Document:

Exhibit
4.2

 

EXECUTION COPY

 

 

ASSUMPTION AGREEMENT

 

ASSUMPTION AGREEMENT,
dated as of April 7, 2004 (this “Agreement”), between CDRV
Acquisition Corporation, a Delaware corporation (“Assignor”), and VWR
International, Inc., a Delaware corporation (“Assignee”), and consented
to by Deutsche Bank AG, New York Branch, as administrative agent (in such
capacity, the “Administrative Agent”) for the banks and other financial
institutions (the “Lenders”) from time to time parties to the Credit
Agreement (as hereinafter defined).

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS, Assignor and the
Administrative Agent are parties to the Credit Agreement, dated as of
April 7, 2004 (as amended, supplemented, waived or otherwise modified from
time to time, the “Credit Agreement”), among Assignor, the Foreign
Subsidiary Borrowers, the Lenders, the Administrative Agent, Citicorp North
America, Inc., as syndication agent, and Bank of America, N.A., BNP Paribas and
Barclays Bank PLC, as documentation agents; and

 

WHEREAS, pursuant to the
Credit Agreement, Assignee desires to accept and assume all of the obligations
and liabilities of Assignor under the Credit Agreement.

 

NOW, THEREFORE, the
parties hereto hereby agree as follows:

 

1.                                       Defined
Terms.  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

2.                                       Assignment
of Rights and Obligations. 
Effective as of immediately after the Acquisition and the Mergers on the
Closing Date, Assignor hereby irrevocably assigns, transfers and conveys to
Assignee all of Assignor’s rights, obligations, covenants, agreements, duties
and liabilities as “Parent Borrower” under or with respect to the Credit
Agreement, any Notes, any Letters of Credit, any of the other Loan Documents
and any and all certificates and other documents executed by Assignor in
connection therewith; provided, however, that Assignor
understands and agrees that such assignment, transfer and conveyance shall not
be effective with respect to, or in any way release Assignor from any of its
obligations, covenants, agreements, duties and liabilities under or with
respect to this Agreement.

 

3.                                       Assumption
of Agreements and Obligations. 
Effective as of immediately after the Acquisition and the Mergers on the
Closing Date, Assignee hereby expressly assumes, confirms and agrees to perform
and observe all of the indebtedness, obligations (including, without
limitation, all obligations in respect of the Loans and the

 

 

Letters of Credit),
covenants, agreements, terms, conditions, duties and liabilities of Assignor as
“Parent Borrower” under or with respect to the Credit Agreement, any Notes, any
Letters of Credit, and any of the other Loan Documents as fully as if Assignee
were originally the obligor in respect thereof and the signatory thereto; provided,
however, that Assignor understands and agrees that such assumption shall
not be effective with respect to, or in any way obligate Assignee to perform
and observe any obligations, covenants, agreements, terms, conditions, duties
or liabilities of Assignor under or with respect to this Agreement.  At all times after the effectiveness of such
assumption, with respect to all Extensions of Credit made to or for the account
of Assignor prior to the effectiveness of such assumption, Assignee shall have
the obligations of, and Assignor shall no longer be or have the obligations of,
the “Parent Borrower” within the meaning of and for all purposes of the Credit
Agreement.  In addition, at all times
after the effectiveness of such assumption, all references to the “Parent
Borrower” in the Credit Agreement, any Notes, any Letters of Credit, any of the
other Loan Documents and any and all certificates and other documents executed
by Assignor in connection therewith shall be deemed to be references to
Assignee.

 

4.                                       Amendment
to Credit Agreement.  The Credit
Agreement is hereby deemed to be amended to the extent, but only to the extent,
necessary to effect the assignment and assumption provided for hereby.  Except as expressly amended, modified and
supplemented hereby, the provisions of the Credit Agreement and the other Loan
Documents are and shall remain in full force and effect.

 

5.                                       GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

6.                                       Counterparts.  This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts,
and all of said counterparts take together shall be deemed to constitute one
and the same instrument.  A set of the
copies of this Agreement signed by all the parties shall be lodged with
Assignor, Assignee and the Administrative Agent.  This Agreement may be delivered by facsimile transmission of the
relevant signature pages hereof.

 

7.                                       Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

8.                                       Successors
and Assigns.  This Agreement shall
be binding upon and inure to the benefit of Assignor and Assignee and their
respective successors and

 

2

 

assigns, and the
Administrative Agent and the Lenders and their respective successors,
indorsees, transferees and assigns.

 

3

 

EXECUTION COPY

 

 

IN WITNESS
WHEREOF, the parties have caused this Agreement to be duly executed and
delivered by their respective proper and duly authorized officers as of the day
and year first above written.

 

 

	
   

  	
  CDRV ACQUISITION
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GEORGE K. JAQUETTE

  	
   

  
	
   

  	
   

  	
  Name: George K.
  Jaquette

  
	
   

  	
   

  	
  Title: Vice President
  and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VWR INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEPHEN J. KUNST

  	
   

  
	
   

  	
   

  	
  Name: Stephen J. Kunst

  
	
   

  	
   

  	
  Title: Senior Vice
  President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  Consented to:

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE BANK AG, NEW
  YORK

  BRANCH, as Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ DIANE F. ROLFE

  	
   

  	
   

  
	
   

  	
  Name: Diane F. Rolfe

  	
   

  
	
   

  	
  Title: Vice President

  	
   

  
							

 

 

AFFIRMATION
OF GUARANTEE AND COLLATERAL AGREEMENT

 

The undersigned, each a
Granting Party and Pledgor under the Guarantee and Collateral Agreement, each
hereby (i) acknowledge and consent to the execution, delivery and performance
of each of the above parties to this Assumption Agreement, and (ii) reaffirm
and agree that the respective guaranty, pledges and grants of security under
the Guarantee and Collateral Agreement to which the undersigned is party and
all other documents and agreements executed and delivered by the undersigned to
the Administrative Agent and the Lenders in connection with the Credit
Agreement are in full force and effect, without defense, offset or
counterclaim.

 

 

Dated
as of: April 7, 2004

 

 

	
  VWR, Inc.

  	
  SCIENCE KIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ DEBORAH A. CORR

  	
   

  	
  By:

  	
  /s/ DEBORAH A. CORR

  	
   

  
	
   

  	
  Name: Deborah A. Corr

  	
   

  	
  Name: Deborah A. Corr

  
	
   

  	
  Title: Treasurer

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  WARD’S NATURAL SCIENCE

  ESTABLISHMENT, INC. (formerly

  known as KDI WARD’S NATURAL

  SCIENCE ESTABLISHMENT, INC.)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ DEBORAH A. CORR

  	
   

  	
   

  
	
   

  	
  Name: Deborah A. Corr

  	
   

  
	
   

  	
  Title: SecretaryExhibit 4.3

 

EXECUTION COPY

 

 

 

 

GUARANTEE AND COLLATERAL
AGREEMENT

 

 

made by

 

 

CDRV HOLDINGS, INC.,

 

CDRV ACQUISITION CORPORATION

(The Rights and Obligations of which Hereunder are to be Assumed by

VWR INTERNATIONAL, INC.),

 

 

and certain of its
Subsidiaries

 

 

in favor of

 

 

DEUTSCHE BANK AG, NEW YORK
BRANCH,

as Administrative Agent

 

 

Dated as of April 7, 2004

 

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1 DEFINED TERMS

  	
   

  
	
  1.1 Definitions

  	
   

  
	
  1.2 Other Definitional Provisions

  	
   

  
	
   

  	
   

  
	
  SECTION 2 GUARANTEE

  	
   

  
	
  2.1 Guarantee

  	
   

  
	
  2.2 Right of Contribution

  	
   

  
	
  2.3 No Subrogation

  	
   

  
	
  2.4 Amendments, etc. with respect to the Obligations

  	
   

  
	
  2.5 Guarantee Absolute and Unconditional

  	
   

  
	
  2.6 Reinstatement

  	
   

  
	
  2.7 Payments

  	
   

  
	
   

  	
   

  
	
  SECTION 3 GRANT OF SECURITY INTEREST

  	
   

  
	
  3.1 Grant

  	
   

  
	
  3.2 Pledged Collateral

  	
   

  
	
  3.3 Certain Exceptions

  	
   

  
	
   

  	
   

  
	
  SECTION 4 REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  4.1 Representations and Warranties of Each Guarantor

  	
   

  
	
  4.2 Representations and Warranties of Each
  Grantor

  	
   

  
	
  4.3 Representations and Warranties of Each
  Pledgor

  	
   

  
	
   

  	
   

  
	
  SECTION 5 COVENANTS

  	
   

  
	
  5.1 Covenants of Each Guarantor

  	
   

  
	
  5.2 Covenants of Each Grantor

  	
   

  
	
  5.3 Covenants of Each Pledgor

  	
   

  
	
  5.4 Covenants of Holding

  	
   

  
	
   

  	
   

  
	
  SECTION 6 REMEDIAL PROVISIONS

  	
   

  
	
  6.1 Certain Matters Relating to Accounts

  	
   

  
	
  6.2 Communications with Obligors; Grantors
  Remain Liable

  	
   

  
	
  6.3 Pledged Stock

  	
   

  
	
  6.4 Proceeds to be Turned Over To Administrative Agent

  	
   

  
	
  6.5 Application of Proceeds

  	
   

  
	
  6.6 Code and Other Remedies

  	
   

  
	
  6.7 Registration Rights

  	
   

  
	
  6.8 Waiver; Deficiency

  	
   

  
	
   

  	
   

  
	
  SECTION 7 THE ADMINISTRATIVE AGENT

  	
   

  
	
  7.1 Administrative Agent’s Appointment as
  Attorney-in-Fact, etc.

  	
   

  
	
  7.2 Duty of Administrative Agent

  	
   

  
	
  7.3 Execution of Financing Statements

  	
   

  

 

i

 

	
  7.4 Authority of Administrative Agent

  	
   

  
	
  7.5 Right of Inspection

  	
   

  
	
   

  	
   

  
	
  SECTION 8 NON-LENDER SECURED PARTIES

  	
   

  
	
  8.1 Rights to Collateral

  	
   

  
	
  8.2 Appointment of Agent

  	
   

  
	
  8.3 Waiver of Claims

  	
   

  
	
   

  	
   

  
	
  SECTION 9 MISCELLANEOUS

  	
   

  
	
  9.1 Amendments in Writing

  	
   

  
	
  9.2 Notices

  	
   

  
	
  9.3 No Waiver by Course of Conduct;
  Cumulative Remedies

  	
   

  
	
  9.4 Enforcement Expenses; Indemnification

  	
   

  
	
  9.5 Successors and Assigns

  	
   

  
	
  9.6 Set-Off

  	
   

  
	
  9.7 Counterparts

  	
   

  
	
  9.8 Severability

  	
   

  
	
  9.9 Section Headings

  	
   

  
	
  9.10 Integration

  	
   

  
	
  9.11 GOVERNING LAW

  	
   

  
	
  9.12 Submission To Jurisdiction; Waivers

  	
   

  
	
  9.13 Acknowledgments

  	
   

  
	
  9.14 WAIVER OF JURY TRIAL

  	
   

  
	
  9.15 Additional Granting Parties

  	
   

  
	
  9.16 Releases

  	
   

  
	
  9.17 Judgment

  	
   

  

 

	
  SCHEDULES

  
	
   

  
	
  1

  	
  Notice Addresses of
  Guarantors

  
	
  2

  	
  Pledged Securities

  
	
  3

  	
  Perfection Matters

  
	
  4

  	
  Location of Jurisdiction
  of Organization

  
	
  5

  	
  Intellectual Property

  
	
  6

  	
  Contracts

  
	
  7

  	
  Commercial Tort Claims

  
	
  8

  	
  Deposit Accounts

  
	
   

  	
   

  
	
  ANNEXES

  
	
   

  
	
  1

  	
  Acknowledgement and
  Consent of Issuers who are not Granting Parties

  
	
  2

  	
  Assumption Agreement

  
	
  3

  	
  Deposit Account Control
  Agreement

  

 

ii

 

GUARANTEE
AND COLLATERAL AGREEMENT

 

GUARANTEE AND COLLATERAL
AGREEMENT, dated as of April 7, 2004, made by CDRV Holdings, Inc., a Delaware
corporation (“Holding”), CDRV Acquisition Corporation, a Delaware
corporation (“Acquisition Corp.” and, together with any assignee of, or
successor by merger to, Acquisition Corp.’s rights and obligations hereunder as
provided herein, the “Parent Borrower”), the Foreign Subsidiary
Borrowers from time to time parties thereto (the “Foreign Subsidiary
Borrowers”), and certain other Subsidiaries of the Parent Borrower that are
signatories hereto, in favor of Deutsche Bank AG, New York Branch, as
administrative agent (in such capacity, the “Administrative Agent”) for
the banks and other financial institutions (collectively, the “Lenders”;
individually, a “Lender”) from time to time parties to the Credit
Agreement, dated as of April 7, 2004 (as amended, amended and restated, waived,
supplemented or otherwise modified from time to time, together with any
agreement extending the maturity of, or restructuring, refunding, refinancing
or increasing the Indebtedness under such agreement or successor agreements,
the “Credit Agreement”), among the Parent Borrower, the Foreign
Subsidiary Borrowers, the Administrative Agent, Citicorp North America, Inc.,
as syndication agent, and Bank of America, N.A., BNP Paribas and Barclays Bank
PLC, as documentation agents.

 

W
I T N E S S E T H:

 

WHEREAS, the Parent Borrower
is a member of an affiliated group of companies that includes Holding, the
Parent Borrower’s Domestic Subsidiaries that are party hereto and any other
Subsidiary of the Parent Borrower (other than any Receivables Subsidiary) that
becomes a party hereto from time to time after the date hereof (the Borrowers,
Holding and such Subsidiaries, collectively, the “Granting Parties”);

 

WHEREAS, pursuant to the
Credit Agreement, the Lenders have severally agreed to make extensions of
credit to the Borrowers upon the terms and subject to the conditions set forth
therein;

 

WHEREAS, the proceeds of the
extensions of credit under the Credit Agreement will be used in part to enable
the Borrowers to make valuable transfers to one or more of the other Granting
Parties in connection with the operation of their respective businesses;

 

WHEREAS, the Borrowers and
the other Granting Parties are engaged in related businesses, and each such
Granting Party will derive substantial direct and indirect benefit from the
making of the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a condition
to the obligation of the Lenders to make their respective extensions of credit
under the Credit Agreement that the Granting Parties shall execute and deliver
this Agreement to the Administrative Agent for the benefit of the Secured
Parties.

 

NOW, THEREFORE, in
consideration of the premises and to induce the Administrative Agent and the
Lenders to enter into the Credit Agreement and to induce the Lenders to make
their respective extensions of credit to the Borrowers thereunder, each
Granting

 

 

Party hereby agrees with the Administrative
Agent, for the ratable benefit of the Secured Parties (as defined below), as
follows:

 

SECTION 1  DEFINED TERMS

 

1.1
Definitions.  (a) Unless otherwise defined herein,
terms defined in the Credit Agreement and used herein shall have the meanings
given to them in the Credit Agreement, and the following terms that are defined
in the Code (as in effect on the date hereof) are used herein as so defined:
Chattel Paper, Documents, Electronic Chattel Paper, Equipment, Farm Products
and Fixtures.

 

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

 

“Accounts”:  all accounts (as defined in the Code) of
each Grantor, including, without limitation, all Accounts (as defined in the
Credit Agreement) and Accounts Receivable of such Grantor, but in any event
excluding all Accounts that have been sold or otherwise transferred (and not
transferred back to a Grantor) in connection with a Permitted Receivables
Transaction.

 

“Accounts
Receivable”:  any right to payment
for goods sold or leased or for services rendered which is not evidenced by an
instrument (as defined in the Code) or Chattel Paper.

 

“Adjusted
Net Worth”:  of any Guarantor at any
time, shall mean the greater of (x) $0 and (y) the amount by which the fair
saleable value of such Guarantor’s assets on the date of the respective payment
hereunder exceeds its debts and other liabilities (including contingent
liabilities, but without giving effect to any of its obligations under this
Agreement or any other Loan Document, or pursuant to its guarantee with respect
to any Indebtedness then outstanding pursuant to clauses (b) and (c) of
subsection 8.2 of the Credit Agreement) on such date.

 

“Administrative
Agent”:  as defined in the Preamble
hereto.

 

“Agreement”:  this Guarantee and Collateral Agreement, as
the same may be amended, restated, supplemented, waived or otherwise modified
from time to time.

 

“Bankruptcy
Case”:  (i) Holding or any of its
Subsidiaries commencing any case, proceeding or other action (A) under any
existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, conservatorship or relief of debtors,
seeking to have an order for relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (B) seeking appointment of a receiver,
trustee, custodian, conservator or other similar official for it or for all or
any substantial part of its assets, or Holding or any of its Subsidiaries
making a general assignment for the benefit of its creditors; or (ii) there
being commenced against Holding or any of its Subsidiaries any case, proceeding
or other action of a nature referred to in clause (i) above which (A) results
in the entry of an 

 

2

 

order
for relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 60 days.

 

“Borrower
Obligations”: with respect to any Borrower, the collective reference to:
all obligations and liabilities of such Borrower in respect of the unpaid
principal of and interest on (including, without limitation, interest accruing
after the maturity of the Loans and Reimbursement Obligations and interest
accruing after the filing of any petition in bankruptcy, or the commencement of
any insolvency, reorganization or like proceeding, relating to such Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) the Loans, the Reimbursement Obligations, and all other
obligations and liabilities of such Borrower to the Secured Parties, whether
direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, which may arise under, out of, or in connection
with, the Credit Agreement, the Loans, the Letters of Credit, the other Loan
Documents, any Interest Rate Protection Agreement or Permitted Hedging
Arrangement entered into with any Person who was at the time of entry into such
agreement a Lender or an affiliate of any Lender, any Guarantee Obligation of
Holding or any of its Subsidiaries referred to in subsections 8.4(b) of the
Credit Agreement as to which any Secured Party is a beneficiary, the provision
of cash management services by any Lender or an Affiliate thereof to the Parent
Borrower or any Subsidiary thereof, or any other document made, delivered or
given in connection therewith, in each case whether on account of principal,
interest, reimbursement obligations, amounts payable in connection with the
provision of such cash management services or a termination of any transaction
entered into pursuant to any such Interest Rate Protection Agreement or
Permitted Hedging Arrangement, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all reasonable fees, expenses and disbursements
of counsel to the Administrative Agent or any other Secured Party that are
required to be paid by such Borrower pursuant to the terms of the Credit
Agreement or any other Loan Document).

 

“Code”:  the Uniform Commercial Code as from time to
time in effect in the State of New York.

 

“Collateral”:  as defined in Section 3; provided
that, for purposes of subsection 6.5, Section 8 and subsection 9.16(d),
“Collateral” shall have the meaning assigned to such term in the Credit
Agreement.

 

“Collateral
Account Bank”:  Deutsche Bank AG,
New York Branch or an Affiliate thereof or another bank which at all times is a
Lender as selected by the relevant Grantor and consented to in writing by the
Administrative Agent (such consent not to be unreasonably withheld or delayed).

 

“Collateral
Proceeds Account”:  shall mean a
non-interest bearing cash collateral account established and maintained by the
relevant Grantor at an office of the Collateral Account Bank in the name, and
in the sole dominion and control of, the Administrative Agent for the benefit
of the Secured Parties.

 

3

 

“Commercial
Tort Claims”: means “commercial tort claims” as such term is defined in the
Code as in effect on the date hereof.

 

“Commitments”:
the collective reference to (i) the Revolving Credit Commitments, (ii) the
Swing Line Commitment and (iii) the obligation of the Issuing Lenders to issue
Letters of Credit to the Parent Borrower pursuant to subsection 3.1 of the
Credit Agreement.

 

“Contracts”:  with respect to any Grantor, all contracts,
agreements, instruments and indentures in any form and portions thereof (except
for contracts listed on Schedule 6 hereto), to which such Grantor is a
party or under which such Grantor or any property of such Grantor is subject,
as the same may from time to time be amended, supplemented, waived or otherwise
modified, including, without limitation, (i) all rights of such Grantor to
receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of such Grantor to damages arising thereunder and
(iii) all rights of such Grantor to perform and to exercise all remedies
thereunder.

 

“Copyright
Licenses”:  with respect to any
Grantor, all United States written license agreements of such Grantor providing
for the grant by or to such Grantor of any right to use any Copyright of such
Grantor, other than agreements with any Person who is an Affiliate or a
Subsidiary of the Parent Borrower or such Grantor, including, without
limitation, any license agreements listed on Schedule 5 hereto, subject,
in each case, to the terms of such license agreements, and the right to prepare
for sale, sell and advertise for sale, all Inventory now or hereafter covered
by such licenses.

 

“Copyrights”:  with respect to any Grantor, all of such
Grantor’s right, title and interest in and to all United States copyrights,
whether or not the underlying works of authorship have been published or
registered, United States copyright registrations and copyright applications,
including, without limitation, any copyright registrations and copyright
applications listed on Schedule 5 hereto, and (i) all renewals thereof,
(ii) all income, royalties, damages and payments now and hereafter due and/or
payable with respect thereto, including, without limitation, payments under all
licenses entered into in connection therewith, and damages and payments for
past or future infringements thereof and (iii) the right to sue or otherwise
recover for past, present and future infringements and misappropriations
thereof.

 

“Credit
Agreement”:  has the meaning
provided in the Preamble hereto.

 

“Deposit
Accounts”:  with respect to any
Grantor, all deposit accounts (as defined by the Code) of such Grantor.

 

“Downgrade
Event”: there occurs a downgrading in the credit rating assigned by either
S&P or Moody’s to the Indebtedness of the Parent Borrower incurred pursuant
to the Credit Agreement (including, without limitation, any Reimbursement
Obligations).

 

“General
Fund Account”: the general fund account of the relevant Grantor established
at the same office of the Collateral Account Bank as the Collateral Proceeds
Account.

 

4

 

“General
Intangibles”: all “general intangibles”, as that term is defined in Section
9-102(a)(42) of the Uniform Commercial Code in effect in the State of New York
on the date hereof.

 

“Granting
Parties”:  as defined in the
recitals hereto.

 

“Grantor”:  the Borrowers and each Domestic Subsidiary
of the Parent Borrower that from time to time is a party hereto (it being
understood that no Receivables Subsidiary or Subsidiary of a Foreign Subsidiary
(other than a Foreign Subsidiary Borrower) shall be required to be or become a
party hereto).

 

“Guarantor
Obligations”:  with respect to any
Guarantor, the collective reference to (i) the Obligations guaranteed by such
Guarantor pursuant to Section 2 and (ii) all obligations and liabilities of
such Guarantor that may arise under or in connection with this Agreement or any
other Loan Document to which such Guarantor is a party, in each case whether on
account of guarantee obligations, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Administrative Agent, to the Other
Representatives or to the Lenders that are required to be paid by such
Guarantor pursuant to the terms of this Agreement or any other Loan Document).

 

“Guarantors”:  the collective reference to each Granting
Party other than any Foreign Subsidiary and any Foreign Subsidiary Holdco.

 

“Holding”:  has the meaning provided in the Preamble
hereto.

 

“Instruments”:  has the meaning specified in the Code, but
excluding the Pledged Securities.

 

“Intellectual
Property”:  with respect to any
Grantor, the collective reference to such Grantor’s Copyrights, Copyright
Licenses, Patents, Patent Licenses, Trade Secrets, Trademarks and Trademark
Licenses.

 

“Intercompany
Note”:  with respect to any Grantor,
any promissory note in a principal amount in excess of $3,000,000 evidencing
loans made by such Grantor to Holding or any of its Subsidiaries.

 

“Inventory”:  with respect to any Grantor, all inventory
(as defined in the Code) of such Grantor, including, without limitation, all
Inventory (as defined in the Credit Agreement) of such Grantor.

 

“Investment
Property”:  the collective reference
to (i) all “investment property” as such term is defined in Section
9-102(a)(49) of the Uniform Commercial Code in effect in the State of New York
on the date hereof (other than any Capital Stock of any Foreign Subsidiary
excluded from the definition of “Pledged Stock”) and (ii) whether or not
constituting “investment property” as so defined, all Pledged Securities.

 

5

 

“Issuers”:  the collective reference to the Persons
identified on Schedule 2 as the issuers of Pledged Stock, together with
any successors to such companies (including, without limitation, any successors
contemplated by subsection 8.5 of the Credit Agreement).

 

“Management
Loans”: Indebtedness (including any extension, renewal or refinancing
thereof) to the extent such Indebtedness is entitled to the benefit of
Guarantee Obligations provided for in Section 8.4(b) of the Credit Agreement.

 

“Non-Lender
Secured Parties”:  the collective
reference to any person who, at the time of entering into any Interest Rate
Protection Agreement, Permitted Hedging Arrangement or Management Loan secured
hereby, was a Lender or an affiliate of any Lender and their respective
successors and assigns.

 

“Obligations”:  (i) in
the case of each Borrower, its Borrower Obligations and (ii) in the case of
each Guarantor, the Guarantor Obligations of such Guarantor.

 

“Parent Borrower”:  as
defined in the Preamble hereto.

 

“Patent
Licenses”:  with respect to any
Grantor, all United States written license agreements of such Grantor with any
other Person that is not an Affiliate or a Subsidiary of the Parent Borrower or
such Grantor, in connection with any of the Patents of such Grantor or such
other Person’s patents, whether such Grantor is a licensor or a licensee under
any such agreement, including, without limitation, the license agreements
listed on Schedule 5 hereto, subject, in each case, to the terms of such
license agreements, and the right to prepare for sale, sell and advertise for
sale, all Inventory now or hereafter covered by such licenses.

 

“Patents”:  with respect to any Grantor, all of such
Grantor’s right, title and interest in and to all United States patents, patent
applications and patentable inventions and all reissues and extensions thereof,
including, without limitation, all patents and patent applications identified
in Schedule 5 hereto, and including, without limitation, (i) all
inventions and improvements described and claimed therein, (ii) the right to
sue or otherwise recover for any and all past, present and future infringements
and misappropriations thereof, (iii) all income, royalties, damages and other
payments now and hereafter due and/or payable with respect thereto (including,
without limitation, payments under all licenses entered into in connection
therewith, and damages and payments for past, present or future infringements
thereof), and (iv) all other rights corresponding thereto in the United States
and all reissues, divisions, continuations, continuations-in-part, substitutes,
renewals, and extensions thereof, all improvements thereon, and all other
rights of any kind whatsoever of such Grantor accruing thereunder or pertaining
thereto.

 

“Pledged
Collateral”:  as to any Pledgor, the
Pledged Securities now owned or at any time hereafter acquired by such Pledgor,
and any Proceeds thereof.

 

“Pledged
Notes”: with respect to any Pledgor, all Intercompany Notes at any time
issued to, or held or owned by, such Pledgor.

 

6

 

“Pledged
Securities”:  the collective
reference to the Pledged Notes and the Pledged Stock.

 

“Pledged
Stock”:  with respect to any
Pledgor, the shares of Capital Stock listed on Schedule 2 as held by
such Pledgor, together with any other shares of Capital Stock required to be
pledged by such Pledgor pursuant to subsection 7.9 of the Credit Agreement, as
well as any other shares, stock certificates, options or rights of any nature
whatsoever in respect of the Capital Stock of any Person that may be issued or
granted to, or held by, such Pledgor while this Agreement is in effect (provided
that in no event shall there be pledged, nor shall any Pledgor be required to
pledge, directly or indirectly, (i) more than 65% of any series of the
outstanding Capital Stock of any Foreign Subsidiary or (ii) any of the Capital
Stock of a Subsidiary (unless such Subsidiary is a Foreign Subsidiary Borrower)
of a Foreign Subsidiary, pursuant to this Agreement).

 

“Pledgor”:  Holding (with respect to the Pledged Stock
of the Parent Borrower and Small FSHCo, and all other Pledged Collateral of
Holding), the Parent Borrower (with respect to Pledged Stock of the entities
listed on Schedule 2 hereto under the name of the Parent Borrower and
all other Pledged Collateral of the Parent Borrower) and each other Granting
Party (with respect to Pledged Securities held by such Granting Party and all
other Pledged Collateral of such Granting Party).

 

“Proceeds”:  all “proceeds” as such term is defined in
Section 9-102(a)(64) of the Uniform Commercial Code in effect in the State of
New York on the date hereof and, in any event, Proceeds of Pledged Securities
shall include, without limitation, all dividends or other income from the
Pledged Securities, collections thereon or distributions or payments with
respect thereto.

 

“Restrictive
Agreements”: as defined in subsection 3.3(a).

 

“Secured
Parties”:  the collective reference
to (i) the Administrative Agent and each Other Representative, (ii) the Lenders
(including, without limitation, the Issuing Lender and the Swing Line Lender),
(iii) with respect to any Interest Rate Protection Agreement or Permitted
Hedging Arrangement with Holding or any of its Subsidiaries, any counterparty
thereto that, at the time such agreement or arrangement was entered into, was a
Lender or an Affiliate of any Lender, (iv) any Lender or Affiliate thereof
which provides cash management services to the Parent Borrower or any of its
Subsidiaries, (v) with respect to any Management Loans, any lender thereof
that, at the time such Indebtedness was extended (or agreement to extend such
Indebtedness was entered into), was a Lender or an Affiliate of any Lender and
(vi) their respective successors and assigns and their permitted transferees
and endorsees.

 

“Security
Collateral”:  with respect to any
Granting Party, means, collectively, the Collateral (if any) and the Pledged
Collateral (if any) of such Granting Party.

 

“Trade
Secrets”:  with respect to any
Grantor, all of such Grantor’s right, title and interest in and to all United
States trade secrets, including, without limitation, know-how, processes,
formulae, compositions, designs, and confidential business and technical 

 

7

 

information,
and all rights of any kind whatsoever accruing thereunder or pertaining
thereto, including, without limitation, (i) all income, royalties, damages and
payments now and hereafter due and/or payable with respect thereto, including,
without limitation, payments under all licenses, non-disclosure agreements and
memoranda of understanding entered into in connection therewith, and damages
and payments for past or future misappropriations thereof, and (ii) the right
to sue or otherwise recover for past, present or future misappropriations
thereof.

 

“Trademark
Licenses”:  with respect to any
Grantor, all United States written license agreements of such Grantor with any
other Person who is not an Affiliate or a Subsidiary of the Parent Borrower or
such Grantor in connection with any of the Trademarks of such Grantor or such
other Person’s names or trademarks, whether such Grantor is a licensor or a
licensee under any such agreement, including, without limitation, the license
agreements listed on Schedule 5 hereto, subject, in each case, to the
terms of such license agreements, and the right to prepare for sale, sell and
advertise for sale, all Inventory now or hereafter covered by such licenses.

 

“Trademarks”:  with respect to any Grantor, all of such
Grantor’s right, title and interest in and to all United States trademarks,
service marks, trade names, trade dress or other indicia of trade origin or
business identifiers, trademark and service mark registrations, and
applications for trademark or service mark registrations (except for “intent to
use” applications for trademark or service mark registrations filed pursuant to
Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, unless and until an Amendment
to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of said Act
has been filed), and any renewals thereof, including, without limitation, each
registration and application identified in Schedule 5 hereto, and
including, without limitation, (i) the right to sue or otherwise recover for
any and all past, present and future infringements or dilutions thereof, (ii)
all income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all
licenses entered into in connection therewith, and damages and payments for
past or future infringements thereof), and (iii) all other rights corresponding
thereto in the United States and all other rights of any kind whatsoever of
such Grantor accruing thereunder or pertaining thereto in the United States,
together in each case with the goodwill of the business connected with the use
of, and symbolized by, each such trademark, service mark, trade name, trade
dress or other indicia of trade origin or business identifiers.

 

“Vehicles”:  all cars, trucks, trailers, construction and
earth moving equipment and other vehicles covered by a certificate of title law
of any state and all tires and other appurtenances to any of the foregoing.

 

1.2
Other Definitional Provisions.  (a)
The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, Schedule and
Annex references are to this Agreement unless otherwise specified.

 

(b)           The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

 

8

 

(c)           Where the context requires, terms relating to the
Collateral, Pledged Collateral or Security Collateral, or any part thereof,
when used in relation to a Granting Party shall refer to such Granting Party’s
Collateral, Pledged Collateral or Security Collateral or the relevant part
thereof.

 

(d)           All references in this Agreement to any of the property
described in the definition of the term “Collateral” or “Pledged Collateral”,
or to any Proceeds thereof, shall be deemed to be references thereto only to
the extent the same constitute Collateral or Pledged Collateral, respectively.

 

SECTION 2  GUARANTEE

 

2.1
Guarantee.  (a)
Each of the Guarantors hereby, jointly and severally, unconditionally and
irrevocably, guarantees to the Administrative Agent, for the ratable benefit of
the Secured Parties, the prompt and complete payment and performance by each
Borrower when due and payable (whether at the stated maturity, by acceleration
or otherwise) of the Borrower Obligations of such Borrower.

 

(b)           Anything herein or in any other Loan Document to the
contrary notwithstanding, the maximum liability of each Guarantor hereunder and
under the other Loan Documents shall in no event exceed the amount that can be
guaranteed by such Guarantor under applicable law, including applicable federal
and state laws relating to the insolvency of debtors; provided that, to
the maximum extent permitted under applicable law, it is the intent of the
parties hereto that (x) the amount of the liability of any of the Guarantors or
any guarantee in respect of Indebtedness permitted pursuant to clauses (b) and
(c) of subsection 8.2 of the Credit Agreement shall be reduced before the
amount of the liability of the respective Guarantor is reduced hereunder and
(y) the rights of contribution of each Guarantor provided in following
subsection 2.2 be included as an asset of the respective Guarantor in
determining the maximum liability of such Guarantor hereunder.

 

(c)           Each Guarantor agrees that the Borrower Obligations
guaranteed by it hereunder may at any time and from time to time exceed the
amount of the liability of such Guarantor hereunder without impairing the
guarantee contained in this Section 2 or affecting the rights and remedies of
the Administrative Agent or any other Secured Party hereunder.

 

(d)           The guarantee contained in this Section 2 shall remain in
full force and effect until the earlier to occur of (i) the first date on which
all the Loans, any Reimbursement Obligations, all other Borrower Obligations
then due and owing, and the obligations of each Guarantor under the guarantee
contained in this Section 2 then due and owing shall have been satisfied by
payment in full in cash, no Letter of Credit shall be outstanding and the
Commitments shall be terminated, notwithstanding that from time to time during
the term of the Credit Agreement any of the Borrowers may be free from any
Borrower Obligations, or (ii) as to any Guarantor, the sale or other
disposition of all of the Capital Stock of such Guarantor (to a Person other
than Holding, the Parent Borrower or a Subsidiary of either) as permitted under
the Credit Agreement.

 

9

 

(e)           No payment made any of the Borrowers, any of the
Guarantors, any other guarantor or any other Person or received or collected by
the Administrative Agent or any other Secured Party from any of the Borrowers,
any of the Guarantors, any other guarantor or any other Person by virtue of any
action or proceeding or any set-off or appropriation or application at any time
or from time to time in reduction of or in payment of any of the Borrower
Obligations shall be deemed to modify, reduce, release or otherwise affect the
liability of any Guarantor hereunder which shall, notwithstanding any such
payment (other than any payment made by such Guarantor in respect of the
Borrower Obligations or any payment received or collected from such Guarantor
in respect of any of the Borrower Obligations), remain liable for the Borrower
Obligations of each Borrower guaranteed by it hereunder up to the maximum
liability of such Guarantor hereunder until the earlier to occur of (i) the
first date on which all the Loans, any Reimbursement Obligations, and all other
Borrower Obligations then due and owing, are paid in full in cash, no Letter of
Credit shall be outstanding  (except for
Letters of Credit that have been cash collateralized in a manner satisfactory
to the Issuing Lender) and the Commitments are terminated or (ii) the sale or
other disposition of all of the Capital Stock of such Guarantor (to a Person
other than Holding, the Parent Borrower or a Subsidiary of either) as permitted
under the Credit Agreement.

 

2.2
Right of Contribution.  Each Guarantor hereby agrees
that to the extent that a Guarantor shall have paid more than its proportionate
share (based, to the maximum extent permitted by law, on the respective
Adjusted Net Worths of the Guarantors on the date the respective payment is
made) of any payment made hereunder, such Guarantor shall be entitled to seek
and receive contribution from and against any other Guarantor hereunder that
has not paid its proportionate share of such payment.  Each Guarantor’s right of contribution shall be subject to the
terms and conditions of subsection 2.3. 
The provisions of this subsection 2.2 shall in no respect limit the
obligations and liabilities of any Guarantor to the Administrative Agent and
the other Secured Parties, and each Guarantor shall remain liable to the
Administrative Agent and the other Secured Parties for the full amount guaranteed
by such Guarantor hereunder.

 

2.3
No Subrogation.  Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
the Administrative Agent or any other Secured Party, no Guarantor shall be
entitled to be subrogated to any of the rights of the Administrative Agent or
any other Secured Party against any of the Borrowers or any other Guarantor or
any collateral security or guarantee or right of offset held by the
Administrative Agent or any other Secured Party for the payment of any of the
Borrower Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from any of the Borrowers or any other Guarantor
in respect of payments made by such Guarantor hereunder, until all amounts
owing to the Administrative Agent and the other Secured Parties by each of the
Borrowers on account of the Borrower Obligations are paid in full in cash, no
Letter of Credit shall be outstanding and the Commitments are terminated.  If any amount shall be paid to any Guarantor
on account of such subrogation rights at any time when all of the Borrower
Obligations shall not have been paid in full in cash or any Letter of Credit
shall remain outstanding (and shall not have been cash collateralized in a
manner satisfactory to the Issuing Lender) or any of the Commitments shall
remain in effect, such amount shall be held by such Guarantor in trust for the
Administrative Agent and the other Secured Parties, segregated from other funds
of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be
turned over to the Administrative Agent in the exact form received by such
Guarantor (duly indorsed by 

 

10

 

such
Guarantor to the Administrative Agent, if required), to be held as collateral
security for all of the Borrower Obligations (whether matured or unmatured)
guaranteed by such Guarantor and/or then or at any time thereafter may be
applied against any Borrower Obligations, whether matured or unmatured, in such
order as the Administrative Agent may determine.

 

2.4
Amendments, etc. with respect to the
Obligations.  To the maximum extent permitted by law, each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations made by the Administrative Agent or any other Secured Party may be
rescinded by the Administrative Agent or such other Secured Party and any of
the Borrower Obligations continued, and the Borrower Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, waived,
modified, accelerated, compromised, subordinated, waived, surrendered or
released by the Administrative Agent or any other Secured Party, and the Credit
Agreement and the other Loan Documents and any other documents executed and
delivered in connection therewith may be amended, waived, modified,
supplemented or terminated, in whole or in part, as the Administrative Agent
(or the Required Lenders or the Required Collateral Release Lenders under the
Credit Agreement, or the applicable Lenders(s), as the case may be) may deem
advisable from time to time, and any collateral security, guarantee or right of
offset at any time held by the Administrative Agent or any other Secured Party
for the payment of any of the Borrower Obligations may be sold, exchanged,
waived, surrendered or released. 
Neither the Administrative Agent nor any other Secured Party shall have
any obligation to protect, secure, perfect or insure any Lien at any time held
by it as security for any of the Borrower Obligations or for the guarantee
contained in this Section 2 or any property subject thereto, except to the
extent required by applicable law.

 

2.5
Guarantee Absolute and Unconditional.  Each
Guarantor waives, to the maximum extent permitted by applicable law, any and
all notice of the creation, renewal, extension or accrual of any of the
Borrower Obligations and notice of or proof of reliance by the Administrative
Agent or any other Secured Party upon the guarantee contained in this Section 2
or acceptance of the guarantee contained in this Section 2; each of the
Borrower Obligations, and any obligation contained therein, shall conclusively
be deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between any of the Borrowers and any of the Guarantors, on the
one hand, and the Administrative Agent and the other Secured Parties, on the other
hand, likewise shall be conclusively presumed to have been had or consummated
in reliance upon the guarantee contained in this Section 2.  Each Guarantor waives, to the maximum extent
permitted by applicable law, diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon any of the Borrowers or
any of the other Guarantors with respect to any of the Borrower
Obligations.  Each Guarantor understands
and agrees, to the extent permitted by law, that the guarantee contained in
this Section 2 shall be construed as a continuing, absolute and unconditional
guarantee of payment and not of collection. 
Each Guarantor hereby waives, to the maximum extent permitted by
applicable law, any and all defenses (other than any suit for breach of a
contractual provision of any of the Loan Documents) that it may have arising
out of or in connection with any and all of the following:  (a) the validity or enforceability of the
Credit Agreement or any other Loan Document, any of the Borrower Obligations or
any other collateral 

 

11

 

security
therefor or guarantee or right of offset with respect thereto at any time or
from time to time held by the Administrative Agent or any other Secured Party,
(b) any defense, set-off or counterclaim (other than a defense of payment or
performance) that may at any time be available to or be asserted by any of the
Borrowers against the Administrative Agent or any other Secured Party, (c) any
change in the time, place, manner or place of payment, amendment, or waiver or
increase in any of the Obligations, (d) any exchange, taking, or release of
Security Collateral, (e) any change in the structure or existence of any of the
Borrowers, (f) any application of Security Collateral to any of the
Obligations, (g) any law, regulation or order of any jurisdiction, or any other
event, affecting any term of any Obligation or the rights of the Administrative
Agent or any other Secured Party with respect thereto, including, without
limitation: (i) the application of any such law, regulation, decree or order,
including any prior approval, which would prevent the exchange of any currency
(other than Dollars) for Dollars or the remittance of funds outside of such
jurisdiction or the unavailability of Dollars in any legal exchange market in
such jurisdiction in accordance with normal commercial practice, (ii) a
declaration of banking moratorium or any suspension of payments by banks in
such jurisdiction or the imposition by such jurisdiction or any Governmental
Authority thereof of any moratorium on, the required rescheduling or
restructuring of, or required approval of payments on, any indebtedness in such
jurisdiction, (iii) any expropriation, confiscation, nationalization or requisition
by such country or any Governmental Authority that directly or indirectly
deprives any Borrower of any assets or their use, or of the ability to operate
its business or a material part thereof, or (iv) any war (whether or not
declared), insurrection, revolution, hostile act, civil strife or similar
events occurring in such jurisdiction which has the same effect as the events
described in clause (i), (ii) or (iii) above (in each of the cases contemplated
in clauses (i) through (iv) above, to the extent occurring or existing on or at
any time after the date of this Agreement), or (h) any other circumstance
whatsoever (other than payment in full in cash of the Borrower Obligations
guaranteed by it hereunder) (with or without notice to or knowledge of any of
the Borrowers or such Guarantor) that constitutes, or might be construed to
constitute, an equitable or legal discharge of any of the Borrowers for the
Borrower Obligations, or of such Guarantor under the guarantee contained in
this Section 2, in bankruptcy or in any other instance.  When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against any Guarantor, the
Administrative Agent or any other Secured Party may, but shall be under no
obligation to, make a similar demand on or otherwise pursue such rights and
remedies as it may have against any of the Borrowers, any other Guarantor or
any other Person or against any collateral security or guarantee for the
Borrower Obligations guaranteed by such Guarantor hereunder or any right of
offset with respect thereto, and any failure by the Administrative Agent or any
other Secured Party to make any such demand, to pursue such other rights or
remedies or to collect any payments from any of the Borrowers, any other
Guarantor or any other Person or to realize upon any such collateral security
or guarantee or to exercise any such right of offset, or any release of any of
the Borrowers, any other Guarantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights
and remedies, whether express, implied or available as a matter of law, of the
Administrative Agent or any other Secured Party against any Guarantor.  For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings.

 

2.6
Reinstatement.  The guarantee of any Guarantor contained in
this Section 2 shall continue to be effective, or be reinstated, as the case
may be, if at any time payment, or any

12

 

part
thereof, of any of the Borrower Obligations guaranteed by such Guarantor
hereunder is rescinded or must otherwise be restored or returned by the Administrative
Agent or any other Secured Party upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of any Borrower or any Guarantor, or upon or as a
result of the appointment of a receiver, intervenor or conservator of, or
trustee or similar officer for, any Borrower or any Guarantor or any
substantial part of its property, or otherwise, all as though such payments had
not been made.

 

2.7
Payments.  Each
Guarantor hereby guarantees that payments hereunder will be paid to the
Administrative Agent without set-off or counterclaim, in Dollars (or in the
case of any amount required to be paid in any other currency pursuant to the
requirements of the Credit Agreement or other agreement relating to the
respective Obligations, such other currency), at the Administrative Agent’s
office specified in subsection 11.2 of the Credit Agreement or such other
address as may be designated in writing by the Administrative Agent to such
Guarantor from time to time in accordance with subsection 11.2 of the Credit
Agreement.

 

SECTION 3  GRANT OF SECURITY INTEREST

 

3.1
Grant.  Each
Granting Party that is a Grantor hereby grants, subject to existing licenses to
use the Copyrights, Patents, Trademarks and Trade Secrets granted by such
Grantor in the ordinary course of its business, to the Administrative Agent,
for the ratable benefit of the Secured Parties, a security interest in all of
the Collateral of such Grantor, as collateral security for the prompt and
complete payment and performance when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligations of such Grantor, except as
provided in subsection 3.3.  The term “Collateral”,
as to any Grantor, means the following property (wherever located) (or their
equivalent in the applicable foreign country, in the case of Foreign Subsidiary
Borrowers) now owned or at any time hereafter acquired by such Grantor or in
which such Grantor now has or at any time in the future may acquire any right,
title or interest, except as provided in subsection 3.3:

 

(a)           all Accounts;

 

(b)           all Chattel Paper;

 

(c)           all Contracts;

 

(d)           all Deposit Accounts;

 

(e)           all Documents;

 

(f)            all Equipment (other than Vehicles);

 

(g)           all General Intangibles;

 

(h)           all Instruments;

 

(i)            all Intellectual Property;

 

(j)            all Inventory;

 

13

 

(k)           all Investment Property;

 

(l)            all books and records pertaining to any of the foregoing;

 

(m)          all Commercial Tort Claims described
in Schedule 7 hereto (together with any Commercial Tort Claims subject to a
further writing provided in accordance with subsection 5.2.12);

 

(n)           the Collateral Proceeds Account; and

 

(o)           to the extent not otherwise included,
all Proceeds and products of any and all of the foregoing and all collateral
security and guarantees given by any Person with respect to any of the
foregoing;

 

provided that, in the case of each Grantor,
Collateral shall not include any Pledged Collateral, or any property or assets
specifically excluded from Pledged Collateral (including any Capital Stock of
any Foreign Subsidiary in excess of 65% of any series of such stock); and provided,
further, that, for the avoidance of doubt, the security interest granted
herein by any Pledgor that is a Foreign Subsidiary Borrower shall not secure
any Obligations other than the Obligations of such Foreign Subsidiary Borrower.

 

3.2
Pledged Collateral.  Each Granting Party that is a
Pledgor, hereby grants to the Administrative Agent, for the ratable benefit of
the Secured Parties, a security interest in all of the Pledged Collateral of
such Pledgor now owned or at any time hereafter acquired by such Pledgor, and
any Proceeds thereof, as collateral security for the prompt and complete
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations of such Pledgor, except as provided in subsection
3.3; provided that, for the avoidance of doubt, the security interest
granted herein by any Grantor that is a Foreign Subsidiary Borrower shall not
secure any Obligations other than the Obligations of such Foreign Subsidiary
Borrower.

 

3.3
Certain Exceptions.  No security interest is or
will be granted pursuant hereto in any right, title or interest of any Granting
Party under or in:

 

(a)           any Instruments, Contracts, Chattel Paper, General
Intangibles, Copyright Licenses, Patent Licenses, Trademark Licenses or other
contracts or agreements with or issued by Persons other than Holding, a
Subsidiary of Holding or an Affiliate thereof (collectively, “Restrictive
Agreements”) that would otherwise be included in the Security Collateral
(and such Restrictive Agreements shall not be deemed to constitute a part of
the Security Collateral) for so long as, and to the extent that, the granting
of such a security interest pursuant hereto would result in a breach, default
or termination of such Restrictive Agreements (in each case, except to the
extent that, pursuant to the Code or other applicable law, the granting of
security interests therein can be made without resulting in a breach, default
or termination of such Restrictive Agreements);

 

(b)           any Equipment that would otherwise be included in the
Security Collateral (and such Equipment shall not be deemed to constitute a
part of the Security Collateral) if such Equipment is subject to a Lien
permitted by subsection 8.3(h) of the Credit Agreement; or

 

14

 

(c)           any property that would otherwise be included in the
Security Collateral (and such property shall not be deemed to constitute a part
of the Security Collateral) if such property has been sold or otherwise
transferred in connection with a Permitted Receivables Transaction or a Sale
and Leaseback Transaction permitted under subsection 8.12 of the Credit
Agreement, or is subject to any Liens permitted under subsection 8.3(m) and
8.3(o) of the Credit Agreement, or constitutes the Proceeds or products of any
property that has been so sold or otherwise transferred; or

 

(d)           Capital Stock which is specifically excluded from the
definition of Pledged Stock by virtue of the proviso contained in the
parenthetical to such definition.

 

SECTION
4  REPRESENTATIONS AND WARRANTIES

 

4.1
Representations and Warranties of
Each Guarantor.  To induce the Administrative Agent and the
Lenders to enter into the Credit Agreement and to induce the Lenders to make
their respective extensions of credit to the Borrowers thereunder, each
Guarantor hereby represents and warrants to the Administrative Agent and each
other Secured Party that the representations and warranties set forth in
Section 5 of the Credit Agreement as they relate to such Guarantor or to the
Loan Documents to which such Guarantor is a party, each of which
representations and warranties is hereby incorporated herein by reference, are
true and correct in all material respects, and the Administrative Agent and
each other Secured Party shall be entitled to rely on each of such
representations and warranties as if fully set forth herein; provided
that each reference in each such representation and warranty to the Parent Borrower’s
knowledge shall, for the purposes of this subsection 4.1, be deemed to be a
reference to such Guarantor’s knowledge.

 

4.2
Representations and Warranties of Each
Grantor.  To induce the Administrative Agent and the
Lenders to enter into the Credit Agreement and to induce the Lenders to make
their respective extensions of credit to the Borrowers thereunder, each Grantor
hereby represents and warrants to the Administrative Agent and each other
Secured Party that, in each case after giving effect to the Transactions:

 

4.2.1        Title; No Other Liens. 
Except for the security interests granted to the Administrative Agent,
for the ratable benefit of the Secured Parties, pursuant to this Agreement and
the other Liens permitted to exist on such Grantor’s Collateral by the Credit
Agreement (including, without limitation, subsection 8.3 thereof), such Grantor
owns each item of such Grantor’s Collateral free and clear of any and all
Liens.  Except as set forth on Schedule
3, no currently effective financing statement or other similar public
notice with respect to all or any part of such Grantor’s Collateral is on file
or of record in any public office, except such as have been filed in favor of
the Administrative Agent, for the ratable benefit of the Secured Parties,
pursuant to this Agreement or as are permitted by the Credit Agreement
(including without limitation subsection 8.3 thereof) or any other Loan
Document or for which termination statements will be delivered on the Closing
Date.

 

4.2.2        Perfected First Priority Liens.  (a)
This Agreement is effective to create, as collateral security for the
Obligations of such Grantor, valid and enforceable Liens on such Grantor’s
Security Collateral in favor of the Administrative Agent, for the benefit of
the Secured 

 

15

 

Parties,
except as enforceability may be affected by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditor’s rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing.

 

(b)           Except with regard to (i) Liens (if any) on Specified
Assets and (ii) any rights reserved in favor of the United States government as
required by law (if any), upon the completion of the Filings (provided that the
recordations and assignments specified in clause (iii) in the definition of
“Filings” shall be applicable, for the purposes of this subsection 4.2.2.(b),
only in respect to Liens on Patents and Trademarks) and the delivery to and
continuing possession by the Administrative Agent of all Instruments, Chattel
Paper and Documents a security interest in which is perfected by possession,
and the obtaining and maintenance of “control” (as described in the Code) by
the Administrative Agent of all Deposit Accounts, the Collateral Proceeds
Account and Electronic Chattel Paper a security interest in which is perfected
by “control” and, in the case of Commercial Tort Claims (other than such
Commercial Tort Claims listed on Schedule 7 on the date of this Agreement), the
taking of the actions required by subsection 5.2.12 herein, the Liens created
pursuant to this Agreement will constitute valid Liens on and (to the extent
provided herein) perfected security interests in such Grantor’s Security
Collateral in favor of the Administrative Agent for the benefit of the Secured
Parties, and will be prior to all other Liens of all other Persons other than
Permitted Liens, and enforceable as such as against all other Persons other
than Ordinary Course Transferees, except to the extent that the recording of an
assignment or other transfer of title to the Administrative Agent or the
recording of other applicable documents in the United States Patent and
Trademark Office or United States Copyright Office may be necessary for
perfection or enforceability, and except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law) or by an implied covenant of good faith and fair dealing. As used in
this subsection 4.2.2(b), the following terms shall have the following
meanings:

 

“Filings”:  the filing or recording of (i) the Financing
Statements as set forth in Schedule 3, (ii) this Agreement or a notice
thereof with respect to Intellectual Property as set forth in Schedule 3,
(iii) the recordation of the Mergers, the Name Change and certain assignments
of Patents and Trademarks by the Sellers and their Affiliates with the United
States Patent and Trademark Office and (iv) any filings after the Closing Date
in any other jurisdiction as may be necessary under any Requirement of Law.

 

“Financing
Statements”:  the financing
statements delivered to the Administrative Agent by such Grantor on the Closing
Date for filing in the jurisdictions listed in Schedule 3.

 

“Ordinary
Course Transferees”:  (i) with
respect to goods only, buyers in the ordinary course of business and lessees in
the ordinary course of business to the extent provided in Section 9-320(a) and
9-321 of the Uniform Commercial Code as in effect from time to time in the
relevant jurisdiction, (ii) with respect to general intangibles only, licensees
in the ordinary course of business to the extent provided in Section 9-321 of
the Uniform Commercial Code as in effect from time to time in the relevant
jurisdiction and 

 

16

 

(iii)
any other Person who is entitled to take free of the Lien pursuant to the
Uniform Commercial Code as in effect from time to time in the relevant
jurisdiction.

 

“Permitted
Liens”:  Liens permitted pursuant to
the Credit Documents, including without limitation those permitted to exist
pursuant to subsection 8.3 of the Credit Agreement.

 

“Specified
Assets”:  the following property and
assets of such Grantor:

 

(1) 
Equipment constituting Fixtures;

 

(2)  Patents,
Patent Licenses, Trademarks and Trademark Licenses to the extent that (a) Liens
thereon cannot be perfected by the filing of financing statements under the
Uniform Commercial Code or by the filing and acceptance thereof in the United
States Patent and Trademark Office or (b) such Patents, Patent Licenses,
Trademarks and Trademark Licenses are not, individually or in the aggregate,
material to the business of the Parent Borrower and its Subsidiaries taken as a
whole;

 

(3) 
Copyrights and Copyright Licenses and Accounts or receivables arising
therefrom to the extent that the Uniform Commercial Code as in effect from time
to time in the relevant jurisdiction is not applicable to the creation or
perfection of Liens thereon;

 

(4) 
uncertificated securities;

 

(5)  Collateral
for which the perfection of Liens thereon requires filings in or other actions
under the laws of jurisdictions outside of the United States of America, any
State, territory or dependency thereof or the District of Columbia;

 

(6) Contracts, Accounts or receivables subject to
the Assignment of Claims Act;

 

(7)  goods
included in Collateral received by any Person for “sale or return” within the
meaning of Section 2-326 of the Uniform Commercial Code of the applicable
jurisdiction, to the extent of claims of creditors of such Person; and

 

(8)  Proceeds
of Accounts, receivables or Inventory which do not themselves constitute
Collateral or which have not been transferred to or deposited in the Collateral
Proceeds Account (if any).

 

4.2.3        Jurisdiction of Organization.  On
the date hereof, such Grantor’s jurisdiction of organization is specified on Schedule
4.

 

4.2.4        Farm Products.  None of such Grantor’s
Collateral constitutes, or is the Proceeds of, Farm Products.

 

17

 

4.2.5        Accounts Receivable.  The
amounts represented by such Grantor to the Administrative Agent or the other
Secured Parties from time to time as owing by each account debtor or by all
account debtors in respect of such Grantor’s Accounts Receivable constituting
Security Collateral will at such time be the correct amount, in all material
respects, actually owing by such account debtor or debtors thereunder, except
to the extent that appropriate reserves therefor have been established on the books
of such Grantor in accordance with GAAP. 
Unless otherwise indicated in writing to the Administrative Agent, each
Account Receivable of such Grantor arises out of a bona fide sale and delivery
of goods or rendition of services by such Grantor.  Such Grantor has not given any account debtor any deduction in
respect of the amount due under any such Account, except in the ordinary course
of business or as such Grantor may otherwise advise the Administrative Agent in
writing.

 

4.2.6        Patents and Trademarks.  Schedule
5 lists all material Trademarks and material Patents, in each case,
registered in the United States Patent and Trademark Office and owned by such
Grantor in its own name as of the date hereof, and all material Trademark
Licenses and all material Patent Licenses (including, without limitation,
material Trademark Licenses for registered Trademarks and material Patent
Licenses for registered Patents) owned by such Grantor in its own name as of
the date hereof.

 

4.2.7        Copyrights.  As of the date hereof, such
Grantor does not own any Copyrights registered in the United States Copyright
Office or exclusive Copyright Licenses for registered copyrights which are
material to the business of such Grantor and its Subsidiaries, taken as a
whole.

 

4.3
Representations and Warranties of Each
Pledgor.  To induce the Administrative Agent and the
Lenders to enter into the Credit Agreement and to induce the Lenders to make
their respective extensions of credit to the Borrowers thereunder, each Pledgor
hereby represents and warrants to the Administrative Agent and each other
Secured Party that:

 

4.3.1        Except as provided in subsection 3.3,
the shares of Pledged Stock pledged by such Pledgor hereunder constitute (i) in
the case of shares of a Domestic Subsidiary, all the issued and outstanding
shares of all classes of the Capital Stock of such Domestic Subsidiary owned by
such Pledgor (ii) in the case of any Pledgor that is a Foreign Subsidiary
Borrower, all the issued and outstanding shares of all classes of the Capital Stock
of any Subsidiary owned by such Pledgor and (iii) in the case of any Pledged
Stock constituting Capital Stock of Foreign Subsidiary Holdco or any Foreign
Subsidiary not covered by clause (ii), such percentage (not more than 65%) as
is specified on Schedule 2 of all the issued and outstanding shares of
all classes of the Capital Stock of each such Foreign Subsidiary Holdco and
each such Foreign Subsidiary owned by such Pledgor.

 

4.3.2        All the shares of the Pledged Stock
pledged by such Pledgor hereunder have been duly and validly issued and are
fully paid and nonassessable.

 

4.3.3        Such Pledgor is the record and
beneficial owner of, and has good title to, the Pledged Securities pledged by
it hereunder, free of any and all Liens or options in favor of, or claims of,
any other Person, except the security interest created by this Agreement and
Liens arising by operation of law or permitted by the Credit Agreement.

 

18

 

4.3.4        Upon delivery to the Administrative Agent
of the certificates evidencing the Pledged Securities held by such Pledgor
together with executed undated stock powers or other instruments of transfer,
the security interest created in such Pledged Securities constituting
certificated securities by this Agreement, assuming the continuing possession
of such Pledged Securities by the Administrative Agent, will constitute a
valid, perfected first priority security interest in such Pledged Securities to
the extent provided in and governed by the Code, enforceable in accordance with
its terms against all creditors of such Pledgor and any Persons purporting to
purchase such Pledged Securities from such Pledgor, except as enforceability
may be affected by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.

 

4.3.5        Upon the obtaining and maintenance of
“control” (as described in the Code) by the Administrative Agent of all Pledged
Securities that constitute uncertificated securities, the security interest
created by this Agreement in such Pledged Securities that constitute uncertificated
securities, will constitute a valid, perfected first priority security interest
in such Pledged Securities constituting uncertificated securities, enforceable
in accordance with its terms against all creditors of such Pledgor and any
persons purporting to purchase such Pledged Securities from such Pledgor, to
the extent provided in and governed by the Code, except as enforceability may
be affected by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.

 

SECTION 5  COVENANTS

 

5.1
Covenants of Each Guarantor.  Each
Guarantor covenants and agrees with the Administrative Agent and the other
Secured Parties that, from and after the date of this Agreement until the
earlier to occur of (i) the date upon which the Loans, any Reimbursement
Obligations, and all other Obligations then due and owing, shall have been paid
in full in cash, no Letter of Credit shall be outstanding (except for Letters
of Credit that have been cash collateralized in a manner satisfactory to the
Issuing Lender) and the Commitments shall have terminated or (ii) as to any
Guarantor, the date upon which all the Capital Stock of such Guarantor shall
have been sold or otherwise disposed of (to a Person other than Holding, the
Parent Borrower or a Subsidiary of either) in accordance with the terms of the
Credit Agreement, such Guarantor shall take, or shall refrain from taking, as
the case may be, each action that is necessary to be taken or not taken, as the
case may be, so that no Default or Event of Default is caused by the failure to
take such action or to refrain from taking such action by such Guarantor or any
of its Subsidiaries.

 

5.2
Covenants of Each Grantor.  Each
Grantor covenants and agrees with the Administrative Agent and the other
Secured Parties that, from and after the date of this Agreement until the
earlier to occur of (i) the date upon which the Loans, any Reimbursement
Obligations and all other Obligations then due and owing shall have been paid
in full in cash, no Letter of Credit shall be outstanding (except for Letters
of Credit that have been cash collateralized in a manner satisfactory to the
Issuing Lender) and the Commitments shall have 

 

19

 

terminated
or (ii) as to any Grantor, the date upon which all the Capital Stock of such
Grantor shall have been sold or otherwise disposed of (to a Person other than
Holding, the Parent Borrower or a Subsidiary of either) in accordance with the
terms of the Credit Agreement:

 

5.2.1        Delivery of Instruments and Chattel Paper.  If
any amount payable under or in connection with any of such Grantor’s Collateral
shall be or become evidenced by any Instrument or Chattel Paper, such Grantor
shall (except as provided in the following sentence) be entitled to retain
possession of all Collateral of such Grantor evidenced by any Instrument or
Chattel Paper, and shall hold all such Collateral in trust for the
Administrative Agent, for the ratable benefit of the Secured Parties.  In the event that an Event of Default shall
have occurred and be continuing, upon the request of the Administrative Agent,
such Instrument or Chattel Paper shall be promptly delivered to the
Administrative Agent, duly indorsed in a manner satisfactory to the
Administrative Agent, to be held as Collateral pursuant to this Agreement.  Such Grantor shall not permit any other
Person to possess any such Collateral at any time other than in connection with
any sale or other disposition of such Collateral in a transaction permitted by
the Credit Agreement.

 

5.2.2        Maintenance of Insurance.  (a) Such
Grantor will maintain, with financially sound and reputable companies,
insurance policies (i) insuring such Grantor’s Inventory and Equipment against
loss by fire, explosion, theft and such other casualties as may be reasonably
satisfactory to the Administrative Agent and (ii) insuring such Grantor, the
Administrative Agent and the other Secured Parties against liability for
personal injury and property damage relating to such Inventory and Equipment,
such policies to be in such form and amounts and having such coverage as may be
reasonably satisfactory to the Administrative Agent.

 

(b)           All such insurance shall (i) provide that no cancellation,
material reduction in amount or material change in coverage thereof shall be
effective until at least 15 days after receipt by the Administrative Agent of
written notice thereof, (ii) name the Administrative Agent as an additional
insured party or loss payee and (iii) include deductibles consistent with past
practice or consistent with industry practice or otherwise reasonably
satisfactory to the Administrative Agent.

 

5.2.3        Payment of Obligations.  Such
Grantor will pay and discharge or otherwise satisfy at or before maturity or
before they become delinquent, as the case may be, all material taxes,
assessments and governmental charges or levies imposed upon such Grantor’s
Collateral or in respect of income or profits therefrom, as well as all
material claims of any kind (including, without limitation, material claims for
labor, materials and supplies) against or with respect to such Grantor’s
Collateral, except that no such tax, assessment, charge or levy need be paid or
satisfied if the amount or validity thereof is currently being contested in
good faith by appropriate proceedings and reserves in conformity with GAAP with
respect thereto have been provided on the books of such Grantor.

 

5.2.4        Maintenance of Perfected Security Interest; Further
Documentation.  (a) Such Grantor shall maintain the security
interest created by this Agreement in such Grantor’s Collateral as a perfected
security interest having at least the priority described in subsection 4.2.2 

 

20

 

and
shall defend such security interest against the claims and demands of all
Persons whomsoever.

 

(b)           Such Grantor will furnish to the Administrative Agent from
time to time statements and schedules further identifying and describing such
Grantor’s Collateral and such other reports in connection with such Grantor’s
Collateral as the Administrative Agent may reasonably request in writing, all
in reasonable detail.

 

(c)           At any time and from time to time, upon the written
request of the Administrative Agent, and at the sole expense of such Grantor,
such Grantor will promptly and duly execute and deliver such further
instruments and documents and take such further actions as the Administrative
Agent may reasonably request for the purpose of obtaining or preserving the
full benefits of this Agreement and of the rights and powers herein granted by
such Grantor, including, without limitation, the filing of any financing or
continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with respect to the security interests
created hereby.

 

5.2.5        Changes in Name, Jurisdiction of
Organization, etc.  Such
Grantor will not, except upon not less than 30 days’ prior written notice to
the Administrative Agent, change its name or jurisdiction of organization
(whether by merger of otherwise); provided that, promptly after
receiving a written request therefor from the Administrative Agent, such
Grantor shall deliver to the Administrative Agent all additional financing
statements and other documents reasonably requested by the Administrative Agent
to maintain the validity, perfection and priority of the security interests as
and to the extent provided for herein.

 

5.2.6        Notices.  Such Grantor will advise the
Administrative Agent promptly, in reasonable detail, of:

 

(a)           any Lien (other than security interests created hereby or
Liens permitted under the Credit Agreement) on any of such Grantor’s Collateral
which would materially adversely affect the ability of the Administrative Agent
to exercise any of its remedies hereunder; and

 

(b)           the occurrence of any other event which would reasonably
be expected to have a material adverse effect on the security interests created
hereby.

 

5.2.7        Pledged Stock.  In the case of each Grantor
that is an Issuer, such Issuer agrees that (i) it will be bound by the terms of
this Agreement relating to the Pledged Stock issued by it and will comply with
such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in subsection 5.3.1 with respect to the Pledged Stock issued by it
and (iii) the terms of subsections 6.3(c) and 6.7 shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it
pursuant to subsection 6.3(c) or 6.7 with respect to the Pledged Stock issued
by it.

 

5.2.8        Accounts Receivable.  (a)
Other than in the ordinary course of business or as permitted by the Loan
Documents, such Grantor will not (i) grant any extension of the time of payment
of any of such Grantor’s Accounts Receivable, (ii) compromise or settle any
such 

 

21

 

Account
Receivable for less than the full amount thereof, (iii) release, wholly or
partially, any Person liable for the payment of any Account Receivable, (iv)
allow any credit or discount whatsoever on any such Account Receivable or (v)
amend, supplement or modify any Account Receivable unless such extensions,
compromises, settlements, releases, credits or discounts would not reasonably
be expected to materially adversely affect the value of the Accounts Receivable
constituting Collateral taken as a whole.

 

(b)           Such Grantor will deliver to the Administrative Agent a
copy of each material demand, notice or document received by it that questions
or calls into doubt the validity or enforceability of more than 10% of the
aggregate amount of the then outstanding Accounts Receivable.

 

5.2.9        Maintenance of Records.  Such
Grantor will keep and maintain at its own cost and expense reasonably
satisfactory and complete records of its Collateral, including, without
limitation, a record of all payments received and all credits granted with
respect to such Collateral, and shall mark such records to evidence this
Agreement and the Liens and the security interests created hereby.

 

5.2.10      Acquisition of Intellectual Property. 
Within 90 days after the end of each calendar year, such Grantor will
notify the Administrative Agent of any acquisition by such Grantor of (i) any
registration of any material Copyright, Patent or Trademark or (ii) any
exclusive rights under a material Copyright License, Patent License or
Trademark License constituting Collateral, and shall take such actions as may
be reasonably requested by the Administrative Agent (but only to the extent
such actions are within such Grantor’s control) to perfect the security
interest granted to the Administrative Agent and the other Secured Parties
therein, to the extent provided herein in respect of any Copyright, Patent or
Trademark constituting Collateral on the date hereof, by (x) the execution and
delivery of an amendment or supplement to this Agreement (or amendments to any
such agreement previously executed or delivered by such Grantor) and/or (y) the
making of appropriate filings (I) of financing statements under the Uniform
Commercial Code of any applicable jurisdiction and/or (II) in the United States
Patent and Trademark Office, or with respect to Copyrights and Copyright
Licenses, another applicable office).

 

5.2.11      Protection of Trade Secrets.  Such
Grantor shall take all steps which it deems commercially reasonable to preserve
and protect the secrecy of all material Trade Secrets of such Grantor.

 

5.2.12      Commercial Tort Claims.  All
Commercial Tort Claims of each Grantor in existence on the date of this
Agreement, known to such Grantor after reasonably inquiry, are described in
Schedule 7 hereto.  If any Grantor shall
at any time after the date of this Agreement acquire a Commercial Tort Claim in
an amount (taking the greater of the aggregate claimed damages thereunder or
the reasonably estimated value thereof) of $3,000,000 or more, such Grantor
shall promptly notify the Administrative Agent thereof in a writing signed by
such Grantor and describing the details thereof and shall grant to the
Administrative Agent in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance reasonably satisfactory to the Administrative Agent.

 

22

 

5.2.13      Deposit Accounts; Etc.  No Grantor (other than any Foreign
Subsidiary of the Parent Borrower) maintains, or at any time after the date of
this Agreement shall establish or maintain, any demand, time, savings, passbook
or similar account, except for such accounts maintained with a bank (as defined
in Section 9-102 of the Code) whose jurisdiction (determined in accordance with
Section 9-304 of the Code) is within the United States, any State thereof or
the District of Columbia, other than such accounts whose jurisdiction is not within
the United States, any State thereof or the District of Columbia (x) which have
an aggregate balance at any time outstanding of less than $10,000,000 and (y)
any collection accounts maintained for the purpose of collecting Accounts
Receivable with respect to any such jurisdiction.  Schedule 8 hereto accurately sets forth, as of the date of
this Agreement, for each Grantor, each Deposit Account maintained by such
Grantor within the United States, any State thereof or the District of Columbia
(including a description thereof and the respective account number) and the
name of the respective bank with which such Deposit Account is maintained with
an outstanding balance in excess of $250,000 after giving effect to the
Transactions. For each Deposit Account maintained by any Grantor within the
United States, any State thereof or the District of Columbia on or after the
date of this Agreement (other than the Collateral Proceeds Account or any other
Deposit Account maintained with the Administrative Agent and any Deposit
Account with an outstanding balance less than $250,000 at any time on or after
the date of this Agreement), the respective Grantor shall cause the bank with
which such Deposit Account is maintained to execute and deliver to the
Administrative Agent, within 60 days after the date of this Agreement or, if
later, at the time of the establishment of the respective Deposit Account or at
such time when the outstanding balance of such Deposit Account is in excess of
$250,000, a “control agreement” substantially in the form of Annex 3 hereto
(appropriately completed), with such changes thereto as may be reasonably
acceptable to the Administrative Agent and with respect to such Deposit
Accounts established after the date of this Agreement or with respect to any
such Deposit Account whose outstanding balance is in excess of $250,000, such
Grantor shall furnish to the Administrative Agent a supplement to Schedule 8
hereto containing the relevant information with respect to the respective
Deposit Account and the bank with which same is established..  If any bank with which a Deposit Account is
maintained refuses to, or does not, enter into such a “control agreement”, then
the respective Grantor shall promptly (and in any event within 60 days after
the date of this Agreement or, if later, 60 days after the establishment of
such account) close the respective Deposit Account and transfer all balances
therein to the Collateral Proceeds Account or another Deposit Account meeting
the requirements of this subsection 5.2.13. 
If any bank with which a Deposit Account is maintained refuses to
subordinate all its claims with respect to such Deposit Account to the
Administrative Agent’s security interest therein on substantially the terms and
to the extent set forth in the “control agreement” in Annex 3 hereto or on
terms reasonably satisfactory to the Administrative Agent, then the
Administrative Agent, at its option acting reasonably, may (x) require that
such Deposit Account be terminated in accordance with the immediately preceding
sentence or (y) agree to a “control agreement” without such subordination, provided
that in such event the Administrative Agent may at any time, at its option
acting reasonably, subsequently require that such Deposit Account be terminated
(within 60 days after notice from the Administrative Agent) in accordance with
the requirements of the immediately preceding sentence.

 

5.3
Covenants of Each Pledgor.  Each
Pledgor covenants and agrees with the Administrative Agent and the other
Secured Parties that, from and after the date of this Agreement until the
earlier to occur of (i) the Loans, any Reimbursement Obligations, and all 

 

23

 

other
Obligations then due and owing shall have been paid in full in cash, no Letter
of Credit shall be outstanding (except for Letters of Credit that have been
cash collateralized in a manner satisfactory to the Issuing Lender) and the
Commitments shall have terminated or (ii) as to any Pledgor, all the Capital
Stock of such Pledgor shall have been sold or otherwise disposed of (to a
Person other than Holding, the Parent Borrower or a Subsidiary of either) as
permitted under the terms of the Credit Agreement:

 

5.3.1        Additional Shares.  If
such Pledgor shall, as a result of its ownership of its Pledged Stock, become
entitled to receive or shall receive any stock certificate (including, without
limitation, any stock certificate representing a stock dividend or a
distribution in connection with any reclassification, increase or reduction of
capital or any certificate issued in connection with any reorganization), stock
option or similar rights in respect of the Capital Stock of any Issuer, whether
in addition to, in substitution of, as a conversion of, or in exchange for, any
shares of the Pledged Stock, or otherwise in respect thereof, such Pledgor
shall accept the same as the agent of the Administrative Agent and the other
Secured Parties, hold the same in trust for the Administrative Agent and the
other Secured Parties and deliver the same forthwith to the Administrative
Agent in the exact form received, duly indorsed by such Pledgor to the
Administrative Agent, if required, together with an undated stock power
covering such certificate duly executed in blank by such Grantor, to be held by
the Administrative Agent, subject to the terms hereof, as additional collateral
security for the Obligations (subject to subsection 3.3 and provided
that in no event shall there be pledged, nor shall any Pledgor be required to
pledge, more than 65% of any series of the outstanding Capital Stock of any
Foreign Subsidiary pursuant to this Agreement).  Any sums paid upon or in respect of the Pledged Stock upon the
liquidation or dissolution of any Issuer (except any liquidation or dissolution
of any Subsidiary of the Parent Borrower in accordance with the Credit
Agreement) shall be paid over to the Administrative Agent to be held by it
hereunder as additional collateral security for the Obligations, and in case
any distribution of capital shall be made on or in respect of the Pledged Stock
or any property shall be distributed upon or with respect to the Pledged Stock
pursuant to the recapitalization or reclassification of the capital of any
Issuer or pursuant to the reorganization thereof, the property so distributed
shall, unless otherwise subject to a perfected security interest in favor of
the Administrative Agent, be delivered to the Administrative Agent to be held
by it hereunder as additional collateral security for the Obligations.  If any sums of money or property so paid or
distributed in respect of the Pledged Stock shall be received by such Pledgor,
such Pledgor shall, until such money or property is paid or delivered to the
Administrative Agent, hold such money or property in trust for the Secured
Parties, segregated from other funds of such Pledgor, as additional collateral
security for the Obligations.

 

5.3.2        Maintenance of Pledged Stock. 
Without the prior written consent of the Administrative Agent, such
Pledgor will not (except as permitted by the Credit Agreement) (i) vote to
enable, or take any other action to permit, any Issuer to issue any stock or
other equity securities of any nature or to issue any other securities
convertible into, or granting the right to purchase or exchange for, any stock
or other equity securities of any nature of any Issuer, (ii) sell, assign,
transfer, exchange, or otherwise dispose of, or grant any option with respect
to, the Pledged Securities or Proceeds thereof, (iii) create, incur or permit
to exist any Lien or option in favor of, or any material adverse claim of any
Person with respect to, any of the Pledged Securities or Proceeds thereof, or
any interest therein, except for the security interests created by this
Agreement or Liens arising by operation of law or (iv) enter into any agreement
or

 

24

 

undertaking
restricting the right or ability of such Pledgor or the Administrative Agent to
sell, assign or transfer any of the Pledged Securities or Proceeds thereof.

 

5.3.3        Pledged Notes.  Such Pledgor shall, on the date of this
Agreement (or on such later date upon which it becomes a party hereto pursuant
to subsection 9.15), deliver to the Administrative Agent all Pledged Notes then
held by such Pledgor (excluding any Pledged Note the principal amount of which
does not exceed $3,000,000), endorsed in blank or, at the request of the
Administrative Agent, endorsed to the Administrative Agent.  Furthermore, within ten Business Days after
any Pledgor obtains a Pledged Note with a principal amount in excess of
$3,000,000, such Pledgor shall cause such Pledged Note to be delivered to the
Administrative Agent, endorsed in blank or, at the request of the
Administrative Agent, endorsed to the Administrative Agent.

 

5.3.4        Maintenance of First Priority Security Interest.  Such
Pledgor shall maintain the security interest created by this Agreement in such
Pledgor’s Pledged Collateral as a perfected security interest having at least
the priority described in subsection 4.3.4 or 4.3.5, as applicable, and shall
defend such security interest against the claims and demands of all Persons
whomsoever.  At any time and from time
to time, upon the written request of the Administrative Agent, and at the sole
expense of such Pledgor, such Pledgor will promptly and duly execute and
deliver such further instruments and documents and take such further actions as
the Administrative Agent may reasonably request for the purpose of obtaining or
preserving the full benefits of this Agreement and of the rights and powers
herein granted by such Pledgor.

 

5.4
Covenants of Holding.  Holding covenants and agrees
with the Administrative Agent and the other Secured Parties that, from and
after the date of this Agreement until the Loans, any Reimbursement Obligations
and all other Obligations then due and owing, shall have been paid in full in
cash, no Letter of Credit shall be outstanding 
(other than Letters of Credit that have been cash collateralized in a manner
satisfactory to the Issuing Lender) and the Commitments shall have terminated,
Holding:

 

(I)            shall not conduct, transact or otherwise engage, or
commit to conduct, transact or otherwise engage, in any business or operations
other than (i) transactions contemplated by the Loan Documents or the provision
of administrative, legal, accounting and management services to, or on behalf
of, any of its Subsidiaries, (ii) the ownership of the Capital Stock of the
Parent Borrower and Small FSHCo, the sale or transfer of its ownership
interests in Small FSHCo (to the extent not prohibited by the Credit Agreement)
and the exercise of rights and performance of obligations in connection
therewith, (iii) the entry into, and exercise of rights and performance of
obligations in respect of (A) the Transaction Documents, this Agreement and any
other Loan Documents to which it is a party; any other agreement to which it is
a party on the date hereof; the Existing Notes, the 2004 Senior Note Indenture,
the 2004 Senior Subordinated Note Indenture or any guarantee thereof; and any
guarantee of Indebtedness or other obligations of any of its Subsidiaries
permitted pursuant to the Loan Documents; in each case as amended,
supplemented, waived or otherwise modified from time to time, and any
refinancings, refundings, renewals or extensions thereof, (B) contracts and
agreements with officers, directors and employees of it or any Subsidiary
thereof relating to their employment or directorships, (C) insurance policies
and related contracts and agreements, and (D) equity subscription agreements,
registration rights agreements, voting and other stockholder

 

25

 

agreements,
engagement letters, underwriting agreements and other agreements in respect of
its equity securities or any offering, issuance or sale thereof, including but
not limited to in respect of the Management Subscription Agreements, (iv) the
offering, issuance, sale and repurchase or redemption of, and dividends or
distributions on its equity securities, (v) the filing of registration
statements, and compliance with applicable reporting and other obligations,
under federal, state or other securities laws, (vi) the listing of its equity
securities and compliance with applicable reporting and other obligations in
connection therewith, (vii) the retention of (and the entry into, and exercise
of rights and performance of obligations in respect of, contracts and
agreements with) transfer agents, private placement agents, underwriters,
counsel, accountants and other advisors and consultants, (viii) the performance
of obligations under and compliance with its certificate of incorporation and
by-laws, or any applicable law, ordinance, regulation, rule, order, judgment,
decree or permit, including, without limitation, as a result of or in
connection with the activities of its Subsidiaries, (ix) the incurrence and
payment of its operating and business expenses and any taxes for which it may
be liable, (x) making loans to or other Investments in, or incurrence of
Indebtedness from, its Subsidiaries as and to the extent not prohibited by the
Credit Agreement, and (xi) other activities incidental or related to the
foregoing;

 

(II)  Holding shall not incur any Indebtedness for
borrowed money owing to, or any Guarantee Obligations in respect of
Indebtedness for borrowed money of, any Person (other than Small FSHCo, the
Parent Borrower or any of their respective Subsidiaries, or any Management
Investors), or issue Indebtedness directly as consideration for any
acquisition, merger or similar business combination (other than by the Parent
Borrower or any of its Subsidiaries), in each case, pursuant to the foregoing
clause (I) unless:

 

(A)          all or substantially all of the net
cash proceeds to Holding of such incurrence (if any) are contributed as equity,
loaned or otherwise distributed to the Parent Borrower promptly thereafter;
provided that the test set forth in preceding clause (A) may not be utilized in
instances where Holding directly issues Indebtedness as consideration for an
acquisition, merger or similar business combination, or

 

(B)           (x) written notice of such incurrence
has been provided to each of Moody’s, S&P and the Administrative Agent no
less than ten (10) Business Days prior to the date of such incurrence, (y)
neither Moody’s nor S&P shall have given notice to the Parent Borrower that
it has downgraded, or intends to downgrade, the rating assigned by it to the
Indebtedness of the Parent Borrower incurred pursuant to the Credit Agreement
primarily as a result of such incurrence and (z) the Administrative shall not
have (1) received notice from Moody’s or S&P that it has downgraded, or
intends to downgrade, the rating assigned by it to the Indebtedness of the
Parent Borrower incurred pursuant to the Credit Agreement primarily as a result
of such incurrence and (2) given notice to the Parent Borrower that it has
received such notice from Moody’s or S&P, or

 

(C)           no Downgrade Event shall occur
primarily as a result of such incurrence within 30 days after the date of such
incurrence

 

(it being understood that this clause (II)
shall not restrict Holding from incurring or suffering to exist any Lien on any
Capital Stock or Indebtedness of, or other ownership interests in, any of its

 

26

 

Subsidiaries (other than Small FSHCo, the
Parent Borrower and their respective Subsidiaries), to secure any Indebtedness
of such Subsidiaries); and

 

(III)         shall, for so long as Small FSHCo is not a Subsidiary of the
Parent Borrower, cause Small FSHCo not to:

 

(v)           conduct, transact or otherwise
engage, or commit to conduct, transact or otherwise engage, in any business or
operations other than (i) the Small FSHCo Immobilien Acquisition and
transactions directly relating thereto, and the provision of administrative,
legal, accounting and management services to, or on behalf of, Immobilien, (ii)
its holding of Indebtedness owing to it by VWR International bvba in an
aggregate principal amount not exceeding 500,000 Euros (together with any
capitalized interest, expenses or fees) and the exercise of rights and
performance of obligations in connection therewith, (iii) the entry into, and
exercise of rights and performance of obligations in respect of (A) the
Transaction Documents and any Loan Documents to which it is a party; and any
guarantee of Indebtedness or other obligations of Immobilien permitted pursuant
to the Loan Documents; in each case as amended, supplemented, waived or
otherwise modified from time to time, (B) contracts and agreements with
officers, directors and employees of Small FSHCo or Immobilien relating to
their employment or directorships, and (C) insurance policies and related
contracts and agreements, (iv) compliance with applicable reporting and other
obligations, under federal, state or other securities laws, (v) the retention
of (and the entry into, and exercise of rights and performance of obligations
in respect of, contracts and agreements with) counsel, accountants and other
advisors and consultants, (vi) the performance of obligations under and
compliance with its certificate of incorporation and by-laws, or any applicable
law, ordinance, regulation, rule, order, judgment, decree or permit, including,
without limitation, as a result of or in connection with the activities of
Immobilien, (vii) the incurrence and payment of its operating and business
expenses and any taxes for which it may be liable, and (viii) other activities
incidental or related to the foregoing;

 

(w)          transfer, issue or offer the Capital
Stock of Immobilien to any Person other than Holding or one of its
Subsidiaries;

 

(x)            incur, assume, become liable or
suffer to exist any Indebtedness for borrowed money or any other material
Indebtedness or any Guarantee Obligations of any Indebtedness (other than of
Immobilien), in each case except as would be permitted pursuant to subsections
8.2(a) and 8.4(l) of the Credit Agreement if Small FSHCo were subject to the
negative covenants in Section 8.2 and 8.4 of the Credit Agreement;

 

(y)           own the Capital Stock of any Person
other than not more than approximately 6% of the Capital Stock of Immobilien;
or.

 

(z)            accept from Immobilien any dividend,
distribution or other payment to it unless Small FSHCo dividends the amount so
paid to it to Holding

 

27

 

(net of any amount applied
to pay the expenses of Small FSHCo) and Holding applies such amount to pay its
expenses.

 

SECTION 6  REMEDIAL PROVISIONS

 

6.1
Certain Matters Relating to
Accounts. 
(a)  At any time and from time to
time after the occurrence and during the continuance of an Event of Default,
the Administrative Agent shall have the right to make test verifications of the
Accounts Receivable in any reasonable manner and through any reasonable medium
that it reasonably considers advisable, and the relevant Grantor shall furnish
all such assistance and information as the Administrative Agent may reasonably
require in connection with such test verifications.  At any time and from time to time after the occurrence and during
the continuance of an Event of Default, upon the Administrative Agent’s
reasonable request and at the expense of the relevant Grantor, such Grantor
shall cause independent public accountants or others reasonably satisfactory to
the Administrative Agent to furnish to the Administrative Agent reports showing
reconciliations, aging and test verifications of, and trial balances for, the
Accounts Receivable.

 

(b)           The Administrative Agent hereby authorizes each Grantor to
collect such Grantor’s Accounts Receivable and the Administrative Agent may
curtail or terminate said authority at any time after the occurrence and during
the continuance of an Event of Default specified in subsection 9(a) of the
Credit Agreement.  If required by the
Administrative Agent at any time after the occurrence and during the
continuance of an Event of Default specified in subsection 9(a) of the Credit
Agreement, any Proceeds constituting payments or other cash proceeds of
Accounts Receivables, when collected by such Grantor, (i) shall be forthwith
(and, in any event, within two Business Days of receipt by such Grantor)
deposited in, or otherwise transferred by such Grantor to, the Collateral
Proceeds Account, subject to withdrawal by the Administrative Agent for the
account of the Secured Parties only as provided in Section 6.5, and (ii) until
so turned over, shall be held by such Grantor in trust for the Administrative
Agent and the other Secured Parties, segregated from other funds of such
Grantor.  All Proceeds constituting
collections or other cash proceeds of Accounts Receivable while held by the
Collateral Account Bank (or by any Grantor in trust for the benefit of the
Administrative Agent and the other Secured Parties) shall continue to be
collateral security for all of the Obligations and shall not constitute payment
thereof until applied as hereinafter provided. 
At any time when an Event of Default specified in subsection 9(a) of the
Credit Agreement has occurred and is continuing, at the Administrative Agent’s
election, the Administrative Agent may apply all or any part of the funds on
deposit in the Collateral Proceeds Account established by the relevant Grantor
to the payment of the Obligations of such Grantor then due and owing, such
application to be made as set forth in Section 6.5 hereof.  So long as no Event of Default has occurred
and is continuing, the funds on deposit in the Collateral Proceeds Account
shall be remitted as provided in Section 6.1(d) hereof.

 

(c)           At any time and from time to time after the occurrence and
during the continuance of an Event of Default specified in subsection 9(a) of
the Credit Agreement, at the Administrative Agent’s request, each Grantor shall
deliver to the Administrative Agent copies or, if required by the
Administrative Agent for the enforcement thereof or foreclosure thereon,
originals of all documents held by such Grantor evidencing, and relating to,
the agreements and transactions which gave rise to such Grantor’s Accounts
Receivable, including, without

 

28

 

limitation, all statements
relating to such Grantor’s Accounts Receivable and all orders, invoices and
shipping receipts.

 

(d)           So long as no Event of Default has occurred and is
continuing, the Administrative Agent shall instruct the Collateral Account Bank
to promptly remit any funds on deposit in each Grantor’s Collateral Proceeds
Account to such Grantor’s General Fund Account.  In the event that an Event of Default has occurred and is
continuing, the Administrative Agent and the Grantors agree that the Administrative
Agent, at its option, may require that each Collateral Proceeds Account and the
General Funds Account of each Grantor be established at the Administrative
Agent.  Each Grantor shall have the
right, at any time and from time to time, to withdraw such of its own funds
from its own General Fund Account, and to maintain such balances in its General
Fund Account, as it shall deem to be necessary or desirable.

 

6.2
Communications with Obligors;
Grantors Remain Liable. 
(a)  The Administrative Agent in
its own name or in the name of others may at any time and from time to time
after the occurrence and during the continuance of an Event of Default
specified in subsection 9(a) of the Credit Agreement, communicate with obligors
under the Accounts Receivable and parties to the Contracts (in each case, to
the extent constituting Collateral) to verify with them to the Administrative
Agent’s satisfaction the existence, amount and terms of any Accounts Receivable
or Contracts.

 

(b)            Upon the request of the Administrative Agent at any time
after the occurrence and during the continuance of an Event of Default
specified in subsection 9(a) of the Credit Agreement, each Grantor shall notify
obligors on such Grantor’s Accounts Receivable and parties to such Grantor’s Contracts
(in each case, to the extent constituting Collateral) that such Accounts
Receivable and such Contracts have been assigned to the Administrative Agent,
for the ratable benefit of the Secured Parties, and that payments in respect
thereof shall be made directly to the Administrative Agent.

 

(c)            Anything herein to the contrary notwithstanding, each
Grantor shall remain liable under each of such Grantor’s Accounts Receivable to
observe and perform all the conditions and obligations to be observed and performed
by it thereunder, all in accordance with the terms of any agreement giving rise
thereto.  Neither the Administrative
Agent nor any Lender shall have any obligation or liability under any Account
Receivable (or any agreement giving rise thereto) by reason of or arising out
of this Agreement or the receipt by the Administrative Agent or any other
Secured Party of any payment relating thereto, nor shall the Administrative
Agent or any other Secured Party be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Account Receivable (or any
agreement giving rise thereto) to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts that may have been assigned to it or to which it may be entitled
at any time or times.

 

6.3
Pledged Stock.  (a) 
Unless an Event of Default shall have occurred and be continuing and the
Administrative Agent shall have given notice to the relevant Pledgor of the
Administrative Agent’s intent to exercise its corresponding rights pursuant to
subsection 6.3(b),

 

29

 

each
Pledgor shall be permitted to receive all cash dividends and distributions paid
in respect of the Pledged Stock (subject to the last two sentences of Section
5.3.1 of this Agreement) and all payments made in respect of the Pledged Notes,
to the extent permitted in the Credit Agreement, and to exercise all voting and
corporate rights with respect to the Pledged Stock; provided, however,
that no vote shall be cast or corporate right exercised or such other action
taken (other than in connection with a transaction expressly permitted by the
Credit Agreement) which, in the Administrative Agent’s reasonable judgment,
would materially impair the Pledged Stock or the related rights or remedies of
the Secured Parties or which would be inconsistent with or result in any
violation of any provision of the Credit Agreement, this Agreement or any other
Loan Document.

 

(b)            If an Event of Default shall occur and be continuing and
the Administrative Agent shall give notice of its intent to exercise such
rights to the relevant Pledgor or Pledgors, (i) the Administrative Agent shall
have the right to receive any and all cash dividends, payments or other
Proceeds paid in respect of the Pledged Stock and make application thereof to
the Obligations of the relevant Pledgor in such order as is provided in
subsection 6.5, and (ii) any or all of the Pledged Stock shall be registered in
the name of the Administrative Agent or its nominee, and the Administrative
Agent or its nominee may thereafter exercise (x) all voting, corporate and
other rights pertaining to such Pledged Stock at any meeting of shareholders of
the relevant Issuer or Issuers or otherwise and (y) any and all rights of
conversion, exchange, subscription and any other rights, privileges or options
pertaining to such Pledged Stock as if it were the absolute owner thereof
(including, without limitation, the right to exchange at its discretion any and
all of the Pledged Stock upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate structure of any
Issuer, or upon the exercise by the relevant Pledgor or the Administrative
Agent of any right, privilege or option pertaining to such Pledged Stock, and
in connection therewith, the right to deposit and deliver any and all of the
Pledged Stock with any committee, depositary, transfer agent, registrar or
other designated agency upon such terms and conditions as the Administrative
Agent may reasonably determine), all without liability (other than for its
gross negligence or willful misconduct) except to account for property actually
received by it, but the Administrative Agent shall have no duty to any Pledgor
to exercise any such right, privilege or option and shall not be responsible
for any failure to do so or delay in so doing, provided that the
Administrative Agent shall not exercise any voting or other consensual rights
pertaining to the Pledged Stock in any way that would constitute an exercise of
the remedies described in subsection 6.6 other than in accordance with
subsection 6.6.

 

(c)            Each Pledgor hereby authorizes and instructs each Issuer
or maker of any Pledged Securities pledged by such Pledgor hereunder to (i)
comply with any instruction received by it from the Administrative Agent in
writing that (x) states that an Event of Default has occurred and is continuing
and (y) is otherwise in accordance with the terms of this Agreement, without
any other or further instructions from such Pledgor, and each Pledgor agrees that
each Issuer or maker shall be fully protected in so complying, and (ii) unless
otherwise expressly permitted hereby, pay any dividends or other payments with
respect to the Pledged Securities directly to the Administrative Agent.

 

6.4
Proceeds to be Turned Over To
Administrative Agent.  In addition to the rights of the
Administrative Agent and the other Secured Parties specified in subsection 6.1
with

 

30

 

respect
to payments of Accounts Receivable, if an Event of Default shall occur and be
continuing, and the Administrative Agent shall have instructed any Grantor to
do so, all Proceeds received by such Grantor consisting of cash, checks and
other Cash Equivalent items shall be held by such Grantor in trust for the
Administrative Agent and the other Secured Parties, segregated from other funds
of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned
over to the Administrative Agent in the exact form received by such Grantor
(duly indorsed by such Grantor to the Administrative Agent, if required).  All Proceeds received by the Administrative
Agent hereunder shall be held by the Administrative Agent in the relevant
Collateral Proceeds Account maintained under its sole dominion and control.  All Proceeds while held by the Administrative
Agent in such Collateral Proceeds Account (or by the relevant Grantor in trust
for the Administrative Agent and the other Secured Parties) shall continue to
be held as collateral security for all the Obligations of such Grantor and
shall not constitute payment thereof until applied as provided in subsection
6.5

 

6.5
Application of Proceeds.  It
is agreed that if an Event of Default shall occur and be continuing, any and
all Proceeds of the relevant Granting Party’s Collateral (as defined in the
Credit Agreement) received by the Administrative Agent (whether from the
relevant Granting Party or otherwise) shall be held by the Administrative Agent
for the benefit of the Secured Parties as collateral security for the
Obligations of the relevant Granting Party (whether matured or unmatured),
and/or then or at any time thereafter may, in the sole discretion of the
Administrative Agent, be applied by the Administrative Agent against the
Obligations of the relevant Granting Party then due and owing in the following
order of priority:

 

FIRST,
to the payment of all reasonable costs and expenses incurred by the
Administrative Agent in connection with this Agreement, the Credit Agreement,
any other Loan Document or any of the Obligations of the relevant Granting
Party, including, without limitation, all court costs and the reasonable fees
and expenses of its agents and legal counsel, and any other reasonable costs or
expenses incurred in connection with the exercise by the Administrative Agent
of any right or remedy under this Agreement, the Credit Agreement, or any other
Loan Document; provided, however, that, if the relevant Granting
party is a Foreign Subsidiary, such Proceeds shall be applied only to the
payment of all reasonable costs and expenses incurred by the Administrative
Agent in connection with the Obligations of such Granting Party;

 

SECOND,
to the ratable satisfaction of all other Obligations of the relevant Granting
Party; provided, however, that, if the relevant Granting Party is
a Foreign Subsidiary, such Proceeds shall be applied only to the payment of the
Obligations of such Granting Party; and

 

THIRD,
to the relevant Granting Party or its successors or assigns, or to whomsoever
may be lawfully entitled to receive the same.

 

6.6
Code and Other Remedies.  If
an Event of Default shall occur and be continuing, the Administrative Agent, on
behalf of the Secured Parties, may exercise, in addition to all other rights
and remedies granted to them in this Agreement and in any other instrument or
agreement securing, evidencing or relating to the Obligations to the extent
permitted by applicable law, all rights and remedies of a secured party under
the Code or any other applicable law. 
Without

 

31

 

limiting
the generality of the foregoing, to the extent permitted by applicable law, the
Administrative Agent, without demand of performance or other demand,
presentment, protest, advertisement or notice of any kind (except any notice
required by law referred to below) to or upon any Granting Party or any other
Person (all and each of which demands, defenses, advertisements and notices are
hereby waived), may in such circumstances, forthwith (subject to the terms of
any documentation governing any Permitted Receivables Transaction) collect,
receive, appropriate and realize upon the Security Collateral, or any part
thereof, and/or may forthwith sell, lease, assign, give option or options to
purchase, or otherwise dispose of and deliver the Security Collateral or any
part thereof (or contract to do any of the foregoing), in one or more parcels
at public or private sale or sales, at any exchange, broker’s board or office
of the Administrative Agent or any other Secured Party or elsewhere upon such
terms and conditions as it may deem advisable and at such prices as it may deem
best, for cash or on credit or for future delivery without assumption of any
credit risk.  The Administrative Agent
or any other Secured Party shall have the right, to the extent permitted by
law, upon any such sale or sales, to purchase the whole or any part of the
Security Collateral so sold, free of any right or equity of redemption in such
Granting Party, which right or equity is hereby waived and released.  Each Granting Party further agrees, at the
Administrative Agent’s request (subject to the terms of any documentation
governing any Permitted Receivables Transaction), to assemble the Security
Collateral and make it available to the Administrative Agent at places which
the Administrative Agent shall reasonably select, whether at such Granting
Party’s premises or elsewhere.  The
Administrative Agent shall apply the net proceeds of any action taken by it
pursuant to this subsection 6.6, after deducting all reasonable costs and
expenses of every kind incurred in connection therewith or incidental to the
care or safekeeping of any of the Security Collateral or in any way relating to
the Security Collateral or the rights of the Administrative Agent and the other
Secured Parties hereunder, including, without limitation, reasonable attorneys’
fees and disbursements, to the payment in whole or in part of the Obligations
of the relevant Granting Party then due and owing, in the order of priority
specified in subsection 6.5 above, and only after such application and after
the payment by the Administrative Agent of any other amount required by any
provision of law, including, without limitation, Section 9-615(a)(3) of the
Code, need the Administrative Agent account for the surplus, if any, to such
Granting Party.  To the extent permitted
by applicable law, (i) such Granting Party waives all claims, damages and
demands it may acquire against the Administrative Agent or any other Secured
Party arising out of the repossession, retention or sale of the Security
Collateral, other than any such claims, damages and demands that may arise from
the gross negligence or willful misconduct of any of the Administrative Agent
or such other Secured Party, and (ii) if any notice of a proposed sale or other
disposition of Security Collateral shall be required by law, such notice shall
be deemed reasonable and proper if given at least 10 days before such sale or
other disposition.

 

6.7
Registration Rights.  (a) If the Administrative
Agent shall determine to exercise its right to sell any or all of the Pledged
Stock pursuant to subsection 6.6(a), and if in the reasonable opinion of the
Administrative Agent it is necessary or reasonably advisable to have the
Pledged Stock, or that portion thereof to be sold, registered under the
provisions of the Securities Act, the relevant Pledgor will use its reasonable
best efforts to cause the Issuer thereof to (i) execute and deliver, and use
its best efforts to cause the directors and officers of such Issuer to execute
and deliver, all such instruments and documents, and do or cause to be done all
such other acts as may be, in the reasonable opinion of the Administrative
Agent, necessary or advisable to register such Pledged Stock, or that portion
thereof to be sold, under the provisions of the Securities Act, (ii) use its
reasonable best efforts to cause the registration statement

 

32

 

relating
thereto to become effective and to remain effective for a period of not more
than one year from the date of the first public offering of such Pledged Stock,
or that portion thereof to be sold, and (iii) make all amendments thereto
and/or to the related prospectus which, in the reasonable opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto.  Such Pledgor agrees to use its reasonable
best efforts to cause such Issuer to comply with the provisions of the
securities or “Blue Sky” laws of any and all states and the District of
Columbia that the Administrative Agent shall reasonably designate and to make
available to its security holders, as soon as practicable, an earnings
statement (which need not be audited) that will satisfy the provisions of
Section 11(a) of the Securities Act.

 

(b)           Such Pledgor recognizes that the Administrative Agent may
be unable to effect a public sale of any or all such Pledged Stock, by reason
of certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may be compelled to resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale thereof.  Such Pledgor acknowledges and agrees that
any such private sale may result in prices and other terms less favorable than
if such sale were a public sale and, notwithstanding such circumstances, to the
extent permitted by applicable law, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner.  The Administrative Agent shall be under no
obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even
if such Issuer would agree to do so.

 

(c)           Such Pledgor agrees to use its reasonable best efforts to
do or cause to be done all such other acts as may be necessary to make such
sale or sales of all or any portion of such Pledged Stock pursuant to this
subsection 6.7 valid and binding and in compliance with any and all other
applicable Requirements of Law.  Such
Pledgor further agrees that a breach of any of the covenants contained in this
subsection 6.7 will cause irreparable injury to the Administrative Agent and
the Lenders, that the Administrative Agent and the Lenders have no adequate
remedy at law in respect of such breach and, as a consequence, that each and
every covenant contained in this subsection 6.7 shall be specifically
enforceable against such Pledgor, and to the extent permitted by applicable
law, such Pledgor hereby waives and agrees not to assert any defenses against
an action for specific performance of such covenants except for a defense that
no Event of Default has occurred or is continuing under the Credit Agreement.

 

6.8
Waiver; Deficiency.  Each Granting Party shall
remain liable for any deficiency if the proceeds of any sale or other
disposition of the Security Collateral are insufficient to pay in full, the
Loans, Reimbursement Obligations constituting Obligations of such Granting
Party and, to the extent then due and owing, all other Obligations of such
Granting Party and the reasonable fees and disbursements of any attorneys
employed by the Administrative Agent or any other Secured Party to collect such
deficiency.

 

33

 

SECTION 7  THE ADMINISTRATIVE AGENT

 

7.1
Administrative Agent’s Appointment as
Attorney-in-Fact, etc.  (a) Each
Granting Party hereby irrevocably constitutes and appoints the Administrative
Agent and any authorized officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Granting Party and in the
name of such Granting Party or in its own name, for the purpose of carrying out
the terms of this Agreement, to take any and all appropriate action and to
execute any and all documents and instruments that may be reasonably necessary
or desirable to accomplish the purposes of this Agreement to the extent
permitted by applicable law, provided that the Administrative Agent
agrees not to exercise such power except upon the occurrence and during the
continuance of any Event of Default. 
Without limiting the generality of the foregoing, at any time when an
Event of Default has occurred and is continuing (in each case to the extent
permitted by applicable law), (x) each Pledgor hereby gives the Administrative
Agent the power and right, on behalf of such Pledgor, without notice or assent
by such Pledgor, to execute, in connection with any sale provided for in
subsection 6.6(a) or 6.7, any indorsements, assessments or other instruments of
conveyance or transfer with respect to such Pledgor’s Pledged Collateral, and
(y) each Grantor hereby gives the Administrative Agent the power and right, on
behalf of such Grantor, without notice to or assent by such Grantor, to do any
or all of the following:

 

(i)            subject to the
terms of any documentation governing any Permitted Receivables Transaction, in
the name of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any checks, drafts, notes, acceptances or other instruments
for the payment of moneys due under any Account Receivable of such Grantor that
constitutes Collateral or with respect to any other Collateral of such Grantor
and file any claim or take any other action or institute any proceeding in any
court of law or equity or otherwise deemed appropriate by the Administrative
Agent for the purpose of collecting any and all such moneys due under any
Account Receivable of such Grantor that constitutes Collateral or with respect
to any other Collateral of such Grantor whenever payable;

 

(ii)           in the case of any
Copyright, Patent, or Trademark constituting Collateral of such Grantor,
execute and deliver any and all agreements, instruments, documents and papers
as the Administrative Agent may reasonably request to such Grantor to evidence
the Administrative Agent’s and the Lenders’ security interest in such
Copyright, Patent, or Trademark and the goodwill and general intangibles of
such Grantor relating thereto or represented thereby;

 

(iii)          pay or discharge
taxes and Liens, other than Liens permitted under this Agreement or the other
Loan Documents, levied or placed on the Collateral of such Grantor, effect any
repairs or any insurance called for by the terms of this Agreement and pay all
or any part of the premiums therefor and the costs thereof; and

 

(iv)          subject to the terms
of any documentation governing any Permitted Receivables Transaction, (A)
direct any party liable for any payment under any of the Collateral of such
Grantor to make payment of any and all moneys due or to become due thereunder
directly to the Administrative Agent or as the Administrative Agent shall

 

34

 

direct;
(B) ask or demand for, collect, receive payment of and receipt for, any and all
moneys, claims and other amounts due or to become due at any time in respect of
or arising out of any Collateral of such Grantor; (C) sign and indorse any
invoices, freight or express bills, bills of lading, storage or warehouse
receipts, drafts against debtors, assignments, verifications, notices and other
documents in connection with any of the Collateral of such Grantor; (D)
commence and prosecute any suits, actions or proceedings at law or in equity in
any court of competent jurisdiction to collect the Collateral of such Grantor
or any portion thereof and to enforce any other right in respect of any
Collateral of such Grantor; (E) defend any suit, action or proceeding brought
against such Grantor with respect to any Collateral of such Grantor; (F)
settle, compromise or adjust any such suit, action or proceeding described in
clause (E) above and, in connection therewith, to give such discharges or
releases as the Administrative Agent may deem appropriate; (G) subject to any
existing reserved rights or licenses, assign any Copyright, Patent or Trademark
constituting Collateral of such Grantor (along with the goodwill of the
business to which any such Copyright, Patent or Trademark pertains), for such
term or terms, on such conditions, and in such manner, as the Administrative
Agent shall in its sole discretion determine; and (H) generally, sell,
transfer, pledge and make any agreement with respect to or otherwise deal with
any of the Collateral of such Grantor as fully and completely as though the
Administrative Agent were the absolute owner thereof for all purposes, and do,
at the Administrative Agent’s option and such Grantor’s expense, at any time,
or from time to time, all acts and things which the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral of such Grantor
and the Administrative Agent’s and the other Secured Parties’ security
interests therein and to effect the intent of this Agreement, all as fully and
effectively as such Grantor might do.

 

(b)           The reasonable expenses of the Administrative Agent
incurred in connection with actions undertaken as provided in this subsection 7.1,
together with interest thereon at a rate per annum equal to the rate per annum
at which interest would then be payable on past due ABR Loans that are
Revolving Credit Loans under the Credit Agreement, from the date of payment by
the Administrative Agent to the date reimbursed by the relevant Granting Party,
shall be payable by such Granting Party to the Administrative Agent on demand.

 

(c)           Each Granting Party hereby ratifies all that said attorney
shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable as
to the relevant Granting Party until this Agreement is terminated as to such
Granting Party, and the security interests in the Security Collateral of such
Granting Party created hereby are released.

 

7.2
Duty of Administrative Agent.  The
Administrative Agent’s sole duty with respect to the custody, safekeeping and
physical preservation of the Security Collateral in its possession, under Section
9-207 of the Code or otherwise, shall be to deal with it in the same manner as
the Administrative Agent deals with similar property for its own account.  Neither the Administrative Agent, any other
Secured Party nor any of their respective officers, directors, employees or
agents shall be liable for failure to demand, collect or realize upon any of
the Security Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Security Collateral upon the request
of any Granting Party or any other

 

35

 

Person
or, except as otherwise provided herein, to take any other action whatsoever
with regard to the Security Collateral or any part thereof.  The powers conferred on the Administrative
Agent and the other Secured Parties hereunder are solely to protect the
Administrative Agent’s and the other Secured Parties’ interests in the Security
Collateral and shall not impose any duty upon the Administrative Agent or any
other Secured Party to exercise any such powers.  The Administrative Agent and the other Secured Parties shall be
accountable only for amounts that they actually receive as a result of the
exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Granting Party for any act or
failure to act hereunder, except as otherwise provided herein or for their own
gross negligence or willful misconduct.

 

7.3
Execution of Financing Statements.  Pursuant
to any applicable law, each Granting Party authorizes the Administrative Agent
to file or record financing statements and other filing or recording documents
or instruments with respect to such Granting Party’s Security Collateral
without the signature of such Granting Party in such form and in such filing
offices as the Administrative Agent reasonably determines appropriate to
perfect the security interests of the Administrative Agent under this
Agreement.  Each Granting Party
authorizes the Administrative Agent to use the collateral description “all
personal property” or “all assets” in any such financing statements.  The Administrative Agent agrees to notify
the relevant Granting Party of any financing or continuation statement filed by
it, provided that any failure to give such notice shall not affect the
validity or effectiveness of any such filing.

 

7.4
Authority of Administrative Agent.  Each
Granting Party acknowledges that the rights and responsibilities of the
Administrative Agent under this Agreement with respect to any action taken by
the Administrative Agent or the exercise or non-exercise by the Administrative
Agent of any option, voting right, request, judgment or other right or remedy
provided for herein or resulting or arising out of this Agreement or any
amendment, supplement or other modification of this Agreement shall, as between
the Administrative Agent and the Secured Parties, be governed by the Credit
Agreement and by such other agreements with respect thereto as may exist from
time to time among them, but, as between the Administrative Agent and the
Granting Parties the Administrative Agent shall be conclusively presumed to be
acting as agent for the Secured Parties with full and valid authority so to act
or refrain from acting, and no Granting Party shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

 

7.5
Right of Inspection.  Upon reasonable written
advance notice to any Grantor and as often as may reasonably be desired, or at
any time and from time to time after the occurrence and during the continuation
of an Event of Default, the Administrative Agent shall have reasonable access
during normal business hours to all the books, correspondence and records of
such Grantor, and the Administrative Agent and its representatives may examine
the same, and to the extent reasonable take extracts therefrom and make
photocopies thereof, and such Grantor agrees to render to the Administrative
Agent, at such Grantor’s reasonable cost and expense, such clerical and other
assistance as may be reasonably requested with regard thereto.  The Administrative Agent and its
representatives shall also have the right, upon reasonable advance written
notice to such Grantor subject to any lease restrictions, to enter during
normal business hours into and upon any premises owned, leased or operated by
such Grantor where any

 

36

 

of
such Grantor’s Inventory or Equipment is located for the purpose of inspecting
the same, observing its use or otherwise protecting its interests therein.

 

SECTION 8  NON-LENDER SECURED PARTIES

 

8.1
Rights to Collateral.  (a)  The Non-Lender Secured Parties shall not have any right
whatsoever to do any of the following: 
(i) exercise any rights or remedies with respect to the Collateral (such
term, as used in this Section 8, having the meaning assigned to it in the
Credit Agreement), including, without limitation, the right to (A) enforce any
Liens or sell or otherwise foreclose on any portion of the Collateral, (B)
request any action, institute any proceedings, exercise any voting rights, give
any instructions, make any election, notice account debtors or make collections
with respect to all or any portion of the Collateral or (C) release any Guarantor
under this Agreement or release any Collateral from the Liens of any Security
Document or consent to or otherwise approve any such release; (ii) demand,
accept or obtain any Lien on any Collateral (except for Liens arising under,
and subject to the terms of, this Agreement); (iii) vote in any Bankruptcy Case
or similar proceeding in respect of Holding or any of its Subsidiaries (any
such proceeding, for purposes of this clause (a), a “Bankruptcy”) with
respect to, or take any other actions concerning the Collateral; (iv) receive
any proceeds from any sale, transfer or other disposition of any of the
Collateral (except in accordance with this Agreement); (v) oppose any sale,
transfer or other disposition of the Collateral; (vi) object to any debtor-in-possession
financing in any Bankruptcy which is provided by one or more Lenders among
others (including on a priming basis under Section 364(d) of the Bankruptcy
Code); (vii) object to the use of cash collateral in respect of the Collateral
in any Bankruptcy; or (viii) seek, or object to the Lenders seeking on an equal
and ratable basis, any adequate protection or relief from the automatic stay
with respect to the Collateral in any Bankruptcy.

 

(b)           Each Non-Lender Secured Party, by its acceptance of the
benefits of this Agreement and the other Security Documents, agrees that in
exercising rights and remedies with respect to the Collateral, the
Administrative Agent and the Lenders, with the consent of the Administrative
Agent, may enforce the provisions of the Security Documents and exercise
remedies thereunder and under any other Loan Documents (or refrain from
enforcing rights and exercising remedies), all in such order and in such manner
as they may determine in the exercise of their sole business judgment.  Such exercise and enforcement shall include,
without limitation, the rights to collect, sell, dispose of or otherwise
realize upon all or any part of the Collateral, to incur expenses in connection
with such collection, sale, disposition or other realization and to exercise
all the rights and remedies of a secured lender under the Uniform Commercial
Code of any applicable jurisdiction. 
The Non-Lender Secured Parties hereby agree not to contest or otherwise
challenge any such collection, sale, disposition or other realization of or
upon all or any of the Collateral. 
Whether or not a Bankruptcy Case has been commenced, the Non-Lender
Secured Parties shall be deemed to have consented to any sale or other
disposition of any property, business or assets of Holding or any of its
Subsidiaries and the release of any or all of the Collateral from the Liens of
any Security Document in connection therewith.

 

(c)           Notwithstanding any provision of this subsection 8.1, the
Non-Lender Secured Parties shall be entitled to file any necessary responsive
or defensive pleadings in opposition to any motion, claim, adversary proceeding
or other pleadings (A) in order to prevent any Person from seeking to foreclose
on the Collateral or supersede the Non-Lender Secured

 

37

 

Parties’ claim thereto or
(B) in opposition to any motion, claim, adversary proceeding or other pleading
made by any Person objecting to or otherwise seeking the disallowance of the
claims of the Non-Lender Secured Parties.

 

(d)           Each Non-Lender Secured Party, by its acceptance of the
benefit of this Agreement, agrees that the Administrative Agent and the Lenders
may deal with the Collateral, including any exchange, taking or release of
Collateral, may change or increase the amount of the Borrower Obligations
and/or the Guarantor Obligations, and may release any Guarantor from its
Obligations hereunder, all without any liability or obligation (except as may
be otherwise expressly provided herein) to the Non-Lender Secured Parties.

 

8.2
Appointment of Agent.  Each Non-Lender Secured Party,
by its acceptance of the benefits of this Agreement and the other Security
Documents, shall be deemed irrevocably to make, constitute and appoint the
Administrative Agent, as agent under the Credit Agreement (and all officers,
employees or agents designated by the Administrative Agent) as such Person’s
true and lawful agent and attorney-in-fact, and in such capacity, the
Administrative Agent shall have the right, with power of substitution for the
Non-Lender Secured Parties and in each such Person’s name or otherwise, to
effectuate any sale, transfer or other disposition of the Collateral.  It is understood and agreed that the
appointment of the Administrative Agent as the agent and attorney-in-fact of
the Non-Lender Secured Parties for the purposes set forth herein is coupled
with an interest and is irrevocable.

 

8.3
Waiver of Claims.  To the maximum extent
permitted by law, each Non-Lender Secured Party waives any claim it might have
against the Administrative Agent or the Lenders with respect to, or arising out
of, any action or failure to act or any error of judgment, negligence, or
mistake or oversight whatsoever on the part of the Administrative Agent or the
Lenders or their respective directors, officers, employees or agents with
respect to any exercise of rights or remedies under the Loan Documents or any
transaction relating to the Collateral (including, without limitation, any such
exercise described in subsection 8.1(b) above), except for any such action or
failure to act which constitutes willful misconduct or gross negligence of such
Person.  Neither the Administrative
Agent nor any Lender nor any of their respective directors, officers, employees
or agents shall be liable for failure to demand, collect or realize upon any of
the Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of Holding, any
Subsidiary of Holding, any Non-Lender Secured Party or any other Person or to
take any other action or forbear from doing so whatsoever with regard to the
Collateral or any part thereof, except for any such action or failure to act
which constitutes willful misconduct or gross negligence of such Person.

 

SECTION 9  MISCELLANEOUS

 

9.1
Amendments in Writing.  None of the terms or
provisions of this Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by each affected Granting
Party and the Administrative Agent, provided that (a) any provision of
this Agreement imposing obligations on any Granting Party may be waived by the
Administrative Agent in a written instrument executed by the Administrative
Agent and (b) notwithstanding anything to the contrary in subsection 11.1 of
the Credit Agreement, no such waiver and no such amendment or modification
shall amend, modify or waive the definition of

 

38

 

“Secured
Party” or subsection 6.5 if such waiver, amendment, or modification would
adversely affect a Secured Party without the written consent of each such
affected Secured Party.

 

9.2
Notices.  All
notices, requests and demands to or upon the Administrative Agent or any
Granting Party hereunder shall be effected in the manner provided for in
subsection 11.2 of the Credit Agreement; provided that any such notice,
request or demand to or upon any Guarantor shall be addressed to such Guarantor
at its notice address set forth on Schedule 1, unless and until such
Guarantor shall change such address by notice to the Administrative Agent given
in accordance with subsection 11.2 of the Credit Agreement.

 

9.3
No Waiver by Course of Conduct; Cumulative
Remedies.  Neither the Administrative Agent nor any
other Secured Party shall by any act (except by a written instrument pursuant
to subsection 9.1), delay, indulgence, omission or otherwise be deemed to have
waived any right or remedy hereunder or to have acquiesced in any Default or
Event of Default.  No failure to
exercise, nor any delay in exercising, on the part of the Administrative Agent
or any other Secured Party, any right, power or privilege hereunder shall
operate as a waiver thereof.  No single
or partial exercise of any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege.  A waiver by the
Administrative Agent or any other Secured Party of any right or remedy
hereunder on any one occasion shall not be construed as a bar to any right or
remedy which the Administrative Agent or such other Secured Party would
otherwise have on any future occasion. 
The rights and remedies herein provided are cumulative, may be exercised
singly or concurrently and are not exclusive of any other rights or remedies
provided by law.

 

9.4
Enforcement Expenses; Indemnification.  (a)
Each Guarantor jointly and severally agrees to pay or reimburse each Secured
Party and the Administrative Agent for all their respective reasonable costs
and expenses incurred in collecting against any Guarantor under the guarantee
contained in Section 2 or otherwise enforcing or preserving any rights under
this Agreement against such Guarantor and the other Loan Documents to which
such Guarantor is a party, including, without limitation, the reasonable fees
and disbursements of counsel to the Secured Parties and the Administrative
Agent.

 

(b)           Each Guarantor jointly and severally agrees to pay, and to
save the Administrative Agent and the Secured Parties harmless from, (x) any and
all liabilities with respect to, or resulting from any delay in paying, any and
all stamp, excise, sales or other similar taxes which may be payable or
determined to be payable with respect to any of the Security Collateral or in
connection with any of the transactions contemplated by this Agreement and (y)
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance
and administration of this Agreement (collectively, the “indemnified
liabilities”), in each case to the extent the Parent Borrower would be
required to do so pursuant to subsection 11.5 of the Credit Agreement, and in
any event excluding any taxes or other indemnified liabilities arising from
gross negligence or willful misconduct of the Administrative Agent or any
Secured Party.

 

39

 

(c)           The agreements in this subsection 9.4 shall survive
repayment of the Obligations and all other amounts payable under the Credit
Agreement and the other Loan Documents.

 

9.5
Successors and Assigns.  This
Agreement shall be binding upon and shall inure to the benefit of the Granting
Parties, the Administrative Agent and the Secured Parties and their respective
successors and assigns; provided that no Granting Party may assign,
transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the Administrative Agent.

 

9.6
Set-Off.  Each
Guarantor hereby irrevocably authorizes the Administrative Agent and each other
Secured Party at any time and from time to time without notice to such
Guarantor, any other Guarantor or any of the Borrowers, any such notice being
expressly waived by each Guarantor and by each Borrower, to the extent
permitted by applicable law, upon the occurrence and during the continuance of
an Event of Default under subsection 9(a) of the Credit Agreement so long as
any amount remains unpaid after it becomes due and payable by such Guarantor
hereunder, to set-off and appropriate and apply against any such amount any and
all deposits (general or special, time or demand, provisional or final) (other
than the Collateral Proceeds Account), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Administrative Agent or such other Secured Party to or for the credit
or the account of such Guarantor, or any part thereof in such amounts as the
Administrative Agent or such other Secured Party may elect.  The Administrative Agent and each other
Secured Party shall notify such Guarantor promptly of any such set-off and the
application made by the Administrative Agent or such other Secured Party of the
proceeds thereof; provided that the failure to give such notice shall
not affect the validity of such set-off and application.  The rights of the Administrative Agent and
each other Secured Party under this subsection 9.6 are in addition to other
rights and remedies (including, without limitation, other rights of set-off)
which the Administrative Agent or such other Secured Party may have.

 

9.7
Counterparts.  This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument.

 

9.8
Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction; provided that,
with respect to any Pledged Stock issued by a Foreign Subsidiary, all rights,
powers and remedies provided in this Agreement may be exercised only to the
extent that they do not violate any provision of any law, rule or regulation of
any Governmental Authority applicable to any such Pledged Stock or affecting
the legality, validity or enforceability of any of the provisions of this
Agreement against the Pledgor (such laws, rules or regulations, “Applicable
Law”) and are intended to be limited to the extent necessary so that they
will not render this Agreement invalid, unenforceable or not entitled to be
recorded, registered or filed under the provisions of any Applicable Law.

 

40

 

9.9
Section Headings.  The Section headings used in
this Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation
hereof.

 

9.10
Integration.  This Agreement and the other Loan Documents
represent the entire agreement of the Granting Parties, the Administrative
Agent and the other Secured Parties with respect to the subject matter hereof,
and there are no promises, undertakings, representations or warranties by the
Granting Parties, the Administrative Agent or any other Secured Party relative
to subject matter hereof not expressly set forth or referred to herein or in the
other Loan Documents.

 

9.11
GOVERNING LAW.  THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

 

9.12
Submission To Jurisdiction; Waivers.  Each
party hereto hereby irrevocably and unconditionally:

 

(a)           submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the courts of the State
of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof;

 

(b)           consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter have to
the venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

 

(c)           agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to such
party at its address referred to in subsection 9.2 (or, in the case of any
Foreign Subsidiary Borrower, as specified in subsection 11.13(b) of the Credit
Agreement) or at such other address of which the Administrative Agent (in the
case of any other party hereto) or the Parent Borrower (in the case of the
Administrative Agent) shall have been notified pursuant thereto;

 

(d)           agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction; and

 

(e)           waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding
referred to in this Section any punitive damages.

 

9.13 Acknowledgments.  Each Guarantor hereby acknowledges that:

 

41

 

(a)           it has been advised by counsel in the negotiation,
execution and delivery of this Agreement and the other Loan Documents to which
it is a party;

 

(b)           neither the Administrative Agent nor any other Secured
Party has any fiduciary relationship with or duty to any Guarantor arising out
of or in connection with this Agreement or any of the other Loan Documents, and
the relationship between the Guarantors, on the one hand, and the
Administrative Agent and the Secured Parties, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

 

(c)           no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Secured Parties or among the Guarantors and the Secured Parties.

 

9.14
WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

9.15
Additional Granting Parties.  Each
new Subsidiary of the Parent Borrower that is required to become a party to
this Agreement pursuant to subsection 7.9(b) of the Credit Agreement shall
become a Granting Party for all purposes of this Agreement upon execution and
delivery by such Subsidiary of an Assumption Agreement in the form of Annex 2
hereto.  Each existing Granting Party
that is required to become a Pledgor with respect to Capital Stock of any new
Subsidiary of the Parent Borrower pursuant to subsection 7.9(b) of the Credit
Agreement shall become a Pledgor with respect thereto upon execution and
delivery by such Granting Party of a Supplemental Agreement in the form of
Annex 2 hereto.

 

9.16
Releases. 
(a)  At such time as the Loans,
the Reimbursement Obligations and the other Obligations (other than any
Obligations owing to a Non-Lender Secured Party in respect of the provision of
cash management services) then due and owing shall have been paid in full, the
Commitments have been terminated and no Letters of Credit shall be outstanding,
all Security Collateral shall be released from the Liens created hereby, and
this Agreement and all obligations (other than those expressly stated to
survive such termination) of the Administrative Agent and each Granting Party
hereunder shall terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Security Collateral
shall revert to the Granting Parties. 
At the request and sole expense of any Granting Party following any such
termination, the Administrative Agent shall deliver to such Granting Party any
Security Collateral held by the Administrative Agent hereunder, and execute and
deliver to such Granting Party such documents (including without limitation UCC
termination statements) as such Granting Party shall reasonably request to
evidence such termination.

 

(b)           In connection with any sale or other disposition of Security
Collateral permitted by the Credit Agreement (other than any sale or
disposition to another Grantor), the Lien pursuant to this Agreement on such
sold or disposed of Security Collateral shall be automatically released.  In connection with the sale or other
disposition of all of the Capital Stock of any Guarantor (other than to
Holding, the Parent Borrower or a Subsidiary of either) or the sale or other
disposition of Security Collateral (other than a sale or disposition to another

 

42

 

Grantor) permitted under the
Credit Agreement, the Administrative Agent shall, upon receipt from the Parent
Borrower of a written request for the release of such Guarantor from its
Guarantee or the release of the Security Collateral subject to such sale or
other disposition, identifying such Guarantor or the relevant Security
Collateral and the terms of the sale or other disposition in reasonable detail,
including the price thereof and any expenses in connection therewith, together
with a certification by the Parent Borrower stating that such transaction is in
compliance with the Credit Agreement and the other Loan Documents, execute and
deliver to the relevant Granting Party (at the sole cost and expense of such
Granting Party) all releases or other documents (including without limitation
UCC termination statements) necessary or reasonably desirable for the release
of such Guarantee or the Liens created hereby on such Security Collateral, as
applicable, as such Granting Party may reasonably request.

 

9.17
Judgment. 
(a)  If for the purpose of
obtaining judgment in any court it is necessary to convert a sum due hereunder
in one currency into another currency, the parties hereto agree, to the fullest
extent that they may effectively do so, that the rate of exchange used shall be
that at which in accordance with normal banking procedures the Administrative
Agent could purchase the first currency with such other currency on the
Business Day preceding the day on which final judgment is given.

 

(b)           The obligations of any Guarantor in respect of this
Agreement to the Administrative Agent, for the benefit of each holder of
Secured Obligations, shall, notwithstanding any judgment in a currency (the “judgment
currency”) other than the currency in which the sum originally due to such
holder is denominated (the “original currency”), be discharged only to
the extent that on the Business Day following receipt by the Administrative
Agent of any sum adjudged to be so due in the judgment currency the
Administrative Agent may in accordance with normal banking procedures purchase
the original currency with the judgment currency; if the amount of the original
currency so purchased is less than the sum originally due to such holder in the
original currency, such Guarantor agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Administrative Agent, for
the benefit of such holder, against such loss, and if the amount of the
original currency so purchased exceeds the sum originally due to the
Administrative Agent, the Administrative Agent agrees to remit to such Parent
Borrower, such excess.  This covenant
shall survive the termination of this Agreement and payment of the Obligations
and all other amounts payable hereunder.

 

[Remainder of page left blank intentionally; Signature page
to follow.]

 

43

 

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

 

 

	
   

  	
  CDRV HOLDINGS, INC.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RICHARD
  J. SCHNALL

  	
   

  
	
   

  	
   

  	
  Name: Richard J.
  Schnall

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CDRV ACQUISITION
  CORPORATION

  
	
   

  	
  (the rights and
  obligations of which hereunder

  
	
   

  	
  are to be assumed by VWR
  INTERNATIONAL, INC.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RICHARD
  J. SCHNALL

  	
   

  
	
   

  	
   

  	
  Name: Richard J.
  Schnall

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VWR, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DEBORAH
  A. CORR

  	
   

  
	
   

  	
   

  	
  Name: Deborah A. Corr

  
	
   

  	
   

  	
  Title: Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SCIENTIFIC KIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DEBORAH
  A. CORR

  	
   

  
	
   

  	
   

  	
  Name: Deborah A. Corr

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARD’S NATURAL SCIENCE
  ESTABLISHMENT, INC.

  
	
   

  	
  (formerly known as KDI
  WARD’S NATURAL SCIENCE

  
	
   

  	
  ESTABLISHMENT, INC.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DEBORAH
  A. CORR

  	
   

  
	
   

  	
   

  	
  Name: Deborah A. Corr

  
	
   

  	
   

  	
  Title: Secretary

  

 

44

 

Acknowledged and Agreed to as

of the date hereof by:

 

	
  DEUTSCHE BANK AG, NEW YORK
  BRANCH,

  
	
  as Administrative Agent

  
	
   

  
	
   

  
	
  By:

  	
  /s/ DIANE F.
  ROLFE

  	
   

  
	
   

  	
  Name: Diane F.
  Rolfe

  
	
   

  	
  Title: Vice President

  

 

45

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