Document:

EX-10.3:

 

EXHIBIT 10.3

AMENDED AND RESTATED

SECURITYHOLDERS AGREEMENT

     This AMENDED AND RESTATED SECURITYHOLDERS AGREEMENT (this “Agreement”) is made as of
November 24, 2004 by and among Coinmach Holdings, LLC, a Delaware limited liability company (the
“Company”), Coinmach Service Corp., a Delaware corporation (“CSC”), each of the
executives listed on the Schedule of Executives attached hereto (the “Executives”),
GTCR-CLC, LLC, a Delaware limited liability company (“GTCR-CLC”), Jefferies & Company, Inc.
(“Jefferies”) and each of the investors listed on the Schedule of Investors attached hereto
(the “Investors”). The Executives, GTCR-CLC, Jefferies and the Investors are collectively
referred to herein as the “Securityholders” and individually as a “Securityholder.”
Capitalized terms used but not otherwise defined herein are defined in Section 9 hereof.

     WHEREAS, the parties hereto are parties to that certain Securityholders Agreement, dated as of
March 6, 2003 (the “Existing Agreement”);

     WHEREAS, on or about the date hereof, the Company will exchange all of the shares of capital
stock of Coinmach Laundry Corporation and Appliance Warehouse of America, Inc. held by it for
shares of Class B Common Stock, par value $0.01 per share (the “Class B Stock”), of CSC;

     WHEREAS, in connection with the exchange described in the foregoing recital, the Company and
the Securityholders parties hereto desire to amend and restate the Existing Agreement in its
entirety in the manner set forth herein in order to (i) contemplate the application of certain
provisions thereof to any Class B Stock or other securities of CSC that the Securityholders may
acquire from the Company, (ii) make CSC a party hereto and (iii) remove certain of the voting
agreements contained therein.

     NOW, THEREFORE, the parties hereto hereby agree to amend and restate the Existing Agreement in
its entirety as follows:

     1. Board of Managers.

          (a) From the date hereof and until the provisions of this Section 1 cease to be
effective, each Securityholder shall vote all of his or its Securityholder Units which are voting
Units and any other voting securities of the Company over which such Securityholder has voting
control and shall take all other necessary or desirable actions within his or its control (whether
in its capacity as a securityholder, manager, member of a Board committee or officer of the Company
or otherwise, and including, without limitation, attendance at meetings in person or by proxy for
purposes of obtaining a quorum and execution of written consents in lieu of meetings), and the
Company shall take all necessary or desirable actions within its control (including, without
limitation, calling special Board and securityholder meetings), so that:

 

 

               (i) the authorized number of managers on the Board shall be the number
necessary to allow for the designations provided for pursuant to Section
1(a)(ii) below or such higher number as determined by GTCR-CLC from time to
time;

               (ii) the following individuals shall be elected to the Board:

                    (1) three (3) individuals designated by GTCR-CLC, which individuals
initially shall be David A. Donnini, Vincent J. Hemmer and Bruce V. Rauner (the
“GTCR Managers”);

                    (2) the Chief Executive Officer of the Company (the “Management
Manager”);

                    (3) one (1) or more individuals designated by GTCR-CLC (the “Outside
Managers”) who are not members of CSC’s or the Company’s management or
employees or officers of CSC, the Company or their respective Subsidiaries and
who are reasonably acceptable to the Executives, one of which initially shall be
James N. Chapman; provided that if after 60 days GTCR-CLC and the Executives are
unable to agree upon the designation of any Outside Manager(s), then GTCR-CLC
shall designate such Outside Manager(s) in its sole discretion; provided
further that the rights of GTCR-CLC under this Section 1 shall
terminate at such time as GTCR-CLC and its Permitted Transferees hold in the
aggregate less than 50% of the Securityholder Units held by GTCR-CLC on the date
hereof; and

                    (4) if requested by GIC, one individual (the “GIC Manager”)
designated by GIC; provided that the rights of GIC under this
Section 1 shall terminate at such time as GIC and its Permitted
Transferees hold in the aggregate less than 50% of the Securityholder Units held
by GIC on the date hereof;

               (iii) any committees of the Board shall be created only upon, and may be
disbanded upon, the approval of not less than three members of the Board, and each
such committee (if any) shall include at least one GTCR Manager;

               (iv) the removal from the Board (with or without cause) of any GTCR Manager or
Outside Manager shall be at GTCR-CLC’s written request, but only upon such written
request and under no other circumstances;

               (v) if the Management Manager ceases to be the Chief Executive Officer of the
Company, he shall be removed as a Manager of the Company promptly after his
employment in such office ceases; and

               (vi) in the event that any GTCR Manager, Management Manager, GIC Manager or
Outside Manager ceases to serve as a member of the Board during his/her term of
office, the resulting vacancy shall be filled in the manner provided in
subparagraphs (ii)(1) through (4) above, as the case may be.

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          (b) The Company shall pay the reasonable out-of-pocket expenses incurred by each Manager in
connection with attending the meetings of the Board and any committees thereof.

          (c) The provisions of this Section 1 shall terminate automatically and be of no
further force and effect upon the first to occur of (i) a Qualified Public Offering or (ii) a Sale
of the Company.

          (d) If any party fails to designate a representative to fill a position pursuant to the terms
of this Section 1, the election of an individual to such position shall be accomplished in
accordance with the Company’s operating agreement and applicable law.

          (e) Each of Mitchell Blatt, Robert M. Doyle, a representative appointed by the TCW/Crescent
Purchasers and, for so long as no GIC Manager serves on the Board, a representative appointed by
GIC (each of Messrs. Blatt and Doyle and each such representative being an “Observer” and
together the “Observers”) shall be entitled to certain rights set forth herein. The
Company shall provide to each Observer notice of each meeting of the Board at the same time and in
the same manner as notice is given to the Managers, and the Company shall permit each Observer to
attend, as an observer, without voting rights, all meetings of the Board. Each Observer shall be
entitled to receive all written materials and other information given to Managers in connection
with such meetings at the same time such materials and information are given to the Managers. If
the Company proposes to take any action by written consent in lieu of a meeting of the Board, the
Company shall give notice to each Observer at the same time and in the same manner as notice is
given to the Managers. The Company shall pay all reasonable out-of-pocket expenses of each
Observer to attend meetings of the Board. Notwithstanding anything herein to the contrary, if
counsel to the Company concludes in its reasonable discretion that the rights granted to the
Observers in this Section 1(e) will, or could, in certain circumstances, result in a
violation or waiver of the Company’s attorney-client privilege, such rights may be suspended in
such circumstances so as to protect the Company’s attorney-client privilege; provided that
such suspension shall be applied on an individual issue basis and only to the extent reasonably
required to preserve such attorney-client privilege.

     2. Representations and Warranties. Each Securityholder represents and warrants that
(i) such Securityholder is the record owner of the number of Securityholder Units set forth
opposite his or its name on the Schedule of Securityholders attached hereto, (ii) this Agreement
has been duly authorized, executed and delivered by such Securityholder and constitutes the valid
and binding obligation of such Securityholder, enforceable in accordance with its terms, (iii) all
Securityholder Units have been acquired by such Securityholder for investment and not with a view
to the sale or distribution thereof within the meaning of the Securities Act, and (iv) such
Securityholder has not granted and is not a party to any proxy, voting trust or other agreement
which is inconsistent with, conflicts with or violates any provision of this Agreement. No holder
of Securityholder Units shall grant any proxy or become party to any voting trust or other
agreement which is inconsistent with, conflicts with or violates any provision of this Agreement.

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     3. Restrictions on Transfer of Covered Securities. No Securityholder shall sell,
transfer, assign, pledge or otherwise dispose of (a “Transfer”) any interest in his or its
Covered Securities, except pursuant to the provisions of this Section 3.

          (a) Participation Rights. At least 30 days prior to any Transfer of any Covered
Securities by any Securityholder which, together with its Permitted Transferees, holds at least the
Threshold Amount of a class of Covered Securities as of immediately prior to such Transfer (a
“Significant Securityholder”) (other than (i) pursuant to a Public Sale or (ii) a Transfer
pursuant to Section 3(c) or Section 5 hereof), the transferring Significant
Securityholder will deliver a written notice (the “Sale Notice”) to the Company and the
other Securityholders (the “Other Securityholders”), specifying in reasonable detail the
identity of the prospective transferee(s), the Covered Securities to be sold and the terms and
conditions of the Transfer. In the event that the Other Securityholders hold (x) the class of
Covered Securities which are to be transferred, (y) securities convertible, exchangeable or
exercisable for the class of Covered Securities which are to be transferred, or (z) securities into
which the class of Covered Securities which are to be transferred are convertible, exchangeable or
exercisable, they may elect to participate in the contemplated Transfer by delivering written
notice to the transferring Significant Securityholder within 15 days after delivery of the Sale
Notice. If any Other Securityholders have elected to participate in such Transfer
(“Participating Securityholders”), the transferring Significant Securityholder and each
Participating Securityholder will be entitled to sell in the contemplated Transfer, at the same
price and on the same terms, a number of Covered Securities of such class (other than Unvested
Units (as such term is defined in the Executives’ Equity Participation Agreements), or securities
convertible, exchangeable or exercisable for Covered Securities of such class (or securities into
which such class of Covered Securities are convertible, exchangeable or exercisable), equal to the
product of (i) the quotient determined by dividing the number of Covered Securities of such class
(other than Unvested Units) and securities convertible, exchangeable or exercisable for Covered
Securities of such class (or securities into which such class of Covered Securities are
convertible, exchangeable or exercisable) held by such Person by the aggregate number of Covered
Securities of such class (other than Unvested Units) and securities convertible, exchangeable or
exercisable for Covered Securities of such class (or securities into which such class of Covered
Securities are convertible, exchangeable or exercisable) owned by the transferring Significant
Securityholder and all Participating Securityholders and (ii) the number of Covered Securities of
such class and securities convertible, exchangeable or exercisable for Covered Securities of such
class (or securities into which such class of Covered Securities are convertible, exchangeable or
exercisable) to be sold in the contemplated Transfer. Subject to the remaining provisions of this
Section 3(a), the transferring Significant Securityholder shall use its best efforts to
obtain the agreement of the prospective transferee(s) to the participation of the Participating
Securityholders in any contemplated Transfer, and the transferring Significant Securityholder shall
not Transfer any of its Covered Securities of such class to the prospective transferee(s) unless
(1) the prospective transferee(s) agrees to allow the participation of the Participating
Securityholders or (2) the transferring Significant Securityholder agrees to purchase the number of
such class of Covered Securities from any Participating Securityholders which the Participating
Securityholders would have been entitled to sell pursuant to this Section 3(a). If any
securities convertible, exchangeable or exercisable for Covered Securities of such class (or
securities into which such class of Covered Securities are convertible, exchangeable or
exercisable) are included in any Transfer under this Section 3(a), the purchase price for
such

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securities shall be equal to the full purchase price determined hereunder for the Covered
Securities covered by the portion of such securities to be transferred, adjusted by the aggregate
exercise price for such units. Notwithstanding the foregoing, in the event that a prospective
transferee of CSC Securities, other than shares of Class A Stock, is not willing to agree to the
participation of a Participating Securityholder in any such Transfer for the reason that such
Participating Securityholder proposes to transfer Class B Stock and, pursuant to the terms of the
CSC Charter, the proposed Transfer would result in holders of the Class B Stock losing any voting
rights to which holders of the Class B Stock are then entitled, then (i) the transferring
Significant Securityholder shall have no further obligation either to endeavor to include such
Class B Stock in the proposed Transfer or to purchase such Class B Stock from such Participating
Security holder, (iii) the transferring Significant Securityholder shall not be precluded from
transferring any of its Covered Securities by reason of the exclusion of such Class B Stock from
the proposed Transfer, and (iii) such shares of Class B Stock shall be disregarded for purposes of
determining the number of Covered Securities that such Participating Securityholder may sell in the
contemplated Transfer. Each Securityholder transferring Covered Securities pursuant to this
Section 3(a) shall pay his or its pro rata share (based on the number of Covered Securities
to be sold) of the expenses incurred by the Securityholders in connection with such transfer and
shall be obligated to join on a pro rata basis (based on the number of Covered Securities to be
sold) in any indemnification or other obligations that the transferring Significant Securityholder
agrees to provide in connection with such transfer (other than any such obligations that relate
specifically to a particular Securityholder, such as indemnification with respect to
representations and warranties given by a Securityholder regarding such Securityholder’s title to,
ownership of Covered Securities and, for such Securityholders that are not individuals, authority
to enter into such agreement); provided, however, that no Investor shall be required to make a
representation or warranty that any other Investor is not required to make.

          (b) First Refusal Rights. Except for a Transfer of Securityholder Units by an
Executive (which Transfers are governed by the Senior Management Agreements and the Management
Contribution Agreements) or any Transfer of Class B Preferred Units, at least thirty (30) days
prior to any Transfer of Covered Securities by any Securityholder which, together with its
Permitted Transferees, holds less than the Threshold Amount of a class of Covered Securities as of
immediately prior to such Transfer (other than (i) pursuant to a Public Sale, (ii) a Transfer to
the Company, (iii) a Transfer of Securityholder Units pursuant to a Senior Management Agreement, or
(iv) a Transfer pursuant to Section 3(a), Section 3(c) or Section 5
hereof), the Securityholder making such Transfer (the “Minority Transferor”) shall deliver
a written notice (the “Transfer Notice”) to the Company and each Significant Securityholder
(which shall, for purposes of this subsection (b), include GTCR-CLC and each Investor other
than any such Person that is the Minority Transferor hereunder) that it desires to Transfer Covered
Securities of such class, specifying in reasonable detail the identity of the prospective
transferee(s), the number of Covered Securities to be transferred and the terms and conditions of
the Transfer, including the proposed price per Covered Security of such class (which price shall be
payable solely in cash at the closing of the transaction or in installments over time). The
Company may elect to purchase all or any portion of the Covered Securities to be transferred, upon
the same terms and conditions as those set forth in the Transfer Notice, by delivering a written
notice of such election to the Minority Transferor and each Significant Securityholder within 15
days after the Transfer Notice has been given to the Company. If for any reason the Company does
not elect to purchase all of the Covered Securities to be transferred, the Significant
Securityholder(s)

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shall be entitled to purchase the Covered Securities which the Company has not elected to
purchase (the “Available Securities”), upon the same terms and conditions as those set
forth in the Transfer Notice, by giving written notice of such election to the Company and to the
Minority Transferor within 30 days after the Transfer Notice has been given to the Company and each
Significant Securityholder. If more than one Significant Securityholder elects to purchase the
Available Securities, the Available Securities will be allocated among such electing
Securityholders (i) with respect to Available Securities that are Securityholder Units, pro rata
according to the number of Securityholder Units of the applicable class owned by each such electing
Securityholder on a Fully Diluted Basis or (ii) with respect to Available Securities that are CSC
Securities, pro rata according to the number of Securityholder Units owned by each such
Securityholder on a Fully Diluted Basis together with the number of Securityholder Units formerly
held by each such Securityholder that were redeemed, surrendered or exchanged for CSC Securities
the applicable Securityholder then owns. The closing of the purchase of any Covered Securities
pursuant to this Section 3(b) shall take place within sixty (60) days after the date on
which the parties to such purchase have been finally determined pursuant to this Section
3(b). Notwithstanding the foregoing, if the Company, and the Significant Securityholder(s) do
not elect to purchase, collectively, all of the Covered Securities of a class specified in the
Transfer Notice, then the Minority Transferor may transfer all of the Covered Securities of such
class specified in the Transfer Notice to the transferee(s) identified in the Transfer Notice for
(i) a price no less than the price specified in the Transfer Notice and (ii) other terms no more
favorable to the transferee(s) thereof than specified in the Transfer Notice, during the 90-day
period immediately following the date on which the Transfer Notice has been given to the Company
and the Significant Securityholder(s). Any Covered Securities not transferred within such 90-day
period will be subject to the provisions of this Section 3(b) upon subsequent transfer.

          (c) Permitted Transfers. The restrictions contained in this Section 3 shall
not apply with respect to any Transfer of Covered Securities, other than Class B Stock, by any
Securityholder (i) in the case of a Securityholder who is an individual, pursuant to applicable
laws of descent and distribution or among such individual’s Family Group, (ii) in the case of a
Securityholder which is an entity, among such entity’s Affiliates or a Transfer by such
Securityholder as a pledge to a trustee for the benefit of secured noteholders pursuant to
documents related to the financing of such Securityholder, (iii) as a pledge of Securityholder
Units owned by any of the Executives to the Company or its Subsidiaries in connection with any
loan(s) to purchase such units and (iv) to the Company pursuant to the Redemption Agreement;
provided that the restrictions contained in this Section 3 shall continue to be
applicable to the Covered Securities after any of the foregoing Transfers, and provided
further that the transferees of such Covered Securities shall have agreed in writing to be bound by
the provisions of this Agreement which affect the Covered Securities so transferred. The
restrictions contained in this Section 3 shall not apply with respect to (i) any Transfer
of Class B Stock by any Securityholder to any Class B Affiliate or (ii) any Transfer of Class B
Stock that constitutes a bona fide pledge of such Class B Stock as collateral security for
indebtedness due to the pledgee, provided, however, that such shares shall not be
transferred to, registered in the name of or voted by the pledgee. All transferees permitted under
this Section 3(c) are collectively referred to herein as “Permitted Transferees.”
Each Permitted Transferee shall be deemed a Securityholder for purposes of this Agreement.

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          (d) Other Agreements. Notwithstanding anything herein to the contrary, the rights of
any Securityholder to Transfer any Covered Securities pursuant to the terms of this Agreement shall
be subject to all such other limitations and restrictions, if any, to which such Securityholder or
such Covered Securities are subject, including, by way of example but not in limitation of the
foregoing, the Equity Participation Agreements to which certain of the Securityholders are party.

          (e) Termination of Restrictions. The restrictions set forth in this Section 3
shall continue with respect to each Covered Security until the earlier of (i) the transfer of such
Covered Security in a Public Sale, or (ii) the consummation of a Sale of the Company or a Qualified
Public Offering.

     4. Pre-Emptive Rights. Except for issuances of equity securities of the Company

               (i) pursuant to a public offering registered under the Securities Act,

               (ii) to employees or Outside Managers of the Company or its Subsidiaries,

               (iii) as payment of all or a portion of the purchase price of any business or
assets thereof acquired by the Company or any of its Subsidiaries,

               (iv) to landlords, lessors or lenders in connection with any bona fide lease
arrangement or financing,

               (v) to consultants, financial advisors or vendors as payment for services or
products,

               (vi) to a strategic partner upon entering into a long-term business
relationship with such Person,

               (vii) upon the exercise of any option or other right described in any of
clauses (i) through (vii) above, or

               (viii) pursuant to the Redemption Agreement,

          if the Company authorizes the issuance or sale of any Common Units or any securities
convertible, exchangeable or exercisable for Common Units, the Company shall offer to sell to each
Securityholder that is a holder of Common Units, at the same price and on the same terms, a portion
of such units or securities equal to the quotient determined by dividing (1) the number of Common
Units (other than Unvested Units) held by such Securityholder by (ii) the total number of Common
Units (other than Unvested Units) outstanding, in each case on a Fully Diluted Basis (other than
Unvested Units). Each holder of Common Units shall be entitled to purchase such units or
securities at the most favorable price and on the most favorable terms as such units or securities
are to be offered to any other Persons; provided that if all Persons entitled to purchase
or receive such units or securities are required to also purchase other securities of the Company,
the Securityholders exercising their rights pursuant to this Section 4(a) shall also be
required to purchase the same strip of securities (on the same terms and

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conditions) that such other Persons are required to purchase. The purchase price for all
units and securities to be offered to the holders of Securityholder Units shall be payable in cash
or, to the extent otherwise required hereunder, notes issued by such holders.

          (b) In order to exercise its purchase rights hereunder, a holder of Securityholder Units must
within fifteen (15) days after receipt of written notice from the Company describing in reasonable
detail the units or securities being offered, the purchase price thereof, the payment terms and
such Securityholder’s percentage allotment, deliver a written notice to the Company describing its
election hereunder.

          (c) Upon the expiration of the offering period described above, the Company shall be entitled
to sell such units or securities which the holders of Securityholder Units have not elected to
purchase during the ninety (90) days following such expiration on terms and conditions no more
favorable to the purchasers thereof than those offered to such holders. Any such securities
offered or sold by the Company after such 90-day period must be reoffered to the holders of
Securityholder Units pursuant to the terms of this Section 4.

          (d) The rights set forth in this Section 4 shall continue with respect to each
Securityholder Unit until the earlier of (i) the transfer of such Securityholder Unit in a Public
Sale, or (ii) the consummation of a Sale of the Company or a Qualified Public Offering.

     5. Sale of the Company.

          (a) If the Board and the holders of a majority of the Common Units then outstanding approve a
sale of all or substantially all of the Company’s assets determined on a consolidated basis or a
sale of all or substantially all of the Company’s outstanding securities (whether by merger,
recapitalization, consolidation, reorganization, combination or otherwise) to any other Person that
is not an Affiliate of a Securityholder in a bona fide, arms-length transaction (collectively, a
“Sale of the Company”), each holder of Securityholder Units shall vote for, consent to, and
raise no objections against, such Sale of the Company. If the Sale of the Company is structured as
(i) a merger or consolidation, each holder of Securityholder Units shall waive any dissenters
rights, appraisal rights or similar rights in connection with such merger or consolidation, or (ii)
a sale of securities, each holder of Securityholder Units shall agree to sell all of its
Securityholder Units (other than Class B Preferred Units) and rights to acquire Securityholder
Units (other than any rights with respect to Class B Preferred Units) on the terms and conditions
approved by the Board and the holders of a majority of the Common Units then outstanding. Each
holder of Securityholder Units shall take all necessary or desirable actions in connection with the
consummation of the Sale of the Company as requested by the Company.

          (b) The obligations of the holders of Securityholder Units with respect to the Sale of the
Company are subject to the satisfaction of the following conditions: (i) upon the consummation of
the Sale of the Company, each holder of a class of Securityholder Units shall receive the same form
of consideration; (ii) if any holders of a class of Securityholder Units are given an option as to
the form and amount of consideration to be received, each holder of such class of Securityholder
Units shall be given the same option; and (iii) each holder of then currently exercisable rights to
acquire units of a class of Securityholder Units shall be given an opportunity to either (A)
exercise such rights prior to the consummation of the Sale of the

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Company and participate in such sale as holders of such class of Securityholder Units or (B)
upon the consummation of the Sale of the Company, receive in exchange for such rights consideration
equal to the amount determined by multiplying (1) the same amount of consideration per unit
received by holders of such class of Securityholder Units in connection with the Sale of the
Company less the exercise price per unit of such rights to acquire such class of Securityholder
Units by (2) the number of units of such class of Securityholder Units represented by such rights.

          (c) The provisions of this Section 5 shall terminate upon the consummation of a
Qualified Public Offering.

     6. Initial Public Offering. In the event that the Board and the holders of a majority
of the Common Units then outstanding approve an Initial Public Offering as contemplated by Section
15.7 of the LLC Agreement, the holders of Securityholder Units shall take all necessary or
desirable actions in connection with the consummation of the Initial Public Offering. In the event
that such Initial Public Offering is an underwritten offering and the managing underwriters advise
the Company in writing that in their opinion the Company’s capital structure would adversely affect
the marketability of the offering:

               (i) each Securityholder who is a holder of units of the Company’s Class A
Preferred Units shall consent to and vote for a recapitalization, reorganization
and/or exchange of the Company’s Class A Preferred Units into securities or other
consideration that the managing underwriters, the Board and the holders of at least
a majority of the units of Class A Preferred Units then outstanding find acceptable
and shall take all necessary or desirable actions in connection with the
consummation of the recapitalization, reorganization and/or exchange;

               (ii) each Securityholder who is a holder of units of the Company’s Class B
Preferred Units shall consent to and vote for a recapitalization, reorganization
and/or exchange of the Company’s Class B Preferred Units into securities that the
managing underwriters, the Board and the holders of at least 70% of the units of
Class B Preferred Units then outstanding find acceptable and shall take all
necessary or desirable actions in connection with the consummation of the
recapitalization, reorganization and/or exchange; provided that each holder of Class
B Preferred Units shall receive the same type of security with the same value per
unit;

               (iii) each Securityholder who is a holder of units of the Company’s Class C
Preferred Units shall consent to and vote for a recapitalization, reorganization
and/or exchange of the Company’s Class C Preferred Units into securities that the
managing underwriters, the Board and the holders of a majority of the units of Class
C Preferred Units then outstanding find acceptable and shall take all necessary or
desirable actions in connection with the consummation of the recapitalization,
reorganization and/or exchange; provided that each holder of Class C Preferred Units
shall receive the same type of security with the same value per unit; and

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               (iv) each Securityholder who is a holder of units of the Company’s Common Units
shall consent to and vote for a recapitalization, reorganization and/or exchange of
the Company’s Common Units into securities that the managing underwriters, the Board
and the holders of a majority of the units of Common Units then outstanding find
acceptable and shall take all necessary or desirable actions in connection with the
consummation of the recapitalization, reorganization and/or exchange; provided that
each holder of Common Units shall receive the same type of security with the same
value per unit.

     7. Legend. Each certificate issued after the date hereof evidencing Covered
Securities and each certificate issued in exchange for or upon the transfer of any Covered
Securities (if such units remain Covered Securities after such transfer) shall be stamped or
otherwise imprinted with a legend in substantially the following form:

	   	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN AMENDED AND
RESTATED SECURITYHOLDERS AGREEMENT DATED AS OF NOVEMBER 24, 2004, AMONG THE ISSUER
OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S
SECURITYHOLDERS, AS AMENDED AND MODIFIED FROM TIME TO TIME. A COPY OF SUCH
SECURITYHOLDERS AGREEMENT SHALL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE
HOLDER HEREOF UPON WRITTEN REQUEST.
	 
	   	THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED FROM TIME TO TIME (THE “ACT”), AND MAY
NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER.”

          The Company shall imprint, or in the case of CSC Securities, CSC shall cause its transfer
agent to imprint, such legend on all certificates evidencing Covered Securities outstanding from
time to time. The legend set forth above shall be removed from the certificates evidencing any
securities which cease to be Covered Securities, transferred pursuant to a Public Sale or upon
termination of the Agreement.

     8. Conditions to Transfer.

          (a) Prior to transferring any Covered Securities (other than in a Public Sale, a Sale of the
Company or a Transfer to the Company or to a Securityholder) to any Person, the transferring
holders of Covered Securities shall cause the prospective transferee to execute and deliver to the
Company, for the benefit of the Company and the other Securityholders, a counterpart of this
Agreement pursuant to which such transferee agrees to be bound as a “Securityholder” by the
provisions of this Agreement.

          (b) Prior to the consummation of any Transfer of Covered Securities, the transferring
Securityholder shall obtain and deliver to the Company, in the case of a Transfer of

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Securityholder Units, or CSC, in the case of a Transfer of CSC Securities, a Certificate of
Transfer substantially in the form attached hereto as Exhibit A from each transferee of the
Transferred Covered Securities.

     9. Definitions.

     “Affiliate” of a Person means any direct or indirect general or limited partner or
member of such Person, or any employee or owner thereof, or any other person, entity or investment
fund controlling, controlled by or under common control with such Person, and will include, without
limitation, its owners and employees. An Affiliate of TCW/Crescent Purchasers shall be deemed to
include any TCW/Crescent Purchaser and any of their Affiliates.

	   	“Agreement” has the meaning set forth in the preamble hereto.
	 
	   	“Available Units” has the meaning set forth in Section 3(b) hereto.
	 
	   	“Board” has the meaning set forth in the eleventh recital paragraph hereto.
	 
	   	“Class A Stock” means CSC’s Class A Common Stock, par value $0.01 per share.
	 
	   	“Class B Affiliate” has the meaning set forth in the CSC Charter.
	 
	   	“Class B Stock” has the meaning set forth in the recitals.
	 
	   	“Common Units” means the Company’s Common Units.
	 
	   	“Company” has the meaning set forth in the preamble hereto.
	 
	   	“Covered Securities” means all Securityholder Units and CSC Securities.
	 
	   	“CSC” has the meaning set forth in the preamble.

     “CSC Charter” means CSC’s Amended and Restated Certificate of Incorporation, as in
effect on the date hereof and as the same may be amended, amended and restated, or otherwise
modified from time to time.

     “CSC Securities” means any of the following securities to the extent they are issued
by the Company to Securityholders by way a distribution, redemption of or otherwise in respect of
their Securityholder Units: (i) Class B Stock; or (ii) any securities or rights issued or issuable
directly or indirectly with respect to the securities and referred to in clauses (i) and (ii) above
by way of a stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. As to any particular CSC
Securities, such securities shall cease to be CSC Securities when they have been disposed of in a
Public Sale or repurchased by the Company or any Subsidiary.

     “Equity Participation Agreements” means, collectively, those Equity Participation
Agreements entered into between the Company, and each of the employees of Coinmach Corporation that
have acquired Equity Securities of the Company, and any other agreements for

11

 

the sale of Equity Securities between the Company and any employees of the LLC or its
Subsidiaries which are designated as “Equity Participation Agreements” by the Board.

     “Executives” has the meaning set forth in the preamble hereto.

     “Family Group” means with respect to any Person, their spouse and descendants (whether
natural or adopted), any trust solely for the benefit of such Person and/or their spouse and/or
descendants, and any retirement plan for the Person.

     “Fully Diluted Basis” means, without duplication, (i) all Common Units outstanding at
the time of determination plus (ii) all Common Units issuable upon conversion of any convertible
securities or the exercise of any option, warrant or similar right, whether or not such conversion,
right or option, warrant or similar right is then exercisable.

     “GIC” means Filbert Investment Pte Ltd.

     “GIC Manager” has the meaning set forth in Section 1(a)(ii)(4) hereto.

     “GTCR-CLC” has the meaning set forth in the preamble hereto.

     “GTCR Contribution Agreement” has the meaning set forth in the seventh recital
paragraph hereto.

     “GTCR Managers” has the meaning set forth in Section 1(a)(ii)(1) hereto.

     “Initial Public Offering” means the first sale after the date hereof in an
underwritten public offering registered under the Securities Act (other than on Form S-8 or a
similar form) of equity securities of the Company (or any successor thereto).

     “Investors” has the meaning set forth in the preamble hereto.

     “LLC Agreement” means that certain Limited Liability Company Agreement of the Company,
dated as of March 6, 2003, as amended, amended and restated or otherwise modified from time to
time.

     “Management Contribution Agreements” means those certain Management Contribution
Agreements by and between each Executive and the Company, dated as of March 6, 2003.

     “Management Manager” has the meaning set forth in Section 1(a)(ii)(2) hereto.

     “Minority Transferor” has the meaning set forth in Section 3(b) hereto.

     “Observer(s)” has the meaning set forth in Section 1(e) hereto.

     “Other Securityholders” has the meaning set forth in Section 3(a) hereto.

     “Outside Managers” has the meaning set forth in Section 1(a)(ii)(3) hereto.

     “Participating Securityholders” has the meaning set forth in Section 3(a)
hereto.

12

 

     “Permitted Transferees” has the meaning set forth in Section 3(c) hereto.

     “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof.

     “Public Sale” means any sale of Covered Securities to the public pursuant to an
offering registered under the Securities Act or to the public through a broker, dealer or market
maker pursuant to the provisions of Rule 144 adopted under the Securities Act (other than Rule
144(k) prior to an Initial Public Offering).

     “Qualified Public Offering” means the first sale after the date hereof in an
underwritten public offering registered under the Securities Act (other than on Form S-8 or a
similar form) of equity securities of the Company (or any successor thereto) having an aggregate
offering value of at least $25 million.

     “Redemption Agreement” means that certain Redemption Agreement, dated as of November
10, 2004, by and among the Company and the Securityholders parties thereto, as amended or otherwise
modified from time to time.

     “Sale Notice” has the meaning set forth in Section 3(a) hereto.

     “Sale of the Company” has the meaning set forth in Section 5(a) hereto.

     “Securities Act” means the Securities Act of 1933, as amended from time to time.

     “Securityholder(s)” has the meaning set forth in the preamble hereto.

     “Securityholder Units” means (i) any units of the Company purchased or otherwise
acquired by any Securityholder, (ii) any units or other securities convertible into or exchangeable
for, directly or indirectly, any units of the Company, purchased or otherwise acquired by any
Securityholder, whether or not then convertible or exchangeable, and (iii) any securities or rights
(other than CSC Securities) issued or issuable directly or indirectly with respect to the
securities and rights referred to in clauses (i) and (ii) above by way of unit dividend or unit
split or in connection with a combination of units, recapitalization, merger, consolidation or
other reorganization. As to any particular Securityholder Units, such units shall cease to be
Securityholder Units when they have been disposed of in a Public Sale or repurchased by the Company
or any Subsidiary.

     “Senior Management Agreements” means those Senior Management Agreements between
Coinmach Corporation and certain of the Executives dated on or before March 6, 2003.

     “Significant Securityholder” has the meaning set forth in Section 3(a) hereto.

     “Subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership, association or other business entity of which (i) if a corporation, a
majority of the total voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees thereof is at the time

13

 

owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company,
partnership, association or other business entity, a majority of the limited liability company,
partnership or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination
thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association or other business entity if such
Person or Persons shall be allocated a majority of limited liability company, partnership,
association or other business entity gains or losses or shall be or control the managing director
or general partner of such limited liability company, partnership, association or other business
entity. References to any “Subsidiary” of the Company shall be given effect only at such times as
the Company has one or more Subsidiaries.

     “TCW/Crescent Purchasers” means, collectively, TCW/Crescent Mezzanine Partners II,
L.P., a Delaware limited partnership, TCW/Crescent Mezzanine Trust II, a Delaware business trust,
TCW Leverage Income Trust, L.P., a Delaware limited partnership, TCW Leveraged Income Trust II,
L.P., a Delaware limited partnership, and TCW Leveraged Income Trust IV, L.P., a Delaware limited
partnership, any of their Affiliates or any holder of Securityholder Units for whom Trust Company
of the West or any Affiliate of Trust Company of the West acts as an Account Manager (each
individually a “TCW/Crescent Purchaser”).

     “Threshold Amount” means, (i) with respect to any class of Securityholder Units, 15%
of such class, (ii) with respect to any class of CSC Securities, other than Class B Stock, 15% of
the aggregate number of shares of such class held by all Securityholders at the time of
determination, and (iii) with respect to the Class B Stock, any amount of Class B Stock.

     “Transfer” has the meaning set forth in Section 3 hereto.

     “Transfer Notice” has the meaning set forth in Section 3(b) hereto.

     10. Transfers in Violation of Agreement. Any Transfer or attempted Transfer of any
Securityholder Units in violation of any provision of this Agreement shall be void, and the Company
shall not record such Transfer on its books or treat any purported transferee(s) of such
Securityholder Units as the owner of such securities for any purpose.

     11. Amendment and Waiver. Except as otherwise provided herein, no modification,
amendment, or waiver of any provision of this Agreement shall be effective against the Company or
the Securityholders unless such modification, amendment, or waiver is approved in writing by the
Company and Securityholders holding at least a majority of the Common Units (for the purpose of
such determination, Common Units that were surrendered, exchanged or redeemed for CSC Securities
shall be treated as outstanding); provided that no such amendment or modification that would
materially and adversely affect holders of one class or series of Units in a manner different than
holders of any other class or series of Covered Securities shall be effective against the holders
of such class or group of Covered Securities without the prior written consent of (i) in the case
of Common Units or Class C Preferred Units, holders of at least a majority of Securityholder Units
of such class or group materially and adversely affected thereby, (ii) in the case of Class B
Preferred Units, at least 70% of Securityholder Units of such

14

 

class or (iii) in the case of CSC Securities, holders of at least a majority of the shares of
Class B Stock comprising such CSC Securities. Notwithstanding the foregoing, Schedule A hereto
shall be amended to reflect the Units held by the Securityholders following the consummation of the
transactions contemplated by the Redemption Agreement. No failure by any party to insist upon the
strict performance of any covenant, duty, agreement, or condition of this Agreement or to exercise
any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach
or any other covenant, duty, agreement, or condition.

     12. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect the validity, legality or enforceability of any other provision of this Agreement in
such jurisdiction or affect the validity, legality or enforceability of any provision in any other
jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as
if such invalid, illegal or unenforceable provision had never been contained herein.

     13. Entire Agreement. Except as otherwise expressly set forth herein, this Agreement
embodies the complete agreement and understanding among the parties hereto with respect to the
subject matter hereof and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related to the subject
matter hereof in any way.

     14. Successors and Assigns. Except as otherwise provided herein, this Agreement shall
bind and inure to the benefit of and be enforceable by the Company and its successors and assigns
and the Securityholders and any subsequent holders of Securityholder Units and the respective
successors and assigns of each of them, so long as they hold Securityholder Units; provided,
however, notwithstanding anything herein to the contrary, the rights of Messrs. Mitchell Blatt and
Robert Doyle and GIC and TCW/Crescent Purchasers under Sections 1(a)(ii)(4) and
1(e) hereof, as applicable, shall not be assignable to any other Person (other than to an
Affiliate in the case of TCW/Crescent Purchasers) except with the prior written consent of the
Company.

     15. Counterparts. This Agreement may be executed in multiple counterparts (including
by means of telecopied signature pages), each of which shall be an original and all of which taken
together shall constitute one and the same agreement.

     16. Remedies. The Company and the Securityholders shall be entitled to enforce their
rights under this Agreement specifically, to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights existing in their favor. The parties
hereto agree and acknowledge that money damages would not be an adequate remedy for any breach of
the provisions of this Agreement and that the Company or any Securityholder may in its sole
discretion apply to any court of law or equity of competent jurisdiction for specific performance
and/or injunctive relief (without posting a bond or other security) in order to enforce or prevent
any violation of the provisions of this Agreement.

15

 

     17. Notices. Any notice provided for in this Agreement shall be in writing and shall
be either personally delivered, or mailed first class mail (postage prepaid) or sent by reputable
overnight courier service (charges prepaid) to the Company at the address set forth below, to each
Executive at the address indicated on the Schedule of Executives attached hereto, to GTCR-CLC and
each Investor at the address indicated on the Schedule of Investors attached hereto and to any
subsequent holder of Securityholder Units subject to this Agreement at such address as indicated by
the Company’s records, or at such address or to the attention of such other person as the recipient
party has specified by prior written notice to the sending party. Notices shall be deemed to have
been given hereunder when delivered personally, three days after deposit in the U.S. mail and one
day after deposit with a reputable overnight courier service. Notices shall be sent to the Company
and GTCR-CLC at the following addresses:

     If to the Company:

Coinmach Holdings, LLC

c/o Coinmach Laundry Corporation

521 East Morehead

Charlotte, NC 28202

Attention: Stephen R. Kerrigan

     with copies, which will not constitute notice to the Company, to:

GTCR Fund VII, L.P.

c/o GTCR Golder Rauner, L.L.C.

6100 Sears Tower

Chicago, IL 60606-6402

Attention: David A. Donnini

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

Attention: Stephen L. Ritchie, P.C.

Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, NY 10019

Attention: Ronald S. Brody, Esq.

     If to GTCR-CLC:

GTCR-CLC, LLC

c/o GTCR Golder Rauner, L.L.C.

6100 Sears Tower

Chicago, IL 60606-6402

Attention: David A. Donnini

     with a copy, which will not constitute notice to GTCR-CLC, to:

16

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

Attention: Stephen L. Ritchie, P.C.

     18. Governing Law. All issues and questions concerning the construction, validity,
interpretation and enforceability of this Agreement and the exhibits and schedules hereto shall be
governed by, and construed in accordance with, the laws of the State of Delaware, without giving
effect to any choice of law or conflict of law rules or provisions (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

     19. Descriptive Headings. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a part of this Agreement.

*   *   *   *

17

 

     IN WITNESS WHEREOF, the parties hereto have executed this Securityholders Agreement on the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	COINMACH HOLDINGS, LLC
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Robert M. Doyle
	 	 
	

	 	 	 	 	 	 
	 	 	Name: Robert M. Doyle
	 	 	Its: Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Robert M. Doyle	 	 
	

	 	 	 	 	 	 
	 	 	Name: Robert M. Doyle
	 	 	Its: Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	GTCR-CLC, LLC
	 
	 	 	 	 	 	 
	 	 	By: GTCR Fund VII, L.P.
	 	 	Its: Managing Member
	 
	 	 	 	 	 	 
	 	 	By: GTCR Partners VII, L.P.
	 	 	Its: General Partner
	 
	 	 	 	 	 	 
	 	 	By: GTCR Golder Rauner, L.L.C.
	 	 	Its: General Partner
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ David A. Donnini	 	 
	

	 	 	 	 	 	 
	 	 	Name: David A. Donnini
	 	 	Its:      Principal

 

 

	 	 	 	 	 	 	 
	 	 	TCW/CRESCENT MEZZANINE PARTNERS II, L.P.
	 	 	TCW/CRESCENT MEZZANINE TRUST II
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW/Crescent Mezzanine II, L.L.C.,	 	 
	

	 	 	 	as investment manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW/Crescent Mezzanine, L.L.C.,	 	 
	

	 	 	 	its managing owner	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy P. Costello	 	 
	

	 	 	 	 	 	 
	 	 	Name: Timothy P. Costello
	 	 	Title: Managing Director
	 
	 	 	 	 	 	 
	 	 	TCW LEVERAGED INCOME TRUST, L.P.
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW Advisors (Bermuda), Ltd.,	 	 
	

	 	 	 	as general partner	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ James M. Hassett	 	 
	

	 	 	 	 	 	 
	 	 	Name: James M. Hassett
	 	 	Title: Managing Director
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW Investment Management Company,	 	 
	

	 	 	 	as Investment Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy P. Costello	 	 
	

	 	 	 	 	 	 
	 	 	Name: Timothy P. Costello
	 	 	Title: Managing Director

 

 

	 	 	 	 	 	 	 
	 	 	TCW LEVERAGED INCOME TRUST II, L.P.
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW (LINC II), L.P.,	 	 
	

	 	 	 	as general partner	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW Advisors (Bermuda), Ltd.,	 	 
	

	 	 	 	as general partner	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ James M. Hassett	 	 
	

	 	 	 	 	 	 
	 	 	Name: James M. Hassett
	 	 	Title: Managing Director
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW Investment Management Company,	 	 
	

	 	 	 	as Investment Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy P. Costello	 	 
	

	 	 	 	 	 	 
	 	 	Name: Timothy P. Costello
	 	 	Title: Managing Director
	 
	 	 	 	 	 	 
	 	 	TCW LEVERAGED INCOME TRUST IV, L.P.
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW Asset Management Company,	 	 
	

	 	 	 	as Investment Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy P. Costello	 	 
	

	 	 	 	 	 	 
	 	 	Name: Timothy P. Costello
	 	 	Title: Managing Director
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW Asset Management Company, as managing	 	 
	

	 	 	 	member of TCW (LINC IV), L.L.C., the general partner	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ James M. Hassett	 	 
	

	 	 	 	 	 	 
	 	 	Name: James M. Hassett
	 	 	Title: Managing Director

 

 

	 	 	 	 	 	 	 
	 	 	JEFFERIES & COMPANY, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Daniel G. Esters	 	 
	

	 	 	 	 	 	 
	 	 	Name: Daniel G. Esters
	 	 	Title: Managing Director
	 
	 	 	 	 	 	 
	 	 	FILBERT INVESTMENT PTE LTD.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Lim Hock Tay	 	 
	

	 	 	 	 	 	 
	 	 	Name: Lim Hock Tay
	 	 	Title: Director

 

 

	 	 	 	 	 	 	 
	 	 	MCS CAPITAL, INC.
	 
	 	 	 	 	 	 
	

	 	By:  
	/s/ Stephen R. Kerrigan	 	 
	

	 	 	 	 	 	 
	

	 	Name:  Stephen R. Kerrigan
	 
	

	 	Title:  President	 	 

 

 

	 	 	 	 	 
	 	 	 
	 	

/s/ Stephen R. Kerrigan
 	 
	 	Stephen R. Kerrigan	 

	 	 	 	 	 
	 	                                              /s/ Mitchell Blatt
 	 
	 	Mitchell Blatt	 

	 	 	 	 	 
	 	 	 
	 	                                              /s/  Robert M. Doyle
 	 
	 	Robert M. Doyle	 

	 	 	 	 	 
	 	                                              /s/  Michael E. Stanky
 	 
	 	Michael E. Stanky	 

	 	 	 	 	 
	 	                                              /s/ James N. Chapman
 	 
	 	James N. Chapman	 

 

 

	 	 	 	 	 

SCHEDULE OF SECURITYHOLDERS

	 	 	 
	 	 	Number and Class of
	Name	 	Securityholder Units
	GTCR-CLC.

	 	56,258.12 Class C Preferred
	

	 	116,133,474 Common
	 
	 	 
	Filbert Investment Pte Ltd

	 	28,221.94 Class C Preferred
	

	 	15,384,615 Common
	 
	 	 
	TCW Crescent Mezzanine Partners II, L.P

	 	9,086.27 Class C Preferred
	

	 	4,953,193 Common
	 
	 	 
	TCW Crescent Mezzanine Trust II

	 	2,202.51 Class C Preferred
	

	 	1,200,655 Common
	 
	 	 
	TCW Leverage Income Trust, L.P

	 	940.73 Class C Preferred
	

	 	512,821 Common
	 
	 	 
	TCW Leveraged Income Trust II, L.P

	 	940.73 Class C Preferred
	

	 	512,821 Common
	 
	 	 
	TCW Leveraged Income Trust IV, L.P

	 	940.73 Class C Preferred
	

	 	512,821 Common
	 
	 	 
	Jefferies & Company

	 	484.43 Class C Preferred
	

	 	1,000,000 Common
	 
	 	 
	MCS Capital, Inc. (Stephen R. Kerrigan)

	 	1,553.05 Class C Preferred
	

	 	8,320,914 Common
	 
	 	 
	Mitchell Blatt

	 	2,062.95 Class C Preferred
	

	 	7,376,400 Common
	 
	 	 
	Michael E. Stanky

	 	197.83 Class C Preferred
	

	 	2,058,122 Common
	 
	 	 
	Robert M. Doyle

	 	410.50 Class C Preferred
	

	 	847,405 Common
	 
	 	 
	James N. Chapman

	 	59.09 Class C Preferred
	

	 	756,436 Common

 

 

SCHEDULE OF EXECUTIVES

Name and Address

Stephen R. Kerrigan

c/o Coinmach Laundry Corporation

521 East Morehead

Charlotte, NC 28202

with a copy to:

Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, NY 10019

Attention: Ronald S. Brody, Esq.

Mitchell Blatt

31 Wilmington Drive

Dix Hills, NY 11747

with a copy to:

Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, NY 10019

Attention: Ronald S. Brody, Esq.

Robert M. Doyle

53 Sheryl Crescent

Smithtown, NY 11787

with a copy to:

Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, NY 10019

Attention: Ronald S. Brody, Esq.

Michael E. Stanky

c/o Coinmach Laundry Corporation

521 East Morehead

Charlotte, NC 28202

with a copy to:

Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, NY 10019

Attention: Ronald S. Brody, Esq.

 

 

James N. Chapman

521 East Morehead

Charlotte, NC 28202

with a copy to:

Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, NY 10019

Attention: Ronald S. Brody, Esq.

 

 

SCHEDULE OF INVESTORS

FILBERT INVESTMENT PTE LTD

c/o GIC Special Investments

255 Shoreline Drive, Suite 600

Redwood City, CA 94107

with a copy to:

Heller Ehrman White & McAuliffe LLP

333 Bush Street

San Francisco, CA 94104

Attention: Randall B. Schai

TCW/CRESCENT MEZZANINE PARTNERS II, L.P.

TCW/CRESCENT MEZZANINE TRUST II

TCW LEVERAGE INCOME TRUST, L.P.

TCW LEVERAGED INCOME TRUST II, L.P.

TCW LEVERAGED INCOME TRUST IV, L.P.

c/o TCW Crescent Mezzanine L.L.C.

200 Crescent Court, Suite 1600

Dallas, Texas 75201

Attention: Timothy P. Costello

with a copy to:

Gary B. Clark

Gardere Wynne Sewell LLP

1601 Elm Street

3000 Thanksgiving Tower

Dallas, Texas 75201

JEFFERIES & COMPANY, INC.

11100 Santa Monica Blvd., 10th Floor

Los Angeles, California 90025

Attention: Dan Esters

 

 

EXHIBIT A

CERTIFICATE OF TRANSFER

[Date]

[Coinmach Holdings, LLC]/

[Coinmach Service Corp.]

303 Sunnyside Blvd., Suite 70

Plainview, NY 11803

Attention: Robert M. Doyle

Dear Sirs:

     In connection with the purchase or other acquisition by the undersigned of the securities (the
“Offered Securities”) of [Coinmach Holdings, LLC]/[Coinmach Service Corp.] (the “Company”), the
undersigned hereby makes the following representations, warranties and covenants to and for the
benefit of the Company:

     1. (A) the purchase or other acquisition by the undersigned of the Offered
Securities has not been registered under the United States Securities Act of 1933, as amended (the
“Securities Act”) by reason of the reliance on an exemption from registration requirements under
the Securities Act, (B) the Offered Securities have been acquired solely by and for the undersigned
and have been acquired for investment purposes only, and are not being purchased or otherwise
acquired for subdivision, fractionalization, resale or distribution and the undersigned has no
contract, undertaking, agreement or arrangement to sell, transfer or pledge to anyone else the
Offered Securities (or any portion thereof) which the undersigned has purchased or otherwise
acquired, and the undersigned has no present plans or intentions to enter into any such contract,
undertaking, agreement or arrangement, (C) the undersigned understands and agrees that the Offered
Securities being sold or otherwise transferred to the undersigned must be held indefinitely by the
undersigned unless they are subsequently registered under the Securities Act or a transfer or sale
is made pursuant to an exemption from such registration, including, for example, pursuant to Rule
144 under the Securities Act and that the Company has no agreements in respect of registering the
Offered Securities under the Securities Act, and (D) the undersigned’s financial condition is such
that the undersigned is not under any present necessity or constraint, and does not foresee in the
future any necessity or constraint, to dispose of these Offered Securities to satisfy any existing
or contemplated debt or undertaking;

     2. the undersigned understands that all certificates representing the Offered
Securities shall be endorsed as follows:

	   	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN AMENDED AND
RESTATED SECURITYHOLDERS AGREEMENT DATED AS OF NOVEMBER 24, 2004, AMONG THE ISSUER
OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S
SECURITYHOLDERS, AS

A-1

 

	   	AMENDED AND MODIFIED FROM TIME TO TIME. A COPY OF SUCH SECURITYHOLDERS AGREEMENT
SHALL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN
REQUEST.
	 
	   	THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED FROM TIME TO TIME (THE “ACT”), AND MAY
NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER.”

     3. the undersigned: (A) is aware of the Company’s business affairs and financial
condition, (B) has made an informed and knowledgeable investment decision with respect to its
purchase or other acquisition of the Offered Securities and (C) has such business and financial
experience as is required to give it the capacity to protect its own interests in connection with
the purchase or other acquisition of the Offered Securities;

     4. the undersigned: (A) has not and will not solicit offers for, or offer or resell,
the Offered Securities by means of any general solicitation or general advertising within the
meaning of Rule 502(c) under Regulation D under the Securities Act, and (B) has not engaged and
will not engage in any directed selling efforts with respect to the Offered Securities sold
pursuant to Regulation S under the Securities Act (“Regulation S”);

     5. the undersigned will offer and sell the Offered Securities only: (A) outside the
United States to a person other than a “U.S. person” within the meaning of Regulation S, not acting
for the account or benefit of a “U.S. person,” which is acquiring Offered Securities in a
transaction meeting the requirements of Regulation S, (B) to institutional investors that are
reasonably believed by it to qualify as Qualified Institutional Buyers as that term is defined in
Rule 144A of the Securities Act (“Rule 144A”) in transactions meeting the requirements of Rule
144A, (C) in a transaction otherwise exempt from the Securities Act, or (D) pursuant to
registration under the Securities Act;

     6. if the undersigned consummates a sale or other transfer of the Offered Securities
on or after the date hereof, prior to such sale or transfer it will have obtained and delivered to
the Company an executed certificate of transfer in the form of this Certificate of Transfer (the
“Certificate of Transfer”) for the benefit of the Company from each purchaser or transferee of the
Offered Securities (each, a “Subsequent Buyer”);

     7. the undersigned understands that no public market now exists for the Offered
Securities and that the Company has made no assurances that a public market will ever exist for any
of the Offered Securities;

     8. the undersigned has the legal capacity, power and authority to, and has taken all
corporate action necessary to, enter into and perform all of its obligations under this Certificate
of Transfer;

     9. the execution, delivery and performance by the undersigned of this Certificate of
Transfer and each transaction contemplated by this Certificate of Transfer as being performed by it
will not violate a provision of its charter, articles of organization, bylaws, constitution or
other constituent or organizational documents or any other agreement or document which is binding
on it or its assets;

     10. in acquiring the Offered Securities, the undersigned has acquired all of the
outstanding securities of the Company (other than short-term paper) owned or beneficially owned by
the transferor,

A-2

 

or, if that is not the case, the undersigned will promptly notify the Company of that fact
prior to acquiring the Offered Securities and will assist the Company as needed or requested for
the Company to determine that the acquisition of the Offered Securities by the undersigned would
not require the Company to register as an investment company under the United States Investment
Company Act of 1940, as amended (the “Investment Company Act”);

     11. (A) if the undersigned is a natural person, he or she has acquired the Offered
Securities solely for his or her own benefit, except that the undersigned may have acquired the
Offered Securities jointly with his or her spouse; or (B) if the undersigned is not a natural
person, (i) it was not formed for the purpose of investing in the Company or to permit the Company
to avoid classification as an investment company under the Investment Company Act; (ii) not more
than 40% of its assets will be invested in interests of the Company; (iii) it (as opposed to its
equity owners or beneficial owners) is not making this investment with a principal purpose of
enabling the Company to avoid “publicly traded” partnership status under the United States Internal
Revenue Code of 1986, as may be amended from time to time; (iv) it is not an “investment company”
within the meaning of the Investment Company Act and it also would not be an investment company but
for the exceptions to the definitions of investment company provided by Sections 3(c)(1) or 3(c)(7)
thereof; (v) the holders of equity or beneficial interests in it are not able to decide
individually whether to participate, or the extent of their participation in the undersigned’s
investment in the Company; (vi) it is not a “defined contribution plan” within the meaning of the
United States Employee Retirement Income Security Act of 1974, as amended, which allows
participants to determine whether or how much will be invested in investments on their behalf; and
(vii) no persons other than the undersigned will have a beneficial interest in the interests of the
Company being acquired pursuant to this Certificate of Transfer (other than as a shareholder,
partner or other beneficial owner of an equity interest in the undersigned); or (C) if neither
subclause (A) nor (B) is true as of the date of transfer, the undersigned will promptly notify the
Company of that fact prior to acquiring the Offered Securities and will assist the Company as
needed or requested for the Company to determine that the acquisition of the Offered Securities by
the undersigned would not require the Company to register as an investment company under the
Investment Company Act;

     12. (A) to the best knowledge of the undersigned, the acquisition of the Offered
Securities by it would not require the Company to register as an investment company under the
Investment Company Act; (B) at the time of acquiring the Offered Securities, the undersigned agrees
to provide promptly, at the request of the Company, written certifications, representations and
warranties, financial statements and incorporation and operating documents that would, in the sole
discretion of the Company, provide reasonable assurances to the Company that the beneficial
ownership of the Offered Securities by the undersigned would not require the Company to register as
an investment company under the Investment Company Act, and (C) the undersigned understands and
acknowledges that the Company will, and it authorizes the Company to, rely on the representations,
warranties, agreements and statements contained herein when determining not to register as an
investment company under the Investment Company Act;

     13. the undersigned agrees that (A) it will offer and sell, or otherwise dispose of,
the Offered Securities only in a transaction that it reasonably believes would not require the
Company to register as an investment company, and any sale or other disposition that would require
the Company to register as an investment company shall be void ab initio; and (B) for so long as it
holds outstanding securities of the Company, not to do any act, or fail to do any act, that would
cause a reasonable person to believe that the Company might be required to register as an
investment company under the Investment Company Act; and

     14. this Certificate of Transfer has been duly and validly authorized, executed and
delivered by the undersigned and constitutes a valid and binding obligation enforceable in
accordance with its

A-3

 

terms, subject to any necessary stamping and registration and to customary insolvency and
other qualifications with regard to the meaning of “enforceable”.

     [Insert for transfers of Coinmach Service Corp. Class B Common Stock: 15. the undersigned
understands and acknowledges that, under certain circumstances, pursuant to Section 3.2.4 of the
Company’s Amended and Restated Certificate of Incorporation, as amended or otherwise modified from
time to time (the “Charter”), transfers of the Company’s Class B Common Stock to persons that are
not Class B Affiliates (as defined in the Charter) will result in the loss of certain voting rights
of all shares of the Company’s Class B Common Stock.]

     The undersigned understands and agrees that this Certificate of Transfer must be executed by
the undersigned and delivered to the Company prior to consummation of the purchase or other
acquisition of Offered Securities by it and is intended, without limiting any other right or remedy
in law or equity available to the Company, to inure to the benefit of the Company and provide the
Company with a contractual right to take action against the undersigned to enforce this Certificate
of Transfer and obtain damages in the event of any breach of the representations, warranties and
covenants contained herein. The Company may prohibit and implement “stop transfer” instructions
against the purchase or other acquisition by the undersigned if, in the Company’s sole discretion,
this Certificate of Transfer is improperly executed or delivered or the Company has reasonable
knowledge that the representations and warranties contained herein and made by the undersigned are
inaccurate in any respect. Prior to its purchase or acquisition of the Offered Securities, the
undersigned agrees that it must provide the Company with an opportunity to request, and if the
Company so requests, must obtain and deliver to the Company, a written opinion of counsel
satisfactory to the Company to the effect that the purchase or other acquisition of the Offered
Securities by the undersigned will not violate or require registration under the Securities Act.

Very truly yours,

[_______________]

	 	 	 	 	 
	

	 	By:	 
	

	 	 	 	 
	

	 	Name:
	

	 	Title:

A-4EX-10.4:

 

EXHIBIT 10.4

INTERCREDITOR AGREEMENT

     This INTERCREDITOR AGREEMENT is dated as of November 24, 2004, and entered into by and among
COINMACH LAUNDRY CORPORATION, a Delaware corporation (the “Guarantor”), DEUTSCHE BANK TRUST COMPANY
AMERICAS, in its capacity as the collateral agent for the First Lien Creditors (including its
successors and assigns from time to time, the “First Lien Collateral Agent”) and THE BANK OF NEW
YORK, in its capacity as collateral agent for the Noteholders (including its successors and assigns
from time to time, the “Second Lien Collateral Agent”). Capitalized terms used herein shall have
the meanings set forth in Section 1 below; provided that capitalized terms defined in the Credit
Agreement used (but not otherwise defined) herein shall have the meanings ascribed to them in the
Credit Agreement as in effect on the date hereof.

W I T N E S S E T H:

     WHEREAS, Borrower, the Guarantor, the subsidiary guarantors from time to time party thereto,
the various financial institutions from time to time party thereto, the First Lien Collateral
Agent, as Administrative Agent and Collateral Agent, Deutsche Bank Securities Inc. (f/k/a Deutsche
Banc Alex. Brown Inc.), as Lead Arranger and Book Manager, J.P. Morgan Securities Inc. and Wachovia
Capital Markets, LLC (f/k/a First Union Securities, Inc.) as Syndication Agents and Credit Lyonnais
New York Branch, as Documentation Agent, are parties to the Credit Agreement, dated as of January
25, 2002 (as further amended, supplemented, amended and restated or otherwise modified from time to
time (including pursuant to the Limited Waiver and Amendment No. 1 and Agreement dated as of
November 15, 2004 (the “First Amendment”)) the “Credit Agreement”);

     WHEREAS, CSC, the Guarantor, the other guarantors from time to time party thereto and the
Second Lien Collateral Agent, as collateral agent and trustee, entered into an Indenture, dated as
of November 24, 2004 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the “Indenture”), governing the rights and duties of CSC under its 11% Senior Secured
Notes due 2024 in an aggregate principal amount on the date thereof of $132,556,665 (together with
any such notes subsequently issued not in violation of the Indenture, the “Senior Secured Notes”);

     WHEREAS, the obligations of Borrower under the Credit Agreement and any Interest Rate
Protection Agreements or Other Hedging Agreements entered into with a counterparty who was a
Secured Party (or affiliate thereof) at the time such Interest Rate Protection Agreement or Other
Hedging Agreement was entered into will be secured by, among other things, a first priority
security interest in the Common Collateral pursuant to the terms of the Holdings Pledge Agreement;

     WHEREAS, the obligations of the Guarantor under the Indenture will be secured by, among other
things, a second priority security interest in the Common Collateral pursuant to the terms of the
Noteholder Collateral Documents and this Agreement;

     WHEREAS, the Holdings Pledge Agreement, the Indenture and the Noteholder Collateral Documents
provide, among other things, that the parties thereto shall set forth in this

 

 

Agreement their respective rights and remedies with respect to the Common Collateral
(including the Pledged Collateral) owned by the Guarantor; and

     WHEREAS, it is a condition precedent to the effectiveness of the First Amendment that the
parties hereto enter into this Agreement;

     NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and obligations herein
set forth and for other good and valuable consideration, the adequacy and receipt of which are
hereby acknowledged, and in reliance upon the representations, warranties and covenants herein
contained, the parties hereto, intending to be legally bound, hereby agree as follows:

     Section 1. Definitions. As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular and the plural form
of the terms indicated):

     “Agreement” means this Intercreditor Agreement, as amended, supplemented, amended and
restated or otherwise modified from time to time in accordance with the terms hereof.

     “Borrower” means Coinmach Corporation, a Delaware corporation.

     “Common Collateral” means the Collateral, as such term is defined in the Holdings
Pledge Agreement.

     “Comparable Noteholder Collateral Document” means, in relation to any Common Collateral
subject to any Security Document, that Noteholder Collateral Document which creates a
security interest in the same Common Collateral, granted by the Guarantor.

     “Credit Agreement” is defined in the first recital; provided that (i) the term Credit
Agreement shall (x) also include any renewal, extension, refunding, restructuring,
replacement or refinancing thereof (whether with the original collateral agent and lenders
or another collateral agent or agents or other lenders, whether provided under the original
Credit Agreement or any other credit or other agreement or indenture and whether entered
into concurrently with or subsequent to the termination of the prior Credit Agreement);
provided that any such renewal, extension, refunding, restructuring, replacement or
refinancing does not increase the principal amount thereof beyond in violation of the
restrictions in the Indenture and (y) exclude the Senior Secured Notes and other Noteholder
Documents and (ii) if at any time a Discharge of Lender Claims occurs with respect to the
Credit Agreement (without giving effect to Section 5.5), then, to the extent provided in
Section 5.5, the term “Credit Agreement” shall mean the Future First-Lien Credit Facility
designated by Borrower in accordance with the terms of such section.

     “CSC” means Coinmach Service Corp., a Delaware corporation.

     “DIP Financing” is defined in Section 6.1.

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     “Discharge of Lender Claims” means, except to the extent otherwise provided in Sections
5.5 and 6.5, the payment in full in cash of all Obligations, the expiration, termination or
cash collateralization of all Letters of Credit, pursuant (for purposes of cash
collateralization) to the terms thereof and the Credit Agreement, the termination of all
commitments to extend credit under the Credit Agreement and the payment in full in cash of
all other Lender Claims (other than Obligations for indemnification in respect of which no
claim or demand for payment has been made and no notice for indemnification has been issued
by the indemnitee at such time), as may be evidenced by a “pay-off” letter signed by an
agent for the Lenders under the Credit Agreement.

     “Disposition” is defined in Section 5.1(a)(i).

     “First Amendment” is defined in the first recital.

     “First Lien Collateral Agent” means, in addition to the First Lien Collateral Agent as
defined in the preamble, the then acting agent for the First Lien Creditors under the Loan
Documents and any successor or assign thereto exercising substantially the same rights and
powers.

     “First Lien Creditors” shall mean the “Secured Creditors” (as defined in the Credit
Agreement) and any other Persons holding Lender Claims, including the First Lien Collateral
Agent.

     “Future First-Lien Credit Facility” shall mean the Credit Agreement and any Credit
Agreement (as defined in the Indenture) that is designated by Borrower as a “First-Lien
Credit Facility” for purposes of the Indenture; provided that the First Lien Creditors under
any Credit Agreement then in effect have consented to such designation.

     “Guarantor” is defined in the preamble.

     “Holdings Pledge Agreement” is defined in the Credit Agreement, provided that the term
“Holdings Pledge Agreement” shall include any amendment (including Amendment No. 1 thereto
dated as of the date hereof), amendment and restatement, supplement or other modification
thereto and any other document or instrument evidencing the Guarantor’s pledge of Common
Collateral under any Future First-Lien Credit Facility as any such document or instrument
may from time to time be amended, supplemented, amended and restated or otherwise modified
in a manner not inconsistent with this Agreement.

     “Indenture” is defined in the second recital.

     “Insolvency or Liquidation Proceeding” means with respect to any Person (a) any
voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to such
Person or any of its subsidiaries as a debtor, (b) any other voluntary or involuntary
insolvency, reorganization or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding with respect to such Person
or any of its subsidiaries as a debtor or with respect to any substantial part of their
respective assets,

-3-

 

 (c) any liquidation, dissolution, reorganization or winding up of such Person or
any of its subsidiaries whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy or (d) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of such Person or any of its subsidiaries.

     “Lender Claims” means all Obligations outstanding under one or more of the Loan
Documents. Lender Claims shall include all interest accrued or accruing (or which would,
absent the commencement of an Insolvency or Liquidation Proceeding, accrue) after the
commencement of an Insolvency or Liquidation Proceeding in accordance with and at the rate
specified in the Credit Agreement whether or not the claim for such interest is allowed as a
claim in such Insolvency or Liquidation Proceeding. To the extent any payment with respect
to the Lender Claims (whether by or on behalf of any Obligor, as proceeds of security,
enforcement of any right of setoff or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid to a debtor in possession,
trustee, receiver or similar Person, then the Obligations or part thereof originally
intended to be satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred.

     “Lender Collateral” means any of the assets of the Obligors, whether real, personal or
mixed, on which the First Lien Creditors or any of them now or hereafter holds a Lien as
security for any Lender Claim (regardless of the effect of the application of any laws
relating to fraudulent transfers or conveyances).

     “Lender Liens” means Liens on Common Collateral or Lender Collateral in favor of the
First Lien Collateral Agent on behalf of the First Lien Creditors created as collateral
security for the Lender Claims.

     “Loan Documents” means the Credit Agreement, the Credit Documents, and all documents
and instruments evidencing any obligation under any Future First-Lien Credit Facility, and
any other related document or instrument executed or delivered pursuant to any Loan Document
or Future First-Lien Credit Facility at any time or otherwise evidencing Lender Claims, as
any such document or instrument from time to time may be amended, supplemented, amended and
restated or otherwise modified from time to time; provided that any such modification does
not increase the principal amount thereof beyond the limit set forth in the Indenture.

     “Noteholder Claims” means all indebtedness, obligations and other liabilities
(contingent or otherwise) arising under or with respect to the Noteholder Documents or any
of them.

     “Noteholder Collateral” means any assets of CSC and its subsidiaries other than
Borrower and its subsidiaries, whether real, personal or mixed, on which the Noteholders or
any of them now or hereafter holds a Lien as security for any Noteholder Claim (regardless
of the effect of the application of any laws relating to fraudulent transfers or
conveyances).

-4-

 

     “Noteholder Collateral Documents” means, collectively, the Noteholder Security
Agreements, and any document or instrument executed and delivered pursuant to any Noteholder
Document at any time or otherwise pursuant to which a Lien is granted by an obligor under
the Indenture to secure the Noteholder Claims or under which rights or remedies with respect
to any such Lien are governed, as the same may be amended, supplemented, amended and
restated or otherwise modified from time to time.

     “Noteholder Documents” means, collectively, the Indenture, the Senior Secured Notes,
the Noteholder Collateral Documents and any other related document or instrument executed
and delivered pursuant to any Noteholder Document at any time or otherwise evidencing any
Noteholder Claims, as the same may be amended, supplemented, amended and restated or
otherwise modified from time to time.

     “Noteholders” means the Persons holding Noteholder Claims, including the trustee under
the Indenture and the Second Lien Collateral Agent, in each case, in their capacity as such.

     “Noteholder Security Agreements” means (i) the Security Agreement, dated as of November
24, 2004 among CSC, the Guarantor and the Second Lien Collateral Agent, as collateral agent
and (ii) the Pledge Agreement dated as of November 24, 2004 among CSC, the Guarantor and the
Second Lien Collateral Agent, as collateral agent, in each case as the same may be amended,
supplemented, amended and restated or otherwise modified from time to time.

     “Obligors” means Borrower, the Guarantor and each of the Subsidiary Guarantors.

     “Pledged Collateral” means the certificated securities constituting Common Collateral
in the possession or under the control (as defined in Section 8-106 of the UCC) of the First
Lien Collateral Agent (or its agents or bailees) in which a security interest is perfected
by such possession or control.

     “Recovery” shall have the meaning set forth in Section 6.5 hereof.

     “Required Lenders” shall mean, with respect to any amendment or modification of the
Credit Agreement or Future First-Lien Facility, or any termination or waiver of any
provision of the Credit Agreement or Future First-Lien Facility, or any consent or departure
by Borrower therefrom, those First Lien Creditors, the approval of which is required by the
Credit Agreement or such Future First-Lien Facility, as the case may be, to approve such
amendment or modification, termination or waiver or consent or departure.

     “Second Lien Collateral Agent” shall include, in addition to the Second Lien Collateral
Agent defined in the preamble, the then acting collateral agent under the Indenture and any
successor thereto exercising substantially the same rights and powers.

     “Senior Secured Notes” is defined in the second recital.

-5-

 

     Section 2.
Lien Priorities.

     2.1 Priority. Notwithstanding the date, manner or order of grant, attachment or perfection of
any Liens granted to the Second Lien Collateral Agent for the benefit of the Noteholders or to the
Noteholders on the Common Collateral or of any Liens granted to the First Lien Creditors on the
Common Collateral and notwithstanding any provision of the UCC, or any applicable law, the
avoidance or setting aside of any Lien granted to the First Lien Creditors on the Common
Collateral, or the Noteholder Documents or the Loan Documents or any other circumstance whatsoever,
the Second Lien Collateral Agent, on behalf of itself and the Noteholders, hereby agrees that: (i)
any Lien on the Common Collateral securing the Lender Claims now or hereafter held by the First
Lien Collateral Agent or the First Lien Creditors shall be first in priority to any Lien on the
Common Collateral securing the Noteholder Claims and (ii) any Lien on the Common Collateral now or
hereafter held by the Second Lien Collateral Agent or the Noteholders regardless of how acquired,
whether by grant, statute, operation of law, subrogation or otherwise, shall be second in priority
in all respects to all Liens on the Common Collateral securing the Lender Claims. All Liens on the
Common Collateral securing the Lender Claims shall be and remain first in priority to all Liens on
the Common Collateral securing the Noteholder Claims for all purposes, whether or not such Lender
Liens are subordinated to any Lien securing any other obligation of the Guarantor or any of its
subsidiaries.

     2.2 Prohibition on Contesting Liens. Each of the Second Lien Collateral Agent, for itself and
on behalf of each Noteholder, and the First Lien Collateral Agent, for itself and on behalf of each
other First Lien Creditor, agrees that it shall not (and hereby waives any right to) contest or
support any other Person in contesting, in any proceeding (including any Insolvency or Liquidation
Proceeding with respect to CSC or any of its subsidiaries), the priority, validity or
enforceability of a Lien held by the First Lien Creditors on the Lender Collateral or by the
Noteholders on the Common Collateral, as the case may be; provided that nothing in this Agreement
shall be construed to prevent or impair the rights of the First Lien Collateral Agent or any of the
First Lien Creditors to enforce this Agreement, including the priority of the Liens securing the
Lender Claims as provided in Sections 2.1 and 3.1 of this Agreement.

     2.3 No New Liens. So long as the Discharge of Lender Claims has not occurred, (a) the parties
hereto agree that (i) neither the Second Lien Collateral Agent nor any Noteholder shall acquire any
security interest in or shall have any interest in (including following avoidance of any Lender
Liens) any property, real or otherwise (other than the Common Collateral), of any of Borrower or
any of its subsidiaries or any proceeds thereof and (ii) after the date hereof, if the Second Lien
Collateral Agent on behalf of the Noteholders, shall hold (to its actual knowledge), any Lien on
any assets of Borrower or any of its subsidiaries securing the Noteholder Claims that are not also
subject to the prior Lien of the First Lien Creditors under the Loan Documents, the Second Lien
Collateral Agent will notify the First Lien Collateral Agent in writing and, upon demand by the
First Lien Collateral Agent, shall either release such Lien or assign it to the First Lien
Creditors as security for the Lender Claims (unless the applicable Obligor shall promptly grant a
similar Lien on such assets in favor of the First Lien Creditors and such Lien shall be prior to
the Lien of the Second Lien Collateral Agent on such assets) and (b) each of Borrower and its
subsidiaries agrees it will not grant, and the Guarantor agrees it will not permit its Subsidiaries
to grant, any Lien on any of its assets in favor of the Second Lien Collateral Agent or

-6-

 

the Noteholders unless Borrower or such subsidiary has granted a similar perfected prior Lien
on such assets in favor of the First Lien Creditors.

     Section 3.
Enforcement.

     3.1 Exercise of Remedies.

     (a) So long as the Discharge of Lender Claims has not occurred, whether or not any Insolvency
or Liquidation Proceeding has been commenced by or against CSC or any of its subsidiaries, (i) the
Second Lien Collateral Agent and the Noteholders will not exercise or seek to exercise any rights
or remedies (including by way of setoff) with respect to any Common Collateral, institute any
action or proceeding with respect to such rights or remedies, including any action of foreclosure,
or contest, protest or object to any foreclosure proceeding or action brought by the First Lien
Collateral Agent or any other First Lien Creditor, or any other exercise by any such party of any
rights and remedies relating to the Common Collateral under the Credit Documents or otherwise, or
object to the forbearance by the First Lien Collateral Agent or the First Lien Creditors from
bringing or pursuing any foreclosure proceeding or action or any other exercise of any rights or
remedies relating to the Common Collateral and (ii) the First Lien Collateral Agent and the other
First Lien Creditors shall have the exclusive right to enforce rights, exercise remedies (including
by way of setoff and the right to credit bid their debt), refrain from enforcing or exercising
remedies, and make determinations regarding release, disposition, or restrictions with respect to
the Common Collateral without any consultation with or the consent of the Second Lien Collateral
Agent or any Noteholder, all as if the Lien of the Second Lien Collateral Agent for the benefit of
the Noteholders on the Common Collateral under the Noteholder Collateral Documents did not exist;
provided that (A) in any Insolvency or Liquidation Proceeding commenced by or against the
Guarantor, the Second Lien Collateral Agent or any Noteholder may file a claim or statement of
interest with respect to the Noteholder Claims, (B) the Second Lien Collateral Agent or any
Noteholder may take any action not adverse to the Liens on the Common Collateral securing the
Lender Claims in order to establish, preserve, perfect or protect its rights in the Common
Collateral, (C) the Second Lien Collateral Agent or any Noteholder shall be entitled to file any
pleadings, objections, motions or agreements which assert rights or interests available to
unsecured creditors of the Guarantor arising under either the Bankruptcy Code or applicable
non-bankruptcy law, in each case not otherwise in contravention of the terms of this Agreement and
(D) the Second Lien Collateral Agent or any Noteholder shall be entitled to file any proof of claim
and other filings and make any arguments and motions in order to preserve or protect its Lien on
the Common Collateral that are, in each case, not otherwise in contravention of the terms of this
Agreement, with respect to the Indenture and the Common Collateral. In exercising rights and
remedies with respect to the Common Collateral, the First Lien Collateral Agent or any other First
Lien Creditors may enforce the provisions of the Loan Documents and exercise remedies thereunder,
all in such order and in such manner as it may determine in the exercise of its sole discretion.
Such exercise and enforcement shall include the rights of an agent appointed by the First Lien
Collateral Agent and the other First Lien Creditors to sell or otherwise dispose of Common
Collateral upon foreclosure, to incur expenses in connection with such sale or disposition, and to
exercise all the rights and remedies of a secured party under the UCC of any applicable
jurisdiction and of a secured creditor under bankruptcy or similar laws of any applicable
jurisdiction.

-7-

 

     (b) The Second Lien Collateral Agent, for itself and on behalf of the Noteholders, agrees that
neither the Second Lien Collateral Agent nor the Noteholders will take any action that would hinder
or cause to delay any exercise of remedies undertaken by the First Lien Collateral Agent or any
other First Lien Creditor under the Loan Documents as secured parties in respect of any Common
Collateral, including any sale, lease, exchange, transfer or other disposition of the Common
Collateral, whether by foreclosure or otherwise. The Second Lien Collateral Agent, for itself and
on behalf of the Noteholders, hereby waives any and all rights it or the Noteholders may have as a
junior lien creditor or otherwise (whether arising under the UCC or any other law) to object to the
manner in which the First Lien Collateral Agent or the other First Lien Creditors seek to enforce
the Liens granted on any of the Lender Collateral.

     (c) The Second Lien Collateral Agent hereby acknowledges and agrees that no covenant,
agreement or restriction contained in the Noteholder Documents shall restrict in any way the rights
and remedies of the First Lien Collateral Agent or the First Lien Creditors with respect to the
Common Collateral as set forth in this Agreement and the Loan Documents.

     3.2 Cooperation. Subject to the proviso in clause (a)(ii) of Section 3.1, the Second Lien
Collateral Agent, on behalf of itself and the Noteholders, agrees that, unless and until the
Discharge of Lender Claims has occurred, it will not commence, or join with any Person (other than
the First Lien Creditors upon the request thereof) in commencing, any enforcement, collection,
execution, levy or foreclosure action or proceeding with respect to any Lien held by it under any
of the Noteholder Documents with respect to the Common Collateral.

     Section 4.
Payments.

     4.1 Application of Proceeds. So long as the Discharge of Lender Claims has not occurred, the
cash proceeds of Common Collateral received in connection with the sale, transfer or other
disposition of such Common Collateral upon the exercise of remedies shall be applied by the First
Lien Collateral Agent to the Lender Claims in such order as specified in the Credit Agreement until
the Discharge of Lender Claims has occurred. Upon the Discharge of Lender Claims, the First Lien
Collateral Agent shall deliver to the Second Lien Collateral Agent (for turnover to the trustee
under the Indenture for application in such order as specified in the Indenture and the other
applicable Noteholder Documents) any proceeds of Common Collateral held by it in the same form as
received, with any necessary endorsements or as a court of competent jurisdiction may otherwise
direct.

     4.2 The Second Lien Collateral Agent, on behalf of itself and the Noteholders, agrees that it
will not, in connection with the exercise of any right or remedy (including by way of setoff) with
respect to any Common Collateral, take or receive any Common Collateral or any proceeds of Common
Collateral unless and until the Discharge of Lender Claims has occurred. In the event any Common
Collateral or proceeds thereof are received by the Second Lien Collateral Agent in violation of
this Agreement, such Common Collateral and/or proceeds shall be segregated and held in trust for
the benefit of the First Lien Creditors in the same form as received, and shall not be applied to
the satisfaction of any Noteholder Claims. Without limiting the generality of the foregoing,
unless and until the Discharge of Lender Claims has occurred, except as expressly provided in the
proviso in clause (a)(ii) of Section 3.1, the sole right of the Second Lien Collateral Agent and
the Noteholders as secured parties with respect to the Common Collateral

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is to hold a perfected Lien on the Common Collateral pursuant to the Noteholder
Documents for the period and to the extent granted therein and to receive a share of the proceeds
thereof, if any, after the Discharge of Lender Claims has occurred.

     4.3 Each Obligor agrees that it will not, in connection with the exercise of any right or
remedy with respect to any Common Collateral by the Second Lien Collateral Agent or the
Noteholders, transfer, deliver or pay, as applicable, to the Second Lien Collateral Agent or any
Noteholder any Common Collateral or any proceeds of Common Collateral unless and until the
Discharge of Lender Claims has occurred.

     Section 5.
Other Agreements.

     5.1 Releases.

     (a) If, in connection with:

     (i) the exercise of any of the First Lien Collateral Agent’s remedies in respect of
Common Collateral provided for in Section 3.1, including any sale, lease, exchange, transfer
or other disposition (collectively, a “Disposition”) of any such Common Collateral; or

     (ii) a Disposition of any Common Collateral permitted under the terms of the Credit
Documents (whether or not an event of default thereunder, and as defined therein, has
occurred and is occurring),

the First Lien Collateral Agent, for itself and on behalf of any of the First Lien Creditors,
releases any of its Liens on any part of the Common Collateral, in each case other than in
connection with a Disposition under clause (ii) above only, if such Disposition would result in an
event of default under the Noteholder Documents, then the Liens, if any, of the Second Lien
Collateral Agent, for itself or for the benefit of the Noteholders, on such Common Collateral shall
be automatically, unconditionally and simultaneously released and the Second Lien Collateral Agent,
for itself or on behalf of any such Noteholder, promptly shall execute and deliver to the First
Lien Collateral Agent such termination statements, releases and other documents as the First Lien
Collateral Agent may request and provide to it to effectively confirm such release.

     (b) The Second Lien Collateral Agent, on behalf of the Noteholders, shall promptly, at the

request of the First Lien Collateral Agent or any officer or agent of the First Lien Collateral
Agent, from time to time in the First Lien Collateral Agent’s discretion, for the purpose of
carrying out the terms of this Section 5.1, take any and all appropriate action and to execute any
and all releases, documents and instruments provided to it by the First Lien Collateral Agent which
may be necessary or desirable to accomplish the purposes of this Section 5.1, including any
financing statements, mortgage releases, intellectual property releases, endorsements or other
instruments of transfer or release.

     5.2 Insurance. Unless and until the Discharge of Lender Claims has occurred, the First Lien
Collateral Agent and the other First Lien Creditors shall have the sole and exclusive right,
subject to the rights of the Obligors under the Loan Documents, to adjust settlement for

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any insurance policy covering the Common Collateral in the event of any loss thereunder.
Unless and until the Discharge of Lender Claims has occurred (and whether or not the Revolving Loan
Maturity Date has occurred), all proceeds of any such policy and any such award if in respect of
the Common Collateral shall be paid to the First Lien Collateral Agent for the benefit of the First
Lien Creditors to the extent required under the Credit Agreement and thereafter to the Second Lien
Collateral Agent for the benefit of the Noteholders to the extent required under the applicable
Noteholder Documents and then to the owner of the subject property or as a court of competent
jurisdiction may otherwise direct.

     5.3 Amendments to Noteholder Collateral Documents.

     (a) Unless and until the Discharge of Lender Claims has occurred, without the prior written
consent of the First Lien Collateral Agent and the Required Lenders, no Noteholder Collateral
Document may be amended, supplemented or otherwise modified or entered into to the extent such
amendment, supplement or modification, or the terms of any new Noteholder Collateral Document,
would be inconsistent in any material respect with any of the terms of this Agreement or the Loan
Documents. The Second Lien Collateral Agent agrees that each Noteholder Collateral Document
related to the Common Collateral shall include substantially the following language:

“Notwithstanding anything herein to the contrary, the lien and security interest
granted to the Second Lien Collateral Agent pursuant to this Agreement and the
exercise of any right or remedy by the Second Lien Collateral Agent hereunder are
subject to the provisions of the Intercreditor Agreement, dated as of November 24,
2004 (as amended, supplemented, amended and restated or otherwise modified from time
to time, the “Intercreditor Agreement”), among Deutsche Bank Trust Company Americas,
as First Lien Collateral Agent, The Bank of New York as Second Lien Collateral
Agent, and Coinmach Laundry Corporation. In the event of any conflict between the
terms of the Intercreditor Agreement and this Agreement, the terms of the
Intercreditor Agreement shall govern.”

     (b) In the event the First Lien Collateral Agent enters into any amendment, waiver or consent
in respect of any of the Security Documents related to the Common Collateral for the purpose of
adding to, or deleting from, or waiving or consenting to any departures from any provisions of, any
Security Document or changing in any manner the rights of the First Lien Collateral Agent, the
First Lien Creditors or the Guarantor thereunder, then such amendment, waiver or consent shall
apply automatically to any comparable provision of the Comparable Noteholder Collateral Document
without the consent of the Second Lien Collateral Agent or the Noteholders and without any action
by the Second Lien Collateral Agent, CSC or any of its subsidiaries; provided that (A) no such
amendment, waiver or consent shall have the effect of removing assets subject to the Lien of the
Noteholder Collateral Documents, except to the extent that a release of such Lien is permitted by
Section 5.1, (B) any such amendment, waiver or consent that materially and adversely affects the
rights of the Second Lien Collateral Agent and the Noteholders (and not the holders of the Lender
Liens in a like or similar manner) shall not apply to the Noteholder Collateral Documents without
the consent of the Second Lien Collateral Agent (acting at the direction of the holders of the
requsite aggregate principal amount of the applicable Noteholder Claims, determined in accordance
with the Indenture) and (C) notice of such amendment,

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waiver or consent shall have been given to the Second Lien Collateral Agent; provided,
further, that (x) nothing contained in this clause (b) shall impair the rights of the First Lien
Collateral Agent and the holders of Lender Claims, or the obligations and agreements of the Second
Lien Collateral Agent and Noteholders, under Sections 3 and 5.1 hereof and (y) the Security
Documents and Noteholder Collateral Documents may, without the consent of the Second Lien
Collateral Agent or the Noteholders, be amended or modified pursuant to this Section 5.3(b) to
secure additional extensions of credit and add additional First Lien Creditors as long as such
amendments or modifications do not violate the express provisions of the Indenture.

     5.4 Bailee for Perfection.

     (a) Solely for the purpose of perfecting the security interest granted in the Pledged
Collateral pursuant to the Noteholder Collateral Documents, and subject to the terms and conditions
of this Section 5.4, the First Lien Collateral Agent agrees to hold and acknowledges that it holds
the Pledged Collateral that is part of the Common Collateral in its possession or control (or in
the possession or control of its agents or bailees) as bailee for the Second Lien Collateral Agent
and any assignee.

     (b) The rights of the Second Lien Collateral Agent shall at all times be subject to the terms
of this Agreement and to the First Lien Collateral Agent’s rights under the Credit Documents.

     (c) The First Lien Collateral Agent shall have no obligation whatsoever to the Second Lien
Collateral Agent or any Noteholder to assure that the Pledged Collateral is genuine or owned by the
Guarantor or to preserve rights or benefits of any Person except as expressly set forth in this
Section 5.4. The duties or responsibilities of the First Lien Collateral Agent under this Section
5.4 shall be limited solely to holding the Pledged Collateral as bailee for the Second Lien
Collateral Agent for purposes of perfecting the Lien held by the Second Lien Collateral Agent.

     (d) Neither the First Lien Collateral Agent nor the Second Lien Collateral Agent shall have,
by reason of the Noteholder Collateral Documents or this Agreement or any other document a
fiduciary relationship in respect of the other. The First Lien Collateral Agent shall not have, by
reason of the Noteholder Collateral Documents or this Agreement or any other document, a fiduciary
relationship in respect of any Noteholder. The Second Lien Collateral Agent shall not have, by
reason of the Noteholder Collateral Documents or this Agreement or any other document a fiduciary
relationship in respect of the Lenders, in their capacity as such.

     (e) Upon the Discharge of Lender Claims, the First Lien Collateral Agent shall deliver to the
Second Lien Collateral Agent, at the sole cost and expense of the Guarantor, the Pledged Collateral
in its possession or control together with any necessary endorsements (or otherwise allow the
Second Lien Collateral Agent to obtain possession or control of such Pledged Collateral) to the
extent required by the Noteholder Documents or as a court of competent jurisdiction may otherwise
direct.

     5.5 When Discharge of Lender Claims Deemed to Not Have Occurred. If at any time after the
Discharge of Lender Claims has occurred Borrower designates any Future First-Lien

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Credit Facility to be the “Credit Agreement” hereunder, then such Discharge of Lender Claims
shall automatically be deemed not to have occurred for all purposes of this Agreement (other than
with respect to any actions taken prior to the date of such designation as a result of the
occurrence of such first Discharge of Lender Claims), and such Future First-Lien Credit Facility
shall automatically be treated as the Credit Agreement for all purposes of this Agreement,
including without limitation for purposes of the Lien priorities and rights in respect of Common
Collateral set forth herein. Upon receipt of notice of such designation (including the identity of
the new First Lien Collateral Agent), the Second Lien Collateral Agent shall promptly deliver at
the Guarantor’s sole cost to the First Lien Collateral Agent the Pledged Collateral in its
possession or control, together with any necessary endorsements (or otherwise allow such First Lien
Collateral Agent to obtain possession or control of such Pledged Collateral). If the Obligations
under a Future First-Lien Credit Facility are secured by the Common Collateral that do not also
secure the Noteholder Claims, then the Noteholder Claims shall be secured at such time by a second
priority Lien on such assets to the same extent provided in the Noteholder Collateral Documents.

     5.6 Rights as Unsecured Creditors. Except as otherwise set forth in Section 2.1, the Second
Lien Collateral Agent and the Noteholders may exercise rights and remedies as unsecured creditors
against CSC or any subsidiary of CSC in accordance with the terms of the Noteholder Documents and
applicable law. Except as otherwise set forth in Section 2.1 of this Agreement, but subject to the
terms of the Loan Documents, nothing in this Agreement shall prohibit the receipt by the Second
Lien Collateral Agent or any Noteholder of the required payments of interest and principal so long
as such receipt is not the direct or indirect result of the exercise by the Second Lien Collateral
Agent or any Noteholder of rights or remedies as a secured creditor (including setoff) or
enforcement in contravention of this Agreement of any Lien with respect to the Common Collateral
held by any of them and such receipt is not proceeds of any Lender Collateral. Nothing in this
Agreement impairs or otherwise adversely affects any rights or remedies the First Lien Collateral
Agent or the First Lien Creditors may have with respect to the Lender Collateral.

     Section 6.
Insolvency or Liquidation Proceedings.

     6.1 Financing Issues. If the Guarantor or any of its subsidiaries shall be subject to any
Insolvency or Liquidation Proceeding and the First Lien Collateral Agent shall desire to permit the
use of cash collateral or to permit Borrower to obtain financing under section 363 or section 364
of the Bankruptcy Code (“DIP Financing”), then the Second Lien Collateral Agent, on behalf of
itself and the Noteholders, agrees that it will raise no objection to such use or DIP Financing and
will not request adequate protection or any other relief in connection therewith (except to the
extent permitted by Section 6.3) and, to the extent the Lender Liens are junior in priority or pari
passu with such DIP Financing, will maintain the priority of its Liens in the Common Collateral as
junior in priority to such Lender Liens on the same basis as the other Liens securing the
Noteholder Claims are second in priority to Lender Claims under this Agreement.

     6.2 Relief from the Automatic Stay. While any Lender Claims are outstanding under the Loan
Documents or any commitment under any DIP Financing provided by any First Lien Creditor is in
effect, the Second Lien Collateral Agent, on behalf of itself and the Noteholders,

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agrees that none of them shall seek relief from the automatic stay or any other stay in any
Insolvency or Liquidation Proceeding with respect to the Guarantor or any of its subsidiaries in
respect of the Lender Collateral, without the prior written consent of the First Lien Collateral
Agent and the Required Lenders.

     6.3 Adequate Protection. The Second Lien Collateral Agent, on behalf of itself and the
Noteholders, agrees that none of them shall contest (or support any other Person contesting) (a)
any request by the First Lien Collateral Agent or the other First Lien Creditors for adequate
protection or (b) any objection by the First Lien Collateral Agent or the other First Lien
Creditors to any motion, relief, action or proceeding which objection is based on the First Lien
Collateral Agent or the other First Lien Creditors claiming a lack of adequate protection.
Notwithstanding the foregoing contained in this Section 6.3, in any Insolvency or Liquidation
Proceeding with respect to CSC or any of its subsidiaries, in the event the Second Lien Collateral
Agent, on behalf of itself and the Noteholders, seeks or requests adequate protection and such
adequate protection is granted in the form of additional collateral that would constitute
collateral under the Loan Documents, then the Second Lien Collateral Agent, on behalf of itself or
any of the Noteholders, agrees that the First Lien Creditors shall also be granted a Lien on such
additional collateral as security for the Lender Claims and any such DIP Financing and that any
Lien on such additional collateral securing the Noteholder Claims shall be junior in priority to
the Liens on such collateral securing the Lender Claims and any such DIP Financing (and all
Obligations relating thereto) and any other Liens granted to the First Lien Creditors as adequate
protection on the same basis as the other Liens securing the Noteholder Claims are junior in
priority to such Lender Claims under this Agreement.

     6.4 No Waiver; Voting Rights. Nothing contained herein shall prohibit or in any way limit the
First Lien Collateral Agent or any other First Lien Creditor from objecting in any Insolvency or
Liquidation Proceeding with respect to CSC or any of its subsidiaries involving or attempting to
involve any Lender Collateral or otherwise to any action taken by the Second Lien Collateral Agent
or any of the Noteholders, including the seeking by the Second Lien Collateral Agent or any
Noteholder of adequate protection or the asserting by the Second Lien Collateral Agent or any
Noteholder of any of its rights and remedies under the Noteholder Documents or otherwise. In any
Insolvency or Liquidation Proceeding with respect to CSC or any of its subsidiaries that involves
one or more Obligor or any Lender Collateral, neither the Second Lien Collateral Agent nor any
Noteholder shall vote any Noteholder Claim for any plan of reorganization of CSC or any of its
subsidiaries unless (i) such plan provides for the payment in full in cash of all Lender Claims on
the effective date of such plan of reorganization, (ii) such plan provides for treatment of the
Lender Claims in a manner that would result in such Lender Claims having relative lien (or, if the
obligations, property or assets to be distributed in respect of the Lender Claims under such plan
are unsecured, other) priority over the Noteholder Claims to at least the same extent as if such
obligations, property or assets were secured by Liens and subject to Section 6.6, whether or not
such obligations, property or assets are, in fact, secured by any such Liens, or (iii) the plan
otherwise provides treatment of the Lender Claims in a manner approved by the First Lien Collateral
Agent and the Required Lenders.

     6.5 Preference Issues. If any First Lien Creditor is required in any Insolvency or
Liquidation Proceeding with respect to CSC or any of its subsidiaries or otherwise to turn over or

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otherwise pay to the estate of any Obligor any amount as a preference (a “Recovery”), then
such First Lien Creditor shall be entitled to a reinstatement of Lender Claims with respect to all
such recovered amounts. If this Agreement shall have been terminated prior to such Recovery, this
Agreement shall be reinstated in full force and effect, and such prior termination shall not
diminish, release, discharge, impair or otherwise affect the obligations of the parties hereto from
such date of reinstatement.

     6.6 Reorganization Securities. If, in any Liquidation or Insolvency Proceeding with respect
to CSC or any of its subsidiaries, debt obligations of the reorganized debtor secured by Liens upon
any property of the reorganized debtor are distributed, pursuant to a plan of reorganization or
similar dispositive restructuring plan, both on account of Lender Claims and on account of
Noteholder Claims, then, to the extent the debt obligations distributed on account of the Lender
Claims and on account of the Noteholder Claims are secured by Liens upon the same property, the
provisions of this Agreement will survive the distribution of such debt obligations pursuant to
such plan and will apply with like effect to the Liens securing such debt obligations.

     6.7 Expense Claims. Neither the Second Lien Collateral Agent nor any Noteholder will assert
or enforce, at any time prior to the Discharge of Lender Claims, any claim under §506(c) of the
Bankruptcy Code senior to or on a parity with the Lender Liens for costs or expenses of preserving
or disposing of any Lender Collateral.

     6.8 Post-Petition Claims.

     (a) Neither the Second Lien Collateral Agent nor any Noteholder shall oppose or seek to
challenge any claim by the First Lien Collateral Agent or any other First Lien Creditor for
allowance in any Insolvency or Liquidation Proceeding with respect to the Guarantor or any of its
subsidiaries of Lender Claims consisting of post-petition interest, fees or expenses to the extent
of the value of the Lender Lien, without regard to the existence of the Lien of the Second Lien
Collateral Agent on behalf of the Noteholders on the Common Collateral.

     (b) Neither the First Lien Collateral Agent nor any other First Lien Creditor shall oppose or
seek to challenge any claim by the Second Lien Collateral Agent or any Noteholder for allowance in
any Insolvency or Liquidation Proceeding with respect to CSC or any of its subsidiaries of
Noteholder Claims consisting of post-petition interest, fees or expenses to the extent of the value
of the Lien of the Second Lien Collateral Agent on behalf of the Noteholders on the Noteholder
Collateral (after taking into account the Lender Liens).

     6.9 Waiver. The Second Lien Collateral Agent, for itself and on behalf of the Noteholders,
waives any claim it may hereafter have against the First Lien Collateral Agent or any First Lien
Creditor arising out of the election of any First Lien Creditor of the application of section
1111(b)(2) of the Bankruptcy Code, and/or out of any cash collateral or financing arrangement or
out of any grant of a security interest in connection with the Common Collateral in any Insolvency
or Liquidation Proceeding with respect to CSC or any of its subsidiaries.

     6.10 Nature of Obligations; Post-Petition Interest. The Second Lien Collateral Agent, on
behalf of itself and the Noteholders, hereby acknowledges and agrees that (i) the Noteholders’
claims against the Guarantor in respect of the Common Collateral constitute junior claims separate

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 and apart (and of a different class) from the senior claims of the First Lien Creditors
against the Guarantor in respect of the Common Collateral and (ii) the Lender Claims include all
interest that accrues after the commencement of any case, proceeding or other action relating to
the bankruptcy, insolvency, receivership, reorganization or similar proceeding of any Obligor at
the rate provided for in the applicable Loan Documents governing the same, whether or not a claim
for post-petition interest is allowed or allowable in any such case, proceeding or other action.
To further effectuate the intent of the parties as provided in the immediately preceding sentence,
if it is held that the claims against the Guarantor in respect of the Common Collateral constitute
only one secured claim (rather than separate classes of senior and junior claims), then the Second
Lien Collateral Agent, on behalf of the Noteholders, and each of the Noteholders hereby acknowledge
and agree that all distributions pursuant to Section 4.1 or otherwise shall be made as if there
were separate classes of senior and junior secured claims against the Guarantor in respect of the
Common Collateral (with the effect being that, to the extent that the aggregate value of the Common
Collateral is sufficient (for this purpose ignoring all claims held by the Second Lien Collateral
Agent on behalf of the Noteholders), the First Lien Creditors shall be entitled to receive, in
addition to amounts distributed to them in respect of principal, pre-petition interest and other
claims, all amounts owing in respect of post-petition interest at the relevant contract rate (even
though such claims may or may not be allowed in whole or in part in the respective bankruptcy,
insolvency, reorganization, receivership or similar proceeding) before any distribution is made in
respect of the claims held by the Second Lien Collateral Agent, on behalf of the Noteholders, with
the Second Lien Collateral Agent and each of the Noteholders hereby acknowledging and agreeing to
turn over to the First Lien Collateral Agent for the benefit of holders of the Lender Claims all
amounts otherwise received or receivable by them to the extent needed to effectuate the intent of
this sentence even if such turnover of amounts has the effect of reducing the amount of the claim
of the Noteholders).

     6.11 Proofs of Claim. Subject to the limitations set forth in this Agreement, the First Lien
Collateral Agent may file proofs of claim and other pleadings and motions with respect to any
Lender Claims, the Indenture or the Common Collateral in any Insolvency or Liquidation Proceeding
with respect to CSC or any of its subsidiaries. If a proper proof of claim has not been filed in
the form required in such Insolvency or Liquidation Proceeding at least ten (10) days prior to the
expiration of the time for filing thereof, the First Lien Collateral Agent shall have the right
(but not the duty) to file an appropriate claim for and on behalf of the Noteholders with respect
to the Indenture or any of the Common Collateral; provided that the First Lien Collateral Agent
shall have provided written notice of its intent to file a proof of claim on behalf of the
Noteholders to the Second Lien Collateral Agent at least the lesser of (x) three (3) days and (y)
the number of days remaining in the ten (10) day period described in this sentence, in each case
before so filing. In furtherance of the foregoing, the Second Lien Collateral Agent hereby agrees
upon request of the First Lien Collateral Agent, to promptly execute and deliver any document or
instrument provided to it that the First Lien Collateral Agent is required or permitted to deliver
pursuant to this Section 6.11.

Section 7. Reliance; Waivers; etc.

     7.1 Reliance. The consent by the First Lien Creditors to the execution and delivery of the
Noteholder Documents and the grant to the Second Lien Collateral Agent, on behalf of the

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Noteholders, of a Lien on the Common Collateral and all loans and other extensions of credit
made or deemed made on and after the date hereof by the First Lien Creditors to the Obligors shall
be deemed to have been given and made in reliance upon this Agreement. The Second Lien Collateral
Agent, on behalf of itself and the Noteholders, acknowledges that it and the Noteholders have,
independently and without reliance on the First Lien Collateral Agent or any other First Lien
Creditor, and based on documents and information deemed by them appropriate, made their own credit
analysis and decision to enter into the Indenture, this Agreement and the transactions contemplated
hereby and thereby and they will continue to make their own credit decision in taking or not taking
any action under the Indenture or this Agreement.

     7.2 No Warranties or Liability. The Second Lien Collateral Agent, on behalf of itself and
Noteholders, acknowledges and agrees that each of the First Lien Collateral Agent and the other
First Lien Creditors has made no express or implied representation or warranty, including with
respect to the execution, validity, legality, completeness, collectibility or enforceability of any
of the Loan Documents. The First Lien Creditors will be entitled to manage and supervise their
respective loans and extensions of credit to Borrower in accordance with law and as they may
otherwise, in their sole discretion, deem appropriate, and the First Lien Creditors may manage
their loans and extensions of credit without regard to any rights or interests that the Second Lien
Collateral Agent or any of the Noteholders have in the Common Collateral or otherwise, except as
otherwise provided in this Agreement. Neither the First Lien Collateral Agent nor any First Lien
Creditor shall have any duty to the Second Lien Collateral Agent or any of the Noteholders to act
or refrain from acting in a manner which allows, or results in, the occurrence or continuance of an
event of default or default under any agreements with CSC or any of its subsidiaries (including the
Noteholder Documents), regardless of any knowledge thereof which the First Lien Collateral Agent or
any First Lien Creditor may have or be charged with.

7.3 No Waiver of Lien Priorities.

     (a) To the fullest extent permitted under applicable law, no right of the First Lien
Creditors, the First Lien Collateral Agent or any of them to enforce any provision of this
Agreement shall at any time in any way be prejudiced or impaired by any act or failure to act on
the part of CSC or any of its subsidiaries or by any act or failure to act by any First Lien
Creditor, or by any noncompliance by any Person with the terms, provisions and covenants of this
Agreement, any of the Loan Documents or any of the Noteholder Documents, regardless of any
knowledge thereof which the First Lien Collateral Agent or the other First Lien Creditors, or any
of them, may have or be otherwise charged with;

     (b) Without in any way limiting the generality of the foregoing paragraph (but subject to the
rights of the Obligors under the Loan Documents), the First Lien Creditors and any of them may, to
the fullest extent permitted under applicable law, at any time and from time to time, without the
consent of, or notice to, the Second Lien Collateral Agent or any Noteholder, without incurring any
liabilities to the Second Lien Collateral Agent or any Noteholder and without impairing or
releasing the lien priorities and other benefits provided in this Agreement (even if any right of
subrogation or other right or remedy of the Second Lien Collateral Agent or any Noteholder is
affected, impaired or extinguished thereby) do any one or more of the following:

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     (i) make loans and advances to any Obligor or issue, guaranty or obtain letters of
credit for the account of any Obligor or otherwise extend credit to any Obligor, in any
amount (subject to the limits set forth in the Indenture) and on any terms, whether pursuant
to a commitment or as a discretionary advance (subject to the limits set forth in the
Indenture) and whether or not any default or event of default or failure of condition is
then continuing;

     (ii) change the manner, place or terms of payment or change or extend the time of
payment of, or renew, exchange, amend, increase (subject to the limits set forth in the
Indenture) or alter the terms of, any of the Lender Claims or any Lien on any Lender
Collateral (including, without limitation, the Common Collateral) or guaranty thereof or any
liability of the Obligors, or any liability incurred directly or indirectly in respect
thereof (including any increase in (subject to the limits set forth in the Indenture) or
extension) of the Lender Claims, without any restriction as to the amount, tenor or terms of
any such increase (subject to the limits set forth in the Indenture) or extension or
otherwise amend, renew, exchange, extend, modify or supplement in any manner any Liens held
by the First Lien Creditors, the Lender Claims or any of the Loan Documents;

     (iii) subject, in the case of Pledged Collateral, to Section 5.4, sell, exchange,
release, surrender, realize upon, enforce or otherwise deal with in any manner and in any
order any part of the Lender Collateral or any liability of any Obligor to the First Lien
Creditors, or any liability incurred directly or indirectly in respect thereof;

     (iv) settle or compromise any Lender Claim or any other liability of any Obligor or any
security therefor or any liability incurred directly or indirectly in respect thereof and
apply any sums by whomsoever paid and however realized to any liability (including the
Lender Claims) in any manner or order;

     (v) exercise or delay in or refrain from exercising any right or remedy against any
Obligor or any security or any other Person, elect any remedy and otherwise deal freely with
the Obligors and the Lender Collateral and any security or any liability of any Obligor to
the First Lien Creditors or any liability incurred directly or indirectly in respect
thereof;

     (vi) release or discharge any Lender Claims or any guaranty thereof or any agreement or
obligation of any Obligor or any other person or entity with respect thereto;

     (vii) take or fail to take any Lender Lien or any other collateral security for any
Lender Claims or take or fail to take any action which may be necessary or appropriate to
ensure that any Lender Lien or any other Lien upon any property is duly enforceable or
perfected or entitled to priority as against any other Lien or to ensure that any proceeds
of any property subject to any Lien are applied to the payment of any Lender Claim or any
other obligation secured thereby; or

     (viii) release, discharge or permit the lapse of any or all Lender Liens or any other
Liens upon any property at any time securing any Lender Claims;

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     (c) The Second Lien Collateral Agent, on behalf of itself and the Noteholders, also agrees, to
the fullest extent permitted under applicable law, that no First Lien Creditor shall have any
liability to the Second Lien Collateral Agent or any Noteholder, and the Second Lien Collateral
Agent, on behalf of itself and the Noteholders, to the fullest extent permitted under applicable
law, hereby waives any claim against any First Lien Creditor, arising out of any and all actions
which such First Lien Creditor may take or permit or omit to take with respect to: (i) the Loan
Documents, (ii) the collection of the Lender Claims or (iii) the foreclosure upon, or sale,
liquidation or other disposition of, the Lender Collateral. The Second Lien Collateral Agent, on
behalf of itself and the Noteholders, agrees that neither the First Lien Collateral Agent nor any
other First Lien Creditor shall have any duty to them, express or implied, fiduciary or otherwise,
in respect of the maintenance or preservation of the Lender Collateral, the Lender Claims or
otherwise; and

     (d) The Second Lien Collateral Agent, on behalf of itself and the Noteholders, agrees not to
assert and hereby waives, to the fullest extent permitted by law, any right to demand, request,
plead or otherwise assert, or otherwise claim the benefit of, any marshalling, appraisal, valuation
or other similar right that may otherwise be available under applicable law or any other similar
rights a junior secured creditor may have under applicable law.

     7.4 Obligations Unconditional. All rights, interests, agreements and obligations of the First
Lien Collateral Agent and the other First Lien Creditors and the Second Lien Collateral Agent and
the Noteholders, respectively, hereunder shall remain in full force and effect irrespective of:

     (a) any lack of validity or enforceability of any Loan Documents or any Noteholder
Documents or any setting aside or avoidance of any Lender Lien;

     (b) any change in the time, manner or place of payment of, or in any other terms of,
all or any of the Lender Claims or Noteholder Claims, or any amendment or waiver or other
modification, including any increase in the amount thereof, whether by course of conduct or
otherwise, of the terms of the Credit Agreement or any other Credit Document or of the terms
of the Indenture or any other Noteholder Document;

     (c) any exchange of any security interest in any Common Collateral or any other
collateral, or any amendment, waiver or other modification, whether in writing or by course
of conduct or otherwise, of all or any of the Lender Claims or Noteholder Claims or any
guarantee thereof;

     (d) the commencement of any Insolvency or Liquidation Proceeding in respect of CSC or
any of its subsidiaries; or

     (e) any other circumstances which otherwise might constitute a defense available to, or
a discharge of, any Obligor in respect of the Lender Claims, or of the Second Lien
Collateral Agent, any Noteholder, the First Lien Collateral Agent or any other First Lien
Creditor in respect of this Agreement.

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     Section 8.
Miscellaneous.

     8.1 Conflicts. In the event of any conflict between the provisions of this Agreement and the
provisions of the Loan Documents or the Noteholder Documents, the provisions of this Agreement
shall govern.

     8.2 Continuing Nature of This Agreement. This Agreement shall continue to be effective until
the Discharge of Lender Claims shall have occurred. This is a continuing agreement of lien
priority. The Second Lien Collateral Agent, on behalf of itself and the Noteholders, hereby waives
any right it may have under applicable law to revoke this Agreement or any of the provisions of
this Agreement. The terms of this Agreement shall survive, and shall continue in full force and
effect, in any Insolvency or Liquidation Proceeding with respect to CSC or any of its subsidiaries.

     8.3 Amendments; Waivers. No amendment, modification or waiver of any of the provisions of
this Agreement shall be deemed to be made unless the same shall be in writing signed by the Second
Lien Collateral Agent, the First Lien Collateral Agent and the Guarantor and each waiver, if any,
shall be a waiver only with respect to the specific instance involved and shall in no way impair
the rights of the parties making such waiver or the obligations of the other parties to such party
in any other respect or at any other time.

     8.4 Information Concerning Financial Condition of CSC and Its Subsidiaries. The First Lien
Collateral Agent and the other First Lien Creditors, on the one hand, and the Second Lien
Collateral Agent and the Noteholders, on the other hand, shall each be responsible for keeping
themselves informed of (a) the financial condition of CSC and its subsidiaries, the Guarantor, and
all endorsers and/or guarantors of the Noteholder Claims or the Lender Claims and (b) all other
circumstances bearing upon the risk of nonpayment of the Noteholder Claims or the Lender Claims.
Neither the First Lien Collateral Agent nor any other First Lien Creditors shall have any duty to
advise the Second Lien Collateral Agent or any Noteholder of information known to it or them
regarding such condition or any such circumstances or otherwise. In the event the First Lien
Collateral Agent or any of the other First Lien Creditors, in its or their sole discretion,
undertakes at any time or from time to time to provide any such information to the Second Lien
Collateral Agent or any Noteholder, it or they shall be under no obligation (x) to provide any
additional information or to provide any such information on any subsequent occasion, (y) to
undertake any investigation or (z) to disclose any information which, pursuant to accepted or
reasonable commercial finance practices, such party wishes to maintain confidential.

     8.5 Successor Second Lien Collateral Agent. Each successor Second Lien Collateral Agent under
the Indenture shall execute and deliver a counterpart of and become a party to this Agreement, and
no replacement or resignation of the Second Lien Collateral Agent shall be effective until its
successor shall have executed and delivered a counterpart of this Agreement.

     8.6 Application of Payments. All payments received by the First Lien Creditors may be
applied, reversed and reapplied, in whole or in part, to such part of the Lender Claims as the
First Lien Creditors, in their sole discretion, deem appropriate. The Second Lien Collateral
Agent, on behalf of itself and the Noteholders, assents to any extension or postponement of the
time of payment of the Lender Claims or any part thereof and to any other indulgence with respect

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 thereto, to any substitution, exchange or release of any security which may at any time
secure any part of the Lender Claims and to the addition or release of any other Person primarily
or secondarily liable therefor.

     8.7 Governing Law; Submission to Jurisdiction; Venue.

     (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED
IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR
OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK. BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH OF THE GUARANTOR, THE FIRST LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE OTHER
FIRST LIEN CREDITORS AND THE SECOND LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE NOTEHOLDERS,
HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY OR INTERESTS IN PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH OF THE GUARANTOR,
THE FIRST LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE OTHER FIRST LIEN CREDITORS AND THE
SECOND LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE NOTEHOLDERS, FURTHER IRREVOCABLY CONSENTS
TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY PARTY TO
THIS AGREEMENT AT ITS ADDRESS SET FORTH BENEATH ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME
EFFECTIVE 30 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE FIRST LIEN
COLLATERAL AGENT UNDER THIS AGREEMENT OR ANY FIRST LIEN SECURED CREDITOR TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY
PARTY IN ANY OTHER JURISDICTION.

     (b) EACH OF THE GUARANTOR, THE FIRST LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE OTHER
FIRST LIEN CREDITORS AND THE SECOND LIEN COLLATERAL AGENT, ON BEHALF OF ITSELF AND THE NOTEHOLDERS,
HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE
OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT
BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND
AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     8.8 Waiver of Jury Trial. THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING

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OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE
OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF SUCH PARTIES
RELATING THERETO. EACH OF THE PARTIES HERETO ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND
SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT
TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE EACH PARTY
ENTERING INTO THIS AGREEMENT.

     8.9 Notices. All notices to the Noteholders and the First Lien Creditors permitted or
required under this Agreement may be sent to the Second Lien Collateral Agent and the First Lien
Collateral Agent, respectively. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and may be personally
served, telecopied, electronically mailed or sent by courier service or U.S. mail and shall be
deemed to have been given when delivered in person or by courier service, upon receipt of a
telecopy or electronic mail or four (4) Business Days after deposit in the U.S. mail (registered or
certified, with postage prepaid and properly addressed). For the purposes hereof, the addresses of
the parties hereto shall be as set forth below each party’s name on the signature pages hereto, or,
as to each party, at such other address as may be designated by such party in a written notice to
all of the other parties.

     8.10 Further Assurances. Each party hereto agrees that it shall take such further action and
shall execute and deliver such additional documents and instruments (in recordable form, if
requested) as the requesting party may reasonably request to effectuate the terms of and the lien
priorities contemplated by this Agreement.

     8.11 Subrogation. The Second Lien Collateral Agent, on behalf of itself and the Noteholders,
hereby waives any rights of subrogation it may acquire as a result of any payment hereunder until
the Discharge of Lender Claims has occurred.

     8.12 Binding on Successors and Assigns; No Third Party Beneficiaries. This Agreement shall be
binding upon and inure to the benefit of the First Lien Collateral Agent, the other First Lien
Creditors, the Second Lien Collateral Agent, the Noteholders and their respective successors and
assigns. No other Person shall have or be entitled to assert rights or benefits hereunder. This
Agreement shall be binding upon the Guarantor and its successors and assigns; provided that the
Guarantor or any successor or assign thereof shall be entitled to enforce any provision of this
Agreement (other than any provision hereof expressly preserving any right of the Guarantor under
any Loan Document or Noteholder Document).

     8.13 Specific Performance. Each of the First Lien Collateral Agent and the Second Lien
Collateral Agent may demand specific performance of this Agreement; provided that the Second Lien
Collateral Agent may not demand specific performance hereunder from any Obligor unless and until
the Discharge of Lender Claims has occurred. The Second Lien Collateral Agent, on behalf of itself
and the Noteholders, hereby irrevocably waives any defense based on the adequacy of a remedy at law
and any other defense which might be asserted to bar the remedy of specific performance in any
action which may be brought by the First Lien Collateral Agent.

-21-

 

     8.14 Section Titles. The section titles contained in this Agreement are and shall be without
substantive meaning or content of any kind whatsoever and are not a part of this Agreement.

     8.15 Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be an original and all of which shall together constitute one and the same document.
Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be
effective as delivery of a manually executed counterpart of this Agreement.

     8.16 Authorization. By its signature, each Person executing this Agreement on behalf of a
party hereto represents and warrants to the other parties hereto that it is duly authorized to
execute this Agreement.

     8.17 Effectiveness. This Agreement shall become effective when executed and delivered by the
parties listed below. This Agreement shall be effective both before and after the commencement of
any Insolvency or Liquidation Proceeding with respect to CSC or any of its subsidiaries. All
references to a Person or any of its subsidiaries shall include such Person or any of its
subsidiaries as debtor and debtor-in-possession and any receiver or trustee for such Obligor (as
the case may be) in any Insolvency or Liquidation Proceeding with respect to such Person.

     8.18 Provisions Solely to Define Relative Rights. The provisions of this Agreement are and
are intended solely for the purpose of defining the relative rights of the First Lien Creditors on
the one hand and the Noteholders on the other hand with respect to the Common Collateral. None of
CSC or any of its subsidiaries or any other creditor thereof shall have any rights hereunder.
Nothing in this Agreement is intended to or shall impair the obligations of the Guarantor or any of
its subsidiaries, which are absolute and unconditional, to pay the Obligations and the Indenture as
and when the same shall become due and payable in accordance with their terms.

     8.19 Incorporation by Reference. In connection with its appointment and acting hereunder, the
Second Lien Collateral Agent shall be entitled to all rights, privileges, benefits, protections,
immunities and indemnities provided to it under the Indenture.

-22-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	First Lien Collateral Agent:
	 
	 	 	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS,

  as First Lien Collateral Agent
	 
	 	 	 	 	 	 
	

	 	By:
	 	s/s Carin M. Keegan	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Carin M. Keegan

Title: Vice President
	 	 

	 	 	 	 	 
	

	 	Address:
	 	60 Wall Street

New York, NY 10005

-23-

 

EXECUTION VERSION

	 	 	 	 	 	 	 
	 	 	Second Lien Collateral Agent:
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,

     as Second Lien Collateral Agent
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Julie Salovitch-Miller	 	 
	

	 	 	 	
	 
	

	 	 	 	Name: Julie Salovitch-Miller

Title: Vice President	 	 

	 	 	 	 	 
	

	 	Address:
	 	101 Barclay Street

Floor 8W

New York, NY 10286

Attn: Corporate Trust Administration

Facsimile Number: (212) 815-5707

-24-

 

EXECUTION VERSION

	 	 	 	 	 	 	 
	 	 	COINMACH LAUNDRY CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Robert M. Doyle	 	 
	

	 	 	 	
	 	 
	

	 	 	 	Name: Robert M. Doyle

Title: Chief Financial Officer	 	 

	 	 	 	 	 
	

	 	Address:
	 	303 Sunnyside Boulevard,

Suite 70

Plainview, NY 11803

(516) 349-8535

Attn: Chief Financial Officer

-25-

 

EXECUTION VERSION

ACKNOWLEDGED BY:

COINMACH CORPORATION

	 	 	 	 	 
	By:

	 	/s/ Robert M. Doyle
	 	 
	

	 	
	 	 
	

	 	Name: Robert M. Doyle

Title: Chief Financial Officer	 	 

COINMACH SERVICE CORP.

	 	 	 	 	 
	By:

	 	/s/ Robert M. Doyle
	 	 
	

	 	
	 	 
	

	 	Name: Robert M. Doyle

Title: Chief Financial Officer	 	 

-26-

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