu Agent”  means the
Person appointed to act as trustee, agent or representative for any holder of
Permitted Additional Pari Passu Obligations pursuant to any Permitted
Additional Pari Passu Lien Agreement and designated as “Additional Pari Passu
Agent” for such holder in an Additional Pari Passu Joinder Agreement delivered
to the Collateral Agent pursuant to SECTION 11.5, together with its
successors and assigns in such capacity.

 

“Additional
Pari Passu Joinder Agreement” means an agreement substantially in the form
of Exhibit 3.

 

“Agreement”
shall have the meaning assigned to such in the Preamble hereof.

 

2

 

“Claims”
shall mean any and all property taxes and other taxes, assessments and special
assessments, levies, fees and all governmental charges imposed upon or assessed
against, and all claims (including, without limitation, landlords’, carriers’,
mechanics’, workmen’s, repairmen’s, laborers’, materialmen’s, suppliers’ and
warehousemen’s Liens and other claims arising by operation of law) against, all
or any portion of the Collateral.

 

“Collateral”
shall have the meaning assigned to such term in SECTION 3.1 hereof,
provided, that any reference to “Collateral” in SECTION 11.1,
SECTION 11.4, Exhibit 3 or Exhibit 4 shall
also refer to each Mortgaged Property.

 

“Collateral
Agent” shall have the meaning assigned to such term in the Preamble hereof.

 

“Company”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Contracts”
shall mean, collectively, with respect to each Grantor, all sale, service,
performance, equipment or property lease contracts, agreements and grants and
all other contracts, agreements or grants (in each case, whether written or
oral, or third party or intercompany), between such Grantor and any other
party, and all assignments, amendments, restatements, supplements, extensions,
renewals, replacements or modifications thereof.

 

“Control”
shall mean (i) in the case of any Deposit Account, “control,” as such term
is defined in Section 9-104 of the UCC, and (ii) in the case of any
Security Entitlement, “control,” as such term is defined in Section 8-106
of the UCC.

 

“Copyrights”
shall mean, collectively, with respect to each Grantor, all copyrights (whether
statutory or common Law, whether established or registered in the United States
or any other country or any political subdivision thereof whether registered or
unregistered and whether published or unpublished) owned by such Grantor and
all owned copyright registrations and applications made by such Grantor,
including, without limitation, the registrations and applications listed in
Schedule 11(b) of the Perfection Certificate, together with any and all
(i) renewals and extensions thereof, (ii) income, fees, royalties,
damages, claims and payments now or hereafter due and/or payable with respect
thereto, including, without limitation, damages and payments for past, present
or future infringements thereof, (iii) rights corresponding thereto
throughout the world and (iv) rights to sue for past, present or future
infringements thereof.

 

“Deposit
Accounts” shall mean, collectively, with respect to each Grantor, (i) all
“deposit accounts” as such term is defined in the UCC and all accounts and
sub-accounts relating to any of such accounts and (ii) all cash, funds,
checks, notes and instruments from time to time on deposit in any of the
accounts or sub-accounts described in clause (i) of this definition.

 

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

 

3

 

“Equity
Interest” shall mean with respect to any Person, all of the shares of
capital stock of (or other ownership or profit interests in) such Person, all
of the warrants, options or other rights for the purchase or acquisition from
such Person of shares of capital stock of (or other ownership or profit
interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or
acquisition from such Person of such shares (or such other interests), and all
of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting,
and whether or not such shares, warrants, options, rights or other interests
are outstanding on any date of determination.

 

“Event
of Default” shall mean an “Event of Default” under and as defined in the
Indenture or any Permitted Additional Pari Passu Lien Agreement.

 

“Excluded
Property” shall mean the following:

 

(a)           assets subject to
Liens pursuant to clauses (a) (to the extent such Liens are either (i) described
on Schedule IV or (ii) are described on any supplement to such Schedule IV
delivered by any Grantor to the Collateral Agent at any time after the date
hereof; provided that the aggregate fair market value of all assets subject to
the Liens identified on any supplement to Schedule IV subsequent to the date
hereof shall not exceed $1,000,000), (d), (g) (to the extent such Lien
applies only to the assets acquired or leased pursuant to such Purchase Money
Indebtedness or Capital Lease Obligation), (j) or (p) (as it relates to
any of the foregoing) of the definition of Permitted Liens to the extent the
documentation relating to such Liens prohibit such assets from being Collateral
and only for so long as such Liens remain outstanding;

 

(b)           (x) the voting
Equity Interests of Foreign Subsidiaries in excess of 65% of the voting rights
of all such Equity Interests in each such Foreign Subsidiary and (y) any
Equity Interests of a Person that is not a Subsidiary of the Parent or the Lead
Borrower to the extent that a pledge of such Equity Interests is prohibited by
such Person’s Organization Documents;

 

(c)           any owned real
property with an individual fair market value (measured at the Issue Date, if
owned on the Issue Date, or, at the time of acquisition thereof, if acquired
after the Issue Date) not in excess of $5,000,000, and all of the Grantors’
right, title and interest in any leasehold or other non-fee simple interest in
any real property of a Grantor (whether owned on the Issue Date or acquired
following the Issue Date) (other than the Lancaster Property);

 

(d)           aircraft, motor
vehicles and other assets subject to certificates of title to the extent that a
Lien therein cannot be perfected by the filing of UCC financing statements in
the jurisdictions of organization of the Grantors;

 

(e)           any property to the
extent that the grant of a security interest therein would violate applicable
Law, require a consent not obtained of any governmental authority, or
constitute a breach of or default under, or result in the termination of or
require a consent not obtained under, any contract, lease, license or other
agreement evidencing or giving

 

4

 

rise
to such property, or result in the invalidation of such property or provide any
party to such contract, lease, license or agreement with a right of termination
of such contract, lease, license or agreement or any other remedy that
materially increases (in the good faith judgment of the Parent) the costs or
burden of any Grantor thereunder with respect thereto (in each case, after
giving effect to applicable provisions of the UCC or other applicable law);

 

(f)            any Equity
Interests or other securities of any Subsidiary of the Parent in excess of the
maximum amount of such Equity Interests or securities that could be included in
the Collateral without creating a requirement pursuant to Rule 3-16 of
Regulation S-X under the Securities Act of 1933 for separate financial
statements of such Subsidiary to be included in filings by Holdings with the
SEC;

 

(g)           (x) deposit
accounts the balance of which consists exclusively of withheld income taxes,
employment taxes or amounts required to be paid over to employee benefit plans,
and (y) segregated deposit accounts constituting and the balance of which
consists solely of funds set aside in connection with tax, payroll and trust
accounts;

 

(h)           any intellectual
property if the grant of a security interest therein would result in the
invalidation of any Grantor’s interest therein;

 

(i)            Farm Products and
As-extracted Collateral; and

 

(j)            proceeds and
products of any and all of the foregoing Excluded Property described in clauses
(a) through (i) above only to the extent such proceeds and products
would constitute property or assets of the type described in clauses (a) through
(i) above;

 

provided, however,
that in each case described in clause (e) of this definition, such
property shall constitute “Excluded Property” only to the extent and for so
long as such contract, lease, license or other agreement or applicable Law
validly prohibits the creation of a Lien on such property in favor of the
Collateral Agent and, upon the termination of such prohibition (howsoever
occurring), such property shall cease to constitute “Excluded Property”.

 

“General
Intangibles” shall mean, collectively, with respect to each Grantor, all “general
intangibles,” as such term is defined in the UCC, of such Grantor and, in any
event, shall include, without limitation, (i) all of such Grantor’s
rights, title and interest in, to and under all insurance policies and
Contracts, (ii) all know-how and warranties relating to any of the
Collateral, (iii) any and all other rights, claims, choses-in-action and
causes of action of such Grantor against any other Person and the benefits of
any and all collateral or other security given by any other Person in
connection therewith, (iv) all guarantees, endorsements and
indemnifications on, or of, any of the Collateral, (v) all lists, books,
records, correspondence, ledgers, print-outs, files (whether in printed form or
stored electronically), tapes and other papers or materials containing
information relating to any of the Collateral, including, without limitation,
all customer or tenant lists, identification of suppliers, data, plans,
blueprints, specifications, designs, drawings, appraisals, recorded knowledge,
surveys, studies, engineering reports, test reports, manuals, standards,
processing standards, performance standards, catalogs, research data, computer
and automatic machinery software and programs and the like, field repair data,
accounting information

 

5

 

pertaining
to such Grantor’s operations or any of the Collateral and all media in which or
on which any of the information or knowledge or data or records may be recorded
or stored and all computer programs used for the compilation or printout of
such information, knowledge, records or data, (vi) all licenses, consents,
permits, variances, certifications, authorizations and approvals, however
characterized, of any Governmental Authority (or any Person acting on behalf of
a Governmental Authority) now or hereafter acquired or held by such Grantor
pertaining to operations now or hereafter conducted by such Grantor or any of
the Collateral including, without limitation, building permits, certificates of
occupancy, environmental certificates, industrial permits or licenses and
certificates of operation and (vii) all rights to reserves, deferred
payments, deposits, refunds, indemnification of claims to the extent the
foregoing relate to any Collateral and claims for tax or other refunds against
any Governmental Authority relating to any Collateral.

 

“Governmental
Authority” means the government of the United States or any other nation,
or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank).

 

“Grantor”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Guarantors”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Holdings”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Indenture”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Instruments”
shall mean, collectively, with respect to each Grantor, all “instruments,” as
such term is defined in Article 9 of the UCC, and shall include, without
limitation, all promissory notes, drafts, bills of exchange or acceptances.

 

“Intellectual
Property Collateral” shall mean, collectively, Patents, Trademarks,
Copyrights and Licenses; provided, however, that “Intellectual Property
Collateral” shall exclude any Excluded Property.

 

“Intercompany
Notes” shall mean, with respect to each Grantor, all intercompany notes
described on Schedule I hereto and each intercompany note hereafter
acquired by such Grantor and all certificates, instruments or agreements
evidencing such intercompany notes, and all assignments, amendments,
restatements, supplements, extensions, renewals, replacements or modifications
thereof to the extent permitted pursuant to the terms hereof.

 

“Investment
Property” shall mean a security, whether certificated or uncertificated,
security entitlement, securities account, commodity contract or commodity
account, excluding, however, the Securities Collateral.

 

6

 

“Issuers”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Laws”
means each international, foreign, federal, state and local statute, treaty,
rule, guideline, regulation, ordinance, code and administrative or judicial
precedent or authority, including the interpretation or administration thereof
by any Governmental Authority charged with the enforcement, interpretation or
administration thereof, and each applicable administrative order, directed
duty, request, license, authorization and permit of, and agreement with, any
Governmental Authority, in each case whether or not having the force of law.

 

“Lancaster
Property” shall mean the land, together with the warehouse distribution
center and other improvements thereon, located at 5873 Genesee Street,
Lancaster, New York.

 

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

 

“Material
Adverse Effect” shall mean (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, liabilities
(actual or contingent) or financial condition of Holdings and its Subsidiaries
taken as a whole; (b) a material impairment of the ability of the Grantors
(taken as a whole) to perform their obligations under any Note Document or
Permitted Additional Pari Passu Lien Agreement to which they are parties; or
(c) a material impairment of the rights and remedies (taken as a whole) of
the Secured Parties under any Note Document or Permitted Additional Pari Passu
Lien Agreement or a material adverse effect upon the legality, validity,
binding effect or enforceability against the Grantors (taken as a whole) of any
Note Document or Permitted Additional Pari Passu Lien Agreement to which they
are parties.  In determining whether any
individual event would result in a Material Adverse Effect, notwithstanding
that such event in and of itself does not have such effect, a Material Adverse
Effect shall be deemed to have occurred if the cumulative effect of such event
and all other then existing events would result in a Material Adverse Effect.

 

“Mortgage”
means an agreement, including, but not limited to, a mortgage, deed of trust or
any other document creating and evidencing a Lien on a Mortgaged Property in
favor of or for the benefit of the Collateral Agent, which shall be in form
which is effective to create a Lien in such Mortgaged Property in favor of the
Collateral Agent to secure the Secured Obligations that is enforceable against
the applicable Grantor and third parties, in each case, with such schedules and
including such provisions as shall be necessary or desirable (as determined in
good faith by the Company) to conform such document to applicable local law
requirements or as shall be customary under applicable local law requirements.

 

7

 

“Mortgaged
Property” means each Real Estate Asset, if any, which shall be subject to a
Mortgage delivered after the Issue Date pursuant to Article IV.

 

“Note
Documents” means the Notes, the Indenture, the Guarantees, the Registration
Rights Agreement, the Security Documents, the Intercreditor Agreement and any
Additional Notes to the extent constituting Permitted Additional Pari Passu
Obligations.

 

“Notes”
shall have the meaning assigned to such term in the Preamble hereof.

 

“Notes
Priority Collateral” shall have the meaning assigned to such term in the
Intercreditor Agreement.

 

“Organizational
Documents”  shall mean, (a) with
respect to any corporation, the certificate or articles of incorporation and
the bylaws (or equivalent or comparable constitutive documents with respect to
any non-U.S. jurisdiction); (b) with respect to any limited liability
company, the certificate or articles of formation or organization and operating
agreement; (c) with respect to any partnership, joint venture, trust or
other form of business entity, the partnership, joint venture or other
applicable agreement of formation or organization and any agreement,
instrument, filing or notice with respect thereto filed in connection with its
formation or organization with the applicable Governmental Authority in the
jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity, and (d) in
each case, all shareholder or other equity holder agreements, voting trusts and
similar arrangements to which such Person is a party or which is applicable to
its Equity Interests and all other arrangements relating to the control or
management of such Person.

 

“Patents”
shall mean, collectively, with respect to each Grantor, all patents issued or
assigned to such Grantor and all owned patent applications made by such Grantor
(whether registered or recorded in the United States or any other country or
any political subdivision thereof), including, without limitation, those
patents, patent applications listed in Schedule 11(a) of the Perfection
Certificate, together with any and all (i) inventions and improvements
claimed therein, (ii) reissues, divisions, continuations, renewals,
extensions and continuations-in-part thereof, (iii) income, fees,
royalties, damages, claims and payments now or hereafter due and/or payable
thereunder and with respect thereto including, without limitation, damages and
payments for past, present or future infringements thereof, (iv) rights
corresponding thereto throughout the world and (v) rights to sue for past,
present or future infringements thereof.

 

“Perfection
Certificate” shall mean that certain perfection certificate dated as of the
date hereof, executed and delivered by each Grantor in favor of the Collateral
Agent for the benefit of the Secured Parties, and each other Perfection
Certificate (which shall be in form and substance reasonably acceptable to the
Collateral Agent) executed and delivered by the applicable Issuer or Guarantor
in favor of the Collateral Agent for the benefit of the Secured Parties
contemporaneously with the execution and delivery of a Joinder Agreement
executed in accordance with SECTION 4.5 hereof, in each case, as
the same may be amended, amended and restated, restated, supplemented or
otherwise modified from time to time in accordance with the Indenture and each
Permitted Additional Pari Passu Lien Agreement.

 

8

 

“Permitted
Additional Pari Passu Lien Agreement” shall mean an indenture, credit
agreement or other agreement under which any Permitted Additional Pari Passu
Obligations (other than Additional Notes) are incurred and any notes or other
instruments representing such Permitted Additional Pari Passu Obligations, as
the same may be amended, restated, supplemented or otherwise modified from time
to time.

 

“Permitted
Additional Pari Passu Obligations” shall have the meaning assigned to such
term in the Indenture.

 

“Pledged
Interests” shall mean, collectively, with respect to each Grantor, all
Equity Interests of whatever class of any issuer now held or hereafter acquired
by such Grantor, including, without limitation, all shares of capital stock and
other Equity Interests of the issuers described in Schedule III hereof,
together with all rights, privileges, authority and powers of such Grantor
relating to such Equity Interests issued by any such issuer under the
organizational documents of any such issuer, and the certificates, instruments
and agreements representing such Equity Interests and any and all interest of
such Grantor in the entries on the books of any financial intermediary
pertaining to such Equity Interests, from time to time acquired by such Grantor
in any manner; provided, however, that “Pledged Interests” shall
exclude any Excluded Property.

 

“Pledged
Securities” shall mean, collectively, the Pledged Interests and the
Successor Interests.

 

“Proceeds”:  all “proceeds” as such term is defined in the
UCC and, in any event, shall include, without limitation, all dividends or
other income from the Pledged Securities, collections thereon or distributions
or payments with respect thereto.

 

“Real
Estate Assets” means the Lancaster Property and at any time of
determination, any interest (fee, leasehold or otherwise) then owned by the
Issuers or any Guarantor in any real property, provided, however,
that “Real Estate Assets” shall exclude any Excluded Property.

 

“Registration
Rights Agreement”  shall have the
meaning assigned to such term in the Indenture.

 

“Required
Secured Parties” shall mean the holders of a majority in aggregate
outstanding or committed principal amount of (i) the Notes and (ii) any
Indebtedness constituting Permitted Additional Pari Passu Obligations, voting
as a single class, in each case, excluding any Notes or Permitted Additional
Pari Passu Obligations that are required to be disregarded for voting purposes
under the Indenture or the applicable Permitted Additional Pari Passu Lien
Agreement.

 

“Secured
Obligations” shall mean any principal, premium, interest (including any
interest accruing subsequent to the filing of a petition in bankruptcy,
reorganization or similar proceeding at the rate provided for in the documentation
with respect thereto, whether or not such interest is an allowed claim under
applicable state, federal or foreign law), penalties, fees, indemnifications,
reimbursements (including reimbursement obligations with respect to letters of
credit and banker’s acceptances), damages and other liabilities, and guarantees
of payment of such principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other 

 

9

 

liabilities,
and any fees or expenses owed, by any Grantor, that are payable or arising
under any of (i) the Indenture and the Notes (other than any Additional
Notes and provisions in the Indenture relating solely to such Additional Notes,
except to the extent constituting Permitted Additional Pari Passu Obligations),
(ii) any Additional Notes to the extent constituting Permitted Additional
Pari Passu Obligations and documentation in the Indenture relating solely to
such Additional Notes and (iii) any Permitted Additional Pari Passu Lien
Agreement and any other documentation relating to the Permitted Additional Pari
Passu Obligations incurred thereunder; provided that obligations in
respect of Permitted Additional Pari Passu Obligations (other than obligations
with respect to Additional Notes) shall not constitute “Secured Obligations”
unless the Additional Pari Passu Agent for the holders of such Permitted
Additional Pari Passu Obligations has executed an Additional Pari Passu Joinder
Agreement in the form of Exhibit 3 hereto.

 

“Secured
Parties” shall mean, collectively, the Collateral Agent, the Trustee, each
Additional Pari Passu Agent, the Holders, the holders of any Permitted
Additional Pari Passu Obligations, and any other holders of Secured
Obligations.

 

“Securities
Act” means the Securities Exchange Act of 1934 and the applicable
regulations promulgated by the Securities and Exchange Commission pursuant to
such Act.

 

“Securities
Collateral” shall mean, collectively, the Pledged Securities, the
Intercompany Notes and the Distributions.

 

“Security
Documents”  shall have the meaning
assigned to such term in the Indenture.

 

“Successor
Interests” shall mean, collectively, with respect to each Grantor, all
shares of each class of the capital stock of the successor corporation or interests
or certificates of the successor limited liability company, partnership or
other entity owned by such Grantor (unless such successor is such Grantor
itself) formed by or resulting from any consolidation or merger in which any
Person listed in Schedule 1(a) of the Perfection Certificate is not the
surviving entity; provided, however, that “Successor Interests”
shall exclude any Excluded Property.

 

“Trademarks”
shall mean, collectively, with respect to each Grantor, all trademarks
(including service marks), certification marks, trade dress, uniform resource
locations (URLs), domain names, corporate names and trade names, whether
registered or unregistered, owned by or assigned to such Grantor and all
registrations and applications for the foregoing (whether statutory or common
Law and whether established or registered in the United States or any other
country or any political subdivision thereof), together, in each case, with the
goodwill exclusively symbolized thereby, including, without limitation, the
registrations and applications listed in Schedule 11(a) of the Perfection
Certificate, and together with any and all (i)  extensions and renewals
thereof, (ii) income, fees, royalties, damages and payments now and
hereafter due and/or payable thereunder and with respect thereto, including,
without limitation, damages, claims and payments for past, present or future
infringements thereof, and (iii) rights corresponding thereto throughout
the world and (iv) rights to sue for past, present and future infringements
thereof.

 

10

 

“UCC”
or “Uniform Commercial Code” means the Uniform Commercial Code as in
effect from time to time in the State of New York; provided, however,
that if a term is defined in Article 9 of the Uniform Commercial Code
differently than in another Article thereof, the term shall have the
meaning set forth in Article 9; provided  further that, if by
reason of mandatory provisions of Law, perfection, or the effect of perfection
or non-perfection, of a security interest in any Collateral or the availability
of any remedy hereunder is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than the State of New York, “Uniform Commercial Code”
means the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection or availability of such remedy, as the case may
be.

 

SECTION 1.2.                 Interpretation.  The rules of interpretation specified in
the Credit Agreement shall be applicable to this Agreement.

 

SECTION 1.3.                 Perfection Certificate.  The Collateral Agent and each Grantor agree
that the Perfection Certificate and all descriptions of Collateral, schedules,
amendments and supplements thereto are and shall at all times remain a part of
this Agreement.

 

ARTICLE II

 

[RESERVED]

 

ARTICLE III

 

GRANT OF SECURITY AND
SECURED OBLIGATIONS

 

SECTION 3.1.                 Pledge.  As collateral security for the payment and
performance in full of all the Secured Obligations, each Grantor hereby pledges
and grants to the Collateral Agent, for its own benefit and for the benefit of
the other Secured Parties, a Lien on and security interest in and to all of the
right, title and interest of such Grantor in, to and under all personal
property and interests in property, wherever located, and whether now existing
or hereafter arising or acquired from time to time (collectively, the “Collateral”),
including, without limitation:

 

(a)           all Accounts;

 

(b)           all Equipment, Goods, Inventory and Fixtures;

 

(c)           all Documents, Instruments and Chattel Paper;

 

(d)           all Letters of Credit and Letter-of-Credit Rights;

 

(e)           all Securities Collateral;

 

(f)            all Investment Property;

 

(g)           all Intellectual Property Collateral;

 

11

 

(h)           the Commercial Tort Claims described in Schedule 12 of the
Perfection Certificate;

 

(i)            all General Intangibles;

 

(j)            all Deposit Accounts, the Collateral Account and any
Trust Monies;

 

(k)           all Supporting Obligations;

 

(l)            all books and records relating to the Collateral; and

 

(m)          to the extent not covered by clauses (a) through (m) of
this sentence, all other personal property of such Grantor, whether tangible or
intangible and all Proceeds and products of each of the foregoing and all
accessions to, substitutions and replacements for, and rents, profits and
products of, each of the foregoing, any and all proceeds of any insurance,
indemnity, warranty or guaranty payable to such Grantor from time to time with
respect to any of the foregoing.

 

Notwithstanding
anything to the contrary contained in clauses (a) through (n) above,
the security interest created by this Agreement shall not extend to, and the
term “Collateral” shall not include, any Excluded Property.

 

SECTION 3.2.                 Secured Obligations.  This Agreement secures, and the Collateral is
collateral security for, the payment and performance in full when due of the
Secured Obligations.

 

SECTION 3.3.                 Security Interest.

 

(a)           Each Grantor hereby irrevocably agrees to file in any
relevant jurisdiction in the United States any initial financing statements
(including fixture filings) and amendments thereto that contain the information
required by Article 9 of the Uniform Commercial Code of each applicable
jurisdiction in the United States for the filing of any financing statement or
amendment relating to the Collateral to the extent necessary to perfect the
Collateral Agent’s Security Interest in the Collateral to the extent such
security interest may be perfected by the filing of financing statements under
the UCC, including, without limitation, (i) whether such Grantor is an
organization, the type of organization and any organizational identification
number issued to such Grantor, (ii) a description of the Collateral (which
Collateral can be described as “all assets of the Grantor, wherever located,
whether now owned or hereafter acquired” or words of similar effect) and (iii) in
the case of a financing statement filed as a fixture filing, a sufficient
description of the real property to which such Collateral relates.  Each Grantor agrees to provide all
information described in the immediately preceding sentence to the Collateral
Agent promptly upon request.

 

(b)           Each Grantor hereby ratifies its authorization for the
Collateral Agent to file in any relevant jurisdiction in the United States any
initial financing statements or amendments thereto relating to the Collateral
if filed prior to the date hereof.

 

12

 

(c)           Each Grantor hereby agrees to make filings with the United
States Patent and Trademark Office and United States Copyright Office (or any
successor office) or other reasonably necessary documents (as determined by
Holdings in good faith) for the purpose of perfecting, confirming, continuing,
enforcing or protecting the security interest granted by such Grantor hereunder
in any Intellectual Property Collateral, with the signature of such Grantor,
and naming such Grantor, as debtor, and the Collateral Agent, as secured party;
provided, however, that no such filings shall be made with respect to any
Excluded Property.

 

(d)           The parties hereto agree that notwithstanding any
provision of this Agreement to the contrary, no Grantor shall be required to
take any actions or make any filings with respect to its assets located outside
of the United States, other than the filing of UCC financing statements in its
jurisdiction of organization.

 

ARTICLE IV

 

PERFECTION; SUPPLEMENTS;
FURTHER ASSURANCES;

USE OF COLLATERAL

 

SECTION 4.1.                 Delivery of Certificated
Securities Collateral.  Each Grantor
represents and warrants that all certificates, agreements or instruments
representing or evidencing the Securities Collateral in existence on the date
hereof, other than Equity Interests of any Person that is not a Subsidiary of
the Issuers with an aggregate market value of less than $2,000 and Equity
Interests in Topco Holdings Inc., a cooperative incorporated in the State of
Wisconsin (“Topco Holdings, Inc.”), have been delivered to the Collateral
Agent, in suitable form for transfer by delivery or accompanied by duly
executed instruments of transfer or assignment in blank and that the Collateral
Agent has a perfected security interest therein, subject only to Permitted
Liens.  Each Grantor hereby agrees that
all certificates, agreements or instruments representing or evidencing
Securities Collateral acquired by such Grantor after the date hereof, shall
promptly (and in any event within 30 days) upon receipt thereof by such Grantor
be delivered to and held by or on behalf of the Collateral Agent.  All certificated Securities Collateral, other
than Equity Interests of any Person that is not a Subsidiary of the Issuers
with an aggregate market value of less than $2,000 and Equity Interests in
Topco Holdings Inc.,  shall be in suitable
form for transfer by delivery or shall be accompanied by duly executed
instruments of transfer or assignment in blank, all in form and substance
reasonably satisfactory to the Collateral Agent and the ABL Agent.  The Collateral Agent shall have the right, at
any time upon the occurrence and during the continuance of any Event of
Default, to endorse, assign or otherwise transfer to or register in the name of
the Collateral Agent or any of its nominees or endorse for negotiation any or
all of the Securities Collateral, without any indication that such Securities
Collateral is subject to the security interest hereunder.

 

SECTION 4.2.                 Perfection of Uncertificated
Securities Collateral.  Each Grantor
represents and warrants that the Collateral Agent has a perfected security
interest in all uncertificated Pledged Securities pledged by it hereunder that
is in existence on the date hereof, subject only to Permitted Liens, and that
the applicable Organization Documents do not require the consent of the other
shareholders, members, partners or any other Person to permit the Collateral
Agent or its designee to be substituted for the applicable Grantor as a
shareholder, member, partner

 

13

 

or other equity owner, as applicable, thereto.  Each Grantor hereby agrees that if any of the
Pledged Securities are at any time not evidenced by certificates of ownership,
then each applicable Grantor shall, to the extent permitted by applicable Law
and upon the request of the Collateral Agent, cause such pledge to be recorded
on the equityholder register or the books of the issuer, execute customary
pledge forms or other documents necessary or reasonably requested to complete
the pledge and give the Collateral Agent the right to transfer such Pledged
Securities to the extent that such transfer is permitted under the terms
hereof.

 

SECTION 4.3.                 Financing Statements and
Other Filings; Maintenance of Perfected Security Interest.  UCC Financing Statements or other appropriate
filings, recordings or registrations containing a description of the Collateral
(including, without limitation, the UCC Financing Statements identified on
Schedule II hereto) have been or will be timely filed in each governmental,
municipal or other office in the United States (or any political subdivision
thereof) as is necessary to publish notice of and protect the validity of and
to establish a legal, valid and perfected security interest in favor of the
Collateral Agent (for the benefit of the Secured Parties) in respect of all
Collateral in which the Security Interest may be perfected by filing, recording
or registration in the United States (or any political subdivision thereof) and
no further or subsequent filing, refiling, recording, rerecording, registration
or re-registration is necessary in any such jurisdiction, except as provided
under applicable Law with respect to the filing of continuation statements or
as a result of any change in a Grantor’s name or jurisdiction of incorporation
or formation or under any other circumstances under which, pursuant to the UCC,
filings previously made have become misleading or ineffective in whole or in
part.  Each Grantor agrees that, at the
sole cost and expense of the Grantors, (i) such Grantor will maintain the
security interest created by this Agreement in the Collateral as a perfected
security interest having the priority set forth in the Intercreditor Agreement
and shall defend such security interest against the claims and demands of all
Persons (other than with respect to Permitted Liens), and (ii) at any time
and from time to time, upon the written request of the Collateral Agent, such
Grantor shall promptly and duly execute and deliver, and file and have
recorded, such further instruments and documents and take such further action
as the Collateral Agent may reasonably deem necessary for the purpose of
obtaining or preserving the full benefits of this Agreement and the rights and
powers herein granted, including the filing of any financing statements,
continuation statements and other documents (including this Agreement) under
the UCC (or other applicable Laws) in effect in any United States jurisdiction
with respect to the security interest created hereby and the execution and
delivery of Control Agreements, all in form reasonably satisfactory to the Collateral
Agent and in such offices (including, without limitation, the United States
Patent and Trademark Office and the United States Copyright Office) wherever
required by applicable Law to perfect, continue and maintain a valid,
enforceable security interest in the Collateral as provided herein and to
preserve the other rights and interests granted to the Collateral Agent
hereunder, as against third parties (other than with respect to Permitted
Liens), with respect to the Collateral.

 

SECTION 4.4.                 Other Actions.  In order to further insure the attachment,
perfection and priority of, and the ability of the Collateral Agent to enforce,
the Collateral Agent’s security interest in the Collateral, each Grantor
represents, warrants and agrees, in each case at such Grantor’s own expense,
with respect to the following Collateral that:

 

14

 

(a)           Instruments and Tangible Chattel Paper.  As of the date hereof (i) no amount
payable under or in connection with any of the Collateral is evidenced by any
Instrument or Tangible Chattel Paper other than such Instruments and Tangible
Chattel Paper listed in Schedule 10 of the Perfection Certificate and
(ii) each Instrument and each item of Tangible Chattel Paper with an individual
face value in excess of $500,000 (or, with respect to all such Instruments or
Chattel Paper, an aggregate face value in excess of $2,500,000) listed in
Schedule 10 of the Perfection Certificate, to the extent requested by the
Collateral Agent or the ABL Agent, has been properly endorsed, assigned and
delivered to (i) the Collateral Agent, to the extent that the same
constitutes Proceeds of the Notes Priority Collateral, and (ii) the ABL
Agent, to the extent that the same constitutes ABL Priority Collateral, accompanied
by instruments of transfer or assignment duly executed in blank.  If any amount payable under or in connection
with any of the Collateral shall be evidenced by any Instrument or Tangible
Chattel Paper with an individual face value in excess of $500,000 (or, with
respect to all such Instruments or Chattel Paper, an aggregate face value in
excess of $2,500,000), the Grantor acquiring such Instrument or Tangible
Chattel Paper shall forthwith endorse, assign and deliver the same (i) if
the same constitutes Proceeds of the Notes Priority Collateral, to the
Collateral Agent (with copies to the ABL Agent), and (ii) if the same
constitutes ABL Priority Collateral, to the ABL Agent (with copies to the
Collateral Agent), accompanied by such instruments of transfer or assignment
duly executed in blank as the Collateral Agent or the ABL Agent may reasonably
request from time to time.

 

(b)           Investment Property.

 

(i)            If any Grantor shall at any time hold or acquire any
certificated securities constituting Investment Property (other than any
Excluded Property, Equity Interests of any Person that is not a Subsidiary of
the Issuers with an aggregate market value of less than $2,000 and Equity
Interests in Topco Holdings Inc.), such Grantor shall promptly: (A) endorse,
assign and deliver the same to the Collateral Agent, accompanied by such
instruments of transfer or assignment duly executed in blank, all in form and
substance reasonably satisfactory to the Collateral Agent; or (B) deliver
such securities into a Securities Account with respect to which a securities
account control agreement is in effect, in favor of the ABL Agent.  If any securities now or hereafter acquired
by any Grantor constituting Investment Property, other than any Excluded
Property, are uncertificated and are issued to such Grantor or its nominee
directly by the issuer thereof, such Grantor shall promptly notify the
Collateral Agent thereof and, pursuant to an agreement in form reasonably
satisfactory to the Collateral Agent either (A) cause the issuer to agree
to comply with instructions as to such securities from the Collateral Agent or
arrange for the Collateral Agent to become the registered owner of the
securities.

 

(ii)           As between the Collateral Agent and the Grantors, the
Grantors shall bear the investment risk with respect to the Investment Property
and Pledged Securities, and the risk of loss of, damage to, or the destruction
of the Investment Property and Pledged Securities, whether in the possession
of, or maintained as a security entitlement or deposit by, or subject to the
control of, the Collateral Agent, a Securities Intermediary, any Grantor or any
other Person.

 

15

 

(c)           Commercial Tort Claims.   As of the date hereof, it holds no Commercial
Tort Claims other than those listed in Schedule 12 of the Perfection
Certificate.  If any Grantor shall at any
time hold or acquire a Commercial Tort Claim having a value in excess of
$2,500,000, such Grantor shall immediately notify the Collateral Agent in
writing signed by such Grantor of the brief details thereof and grant to the
Collateral Agent in such writing a security interest therein and in the
Proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance reasonably satisfactory to the Collateral Agent.

 

(d)           Post-Closing Real Estate Collateral; After-Acquired
Real Estate Collateral.

 

(i)            Within sixty (60) days after the Issue Date, the
Collateral Agent shall have received each of the following documents with
respect to the Lancaster Property, which shall be reasonably satisfactory in
form to the Collateral Agent.

 

(A)          Insurance. 
Policies or certificates of insurance covering the Collateral and
Mortgaged Property of the Issuers and the Guarantors, for the benefit of the
Collateral Agent, as additional insured and loss payee and mortgagee and shall
otherwise bear endorsements substantially similar to those provided to the ABL
Agent.

 

(B)           Mortgage. 
Fully executed counterparts of the Mortgage which Mortgage shall cover
the Mortgaged Property, together with evidence that counterparts of the
Mortgage have been delivered to any nationally recognizable title insurance
company as shall be retained by Holdings (the “Title Company”) for
recording in all places to the extent reasonably necessary to effectively
create a valid and enforceable first priority mortgage lien on the Mortgaged
Property in favor of the Collateral Agent for its benefit and the benefit of
the Secured Parties, securing the Secured Obligations (provided that in
jurisdictions that impose mortgage recording taxes, such Mortgage shall not
secure indebtedness in an amount exceeding 100% of the fair market value of the
Mortgaged Property, as reasonably determined, in good faith, by Holdings).

 

(C)           Counsel Opinions. 
Opinions addressed to the Collateral Agent, of local counsel in the
jurisdiction where the Mortgaged Property is located covering customary
matters.

 

(D)          Title Insurance. 
With respect to the Mortgage encumbering the Mortgaged Property, a policy
of title insurance (or commitment to issue such a policy having the effect of a
policy of title insurance) insuring (or committing to insure) the lien of such
Mortgage as a valid and enforceable first priority mortgage or deed of trust
lien on the Mortgaged Property described therein, in an amount not less than
100% of the fair market value of the Mortgaged Property as reasonably
determined, in good faith, by Holdings, (such policy collectively, the “Mortgage
Policy”) issued by such Title Company, which reasonably assures that the
Mortgage on such Mortgaged Property is a valid and enforceable mortgage 

 

16

 

lien on the Mortgaged
Property, free and clear of all defects and encumbrances except liens with junior
priority subject only to the Permitted Liens set forth in clauses (c)(1), (2),
(5), (7) and (h) of the definition of “Permitted Lien” in the
Indenture; provided, however, that in the case of clauses (c)(1),
(2) and (7), the Company shall bond over or  take any other action reasonably necessary or
required by the Title Company to delete any exception relating thereto
(excluding endorsements or coverage related to creditors’ rights).

 

(E)           Survey. 
Survey of the Mortgaged Property (and all improvements thereon) which is
(a) (i) prepared by a surveyor or engineer licensed to perform
surveys in the jurisdiction where such Mortgaged Property is located,
(ii) dated (or redated) not earlier than six months prior to the date of
delivery thereof unless there shall have occurred within six months prior to
such date of delivery any exterior construction on the site of such Mortgaged
Property or any easement, right of way or other interest in the Mortgaged
Property has been granted or become effective through operation of law or
otherwise with respect to such Mortgaged Property which, in either case, can be
depicted on a survey, in which events, as applicable, such survey shall be
dated (or redated) after the completion of such construction or if such
construction shall not have been completed as of such date of delivery, not
earlier than 20 days prior to such date of delivery, or after the grant or
effectiveness of any such easement, right of way or other interest in the
Mortgaged Property, (iii) certified by the surveyor to the Collateral
Agent and the Title Company, (iv) complying in all respects with the
minimum detail requirements of the American Land Title Association as such
requirements are in effect on the date of preparation of such survey and
(v) sufficient for the Title Company to remove all standard survey
exceptions from the title insurance policy (or commitment) relating to such
Mortgaged Property and issue the endorsements of the type required by clause
(D).

 

(F)           Fixture filings. 
Proper fixture filings under the Uniform Commercial Code on Form UCC-1
for filing under the Uniform Commercial Code in the appropriate jurisdiction in
which the Mortgaged Property is located, to the extent reasonably necessary in
the jurisdiction in which the Mortgaged Property is located, to perfect the
security interests in fixtures purported to be created by the Mortgage in favor
of the Collateral Agent for its benefit and the benefit of the Secured Parties.

 

(G)           Mortgaged Property Indemnification.  With respect to the Mortgaged Property, such
affidavits, certificates, instruments of indemnification and other items
(including a so-called “gap” indemnification) as shall be reasonably required
to induce the Title Company to issue the Mortgage Policy and endorsements
contemplated above.

 

(H)          Collateral Fees and Expenses.  Evidence of payment by the Issuers of all
Mortgage Policy premiums, search and examination charges, mortgage recording

 

17

 

taxes, fees, charges, costs
and expenses required for the recording of the Mortgage, fixture filings and
issuance of the Mortgage Policy referred to above.

 

(ii)           In the event that following the Issue Date, any Grantor
shall acquire any fee simple ownership interest in any Real Estate Asset
(except to the extent subject to a Lien permitted by clauses (d), (g), (j) or
(p) (as it relates to any of the foregoing) of the definition of “Permitted
Liens” in the Indenture to the extent the documentation relating to such Lien
prohibits the granting of a Lien thereon to secure the Secured Obligations)
with a Fair Market Value in excess of $5,000,000 as of the date of acquisition
(a “Specified Real Property”), such Grantor shall provide a Mortgage in
favor of the Collateral Agent in such Specified Real Property within 120 days
following the date of acquisition thereof. 
In the event that any Permitted Additional Pari Passu Obligations are
incurred following the date any Mortgage is provided, the Grantors shall notify
the Collateral Agent thereof in writing and within 120 days following such
incurrence take all such action as may be reasonably required to amend each
then existing Mortgage in order to ensure that such Permitted Additional Pari
Passu Obligations are secured by such Mortgage. 
In connection with the provision of any new Mortgage, the related
Grantors will, within 120 days, provide all items listed in clauses (A) through
(H) of this SECTION 4.4 (each in form and substance reasonably
satisfactory to the Collateral Agent). In connection with the provision of any
amendment to any Mortgage pursuant to this SECTION 4.4, the related
Grantors will, within 120 days, provide a UCC-3 Amendment (if applicable), a
title insurance endorsement, local counsel opinion and evidence of insurance
(each in form reasonably satisfactory to the Collateral Agent).

 

SECTION 4.5.                 Joinder of Additional
Guarantors.  The Grantors shall cause
each direct or indirect Subsidiary (whether by acquisition or creation) of any
Grantor that is required to become a party to this Agreement pursuant to Section 4.08
of the Indenture and/or a similar provision of any Permitted Additional Pari
Passu Lien Agreement to execute and deliver in favor of the Collateral Agent a
supplement to this Agreement in the form of Exhibit 1 and, upon
such execution and delivery, such Subsidiary shall constitute a “Guarantor” and
a “Grantor” for all purposes hereunder with the same force and effect as if
originally named as a Guarantor, as applicable, and Grantor herein.  The rights and obligations of each Grantor
hereunder shall remain in full force and effect notwithstanding the addition of
any new Guarantor and Grantor as a party to this Agreement.

 

SECTION 4.6.                 Supplements; Further
Assurances.  Each Grantor shall take
such further actions, and execute and deliver to the Collateral Agent such
additional Mortgages,  assignments,
agreements, supplements, powers and instruments, as the Collateral Agent may in
its reasonable judgment deem necessary or appropriate, wherever required by
Law, in order to perfect, preserve and protect the security interest in the
Collateral as provided herein and the rights and interests granted to the
Collateral Agent hereunder, to carry into effect the purposes hereof or better
to assure and confirm unto the Collateral Agent or permit the Collateral Agent
to exercise and enforce its rights, powers and remedies hereunder with respect
to any Collateral.  Without limiting the
generality of the foregoing, each Grantor shall make, execute, endorse,
acknowledge, file or re-file and/or deliver to the Collateral Agent from time
to time upon reasonable request such lists, descriptions and designations of
the Collateral, copies of warehouse receipts,

 

18

 

receipts in the nature of warehouse receipts, bills
of lading, documents of title, vouchers, invoices, schedules, confirmatory
assignments, supplements, additional security agreements, conveyances,
financing statements, transfer endorsements, powers of attorney, certificates,
reports and other assurances or instruments. 
If an Event of Default has occurred and is continuing, the Collateral
Agent may institute and maintain, in its own name or in the name of any
Grantor, such suits and proceedings as the Collateral Agent may be advised by
counsel shall be necessary or expedient to prevent any impairment of the
security interest in or the perfection thereof in the Collateral.  All of the foregoing shall be at the sole
cost and expense of the Grantors.  The
Grantors and the Collateral Agent acknowledge that this Agreement is intended
to grant to the Collateral Agent, for the benefit of the Secured Parties, a
security interest in and Lien upon the Collateral and shall not constitute or
create a present assignment of any of the Collateral.

 

ARTICLE V

 

REPRESENTATIONS, WARRANTIES
AND COVENANTS

 

Each
Grantor represents, warrants and covenants as follows:

 

SECTION 5.1.                 Title.  No financing statement or other public notice
with respect to all or any part of the Collateral is on file or of record in
any public office, except such as have been filed in favor of the Collateral
Agent pursuant to this Agreement or as are permitted by the Indenture and each
Permitted Additional Pari Passu Lien Agreement. 
No Person other than the Collateral Agent or the ABL Agent has control or
possession of all or any part of the Collateral, except as permitted by the
Indenture and each Permitted Additional Pari Passu Lien Agreement; provided,
however, that no Grantor makes any representation or warranty as to the
possession or control of any Intellectual Property Collateral that has not been
registered or applied for with a Governmental Authority.

 

SECTION 5.2.                 Limitation on Liens; Defense
of Claims; Transferability of Collateral. 
Each Grantor is as of the date hereof, and, as to Collateral acquired by
it from time to time after the date hereof, such Grantor will be, the sole
owner of all Collateral pledged by it hereunder free from any Lien or other
right, title or interest of any Person other than the Liens and security
interest created by this Agreement and Permitted Liens; provided, however, that
no Grantor makes any representation or warranty as to the ownership of any
Intellectual Property Collateral that has not been registered or applied for
with a Governmental Authority.  Each
Grantor shall, at its own cost and expense, defend title to the Collateral
pledged by it hereunder and the security interest therein and Lien thereon
granted to the Collateral Agent and the priority thereof against all claims and
demands of all Persons, at its own cost and expense, at any time claiming any
interest therein adverse to the Collateral Agent or any other Secured Party
other than Permitted Liens.  Except as
permitted by the Indenture and each Permitted Additional Pari Passu Lien
Agreement, there is no agreement, and no Grantor shall enter into any agreement
or take any other action, that would restrict the transferability of any of the
Collateral or otherwise impair or conflict with such Grantors’ obligations or
the rights of the Collateral Agent hereunder.

 

19

 

SECTION 5.3.                 Chief Executive Office;
Change of Name; Jurisdiction of Organization.

 

(a)           The exact legal name, type of organization, jurisdiction
of organization, federal taxpayer identification number, organizational
identification number and chief executive office of such Grantor is indicated
next to its name in Schedules 1(a) and 2 of the Perfection
Certificate.  Such Grantor shall furnish
to the Collateral Agent prompt notice (but in any event not more than thirty
(30) days after any change referred to herein) of any change in: (i) any
Grantor’s legal name or in any trade name used to identify it in the conduct of
its business or in the ownership of its properties; (ii) the location of
any Grantor’s chief executive office, its principal place of business, any
office in which it maintains books or records relating to Collateral owned by
it or any office or facility at which Collateral owned by it is located
(including the establishment of any such new office or facility); (iii) any
Grantor’s organizational structure (iv) any Grantors’ jurisdiction of
incorporation or formation (in each case, including by merging with or into any
other entity, reorganizing, dissolving, liquidating, reorganizing or organizing
in any other jurisdiction); or (v) any Grantor’s Federal Taxpayer
Identification Number or organizational identification number assigned to it by
its state of organization.  Such Grantor
agrees (A) not to effect or permit any such change unless all filings have
been made under the UCC or otherwise that are required in order for the
Collateral Agent to continue at all times following such change to have a
valid, legal and perfected security interest in all the Collateral (subject to
Permitted Liens) and (B) to take all action required to maintain the
perfection and priority of the security interest of the Collateral Agent for
the benefit of the Secured Parties in the Collateral intended to be granted
hereunder.  Each Grantor agrees to
promptly provide the Collateral Agent with certified organizational documents
reflecting any of the changes described in the preceding sentence.

 

(b)           The Collateral Agent may rely on opinions of counsel as to
whether any or all UCC financing statements of the Grantors need to be amended
as a result of any of the changes described in SECTION 5.3(a).  The Collateral Agent shall have no duty to
inquire about such changes.

 

SECTION 5.4.                 [Reserved].

 

SECTION 5.5.                 Due Authorization and
Issuance.  All of the Pledged
Interests issued by any Grantor or any Subsidiary thereof have been duly
authorized, validly issued and, to the extent applicable, fully paid and
non-assessable.  There is no amount or
other obligation owing by any Grantor to any issuer of the Pledged Interests in
exchange for or in connection with the issuance of the Pledged Interests or any
Grantor’s status as a partner or a member of any issuer of the Pledged
Interests.

 

SECTION 5.6.                 No Claims.  Such Grantor owns or has rights to use all of
the Collateral pledged by it hereunder and all rights with respect to any of
the foregoing used in, necessary for or material to such Grantor’s business as
currently conducted.  The use by such
Grantor of such Collateral and all such rights with respect to the foregoing do
not infringe on the rights of any Person other than such infringement which
would not, individually or in the aggregate, result in a Material Adverse
Effect.  No claim has been made and
remains outstanding that such Grantor’s use of any Collateral does or may violate
the rights of any third Person that would individually, or in the aggregate,
have a Material Adverse Effect.

 

20

 

SECTION 5.7.                 No Conflicts, Consents, etc.  No consent of any party (including, without
limitation, equity holders or creditors of such Grantor) and no consent,
authorization, approval, license or other action by, and no notice to or filing
with, any Governmental Authority or regulatory body or other Person is required
(a) for the pledge by such Grantor of the Collateral pledged by it
pursuant to this Agreement or for the execution, delivery or performance hereof
by such Grantor, (b) for the exercise by the Collateral Agent of the
voting or other rights provided for in this Agreement or (c) for the
exercise by the Collateral Agent of the remedies in respect of the Collateral
pursuant to this Agreement except, in each case, for such consents which have
been obtained prior to the date hereof. 
Following the occurrence and during the continuation of an Event of
Default, if the Collateral Agent desires to exercise any remedies, voting or
consensual rights or attorney-in-fact powers set forth in this Agreement and
determines it necessary to obtain any approvals or consents of any Governmental
Authority or any other Person therefor, then, upon the reasonable request of
the Collateral Agent, such Grantor agrees to use commercially reasonable
efforts to assist and aid the Collateral Agent to obtain as soon as
commercially practicable any necessary approvals or consents for the exercise
of any such remedies, rights and powers.

 

SECTION 5.8.                 Collateral Information.  All information set forth herein, including
the schedules annexed hereto, and all information contained in any documents,
schedules and lists heretofore delivered to any Secured Party in connection
with this Agreement, in each case, relating to the Collateral, is accurate and
complete in all material respects. 
Should any of the information on any of the schedules hereto become
inaccurate or misleading in any material respect as a result of changes after
the Issue Date, the Grantors shall advise the Collateral Agent in writing of
such revisions or updates as may be necessary or appropriate to update or
correct the same.

 

SECTION 5.9.                 Insurance.  Each Grantor shall use commercially
reasonable efforts to cause all property insurance policies covering Collateral
located in the U.S. and all U.S. general liability insurance policies of the
Grantors to name the Collateral Agent as additional insured or loss payee, as
applicable and, once obtained, the Grantors shall deliver to the Collateral
Agent the original certificates of insurance evidencing that such U.S. property
and general liability insurance policies of the Grantors that name the
Collateral Agent as additional insured or loss payee, as applicable are in
force.  Each Grantor hereby irrevocably
makes, constitutes and appoints the Collateral Agent (and all officers,
employees or agents designated by the Collateral Agent) as such Grantor’s true
and lawful agent (and attorney-in-fact), exercisable only after the occurrence
and during the continuance of an Event of Default, for the purpose of making,
settling and adjusting claims in respect of the Collateral under policies of
insurance, endorsing the name of such Grantor on any check, draft, instrument
or other item of payment for the proceeds of such policies of insurance and for
making all determinations and decisions with respect thereto.  In the event that any Grantor at any time or
times shall fail to obtain or maintain any of the policies of insurance
required hereby or to pay any premium in whole or in part relating thereto, the
Collateral Agent may, without waiving or releasing any obligation or liability
of the Grantors hereunder or any Default or Event of Default, in its sole
discretion, obtain and maintain such policies of insurance and pay such premium
and take any other actions with respect thereto as the Collateral Agent deems
advisable.  All sums disbursed by the
Collateral Agent in connection with this SECTION 5.9, including
reasonable attorneys’ fees, court costs, expenses and other 

 

21

 

charges relating thereto, shall be payable, upon
demand, by the Grantors to the Collateral Agent and shall be additional Secured
Obligations secured hereby.

 

SECTION 5.10.               Payment of Taxes; Compliance
with Laws; Contested Liens; Claims. 
Each Grantor represents and warrants that all Claims imposed upon or
assessed against the Collateral have been paid and discharged except to the
extent such Claims constitute a Lien not yet due and payable or a Permitted
Encumbrance.  Each Grantor shall comply
with all applicable Laws relating to the Collateral the failure to comply with
which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.  Each Grantor
may at its own expense contest the validity, amount or applicability of any
Claims so long as the contest thereof shall be conducted in accordance with,
and permitted pursuant to the provisions of, the Indenture and each Permitted
Additional Pari Passu Lien Agreement. 
Notwithstanding the foregoing provisions of this SECTION 5.10,
no contest of any such obligation may be pursued by such Grantor if such
contest would expose the Collateral Agent or any other Secured Party to
(a) any possible criminal liability or (b) any additional civil
liability for failure to comply with such obligations unless such Grantor shall
have furnished a bond or other security therefor satisfactory to the Collateral
Agent, or such other Secured Party, as the case may be.

 

SECTION 5.11.               Access to Collateral, Books
and Records; Other Information.  Such
Grantor shall, at any and all times, within a reasonable time after written
request by the Collateral Agent, furnish or cause to be furnished to the
Collateral Agent, in such manner and in such detail as may be reasonably
requested by the Collateral Agent, additional information with respect to the
Collateral.

 

ARTICLE VI

 

CERTAIN PROVISIONS
CONCERNING SECURITIES COLLATERAL

 

SECTION 6.1.                 Pledge of Additional
Securities Collateral.  Each Grantor
shall, upon obtaining any Pledged Securities or Intercompany Notes of any Person
required to be pledged hereunder, accept the same in trust for the benefit of
the Collateral Agent and the ABL Agent and forthwith deliver (a) to the
Collateral Agent a pledge amendment, duly executed by such Grantor, in
substantially the form of Exhibit 2 annexed hereto (each, a “Pledge
Amendment”), and (b) to the Collateral Agent and/or the ABL Agent the
certificates and other documents required under SECTION 4.1 and SECTION 4.2
hereof in respect of the additional Pledged Securities or Intercompany Notes
which are to be pledged pursuant to this Agreement, and confirming the
attachment of the Lien hereby created on and in respect of such additional
Pledged Securities or Intercompany Notes. 
Each Grantor hereby authorizes the Collateral Agent to attach each
Pledge Amendment to this Agreement and agrees that all Pledged Securities or
Intercompany Notes listed on any Pledge Amendment delivered to the Collateral
Agent shall for all purposes hereunder be considered Collateral.

 

22

 

SECTION 6.2.                 Voting Rights;
Distributions; etc.

 

(a)           So long as a Grantor has not received notice that an Event
of Default has occurred and is continuing:

 

(i)            Such Grantor shall be entitled to exercise any and all
voting and other consensual rights pertaining to the Securities Collateral or
any part thereof for any purpose not inconsistent with the terms or purposes
hereof, the Indenture and each Permitted Additional Pari Passu Lien Agreement
or any other document evidencing the Secured Obligations.

 

(ii)           Such Grantor shall be entitled to receive and retain, and
to utilize free and clear of the Lien hereof, any and all Distributions, but
only if and to the extent made in accordance with the provisions of the
Indenture and each Permitted Additional Pari Passu Lien Agreement; provided,
however, that any and all such Distributions consisting of rights or
interests in the form of securities shall be forthwith delivered to hold as
Collateral and shall, if received by any Grantor, be received in trust for the
benefit of the Collateral Agent, be segregated from the other property or funds
of such Grantor and be forthwith delivered to the Collateral Agent, to hold as
Collateral in the same form as so received (with any necessary endorsement).

 

(iii)          The Collateral Agent shall be deemed without further action
or formality to have granted to each Grantor all necessary consents relating to
voting rights and shall, if necessary, promptly upon written request of
any Grantor and at the sole cost and expense of the Grantors, from time to time
execute and deliver (or cause to be executed and delivered) to such Grantor all
such instruments as such Grantor may reasonably request in order to permit such
Grantor to exercise the voting and other rights which it is entitled to
exercise pursuant to SECTION 6.2(a)(i) hereof and to receive
the Distributions which it is authorized to receive and retain pursuant to SECTION 6.2(a)(ii) hereof.

 

(b)           Upon a Grantor’s receipt of notice that an Event of
Default has occurred and is continuing, all rights of each Grantor to exercise
the voting and other consensual rights it would otherwise be entitled to
exercise pursuant to SECTION 6.2(a) hereof without any action,
other than, in the case of any Securities Collateral, or the giving of any
notice shall immediately cease, and all such rights shall thereupon become
vested, in the Collateral Agent, who shall thereupon have the sole right to
exercise such voting and other consensual rights; provided  that
the Collateral Agent, shall have the right, in its sole discretion, from time
to time following the occurrence and continuance of an Event of Default to
permit such Grantor to exercise such rights under SECTION 6.2(a).

 

(c)           Upon a Grantor’s receipt of notice that an Event of
Default has occurred and is continuing, all rights of each Grantor to receive
Distributions which it would otherwise be authorized to receive and retain
pursuant to SECTION 6.2(a)(ii) hereof shall cease and all such
rights shall thereupon become vested in the Collateral Agent, which shall
thereupon have the sole right to receive and hold as Collateral such
Distributions.  After such Event of
Default is no longer continuing, each Grantor shall have the right to exercise
the voting, managerial and other consensual rights and powers that it would
otherwise be entitled to pursuant to SECTION 6.2(a) 

 

23

 

hereof and receive the payments, proceeds,
dividends, distributions, monies, compensation, property, assets, instruments
or rights which it would be authorized to receive and retain pursuant to SECTION 6.2(a)(ii).

 

(d)           Each Grantor shall, at its sole cost and expense, from
time to time execute and deliver to the Collateral Agent appropriate
instruments as the Collateral Agent may reasonably request in order to permit
the Collateral Agent to exercise the voting and other rights which it may be
entitled to exercise pursuant to SECTION 6.2(b) hereof and to
receive all Distributions which it may be entitled to receive under SECTION 6.2(c) hereof.

 

(e)           All Distributions which are received by any Grantor
contrary to the provisions of SECTION 6.2(c) hereof shall be
received in trust for the benefit of the Collateral Agent, shall be segregated
from other funds of such Grantor and shall immediately be delivered to the
Collateral Agent in accordance with the provisions of the Indenture and each
Permitted Additional Pari Passu Lien Agreement in the same form as so received
(with any necessary endorsement).

 

SECTION 6.3.                 Organizational Documents.  Each Grantor has delivered to the Collateral
Agent or its representatives true, correct and complete copies of its
Organization Documents.  The Organization
Documents are in full force and effect, have not as of the date hereof been
amended or modified except as disclosed to the Collateral Agent.

 

SECTION 6.4.                 Defaults, Etc.  Such Grantor is not in default in the payment
of any portion of any mandatory capital contribution, if any, required to be
made under any agreement to which such Grantor is a party relating to the
Pledged Securities pledged by it.  No
Securities Collateral pledged by such Grantor is subject to any defense, offset
or counterclaim, nor have any of the foregoing been asserted or alleged against
such Grantor by any Person with respect thereto, and as of the date hereof,
there are no certificates, instruments, documents or other writings (other than
the Organization Documents and certificates, if any, delivered to the
Collateral Agent) which evidence any Pledged Securities of such Grantor.

 

SECTION 6.5.                 Certain Agreements of
Grantors As Issuers and Holders of Equity Interests.

 

(a)           In the case of each Grantor which is an issuer of
Securities Collateral, such Grantor agrees to be bound by the terms of this
Agreement relating to the Securities Collateral issued by it and will comply
with such terms insofar as such terms are applicable to it.

 

(b)           In the case of each Grantor which is a partner in a
partnership, limited liability company or other entity, such Grantor hereby
consents to the extent required by the applicable Organization Document to the
pledge by each other Grantor, pursuant to the terms hereof, of the Pledged
Interests in such partnership, limited liability company or other entity and,
upon the occurrence and during the continuance of an Event of Default, to the
transfer of such Pledged Interests to the Collateral Agent or its nominee and
to the substitution of the Collateral Agent or its nominee as a substituted
partner or member in such partnership, limited liability company or other
entity with all the rights, powers and duties of a general partner or a limited
partner or member, as the case may be.

 

24

 

ARTICLE VII

 

CERTAIN PROVISIONS
CONCERNING INTELLECTUAL

PROPERTY COLLATERAL

 

SECTION 7.1.                 Grant of License.  Without limiting the rights of the Collateral
Agent as the holder of a Lien on the Intellectual Property Collateral, for the
purpose of enabling the Collateral Agent, solely upon the occurrence and during
the continuance of an Event of Default, to exercise rights and remedies under ARTICLE IX
hereof at such time as the Collateral Agent shall be lawfully entitled to
exercise such rights and remedies, and for no other purpose, each Grantor
hereby grants to the Collateral Agent, to the extent assignable, a
non-exclusive license (exercisable without payment of royalty or other
compensation to such Grantor) to use, assign, license or sublicense any of the
Intellectual Property Collateral now owned or hereafter acquired by such
Grantor, wherever the same may be located, including in such license 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 7.2.                 Registrations.  Except pursuant to licenses and other
agreements that are not material licenses and other agreements entered into by
any Grantor that are listed in Schedule 11(a) or Schedule 11(b) of
the Perfection Certificate, and except the inherent uncertainty with respect to
a Governmental Authority’s ultimate granting (whether by issuing or
registering) of any pending Patent, Trademark or Copyright application and the
validity of any such application, on and as of the date hereof, (a) each
Grantor owns and possesses the right to use, and has done nothing to authorize
or enable any other Person to use, any material Copyright, Patent or Trademark
listed in Schedules 11(a) or 11(b) of the Perfection Certificate, and
(b) all registrations listed in Schedules 11(a) and 11(b) of the
Perfection Certificate are valid and in full force and effect.

 

SECTION 7.3.                 No Violations or Proceedings.  To each Grantor’s knowledge, on and as of the
date hereof, there is no material violation or infringement by others of any
right of such Grantor with respect to any Copyright, Patent or Trademark listed
in Schedules 11(a) or 11(b) of the Perfection Certificate,
respectively, pledged by it under the name of such Grantor.

 

SECTION 7.4.                 Protection of Collateral
Agent’s Security.  On a continuing
basis, each Grantor shall, at its sole cost and expense, (a) promptly
following its becoming aware thereof, notify the Collateral Agent of
(i) any adverse determination in any proceeding in the United States
Patent and Trademark Office or the United States Copyright Office with respect
to any material Patent, Trademark or Copyright or (ii) the institution of
any proceeding or any adverse determination in any federal, state or local
court or administrative body regarding such Grantor’s claim of ownership in or
right to use any material Patent, Trademark or Copyright, (b) maintain and
protect the Intellectual Property Collateral material to the use and operation
of the Collateral as presently used and operated, except for any such
Intellectual Property Collateral that such Grantor believes, in its reasonable
business judgment, should not be maintained or protected, (c) not settle
or compromise any pending or future litigation or administrative proceeding
with respect to such Intellectual Property Collateral, in each case except as
shall be consistent with commercially reasonable business judgment and
(d) with respect to any federally registered 

 

25

 

Intellectual Property Collateral, of which any
Grantor obtains ownership of after the date hereof, such Grantor shall, on an
annual basis within thirty (30) days of each anniversary of the effective date
of this Agreement, (i) provide to the Collateral Agent written notice of
any such items of Intellectual Property Collateral and (ii) confirm the
attachment of the Lien and security interest created by this Agreement to any
such items by execution and filing of an instrument in form reasonably
acceptable to the Collateral Agent.

 

SECTION 7.5.                 After-Acquired Property.  If any Grantor shall, at any time prior to
the release of the Security Interest, obtain any rights to any additional
Intellectual Property Collateral, the provisions hereof shall automatically
apply thereto and any such item with respect to such Grantor shall
automatically constitute Intellectual Property Collateral if such would have
constituted Intellectual Property Collateral at the time of execution hereof
and be subject to the Lien and security interest created by this Agreement
without further action by any party.

 

SECTION 7.6.                 Litigation.  Upon the occurrence and solely during the
continuance of any Event of Default, the Collateral Agent shall have the right
but shall in no way be obligated to file applications for protection of the
Intellectual Property Collateral and/or bring suit to enforce the Intellectual
Property Collateral and any license thereunder. 
In the event of such suit, each Grantor shall, at the reasonable request
of the Collateral Agent, do any and all lawful acts and execute any and all
documents requested by the Collateral Agent in aid of such enforcement.

 

ARTICLE VIII

 

[RESERVED]

 

ARTICLE IX

 

REMEDIES

 

SECTION 9.1.                 Remedies.  Upon the occurrence and during the
continuance of any Event of Default, the Collateral Agent may from time to time
in respect of the Collateral, in addition to the other rights and remedies
provided for herein or otherwise available to it:

 

(a)           Personally, or by agents or attorneys, immediately take
possession of the Collateral or any part thereof, from any Grantor or any other
Person who then has possession of any part thereof with or without notice or
process of law, and for that purpose may enter upon any Grantor’s premises
where any of the Collateral is located, remove such Collateral, remain present
at such premises to receive copies of all communications and remittances
relating to the Collateral and use in connection with such removal and
possession any and all services, supplies, aids and other facilities of any
Grantor;

 

(b)           Demand, sue for, collect or receive any money or property
at any time payable or receivable in respect of the Collateral, including,
without limitation, instructing the obligor or obligors on any agreement,
instrument or other obligation constituting part of the Collateral to make any payment
required by the terms of such agreement, instrument

 

26

 

or other obligation directly
to the Collateral Agent, and in connection with any of the foregoing,
compromise, settle, extend the time for payment and make other modifications
with respect thereto; provided, however, that in the event that
any such payments are made directly to any Grantor, prior to receipt by any
such obligor of such instruction, such Grantor shall segregate all amounts
received pursuant thereto in trust for the benefit of the Collateral Agent and
shall promptly pay such amounts to the Collateral Agent;

 

(c)           Sell, assign, grant a license to use or otherwise
liquidate, or direct any Grantor to sell, assign, grant a license to use or
otherwise liquidate, any and all investments made in whole or in part with the
Collateral or any part thereof, and take possession of the proceeds of any such
sale, assignment, license or liquidation;

 

(d)           Take possession of the Collateral or any part thereof, by
directing any Grantor in writing to deliver the same to the Collateral Agent at
any place or places so designated by the Collateral Agent, in which event such
Grantor shall at its own expense: 
(i) forthwith cause the same to be moved to the place or places
designated by the Collateral Agent and therewith delivered to the Collateral
Agent; (ii) store and keep any Collateral so delivered to the Collateral
Agent at such place or places pending further action by the Collateral Agent;
and (iii) while the Collateral shall be so stored and kept, provide such
security and maintenance services as shall be necessary to protect the same and
to preserve and maintain them in good condition.  Each Grantor’s obligation to deliver the
Collateral as contemplated in this SECTION 9.1 is of the essence
hereof.  Upon application to a court of
equity having jurisdiction, the Collateral Agent shall be entitled to a decree
requiring specific performance by any Grantor of such obligation;

 

(e)           Withdraw all moneys, instruments, securities and other
property in any bank, financial securities, deposit or other account of any
Grantor constituting Collateral (including Trust Monies in the Collateral
Account) for application to the Secured Obligations as provided in ARTICLE X
hereof;

 

(f)            Retain and apply the Distributions to the Secured
Obligations as provided in ARTICLE X hereof;

 

(g)           Exercise any and all rights as beneficial and legal owner
of the Collateral, including, without limitation, perfecting assignment of and
exercising any and all voting, consensual and other rights and powers with
respect to any Collateral; and

 

(h)           Exercise all the rights and remedies of a secured party
under the UCC, and the Collateral Agent may also in its sole discretion,
without notice except as specified in SECTION 9.2 hereof, sell,
assign or grant a license to use the Collateral or any part thereof in one or
more parcels at public or private sale, at any exchange, broker’s board or at
any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for
future delivery, and at such price or prices and upon such other terms as the
Collateral Agent may deem commercially reasonable.  The Collateral Agent or any other Grantor or
any of their respective Affiliates may be the purchaser, licensee, assignee or
recipient of any or all of the Collateral at any such sale and shall be
entitled, for the purpose of bidding and 

 

27

 

making settlement or payment
of the purchase price for all or any portion of the Collateral sold, assigned
or licensed at such sale, to use and apply any of the Secured Obligations owed
to such Person as a credit on account of the purchase price of any Collateral
payable by such Person at such sale. 
Each purchaser, assignee, licensee or recipient at any such sale shall
acquire the property sold, assigned or licensed absolutely free from any claim
or right on the part of any Grantor, and each Grantor hereby waives, to the
fullest extent permitted by Law, all rights of redemption, stay and/or
appraisal which it now has or may at any time in the future have under any rule of
law or statute now existing or hereafter enacted.  The Collateral Agent shall not be obligated
to make any sale of Collateral regardless of notice of sale having been
given.  The Collateral Agent may adjourn
any public or private sale from time to time by announcement at 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. 
To the fullest extent permitted by Law, each Grantor hereby waives any
claims against the Collateral Agent arising by reason of the fact that the
price at which any Collateral may have been sold, assigned or licensed at such
a private sale was less than the price which might have been obtained at a
public sale, even if the Collateral Agent accepts the first offer received and
does not offer such Collateral to more than one offeree.

 

SECTION 9.2.                 Notice of Sale.  Each Grantor acknowledges and agrees that, to
the extent notice of sale or other disposition of Collateral shall be required
by applicable Law and unless the Collateral is perishable or threatens to
decline speedily in value, or is of a type customarily sold on a recognized
market (in which event the Collateral Agent shall provide such Grantor such
advance notice as may be practicable under the circumstances), ten (10) days’
prior notice to such Grantor of the time and place of any public sale or of the
time after which any private sale or other intended disposition is to take
place shall be commercially reasonable notification of such matters.  No notification need be given to any Grantor
if it has signed, after the occurrence of an Event of Default, a statement renouncing
or modifying (as permitted under Law) any right to notification of sale or
other intended disposition.

 

SECTION 9.3.                 Waiver of Notice and Claims.  Each Grantor hereby waives, to the fullest
extent permitted by applicable Law, notice or judicial hearing in connection
with the Collateral Agent’s taking possession or the Collateral Agent’s
disposition of any of the Collateral, including, without limitation, any and
all prior notice and hearing for any prejudgment remedy or remedies and any
such right which such Grantor would otherwise have under Law, and each Grantor
hereby further waives, to the fullest extent permitted by applicable Law:
(a) all damages occasioned by such taking of possession; (b) all
other requirements as to the time, place and terms of sale or other requirements
with respect to the enforcement of the Collateral Agent’s rights hereunder; and
(c) all rights of redemption, appraisal, valuation, stay, extension or
moratorium now or hereafter in force under any applicable Law.  The Collateral Agent shall not be liable for
any incorrect or improper payment made pursuant to this ARTICLE IX
in the absence of gross negligence or willful misconduct.  Any sale of, or the grant of options to
purchase, or any other realization upon, any Collateral shall operate to divest
all right, title, interest, claim and demand, either at law or in equity, of
the applicable Grantor therein and thereto, and shall be a perpetual bar both
at law and in equity against such Grantor and against any and all Persons 

 

28

 

claiming or attempting to claim the Collateral so
sold, optioned or realized upon, or any part thereof, from, through or under
such Grantor.

 

SECTION 9.4.                 Certain Sales of Collateral.

 

(a)           Each Grantor recognizes that, by reason of certain prohibitions
contained in law, rules, regulations or orders of any Governmental Authority,
the Collateral Agent may be compelled, with respect to any sale of all or any
part of the Collateral, to limit purchasers to those who meet the requirements
of such Governmental Authority.  Each
Grantor acknowledges that any such sales may be at prices and on terms less
favorable to the Collateral Agent than those obtainable through a public sale
without such restrictions, and, notwithstanding such circumstances, agrees that
any such restricted sale shall be deemed to have been made in a commercially
reasonable manner and that, except as may be required by applicable Law, the
Collateral Agent shall have no obligation to engage in public sales.

 

(b)           Each Grantor recognizes that, by reason of certain
prohibitions contained in the Securities Act, and applicable state securities
Laws, the Collateral Agent may be compelled, with respect to any sale of all or
any part of the Securities Collateral and Investment Property, to limit purchasers
to Persons who will agree, among other things, to acquire such Securities
Collateral or Investment Property for their own account, for investment and not
with a view to the distribution or resale thereof.  Each Grantor acknowledges that any such
private sales may be at prices and on terms less favorable to the Collateral
Agent than those obtainable through a public sale without such restrictions
(including, without limitation, a public offering made pursuant to a
registration statement under the Securities Act), and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner and that the Collateral Agent shall
have no obligation to engage in public sales and no obligation to delay the
sale of any Securities Collateral or Investment Property for the period of time
necessary to permit the issuer thereof to register it for a form of public sale
requiring registration under the Securities Act or under applicable state securities
Laws, even if such issuer would agree to do so.

 

(c)           If the Collateral Agent determines to exercise its right
to sell any or all of the Securities Collateral or Investment Property, upon
written request, the applicable Grantor shall from time to time furnish to the
Collateral Agent all such information as the Collateral Agent may reasonably
request in order to determine the number of securities included in the
Securities Collateral or Investment Property which may be sold by the
Collateral Agent as exempt transactions under the Securities Act and the rules of
the Securities and Exchange Commission thereunder, as the same are from time to
time in effect.

 

(d)           Each Grantor further agrees that a breach of any of the
covenants contained in this SECTION 9.4 will cause irreparable
injury to the Collateral Agent and the other Grantors, that the Collateral
Agent and the other Grantors have no adequate remedy at law in respect of such
breach and, as a consequence, that each and every covenant contained in this SECTION 9.4
shall be specifically enforceable against such Grantor, and such Grantor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Event of Default has
occurred and is continuing.

 

29

 

SECTION 9.5.                 No Waiver; Cumulative
Remedies.

 

(a)           No failure on the part of the Collateral Agent to
exercise, no course of dealing with respect to, and no delay on the part of the
Collateral Agent in exercising, any right, power or remedy hereunder shall operate
as a waiver thereof; nor shall any single or partial exercise of any such
right, power or remedy hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or remedy; nor shall the Collateral
Agent be required to look first to, enforce or exhaust any other security,
collateral or guaranties.  The remedies
herein provided are cumulative and are not exclusive of any remedies provided
by Law.

 

(b)           In the event that the Collateral Agent shall have
instituted any proceeding to enforce any right, power or remedy under this
Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall
have been discontinued or abandoned for any reason or shall have been
determined adversely to the Collateral Agent, then and in every such case, the
Grantors, the Collateral Agent and each other Secured Party shall be restored
to their respective former positions and rights hereunder with respect to the
Collateral, and all rights, remedies and powers of the Collateral Agent and the
other Secured Parties shall continue as if no such proceeding had been
instituted.

 

ARTICLE X

 

APPLICATION OF PROCEEDS

 

SECTION 10.1.               Application of Proceeds.  The proceeds received by the Collateral Agent
in respect of any sale of, collection from or other realization upon all or any
part of the Collateral or Mortgaged Property pursuant to the exercise by the
Collateral Agent of its remedies shall be applied, together with any other sums
then held by the Collateral Agent pursuant to this Agreement and any other
Security Document or in the Collateral Account, against the Secured Obligations
in the order set forth in Exhibit 4:

 

ARTICLE XI

 

MISCELLANEOUS

 

SECTION 11.1.               Concerning Collateral Agent.

 

(a)           Duties of The Collateral Agent.

 

(i)            If an Event of Default has occurred and is continuing and
the Collateral Agent has received written notice thereof from an Issuer, the
Trustee or any Additional Pari Passu Agent, the Collateral Agent may exercise
such of the rights and powers vested in it by this Agreement and the Security
Documents, and shall use the same degree of care and skill in its exercise as a
prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs; provided that, subject to the limitations on the
obligations of the Collateral Agent to take actions as provided herein, in the
Indenture or any Permitted Additional Pari Passu Lien Agreement, the Collateral
Agent shall exercise, or refrain from exercising, any remedies provided for
herein, in accordance with the written instructions of the Required Secured
Parties;

 

30

 

(ii)           Except during the continuance of an Event of Default:

 

(A)          the duties of the Collateral Agent shall be determined
solely by the express provisions of this Agreement and the Collateral Agent
need perform only those duties that are specifically set forth in this
Agreement and the other Security Documents and no others, and no implied
covenants or obligations shall be read into this Agreement or the Security
Documents against the Collateral Agent; and

 

(B)           in the absence of bad faith on its part, the Collateral
Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Collateral Agent.

 

(iii)          The Collateral Agent may not be relieved from liability for
its own gross negligent action, its own grossly negligent failure to act, or
its own willful misconduct, except that:

 

(A)          this paragraph does not limit the effect of paragraph (ii) or
(v) of this SECTION 11.1(a);

 

(B)           the Collateral Agent shall not be liable for any error of
judgment made in good faith by an officer of the Collateral Agent, unless it is
proved that the Collateral Agent was grossly negligent in ascertaining the
pertinent facts; and

 

(C)           the Collateral Agent shall not be liable with respect to
any action it takes or omits to take in good faith in accordance with a
direction received by it at the direction of the Required Secured Parties, or
for the method and place of conducting any proceeding for any remedy available
to the Collateral Agent, or exercising any trust or power conferred upon the
Collateral Agent, under this Agreement or any other Security Document.

 

(iv)          Whether or not therein expressly so provided, every
provision of this Agreement or any provision of any other Security Document
that in any way relates to the Collateral Agent is subject to paragraphs (i),
(ii), (iii), (v) and (vi) of this SECTION 11.1(a).

 

(v)           No provision of this Agreement or any other Security
Document shall require the Collateral Agent to expend or risk its own funds or
incur any liability.

 

(vi)          The Collateral Agent shall not be liable for interest on
any money received by it except as the Collateral Agent may agree in writing
with the Grantors.  Money held in trust
by the Collateral Agent need not be segregated from other funds except to the
extent required by law.

 

(b)           Rights of the Collateral Agent.

 

(i)            The Collateral Agent may conclusively rely and shall be
fully protected in acting or refraining from acting on any document believed by
it to be genuine and to have been signed or presented by the proper
Person.  The Collateral Agent need not
investigate any fact or 

 

31

 

matter stated in any such document. The Collateral
Agent shall not be obligated to communicate with or deal in any way with any
Secured Party other than the Trustee and any Additional Pari Passu Agent.  In determining (x) the amount of Secured
Obligations outstanding under the Indenture or any Permitted Additional Pari
Passu Lien Agreement or (y) whether the consent of any Secured Party to
any amendment, waiver or other action under this Agreement or any other
Security Document has been obtained, the Collateral Agent may conclusively rely
on any statement by the Trustee or the applicable Additional Pari Passu Agent
as to such matter.

 

(ii)           The Collateral Agent may act through its attorneys and
agents and shall not be responsible for the misconduct or negligence of any
attorney or agent appointed with due care.

 

(iii)          The Collateral Agent shall not be liable for any action it
takes or omits to take in good faith that it believes to be authorized or
within the rights or powers conferred upon it by this Agreement or any other
Security Document.  Whenever in the
administration of this Agreement or any Security Document the Collateral Agent
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Collateral Agent (unless other
evidence be herein specifically prescribed) may, in the absence of bad faith on
its part, conclusively rely upon an Officers’ Certificate.

 

(iv)          Unless otherwise specifically provided in this Agreement or
any other Security Document, any demand, request, direction or notice from any
Grantor shall be sufficient if evidenced by an Officer’s Certificate.

 

(v)           The Collateral Agent shall be under no obligation to
exercise any of the rights or powers vested in it by this Agreement or any
other Security Document at the request or direction of any of the Secured
Parties unless such Secured Parties shall have offered to the Collateral Agent
reasonable security and indemnity reasonably satisfactory to the Collateral
Agent against the costs, expenses and liabilities that might be incurred by it
in compliance with such request or direction.

 

(vi)          The Collateral Agent shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
documents, but the Collateral Agent, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the
Collateral Agent shall determine to make such further inquiry or investigation,
it shall be entitled to examine during normal business hours and upon
reasonable notice the books, records and premises of any Grantor, personally or
by agent or attorney at the sole cost of the Grantors, and shall incur no
liability or additional liability of any kind by reason of such inquiry or
investigation.

 

(vii)         The rights, privileges, protections and benefits given to
the Collateral Agent, including, without limitation, its rights to be
indemnified, are extended to, and shall be enforceable by, the Collateral Agent
in each of its capacities hereunder, and to each agent, custodian and other Persons
employed to act hereunder or under any Security Document.

 

32

 

(viii)        The Collateral Agent may request that
the Issuers deliver an Officers’ Certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Agreement or any other Security Document, which
Officers’ Certificate may be signed by any person authorized to sign an
Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded

 

(ix)           The permissive right of the Collateral Agent to take or
refrain from taking any actions enumerated in this Agreement or any other
Security Document shall not be construed as a duty.

 

(c)           Individual Rights of Collateral Agent.  The Collateral Agent in its individual or any
other capacity may become the owner or pledgee of Secured Obligations and may
otherwise deal with any Grantor or any Affiliate of any Grantor with the same
rights it would have if it were not Collateral Agent.

 

(d)           Collateral Agent’s Disclaimer.  The Collateral Agent shall not be responsible
for and makes no representation as to the validity or adequacy of this
Agreement or any other Security Document, or the existence, genuineness, value
or protection of any Collateral (except for the safe custody of Collateral in
its possession and the accounting for Trust Monies actually received by it in
accordance with the terms hereof), the legality, effectiveness or sufficiency
of any Security Document, or the creation, perfection, priority, sufficiency or
protection of any Lien on any Collateral, and it shall not be responsible for
any statement or recital in this Agreement or any other Security Document.

 

(e)           Replacement of Collateral Agent.  A resignation or removal of the Collateral
Agent and appointment of a successor Collateral Agent shall become effective
only upon the successor Collateral Agent’s acceptance of appointment as
provided in this SECTION 11.1(e).  The Collateral Agent may resign in writing at
any time by so notifying the Issuers, the Trustee and each Additional Pari
Passu Agent.  The Issuers may remove the
Collateral Agent if:

 

(i)            the Collateral Agent is removed as Trustee under the
Indenture;

 

(ii)           the Collateral Agent fails to comply with SECTION 11.1(g) hereof;

 

(iii)          the Collateral Agent is adjudged a bankrupt or an insolvent
or an order for relief is entered with respect to the Collateral Agent under
the Bankruptcy Code;

 

(iv)          a custodian or public officer takes charge of the
Collateral Agent or its property; or

 

(v)           the Collateral Agent becomes incapable of acting.

 

If
the Collateral Agent resigns or is removed or if a vacancy exists in the office
of Collateral Agent for any reason, the Issuers shall promptly appoint a
successor Collateral Agent which complies with any eligibility requirements
contained in the Indenture and each Permitted Additional Pari Passu Lien
Agreement.

 

33

 

If
a successor Collateral Agent does not take office within 30 days after the
retiring Collateral Agent resigns or is removed, the retiring Collateral Agent,
the Company or the holders of at least 10% in principal amount of the then
outstanding principal amount of Secured Obligations may petition any court of
competent jurisdiction for the appointment of a successor Collateral Agent.

 

A
successor Collateral Agent shall deliver a written acceptance of its
appointment to the retiring Collateral Agent and to the Issuer.  Thereupon, the resignation or removal of the
retiring Collateral Agent shall become effective, and the successor Collateral
Agent shall have all the rights, powers and the duties of the Collateral Agent
under this Agreement and the other Security Documents.  The successor Collateral Agent shall mail a
notice of its succession to the Trustee and each Additional Pari Passu
Agent.  The retiring Collateral Agent
shall promptly transfer all property held by it as Collateral Agent to the
successor Collateral Agent.

 

(f)            Successor Collateral Agent by Merger, Etc.  If the Collateral Agent consolidates, merges
or converts into, or transfers all or substantially all of its corporate trust
business to, another Person, the successor Person without any further act shall
be the successor Collateral Agent under this Agreement and the other Security
Documents.

 

(g)           Eligibility. 
There shall at all times be a Collateral Agent hereunder that (i) meets
the requirements for being a trustee under the Indenture (prior to the
discharge or defeasance of the Indenture) and (ii) following the discharge
or defeasance of the Indenture, meets the requirements for being the Additional
Pari Passu Agent under any then extant Permitted Additional Pari Passu Lien
Agreement.

 

(h)           Co-Collateral Agent; Separate Collateral Agent.  At any time or times, for the purpose of
meeting the legal requirements of any jurisdiction in which any of the
Collateral may at the time be located, the Issuers and the Collateral Agent
shall have power to appoint agents and sub-agents to the extent permitted under
the Indenture and each Permitted Additional Pari Passu Lien Agreement.

 

SECTION 11.2.               Collateral Agent May Perform;
Collateral Agent Appointed Attorney-in-Fact.  If any Grantor shall fail to perform any
covenants contained in this Agreement, in any of the Security Documents or in
the Indenture and each Permitted Additional Pari Passu Lien Agreement or if any
warranty on the part of any Grantor contained herein shall be breached, the
Collateral Agent may (but shall not be obligated to) do the same or cause it to
be done or remedy any such breach, and may expend funds for such purpose; provided,
however, that Collateral Agent shall in no event be bound to inquire
into the validity of any tax, Lien, imposition or other obligation which such
Grantor fails to pay or perform as and when required hereby and which such
Grantor does not contest in accordance with the provisions of the Indenture and
each Permitted Additional Pari Passu Lien Agreement.  Neither the provisions of this SECTION 11.2
nor any action taken by Collateral Agent pursuant to the provisions of this SECTION 11.2
shall prevent any such failure to observe any covenant contained in this
Agreement nor any breach of warranty from constituting an Event of Default.  Each Grantor hereby appoints the Collateral
Agent its attorney-in-fact, with full authority in the place and stead of such
Grantor and in the name of such Grantor, or otherwise, from time to time after
the occurrence and during the continuation of an Event of Default in the
Collateral Agent’s discretion to take any action and

 

34

 

to execute any instrument consistent with the terms
of the Indenture and each Permitted Additional Pari Passu Lien Agreement and
the other Security Documents which the Collateral Agent may deem necessary to
accomplish the purposes hereof.  The
foregoing grant of authority is a power of attorney coupled with an interest
and such appointment shall be irrevocable for the term hereof.  Each Grantor hereby ratifies all that such
attorney shall lawfully do or cause to be done by virtue hereof.

 

SECTION 11.3.               [Reserved].

 

SECTION 11.4.               Continuing Security Interest;
Assignment.  This Agreement shall
create a continuing security interest in the Collateral (other than any
Mortgaged Property) and shall (a) remain in full force and effect until
the Security Interest is permitted to be terminated in full with respect to all
Note Obligations under the Indenture and with respect to Permitted Additional
Pari Passu Obligations under each applicable Permitted Additional Pari Passu
Lien Agreement (the “Discharge of Obligations”), (b) be binding
upon each of the Grantors, and their respective successors and assigns, and (c) inure
to the benefit of, and be enforceable by, Collateral Agent, and its successors,
transferees and assigns.  Upon the
Discharge of Obligations, the Security Interest granted hereby shall terminate
and all rights to the Collateral shall revert to Grantors or any other Person
entitled thereto.  No transfer, renewal,
extension or assignment of this Agreement, any other Security Document or any
Permitted Additional Pari Passu Lien Agreement, or any other instrument or
document executed and delivered by any Grantor to Collateral Agent, nor the
taking of further security, nor the retaking of the Collateral by Collateral
Agent, nor any other act of any Secured Party shall release any of Grantors
from any obligation under this Agreement or any other Security Document.  The Collateral Agent shall not by any act,
delay, omission or otherwise, be deemed to have waived any of its rights or
remedies hereunder, unless such waiver is in writing and signed by Collateral
Agent and then only to the extent therein set forth.  A waiver by Collateral Agent of any right or
remedy on any occasion shall not be construed as a bar to the exercise of any
such right or remedy which Collateral Agent would otherwise have had on any
other occasion.  In addition, the
Security Interests granted hereunder and the Liens granted under any of the
other Security Documents shall terminate and be released, in whole or in part, (i) as
to the Secured Obligations under the Indenture, the Notes and any Additional
Notes, as provided in the Indenture and (ii) as to the Permitted Additional
Pari Passu Obligations under any Permitted Additional Pari Passu Lien
Agreement, as provided in such Permitted Additional Pari Passu Lien
Agreement.  Collateral shall be released
from the Security Interest under this Agreement and the Lien under any of the
other Security Documents as provided in (i) the Indenture with respect to
Liens securing Secured Obligations under the Indenture, the Notes and
Additional Notes and (ii) each Permitted Additional Pari Passu Lien
Agreement relating to Permitted Additional Pari Passu Obligations with respect
to Liens securing such Permitted Additional Pari Passu Obligations. The
Grantors may file appropriate termination statements, mortgage releases
satisfactions and re-conveyances, and other filings to terminate or evidence
the termination of the Security Interests in and Liens on any assets that have
been released from the Security Interest under this Agreement and the Liens
under any other Security Documents in accordance with this SECTION 11.4
and, at the Grantors’ expense, the Collateral Agent shall return all Collateral
in its possession to the Grantors and shall execute any termination, amendment,
mortgage release, satisfaction or re-conveyance, required or desirable to
terminate or evidence the termination of the Security Interest in or Lien on
any property or assets released

 

35

 

from the Security Interest under this Agreement or
any Lien released under any other Security Document.

 

SECTION 11.5.               Termination; Release.

 

(a)           Any Lien upon any Collateral or Mortgaged Property
securing Secured Obligations shall be released in accordance with the
provisions of the Indenture.

 

(b)           Any Lien upon any Collateral or Mortgaged Property
securing Permitted Additional Pari Passu Obligations shall be released pursuant
to the applicable Permitted Additional Pari Passu Lien Agreement.

 

(c)           With respect to (i) SECTION 11.5(a), the
Collateral Agent shall comply with any direction given to it by the Trustee
pursuant to Section 11.04 of the Indenture, and (ii) SECTION 11.5(b),
the Collateral Agent shall comply with any direction given to it by any
Additional Pari Passu Agent pursuant to any similar provision of a Permitted
Additional Pari Passu Lien Agreement; provided in the case of clauses (i) and
(ii) that such direction is not inconsistent with this Agreement.

 

(d)           Subject to the terms of the Intercreditor Agreement, upon
any release of Collateral or Mortgaged Property in accordance with the
provisions of SECTION 11.5(a) or SECTION 11.5(b),
the Collateral Agent shall, upon the request and at the sole cost and expense
of the Grantors, assign, transfer and deliver to the Grantors, against receipt
and without recourse to or warranty by the Collateral Agent except as to the
fact that the Collateral Agent has not encumbered the released assets, such of
the Collateral or Mortgaged Property to be released (in the case of a release)
as may be in possession of the Collateral Agent and as shall not have been sold
or otherwise applied pursuant to the terms hereof, and, with respect to any
other Collateral or Mortgaged Property, proper documents and instruments
(including UCC-3 termination statements or releases) acknowledging the
termination hereof or the release of such Collateral or Mortgaged Property, as
the case may be.

 

SECTION 11.6.               Modification in Writing.  No modification of any terms of this
Agreement or any other Security Document (including any waiver thereof) shall
be effective, unless such modification is specifically provided in a writing
directed to the applicable Grantor and executed by the Collateral Agent with
the consent of such Secured Parties, if any, required by (i) the Indenture
and (ii) any Additional Pari Passu Agreement, and such modification shall
be applicable only to the matter specified. 
No waiver of any provision of this Agreement, and no consent to any
departure by any of Grantors herefrom, shall in any event be effective unless
the same shall be in writing and signed by the Collateral Agent, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.

 

SECTION 11.7.               Notices.  All notices and other communications provided
for hereunder shall be given in the form and manner and delivered to the
Collateral Agent or the Trustee at its address specified in the Indenture, to
any of the Grantors at their respective addresses specified in the Indenture
and to any Additional Pari Passu Agent, to it at the address specified in the
applicable Additional Pari Passu Joinder Agreement or, as to any party, at such
other address as shall be designated by such party in a written notice to the
other parties.

 

36

 

SECTION 11.8.               GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

SECTION 11.9.               CONSENT TO JURISDICTION;
SERVICE OF PROCESS; WAIVER OF JURY TRIAL.

 

(a)           EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR
ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT
COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH GRANTOR IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL
COURT.  EACH GRANTOR AGREES THAT A FINAL
JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW.  NOTHING IN THIS
AGREEMENT SHALL AFFECT ANY RIGHT THAT ANY SECURED PARTY MAY OTHERWISE HAVE
TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST ANY
GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(b)           EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT IN ANY COURT REFERRED TO IN PARAGRAPH (A) OF
THIS SECTION.  EACH GRANTOR HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

 

(c)           EACH GRANTOR AGREES THAT ANY ACTION COMMENCED BY ANY
GRANTOR ASSERTING ANY CLAIM OR COUNTERCLAIM ARISING UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT SHALL BE BROUGHT SOLELY IN A COURT OF
THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR ANY FEDERAL COURT SITTING
THEREIN.

 

(d)           EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.7.  NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

 

37

 

(e)           EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER NOTE DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

SECTION 11.10.             Severability of Provisions.  Any provision hereof which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

SECTION 11.11.             Execution in Counterparts.  This Agreement and any amendments, waivers,
consents or supplements hereto may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original, but all such
counterparts together shall constitute one and the same agreement.

 

SECTION 11.12.             No Release.  Nothing set forth in this Agreement shall
relieve any Grantor from the performance of any term, covenant, condition or
agreement on such Grantor’s part to be performed or observed under or in
respect of any of the Collateral or from any liability to any Person under or
in respect of any of the Collateral or shall impose any obligation on the Collateral
Agent or any other Secured Party to perform or observe any such term, covenant,
condition or agreement on such Grantor’s part to be so performed or observed or
shall impose any liability on the Collateral Agent or any other Secured Party
for any act or omission on the part of such Grantor relating thereto or for any
breach of any representation or warranty on the part of such Grantor contained
in this Agreement, the Indenture and each Permitted Additional Pari Passu Lien
Agreement or the other Note Documents, or under or in respect of the Collateral
or made in connection herewith or therewith. 
The obligations of each Grantor contained in this SECTION 11.12
shall survive the termination hereof and the discharge of such Grantor’s other
obligations under this Agreement, the Indenture and each Permitted Additional
Pari Passu Lien Agreement and the other Note Documents.

 

SECTION 11.13.             Obligations Absolute.  All obligations of each Grantor hereunder
shall be absolute and unconditional irrespective of:

 

(a)           any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of any Grantor;

 

38

 

(b)           any lack of validity or enforceability of the Indenture
and each Permitted Additional Pari Passu Lien Agreement or any other Note
Document, or any other agreement or instrument relating thereto;

 

(c)           any change in the time, manner or place of payment of, or
in any other term of, all or any of the Secured Obligations, or any other
amendment or waiver of or any consent to any departure from the Indenture and
each Permitted Additional Pari Passu Lien Agreement or any other Note Document
or any other agreement or instrument relating thereto;

 

(d)           any pledge, exchange, release or non-perfection of any
other collateral, or any release or amendment or waiver of or consent to any
departure from any guarantee, for all or any of the Secured Obligations;

 

(e)           any exercise, non-exercise or waiver of any right, remedy,
power or privilege under or in respect hereof, the Indenture and each Permitted
Additional Pari Passu Lien Agreement or any other Note Document except as
specifically set forth in a waiver granted pursuant to the provisions of SECTION 11.6
hereof; or

 

(f)            any other circumstances which might otherwise constitute
a defense available to, or a discharge of, any Grantor (other than indefeasible
payment in full in cash of Secured Obligations).

 

SECTION 11.14.             Intercreditor Agreement.  Notwithstanding anything herein to the
contrary, the Liens and security interests granted to the Collateral Agent
pursuant to this Agreement, and the exercise of any right or remedy by the
Collateral Agent hereunder, are subject to the provisions of the Intercreditor
Agreement.  In the event of any conflict
between the terms of the Intercreditor Agreement and the terms of this
Agreement, the terms of the Intercreditor Agreement shall govern and control.

 

SECTION 11.15.             Permitted Additional Pari Passu
Lien Obligations.  On or after the
Issue Date, the Issuers may from time to time designate additional obligations
as Permitted Additional Pari Passu Obligations by delivering to the Collateral
Agent, the Trustee and each Additional Pari Passu Agent (a) an Officer’s
Certificate (i) identifying the obligations so designated and the
aggregate principal amount or face amount thereof, stating that such
obligations are designated as “Permitted Additional Pari Passu Obligations” for
purposes hereof, (ii) representing that such designation complies with the
terms of the Indenture and each then extant Permitted Additional Pari Passu
Lien Agreement, and (iii) specifying the name and address of the
Additional Pari Passu Agent for such obligations (if other than the Trustee);
(b) except in the case of Additional Notes, a fully executed Additional
Pari Passu Joinder Agreement (in the form attached as Annex 2); and (c) an
Opinion of Counsel to the effect that the designation of such obligations as “Permitted
Additional Pari Passu Obligations” does not violate the terms of the Indenture
or any then extant Permitted Additional Pari Passu Lien Agreement (upon which
the Collateral Agent may conclusively and exclusively rely) subject to the
qualifications specified therein.

 

39

 

SECTION 11.16.             Incorporation by Reference.  In connection with its execution and acting
hereunder, the Collateral Agent is entitled to all rights, privileges,
benefits, protections, immunities and indemnities provided to it under the
Indenture.

 

By
accepting the benefits of this Agreement and the other Security Documents, each
Secured Party agrees that it is bound by (i) the terms of the Intercreditor
Agreement applicable to such Secured Party and (ii) the provisions of Exhibit 4.

 

SECTION 11.17.             Certain Directions.  The Collateral Agent shall comply with any
direction to enter into amendments to the Intercreditor Agreement or an
additional intercreditor agreement with the agent for the holders of any ABL
Obligations given to it by (A) the Trustee pursuant to Section 10.01
of the Indenture or (B) any Additional Pari Passu Agent pursuant to any
similar provision of a Permitted Additional Pari Passu Lien Agreement, provided
in the case of clause (A) and (B) that such direction is not
inconsistent with this Agreement or the Indenture.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

40

 

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

 

	
   

  	
  TOPS
  MARKETS, LLC, as a Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Curci

  
	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TOPS
  HOLDING CORPORATION, as a Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric J. Kanter

  
	
   

  	
  Name:

  	
  Eric
  J. Kanter

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TOPS
  GIFT CARD COMPANY, LLC, as a Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Curci

  
	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BATH
  LLC, as a Grantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Tops
  Markets, LLC, its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Curci

  
	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARP
  BRADFORD LLC, as a Grantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Tops
  Markets, LLC, its sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Curci

  
	
   

  	
  Name:

  	
  Frank
  Curci

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

Signature Page to Security Agreement

 

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Beverly A.
  Freeney

  
	
   

  	
  Name:

  	
  Beverly
  A. Freeney

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

Signature Page to Security Agreement

 

2

 

EXHIBIT 1

 

FORM OF SUPPLEMENT TO SECURITY AGREEMENT

 

Supplement
No.            (this “Supplement”)
dated as of                                 ,
20   , to the Security Agreement dated as of October 9,
2009 (as amended, restated, supplemented or otherwise modified from time to
time, the “Security Agreement”) among each of the parties listed on the
signature pages thereto and those additional entities that thereafter
become parties thereto (collectively, jointly and severally, “Grantors”
and each individually “Grantor”) and U.S. Bank National Association, in
its capacity as Collateral Agent for the Secured Parties (together with its
successors, “Collateral Agent”), U.S. Bank National Association as
Trustee and each Additional Pari Passu Agent party thereto.

 

W I T N E S S E T H:

 

WHEREAS,
capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Security Agreement; and

 

WHEREAS,
pursuant to the Indenture or an Permitted Additional Pari Passu Lien Agreement,
the Company must execute and deliver a supplement to the Security Agreement,
and the execution of the Security Agreement by the undersigned new Grantor or
Grantors (collectively, the “New Grantors”) may be accomplished by the
execution of this Supplement in favor of Collateral Agent, for the benefit of
Secured Parties;

 

NOW,
THEREFORE, for and in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each New Grantor hereby agrees as follows:

 

1.             In accordance with SECTION 4.5
of the Security Agreement, each New Grantor, by its signature below, becomes a “Grantor”
under the Security Agreement with the same force and effect as if originally
named therein as a “Grantor” and each New Grantor hereby (a) agrees to all
of the terms and provisions of the Security Agreement applicable to it as a “Grantor”
thereunder and (b) represents and warrants that the representations and
warranties made by it as a “Grantor” thereunder are true and correct on and as
of the date hereof.  In furtherance of
the foregoing, each New Grantor, as security for the payment and performance in
full of the Secured Obligations, does hereby grant, assign, and pledge to
Collateral Agent, for the benefit of the Secured Parties, a security interest
in and security title to all Collateral of such New Grantor to secure the full
and prompt payment of the Secured Obligations, including, any interest thereon,
plus reasonable attorneys’ fees and expenses if the Secured Obligations
represented by the Security Agreement are collected by law, through an
attorney-at-law, or under advice therefrom. 
Each reference to a “Grantor” in the Security Agreement shall be deemed
to include each New Grantor.  The
Security Agreement is incorporated herein by reference.

 

2.             Each New Grantor represents and
warrants to the Collateral Agent that this Supplement has been duly executed
and delivered by such New Grantor and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as 

 

 

enforceability
thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent
transfer, moratorium or other similar laws affecting creditors’ rights
generally and general principles of equity (regardless of whether such
enforceability is considered in a proceeding at law or in equity).

 

3.             This Supplement may be executed in
multiple counterparts, each of which shall be deemed to be an original, but all
such separate counterparts shall together constitute but one and the same
instrument.  Delivery of a counterpart
hereof by facsimile transmission or by e-mail transmission shall be as
effective as delivery of a manually executed counterpart hereof.

 

4.             Except as expressly supplemented
hereby, the Security Agreement shall remain in full force and effect.

 

5.             This Supplement shall be construed
in accordance with and governed by the laws of the State of New York without
regard to the conflict of laws principles thereof.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

2

 

IN
WITNESS WHEREOF, each New Grantor and Collateral Agent have duly executed this
Supplement to the Security Agreement as of the day and year first above
written.

 

	
  NEW GRANTORS:

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name
  of New Grantor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name
  of New Grantor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name
  of Collateral Agent]:

  
	
   

  	
  [                            ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

3

 

EXHIBIT 2

 

FORM OF SECURITIES PLEDGE AMENDMENT

 

This
Securities Pledge Amendment, dated as of                               ,
is delivered pursuant to SECTION 6.1 of that certain Security Agreement
(as amended, modified, supplemented or restated and in effect from time to
time, the “Security Agreement;” capitalized terms used but not otherwise
defined herein shall have the meanings assigned to such terms in the Security
Agreement), dated as of October 9, 2009, made by (i) TOPS HOLDINGS CORPORATION
(in such capacity, “Holdings”) (ii) TOPS MARKETS, LLC (in such capacity,
the “Company” and, together with Holdings, collectively, the “Issuers”),
and (iii) THE GUARANTORS party thereto from time to time (the “Guarantors”),
as pledgors, assignors and debtors (the Issuers, together with the Guarantors,
in such capacities and together with any successors in such capacities, the “Grantors,”
and each, a “Grantor”), in favor of U.S. Bank National Association,
having an office at 100 Wall Street, Suite 1600, New York, New York 10005, in
its capacity as collateral agent for the Secured Parties, as pledgee, assignee
and secured party (in such capacities and together with any successors in such
capacities, the “Collateral Agent”). 
The undersigned hereby agrees that this Securities Pledge Amendment may
be attached to the Security Agreement and that the Pledged Securities and/or
Intercompany Notes listed on this Securities Pledge Amendment shall be deemed
to be and shall become part of the Collateral and shall secure all Secured
Obligations.

 

 

PLEDGED SECURITIES

 

	
  ISSUER

  	
   

  	
  CLASS

  OF STOCK

  OR

  INTERESTS

  	
   

  	
  PAR

  VALUE

  	
   

  	
  CERTIFICATE

  NO(S).

  	
   

  	
  NUMBER OF

  SHARES

  OR

  INTERESTS

  	
   

  	
  PERCENTAGE OF

  ALL ISSUED CAPITAL

  OR OTHER EQUITY

  INTERESTS OF ISSUER

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

INTERCOMPANY NOTES

 

	
  ISSUER

  	
   

  	
  PRINCIPAL

  AMOUNT

  	
   

  	
  DATE OF

  ISSUANCE

  	
   

  	
  INTEREST

  RATE

  	
   

  	
  MATURITY

  DATE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  [                                                                                               ],

  
	
   

  	
   

  	
  as Grantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGREED
  TO AND ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  U.S.
  BANK NATIONAL ASSOCIATION,

  	
   

  	
   

  
	
  as
  Collateral Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

SCHEDULE I

 

Intercompany Notes

 

	
  ISSUER

  	
   

  	
  PRINCIPAL

  AMOUNT

  	
   

  	
  DATE OF

  ISSUANCE

  	
   

  	
  INTEREST

  RATE

  	
   

  	
  MATURITY

  DATE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Markets, LLC

  	
   

  	
  $

  	
  3,040,773

  	
   

  	
  October
  3, 2008

  	
   

  	
  8

  	
  %

  	
  December
  31, 2013

  	
   

  

 

 

SCHEDULE II

 

Filings, Registrations and Recordings

 

	
  Type of Filing

  	
   

  	
  Entity

  	
   

  	
  Applicable Collateral

  Document

  	
   

  	
  Jurisdictions

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UCC -
  1 Financing Statement

  	
   

  	
  Tops
  Holding Corporation

  	
   

  	
  Security
  Agreement

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tops
  Markets, LLC

  	
   

  	
  Security
  Agreement

  	
   

  	
  Secretary
  of State, New York

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tops
  Gift Card Company, LLC

  	
   

  	
  Security
  Agreement

  	
   

  	
  Virginia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARP
  Bradford LLC

  	
   

  	
  Security
  Agreement

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bath
  LLC

  	
   

  	
  Security
  Agreement

  	
   

  	
  Connecticut

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mortgage,
  Assignment of Leases and Rents and Fixture Filing

  	
   

  	
  Tops
  Market, LLC

  	
   

  	
  Mortgage

  	
   

  	
  Eric
  County Clerk’s Office

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Intellectual
  Property Filing

  	
   

  	
  Tops
  Markets, LLC

  	
   

  	
  Trademark
  Security Agreement

  	
   

  	
  United
  State Patent and Trademark Office

  

 

 

SCHEDULE III

 

Pledged Interests

 

	
  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Type of

  Organization

  	
   

  	
  # of

  Shares

  Owned

  	
   

  	
  Total Shares

  Outstanding

  	
   

  	
  % of

  Interest

  Pledged

  	
   

  	
  Certificate No. 

  (if uncertificated,

  please

  indicate so)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Holding Corporation

  	
   

  	
  Tops
  Markets, LLC

  	
   

  	
  Limited
  Liability Company

  	
   

  	
  100%

  	
   

  	
  N/A

  	
   

  	
  100

  	
  %

  	
  002

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Markets LLC

  	
   

  	
  Bath
  LLC

  	
   

  	
  Limited
  Liability Company

  	
   

  	
  100%

  	
   

  	
  N/A

  	
   

  	
  100

  	
  %

  	
  001

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Markets, LLC

  	
   

  	
  Tops
  Gift Card Company, LLC

  	
   

  	
  Limited
  Liability Company

  	
   

  	
  100%

  	
   

  	
  N/A

  	
   

  	
  100

  	
  %

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Markets, LLC

  	
   

  	
  ARP
  Bradford LLC

  	
   

  	
  Limited
  Liability Company

  	
   

  	
  100%

  	
   

  	
  N/A

  	
   

  	
  100

  	
  %

  	
  001

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Markets, LLC

  	
   

  	
  Western
  New York Beverage Industry Collection and Sorting LP

  	
   

  	
  Limited
  Partnership

  	
   

  	
  2.43%

  	
   

  	
  N/A

  	
   

  	
  100

  	
  %

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Markets, LLC

  	
   

  	
  The
  Kroger Co.

  	
   

  	
  Corporation

  	
   

  	
  40 shares

  	
   

  	
  N/A

  	
   

  	
  100

  	
  %

  	
  CB413348

  CB 434254

  CB 496099

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Markets, LLC

  	
   

  	
  Wal-Mart
  Stores, Inc.

  	
   

  	
  Corporation

  	
   

  	
  10 shares

  	
   

  	
  N/A

  	
   

  	
  100

  	
  %

  	
  SL1070043

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tops
  Markets, LLC

  	
   

  	
  Topco
  Holdings, Inc.

  	
   

  	
  Cooperative

  	
   

  	
  600 shares

  	
   

  	
  N/A

  	
   

  	
  100

  	
  %

  	
  C242

  	
   

  

 

 

SCHEDULE IV

 

Certain Existing Liens

 

	
  COMPANY

  	
   

  	
  STATE

  	
   

  	
  JURISDICTION

  	
   

  	
  UCC#

  	
   

  	
  FEDERAL/STATE

  TAX LIENS;

  JUDGMENTS

  	
   

  	
  SECURED

  PARTY

  	
   

  	
  COLLATERAL

  DESCRIPTION

  
	
  Bath
  LLC

  	
   

  	
  NY

  	
   

  	
  New
  York county

  	
   

  	
   

  	
   

  	
  Judgment
  #466007 filed on 6/8/09

  	
   

  	
   

  	
   

  	
  Workers’
  Compensation Board of the State of New York, $6,000.00

  
	
  Tops
  Markets, LLC

  	
   

  	
  NY

  	
   

  	
  Erie
  county

  	
   

  	
   

  	
   

  	
  Judgment
  #2008127286 filed on 6/20/08

  	
   

  	
   

  	
   

  	
  See
  Judgment and Bill of Costs

  
	
   

  	
   

  	
  NY

  	
   

  	
  SOS

  	
   

  	
  238245
  filed on 11/24/99

  CONTINUED on 10/15/04

  	
   

  	
  Clear

  	
   

  	
  Rochester
  Urban Renewal Agency

  	
   

  	
  Equipment
  lease

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  172934
  filed on 9/10/01

  CONTINUED on 3/31/06

  	
   

  	
   

  	
   

  	
  Rochester
  Economic Development Corp. Assigned to Manufacturers and Traders Trust
  Company

  	
   

  	
  Equipment
  lease

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  172940
  filed on 9/10/01

  CONTINUED on 3/31/06

  	
   

  	
   

  	
   

  	
  Rochester
  Economic Development Corp. Assigned to Manufacturers and Traders Trust
  Company

  	
   

  	
  Equipment
  lease

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  172945
  filed on 9/10/01

  CONTINUED on 9/7/06

  	
   

  	
   

  	
   

  	
  Rochester
  Economic Development Corp.

  	
   

  	
  Equipment
  lease

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  007016
  filed on 1/10/02

  CONTINUED

  	
   

  	
   

  	
   

  	
  Rochester
  Urban Renewal

  	
   

  	
  Equipment
  lease

  

 

 

	
  COMPANY

  	
   

  	
  STATE

  	
   

  	
  JURISDICTION

  	
   

  	
  UCC#

  	
   

  	
  FEDERAL/STATE

  TAX LIENS;

  JUDGMENTS

  	
   

  	
  SECURED

  PARTY

  	
   

  	
  COLLATERAL

  DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  on
  12/6/06

  	
   

  	
   

  	
   

  	
  Agency

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  200411101135101
  filed on 11/10/04

  Erroneously terminated on 11/29/07  Correction filed on 12/6/07

  	
   

  	
   

  	
   

  	
  The
  Buffalo Economic Renaissance Corp.

  	
   

  	
  Equipment,
  inventory, receivables, etc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  200509221027940
  filed on 9/22/05

  	
   

  	
   

  	
   

  	
  Hallmark
  Marketing Corp.

  	
   

  	
  Consigned
  Inventory

  

 

 

EXHIBIT 3

 

[FORM OF ADDITIONAL PARI PASSU JOINDER AGREEMENT

 

The
undersigned (the “Additional Pari Passu Agent”) is the agent for Persons
wishing to become “Secured Parties” (the “New Secured Parties”) under
the Security Agreement, dated as of October 9, 2009 (as amended, restated,
supplemented or otherwise modified from time to time, the “Security
Agreement” (terms used without definition herein have the meanings assigned
to such terms by the Security Agreement)) among Grantors party thereto and U.S.
Bank National Association, as Collateral Agent (the “Collateral Agent”)
and the other Security Documents.

 

In
consideration of the foregoing, the undersigned hereby:

 

(i)            represents that the Additional Pari
Passu Agent has been authorized by the New Secured Parties to become a party to
the Security Agreement on behalf of the New Secured Parties under that
[DESCRIBE OPERATIVE AGREEMENT] (the “New Secured Agreement”) and to act
as the Additional Pari Passu Agent for the New Secured Parties hereunder and
under the Security Agreement and other Security Documents;

 

(ii)           acknowledges that the New Secured
Parties have had made available to it a copy of the Security Agreement and
other Security Documents;

 

(iii)          irrevocably appoints and authorizes
the Collateral Agent to take such action as agent on its behalf and on behalf
of the New Secured Parties and to exercise such powers under the Security
Agreement and the other Security Documents as are delegated to the Collateral
Agent by the terms thereof, together with all such powers as are reasonably
incidental thereto; and

 

(iv)          accepts and acknowledges the terms of
the Security Agreement applicable to it and the New Secured Parties and agrees
to serve as Additional Pari Passu Agent for the New Secured Parties with
respect to the Secured Obligations under the New Secured Agreement and agrees
on its own behalf and on behalf of the New Secured Parties to be bound by the
terms of the Security Agreement and the other Security Documents applicable to
holders of Secured Obligations, with all the rights and obligations of a
Secured Party thereunder and bound by all the provisions thereof as fully as if
it had been a Secured Party on the effective date of the Security Agreement.

 

The
name and address of the representative for purposes of SECTION 11.7
of the Security Agreement are as follows:

 

[name and address of Additional Pari Passu Agent]

 

 

IN
WITNESS WHEREOF, the undersigned has caused this Additional Pari Passu Joinder
Agreement to be duly executed by its authorized officer as of the            
day of 20   .

 

	
   

  	
  [NAME]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Consented to:

  
	
   

  	
   

  
	
   

  	
  [GRANTORS]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

2

 

EXHIBIT 4

 

THE COLLATERAL AGENT AND

SECURED PARTY ACKNOWLEDGMENTS(1)

 

Acknowledgment
of Priorities of Security Interests and Liens; Application of Proceeds

 

(a)           Each of the Secured
Parties acknowledges and agrees that, notwithstanding the date, time or
creation of any Liens securing any of the Secured Obligations under the
Security Agreement or the Security Documents, the Secured Obligations shall be
equally and ratably secured by the Liens of the Security Agreement and the
Security Documents and all Liens securing any of the Secured Obligations (and
any proceeds received from the enforcement of any such Liens) shall be for the
equal and ratable benefit of all Secured Parties and shall be applied as
provided in clause (c) below.  Each
Secured Party, by its acceptance of the benefits hereunder and of the Security Documents,
agrees for the benefit of the other Secured Parties that, to the extent any
additional or substitute collateral for any of the Secured Obligations is
delivered by a Grantor to or for the benefit of any Secured Party, such
collateral shall be subject to the provisions of this clause (a).

 

(b)           Each of the Secured
Parties hereby agrees not to challenge or question in any proceeding the
validity or enforceability of any Security Document (in each case as a whole or
any term or provision contained therein) or the validity of any Lien or
financing statement in favor of the Collateral Agent for the benefit of the
Secured Parties as provided in the Security Agreement and the other Security
Documents, or the relative priority of any such Lien.  Each
Secured Party consents to the release of Trust Monies from the Collateral
Account in accordance with Article 12 of the Indenture.

 

(c)           The proceeds
received by the Collateral Agent in respect of any sale of, collection from or
other realization upon all or any part of the Collateral under this Agreement
or any other Security Document (excluding funds deposited with the Trustee or
any Additional Pari Passu Agent, in such capacities, in connection with any
defeasance or discharge of the Indenture or any Permitted Additional Pari Passu
Lien Agreement, which shall be applied as provided therein) shall be applied,
together with any other sums then held by the Collateral Agent pursuant to this
Agreement or in the Collateral Account, promptly by the Collateral Agent as follows:

 

FIRST, to the payment of all
costs and expenses, liabilities, fees, commissions and taxes paid or payable by
the Collateral Agent under this Agreement or any Security Document including,
without limitation, the costs and expenses of 

 

(1)                                  Unless otherwise defined herein, all capitalized terms used herein and
defined in the Security Agreement, are used herein as therein defined.

 

 

the
Collateral Agent and its agents and counsel, and all expenses, liabilities and
advances made or incurred by the Collateral Agent in connection therewith;

 

SECOND, without duplication of
amounts applied pursuant to clause FIRST above, to the payment in full
in cash, pro rata, based on the amount of
Secured Obligations outstanding under the Indenture and each Permitted
Additional Pari Passu Lien Agreement and then due and owing to (i) the
Trustee to be applied as provided in the Indenture, and (ii) each
Additional Pari Passu Agent to be applied as provided in the applicable
Permitted Additional Pari Passu Lien Agreement; and

 

THIRD, the balance, if any, to
such Grantor or as otherwise directed by a court of competent jurisdiction.

 

If,
despite the provisions of this Agreement, any Secured Party shall receive any
payment or other recovery in excess of its portion of payments on account of
the Secured Obligations to which it is then entitled in accordance with this
Agreement, such Secured Party shall hold such payment or recovery in trust for
the benefit of all Secured Parties for distribution in accordance with this Exhibit 4.

 

Enforcement.

 

Subject
to the Collateral Agent’s rights under SECTION 11.1 of the
Agreement, the Required Secured Parties may direct the Collateral Agent in
exercising any right or remedy available to the Collateral Agent under this
Agreement or any Security Document.  In
the absence of any such instruction, the Collateral Agent may (but shall be
under no obligation to) exercise such rights and remedies in any manner that
complies with SECTION 11.1 of the Agreement.  No Secured Party (other than the Collateral
Agent) shall have any individual right to pursue any remedies under the
Agreement against any Grantor.

 

2

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