Document:

a104superpriorityguarant

                                                          EXECUTION VERSION                      GUARANTY AND SECURITY AGREEMENT            This GUARANTY AND SECURITY AGREEMENT (this “Agreement”) is dated May   22, 2019 by and among NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C., a   Delaware limited liability company (“Borrower”), each of the other Persons listed on the   signature pages hereof or that becomes a party hereto (together with the Borrower, the   “Grantors” and each, a “Grantor”) and COMPASS BANK, in its capacity as Super Priority   Agent (together with its successors and assigns, “Super Priority Agent”) for the Super Priority   Lenders and each other Secured Party (each as defined in the Super Priority Credit Agreement   referred to below).            WHEREAS, pursuant to that certain Super Priority Credit Agreement dated as of May   22, 2019 (as the same may be amended, restated, supplemented and/or modified from time to   time, the “Super Priority Credit Agreement”) by and among the Borrower, the other Loan   Parties, the Super Priority Lenders, and Super Priority Agent, the Super Priority Lenders have   severally agreed to make extensions of credit to the Borrower upon the terms and subject to the  conditions set forth therein;         WHEREAS, each Grantor (other than the Borrower) has agreed to guaranty the  Obligations (as defined in the Super Priority Credit Agreement);         WHEREAS, this Agreement is given as a condition to the loans, advances and other  extensions of credit available to Borrower under the Super Priority Credit Agreement and is  intended to provide security for the payment and performance of the Obligations owing by  Borrower to the Secured Parties;         WHEREAS, each Grantor will derive substantial direct and indirect benefits from the  making of the extensions of credit under the Super Priority Credit Agreement; and         WHEREAS, it is a condition precedent to the obligation of the Super Priority Lenders to  make their respective extensions of credit to the Borrower under the Super Priority Credit  Agreement that the Grantors shall have executed and delivered this Agreement to the Super  Priority Agent.         NOW, THEREFORE, in consideration of the premises and to induce the Super Priority  Lenders and Super Priority Agent to enter into the Super Priority Credit Agreement and to  induce the Super Priority Lenders to make their respective extensions of credit to the Borrower  thereunder, each Grantor hereby agrees with Super Priority Agent as follows:                                     ARTICLE 1                                                                         LOAN AGREEMENT         1.1   Incorporation by Reference.  This Agreement is entered into pursuant to the  terms and conditions of the Super Priority Credit Agreement.         1.2   Definitions.  Any capitalized term used but not otherwise defined herein shall  have the meaning given to it in the Super Priority Credit Agreement; provided, that the following       502181873 v2 1205867.00001  

 

terms shall have the meanings ascribed to them in the UCC:  Accounts, Chattel Paper,   Commercial Tort Claims, Deposit Accounts, Documents, Equipment, General Intangibles,   Goods, Instruments, Inventory, Instruments, Investment Property, Letter-of-Credit Rights,   Payment Intangible, Software, and Supporting Obligations.                                     ARTICLE 2                                                                              GUARANTY           2.1   Guaranty of Payment.                 (a)   Each Grantor hereby absolutely, unconditionally and irrevocably   guarantees to Super Priority Agent (for the benefit of the Secured Parties) the payment, in each   case, whether now in existence or hereafter arising, of any and all of the Obligations and   including any such Obligations incurred after the commencement of any proceeding under any   Debtor Relief Law (including any interest accruing under any Super Priority Loan Document   after the filing of a petition with respect to any Loan Party under any Debtor Relief Law, whether   or not allowed or allowable as a claim in the related proceeding), as and when the same shall   become due and payable, whether at maturity, by acceleration or otherwise.                  (b)   Each Grantor hereby unconditionally guarantees and agrees to timely   perform and comply with the due and punctual payment and the full and faithful performance of   and compliance with all of the terms, covenants, conditions and agreements contained in the   Super Priority Loan Documents (and all renewals, extensions, modifications and rearrangements   thereof).          2.2   Maximum Guaranteed Amount.  Notwithstanding any other provision of this   Agreement to the contrary, if the obligations of any Grantor hereunder would otherwise be held   or determined by a court of competent jurisdiction in any action or proceeding involving any   state corporate or similar Law or any Debtor Relief Law, fraudulent conveyance or other Laws   affecting the rights of creditors generally, to be void, invalid or unenforceable to any extent on   account of the amount of such Grantor’s liability under this Agreement, then notwithstanding   any other provision of this Agreement to the contrary, the amount of liability shall, without any  further action by any Grantor or any other Person, be automatically limited and reduced to the  highest amount which is valid and enforceable as determined in any such action or proceeding.         2.3   Continuing Nature.  This Agreement shall be continuing and shall not be  discharged, impaired or affected by (i) the power or authority or lack thereof of any Loan Party  to incur or contract for the Obligations or to execute, acknowledge or deliver any document,  agreement or other instrument evidencing, securing or otherwise executed in connection with the  Obligations; (ii) the regularity or irregularity, validity or invalidity, or enforceability or  unenforceability of the Obligations; (iii) any defenses (other than the payment and performance  of the Obligations in full) or counterclaims whatsoever that any Loan Party may or might have to   the payment or performance of the Obligations or to the assertion of a default under any   document, agreement or other instrument evidencing, securing or otherwise executed in   connection with the Obligations including, but not limited to, lack of consideration, statute of   frauds, infancy, breach of warranty, lender liability, usury, fraud and statute of limitations; (iv)                                          2   502181873 v2 1205867.00001  

 

the existence or non-existence of any Loan Party as a legal entity; (v) the transfer by any Loan   Party of all or any part of the property securing the Obligations; (vi) any right of setoff,   counterclaim or defense (other than the payment and performance of the Obligations in full) that   any Grantor may or might have to its respective undertakings, liabilities and obligations under   this Agreement, each and every such defense being hereby waived by each Grantor; or (vii) the   inability of Super Priority Agent to claim any amount of interest, fees, costs, or charges from any   Loan Party pursuant to Section 506(b) of the Bankruptcy Code of the United States.          2.4   Grantor’s Agreement To Pay.  Subject to the terms and conditions of   Section 10.4 of the Super Priority Credit Agreement, each Grantor further agrees, as the principal   obligor and not as a guarantor or surety only, to pay to Super Priority Agent, on demand, all   costs and out-of-pocket expenses (including court costs and reasonable legal expenses) incurred   or expended by Super Priority Agent in connection with the enforcement of this Agreement.          2.5   Obligations Absolute.  The obligations of each Grantor hereunder shall remain in   full force and effect without regard to, and shall not be affected or impaired by the following,   any of which may be taken without the consent of, or notice to, any Grantor, nor shall any of the   following give any Grantor any recourse or right of action against Super Priority Agent:                (a)   any express or implied amendment, modification, renewal, addition,   supplement, extension (including extensions beyond the original term) or acceleration of or to   any of the Super Priority Loan Documents;                (b)   any exercise or non-exercise by Super Priority Agent of any right or   privilege under this Agreement or any of the Super Priority Loan Documents;                (c)   any bankruptcy, insolvency, reorganization, composition, adjustment,   dissolution, liquidation or other like proceeding relating to Borrower, any Grantor or any other   guarantor (which term shall include any other party at any time directly or contingently liable for   any Loan Party’s obligations under the Super Priority Loan Documents) or any affiliate of any   Loan Party or any action taken with respect to this Agreement by any trustee or receiver, or by   any court, in any such proceeding, whether or not such Grantor shall have had notice or   knowledge of any of the foregoing;                (d)   any release or discharge of Borrower from its liability under any of the   Super Priority Loan Documents or any release or discharge of any endorser, any Grantor, any   other guarantor, or of any other party at any time directly or contingently liable for the   Obligations (other than due to the payment and performance of the Obligations in full);                (e)   any subordination, compromise, release (by operation of law or   otherwise), discharge, compound, collection, or liquidation of any or all of the property or other   collateral described in any of the Super Priority Loan Documents or otherwise in any manner, or   any substitution with respect thereto;                (f)   any assignment or other transfer of this Agreement in whole or in part or   of any of the Super Priority Loan Documents;                (g)   any acceptance of partial performance of the Obligations;                                          3   502181873 v2 1205867.00001  

 

             (h)   any consent to the transfer of the Collateral or any portion thereof or any   other collateral described in the Super Priority Loan Documents or otherwise; and                (i)   any bid or purchase at any sale of the Collateral or any other collateral  described in the Super Priority Loan Documents or otherwise.         2.6   Waivers.           Each Grantor unconditionally waives any defense to the enforcement of this Agreement,  including:               (a)   all presentments, demands for performance, notices of nonperformance,  protests, notices of protest, notices of dishonor, and notices of acceptance of this Agreement;               (b)   any right to require Super Priority Agent to proceed against Borrower, any  Grantor, or any guarantor at any time or to proceed against or exhaust any security held by Super  Priority Agent at any time or to pursue any other remedy whatsoever at any time;               (c)   the defense of any statute of limitations affecting the liability of Grantor  hereunder or the liability of Borrower, any other Grantor, or any guarantor under the Super  Priority Loan Documents, or the enforcement hereof, to the extent permitted by law;               (d)   any defense arising by reason of any invalidity or unenforceability of (or  any limitation of liability in) any of the Super Priority Loan Documents or any disability of  Borrower, any Grantor, or any guarantor or of any manner in which Super Priority Agent has  exercised its rights and remedies under the Super Priority Loan Documents, or by any cessation  from any cause whatsoever of the liability of Borrower, any Grantor or any guarantor;               (e)   without limitation on clause (d) above, any defense based upon any lack of  authority of the officers, directors, partners or agents acting or purporting to act on behalf of any  Loan Party or any principal of any Loan Party or any defect in the formation of any Loan Party  or any principal of any Loan Party;               (f)   any defense based upon the application by Borrower of the proceeds of the  Loans for purposes other than the purposes represented by Borrower to Super Priority Agent or  intended or understood by Super Priority Agent or Grantor;               (g)   any defense based upon an election of remedies by Super Priority Agent,  including any election to proceed by judicial or nonjudicial foreclosure of any security, whether  real or personal property security, or by deed in lieu thereof, and whether or not every aspect of   any foreclosure sale is commercially reasonable, or any election of remedies, including remedies   relating to real or personal property security, which destroys or otherwise impairs the   subrogation rights of Grantor or the rights of Grantor to proceed against Borrower, any other   Grantor, or any guarantor for reimbursement, or both;                (h)   any defense based upon any statute or rule of law which provides that the   obligation of a surety must be neither larger in amount nor in any other aspects more burdensome   than that of a principal;                                          4   502181873 v2 1205867.00001  

 

            (i)   any defense based upon Super Priority Agent’s election, in any proceeding  instituted under the Bankruptcy Code of the United States, of the application of Section  1111(b)(2) of the Bankruptcy Code of the United States or any successor statute;               (j)   any defense based upon any borrowing or any grant of a security interest  under Section 364 of the Bankruptcy Code of the United States;               (k)   any duty of Super Priority Agent to advise Grantor of any information  known to Super Priority Agent regarding the financial condition of any Loan Party and all other  circumstances affecting such Loan Party’s ability to perform its obligations to Super Priority  Agent, it being agreed that Grantor assumes the responsibility for being and keeping informed  regarding such condition or any such circumstances; and               (l)   any right of subrogation, reimbursement, exoneration, contribution or  indemnity, or any right to enforce any remedy which Super Priority Agent now has or may  hereafter have against any Loan Party or any benefit of, or any right to participate in, any  security now or hereafter held by Super Priority Agent.         2.7   Subrogation. Each Grantor understands that the exercise by Super Priority Agent  of certain rights and remedies may affect or eliminate such Grantor’s right of subrogation against  Borrower, any other Grantor, or any guarantor and that such Grantor may therefore incur  partially or totally nonreimbursable liability hereunder.  Nevertheless, each Grantor hereby  authorizes and empowers Super Priority Agent, its successors, endorsees, and assigns, to exercise  in its or their sole discretion, any rights and remedies, or any combination thereof, which may  then be available, it being the purpose and intent of such Grantor that the obligations hereunder  shall be absolute, continuing, independent, and unconditional under any and all circumstances.   Notwithstanding any other provision of this Agreement to the contrary, until the Termination  Date, each Grantor hereby waives and releases, to the fullest extent permitted by law, any claim  or other rights which such Grantor may now have or hereafter acquire against Borrower, any  other Grantor, or any other guarantor of all or any of the obligations of such Grantor hereunder  that arise from the existence or performance of such Grantor’s obligations under this Agreement  or any of the other Super Priority Loan Documents, including any right of subrogation,  reimbursement, exoneration, contribution or indemnification, any right to participate in any  claim or remedy of Super Priority Agent against Borrower or any Collateral which Super Priority  Agent now has or hereafter acquires, whether or not such claim, remedy or right arises in equity  or under contract, statute or common law, by any payment made hereunder or otherwise,  including the right to take or receive from any Loan Party, directly or indirectly, in cash or other  property or by setoff or in any other manner, payment or security on account of such claim or  other rights.         2.8   Additional Waivers. No Grantor shall be released or discharged, either in whole  or in part, by Super Priority Agent’s failure or delay to (i) perfect or continue the perfection of  any lien or security interest in any collateral which secures the obligations of Borrower, any  Grantor, or any other guarantor, or (ii) protect the property covered by such lien or security  interest.         2.9   Subordination. Without limitation on the waivers and releases contained herein,                                         5  502181873 v2 1205867.00001  

 

each Grantor:                (a)   subordinates all present and future indebtedness owing by any Loan Party   to such Grantor to the obligations at any time owing by such Loan Party to Super Priority Agent   under the Super Priority Loan Documents.  Each Grantor assigns all such indebtedness to Super   Priority Agent as security for this Agreement;                (b)   agrees to make no claim on such indebtedness until after the Termination   Date; and                (c)   further agrees not to assign all or any part of such indebtedness without   the prior written consent of Super Priority Agent, which consent may be granted or withheld by  Super Priority Agent in its sole and absolute discretion.  If Super Priority Agent so requests, (i)   all instruments evidencing such indebtedness shall be duly endorsed and delivered to Super   Priority Agent, (ii) all security for such indebtedness held by such Grantor shall be duly assigned   and delivered to Super Priority Agent, (iii) if an Event of Default has occurred and is continuing,   such indebtedness shall be enforced, collected and held by Grantor as trustee for Super Priority   Agent and shall be paid over to Super Priority Agent on account of the Obligations but without   reducing or affecting in any manner the liability of Grantor under the other provisions of this   Agreement, and (iv) Grantor shall execute, file and record such documents and instruments and   take such other action as Super Priority Agent reasonably deems necessary or appropriate to   perfect, preserve and enforce Super Priority Agent’s rights in and to such indebtedness and any   security therefor.  If Grantor fails to take any such action, Super Priority Agent, as attorney in   fact for each Grantor, is hereby authorized to do so in the name of such Grantor.  The foregoing   power of attorney is coupled with an interest and cannot be revoked.                                     ARTICLE 3                                                                    GRANT OF SECURITY INTEREST          3.1   Grant.  To secure the prompt payment and performance of all Obligations,   subject to the last paragraph of this Section, each Grantor hereby grants to Super Priority Agent   (for the benefit of the Secured Parties), a continuing security interest in and Lien upon all   personal property of such Grantor, including all of the following property, whether now owned   or hereafter acquired, and wherever located (collectively, the “Collateral”):                (a)   all Accounts;                (b)   all Chattel Paper, including electronic chattel paper;                (c)   all Commercial Tort Claims, including, but not limited each Commercial   Tort Claim listed on Schedule 3.1(a) attached hereto;                (d)   all Deposit Accounts;                (e)   all Documents;                                           6   502181873 v2 1205867.00001  

 

            (f)   all General Intangibles, including Payment Intangibles, Software and  Intellectual Property;               (g)   all Inventory, Equipment, fixtures and other Goods;               (h)   all Instruments;               (i)   all Investment Property, including, but not limited to, Grantor’s Equity  Interests in each Subsidiary;               (j)   all Letter-of-Credit Rights;               (k)   all Supporting Obligations;               (l)   all monies, whether or not in the possession or under the control of Super  Priority Agent or a bailee or Affiliate of Super Priority Agent, including any cash Collateral;               (m)   all accessions to, substitutions for, and all replacements, products, and  cash and non-cash proceeds of the foregoing, including proceeds of and unearned premiums with  respect to insurance policies, and claims against any Person for loss, damage or destruction of  any Collateral;               (n)   all books and records (including customer lists, files, correspondence,  tapes, computer programs, print-outs and computer records) pertaining to the foregoing;                (o)   all proceeds resulting from key-man policies; and               (p)   without limiting the generality of the foregoing, any and all of Grantor’s  rights (but none of its obligations), title and interests (including security interests) under Permits  and the Material Contracts.         Notwithstanding anything to the contrary contained in this Section 3.1, Collateral shall  not include (collectively, the “Excluded Collateral”): (i) any rights or interest in any contract,  lease, permit, license, charter or license agreement covering real or personal property of any  Grantor, as such, or any Permit, if, to the extent and so long as under the terms of such contract,  lease, permit, license, charter or license agreement, or such Permit, or Laws with respect thereto,  the valid grant of a security interest or lien therein to Super Priority Agent is prohibited and such  prohibition has not been or is not waived or the consent of the other party to such contract, lease,  charter or license agreement, or Permit, has not been or is not otherwise obtained; provided that  the foregoing exclusion shall in no way be construed (x) to apply if any such prohibition is  unenforceable under Sections 9-401, 9-406(d), 9-407, 9-408 or 9-409 of the UCC or other Laws  or (y) so as to limit, impair or otherwise affect Super Priority Agent’s unconditional continuing  security interests in and liens upon any rights or interests of any Grantor in or to monies due or to  become due under any such contract, lease, permit, license, charter or license agreement  (including any accounts), (ii) any Equity Interests of any Subsidiary (other than any wholly- owned Subsidiary) if, to the extent and so long as under the terms of the Organization  Documents of such Subsidiary the valid grant of a security interest or lien therein to Super  Priority Agent is prohibited and such prohibition has not been or is not waived or the consent of                                         7  502181873 v2 1205867.00001  

 

the relevant third party has not been or is not otherwise obtained; provided that the foregoing   exclusion shall in no way be construed (x) to apply if any such prohibition is unenforceable   under Sections 9-401, 9-406(d), 9-407, 9-408 or 9-409 of the UCC or other Laws or (y) so as to   limit, impair or otherwise affect Super Priority Agent’s unconditional continuing security   interests in and liens upon any rights or interests of any Grantor in or to monies due or to become   due under any such Equity Interests, (iii) any property which a Grantor has pledged or deposited   (in compliance with the Super Priority Loan Documents) to secure credit card advances made by   Compass Bank (until such credit card advances have been indefeasibly paid in full in cash and all   obligations to make future credit card advances secured by such property have terminated), the   performance of bids, trade contracts (other than for borrowed money), leases, statutory   obligations, insurance, surety and appeal bonds, performance bonds and other obligations of a   like nature incurred in the ordinary course of business, to the extent the terms of such documents   or the applicable statute (other than the credit card advances made by Compass Bank) prohibit a   Lien for the benefit of Super Priority Agent (together with the items described in clauses (i) and   (ii) above, the “Restricted Assets”), (iv) any “intent to use” trademark applications for which a   statement of use has not been filed (but only until such statement is filed and has been accepted),   and (v) any Equity Interests of any Foreign Subsidiary (except for Equity Interests consisting of   not more than 65% of the voting power of all classes of capital stock (or other Equity Interests)   entitled to vote of any First Tier Foreign Subsidiary); provided that the proceeds of any   Restricted Asset shall be deemed to be Collateral.           3.2   Lien on Deposit Accounts; Cash Collateral.  To further secure the prompt   payment and performance of all Obligations, each Grantor hereby grants to Super Priority Agent,   a continuing security interest in and Lien upon all of such Grantor’s right, title and interest in and   to each Deposit Account (other than any Excluded Collateral) of such Grantor, and any deposits   or other sums at any time credited to any such Deposit Account.  Upon the occurrence of a   Default or an Event of Default, each Grantor authorizes and directs each bank or other depository   to deliver to Super Priority Agent, on a daily basis, all balances in each Deposit Account (other   than any Excluded Collateral) maintained by such Grantor with such depository for application   to the Obligations then outstanding.  Each Grantor irrevocably appoints Super Priority Agent as   such Grantor’s attorney-in-fact to collect such balances to the extent any such delivery is not so   made.           3.3   Other Collateral.                (a)   Commercial Tort Claims.  Each Grantor shall promptly notify Super   Priority Agent in writing if such Grantor has a Commercial Tort Claim (other than, as long as no   Default has occurred, a Commercial Tort Claim for less than $1,000,000, individually or   $3,500,000 in the aggregate) and, upon Super Priority Agent’s request, shall promptly execute   such documents and take such actions as Super Priority Agent reasonably deems appropriate to  confer upon Super Priority Agent a valid and enforceable first priority Lien upon such claim.                (b)   Certain After-Acquired Collateral.  Each Grantor shall promptly notify   Super Priority Agent in writing if, after the Closing Date, such Grantor obtains any interest in   any material Collateral consisting of Deposit Accounts, Chattel Paper, Documents, Instruments,   Intellectual Property, Investment Property or Letter-of-Credit Rights and, upon Super Priority   Agent’s reasonable request, shall promptly execute such documents and take such actions as                                          8   502181873 v2 1205867.00001  

 

Super Priority Agent reasonably deems appropriate to effect Super Priority Agent’s valid and   enforceable first priority Lien upon such Collateral (in each case, other than any Excluded   Collateral), including obtaining any appropriate possession, or control agreement, or use of   commercially reasonable efforts to obtain collateral access agreements.  If any Collateral is in the   possession of a third party, at Super Priority Agent’s reasonably request, Grantors shall use   commercially reasonably efforts to obtain an acknowledgment that such third party holds the  Collateral for the benefit of Super Priority Agent.         3.4   Rights of Super Priority Agent.  In addition to the rights and remedies granted  to Super Priority Agent herein and in the other Super Priority Loan Documents, Super Priority   Agent shall have all of the rights and remedies of a secured party under the UCC with respect to   all of the Collateral.                                     ARTICLE 4                                                               REPRESENTATIONS AND WARRANTIES         To induce Super Priority Lenders to enter into the transactions contemplated by the Super  Priority Loan Documents, each Grantor represents and warrants to the Super Priority Agent and  the Secured Parties as follows (which representations and warranties shall survive the execution  and delivery of this Agreement and the funding of the initial Loans):         4.1   Title to Collateral; Priority of Security Interest.  Grantor has full, complete,  indefeasible and marketable title to all of the material Collateral absolutely free and clear of any  claims, defects, liens, security interests, pledges, title retention agreements or other  encumbrances other than the Permitted Liens.  Except as have been terminated or as pertains to a  Permitted Lien, no financing statement that names Grantor as a debtor or which lists any of the  Collateral as collateral (other than those which name Super Priority Agent as the secured party)  has been filed in any place, and Grantor has not signed any financing statement or any security  agreement authorizing any other secured party other than Super Priority Agent to file any such  financing statement.           4.2   Mailing Address; Chief Executive Office; Principal Place of Business.  The  address for Grantor as set forth in Schedule 5.12(b) to the Super Priority Credit Agreement is  Grantor’s correct mailing addresses, and the address of Grantor’s chief executive office or sole  place of business.          4.3   Other Names.  Grantor has not changed its name or used any other name or any  trade name within the five (5) year period immediately preceding the date of this Agreement,  except as disclosed to Super Priority Agent in writing.  Grantor shall not change its name nor   change or reorganize the type of business entity under which it does business except in   accordance with Section 7.20 of the Super Priority Credit Agreement.          4.4   Location of Goods and Inventory.  As of the date of this Agreement, all of the  Goods and Inventory are located only at the real property or leased locations identified on  Schedule 4.4 hereto, and none of the Goods or Inventory is stored with, nor in the possession of,                                           9   502181873 v2 1205867.00001  

 

any bailee, warehouseman, subcontractor, or other similar Person except as noted on Schedule   4.4 hereto.          4.5   Intellectual Property.  Except as set forth on Schedule 4.5 hereto, as of the date   of this Agreement, Grantor has no registered Intellectual Property and, except as set forth on   Schedule 4.5, Grantor has no patents or trademarks issued by, or the subject of pending   applications in, the United States Patent and Trademark Office or any similar office or agency in   the United States or any other country.  Grantor has not abandoned any pending patent or   trademark application material to its business.          4.6   No Violation.  This Agreement does not materially violate the provisions of any   material document, agreement or other instrument by which Grantor is bound.           4.7   No Consent or Authorization.  No consent or authorization is required as a   condition to the execution of this Agreement by Grantor other than those described in Section 5.3   to the Super Priority Credit Agreement.           4.8   Financial Condition.  Grantor is fully aware of the financial condition of the   Loan Parties and their Subsidiaries;           4.9   Own Investigation.  Grantor delivers this Agreement based solely upon   Grantor’s own independent investigation and understanding of the transaction of which this   Agreement is a part and in no part upon any representation or statement of Super Priority Agent   with respect thereto.  Grantor is in a position to and hereby assumes full responsibility for   obtaining any additional information concerning the Loan Parties’ and their Subsidiaries’   financial condition or business operations as Grantor may deem material to its obligations   hereunder and Grantor is not relying upon, nor expecting Super Priority Agent to furnish Grantor   with, any information in Super Priority Agent’s possession concerning the Loan Parties’ and   their Subsidiaries’ financial condition or business operations.            4.10  Continuing Agreement.  Grantor acknowledges and agrees that it hereby   knowingly accepts the full range of risk encompassed within a contract of “continuing guaranty”,   which risk includes, without limitation, the possibility that the Loan Parties will incur or contract   for additional indebtedness for which Grantor will be liable hereunder.                                     ARTICLE 5                                                                             COVENANTS          Until the Termination Date, each Grantor covenants and agrees with Super Priority Agent   as follows:          5.1   Offices.  Grantor agrees (i) promptly to notify the Super Priority Agent in writing   of any change in its chief executive offices or principal place of business and (ii) 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 Super Priority Agent to continue at all times following such change to   have a valid, legal and perfected first priority security interest in all the Collateral.                                          10   502181873 v2 1205867.00001  

 

      5.2    Books and Records.                (a)   Grantor will keep and maintain, at its own cost and expense, satisfactory   and complete books and records of and with respect to the Collateral, including records of the   status of any pending applications for material Intellectual Property.                (b)   Grantor shall keep all books and records relating to the Collateral at   Grantor’s chief executive office or at one of its principal places of business.                (c)   Subject to the terms, conditions, and restrictions of the Super Priority   Credit Agreement (including Section 6.10 of the Super Priority Credit Agreement), Super   Priority Agent shall at all reasonable times and during normal business hours and without   hindrance or delay, have access to the above-referenced books and records and any other data   relating to the Collateral and the right at all reasonable times and during normal business hours to   examine the same and to audit, inspect, verify, check and make extracts or photocopies   therefrom.                (d)   Without limiting the rights of Super Priority Agent under the Super   Priority Credit Agreement, following the occurrence and during the continuation of an Event of   Default, but subject to the terms, conditions and restrictions of Section 6.10 of the Super Priority   Credit Agreement, Super Priority Agent shall have the right, at the cost and expense of Grantor,   to audit the books and records of Grantor concerning the Collateral and to require Grantor to   procure and deliver to Super Priority Agent, at Grantor’s own cost and expense, all reports and   information pertaining to the Collateral and to such portion of the financial condition and   business operations of Grantor as Super Priority Agent may reasonably deem necessary.               (e)   Super Priority Agent shall have a special property interest in all books and  records of Grantor pertaining to the Collateral and, at any time, upon the reasonable request of  Super Priority Agent following the occurrence and during the continuation of an Event of  Default, Grantor shall, at its own cost and expense, deliver all such books or records to Super  Priority Agent or its designated representatives and shall deliver to Super Priority Agent or its   designated representatives all original and other documents evidencing and relating to the   Collateral.          5.3   Equipment.  Except as otherwise permitted by the Super Priority Credit   Agreement, Grantor shall use its material Equipment solely in the conduct of the Loan Parties’   and their Subsidiaries’ business.          5.4   Goods and Inventory.  Grantor shall keep, store or regularly garage the Goods   and Inventory which are material to Grantor’s businesses in a careful, secure and commercially   reasonable manner at Grantor’s principal places of business or at those locations identified on   Schedule 4.4 hereto and, except for sales of Goods or Inventory in the ordinary course of   business and as otherwise permitted under the Super Priority Credit Agreement, shall not change   the location of any item of the Goods or Inventory which are material to Grantor’s businesses   without the prior written consent of Super Priority Agent, which consent shall not be   unreasonably withheld.  Such consent will be deemed to have been given if Super Priority Agent                                           11   502181873 v2 1205867.00001  

 

fails to reply to the request for such consent within fifteen (15) business days after such request   is delivered pursuant to the notice requirements found in the Super Priority Credit Agreement.          5.5   No Transfers of Collateral.  Notwithstanding that the Proceeds are included   within the definition of “Collateral” (and therefore subject to Super Priority Agent’s security   interest hereby granted), Grantor shall not transfer the Collateral or any portion thereof or any   interest therein, except to the extent expressly permitted by the terms and conditions of the Super   Priority Credit Agreement.          5.6   Liens, Claims and Attachments.  Grantor shall maintain the Collateral free from   all Liens and legal processes (other than Permitted Liens), and Grantor shall notify Super Priority  Agent within ten (10) Business Days after receipt of written notice of any Lien, attachment or  judicial proceeding affecting any material item of the Collateral in whole or in part.          5.7   Payment of Taxes, Assessments and Fees.  Subject to Section 6.4 of the Super   Priority Credit Agreement, Grantor shall pay all taxes, assessments and fees relating to the   ownership or use of the Collateral or any portion thereof as and when the same shall be due and   payable except for any of the foregoing contested in good faith and subject to appropriate   reserves.          5.8   Maintenance, Repairs and Replacements.  Grantor shall keep and maintain, or   cause to be kept and maintained, all of the material tangible Collateral in good condition,   ordinary wear and tear excepted, and shall provide all maintenance and service and make all   repairs and replacements necessary for such purpose, subject to Grantor’s reasonable   determination of the economic viability of such repair or replacement.  If any parts or accessories  forming part of the material tangible Collateral become worn out, lost, destroyed, damaged  beyond repair or otherwise permanently rendered unfit for use, Grantor, at its own expense, shall  within a reasonable time replace such parts or accessories or cause the same to be replaced by  replacement parts or accessories that have a value and utility at least equal to the parts or  accessories replaced, subject to Grantor’s reasonable determination of the economic viability of  such repair or replacement.  All accessories, parts and replacements for or which are added to or  become attached to any of the tangible Collateral shall immediately be deemed incorporated in   the tangible Collateral and subject to the security interest granted by Grantor under the Super   Priority Loan Documents.          5.9   Right to Inspect.  Subject to the terms and conditions of the Super Priority Credit   Agreement (including Section 6.10 of the Super Priority Credit Agreement), Super Priority   Agent shall have the right to inspect all of the tangible Collateral and all maintenance and repair   records relating thereto at all reasonable times.          5.10  Insurance.  At its own expense, Grantor shall obtain and maintain customary   insurance for Grantor’s businesses covering the material tangible Collateral for the full   replacement value thereof.  Grantor shall, upon reasonable request, provide to Super Priority   Agent on an annual basis evidence satisfactory to Super Priority Agent of its compliance with the   insurance coverage requirements of this Section 5.10.                                           12   502181873 v2 1205867.00001  

 

      5.11   Application of Insurance Proceeds.  The Net Cash Proceeds of the insurance   maintained by Grantor and payable as a result of loss of or damage to any of the tangible   Collateral shall be applied in accordance with Section 2.5(b)(iii) of the Super Priority Credit  Agreement.  Grantor irrevocably appoints Super Priority Agent as Grantor’s attorney-in-fact to  make claim for, receive payment of, and execute and endorse all documents, checks or drafts  received in payment for loss or damage under any of these insurance policies.         5.12  Financing Statements; Recording Costs; Possession of Collateral.  Grantor  shall promptly execute, authorize and deliver to Super Priority Agent any financing or  continuation statement or other documents required, or procure any documents required  (including termination statements, as necessary), to carry out the transactions contemplated by  the Super Priority Credit Agreement and to maintain Super Priority Agent’s valid and  enforceable (subject to Permitted Liens) first priority Lien in all of the Collateral.  Grantor shall  pay all state and local stamp or documentary taxes, recordation and transfer taxes, clerks’ fees  and filing fees, and all other costs to record such documents and to perfect and maintain Super  Priority Agent’s valid and enforceable (subject to Permitted Liens) first priority Lien in all of the  Collateral.  If any material portion of the Collateral (other than cash) is of a type as to which it is  necessary or desirable for Super Priority Agent to take possession of the Collateral in order to  perfect, or maintain the priority of, Super Priority Agent’s security interests, then at or prior to  the Closing Date, to the extent reasonably requested by the Super Priority Agent, Grantor shall  deliver such Collateral to Super Priority Agent, and, with respect to any such Collateral (other  than cash) acquired by Grantor after the Closing Date, to the extent reasonably requested by the  Super Priority Agent, Grantor shall promptly deliver same to Super Priority Agent.  A carbon,  photographic, photocopy or other reproduction of a security agreement (including this  Agreement) or financing statement shall be sufficient as a financing statement.         5.13  Supporting Materials.  Grantor, upon the reasonable request of Super Priority   Agent, shall provide Super Priority Agent from time to time with: (a) written statements or   schedules identifying and describing the Collateral, and all additions, substitutions, and   replacements thereof, in such reasonable detail as Super Priority Agent may reasonably require;   (b) copies of customers’ invoices or billing statements; (c) proof of the sale or lease of goods or   evidence of the satisfactory performance of services which gave rise to any Accounts; and (d)   such other schedules and information as Super Priority Agent may reasonably  require.  The   items to be provided under this Section 5.13 shall be in a form reasonably satisfactory to Super   Priority Agent and are to be executed and delivered to Super Priority Agent from time to time   solely for Super Priority Agent’s convenience in maintaining records of the Collateral.  Grantor’s   failure to give any of such items to Super Priority Agent shall not affect, terminate, modify or   otherwise limit Super Priority Agent’s security interests in any of the Collateral.          5.14  Notification of Delays.  Grantor, upon the reasonable request of Super Priority  Agent, shall regularly advise Super Priority Agent of any delay in delivery or performance, or  claims made, in regard to any of the Collateral.         5.15  Additional Covenants Relating to Accounts and Chattel Paper.  Subject to the  terms and conditions of the Super Priority Credit Agreement, upon the reasonable request of  Super Priority Agent, at any time after the occurrence and during the continuation of an Event of  Default, Grantor shall deposit, or cause to be deposited, all checks, drafts, cash and other                                          13   502181873 v2 1205867.00001  

 

remittances in payment of, or on account of payment of, any and all Accounts and Chattel Paper   (all of the foregoing herein collectively referred to as “Items of Payment”) to an account (the   “Collateral Account”) designated by Super Priority Agent at a bank or other financial institution   designated by Super Priority Agent.  Super Priority Agent shall not be responsible for the   solvency of any such bank or other financial institution, or the management and administration   of the Collateral Account.  Super Priority Agent alone shall have the power to access and make  withdrawals from the Collateral Account.  Grantor shall deposit such Items of Payment for credit  to the Collateral Account within two (2) Business Days of the receipt thereof and in precisely the  form received, except for the endorsement of Grantor where necessary to permit the collection of  such Items of Payment, which endorsement Grantor hereby agrees to make.  Pending such  deposit, Grantor will not commingle any such Items of Payment with any of its other funds or  property, but will hold them separate and apart.  Super Priority Agent shall be entitled, from time  to time in Super Priority Agent’s discretion, to apply the funds in the Collateral Account against  any of the Obligations.  Once no Event of Default is outstanding, Super Priority Agent shall  return all Items of Payment maintained in the Collateral Account to Borrower.          5.16  Additional Covenants Relating to Intellectual Property.                (a)   Except in the Ordinary Course of Business or as otherwise permitted   under the Super Priority Credit Agreement, Grantor will not transfer or grant an exclusive or   non-exclusive license relating to, or otherwise dispose of any material intellectual property   without the prior written consent of Super Priority Agent, (not to be unreasonably withheld or   delayed).                (b)   Grantor shall not file any application for the issuance of a patent or   trademark with the United States Patent and Trademark Office or any similar office or agency in   the United States or any other country, unless Grantor has notified Super Priority Agent in   writing of such action within 30 days thereafter and, upon the reasonable request of Super  Priority Agent, Grantor shall execute and deliver to Super Priority Agent any and all  assignments, agreements, instruments, documents and such other papers as may be reasonably  requested by Super Priority Agent to effect an assignment of such application to Super Priority  Agent.               (c)   Grantor will not do any act, nor omit to do any act, whereby any such  patents or trademarks, once granted and which remain useful, in any material respect, to  Grantor’s business, may become abandoned or unenforceable, and Grantor shall notify Super  Priority Agent promptly if it knows or has reason to know of any reason why any application,   material to the business, may become abandoned, invalidated or the subject of any suit.                (d)   Grantor will render any assistance reasonably necessary to Super Priority  Agent without cost in any proceeding before the United States Patent and Trademark Office or  any similar office or agency in the United States or any other country to maintain each  application, material to the business, for any patents, copyrights, trademarks or other Intellectual   Property, including, without limitation, the filing of all renewals and the payment of all annuities.          5.17  Notice to the Secured Party; Joinder by Grantor.  Grantor will notify Super   Priority Agent within ten (10) Business Days if Grantor should learn of any unauthorized use or                                          14   502181873 v2 1205867.00001  

 

infringement of a material nature by any Person with respect to any of the material Collateral.   Following any such notice, if reasonably requested by Super Priority Agent, Grantor, at   Grantor’s expense, shall join with Super Priority Agent in such action as Super Priority Agent, in   its discretion, may deem advisable for the protection of the valid and enforceable (subject to   Permitted Liens) first priority Lien of Super Priority Agent.                                     ARTICLE 6                                                                         INDEMNIFICATION   THE GRANTORS, JOINTLY AND SEVERALLY, SHALL INDEMNIFY THE SUPER  PRIORITY AGENT (AND ANY SUB-AGENT THEREOF), EACH SUPER PRIORITY  LENDER AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS  (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD   EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES,   PENALTIES, LIABILITIES AND RELATED EXPENSES (INCLUDING THE FEES,   CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE), AND   SHALL INDEMNIFY AND HOLD HARMLESS EACH INDEMNITEE FROM ALL FEES   AND TIME CHARGES AND DISBURSEMENTS FOR ATTORNEYS WHO MAY BE   EMPLOYEES OF ANY INDEMNITEE, INCURRED BY ANY INDEMNITEE OR   ASSERTED AGAINST ANY INDEMNITEE BY ANY PERSON (INCLUDING THE  BORROWER OR ANY GRANTOR, WHETHER OR NOT CAUSED BY OR ARISING, IN  WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE  NEGLIGENCE OF SUCH INDEMNITEE) OTHER THAN SUCH INDEMNITEE AND ITS  RELATED PARTIES ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF  (I) THE EXECUTION OR DELIVERY OF THIS AGREEMENT, ANY OTHER SUPER  PRIORITY LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT  CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES  HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER OR  THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR  THEREBY, (II) ANY LOAN OR THE USE OR PROPOSED USE OF THE PROCEEDS  THEREFROM, (III) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF  HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY OWNED, LEASED OR  OPERATED BY ANY GRANTOR OR ANY SUBSIDIARY THEREOF, OR ANY  ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO ANY GRANTOR OR ANY  SUBSIDIARY THEREOF OR (IV) ANY ACTUAL OR PROSPECTIVE CLAIM,  LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE  FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY,  WHETHER BROUGHT BY A THIRD PARTY OR BY THE BORROWER OR ANY  GRANTOR, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY   THERETO;   PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY   INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS,   DAMAGES, LIABILITIES OR RELATED EXPENSES (X) ARE DETERMINED BY A   COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE   JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL   MISCONDUCT OF SUCH INDEMNITEE OR (Y) RESULT FROM A CLAIM BROUGHT   BY THE BORROWER OR ANY GRANTOR AGAINST AN INDEMNITEE FOR BREACH                                          15   502181873 v2 1205867.00001  

 

IN BAD FAITH OF SUCH INDEMNITEE’S OBLIGATIONS HEREUNDER OR UNDER  ANY OTHER SUPER PRIORITY LOAN DOCUMENT, IF THE BORROWER OR SUCH  GRANTOR HAS OBTAINED A FINAL AND NONAPPEALABLE JUDGMENT IN ITS  FAVOR ON SUCH CLAIM AS DETERMINED BY A COURT OF COMPETENT  JURISDICTION.  THIS ARTICLE 6 SHALL NOT APPLY WITH RESPECT TO TAXES   OTHER THAN ANY TAXES THAT REPRESENT LOSSES, CLAIMS, DAMAGES, ETC.   ARISING FROM ANY NON-TAX CLAIM.  THE OBLIGATIONS CONTAINED IN THIS   ARTICLE 6 SHALL SURVIVE THE PAYMENT OF THE OBLIGATIONS AND SHALL   SURVIVE ANY TERMINATION, RELEASE, OR DISCHARGE EXECUTED BY SUPER   PRIORITY AGENT IN FAVOR OF ANY GRANTOR OR ANY OTHER PARTY.                                     ARTICLE 7                              DEFAULT AND REMEDIES          Upon the occurrence and during the continuation of an Event of Default (including,   without limitation, any Grantor’s breach of any representation or warranty under this Agreement   or violation or failure to perform under any of the covenants contained in this Agreement, but   subject to the terms of the Super Priority Credit Agreement), Super Priority Agent shall   immediately be entitled to exercise, in addition to those available at law or in equity, all of the   following rights and remedies:          7.1   Collection.  Super Priority Agent may proceed directly and at once without notice   against any Grantor to collect and recover the full amount of the liability hereunder, or any  portion thereof, without proceeding against any Loan Party or any other Person, or endorser,  surety or guarantor, or foreclosing upon, selling, or otherwise disposing of, or enforcing, or  collecting or applying any Collateral, Super Priority Agent may then have as security for the  Obligations, and without enforcing or proceeding under any other guaranty.         7.2   Assemble Collateral.  Super Priority Agent may require any Grantor (at such  Grantor’s sole expense) to assemble and to forward promptly any or all of the Goods,  Equipment, Chattel Paper, and Inventory to Super Priority Agent at such location(s) as shall be  reasonably required by Super Priority Agent.         7.3   Take Possession.  Without breaching the peace, Super Priority Agent may enter  upon the premises where any Goods, Equipment, Chattel Paper, monies, deposit accounts or  rights to money are located and take immediate possession thereof, by summary proceedings or  otherwise, and Super Priority Agent may remove any of such items, all without liability of Super  Priority Agent to any Grantor for or by reason of such entry, taking of possession or removal in  the absence of gross negligence thereof.         7.4   Appointment of Receiver.  Super Priority Agent shall be entitled to appointment  of a receiver to take possession of and to manage all or any portion of the Collateral.  Super  Priority Agent may obtain such appointment without notice to, or demand of any Grantor, on an  ex parte basis before any court of competent jurisdiction, and without regard to the adequacy of  the Collateral as security for the Obligations.                                           16   502181873 v2 1205867.00001  

 

      7.5    Sale of Collateral.  Super Priority Agent may sell, assign, and deliver or   otherwise dispose of or cause to be sold or otherwise disposed of, the whole or any part of the  Collateral, at one or more commercially reasonable public or private sales, without demand or   advertisement of the time or place of sale or of any adjournment thereof, each of which is hereby   expressly waived.  The sale or other disposition may be made for such price and upon such terms   and conditions as Super Priority Agent may deem best in its exercise of its commercially   reasonable discretion.  Super Priority Agent shall apply the proceeds from such sale or sales or   such other disposition or dispositions: first, to the settlement of all liens or claims on the   Collateral with a lien priority greater than that of Super Priority Agent; second, to the payment of   all reasonable expenses connected with the assembly, preservation, preparation, and sale or other   disposition of the Collateral, including any trustees’ or auctioneers’ fees, commissions or other   expenses; third, in accordance with Section 8.3 of the Super Priority Credit Agreement.  Each   Grantor hereby expressly waives all rights of appraisal, whether before or after the sale or other   disposition, and any right of redemption after the sale or other disposition. Each Grantor shall   have the right to redeem any of the Collateral up to the time of the sale or other disposition by   paying to Super Priority Agent, the aggregate amount of the Obligations, together with all costs   incurred by Super Priority Agent in collecting such amounts or in enforcing its rights and   remedies hereunder, and any other monetary Obligations then due and owing.          7.6   Attorney-in-Fact.  Each Grantor hereby irrevocably appoints Super Priority   Agent as such Grantor’s attorney-in-fact, with power of substitution, to do each of the following   in the name of such Grantor and on its own behalf or in the name of Super Priority Agent or   otherwise, for the use and benefit of Super Priority Agent, but at the cost and expense of such   Grantor, and without notice to such Grantor:                (a)   sign or authorize financing statements, continuation statements or other   recordable documents reasonably necessary to provide notice of the security interest granted   herein in the applicable public records;                (b)   following the occurrence of an Event of Default, notify the debtors or   other party(ies) obligated under any of the Accounts, Chattel Paper or General Intangibles to   make payments thereon directly to Super Priority Agent, and to take control of the cash and non-  cash proceeds of any Collateral;                (c)   compromise, extend, or renew any of the Collateral or deal with the same   as it may deem advisable;                (d)   release, make exchanges, substitutions, or surrender all or any part of the   Collateral;                (e)   following the occurrence of an Event of Default, remove from Grantor’s   places of business all books, records, ledger sheets, correspondence, invoices and documents,   relating to or evidencing any of the Collateral or without cost or expense to Super Priority Agent,   make such use of Grantor’s place(s) of business as may be reasonably necessary to administer,   control and collect the Collateral;                                           17   502181873 v2 1205867.00001  

 

             (f)   following the occurrence of an Event of Default, repair, alter or supply   goods, if any, necessary to fulfill in whole or in part the purchase order of any Account Debtor;                (g)   demand, collect receipt for, and give renewals, extensions, discharges and  releases of, any of the Collateral;               (h)   following the occurrence of an Event of Default, institute and prosecute  legal and equitable proceedings to enforce collection of, or realize upon, any of the Collateral;                (i)   settle, renew, extend, compromise, compound, exchange or adjust claims   with respect to any of the Collateral or any legal proceedings brought with respect thereto;                (j)   following the occurrence of an Event of Default, endorse the name of   Grantor upon any items of payment relating to the Collateral or upon any proof of claim in  bankruptcy against an Account Debtor;                (k)   following the occurrence of an Event of Default, institute and prosecute  legal and equitable proceedings to reclaim any of the goods sold to any debtor obligated on an  Account, Chattel Paper, or General Intangible at a time when such debtor was insolvent;               (l)   following the occurrence of an Event of Default, receive and open all mail  addressed to Grantor and notify the postal authorities to change the addresses for the delivery of  mail to Grantor to such addresses as Super Priority Agent may designate; and               (m)   following the occurrence of an Event of Default, execute and deliver on  behalf of Grantor one or more instruments of assignment of the Intellectual Property (or  application, letters patent or recording relating thereto), in form suitable for filing, recording or  registration.   The foregoing powers are coupled with an interest and are irrevocable so long as any monetary  Obligations remain outstanding.  This appointment may be discharged by any officer or attorney  of such attorney-in-fact.         7.7   Right to Make Payments or Otherwise Cure.  Super Priority Agent may take  any actions, make any payments, or incur any reasonable expenses (including, without limitation,  the payment of filing fees, court costs, travel expenses and reasonable attorneys’ fees) as may be  necessary or appropriate to preserve, defend, protect, maintain, record or enforce the Obligations,  the Collateral, or the assignment granted hereunder.         7.8   Intellectual Property Remedies.  In addition to all other rights and remedies,  Super Priority Agent, following the occurrence and during the continuation of an Event of  Default, shall have the following rights and remedies with respect to intellectual property, each  of which may be exercised without notice to, or consent by, any Grantor except as expressly  provided for herein:               (a)   Super Priority Agent may require that Grantor immediately discontinue  any existing use of intellectual property and that Grantor not make further use of intellectual  property for any purpose whatsoever;                                           18   502181873 v2 1205867.00001  

 

             (b)   Upon ten (10) calendar days’ prior notice to Grantor, Super Priority Agent   may grant one or more exclusive or non-exclusive license or licenses relating to any of   intellectual property for such term or terms, on such conditions, and in such manner, as Super   Priority Agent shall in its sole discretion deem appropriate.  Such license or licenses may be   general, special or otherwise, and may be granted on an exclusive or non-exclusive basis   throughout the United States of America, its territories and possessions, and throughout all   foreign countries;                (c)   Upon ten (10) calendar days’ prior notice to any Grantor, Super Priority   Agent may assign, sell or otherwise dispose of intellectual property or any part thereof, either  with or without special conditions or stipulations.  Super Priority Agent shall have the power to  purchase intellectual property or any part thereof, and Super Priority Agent shall also have the  power to execute all assurances and to perform all other acts which Super Priority Agent may, in  its sole discretion, deem appropriate or proper to complete such assignment, sale or disposition;               (d)   Super Priority Agent may first apply the proceeds actually received from  any such license, assignment, sale or other disposition of intellectual property to the reasonable  costs and expenses thereof, including, without limitation, reasonable attorneys’ fees and all legal,  travel and other expenses which may be incurred by Super Priority Agent.  Thereafter, Super  Priority Agent may apply any remaining proceeds to such of the Obligations as Super Priority  Agent may in its sole discretion determine. Each Grantor shall remain liable to Super Priority  Agent for any expenses or the Obligations remaining unpaid after the application of such  proceeds, and Grantors will pay Super Priority Agent on demand any such unpaid amount; and               (e)   If any such license, assignment, sale or other disposition of intellectual  property (or any part thereof) is made after the occurrence of an Event of Default under any of  the Super Priority Loan Documents, each Grantor shall supply to Super Priority Agent or Super  Priority Agent’s designee, such Grantor’s knowledge and expertise relating to the manufacture  and sale of the products according to the patented inventions, such Grantor’s customer lists, and  other records relating to the distribution of any products related thereto.                                       ARTICLE 8                                                                      ADDITIONAL PROVISIONS         8.1   Independent and Separate Obligations.  The obligations of each Grantor  hereunder shall be absolute and unconditional and are independent of the obligations of such  Grantor or of any other person, endorser, surety or guarantor; and, in the event of any Default  hereunder, a separate action or actions may be brought and prosecuted against any Grantor  whether or not such Grantor is the alter ego of any Loan Party and whether or not such Grantor is  joined therein or a separate action or actions are brought against Borrower.  Super Priority  Agent’s rights hereunder shall not be exhausted until all of the Obligations have been  indefeasibly paid in full in cash and performed (other than Contingent Obligations not then due).           8.2   Deficiency.  Each Grantor shall be and remain liable for all of the Obligations   remaining after crediting to such Grantor any net proceeds received by Super Priority Agent   following exercise of any of its rights and remedies hereunder.                                          19   502181873 v2 1205867.00001  

 

     8.3    [Reserved].        8.4    No Duty to Act.  Nothing contained in this Agreement or any of the other Super  Priority Loan Documents shall be construed as requiring Super Priority Agent to take any  particular enforcement or remedial action or combination of enforcement or remedial actions at  any time.         8.5   Bankruptcy.                 (a)   All of the Obligations shall, at the option of Super Priority Agent,  forthwith become due and payable if there shall be filed against Borrower a petition in  bankruptcy or for insolvency proceedings or for reorganization, dissolution or liquidation, or for  appointment of a receiver or trustee, or if Borrower or any Grantor makes an assignment for the  benefit of creditors.  This Agreement shall remain in full force and effect, without abatement,  until the Obligations have been paid or performed in full and all other obligations guaranteed  hereunder have been performed (other than Contingent Obligations not then due) to the  satisfaction of Super Priority Agent, it being expressly understood and agreed to by each Grantor  that this Agreement shall continue to be effective or shall be reinstated, as the case may be, if at  any time payment, in whole or in part, of any of the Obligations is rescinded, invalidated,  declared to be fraudulent or preferential, set aside or must otherwise be restored or returned by  Super Priority Agent upon the insolvency, bankruptcy, dissolution, liquidation or reorganization  of any Grantor all as though such payment had not been made, to Grantor or a trustee, receiver or  any other party.  Each Grantor understands and agrees that in the event Super Priority Agent is  required to so return all or any portion of a payment received from Borrower, such Grantor shall  be required to pay Super Priority Agent for such amount.               (b)   So long as any of the obligations guaranteed hereunder shall be owing to  Super Priority Agent, no Grantor shall, without the prior written consent of Super Priority Agent,  commence or join with any other party in commencing any bankruptcy, reorganization or  insolvency proceedings of or against any Grantor.  Each Grantor understands and acknowledges  that by virtue of this Agreement, it has specifically assumed any and all risks of a bankruptcy or  reorganization case or proceeding with respect to such Grantor.  As an example and not in any  way of limitation, a subsequent modification of the Obligations in any reorganization case  concerning any Grantor shall not affect the obligation of such Grantor to pay and perform the  Obligations in accordance with its original terms.  In any bankruptcy or other proceeding in  which the filing of claims is required by Law, each Grantor shall file all claims which such  Grantor may have against such Grantor or relating to any indebtedness of Borrower to such  Grantor and shall assign to Super Priority Agent all rights of such Grantor thereunder.  If Grantor  does not file any such claim, Super Priority Agent, as attorney in fact for each Grantor, is hereby  authorized to do so in the name of such Grantor or, in Super Priority Agent’s discretion, to assign  the claim to a nominee and to cause proof of claim to be filed in the name of Super Priority  Agent’s nominee.  The foregoing power of attorney is coupled with an interest and cannot be  revoked.  Super Priority Agent or its nominee shall have the right, in its reasonable discretion, to  accept or reject any plan proposed in such proceeding and to take any other action which a party  filing a claim is entitled to do.  In all such cases, whether in administration, bankruptcy or  otherwise, the person or persons authorized to pay such claim shall pay to Super Priority Agent  the amount payable on such claim and, to the full extent necessary for that purpose, each Grantor                                         20  502181873 v2 1205867.00001  

 

hereby assigns to Super Priority Agent all of such Grantor’s rights to any such payments or   distributions; provided, however, such Grantor’s obligations hereunder shall not be satisfied   except to the extent that Super Priority Agent receives cash by reason of any such payment or   distribution.  If Super Priority Agent receives anything hereunder other than cash, the same shall   be held as collateral for amounts due under this Agreement.  Notwithstanding anything to the   contrary herein, the liability of each Grantor hereunder shall be reinstated and revised, and the   rights of Super Priority Agent shall continue, with respect to any amount at any time paid by or   on behalf of such Grantor on account of the Super Priority Loan Documents which Super   Priority Agent shall restore or return by reason of the bankruptcy, insolvency or reorganization   of such Grantor or for any other reasons, all as though such amount had not been paid.          8.6   Remedies Not Limited; Partial Exercise.  All of Super Priority Agent’s rights   and remedies, whether provided under this Agreement, the other Super Priority Loan   Documents, at law, in equity, or otherwise shall be cumulative and none is exclusive.  Such   rights and remedies may be enforced alternatively, successively or concurrently, and each   Grantor hereby agrees that Super Priority Agent may enforce its rights separately hereunder with   respect to individual items or classes of Collateral without waiving or prejudicing in any respect   Super Priority Agent’s rights hereunder with respect to any other items or classes of Collateral.    Super Priority Agent may exercise any other right or remedy which may be available to it under   this Agreement, the Super Priority Credit Agreement or applicable Law, including, without   limitation, the remedies set forth in Article VIII of the Super Priority Credit Agreement, or may   proceed by appropriate court action to enforce the terms hereof, to recover damages for the   breach hereof, or to rescind this Agreement in whole or in part.          8.7   Costs of Enforcement.  Subject to Section 10.4 of the Super Priority Credit   Agreement, each Grantor shall be liable for all costs reasonably incurred by Super Priority Agent   or any Super Priority Lender in collecting any sums owed to Super Priority Agent under the   Super Priority Loan Documents or in otherwise enforcing any of the Obligations (whether or not   suit is brought), including, without limitation, all reasonable attorneys’ fees and expenses, court   costs, and reasonable costs of consultants, appraisers and other advisors retained by Super   Priority Agent.  In the event of any Default, Super Priority Agent may, in its own discretion, cure   such Default and, if it does so, any expenditures made for such purpose shall be added to the   principal of the Obligations.          8.8   Mitigation of Damages.  To the extent permitted by Law, each Grantor hereby   waives any notice or other mandatory requirements of Law, now or hereafter in effect, which   might require Super Priority Agent to sell, lease or otherwise use any of the Collateral in   mitigation of Super Priority Agent’s damages; provided, however, that such Grantor does not   waive any legal requirement that Super Priority Agent act in a commercially reasonable manner.          8.9   No Waivers by Super Priority Agent or Super Priority Lender.  No failure of   Super Priority Agent or any Super Priority Lender to exercise, or delay by Super Priority Agent   or any Super Priority Lender in the exercise of, any of its rights and remedies granted herein   following the occurrence of a Default or an Event of Default shall constitute a waiver of any of   Super Priority Agent’s or any Super Priority Lender’s rights with respect to such Default or   Event of Default or any subsequent Default or Event of Default (whether or not similar).  Any   failure or delay by Super Priority Agent or any Super Priority Lender to require strict                                          21   502181873 v2 1205867.00001  

 

performance by any Grantor of any of the provisions, warranties, terms and conditions contained  herein or in any other agreement, document or instrument, shall not affect Super Priority Agent’s  or any Super Priority Lender’s right to demand strict compliance and performance therewith.         8.10  Waiver of Notice and Hearing Regarding Probable Cause by Grantor.  Each  Grantor acknowledges being advised of a constitutional right, as to pre-judgment relief as may  be sought by Super Priority Agent through the process of a court, to notice and a court hearing to  determine whether, upon default, there is probable cause to sustain the validity of Super Priority  Agent’s claim and whether Super Priority Agent is entitled to possession of the Collateral.  Being  so advised, each Grantor, in regard to such relief and to the fullest extent permitted by Law,  hereby voluntarily gives up, waives and surrenders any right to a notice and hearing to determine  whether there is probable cause to sustain the validity of Super Priority Agent’s claim.  Any  notices required pursuant to any state or local law shall be deemed reasonable if mailed by Super  Priority Agent to the persons entitled thereto at their last known addresses at least ten (10)  calendar days prior to disposition of the Collateral, and in reference to a private sale, need state  only that Super Priority Agent intends to negotiate such a sale.         8.11  Super Priority Agent’s Actions.  Super Priority Agent may take or release the  Collateral or other security, may release any party primarily or secondarily liable for any  Indebtedness to Super Priority Agent, may grant extensions, renewals or indulgences with  respect to such Indebtedness, and may apply any other security therefor held by it to the  satisfaction of such Indebtedness, all without prejudice to any of its rights or any Grantor’s  obligations hereunder or under any of the other Super Priority Loan Documents.         8.12  Taxes.  Subject to Section 3.1 of the Super Priority Credit Agreement, all  payments hereunder shall be made without any counterclaim of setoff, free and clear of, and  without reduction by reason of, any taxes, levies, imposts, charges and withholdings, restrictions  or conditions of any nature (other than on the income of Super Priority Agent) (“Taxes”), which   are now or may hereafter be imposed, levied or assessed by any country, political subdivision or   taxing authority, all of which will be for the account of and paid by any Grantor hereunder.  If   for any reason, any such reduction is made or any Taxes are paid by Super Priority Agent,   subject to Section 3.1 of the Super Priority Credit Agreement, Grantor will pay to Super Priority   Agent the additional amounts as may be necessary to ensure that it receives the same net amount   that it would have received had no reduction been made of Taxes paid.          8.13  Liability for Loss.  Super Priority Agent shall not be liable for any loss to the   Collateral in its possession, nor shall such loss diminish the debt due, except for loss caused by   Super Priority Agent’s willful misconduct or gross negligence.          8.14  Amendments and Waivers.  No amendment or waiver of any provision of this   Agreement nor consent to any departure by any Grantor therefrom shall be effective unless the   same shall be in writing and signed by Super Priority Agent and each Grantor.  No failure on the   part of Super Priority Agent to exercise, and no delay in exercising, any right or remedy  hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right  hereunder preclude any other or further exercise of any other right.                                           22   502181873 v2 1205867.00001  

 

      8.15   Notices.  All notices hereunder shall be given in accordance with the notice  provisions in the Super Priority Credit Agreement. Each Grantor agrees that ten (10) Business  Days’ prior notice of the time and place of any public sale of all or any portion of the Collateral,  or of the time after which a private sale of all or any portion of the Collateral will be made, is  commercially reasonable notice.         8.16  Joint and Several Obligations.  Each Grantor’s obligations hereunder are joint  and several obligation of all such Persons (including, without limitation, all makers, endorsers,  guarantors and sureties, if any) and shall be binding on all such Persons and their respective  heirs, executors, administrators, legal representatives, successors and assigns.         8.17  Amendments and Modifications.  The provisions of this Agreement shall extend   and be applicable to all renewals, amendments, extensions and modifications of the Obligations   and the documents, agreements and other instruments evidencing, securing or otherwise   executed in connection with the Obligations, and all references to the Obligations and such   documents, agreements or instruments shall be deemed to include any renewal, extension,   amendment or modification thereof.          8.18  Further Assurances.  Each Grantor will promptly and duly execute and deliver  to Super Priority Agent such further documents and assurances and take such further actions as  Super Priority Agent may from time to time reasonably request in order to carry out the intent  and purpose of this Agreement and to establish and protect the rights and remedies created or  intended to be created in favor of Super Priority Agent hereunder.         8.19  Successors and Assigns.  This Agreement shall be binding upon, and shall inure  to the benefit of, each Grantor, Super Priority Agent, and their respective successors and assigns.           8.20  Assignment.  Each Grantor acknowledges that it may not assign any of its rights  or delegate any of its duties under this Agreement.  Super Priority Agent may assign all of its  right, title and interest in and to this Agreement and the Collateral to any transferee of the  Obligations where such Obligations are transferred in accordance with the terms of the Super  Priority Credit Agreement.         8.21  Governing Law; Venue, etc.               (a)   Governing Law.  This Agreement and any claims, controversy, dispute or   cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to   this Agreement and the transactions contemplated hereby and thereby shall be governed by, and   construed in accordance with, the law of the State of New York.                (b)   Submission to Jurisdiction.  Each Grantor irrevocably and unconditionally   agrees that it will not commence any action, litigation or proceeding of any kind or description,   whether in law or equity, whether in contract or in tort or otherwise, against the Super Priority   Agent, any Super Priority Lender, or any Secured Party of the foregoing in any way relating to   this Agreement or the transactions relating hereto or thereto, in any forum other than 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, and each of the  parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and                                          23   502181873 v2 1205867.00001  

 

agrees that all claims in respect of any such action, litigation 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 of the parties hereto agrees that a final judgment in any such action,   litigation 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 the Super Priority Agent, any Super Priority Lender or any Secured Party may   otherwise have to bring any action or proceeding relating to this Agreement against any Loan   Party or its properties in the courts of any jurisdiction.                (c)   Waiver of Venue.  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 subsection (b) of this Section.  Each of the parties hereto 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.                (d)   Service of Process.  Each party hereto irrevocably consents to service of   process in the manner provided for notices in Section 8.15.  Nothing in this Agreement will   affect the right of any party hereto to serve process in any other manner permitted by applicable   Law.                (e)   Each Grantor expressly acknowledges and agrees that the provisions of   this Section 8.21 are reasonable and made for the express benefit of Super Priority Agent.          8.22  Trial by Jury.  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 (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 SUPER  PRIORITY LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL  WAIVERS AND CERTIFICATIONS IN THIS SECTION.         8.23  Termination of Agreement; Release of Security Interest.  Upon the   Termination Date, this Agreement shall terminate without further action by Super Priority Agent;  provided, however, that this Agreement shall remain in full force and effect and continue to be   effective should any petition be filed by or against any Grantor for liquidation or reorganization,   should any Grantor become insolvent or make an assignment for the benefit of any creditor or   creditors or should a receiver or trustee be appointed for all or any significant part of any   Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any   time payment and performance of the Obligations, or any part thereof, is, pursuant to Law,   rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the                                          24   502181873 v2 1205867.00001  

 

Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as   though such payment or performance had not been made.  In the event that any payment, or any   part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and   deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.    Upon termination of this Agreement, Super Priority Agent will execute and deliver to each   Grantor, at its expense, any releases, termination statements or similar instruments of   reconveyance as such Grantor may reasonably request. Upon the Disposition of any Collateral   (to the extent permitted under the Super Priority Credit Agreement) or of any Subsidiary (to the   extent permitted under the Super Priority Credit Agreement), Super Priority Agent will execute   and deliver to each Grantor, at its expense, any releases, termination statements or similar   instruments of reconveyance as such Grantor may reasonably request with respect to such   Collateral or such Subsidiary.             8.24  Severability.  Any provision of this Agreement or of any related instrument or   document executed pursuant hereto 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 thereof, and any such prohibition or   unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in   any other jurisdiction.  To the extent permitted by Law, each Grantor hereby waives any   provision of law which renders any provision hereof or thereof prohibited or unenforceable in   any respect.          8.25  Headings.  The section headings in this Agreement are included herein for   convenience of reference only and shall not constitute a part of this Agreement for any other   purpose.  The exhibits attached hereto, are hereby incorporated by reference as a part of the   Agreement with the same force and effect as if set forth in the body hereof.          8.26  Counterparts.  This Agreement may be executed in any number of counterparts,   each of which when so executed and delivered shall be an original, but all of which shall together   constitute one and the same instrument. Delivery of an executed counterpart of a signature page   to this Agreement by facsimile, portable document format (“PDF”) or other electronic means   shall be as effective as delivery of a manually executed counterpart of this Agreement.  The   effectiveness of any such documents and signatures shall, subject to applicable Law, have the   same force and effect as manually signed originals and shall be binding on each Grantor and   Super Priority Agent.  Super Priority Agent may also require that any such documents and   signatures be confirmed by a manually signed original thereof; provided, however, that the   failure to request or deliver the same shall not limit the effectiveness of any facsimile document   or signature.  No party may raise the use of a facsimile, PDF or other electronic means, or the   fact that any signature was transmitted through the use of a facsimile, PDF or other electronic   means, as a defense to the enforcement of this Agreement.          8.27  Super Priority Credit Agreement.  Nothing contained herein is intended to, nor   shall, amend, modify or supplement the terms and conditions of the Super Priority Credit   Agreement or any other Super Priority Loan Documents, nor restrict in any way, any rights or   remedies Super Priority Agent may have under the Super Priority Credit Agreement or any of the   other Super Priority Loan Documents.                                           25   502181873 v2 1205867.00001  

 

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                                                            SCHEDULE 3.1(A) TO SECURITY AGREEMENT                                                                                   COMMERCIAL TORT CLAIMS                                                  None.      502181873 v2 1205867.00001  

 

                     SCHEDULE 4.4 TO SECURITY AGREEMENT                                                                              LOCATION OF GOODS AND INVENTORY                                                              Grantor                        Location             Athas Administrative LLC  8080 Park Lane, Suite 400, Dallas, TX                                                     75231                 Athas Health LLC      8080 Park Lane, Suite 400, Dallas, TX                                                     75231                Athas Holdings LLC     8080 Park Lane, Suite 400, Dallas, TX                                                     75231             Central Dallas Management,   11700 Katy Freeway, Suite 300,                       LLC                     Houston, Texas 77079           Central Medical Solutions LLC  11700 Katy Freeway, Suite 300,                                               Houston, Texas 77079            Chandler Surgery Center, LLC    1475 West Chandler Blvd.                                               Chandler, AZ 85224                  Concertis, LLC          11700 Katy Freeway, Suite 300,                                               Houston, Texas 77079             Downtown Dallas Surgery       11700 Katy Frwy., Suite 300,                   Center, LLC                 Houston, TX 77079              Hermann Drive Surgical          2001 Hermann Drive,                    Hospital, LP               Houston, Texas 77004           Houston Microsurgery Institute, 11700 Katy Freeway, Suite 300,                       LLC                     Houston, Texas 77079            Marsh Lane Surgical Hospital,       2301 Marsh Lane,                      LLC                       Plano, Texas 75093                  MPDSC, LLC                   3750 Medical Park                                                    Suite 300                                             Dickinson, Texas 77539             NHC Arizona Professional     11700 Katy Freeway, Suite 300,                  Associates, LLC              Houston, Texas 77079              Nobilis Arizona Holding     11700 Katy Freeway, Suite 300,                   Company, LLC                Houston, Texas 77079                Nobilis Health Corp.    11700 Katy Freeway, Suite 300 and                                                     400                                              Houston, Texas 77079           Nobilis Health Marketing, LLC  8080 Park Lane, Suite 400, Dallas, TX                                                     75231            Nobilis Surgical Assist, LLC  11700 Katy Freeway, Suite 300,                                               Houston, Texas 77079            Northstar Healthcare General  11700 Katy Freeway, Suite 300,                   Partner, L.L.C.             Houston, Texas 77079            Northstar Healthcare Limited  11700 Katy Freeway, Suite 300,                   Partner, L.L.C.             Houston, Texas 77079    502181873 v2 1205867.00001  

 

             Northstar Healthcare Holdings, 11700 Katy Freeway, Suite 300,                        Inc.                   Houston, Texas 77079                Northstar Healthcare      11700 Katy Freeway, Suite 300,                 Acquisitions, L.L.C.          Houston, Texas 77079                                        7324 Southwest Freeway, Suite 700                                               Houston, TX  77074                                         14555 N. Scottsdale Rd., Suite 160,                                              Scottsdale, AZ 85254            Northstar Healthcare Surgery       9377 East Bell Road              Center - Scottsdale, LLC       Suites 131,201,207,225                                            Scottsdale, Arizona 85260                Northstar Healthcare      11700 Katy Freeway, Suite 300,             Management Company, LLC           Houston, Texas 77079             Northstar Healthcare Subco,  11700 Katy Freeway, Suite 300,                      L.L.C.                   Houston, Texas 77079            Northstar Healthcare Surgery  11700 Katy Freeway, Suite 300,                Center - Houston, LLC          Houston, Texas 77079                North Phoenix ASC         11700 Katy Freeway, Suite 300,                 Management, LLC               Houston, Texas 77079               Peak Neuromonitoring       11700 Katy Freeway, Suite 300,               Associates - Texas, LLC         Houston, Texas 77079               Peak Neuromonitoring       11700 Katy Freeway, Suite 300,              Associates - Texas II, LLC       Houston, Texas 77079           Peak Surgeon Innovations, LLC  11700 Katy Freeway, Suite 300,                                               Houston, Texas 77079           Premier Health Specialists, LLC  11700 Katy Freeway, Suite 300,                                               Houston, Texas 77079             Southwest Freeway Surgery      4120 Southwest Freeway,                    Center, LLC                Houston, Texas 77027                                      Southwest Houston Surgical   11700 Katy Freeway, Suite 300,                    Assist, LLC                Houston, Texas 77079             Southwest Freeway Surgery    11700 Katy Freeway, Suite 300,               Center Management, LLC          Houston, Texas 77079             The Palladium for Surgery -  11700 Katy Freeway, Suite 300,                    Dallas, Ltd.               Houston, Texas 77079            Plano Surgical Management,     11700 Katy Frwy., Suite 300,                      LLC                      Houston, TX 77079                                                2301 Marsh Ln.,                                               Plano, Texas 75093            Phoenix Surgery Center, LLC      20045 North 19th Avenue                                               Phoenix, AZ  85027             Oracle Surgery Center, LLC  5585 North Oracle Road, Suite B                                               Tuscon, AZ 85704              Nobilis Vascular Holding    11700 Katy Freeway, Suite 300,     82956925  502181873 v2 1205867.00001  

 

                   Company, LLC                Houston, Texas 77079            Nobilis Vascular Texas, LLC  4690 Sweetwater Blvd., Suite 200 and                                         Suite 160, Sugar Land, TX  77479                                         4690 Sweetwater Blvd., Suite 113,                                              Sugar Land, TX 77479                                         23510 Kingsland Blvd, Katy, TX                                                    77479                                        251 Medical Center Blvd., Suite 200                                         and Suite 210, Webster, TX 77598                                           9323 Pinecroft, Suite 200, The                                              Woodlands, TX 77380                                         1650 Round Rock Ave., Suite 100,                                             Round Rock, TX 78681                                        19701 Kingwood Dr., Bldg. #1, Suite                                             B, Kingwood, TX 77339                                        19016 Stone Oak Parkway, Suite 180,                                             San Antonio, TX 78258              PSH Management, LLC         11700 Katy Freeway, Suite 300,                                               Houston, Texas 77079                                                   82956925  502181873 v2 1205867.00001  

 

                             SCHEDULE 4.5 TO SECURITY AGREEMENT                                                                                                    INTELLECTUAL PROPERTY                                                                                                         MARK         COUNTRY     SERIAL     FILING     REG. NO.   REG. DATE    OWNER/GRANTOR                                  NO.       DATE                                (APPLICANT)  NOBILIS HEALTH   US          86/375,40  08/23/20  4805340     09/01/2015   Nobilis Health Corp.                              9          14                   US          86/119,45  11/14/20  4555939     06/24/2014   Nobilis Health Corp.                               0          13  NUESTEP          US          86/119,44  11/14/20  4555938     06/24/2014   Nobilis Health Corp.                              7          13  STEP  AWAY  FROM  US         86/119,44  11/14/20  4555937     06/24/2014   Nobilis Health Corp. FOOT PAIN                    4          13                   US          77/301,10  10/10/20  3444878     06/10/2008   Northstar  Healthcare                               9          07                                 Acquisitions, L.L.C.           ACCURASCOPE      US          85/267,41  03/15/20  4041538     10/18/2011   Nobilis Health Corp.                              0          11  NORTHSTAR        US          77/892,04  12/11/20  N/A         N/A          Nobilis Health Corp. HEALTHCARE                   3          09                   US          86/90553   02/11/20  5048824     9/27/2016    Nobilis Health Corp.                              0          16              MIRI             US          86/90551   02/11/20  5045253     9/20/2016    Nobilis Health Corp.                              0          16                           US          86/91388   02/19/20  N/A         N/A          Nobilis Health Corp.                              4          16                   US          86/91385   02/19/20  5184510     4/18/2017    Nobilis Health Corp.                              4          16             MIGRAINE         US          86/91380   02/19/20  5152966     2/28/2017    Nobilis Health Corp. TREATMENT                    9          16  CENTERS      OF  AMERICA  NORTH AMERICAN   US          86/91374   02/19/20  5158193     3/7/2017     Nobilis Health Corp. SPINE                        4          16  OMEGA            US          86/91370   02/19/20  5045527     9/20/2016    Nobilis Health Corp.                              8          16  ONWARD           US          86/92387   02/29/20  5312306     10/17/2017   Nobilis Health Corp.                              7          16                   US          87626853   09/28/20  N/A         N/A          Nobilis Health Corp. INTELLISPINE                            17                          Tradename                  Jurisdiction        Registration  Nobilis Party                                                               Number       502181873 v2 1205867.00001  

 

    NORTHSTAR     HEALTHCARE             Arizona             905897      Northstar   SURGERY CENTER                                                       Healthcare  Surgery                                                                        Center         –                                                                        Scottsdale, LLC   ARIZONA  VEIN  &  VASCULAR           Arizona              423625     NHC      Arizona   CENTER                                                               Professional                                                                        Associates, LLC                                        Licensed Patents                                                  Title                 Appl.  No./  Patent  Filing   Nobilis Parties                       No.                Date/                                           Issue Date  Hybrid Operating Room  14/219,880        3/19/14    Nobilis Health for  Combined  Surgical  9,249,588       2/2/16     Corp.   and   Fixed   Imaging                                 Services    in    an                                Northstar  Ambulatory    Surgical                              Healthcare Acquisitions, LLC  Center  Hybrid Operating Room  9,322,188         4/26/16    Nobilis Health for  Combined  Surgical  14/560,789      12/4/14    Corp.   and   Fixed   Imaging                                 Services    in    an                                Northstar  Ambulatory    Surgical                              Healthcare Acquisitions, LLC  Center   Hybrid Operating Room  9,334,664         5/10/16    Nobilis Health for  Combined  Surgical  14/560,721      12/4/14    Corp.   and   Fixed   Imaging                                 Services    in    an                                Northstar  Ambulatory    Surgical                              Healthcare Acquisitions, LLC  Center  Hybrid Operating Room  15/138,134        4/25/16    Nobilis Health for  Combined  Surgical                             Corp.  and   Fixed   Imaging                                 Services    in    an                                Northstar  Ambulatory    Surgical                              Healthcare Acquisitions, LLC  Center  Hybrid Operating Room  PCT/US2015/021236 3/18/15    Nobilis Health for  Combined  Surgical                             Corp.   and   Fixed   Imaging                                 Services    in    an                                Northstar  Ambulatory    Surgical                              Healthcare Acquisitions, LLC  Center  Hybrid Operating Room  PCT/US2015/063692 12/3/15    Nobilis Health for  Combined  Surgical                             Corp.   and   Fixed   Imaging                                 Services    in    an                                Northstar  Ambulatory    Surgical                              Healthcare Acquisitions, LLC  Center                                                Internet Domain Names                                                  502181873 v2 1205867.00001  

 

         Owner/Nobilis Party        Domain Name       Nobilis Health Corp.       http://www.nobilishealth.com       Athas Health, LLC          http://spinetreatmentcenters.com       Athas Health, LLC          http://northamericanspine.com       Athas Health, LLC          http://migrainecenters.com       Nobilis Health Corp.       http://onwardorthopedics.com       Nobilis Health Corp.       http://northstar‐bariatric.com       Nobilis Health Corp.       http://evolveweightlossexperts.com       Nobilis Health Corp.       http://concertishealth.com       Nobilis Health Corp.       http://nuestep.com       Nobilis Health Corp.       http://nuestepprocedure.com       Nobilis Health Corp.       http://miriwomen.com       Athas Health, LLC          http://athas‐health.com       Athas Health, LLC          http://microsurg.com       Athas Health, LLC          http://centraldallassurgerycenter.com       Nobilis Health Corp.       http://southwestfreewaysurgerycenter.com        Nobilis Health Corp.       http://victorymedicalhouston.com       Nobilis Health Corp.       http://hermanndrivesurgicalhospital.com       Kirby Surgical Center      http://kirbysurgicalcenter.com       Nobilis Health Corp.       http://planosurgicalhospital.com       Northstar Healthcare       https://azvascular.com/       Acquisitions, L.L.C        Northstar Healthcare       https://hamiltonvein.com/       Acquisitions, L.L.C        Nobilis Arizona Holding    https://derosamedical.com/       Company, LLC        Nobilis Health Corp.       http://firststreetsurgicalcenter.com/       Nobilis Health Corp.       http://firstsurgicalhospital.com/       Nobilis Health Corp.       http://www.scottsdalelibertyhospital.com/        Nobilis Health Corp.       https://clarityveinandvascular.com/       Nobilis Health Corp.       https://nobilisneurodiagnostics.com       Nobilis Health Corp.       https://threesixtyconcierge.com       Nobilis Health Corp.       https://nobilisneurodiagnostics.com                                                                      502181873 v2 1205867.00001Exhibit 10.27

    

     

      

    
      THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED.   THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE
        COMPANY THAT REGISTRATION IS NOT REQUIRED.

       

      

      	
              Warrant No. 1

            	
              Void After May 24, 2022

            

      

      

      NEXTDECADE CORPORATION

      WARRANT TO PURCHASE SHARES

       

        

      This Warrant is issued to York Tactical Energy Fund, L.P. (“Investor”) by NextDecade Corporation, a Delaware corporation
          (the “Company”), in connection with a private offering of Series B Preferred Stock pursuant to which certain accredited investors are purchasing shares of the Company’s Series B Convertible Preferred Stock, which include this Warrant.

       

        

      1.           Purchase of Shares. Subject to the terms and conditions hereinafter set forth, the Investor or other holder of this Warrant pursuant to a valid transfer made
          in accordance with the terms hereof (“Holder”) is entitled, upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the holder in writing), to purchase from the Company up to an
          aggregate number of fully paid and nonassessable shares (each a “Share” and collectively the “Shares”) of Company common stock, par value $0.0001 per share (the “Common Stock”), equal to 0.024% of the Common Stock on a Fully Diluted Basis (defined below) on the Exercise Date (defined below) at an exercise price of $0.01 per Share (such price, as adjusted from time to time, is herein referred to
          as the “Exercise Price”).

       

        

      For purposes of this Warrant, “Fully
              Diluted Basis” shall mean, at any time, without duplication, the number of outstanding shares of Common Stock, after giving effect to (i) all shares of Common Stock actually outstanding at the time of determination, (ii) all shares
          of Common Stock issuable upon the exercise of any option, warrant (other than this Warrant) or similar right outstanding at the time of determination, and (iii) all shares of Common Stock issuable upon the exercise of any conversion or exchange
          right contained in any security outstanding at the time of determination and convertible into or exchangeable for shares of Common Stock; provided, however, (i) Fully Diluted Basis shall not include any Common Stock issued pursuant to, but not yet vested pursuant to, any Company equity incentive plan and
          (ii) any warrants issued by Harmony Merger Corporation (12,081,895 as of the date hereof) shall be reduced by dividing the outstanding number by 2.9167, which shall be proportionately adjusted pursuant to any appropriate adjustments contained in
          Section 6 of this Warrant.

       

        

      
        
          

      

      
      2.           Exercise Date.  This Warrant may be exercisable by Holder before 5 p.m. Central Standard Time on the third anniversary date of the issuance date of this
          Warrant, or 5 p.m. Central Standard Time on May 24, 2022 (the “Exercise Date”); provided, the Company can force a mandatory exercise of the Warrants prior to the Exercise Date if (a) the volume weighted average trading price of shares of Common Stock for each trading day during any sixty (60) of the
          prior ninety (90) trading days is equal to or greater than 175% of $7.50 per share of Common Stock of the Company and (b) the Company simultaneously elects to force a mandatory exercise of all other warrants then-outstanding and unexercised and
          held by any holder of Parity Stock; provided, further, that
          such trigger price shall be appropriately adjusted consistent with Section 6 of this Warrant for any of the events described therein.  All rights of Holder under this Warrant shall cease after 5:00 p.m. Central time on the Expiration Date.  For purposes of this Section 2, “Parity Stock” has the meaning ascribed to such term in that certain Certificate of
            Designations of Series B Convertible Preferred Stock of NextDecade Corporation, dated as of September 28, 2018 (the “Series B Certificate of
              Designations”).

       

          

      3.           Method of Exercise.  While this Warrant remains outstanding and exercisable in accordance with Section 2 above, the Holder may exercise from time to time, in whole or in part, the purchase rights evidenced hereby.  Such exercise shall be effected by:

       

        

      (i)          the
          surrender of the Warrant, together with a notice of exercise to the Secretary of the Company at its principal offices; and

       

        

      (ii)         the
          payment to the Company of an amount equal to the aggregate Exercise Price for the number of Shares being purchased.

       

        

      4.          Certificates for Shares.  Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates for the number of Shares so purchased
          shall be issued as soon as practicable thereafter, and in any event, within thirty (30) days of the delivery of the subscription notice.

       

        

      5.          Issuance of Shares.  The Company covenants that (i) the Shares, when issued pursuant to the exercise of this Warrant, will be duly and validly issued, fully
          paid and nonassessable and free from all taxes, liens, and charges with respect to the issuance thereof, (ii) the Company will reserve from its authorized and unissued Common Stock sufficient Shares in order to perform its obligations under this
          Warrant, and (iii) such Shares will be eligible to be registered under the Securities Act in accordance with the terms of the Registration Rights Agreement, dated as of the date hereof, by and between the Company and the Investor.

       

        

      6.           Adjustment of Exercise Price and Number of Shares.  The number of and kind of securities purchasable upon exercise of this Warrant and the Exercise Price shall
          be subject to adjustment from time to time as follows:

       

        

      
        2

        
          

      

      (a)         Subdivisions, Combinations, Dividends and Other Issuances.  If at any time before the expiration of this Warrant (x) the outstanding Shares are subdivided, by
          split-up or otherwise, or any additional Shares are issued as a dividend or otherwise (including any deemed dividend or distribution pursuant to Section 6(b)),

          then on the effective date of such subdivision or issuance, the number of Shares issuable on the exercise of this Warrant shall forthwith be increased in proportion to such increase in outstanding Shares or (y) the number of outstanding Shares is
          decreased by a consolidation, combination, reverse share split or reclassification of the Shares or other similar event, then, on the effective date of such consolidation, combination, reverse share split, reclassification or similar event, the
          number of Shares issuable on exercise of each Warrant shall forthwith be decreased in proportion to such decrease in outstanding Shares.  Whenever the number of Shares purchasable upon the exercise of this Warrant is adjusted as provided herein,
          the Exercise Price shall be adjusted by multiplying such Exercise Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be the number of Shares purchasable upon the exercise of this Warrant immediately prior to
          such adjustment, and (y) the denominator of which shall be the number of Shares or other securities so purchasable immediately thereafter, such that the aggregate purchase price payable for the total number of Shares purchasable under this
          Warrant (as adjusted) shall remain the same. Any adjustment under this Section 6(a) shall become effective at the close of business on the date the
          subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

       

        

      (b)         Rights Offerings. An offering of rights, options, securities or other instruments convertible into Shares, or other similar offering to holders of Shares
          entitling holders to purchase Shares at a price less than the “Fair Market Value” (as defined below) shall be deemed a stock dividend of a number of Shares equal to the product of (i) the number of Shares actually sold in such rights offering (or
          issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for Shares) multiplied by (ii) one (1) minus the quotient of (x) the aggregate price per Share payable for such offering divided by
          (y) the Fair Market Value. For purposes of this Section 6(b), (i) if the rights offering is for securities convertible into or exercisable for the Shares,
          in determining the price payable for the Shares, there shall be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) “Fair Market Value” means the volume
          weighted average price of the Shares as reported during the ten (10) trading day period ending on the trading day prior to the first date on which the Shares trade on the applicable exchange or in the applicable market, regular way, with the
          right to receive such rights.

       

        

      (c)          Reclassification, Reorganization and Consolidation.  In case of any reclassification, capital reorganization, or change in the capital stock of the Company
          (other than as a result of a subdivision, combination, or stock dividend provided for in Section 6(a) above), or in the case of any merger, consolidation
          or other business combination of the Company with or into another Person (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the
          outstanding Shares), or in the case of any sale or conveyance to another Person of the assets or other property of the Company as an entirety or substantially as an entirety, the Holder of this Warrant shall thereafter have the right to purchase
          and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the Shares of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and
          amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the Holder of this Warrant
          would have received if such Holder had exercised this Warrant immediately prior to such event (the “Alternative Issuance” ); provided, however, that (i) if the holders of the Shares were entitled to exercise a right
          of election as to the kind or amount of securities, cash or other assets receivable upon such consolidation or merger, then the kind and amount of securities, cash or other assets constituting the Alternative Issuance for which each Warrant shall
          become exercisable shall be deemed to be the weighted average of the kind and amount received per share by the holders of the Shares in such consolidation or merger that affirmatively make such election, and (ii) if a tender, exchange or
          redemption offer shall have been made to and accepted by the holders of the Shares under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule
          13d-5(b)(1) under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”)) of which such
          maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within
          the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the outstanding shares of Common Stock, the Holder of this Warrant shall be entitled to receive as the Alternative Issuance, the highest amount of cash, securities or other
          property to which such Holder would actually have been entitled as a stockholder if the Holder of this Warrant had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Shares held by
          such Holder had been purchased pursuant to such tender or exchange offer, subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in this Section 6.  For purposes of this Section 6(c), “Person” means any
          corporation, limited liability company, partnership, joint venture, trust, or any other entity or organization of any kind.

       

        

      
        3

        
          

      

      (d)          Special Distributions.  In case the Company shall declare a dividend or make any other distribution (excluding dividends payable in Shares and other dividends
          or distributions referred to in Section 6(a), including, without limitation, in cash, property or assets, to holders of Shares (a “Special Distribution”), then the board of directors of the Company shall make provision so that upon the exercise of this Warrant, the Holder of this Warrant shall be entitled
          to receive such dividend or distribution that the Holder would have received had this Warrant been exercised immediately prior to the record date for such dividend or distribution.  When a Special Distribution is authorized by the board of
          directors of the Company to be made, the Company shall promptly notify the Holder of this Warrant of such event in writing and the dividend or other distribution that the Holder of this Warrant are entitled to receive.

       

        

      (e)         Other Events. In case any event shall occur affecting the Company as to which none of the provisions of preceding subsections of this Section 6 are strictly applicable, but which would require an adjustment to the terms of this Warrant in order to (i) avoid an adverse impact on this Warrant and (ii) effectuate
          the intent and purpose of this Section 6, then, in each such case, the Company shall appoint a firm of independent public accountants, investment banking
          or other appraisal firm of recognized national standing, which shall give its opinion as to whether or not any adjustment to the rights represented by the Warrants is necessary to effectuate the intent and purpose of this Section 6 and, if such firm determines that an adjustment is necessary, the terms of such adjustment. The Company shall adjust the terms of the Warrants in a manner that is
          consistent with any adjustment recommended in such opinion.

       

        

      (f)          Notice of Adjustment.  When any adjustment is required to be made in the number or kind of shares purchasable upon exercise of the Warrant, or in the Exercise
          Price, the Company shall promptly notify the Holder in writing of the adjustment and of the number of Shares or other securities or property thereafter purchasable upon exercise of this Warrant and provide the Holder with a certificate of its
          Chief Financial Officer setting forth the adjustment and the facts upon which the adjustment is based.  The Company shall, upon written request, furnish the Holder a certificate setting forth the Exercise Price in effect upon the date thereof and
          the series of adjustments leading to such Exercise Price.

       

        

      
        4

        
          

      

      7.           No Fractional Shares or Script.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant, but in lieu of
          such fractional shares the Company shall make a cash payment therefor on the basis of the Exercise Price then in effect.

       

        

      8.           Representations of the Company.  The Company represents and warrants to the Holder as follows:

       

        

      (a)          The
          Company has been duly formed, and is validly existing in good standing, under the laws of the State of Delaware.  The Company has the requisite corporate power and authority to enter into and perform this Warrant, to own and operate its
          properties and assets and to carry on its business as currently conducted and as presently proposed to be conducted.  The Company is duly qualified to do business as a foreign company and is in good standing in all jurisdictions in which it is
          required to be qualified to do business as the Company’s business is currently conducted and as presently proposed to be conducted by the Company, except for jurisdictions in which failure to so qualify would not have a material adverse effect on
          the business and operations of the Company taken as a whole.

       

        

      (b)          All
          corporate actions on the part of the Company, its officers, directors and stockholders necessary for (i) the authorization, execution, delivery of, and the performance of all obligations of the Company under this Warrant and (ii) the
          authorization, issuance, reservation for issuance and delivery of this Warrant and all of the Common Stock to allow for the exercise of this Warrant.

       

        

      (c)         This
          Warrant is, and any Warrant issued in substitution for or replacement of this Warrant shall be, upon issuance, duly authorized and validly issued.  All Shares which may be issued upon the exercise of the purchase right represented by this
          Warrant, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein, the Company’s governing documents and in any
          documents relating to the Shares, each as may be amended from time to time, and all such securities will be issued in compliance with all applicable federal and state securities laws.

       

        

      (d)          The
          Company is not in violation or default in any material respect of any provisions of the Company’s Second Amended and Restated Certificate of Incorporation (the “Certificate

              of Incorporation”) or Amended and Restated Bylaws of the Corporation, both as amended to date, and the Company is in compliance in all material respects with all applicable statutes, laws, regulations and executive orders of the
          United States of America and all states, foreign countries or other governmental bodies and agencies having jurisdiction over the Company’s business or properties.  The Company has not received any notice of any violation of any such statute,
          law, regulation or order which has not been remedied prior to the date hereof.  The execution, delivery and performance of this Warrant will not result in any such violation or default, or be in conflict with or result in a violation or breach
          of, with or without the passage of time or the giving of notice or both, the Company’s Certificate of Incorporation, any judgment, order or decree of any court or arbitrator to which the Company is a party or is subject, any material agreement or
          instrument by which it is bound or to which its properties or assets are subject or a violation of any statute, law, regulation or order, or an event which results in the creation of any lien, charge or encumbrance upon any asset of the Company.

       

        

      
        5

        
          

      

      9.            Representations and Warranties by the Holder.  The Holder represents and warrants to the Company as follows:

       

        

      (a)         This
          Warrant and the Shares issuable upon exercise thereof are being acquired for its own account, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the
          Securities Act of 1933, as amended (the “Act”).  Upon exercise of this Warrant, the Holder shall, if so requested by the Company, confirm in writing, in a
          form satisfactory to the Company, that the securities issuable upon exercise of this Warrant are being acquired for investment and not with a view toward distribution or resale.

       

        

      (b)          The
          Holder understands that the Warrant and the Shares have not been registered under the Act by reason of their issuance in a transaction exempt from the registration and prospectus delivery requirements of the Act pursuant to Regulation D thereof,
          and that they must be held by the Holder indefinitely, and that the Holder must therefore bear the economic risk of such investment indefinitely, unless a subsequent disposition thereof is registered under the Act or is exempted from such
          registration.

       

        

      (c)         The
          Holder has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the purchase of this Warrant and the Shares purchasable pursuant to the terms of this Warrant and of protecting
          its interests in connection therewith.

       

        

      (d)          The
          Holder is able to bear the economic risk of the purchase of the Shares pursuant to the terms of this Warrant.

       

        

      (e)          The
          Holder is an “accredited investor” as such term is defined in Rule 501 of Regulation D promulgated under the Act.

       

        

      10.         Restrictive Legend.  Until such time as the Shares issued upon the conversion of this Warrant have been sold pursuant to an effective registration statement
          under the Act, or Shares issued upon the exercise of this Warrant are eligible for resale pursuant to Rule 144 promulgated under the Act without any restriction as to the number of securities as of a particular date that can then be immediately
          sold, each certificate issued with respect to Shares issued upon the exercise of this Warrant will bear a legend in substantially the following form:

       

        

      THE SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
          “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT
          TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION,
          UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR SUCH OTHER APPLICABLE LAWS.

       

        

      
        6

        
          

      

      In connection with a transfer of Shares issued upon the exercise of this Warrant in reliance on Rule 144 promulgated under the Act, the
          Holder or its broker shall deliver to the Company a broker representation letter providing to the Company any information the Company reasonably deems necessary to determine that such sale is made in compliance with Rule 144 promulgated under the
          Act, including, as may be appropriate, a certification that such Holder is not an affiliate of the Company (as defined in Rule 144 promulgated under the Act) and a certification as to the length of time the applicable equity interests have been
          held. Upon receipt of such representation letter, the Company shall promptly remove the restrictive legend on Shares, and the Company shall bear all costs associated with the removal of such legend from Shares.  At such time as Shares issued upon
          the conversion of this Warrant (A) have been sold pursuant to an effective registration statement under the Act, (B) have been held by the Holder for more than one year where the Holder is not, and has not been in the preceding three months, an
          affiliate of the Company (as defined in Rule 144 promulgated under the Securities Act), or (C) no longer require such restrictive legend on Shares, as set forth in an opinion of counsel reasonably satisfactory to the Company, if the restrictive
          legend is still in place, the Company agrees, upon request of such Holder, to take all steps necessary to promptly effect the removal of such legend, and the Company shall bear all costs associated with such removal of such legend.  The Company
          shall cooperate with the Holder to effect the removal of such legend from Shares at any time such legend is no longer appropriate.

       

        

      11.         Limitation on Transferability of this Warrant.  THIS WARRANT IS NOT TRANSFERRABLE WITHOUT THE CONSENT OF THE COMPANY, EXCEPT THAT, WITHOUT THE CONSENT OF THE
          COMPANY, THE INVESTOR SHALL BE ENTITLED TO TRANSFER THIS WARRANT TO AN AFFILIATE OF THE INVESTOR.  FOR PURPOSES OF THIS SECTION 11, THE TERM “AFFILIATE” HAS THE MEANING ASCRIBED TO SUCH TERM IN THE SERIES B CERTIFICATE OF DESIGNATIONS.

       

        

      12.         Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
          of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form or the provision of reasonable security by the Holder to the Company and, in the case of
          mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 6(f))
          representing the right to purchase the Shares then underlying this Warrant.

       

        

      13.          Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company together with
          all applicable transfer taxes, for a new Warrant or Warrants (in accordance with Section 14) representing in the aggregate the right to purchase the
          number of Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Shares as is designated by the Holder at the time of such surrender; provided, however, that the Company shall not be required to issue Warrants for fractional shares of
          Common Stock hereunder.

       

        

      
        7

        
          

      

      14.          Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant shall (i) be of like
          tenor with this Warrant, (ii) represent, as indicated on the face of such new Warrant, the right to purchase the Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 12, the Shares designated by the Holder which, when added to the number of Shares underlying the other new Warrants issued in connection with such issuance, does not exceed
          the number of Shares then underlying this Warrant), (iii) have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date and (iv) have the same rights and conditions as this Warrant.

       

        

      15.          Rights of Stockholders.  Except as expressly provided herein, no Holder of this Warrant shall be entitled, by virtue of being a Holder, to vote or receive
          dividends or be deemed a Holder of Shares or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon a Holder of this Warrant,
          as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether
          upon any recapitalization, issuance of stock, reclassification of stock, change of par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until the
          Warrant shall have been exercised and the Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein.

       

        

      16.          Notices.  All notices and other communications required or permitted hereunder shall be in writing, shall be effective when given, and shall in any event be
          deemed to be given upon receipt or, if earlier, (a) five (5) days after deposit with the U.S.  Postal Service or other applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, or (c)
          one business day after the business day of deposit with Federal Express or similar overnight courier, freight prepaid, and shall be addressed (i) if to the Holder, at the Holder’s address as set forth on the Schedule of Holders attached hereto as
          Exhibit B, and (ii) if to the Company, at the address of its principal corporate offices (attention: Krysta DeLima), with a copy to Sean Jones, K&L
          Gates LLP, 214 North Tryon Street, 47th Floor, Charlotte, North Carolina 28202 (which copy shall not be deemed to constitute notice to the Company) or at such other address as a party may designate by ten days advance written notice to
          the other party pursuant to the provisions above.

       

        

      17.          Governing Law.  This Warrant and all actions arising out of or in connection with this Warrant shall be governed by and construed in accordance with the laws
          of the State of Delaware, without regard to the conflicts of law provisions of the State of Delaware.

       

        

      
        8

        
          

      

      18.         Rights and Obligations Survive Exercise of Warrant.  Unless otherwise provided herein, the rights and obligations of the Company, of the holder of this Warrant
          and of the holder of the Shares issued upon exercise of this Warrant, shall survive the exercise of this Warrant.

       

        

      19.          Counterparts. This Warrant may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed
          to be an original, and all such counterparts shall together constitute but one and the same instrument.

       

        

      20.          Amendment.  No amendment, waiver, consent, modification or termination of any provision of this Agreement shall be effective unless signed in writing by each
          of the parties hereto and each other Holder, if any, to which this Warrant may have been validly transferred pursuant to the terms set forth herein.

       

        

      21.         Severability. This Warrant shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or
          enforceability of this Warrant or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Warrant a provision as
          similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

      

      

      [Signature Page Follows]

       

        

      
        9

        
          

      

      	 	
              NEXTDECADE CORPORATION

            	 
	 	 	 	 
	 	
              By:

            	

            	 
	 	 	 	 
	 	 	
              Matthew Schatzman

            	 
	 	 	
              President and Chief Executive Officer

            	 

      

      

      
        [Signature Page to Warrant Agreement]

        

        

      

      
        
          

      

      EXHIBIT A

      

      

      NOTICE OF EXERCISE

       

        

      	
              To:

            	
              NextDecade Corporation

            
	 	
              1000 Louisiana Street, Suite 3900

            
	 	
              Houston, Texas 77002

            
	 	
              Attention:  [●]

            

      

      

      1.           The
          undersigned hereby elects to purchase shares of Common Stock of NextDecade Corporation (the “Shares”) pursuant to the terms of the attached Warrant.

       

        

      2.           The
          undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders herewith payment in full for the purchase price of the shares being purchased, together with all applicable transfer taxes, if any.

       

        

      3.           Please
          issue a certificate or certificates representing said Shares in the name of the undersigned or in such other name as is specified below:

      

        EXHIBIT A-1

         

          

      

      
        
          

      

      EXHIBIT B

       

            

      SCHEDULE OF HOLDERS

       

        

      

      

      York Tactical Energy Fund, L.P.

      c/o York Capital Management, L.P.

      767 Fifth Avenue

      New York, NY 10153

      Attention: Brian Traficante

      btraficante@yorkcapital.com

      

      

      with copies to (which shall not be deemed to constitute notice to the Holder) to:

      

      

      Weil, Gotshal & Manges LLP

      767 Fifth Avenue, 17th Floor

      New York, NY 10153

      Attention: Jaclyn L. Cohen

      Jackie.Cohen@weil.com

       

        

      
        EXHIBIT B-1

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