Document:

Exhibit 10.10

EXHIBIT D

COMPLIANCE CERTIFICATE

For the [Quarterly] [Annual] Test Period

from ____________, 20__ 

to ____________, 20__ 

Fifth Third
Bank, as Agent

38 Fountain Square Plaza

MD#10AT63

Cincinnati, Ohio 45263

Attn: David G. Fuller and Anne B. Kelly, Vice President

Fax Number: (513) 534-8400

Ladies and
Gentlemen:

          This
Compliance Certificate (this “Certificate”) is delivered to you pursuant
to Sections 6.1(a) and 6.1(b) of the Credit Agreement dated as of
July 30, 2010, among INDUSTRIAL SERVICES OF AMERICA, INC., a Florida
corporation (“ISA”), ISA INDIANA, INC., an Indiana corporation (“ISA
Indiana” and together with ISA, collectively, “Borrowers”), the
Lenders (as defined in the Credit Agreement) party thereto, and FIFTH THIRD
BANK, as Agent (“Agent”) for the Lenders and the LC Issuer (such Credit
Agreement, as it now exists or as it may be amended, modified or restated from
time to time, is referred to as the “Credit Agreement”). Unless
otherwise stated in this Certificate, capitalized terms used in this
Certificate shall have the meanings ascribed to them in the Credit Agreement.

          The
undersigned hereby certifies to Agent and the Lenders (“you”) as
follows:

          1. The
undersigned is, and at all times during the Subject Period was, the duly
elected, qualified and acting [Insert correct
title: chief financial officer, chief operating officer OR chief executive officer] of ISA.

          2. The
undersigned has reviewed the provisions of the Credit Agreement and the other
Loan Documents (collectively, the “Documents”) and has reviewed the
activities of the Credit Parties during the period from ____________, 20__, to
______________, 20__ (the “Subject Period”) with a view towards
determining whether, during the Subject Period, the Credit Parties have kept,
observed, performed and fulfilled all of their respective obligations under the
Documents.

          3. The
financial statements of the Credit Parties delivered to you concurrently
herewith (the “Financial Statements”)[, while not examined by the
Accountants,] reflect [in the undersigned’s opinion] all adjustments necessary
to present fairly, in all material respects, the Consolidated financial
position of the Credit Parties as at the end of the Subject Period and the
results of their operations for the Subject Period then ended in conformity
with GAAP consistently applied[, subject only to normal year-end adjustments
and the absence of footnotes].

[Delete bracketed statements for Annual
Certificate.] 

          4. As of
the date of this Certificate, to the best of the undersigned’s knowledge, after
reasonable inquiry, no event has occurred which constitutes a Default or an
Event of Default. (If a Default or an Event of Default has occurred and is
continuing, Schedule A contains a statement as to the nature thereof and
the action which the Credit Parties have taken or propose to take with respect
thereto).

          5.
In particular, the calculations shown on Schedule B attached hereto
demonstrate compliance with the Financial Covenants as set forth in Article
VII of the Credit Agreement. (If there is not compliance with any Financial
Covenant, Schedule B (i) lists the same and sets forth what action the
Credit Parties have taken or propose to take with respect thereto and (ii)
explains the variances of the figures in the Financial Statements from the
Projections). Schedule B attached hereto also describes and analyzes in
detail all material trends, changes, and development in each and all Financial
Statements.

          6.
Attached hereto as Schedule C are summaries of accounts payable agings,
Receivable agings, and Inventory, in each case reconciled to the Credit
Parties’ general ledger and Borrowing Base Certificate for the end of the
Subject Period.

          7.
[Annual:] Attached hereto as Schedule D are Projections of the Credit
Parties for the period from ____________, 20___ to ______________, 20___. Schedule
D states: (i) the assumptions on which the Projections were prepared and
(ii) that the assumptions, except as otherwise noted on Schedule D, were
prepared on a consistent basis with the operation of the Credit Parties’
business during the immediately preceding Fiscal Year and with factors known to
exist as of the date of this Certificate or anticipated to exist during the
periods covered by the Projections. The undersigned certifies that he or she
has no reason to believe that the Projections, subject to the assumptions
stated on Schedule D, are false or misleading in any material respect.
The Credit Parties make no representations or warranties regarding the accuracy
of any projections, predictions or other estimation of future events, or any
information or data, in each case, pertaining generally to the Credit Parties’
respective industries. 

	
 

	
 

	
 

	
 

	
Dated:    ____________, 20__ 

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name: 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	

	
 

	
Schedules:

	
A – Defaults
and Events of Default

	
B –
Financial Covenant Calculations

	
C –
Summaries of Accounts Receivable, Accounts Payable and Inventory Values

	
D – Projections

Schedule A

to

Compliance Certificate

(Description of any Defaults or Events of
Default)

Schedule B

to

Compliance Certificate

(Financial Covenant Calculations1)

	
 

	
 

	
 

	
I.

	
Maximum
Senior Leverage Ratio:

	
 

	
 

	
 

	
 

	
A.
Computation Date: For Test Period Ended ____________, 20__ 

	
 

	
 

	
 

	
 

	
B. Required
Covenant:

	
 

	
 

	
 

	
Computation Date

	
 

	
Maximum Senior Leverage

Ratio

	

	
 

	

	
September 30, 2010

	
 

	
3.50 to 1

	
December 31, 2010

	
 

	
4.00 to 1

	
March 31, 2011

	
 

	
3.50 to 1

	
June 30, 2011

	
 

	
3.50 to 1

	
September 30, 2011

	
 

	
3.50 to 1

	
December 31, 2011

	
 

	
4.00 to 1

	
March 31, 2012

	
 

	
3.50 to 1

	
June 30, 2012

	
 

	
3.50 to 1

	
September 30, 2012

	
 

	
3.50 to 1

	
December 31, 2012

	
 

	
4.00 to 1

	
March 31, 2013

	
 

	
3.50 to 1

	
June 30, 2013

	
 

	
3.50 to 1

	
 

	
 

	
 

	
 

	
 

	
C. Actual Computation: _____________: 1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
Consolidated
Senior Funded Debt (as of the end of the applicable Test Period):

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
2.

	
# 1 Divided by:

	
 

	
 

	
 

	
 

	
 

	
3.

	
Consolidated
Adjusted EBITDA

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Consolidated
Adjusted EBITDA Computation (for the applicable Test
Period):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
Net Income

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
2.

	
Plus: to the extent deducted in
determining Net Income and Consolidated EBITDA for such period:

	
 

	
 

	
 

	
 

	
 

	
a.

	
Interest
Expense

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
b.

	
Tax expense

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
c.

	
Amortization
and Depreciation expenses

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
d.

	
Non-cash
compensation for issuance of Equity Interests and Capital Securities

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
e.

	
Non-cash
extraordinary or non-recurring non-cash charges or non-cash
losses

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	
 1
Per definitions in, and as determined by, the Credit Agreement.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
f.
	
Non-cash
charges under Rate Management Agreements
	
 
	
$
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	

	
 

	
 
	
3.
	
Subtotal (2a + 2b + 2c + 2d + 2e + 2f) =
	
 
	
$
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	

	
 

	
 
	
4.
	
Minus: to the extent included in Net
Income and Consolidated EBITDA for such period:
	
 
	
 
	
 
	
 

	
 
	
a.
	
Non-cash
extraordinary or non-cash non-recurring income or gains
	
 
	
$
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	

	
 

	
 
	
b.
	
Gains from
sales of capital Property
	
 
	
$
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	

	
 

	
 
	
c.
	
Gains from
write-up of Property
	
 
	
$
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	

	
 

	
 
	
5.
	
Subtotal (4a + 4b + 4c) =
	
 
	
$
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	

	
 

	
 
	
6.
	
Total (1 + 3
- 5) =
	
 
	
$
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	

	
 

	
 

	
 

	
 

	
II.

	
Minimum
Fixed Charge Coverage Ratio:

	
 

	
 

	
 

	
 

	
A. Computation Date: For Test Period Ended ____________, 20__ 

	
 

	
 

	
 

	
 

	
B. Required
Covenant:

	
 

	
 

	
 

	
Computation Date

	
 

	
Maximum Leverage Ratio

	

	
 

	

	
September 30, 2010 and each Computation
Date thereafter

	
 

	
1.20 to 1

	
 

	
 

	
 

	
 

	
 

	
C. Actual Computation: _____________: 1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
Consolidated
Adjusted EBITDA (as computed under I above) for the Test Period

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
2.

	
Minus:

	
 

	
 

	
 

	
 

	
 

	
a.

	
Cash
Non-financed Capital Expenditures for such Test Period

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
b.

	
Income,
franchise, commercial activity Taxes or equivalent income-type Taxes paid in
cash for such Test Period

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
3.

	
Subtotal (1 – 2a – 2b) =

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
4.

	
#3 Divided by (the sum of):

	
 

	
 

	
 

	
 

	
 

	
a.

	
Consolidated
Fixed Charges (see below) for the Test Period

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
b.

	
Dividends or
distributions (including Share Repurchases) paid by Parent to its
stockholders in cash for the Test Period

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
5.

	
Subtotal (4a + 4b) =

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
6.

	
Ratio (3 ÷
5) =

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consolidated
Fixed Charges Computation (for the applicable Test
Period):

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
Interest
Expense paid in cash

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Plus:

	
 

	
 

	
 

	
 

	
 

	
2.

	
Scheduled
payments of principal on Indebtedness for Borrowed Money, including principal
component of any Capital Lease

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
3.

	
Total (1 +
2) =

	
 

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
III.

	
Limitation
on Capital Expenditures:

	
 

	
 

	
 

	
 

	
A. Computation Date: For Test Period Ended ____________, 20__ 

	
 

	
 

	
 

	
 

	
B. Required
Covenant:

	
 

	
 

	
 

	
Computation Date

	
 

	
Maximum Aggregate

Cumulative Capital

Expenditures

	

	
 

	

	
For each Fiscal Year ending on or after
December 31, 2010

	
 

	
$4,000,000

          C. Actual Amount: $_________________ [which
is net of the aggregate costs of the 7100 Grade Lane Real Property Acquisition
of $_________________]. 

IV. Further
Description. If there is not compliance with any Financial Covenant, below
(i) sets forth what action the Credit Parties have taken or propose to take
with respect thereto and (ii) explains the variances of the figures in the
Financial Statements from the Projections (as defined in the Credit Agreement).
Also below is a description and analysis of all material trends, changes, and
development in each and all Financial Statements:

Schedule C

to

Compliance Certificate

(Summaries of Accounts Receivable,
Accounts Payable, and Inventory Values)

Schedule D

to

Compliance Certificate

(Projections)Exhibit 10.11

EXHIBIT E

FORM OF PLEDGE AGREEMENT

PLEDGE AGREEMENT

          THIS
PLEDGE AGREEMENT (this “Agreement”), dated as of July 30, 2010 (the “Effective
Date”) between INDUSTRIAL SERVICES OF AMERICA, INC., a
Florida corporation (“Pledgor”), whose principal place of business and
mailing address is 7100 Grade Lane, Louisville, Kentucky 40232, and FIFTH THIRD
BANK, an Ohio banking corporation, as Agent for the benefit of the
Secured Creditors (as defined below) (“Agent”), is as follows:

          DEFINITIONS.

          1.1
Defined Terms. Any capitalized term used but not defined
herein shall have the meaning ascribed thereto in the Credit Agreement dated as
of the date of this Agreement among Borrowers and the Secured Creditors (the “Credit
Agreement”). In addition to the other
terms defined in this Agreement, whenever the following capitalized terms are
used, they shall be defined as follows:

                    “Borrowers”
means each of Pledgor and ISA Indiana, Inc., an Indiana
corporation (“ISA Indiana”). 

                    
“Issuers” means each of the Persons identified as an “Issuer” on Schedule
I attached, and any other Person which becomes an Issuer after the date
hereof pursuant to Section 2.3, and any successors to any of the
foregoing, whether by merger or otherwise.

                    
“Permitted Liens” means (i) any current taxes and assessments not yet
due and payable owing by Pledgor; (ii) the Liens in favor of Agent; (iii) any
Liens specified in subsections (a), (g) or (h) of Section 8.8 of the
Credit Agreement so long as none of those Liens under Section 8.8 have
priority over the Liens in favor of Agent; and (iv) restrictions (A) applicable
to interests in corporations or limited liability companies, as applicable,
generally under the laws of the States of Indiana and Kentucky, as applicable
to an Issuer, and (B) under applicable securities laws.

                    
“Pledged Interests” means all of the Equity Interests
(whether now owned or existing or hereafter arising or acquired, whether the
same constitutes “general intangibles”, “investment property”, or a “security”
under the Uniform Commercial Code, and whether such interest is certificated or
uncertificated) in each of the Issuers and all securities (as that term is
defined in the Uniform Commercial Code), if any, issued by each of the Issuers.

                    
“Secured Creditors” means, collectively, Agent, the LC Issuer and the Lenders.

          1.2
Other Definitional Provisions; Construction. Unless
otherwise specified in this Agreement, as used in this Agreement:

                    
(i) As used in this Agreement, accounting terms relating to Pledgor not defined
in this Agreement or the Credit Agreement have the respective meanings given to
them in accordance with GAAP. 

                    
(ii) The definition of any document or instrument or agreement includes all
schedules, attachments and exhibits thereto and all renewals, extensions, supplements,
restatements and amendments thereof. All Exhibits and Schedules attached to
this Agreement are incorporated into, make and form an integral part of, this
Agreement for all purposes. 

                    
(iii) “Hereunder,” “herein,” “hereto,” “this Agreement” and words of similar
import refer to this entire document; “including” is used by way of
illustration and not by way of limitation, unless the context clearly indicates
the contrary; the singular includes the plural and conversely; and any action
required to be taken by Pledgor is to be taken promptly, unless the context clearly
indicates the contrary.

                    
(iv) All of the uncapitalized terms contained in this Agreement which are now
or hereafter defined under the UCC will, unless the context indicates
otherwise, have the meanings provided for in the UCC.

2. PLEDGE; DELIVERY.

          2.1
Security Interest. To secure the full, prompt and complete payment and
performance of the Obligations, as that term is defined in the Credit
Agreement, and all of the obligations and liabilities of Pledgor hereunder
(collectively, the “Obligations”), Pledgor hereby pledges to, grants to,
and creates in favor of Agent, for the benefit of the Secured Creditors, a
first priority Lien on, and continuing security interest in, the following
Property, whether now owned or existing or hereafter arising or acquired (the “Pledged
Collateral”):

                    all
of the Pledged Interests;

                    the
certificates or instruments, if any, representing the Pledged Interests which
may be delivered to Agent accompanied by indorsements executed in blank;

                    all
dividends and distributions (cash, stock, limited
liability company interests, other Capital Securities, or otherwise),
cash, instruments, rights to subscribe, purchase or sell and other rights and
Property from time to time received, receivable or otherwise distributed or
distributable in respect of or in exchange for any or all of the Pledged
Interests;

                    all
replacements, additions to and substitutions for any of the foregoing, including,
without limitation, claims against third parties;

                    all
cash and non-cash proceeds, interest, profits and other income of or on any of
the foregoing described Property; 

                    all
supporting obligations; and

                    all
books and records relating to any of the foregoing described Property.

          2.2 Delivery
of Pledged Collateral. Contemporaneously herewith, Pledgor has delivered to
Agent all of the certificates representing the Pledged Collateral, to the
extent certificated, together with separate stock, limited liability company
interests or other transfer forms duly indorsed, in blank, for the transfer of
the Pledged Collateral. If at any time prior to the termination of this
Agreement in accordance with Section 12, Pledgor obtains possession of
any other certificate, document or other evidence representing any of the
Pledged Collateral, Pledgor will immediately deliver such certificate, document
or other evidence to Agent. During such time as any such certificate, document
or other evidence representing any of the Pledged Collateral are in Pledgor’s
possession or control, Pledgor shall hold or control such certificate, document
or other evidence in trust for Secured Creditors’ benefit. All certificates,
documents or other evidence delivered to Agent shall be accompanied by separate
stock, limited liability company interests or other powers duly indorsed, in
blank, for transfer to the extent requested by Agent. 

          2.3 Additional
Subsidiaries. If any Subsidiary which (i) is wholly-owned by Pledgor, or
(ii) in which Pledgor does not own 100% of the Pledged Interests but with
respect to which Pledgor is not precluded
from pledging the Pledged Interests thereof, in addition to the Issuers
described on Schedule I, is formed or acquired after the date of this
Agreement, for purposes of this Agreement (subject to Section 2.4 with
respect to Foreign Issuers): (a) such Subsidiary shall be deemed an Issuer; (b)
Pledgor shall deliver to Agent all of the Section 2.2 documentation
required for the Pledged Interests relating to such new Issuer as required by
this Agreement; (c) Schedule I shall be deemed amended to reflect such Pledged Interests. Nothing in this
Section 2.3 or anything else contained in this Agreement shall be
construed to constitute any Secured Creditor’s consent to any Subsidiary that
is not expressly permitted by the provisions of the Credit Agreement or the
other Loan Documents.

          2.4
Limitation Regarding Foreign Issuers. Notwithstanding anything to the
contrary in any Loan Document, as it respects the Equity Interests in any
foreign Subsidiary of Pledgor formed or acquired after the date of this
Agreement (each, a “Foreign Issuer”), such Lien shall be limited to 65%
of the Equity Interests in such Foreign 

Subsidiary; provided that if there
occurs a change in the Internal Revenue Code or the regulations promulgated
thereunder that would no longer require Pledgor to recognize income as a result
of Pledgor’s pledge of 66 and 2/3 percent or more of the total combined voting
power of all classes of Equity Interests in any Foreign Issuer entitled to vote
(“Tax Law Change”), Pledgor will pledge hereunder, on Agent’s demand,
the greatest number of shares of such Foreign Issuer not previously pledged
hereunder to the extent that the Tax Law Change would not require Pledgor to
recognize income as a result of that pledge; it being the intent of Pledgor and
the Secured Creditors that Pledgor pledge the maximum percentage of Equity
Interests in each Foreign Issuer which, when taking into account the Tax Law
Change, would not require or be reasonably likely to require Pledgor to
recognize any income as a result of that pledge. So long as no Event of Default
has occurred and is continuing beyond any applicable grace period (and which
has not been waived in writing by, or cured to the written satisfaction of,
Agent in accordance with the Credit Agreement), Agent will not require the
preparation or registration of Pledgor’s pledge in favor of Agent with respect
to any Foreign Issuer in the jurisdiction of such Foreign Issuer’s
organization.

3. REPRESENTATIONS AND WARRANTIES.
Pledgor hereby represents and warrants that:

                    
(i) There is no stamp duty, tax, levy, impost, deduction, charge, withholding
or similar duty, tax or fee imposed on or by virtue of the execution or
delivery of this Agreement or any other document to be furnished hereunder or
in connection herewith;

                    
(ii) The Pledged Interests have been duly authorized and validly issued and are
fully paid, and, in the case of capital stock, are non-assessable, and, in the
case of limited liability company interests, all capital contributions have
been made with respect to the membership interests pursuant to the applicable
operating agreement that are required to have been made; 

                    
(iii) There are no restrictions upon the transfer of any of the Pledged
Collateral except for a Permitted Lien, and Pledgor has the unqualified and
unilateral right to transfer the Pledged Collateral without obtaining the
consent of any Person. The Pledged Interests are issued and registered in the
name of Pledgor; 

                    
(iv) Pledgor is the sole, legal and beneficial owner of the entire right, title
and interest in and to the Pledged Collateral free and clear of any Lien, and
there are no adverse claims with respect to any of the Pledged Collateral, in
each case other than Permitted Liens. Pledgor will defend Agent’s title to the
Pledged Collateral against the claims of all Persons except any Permitted
Liens; 

                    
(v) The pledge and delivery of the Pledged Collateral pursuant to this
Agreement create a valid and continuing Lien on, and subject to Permitted
Liens, first priority security interest in the Pledged Collateral, securing the
payment of the Obligations;

                    
(vi) Except as provided in Section 5.2(c) of the Credit Agreement, no
authorization, approval or other action by, and no notice to or filing with,
any Governmental Authority is required either (a) for the pledge by Pledgor of
the Pledged Collateral pursuant to this Agreement or for the execution,
delivery or performance of this Agreement by Pledgor; or (b) for the exercise
by Agent of the voting or other rights provided for in this Agreement or the
remedies in respect of the Pledged Collateral pursuant to this Agreement
(except as may be required by laws affecting the offering and sale of
securities generally); 

                    
(vii) The Pledged Interests constitute 100% of the issued and outstanding
capital stock or other Capital Securities of Issuers;

                    
(viii) There are no certificates
evidencing the Pledged Interests (other than as set forth on Schedule I) and no
agreements in place to opt in to Article 8 of the UCC to treat any of the
Pledged Interests (with respect to any Issuer that is a limited liability
company) as securities under Article 8 of the UCC; and 

                    
(ix) Pledgor is a Florida corporation with its chief executive
office and mailing address located at the address set forth in the opening paragraph of this Agreement. Pledgor’s
mailing address, as set forth in the opening paragraph of this Agreement, lists
the location of any and all of the Pledged Collateral which is tangible except
to the extent certificates or instruments, if any, representing Pledged
Interests are physically delivered to Agent. 

4. PLEDGOR’S RESPONSIBILITIES. 

                    Until
the Obligations (other than
contingent obligations for indemnification or reimbursement for which Agent has
not then given notice of a claim thereof against Pledgor or Issuers) are fully
paid, performed and satisfied and this Agreement is terminated, Pledgor will:

	
  

 	
  

 
	
  

 	
           during
 normal business hours, upon at least two Business Days advance notice (unless
 an Event of Default then exists) and at the expense of Borrowers, make
 available to Agent any and all of Pledgor’s books, records, written
 memoranda, correspondence, and other instruments or writings that evidence or
 relate to the Pledged Collateral;

 
	
  

 	
  

 
	
  

 	
           notify
 Agent promptly in writing of any information which Pledgor has received which
 could be expected, in Agent’s discretion exercised in good faith, to
 materially and adversely affect the value of the Pledged Collateral or the
 rights of Agent with respect thereto; 

 
	
  

 	
  

 
	
  

 	
           not
 change its state of incorporation or form of organization without the prior
 consent of Agent other than as expressly permitted by Section 8.3 of
 the Credit Agreement; and

 
	
  

 	
  

 
	
  

 	
           pay all
 costs of filing any financing, continuation or termination statements with
 respect to the Lien created hereby.

 

                    To
protect, perfect, or enforce, from time to time, the Secured Creditor’s rights
or interests in the Pledged Collateral, Agent may, in its discretion (but
without any obligation to do so): (a) discharge any Liens at any time levied or
placed on the Pledged Collateral other than Permitted Liens and (b) obtain in
good faith any record from any service bureau and pay such service bureau the
cost thereof. All costs and expenses incurred by Agent in exercising its
discretion under this subparagraph (ii) will be part of the Obligations secured
by the Pledged Collateral.

                    Pledgor
will cause each Issuer to register the pledge of the Pledged Interests in favor
of Agent, as registered pledgee, on the books and records of such Issuer.

                    Pledgor
will cause each Issuer not to issue any shares, certificates or other Pledged Interests
in addition to, or in exchange or substitution for, the Pledged Interests to
the extent such additional issuance, exchange or substitution would result in
an Event of Default, unless such issuance, exchange or substitution is with the
prior consent of Agent. Pledgor will not opt in to Article 8 of the UCC to
treat any of the Pledged Interests (with respect to any Issuer that is a
limited liability company) as securities under Article 8 of the UCC.

                    Pledgor
will, at its expense and from time to time, promptly execute and deliver all
further instruments, documents and agreements, and take all further action that
may be necessary or desirable, or that Agent may request, in its
discretion exercised in good faith, in order
to (a) continue, perfect and protect the Lien granted or purported to be
granted hereby or (b) enable the Secured Creditors to exercise and enforce
their rights and remedies hereunder with respect to any of the Pledged
Collateral, or both. Without prejudice to the generality of the foregoing, each
such instrument or document shall be in such form as Agent shall request,
in its discretion exercised in good faith,
and may contain provisions such as are herein contained or provisions to the
like effect or such other provisions of whatsoever kind as Agent, in its
discretion exercised in good faith, shall
consider requisite for the improvement (on and subject to the terms hereof),
perfection or enforcement of the security constituted by, or pursuant to, this
Agreement. If Agent has the right to exercise its right to sell all or any of
the Pledged Collateral pursuant to Section 9, Pledgor will, upon the
request of Agent, at Pledgor’s expense, do or cause to be done all such acts
and things as may be reasonably necessary or desirable, or that Agent,
in its discretion exercised in good faith,
may request, to make any sale of the Pledged Collateral or any part thereof
valid and binding and in compliance with applicable law.

5. VOTING RIGHTS; DIVIDENDS.

          5.1
No Event of Default. So long as no Event of Default shall have occurred
and be continuing:

                    
(i) Pledgor shall be entitled to exercise any and all voting and other
consensual rights pertaining to the Pledged Collateral or any part thereof for
any purpose not inconsistent with the terms of this Agreement, the Credit
Agreement or the other Loan Documents; provided, however, that Pledgor shall not
exercise (or refrain from exercising) any such right if such action would
result in an Event of Default.

                    
(ii) Pledgor shall be entitled, subject to the terms of the Credit Agreement,
to receive and retain any and all dividends, distributions and interest paid in
respect of the Pledged Collateral; provided, however, that (a)
Pledgor acknowledges that there are no permitted distributions from any Issuer
under the Credit Agreement other than as expressly provided in Section 8.4
of the Credit Agreement and (b) other than
as expressly permitted to be made under Section 8.4 of the Credit
Agreement, any and all:

	
  

 	
  

 
	
  

 	
           (1)
 dividends, distributions and interest paid or payable other than in cash in
 respect of, and instruments, rights and other Property received, receivable
 or otherwise distributed in respect of, or in exchange for, any Pledged
 Collateral; and

 
	
  

 	
  

 
	
  

 	
           (2)
 cash paid, payable or otherwise distributed in respect of principal of, or in
 redemption of, or in exchange for, any Pledged Collateral

 

shall be delivered to Agent, or such
nominee(s) of Agent as Agent shall direct, to hold as Pledged Collateral and
shall, if received by Pledgor, be received in trust for the benefit of Agent,
be segregated from the other Property or funds of Pledgor, and be forthwith
delivered to Agent, or such nominee(s) of Agent as Agent shall direct, as
Pledged Collateral in the same form as so received (with any necessary
indorsement(s)). Pledgor shall, upon request by Agent, in its
discretion exercised in good faith, promptly
execute such instruments, documents and agreements and do such acts as may be
necessary or advisable to give effect to the provisions of this Section
5.1(ii).

          5.2
Event of Default. Upon the occurrence and during the continuance of an
Event of Default beyond any applicable grace period (and which has not been
waived in writing by, or cured to the written satisfaction of, Agent in
accordance with the Credit Agreement):

                    
(i) All rights of
Pledgor to exercise the voting and other consensual rights which it would
otherwise be entitled to exercise pursuant to Section 5.1(i) and to
receive the dividends, distributions and interest payments which it would otherwise
be authorized to receive and retain pursuant to Section 5.1(ii) shall
cease, at Agent’s election, and all such rights shall thereupon become vested
in Agent, or such nominee(s) of Agent as Agent shall direct during such time,
who shall thereupon have the sole right to exercise such voting and other
consensual rights and to receive and hold as Pledged Collateral such dividends,
distributions and interest payments; and

                    
(ii) All dividends, distributions and interest payments which are received by
Pledgor contrary to the provisions of Section 5.2(i) shall be received
in trust for the benefit of Agent, shall be segregated from other funds of
Pledgor, and shall be forthwith paid over to Agent, or such nominee(s) of Agent
as Agent shall direct as Pledged Collateral in the same form as so received
(with any necessary indorsement(s)).

6. TRANSFERS AND OTHER LIENS. Until
the termination of this Agreement in accordance with Section 12, Pledgor
will not, unless otherwise expressly permitted by the Credit Agreement: (i)
sell, transfer, or otherwise dispose of, or grant any option or warrants, or
rights to purchase with respect to, or permit any Person to be registered as
holder of, any of the Pledged Collateral; (ii) create or permit to exist any
Lien, charge or other encumbrance upon or with respect to any of the Pledged
Collateral, except for any Permitted Liens; or (iii) do or cause to permit to
be done anything which may in any way depreciate, jeopardize or otherwise
prejudice the value to Agent of the Pledged Collateral.

7. POWER OF ATTORNEY. Until the
termination of this Agreement in accordance with Section 12, Pledgor
irrevocably appoints the following, namely:

                    
(i) Agent; and

                    
(ii) each and every Person to whom Agent shall from time to time have delegated
the exercise of the power of attorney conferred by this Section 7;

jointly and severally to be its attorney or
attorneys and in its name and otherwise on its behalf, at all times upon the
occurrence and during the continuance of an Event of Default beyond any
applicable grace period (and which has not been waived in writing by, or cured
to the written satisfaction of, Agent in accordance with the Credit Agreement),
to do all acts and things and to sign, seal, execute, deliver, perfect and do
all deeds, instruments, documents, acts and things which may be required (or
which Agent shall consider requisite) for carrying out any obligation imposed
on Pledgor by or pursuant to this Agreement (including the obligations of
Pledgor under Section 4), for carrying any sale or other dealing by
Agent into effect and generally for enabling Agent to exercise the powers
conferred on it by or pursuant to this Agreement or by law. Agent shall have
full power to delegate the power conferred on it by this Section 7, but
no such delegation shall preclude the subsequent exercise of such power by
Agent itself or preclude Agent from making a subsequent delegation thereof to
some other Person; any such delegation may be revoked by Agent at any time.

8. AGENT’S DUTIES. The powers
conferred on Agent hereunder are solely to protect its interest in the Pledged
Collateral and shall not impose any duty upon Agent to exercise any such
powers. Agent shall be deemed to have exercised reasonable care in the custody
and preservation of the Pledged Collateral in its possession if the Pledged
Collateral is accorded treatment substantially equal to that which Agent
accords its own Property, it being understood that Agent shall not have
responsibility for (i) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any
Pledged Collateral, whether Agent has or is deemed to have knowledge of such
matters, or (ii) taking any necessary steps to preserve rights against any
parties with respect to any Pledged Collateral.

9. REMEDIES UPON AN EVENT OF DEFAULT.

          9.1
Transfers by Agent. Upon the occurrence and during the continuance of an
Event of Default beyond any applicable grace period (and which has not been
waived in writing by, or cured to the written satisfaction of, Agent in
accordance with the Credit Agreement):

                    
(i) At any time, Agent, at its option and without any obligation to do so, may
transfer to or register in its name, or the name of any nominee(s) all or any
part of the Pledged Collateral, and Agent may exercise in respect of the
Pledged Collateral, in addition to other rights and remedies provided for
herein or otherwise available to it, all the rights and remedies under
applicable law and of a secured party on default under the UCC; and Agent may
also, without notice except as specified below, sell the Pledged Collateral or
any part thereof in one or more parcels at public or private sale, at any
exchange, broker’s board or any of Agent’s offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as Agent may deem
commercially reasonable. Agent shall be authorized at any such sale (if it
deems it advisable to do so) to restrict the prospective bidders or purchasers
to Persons who will represent and agree that they are purchasing the Pledged
Interests for their own account in compliance with Regulation D of the
Securities Act of 1933 or under applicable law or under any other applicable
exemption available under applicable law. Pledgor agrees that, to the extent
notice of sale shall be required by law, at least 10 days’ notice to Pledgor of
the time and place of any public sale or the time after which any private sale
is to be made shall constitute reasonable notification. Agent shall not be
obligated to make any sale of the Pledged Collateral regardless of notice of
sale having been given. 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 it was so adjourned;
and

                    
(ii) Any cash held by Agent as Pledged Collateral and all cash proceeds
received by Agent in respect of any sale of, collection from, or other
realization upon all or any part of the Pledged Collateral shall be applied as
received by Agent in the manner provided in the Credit Agreement. Any surplus
of such cash or cash proceeds held by Agent and remaining after payment in full
of all of the Obligations shall be paid over to Pledgor or to whomsoever may be
lawfully entitled to receive such surplus.

          9.2
Commercially Reasonable Disposition. Without precluding any other
methods of sale, the sale of the Pledged Collateral, or any part thereof, shall
have been made in a commercially reasonable manner if conducted in conformity
with reasonable commercial practices of Agent or finance companies disposing of
similar Property.

          9.3
Securities Laws. Pledgor recognizes that federal and/or state securities
and other laws may limit the flexibility desired to achieve an otherwise
commercially reasonable disposition of the Pledged Collateral, and in the event
of potential conflict between such laws or regulations and what in other
circumstances might constitute commercial reasonableness, it is intended that
consideration for such laws and regulations will prevail over attempts to
achieve such commercial reasonableness. In connection with any sale or other
disposition of the Pledged Collateral, compliance by Agent with the written
advice of its counsel concerning the potential effect of any such law or
regulation shall not be cause for Pledgor, or any other Person, to claim that
such sale or other disposition was not commercially reasonable, it being the
intent of Pledgor that Agent not be obligated to risk contravening any such law
or regulation in order to effect what, but for such law or regulation, would be
a commercially reasonable disposition.

          9.4
Examples of Commercially Reasonable Disposition. By way of example and
not by way of limitation, with respect to any sale or other disposition of the
Pledged Collateral or any portion thereof: (i) such sale or disposition shall
be deemed to have been at a public sale if, in connection with such sale or
disposition, Agent obtains bids from at least two qualified purchasers; and
(ii) the net book value reflected on Pledgor’s most recent financial
statements, adjusted to the date of any such sale or other disposition, is
deemed to be a commercially reasonable price (but a price less than such net
book value is not, of itself, deemed to be commercially unreasonable).

          9.5
Pledgor Waivers. To the extent permitted by applicable law, and except
as otherwise expressly provided under this Agreement or otherwise, Pledgor
hereby waives all rights now or hereafter conferred by statute or otherwise
which may require Agent to give any notice, make any demand, or invoke any
legal process with respect to the sale or other disposition of the Pledged
Collateral or which may require Agent to sell or otherwise dispose of the
Pledged Collateral in mitigation of the Secured Creditors’ damages or which may
otherwise limit or modify any of the Secured Creditors’ remedies or rights
under this Agreement.

          9.6
No Duty Upon Agent. Agent shall be under no duty to sell or otherwise
realize upon the Pledged Collateral. At any time, Agent may release or
surrender all or any part of the Pledged Collateral to Pledgor.

10. INDEMNIFICATION; EXPENSES. 

          10.1
Indemnification. Without limiting the provisions of Section 12.5
of the Credit Agreement or any other provision for indemnification in any other
Loan Document, Pledgor absolutely, irrevocably and
unconditionally hereby agrees to indemnify and hold harmless each Secured
Creditor against any and all claims, demands, suits, actions, causes of action,
damages, losses, settlement payments, obligations, costs, expenses and all
other liabilities whatsoever, INCLUDING, WITHOUT LIMITATION, AS A RESULT OF ANY
SECURED CREDITOR’S OWN NEGLIGENCE (collectively, “Indemnified Liabilities”)
which shall at any time or times be incurred or sustained by any Secured
Creditor or by any of their respective shareholders, directors, officers,
employees, Subsidiaries, Affiliates or agents on account or in relation to, or
in any way in connection with, any of the arrangements or transactions
contemplated by, associated with, arising out of, or ancillary to this
Agreement or any of the other Loan Documents to which Pledgor is a party or the
Pledged Collateral, whether or not all or any of the transactions contemplated
by, associated with or ancillary to this Agreement or any of such Loan
Documents are ultimately consummated, provided
that Pledgor will not be obligated to indemnify an indemnified party
in accordance with this Section 10.1 to the extent such Indemnified
Liabilities resulted from a breach by such indemnified party of its express
obligations under this Agreement or the gross negligence or willful misconduct
of such indemnified party. NOTICE IS HEREBY GIVEN THAT THIS AGREEMENT CONTAINS
INDEMNIFICATION PROVISIONS IN THIS SECTION 10.1 THAT APPLY TO, AND
PLEDGOR HEREBY ACKNOWLEDGES AND AGREES THAT THE FOREGOING INDEMNITY SHALL BE
APPLICABLE TO, ANY INDEMNIFIED LIABILITIES (AS DEFINED IN THIS SECTION 10.1)
THAT HAVE RESULTED FROM OR ARE ALLEGED TO HAVE RESULTED FROM THE ACTIVE OR
PASSIVE OR THE SOLE, JOINT OR CONCURRENT ORDINARY NEGLIGENCE OF ANY SECURED
CREDITOR OR ANY OTHER INDEMNIFIED PARTY UNDER THIS SECTION 10.1. The
indemnification provided for in this Section 10.1 is in addition to, and
not in limitation of, any other indemnification or insurance provided by
Pledgor to any Secured Creditor.

          10.2
Expenses. Without limiting the provisions of Section 12.5 of the
Credit Agreement or any other provision for the payment of expenses in any
other Loan Document, Pledgor will upon demand pay to Agent the amount of any
and all out-of-pocket expenses, including reasonable Attorneys’ Fees, which the
Secured Creditors may incur in connection with any and all of the following (i)
the administration of this Agreement; (ii) the custody or preservation of, or
the sale of, collection from or other realization upon any of the Pledged
Collateral; (iii) the exercise or enforcement of any of the rights of the
Secured Creditors; or (iv) the failure by Pledgor to perform or observe any of
the provisions of this Agreement, all of which constitute part of the
Obligations and are secured by the Pledged Collateral.

11. NOTICE. Any notice,
certificate, request, notification and other communication required, permitted
or contemplated hereunder must be in writing and given in accordance with the Credit Agreement.

12. TERM. Subject to Section
13.6, this Agreement will terminate on the later to occur of: (i) the full
performance, payment and satisfaction of the Obligations (and all Letter of
Credit Obligations are expired or terminated, but exclusive of any contingent
obligations for indemnification for which Agent has not then given notice of a
claim thereof against Pledgor or any Borrower) and (ii) the termination of all
Commitments of each Lender under the Credit Agreement. Upon such termination,
Agent shall, at Pledgor and Issuers’ expense, promptly execute and deliver to
Pledgor and Issuers proper documentation to release the Liens on the Pledged
Collateral or similar instrument of re-conveyance prepared by Agent, and Agent
shall duly deliver to Pledgor and Issuers such Pledged Collateral as has been
released and is in the possession of Agent. 

13. GENERAL.

          13.1
Severability. If any term of this Agreement is found invalid under Ohio
law or laws of mandatory application by a court of competent jurisdiction, the
invalid term will be considered excluded from this Agreement and will not
invalidate the remaining terms of this Agreement.

          13.2
GOVERNING LAW. THIS AGREEMENT HAS BEEN DELIVERED AND ACCEPTED AT AND
SHALL BE DEEMED TO HAVE BEEN MADE AT CINCINNATI, OHIO. THIS AGREEMENT SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF OHIO (WITHOUT REGARD TO OHIO CONFLICTS OF LAW PRINCIPLES)
EXCEPT TO THE EXTENT OF THE APPLICATION OF OTHER LAWS OF MANDATORY APPLICATION.

          13.3
WAIVER OF JURISDICTION. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR THE
SECURED CREDITORS TO EXTEND CREDIT TO BORROWERS, PLEDGOR AND THE SECURED
CREDITORS AGREE THAT ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING
OUT OF THIS AGREEMENT, ITS VALIDITY OR PERFORMANCE, AND WITHOUT
LIMITATION ON THE ABILITY OF THE SECURED CREDITORS AND THEIR SUCCESSORS AND
ASSIGNS TO EXERCISE ALL RIGHTS AS TO THE PLEDGED COLLATERAL AND INITIATE AND
PROSECUTE IN ANY APPLICABLE JURISDICTION ACTIONS RELATED TO REPAYMENT OF THE
OBLIGATIONS, SHALL BE INITIATED AND
PROSECUTED AS TO ALL PARTIES AND THEIR SUCCESSORS AND ASSIGNS AT CINCINNATI,
OHIO. EACH SECURED CREDITOR AND PLEDGOR CONSENT TO AND SUBMIT TO THE EXERCISE
OF JURISDICTION OVER THEIR RESPECTIVE PERSONS BY ANY COURT SITUATED AT
CINCINNATI, OHIO HAVING JURISDICTION OVER THE SUBJECT MATTER, WAIVE PERSONAL
SERVICE OF ANY AND ALL PROCESS UPON IT, AND CONSENT THAT ALL SUCH SERVICE OF PROCESS
MAY BE MADE BY CERTIFIED MAIL DIRECTED TO PLEDGOR AND THE SECURED CREDITORS AT
THEIR RESPECTIVE ADDRESSES AS SET FORTH IN THE CREDIT AGREEMENT OR AS OTHERWISE
PROVIDED UNDER THE LAWS OF THE STATE OF OHIO. PLEDGOR WAIVES ANY OBJECTION
BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION
INSTITUTED HEREUNDER, AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

          13.4
Survival and Continuation of Representations and Warranties. All
of Pledgor’s representations and warranties contained in, or incorporated by
reference in, this Agreement shall be true and correct in all material respects when made (or such
other date as may be specifically stated in such representation and warranty)
and shall, for all purposes of this Agreement, be deemed to be repeated on and
as of the date that each representation and 

warranty set forth in the Credit
Agreement is required to be, or is deemed to be, remade pursuant thereto,
subject to any changes to such representations and warranties that (a) are not
prohibited hereby or by the Credit Agreement, (b) do not constitute an Event of
Default or a default under this Agreement, or (c) have been consented to by
Agent in writing.

          13.5
Agent’s Additional Rights Regarding Collateral. All of the Obligations
shall constitute one obligation secured by all of the Pledged Collateral. In
addition to the Secured Creditors’ other rights and remedies under the Loan
Documents, Agent may, in its discretion exercised in good faith, following the
occurrence and during the continuance of any Event of Default (which has not
been waived): (i) exchange, enforce, waive or release any of the Pledged
Collateral or portion thereof, (ii) apply the proceeds of the Pledged
Collateral against the Obligations and direct the order or manner of the
liquidation thereof (including any sale or other disposition) in accordance
with the Credit Agreement and the other Loan Documents, and (iii) settle,
compromise, collect or otherwise liquidate any such security in any manner
without affecting or impairing its rights to take any other further action with
respect to any security or any part thereof.

          13.6 Application
of Payments; Revival of Obligations. Agent shall have the continuing right
to apply or reverse and reapply any payments to any portion of the Obligations.
To the extent Pledgor makes a payment or payments to any Secured Creditor or
any Secured Creditor receives any payment or proceeds of the Pledged Collateral
or any other security for Pledgor’s benefit, which payment(s) or proceeds or
any part thereof are subsequently voided, invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to a trustee,
receiver or any other party under any bankruptcy act, state or federal law,
common law or equitable cause, then, to the extent of such payment(s) or
proceeds received, the Obligations or part thereof intended to be satisfied
shall be revived and shall continue in full force and effect, as if such
payment(s) or proceeds had not been received by the affected Secured Creditor. 

          13.7
Additional Waivers by Pledgor. Pledgor waives presentment
and protest of any instrument and notice thereof, and, except as expressly
provided in the Loan Documents, demand, notice of default and all other notices
to which Pledgor might otherwise be entitled. Pledgor shall also assert no
claim against any Secured Creditor under any theory of liability for
consequential, special, indirect or punitive damages. 

          13.8
Equitable Relief. Pledgor recognizes that, in the event Pledgor fails to
perform, observe or discharge any of its obligations or liabilities under this
Agreement, any remedy of law may prove to be inadequate relief to the Secured
Creditors; therefore, Pledgor agrees that the Secured Creditors, if the Secured
Creditors so request, shall be entitled to temporary and permanent injunctive
relief in any such case without the necessity of proving actual damages. 

          13.9
Cumulative Remedies. The remedies provided in this
Agreement and the other Loan Documents are cumulative and not exclusive of any
remedies provided by law. Exercise of one or more remedy(ies) by Agent does not
require that all or any other remedy(ies) be exercised and does not preclude
later exercise of the same remedy. 

          13.10
No Deemed Waiver. Failure by Agent to exercise any right,
remedy or option under this Agreement or in any Loan Documents or delay by
Agent in exercising the same shall not operate as a waiver by Agent of its
right to exercise any such right, remedy or option.

          13.11
Entire Agreement; Amendments; Counterparts; Fax Signatures. This
Agreement and the other Loan Documents set forth the entire agreement of the
parties with respect to subject matter of this Agreement and supersedes all
previous understandings, written or oral, in respect thereof. Any request from
time to time by Pledgor for the Secured Creditors’ amendment, modification or
waiver of any provision in this Agreement must be in writing. The terms of this
Agreement may be amended, waived or modified only by an instrument in writing
duly executed by Pledgor and Agent (with the consent of the Lenders as
specified in Section 12.4 of the Credit Agreement). The Secured
Creditors will have no obligation to provide any amendment, modification or
waiver of or under this Agreement requested by Pledgor, and the Secured
Creditors may, for any reason in their discretion exercised in good faith,
elect to withhold consent to the requested amendment, modification or waiver.
Any such amendment, waiver or modification shall be binding upon the Secured
Creditors, each holder of Obligations, and Pledgor. Two or more duplicate
originals of this Agreement may be signed by the parties, each of which shall
be an original but all of which together shall constitute one and the same
instrument. Any documents delivered by, or on 

behalf of, the parties by fax transmission or electronic delivery of an
image file reflecting the execution hereof, and, if so signed, (i) may be
relied on by the parties as if the document were a manually signed original and
(ii) will be binding on the parties for all purposes of this Agreement and any
other Loan Documents. 

          13.12 Recourse to Directors or Officers. The obligations of the Secured Creditors under
this Agreement are solely the corporate obligations of the Secured Creditors.
No recourse shall be had for any obligation or claim arising out of or based
upon this Agreement against any stockholder, employee, officer, or director of
any of the Secured Creditors.

          13.13
Assignment. Agent shall have the right to assign this Agreement and the
other Loan Documents. Pledgor may not assign, transfer or otherwise dispose of
any of its rights or obligations hereunder, by operation of law or otherwise,
and any such assignment, transfer or other disposition without Agent’s written
consent (with the consent of the Lenders as specified in Section 12.4 of
the Credit Agreement) shall be void. All of the rights, privileges, remedies
and options given to any Secured Creditor under this Agreement shall inure to
the benefit of the successors and assigns of the applicable Secured Creditor,
and all the terms, conditions, covenants, provisions and warranties herein
shall inure to the benefit of and bind the permitted successors and assigns of
Pledgor and each Secured Creditor, respectively.

          13.14
Headings. Section headings in this Agreement are included
for convenience of reference only and shall not relate to the interpretation or
construction of this Agreement.

          13.15 Conflict.
If there is any conflict, ambiguity, or inconsistency, in Agent’s judgment,
between the terms of this Agreement and any of the other Loan Documents, then
the applicable terms and provisions, in Agent’s judgment, providing the Secured
Creditors with greater rights, remedies, powers, privileges, or benefits will
control. Without limiting the generality of the foregoing, the description of
the Pledged Collateral in this Agreement does not in any way limit the
description of, or Agent’s Lien on, the “Collateral” as defined in the Borrower
Security Agreement, or Agent’s remedies respecting such “Collateral.”

          13.16
WAIVER OF JURY TRIAL. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR THE SECURED
CREDITORS TO EXTEND CREDIT TO BORROWERS, EACH SECURED CREDITOR AND PLEDGOR
WAIVE TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING IN
RESPECT OF OR ARISING OUT OF THIS AGREEMENT OR THE CONDUCT OF THE RELATIONSHIP
BETWEEN THE SECURED CREDITORS AND PLEDGOR.

          13.17 Agent.
(i) As between the Lenders, the LC Issuer and Agent, (a) Agent will hold all
items of the Pledged Collateral at any time received under this Agreement in
accordance with the terms of this Agreement and the Credit Agreement and (b) by
accepting the benefits of this Agreement, each Lender and the LC Issuer
acknowledges and agrees that (1) the obligations of Agent as holder of the
Pledged Collateral and any interests therein and with respect to any
disposition of any of the Pledged Collateral or any interests therein are only
those obligations expressly set forth in this Agreement and the Credit
Agreement and (2) this Agreement may be enforced only by the action of Agent
and that no other Secured Creditor shall have any right individually to seek to
enforce or to enforce this Agreement, it being understood and agreed that such
rights and remedies may be exercised by Agent, for the benefit of the Secured
Creditors, upon the terms of this Agreement and the Credit Agreement. (ii) As
between Pledgor and Agent, Agent shall be conclusively presumed to be acting as
agent for the Lenders and the LC Issuer with full and valid authority to so act
or refrain from acting. 

          13.18 Continuing
Rights. Until the termination of this
Agreement in accordance with Section 12, this Agreement creates a
continuing Lien on the Pledged Collateral and will (i) be binding on Pledgor,
its successors and assigns and (ii) inure, together with the rights and
remedies of Agent under this Agreement, to the benefit of each Secured Creditor
and each Secured Creditor’s successors, transferees and assigns.

[Signature Page Follows]

          IN
WITNESS WHEREOF, Pledgor, intending to be legally bound, has caused this
Agreement to be duly executed and delivered by its officer thereunto duly
authorized as of the Effective Date.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 INDUSTRIAL SERVICES OF AMERICA, INC.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
  

 	

 

 

 
	
  

 	
  

 	
  

 	
 Harry Kletter, Chief Executive Officer

 
	
  

 	
  

 	
  

 	
  

 
	
 Accepted at Cincinnati, Ohio,

 	
  

 	
  

 
	
 as of the Effective Date.

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 FIFTH THIRD BANK, as Agent

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
  

 	

 

 

 	
  

 	
  

 
	
  

 	
 Anne B. Kelly, Vice President

 	
  

 	
  

 

Schedule I

	
  

 	
  

 	
  

 
	
 ISSUER NAME:

 	
 CLASS/NUMBER 

 	
 CERT. NO.

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
 ISA Indiana,
 Inc.

 	
 1,000

 	
 1

 
	
  

 	
  

 	
  

 
	
 ISA Indiana Real Estate, LLC

 	
 None

 	
 None

 
	
  

 	
  

 	
  

 
	
 ISA Logistics LLC

 	
 None

 	
 None

 
	
  

 	
  

 	
  

 
	
 ISA Real Estate, LLC

 	
 None

 	
 None

 
	
  

 	
  

 	
  

 
	
 7021 Grade Lane LLC

 	
 None

 	
 None

 
	
  

 	
  

 	
  

 
	
 7124 Grade Lane LLC

 	
 None

 	
 None

 
	
  

 	
  

 	
  

 
	
 7200 Grade Lane LLC

 	
 None

 	
 None

 
	
  

 	
  

 	
  

 
	
 Computerized
 Waste Systems, LLC

 	
 None

 	
 None

 
	
  

 	
  

 	
  

 
	
 ISA
 Recycling LLC

 	
 None

 	
 None

 
	
  

 	
  

 	
  

 
	
 Waste
 Equipment Sales & Service Co., LLC None

 	
 None

 	
 None

 

CONSENT
AND AGREEMENT TO PLEDGE AGREEMENT

          The
undersigned, intending to be legally bound, have executed and delivered this
Consent and Agreement to Pledge Agreement (this “Consent”). Without
limiting any provision of any Loan Document, the undersigned specifically: (i)
consents to the execution, delivery, and performance of the foregoing Pledge
Agreement and (ii) agrees that if Agent exercises its rights to cause a
transfer of the Pledged Collateral to Agent or to cause a sale or other
disposition of the Pledged Collateral following the occurrence and during the
continuance of an Event of Default which has not been waived by the Secured
Creditors, the undersigned, in each case following the occurrence and during
the continuance of an Event of Default which has not been waived by the Secured
Creditors, (a) consents, without any further act or instrument, to such
exercise of such right or remedy by Agent and (b) will, as requested by Agent,
take any other and further action necessary or desirable in Agent’s discretion
exercised in good faith to effect any sale or other disposition of the Pledged
Collateral effected by Agent. 

          Capitalized
terms used but not defined herein will have the meanings given to them in the
Credit Agreement (as defined in the foregoing Pledge Agreement). This Consent
may be signed by facsimile signatures or other electronic delivery of an image
file reflecting the execution hereof, and if so signed, (i) may be relied on by
the parties as if the document were a manually signed original and (ii) will be
binding on the parties for all purposes. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ISA INDIANA,
 INC.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
 Harry
 Kletter, Chief Executive Officer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ISA Indiana Real Estate, LLC

 
	
  

 	
  

 	
 ISA Logistics LLC

 
	
  

 	
  

 	
 ISA Real Estate, LLC

 
	
  

 	
  

 	
 7021 Grade Lane LLC

 
	
  

 	
  

 	
 7124 Grade Lane LLC

 
	
  

 	
  

 	
 7200 Grade Lane LLC

 
	
  

 	
  

 	
 Computerized
 Waste Systems, LLC

 
	
  

 	
  

 	
 ISA
 Recycling LLC

 
	
  

 	
  

 	
 Waste
 Equipment Sales & Service Co., LLC

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 Industrial Services of America, Inc., sole member

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
  

 	

  

 
	
  

 	
  

 	
  

 	
 Harry
 Kletter, Chief Executive Officer

 
	
  

 	
  

 	
  

 	
  

 
	
 Accepted at
 Cincinnati, Ohio

 	
  

 	
  

 
	
 as of the
 Effective Date.

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 FIFTH THIRD
 BANK, as Agent

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
  

 	

  

 	
  

 	
  

 
	
  

 	
 Anne B.
 Kelly, Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]