Document:

Second Lien Security Agreement

 EXHIBIT 10.3 

 
  

 
 SECURITY AGREEMENT 

Dated as of April 30, 2010

among
 THERMON
INDUSTRIES, INC., 
 and 

Each Other Grantor

From Time to Time Party Hereto 

and 
 THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A., 
 as Collateral Agent 

 
  

 

							
		 		  	TABLE OF CONTENTS	  	
	 	 	 	  	 	  	Page
	ARTICLE I DEFINED TERMS	  	1
		 	Section 1.1	  	Definitions	  	1
		 	Section 1.2	  	Certain Other Terms	  	8
		
	ARTICLE II GRANT OF SECURITY INTEREST	  	10
		 	Section 2.1	  	Collateral	  	10
		 	Section 2.2	  	Grant of Security Interest in Collateral	  	10
		
	ARTICLE III REPRESENTATIONS AND WARRANTIES	  	11
		 	Section 3.1	  	Title; No Other Liens	  	11
		 	Section 3.2	  	Perfection and Priority	  	11
		 	Section 3.3	  	Jurisdiction of Organization; Chief Executive Office	  	12
		 	Section 3.4	  	Locations of Inventory, Equipment and Books and Records	  	12
		 	Section 3.5	  	Pledged Collateral	  	12
		 	Section 3.6	  	Instruments and Tangible Chattel Paper Formerly Accounts	  	13
		 	Section 3.7	  	Intellectual Property	  	13
		 	Section 3.8	  	Commercial Tort Claims	  	14
		 	Section 3.9	  	Specific Collateral	  	14
		 	Section 3.10	  	Enforcement	  	14
		
	ARTICLE IV COVENANTS	  	14
		 	Section 4.1	  	Maintenance of Perfected Security Interest; Further Documentation and Consents	  	14
		 	Section 4.2	  	Changes in Locations, Name, Etc.	  	16
		 	Section 4.3	  	Pledged Collateral	  	16
		 	Section 4.4	  	Accounts	  	17
		 	Section 4.5	  	Commodity Contracts	  	17
		 	Section 4.6	  	Delivery of Instruments and Tangible Chattel Paper and Control of Investment Property, Letter-of-Credit Rights and Electronic Chattel Paper	  	17
		 	Section 4.7	  	Intellectual Property	  	18
		 	Section 4.8	  	Notices	  	19
		 	Section 4.9	  	Notice of Commercial Tort Claims	  	19
		 	Section 4.10	  	Controlled Securities Account	  	20
		
	ARTICLE V REMEDIAL PROVISIONS	  	20
		 	Section 5.1	  	Code and Other Remedies	  	20
		 	Section 5.2	  	Accounts and Payments in Respect of General Intangibles	  	23
		 	Section 5.3	  	Pledged Collateral	  	24
		 	Section 5.4	  	Proceeds to be Turned over to and Held by Collateral Agent	  	26
		 	Section 5.5	  	Sale of Pledged Collateral	  	26
		 	Section 5.6	  	Deficiency	  	27

  

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 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	 	  	Page
		
	ARTICLE VI THE COLLATERAL AGENT	  	27
		 	Section 6.1	  	Collateral Agent’s Appointment as Attorney-in-Fact	  	27
		 	Section 6.2	  	Authorization to File Financing Statements	  	29
		 	Section 6.3	  	Authority of Collateral Agent	  	29
		 	Section 6.4	  	Duty; Obligations and Liabilities	  	29
		
	ARTICLE VII MISCELLANEOUS	  	30
		 	Section 7.1	  	Reinstatement	  	30
		 	Section 7.2	  	Release of Collateral	  	30
		 	Section 7.3	  	Independent Obligations	  	31
		 	Section 7.4	  	No Waiver by Course of Conduct	  	31
		 	Section 7.5	  	Amendments in Writing	  	32
		 	Section 7.6	  	Additional Grantors; Additional Pledged Collateral	  	32
		 	Section 7.7	  	Notices	  	32
		 	Section 7.8	  	Successors and Assigns	  	32
		 	Section 7.9	  	Counterparts	  	32
		 	Section 7.10	  	Severability	  	32
		 	Section 7.11	  	Governing Law	  	33
		 	Section 7.12	  	Waiver of Jury Trial	  	33
		 	Section 7.13	  	Intercreditor Agreement	  	33

  

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	ANNEXES AND SCHEDULES
		
	 Annex 1
	  	Form of Pledge Amendment
	 Annex 2
	  	Form of Joinder Agreement
	 Annex 3
	  	Form of Intellectual Property Security Agreement
		
	 Schedule 1
	  	Commercial Tort Claims
	 Schedule 2
	  	Filings
	 Schedule 3
	  	Jurisdiction of Organization; Chief Executive Office
	 Schedule 4
	  	Location of Inventory and Equipment
	 Schedule 5
	  	Pledged Collateral
	 Schedule 6
	  	Intellectual Property

  

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 SECURITY AGREEMENT, dated as of April 30, 2010, by and among Thermon Industries, Inc.,
a Texas corporation (the “Company”), and each of the other entities listed on the signature pages hereof or that becomes a party hereto pursuant to Section 7.6 (collectively with the Company, the
“Grantors”), in favor of The Bank of New York Mellon Trust Company, N.A., as collateral agent (in such capacity, together with its successors and permitted assigns, the “Collateral Agent”) for the Secured Parties
(as hereinafter defined). 
 W I T N E S S E T H: 

WHEREAS, Thermon Finance, Inc. (to be merged with and into the Company on the date hereof) and The Bank of New York Mellon Trust Company,
N.A., as trustee and collateral agent (in such capacity and together with its successors and assigns in such capacity, the “Trustee”), have entered into an Indenture, dated as of April 30, 2010 (as supplemented by the First
Supplemental Indenture, dated as of April 30, 2010, among the Company, the other Grantors party therto and the Trustee, and as further amended, restated, supplemented and/or otherwise modified from time to time, the
“Indenture”); 
 WHEREAS, pursuant to the Indenture, (i) the Company has issued its 9.50% Senior Secured
Notes due 2017 (such notes, together with any other notes from time to time issued pursuant to the Indenture, the “Notes”) and (ii) each other Grantor has unconditionally guaranteed, on a joint and several basis, all Indenture
Obligations of the Company; 
 WHEREAS, each Grantor will derive substantial direct and indirect benefits from the issuance of
the Notes; and 
 WHEREAS, it is a condition precedent to the sale of the Notes under the Purchase Agreement, dated
April 23, 2010, by and among Thermon Finance, Inc. (to be merged with and into the Company on the date hereof) and the initial purchasers set forth therein that the Grantors shall have executed and delivered this Agreement to the Collateral
Agent; 
 NOW, THEREFORE, in consideration of the premises and to induce the Trustee to enter into the Indenture and to induce
the Holders to purchase the Notes, each Grantor hereby agrees with the Collateral Agent as follows: 
 ARTICLE I

 DEFINED TERMS 

Section 1.1 Definitions. (a) Capitalized terms used herein without definition are used as defined in the Indenture.

 (b) The following terms have the meanings given to them in the UCC and terms used herein
without definition that are defined in the UCC have the meanings given to them in the UCC (such meanings to be equally applicable to both the singular and plural forms of the terms defined): “account debtor”, “as-extracted
collateral”, “certificated security”, “chattel paper”, “commercial tort claim”, “commodity contract”, “deposit account”, “electronic chattel
paper”, “equipment”, “farm products”, “fixture”, “general intangible”, “goods”, “health-care-insurance receivable”,
“instruments”, “investment property”, “letter-of-credit right”, “proceeds”, “record”, “securities account”, “security”,
“supporting obligation” and “tangible chattel paper”. 
 (c) The following terms shall have
the following meanings: 
 “Account” means, as at any date of determination, all “accounts” (as such
term is defined in the UCC) of the Grantors, including, without limitation, the unpaid portion of the obligation of a customer of any Grantor in respect of Inventory purchased by and shipped to such customer and/or the rendition of services by such
Grantor, as stated on the respective invoice of such Grantor, net of any credits, rebates or offsets owed to such customer. 

“Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by,
or is under common control with, such Person. A Person shall be deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other
Person, whether through the ownership of voting securities, by contract or otherwise. Without limitation, any director, executive officer or beneficial owner of five percent (5%) or more of the Stock (either directly or through ownership of
Stock Equivalents) of a Person shall for the purposes of this Agreement, be deemed to be an Affiliate of such Person. Notwithstanding the foregoing, none of the Collateral Agent, the Trustee or any Holder shall be deemed an “Affiliate” of
any Grantor or of any Subsidiary of any Grantor solely by reason of the provisions of the Indenture Documents. 

“Agreement” means this Security Agreement. 

“Applicable IP Office” means the United States Patent and Trademark Office, the United States Copyright Office or any
similar office or agency within or outside the United States, as applicable. 
 “Cash Collateral Account” means
a deposit account or securities account subject, in each instance, to a Control Agreement. 
 “Collateral” has
the meaning specified in Section 2.1. 
 “Contractual Obligations” means, as to any Person, any
provision of any security issued by such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of trust or other instrument, document or agreement to which such Person is a party or by which it or any of its Property is bound.

  

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 “Control Agreement” means a deposit account, securities account or
commodities account control agreement by and among the applicable Grantor, the First Lien Agent, the Collateral Agent and the depository, securities intermediary or commodities intermediary, and each in form and substance reasonably satisfactory to
the Collateral Agent and in any event providing to the Collateral Agent (or, to the extent required by the Intercreditor Agreement, the First Lien Agent as bailee for the Secured Parties) “control” of such deposit account, securities or
commodities account within the meaning of Articles 8 and 9 of the UCC and the Securities Transfer Act, 2006 (Ontario) or the comparable statutes in provinces and territories of Canada other than Ontario for such accounts located in those
jurisdictions. For certainty, for a Canadian bank account, such term shall also refer to a “blocked account” agreement with respect to such bank account, notwithstanding that the execution and delivery of such agreement is not a perfection
requirement.
 “Controlled Securities Account” means each securities account (including all financial assets
held therein and all certificates and instruments, if any, representing or evidencing such financial assets) that is the subject of an effective Control Agreement. 

“Copyrights” means all rights, title and interests (and all related IP Ancillary Rights) arising under any Requirement
of Law in or relating to copyrights and all mask work, database and design rights, whether or not registered or published, all registrations and recordations thereof and all applications in connection therewith. 

“Electronic Transmission” means each document, instruction, authorization, file, information and any other communication
transmitted, posted or otherwise made or communicated by e-mail or E-Fax, or otherwise to or from an E-System or other equivalent service. 

“Excluded Accounts” means (i) any payroll account so long as amounts on deposit therein do not exceed the
reasonably estimated payroll obligations of the Person who maintains the account and such amounts are deposited therein immediately prior to any required payroll date, (ii) any withholding tax, benefits, escrow, trust, customs or any other
fiduciary account, (iii) any zero balance deposit account provided the amount on deposit therein does not exceed the amount necessary to cover outstanding checks, amounts necessary to maintain minimum deposit requirements and amounts necessary
to pay the depositary institution’s fees and expenses, (iv) any deposit account maintained with a foreign bank (other than a foreign bank located in Canada) and (v) any petty cash deposit accounts maintained at a financial institution
for which a Control Agreement has not otherwise been obtained, so long as, with respect to this clause (v), the aggregate amount on deposit in each such petty cash account does not exceed $250,000 at any one time and the aggregate amount on deposit
in all such petty cash accounts does not exceed $700,000 at any one time as of or after the date hereof. 
  

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 “Excluded Equity” means the voting Capital Stock directly owned by a
Grantor of any CFC in excess of 65% of all of the outstanding voting Capital Stock of such CFC. 
 “Excluded
Property” means: 
 (1) Excluded Equity; 

(2) leasehold interests in real property with respect to which the Company or any Grantor is a tenant or subtenant; 

(3) any permit or license, any Contractual Obligation, healthcare insurance receivable or other general intangible, Intellectual Property
or franchise in connection with which any Grantor has any right, title to or interest (A) that prohibits or requires the consent of any Person other than a Grantor or any of its Subsidiaries which has not been obtained as a condition to the
creation by such Grantor of a Lien on any right, title or interest in such permit, license, Contractual Obligation, healthcare insurance receivable or other general intangible, Intellectual Property or franchise or any Stock or Stock Equivalent
related thereto, (B) to the extent that any Requirement of Law applicable thereto prohibits the creation of a Lien thereon, but only, with respect to the prohibition in (A) and (B), to the extent, and for as long as, such prohibition is
not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC or any other Requirement of Law or (C) the grant of a security interest in such permit, license, Contractual Obligation, general intangible, Intellectual
Property or franchise would reasonably be expected to result in the loss of rights thereon or create a default thereunder; 

(4) property and assets owned by the Company or any other Grantor that are the subject of Permitted Liens described in clause (7) of
the definition thereof set forth in the Indenture for so long as such Permitted Liens are in effect and the Indebtedness secured thereby otherwise prohibits any other Liens thereon; 

(5) Excluded Accounts; and 

(6) any Capital Stock or other securities of the Parent’s Subsidiaries to the extent that the pledge of such securities results in
the Parent being required to file separate financial statements of such Subsidiary with the SEC, but only to the extent necessary for the Parent not to be subject to such requirement and only for so long as such requirement is in existence;
provided that neither the Parent nor any Subsidiary shall take any action in the form of a reorganization, merger or other restructuring a principal purpose of which is to provide for the release of the Lien on any securities pursuant to this
clause. 
 “E-Fax” means any system used to receive or transmit faxes electronically. 

 

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 “E-System” means any electronic system, including Intralinks® and
ClearPar® and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the First Lien Agent, any of its Related Persons or any other Person, providing for access to data protected by passcodes or
other security system. 
 “First Lien Agent” has the meaning specified in the Intercreditor Agreement.

 “First Lien Creditors” has the meaning specified in the Intercreditor Agreement. 

“First Lien Document” has the meaning specified in the Intercreditor Agreement. 

“Governmental Authority” means any nation or government, any state, provincial or other political subdivision thereof,
any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or
controlled, through stock or capital ownership or otherwise, by any of the foregoing. 
 “Intellectual
Property” means all rights, title and interests in or relating to intellectual property and industrial property arising under any Requirement of Law and all IP Ancillary Rights relating thereto, including all Copyrights, Patents,
Trademarks, Internet Domain Names, Trade Secrets and IP Licenses. 
 “Internet Domain Name” means all right,
title and interest (and all related IP Ancillary Rights) arising under any Requirement of Law in or relating to Internet domain names. 

“In-Transit Collateral” has the meaning set forth in Section 3.4. 

“Inventory” means all of the “inventory” (as such term is defined in the UCC) of the Grantors, including, but
not limited to, all merchandise, raw materials, parts, supplies, work-in-process and finished goods intended for sale, together with all the containers, packing, packaging, shipping and similar materials related thereto, and including such inventory
as is temporarily out of a Grantor’s custody or possession, including inventory on the premises of others and items in transit. 

“IP Ancillary Rights” means, with respect to any other Intellectual Property, as applicable, all foreign counterparts
to, and all divisionals, reversions, continuations, continuations-in-part, reissues, reexaminations, renewals and extensions of, such Intellectual Property and all income, royalties, proceeds and Liabilities at any time due or payable or asserted
under or with respect to any of the foregoing or otherwise with respect to such Intellectual Property, including all rights to sue or recover at law or 

 

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in equity for any past, present or future infringement, misappropriation, dilution, violation or other impairment thereof, and, in each case, all rights to obtain any other IP Ancillary Right.

 “IP Licenses” means all Contractual Obligations (and all related IP Ancillary Rights), whether written or
oral, granting any right, title and interest in or relating to any Intellectual Property. 
 “Liabilities”
means all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions, costs, fees, taxes, commissions, charges, disbursements and expenses, in each case of any kind or nature (including
interest accrued thereon or as a result thereto and fees, charges and disbursements of financial, legal and other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual, punitive, treble or
otherwise. 
 “Material Adverse Effect” means: (a) a material adverse change in, or a material adverse
effect upon, the operations, business, Properties, or financial condition of the Grantors taken as a whole; (b) a material impairment of the ability of any Grantor, any Subsidiary of any Grantor or any other Person (other than the Collateral
Agent or the Holders) to perform in any material respect its obligations under any Indenture Document; or (c) a material adverse effect upon (i) the legality, validity, binding effect or enforceability of any Indenture Document, or
(ii) the perfection or priority of any Lien granted to the Holders or to the Collateral Agent for the benefit of the Secured Parties or any material portion of the Collateral under any of the Collateral Documents. 

“Material Intellectual Property” means Intellectual Property that is owned by or licensed to a Grantor and material to
the conduct of any Grantor’s business. 
 “Ordinary Course of Business” means, in respect of any
transaction involving any Person, the ordinary course of such Person’s business, as conducted by any such Person in accordance with past practice and undertaken by such Person in good faith and not for purposes of evading any covenant or
restriction in any Indenture Document. 
 “Organization Document” means, (a) for any corporation, the
certificate or articles of incorporation, the bylaws, any certificate of determination or instrument relating to the rights of preferred shareholders of such corporation, and any shareholder rights agreement, (b) for any partnership, the
partnership agreement and, if applicable, certificate of limited partnership, (c) for any limited liability company, the operating agreement and articles or certificate of formation or (d) any other document setting forth the manner of
election or duties of the officers, directors, managers or other similar persons, or the designation, amount or relative rights, limitations and preference of the Stock of a Person. 

“Parent” means Thermon Holding Corp., a Delaware corporation. 

 

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 “Patents” means all rights, title and interests (and all related IP
Ancillary Rights) arising under any Requirement of Law in or relating to letters patent and applications therefor. 

“Permits” means, with respect to any Person, any permit, approval, authorization, license, registration, certificate,
concession, grant, franchise, variance or permission from, any Governmental Authority, in each case whether or not having the force of law and applicable to or binding upon such Person or any of its property or to which such Person or any of its
property is subject. 
 “Person” means an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture or Governmental Authority. 

“Pledge Amendment” has the meaning set forth in Section 7.6(b). 

“Pledged Certificated Stock” means all certificated securities and any other Stock or Stock Equivalent of any Person
evidenced by a certificate, instrument or other similar document (as defined in the UCC), in each case owned by any Grantor, and any distribution of property made on, in respect of or in exchange for the foregoing from time to time, including all
Stock and Stock Equivalents listed on Schedule 5. Pledged Certificated Stock excludes any Excluded Property and any Cash Equivalents that are not held in Controlled Securities Accounts to the extent permitted by Section 4.10
hereof. 
 “Pledged Collateral” means, collectively, the Pledged Stock and the Pledged Debt Instruments.

 “Pledged Debt Instruments” means all right, title and interest of any Grantor in instruments evidencing any
Indebtedness owed to such Grantor or other obligations, and any distribution of property made on, in respect of or in exchange for the foregoing from time to time, including all Indebtedness described on Schedule 5, issued by the
obligors named therein. Pledged Debt Instruments excludes any Cash Equivalents that are not held in Controlled Securities Accounts to the extent permitted by Section 4.10 hereof. 

“Pledged Investment Property” means any investment property of any Grantor, and any distribution of property made on, in
respect of or in exchange for the foregoing from time to time, other than any Pledged Stock or Pledged Debt Instruments. Pledged Investment Property excludes Excluded Equity and any Cash Equivalents that are not held in Controlled Securities
Accounts to the extent permitted by Section 4.10 hereof. 
 “Pledged Stock” means all Pledged
Certificated Stock and all Pledged Uncertificated Stock. 
  

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 “Pledged Uncertificated Stock” means any Stock or Stock Equivalent of any
Person that is not Pledged Certificated Stock, including all right, title and interest of any Grantor as a limited or general partner in any partnership not constituting Pledged Certificated Stock or as a member of any limited liability company, all
right, title and interest of any Grantor in, to and under any Organization Document of any partnership or limited liability company to which it is a party, and any distribution of property made on, in respect of or in exchange for the foregoing from
time to time, including in each case those interests set forth on Schedule 5, to the extent such interests are not certificated. Pledged Uncertificated Stock excludes any Excluded Property and any Cash Equivalents that are not held in
Controlled Securities Accounts to the extent permitted by Section 4.10 hereof. 
 “Property” means
any interest in any kind of property or asset, whether real, personal or mixed, and whether tangible or intangible. 

“Related Persons” means, with respect to any Person, each Affiliate of such Person and each director, officer, employee,
agent, trustee, representative, attorney, accountant and each insurance, environmental, legal, financial and other advisor and other consultants and agents of or to such Person or any of its Affiliates. 

“Requirement of Law” means, as to any Person, any law (statutory or common), ordinance, treaty, rule, regulation, order,
policy, other legal requirement or determination of an arbitrator or of a Governmental Authority, in each case applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is subject. 

“Responsible Officer” means the chief executive officer, corporate controller or the president of the Company or any
other officer having substantially the same authority and responsibility; or, with respect to compliance with financial covenants or delivery of financial information, the chief financial officer or the treasurer of the Company or any other officer
having substantially the same authority and responsibility. 
 “Secured Obligations” has the meaning set forth
in Section 2.2. 
 “Secured Party” means each of the Trustee, the Collateral Agent and the Holders
of the Notes from time to time. 
 “Software” means (a) all computer programs, including source code and
object code versions, (b) all data, databases and compilations of data, whether machine readable or otherwise, and (c) all documentation, training materials and configurations related to any of the foregoing. 

“Stock” means all shares of capital stock (whether denominated as common stock or preferred stock), equity interests,
beneficial, partnership or membership interests, joint venture interests, participations or other ownership or profit interests in or equivalents (regardless of how designated) of or in a Person (other than an individual), whether voting or
non-voting. 
  

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 “Stock Equivalents” means all securities convertible into or exchangeable
for Stock or any other Stock Equivalent and all warrants, options or other rights to purchase, subscribe for or otherwise acquire any Stock or any other Stock Equivalent, whether or not presently convertible, exchangeable or exercisable. 

“Termination Date” means the earliest to occur of: (A) the payment in full in cash of all outstanding Secured
Obligations; (B) the Company’s exercise of its legal defeasance option or covenant defeasance option as described in and in accordance with Article 9 of the Indenture; and (C) the satisfaction and discharge of the Indenture in
accordance with Article 4 of the Indenture. 
 “Trade Secrets” means all right, title and interest (and
all related IP Ancillary Rights) arising under any Requirement of Law in or relating to trade secrets. 

“Trademark” means all right, title and interest (and all related IP Ancillary Rights) arising under any Requirement of
Law in or relating to trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers and, in each case, all goodwill associated
therewith, all registrations and recordations thereof and all applications in connection therewith. 
 “transferable
records” has the meaning set forth in Section 4.6(d). 
 “UCC” means the Uniform
Commercial Code as from time to time in effect in the State of New York; provided, however, that, in the event that, by reason of mandatory provisions of any applicable Requirement of Law, any of the attachment, perfection or priority
of the Collateral Agent’s or any other Secured Party’s security interest in any Collateral is governed by the Uniform Commercial Code of a jurisdiction other than the State of New York, “UCC” shall mean the Uniform
Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of the definitions related to or otherwise used in such provisions. 

“Vehicles” means all vehicles covered by a certificate of title law of any state. 

Section 1.2 Certain Other Terms. 

(a) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The terms
“herein”, “hereof” and similar terms refer to this Agreement as a whole and not to any particular Article, Section or clause in this Agreement. References herein to an Annex, Schedule, Article, Section or clause refer to the
appropriate Annex or Schedule to, or Article, 
  

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Section or clause in this Agreement. Where the context requires, provisions relating to any Collateral when used in relation to a Grantor shall refer to such Grantor’s Collateral or any
relevant part thereof. 
 (b) Other Interpretive Provisions. 

(i) Defined Terms. Unless otherwise specified herein or therein, all terms defined in this Agreement shall have
the defined meanings when used in any certificate or other document made or delivered pursuant hereto. 
 (ii)
The Agreement. The words “hereof”, “herein”, “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.

 (iii) Certain Common Terms. The term “including” is not limiting and means “including
without limitation.” 
 (iv) Performance; Time. Whenever any performance obligation hereunder (other
than a payment obligation) shall be stated to be due or required to be satisfied on a day other than a Business Day, such performance shall be made or satisfied on the next succeeding Business Day. In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”, and the word “through” means “to and
including.” If any provision of this Agreement refers to any action taken or to be taken by any Person, or which such Person is prohibited from taking, such provision shall be interpreted to encompass any and all means, direct or indirect, of
taking, or not taking, such action. 
 (v) Contracts. Unless otherwise expressly provided herein,
references to agreements and other contractual instruments, including this Agreement and the other Indenture Documents, shall be deemed to include all subsequent amendments thereto, restatements and substitutions thereof and other modifications and
supplements thereto which are in effect from time to time, but only to the extent such amendments and other modifications are not prohibited by the terms of any Indenture Document. 

(vi) Laws. References to any statute or regulation are to be construed as including all statutory and regulatory
provisions related thereto or consolidating, amending, replacing, supplementing or interpreting the statute or regulation. 
  

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 ARTICLE II 

GRANT OF SECURITY INTEREST 

Section 2.1 Collateral. For the purposes of this Agreement, all of the following property now owned or at any time
hereafter acquired by a Grantor or in which a Grantor now has or at any time in the future may acquire any right, title or interests is collectively referred to as the “Collateral”: 

(a) all Accounts, chattel paper, deposit accounts, documents, equipment, general intangibles, instruments, Intellectual Property,
Inventory, investment property, letter of credit rights and any supporting obligations (in each case, as defined in the UCC) related to any of the foregoing; 

(b) the commercial tort claims described on Schedule 1 and on any supplement thereto received by the Collateral Agent pursuant to
Section 4.9; 
 (c) all books and records pertaining to the other property described in this
Section 2.1; 
 (d) all property of such Grantor held by any Secured Party, the First Lien Agent or any other First
Lien Creditor, including all property of every description, in the custody of or in transit to such Secured Party, the First Lien Agent or any other First Lien Creditor for any purpose, including safekeeping, collection or pledge, for the account of
such Grantor or as to which such Grantor may have any right or power, including but not limited to cash; 
 (e) all other goods
(including but not limited to fixtures) and personal property of such Grantor, whether tangible or intangible and wherever located; and 

(f) to the extent not otherwise included, all proceeds of the foregoing; 

Section 2.2 Grant of Security Interest in Collateral. Each Grantor, as collateral security for the prompt and complete
payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Indenture Obligations of such Grantor in accordance with the terms of the Indenture Documents, including, but not limited to, the guaranties thereof
(the “Secured Obligations”), hereby mortgages, pledges and hypothecates to the Collateral Agent for the benefit of the Secured Parties, and grants to the Collateral Agent for the benefit of the Secured Parties a Lien on and security
interest in, all of its right, title and interest in, to and under the Collateral of such Grantor; provided, however, notwithstanding the foregoing, no Lien or security interest is hereby mortgaged, pledged, hypothecated or granted on
any Excluded Property; provided, further, that if and when any property shall cease to be Excluded Property, a Lien on and security in such property shall be deemed granted therein. 

 

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 ARTICLE III 

REPRESENTATIONS AND WARRANTIES 

On the date hereof, solely with respect to Sections 3.1 and 3.2, and after the date hereof, with respect to all
representations and warranties in this Article III, to induce the Trustee to enter into the Indenture and the Holders to purchase the Notes, each Grantor hereby represents and warrants each of the following to the Collateral Agent and the other
Secured Parties: 
 Section 3.1 Title; No Other Liens. Except for the Lien granted to the Collateral Agent
pursuant to this Agreement and any other Permitted Liens, such Grantor owns each item of the Collateral free and clear of any and all Liens. Such Grantor (a) is the record and beneficial owner of the Collateral pledged by it hereunder
constituting instruments or certificates and (b) has rights in or the power to grant a security interest in such rights in each other item of Collateral in which a Lien is granted by it hereunder, free and clear of any other Lien (except for
the Lien granted to the Collateral Agent pursuant to this Agreement and any other Permitted Liens). 
 Section 3.2
Perfection and Priority. The security interest granted pursuant to this Agreement, to the extent a security interest can be granted by a security agreement governed by New York law, constitutes a valid and continuing perfected security
interest in favor of the Collateral Agent in all Collateral subject, for the following Collateral, to the occurrence of the following: (i) in the case of all Collateral in which a security interest may be perfected by filing a financing
statement under the UCC, the completion of the filings and other actions specified on Schedule 2 (which, in the case of all filings and other documents referred to on such schedule, have been delivered to the Collateral Agent in completed and
duly authorized form), (ii) with respect to any deposit account, the execution of Control Agreements, (iii) in the case of all U.S. registered Copyrights, U.S. registered Trademarks and U.S. issued Patents owned by a Grantor for which UCC
filings are insufficient, all appropriate filings having been made with the United States Copyright Office or the United States Patent and Trademark Office, as applicable, (iv) in the case of letter-of-credit rights that are not supporting
obligations of Collateral, the execution of a Contractual Obligation granting control to the Collateral Agent over such letter-of-credit rights to the extent required under Section 4.6, and (v) in the case of electronic chattel
paper, the completion of all steps necessary to grant control to the Collateral Agent over such electronic chattel paper to the extent required under Section 4.6. Such security interest shall be prior to all other Liens on the Collateral
except for Permitted Liens having priority over the Collateral Agent’s Lien by operation of law or, subject to the terms of the Intercreditor Agreement, with the express written agreement of the Collateral Agent acting upon the direction of the
Holders upon (i) in the case of all Pledged Certificated Stock, Pledged Debt Instruments and Pledged Investment Property, the delivery thereof to the Collateral Agent (or, to the extent required by the Intercreditor Agreement, the First Lien
Agent) of such Pledged Certificated Stock, Pledged Debt Instruments and Pledged Investment Property to the extent required under Section 4.3 consisting of instruments and certificates, in each case properly endorsed for transfer to

  

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the Collateral Agent (or, to the extent required by the Intercreditor Agreement, the First Lien Agent) or in blank, (ii) in the case of all Pledged Investment Property not in certificated
form, the execution of Control Agreements with respect to such investment property to the extent required under Section 4.3 and (iii) in the case of all other instruments and tangible chattel paper that are not Pledged Certificated
Stock, Pledged Debt Instruments or Pledged Investment Property, the delivery thereof to the Collateral Agent (or, to the extent required by the Intercreditor Agreement, the First Lien Agent) of such instruments and tangible chattel paper. Except as
set forth in this Section 3.2, all actions by each Grantor necessary or desirable to protect and perfect the Lien granted hereunder on the Collateral have been duly taken. 

Section 3.3 Jurisdiction of Organization; Chief Executive Office. Such Grantor’s jurisdiction of organization,
legal name and organizational identification number, if any, and the location of such Grantor’s chief executive office or sole place of business, in each case as of the date hereof, is specified on Schedule 3 and such Schedule 3 also
lists all jurisdictions of incorporation, legal names and locations of such Grantor’s chief executive office or sole place of business for the five years preceding the date hereof. 

Section 3.4 Locations of Inventory, Equipment and Books and Records. On the date hereof, such Grantor’s inventory
and equipment (other than inventory or equipment in transit in the Ordinary Course of Business (including, without limitation, Vehicles being used in the Ordinary Course of Business), items out for repair, equipment in the possession of an employee
or a processor in the Ordinary Course of Business and equipment in an aggregate amount not to exceed $1,000,000 (collectively, the “In-Transit Collateral”) and books and records concerning the Collateral are kept at the locations
listed on Schedule 4. 
 Section 3.5 Pledged Collateral. (a) The Pledged Stock pledged by such
Grantor hereunder (i) is listed on Schedule 5 (as such Schedule is deemed updated by each Pledge Amendment delivered hereunder) and constitutes that percentage of the issued and outstanding equity of all classes of each issuer thereof as
set forth on Schedule 5 and (ii) has been duly authorized, validly issued and is fully paid and nonassessable (other than Pledged Stock in limited liability companies, partnerships and, if such concepts are not applicable in the
jurisdiction of organization of such Person, Foreign Subsidiaries). 
 (b) As of the date hereof and except to the extent
required to be delivered (and actually delivered) to the First Lien Agent in accordance with the Intercreditor Agreement, all Pledged Collateral (other than Pledged Uncertificated Stock) and all Pledged Investment Property consisting of instruments
and certificates has been delivered to the Collateral Agent to the extent required by and in accordance with Section 4.3(a). 

(c) Subject to the terms of the Intercreditor Agreement, upon the occurrence and during the continuance of an Event of Default, the
Collateral Agent shall 
  

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be entitled to exercise all of the rights of the Grantor granting the security interest in any Pledged Stock, and a transferee or assignee of such Pledged Stock shall become a holder of such
Pledged Stock to the same extent as such Grantor and be entitled to participate in the management of the issuer of such Pledged Stock and, upon the transfer of the entire interest of such Grantor, such Grantor shall, by operation of law, cease to be
a holder of such Pledged Stock; provided that the Collateral Agent may elect at its sole and absolute discretion to permit such Grantor to continue voting such Pledged Stock. 

(d) After all Events of Default have been cured or waived, each Grantor will have the right to exercise the voting and consensual rights
and powers that it would otherwise be entitled to exercise pursuant to the terms of paragraph (c) above. 

Section 3.6 Instruments and Tangible Chattel Paper Formerly Accounts. No amount payable to such Grantor under or in
connection with any account is evidenced by any instrument or tangible chattel paper that has not been delivered to the Collateral Agent (or, to the extent required by the Intercreditor Agreement, the First Lien Agent), properly endorsed for
transfer, to the extent delivery is required by Section 4.6(a). 
 Section 3.7 Intellectual
Property. 
 (a) Schedule 6, as updated from time to time in accordance with the terms of this Agreement, sets forth a
true and complete list of the following Intellectual Property such Grantor owns: (i) Intellectual Property that is registered or subject to applications for registration, (ii) Internet Domain Names, (iii) Material Intellectual
Property and material Software, including for each of the foregoing items (1) the owner, (2) the title, (3) the jurisdiction in which such item has been registered or otherwise arises or in which an application for registration has
been filed, (4) as applicable, the registration or application number and registration or application date and (5) any IP Licenses or other rights (including franchises) granted by the Grantor with respect thereto and (iv) all
material IP Licenses pursuant to which a Grantor has licensed Intellectual Property from a third party, other than licenses for commercially available off the shelf software which has not been substantially customized (other than non-exclusive
licenses or sublicenses granted via non stand-alone license agreements in the ordinary course of business in a manner not inconsistent with industry practice). 

(b) On the date hereof, all registered Material Intellectual Property owned by such Grantor is valid, in full force and effect,
subsisting, unexpired and enforceable (subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights, generally, and general equitable
principles (whether considered in a proceeding in equity or at law)), and no such Material Intellectual Property owned by such Grantor has been abandoned, except to the extent the failure to be valid, in full force and effect, subsisting, unexpired
or enforceable or such abandonment will not and would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. The consummation of the transactions contemplated by the Indenture Documents shall not
cause any breach or default of any material IP License or limit or 
  

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impair the ownership, use, validity or enforceability of, or any rights of such Grantor in, any Material Intellectual Property, except to the extent that such limitation or impairment would not
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. There are no pending (or, to the knowledge of such Grantor, threatened in writing) actions, suits, proceedings, claims, demands, judicial orders or
disputes challenging the ownership, use, validity, enforceability of, or such Grantor’s rights in, any Material Intellectual Property owned by such Grantor. To such Grantor’s knowledge, no Person has been or is infringing,
misappropriating, diluting, violating or otherwise materially impairing any Intellectual Property of such Grantor. Such Grantor, and to such Grantor’s knowledge each other party thereto, is not in material breach or default of any material IP
License, except to the extent that such breach or default would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 

Section 3.8 Commercial Tort Claims. The only commercial tort claims of any Grantor existing on the date hereof
(regardless of whether the amount, defendant or other material facts can be determined and regardless of whether such commercial tort claim has been asserted or threatened or whether litigation has been commenced for such claims) are those listed on
Schedule 1, which sets forth such information separately for each Grantor. 
 Section 3.9 Specific
Collateral. None of the Collateral is, or is proceeds or products of, farm products, as-extracted collateral, health-care-insurance receivables or timber to be cut. 

Section 3.10 Enforcement. No Permit, notice to or filing with any Governmental Authority or any notice to or consent
from any other Person is required (except for Permits or consents which have been obtained and notices or filings which have been made) for the exercise by the Collateral Agent of its rights (including voting rights) provided for in this Agreement
or the enforcement of remedies in respect of the Collateral pursuant to this Agreement, including the transfer of any Collateral, except as may be required in connection with the disposition of any portion of the Pledged Collateral by laws affecting
the offering and sale of securities (including, but not limited to, membership interests in a limited liability company) generally or any approvals that may be required to be obtained from any bailees or landlords to collect the Collateral.

  

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 ARTICLE IV 

COVENANTS 

Each Grantor agrees with the Collateral Agent to the following, as long as any Indenture Obligation remains outstanding (other than
contingent indemnification obligations to the extent no claim giving rise thereto has been asserted): 
 Section 4.1
Maintenance of Perfected Security Interest; Further Documentation and Consents. (a) Generally. Such Grantor shall (i) not use or permit any Collateral to be used unlawfully or in violation of any provision of any Indenture
Document, any First Lien Document, any Requirement of Law or any policy of insurance covering the Collateral and (ii) except as otherwise expressly permitted by the Indenture, not enter into any Contractual Obligation or undertaking restricting
the right or ability of such Grantor or the Collateral Agent to sell, assign, convey or transfer any Collateral, except in each case if such unlawful use, violation or restriction would not reasonably be expected to have, either individually or in
the aggregate, a Material Adverse Effect. 
 (b) Except as otherwise permitted in the Indenture Documents, such Grantor shall
maintain the security interest created by this Agreement as a perfected security interest having at least the priority described in Section 3.2 and shall use commercially reasonable efforts to defend such security interest and such
priority against the material claims and demands of all Persons. 
 (c) In addition to any statements, schedules or reports the
Collateral Agent may request from time to time pursuant to the Indenture, each Grantor shall, upon the reasonable request by the Collateral Agent, at any time if an Event of Default shall have occurred and be continuing but otherwise not more than
once a year, furnish to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other documents in connection with the Collateral as the Collateral Agent may reasonably request in
order to maintain and protect its interest hereunder, all in reasonable detail and in form and substance reasonably satisfactory to the Collateral Agent. 

(d) At any time and from time to time, upon the reasonable written request of the Collateral Agent acting upon the direction of the
Holders or as necessary under applicable law, such Grantor shall, for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, (i) promptly and duly execute and deliver, and have
recorded, such further documents, including an authorization to file (or, as applicable, the filing) of any financing statement or amendment under the UCC (or other filings under similar Requirements of Law) in effect in any jurisdiction with
respect to the security interest created hereby and (ii) take the same further actions with respect to the Collateral as reasonably requested by the First Lien Agent with respect to the “Collateral” under, and as defined in, the First
Lien Documents, including (A) using its commercially reasonable efforts to secure all approvals necessary or appropriate for the collateral assignment to or for the benefit of the Collateral Agent of any Contractual Obligation, including any IP
License, held by such Grantor and to enforce the security interests granted hereunder; provided, that, if despite such Grantor’s commercially reasonable efforts such approvals are not secured or obtained, such Contractual Obligations will be
deemed to constitute Excluded Property and (B) executing and delivering any Control Agreements with respect to deposit accounts and securities accounts to the extent required hereby or under any other Indenture Document. Notwithstanding
anything to the contrary contained in this Section 4.1(d), each Grantor shall promptly deliver notice to Collateral Agent upon the opening of a new deposit account which, pursuant to the terms of this Agreement or any other Indenture
Document, is required to be subject to a Control Agreement. 
  

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 (e) Intentionally Omitted. 

(f) To ensure that a Lien and security interest is granted on any of the Excluded Property set forth in clause (3) of the definition
of “Excluded Property”, such Grantor shall use its commercially reasonable efforts to obtain any required consents from any Person (other than the Company and its Affiliates, which consents shall be obtained) with respect to any
permit or license or any Contractual Obligation with such Person entered into by such Grantor that requires such consent as a condition to the creation by such Grantor of a Lien on any right, title or interest in such permit, license or Contractual
Obligation or any Stock or Stock Equivalent related thereto; provided, that, if despite such Grantor’s commercially reasonable efforts such required consents are not obtained, such permit, license or Contractual Obligation related thereto will
be deemed to constitute Excluded Property. 
 Section 4.2 Changes in Locations, Name, Etc. Except upon 30
days’ prior written notice to the Collateral Agent and delivery to the Collateral Agent of (a) all documents required under law to maintain the validity, perfection and priority of the security interests provided for herein and (b) if
applicable, a written supplement to Schedule 4 showing any additional locations at which inventory or equipment shall be kept, such Grantor shall not do any of the following: 

(i) permit any inventory or equipment to be kept at a location other than those listed on Schedule 4, except for the
In-Transit Collateral; 
 (ii) change its jurisdiction of organization or its location (as defined in
Section 9-307 of the UCC), in each case from that referred to in Section 3.3; or 
 (iii) change
its legal name or organizational identification number, if any, or corporation, limited liability company, partnership or other organizational structure to such an extent that any financing statement filed in connection with this Agreement would
become misleading. 
 Section 4.3 Pledged Collateral. (a) Delivery of Pledged Collateral. On the
date hereof, such Grantor shall (i) deliver to the Collateral Agent (or, to the extent required by the Intercreditor Agreement, the First Lien Agent), in suitable form for transfer and in form and substance reasonably satisfactory to the
Collateral Agent (or the First Lien Agent, as the case may be), (A) all Pledged Certificated Stock, (B) all Pledged Debt Instruments and (C) all certificates and instruments evidencing Pledged Investment Property and
(ii) maintain all other Pledged Investment Property in a Controlled Securities Account to the extent required under Section 4.10. 
  

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 (b) Event of Default. Subject to the terms of the Intercreditor Agreement, during the
continuance of an Event of Default, the Collateral Agent shall have the right, at any time in its discretion and without notice to the Grantor, to (i) transfer to or to register in its name or in the name of its nominees any Pledged Collateral
or any Pledged Investment Property and (ii) exchange any certificate or instrument representing or evidencing any Pledged Collateral or any Pledged Investment Property for certificates or instruments of smaller or larger denominations.

 (c) Cash Distributions with respect to Pledged Collateral. Subject to the terms of the Intercreditor Agreement, except
as provided in Article V and subject to the limitations set forth in the Indenture, such Grantor shall be entitled to receive all cash distributions paid in respect of the Pledged Collateral. 

(d) Voting Rights. Subject to the terms of the Intercreditor Agreement, except as provided in Article V, such Grantor shall
be entitled to exercise all voting, consent and corporate, partnership, limited liability company and similar rights with respect to the Pledged Collateral; provided, however, that no vote shall be cast, consent given or right
exercised or other action taken by such Grantor that would materially impair the Collateral or be inconsistent with or result in any violation of any provision of any Indenture Document. 

Section 4.4 Accounts. 

(a) Such Grantor shall not, other than in the Ordinary Course of Business, (i) grant any extension of the time of payment of any
account, (ii) compromise or settle any account for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any account, (iv) allow any credit or discount on any account or
(v) amend, supplement or modify any account in any manner that would reasonably be expected to adversely affect the value thereof. 

(b) So long as an Event of Default is continuing, the Collateral Agent shall have the right to make test verifications of the Accounts in
any manner and through any medium that it reasonably considers advisable, and such Grantor shall furnish all such assistance and information as the Collateral Agent may reasonably require in connection therewith. At any time and from time to time,
upon the Collateral Agent’s reasonable request, such Grantor shall cause independent public accountants or others satisfactory to the Collateral Agent to furnish to the Collateral Agent reports showing reconciliations, aging, and trial balances
for, the accounts. 
 Section 4.5 Commodity Contracts. Such Grantor shall not have any commodity contract
unless subject to a Control Agreement. 
 Section 4.6 Delivery of Instruments and Tangible Chattel Paper and
Control of Investment Property, Letter-of-Credit Rights and Electronic Chattel Paper. (a) Subject to the terms of the Intercreditor Agreement, if any amount in excess of $500,000 individually or $1,000,000 in the aggregate payable under or
in connection with any 
  

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Collateral owned by such Grantor shall be or become evidenced by an instrument or tangible chattel paper other than such instrument delivered in accordance with Section 4.3(a) and in
the possession of the Collateral Agent, such Grantor shall mark all such instruments and tangible chattel paper with the following legend: “This writing and the obligations evidenced or secured hereby are subject to the security interest of The
Bank of New York Mellon Trust Company, N.A., as Collateral Agent” and shall immediately deliver such instrument or tangible chattel paper to the Collateral Agent, duly indorsed in a manner satisfactory to the Collateral Agent. 

(b) Subject to the terms of the Intercreditor Agreement, such Grantor shall not grant “control” (within the meaning of
such term under Article 9-106 of the UCC) over any investment property to any Person other than the Collateral Agent. 
 (c)
Subject to the terms of the Intercreditor Agreement, if such Grantor is or becomes the beneficiary of a letter of credit that is (i) not a supporting obligation or any Collateral and (ii) in excess of $500,000 individually or $1,000,000 in
the aggregate, such Grantor shall promptly, and in any event within five (5) Business Days after becoming a beneficiary, notify the Collateral Agent thereof and use commercially reasonable efforts to enter into a Contractual Obligation with the
Collateral Agent, the issuer of such letter of credit or any nominated person with respect to the letter-of-credit rights under such letter of credit. Such Contractual Obligation shall collaterally assign such letter-of-credit rights to the
Collateral Agent and such collateral assignment shall be sufficient to grant control for the purposes of Section 9-107 of the UCC (or any similar section under any equivalent UCC). Such Contractual Obligation shall also direct all payments
thereunder to a Cash Collateral Account. The provisions of the Contractual Obligation shall be in form and substance reasonably satisfactory to the Collateral Agent and the Borrower. 

(d) Subject to the terms of the Intercreditor Agreement, if any amount in excess of $300,000 individually or $750,000 in the aggregate
payable under or in connection with any Collateral owned by such Grantor shall be or become evidenced by electronic chattel paper, such Grantor shall, at the request of the Collateral Agent acting upon the direction of the Holders or as necessary
under applicable law, take all steps necessary to grant the Collateral Agent control of all such electronic chattel paper for the purposes of Section 9-105 of the UCC (or any similar section under any equivalent UCC) and all
“transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act. 

Section 4.7 Intellectual Property. (a) Not less frequently than quarterly (as of the last day of each calendar
quarter), each Grantor shall provide the Collateral Agent written notification of any change to Schedule 6 and the short-form intellectual property agreements as described in this Section 4.7 and other documents that the Collateral Agent
reasonably requests with respect thereto. 
 (b) Such Grantor shall (and shall cause all its licensees to), in its reasonable
business judgment, (i) (A) continue to use each Trademark included in the 
  

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Material Intellectual Property which is material to such Grantor’s business in order to maintain such Trademark in full force and effect with respect to each class of goods for which such
Trademark is currently used, free from any claim of abandonment for non-use, (B) maintain at least the same standards of quality of products and services offered under such Trademark as are currently maintained, (C) use such Trademark with
the appropriate notice of registration and all other notices and legends required by applicable Requirements of Law, (D) not adopt or use any other Trademark that is confusingly similar or a colorable imitation of such Trademark unless the
Collateral Agent shall obtain a perfected security interest in such other Trademark pursuant to this Agreement and (ii) not do any act or omit to do any act whereby (w) such Trademark (or any goodwill associated therewith) may become
destroyed, invalidated, impaired or harmed in any way, (x) any Patent included in the Material Intellectual Property which is material to such Grantor’s business may become forfeited, misused, unenforceable, abandoned or dedicated to the
public, (y) any portion of the Copyrights included in the Material Intellectual Property may become invalidated, otherwise impaired or fall into the public domain or (z) any Trade Secret that is Material Intellectual Property may become
publicly available or otherwise unprotectable. 
 (c) Such Grantor shall notify the Collateral Agent promptly if it knows that
any application or registration relating to any Material Intellectual Property owned by such Grantor may become forfeited, misused, unenforceable, abandoned or dedicated to the public, or of any material adverse determination or development
regarding the validity or enforceability or such Grantor’s ownership of, interest in, right to use, register, own or maintain any Material Intellectual Property (including the institution of, or any such determination or development in, any
proceeding relating to the foregoing in any Applicable IP Office). Unless no longer deemed Material Intellectual Property in such Grantor’s reasonable business judgment, such Grantor shall take all actions that are necessary or reasonably
requested by the Collateral Agent to maintain and pursue each application (and to obtain the relevant registration or recordation) and to maintain each registration and recordation for Material Intellectual Property owned by such Grantor.

 (d) Such Grantor shall not knowingly do any act or omit to do any act to infringe, misappropriate, dilute, violate or
otherwise impair the Intellectual Property of any other Person to the extent such act could reasonably be expected to result in a Material Adverse Effect. In the event that any Material Intellectual Property of such Grantor is or has been infringed,
misappropriated, violated, diluted or otherwise impaired by a third party, such Grantor shall take such action as it reasonably deems appropriate under the circumstances in response thereto, including promptly bringing suit and recovering all
damages therefor. 
 (e) Such Grantor shall execute and deliver to the Collateral Agent in form and substance reasonably
acceptable to the Collateral Agent and suitable for filing in the Applicable IP Office the short-form intellectual property security agreements in the form attached hereto as Annex 3 for all U.S. registered Copyrights, U.S. registered
Trademarks, and U.S. issued Patents of such Grantor. 
  

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 Section 4.8 Notices. Such Grantor shall promptly notify the Collateral
Agent in writing of its acquisition of any interest hereafter in property that is of a type where a security interest or Lien must be or may be registered, recorded or filed under, or notice thereof given under, any federal statute or regulation.

 Section 4.9 Notice of Commercial Tort Claims. Such Grantor agrees that, if it shall acquire any interest
in any commercial tort claim where such Grantor’s claim is in excess of $300,000 or its recovery thereunder could reasonably be expected to be greater than $300,000 (whether from another Person or because such commercial tort claim shall have
come into existence) and upon a Responsible Officer becoming aware thereof, (i) such Grantor shall, promptly upon such acquisition, deliver to the Collateral Agent, in each case in form and substance reasonably satisfactory to the Collateral
Agent, a notice of the existence and nature of such commercial tort claim and a supplement to Schedule 1 containing a specific description of such commercial tort claim, (ii) Section 2.1 shall apply to such commercial tort
claim and (iii) such Grantor shall execute and deliver to the Collateral Agent, in each case in form and substance reasonably satisfactory to the Collateral Agent, any document, and take all other action necessary by law to create, perfect and
protect Collateral Agent’s Lien, on behalf of the Secured Parties, a perfected security interest having at least the priority set forth in Section 3.2 in all such commercial tort claims. Such Grantor shall do all of the foregoing at
any time if requested by Collateral Agent in writing with respect to any commercial tort claim in which a Grantor maintains any interest, regardless of the amount of the claim in respect thereof or potential recovery thereunder. Any supplement
Schedule 1 delivered pursuant to this Section 4.9 shall, after the receipt thereof by the Collateral Agent, become part of Schedule 1 for all purposes hereunder other than in respect of representations and warranties made prior
to the date of such receipt. 
 Section 4.10 Controlled Securities Account. Each Grantor shall deposit all of
its Cash Equivalents, if any, in securities accounts that are Controlled Securities Accounts except for Cash Equivalents the aggregate value of which at any time does not exceed $250,000 individually and $700,000 in the aggregate. 

ARTICLE V 

REMEDIAL PROVISIONS 

Section 5.1 Code and Other Remedies. (a) UCC Remedies. Subject to the terms of the Intercreditor
Agreement, during the continuance of an Event of Default, the Collateral Agent may exercise, in addition to all other rights and remedies granted to it in this Agreement and in any other instrument or agreement securing, evidencing or relating to
any Indenture Obligation, all rights and remedies of a secured party under the UCC or any other applicable law. 
 (b)
Disposition of Collateral. Without limiting the generality of the foregoing and subject to the terms of the Intercreditor Agreement, the Collateral Agent 

 

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may, 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 Grantor or any
other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), during the continuance of any Event of Default (personally or through its agents or attorneys), (i) enter upon the premises where any
Collateral is located, without any obligation to pay rent, through self-help, without judicial process, without first obtaining a final judgment or giving any Grantor or any other Person notice or opportunity for a hearing on the Collateral
Agent’s claim or action, (ii) collect, receive, appropriate and realize upon any Collateral and (iii) sell, assign, convey, transfer, grant option or options to purchase and deliver any Collateral (or enter into Contractual
Obligations 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 any 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 Collateral Agent shall have the right, upon any such public sale or sales and, to the extent permitted by the UCC and other
applicable Requirements of Law, upon any such private sale, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption of any Grantor, which right or equity is hereby waived and released. 

(c) Management of the Collateral. Each Grantor further agrees that, during the continuance of any Event of Default and subject to
the terms of the Intercreditor Agreement, (i) at the Collateral Agent’s request, it shall assemble the Collateral and make it available to the Collateral Agent at places that the Collateral Agent shall reasonably select, whether at such
Grantor’s premises or elsewhere, (ii) without limiting the foregoing, the Collateral Agent also has the right to require that each Grantor store and keep any Collateral pending further action by the Collateral Agent and, while any such
Collateral is so stored or kept, provide such guards and maintenance services as shall be necessary to protect the same and to preserve and maintain such Collateral in good condition, (iii) until the Collateral Agent is able to sell, assign,
convey or transfer any Collateral, the Collateral Agent shall have the right to hold or use such Collateral to the extent that it deems appropriate for the purpose of preserving the Collateral or its value or for any other purpose deemed appropriate
by the Collateral Agent and (iv) the Collateral Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of any Collateral and to enforce any of the Collateral Agent’s remedies (for the benefit of the
Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment. The Collateral Agent shall not have any obligation to any Grantor to maintain or preserve the rights of any Grantor as against third parties
with respect to any Collateral while such Collateral is in the possession of the Collateral Agent. 
 (d) Application of
Proceeds. Subject to the terms of the Intercreditor Agreement, the Collateral Agent shall apply the cash proceeds of any action taken by it pursuant to this Section 5.1 to the payment in whole or in part of the Secured Obligations,
as set forth in the Indenture, and only after such application and after the payment by the Collateral Agent of any other amount required by any Requirement of Law, need the Collateral Agent account for the surplus, if any, to any Grantor.

  

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 (e) Direct Obligation. Neither the Collateral Agent nor any other Secured Party shall
be required to make any demand upon, or pursue or exhaust any right or remedy against, any Grantor or any other Person with respect to the payment of the Obligations or to pursue or exhaust any right or remedy with respect to any Collateral therefor
or any direct or indirect guaranty thereof. All of the rights and remedies of the Collateral Agent and any other Secured Party under any Indenture Document shall be cumulative, may be exercised individually or concurrently and not exclusive of any
other rights or remedies provided by any Requirement of Law. To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not to assert against the Collateral Agent
or any Secured Party, any valuation, stay, appraisement, extension, redemption or similar laws and any and all rights or defenses it may have as a surety, now or hereafter existing, arising out of the exercise by them of any rights hereunder. If any
notice of a proposed sale or other disposition of any 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. 

(f) Commercially Reasonable. To the extent that applicable Requirements of Law impose duties on the Collateral Agent to exercise
remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for the Collateral Agent to do any of the following: 

(i) fail to incur significant costs, expenses or other Liabilities reasonably deemed as such by the Collateral Agent to
prepare any Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished products for disposition; 

(ii) unless required by Requirements of Law, fail to obtain Permits, or other consents for (A) access to any
Collateral to sell, (B) the collection or sale of any Collateral, or (C) the collection or disposition of any Collateral; 

(iii) fail to exercise remedies against account debtors or other Persons obligated on any Collateral or to remove Liens on
any Collateral or to remove any adverse claims against any Collateral; 
 (iv) advertise dispositions of any
Collateral through publications or media of general circulation, whether or not such Collateral is of a specialized nature, or to contact other Persons, whether or not in the same business as any Grantor, for expressions of interest in acquiring any
such Collateral; 
  

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 (v) exercise collection remedies against account debtors and other Persons
obligated on any Collateral, directly or through the use of collection agencies or other collection specialists, hire one or more professional auctioneers to assist in the disposition of any Collateral, whether or not such Collateral is of a
specialized nature, or, to the extent deemed appropriate by the Collateral Agent, obtain the services of other brokers, investment bankers, consultants and other professionals to assist the Collateral Agent in the collection or disposition of any
Collateral, or utilize Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets to dispose of any Collateral;

 (vi) dispose of assets in wholesale rather than retail markets; 

(vii) disclaim disposition warranties, such as title, possession or quiet enjoyment; or 

(viii) purchase insurance or credit enhancements to insure the Collateral Agent against risks of loss, collection or
disposition of any Collateral or to provide to the Collateral Agent a guaranteed return from the collection or disposition of any Collateral. 

Each Grantor acknowledges that the purpose of this Section 5.1 is to provide a non-exhaustive list of actions or omissions that are
commercially reasonable when exercising remedies against any Collateral and that other actions or omissions by the Secured Parties shall not be deemed commercially unreasonable solely on account of not being indicated in this
Section 5.1. Without limitation upon the foregoing, nothing contained in this Section 5.1 shall be construed to grant any rights to any Grantor or to impose any duties on the Collateral Agent that would not have been granted
or imposed by this Agreement or by applicable Requirements of Law in the absence of this Section 5.1. 
 (g) IP
Licenses. For the purpose of enabling the Collateral Agent to exercise rights and remedies under this Section 5.1 (including in order to take possession of, collect, receive, assemble, process, appropriate, remove, realize upon,
sell, assign, convey, transfer or grant options to purchase any Collateral) at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, subject to the terms of the Intercreditor Agreement, each Grantor
hereby grants to the Collateral Agent, for the benefit of the Secured Parties, (i) subject to the rights of the applicable third party, an irrevocable (except as otherwise set forth in Section 7.2), nonexclusive, worldwide license
(exercisable without payment of royalty or other compensation to such Grantor), including in such license the right to sublicense, use and practice any Intellectual Property not constituting Excluded Property now owned or hereafter acquired by such
Grantor and access to all media in which any of the licensed items may be recorded or stored and to all Software and programs used for the compilation or printout thereof and (ii) an irrevocable license (without payment of rent or other
compensation to such Grantor) to use, operate and occupy all real Property owned, operated, leased, subleased or otherwise occupied by such Grantor. 
  

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 Section 5.2 Accounts and Payments in Respect of General Intangibles.
(a) Subject to the terms of the Intercreditor Agreement, in addition to, and not in substitution for, any similar requirement in the Indenture, if required by the Collateral Agent at any time during the continuance of an Event of Default, any
payment of accounts or payment in respect of general intangibles, when collected by any Grantor, shall be promptly (and, in any event, within two (2) Business Days) deposited by such Grantor in the exact form received, duly indorsed by such
Grantor to the Collateral Agent, in a Cash Collateral Account, subject to withdrawal by the Collateral Agent as provided in Section 5.4. Until so turned over, such payment shall be held by such Grantor in trust for the Collateral Agent,
segregated from other funds of such Grantor. Each such deposit of proceeds of accounts and payments in respect of general intangibles shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in
the deposit. 
 (b) Subject to the terms of the Intercreditor Agreement, at any time during the continuance of an Event of
Default: 
 (i) each Grantor shall, upon the Collateral Agent’s request, deliver to the Collateral Agent all
original and other documents evidencing, and relating to, the Contractual Obligations and transactions that gave rise to any account or any payment in respect of general intangibles, including all original orders, invoices and shipping receipts and
notify account debtors that the accounts or general intangibles have been collaterally assigned to the Collateral Agent and that payments in respect thereof shall be made directly to the Collateral Agent; 

(ii) the Collateral Agent may, without notice, at any time during the continuance of an Event of Default, limit or
terminate the authority of a Grantor to collect its accounts or amounts due under general intangibles or any thereof and, in its own name or in the name of others, communicate with account debtors to verify with them to the Collateral Agent’s
satisfaction the existence, amount and terms of any account or amounts due under any general intangible. In addition, the Collateral Agent may at any time enforce such Grantor’s rights against such account debtors and obligors of general
intangibles; and 
 (iii) each Grantor shall take all actions, deliver all documents and provide all information
necessary or reasonably requested by the Collateral Agent to ensure any Internet Domain Name is registered. 
 (c) Anything
herein to the contrary notwithstanding, each Grantor shall remain liable under each account and each payment in respect of general intangibles 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. No Secured Party shall have any obligation or liability under any agreement giving rise to an account or a payment in respect of a general intangible by reason of or arising out
of any Indenture Document or the receipt by any Secured Party of any payment relating thereto, nor shall any Secured Party be obligated in any manner 

 

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to perform any obligation of any Grantor under or pursuant to any agreement giving rise to an account or a payment in respect of a general intangible, 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. 
 Section 5.3 Pledged
Collateral. (a) Voting Rights. Subject to the terms of the Intercreditor Agreement, during the continuance of an Event of Default, upon notice by the Collateral Agent to the relevant Grantor or Grantors, the Collateral Agent or
its nominee may exercise (A) any voting, consent, corporate and other right pertaining to the Pledged Collateral at any meeting of shareholders, partners or members, as the case may be, of the relevant issuer or issuers of Pledged Collateral or
otherwise and (B) any right of conversion, exchange and subscription and any other right, privilege or option pertaining to the Pledged Collateral as if it were the absolute owner thereof (including the right to exchange at its discretion any
Pledged Collateral upon the merger, amalgamation, consolidation, reorganization, recapitalization or other fundamental change in the corporate or equivalent structure of any issuer of Pledged Stock, the right to deposit and deliver any Pledged
Collateral with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Collateral Agent may determine), all without liability except to account for property actually received by it and
except for any act constituting gross negligence, willful misconduct or bad faith as finally determined by a court of competent jurisdiction; provided, however, that the Collateral Agent shall have no duty to any Grantor 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, further, that if and when any such Event of Default shall have been cured or waived, (i) such voting rights
shall automatically revert to the applicable Grantor and (ii) the Collateral Agent, at the expense of the Grantors, shall execute such documents reasonably requested by Grantors to allow the owner of any equity interest to exercise any rights
associated with such equity interest. 
 (b) Proxies. In order to permit the Collateral Agent to exercise the voting and
other consensual rights that it may be entitled to exercise pursuant hereto and to receive all dividends and other distributions that it may be entitled to receive hereunder, (i) each Grantor shall promptly execute and deliver (or cause to be
executed and delivered) to the Collateral Agent all such proxies, dividend payment orders and other instruments as the Collateral Agent may from time to time reasonably request and (ii) without limiting the effect of clause (i) above, such
Grantor hereby grants to the Collateral Agent an irrevocable proxy to vote all or any part of the Pledged Collateral and to exercise all other rights, powers, privileges and remedies to which a holder of the Pledged Collateral would be entitled
(including giving or withholding written consents of shareholders, partners or members, as the case may be, calling special meetings of shareholders, partners or members, as the case may be, and voting at such meetings), which proxy shall be
effective, automatically and without the necessity of any action 
  

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(including any transfer of any Pledged Collateral on the record books of the issuer thereof) by any other person (including the issuer of such Pledged Collateral or any officer or agent thereof)
during the continuance of an Event of Default and which proxy shall only terminate upon the payment in full of the Secured Obligations (other than contingent indemnification obligations to the extent no claim giving rise thereto has been asserted).

 (c) Authorization of Issuers. Subject to the terms of the Intercreditor Agreement, each Grantor hereby expressly
irrevocably authorizes and instructs, without any further instructions from such Grantor, each issuer of any Pledged Collateral pledged hereunder by such Grantor to (i) comply with any instruction received by it from the Collateral Agent in
writing that states that an Event of Default is continuing and is otherwise in accordance with the terms of this Agreement and each Grantor agrees that such issuer shall be fully protected from Liabilities to such Grantor in so complying and
(ii) unless otherwise expressly permitted hereby or the Indenture, pay any dividend or make any other payment with respect to the Pledged Collateral directly to the Collateral Agent. The Collateral Agent hereby agrees that it shall not give any
such instructions unless an Event of Default has occurred and is continuing. 
 Section 5.4 Proceeds to be Turned
over to and Held by Collateral Agent. To the extent required in the Indenture, the Intercreditor Agreement or this Agreement, all proceeds of any Collateral received by any Grantor hereunder in cash or Cash Equivalents shall be held by such
Grantor in trust for the Collateral Agent and the other Secured Parties, segregated from other funds of such Grantor, and to the extent required by the Indenture, the Intercreditor Agreement or this Agreement shall, promptly upon receipt by any
Grantor, be turned over to the Collateral Agent (or, to the extent required by the Intercreditor Agreement, the First Lien Agent) in the exact form received (with any necessary endorsement). All such proceeds of Collateral and any other proceeds of
any Collateral received by the Collateral Agent in cash or Cash Equivalents shall be held by the Collateral Agent in a Cash Collateral Account. All proceeds being held by the Collateral Agent in a Cash Collateral Account (or by such Grantor in trust
for the Collateral Agent) shall continue to be held as collateral security for the Secured Obligations and shall not constitute payment thereof until applied as provided in the Indenture. 

Section 5.5 Sale of Pledged Collateral. (a) Each Grantor recognizes that the Collateral Agent may be unable to
effect a public sale of any Pledged Collateral by reason of certain prohibitions contained in the Securities Act and applicable state or foreign securities laws or otherwise or may determine that a public sale is impracticable, not desirable or not
commercially reasonable and, accordingly, may, subject to the terms of the Intercreditor Agreement, resort to one or more private sales thereof to a restricted group of purchasers that shall 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. Each Grantor 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, agrees that any such private sale shall be deemed to 
  

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have been made in a commercially reasonable manner. The Collateral Agent shall be under no obligation to delay a sale of any Pledged Collateral 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. 

(b) Each Grantor agrees to use its commercially reasonable efforts to do or cause to be done all such other acts as may be necessary to
make such sale or sales of any portion of the Pledged Collateral pursuant to Section 5.1 and this Section 5.5 valid and binding and in compliance with all applicable Requirements of Law. Each Grantor further agrees that a
breach of any covenant contained herein will cause irreparable injury to the Collateral Agent and the other Secured Parties, that the Collateral Agent and the other Secured Parties have no adequate remedy at law in respect of such breach and, as a
consequence, that each and every covenant contained herein shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defense against an action for specific performance of such covenants
except for a defense that no Event of Default has occurred under the Indenture or a defense of payment. Each Grantor waives any and all rights of contribution or subrogation upon the sale or disposition of all or any portion of the Pledged
Collateral by the Collateral Agent. 
 Section 5.6 Deficiency. Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or other disposition of any Collateral are insufficient to pay the Secured Obligations and the fees and disbursements of any attorney employed by the Collateral Agent or any other Secured Party to collect such
deficiency. 
 ARTICLE VI 

THE COLLATERAL AGENT 

Section 6.1 Collateral Agent’s Appointment as Attorney-in-Fact. (a) Each Grantor hereby irrevocably
constitutes and appoints the Collateral Agent and any Related Person 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 Grantor and in the name
of such Grantor or in its own name, upon the occurrence and during the continuance of any Event of Default, for the purpose of carrying out the terms of the Indenture Documents, to take any appropriate action and to execute any document or
instrument that may be necessary or desirable to accomplish the purposes of the Indenture Documents, and, without limiting the generality of the foregoing and subject to the terms of the Intercreditor Agreement, each Grantor hereby gives the
Collateral Agent and its Related Persons the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any of the following when an Event of Default shall be continuing: 

(i) in the name of such Grantor, in its own name or otherwise, take possession of and indorse and collect any check,
draft, note, acceptance or other instrument for the payment of moneys due under any account or general intangible or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or
otherwise deemed appropriate by the Collateral Agent for the purpose of collecting any such moneys due under any account or general intangible or with respect to any other Collateral whenever payable; 

 

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 (ii) in the case of any Intellectual Property owned by or licensed to the
Grantors, execute, deliver and have recorded any document that the Collateral Agent may request to evidence, effect, publicize or record the Collateral Agent’s security interest in such Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby, to the extent that such Intellectual Property is not Excluded Property; 

(iii) pay or discharge taxes and Liens levied or placed on or threatened against any Collateral, effect any repair or pay
any insurance called for by the terms of the Indenture (including all or any part of the premiums therefor and the costs thereof); 

(iv) execute, in connection with any sale provided for in Section 5.1 or Section 5.5, any document
to effect or otherwise necessary or appropriate in relation to evidence the sale of any Collateral; 
 (v) (A)
direct any party liable for any payment under any Collateral to make payment of any moneys due or to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct, (B) ask or demand for, and collect and receive
payment of and receipt for, any moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral, (C) sign and indorse any invoice, freight or express bill, bill of lading, storage or warehouse
receipt, draft against debtors, assignment, verification, notice and other document in connection with any Collateral, (D) commence and prosecute any suit, action or proceeding at law or in equity in any court of competent jurisdiction to
collect any Collateral and to enforce any other right in respect of any Collateral, (E) defend any actions, suits, proceedings, audits, claims, demands, orders or disputes brought against such Grantor with respect to any Collateral,
(F) settle, compromise or adjust any such actions, suits, proceedings, audits, claims, demands, orders or disputes and, in connection therewith, give such discharges or releases as the Collateral Agent may deem appropriate, (G) assign any
Intellectual Property owned by the Grantors or any IP Licenses of the Grantors throughout the world on such terms and conditions and in such manner as the Collateral Agent shall in its sole discretion determine, including the execution and filing of
any document necessary to effectuate or record such assignment and (H) generally, sell, assign, convey, transfer or grant a Lien on, make any Contractual Obligation with respect to and otherwise deal

  

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with, any Collateral as fully and completely as though the Collateral Agent were the absolute owner thereof for all purposes and do, at the Collateral Agent’s option, at any time or from
time to time, all acts and things that the Collateral Agent deems necessary to protect, preserve or realize upon any Collateral and the Secured Parties’ security interests therein and to effect the intent of the Indenture Documents, all as
fully and effectively as such Grantor might do; or 
 (vi) If any Grantor fails to perform or comply with any
Contractual Obligation contained herein or any other Indenture Document, the Collateral Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such Contractual Obligation.

 (b) The expenses of the Collateral Agent incurred in connection with actions undertaken as provided in this
Section 6.1 shall be payable by such Grantor to the Collateral Agent within five (5) Business Days after demand. 

(c) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue of this Section 6.1
and in accordance with the terms herein. All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.

 Section 6.2 Authorization to File Financing Statements. Each Grantor authorizes the Collateral Agent and
its Related Persons, at any time and from time to time, to file or record financing statements, amendments thereto, and other filing or recording documents or instruments with respect to any Collateral in such form and in such offices as the
Collateral Agent reasonably determines appropriate to perfect the security interests of the Collateral Agent under this Agreement, and such financing statements and amendments may describe the Collateral covered thereby as “all assets of the
debtor, whether now existing or hereafter arising or acquired, including all proceeds thereof”. A photographic or other reproduction of this Agreement shall be sufficient as a financing statement or other filing or recording document or
instrument for filing or recording in any jurisdiction. Such Grantor also hereby ratifies its authorization for the Collateral Agent to have filed any initial financing statement or amendment thereto under the UCC (or other similar laws) in effect
in any jurisdiction if filed prior to the date hereof. 
 Section 6.3 Authority of Collateral Agent. Each
Grantor acknowledges that the rights and responsibilities of the Collateral Agent under this Agreement with respect to any action taken by the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting right,
request, judgment or other right or remedy provided for herein or resulting or arising out of this Agreement shall, as between the Collateral Agent and the other Secured Parties, be governed by the Indenture and by such other agreements with respect
thereto as may exist from time to time among them, but, as between the Collateral Agent and the Grantors, the Collateral Agent shall be conclusively 

 

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presumed to be acting as agent for the Secured Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation or entitlement to make any
inquiry respecting such authority. 
 Section 6.4 Duty; Obligations and Liabilities. (a) Duty of
Collateral Agent. The Collateral Agent’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession shall be to deal with it in the same manner as the Collateral Agent deals with similar
property for its own account. The powers conferred on the Collateral Agent hereunder are solely to protect the Collateral Agent’s interest in the Collateral and shall not impose any duty upon the Collateral Agent to exercise any such powers.
The Collateral Agent shall be accountable only for amounts that it receives as a result of the exercise of such powers, and neither it nor any of its Related Persons shall be responsible to any Grantor for any act or failure to act hereunder, except
for their own gross negligence, bad faith, or willful misconduct as finally determined by a court of competent jurisdiction. In addition, the Collateral Agent shall not be liable or responsible for any loss or damage to any Collateral, or for any
diminution in the value thereof, by reason of the act or omission of any warehousemen, carrier, forwarding agency, consignee or other bailee if such Person has been selected by the Collateral Agent in good faith. 

(b) Obligations and Liabilities with respect to Collateral. No Secured Party and no Related Person thereof shall be liable for failure to
demand, collect or realize upon any 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 any Grantor or any other Person or to take any other action whatsoever
with regard to any Collateral. The powers conferred on the Collateral Agent hereunder shall not impose any duty upon any other Secured Party to exercise any such powers. 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 respective officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own
gross negligence, willful misconduct or bad faith as finally determined by a court of competent jurisdiction. 
 ARTICLE VII

 MISCELLANEOUS 

Section 7.1 Reinstatement. Each Grantor agrees that, if any payment made by any Grantor or other Person and applied to
the Secured Obligations is at any time annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or the proceeds of any Collateral are required to be returned by
any Secured Party to such Person, its estate, trustee, receiver or any other party, including any Grantor, under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or repayment, any Lien or
other Collateral securing such liability shall be and remain in 
  

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full force and effect, as fully as if such payment had never been made. If, prior to any of the foregoing, any Lien or other Collateral securing such Grantor’s liability hereunder shall have
been released or terminated by virtue of the foregoing, such Lien, other Collateral or provision shall be reinstated in full force and effect and such prior release, termination, cancellation or surrender shall not diminish, release, discharge,
impair or otherwise affect the obligations of any such Grantor in respect of any Lien or other Collateral securing such obligation or the amount of such payment. 

Section 7.2 Release of Collateral. (a) On the Termination Date, the Collateral shall automatically be released
from the Lien created hereby and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Collateral Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Collateral shall revert to the Grantors. Each Grantor (or such Grantor’s designee) is hereby authorized to file UCC-3 amendments, termination statements and other documents, such as
releases of security interest with the Applicable IP Office, at such time evidencing the termination of the Liens so released; provided, however, that in no event is any Grantor authorized to execute any instrument, agreement or document on behalf
of the Collateral Agent or any Secured Party to evidence such release pursuant to this Section 7.2. At the request of any Grantor following any such termination, the Collateral Agent shall deliver to such Grantor any Collateral of such
Grantor held by the Collateral Agent hereunder and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination. 

(b) If the Collateral Agent shall be directed or permitted pursuant to Article 13 of the Indenture to release any Lien on any Collateral,
such Collateral shall be released from the Lien created hereby to the extent provided under, and subject to the terms and conditions set forth in, such Article 13. In connection therewith, the Collateral Agent, at the request of any Grantor, shall
execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such release. 
 (c) At
the time provided in Article 13 of the Indenture and at the request of the Company, unless as a condition to the consent of the Collateral Agent and Secured Parties to such sale, if applicable, such Grantor is required to remain subject to this
Agreement, a Grantor shall be released from its obligations hereunder in the event that all the Stock and Stock Equivalents of such Grantor shall be sold to any Person that is not a Grantor in a transaction permitted by the Indenture Documents.

 Section 7.3 Independent Obligations. The obligations of each Grantor hereunder are independent of and
separate from the Secured Obligations. If any Secured Obligation is not paid when due, or during the continuance of any Event of Default, the Collateral Agent may, at its sole election, proceed directly and at once, without notice, against any
Grantor and any Collateral to collect and recover the full amount of any Secured Obligation then due, without first proceeding against any other Grantor or any other Collateral and without first joining any other Grantor in any proceeding.

  

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 Section 7.4 No Waiver by Course of Conduct. No Secured Party shall by any
act (except by a written instrument pursuant to Section 7.5), 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 any 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 any Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that such Secured Party would
otherwise have on any future occasion. 
 Section 7.5 Amendments in Writing. None of the terms or provisions
of this Agreement may be waived, amended, supplemented or otherwise modified except in accordance with Section 10.01 or 10.02 of the Indenture; provided, however, that annexes to this Agreement may be supplemented (but no existing
provisions may be modified and no Collateral may be released) through Pledge Amendments and Joinder Agreements, in substantially the form of Annex 1 and Annex 2, respectively, in each case duly executed by the Collateral Agent and each
Grantor directly affected thereby. 
 Section 7.6 Additional Grantors; Additional Pledged Collateral.
(a) Joinder Agreements. If, at the option of the Company or as required pursuant to the Indenture, the Company shall cause any Subsidiary that is not a Grantor to become a Grantor hereunder, such Subsidiary shall promptly execute and deliver to
the Collateral Agent a Joinder Agreement substantially in the form of Annex 2 and shall thereafter for all purposes be a party hereto and have the same rights, benefits and obligations as a Grantor party hereto on the date hereof. 

(b) Pledge Amendments. To the extent any Pledged Collateral which is otherwise required to be delivered hereunder and has not been
delivered as of the date hereof, such Grantor shall deliver a pledge amendment duly executed by the Grantor in substantially the form of Annex 1 (each, a “Pledge Amendment”). Such Grantor authorizes the Collateral Agent to
attach each Pledge Amendment to this Agreement. 
 Section 7.7 Notices. All notices, requests and demands to
or upon the Collateral Agent or any Grantor hereunder shall be effected in the manner provided for in Section 12.02 of the Indenture; provided, however, that any such notice, request or demand to or upon any Grantor shall be
addressed to the Company’s notice address set forth in Section 12.02 of the Indenture. 
 Section 7.8
Successors and Assigns. This Agreement shall be binding upon the successors and assigns of each Grantor and shall inure to the benefit of each Secured Party and their permitted successors and assigns; provided, however, that no
Grantor may assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the Collateral Agent. 
  

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 Section 7.9 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Signature pages may be detached from
multiple separate counterparts and attached to a single counterpart. Delivery of an executed signature page of this Agreement by facsimile transmission or by Electronic Transmission shall be as effective as delivery of a manually executed
counterpart hereof. 
 Section 7.10 Severability. Any provision of this Agreement being held illegal, invalid
or unenforceable in any jurisdiction shall not affect any part of such provision not held illegal, invalid or unenforceable, any other provision of this Agreement or any part of such provision in any other jurisdiction. 

Section 7.11 Governing Law. This Agreement and the rights and obligations of the parties hereto shall be governed by,
and construed and interpreted in accordance with, the law of the State of New York. 
 Section 7.12 Waiver of
Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY INDENTURE DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED THEREBY. 
 Section 7.13 Intercreditor Agreement. The Collateral Agent, the First Lien Agent and
the Grantors have entered into that certain Intercreditor Agreement of event date hereof (as the same may be amended, restated, supplemented or otherwise modified from time to time pursuant to the terms thereof, the “Intercreditor
Agreement”). To the extent any provision of this Agreement conflicts with the Intercreditor Agreement, the Intercreditor Agreement shall control at any time the Intercreditor Agreement is in effect. 

[SIGNATURE PAGES FOLLOW] 
  

 33 

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

			
	THERMON INDUSTRIES, INC. a Texas corporation, as Grantor
		
	By:	 	 /s/ Rodney Bingham

	Name:	 	 Rodney Bingham

	Title:	 	 President

	
	THERMON MANUFACTURING COMPANY, a Texas corporation, as Grantor
		
	By:	 	 /s/ Rodney Bingham

	Name:	 	 Rodney Bingham

	Title:	 	 President

	
	THERMON HEAT TRACING SERVICES, INC., a Texas corporation, as Grantor
		
	By:	 	 /s/ Rodney Bingham

	Name:	 	 Rodney Bingham

	Title:	 	 President

	
	THERMON HEAT TRACING SERVICES-II, INC., a Louisiana corporation, as Grantor
		
	By:	 	 /s/ Rodney Bingham

	Name:	 	 Rodney Bingham

	Title:	 	 President

	
	THERMON HEAT TRACING SERVICES-I, INC., a Texas corporation, as Grantor
		
	By:	 	 /s/ Rodney Bingham

	Name:	 	 Rodney Bingham

	Title:	 	 President

	
	THERMON HOLDING CORP., a Delaware corporation, as Grantor
		
	By:	 	 /s/ Rodney Bingham

	Name:	 	 Rodney Bingham

	Title:	 	 President

[SIGNATURE PAGE TO SECURITY AGREEMENT FOR INDENTURE] 

			
	 ACCEPTED AND AGREED as of the date first above written:

 
 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Collateral
Agent

		
	By:	 	 /s/ Marcela Burgess

	Name:	 	 MARCELA BURGESS

	Title:	 	 Vice President

[SIGNATURE PAGE TO SECURITY AGREEMENT FOR INDENTURE] 

 ANNEX 1 

TO 
 SECURITY
AGREEMENT 
 FORM OF PLEDGE AMENDMENT 

This Pledge Amendment, dated as of
[                    ] [    ], 20[    ], is delivered pursuant to
Section 7.6 of the Security Agreement, dated as of April 30, 2010, by and among Thermon Industries, Inc., a Texas corporation (the “Company”), the undersigned Grantor and the other Affiliates of the Company from
time to time party thereto as Grantors in favor of The Bank of New York Mellon Trust Company, N.A., as Collateral Agent for the Secured Parties referred to therein (as the same may be modified from time to time, the “Security
Agreement”). Capitalized terms used herein without definition are used as defined in the Security Agreement. 
 The
undersigned hereby agrees that this Pledge Amendment may be attached to the Security Agreement and that the Pledged Collateral listed on Annex 1-A to this Pledge Amendment shall be and become part of the Collateral referred to in the
Security Agreement and shall secure all Secured Obligations of the undersigned. 
 The undersigned hereby represents and
warrants that, with respect to the Pledged Collateral listed on Annex 1-A to this Pledge Amendment, each of the representations and warranties contained in Sections 3.1, 3.2, 3.5 and 3.10 of the Security Agreement is true
and correct and as of the date hereof as if made on and as of such date. 
  

			
	[GRANTOR]
		
	By:	 	  

		 	Name:
		 	Title:

  

To be used for pledge of Additional Pledged Collateral by existing Grantor. 
  

 A1-1 

 Annex 1-A 

PLEDGED STOCK 
  

									
	 ISSUER
	  	CLASS	  	CERTIFICATE
NO(S).	  	PAR
VALUE	  	NUMBER
OF
SHARES,

UNITS OR
INTERESTS

PLEDGED DEBT INSTRUMENTS 
  

									
	 ISSUER
	  	DESCRIPTION OF
DEBT	  	CERTIFICATE
NO(S).	  	FINAL
MATURITY	  	PRINCIPAL
AMOUNT

 
  

 A1-2 

			
	ACKNOWLEDGED AND AGREED as of the date first above written:
	
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. as Collateral Agent
		
	By:	 	  

		 	Name:
		 	Title:

  

 A1-3 

 ANNEX 2 

TO 
 SECURITY
AGREEMENT 
 FORM OF JOINDER AGREEMENT 

This JOINDER AGREEMENT, dated as of
[                    ] [    ], 20[    ], is delivered pursuant to
Section 7.6 of the Security Agreement, dated as of April 30, 2010, by and among Thermon Industries, Inc., a Texas corporation (the “Company”), and the Affiliates of the Company from time to time party thereto as
Grantors in favor of The Bank of New York Mellon Trust Company, N.A., as Collateral Agent for the Secured Parties referred to therein (the “Security Agreement”). Capitalized terms used herein without definition are used as defined
in the Security Agreement. 
 By executing and delivering this Joinder Agreement, the undersigned, as provided in
Section 7.6 of the Security Agreement, hereby becomes a party to the Security Agreement as a Grantor thereunder with the same force and effect as if originally named as a Grantor therein and, without limiting the generality of the
foregoing, as collateral security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations of the undersigned, hereby mortgages, pledges and hypothecates to
the Collateral Agent for the benefit of the Secured Parties, and grants to the Collateral Agent for the benefit of the Secured Parties a lien on and security interest in, all of its right, title and interest in, to and under the Collateral of the
undersigned and expressly assumes all obligations and liabilities of a Grantor thereunder. The undersigned hereby agrees to be bound as a Grantor for the purposes of the Security Agreement. During the effectiveness of the Security Agreement, each
Grantor authorizes the Collateral Agent and its Related Persons, at any time and from time to time, to file or record financing statements, amendments, thereto, and other filing or recording documents or instruments with respect to any Collateral in
such form and in such offices as the Collateral Agent reasonably determines appropriate to perfect the security interests of the Collateral Agent under the Security Agreement, and such financing statements and amendments may describe the Collateral
covered thereby as “all assets of the debtor, whether now existing or hereafter arising or acquired, including all proceeds thereof”. 

The information set forth in Annex 1-A is hereby added to the information set forth in Schedules 1 through 6 to
the Security Agreement. By acknowledging and agreeing to this Joinder Agreement, the undersigned hereby agree that this Joinder Agreement may be attached to the Security Agreement and that the Collateral listed on Annex 1-A to this
Joinder Amendment shall be and become part of the Collateral referred to in the Security Agreement and shall secure all Secured Obligations of the undersigned. 

The undersigned hereby represents and warrants that each of the representations and warranties contained in Article III of
the Security Agreement applicable to it is true and correct on and as the date hereof as if made on and as of such date. 
  

 A2-1 

 IN WITNESS WHEREOF, THE UNDERSIGNED HAS CAUSED THIS JOINDER AGREEMENT TO BE DULY EXECUTED
AND DELIVERED AS OF THE DATE FIRST ABOVE WRITTEN. 
  

			
	[Additional Grantor]
		
	By:	 	  

		 	Name:
		 	Title:

  

 A2-2 

			
	ACKNOWLEDGED AND AGREED as of the date first above written:
	
	[EACH GRANTOR PLEDGING ADDITIONAL COLLATERAL]
		
	By:	 	  

		 	Name:
		 	Title:
	
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. as Collateral Agent
		
	By:	 	  

		 	Name:
		 	Title:

  

 A2-3 

 ANNEX 3 

TO 
 SECURITY
AGREEMENT 
 FORM OF INTELLECTUAL PROPERTY SECURITY
AGREEMENT1 

THIS [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT, dated as of
                    , 20    , is made by
                    ,
[“                    ”],
                    [“                  
  ”] and
                    [“                  
  ”] (this “Agreement”), is made by each of the entities listed on the signature pages hereof (each a “Grantor” and, collectively, the “Grantors”), in favor of The Bank of New York
Mellon Trust Company, N.A., as collateral agent (in such capacity, together with its successors and permitted assigns, the “Collateral Agent”) for the Secured Parties (as defined in the Security Agreement referred to below).

 W I T N E S S E T H: 

WHEREAS, Thermon Finance, Inc. (which has heretofore been merged with and into the Company) and The Bank of New York Mellon Trust
Company, N.A., as trustee and collateral agent (in such capacity and together with its successors and assigns in such capacity, the “Trustee”), have entered into an Indenture, dated as of April 30, 2010 (as supplemented by the
First Supplemental Indenture, dated as of April 30, 2010, among the Company, the other Grantors party thereto and the Trustee, and as further amended, restated, supplemented and/or otherwise modified from time to time, the
“Indenture”); 
 WHEREAS, pursuant to the Indenture, (i) the Company has issued its 9.50% Senior Secured
Notes due 2017 (such notes, together with any other notes from time to time issued pursuant to the Indenture, the “Notes”) and (ii) each other Grantor has unconditionally guaranteed, on a joint and several basis, all
Obligations of the Company under the Indenture and the other Indenture Documents; 
 WHEREAS, all of the Grantors are party to a
Security Agreement of even date herewith in favor of the Collateral Agent (the “Security Agreement”), pursuant to which the Grantors are required to execute and deliver this Agreement; 

NOW, THEREFORE, in consideration of the premises and to induce the prospective Holders of the Notes to subscribe to the Notes, each
Grantor hereby agrees with the Collateral Agent as follows: 
 Section 1. Defined Terms. Capitalized terms
used herein without definition are used as defined in the Security Agreement. 
  

	1
	Separate agreements should be executed relating to each Grantor’s respective Copyrights, Patents, and Trademarks. 

 

 A3-1 

 Section 2. Grant of Security Interest in [Copyright] [Trademark] [Patent]
Collateral. Each Grantor, as collateral security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations of such Grantor, hereby mortgages, pledges and
hypothecates to the Collateral Agent for the benefit of the Secured Parties, and grants to the Collateral Agent for the benefit of the Secured Parties a Lien on and security interest in, all of its right, title and interest in, to and under the
following Collateral of such Grantor (other than any Excluded Property, but only during such time that such Collateral actually constitutes Excluded Property) (the “[Copyright] [Patent] [Trademark] Collateral”): 

(a) [all of its U.S. registered Copyrights, including, without limitation, those referred to on Schedule 1 hereto;

 (b) all renewals, reversions and extensions of the foregoing; and 

(c) all income, royalties, proceeds and Liabilities at any time due or payable or asserted under and with respect to any of the
foregoing, including, without limitation, all rights to sue and recover at law or in equity for any past, present and future infringement, misappropriation, dilution, violation or other impairment thereof.] 

or 
 (a) [all of its U.S.
issued Patents, including, without limitation, those referred to on Schedule 1 hereto; 
 (a) all reissues,
reexaminations, continuations, continuations-in-part, divisionals, renewals and extensions of the foregoing; and 
 (b) all
income, royalties, proceeds and Liabilities at any time due or payable or asserted under and with respect to any of the foregoing, including, without limitation, all rights to sue and recover at law or in equity for any past, present and future
infringement, misappropriation, dilution, violation or other impairment thereof.] 
 or 

(a) [all of its U.S. registered Trademarks, including, without limitation, those referred to on Schedule 1 hereto;

 (c) all renewals and extensions of the foregoing; 

(d) all goodwill of the business connected with the use of, and symbolized by, each such Trademark; and 

(e) all income, royalties, proceeds and Liabilities at any time due or payable or asserted under and with respect to any of the
foregoing, including, without limitation, all rights to sue and recover at law or in equity for any past, present and future infringement, misappropriation, dilution, violation or other impairment thereof.] 

Section 3. Security Agreement. The security interest granted pursuant to this Agreement is granted in conjunction with
the security interest granted to the Collateral Agent pursuant to the Security Agreement and each Grantor hereby acknowledges and agrees that the rights and remedies of the Collateral Agent with respect to the security

  

 A3-2 

 
interest in the [Copyright] [Patent] [Trademark] Collateral made and granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by
reference herein as if fully set forth herein. 
 Section 4. Grantor Remains Liable. Each Grantor hereby
agrees that, anything herein to the contrary notwithstanding, such Grantor shall assume full and complete responsibility for the prosecution, defense, enforcement or any other necessary or desirable actions in connection with their [Copyrights]
[Patents] [Trademarks] subject to a security interest hereunder. 
 Section 5. Counterparts. This Agreement
may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Signature
pages may be detached from multiple separate counterparts and attached to a single counterpart. Delivery of an executed signature page of this Agreement by facsimile transmission or Electronic Transmission shall be as effective as delivery of a
manually executed counterpart hereof. 
 Section 6. Termination. This Agreement shall terminate concurrently
with the termination of the Security Agreement. 
 Section 7. Governing Law. This Agreement and the rights
and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, the law of the State of New York. 

Section 8. Conflict with Other Agreements. In the event of any conflict between this Agreement (or any portion
thereof) and the Security Agreement, the Security Agreement shall prevail. 
 [SIGNATURE PAGES FOLLOW] 

 

 A3-3 

 IN WITNESS WHEREOF, each Grantor has caused this [Copyright] [Patent] [Trademark] Security
Agreement to be executed and delivered by its duly authorized officer as of the date first set forth above. 
  

									
		 		 		 	Very truly yours,
				
		 		 		 	 [GRANTOR]

as Grantor

					
		 		 		 	By:	 	  

		 		 		 		 	    Name:
		 		 		 		 	    Title:
	 ACCEPTED AND AGREED

as of the date first above written:
	 		 		 	
				
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. as Collateral Agent	 		 		 	
					
	By:	 	  
	 		 		 	
		 	Name:	 		 		 	
		 	Title:	 		 		 	

 [SIGNATURE PAGE TO [COPYRIGHT] [PATENT] [TRADEMARK] SECURITY AGREEMENT] 

 

 A3-4 

 SCHEDULE I 

TO 
 [COPYRIGHT]
[PATENT] [TRADEMARK] SECURITY AGREEMENT  
 [Copyright] [Patent] [Trademark] Registrations 

1. REGISTERED [COPYRIGHTS] [PATENTS] [TRADEMARKS] 

[Include Registration Number and Date] 
 2.
[COPYRIGHT] [PATENT] [TRADEMARK] APPLICATIONS 
 [Include Application Number and Date] 

3. IP LICENSES 
 [Include complete legal
description of agreement (name of agreement, parties and date)]Intercreditor Agreement

 EXHIBIT 10.4 

Execution Version 

INTERCREDITOR AGREEMENT 

INTERCREDITOR AGREEMENT (this “Agreement”) dated as of April 30, 2010, by and between the First Lien
Agent and the Second Lien Agent (each as defined below). 
 RECITALS: 

WHEREAS, Thermon Industries, Inc., a Texas corporation (the “US Borrower”), Thermon Canada Inc., a Nova Scotia company
(the “Canadian Borrower”; the US Borrower and the Canadian Borrower, together with their successors and assigns, including any receiver, trustee or debtor-in-possession, a “Borrower,” and collectively, the
“Borrowers”), the other Credit Parties (as defined therein), General Electric Capital Corporation, a Delaware corporation (in its individual capacity, “GE Capital”), as First Lien Agent (as defined below), GE Canada
Holding Finance Company, a Nova Scotia unlimited liability company (in its individual capacity, “GE Canada”), as First Lien Canadian Agent (as defined below), and the Lenders (as defined therein) (together with their respective
successors and assigns, are referred to herein each individually as a “First Lien Lender” and collectively as the “First Lien Lenders”), are parties to a Credit Agreement dated as of even date herewith (as amended,
restated, supplemented or otherwise modified and in effect from time to time in accordance with the terms of this Agreement, the “Initial First Lien Loan Agreement”), pursuant to which the First Lien Lenders have made and will from
time to time make loans and provide other financial accommodations to the Borrowers; 
 WHEREAS, the US Borrower, the guarantors
named therein and The Bank of New York Mellon Trust Company, N.A., in its capacities as trustee and collateral agent (the “Second Lien Agent”), are parties to an Indenture, dated as of April 30, 2010 (as amended, restated,
supplemented or otherwise modified and in effect from time to time in accordance with the terms of this Agreement, the “Initial Second Lien Indenture”) pursuant to which the US Borrower has issued its 9.5% Senior Secured Notes due
2017 (the “Initial Second Lien Notes”); 
 WHEREAS, the US Borrower and the other Obligors (as defined herein)
have granted to the First Lien Agent, for the benefit of the First Lien Creditors (as defined below), a Lien (as defined below) on substantially all of their assets and properties, all as more particularly described in the First Lien Documents (as
defined below); 
 WHEREAS, the US Borrower and the other Obligors have granted to the Second Lien Agent, for the benefit of the
Second Lien Creditors (as defined below), a Lien on substantially all of their assets and properties, all as more particularly described in the Second Lien Documents (as defined below); 

WHEREAS, the Second Lien Agent, on behalf of the Second Lien Creditors, and the First Lien Agent, on behalf of the First Lien Creditors,
wish to set forth their agreement as to certain of their respective rights and obligations with respect to the Collateral of the US Borrower and the other Obligors and their understanding relative to their respective positions in such Collateral;
and 

 NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the parties hereto agree as follows: 
  

	Section 1.	Definitions. 

 1.1
General Terms. As used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable equally to both the singular and the plural forms of the terms defined: 

“Agent” means the First Lien Agent or the Second Lien Agent, as applicable. 

“Agent’s Notice” shall have the meaning set forth in Section 5.1. 

“Agreement” shall have the meaning set forth in the preamble hereof. 

“Bankruptcy Code” means the provisions of Title 11 of the United States Code, 11 U.S.C. §§101 et seq.

 “Bankruptcy Law” means the Bankruptcy Code and any other federal, state or foreign bankruptcy, insolvency,
receivership or similar law. 
 “Borrower” and “Borrowers” shall have the meaning set forth in
the recitals hereof. 
 “Business Day” means any day of the year that is not a Saturday, a Sunday or a day on
which banks are required or authorized to close in New York City, New York. 
 “Collateral” means all assets
and properties of any kind whatsoever, real or personal, tangible or intangible and wherever located, of any Obligor, whether now owned or hereafter acquired, upon which a Lien (including, without limitation, any Liens granted in any Insolvency
Proceeding) is now or hereafter granted or purported to be granted by such Person in favor of a Secured Creditor under a First Lien Document or a Second Lien Document (as applicable), as security for all or any part of the Obligations. 

“Debt Action” means (a) the filing of a lawsuit by any Secured Creditor solely to collect the Obligations owed to
such Secured Creditor and not to exercise their secured creditor remedies in respect of the Collateral, (b) the demand by any Secured Creditor for accelerated payment of any and all of the Obligations owed to such Secured Creditor, (c) the
filing of any notice or proof of claim or statement of interest and the voting of any such claim in any Insolvency Proceeding involving an Obligor, (d) the filing of any motion in any Insolvency Proceeding permitted under Section 6,
(e) the filing of any defensive or responsive pleading to the extent not inconsistent with the terms of this Agreement, (f) the taking of any action to create, prove, preserve, perfect or protect the validity or enforceability of a Secured
Creditor’s Liens to the extent not inconsistent with this Agreement, (g) the commencement or initiation by any Secured Creditor in respect of its Lien Deficiency of an Insolvency Proceeding against any Obligor or (h) the exercising of
a Secured Creditor’s rights and remedies as an unsecured creditor to the extent not inconsistent with the terms of this Agreement. 
  

 2 

 “DIP Financing” shall have the meaning set forth in
Section 6.2. 
 “DIP Liens shall have the meaning set forth in Section 6.2. 

“Disposition” means any sale, lease, exchange, transfer or other disposition, and “Dispose” and
“Disposed of” shall have correlative meanings. 
 “Distribution” means, with respect to any
Collateral, any distribution of or in respect of any Collateral (whether or not expressly characterized as such) (including by way of setoff). 

“Documents” means the First Lien Documents and the Second Lien Documents, or any of them. 

“Enforcement Action” means (a) any action by any Secured Creditor to foreclose on the Lien of such Person in any
Collateral, (b) any action by any Secured Creditor to take possession of (other than taking “possession” (as such term is defined in the UCC) for the sole purpose of perfecting such Secured Party’s Lien on such Collateral), or
sell or otherwise realize upon, or to exercise any other rights or remedies with respect to, any Collateral, including any Disposition of Collateral by a Secured Creditor after the occurrence of an Event of Default, (c) the taking of any other
remedial actions by a Secured Creditor against any Collateral, including the taking of control or possession of (other than taking “control” or “possession” (as such terms are defined in the UCC) for the sole purpose of
perfecting such Secured Party’s Lien on such Collateral), or the exercise of any right of setoff with respect to, any Collateral and/or (d) the commencement by any Secured Creditor of any legal proceedings or actions against or with
respect to any Collateral to facilitate any of the actions described in clauses (a), (b) and (c) above; provided that this definition shall not include any Debt Action. 

“Event of Default” means each “Event of Default” or similar term, as such term is defined in any First Lien
Document or any Second Lien Document, as applicable. 
 “Excess Claims” has the meaning set forth in the
definition of First Lien Obligations contained herein. 
 “First Lien Agent” means GE Capital in its capacity
as (a) administrative agent, disbursing agent and collateral agent for the First Lien US Creditors and (b) in its capacity as collateral agent for the First Lien Canadian Creditors solely with respect to any Collateral of the Obligors
securing First Lien Canadian Obligations, and its successors and assigns in each such capacity (including one or more other agents or similar contractual representatives for one or more lenders that at any time succeeds to or refinances, replaces or
substitutes for any or all of the First Lien Obligations at any time and from time to time). 
 “First Lien
Avoidance” shall have the meaning set forth in Section 6.4. 
 “First Lien Canadian Agent”
means GE Canada, in its capacity as (a) administrative agent and disbursing agent for the First Lien Canadian Creditors and (b) collateral agent for the First Lien Canadian Creditors solely with respect to any collateral of the Canadian
Borrower and any Canadian Subsidiaries (as defined in the Initial First Lien Loan Agreement) 
  

 3 

 
securing First Lien Canadian Obligations, and its successors and assigns in each such capacity (including one or more other agents or similar contractual representatives for one or more lenders
that at any time succeeds to or refinances, replaces or substitutes for any or all of the First Lien Canadian Obligations at any time and from time to time). 

“First Lien Canadian Creditors” means the First Lien Canadian Agent, the First Lien Canadian Lenders and the other
Persons from time to time holding First Lien Canadian Obligations. 
 “First Lien Canadian Lenders” means First
Lien Lenders with a “Canadian Revolving Loan Commitment” (as defined in the Initial First Lien Credit Agreement) and their successors and assigns. 

“First Lien Canadian Obligations” means all obligations, liabilities and indebtedness of every kind, nature and
description owing by the US Borrower and/or any other Obligors to one or more of the First Lien Canadian Creditors evidenced by or arising under one or more of the First Lien Documents (including any First Lien Loans, First Lien Letter of Credit
Obligations and Hedging Obligations), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, including principal, interest, charges, fees, costs, indemnities and
reasonable expenses, however evidenced, and whether as principal, surety, endorser, guarantor or otherwise, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of the First Lien Loan
Agreement and whether arising before, during or after the commencement of any Insolvency Proceeding with respect to one or more of the Borrowers or the other Obligors (and including the payment of any principal, interest, fees, cost, expenses and
other amounts (including default rate interest) which would accrue and become due but for the commencement of such Insolvency Proceeding whether or not such amounts are allowed or allowable in whole or in part in any such Insolvency Proceeding).

 “First Lien Creditors” means the First Lien US Creditors, the First Lien Canadian Creditors and the other
Persons from time to time holding First Lien Obligations. 
 “First Lien Deficiency” means any portion of the
First Lien Obligations consisting of an allowed unsecured claim under Section 506(a) of the Bankruptcy Code (or any similar provision under any other Bankruptcy Law). 

“First Lien Documents” means the First Lien Loan Agreement, all Loan Documents (as such term is defined in the First
Lien Loan Agreement) and all other agreements, documents and instruments at any time executed and/or delivered by any Obligor with, to or in favor of the First Lien Agent or any First Lien Creditor in connection therewith or related thereto,
including such documents evidencing successive Refinancings of the First Lien Obligations permitted hereunder, in each case, as amended, amended and restated, supplemented, modified, replaced, substituted or renewed from time to time in accordance
with the terms of this Agreement. 
 “First Lien Lenders” shall have the meaning set forth in the recitals
hereto. 
  

 4 

 “First Lien Letter of Credit Obligations” means all outstanding obligations
incurred by or owing to the First Lien Creditors by the US Borrower or any other Obligor, whether direct or indirect, contingent or otherwise (including by way of guaranty), due or not due, in connection with the issuance of letters of credit by a
First Lien Creditor or another issuer pursuant to the First Lien Documents or the purchase of a participation with respect to any letter of credit issued pursuant to a First Lien Document, including any unpaid reimbursement obligations in respect
thereof. The amount of such First Lien Letter of Credit Obligations shall equal the maximum amount that may be payable at such time or at any time thereafter by or to the First Lien Creditors thereupon or pursuant thereto. 

“First Lien Loan Agreement” means (a) the Initial First Lien Loan Agreement and (b) each loan or credit
agreement evidencing any initial or subsequent replacement, substitution, renewal, or Refinancing (to the extent permitted hereunder) of the Obligations under the then effective First Lien Loan Agreement, in each case as the same may from time to
time be amended, amended and restated, supplemented, modified, replaced, substituted, renewed or Refinanced in accordance with the terms of this Agreement. 

“First Lien Loans” means any loans or advances outstanding under the First Lien Documents. 

“First Lien Obligations” means all First Lien Canadian Obligations and all First Lien US Obligations; provided that the
aggregate principal amount (which, for the avoidance of doubt, does not include Hedging Obligations) of, without duplication, all First Lien Canadian Obligations and First Lien US Obligations in excess of the Maximum First Lien Principal Amount,
together with all interest and fees on such excess amounts, shall not constitute First Lien Obligations for purposes of this Agreement (such excess amounts being referred to herein as “Excess Claims”). This Agreement does not
constitute the consent by the Second Lien Agent and/or any other Second Lien Creditor to the incurrence or existence of any Excess Claim, or to the provision of collateral security for any Excess Claim, that would constitute a “Default” or
“Event of Default” under the Second Lien Documents, nor does this Agreement constitute a waiver by the Second Lien Agent and/or any other Second Lien Creditor of any such “Default” or “Event of Default”, and nothing in
this Agreement shall be interpreted to effect such a consent or waiver. 
 “First Lien Secured Claims” means
any portion of the First Lien Obligations not constituting a First Lien Deficiency. 
 “First Lien Termination
Date” means the date on which all First Lien Obligations have been Paid in Full. 
 “First Lien US
Creditors” means the First Lien US Agent, the First Lien US Lenders and the other Persons from time to time holding First Lien US Obligations. 

“First Lien US Lenders” means First Lien Lenders with a commitment to make loans to the US Borrower or any other Obligor
and their successors and assigns. 
 “First Lien US Obligations” means all obligations, liabilities and
indebtedness of every kind, nature and description owing by one or more of the Obligors to one or more of the 
  

 5 

 
First Lien US Creditors evidenced by or arising under one or more of the First Lien Documents (including in any event any First Lien Loans, First Lien Letter of Credit Obligations and Hedging
Obligations), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, including principal, interest, charges, fees, costs, indemnities and reasonable expenses, however
evidenced, and whether as principal, surety, endorser, guarantor or otherwise, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of the First Lien Loan Agreement and whether arising
before, during or after the commencement of any Insolvency Proceeding with respect to one or more of the Obligors (and including the payment of any principal, interest, fees, cost, expenses and other amounts (including default rate interest) which
would accrue and become due but for the commencement of such Insolvency Proceeding whether or not such amounts are allowed or allowable in whole or in part in any such Insolvency Proceeding). 

“Hedging Obligations” means all obligations of the US Borrower or any Obligor, whether direct or indirect, contingent or
otherwise (including by way of guaranty), under and in respect of any Secured Hedging Agreement. 
 “Initial First Lien
Loan Agreement” shall have the meaning set forth in the recitals hereto. 
 “Initial Second Lien
Indenture” shall have the meaning set forth in the recitals hereto. 
 “Initial Second Lien Notes”
shall have the meaning set forth in the recitals hereto. 
 “Insolvency Proceeding” means, as to any Obligor,
any of the following: (a) any case or proceeding with respect to such Person under the Bankruptcy Code or any other federal or state bankruptcy, insolvency, reorganization or other similar law affecting creditors’ rights or any other or
similar proceedings seeking any stay, reorganization, arrangement, composition or readjustment of the obligations and indebtedness of such Obligor, (b) any proceeding seeking the appointment of any trustee, receiver, liquidator, custodian or
other insolvency official with similar powers with respect to such Obligor or any of its assets, (c) any proceeding for liquidation, dissolution or other winding up of the business of such Obligor or (d) any assignment for the benefit of
creditors or any marshalling of assets of such Obligor. 
 “Junior Adequate Protection Liens” shall have the
meaning set forth in Section 6.2(b). 
 “Lien” means any mortgage, deed of trust, pledge,
hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien (statutory or otherwise), security interest or other security arrangement and any other preference, priority or preferential arrangement of any kind or nature
whatsoever, including any conditional sale contract or other title retention arrangement, the interest of a lessor under a capital lease and any synthetic or other financing lease having substantially the same economic effect as any of the
foregoing. 
 “Lien Deficiency” mean the First Lien Deficiency or the Second Lien Deficiency, as the context
may require. 
  

 6 

 “Maximum First Lien Principal Amount” means, as of any date of
determination, (a) the greater of (I) $50,000,000 minus the aggregate amount of all proceeds from asset sales that are applied to repay permanently principal of loans under the First Lien Loan Agreement and, in the case of any such
repayment of revolving loans, effect a corresponding and permanent reduction of commitments under the First Lien Loan Agreement and (II) the principal amount of Indebtedness permitted to be incurred in reliance on clause (1) of the definition
of Permitted Debt under (and as defined in) the Initial Second Lien Indenture (as in effect on the date hereof (which, in either such event may be advanced prior to any Insolvency Proceeding and/or as a component of a DIP Financing),
plus (b) Hedging Obligations, interest, fees, costs, expenses, indemnities and other amounts (other than principal and drawings or payments in respect of letters of credit, bankers’ acceptances and similar extensions of
credit) payable pursuant to or secured under the terms of the First Lien Documents as in effect on the date hereof, or as amended, restated, supplemented, modified, replaced, substituted or renewed from time to time in accordance with this
Agreement, whether or not the same are added to the principal amount of the First Lien Obligations and including the same as would accrue and become due but for the commencement of an Insolvency Proceeding, whether or not such amounts are allowed or
allowable in whole or in part in any such Insolvency Proceeding. 
 “Maximum Second Lien Principal Amount”
means as of any date of determination, an amount equal to (a) $220,000,000, minus (b) the sum of all principal payments thereof (including voluntary and mandatory prepayments) after the date hereof (but specifically excluding
prepayments occurring in connection with Refinancings permitted hereunder) plus (c) interest, fees, costs, expenses, indemnities and other amounts payable pursuant to the terms of the Second Lien Documents as in effect on the date
hereof, or as amended, restated, supplemented, modified, replaced, substituted or renewed from time to time in accordance with this Agreement, whether or not the same are added to the principal amount of the Second Lien Obligations and including the
same as would accrue and become due but for the commencement of an Insolvency Proceeding, whether or not such amounts are allowed or allowable in whole or in part in any such Insolvency Proceeding). 

“New First Lien Agent” shall have the meaning set forth in Section 4.5(a). 

“New First Lien Documents” shall have the meaning set forth in Section 4.5(a). 

“New First Lien Obligations” shall have the meaning set forth in Section 4.5(a). 

“New Second Lien Agent” shall have the meaning set forth in Section 4.5(b). 

“New Second Lien Documents” shall have the meaning set forth in Section 4.5(b). 

“New Second Lien Obligations” shall have the meaning set forth in Section 4.5(b). 

“Obligations” means the First Lien Obligations and the Second Lien Obligations, or any of them. 

 

 7 

 “Obligor” means the US Borrower, Thermon Holding Corp. and each other
subsidiary thereof liable on or in respect of the Obligations or that has granted a Lien on any property or assets as Collateral (other than the Canadian Borrower and its Canadian subsidiaries and any other subsidiary of Thermon Holding Corp. not
incorporated, organized or otherwise formed under the laws of the United States, any state thereof, the District of Columbia, Canada or any province or territory thereof), together with such Person’s successors and assigns, including a
receiver, trustee or debtor-in-possession on behalf of such Person. 
 “Paid in Full” or “Payment in
Full” means, with respect to any Obligations, that: (a) all of such Obligations (other than contingent indemnification and similar obligations for which no underlying claim has been asserted) have been paid or discharged in full (with
all such Obligations consisting of monetary or payment obligations having been paid in full in cash or such payment has otherwise been provided for to the satisfaction of all of the respective Secured Creditors), (b) no Obligor has any further
right to obtain, or any further obligation as a guarantor with respect to, any loans, letters of credit, bankers’ acceptances, or other extensions of credit under the documents relating to such Obligations and (c) any and all letters of
credit, bankers’ acceptances or similar instruments issued under such documents have been cancelled and returned (or backed by stand-by guarantees, letters of credit or cash collateralized) in accordance with the terms of such documents and all
Hedging Obligations terminated and paid in full in cash or payment has otherwise been provided for to the satisfaction of all of the respective Secured Creditors. 

“Permitted Collateral Sale” means any Disposition of Collateral so long as such Disposition is permitted under both the
First Lien Loan Agreement and the Second Lien Indenture as such Second Lien Indenture is in effect on the date hereof (or on terms no less favorable to the First Lien Lenders and Obligors than those in effect on the date hereof). The term Permitted
Collateral Sale shall not include any Disposition occurring or effected under any circumstance or condition described in the definition of “Release Event.” 

“Permitted Second Lien Disposition” shall mean a Disposition of any Collateral in connection with an Enforcement Action
by any Second Lien Creditors after the expiration of the Standstill Period and subject to the terms of Section 3.1 of this Agreement. 

“Person” means an individual, partnership, corporation (including a business trust and a public benefit corporation),
joint stock company, estate, association, firm, enterprise, trust, limited liability company, unincorporated association, joint venture, governmental authority or any other entity or regulatory body. 

“Purchase Notice” shall have the meaning set forth in Section 5.1. 

“Purchase Triggering Event” shall mean (a) the acceleration of all or any portion of the First Lien Obligations,
(b) the commencement by any First Lien Creditor of any Enforcement Action on any material portion of the Collateral (other than to exercise control over, or to sweep funds held in, any Obligor’s deposit or securities account), (c) a
default in any payment of principal or interest on First Lien Obligations which remains uncured or unwaived for a period of thirty (30) consecutive days or (d) the commencement of any Insolvency Proceeding against an Obligor. 

 

 8 

 “Rate Contract” means any swap agreement (as such term is defined in
Section 101 of the Bankruptcy Code) and any other similar agreement or arrangement designed to provide protection against fluctuations in interest or currency exchange rates. 

“Refinance”, “Refinancings” and “Refinanced” means, in respect of any Obligations, to
issue other indebtedness in exchange or replacement for such Obligations, in whole or in part. 
 “Release
Documents” shall have the meaning set forth in Section 2.5. 
 “Release Event” means the
taking of any Enforcement Action by the First Lien Creditors against all or any portion of the Collateral or, after the occurrence and during the continuance of an Insolvency Proceeding by or against any Obligor, the entry of an order of the
Bankruptcy Court pursuant to Section 363 or 1129 of the Bankruptcy Code authorizing the sale of all or any portion of the Collateral. 

“Requisite Second Lien Creditors” means Second Lien Creditors holding more than 50% of the outstanding principal balance
of the Second Lien Notes. 
 “Second Lien Agent” shall have the meaning set forth in the recitals hereof and
its permitted successors and assigns in such capacity (including one or more other trustees, administrative agents, collateral agents or similar contractual representatives for one or more holders or lenders that at any time succeeds to or
refinances, replaces or substitutes for any or all of the Second Lien Obligations at any time and from time to time). 

“Second Lien Creditors” means the Second Lien Agent and the holders and/or lenders from time to time of (or in respect
of) the Second Lien Notes. 
 “Second Lien Default” means any Event of Default under the Second Lien Documents.

 “Second Lien Default Notice” means with respect to any Second Lien Default, a written notice from the Second
Lien Agent to the First Lien Agent indicating that such Second Lien Default has occurred and describing such Second Lien Default. 

“Second Lien Deficiency” means any portion of the Second Lien Obligations consisting of an allowed unsecured claim under
Section 506(a) of the Bankruptcy Code (or any similar provision under any other Bankruptcy Law). 
 “Second Lien
Disposition Notice” shall have the meaning set forth in Section 2.10(a). 
 “Second Lien
Documents” means the Second Lien Indenture, all Indenture Documents and/or Loan Documents (as any such term is defined in the Second Lien Indenture) and all other agreements, documents and instruments at any time executed and/or delivered
by any Obligor or any other Person with, to or in favor of the Second Lien Agent or any Second Lien Creditor in connection therewith or related thereto, including such documents evidencing successive Refinancings of the Second Lien Obligations
permitted hereunder in each case, as amended, amended and restated, supplemented, modified, replaced, substituted or renewed from time to time in accordance with the terms of this Agreement. 

 

 9 

 “Second Lien Indenture” means (a) the Initial Second Lien Indenture
and (b) each loan or credit agreement, indenture, purchase agreement, note agreement or other agreement evidencing any replacement, substitution, renewal, or Refinancing (to the extent permitted hereunder) of the Obligations under the then
effective Second Lien Indenture, in each case as amended, amended and restated, modified, supplemented, replaced, substituted, renewed or Refinanced in accordance with the terms of this Agreement. 

“Second Lien Notes” means the Initial Second Lien Notes and all other notes, loans, advances or other extension of
credit outstanding from time to time under the Second Lien Documents. 
 “Second Lien Obligations” means all
obligations, liabilities and indebtedness of every kind, nature and description owing by one or more Obligors to one or more of the Second Lien Creditors evidenced by or arising under one or more of the Second Lien Documents (including the Second
Lien Notes), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, including principal, premium, interest, charges, fees, costs, indemnities and reasonable expenses,
however evidenced, whether as principal, surety, endorser, guarantor or otherwise, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of the Second Lien Indenture and whether arising
before, during or after the commencement of any Insolvency Proceeding with respect to any Obligor (and including the payment of interest which would accrue and become due but for the commencement of such Insolvency Proceeding, whether or not such
interest is allowed or allowable in whole or in part in any such Insolvency Proceeding); provided that the aggregate principal amount of all Second Lien Obligations in excess of the Maximum Second Lien Principal Amount, together with all interest
and fees on such excess amounts, shall not constitute Second Lien Obligations for purposes of this Agreement (such excess amounts being referred to herein as “Second Lien Excess Claims”). This Agreement does not constitute the
consent by the First Lien Agent and/or any other First Lien Creditor to the incurrence or existence of any Second Lien Excess Claim, or to the provision of collateral security for any Second Lien Excess Claim, that would constitute an Event of
Default, nor does this Agreement constitute a waiver by the First Lien Agent and/or any other First Lien Creditor of any such Event of Default, and nothing in this Agreement shall be interpreted to effect such a consent or waiver. 

“Second Lien Secured Claims” means any portion of the Second Lien Obligations not constituting a Second Lien Deficiency.

 “Secured Claims” means the First Lien Secured Claims and/or the Second Lien Secured Claims as the context
may require. 
 “Secured Creditors” means the First Lien Creditors and the Second Lien Creditors, or any of
them. 
  

 10 

 “Secured Hedging Agreement” means a Rate Contract (a) between a
Borrower and a Secured Swap Provider or (b) between a Borrower and a counterparty thereto, which has been provided or arranged by GE Capital or an affiliate of GE Capital. 

“Secured Swap Provider” means (a) a First Lien Lender or an affiliate of a First Lien Lender (or a Person who was a
First Lien Lender or an affiliate of a First Lien Lender at the time of execution and delivery of a Rate Contract) who has entered into a Rate Contract with a Borrower, or (b) a Person with whom a Borrower has entered into a Rate Contract
provided or arranged by GE Capital or an affiliate of GE Capital, and any assignee thereof. 
 “Senior Adequate
Protection Liens” shall have the meaning set forth in Section 6.2(a). 
 “Standstill
Period” means the period commencing on the date of a Second Lien Default and ending upon the date which is the earlier of (a) 180 days after the First Lien Agent has received a Second Lien Default Notice with respect to such Second
Lien Default and (b) the date on which the First Lien Obligations have been Paid in Full; provided that in the event that as of any day during such 180 days, no Second Lien Default is continuing, then the Standstill Period shall be
deemed not to have commenced. 
 “UCC” means the Uniform Commercial Code of any applicable jurisdiction and, if
the applicable jurisdiction shall not have any Uniform Commercial Code, the Uniform Commercial Code as in effect in the State of New York. 

“UCC Notice” shall have the meaning set forth in Section 3.1. 

1.2 Certain Matters of Construction. The words “hereof”, “herein” 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 references are to this Agreement unless otherwise specified. For purposes of this Agreement, the
following additional rules of construction shall apply: (a) wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and pronouns stated in the masculine,
feminine or neuter gender shall include the masculine, the feminine and the neuter, (b) the term “including” shall not be limiting or exclusive, unless specifically indicated to the contrary, (c) all references to statutes and
related regulations shall include any amendments of same and any successor statutes and regulations and (d) unless otherwise specified, all references to any instruments or agreements, including references to any of this Agreement and the
Documents, shall include any and all modifications or amendments thereto and any and all extensions or renewals thereof, in each case, made in accordance with the terms hereof. 

 

	Section 2.	Security Interests; Priorities. 

2.1 Priorities. Each Secured Creditor hereby acknowledges that other Secured Creditors have been granted Liens upon the Collateral
to secure their respective Obligations. The Liens of the First Lien Agent on the Collateral are and shall be senior and prior in right to the Liens of the Second Lien Agent on the Collateral, and such Liens of the Second Lien Agent on the Collateral
are and shall be junior and subordinate to the Liens of the First Lien Agent, in 
  

 11 

 
each case upon the terms and conditions of this Agreement. The priorities of the Liens provided in this Section 2.1 shall not be altered or otherwise affected by any amendment,
modification, supplement, extension, renewal, restatement, replacement or Refinancing of any of the Obligations, nor by any action or inaction which any of the Secured Creditors may take or fail to take in respect of the Collateral, not inconsistent
with the terms of this Agreement. 
 2.2 No Alteration of Priority. The priorities set forth in this Agreement are
applicable irrespective of the order or time of attachment, or the order, time or manner of perfection, or the order or time of filing or recordation of any document or instrument, or other method of perfecting a Lien in favor of each Secured
Creditor in any Collateral, and notwithstanding any conflicting terms or conditions which may be contained in any of the Documents. 

2.3 Perfection; Contesting Liens. Each Secured Creditor shall be solely responsible for perfecting and maintaining the perfection
of its Lien in the Collateral in which such Secured Creditor has been granted a Lien. The foregoing provisions of this Agreement are intended solely to govern the respective Lien priorities as among the Secured Creditors and shall not impose on any
Secured Creditor any obligations in respect of the Disposition of proceeds of any Collateral that would conflict with prior perfected claims therein in favor of any other Person or any order or decree of any court or governmental authority or any
applicable law. Each Secured Creditor agrees that it will not institute or join in any contest of the validity, perfection, priority or enforceability of the Liens of the other Secured Creditor in the Collateral or the enforceability of the First
Lien Obligations or the Second Lien Obligations; provided that nothing in this Agreement shall be construed to prevent or impair the rights of the First Lien Agent or the Second Lien Agent to enforce this Agreement, including the provisions
hereof relating to Lien priority. 
 2.4 Proceeds of Collateral. Any Collateral or proceeds thereof received by
any Second Lien Creditor including, without limitation, any such Collateral constituting proceeds, or any Distribution, that may be received by any Second Lien Creditor (a) in connection with any Enforcement Action (including any right of
setoff) with respect to the Collateral, (b) in connection with any insurance policy claim or any condemnation award (or deed in lieu of condemnation) with respect to the Collateral (other than payments made in accordance with the terms of the
Second Lien Documents as in effect on the date hereof (or on terms no less favorable to the First Lien Lenders and Obligors than those in effect on the date hereof)), (c) from the collection or other Disposition of, or realization on, the
Collateral, whether or not pursuant to an Insolvency Proceeding (other than payments made in accordance with the terms of the Second Lien Documents as in effect on the date hereof (or on terms no less favorable to the First Lien Lenders and Obligors
than those in effect on the date hereof)) or (d) in violation of this Agreement, shall be segregated and held in trust and promptly paid over to the First Lien Agent, for the benefit of the First Lien Creditors, in the same form as received,
with any necessary endorsements, for payment of the First Lien Obligations and each Second Lien Creditor hereby authorizes the First Lien Agent to make any such endorsements as agent for the Second Lien Agent (which authorization, being coupled with
an interest, is irrevocable). All Collateral and proceeds thereof received by any First Lien Creditor prior to the First Lien Termination Date shall be applied to the First Lien Obligations, and all Collateral and all proceeds thereof received from
and after the First Lien Termination Date shall be forthwith paid over, in the kind or funds and currency received with any necessary endorsements, to the Second Lien Creditors for application to the Second Lien Obligations (unless otherwise
required by law or court order).  
  

 12 

 2.5 Release of Collateral Upon Permitted Collateral Sale. The Second Lien Agent, on
behalf of the Second Lien Creditors, shall at any time in connection with any Permitted Collateral Sale: (a) upon the request of the First Lien Agent with respect to the Collateral subject to such Permitted Collateral Sale and concurrently with
such Permitted Collateral Sale, release or otherwise terminate its Liens on such Collateral (and/or, in the case of a Permitted Collateral Sale consisting of the sale or disposition of all the equity interests of any Guarantor, release such
Guarantor from its obligations under the relevant Documents), (b) promptly deliver such terminations of financing statements, partial lien releases, mortgage satisfactions and discharges, endorsements, assignments or other instruments of
transfer, termination or release (collectively, “Release Documents”) and take such further actions as the First Lien Agent shall reasonably require in order to release and/or terminate such Second Lien Agent’s Liens on the
Collateral (or release such Guarantor) subject to such Permitted Collateral Sale; provided that the First Lien Agent’s Lien and security interest on the Collateral subject to such Permitted Collateral Sale (and, in the case of a sale of
all of the equity interests of a Guarantor, any guaranty or other obligations of such Guarantor under the First Lien Documents) are concurrently released, terminated and discharged and the First Lien Agent shall have provided to the relevant Obligor
or Obligors comparable Release Documents (it being understood that the Second Lien Agent shall still, subject to the terms of this Agreement, have a security interest with respect to the proceeds of such Collateral). 

2.6 Release of Collateral Upon Release Event. The Second Lien Agent, on behalf of the Second Lien Creditors, shall, at any time in
connection with a Release Event with respect to any Collateral: (a) upon the request of the First Lien Agent with respect to the Collateral subject to such Release Event (which request will specify the principal proposed terms of the sale and
the type and amount of consideration expected to be received in connection therewith) and concurrently with such Release Event, release or otherwise terminate its Liens on such Collateral (and/or, in the case of a Disposition consisting of the sale
or disposition of all of the equity interests of any Guarantor, release such Guarantor from its obligations under the relevant Documents) (it being understood that the Second Lien Agent shall still, subject to the terms of this Agreement, have a
security interest with respect to the proceeds of such Collateral) (b) deliver such Release Documents and take such further actions as the First Lien Agent may reasonably require in connection therewith; provided that, (i) the First
Lien Agent’s Lien and security interest on the Collateral subject to such Release Event (and, in the case of a sale of all of the equity interests of a Guarantor, any guaranty or other obligations of such Guarantor under the First Lien
Documents) are concurrently released, terminated and discharged and the First Lien Agent shall have provided to the relevant Obligor or Obligors comparable Release Documents, (ii) subject to the terms of this Agreement, such release by the
Second Lien Creditors shall not extend to or otherwise affect any of the rights of the Second Lien Creditors to the proceeds from any such Disposition of Collateral, (iii) the First Lien Creditors shall promptly apply such proceeds to pay the
First Lien Obligations until the same have been Paid in Full, and (iv) after such application, any excess proceeds from such Disposition shall be applied to the Second Lien Obligations (unless otherwise required by law or court order).

  

 13 

 2.7 Power of Attorney. Until the First Lien Termination Date, the Second Lien Agent,
on behalf of each Second Lien Creditor, hereby irrevocably constitutes and appoints the First Lien Agent and any officer of the First Lien Agent, 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 the Second Lien Agent and in the name of the Second Lien Agent or in the First Lien Agent’s own name, from time to time in the First Lien Agent’s discretion, for the purpose of carrying out the terms
of Sections 2.5 and 2.6 hereof, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of such Sections, including any Release
Documents, and, in addition, to take any and all other appropriate and commercially reasonable action for the purpose of carrying out the terms of such Sections, such power of attorney being coupled with an interest and irrevocable until the First
Lien Termination Date. The Second Lien Agent hereby ratifies all that said attorneys shall lawfully do or cause to be done pursuant to the power of attorney granted in this Section 2.7. No Person to whom this power of attorney is
presented, as authority for the First Lien Agent to take any action or actions contemplated hereby, shall be required to inquire into or seek confirmation from any Second Lien Creditor as to the authority of the First Lien Agent to take any action
described herein, or as to the existence of or fulfillment of any condition to this power of attorney, which is intended to grant to the First Lien Agent the authority to take and perform the actions contemplated herein. The Second Lien Agent
irrevocably waives any right to commence any suit or action, in law or equity, against any Person which acts in good faith in reliance upon or acknowledges the authority granted under this power of attorney. 

2.8 Waiver. Each of the First Lien Agent, on behalf of each of the First Lien Creditors, and the Second Lien Agent, on behalf of
each of the Second Lien Creditors, (a) waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations under the Documents and notice of or proof of reliance by the Secured Creditors upon this Agreement and
protest, demand for payment or notice except to the extent otherwise specified herein and (b) acknowledges and agrees that the other Secured Creditors have relied upon the Lien priority and other provisions hereof in entering into the Documents
and in making funds available to the Borrowers thereunder. 
 2.9 Notice of Interest In Collateral. This Agreement is
intended, in part, to constitute an authenticated notification of a claim by each Secured Creditor to the other Secured Creditors of an interest in the Collateral in accordance with the provisions of Sections 9-611 and 9-621 of the UCC. 

2.10 Permitted Second Lien Dispositions. If, after the expiration of the Standstill Period and subject to Section 3.1
of this Agreement, the Second Lien Agent seeks to consummate any Permitted Second Lien Disposition in connection with any Enforcement Action that is permitted hereunder, the Second Lien Agent shall provide notice to the First Lien Agent of its
election to consummate such a Permitted Second Lien Disposition, which will specify the principal proposed terms of the sale, identity of the expected purchasers (if known) and the type and amount of consideration expected to be received in
connection therewith (a “Second Lien Disposition Notice”). In the event of any such Permitted Second Lien Disposition, the First Lien Agent and the First Lien Lenders shall (i) upon the request of the Second Lien Agent with
respect to the Collateral subject to any Permitted Second Lien Disposition, and concurrent with such Permitted Second Lien Disposition, release or otherwise terminate its Liens on such 

 

 14 

 
Collateral (and/or in the case of a Permitted Second Lien Disposition consisting of the sale or disposition of all of the equity interests of any Guarantor, release such Guarantor from its
obligations under the relevant Documents) (it being understood that the First Lien Creditors shall still, but subject to this Agreement, have a security interest with respect to the proceeds of such Collateral) and (ii) deliver such Release
Documents and take such further actions as the Second Lien Agent may reasonably require in connection therewith; provided, however, that the Second Lien Agent’s Lien and security interest on the Collateral subject to such
Permitted Second Lien Disposition (and/or in the case of a sale of all of the equity interests of a Guarantor, any guaranty or other obligations of such Guarantor under the Second Lien Documents) are concurrently released, terminated and the Second
Lien Agent shall have provided to the relevant Obligor or Obligors comparable Release Documents and, subject to and in accordance with Section 2.4 hereof, the Second Lien Agent shall cause to be paid and/or delivered directly to the
First Lien Agent all proceeds of any Permitted Second Lien Disposition for application in accordance with Section 2.4 hereof. 

2.11 New Liens. So long as the First Lien Obligations have not been Paid in Full, the parties hereto agree that no additional
Liens shall be granted or permitted on any asset of the US Borrower or any other Obligor to secure any Obligation unless, subject to the terms of this Agreement, immediately after giving effect to such grant or concurrently therewith, a Lien shall
be granted on such asset to secure all of the Obligations (subject to the terms and conditions of this Agreement). To the extent that the foregoing provisions are not complied with for any reason, without limiting any other rights and remedies
available to the First Lien Agent, the First Lien Creditors, the Second Lien Agent, or the Second Lien Creditors, the parties hereto agree that any amounts received by or distributed to any of them pursuant to or as a result of Liens granted in
contravention of this Section 2.11 shall be subject to the terms of this Agreement. Notwithstanding the foregoing, to the extent that the pledge of any capital stock or other securities of any subsidiary of Thermon Holding Corp. results
in Thermon Holding Corp. being required to file separate financial statements of such subsidiary with the Securities Exchange Commission (but only to the extent Thermon Holding Corp. is subject to such requirement and only for so long as such
requirement is in existence), a Lien may be granted on such capital stock or other securities to secure the First Lien Obligations regardless of whether or not a Lien is granted thereon to secure the Second Lien Obligations. 

2.12 Similar Liens and Agreements. (a) The parties hereto acknowledge and agree that (subject to the preceding
Section 2.11) it is their intention that the Collateral securing the First Lien US Obligations and the Collateral securing the Second Lien Obligations be identical. In furtherance of the foregoing, and subject to the preceding
Section 2.11, the parties hereto agree: 
 (i) to cooperate in good faith in order to determine, upon any request by
the First Lien Agent or the Second Lien Agent, the specific assets included in the Collateral securing their respective Obligations, the steps taken to perfect the Liens thereon and the identity of the respective parties obligated under any
Document; 
 (ii) that the documents, agreements and instruments creating or evidencing the Liens of such parties in the
Collateral are (and shall be) in all material respects similar, other than with respect to the relative priority of the Liens created or evidenced thereunder; and 

 

 15 

 (iii) any Lien on any Collateral obtained by any Secured Creditor in respect of any judgment
obtained in respect of any Obligations shall be subject in all respects to the terms of this Agreement. 
 (b) Notwithstanding
anything herein to the contrary no Lien shall be granted on any assets or properties of the Canadian Borrower or any of its Subsidiaries (other than a Subsidiary incorporated, organized or otherwise formed under the laws of the United States, any
state thereof or the District of Columbia) to secure the Second Lien Obligations. As between the First Lien Canadian Agent and other First Lien Canadian Lenders, on the one hand, and the Second Lien Creditors on the other hand, First Lien Canadian
Agent and other First Lien Canadian Creditors shall have sole and exclusive right to obtain a Lien on the assets and properties of Canadian Borrower and such Subsidiaries and to manage, perform and enforce the terms of the First Lien Documents with
respect thereto, with no duty or responsibility to account to any Second Lien Creditor, including with respect to any proceeds thereof. 
  

	Section 3.	Enforcement of Security. 

3.1 Management of Collateral. Subject to the other terms and conditions of this Agreement, the First Lien Creditors shall have the
exclusive right to manage, perform and enforce the terms of the First Lien Documents with respect to the Collateral, to exercise and enforce all privileges and rights thereunder according to their sole discretion and the exercise of their sole
business judgment, including the exclusive right to take or retake control or possession of the Collateral and to hold, prepare for sale, process, Dispose of, or liquidate the Collateral and to incur expenses in connection with such Disposition and
to exercise all the rights and remedies of a secured lender under the UCC of any applicable jurisdiction against the Collateral. In conducting any public or private sale under the UCC of the Collateral, the First Lien Agent shall give the Second
Lien Agent such notice (a “UCC Notice”) of such sale as may be required by the applicable UCC; provided, however, that 10 days’ prior written notice shall be deemed to be commercially reasonable notice. Except as
specifically provided in this Section 3.1 or 3.3 below, notwithstanding any rights or remedies available to a Second Lien Creditor under any of the Second Lien Documents, applicable law or otherwise, no Second Lien Creditor shall take
any Enforcement Action; provided that, subject at all times to the provisions of Section 2, upon the expiration of the applicable Standstill Period, the Second Lien Creditors may take any Enforcement Action (provided that
they give the First Lien Agent at least 5 Business Days written notice prior to taking such Enforcement Action, which notice may be given during the pendency of the applicable Standstill Period) against the Collateral; provided,
however, that notwithstanding the expiration of the Standstill Period or anything herein to the contrary, in no event shall any Second Lien Creditor exercise or continue to exercise any Enforcement Action against the Collateral if the First
Lien Agent or any other First Lien Creditor shall have commenced and is diligently pursuing an Enforcement Action with respect to a material portion of the Collateral (including, without limitation, any of the following (if undertaken and pursued to
consummate a Disposition of such Collateral within a commercially reasonable time): the solicitation of bids from third parties to conduct the liquidation of all or any material portion of the Collateral, the engagement or retention of sales
brokers, marketing agents, investment bankers, accountants, auctioneers or other third parties for the purpose of valuing, marketing, promoting or selling all or any material portion of the Collateral, the notification of account debtors to make
payments to the First Lien Agent or its agents, the initiation of any action to take 
  

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possession of all or any material portion of the Collateral or the commencement of any legal proceedings or actions against or with respect to the foreclosure and sale of all or any material
portion of the Collateral), or diligently attempting in good faith to vacate any stay prohibiting an Enforcement Action with respect to all or any material portion of the Collateral or diligently attempting in good faith to vacate any stay
prohibiting an Enforcement Action; provided, further, that subject to the other provisions of this Agreement, a Second Lien Creditor may consummate a Permitted Second Lien Disposition which became binding on all relevant parties as a
result of an Enforcement Action taken by any Second Lien Creditor after expiration of the Standstill Period and during a period in which the First Lien Agent or any First Lien Creditor had not commenced or been diligently pursuing an Enforcement
Action as contemplated above. 
 3.2 Notices of Default. Each Agent shall give to the other Agent concurrently with the
giving thereof to any Obligor (a) a copy of any written notice by any Secured Creditor of an Event of Default under any of its Documents or a written notice of demand for payment from any Obligor and (b) a copy of any written notice sent
by such Secured Creditor to any Obligor stating such Secured Creditor’s intention to exercise any material Enforcement Action against the Collateral or such Obligor, including written notice pertaining to any foreclosure on all or any material
part of the Collateral or other judicial or non-judicial remedy in respect thereof, and any legal process served or filed in connection therewith; provided that the failure of any Agent to give such required notice shall not result in any
liability to such Agent or affect the enforceability of any provision of this Agreement, including the relative priorities of the Liens of the Secured Creditors as provided herein, and shall not affect the validity or effectiveness of any such
notice as against any Obligor; provided, further, that the foregoing shall not in any way impair any claims that any Secured Creditor may have against any other Secured Creditor as a result of any failure of any Agent to provide a UCC
Notice in accordance with the provisions of this Agreement and applicable law (including without limitation any liability that any Secured Creditor may have to any other Secured Creditor as a result of any such failure). Each Agent will provide such
information as it may have to the other Agent as the other may from time to time reasonably request concerning the status of the exercise of any Enforcement Action and each Agent shall be available on a reasonable basis during normal business hours
to review with the other Agent alternatives available in exercising such rights, including, but not limited to, advising each other of any offers which may be made from time to time by prospective purchasers of the Collateral; provided that
(i) the failure of any party to do any of the foregoing shall not affect the relative priorities of the Agents’ respective Liens as provided herein or the validity or effectiveness of any notices or demands as against the US Borrower or
any other Obligor, (ii) in no event will the First Lien Agent or any First Lien Creditor have any obligation to obtain the consent of any Second Lien Creditor with respect to any actions taken or contemplated to be taken (or not taken) with
respect to any Enforcement Action and (iii) in no event will the Second Lien Agent or any Second Lien Creditor have any obligation to obtain the consent of any First Lien Creditor with respect to any actions taken or contemplated to be taken
(or not taken) with respect to any Enforcement Action to the extent such Enforcement Action is permitted to be taken by the Second Lien Agent or the other Second Lien Creditors hereunder. Each Obligor, by its acknowledgment hereto, hereby consents
and agrees to each Secured Creditor providing any such information to the other Secured Creditors and to such actions by the Secured Creditors and waives any rights or claims against any Secured Creditors arising as a result of such information or
actions. 
  

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 3.3 Permitted Actions. Section 3.1 shall not be construed to limit or
impair in any way the right of: (a) any Secured Creditor to bid for or purchase Collateral at any private or judicial foreclosure upon such Collateral initiated by any Secured Creditor, (b) any Secured Creditor to join (but not control)
any foreclosure or other judicial lien enforcement proceeding with respect to the Collateral initiated by another Secured Creditor for the sole purpose of protecting such Secured Creditor’s Lien on the Collateral, so long as it does not delay
or interfere with the exercise by such other Secured Creditor of its rights under this Agreement, the Documents and under applicable law and (c) the Second Lien Creditors to receive any remaining proceeds of Collateral after the First Lien
Obligations have been Paid in Full. Any proceeds of Collateral received in connection with any such Enforcement Action shall be applied in accordance with Section 2.4 of this Agreement. 

3.4 Collateral In Possession. 

(a) In the event that the First Lien Agent or any other First Lien Creditor takes possession of or has “control” (as such term
is used in the UCC as in effect in each applicable jurisdiction) over any Collateral for purposes of perfecting its Lien therein, the First Lien Agent and each such other First Lien Creditor shall hold such Collateral as representative for and on
behalf of the Secured Creditors, including the Second Lien Creditors, solely for purposes of perfection of its Lien under the UCC; provided that neither the First Lien Agent nor any other First Lien Creditor shall have any duty or liability
to protect or preserve any rights pertaining to any of the Collateral for the Second Lien Creditors. Promptly following the First Lien Termination Date, the First Lien Agent and other First Lien Creditors (other than a First Lien Creditor solely in
its capacity as a depository bank or similar capacity with respect to bank and similar accounts) shall deliver the remainder of the Collateral (or any proceeds thereof), if any, in its possession to the designee of the Second Lien Agent together
with any necessary endorsements (except as may otherwise be required by applicable law or court order). 
 (b) In the event that
any Second Lien Creditor takes possession of or has “control” (as such term is used in the UCC as in effect in each applicable jurisdiction) over any Collateral for purposes of perfecting its Lien therein, such Second Lien Creditor shall
hold such Collateral as representative for and on behalf of the Secured Creditors, including the First Lien Creditors, solely for purposes of perfection of its Lien under the UCC; provided that such Second Lien Creditor shall not have any
duty or liability to protect or preserve any rights pertaining to any of the Collateral for the First Lien Creditors. 
 (c) It
is understood and agreed that this Section 3.4 is intended solely to assure continuous perfection of the Liens granted under the applicable Documents, and nothing in this Section 3.4 shall be deemed or construed as altering
the priorities or obligations set forth elsewhere in this Agreement. The duties of each party under this Section 3.4 shall be mechanical and administrative in nature, and no party shall have, or be deemed to have, by reason of this
Agreement or otherwise a fiduciary relationship in respect of the other party. 
 3.5 Waiver of Marshalling and Similar
Rights. Each Secured Creditor, to the fullest extent permitted by applicable law, waives as to each other Secured Creditor any requirement regarding, and agrees not to demand, request, plead or otherwise claim the benefit of, any marshalling,
appraisement, valuation or other similar right that may otherwise be available under applicable law. 
  

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 3.6 Insurance and Condemnation Awards. So long as the First Lien Termination Date has
not occurred, the First Lien Agent shall have the exclusive right, subject to the rights of the Obligors under the First Lien Documents, to settle and adjust claims in respect of Collateral under policies of insurance and to approve any award
granted in any condemnation or similar proceeding, or any deed in lieu of condemnation, in respect of the Collateral. After the occurrence of the First Lien Termination Date, the Second Lien Agent shall have the exclusive right, subject to the
rights of the Obligors under the Second Lien Documents, to settle and adjust claims in respect of Collateral under policies of insurance and to approve any award granted in condemnation or similar proceeding, or any deed in lieu of condemnation, in
respect of the Collateral. 
  

	Section 4.	Covenants 

 4.1
Amendment of First Lien Documents. The First Lien Creditors may at any time and from time to time and without consent of or notice to any Second Lien Creditor, without incurring any liability to any Second Lien Creditor and without impairing
or releasing any rights or obligations hereunder or otherwise, amend, restate, supplement, modify, substitute, renew or replace any or all of the First Lien Documents; provided, however, that without the consent of the Requisite Second
Lien Creditors, the First Lien Creditors shall not amend, restate, supplement, modify substitute, renew or replace any or all of the First Lien Documents to (a) increase the principal amount (excluding, for the avoidance of doubt, Hedging
Obligations) of the First Lien Obligations in excess of the amounts computed pursuant to clause (a) of the definition of Maximum First Lien Principal Amount (other than through the capitalization of interest, fees and expenses), (b) modify
or add any covenant or event of default under the First Lien Documents which directly restricts one or more Obligors from making payments under the Second Lien Documents which would otherwise be permitted under the First Lien Documents as in effect
on the date hereof or (c) would directly or indirectly result in an increase in the interest rates in respect of the First Lien Obligations (excluding, without limitation, fluctuations in underlying rate indices and imposition of a default rate
of 2% per annum) by more than 3.0% per annum above the rates that are in effect on the date hereof. 
 4.2
Amendments to Second Lien Documents. Until the First Lien Termination Date has occurred, and notwithstanding anything to the contrary contained in the Second Lien Documents, the Second Lien Creditors shall not, without the prior written
consent of the First Lien Agent, agree to any amendment, restatement, modification, supplement, substitution, renewal or replacement of or to any or all of the Second Lien Documents that (a) would directly or indirectly result in an increase in
the interest rates in respect of the Second Lien Obligations (excluding, without limitation, fluctuations in underlying rate indices and imposition of a default rate of 2% per annum) by more than 3.0% per annum above the rates that are in
effect on the date hereof, (b) shorten the final maturity or weighted average life to maturity of the Second Lien Obligations or require that any payment on the Second Lien Obligations be made earlier than the date originally scheduled for such
payment, or (c) increase the principal amount of the Second Lien Obligations in excess of the amounts computed pursuant to clauses (a) and (b) of the definition of Maximum Secured Lien Principal Amount (other than through the
capitalization of interest, fees and expenses). 
  

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 4.3 Effect of Refinancing. 

(a) If the Payment in Full of the First Lien Obligations is being effected through a Refinancing; provided that (i) the First
Lien Agent gives a notice of such Refinancing to the Second Lien Agent at least 5 Business Days prior to such Refinancing and (ii) the credit agreement and the other documents evidencing such new First Lien Obligations (the “New First
Lien Documents”) do not effect an amendment, supplement or other modification of the terms of the First Lien Obligations in a manner that is prohibited by Section 4.1, then (A) such Payment in Full of First Lien Obligations
shall be deemed not to have occurred for all purposes of this Agreement, (B) the indebtedness under such Refinancing and all other obligations under the credit documents evidencing such indebtedness (the “New First Lien
Obligations”) shall be treated as First Lien Obligations for all purposes of this Agreement, (C) the New First Lien Documents shall be treated as the First Lien Documents and (D) the agent under the New First Lien Documents (the
“New First Lien Agent”) shall be deemed to be the “First Lien Agent” for all purposes of this Agreement. Upon receipt of a notice of Refinancing under the preceding sentence, which notice shall include the identity of the
New First Lien Agent, the Second Lien Agent shall promptly enter into such documents and agreements (including amendments or supplements to this Agreement) as the New First Lien Agent may reasonably request in order to provide to the New First Lien
Agent the rights and powers set forth herein and on the terms and conditions set forth herein. 
 (b) If the Payment in Full of
the Second Lien Obligations is being effected through a Refinancing; provided that (i) the US Borrower or the Second Lien Agent (or the New Second Lien Agent) gives a prior written notice of such Refinancing to the First Lien Agent prior
to such Refinancing and (ii) the credit agreement and the other documents evidencing such New Second Lien Obligations (the “New Second Lien Documents”) do not effect an amendment, supplement or other modification of the terms
of the Second Lien Obligations in a manner that is prohibited by Section 4.2, then (A) such Payment in Full of Second Lien Obligations shall be deemed not to have occurred for all purposes of this Agreement, (B) the
indebtedness under such Refinancing and all other obligations under the credit documents evidencing such indebtedness (the “New Second Lien Obligations”) shall be treated as Second Lien Obligations for all purposes of this
Agreement, (C) the New Second Lien Documents shall be treated as the Second Lien Documents and (D) the agent under the New Second Lien Documents (the “New Second Lien Agent”) shall be deemed to be the Second Lien Agent for
all purposes of this Agreement. Upon receipt of a notice of Refinancing under the preceding sentence, which notice shall include the identity of the New Second Lien Agent, the First Lien Agent shall promptly enter into such documents and agreements
(including amendments or supplements to this Agreement) as the New Second Lien Agent may reasonably request in order to provide to the New Second Lien Agent the rights and powers set forth herein. 

(c) By their acknowledgement hereto, the Obligors agree to cause the agreement, document or instrument pursuant to which any New First
Lien Agent or any New Second Lien Agent is appointed to provide that the New First Lien Agent or New Second Lien Agent, as applicable, agrees to be bound by the terms of this Agreement. 

 

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	Section 5.	Second Lien Creditors Purchase Option. 

5.1 Purchase Notice. Upon the occurrence of a Purchase Triggering Event, the Second Lien Creditors shall have the option, but not
the obligation, to purchase all, but not less than all, of the First Lien Obligations owing to the First Lien Creditors from the First Lien Creditors (including, for the avoidance of doubt, loans under the Canadian Revolving Loan Commitment), and
assume all, but not less than all, of the then (if any) existing funding commitments under the First Lien Documents (including, for the avoidance of doubt, the Canadian Revolving Loan Commitment) which, if funded, would constitute First Lien
Obligations, by giving a written notice (the “Purchase Notice”) to the First Lien Agent no later than the 10th Business Day after receipt by the Second Lien Agent of a written notice from First Lien Agent of the occurrence of a
Purchase Triggering Event (an “Agent’s Notice”). A Purchase Notice once delivered shall be irrevocable. 
 5.2
Purchase Option Closing. On the date specified by the Second Lien Agent in the Purchase Notice (which shall not be less than 3 Business Days nor more than 10 Business Days, after the receipt by the First Lien Agent of the Purchase Notice),
the First Lien Creditors shall sell to the Second Lien Creditors, and the Second Lien Creditors shall purchase from the First Lien Creditors, all, but not less than all, of the First Lien Obligations, and the First Lien Lenders shall assign to the
purchasing Second Lien Lenders, and the purchasing Second Lien Lenders shall assume from the First Lien Lenders all, but not less than all, of the then (if any) existing funding commitments under the First Lien Documents which, if funded, would
constitute First Lien Obligations. 
 5.3 Purchase Price. Such purchase and sale shall be made by execution and delivery
by the applicable Secured Creditors of an Assignment Agreement in the form attached to the First Lien Loan Agreement. Upon the date of such purchase and sale, the Second Lien Creditors purchasing the First Lien Obligations shall (a) pay to the
First Lien Agent for the benefit of the First Lien Creditors as the purchase price therefor the sum of the full amount of all the First Lien Obligations then outstanding and unpaid (including principal, interest, fees, indemnities and expenses,
including reasonable attorneys’ fees and legal expenses and Hedging Obligations), (b) furnish cash collateral to the First Lien Agent with respect to the outstanding First Lien Letter of Credit Obligations in such amounts as are required
under the First Lien Loan Agreement as in effect on the date hereof and (c) agree to reimburse the First Lien Creditors for any loss, cost, damage or expense (including reasonable attorneys’ fees and legal expenses) in connection with any
checks or other payments provisionally credited to the First Lien Obligations, and/or as to which the First Lien Creditors have not yet received final payment. Such purchase price and cash collateral shall be remitted by wire transfer of immediately
available funds to such bank account of the First Lien Agent in New York, New York, as the First Lien Agent may designate in writing to the Second Lien Creditors for such purpose. Interest shall be calculated to but excluding the Business Day on
which such purchase and sale shall occur if the amounts so paid by the Second Lien Creditors to the bank account designated by the First Lien Agent are received in such bank account prior to 1:00 p.m., New York City time and interest shall be
calculated to and including such Business Day if the amounts so paid by the Second Lien Creditors to the bank account designated by the First Lien Agent are received in such bank account later than 1:00 p.m., New York City time. The First Lien
Agent may apply any or all of such cash collateral to the payment of any reimbursement or similar obligations in respect of First Lien 

 

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Letter of Credit Obligations. Upon payment in full of such obligations and termination of all First Lien Letter of Credit Obligations, the First Lien Agent shall deliver any remaining cash
collateral to the Second Lien Creditors purchasing the First Lien Obligations. 
 5.4 Nature of Sale. Such purchase and
sale shall be expressly made without representation or warranty of any kind by the First Lien Creditors as to the First Lien Obligations or otherwise and without recourse to the First Lien Creditors, except for representations and warranties as to
the following: (a) the amount of the First Lien Obligations being purchased (including as to the principal of and accrued and unpaid interest on such First Lien Obligations, fees and expenses thereof), (b) that the First Lien Creditors own
the First Lien Obligations free and clear of any Liens and (c) each First Lien Creditor has the full right and power to assign its First Lien Obligations and such assignment has been duly authorized by all necessary corporate action by such
First Lien Creditor. 
 5.5 Notice of Election to Purchase. As soon as practicable after receipt of the Agent’s
Notice, but in no event more than 10 Business Days after the Second Lien Agent’s receipt of the Agent’s Notice, the Second Lien Creditors (if they elect to do so) shall send to the First Lien Agent the Purchase Notice. The First Lien
Creditors shall not complete any Enforcement Action (other than the exercise of control over, or to sweep funds held in, any Obligor’s deposit or securities accounts), as long as the purchase and sale of the First Lien Obligations provided for
in this Section 5 shall have closed within 10 Business Days of the First Lien Agent’s receipt of the Purchase Notice and the First Lien Creditors shall have received payment in full of the First Lien Obligations as provided for in
Section 5.3 within such 10 Business Day period. 
  

	Section 6.	Bankruptcy Matters. 

6.1 Bankruptcy. This Agreement shall be applicable both before and after the filing of any petition by or against any Obligor under
the Bankruptcy Code or any other Insolvency Proceeding and all converted or succeeding cases in respect thereof, and all references herein to any Obligor shall be deemed to apply to the trustee for such Obligor and such Obligor as a
debtor-in-possession. The relative rights of the First Lien Creditors and the Second Lien Creditors in respect of any Collateral or proceeds thereof shall continue after the filing of such petition on the same basis as prior to the date of such
filing, subject to any court order approving the financing of, or use of cash collateral by, any Obligor. This Agreement shall constitute a “subordination agreement” for the purposes of Section 510(a) of the Bankruptcy Code and shall
be enforceable in any Insolvency Proceeding in accordance with its terms. 
 6.2 Post Petition Financing; Adequate
Protection. 
 (a) If any Obligor or Obligors shall become subject to Insolvency Proceedings and such Obligor or Obligors as
debtor(s)-in-possession (or a trustee appointed on behalf of such Obligor or Obligors) shall move for either approval of financing (“DIP Financing”) to be provided by one or more of the First Lien Creditors (or to be provided by any
other person or group of persons with the consent of the First Lien Agent) under Section 364 of the Bankruptcy Code or the use of cash collateral with the consent of the First Lien Creditors under Section 363 of the Bankruptcy Code, then
subject to Section 6.2(b), the Second Lien Creditors agree as follows: (i) adequate notice to the Second Lien Creditors for such DIP Financing or use of cash 

 

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collateral shall be deemed to have been given to the Second Lien Creditors if notice is given, in accordance with the Federal Rules of Bankruptcy Procedure, to the Second Lien Agent at least one
(1) Business Day in advance of the hearing to approve such DIP Financing or use of cash collateral on an interim basis, and to Second Lien Agent at least fifteen (15) days in advance of the hearing to approve such DIP Financing or use of
cash collateral on a final basis, (ii) such DIP Financing (and any First Lien Obligations which arose prior to the Insolvency Proceeding) may be secured by Liens on all or a part of the assets of the Obligors which shall be superior in priority
to the Liens on the assets of the Obligors held by any other Person, (iii) so long as (I) the aggregate principal amount of loans and letter of credit accommodations outstanding under any such DIP Financing, together with the aggregate
principal amount of the pre-petition loans and letter of credit accommodations then outstanding under the First Lien Loan Agreement, does not exceed the Maximum First Lien Principal Amount (but, for this purpose, determined without regard to clause
(b) of the definition thereof), (II) such cash collateral or DIP Financing is on commercially reasonable terms, (III) the Second Lien Agent and the Second Lien Creditors retain the right to object to any ancillary agreements or arrangements
regarding the use of cash collateral or the DIP Financing (other than relief available under Sections 363 or 364 of the Bankruptcy Code to which the Second Lien Agent and the other Second Lien Creditors have agreed to not object as set forth in this
Section 6.2), to the extent that such agreements or arrangements are in the judgment of the Second Lien Agent or the Requisite Second Lien Creditors materially adverse to their interests, (IV) the DIP Financing does not compel any
Obligor to seek confirmation of a specific plan of reorganization for which all or substantially all of the material terms are set forth in the DIP Financing documentation or a related document, and (V) the indebtedness under the DIP Financing
(other than such indebtedness constituting First Lien Obligations) is not secured by any Lien or any asset or property of any Obligor on a basis that is senior to the Liens securing the Second Lien Obligations unless such Liens are senior to the
Liens securing the First Lien Obligations, the Second Lien Creditors will not request or accept adequate protection or any other relief in connection with the use of, or object to, such cash collateral or such DIP Financing except as set forth in
Section 6.2(b) below, (iv) the Second Lien Creditors will subordinate (and will be deemed hereunder to have subordinated) the Liens securing the Second Lien Obligations (A) to the Liens securing such DIP Financing (the
“DIP Liens”) on the same terms (but on a basis junior to the Liens of the First Lien Creditors) as the Liens of the First Lien Creditors are subordinated thereto (and such subordination will not alter in any manner the terms of this
Agreement), (B) to any “replacement Liens” granted to the First Lien Creditors as adequate protection of their interests in the Collateral (the “Senior Adequate Protection Liens”) and (C) to any reasonable
“carve-out” agreed to by the First Lien Agent or the other First Lien Creditors and (v) subject to Section 6.2(b) below and the provisions above in this Section 6.2(a), the Second Lien Creditors shall not
contest or oppose in any manner any adequate protection provided to the First Lien Creditors as adequate protection of their interests in the Collateral, any DIP Financing or any cash collateral use and shall be deemed to have waived any objections
to such adequate protection, DIP Financing or cash collateral use, including, without limitation, any objection alleging Obligors’ failure to provide “adequate protection” of the interests of the Second Lien Creditors in the
Collateral. 
 (b) Adequate Protection. Notwithstanding the foregoing provisions in this Section 6.2,
in any Insolvency Proceeding, if the First Lien Creditors (or any subset thereof) are granted adequate protection in the form of Senior Adequate Protection Liens, the Second Lien Creditors may seek (and the First Lien Creditors may not oppose)
adequate protection of their 
  

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interests in the Collateral in the form of (i) a replacement Lien on the additional collateral subject to the Senior Adequate Protection Liens (the “Junior Adequate Protection
Liens”), which Junior Adequate Protection Liens, if granted, will be subordinate to all Liens securing the First Lien Obligations (including, without limitation, the Senior Adequate Protection Liens and any reasonable “carve-out”
agreed to by the First Lien Agent or the other First Lien Creditors) and any Liens securing the DIP Financing on the same basis as the other Liens securing the Second Lien Obligations are so subordinated under this Agreement (provided that any
failure of the Second Lien Creditors to obtain such Junior Adequate Protection Liens shall not impair or otherwise affect the agreements, undertakings and consents of the Second Lien Creditors pursuant to Section 6.2(a)) and
(ii) superpriority claims under Section 507(b) of the Bankruptcy Code junior in all respects to the superpriority claims granted under Section 507(b) of the Bankruptcy Code to the First Lien Creditors on account of any of the First
Lien Obligations or granted under Section 364(c)(1) of the Bankruptcy Code with respect to the DIP Financing or use of cash collateral as provided above; provided that the inability of the Second Lien Creditors to receive a Lien on
actions under Chapter 5 of the Bankruptcy Code or proceeds thereof shall not affect the agreements and waivers set forth in this Section 6.2. To the extent that the First Lien Creditors are receiving post-petition interest and/or
adequate protection payments in any Insolvency Proceeding, the Second Lien Creditors may seek comparable post-petition interest and/or adequate protection payments in any such Insolvency Proceeding without any requirement to turn the same over to
the First Lien Creditors, and the First Lien Creditors may oppose motions for post petition interest and/or adequate protection payments (but, if granted, may not oppose such payments). 

6.3 Sale of Collateral; Waivers. The Second Lien Creditors agree that they will not object to or oppose a Disposition of any
Collateral securing the First Lien Obligations (or any portion thereof) free and clear of Liens or other claims under Section 363 of the Bankruptcy Code, if the First Lien Creditors have consented to such or Disposition of such assets, as long
as all proceeds of such Disposition received by the First Lien Creditors on account of the First Lien Obligations will be applied in reduction of the First Lien Obligations and, subject to the above, the Liens of the Second Lien Creditors attach to
any proceeds of such Disposition; provided that the Second Lien Agent, on behalf of itself and the other Second Lien Creditors, may raise any objections to any such Disposition of such Collateral that could be raised by any creditor of the
Obligors whose claims were not secured by any Liens on such Collateral, provided such objections are not inconsistent with any other term or provision of this Agreement and are not based on the status of the Second Lien Agent or the Second Lien
Creditors as secured creditors (without limiting the foregoing, neither the Second Lien Agent nor the Second Lien Creditors may raise any objections based on rights afforded by Sections 363(e) and (f) of the Bankruptcy Code to secured creditors
(or by any comparable provision of any Bankruptcy Law)) with respect to the Liens granted to the Second Lien Agent. The Second Lien Agent and the Second Lien Creditors waive any claim they may now or hereafter have arising out of the First
Lien Creditors’ election in any proceeding instituted under Chapter 11 of the Bankruptcy Code of the application of Section 1111(b)(2) of the Bankruptcy Code. The Second Lien Agent and the Second Lien Creditors agree not to initiate or
prosecute or join with any other Person to initiate or prosecute any claim, action or other proceeding (i) challenging the enforceability of the First Lien Creditors’ claims as fully secured claims with respect to all or part of the First
Lien Obligations or for allowance of any First Lien Obligations (including those consisting of post-petition interest, fees or expenses) or opposing any action by the First Lien Agent or the First Lien

  

 24 

 
Creditors to enforce their rights or remedies arising under the First Lien Documents in a manner which is not prohibited by the terms of this Agreement, (ii) challenging the enforceability,
validity, priority or perfected status of any Liens on assets securing the First Lien Obligations under the First Lien Documents, (iii) asserting any claims which the Obligors may hold with respect to the First Lien Creditors, (iv) seeking
to lift the automatic stay as against the Collateral unless, subject to the provisions of Section 2.4 hereof, their motion for adequate protection permitted to be made pursuant to Section 6.2 has been denied by the bankruptcy
court having jurisdiction over the Insolvency Proceeding, to the extent that such action is opposed by the First Lien Agent or (v) opposing a motion by the First Lien Agent to lift the automatic stay. The First Lien Creditors agree not to
initiate or prosecute or join with any person to initiate or prosecute any claim, action or other proceeding challenging the enforceability, validity, priority or perfected status of any Liens on assets securing the Second Lien Obligations under the
Second Lien Documents. 
 6.4 Invalidated Payments. To the extent that the First Lien Creditors receive payments
on the First Lien Obligations or proceeds of Collateral for application to the First Lien Obligations which are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any
other party under any Bankruptcy Law, common law, equitable cause or otherwise (and whether as a result of any demand, settlement, litigation or otherwise) (each a “First Lien Avoidance”), then to the extent of such payment or
proceeds received, such Obligations, or part thereof, intended to be satisfied by such payment or proceeds shall be revived and continue in full force and effect as if such payments or proceeds had not been received by the First Lien Creditors, and
this Agreement, if theretofore terminated, shall be reinstated in full force and effect as of the date of such First Lien Avoidance, and such prior termination shall not diminish, release, discharge, impair or otherwise affect the Lien priorities
and the relative rights and obligations of the First Lien Creditors and the Second Lien Creditors provided for herein with respect to any event occurring on or after the date of such First Lien Avoidance. The Second Lien Creditors agree that none of
them shall be entitled to benefit from any First Lien Avoidance, whether by preference or otherwise, it being understood and agreed that the benefit of such First Lien Avoidance otherwise allocable to them shall, to the extent resulting from
proceeds of Collateral, instead be allocated and turned over for application in accordance with the priorities set forth in this Agreement.  

6.5 Payments. (a) In the event of any Insolvency Proceeding involving one or more Obligors, all proceeds of Collateral shall be
paid or delivered directly to First Lien Agent (to be held and/or applied by the First Lien Agent in accordance with the terms of the First Lien Documents) until all First Lien Obligations are Paid In Full before any of the same shall be made to one
or more of the Second Lien Creditors on account of any Second Lien Secured Claim, and each Second Lien Creditor irrevocably authorizes, empowers and directs any debtor, debtor in possession, receiver, trustee, liquidator, custodian, conservator or
other Person having authority, to pay or otherwise deliver all such Distributions in respect of any Second Lien Secured Claim to the First Lien Agent until all First Lien Obligations are Paid in Full; provided that the foregoing provision
shall not apply to Distributions made in respect of the Second Lien Secured Claim pursuant to a plan of reorganization under the Bankruptcy Code. 

(b) If, in any Insolvency Proceeding, debt obligations of the reorganized debtor secured by Liens upon any property of the reorganized
debtor are distributed pursuant to a plan 
  

 25 

 
of reorganization or similar dispositive restructuring plan, both on account of First Lien Obligations and on account of Second Lien Obligations, then, to the extent the debt obligations
distributed on account of the First Lien Obligations and on account of the Second Lien Obligations are secured by Liens upon the same property, the provisions of this Agreement will survive the distribution of such debt obligations pursuant to such
plan and will apply with like effect to the Liens securing such debt obligations. 
 6.6 Separate Grants of Security and
Separate Classification. Each Second Lien Creditor acknowledges and agrees that (a) the grants of Liens pursuant to the First Lien Documents and the Second Lien Documents constitute two separate and distinct grants of Liens and
(b) because of their differing rights in the Collateral, the Second Lien Secured Claims are fundamentally different from the First Lien Secured Claims and must be separately classified in any plan of reorganization proposed or adopted in an
Insolvency Proceeding. The Second Lien Creditors shall not seek in any Insolvency Proceeding to have the Second Lien Secured Claims to be treated as part of the same class of claims as the First Lien Secured Claims and shall not oppose any pleading
or motion by the First Lien Creditors for the First Lien Secured Claims and the Second Lien Secured Claims to be treated as separate classes of claims. Notwithstanding the foregoing, if it is held that the Secured Claims of the First Lien Creditors
and the Second Lien Creditors in respect of the Collateral constitute only one secured claim (rather than separate classes of senior and junior secured claims), then the Second Lien Creditors hereby acknowledge and agree that all distributions shall
be made as if there were separate classes of senior and junior secured claims against the Obligors in respect of the Collateral, with the effect being that, to the extent that the aggregate value of the Collateral exceeds the amount of the First
Lien Obligations, the First Lien Creditors shall be entitled to receive, in addition to amounts distributed to them in respect of principal, pre-petition interest and other claims, all amounts owing in respect of post-petition interest, and fees,
costs and charges incurred subsequent to the commencement of the applicable Insolvency Proceeding before any distribution is made in respect of any of the claims held by the Second Lien Creditors. The Second Lien Creditors hereby acknowledge and
agree to turn over to the First Lien Creditors amounts otherwise received or receivable by them to the extent necessary to effectuate the intent of the preceding sentence, even if such turnover has the effect of reducing the claim or recovery of the
Second Lien Creditors. 
 6.7 Rights as Unsecured Creditors. To the extent not inconsistent with the terms of this
Agreement, the Second Lien Agent and the other Second Lien Creditors may exercise rights and remedies as unsecured creditors against any Obligor of the Second Lien Obligations in accordance with the terms of the Second Lien Documents and applicable
law. Nothing in this Agreement shall prohibit the receipt by the Second Lien Agent or any other Second Lien Creditor of the required payments of interest, premium, principal and other amounts on the Second Lien Obligations so long as such receipt is
not the direct or indirect result of the exercise by the Second Lien Agent or any other Second Lien Creditor of rights or remedies as a secured creditor (including set off) or enforcement in contravention of this Agreement of any Lien on the
Collateral held by any of them. 
  

	Section 7.	Miscellaneous. 

7.1 Termination. Subject to Section 5.5, this Agreement shall terminate and be of no further force and effect upon the
first to occur of the Payment in Full of (a) the First Lien Obligations or (b) the Second Lien Obligations (to the extent payment thereof is permitted hereunder). 

 

 26 

 7.2 Successors and Assigns; No Third Party Beneficiaries. 

(a) This Agreement shall be binding upon each Secured Creditor and its respective successors and assigns and shall inure to the benefit
of each Secured Creditor and its respective successors, participants and assigns. No other Person shall have or be entitled to assert rights or benefits hereunder. 

(b) Each Secured Creditor reserves the right to grant participations in, or otherwise sell, assign, transfer or negotiate all or any part
of, or any interest in, their respective Obligations; provided that no Secured Creditor shall be obligated to give any notices to or otherwise in any manner deal directly with any participant in the Obligations and no participant shall be
entitled to any rights or benefits under this Agreement, except through the Secured Creditor with which it is a participant. 

(c) In connection with any participation or other transfer or assignment, a Secured Creditor (i) may, subject to its respective
Documents, disclose to such assignee, participant or other transferee or assignee all documents and information which such Secured Creditor now or hereafter may have relating to any Obligor or the Collateral and (ii) shall disclose to such
participant or other transferee or assignee the existence and terms and conditions of this Agreement. 
 7.3 Notices. All
notices and other communications provided for hereunder shall be in writing and shall be mailed, sent by overnight courier, telecopied or delivered, as follows: 
  

			
	(a)	 	if to the First Lien Agent, to it at the following address:
		
		 	 General Electric Capital Corporation

500 West Monroe Street
 Chicago, Illinois 60661

 Attn: Thermon Account Officer

Facsimile: (312) 441-7211

	
	 with a copy to:

		
		 	 c/o General Electric Capital Corporation

201 Merritt 7
 P.O. Box 5201

Norwalk, Connecticut 06851
 Attention: General
Counsel-Global Sponsor Finance
 Facsimile: (203) 956-4216

 

 27 

			
	 and a copy to:

		
		 	 General Electric Capital Corporation

500 West Monroe Street
 Chicago, Illinois 60661

 Attention: Corporate Counsel – Global Sponsor Finance

Facsimile: (312) 441-7876

		
	 (b)
	 	if to Second Lien Agent, to it at the following address:
		
		 	 601 Travis Street

16TH Floor

 Houston, Texas 77002
 Attention:
Corporate Trust Administration
 Facsimile: (713) 483-6954

or, as to each party, at such other address as shall be designated by such party in a written notice to the other parties complying as to delivery with
the terms of this Section 7.3. All such notices and other communications shall be effective (i) if sent by registered mail, return receipt requested, when received or 3 Business Days after mailing, whichever first occurs,
(ii) if telecopied, when transmitted and a confirmation is received, provided the same is on a Business Day and, if not, on the next Business Day or (iii) if delivered by messenger or overnight courier, upon delivery,
provided the same is on a Business Day and, if not, on the next Business Day. 
 7.4 Counterparts. This Agreement
may be executed by the parties hereto in several counterparts, and each such counterpart shall be deemed to be an original and all of which shall constitute together but one and the same agreement. 

7.5 GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE. THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY,
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH OF THE PARTIES HERETO HEREBY CONSENTS AND AGREES
THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES AMONG THE PARTIES HERETO PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT;
PROVIDED THAT THE PARTIES HERETO ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK, NEW YORK. EACH OF THE PARTIES HERETO EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION
IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS. 

7.6 MUTUAL WAIVER OF JURY TRIAL. THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO

  

 28 

 
RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN THE PARTIES ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN
CONNECTION WITH, THIS AGREEMENT OR THE TRANSACTIONS RELATED THERETO. 
 7.7 Amendments. No amendment or waiver of any
provision of this Agreement, and no consent to any departure by any Person from the terms hereof, shall in any event be effective unless it is in writing and signed by the Second Lien Agent, with the consent of the Requisite Second Lien Creditors
and the First Lien Agent, with the consent of the “Required Lenders” (as defined in the First Lien Loan Agreement). In no event shall the consent of any Obligor be required in connection with any amendment or other modification of this
Agreement. 
 7.8 No Waiver. No failure or delay on the part of any Secured Creditor in exercising any power or right
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right. 

7.9 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 of this Agreement or affecting the validity or enforceability of such provisions in any other jurisdiction. 

7.10 Further Assurances. Each party hereto agrees to cooperate fully with each other party hereto to effectuate the intent and
provisions of this Agreement and, from time to time, to execute and deliver any and all other agreements, documents or instruments, and to take such other actions, as may be reasonably necessary or desirable to effectuate the intent and provisions
of this Agreement. 
 7.11 Headings. The section headings contained in this Agreement are and shall be without meaning or
content whatsoever and are not part of this Agreement. 
 7.12 Lien Priority Provisions. This Agreement and the rights
and benefits hereunder shall inure solely to the benefit of the First Lien Agent, the First Lien Creditors, the Second Lien Agent, and the Second Lien Creditors and their respective successors and permitted assigns and no other Person (including the
Obligors or any trustee, receiver, debtor in possession or bankruptcy estate in a bankruptcy or like proceeding) shall have or be entitled to assert rights or benefits hereunder. Nothing contained in this Agreement is intended to or shall impair the
obligation of any Obligor to pay the Obligations as and when the same shall become due and payable in accordance with their respective terms, or to affect the relative rights of the lenders of any Obligor, other than the First Lien Agent, the First
Lien Creditors, the Second Lien Agent, and the Second Lien Creditors as between themselves. 
 7.13 Credit Analysis. The
Secured Creditors shall each be responsible for keeping themselves informed of (a) the financial condition of the Obligors and all other all endorsers, obligors and/or guarantors of the Obligations and (b) all other circumstances bearing
upon the risk of nonpayment of the Obligations. No Secured Creditor shall have any duty to advise any 
  

 29 

 
other Secured Creditor of information known to it regarding such condition or any such other circumstances. No Secured Creditor assumes any liability to any other Secured Creditor or to any other
Person with respect to: (i) the financial or other condition of Obligors under any instruments of guarantee with respect to the Obligations, (ii) the enforceability, validity, value or collectibility of the Obligations, any Collateral
therefor or any guarantee or security which may have been granted in connection with any of the Obligations or (iii) any Obligor’s title or right to transfer any Collateral or security. 

7.14 Waiver of Claims. To the maximum extent permitted by law, each party hereto waives any claim it might have against any
Secured Creditor with respect to, or arising out of, any action or failure to act or any error of judgment or negligence, mistake or oversight whatsoever on the part of any other party hereto or their respective directors, officers, employees or
agents with respect to any exercise of rights or remedies under the Documents or any transaction relating to the Collateral in accordance with this Agreement; provided that nothing in this Section shall affect the claims of any party hereto arising
out of or relating to a breach of this Agreement. None of the Secured Creditors, 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, except as specifically provided herein, shall be under any obligation to Dispose of any Collateral upon the request of any Obligor or any Secured Creditor or any other Person or to take any other action whatsoever with regard
to the Collateral or any part thereof. 
 7.15 Conflicts. In the event of any conflict between the provisions of this
Agreement and the provisions of the Documents, the provisions of this Agreement shall govern. 
 7.16 Specific
Performance. Each of the First Lien Agent and the Second Lien Agent may demand specific performance of this Agreement and, on behalf of itself and the respective other Secured Creditors, hereby irrevocably waives any defense based on the
adequacy of a remedy at law and any other defense that might be asserted to bar the remedy of specific performance in any action which may be brought by the respective Secured Creditors. 

7.17 Provisions Solely to Define Relative Rights. The provisions of this Agreement are and are intended solely for the purpose of
defining the relative rights of the Secured Creditors. None of the Obligors or any other creditor thereof shall have any rights hereunder, and none of the Obligors may rely on the terms hereof. Nothing in this Agreement is intended to or shall
impair the obligations of Obligors, which are absolute and unconditional, to pay the First Lien Obligations and the Second Lien Obligations as and when the same shall become due and payable in accordance with their terms 

7.18 Subrogation. Subject to the First Lien Termination Date, with respect to the value of any payments or distributions in cash,
property or other assets that the Second Lien Agent or other Second Lien Creditors pay over to the First Lien Agent or any of the other First Lien Creditors under the terms of this Agreement, the Second Lien Agent and the other Second Lien
Collateral shall be subrogated to the rights of the First Lien Agent and such other First Lien Creditors; provided that the Second Lien Agent, on behalf of itself and the Second Lien Creditors, hereby agrees not to assert or enforce any such rights
of subrogation it may acquire as a result of any payment hereunder until the First Lien Termination Date has occurred; provided  

 

 30 

 
that as between the Obligors, on the one hand, and the Second Lien Creditors, on the other hand, any such payment that is paid over to the First Lien Agent pursuant to this Agreement shall be
deemed not to reduce any of the Second Lien Obligations. 
 7.19 Entire Agreement. This Agreement and the Documents
embody the entire agreement of the Obligors, the First Lien Agent, the First Lien Creditors, the Second Lien Agent and the Second Lien Creditors with respect to the subject matter hereof and thereof and supersede all prior agreements and
understandings relating to the subject matter hereof and thereof and any draft agreements, negotiations and/or discussions involving any Obligor and any of the First Lien Agent, the First Lien Creditors, the Second Lien Agent and the Second Lien
Creditors relating to the subject matter hereof. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

 

 31 

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

			
	FIRST LIEN AGENT:
	
	GENERAL ELECTRIC CAPITAL CORPORATION, as First Lien Agent
		
	By:	 	 /s/ Mark Birkett

	Name:	 	Mark Birkett
	Title:	 	Its Duly Authorized Signatory
	
	SECOND LIEN AGENT:
	
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Second Lien Agent
		
	By:	 	 /s/ MARCELLA BURGESS

	Name:	 	MARCELLA BURGESS
	Title:	 	 Vice President

 Each of the undersigned hereby acknowledges and agrees to the foregoing terms and
provisions. 
  

			
	US BORROWER:
	
	THERMON INDUSTRIES, INC., a Texas corporation, as the US Borrower
		
	By:	 	 /s/ Rodney Bingham

	Name:	 	Rodney Bingham
	Title:	 	President

 Each of the undersigned hereby acknowledges and agrees to the foregoing terms and
provisions. 
  

			
	OTHER OBLIGORS:
	
	 THERMON HOLDING CORP.,

a Delaware corporation

		
	By:	 	 /s/ Rodney Bingham

	Name:	 	Rodney Bingham
	Title:	 	President
	
	 THERMON MANUFACTURING COMPANY,

a Texas corporation

		
	By:	 	 /s/ Rodney Bingham

	Name:	 	Rodney Bingham
	Title:	 	President
	
	 THERMON HEAT TRACING SERVICES, INC.,

a Texas corporation

		
	By:	 	 /s/ Rodney Bingham

	Name:	 	Rodney Bingham
	Title:	 	President
	
	 THERMON HEAT TRACING SERVICES-I, INC.,

a Texas corporation

		
	By:	 	 /s/ Rodney Bingham

	Name:	 	Rodney Bingham
	Title:	 	President
	
	 THERMON HEAT TRACING SERVICES II, INC.,

a Louisiana corporation

		
	By:	 	 /s/ Rodney Bingham

	Name:	 	Rodney Bingham
	Title:	 	President

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