Document:

exv10w27

 

Exhibit 10.27

EXECUTION COPY

Form of Third Amended and Restated Guaranty by

Guarantors (as defined therein), Wachovia Bank, N.A. and Lenders (as defined therein)

dated as of December 23, 2002

THIRD AMENDED AND RESTATED GUARANTY

          THIS THIRD AMENDED AND RESTATED GUARANTY (this “Guaranty”) dated as of
December 23, 2002, is made by the undersigned (collectively, the “Guarantors”
and each individually a “Guarantor”), in favor of the Secured Parties and the
Administrative Agent (each as defined below).

W I T N E S S E T H:

          WHEREAS, Hollinger International Publishing Inc. (the “Company”),
Telegraph Group Limited (“ Telegraph”), certain other borrowers, The
Toronto-Dominion Bank (“Toronto-Dominion”), as issuing bank and Toronto
Dominion (Texas), Inc., as administrative agent (in such capacity, together
with any successors in such capacity) entered into that certain Fourth Amended
and Restated Credit Agreement dated as of April 30, 1999 (as amended or
modified and in effect on the Amendment Effective Date, the “Existing Credit
Agreement”), whereunder certain financial institutions agreed to make loans and
to issue letters of credit and bankers’ acceptances (such loans, letters of
credit and bankers’ acceptances outstanding on the Amendment Effective Date,
collectively the “Existing Credit Extensions”); and

          WHEREAS, each of the Guarantors executed and delivered that certain Second
Amended and Restated Guaranty, dated as of April 30, 1999, (as amended or
modified and in effect on the Amendment Effective Date, the “Original
Guaranty”), guarantying the obligations of the Company, Telegraph and the other
borrowers under the Existing Credit Agreement; and

          WHEREAS, the Company desires to refinance the Existing Credit Extensions,
add additional borrowers thereunder and obtain a revolving loan commitment (to
include availability for revolving loans and the issuance of letters of credit)
and term loans; and

          WHEREAS, the Company has requested various financial institutions
(together with their respective successors and assigns, collectively the
“Lenders” and each individually a “Lender”) to amend and restate the Existing
Credit Agreement on the terms and conditions set forth in the Fifth Amended and
Restated Credit Agreement, dated as of even date herewith, among the Company,
Telegraph and First DT Holdings Limited (“FDTH” and, together with the Company
and Telegraph, each a “Borrower” and collectively, the “Borrowers”), the
Lenders, Wachovia Bank, N.A., as administrative agent (in such capacity the
“Administrative Agent”, issuing bank, and security trustee for the Lenders, and
Wachovia Securities, Inc., as sole lead arranger and book runner, Toronto
Dominion (Texas), Inc., as Syndication Agent and General Electric Capital
Corporation, as Documentation Agent (together with all amendments and other
modifications, if any, from time to time made thereto, the “Amended and
Restated Credit Agreement”), to set forth, among other things, the terms and
conditions under which the Lenders thereafter will make credit extensions to
the Borrowers; it being the intention of the Company, the Lenders and the
Administrative Agent that the Amended and Restated Credit Agreement and the
Loan Documents executed in connection therewith shall not effect the novation
of the obligations of

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the Borrowers under the Existing Credit Agreement but be merely a
restatement and, where applicable, an amendment of and substitution for the
terms governing such obligations hereafter; and

          WHEREAS, as a condition precedent to the Amendment Effective Date of the
Amended and Restated Credit Agreement, the Guarantors are required to execute
and deliver this Guaranty; and

          WHEREAS, the parties desire to amend and restate the Original Guaranty to
recognize the addition of new Borrowers, it being the intention of the
Borrowers, the Guarantors, the Lenders and the Administrative Agent that this
Guaranty and the Loan Documents executed in connection herewith shall not
effect a novation of the obligations of the Guarantors under the Original
Guaranty but merely a restatement and, where applicable, an amendment of and
substitution for the terms governing such obligations hereafter; and

          WHEREAS, it is in the best interests of each Guarantor to execute this
Guaranty inasmuch as such Guarantor will derive substantial direct and indirect
benefits from the Loans made from time to time to the Borrowers, and the
Letters of Credit issued from time to time for the account of the Company and
Telegraph pursuant to the Amended and Restated Credit Agreement;

          NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in order to induce the
Lenders to make the Loans, and issue or participate in Letters of Credit
(including the initial Credit Extensions) to the Borrowers pursuant to the
Amended and Restated Credit Agreement, each Guarantor agrees, for the benefit
of the Administrative Agent and the other Secured Parties, as follows:

ARTICLE I.

DEFINITIONS

          SECTION 1.1. Certain Terms. The following terms (whether or not
underscored) when used in this Guaranty, including its preamble and recitals,
shall have the following meanings (such definitions to be equally applicable to
the singular and plural forms thereof):

          Administrative Agent is defined in the Credit Agreement.

          Amended and Restated Credit Agreement is defined in the fourth recital.

          Borrowers is defined in the fourth recital.

          Company is defined in the first recital.

          FDTH is defined in the fourth recital.

          Guaranteed Obligations is defined in Section 2.1 hereof.

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          Guaranteed Obligor means each of the Borrowers, each Guarantor and, [from
and after the date upon which the 1996 Senior Subordinated Notes and the 1997
Senior Subordinated Notes are paid in full or amended in such a manner as to
not prohibit such guaranty,] Hollinger International.

          Guarantor is defined in the preamble.

          Guaranty is defined in the preamble.

          Hedging Agreements means all agreements that are defined to be “Hedging
Agreements” in the Amended and Restated Credit Agreement that are entered into
between any Borrower and a Qualified Hedge Counterparty.

          Hollinger International means Hollinger International Inc., a Delaware
corporation.

          Lender is defined in the fourth recital.

          Loan Documents means those agreements and other documents defined as “Loan
Documents” in the Amended and Restated Credit Agreement and, in addition, all
Hedging Agreements.

          Qualified Hedge Counterparty means Wachovia Bank, N.A., and each other
Person who, on the date the applicable Hedging Agreement is entered into, is a
Lender or an affiliate of a Lender.

          Secured Parties means the Lenders, the Issuing Bank, the Administrative
Agent and each Qualified Hedge Counterparty.

          Telegraph is defined in the first recital.

          SECTION 1.2. Amended and Restated Credit Agreement Definitions. Unless
otherwise defined herein or the context otherwise requires, capitalized terms
used in this Guaranty, including its preamble and recitals, have the meanings
provided in the Amended and Restated Credit Agreement.

          SECTION 1.3. Subsidiary Note Acceleration. Each Guarantor which is the
maker of a Subsidiary Note pledged to the Administrative Agent for the benefit
of the Secured Parties hereby consents to acceleration of its Subsidiary Note
in accordance with the terms of Section 6(c) of the Company Pledge Agreement.

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ARTICLE II.

GUARANTY PROVISIONS

          SECTION 2.1. Guaranty. (a) Each Guarantor hereby absolutely,
unconditionally and irrevocably, and jointly and severally, as primary obligor
and not merely as surety, guarantees the full and prompt payment when due,
whether by acceleration or otherwise, and at all times thereafter, of all
obligations (monetary or otherwise) of the Guaranteed Obligors to each of the
Lenders, the Issuing Bank, the Administrative Agent and each Qualified Hedge
Counterparty, howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, now or hereafter existing, or due or to
become due, which arise out of or in connection with the Amended and Restated
Credit Agreement, any Letter of Credit or Letter of Credit Application, any
Hedging Agreement or any other Loan Document, in each case as the same may be
amended, modified, extended or renewed from time to time (all such obligations
being herein collectively called the “Guaranteed Obligations”), and agrees to
pay any and all reasonable expenses (including, without limitation, reasonable
fees and expenses of counsel) incurred by the Administrative Agent or any other
Secured Party in enforcing any rights under this Guaranty or any other Loan
Document. Without limiting the generality of the foregoing, each Guarantor’s
liability shall extend to all amounts that constitute part of the Guaranteed
Obligations and would be owed by any Guaranteed Obligor to any Secured Party
under or in respect of the Loan Documents but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving such Guaranteed Obligor.

          (b)  Each Guarantor, and by its acceptance of this Guaranty, the
Administrative Agent and each other Secured Party hereby confirms that it is
the intention of all such Persons that this Guaranty and the Obligations of
each Guarantor hereunder not constitute a fraudulent transfer or conveyance for
purposes of Bankruptcy Law (as hereinafter defined), the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign,
federal or state law to the extent applicable to this Guaranty and the
Obligations of each Guarantor hereunder. To effectuate the foregoing
intention, the Administrative Agent, the other Secured Parties and the
Guarantors hereby irrevocably agree that the Obligations of each Guarantor
under this Guaranty at any time shall be limited to the maximum amount as will
result in the Obligations of each Guarantor under this Guaranty not
constituting a fraudulent transfer or conveyance. For purposes hereof,
“Bankruptcy Law” means any proceeding of the type referred to in Section 12.1.4
of the Credit Agreement or Title 11, U.S. Code or any similar foreign, federal
or state law for the relief of debtors.

          (c)  Each Guarantor hereby unconditionally and irrevocably agrees that in
the event any payment shall be required to be made to any Secured Party under
this Guaranty or any other guaranty, such Guarantor will contribute, to the
maximum extent permitted by law, such amounts to each other Guarantor and each
other guarantor so as to maximize the aggregate amount paid to the Secured
Parties under or in respect of the Loan Documents.

          (d)  This Guaranty constitutes a guaranty by each Guarantor of payment when
due and not of collection and each Guarantor specifically agrees that it shall
not be necessary or required that the Administrative Agent or any other Secured
Party exercise any right, assert any claim or

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demand or enforce any remedy whatsoever against any of the Guaranteed
Obligors (or any other Person) before or as a condition to the obligations of
such Guarantor hereunder.

          SECTION
2.2. Acceleration of Guaranty. Each Guarantor agrees that, in the
event of any Event of Default under Section 12.1.4 of the Amended and Restated
Credit Agreement, and if such event shall occur at a time when any of the
Guaranteed Obligations are not then due and payable, such Guarantor shall pay
to the Administrative Agent for the account of the Administrative Agent and the
other Secured Parties forthwith the full amount which would be payable
hereunder by such Guarantor if all Guaranteed Obligations were then due and
payable.

          SECTION
2.3. Guaranty Absolute, etc. This Guaranty shall in all respects
be a continuing, absolute, unconditional and irrevocable guaranty of payment by
each Guarantor, and shall remain in full force and effect until all Guaranteed
Obligations have been paid in full, finally and indefeasibly, all obligations
of such Guarantor hereunder shall have been paid in full, finally and
indefeasibly, and the commitments under the Facilities, all Letters of Credit,
all Hedging Agreements and any other commitments by the Administrative Agent or
any other Secured Party to the Guaranteed Obligors shall have terminated (even
if the Letters of Credit shall have been cash collateralized). Each Guarantor
guarantees that the Guaranteed Obligations shall be paid strictly in accordance
with the terms of the Amended and Restated Credit Agreement and each other Loan
Document under which they arise, regardless of any law, regulation or order now
or hereafter in effect in any jurisdiction affecting any of such terms or the
rights of the Administrative Agent or any other Secured Party with respect
thereto. The creation or existence from time to time of additional Guaranteed
Obligations to the Administrative Agent or the other Secured Parties or any of
them is hereby authorized, without notice to any Guarantor, and shall in no way
impair the rights of the Administrative Agent or the other Secured Parties or
the obligations of any Guarantor under this Guaranty, including the guaranty
hereunder of such additional Guaranteed Obligations. The liability of each
Guarantor under this Guaranty shall be absolute, unconditional and irrevocable
irrespective of:

		
	 	     (a) any lack of validity, legality or enforceability of the Amended
and Restated Credit Agreement or any other Loan Document;

		
	 	     (b) the failure of the Administrative Agent or any other Secured
Party

		
	 	     (i) to assert any claim or demand or to enforce any right or
remedy against any of the Guaranteed Obligors or any other Person
(including any other guarantor) under the provisions of the Amended
and Restated Credit Agreement, any other Loan Document or
otherwise, or to join any such Person in any action against any of
the Guaranteed Obligors or any other Person, or

		
	 	     (ii) to exercise any right or remedy against any other
guarantor of, or collateral securing, any Guaranteed Obligations;

		
	 	     (c) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Guaranteed Obligations, or any other
extension, compromise or renewal of any Guaranteed Obligation;

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	 	     (d) any reduction, limitation, impairment or termination of any
Guaranteed Obligations for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to
(and each Guarantor hereby waives any right to or claim of) any defense
or setoff, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any
Guaranteed Obligations;

		
	 	     (e) any amendment to, rescission, waiver, or other modification of,
or any consent to departure from, any of the terms of the Amended and
Restated Credit Agreement or any other Loan Document;

		
	 	     (f) (i) any addition, exchange, release, surrender or non-perfection
of any collateral or (ii) any amendment to or waiver or release or
addition of, or consent to departure from, any other guaranty held by the
Administrative Agent or any other Secured Party, securing or supporting
any of the Guaranteed Obligations;

		
	 	     (g) any manner of application of Collateral or any other collateral,
or proceeds thereof, to all or any of the Guaranteed Obligations, or any
manner of sale or other disposition of any Collateral or any other
collateral for all or any of the Guaranteed Obligations or any other
Obligations of any Guaranteed Obligor under the Loan Documents or any
other assets of any Guaranteed Obligor or any of its Subsidiaries;

		
	 	     (h) any failure of any Secured Party to disclose to any Guaranteed
Obligor any information relating to the business, condition (financial or
otherwise), operations, performance, properties or prospects of any other
Guaranteed Obligor now or hereafter known to such Secured Party (each
Guarantor waiving any duty on the part of the Secured Parties to disclose
such information);

		
	 	     (i) any change, restructuring or termination of the corporate
structure or existence of any Guaranteed Obligor or any of its
Subsidiaries;

		
	 	     (j) the failure of any other Person to execute or deliver this
Guaranty or any other guaranty or agreement, or the release or reduction
of liability of any Guarantor or any other guarantor or surety with
respect to the Guaranteed Obligations; or

		
	 	     (k) any other circumstances (including, without limitation, any
statute of limitations) which might otherwise constitute a defense
available to, or a legal or equitable discharge of, any Guarantor, any
Guaranteed Obligor, any surety or any other guarantor.

          SECTION 2.4. Reinstatement, etc. Each Guarantor agrees that this Guaranty
shall continue to be effective or be reinstated, as the case may be, if at any
time any payment (in whole or in part) of any of the Guaranteed Obligations is
rescinded or must otherwise be restored by the Administrative Agent or any
other Secured Party, upon the insolvency, bankruptcy or reorganization of any
Guaranteed Obligor, any other Person or otherwise, as though such payment had
not been made.

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          SECTION 2.5. Waiver, etc. Each Guarantor hereby waives promptness,
diligence, notice of acceptance and any other notice with respect to any of the
Guaranteed Obligations and this Guaranty and any requirement that the
Administrative Agent or any other Secured Party protect, secure, perfect or
insure any security interest or Lien, or any property subject thereto, or
exhaust any right or take any action against any Guaranteed Obligor or any
other Person (including any other guarantor) or entity or any collateral
securing any Guaranteed Obligations.

          SECTION 2.6. Waivers and Contribution. (a) Until the Guaranteed
Obligations have been paid in cash indefeasibly in full, each Guarantor hereby
irrevocably waives any claim or other rights which it may now or hereafter
acquire against the Guaranteed Obligors or any other Person that arise from the
existence, payment, performance or enforcement of such Guarantor’s obligations
under this Guaranty or any other Loan Document, including any right of
subrogation, reimbursement, contribution, exoneration, or indemnification, any
right to participate in any claim or remedy of the Administrative Agent or any
other Secured Party against the Guaranteed Obligors or any other Person or any
collateral which the Administrative Agent or any other Secured Party now has or
hereafter acquires, whether or not such claim, remedy or right arises in
equity, or under contract, statute or common law, including the right to take
or receive from the Guaranteed Obligors or any other Person, directly or
indirectly, in cash or other property or by setoff or in any manner, payment or
security on account of such claim or other rights. If any amount shall be paid
to any Guarantor in violation of the preceding sentence and the Guaranteed
Obligations shall not have been paid in cash indefeasibly in full and the
commitments under the Facilities, all Letters of Credit, all Hedging Agreements
and any other commitments by the Administrative Agent or any other Secured
Party to the Guaranteed Obligors shall not have been terminated, such amount
shall be deemed to have been paid to such Guarantor for the benefit of, and
held in trust for, the Administrative Agent and the other Secured Parties, and
shall forthwith be paid to the Administrative Agent to be credited and applied
upon the Guaranteed Obligations, whether matured or unmatured.

          (b)  Each Guarantor hereby unconditionally and irrevocably waives any right
to revoke this Guaranty and acknowledges that this Guaranty is continuing in
nature and applies to all Guaranteed Obligations, whether existing now or in
the future.

          (c)  Each Guarantor hereby unconditionally and irrevocably waives (i) any
defense arising by reason of any claim or defense based upon an election of
remedies by any Secured Party that in any manner impairs, reduces, releases or
otherwise adversely affects the subrogation, reimbursement, exoneration,
contribution or indemnification rights or other rights to proceed against any
of the other Guaranteed Obligors, any other guarantor or any other Person or
any Collateral and (ii) any defense based on any right of setoff or
counterclaim against or in respect of the Obligations.

          (d)  Each Guarantor acknowledges that the Administrative Agent may, without
notice to or demand upon and without affecting the liability under this
Guaranty, foreclose with respect to any Collateral by nonjudicial sale, and
each Guarantor hereby waives any defense to the recovery by the Administrative
Agent and the other Secured Parties of any deficiency after such nonjudicial
sale.

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          (e)  Each Guarantor hereby unconditionally and irrevocably waives any duty
on the part of any Secured Party to disclose to such Guarantor any matter, fact
or thing relating to the business, condition (financial or otherwise),
operations, performance, properties or prospects of any other Guaranteed
Obligor or any of its Subsidiaries now or hereafter known by such Secured
Party.

          (f)  Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by the Amended and
Restated Credit Agreement and that the waivers set forth in this Section are
knowingly made in contemplation of such benefits.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

     To induce the Administrative Agent and the Lenders to make Loans and issue
or participate in Letters of Credit under the Amended and Restated Credit
Agreement, each Guarantor represents and warrants with respect to itself to the
Administrative Agent and the other Secured Parties that:

          SECTION 3.1. Organization, etc. Such Guarantor is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation; such Guarantor is duly qualified to do business in each
jurisdiction where the nature of its business makes such qualification
necessary, except where the failure to be so qualified would not have a
Material Adverse Effect; and such Guarantor has full corporate power and
authority to own its property and conduct its business as presently conducted
by it.

          SECTION 3.2. Authorization; No Conflict. The execution and delivery by
such Guarantor of this Guaranty and each other Loan Document to which it is
intended to be a party, and the performance by such Guarantor of its
obligations under each Loan Document to which it is intended to be a party are
within the corporate powers of such Guarantor, have been duly authorized by all
necessary corporate action on the part of such Guarantor (including any
necessary shareholder action), have received all necessary governmental
approval (if any shall be required), and do not and will not (a) violate any
provision of law or any order, decree or judgment of any court or other
government agency which is binding on such Guarantor, (b) contravene or
conflict with, or result in a breach of, any provision of the articles of
association or other organizational documents of such Guarantor or of any
agreement, indenture, instrument or other document, or any judgment, order or
decree, which is binding on such Guarantor or (c) result in, or require, the
creation or imposition of any Lien on any property of such Guarantor (other
than pursuant to the Loan Documents).

          SECTION 3.3. Validity and Binding Nature. This Guaranty is, and upon the
execution and delivery thereof each other Loan Document to which such Guarantor
is intended to be a party will be, the legal, valid and binding obligation of
such Guarantor, enforceable against such Guarantor in accordance with its
terms, except that enforceability may be limited by bankruptcy, insolvency,
fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other

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similar laws now or hereafter in effect relating to creditors’ rights
generally and by general principles of equity (regardless of whether
enforcement is sought in equity or at law).

          SECTION 3.4. Independent Credit Decision. Such Guarantor has,
independently and without reliance upon the Administrative Agent or any other
Secured Party and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Guaranty and each other Loan Document to which it is or is to be a party, and
such Guarantor has established adequate means of obtaining from each Guaranteed
Obligor on a continuing basis information pertaining to, and is now and on a
continuing basis will be completely familiar with, the business, condition
(financial or otherwise), operations, performance, properties and prospects of
such Guaranteed Obligor.

          SECTION 3.5. Conditions Precedent. There are no conditions precedent to
the effectiveness of this Guaranty that have not been satisfied or waived.

ARTICLE IV.

INDEMNIFICATION

          SECTION 4.1. General Indemnity. Without limitation on any other
Obligations of any Guarantor or remedies of the Secured Parties under this
Guaranty, each Guarantor shall, to the fullest extent permitted by law,
indemnify, defend and save and hold harmless each Secured Party and each of
their Affiliates and their respective officers, directors, employees, agents
and advisors (each, an “Indemnified Party”) from and against, and shall pay on
demand, any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party in
connection with or as a result of any failure of any Guaranteed Obligations to
be the legal, valid and binding obligations of any Guaranteed Obligor
enforceable against such Guaranteed Obligor in accordance with their terms.

          SECTION 4.2. Additional Provision. Each Guarantor hereby also agrees that
none of the Indemnified Parties shall have any liability (whether direct or
indirect, in contract, tort or otherwise) to any of the Guarantors or any of
their respective Affiliates or any of their respective officers, directors,
employees, agents and advisors, and each Guarantor hereby agrees not to assert
any claim against any Indemnified Party on any theory of liability, for
special, indirect, consequential or punitive damages arising out of or
otherwise relating to the Facilities, the actual or proposed use of the
proceeds of the Advances or Letters of Credit, the Loan Documents or any other
transactions contemplated by the Loan Documents.

ARTICLE V.

SUBORDINATION

          Each Guarantor hereby subordinates any and all debts, liabilities and
other Obligations owed to it by each Borrower (the “Subordinated Obligations”)
to the Guaranteed Obligations to the extent and in the manner hereinafter set
forth in this Article:

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          SECTION 5.1. Prohibited Payments, etc. Except during the continuance of
an Event of Default or an Unmatured Event of Default (including the
commencement and continuation of any proceeding under any Bankruptcy Law
relating to any Borrower), each Guarantor may receive regularly scheduled
payments from any Borrower on account of the Subordinated Obligations. After
the occurrence and during the continuance of any Event of Default or Unmatured
Event of Default (including the commencement and continuation of any proceeding
under any Bankruptcy Law relating to any Borrower), however, unless the
Administrative Agent otherwise agrees, no Guarantor shall demand, accept or
take any action to collect any payment on account of the Subordinated
Obligations.

          SECTION 5.2. Prior Payment of Guaranteed Obligations. In any proceeding
under any Bankruptcy Law relating to any Borrower, each Guarantor agrees that
the Secured Parties shall be entitled to receive payment in full in cash of all
Guaranteed Obligations (including all interest and expenses accruing after the
commencement of a proceeding under any Bankruptcy Law, whether or not
constituting an allowed claim in such proceeding (“Post Petition Interest”))
before such Guarantor receives payment of any Subordinated Obligations.

          SECTION 5.3. Turn-Over. After the occurrence and during the continuance
of any Event of Default or Unmatured Event of Default (including the
commencement and continuation of any proceeding under any Bankruptcy Law
relating to any Borrower), each Guarantor shall, if the Administrative Agent so
requests, collect, enforce and receive payments on account of the Subordinated
Obligations as trustee for the Secured Parties and deliver such payments to the
Administrative Agent on account of the Guaranteed Obligations (including all
Post Petition Interest), together with any necessary endorsements or other
instruments of transfer, but without reducing or affecting in any manner the
liability of such Guarantor under the other provisions of this Guaranty.

          SECTION 5.4. Administrative Agent Authorization. After the occurrence and
during the continuance of any Event of Default or Unmatured Event of Default
(including the commencement and continuation of any proceeding under any
Bankruptcy Law relating to any Borrower), the Administrative Agent is
authorized and empowered (but without any obligation to so do), in its
discretion, (i) in the name of each Guarantor, to collect and enforce, and to
submit claims in respect of, Subordinated Obligations and to apply any amounts
received thereon to the Guaranteed Obligations (including all Post Petition
Interest), and (ii) to require each Guarantor (A) to collect and enforce, and
to submit claims in respect of, Subordinated Obligations and (B) to pay any
amounts received on such obligations to the Administrative Agent for
application to the Guaranteed Obligations (including any and all Post Petition
Interest).

ARTICLE VI.

MISCELLANEOUS PROVISIONS

          SECTION 6.1. Loan Document. This Guaranty is a Loan Document executed
pursuant to the Amended and Restated Credit Agreement and shall (unless
otherwise expressly indicated herein) be construed, administered and applied in
accordance with the terms and provisions thereof.

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          SECTION 6.2. Covenants. Each Guarantor covenants and agrees that, so long
as any part of the Guaranteed Obligations shall remain unpaid, any Letter of
Credit shall be outstanding, or any Lender shall have any commitment under the
Facilities, such Guarantor will perform and observe, and cause each of its
Subsidiaries to perform and observe, all of the terms, covenants and agreements
set forth in the Loan Documents on its or their part to be performed or
observed or that any Borrower has agreed to cause each Guarantor or such
Subsidiaries to perform or observe.

          SECTION 6.3. Binding on Successors, Transferees and Assigns; Assignment of
Guaranty. This Guaranty shall be binding upon each Guarantor and its
respective successors, transferees and assigns, and all references herein to
the Guaranteed Obligors and any Guarantor, respectively, shall be deemed to
include any of such Person’s successor or successors, whether intermediate or
remote. Any Lender may from time to time, in accordance with Section 15.9 of
the Amended and Restated Credit Agreement, without notice to any Guarantor,
assign or transfer any or all of the Guaranteed Obligations or any interest
therein; and, notwithstanding any such assignment or transfer or any subsequent
assignment or transfer thereof, such Guaranteed Obligations shall be and remain
Guaranteed Obligations for the purpose of this Guaranty, and each and every
immediate and successive assignee or transferee of any of the Guaranteed
Obligations or of any interest therein shall, to the extent of the interest of
such assignee or transferee in the Guaranteed Obligations, be entitled to the
benefits of this Guaranty and shall be protected to the same extent as if such
assignee or transferee were a Lender.

          SECTION 6.4. Amendments, etc. No amendment to or waiver of any provision
of this Guaranty, nor consent to any departure by any Guarantor herefrom, shall
in any event be effective unless the same shall be in writing and signed by the
Administrative Agent and each Guarantor, and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given.

          SECTION 6.5. Addresses for Notices to the Guarantors. All notices
hereunder to any Guarantor shall be in writing (including via facsimile) and
shall be sent to it at the address or facsimile number set forth below its
signature hereto or at such other address or facsimile number as may be
designated by such Guarantor in a written notice received by the Administrative
Agent. Notices sent by facsimile transmission shall be deemed to have been
given when sent; notices sent by mail shall be deemed to have been given three
Business Days after the date when sent by registered or certified mail, postage
prepaid; and notices sent by hand delivery shall be deemed to have been
received when received.

          SECTION 6.6. No Waiver; Remedies; Security. In addition to, and not in
limitation of, Section 2.3 and Section 2.5, no failure on the part of the
Administrative Agent or any other Secured Party to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by
law. Pursuant to the Amended and Restated Credit Agreement, (a) this Guaranty
has been delivered to the Administrative Agent and (b) the Administrative Agent
has been authorized to enforce this Guaranty on behalf of itself and each of
the other Secured Parties. All payments by any Guarantor pursuant to this
Guaranty shall be made to the Administrative Agent and applied
to costs, expenses, fees or the ratable

U.S. Subsidiary Guaranty

11

 

benefit of the Secured Parties, as
applicable. This Guaranty is secured by various Collateral Documents delivered
by one or more of the Guarantors and reference is made to such Collateral
Documents for a description of the collateral security for this Guaranty, the
nature and extent of such Collateral and the rights of the parties in and to
such Collateral.

          SECTION 6.7. Captions. Section captions used in this Guaranty are for
convenience of reference only, and shall not affect the construction of this
Guaranty.

          SECTION 6.8. Setoff. In addition to, and not in limitation of, any rights
of the Administrative Agent or any other Secured Party under applicable law,
the Administrative Agent or any other Secured Party shall, upon the occurrence
of any Event of Default, have the right to appropriate and apply to the payment
of the obligations of each Guarantor owing to it hereunder, whether or not then
due, and each Guarantor hereby grants to the Administrative Agent and each of
the other Secured Parties a continuing security interest in, any and all
balances, credits, deposits, accounts or moneys of such Guarantor then or
thereafter maintained with the Administrative Agent or such other Secured Party
and any and all property of every kind or description or in the name of such
Guarantor now or hereafter, for any reason or purpose whatsoever, in the
possession or control of, or in transit to, the Administrative Agent or such
other Secured Party or any agent or bailee therefor.

          SECTION 6.9. Fees and Expenses. Each Guarantor further agrees to pay all
reasonable expenses (including reasonable attorneys’ fees and legal expenses)
paid or incurred by the Administrative Agent or any other Secured Party in
endeavoring to collect the Guaranteed Obligations, or any part thereof, in
realizing upon or protecting any Collateral for this Guaranty, and in enforcing
this Guaranty against such Guarantor.

          SECTION 6.10. Severability. Wherever possible each provision of this
Guaranty shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

          SECTION 6.11. Governing Law, Entire Agreement, Counterparts, etc. THIS
GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK. This Guaranty and the other Loan Documents constitute the
entire understanding among the parties hereto with respect to the subject
matter hereof and thereof and supersede any prior agreements, written or oral,
with respect thereto. This Guaranty may be executed in any number of
counterparts and by the different parties hereto in separate counterparts, and
each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Guaranty. Delivery of
an executed counterpart of a signature page to this Guaranty by telecopier
shall be effective as delivery of an original executed counterpart of this
Agreement. At any time after the date of this Guaranty, one or more additional
persons or entities may become parties hereto by executing and delivering to
the Administrative Agent a counterpart of this Guaranty. Immediately upon such
execution and delivery (and without any further action), each such
additional person or entity will become a party to, and will be bound by
all the terms of, this Guaranty.

U.S. Subsidiary Guaranty

12

 

          SECTION 6.12. Forum Selection and Consent to Jurisdiction. ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTY OR
ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE
COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK PROVIDED, HOWEVER, THAT ANY SUCH LITIGATION MAY
BE BROUGHT AND MAINTAINED AND/OR ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S
OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND. EACH GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS
TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF
ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH GUARANTOR HEREBY IRREVOCABLY
APPOINTS HOLLINGER INTERNATIONAL INC., 712 FIFTH AVENUE, NEW YORK, NEW YORK
10019, USA (THE “PROCESS AGENT”), ATTENTION: MARK KIPNIS, AS ITS AGENT TO
RECEIVE, ON ITS BEHALF AND ON BEHALF OF ITS PROPERTY, SERVICE OF COPIES OF THE
SUMMONS AND COMPLAINT AND ANY OTHER PROCESS WHICH MAY BE SERVED IN ANY SUCH
LITIGATION. SUCH SERVICE MAY BE MADE BY MAILING OR DELIVERING A COPY OF SUCH
PROCESS TO EACH GUARANTOR IN CARE OF THE PROCESS AGENT AT THE PROCESS AGENT’S
ABOVE ADDRESS, AND EACH GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND DIRECTS THE
PROCESS AGENT TO ACCEPT SUCH SERVICE ON ITS BEHALF. EACH GUARANTOR FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH
GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO
ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

          SECTION 6.13. Waiver of Jury Trial. EACH GUARANTOR AND, BY ACCEPTING THE
BENEFITS HEREOF, THE ADMINISTRATIVE AGENT AND EACH OTHER SECURED PARTY HEREBY
WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS GUARANTY,
ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH
THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED
BEFORE A COURT AND NOT A JURY.

          SECTION 6.14. Taxes. All payments to be made by each Guarantor to any
person hereunder shall be made free and clear of, and without deduction for or
on account of, tax unless

U.S. Subsidiary Guaranty

13

 

such Guarantor is required by law to make such a
payment subject to the deduction or withholding of tax, in which case the sum
payable by such Guarantor in respect of which such deduction or withholding is
required to be made shall be increased to the extent necessary to ensure that,
after the making of such deduction or withholding, such person receives and
retains (free from any liability in respect of any such deduction or
withholding) a net sum equal to the sum which it would have received and so
retained had no such deduction or withholding been made or required to be made.

          SECTION 6.15. Judgment Currency. The obligations of each Guarantor, in
respect of any sum due to the Administrative Agent or any other Secured Party
hereunder shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than the currency in which such sum was originally denominated
(the “Original Currency”), be discharged only to the extent that following
receipt by the Administrative Agent or such Secured Party of any sum adjudged
to be so due in the Judgment Currency, the Administrative Agent or such Secured
Party, in accordance with normal banking procedures, purchases the Original
Currency with the Judgment Currency. If the amount of Original Currency so
purchased is less than the sum originally due to the Administrative Agent or
such Secured Party, each Guarantor agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Administrative Agent or
such Secured Party, as the case may be, against such loss, and if the amount of
Original Currency so purchased exceeds the sum originally due to the
Administrative Agent or such Secured Party, as the case may be, the
Administrative Agent or such Secured Party agrees to remit such excess to such
Guarantor.

U.S. Subsidiary Guaranty

14

 

          IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly
executed and delivered by its officer thereunto duly authorized as of the date
first above written.

	 	ALLIANCE NEWS INC.

AMERICAN PUBLISHING (1991) INC.

AMERICAN PUBLISHING COMPANY

AMERICAN PUBLISHING COMPANY OF NEW YORK

APAC-90 OKLAHOMA HOLDINGS, INC.

APAC-95 OKLAHOMA HOLDINGS, INC.

APC 1993, INC.

APMS-93 INC.

CHICAGO GROUP ACQUISITION INC.

CHICAGO SUN-TIMES FEATURES, INC.

CHICAGO SUN-TIMES, INC.

DIGITAL CHICAGO INC.

FOX VALLEY PUBLICATIONS, INC.

HOLLINGER NCI HOLDINGS, LLC

HTH BENHOLDCO LLC

HTH HOLDINGS INC.

LHAT CORPORATION

MIDWEST SUBURBAN PUBLISHING, INC.

PIONEER NEWSPAPERS INC.

REACH CHICAGO INC.

SUN TELEMARKETING INC.

SUN-TIMES DISTRIBUTION SYSTEMS, INC.

SUN-TIMES PRD INC.

TAHL (2002) INC.

TELEGRAPH AUSTRALIAN HOLDINGS LIMITED

THE JOHNSTOWN TRIBUNE PUBLISHING COMPANY

THE POST-TRIBUNE COMPANY

THE RED STREAK HOLDING COMPANY

THE SUN-TIMES COMPANY

VALLEY CABLE TV, INC.

	 	 	 	 	 
	 	 	
By:
	 	 

	 	 	
Name:	 	 
	 	 	
Title:	 	 

	 	 	 	 	 
	 	 	
Address:

Facsimile No.:

Attention:
	 	401 North Wabash Avenue

Chicago, Illinois 60611

(312) 321-0629

U.S. Subsidiary Guaranty

 

 

	 	 	 	 	 
	 	 	OKLAHOMA AIRPLANE LLC
	 
	 	 	
By:	 	APAC-95 Oklahoma Holdings, Inc., its Manager
	 
	 	 	
By:	 	 

	 	 	
Name:
	 	 
	 	 	
Title:	 	 
	 
	 	 	
Address:
	 	401 North Wabash Avenue

Chicago, Illinois 60611
	 	 	
Facsimile No.:
	 	(312) 321-0629
	 	 	 	 	 
	 	 	
Attention:	 	 
	 	 	 	 	 
	 	 	CST MEMBER LLC
	 	 	 	 	 
	 	 	 	 	 
	 	 	
By:	 	Chicago Sun-Times, Inc., its Manager
	 	 	 	 	 
	 	 	
By:	 	 

	 	 	
Name:
	 	 
	 	 	
Title:	 	 
	 	 	 	 	 
	 	 	
Address:
	 	401 North Wabash Avenue

Chicago, Illinois 60611
	 	 	
Facsimile No.:
	 	(312) 321-0629
	 	 	 	 	 
	 	 	
Attention:	 	 

U.S. Subsidiary Guaranty

 

 

	 	 	 	 	 
	 	 	HGP, PARTNERSHIP
	 
	 
	 	 	
By:
	Hollinger International Publishing Inc., its general partner
	 
	 	 	
By:	 

	 	 	
Name:
	 	 
	 	 	
Title:	 	 
	 
	 	 	
By:
	The Johnstown Tribune Company, its general partner
	 
	 	 	
By:	
 

	 	 	
Name:
	 	 
	 	 	
Title:	 	 
	 
	 	 	
Address:
	 	401 North Wabash Avenue

Chicago, Illinois 60611
	 	 	
Facsimile No.:
	 	(312) 321-0629
	 	 	 	 	 
	 	 	
Attention:	 	 

U.S. Subsidiary Guaranty

 

 

	 	 	 
	 	 	
The undersigned is executing a counterpart
of this Third Amended and Restated Guaranty
dated as of ______ , 2002, for purposes of
becoming a party hereto:

	 	 	 	 	 
	 	 	 

	 
	 	 	
By:	 	 

	 	 	
Name:
	 	 
	 	 	
Title:	 	 
	 
	 	 	
Address:
	 	401 North Wabash

Chicago, IL 60611
	 	 	
Facsimile No.:
	 	(312) 321-0629
	 	 	 	 	 
	 	 	
Attention:	 	 
	 	 	 	 	 
	 	 	Date:	 	______ , 200_

U.S. Subsidiary Guarantyexv10w28

 

Exhibit 10.28

EXECUTION COPY

Form of Third Amended and Restated Security Agreement among

Hollinger International Publishing Inc. and its Subsidiaries (as defined therein)

and Wachovia Bank, N.A. dated as of December 23, 2002

THIRD AMENDED AND RESTATED SECURITY AGREEMENT

          THIS THIRD AMENDED AND RESTATED SECURITY AGREEMENT (this “Agreement”)
dated as of December 23, 2002 is among HOLLINGER INTERNATIONAL PUBLISHING INC.,
a Delaware corporation (the “Company”) and the Subsidiaries of the Company
listed on the signature pages hereof and such other persons or entities which
from time to time become parties hereto as debtors (collectively with the
Company, the “Debtors” and individually each a “Debtor”) and WACHOVIA BANK,
N.A., in its capacity as administrative agent for the Lenders referred to below
(in such capacity, the “Administrative Agent”).

W I T N E S S E T H

          WHEREAS, the Company, Telegraph Group Limited (“ Telegraph”), certain
other borrowers, The Toronto-Dominion Bank, as issuing bank and Toronto
Dominion (Texas), Inc., as administrative agent (in such capacity, together
with any successors in such capacity) entered into that certain Fourth Amended
and Restated Credit Agreement dated as of April 30, 1999 (as amended or
modified and in effect on the Amendment Effective Date, the “Existing Credit
Agreement”), whereunder certain financial institutions agreed to make loans and
to issue letters of credit and bankers’ acceptances (such loans, letters of
credit and bankers’ acceptances outstanding on the Amendment Effective Date,
collectively the “Existing Credit Extensions”); and

          WHEREAS, each of the other Debtors executed and delivered that certain
Second Amended and Restated Guaranty dated as of April 30, 1999 (as amended or
modified and in effect on the Amendment Effective Date, the “Original
Guaranty”), guarantying the obligations of the Company, Telegraph and the other
borrowers under the Existing Credit Agreement; and

          WHEREAS, in connection with the Original Guaranty, the Debtors executed
that certain Second Amended and Restated Company Security Agreement dated as of
April 30, 1999 among the Debtors and the Administrative Agent (the “Original
Company Security Agreement”); and

          WHEREAS, the Company desires to refinance the Existing Credit Extensions,
add additional borrowers thereunder and obtain a revolving loan commitment (to
include availability for revolving loans and the issuance of letters of credit)
and term loans; and

          WHEREAS, the Company has requested various financial institutions
(together with their respective successors and assigns, collectively the
“Lenders” and each individually a “Lender”) to amend and restate the Existing
Credit Agreement on the terms and conditions set forth in the Fifth Amended and
Restated Credit Agreement, dated as of even date herewith, among the Company,
Telegraph and First DT Holdings Limited (“FDTH” and, together with the Company
and Telegraph, each a “Borrower” and collectively, the “Borrowers”), the
Lenders, the Administrative Agent, Wachovia Securities, Inc., as sole lead
arranger and book runner, Toronto Dominion (Texas), Inc. as Syndication Agent,
and General Electric Capital Corporation, as Documentation Agent (together with
all amendments and other modifications, if any, from time

Company Security Agreement

 

 

to time made thereto, the “Amended and Restated Credit Agreement”) to set
forth, among other things, the terms and conditions under which the Lenders
thereafter will make credit extensions to the Borrowers; it being the intention
of the Company, the Lenders, and the Administrative Agent that the Amended and
Restated Credit Agreement and the Loan Documents executed in connection
therewith shall not effect the novation of the obligations of the Borrowers
under the Existing Credit Agreement but be merely a restatement and, where
applicable, an amendment of and substitution for the terms governing such
obligations hereafter; and

          WHEREAS, in connection with the Amended and Restated Credit Agreement,
each of the Debtors (other than the Company) is executing and delivering an
amended and restated guaranty of even date herewith (the “Guaranty”) of the
obligations of the Borrowers under the Amended and Restated Credit Agreement;
and

          WHEREAS, pursuant to Section 14 of the Amended and Restated Credit
Agreement the Company has guaranteed the obligations of the other Borrowers
under the Amended and Restated Credit Agreement; and

          WHEREAS, as a condition precedent to the Amendment Effective Date of the
Amended and Restated Credit Agreement, the Debtors are required to execute and
deliver this Agreement; and

          WHEREAS, the parties desire to amend and restate the Original Company
Security Agreement to recognize the addition of new Borrowers, it being the
intention of the Debtors, the Lenders and the Administrative Agent that this
Agreement and the Loan Documents executed in connection herewith shall not
effect a novation of the obligations of the Debtors under the Original Company
Security Agreement but merely a restatement and, where applicable, an amendment
of the terms governing such obligations hereafter;

          WHEREAS, the obligations of the Company under the Amended and Restated
Credit Agreement and of each other Debtor under the Guaranty are to be secured
pursuant to this Agreement;

          NOW, THEREFORE, for and in consideration of any loan, advance or other
financial accommodation heretofore or hereafter made to any Borrower by the
Lenders or any of them, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

          1.          Definitions. When used herein,(a) the terms Account, Account Debtor,
Certificated Security, Chattel Paper, Commercial Tort Claims, Commodity
Account, Commodity Contract, Deposit Account, Document, Equipment, Financial
Asset, Fixture, Goods, Instrument, Inventory, Investment Property,
Letter-of-Credit Rights, Proceeds, Security, Securities Account, Security
Entitlement and Uncertificated Security shall have the respective meanings
assigned to such terms in the Uniform Commercial Code (as defined below) and
(b) the following terms have the following meanings (such definitions to be
applicable to both the singular and plural forms of such terms):

          Administrative Agent — see the Preamble.

Company Security Agreement

2

 

          Amended and Restated Credit Agreement — see the Recitals.

          Agreement — see the Preamble.

          Assignee Deposit Account — see Section 4.

          Collateral means, with respect to any Debtor, all property and rights of
such Debtor in which a security interest is granted hereunder.

          Commitments has the meaning assigned to such term in the Amended and
Restated Credit Agreement.

          Company — see the Preamble.

          Computer Hardware and Software means, with respect to any Debtor, (a) all
of such Debtor’s rights (including rights as licensee and lessee) with respect
to computer and other electronic data processing hardware, whether now owned or
hereafter acquired by such Debtor, including, without limitation, all
integrated computer systems, central processing units, memory units, display
terminals, printers, features, computer elements, card readers, tape drives,
hard and soft disk drives, compact disk drives, cables, electrical supply
hardware, generators, power equalizers, accessories and all peripheral devices
and other related computer hardware; (b) all of such Debtor’s rights (including
rights as licensee and lessee) with respect to software programs, whether now
owned or hereafter acquired by such Debtor, designed for use on the computers
and electronic data processing hardware described in clause (a) above,
including, without limitation, all operating system software, utilities and
application programs in whatsoever form (source code and object code in
magnetic tape, disk or hard copy format or any other listings whatsoever); (c)
all of such Debtor’s rights (including rights as licensee and lessee) with
respect to any firmware associated with any of the foregoing, whether now owned
or hereafter acquired by such Debtor; and (d) all of such Debtor’s rights
(including rights as licensee and lessee) with respect to documentation for
hardware, software and firmware described in the preceding clauses (a), (b) and
(c) above, whether now owned or hereafter acquired by such Debtor, including,
without limitation, flow charts, logic diagrams, manuals, specifications,
training materials, charts and pseudo codes.

          Contract Right means, with respect to any Debtor, any right of such Debtor
under a contract for the sale or lease of goods or the rendering of services,
(i) to receive moneys due and to become due thereunder, (ii) to receive
proceeds of any insurance, indemnity, warranty or guaranty with respect
thereto, (iii) with respect to claims of such Debtor for damages arising out of
or for breach of or default thereunder, and (iv) to terminate such contract, to
perform thereunder and to compel performance and otherwise exercise all
remedies thereunder.

          Debtor — see the Preamble.

          Default means the occurrence of any of the following events: (a) any Event
of Default or (b) any warranty of any Debtor herein being untrue or misleading
in any material respect and, with the result that the Administrative Agent’s
security interest in, or rights and remedies with respect to any material
portion of the Collateral of such Debtor is impaired or otherwise adversely
affected.

          Event of Default has the meaning assigned to such term in the Credit
Agreement.

          General Intangibles means, with respect to any Debtor, all of such
Debtor’s “general intangibles” as defined in Uniform Commercial Code as in
effect in New York on the date hereof

Company Security Agreement

3

 

and, in any event, includes (without limitation) all of such Debtor’s
trademarks, trade names, patents, copyrights, trade secrets, customer lists,
inventions, designs, software programs, mask works, goodwill, registrations,
licenses, franchises, tax refund claims, guarantee claims, security interests
and rights to indemnification.

          Guaranty — see the Recitals.

          Intellectual Property means all past, present and future: trade secrets
and other proprietary information; trademarks, service marks, business names,
designs, logos, indicia, and/or other source and/or business identifiers and
the goodwill of the business relating thereto or symbolized thereby and all
registrations or applications for registrations which have heretofore been or
may hereafter be issued thereon throughout the world (provided that no security
interest shall be granted in United States intent-to-use trademark applications
to the extent that, and solely during the period in which, the grant of a
security interest therein would impair the validity or enforceability of such
intent-to-use trademark applications under applicable federal law)
(collectively “Trademarks”); copyrights (including, without limitation,
copyrights for computer programs) and copyright registrations or applications
for registrations which have heretofore been or may hereafter be issued
throughout the world and all tangible property embodying the copyrights;
unpatented inventions (whether or not patentable); patent applications and
patents; industrial designs, industrial design applications and registered
industrial designs; license agreements related to any of the foregoing set
forth in this definition and income therefrom; books, records, writings,
computer tapes or disks, flow diagrams, specification sheets, source codes,
object codes and other physical manifestations, embodiments or incorporations
of any of the foregoing set forth in this definition; the right to sue for all
past, present and future infringements of any of the foregoing set forth in
this definition; and all common law and other rights throughout the world in
and to all of the foregoing set forth in this definition.

          Lender — see the Recitals.

          Liabilities means, as to each Debtor, all obligations (monetary or
otherwise) of such Debtor under or in connection with the Amended and Restated
Credit Agreement, the Guaranty, Letters of Credit or Letter of Credit
Applications, any other Loan Document or any other document or instrument
(including any Hedging Agreement (as defined in the Amended and Restated Credit
Agreement) entered into with a Qualified Hedge Counterparty (as defined in the
Amended and Restated Credit Agreement) executed in connection therewith,
howsoever created, arising or evidenced, whether direct or indirect, absolute
or contingent, now or hereafter existing, or due or to become due including,
without limitation, any post-petition interest accruing during any bankruptcy
reorganization of any Debtor or other similar proceeding.

          Loan Document has the meaning assigned to such term in the Amended and
Restated Credit Agreement.

          Non-Tangible Collateral means, with respect to any Debtor, such Debtor’s
Accounts, Contract Rights and General Intangibles.

          Permitted Liens — see clause (i) of Section 3.

          Secured Party — see the Guaranty.

          Subsidiary has the meaning assigned to such term in the Amended and
Restated Credit Agreement.

Company Security Agreement

4

 

          Uniform Commercial Code means the Uniform Commercial Code as in effect in
the State of New York on the date of this Agreement, as the same may be amended
from time to time; provided, however, as used in Section 8 hereof, “Uniform
Commercial Code” means the Uniform Commercial Code as in effect from time to
time in the applicable jurisdiction.

          Unmatured Event of Default has the meaning assigned to such term in the
Amended and Restated Credit Agreement.

          Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Amended and Restated Credit
Agreement.

          2.     Grant of Security Interest. As security for the payment of all
Liabilities, each Debtor hereby assigns to the Administrative Agent for the
benefit of the Lenders and the other Secured Parties, and grants to the
Administrative Agent for the benefit of the Lenders and the other Secured
Parties, a continuing security interest in, the following, whether now or
hereafter existing or acquired:

		
	 	     All of such Debtor’s right, title and interest in and to the following,
in each case, as to each type of property described below, whether now
owned or hereafter acquired by such Debtor, wherever located, and whether
now or hereafter existing or arising:

	 	(a)	 	all accounts (including, without limitation,
health-care-insurance receivables), chattel paper (including,
without limitation, tangible chattel paper and electronic
chattel paper), instruments (including, without limitation,
promissory notes), deposit accounts, letter-of-credit rights,
general intangibles (including, without limitation, payment
intangibles) and other obligations of any kind, whether or not
arising out of or in connection with the sale or lease of
goods or the rendering of services and whether or not earned
by performance, and all rights now or hereafter existing in
and to all supporting obligations and in and to all security
agreements, mortgages, liens, leases, letters of credit and
other contracts securing or otherwise relating to the
foregoing property, and all other Accounts;
	 
	 	(b)	 	all Chattel Paper;
	 
	 	(c)	 	all Commercial Tort Claims;
	 
	 	(d)	 	all Computer Hardware and Software and all rights
with respect thereto, including, without limitation, any and
all licenses, options, warranties, service contracts, program
services, test rights, maintenance rights, support rights,
improvement rights, renewal rights and indemnifications, and
any substitutions, replacements, additions or model
conversions of any of the foregoing;
	 
	 	(e)	 	all Contract Rights;
	 
	 	(f)	 	all Deposit Accounts including, without
limitation, the deposit accounts described on Schedule IV
hereto, and all funds and financial assets from time to time
credited thereto, all interest, dividends, distributions,
cash,

Company Security Agreement

5

 

	 	 	 	instruments and other property from time to time received,

receivable or otherwise distributed in respect of or in
exchange for any or all of such funds and financial assets,
and all certificates and instruments, if any, from time to
time representing or evidencing any such Deposit Accounts;
all promissory notes, certificates of deposit, deposit
accounts, checks and other instruments from time to time
delivered to or otherwise possessed by the Administrative
Agent for or on behalf of such Debtor, including, without
limitation, those delivered or possessed in substitution for
or in addition to any or all of the then existing Collateral;
and all interest, dividends, distributions, cash, instruments
and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or
all of the then existing Collateral;
	 
	 	(g)	 	all Documents;
	 
	 	(h)	 	all General Intangibles;
	 
	 	(i)	 	all equipment (including, without limitation, all
Equipment) in all of its forms, including, without limitation,
all machinery, tools, motor vehicles, vessels, aircraft,
furniture and fixtures, and all parts thereof and all
accessions thereto and all software related thereto,
including, without limitation, software that is embedded in
and is part of the equipment;
	 
	 	(j)	 	all inventory (including, without limitation, all
Inventory) in all of its forms, including, without limitation,
(i) all raw materials, work in process, finished goods and
materials used or consumed in the manufacture, production,
preparation or shipping thereof, (ii) goods in which such
Debtor has an interest in mass or a joint or other interest or
right of any kind (including, without limitation, goods in
which such Debtor has an interest or right as consignee) and
(iii) goods that are returned to or repossessed or stopped in
transit by such Debtor), and all accessions thereto and
products thereof and documents therefor, and all software
related thereto, including, without limitation, software that
is embedded in and is part of the inventory and all other
Inventory and all other Inventory;
	 
	 	(k)	 	all Fixtures, and all accessions, additions,
attachments, improvements, substitutions and replacements
thereto and therefor;
	 
	 	(l)	 	all Instruments;
	 
	 	(m)	 	all Intellectual Property;
	 
	 	(n)	 	all investment property (including, without
limitation, all (A) Securities, including Certificated
Securities or Uncertificated Securities, (B) Security
Entitlements, (C) Securities Accounts, (D) Commodity Contracts
and (E) Commodity Accounts) in which such Debtor has now, or
acquires from time to time hereafter, any right, title or
interest in any manner, and the certificates or instruments,
if any, representing or evidencing such

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	 	 	 	investment property, and all dividends, distributions, return
of capital, interest, distributions, value, cash, instruments
and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or
all of such investment property and all subscription
warrants, rights or options issued thereon or with respect
thereto;
	 
	 	(o)	 	all Letter-of-Credit Rights and letters of credit
(as such term is defined in Article 5 of the Uniform
Commercial Code);
	 
	 	(p)	 	all money (of every jurisdiction whatsoever); and
	 
	 	(q)	 	to the extent not included in the foregoing, all
personal property of any kind or description;

		
	 	     together with all books, records, writings, databases, information in
whatever form and other property relating to, used or useful in
connection with, evidencing, embodying, incorporating or referring to any
of the foregoing, and all Proceeds, products, offspring, rents, issues,
profits distributions on, rights arising out of, returns of and from, and
any and all claims and/or insurance payments arising out of the loss,
nonconformity or interference with the use of, defects or infringement of
rights in, or damage to any of the foregoing; provided,
however, that to
the extent that the provisions of any lease or license of Computer
Hardware and Software or Intellectual Property prohibit (which
prohibition is enforceable under applicable law) the assignment thereof,
and the grant of a security interest therein, such Debtor’s rights in
such lease or license shall be excluded from the foregoing assignment and
grant for so long as such prohibition continues, it being
understood that
upon request of the Administrative Agent, such Debtor will in good faith
use all reasonable efforts to obtain consent for the creation of a
security interest in favor of the Administrative Agent in such Debtor’s
rights under such lease or license; and provided further, that to the
extent that the grant of a security interest by CST Member LLC in its
membership interest in 401 North Wabash LLC would constitute a violation
of the Organic Documents of 401 North Wabash LLC with respect to 1% of
the 50% in which the security interest is granted hereunder, such
interest shall be excluded from the foregoing assignment and grant to the
extent and until such time such prohibition continues.

		
	 	     Each Debtor who executed a Trademark Security Agreement dated February 7,
1996, as amended, modified or supplemented from time to time (each an
“Existing Trademark Security Agreement”) in connection with the Original
Company Security Agreement agrees and acknowledges that such Existing
Trademark Security Agreement remains in full force and effect and is
hereby ratified and confirmed and from and after the date hereof, each
reference to the Credit Agreement therein shall be deemed to be a
reference to the Amended and Restated Credit Agreement.

          3.     General Warranties. Each Debtor warrants that: (a) no financing
statement (other than any which may have been filed on behalf of or properly
assigned to the Administrative Agent or in connection with security interests
or liens expressly permitted by the Amended and Restated Credit Agreement
(“Permitted Liens”) covering any of the Collateral is

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on file in any public office; (b) such Debtor is and will be the lawful
owner of all Collateral, free of all liens and claims whatsoever, other than
the security interest created hereunder and Permitted Liens, with full power
and authority to execute this Agreement and perform such Debtor’s obligations
hereunder, and to subject the Collateral to the security interest hereunder;
(c) all written information with respect to Collateral and Account Debtors set
forth in any schedule, certificate or other writing at any time heretofore or
hereafter furnished by such Debtor to the Administrative Agent or any Lender,
and all other written information heretofore or hereafter furnished by such
Debtor to the Administrative Agent or any Lender, is and will be true and
correct in all material respects as of the date furnished; (d) such Debtor’s
true legal name as registered in the jurisdiction of such Debtor’s
organization, state of organization, organizational identification number as
designated by the state of such Debtor’s organization, chief executive office
and principal place of business are as set forth on Schedule I hereto; (e) each
other location where such Debtor maintains a place of business or where any
Collateral is located is set forth on Schedule II hereto and no Collateral is
in the possession of any bailee, warehouseman, agent or processor except as
specifically described on Schedule II hereto; (f) except as disclosed on
Schedule I, such Debtor is not now known and during the five years preceding
the date hereof has not previously been known by any trade name; (g) except as
disclosed on Schedule I, during the five years preceding the date hereof, such
Debtor has not been known by any legal name different from the one set forth on
the signature page of this Agreement; (h) (i) Schedule III hereto contains a
complete listing of all of such Debtor’s Intellectual Property which has been
registered under any registration statute, and (ii) such Debtor does not own
any patents; (i) the execution and delivery of this Agreement and the
performance by such Debtor of its obligations hereunder are within such
Debtor’s corporate powers, have been duly authorized by all necessary corporate
action, have received all necessary governmental approval (if any shall be
required), and do not and will not contravene or conflict with any provision of
law or of the organizational documents of such Debtor or of any agreement,
indenture, instrument or other document, or any judgment, order or decree,
which is binding upon such Debtor; (j) this Agreement is a legal, valid and
binding obligation of such Debtor, enforceable in accordance with its terms,
except that the enforceability of this Agreement may be limited by bankruptcy,
insolvency, fraudulent conveyance, fraudulent transfer, reorganization,
moratorium or other similar laws now or hereafter in effect relating to
creditors’ rights generally and by general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law) and creates
a valid and, except for Permitted Liens, after all appropriate financing
statements are filed, all appropriate filings are made with the U.S. Patent and
Trademark Office, and all appropriate action is taken with respect to the
Chattel Paper, the Certificated Securities and the Deposit Accounts, all of
which action has been taken, first priority security interest in the Collateral
and such security interest is entitled to all rights, priorities and benefits
afforded by the Uniform Commercial Code; (k) such Debtor is in compliance with
the requirements of all applicable laws (including, without limitation, the
provisions of the Fair Labor Standards Act), rules, regulations and orders of
every governmental authority, except for any non-compliance which would not be
reasonably likely to materially and adversely affect any material portion of
the Collateral of such Debtor; (l) such Debtor has no Commercial Tort Claims
(as defined in Section 9-102(13) of the Uniform Commercial Code Code) other
than those listed in Schedule V hereto; and (m) such Debtor maintains no
deposit accounts other than (i) those described on Schedule IV hereto, and (ii)
those in which the Debtor maintains an aggregate of no more (when aggregated
with all amounts held by all other Debtors in accounts not listed on Schedule
IV hereto) than

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8

 

     $10,000,000 during the first 90 days after the Amendment Effective Date,
and $3,000,000 at any time thereafter.

          4.     Collections,
etc. (a) Until such time as the Administrative Agent shall
notify such Debtor in writing of the revocation of such power and authority
which notification shall remain in effect only so long as any Default has
occurred and is continuing, each Debtor (i) may, in the ordinary course of its
business, at its own expense, sell, lease or furnish under contracts of service
any of the Inventory normally held by such Debtor for such purpose, and use and
consume, in the ordinary course of its business, any raw materials, work in
process or materials normally held by such Debtor for such purpose, (ii) will,
at its own expense, endeavor to collect, as and when due, all amounts due under
any of the Non-Tangible Collateral, including the taking of such action with
respect to such collection as the Administrative Agent may reasonably request
or, in the absence of such request, as such Debtor may deem advisable, and
(iii) may grant, in the ordinary course of business, to any party obligated on
any of the Non-Tangible Collateral, any rebate, refund or allowance to which
such party may be lawfully entitled, and may accept, in connection therewith,
the return of Goods, the sale or lease of which shall have given rise to such
Non-Tangible Collateral. The Administrative Agent, however, may, at any time
that a Default exists and is continuing, after first notifying the Company of
its intention to do so, whether before or after any revocation of such power
and authority or the maturity of any of the Liabilities, notify any parties
obligated on any of the Non-Tangible Collateral to make payment to the
Administrative Agent of any amounts due or to become due thereunder and enforce
collection of any of the Non-Tangible Collateral by suit or otherwise and
surrender, release or exchange all or any part thereof, or compromise or extend
or renew for any period (whether or not longer than the original period) any
indebtedness thereunder or evidenced thereby. Upon request of the
Administrative Agent during the existence of a Default, each Debtor will, at
its own expense, notify any parties obligated on any of the Non-Tangible
Collateral to make payment directly to the Administrative Agent of any amounts
due or to become due thereunder.

          (b)  During the existence of a Default, all items or amounts which are
delivered by any Debtor to the Administrative Agent on account of partial or
full payment or otherwise as proceeds of any of the Collateral shall be
deposited to the credit of a deposit account (each an “Assignee Deposit
Account”) of such Debtor with the Administrative Agent, or a bank designated by
the Administrative Agent, as security for payment of the Liabilities. No
Debtor shall have any right to withdraw any funds deposited in the applicable
Assignee Deposit Account. The Administrative Agent may, from time to time, in
its discretion, and shall upon request of the applicable Debtor made not more
than once in any week, apply all or any of the then balance, representing
collected funds, in the Assignee Deposit Account, toward payment of the
Liabilities, whether or not then due, in such order of application as the
Administrative Agent may determine, and the Administrative Agent may, from time
to time, in its discretion, release all or any of such balance to the
applicable Debtor.

          (c)  Upon the occurrence and during the continuance of a Default the
Administrative Agent is authorized to endorse, in the name of the applicable
Debtor, any item, howsoever received by the Administrative Agent, representing
any payment on or other proceeds of any of the Collateral.

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          (d)  No Debtor shall maintain any Deposit Account or deposit any items or
amounts in any Deposit Account, except: (i) Deposit Accounts maintained with
the Administrative Agent (which accounts shall, in the discretion of the
Administrative Agent, be subject to a control agreement of the type described
in clause (ii) below in form and substance acceptable to the Administrative
Agent) (ii) Deposit Accounts as to which each respective Debtor, the
Administrative Agent and the depositary bank have entered into an agreement in
form and substance acceptable to the Administrative Agent that the depositary
bank will comply with instructions originated by the Administrative Agent
directing disposition of the funds in the account without further consent by
such Debtor and (iii) other Deposit Accounts which do not contain aggregate
balances in excess of $3,000,000 at any time.

          (e)  Each Debtor hereby appoints the Administrative Agent as the
attorney-in-fact for such Debtor for the purpose of carrying out the provisions
of this Agreement and taking any action and executing or completing any
instruments which the Administrative Agent may deem reasonably necessary or
advisable to accomplish the purposes hereof, which appointment as
attorney-in-fact is irrevocable and coupled with an interest; provided that the
Administrative Agent shall not exercise its rights as such attorney in fact
unless a Default exists. Notwithstanding any other provision herein or in the
other Loan Documents, the Administrative Agent may at any time make any and all
filings deemed reasonably necessary in furtherance of this Agreement, the other
Loan Documents and the purposes hereof and thereof, including without
limitation, Uniform Commercial Code financing statements showing any Debtor
hereunder as Debtor thereunder (which financing statements may be filed in
advance of the Amendment Effective Date) in all appropriate jurisdictions,
which financing statements may describe the collateral in which a security
interest is granted by each such Debtor as “all assets” of such Debtor.

          5.     Certificates, Schedules and Reports. Each Debtor will from time to
time, as the Administrative Agent may reasonably request, deliver to the
Administrative Agent such schedules, certificates and reports respecting all or
any of the Collateral at the time subject to the security interest hereunder,
and the items or amounts received by such Debtor in full or partial payment of
any of the Collateral, as the Administrative Agent may reasonably request. Any
such schedule, certificate or report shall be executed by a duly authorized
officer of such Debtor and shall be in such form and detail as the
Administrative Agent may reasonably specify. Each Debtor shall immediately
notify the Administrative Agent of the occurrence of any event causing any loss
or depreciation in the value of its Inventory or other Goods which is material
to such Debtor, and such notice shall reasonably specify the amount of such
loss or depreciation.

          6.     Agreements
of the Debtors. (a) Each Debtor (i) will, upon request of the
Administrative Agent, execute such financing statements and other documents
(and pay the cost of filing or recording the same in all public offices
reasonably deemed appropriate by the Administrative Agent) and do such other
acts and things (including, without limitation, delivery to the Administrative
Agent of any Instruments or Certificated Securities which constitute
Collateral), all as the Administrative Agent may from time to time reasonably
request, to establish and maintain a valid and perfected security interest in
the Collateral (free of all other liens, claims and rights of third parties
whatsoever, other than Permitted Liens) to secure the payment of the
Liabilities, to enable the Administrative Agent to exercise and enforce its
rights and remedies hereunder with respect to any Collateral of such Debtor and
to provide evidence

Company Security Agreement

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that the Administrative Agent may deem reasonably necessary that all such
action has been taken; (ii) hereby authorizes the Administrative Agent to file
financing statements describing the collateral as “all property” or words of
similar import, and to file other documents without its signature (to the
extent allowed by applicable laws); (iii) shall not change its state of
organization or its name, identity or organizational structure such that any
financing statement filed to perfect the Administrative Agent’s interests under
this Agreement would become seriously misleading, unless such Debtor shall have
given the Administrative Agent not less than 30 days’ prior written notice of
such change (provided that this Section 7(a)(iii) shall not be deemed to
authorize any change or transaction prohibited under the Amended and Restated
Credit Agreement); (iv) will keep all its Collateral (other than Non-Tangible
Collateral) at, and will not maintain any place of business or locate any such
Collateral at any location other than, its address(es) shown on Schedules I and
II hereto or at such other addresses of which such Debtor shall have given the
Administrative Agent not less than 30 days’ prior written notice; (v) will keep
its records concerning the Non-Tangible Collateral in such a manner as will
enable the Administrative Agent or its designees to determine at any time the
status of the Non-Tangible Collateral; (vi) will furnish the Administrative
Agent such information concerning such Debtor, the Collateral and the Account
Debtors as the Administrative Agent may from time to time reasonably request;
(vii) will permit the Administrative Agent and its designees, from time to
time, on reasonable notice and at reasonable times and intervals during normal
business hours (or at any time without notice during the existence of a
Default) to inspect such Debtor’s Collateral, and to inspect, audit and make
copies of and extracts from all records and all other papers in the possession
of such Debtor pertaining to the Collateral and the Account Debtors, and will,
upon request of the Administrative Agent during the existence of a Default,
deliver to the Administrative Agent all of such records and papers; (viii)
will, upon request of the Administrative Agent, stamp on its records concerning
the Collateral, and add on all Chattel Paper constituting a portion of the
Collateral, a notation, in form satisfactory to the Administrative Agent, of
the security interest of the Administrative Agent hereunder; (ix) except as
permitted by the Amended and Restated Credit Agreement, will not sell, lease,
assign or create or permit to exist any lien on or security interest in any
Collateral other than Permitted Liens and liens and security interests in favor
of the Administrative Agent; (x) will at all times keep all its Collateral
insured as provided in the Amended and Restated Credit Agreement, and cause all
such policies covering such Collateral to provide that loss thereunder shall be
payable to the Administrative Agent as its interest may appear and such
policies or certificates thereof shall, if the Administrative Agent so
requests, be deposited with or furnished to the Administrative Agent; (xi) will
take such actions as are reasonably necessary to keep its Inventory in good
repair and condition, ordinary wear and tear excepted and in producing such
Inventory, shall comply with all requirements of applicable law, including,
without limitation, the Fair Labor Standards Act; (xii) will take such actions
as are reasonably necessary to keep its Equipment and other Goods used by such
Debtor in its business in good repair and condition and in good working or
running order, ordinary wear and tear excepted; (xiii) will promptly pay when
due all license fees, registration fees, taxes, assessments and other charges
which may be levied upon or assessed against the ownership, operation,
possession, maintenance, transfer or use of its Collateral (except tax contests
permitted by the Amended and Restated Credit Agreement); (xiv) will, upon
written request of the Administrative Agent, (A) cause to be noted on the
applicable certificate, in the event any of its Collateral is covered by a
certificate of title, the security interest of the Administrative Agent in the
Collateral covered thereby, and (B)

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deliver all such certificates to the Administrative Agent or its
designees; (xv) will take all steps reasonably necessary to protect, preserve
and maintain all of its rights in the Collateral; (xvi) will keep all of the
tangible Collateral, Deposit Accounts and Investment Property at the places
specified in Section 3, or upon 30 days’ prior written notice to the
Administrative Agent, at such other places designated in such notice, provided
that any such specified place shall be within the United States; (xvii) will
reimburse the Administrative Agent for all expenses, including reasonable
attorneys’ fees and legal expenses, incurred by the Administrative Agent in
seeking to collect or enforce any rights in respect of such Debtor’s
Collateral; and (xviii) will cause each insurance policy maintained by such
Debtor with respect to the Collateral to (i) name such Debtor and the
Administrative Agent as insured parties thereunder (without any representation
or warranty by or obligation upon the Administrative Agent) as their interests
may appear, (ii) contain the agreement by the insurer that any loss thereunder
shall be payable to the Administrative Agent notwithstanding any action,
inaction or breach of representation or warranty by such Debtor, (iii) provide
that there shall be no recourse against the Administrative Agent for payment of
premiums or other amounts with respect thereto and (iv) provide that at least
10 days’ prior written notice of cancellation or of lapse shall be given to the
Administrative Agent by the insurer.

          (b)  Any expenses incurred in protecting, preserving and maintaining any
Collateral shall be borne by the applicable Debtor. Whenever a Default shall
be existing, the Administrative Agent shall have the right to bring suit to
enforce any or all of the Intellectual Property or licenses thereunder and to
directly enforce against the applicable obligors all obligations with respect
to any Collateral, in which event the applicable Debtor shall at the request of
the Administrative Agent do any and all lawful acts and execute any and all
proper documents required by the Administrative Agent in aid of such
enforcement and such Debtor shall promptly, upon demand, reimburse and
indemnify the Administrative Agent for all reasonable costs and expenses
incurred by the Administrative Agent in the exercise of its rights under this
Section 7. Notwithstanding the foregoing, the Administrative Agent shall have
no obligations or liabilities regarding any of the Collateral by reason of, or
arising out of, this Agreement.

          (c)  With respect to its Intellectual Property, each Debtor agrees to
execute or otherwise authenticate an agreement, in substantially the form set
forth in Annex A hereto or otherwise in form and substance satisfactory to the
Administrative Agent (an “Intellectual Property Security Agreement”), for
recording the security interest granted hereunder to the Administrative Agent
in such Intellectual Property with the U.S. Patent and Trademark Office, the
U.S. Copyright Office and any other governmental authorities necessary to
perfect the security interest hereunder in such Intellectual Property.

          (d)  Each Debtor agrees that should it obtain an ownership interest in any
item of Intellectual Property after the date hereof (“After-Acquired
Intellectual Property”) (i) the provisions of this Agreement shall
automatically apply thereto, and (ii) any such After-Acquired Intellectual
Property and, in the case of trademarks, the goodwill symbolized thereby, shall
automatically become part of the Collateral subject to the terms and conditions
of this Agreement with respect thereto. Each Debtor shall give prompt written
notice to the Administrative Agent identifying the After-Acquired Intellectual
Property, and such Debtor shall execute and deliver to the Administrative Agent
with such written notice, or otherwise authenticate, an agreement

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substantially in the form of Annex B hereto or otherwise in form and
substance satisfactory to the Administrative Agent (an “IP Security Agreement
Supplement”) covering such After-Acquired Intellectual Property which IP
Security Agreement Supplement shall be recorded with the U.S. Patent and
Trademark Office, the U.S. Copyright Office and any other governmental
authorities necessary to perfect the security interest hereunder in such
After-Acquired Intellectual Property.

          7.     Default. (a) Whenever a Default shall be existing, the Administrative
Agent may exercise from time to time any and all rights and remedies available
to it under applicable law, in addition to those described in this Section
below. Each Debtor agrees, in case of Default, (i) to assemble, at its
expense, all its Inventory, Equipment and other Goods (other than Fixtures) at
a convenient place or places acceptable to the Administrative Agent, and (ii)
at the Administrative Agent’s request, to execute all such documents and do all
such other things which may be reasonably necessary or desirable in order to
enable the Administrative Agent or its nominee to be registered as owner of the
Intellectual Property with any competent registration authority and to
otherwise enforce its rights with respect to any Collateral. Any notification
of intended disposition of any of the Collateral required by law shall be
deemed reasonably and properly given if given at least five days before such
disposition. Any and all proceeds of any disposition by the Administrative
Agent of any of the Collateral may be applied by the Administrative Agent to
payment of expenses in connection with the Collateral, including reasonable
attorneys’ fees and legal expenses, and any balance of such proceeds may be
applied by the Administrative Agent toward the payment of such of the
Liabilities, and in such order of application, as the Administrative Agent may
from time to time elect.

          (b)  Each Debtor hereby agrees and acknowledges that a commercially
reasonable disposition of any Collateral, including, without limitation,
Inventory, Equipment, Computer Hardware and Software or Intellectual Property
may be by lease or license of, in addition to the sale of, such Collateral.
Each Debtor further agrees and acknowledges that a disposition (i) made in the
usual manner on any recognized market, (ii) at the price current in any
recognized market at the time of disposition and (iii) in conformity with
reasonable commercial practices among dealers in the type of property subject
to the disposition shall be deemed commercially reasonable.

          (c)  Each Debtor hereby appoints the Administrative Agent as such Debtor’s
attorney-in-fact, with full power and authority in the place of such Debtor and
in the name of such Debtor, in Administrative Agent’s discretion, to take any
action and to execute any instrument that it may deem necessary to accomplish
the purposes of this Agreement.

          8.     General. (a) The Administrative Agent shall be deemed to have exercised
reasonable care in the custody and preservation of any of the Collateral in its
possession if it takes such action for that purpose as any applicable Debtor
requests in writing, but failure of the Administrative Agent to comply with any
such request shall not of itself be deemed a failure to exercise reasonable
care, and no failure of the Administrative Agent to preserve or protect any
rights with respect to such Collateral against prior parties, or to do any act
with respect to the preservation of such Collateral not so requested by any
Debtor, shall be deemed of itself a failure to exercise reasonable care in the
custody or preservation of such Collateral.

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          (b)  All notices hereunder shall be in writing (including, without
limitation, facsimile transmission) and shall be sent to the applicable party
at, in the case of a Debtor other than the Company, its address set forth below
its signature on the Guaranty, and in the case of the Company and the
Administrative Agent, at its address set forth below its signature to the
Amended and Restated Credit Agreement, and in each case, at such other address
as such party may, by written notice received by the other parties hereto, have
designated as its address for such purpose. Notices sent by facsimile
transmission shall be deemed to have been given when sent; notices sent by mail
shall be deemed to have been given [three Business Days after] the date when
sent by registered or certified mail, postage prepaid [or, if earlier, when
received]; and notices sent by hand delivery shall be deemed to have been given
when received.

          (c)  Each of the Debtors agrees to indemnify, defend and save and hold
harmless the Administrative Agent, each other Lender, and each other Secured
Party and each of their Affiliates and their respective officers, directors,
employees, agents and advisors (each, an “Indemnified Party”) from and against,
and shall pay on demand, any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of
counsel) that may be incurred by or asserted or awarded against any Indemnified
Party, in each case arising out of or in connection with or resulting from this
Agreement (including, without limitation, enforcement of this Agreement),
except to the extent such claim, damage, loss, liability or expense is found in
a final, non-appealable judgment by a court of competent jurisdiction to have
resulted from such Indemnified Party’s gross negligence or willful misconduct.
Each of the Debtors agrees to pay all reasonable expenses (including reasonable
attorney’s fees and legal expenses) paid or incurred by the Administrative
Agent, any Lender or any other Secured Party in endeavoring to collect the
Liabilities of such Debtor, or any part thereof, and in connection with (i) the
administration of this Agreement, (ii) the custody, preservation, use or
operation of, or the sale of, collection from or other realization upon, any of
the Collateral of such Debtor, (iii) the exercise or enforcement of any of the
rights of the Administrative Agent, the other Lenders, or the other Secured
Parties hereunder or (iv) the failure by such Debtor to perform or observe any
of the provisions hereof, and such obligations will themselves be Liabilities.

          (d)  No delay on the part of the Administrative Agent in the exercise of
any right or remedy shall operate as a waiver thereof, and no single or partial
exercise by the Administrative Agent of any right or remedy shall preclude
other or further exercise thereof or the exercise of any other right or remedy.

          (e)  This Security Agreement shall remain in full force and effect until
all Liabilities have been paid in full and all Commitments, Letters of Credit
and Hedging Agreements entered into with a Lender or an affiliate thereof have
terminated. If at any time all or any part of any payment theretofore applied
by the Administrative Agent or any Lender to any of the Liabilities is or must
be rescinded or returned by the Administrative Agent or such Lender for any
reason whatsoever (including, without limitation, the insolvency, bankruptcy or
reorganization of any Debtor), such Liabilities shall, for the purposes of this
Agreement, to the extent that such payment is or must be rescinded or returned,
be deemed to have continued in existence, notwithstanding such application by
the Administrative Agent or such Lender, and this Agreement shall continue to
be effective or be reinstated, as the case may be, as to such

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Liabilities, all as though such application by the Administrative Agent or
such Lender had not been made.

          (f)  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

          (g)  The rights and privileges of the Administrative Agent hereunder shall
inure to the benefit of its successors and assigns.

          (h)  This Agreement may be executed in any number of counterparts and by
the different parties hereto on separate counterparts, and each such
counterpart shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement. Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of an original executed counterpart of this Agreement.

          (i)  No amendment or waiver of any provision of this Agreement, and no
consent to any departure by any Debtor herefrom, shall in any event be
effective unless the same shall be in writing and signed by the Administrative
Agent, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given. No failure on the part
of the Administrative Agent, any other Lender or any other Secured Party to
exercise, and no delay in exercising any right hereunder, shall operate as a
waiver thereof; nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other
right.

          (j)  At any time after the date of this Agreement, one or more additional
persons or entities may become parties hereto by executing and delivering to
the Administrative Agent a counterpart of this Agreement. Immediately upon
such execution and delivery (and without any further action), each such
additional person or entity will become a party to, and will be bound by all
the terms of, this Agreement.

          (k)  The obligations of each Debtor under this Agreement are independent of
the Secured Obligations or any other Obligations of any other Obligor under or
in respect of the Loan Documents, and a separate action or actions may be
brought and prosecuted against each Debtor to enforce this Agreement,
irrespective of whether any action is brought against such Debtor or any other
Obligor or whether such Debtor or any other Obligor is joined in any such
action or actions. All rights of the Administrative Agent, the other Lenders,
and the other Secured Parties and the pledge, assignment and security interest
hereunder, and all obligations of each Debtor hereunder, shall be irrevocable,
absolute and unconditional irrespective of, and each hereby irrevocably waives
(to the maximum extent permitted by applicable law) any defenses it may now
have or may hereafter acquire in any way relating to, any or all of the
following:

Company Security Agreement

15

 

	 	(i)	 	any lack of validity or enforceability of any Loan Document or
any other agreement or instrument relating thereto;
	 
	 	(ii)	 	any change in the time, manner or place of payment of, or in
any other term of, all or any of the Secured Obligations or any other
Obligations of any other Obligor under or in respect of the Loan
Documents or any other amendment or waiver of or any consent to any
departure from any Loan Document, including, without limitation, any
increase in the Secured Obligations resulting from the extension of
additional credit to any Obligor or any of its Subsidiaries or otherwise;
	 
	 	(iii)	 	any taking, exchange, release or non-perfection of any
Collateral or any other collateral, or any taking, release or amendment
or waiver of or consent to departure from any guaranty, for all or any of
the Secured Obligations;
	 
	 	(iv)	 	any manner of application of any Collateral or any other
collateral, or proceeds thereof, to all or any of the Secured
Obligations, or any manner of sale or other disposition of any Collateral
or any other collateral for all or any of the Secured Obligations or any
other Obligations of any other Obligor under or in respect of the Loan
Documents or any other assets of any Obligor or any of its Subsidiaries;
	 
	 	(v)	 	any change, restructuring or termination of the corporate
structure or existence of any Obligor or any of its Subsidiaries;
	 
	 	(vi)	 	any failure of any Secured Party to disclose to any Obligor any
information relating to the business, condition (financial or otherwise),
operations, performance, assets, nature of assets, liabilities or
prospects of any other Obligor now or hereafter known to such Secured
Party (each Debtor waiving any duty on the part of the Secured Parties to
disclose such information);
	 
	 	(vii)	 	the failure of any other Person to execute this Agreement or
any other Collateral Document, guaranty or agreement or the release or
reduction of liability of any Debtor or other grantor or surety with
respect to the Secured Obligations; or
	 
	 	(viii)	 	any other circumstance (including, without limitation, any
statute of limitations) or any existence of or reliance on any
representation by any Secured Party that might otherwise constitute a
defense available to, or a discharge of, such Grantor or any other
Grantor or a third party grantor of a security interest.

     (l)  This Agreement shall continue to be effective or be reinstated, as the
case may be, if at any time any payment of any of the Secured Obligations is
rescinded or must otherwise be returned by any Secured Party or by any other
Person upon the insolvency, bankruptcy or reorganization of any Obligor or
otherwise, all as though such payment had not been made.

     (m)  ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED,
HOWEVER,

Company Security Agreement

16

 

THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY
MAY BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF ANY
JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH DEBTOR
HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF
THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE.
EACH DEBTOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY
REGISTERED MAIL, POSTAGE PREPAID, TO THE ADDRESS SET FORTH ON SCHEDULE I HERETO
(OR SUCH OTHER ADDRESS AS IT SHALL HAVE SPECIFIED IN WRITING TO THE
ADMINISTRATIVE AGENT AS ITS ADDRESS FOR NOTICES HEREUNDER) OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH DEBTOR HEREBY EXPRESSLY
AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY
SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

          (n)  EACH DEBTOR, THE ADMINISTRATIVE AGENT AND (BY ACCEPTING THE BENEFITS
HEREOF) EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR
WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR
ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE
FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE
A COURT AND NOT BEFORE A JURY.

          (o)  All payments to be made by any Debtor to any person hereunder shall be
made free and clear of, and without deduction or withholding for or on account
of, tax unless such Debtor is required by law to make such a payment subject to
the deduction or withholding of tax, in which case the sum payable by such
Debtor in respect of which such deduction or withholding is required to be made
shall be increased to the extent necessary to ensure that, after the making of
such deduction or withholding, such person receives and retains (free from any
liability in respect of any such deduction or withholding) a net sum equal to
the sum which it would have received and so retained had no such deduction or
withholding been made or required to be made.

          (p)  The obligations of each Debtor, in respect of any sum due to the
Administrative Agent or any Lender hereunder shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than the currency in
which such sum was originally denominated (the “Original Currency”), be
discharged only to the extent that following receipt by the Administrative
Agent or such Lender of any sum adjudged to be so due in the Judgment Currency,
the Administrative Agent or such Lender, in accordance with normal banking
procedures, purchases the Original Currency with the Judgment Currency. If the
amount of

Company Security Agreement

17

 

Original Currency so purchased is less than the sum originally due to the
Administrative Agent or such Lender, such Debtor agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the
Administrative Agent or such Lender, as the case may be, against such loss, and
if the amount of Original Currency so purchased exceeds the sum originally due
to the Administrative Agent or such Lender, as the case may be, the
Administrative Agent or such Lender agrees to remit such excess to such Debtor.

Company Security Agreement

18

 

          IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as
of the day and year first written above.

	 	 
	 
	 	ALLIANCE NEWS INC.

AMERICAN PUBLISHING (1991) INC.

AMERICAN PUBLISHING COMPANY

AMERICAN PUBLISHING COMPANY OF NEW YORK

APAC-90 OKLAHOMA HOLDINGS, INC.

APAC-95 OKLAHOMA HOLDINGS, INC.

APC 1993, INC.

APMS-93 INC.

CHICAGO GROUP ACQUISITION INC.

CHICAGO SUN-TIMES FEATURES, INC.

CHICAGO SUN-TIMES, INC.

DIGITAL CHICAGO INC.

FOX VALLEY PUBLICATIONS, INC.

HOLLINGER INTERNATIONAL PUBLISHING INC.

HOLLINGER NCI HOLDINGS, LLC

HTH BENHOLDCO LLC

HTH HOLDINGS INC.

LHAT CORPORATION

MIDWEST SUBURBAN PUBLISHING, INC.

PIONEER NEWSPAPERS INC.

REACH CHICAGO INC.

SUN TELEMARKETING INC.

SUN-TIMES DISTRIBUTION SYSTEMS, INC.

SUN-TIMES PRD INC.

TAHL (2002) INC.

TELEGRAPH AUSTRALIAN HOLDINGS LIMITED

THE JOHNSTOWN TRIBUNE PUBLISHING COMPANY

THE POST-TRIBUNE COMPANY

THE RED STREAK HOLDING COMPANY

THE SUN-TIMES COMPANY

VALLEY CABLE TV, INC
	 

	 	 	 
	 
	 
	 	By:	

	 	Name:	

	 	Title:	

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629

	 	 
	 	Attention:

Company Security Agreement

 

	 	 	 
	 	OKLAHOMA AIRPLANE LLC
	 
	 	By:  APAC-95 Oklahoma
Holdings, Inc., its Manager
	 
	 
	 
	 	By:	

	 	Name:	

	 	Title:	

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629
	 
	 	Attention:

	 	 	 
	 	CST MEMBER LLC
	 
	 	By:  Chicago Sun-Times, Inc., its Manager
	 
	 
	 
	 	By:	

	 	Name:	

	 	Title:	

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629
	 
	 	Attention:

Company Security Agreement

 

	 	 	 
	 	HGP, PARTNERSHIP
	 
	 	By:  Hollinger International Publishing Inc., general partner
	 
	 
	 
	 	By:	

	 	Name:	

	 	Title:	

	 
	 
	 	By:  The Johnstown Tribune Company, its general partner
	 
	 
	 	By:	

	 	Name:	

	 	Title:	

	 	 	 
	 	Address:	401 North Wabash Avenue
	 	 	Chicago, Illinois 60611
	 
	 	Facsimile No.:	(312) 321-0629
	 
	 	Attention:

	 	 	 
	 	WACHOVIA BANK, N.A. as Administrative Agent
	 
	 
	 
	 	By:	

	 	Name:	

	 	Title:	

	 	 	 
	 	Address:	One Wachovia Center,

301 South College Street

Charlotte, NC 28288-0604
	 
	 	Facsimile No.:	(704) 374-4092
	 
	 	Attention:	Joe Mynatt

Company Security Agreement

 

	 	 	 
	 	The undersigned is executing a counterpart of this Third Amended and Restated Security Agreement dated as of                , 2002 for purposes of becoming a party hereto and represents and warrants that the information on the attached Schedules is true and correct as to the undersigned:
	 
	 	

	 
	 
	 	By:	

	 	Name:	

	 	Title:	

	 
	 	Date:	

Company Security Agreement

 

 

 

 

 

 

 

SCHEDULE I
TO SECURITY AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 
							Other Names in Prior 5
							Years (whether as
							result of name change,
					State		merger or other
					Organization		corporate
	Legal Name and Chief Executive Office1		State of Organization		Number		reorganization)
	
		
		
		

	
    
    Hollinger International Publishing
    Inc. 

    	 	 	Delaware	 	 	 	2569811	 	 	 	 	 
	
    
    Alliance News Inc. 

    	 	 	Delaware	 	 	 	3045110	 	 	 	 	 
	
    
    American Publishing (1991) Inc. 

    	 	 	Delaware	 	 	 	2107464	 	 	 	 	 
	
    
    American Publishing Company
    

    	 	 	Delaware	 	 	 	2547829	 	 	 	 	 
	
    
    American Publishing Company of New York
    

    	 	 	Delaware	 	 	 	2136253	 	 	 	 	 
	
    
    APAC-90 Oklahoma Holdings, Inc. 

    	 	 	Delaware	 	 	 	2264361	 	 	 	 	 

		
	1 	
    Unless otherwise noted, the Chief Executive
    Office for each company is 401 North Wabash, Chicago, Cook
    County, Illinois 60611
    

 

 

 

 

Company Security Agreement

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
							Other Names in Prior 5
							Years (whether as
							result of name change,
					State		merger or other
					Organization		corporate
	Legal Name and Chief Executive Office1		State of Organization		Number		reorganization)
	
		
		
		

	
    
    APAC-95 Oklahoma Holdings, Inc. 

    	 	 	Delaware	 	 	 	2540865	 	 	 	 	 
	
    
    APC 1993, Inc. 

    	 	 	Illinois	 	 	 	2365506	 	 	 	 	 
	
    
    APMS-93 Inc. 

    	 	 	Illinois	 	 	 	5761-533-8	 	 	 	 	 
	
    
    Chicago Group Acquisition Inc. 

    	 	 	Illinois	 	 	 	3058295	 	 	 	 	 
	
    
    Chicago Sun-Times Features, Inc. 

    	 	 	Delaware	 	 	 	2127172	 	 	 	 	 
	
    
    Chicago Sun-Times, Inc. 

    	 	 	Delaware	 	 	 	2092698	 	 	 	 	 
	
    
    CST Member LLC
    

    	 	 	Delaware	 	 	 	3477657	 	 	 	 	 
	
    
    Digital Chicago Inc.
    

    	 	 	Illinois	 	 	 	5971-909-2	 	 	 	 	 
	
    
    Fox Valley Publications, Inc.
    

    	 	 	Delaware	 	 	 	2181758	 	 	American Publishing Company of Arkansas (name changed in 2000)
	
    
    HGP, Partnership
    

    	 	 	New York	 	 	 	Not applicable	 	 	 	 	 
	
    
    Hollinger NCI Holdings, LLC
    

    	 	 	Delaware	 	 	 	3539939	 	 	 	 	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
							Other Names in Prior 5
							Years (whether as
							result of name change,
					State		merger or other
					Organization		corporate
	Legal Name and Chief Executive Office1		State of Organization		Number		reorganization)
	
		
		
		

	
    
    HTH Benholdco LLC
    

    	 	 	Delaware	 	 	 	2680034	 	 	 	 	 
	
    
    HTH Holdings Inc. 

    	 	 	Delaware	 	 	 	2674588	 	 	 	 	 
	
    
    LHAT Corporation
    

    	 	 	Delaware	 	 	 	3035932	 	 	 	 	 
	
    
    Midwest Suburban Publishing, Inc. 

    	 	 	Delaware	 	 	 	2085017	 	 	Daily Southtown Inc. (name changed in 1997)
	
    
    Oklahoma Airplane LLC 

    	 	 	Delaware	 	 	 	2870503	 	 	 	 	 
	
    
    Pioneer Newspapers Inc. 

    	 	 	Delaware	 	 	 	2180338	 	 	 	 	 
	
    
    Reach Chicago Inc. 

    	 	 	Delaware	 	 	 	3031486	 	 	 	 	 
	
    
    Sun Telemarketing Inc. 

    	 	 	Delaware	 	 	 	3544406	 	 	 	 	 
	
    
    Sun-Times Distribution Systems, Inc. 

    	 	 	Delaware	 	 	 	2137843	 	 	 	 	 
	
    
    Sun-Times PRD Inc. 

    	 	 	Delaware	 	 	 	2811272	 	 	APC Wishingwell Inc. (Name changed in 1998)
	
    
    TAHL (2002) Inc. 

    	 	 	Delaware	 	 	 	3509180	 	 	 	 	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
							Other Names in Prior 5
							Years (whether as
							result of name change,
					State		merger or other
					Organization		corporate
	Legal Name and Chief Executive Office1		State of Organization		Number		reorganization)
	
		
		
		

	
    
    Telegraph Australian Holdings Limited
    

    	 	 	Delaware	 	 	 	2846617	 	 	 	 	 
	
    
    The Johnstown Tribune Publishing Company
    

    	 	 	Delaware	 	 	 	2086038	 	 	 	 	 
	
    
    The Post-Tribune Company
    

    	 	 	Delaware	 	 	 	2148386	 	 	American Publishing Company of Illinois (name changed in 2001)
	
    
    The Red Streak Holdings Company
    

    	 	 	Delaware	 	 	 	3375368	 	 	Sun Pioneer Inc.
(name changed in 2002)
	
    
    The Sun-Times Company
    

    	 	 	Delaware	 	 	 	2092697	 	 	 	 	 
	
    
    Valley Cable TV, Inc.
    

    	 	 	California	 	 	 	1678363	 	 	 	 	 

 

SCHEDULE II

TO SECURITY AGREEMENT

Principal Places of Business (other than Chief
Executive Office) and

Other Locations where Collateral is
Located

1.     Midwest Suburban
Publishing, Inc.

		
	 	
    5959 South Harlem, Chicago, Illinois
    
	 
	 	
    6901 W. 159th Street, Tinley Park,
    Illinois
    

2.     Fox Valley
Publications, Inc.

		
	 	
    3101 N. Route 30, Plainfield, Illinois, 60544
    
	 
	 	
    101 S. River Street, Aurora, Illinois, 60506
    
	 
	 	
    300 Lake Street, Elgin, Illinois, 60120
    
	 
	 	
    300 Caterpillar Drive, Joliet, Illinois, 60436
    
	 
	 	
    2383 Delany Road, Waukegan, Illinois, 60085
    
	 
	 	
    1500 W. Ogden Avenue, Naperville, Illinois, 60540
    

3.     Chicago
Sun-Times, Inc.

		
	 	
    132 East Delaware #4801, Chicago, Illinois
    
	 
	 	
    2800 S. Ashland Avenue, Chicago, Illinois
    
	 
	 	
    930 Lee Street, Elk Grove, Illinois
    

4.     Pioneer
Newspapers Inc. (d/b/a Pioneer Press Newspaper)

		
	 	
    8701 West Lake Avenue, Glenview Illinois
    
	 
	 	
    130 South Prospect, Park Ridge, Illinois
    
	 
	 	
    440 East Ogden, Hinsdale, Illinois
    
	 
	 	
    850 North Milwaukee, Vernon Hills, Illinois
    

 

5.     Hollinger
International Inc.

		
	 	
     712 5th Avenue, 18th
    Floor, New York, New York
    
	 
	 	
     635 Park Avenue, 1st Floor, New York,
    New York
    

Company Security Agreement

 

SCHEDULE III
TO SECURITY AGREEMENT

PATENTS

None.

 

TRADEMARKS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			Registration				Expiration		
	Trademark Name		Number		Type		Date		Entity Owner
	
		
		
		
		

	
    
    To Your Good Health
    

    	 	 	831,085	 	 	 	US	 	 	 	2007	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    All That Zazz
    

    	 	 	1,521,762	 	 	 	US	 	 	 	2009	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Between the Lines
    

    	 	 	80,597	 	 	 	IL	 	 	 	2007	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Chicago Daily News
    

    	 	 	084817	 	 	 	IL	 	 	 	2005	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Chicago Sun-Times
    

    	 	 	1442078	 	 	 	IL	 	 	 	2007	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Digital Chicago
    

    	 	 	2,398,173	 	 	 	US	 	 	 	2020	 	 	
    Digital Chicago Inc.
    
	
    
    Digital Chicago
    

    	 	 	084855	 	 	 	IL	 	 	 	2005	 	 	
    Digital Chicago Inc.
    
	
    
    Elite
    

    	 	 	085171	 	 	 	IL	 	 	 	2005	 	 	
    Midwest Suburban Publishing Inc.
    
	
    
    H Logo
    

    	 	 	75/174,624	 	 	 	US	 	 	 	2006	 	 	
    Hollinger Intl.
    
	
    
    Hollinger Digital
    

    	 	 	2,271,219	 	 	 	US	 	 	 	2009	 	 	
    Hollinger Intl.
    
	
    
    Hollinger International
    

    	 	 	2149847	 	 	 	US	 	 	 	2006	 	 	
    Hollinger Intl.
    
	
    
    Hollinger International
    

    	 	 	2107696	 	 	 	UK & IRL	 	 	 	2006	 	 	
    Hollinger Intl.
    
	
    
    Quick Takes
    

    	 	 	084603	 	 	 	IL	 	 	 	2005	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Red Streak
    

    	 	 	pending	 	 	 	IL	 	 	 	 	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Sun-Times
    

    	 	 	966535	 	 	 	US	 	 	 	2003	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    T.V. Prevue
    

    	 	 	979443	 	 	 	US	 	 	 	2004	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    The Smart Shopper
    

    	 	 	048969	 	 	 	IL	 	 	 	2005	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Between the lines
    

    	 	 	2,200,687	 	 	 	US	 	 	 	 	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Zipnet
    

    	 	 	1,789,918	 	 	 	US	 	 	 	 	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    City Scene
    

    	 	 	79,687	 	 	 	IL	 	 	 	 	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Beat the Champions
    

    	 	 	50,512	 	 	 	IL	 	 	 	 	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Hollinger Digital
    

    	 	 	2,107,801	 	 	 	UK	 	 	 	 	 	 	
    Hollinger International Inc.
    

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			Registration				Expiration		
	Trademark Name		Number		Type		Date		Entity Owner
	
		
		
		
		

	
    
    Hollinger
    

    	 	 	TMA 564,852	 	 	 	CA	 	 	 	 	 	 	
    Chicago Sun-Times, Inc.
    
	
    
    Digital New York
    

    	 	 	75/632,168	 	 	 	US	 	 	 	 	 	 	
    Digital Chicago, Inc.
    
	
    
    Antioch Review
    

    	 	 	2,284,093	 	 	 	US	 	 	 	 	 	 	
    Pioneer Newspapers Inc.
    
	
    
    Senior Class
    

    	 	 	2,261,700	 	 	 	US	 	 	 	 	 	 	
    Pioneer Newspapers Inc.
    
	
    
    North Shore and design
    

    	 	 	1,311,035	 	 	 	US	 	 	 	 	 	 	
    Pioneer Newspapers Inc.
    
	
    
    The Evanston Review stylized letters
    

    	 	 	261,511	 	 	 	US	 	 	 	 	 	 	
    Pioneer Newspapers Inc.
    
	
    
    Wilmette Life stylized letters
    

    	 	 	261,512	 	 	 	US	 	 	 	 	 	 	
    Pioneer Newspapers Inc.
    
	
    
    Winnetka Talk
    

    	 	 	261,513	 	 	 	US	 	 	 	 	 	 	
    Pioneer Newspapers Inc.
    
	
    
    Glencoe News
    

    	 	 	261,333	 	 	 	US	 	 	 	 	 	 	
    Pioneer Newspapers Inc.
    

 

COPYRIGHTS

	 	 	 	 	 	 	 	 	 	 	 
	Name		Reg. No.		Reg. Date		Owner
	
		
		
		

	
    
    Ask pling anything
    

    	 	 	VA628098	 	 	 	September 13, 1993	 	 	
    Chicago Sun-Times Features, Inc.
    
	
    
    Ask pling anything
    

    	 	 	VA628097	 	 	 	September 14, 1993	 	 	
    Chicago Sun-Times Features, Inc.
    
	
    
    Ask pling anything
    

    	 	 	VA628096	 	 	 	September 14, 1993	 	 	
    Chicago Sun-Times Features, Inc.
    
	
    
    Ask Pling Anything
    

    	 	 	VA628095	 	 	 	September 14, 1993	 	 	
    Chicago Sun-Times Features, Inc.
    
	
    Chicago Sun-Times Metro

    Chicago Almanac: fascinating facts and offbeat offerings about
    the Windy City/Don Hayner and Tom McNamee
    	 	 	TX3653506	 	 	 	July 14, 1993	 	 	
    Chicago Sun-Times Features, Inc.
    
	
    Chicago Sun-Times Metro

    Chicago Almanac: fascinating facts and offbeat offerings about
    the Windy City/Don Hayner and Tom McNamee
    	 	 	TX3230719	 	 	 	January 21, 1992	 	 	
    Chicago Sun-Times Inc. and Bonus Books, Inc.
    
	
    
    Chicago Sun-Times
    

    	 	 	 	 	 	 	 	 	 	
    Chicago Sun-Times, Inc. (assigned from Newscorp
    Services, B.V.)
    
	
    CAWTS-CAWT table     construction utility
    	 	 	TX1117677	 	 	 	April 18, 1983	 	 	
    Chicago Sun-Times, Inc. (assigned from Newscorp
    Services, B.V.)
    

 

SCHEDULE IV
TO SECURITY AGREEMENT

DEPOSIT ACCOUNTS

LA SALLE NATIONAL BANK

US Dollars:

	 	 	 	 	 
	
    
    The Sun-Times Company — Main
    Concentration Account
    

    	 	 	2335939	 
	
    
    Chicago Sun-Times Inc. — Accounts
    Payable
    

    	 	 	5800384538	 
	
    
    Chicago Sun-Times Inc. — Depository
    

    	 	 	5800384520	 
	
    
    Chicago Sun-Times Inc. —
    ATM — Depository
    

    	 	 	2335642	 
	
    
    Pioneer Newspaper Inc. — Depository
    

    	 	 	5800322280	 
	
    
    Midwest Suburban Publishing, Inc. —
    Depository
    

    	 	 	5800322298	 
	
    
    Fox Valley Publications, Inc. —
    Depository
    

    	 	 	5800322306	 
	
    
    Lerner (a division of Midwest Suburban
    Publishing, Inc.) — Depository
    

    	 	 	5800322314	 
	
    
    Chicago Sun-Times Inc. — Payroll
    

    	 	 	5800322322	 
	
    
    Pioneer Newspapers Inc. — Payroll
    

    	 	 	2294106	 
	
    
    Midwest Suburban Publishing, Inc. —
    Payroll
    

    	 	 	5800384579	 
	
    
    Fox Valley Publications, Inc. — Payroll
    

    	 	 	5800384504	 
	
    
    Doings (a division of Chicago Group Acquisition
    Inc.) — Payroll
    

    	 	 	5800384512	 
	
    
    Midwest Suburban Publishing, Inc. —
    Payroll
    

    	 	 	5800384579	 
	
    
    Hollinger International Publishing
    Inc. — Trust
    

    	 	 	038933800	 

 

SCHEDULE V

TO SECURITY AGREEMENT

COMMERCIAL TORT CLAIMS

None.

 

Company Security Agreement

 

 

Annex A to the

Security Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT

          This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “IP
Security Agreement”) dated December ____, 2002 is made by the Persons listed on
the signature pages hereof (collectively, the “Grantors”) in favor of Wachovia
Bank, N.A. as administrative agent (the “Administrative Agent”) for the Secured
Parties (as defined in the Security Agreement referred to below).

          WHEREAS, Hollinger International Publishing Inc., a Delaware corporation,
and certain of its affiliates entered into a Fifth Amended and Restated Credit
Agreement, dated as of December 23, 2002, (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
with the Administrative Agent, Wachovia Securities, Inc., as sole lead arranger
and book runner, and the Lenders party thereto. Terms defined in the Credit
Agreement and not otherwise defined herein are used herein as defined in the
Credit Agreement.

          WHEREAS, as a condition precedent to the extensions of credit by the
Administrative Agent, the other Lenders and the other Secured Parties under the
Credit Agreement from time to time, each Grantor has executed and delivered
that certain Company Security Agreement dated December 1, 2002 made by the
Grantors to the Administrative Agent (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Security
Agreement”).

          WHEREAS, under the terms of the Security Agreement, the Grantors have
granted to the Administrative Agent, for the ratable benefit of the Secured
Parties, a security interest in, among other property, certain intellectual
property of the Grantors, and have agreed as a condition thereof to execute
this IP Security Agreement for recording with the U.S. Patent and Trademark
Office, the United States Copyright Office and other governmental authorities.

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each Grantor agrees as follows:

          SECTION 1. Grant of Security. Each Grantor hereby grants to the
Administrative Agent for the ratable benefit of the Secured Parties a security
interest in all of such Grantor’s right, title and interest in and to the
following (the “Collateral”):

	 	(i)	 	the patents and patent applications set forth in Schedule A
hereto (the “Patents”);
	 
	 	(ii)	 	the trademark and service mark registrations and applications
set forth in Schedule B hereto (provided that no security interest
shall be granted in United States intent-to-use trademark
applications to the extent that, and solely during the period in
which, the grant of a security interest therein would impair the
validity or enforceability of such intent-to-use trademark
applications under applicable federal law), together with the
goodwill symbolized thereby (the “Trademarks”);

Company Security Agreement

 

 

	 	(iii)	 	all copyrights, whether registered or unregistered, now
owned or hereafter acquired by such Grantor, including, without
limitation, the copyright registrations and applications and
exclusive copyright licenses set forth in Schedule C hereto (the
“Copyrights”);
	 
	 	(iv)	 	all reissues, divisions, continuations,
continuations-in-part, extensions, renewals and reexaminations of
any of the foregoing, all rights in the foregoing provided by
international treaties or conventions, all rights corresponding
thereto throughout the world and all other rights of any kind
whatsoever of such Grantor accruing thereunder or pertaining
thereto;
	 
	 	(v)	 	any and all claims for damages and injunctive relief for
past, present and future infringement, dilution, misappropriation,
violation, misuse or breach with respect to any of the foregoing,
with the right, but not the obligation, to sue for and collect, or
otherwise recover, such damages; and
	 
	 	(vi)	 	any and all proceeds of, collateral for, income, royalties
and other payments now or hereafter due and payable with respect to,
and supporting obligations relating to, any and all of the
Collateral of or arising from any of the foregoing.

          SECTION 2. Security for Obligations. The grant of a security interest in,
the Collateral by each Grantor under this IP Security Agreement secures the
payment of all Obligations of such Grantor and the other Obligors now or
hereafter existing under or in respect of the Loan Documents, whether direct or
indirect, absolute or contingent, and whether for principal, reimbursement
obligations, interest, premiums, penalties, fees, indemnifications, contract
causes of action, costs, expenses or otherwise. Without limiting the
generality of the foregoing, this IP Security Agreement secures, as to each
Grantor, the payment of all amounts that constitute part of the Secured
Obligations and that would be owed by such Grantor to any Secured Party under
the Loan Documents but for the fact that such Secured Obligations are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving an Obligor.

          SECTION 3. Recordation. Each Grantor authorizes and requests that the
Register of Copyrights, the Commissioner for Patents and the Commissioner for
Trademarks and any other applicable government officer record this IP Security
Agreement.

          SECTION 4. Execution in Counterparts. This IP Security Agreement may be
executed in any number of 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.

          SECTION 5. Grants, Rights and Remedies. This IP Security Agreement has
been entered into in conjunction with the provisions of the Security Agreement.
Each Grantor does hereby acknowledge and confirm that the grant of the
security interest hereunder to, and the rights and remedies of, the
Administrative Agent with respect to the Collateral are more fully set forth in
the Security Agreement, the terms and provisions of which are incorporated
herein by reference as if fully set forth herein

Company Security Agreement

 

 

          SECTION 6. Assignment of Security. Toronto Dominion (Texas), Inc., as
administrative agent under the Existing Credit Agreement (as defined in the
Security Agreement), hereby transfers and assigns to the Administrative Agent
for the benefit of itself and the other Lenders and Secured Parties all of its
security interests and other rights in and to the Collateral.

          SECTION 7. Governing Law. This IP Security Agreement shall be governed
by, and construed in accordance with, the laws of the State of New York.

Company Security Agreement

 

 

          IN WITNESS WHEREOF, each Grantor has caused this IP Security Agreement to
be duly executed and delivered by its officer thereunto duly authorized as of
the date first above written.

	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	TORONTO DOMINION (TEXAS), INC.
	 
	 	 	
By
	 	 

Name:
	 	 	 	 	Title:
	 
	 	 	 	 	 
	 
	 	 	Address for Notices:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

	 
	 	 	 
	 
	 	 	[NAME OF BORROWER]
	 
	 	 	
By
	 	 

Name:
	 	 	 	 	Title:
	 
	 	 	 	 	 
	 
	 	 	Address for Notices:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

	 
	 	 	 	 	 
	 
	 	 	[NAME OF GRANTOR]
	 
	 	 	
By
	 	 

Name:
	 	 	 	 	Title:
	 
	 	 	 	 	 
	 
	 	 	Address for Notices:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

Company Security Agreement

 

 

	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	[NAME OF GRANTOR]
	 
	 	 	
By
	 	 

Name:
	 	 	 	 	Title:
	 
	 	 	 	 	 
	 
	 	 	Address for Notices:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

	 
	 	 	[ETC.]

Company Security Agreement

 

 

Annex B to the

Security Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT

          This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT (this “IP
Security Agreement Supplement”) dated ______, ______, is made by the Person
listed on the signature page hereof (the “Grantor”) in favor of
______ (“______”), as collateral agent (the
“Collateral Agent”) for the Secured Parties (as defined in the Security
Agreement referred to below).

          WHEREAS, Hollinger International Publishing Inc., a Delaware corporation,
and certain of its affiliates entered into a Fifth Amended and Restated Credit
Agreement, dated as of December 23, 2002, (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
with the Administrative Agent, Wachovia Securities, Inc., as sole lead arranger
and book runner, and the Lenders party thereto. Terms defined in the Credit
Agreement and not otherwise defined herein are used herein as defined in the
Credit Agreement.

          WHEREAS, pursuant to the Credit Agreement, the Grantor and certain other
Persons have executed and delivered that certain Security Agreement dated
December ______, 2002 made by the Grantor and such other Persons to the Collateral
Agent (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Security Agreement”) and that certain Intellectual
Property Security Agreement dated ______ , ______ (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “IP
Security Agreement”).

          WHEREAS, under the terms of the Security Agreement, the Grantor has
granted to the Administrative Agent, for the ratable benefit of the Secured
Parties, a security interest in the Additional Collateral (as defined in
Section 1 below) of the Grantor and has agreed as a condition thereof to
execute this IP Security Agreement Supplement for recording with the U.S.
Patent and Trademark Office, the United States Copyright Office and other
governmental authorities.

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Grantor agrees as follows:

          SECTION 1. Grant of Security. Each Grantor hereby grants to the
Administrative Agent, for the ratable benefit of the Secured Parties, a
security interest in all of such Grantor’s right, title and interest in and to
the following (the “Collateral”):

	 	     (i)	 	the patents and patent applications set forth in Schedule A
hereto (the “Patents”);
	 
	 	     (ii)	 	the trademark and service mark registrations and applications
set forth in Schedule B hereto (provided that no security interest
shall be granted in United States intent-to-use trademark
applications to the extent that, and solely during the period in
which, the grant of a security interest therein would impair the
validity or enforceability of such intent-to-use trademark
applications under applicable federal law), together with the
goodwill symbolized thereby (the “Trademarks”);

Company Security Agreement

 

 

	 	     (iii)	 	the copyright registrations and applications and exclusive
copyright licenses set forth in Schedule C hereto (the
“Copyrights”);
	 
	 	     (iv)	 	all reissues, divisions, continuations,
continuations-in-part, extensions, renewals and reexaminations of
any of the foregoing, all rights in the foregoing provided by
international treaties or conventions, all rights corresponding
thereto throughout the world and all other rights of any kind
whatsoever of such Grantor accruing thereunder or pertaining
thereto;
	 
	 	     (v)	 	all any and all claims for damages and injunctive relief for
past, present and future infringement, dilution, misappropriation,
violation, misuse or breach with respect to any of the foregoing,
with the right, but not the obligation, to sue for and collect, or
otherwise recover, such damages; and
	 
	 	     (vi)	 	any and all proceeds of, collateral for, income, royalties
and other payments now or hereafter due and payable with respect to,
and supporting obligations relating to, any and all of the foregoing
or arising from any of the foregoing.

          SECTION 2. Supplement to Security Agreement. Schedule III to the Security
Agreement is, effective as of the date hereof, hereby supplemented to add to
such Schedule the Additional Collateral.

          SECTION 3. Security for Obligations. The grant of a security interest in
the Additional Collateral by the Grantor under this IP Security Agreement
Supplement secures the payment of all Obligations of the Grantor now or
hereafter existing under or in respect of the Loan Documents, whether direct or
indirect, absolute or contingent, and whether for principal, reimbursement
obligations, interest, premiums, penalties, fees, indemnifications, contract
causes of action, costs, expenses or otherwise.

          SECTION 4. Recordation. The Grantor authorizes and requests that the
Register of Copyrights, the Commissioner for Patents and the Commissioner for
Trademarks and any other applicable government officer to record this IP
Security Agreement Supplement.

          SECTION 5. Grants, Rights and Remedies. This IP Security Agreement
Supplement has been entered into in conjunction with the provisions of the
Security Agreement. The Grantor does hereby acknowledge and confirm that the
grant of the security interest hereunder to, and the rights and remedies of,
the Administrative Agent with respect to the Additional Collateral are more
fully set forth in the Security Agreement, the terms and provisions of which
are incorporated herein by reference as if fully set forth herein.

          SECTION 6. Governing Law. This IP Security Agreement Supplement shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

Company Security Agreement

 

          IN WITNESS WHEREOF, the Grantor has caused this IP Security Agreement
Supplement to be duly executed and delivered by its officer thereunto duly
authorized as of the date first above written.

	 	 	 	 	 
	 	 	[NAME OF GRANTOR]
	 
	 	 	
By
	 	 

	 	 	 	 	Name:
	 	 	 	 	Title:
	 
	 	 	Address for Notices:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

Company Security Agreement

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