AMENDED AND RESTATED SECURITY AGREEMENT
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AMENDED
AND RESTATED
AMENDED
AND RESTATED SECURITY AGREEMENT, dated as of April 5. 2007 (this
“Agreement”) made by CHARYS HOLDING COMPANY, INC., a Delaware
corporation (the “Company”), and the undersigned subsidiaries
of the Company (each a “Grantor” and collectively and together
with the Company the “Grantors”), in favor of IMPERIUM
ADVISERS, LLC, a Delaware limited liability company, in its capacity as
collateral agent (in such capacity, the “Collateral Agent”) for
the benefit of the Holders (as defined below).
WITNESSETH:
WHEREAS,
pursuant to a Security Agreement, dated as of August 30, 2006 (the
“Existing Security Agreement”), the Company and certain of the
Company’s subsidiaries granted a security interest in their assets and
properties to secure the Company’s obligations under the Securities Purchase
Agreement, dated as August 30, 2006 (the “Securities Purchase
Agreement”), and the other transaction agreements and documents
contemplated thereby, including, without limitation, the Senior Secured
Convertible Notes (the “Existing Notes”) issued under the
Securities Purchase Agreement;
WHEREAS,
the Company has requested that the holders of the Existing Notes (the
“Noteholders”) extend the maturity date of the Existing Notes
and make certain other modifications to the Existing Notes, and the Noteholders
have agreed to make such modifications to the Existing Notes .(the Existing
Notes, as so modified, amended and restated, being collectively referred to
herein as the “Notes”);
WHEREAS,
in furtherance of the modifications to the Existing Notes, the Company and
the
Noteholders have entered into an Amendment Agreement, dated as of the date
hereof (the “Amendment Agreement”), and it is a condition
precedent to the performance by the Noteholders of their obligations under
the
Amendment Agreement that the Grantors execute and deliver this Agreement;
and
WHEREAS,
the Existing Security Agreement may be amended in writing by each Grantor party
to the Existing Security Agreement, the Required Holders (as defined in the
Existing Notes), and the Collateral Agent, and all such parties are party
hereto;
NOW,
THEREFORE, in consideration of the premises and the agreements herein, the
parties hereto agree that the Existing Security Agreement is hereby amended
and
restated in its entirety to read as follows:
SECTION
1. Definitions.
All
terms
used in this Agreement and the recitals hereto which are not defined herein
shall have the meanings given to them in the Amendment Agreement or in Articles
8 or 9 of the Uniform Commercial Code as in effect from time to time in the
State of New York (the “Code”), and which are not otherwise
defined herein shall have the same meanings herein as set forth therein;
provided that terms used herein which are defined in the Code as in
effect in the State of New York on the date hereof shall continue to have the
same meaning notwithstanding any replacement or amendment of such statute except
as the Collateral Agent may otherwise determine.
The
following terms shall have the respective meanings provided for in the Code:
“Accounts”, “Cash Proceeds”, “Chattel Paper”, “Commercial Tort Claim”,
“Commodity Account”, “Commodity Contracts”, “Deposit Account”, “Documents”,
“Equipment”, “Fixtures”, “General Intangibles”, “Goods”, “Instruments”,
“Inventory”, “Investment Property”, “Letter-of-Credit Rights”, “Noncash
Proceeds”, “Payment Intangibles”, “Proceeds”, “Promissory Notes”, “Security”,
“Record”, “Security Account”, “Software”, and “Supporting
Obligations”.
As
used
in this Agreement, the following terms shall have the respective meanings
indicated below, such meanings to be applicable equally to both the singular
and
plural forms of such terms:
“Copyright
Licenses” means all licenses, contracts or other agreements, whether
written or oral, naming any Grantor as licensee or licensor and providing for
the grant of any right to use or sell any works covered by any
copyright.
“Copyrights”
means all domestic and foreign copyrights, whether registered or not, including,
without limitation, all copyright rights throughout the universe (whether now
or
hereafter arising) in any and all media (whether now or hereafter developed),
in
and to all original works of authorship fixed in any tangible medium of
expression, acquired or used by any Grantor, all applications, registrations
and
recordings thereof (including, without limitation, applications, registrations
and recordings in the United States Copyright Office or in any similar office
or
agency of the United States or any other country or any political subdivision
thereof), and all reissues, divisions, continuations, continuations in part
and
extensions or renewals thereof.
“Event
of Default” shall have the meaning set forth in the
Notes.
“Holders”
means a holder of any Securities or any transferee or assignee thereof to whom
a
holder assigns its rights under this Agreement in accordance with Section 10(d)
and any transferee or assignee thereof to whom a transferee or assignee assigns
its rights under this Agreement in accordance with Section 10(d).
“Insolvency
Proceeding” means any proceeding commenced by or against any Person
under any provision of the Bankruptcy Code (Chapter 11 of Title 11 of the
United States Code) or under any other bankruptcy or insolvency law, assignments
for the benefit of creditors, formal or informal moratoria, compositions, or
extensions generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief.
“Intellectual
Property” means the Copyrights, Trademarks and Patents.
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“Licenses”
means the Copyright Licenses, the Trademark Licenses and the Patent
Licenses.
“Lien”
means any mortgage, deed of trust, pledge, lien (statutory or otherwise),
security interest, charge or other encumbrance or security or preferential
arrangement of any nature, including, without limitation, any conditional sale
or title retention arrangement, any capitalized lease and any assignment,
deposit arrangement or financing lease intended as, or having the effect of,
security.
“Patent
Licenses” means all licenses, contracts or other agreements, whether
written or oral, naming any Grantor as licensee or licensor and providing for
the grant of any right to manufacture, use or sell any invention covered by
any
Patent.
“Patents”
means all domestic and foreign letters patent, design patents, utility patents,
industrial designs, inventions, trade secrets, ideas, concepts, methods,
techniques, processes, proprietary information, technology, know-how, formulae,
rights of publicity and other general intangibles of like nature, now existing
or hereafter acquired, all applications, registrations and recordings thereof
(including, without limitation, applications, registrations and recordings
in
the United States Patent and Trademark Office, or in any similar office or
agency of the United States or any other country or any political subdivision
thereof), and all reissues, divisions, continuations, continuations in part
and
extensions or renewals thereof.
“Securities”
means the Notes, the shares of Common Stock into which the Notes are
convertible, the Warrants, and the shares of Common Stock for which the Warrants
are exercisable.
“Trademark
Licenses” means all licenses, contracts or other agreements, whether
written or oral, naming any Grantor as licensor or licensee and providing for
the grant of any right concerning any Trademark, together with any goodwill
connected with and symbolized by any such trademark licenses, contracts or
agreements and the right to prepare for sale or lease and sell or lease any
and
all Inventory now or hereafter owned by any Grantor and now or hereafter covered
by such licenses.
“Trademarks”
means all domestic and foreign trademarks, service marks, collective marks,
certification marks, trade names, business names, d/b/a’s, Internet domain
names, trade styles, designs, logos and other source or business identifiers
and
all general intangibles of like nature, now or hereafter owned, adopted,
acquired or used by any Grantor, all applications, registrations and recordings
thereof (including, without limitation, applications, registrations and
recordings in the United States Patent and Trademark Office or in any similar
office or agency of the United States, any state thereof or any other country
or
any political subdivision thereof), and all reissues, extensions or renewals
thereof, together with all goodwill of the business symbolized by such marks
and
all customer lists, formulae and other Records of any Grantor relating to the
distribution of products and services in connection with which any of such
marks
are used.
“Transaction
Documents” means this Agreement and the Securities Purchase Agreement,
the Amendment Agreement, the Notes, the Warrants, the Amended and Restated
Registration Rights Agreement, dated as of the date hereof, by and among the
Company and the Holders, and the Subsidiary Guarantee, dated as of the date
hereof, by the subsidiary Grantors for the benefit of the
Noteholders.
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“Warrants”
means the Warrants issued by the Company to Imperium Master Fund,
Ltd.
SECTION
2. Grant of Security Interest. As collateral
security for all of the “Obligations” (as defined in Section 3 hereof),
each Grantor, subject to the Permitted Liens, hereby pledges and assigns to
the
Collateral Agent for the benefit of the Holders, and grants to the Collateral
Agent for the benefit of the Holders a continuing security interest in, all
personal property of each Grantor, wherever located and whether now or hereafter
existing and whether now owned or hereafter acquired, of every kind and
description, tangible or intangible (collectively, the
“Collateral”), including, without limitation, the
following:
(a) all
Accounts;
(b) all
Chattel Paper (whether tangible or electronic);
(c) all
Commercial Tort Claims;
(d) all
Deposit Accounts, all cash and other property from time to time deposited
therein and the monies and property in the possession or under the control
of
the Collateral Agent or Holder or any affiliate, representative, agent or
correspondent of the Collateral Agent or Holder;
(e) all
Documents;
(f) all
Equipment;
(g) all
Fixtures;
(h) all
General Intangibles (including, without limitation, all Payment
Intangibles);
(i) all
Goods
(j) all
Instruments (including, without limitation, Promissory Notes and each
certificated Security);
(k) all
Inventory;
(l) all
Investment Property;
(m) all
Copyrights, Patents and Trademarks, and all Licenses;
(n) all
Letter-of-Credit Rights;
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(o) all
Supporting Obligations;
(p) all
other tangible and intangible personal property of each Grantor (whether or
not
subject to the Code), including, without limitation, all bank and other accounts
and all cash and all investments therein, all proceeds, products, offspring,
accessions, rents, profits, income, benefits, substitutions and replacements
of
and to any of the property of any Grantor described in the preceding clauses
of
this Section 2 (including, without limitation, any proceeds of insurance
thereon and all causes of action, claims and warranties now or hereafter held
by
each Grantor in respect of any of the items listed above), and all books,
correspondence, files and other Records, including, without limitation, all
tapes, desks, cards, Software, data and computer programs in the possession
or
under the control of any Grantor or any other Person from time to time acting
for any Grantor, in each case, to the extent of such Grantor’s rights therein,
that at any time evidence or contain information relating to any of the property
described in the preceding clauses of this Section 2 or are otherwise
necessary or helpful in the collection or realization thereof; and
(q) all
Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of
any
and all of the foregoing Collateral;
in
each
case howsoever any Grantor’s interest therein may arise or appear (whether by
ownership, security interest, claim or otherwise).
SECTION
3. Security for Obligations. The security interest
created hereby in the Collateral constitutes continuing collateral security
for
all of the following obligations, whether now existing or hereafter incurred
(collectively, the “Obligations”):
(a) the
payment by the Company and each Grantor, as and when due and payable (by
scheduled maturity, required prepayment, acceleration, demand or otherwise),
of
all amounts from time to time owing by it in respect of the Transaction
Documents, including, without limitation, (A) all principal of and interest
on
the Notes (including, without limitation, all interest that accrues after the
commencement of any Insolvency Proceeding of any Grantor, whether or not the
payment of such interest is unenforceable or is not allowable due to the
existence of such Insolvency Proceeding), and (B) all fees, commissions, expense
reimbursements, indemnifications and all other amounts due or to become due
under any of the Transaction Documents (including any Registration Delay
Payments (as defined in the Amended and Restated Registration Rights Agreement,
dated as of the date hereof, by and among the Company and the Holders));
and
(b) for
so long as the Notes are outstanding, the due performance and observance by
each
Grantor of all of its other obligations from time to time existing in respect
of
any of the Transaction Documents, including without limitation, with respect
to
any conversion or redemption rights of the Holders under the
Notes.
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SECTION
4. Representations and Warranties. Each Grantor
represents and warrants as of the date of this Agreement as
follows:
(a) Schedule
I hereto sets forth (i) the exact legal name of each Grantor, and (ii) the
state of incorporation, organization or formation and the organizational
identification number of each Grantor in such state.Schedule II hereto
sets forth (x) the exact legal name of each entity that is a Subsidiary of
the
Company as of the date hereof but is not a Grantor as of the date hereof, and
(y) the state of incorporation, organization or formation and the organizational
identification number of each such Subsidiary in such state.
(b) There
is no pending or, to its knowledge, written notice threatening any action,
suit,
proceeding or claim affecting any Grantor before any governmental authority
or
any arbitrator, or any order, judgment or award issued by any governmental
authority or arbitrator, in each case, that may adversely affect the grant
by
any Grantor, or the perfection, of the security interest purported to be created
hereby in the Collateral, or the exercise by the Collateral Agent of any of
its
rights or remedies hereunder.
(c) Except
as disclosed in the Amendment Agreement, all Federal, state and local tax
returns and other reports required by applicable law to be filed by any Grantor
have been filed, or extensions have been obtained, and all taxes, assessments
and other governmental charges imposed upon any Grantor or any property of
any
Grantor (including, without limitation, all federal income and social security
taxes on employees’ wages) and which have become due and payable on or prior to
the date hereof have been paid, except to the extent contested in good faith
by
proper proceedings which stay the imposition of any penalty, fine or Lien
resulting from the non-payment thereof and with respect to which adequate
reserves have been set aside for the payment thereof in accordance with
generally accepted accounting principles consistently applied
(“GAAP”).
(d) [Reserved]
(e) Each
such License sets forth the entire agreement and understanding of the parties
thereto relating to the subject matter thereof, and there are no other
agreements, arrangements or understandings, written or oral, relating to the
matters covered thereby or the rights of such Grantor or any of its affiliates
in respect thereof. Each material License now existing is, and any
material License entered into in the future will be, the legal, valid and
binding obligation of the parties thereto, enforceable against such parties
in
accordance with its terms. No default under any material License by
any such party has occurred, nor does any defense, offset, deduction or
counterclaim exist thereunder in favor of any such party.
(f) Each
Grantor owns and controls, or otherwise possesses adequate rights to use, all
Trademarks, Patents and Copyrights, which are the only trademarks, patents,
copyrights, inventions, trade secrets, proprietary information and technology,
know-how, formulae, rights of publicity necessary to conduct its business in
substantially the same manner as conducted as of the date hereof. To
the best knowledge of each Grantor, all such Intellectual Property of each
Grantor is subsisting and in full force and effect, has not been adjudged
invalid or unenforceable, is valid and enforceable and has not been abandoned
in
whole or in part. Each Grantor has no knowledge of any conflict with
the rights of others to any such Intellectual Property and, to the best
knowledge of each Grantor, each Grantor is not now infringing or in conflict
with any such rights of others in any material respect, and to the best
knowledge of each Grantor, no other Person is now infringing or in conflict
in
any material respect with any such properties, assets and rights owned or used
by each Grantor. No Grantor has received any notice that it is
violating or has violated the trademarks, patents, copyrights, inventions,
trade
secrets, proprietary information and technology, know-how, formulae, rights
of
publicity or other intellectual property rights of any third
party.
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(g) Each
Grantor is and will be at all times the sole and exclusive owner of, or
otherwise has and will have adequate rights in, the Collateral free and clear
of
any Liens, except for Permitted Liens on any Collateral. Except for
the Permitted Liens described in the Amendment Agreement, no effective financing
statement or other instrument similar in effect covering all or any part of
the
Collateral is on file in any recording or filing office except such as may
have
been filed in favor of the Collateral Agent and/or the Holders relating to
this
Agreement or the other Transaction Documents.
(h) The
exercise by the Collateral Agent of any of its rights and remedies hereunder
will not contravene any law or any contractual restriction binding on or
otherwise affecting each Grantor or any of its properties and will not result
in
or require the creation of any Lien, upon or with respect to any of its
properties.
(i) No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or other regulatory body, is required for
(i) the grant by each Grantor, or the perfection, of the security interest
purported to be created hereby in the Collateral, or (ii) the exercise by
the Collateral Agent of any of its rights and remedies hereunder (except
(A) for the filing of a UCC-1 financing statement with respect to each
Grantor in the secretary of state office of the state of such Grantor’s
formation, all of which financing statements have been duly filed and are in
full force and effect or will be duly filed and in full force and effect, (B)
with respect to Deposit Accounts, and all cash and other property from time
to
time deposited therein, for the execution of a control agreement with the
depository institution with which such account is maintained, as provided in
Section 5(i), (C) with respect to the perfection of the security
interest created hereby in the United States Intellectual Property and Licenses,
for the recording of the appropriate Assignment for Security, substantially
in
the form of Exhibit A hereto in the United States Patent and Trademark
Office or the United States Copyright Office, as applicable, (D) with
respect to the perfection of the security interest created hereby in foreign
Intellectual Property and Licenses, for registrations and filings in
jurisdictions located outside of the United States and covering rights in such
jurisdictions relating to such foreign Intellectual Property and Licenses,
(E)
with respect to the perfection of the security interest created hereby in Titled
Collateral, for the submission of an appropriate application requesting that
the
Lien of the Collateral Agent be noted on the Certificate of Title or certificate
of ownership, completed and authenticated by the applicable Grantor, together
with the Certificate of Title or certificate of ownership, with respect to
such
Titled Collateral, to the appropriate governmental authority, (F) with respect
to the perfection of the security interest created hereby in any
Letter-of-Credit Rights, for the consent of the issuer of the applicable letter
of credit to the assignment of proceeds as provided in the Uniform Commercial
Code as in effect in the applicable jurisdiction, (G) with respect to any action
that may be necessary to obtain control of Collateral constituting Deposit
Accounts, Commodity Contracts, Electronic Chattel Paper, Investment Property
or
Letter-of-Credit Rights, the taking of such actions, and (H) the Collateral
Agent having possession of all Documents, Chattel Paper, Instruments and cash
constituting Collateral (subclauses (A), (B), (C), (D), (E), (F), G), and (H),
each a “Perfection Requirement” and collectively, the “Perfection
Requirements”)).
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(j) This
Agreement, subject to the Permitted Liens creates in favor of the Collateral
Agent a legal, valid and enforceable security interest in the Collateral as
security for the Obligations. The Perfection Requirements result in
the perfection of such security interests. Such security interests
are, or in the case of Collateral in which each Grantor obtains rights after
the
date hereof, will be, perfected, first priority security interests, subject
only
to Permitted Liens and the Perfection Requirements. Such recordings
and filings and all other action necessary to perfect and protect such security
interest have been duly taken or will be taken pursuant to Section 5(n), and,
in
the case of Collateral in which each Grantor obtains rights after the date
hereof, will be duly taken, except for the Collateral Agent’s having possession
of all Documents, Chattel Paper, Instruments and cash constituting Collateral
after the date hereof and the other actions, filings and recordations described
above, including the Perfection Requirements.
SECTION
5. Covenants as to the Collateral. So long as any
of the Obligations shall remain outstanding, unless the Collateral Agent shall
otherwise consent in writing:
(a) Further
Assurances. Each Grantor will at its expense, at any time and
from time to time, promptly execute and deliver all further instruments and
documents and take all further action that the Collateral Agent may reasonably
request in order to: (i) perfect and protect the security interest
purported to be created hereby; (ii) enable the Collateral Agent to
exercise and enforce its rights and remedies hereunder in respect of the
Collateral; or (iii) otherwise effect the purposes of this Agreement,
including, without limitation: (A) marking conspicuously all Chattel Paper
and each License and, at the request of the Collateral Agent, each of its
Records pertaining to the Collateral with a legend, in form and substance
satisfactory to the Collateral Agent, indicating that such Chattel Paper,
License or Collateral is subject to the security interest created hereby,
(B) delivering and pledging to the Collateral Agent pursuant to the Pledge
each Promissory Note, Security, Chattel Paper or other Instrument, now or
hereafter owned by any Grantor, duly endorsed and accompanied by executed
instruments of transfer or assignment, all in form and substance satisfactory
to
the Collateral Agent, (C) executing and filing (to the extent, if any, that
any Grantor’s signature is required thereon) or authenticating the filing of,
such financing or continuation statements, or amendments thereto, as may be
necessary or that the Collateral Agent may reasonably request in order to
perfect and preserve the security interest purported to be created hereby,
(D) furnishing to the Collateral Agent from time to time statements and
schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral in each case as the Collateral Agent
may reasonably request, all in reasonable detail, (E) if any Collateral
shall be in the possession of a third party, notifying such Person of the
Collateral Agent’s security interest created hereby and obtaining a written
acknowledgment from such Person that such Person holds possession of the
Collateral for the benefit of the Collateral Agent, which such written
acknowledgement shall be in form and substance reasonably satisfactory to the
Collateral Agent, (F) if at any time after the date hereof, any Grantor
acquires or holds any Commercial Tort Claim, promptly notifying the Collateral
Agent in a writing signed by such Grantor setting forth a brief description
of
such Commercial Tort Claim and granting to the Collateral Agent a security
interest therein and in the proceeds thereof, which writing shall incorporate
the provisions hereof and shall be in form and substance satisfactory to the
Collateral Agent, (G) upon the acquisition after the date hereof by any
Grantor of any motor vehicle or other Equipment subject to a certificate of
title or ownership (other than a Motor Vehicle or Equipment that is subject
to a
purchase money security interest), causing the Collateral Agent to be listed
as
the lienholder on such certificate of title or ownership and delivering evidence
of the same to the Collateral Agent in accordance with Section 5(j)
hereof; and (H) taking all actions required by any earlier versions of the
Uniform Commercial Code or by other law, as applicable, in any relevant Uniform
Commercial Code jurisdiction, or by other law as applicable in any foreign
jurisdiction.
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(b) [Reserved]
(c) Condition
of Equipment. Each Grantor will maintain or cause the Equipment
(necessary or useful to its business) to be maintained and preserved in good
condition, repair and working order, ordinary wear and tear excepted, and will
forthwith, or in the case of any loss or damage to any Equipment of any Grantor
within a commercially reasonable time after the occurrence thereof, make or
cause to be made all repairs, replacements and other improvements in connection
therewith which are necessary or desirable, consistent with past practice,
or
which the Collateral Agent may request to such end. Any Grantor will
promptly furnish to the Collateral Agent a statement describing in reasonable
detail any such loss or damage in excess of $250,000 per
occurrence to any Equipment.
(d) Taxes,
Etc. Each Grantor agrees to pay promptly when due all property
and other taxes, assessments and governmental charges or levies imposed upon,
and all claims (including claims for labor, materials and supplies) against,
the
Equipment and Inventory, except to the extent the validity thereof is being
contested in good faith by proper proceedings which stay the imposition of
any
penalty, fine or Lien resulting from the non-payment thereof and with respect
to
which adequate reserves in accordance with GAAP have been set aside for the
payment thereof.
(e) Insurance.
(i) Each
Grantor will, at its own expense, maintain insurance (including, without
limitation, commercial general liability and property insurance) with respect
to
the Equipment and Inventory in such amounts, against such risks, in such form
and with responsible and reputable insurance companies or associations as is
required by any governmental authority having jurisdiction with respect thereto
or as is carried generally in accordance with sound business practice by
companies in similar businesses similarly situated and in any event, in amount,
adequacy and scope reasonably satisfactory to the Collateral
Agent. To the extent requested by the Collateral Agent at any time
and from time to time, each such policy for liability insurance shall provide
for all losses to be paid on behalf of the Collateral Agent and any Grantor
as
their respective interests may appear, and each policy for property damage
insurance shall provide for all losses to be adjusted with, and paid directly
to, the Collateral Agent. To the extent requested by the Collateral
Agent at any time and from time to time, each such policy shall in addition
(A)
name the Collateral Agent as an additional insured party thereunder (without
any
representation or warranty by or obligation upon the Collateral Agent) as their
interests may appear, (B) contain an agreement by the insurer that any loss
thereunder shall be payable to the Collateral Agent on its own account
notwithstanding any action, inaction or breach of representation or warranty
by
any Grantor, (C) provide that there shall be no recourse against the Collateral
Agent for payment of premiums or other amounts with respect thereto, and (D)
provide that at least 30 days’ prior written notice of cancellation, lapse,
expiration or other adverse change shall be given to the Collateral Agent by
the
insurer. Any Grantor will, if so requested by the Collateral Agent,
deliver to the Collateral Agent original or duplicate policies of such insurance
and, as often as the Collateral Agent may reasonably request, a report of a
reputable insurance broker with respect to such insurance. Any
Grantor will also, at the request of the Collateral Agent, execute and deliver
instruments of assignment of such insurance policies and cause the respective
insurers to acknowledge notice of such assignment.
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(ii) Reimbursement
under any liability insurance maintained by any Grantor pursuant to this
Section 5(e) may be paid directly to the Person who shall have incurred
liability covered by such insurance. In the case of any loss
involving damage to Equipment or Inventory, any proceeds of insurance maintained
by any Grantor pursuant to this Section 5(e) shall be paid to the
Collateral Agent (except as to which paragraph (iii) of this Section 5(e)
is not applicable), any Grantor will make or cause to be made
the necessary repairs to or replacements of such Equipment or Inventory, and
any
proceeds of insurance maintained by any Grantor pursuant to this Section
5(e) shall be paid by the Collateral Agent to any Grantor as reimbursement
for the costs of such repairs or replacements.
(iii) All
insurance payments in respect of such Equipment or Inventory shall be paid
to
the Collateral Agent and applied as specified in Section 7(b)
hereof.
(f) Provisions
Concerning the Accounts and the Licenses.
(i) Any
Grantor will (A) give the Collateral Agent at least 30 days’ prior written
notice of any change in such Grantor’s name, identity or organizational
structure, (B) maintain its jurisdiction of incorporation, organization or
formation as set forth in Schedule I hereto, (C) immediately notify the
Collateral Agent upon obtaining an organizational identification number, if
on
the date hereof such Grantor did not have such identification number, and (D)
keep adequate records concerning the Accounts and Chattel Paper and permit
representatives of the Collateral Agent during normal business hours on
reasonable notice to such Grantor, to inspect and make abstracts from such
Records and Chattel Paper.
(ii) Each
Grantor will, except as otherwise provided in this subsection (f), continue
to collect, at its own expense, all amounts due or to become due under the
Accounts. In connection with such collections, any Grantor may (and,
at the Collateral Agent’s direction, will) take such action as any Grantor or
the Collateral Agent may deem necessary or advisable to enforce collection
or
performance of the Accounts; provided, however, that the
Collateral Agent shall have the right at any time, upon the occurrence and
during the continuance of an Event of Default, to notify the account debtors
or
obligors under any Accounts of the assignment of such Accounts to the Collateral
Agent and to direct such account debtors or obligors to make payment of all
amounts due or to become due to any Grantor thereunder directly to the
Collateral Agent or its designated agent and, upon such notification and at
the
expense of any Grantor and to the extent permitted by law, to enforce collection
of any such Accounts and to adjust, settle or compromise the amount or payment
thereof, in the same manner and to the same extent as any Grantor might have
done. After receipt by any Grantor of a notice from the Collateral
Agent that the Collateral Agent has notified, intends to notify, or has enforced
or intends to enforce any Grantor’s rights against the account debtors or
obligors under any Accounts as referred to in the proviso to the immediately
preceding sentence, (A) all amounts and proceeds (including Instruments)
received by any Grantor in respect of the Accounts shall be received in trust
for the benefit of the Collateral Agent hereunder, shall be segregated from
other funds of any Grantor and shall be forthwith paid over to the Collateral
Agent in the same form as so received (with any necessary endorsement) to be
applied as specified in Section 7(b) hereof, and (B) no Grantor will
adjust, settle or compromise the amount or payment of any Account or release
wholly or partly any account debtor or obligor thereof or allow any credit
or
discount thereon. In addition, upon the occurrence and during the
continuance of an Event of Default, the Collateral Agent may (in its sole and
absolute discretion) direct any or all of the banks and financial institutions
with which any Grantor either maintains a Deposit Account or a lockbox or
deposits the proceeds of any Accounts to send immediately to the Collateral
Agent by wire transfer (to such account as the Collateral Agent shall specify,
or in such other manner as the Collateral Agent shall direct) all or a portion
of such securities, cash, investments and other items held by such
institution. Any such securities, cash, investments and other items
so received by the Collateral Agent shall be applied as specified in accordance
with Section 7(b) hereof.
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(iii) Upon
the occurrence and during the continuance of any breach or default under any
material License by any party thereto other than any Grantor, each Grantor
party
thereto will, promptly after obtaining knowledge thereof, give the Collateral
Agent written notice of the nature and duration thereof, specifying what action,
if any, it has taken and proposes to take with respect thereto and thereafter
will take reasonable steps to protect and preserve its rights and remedies
in
respect of such breach or default, or will obtain or acquire an appropriate
substitute License.
(iv) Each
Grantor will, at its expense, promptly deliver to the Collateral Agent a copy
of
each notice or other communication received by it by which any other party
to
any material License purports to exercise any of its rights or affect any of
its
obligations thereunder, together with a copy of any reply by such Grantor
thereto.
(v) Each
Grantor will exercise promptly and diligently each and every right which it
may
have under each material License (other than any right of termination) and
will
duly perform and observe in all respects all of its obligations under each
material License and will take all action reasonably necessary to maintain
such
Licenses in full force and effect. No Grantor will, without the prior
written consent of the Collateral Agent, cancel, terminate, amend or otherwise
modify in any respect, or waive any provision of, any material
License.
(g) Transfers
and Other Liens.
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(i) No
Grantor will sell, assign (by operation of law or otherwise), lease, license,
exchange or otherwise transfer or dispose of any of the Collateral, except
such
Grantor may (A) sell or dispose of Inventory (including, without limitation,
As-extracted Collateral) in the ordinary course of business, and (B) sell or
dispose of assets such Grantor has determined, in good faith, not to be useful
in the conduct of its business, and (C) sell or dispose of accounts in the
course of collection in the ordinary course of business consistent with past
practice.
(ii) No
Grantor will create, suffer to exist or grant any Lien upon or with respect
to
any Collateral other than a Permitted Lien.
(h) Intellectual
Property.
(i) If
applicable, any Grantor shall, upon the Collateral Agent’s written request, duly
execute and deliver the applicable Assignment for Security in the form attached
hereto as Exhibit A. Each Grantor (either itself or through
licensees) will, and will cause each licensee thereof to, take all action
necessary to maintain all of the Intellectual Property in full force and effect,
including, without limitation, using the proper statutory notices and markings
and using the Trademarks on each applicable trademark class of goods in order
to
so maintain the Trademarks in full force and free from any claim of abandonment
for non-use, and each Grantor will not (nor permit any licensee thereof to)
do
any act or knowingly omit to do any act whereby any Intellectual Property may
become invalidated; provided, however, that so long as no Event of
Default has occurred and is continuing, no Grantor shall have an obligation
to
use or to maintain any Intellectual Property (A) that relates solely to any
product or work, that has been, or is in the process of being, discontinued,
abandoned or terminated, (B) that is being replaced with Intellectual Property
substantially similar to the Intellectual Property that may be abandoned or
otherwise become invalid, so long as the failure to use or maintain such
Intellectual Property does not materially adversely affect the validity of
such
replacement Intellectual Property and so long as such replacement Intellectual
Property is subject to the Lien created by this Agreement or (C) that is
substantially the same as another Intellectual Property that is in full force,
so long the failure to use or maintain such Intellectual Property does not
materially adversely affect the validity of such replacement Intellectual
Property and so long as such other Intellectual Property is subject to the
Lien
and security interest created by this Agreement. Each Grantor will
cause to be taken all necessary steps in any proceeding before the United States
Patent and Trademark Office and the United States Copyright Office or any
similar office or agency in any other country or political subdivision thereof
to maintain each registration of the Intellectual Property (other than the
Intellectual Property described in the proviso to the immediately preceding
sentence), including, without limitation, filing of renewals, affidavits of
use,
affidavits of incontestability and opposition, interference and cancellation
proceedings and payment of maintenance fees, filing fees, taxes or other
governmental fees. If any Intellectual Property (other than
Intellectual Property described in the proviso to the first sentence of
subsection (i) of this clause (h)) is infringed, misappropriated, diluted or
otherwise violated in any material respect by a third party, each Grantor shall
(x) upon learning of such infringement, misappropriation, dilution or other
violation, promptly notify the Collateral Agent and (y) to the extent any
Grantor shall deem appropriate under the circumstances, promptly xxx for
infringement, misappropriation, dilution or other violation, seek injunctive
relief where appropriate and recover any and all damages for such infringement,
misappropriation, dilution or other violation, or take such other actions as
such Grantor shall deem appropriate under the circumstances to protect such
Intellectual Property. Each Grantor shall furnish to the Collateral
Agent from time to time upon its request statements and schedules further
identifying and describing the Intellectual Property and Licenses and such
other
reports in connection with the Intellectual Property and Licenses as the
Collateral Agent may reasonably request, all in reasonable detail and promptly
upon request of the Collateral Agent, following receipt by the Collateral Agent
of any such statements, schedules or reports, each Grantor shall, as the case
may be, execute and authenticate such documents and do such acts as shall be
necessary or, in the reasonable judgment of the Collateral Agent, desirable
to
subject such Intellectual Property and Licenses to the Lien and security
interest created by this Agreement. Notwithstanding anything herein
to the contrary, upon the occurrence and during the continuance of an Event
of
Default, no Grantor may abandon or otherwise permit any Intellectual Property
to
become invalid without the prior written consent of the Collateral Agent, and
if
any Intellectual Property is infringed, misappropriated, diluted or otherwise
violated in any material respect by a third party, each Grantor will take such
action as the Collateral Agent shall deem appropriate under the circumstances
to
protect such Intellectual Property.
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(ii) In
no event shall any Grantor, either itself or through any agent, employee,
licensee or designee, file an application for the registration of any Trademark
or Copyright or the issuance of any Patent with the United States Patent and
Trademark Office or the United States Copyright Office, as applicable, or in
any
similar office or agency of the United States or any country or any political
subdivision thereof unless it gives the Collateral Agent prior written notice
thereof. Upon request of the Collateral Agent, any Grantor shall
execute, authenticate and deliver any and all assignments, agreements,
instruments, documents and papers as the Collateral Agent may reasonably request
to evidence the Collateral Agent’s security interest hereunder in such
Intellectual Property and the General Intangibles of any Grantor relating
thereto or represented thereby, and each Grantor hereby appoints the Collateral
Agent its attorney-in-fact to execute and/or authenticate and file all such
writings for the foregoing purposes, all acts of such attorney being hereby
ratified and confirmed, and such power (being coupled with an interest) shall
be
irrevocable until the indefeasible payment in full in cash of all of the
Obligations in full.
(i) Deposit,
Commodities and Securities Accounts. Upon the Collateral Agent’s
written request, each Grantor shall cause each bank and other financial
institution with an account of Grantor to execute and deliver to the Collateral
Agent a control agreement, in form and substance reasonably satisfactory to
the
Collateral Agent, duly executed by each Grantor and such bank or financial
institution, or enter into other arrangements in form and substance satisfactory
to the Collateral Agent, pursuant to which such institution shall irrevocably
agree, interalia, that (i) it will comply at any time with
the instructions originated by the Collateral Agent to such bank or financial
institution directing the disposition of cash, Commodity Contracts, securities,
Investment Property and other items from time to time credited to such account,
without further consent of each Grantor, which instructions the Collateral
Agent
will not give to such bank or other financial institution in the absence of
a
continuing Event of Default, (ii) all Commodity Contracts, securities,
Investment Property and other items of each Grantor deposited with such
institution shall be subject to a perfected, first priority security interest
in
favor of the Collateral Agent, (iii) any right of set off (other than
recoupment of standard fees), banker’s Lien or other similar Lien, security
interest or encumbrance shall be fully waived as against the Collateral Agent,
and (iv) upon receipt of written notice from the Collateral Agent during
the continuance of an Event of Default, such bank or financial institution
shall
immediately send to the Collateral Agent by wire transfer (to such account
as
the Collateral Agent shall specify, or in such other manner as the Collateral
Agent shall direct) all such cash, the value of any Commodity Contracts,
securities, Investment Property and other items held by it. The
provisions of this Section 5(i) shall not apply to (i) Deposit Accounts for
which the Collateral Agent is the depositary and (ii) Deposit Accounts specially
and exclusively used for payroll, payroll taxes and other employee wage and
benefit payments to or for the benefit of each Grantor’s salaried or hourly
employees.
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(j) Motor
Vehicles. To the extent that there are no Permitted Liens
thereon:
(i) Upon
the Collateral Agent’s written request, each Grantor shall deliver to the
Collateral Agent originals of the certificates of title or ownership for all
motor vehicles with a value in excess of $50,000, owned by it with the
Collateral Agent listed as lienholder, for the benefit of the
Holders.
(ii) Each
Grantor hereby appoints the Collateral Agent as its attorney-in-fact, effective
the date hereof and terminating upon the termination of this Agreement, for
the
purpose of (A) executing on behalf of such Grantor title or ownership
applications for filing with appropriate state agencies to enable motor vehicles
now owned or hereafter acquired by such Grantor to be retitled and the
Collateral Agent listed as lienholder thereof, (B) filing such applications
with
such state agencies, and (C) executing such other documents and instruments
on
behalf of, and taking such other action in the name of, such Grantor as the
Collateral Agent may deem necessary or advisable to accomplish the purposes
hereof (including, without limitation, for the purpose of creating in favor
of
the Collateral Agent a perfected Lien on the motor vehicles and exercising
the
rights and remedies of the Collateral Agent hereunder). This
appointment as attorney-in-fact is coupled with an interest and is irrevocable
until all of the Obligations are indefeasibly paid in full in cash and after
all
Transaction Documents have been terminated.
(iii) Any
certificates of title or ownership delivered pursuant to the terms hereof shall
be accompanied by odometer statements for each motor vehicle covered
thereby.
(iv) So
long as no Event of Default shall have occurred and be continuing, upon the
request of any Grantor, the Collateral Agent shall execute and deliver to any
Grantor such instruments as any Grantor shall reasonably request to remove
the
notation of the Collateral Agent as lienholder on any certificate of title
for
any motor vehicle; provided, however, that any such instruments
shall be delivered, and the release effective, only upon receipt by the
Collateral Agent of a certificate from any Grantor stating that such motor
vehicle is to be sold or has suffered a casualty loss (with title thereto in
such case passing to the casualty insurance company therefor in settlement
of
the claim for such loss) and the amount that any Grantor will receive as sale
proceeds or insurance proceeds. Any proceeds of such sale or casualty
loss shall be paid to the Collateral Agent hereunder immediately upon receipt,
to be applied to the Obligations then outstanding.
(k) Control. Each
Grantor hereby agrees to take any or all action that may be necessary, desirable
or that the Collateral Agent may reasonably request in order for the Collateral
Agent to obtain control in accordance with Sections 9-105 – 9-107 of the Code
with respect to the following Collateral: (i) Electronic Chattel Paper,
(ii) Investment Property, and (iii) Letter-of-Credit Rights.
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(l) Inspection
and Reporting. Each Grantor shall permit the Collateral Agent, or
any agent or representatives thereof or such professionals or other Persons
as
the Collateral Agent may designate, during normal business hours, after
reasonable notice in the absence of an Event of Default and not more than once
a
year in the absence of an Event of Default, (i) to examine and make copies
of and abstracts from any Grantor’s records and books of account, (ii) to visit
and inspect its properties, (iii) to verify materials, leases, Instruments,
Accounts, Inventory and other assets of any Grantor from time to time, and
(iv) to conduct audits, physical counts, appraisals and/or valuations,
examinations at the locations of any Grantor. Each Grantor shall also
permit the Collateral Agent, or any agent or representatives thereof or such
professionals or other Persons as the Collateral Agent may designate to discuss
such Grantor’s affairs, finances and accounts with any of its directors,
officers, managerial employees, independent accountants or any of its other
representatives.
(m) Future
Subsidiaries. If any Grantor shall hereafter create or acquire
any Subsidiary, simultaneously with the creation or acquisition of such
Subsidiary, such Grantor shall (i) cause such Subsidiary to become a party
to
this Agreement as an additional “Grantor” hereunder, (ii) such Grantor shall
deliver to Collateral Agent revised Schedules to this Agreement, as appropriate,
(iii) shall duly execute and deliver a guaranty of the Obligations in favor
of
the Collateral Agent in accordance with the Guarantee, and (iv) shall duly
execute and/or deliver such opinions of counsel and other documents (including
an Assumption Agreement by such Subsidiary in the form attached hereto as
Exhibit B), in form and substance reasonably acceptable to the Collateral
Agent, as the Collateral Agent shall reasonably request with respect thereto,
provided that any Grantor that acquires a subsidiary on or within two days
after
the Closing Date shall have 10 Business Days in which to satisfy the
requirements of this Section 5(m).
(n) Fixture
Filings. Within 10 Business Days after the Closing Date, Grantors
shall cause financing statements to be filed in the appropriate county clerk’s
offices in order to perfect the security interest of the Collateral Agent in
and
to all Fixtures and As-extracted Collateral constituting Collateral on the
Closing Date or within two Business Days after the Closing Date.
SECTION
6.Additional Provisions Concerning the Collateral.
(a) Each
Grantor hereby (i) authorizes the Collateral Agent to file one or more Uniform
Commercial Code financing or continuation statements, and amendments thereto,
relating to the Collateral and (ii) ratifies such authorization to the extent
that the Collateral Agent has filed any such financing or continuation
statements, or amendments thereto, prior to the date hereof. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Collateral or any part thereof shall be sufficient as a financing
statement where permitted by law.
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(b) Each
Grantor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact
and proxy, with full authority in the place and stead of such Grantor and in
the
name of such Grantor or otherwise, from time to time in the Collateral Agent’s
discretion, so long as an Event of Default shall have occurred and is
continuing, to take any action and to execute any instrument which the
Collateral Agent may reasonably deem necessary or advisable to accomplish the
purposes of this Agreement (subject to the rights of each Grantor under
Section 5 hereof), including, without limitation, (i) to obtain and
adjust insurance required to be paid to the Collateral Agent pursuant to
Section 5(e) hereof, (ii) to ask, demand, collect, xxx for, recover,
compound, receive and give acquittance and receipts for moneys due and to become
due under or in respect of any Collateral, (iii) to receive, endorse, and
collect any drafts or other instruments, documents and chattel paper in
connection with clause (i) or (ii) above, (iv) to file any claims or take any
action or institute any proceedings which the Collateral Agent may deem
necessary or desirable for the collection of any Collateral or otherwise to
enforce the rights of the Collateral Agent and the Holders with respect to
any
Collateral, and (v) to execute assignments, licenses and other documents to
enforce the rights of the Collateral Agent and the Holders with respect to
any
Collateral. This power is coupled with an interest and is irrevocable
until all of the Obligations are indefeasibly paid in full in cash.
(c) For
the purpose of enabling the Collateral Agent to exercise rights and remedies
hereunder, at such time as the Collateral Agent shall be lawfully entitled
to
exercise such rights and remedies, and for no other purpose, each Grantor hereby
grants to the Collateral Agent, to the extent assignable, an irrevocable,
non-exclusive license (exercisable without payment of royalty or other
compensation to any Grantor) to use, assign, license or sublicense any
Intellectual Property now owned or hereafter acquired by such Grantor, wherever
the same may be located, including in such license reasonable access to all
media in which any of the licensed items may be recorded or stored and to all
computer programs used for the compilation or printout
thereof. Notwithstanding anything contained herein to the contrary,
but subject to the provisions of the Amendment Agreement that limit the right
of
any Grantor to dispose of its property, and Section 5(g) and Section
5(h) hereof, so long as no Event of Default shall have occurred and be
continuing, any Grantor may exploit, use, enjoy, protect, license, sublicense,
assign, sell, dispose of or take other actions with respect to the Intellectual
Property in the ordinary course of its business. In furtherance of
the foregoing, unless an Event of Default shall have occurred and be continuing,
the Collateral Agent shall from time to time, upon the request of any Grantor,
execute and deliver any instruments, certificates or other documents, in the
form so requested, which such Grantor shall have certified are appropriate
(in
such Grantor’s judgment) to allow it to take any action permitted above
(including relinquishment of the license provided pursuant to this clause (c)
as
to any Intellectual Property). Further, upon the indefeasible payment
in full in cash of all of the Obligations, the Collateral Agent (subject to
Section 10(e) hereof) shall release and reassign to any Grantor all of
the Collateral Agent’s right, title and interest in and to the Intellectual
Property, and the Licenses, all without recourse, representation or warranty
whatsoever. The exercise of rights and remedies hereunder by the
Collateral Agent shall not terminate the rights of the holders of any licenses
or sublicenses theretofore granted by each Grantor in accordance with the second
sentence of this clause (c). Each Grantor hereby releases the
Collateral Agent from any claims, causes of action and demands at any time
arising out of or with respect to any actions taken or omitted to be taken
by
the Collateral Agent under the powers of attorney granted herein other than
actions taken or omitted to be taken through the Collateral Agent’s gross
negligence or willful misconduct, as determined by a final determination of
a
court of competent jurisdiction.
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(d) If
any Grantor fails to perform any agreement or obligation contained herein,
the
Collateral Agent may itself perform, or cause performance of, such agreement
or
obligation, in the name of such Grantor or the Collateral Agent, and the
expenses of the Collateral Agent incurred in connection therewith shall be
payable by such Grantor pursuant to Section 8 hereof and shall be secured
by the Collateral.
(e) The
powers conferred on the Collateral Agent hereunder are solely to protect its
interest in the Collateral and shall not impose any duty upon it to exercise
any
such powers. Except for the safe custody of any Collateral in its
possession and the accounting for moneys actually received by it hereunder,
the
Collateral Agent shall have no duty as to any Collateral or as to the taking
of
any necessary steps to preserve rights against prior parties or any other rights
pertaining to any Collateral.
(f) Anything
herein to the contrary notwithstanding (i) each Grantor shall remain liable
under the Licenses and otherwise with respect to any of the Collateral to the
extent set forth therein to perform all of its obligations thereunder to the
same extent as if this Agreement had not been executed, (ii) the exercise
by the Collateral Agent of any of its rights hereunder shall not release any
Grantor from any of its obligations under the Licenses or otherwise in respect
of the Collateral, and (iii) the Collateral Agent shall not have any
obligation or liability by reason of this Agreement under the Licenses or with
respect to any of the other Collateral, nor shall the Collateral Agent be
obligated to perform any of the obligations or duties of any Grantor thereunder
or to take any action to collect or enforce any claim for payment assigned
hereunder.
SECTION
7. Remedies Upon Event of Default. If any Event of
Default shall have occurred and be continuing, subject to the Permitted
Liens:
(a) The
Collateral Agent may exercise in respect of the Collateral, in addition to
any
other rights and remedies provided for herein or otherwise available to it,
all
of the rights and remedies of a secured party upon default under the Code
(whether or not the Code applies to the affected Collateral), and also may
(i) take absolute control of the Collateral, including, without limitation,
transfer into the Collateral Agent’s name or into the name of its nominee or
nominees (to the extent the Collateral Agent has not theretofore done so) and
thereafter receive, for the benefit of the Collateral Agent, all payments made
thereon, give all consents, waivers and ratifications in respect thereof and
otherwise act with respect thereto as though it were the outright owner thereof,
(ii) require each Grantor to, and each Grantor hereby agrees that it will
at its expense and upon request of the Collateral Agent forthwith, assemble
all
or part of its respective Collateral as directed by the Collateral Agent and
make it available to the Collateral Agent at a place or places to be designated
by the Collateral Agent that is reasonably convenient to both parties, and
the
Collateral Agent may enter into and occupy any premises owned or leased by
any
Grantor where the Collateral or any part thereof is located or assembled for
a
reasonable period in order to effectuate the Collateral Agent’s rights and
remedies hereunder or under law, without obligation to any Grantor in respect
of
such occupation, and (iii) without notice except as specified below and
without any obligation to prepare or process the Collateral for sale,
(A) sell the Collateral or any part thereof in one or more parcels at
public or private sale, at any of the Collateral Agent’s offices or elsewhere,
for cash, on credit or for future delivery, and at such price or prices and
upon
such other terms as the Collateral Agent may deem commercially reasonable and/or
(B) lease, license or dispose of the Collateral or any part thereof upon
such terms as the Collateral Agent may deem commercially
reasonable. Each Grantor agrees that, to the extent notice of sale or
any other disposition of its respective Collateral shall be required by law,
at
least ten (10) days’ notice to any Grantor of the time and place of any public
sale or the time after which any private sale or other disposition of its
respective Collateral is to be made shall constitute reasonable
notification. The Collateral Agent shall not be obligated to make any
sale or other disposition of any Collateral regardless of notice of sale having
been given. The Collateral Agent may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor,
and
such sale may, without further notice, be made at the time and place to which
it
was so adjourned. Each Grantor hereby waives any claims against the
Collateral Agent and the Holders arising by reason of the fact that the price
at
which its respective Collateral may have been sold at a private sale was less
than the price which might have been obtained at a public sale or was less
than
the aggregate amount of the Obligations, even if the Collateral Agent accepts
the first offer received and does not offer such Collateral to more than one
offeree, and waives all rights that any Grantor may have to require that all
or
any part of such Collateral be marshaled upon any sale (public or private)
thereof. Each Grantor hereby acknowledges that (i) any such sale
of its respective Collateral by the Collateral Agent shall be made without
warranty, (ii) the Collateral Agent may specifically disclaim any
warranties of title, possession, quiet enjoyment or the like, and
(iii) such actions set forth in clauses (i) and (ii) above shall not
adversely affect the commercial reasonableness of any such sale of
Collateral. In addition to the foregoing, (1) upon written
notice to any Grantor from the Collateral Agent after and during the continuance
of an Event of Default, such Grantor shall cease any use of the Intellectual
Property or any trademark, patent or copyright similar thereto for any purpose
described in such notice; (2) the Collateral Agent may, at any time and from
time to time after and during the continuance of an Event of Default, upon
10
days’ prior notice to such Grantor, license, whether general, special or
otherwise, and whether on an exclusive or non-exclusive basis, any of the
Intellectual Property, throughout the universe for such term or terms, on such
conditions, and in such manner, as the Collateral Agent shall in its sole
discretion determine; and (3) the Collateral Agent may, at any time, pursuant
to
the authority granted in Section 6 hereof (such authority being effective
upon the occurrence and during the continuance of an Event of Default), execute
and deliver on behalf of such Grantor, one or more instruments of assignment
of
the Intellectual Property (or any application or registration thereof), in
form
suitable for filing, recording or registration in any country.
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(b) Any
cash held by the Collateral Agent as Collateral and all Cash Proceeds received
by the Collateral Agent in respect of any sale of or collection from, or other
realization upon, all or any part of the Collateral shall be applied (after
payment of any amounts payable to the Collateral Agent pursuant to Section
8 hereof) by the Collateral Agent against, all or any part of the
Obligations in such order as the Collateral Agent shall elect, consistent with
the provisions of the Amendment Agreement. Any surplus of such cash
or Cash Proceeds held by the Collateral Agent and remaining after the
indefeasible payment in full in cash of all of the Obligations shall be paid
over to whomsoever shall be lawfully entitled to receive the same or as a court
of competent jurisdiction shall direct.
-18-
(c) In
the event that the proceeds of any such sale, collection or realization are
insufficient to pay all amounts to which the Collateral Agent and the Holders
are legally entitled, each Grantor shall be liable for the deficiency, together
with interest thereon at the highest rate specified in the Notes for interest
on
overdue principal thereof or such other rate as shall be fixed by applicable
law, together with the costs of collection and the reasonable fees, costs,
expenses and other client charges of any attorneys employed by the Collateral
Agent to collect such deficiency.
(d) Each
Grantor hereby acknowledges that if the Collateral Agent complies with any
applicable state, provincial or federal law requirements in connection with
a
disposition of the Collateral, such compliance will not adversely affect the
commercial reasonableness of any sale or other disposition of the
Collateral.
(e) The
Collateral Agent shall not be required to marshal any present or future
collateral security (including, but not limited to, this Agreement and the
Collateral) for, or other assurances of payment of, the Obligations or any
of
them or to resort to such collateral security or other assurances of payment
in
any particular order, and all of the Collateral Agent’s rights hereunder and in
respect of such collateral security and other assurances of payment shall be
cumulative and in addition to all other rights, however existing or
arising. To the extent that any Grantor lawfully may agree, each
Grantor hereby agrees that it will not invoke any law relating to the marshaling
of collateral which might cause delay in or impede the enforcement of the
Collateral Agent’s rights under this Agreement or under any other instrument
creating or evidencing any of the Obligations or under which any of the
Obligations is outstanding or by which any of the Obligations is secured or
payment thereof is otherwise assured, and, to the extent that it lawfully may,
each Grantor hereby irrevocably waives the benefits of all such
laws.
SECTION
8. Indemnity and Expenses.
(a) Each
Grantor agrees, jointly and severally, to defend, protect, indemnify and hold
the Collateral Agent and each of the Holders, jointly and severally, harmless
from and against any and all claims, damages, losses, liabilities, obligations,
penalties, fees, costs and expenses (including, without limitation, reasonable
legal fees, costs, expenses, and disbursements of such Person’s counsel) to the
extent that they arise out of or otherwise result from this Agreement
(including, without limitation, enforcement of this Agreement), except to the
extent resulting from such Person’s gross negligence or willful misconduct, as
determined by a final judgment of a court of competent
jurisdiction.
(b) Each
Grantor agrees, jointly and severally, to pay to the Collateral Agent upon
demand the amount of any and all costs and expenses, including the reasonable
fees, costs, expenses and disbursements of counsel for the Collateral Agent
and
of any experts and agents (including, without limitation, any collateral trustee
which may act as agent of the Collateral Agent), which the Collateral Agent
may
incur in connection with (i) the preparation, negotiation, execution,
delivery, recordation, administration, amendment, waiver or other modification
or termination of this Agreement, (ii) the custody, preservation, use or
operation of, or the sale of, collection from, or other realization upon, any
Collateral, (iii) the exercise or enforcement of any of the rights of the
Collateral Agent hereunder, or (iv) the failure by any Grantor to perform
or observe any of the provisions hereof.
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SECTION
9. Notices, Etc. All notices and other
communications provided for hereunder shall be in writing and shall be mailed
(by certified mail, postage prepaid and return receipt requested), telecopied,
e-mailed or delivered to the addressee at its address specified on the signature
pages below; or as to any such Person, at such other address as shall be
designated by such Person in a written notice to all other parties hereto
complying as to delivery with the terms of this Section 9. All
such notices and other communications shall be effective (a) if sent by
certified mail, return receipt requested, when received or three days after
deposited in the mails, whichever occurs first, (b) if telecopied or e-mailed,
when transmitted (during normal business hours) and confirmation is received,
and otherwise, the day after the notice or communication was transmitted and
confirmation is received, or (c) if delivered in person, upon
delivery.
SECTION
10. Miscellaneous.
(a) No
amendment of any provision of this Agreement shall be effective unless it is
in
writing and signed by each Grantor, the Required Holders (as defined in the
Note) and the Collateral Agent, and no waiver of any provision of this
Agreement, and no consent to any departure by each Grantor therefrom, shall
be
effective unless it is in writing and signed by each Grantor and the Collateral
Agent, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.
(b) No
failure on the part of the Collateral Agent to exercise, and no delay in
exercising, any right hereunder or under any of the other Transaction Documents
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. The rights and remedies of the Collateral Agent or
any Holder provided herein and in the other Transaction Documents are cumulative
and are in addition to, and not exclusive of, any rights or remedies provided
by
law. The rights of the Collateral Agent or any Holder under any of
the other Transaction Documents against any party thereto are not conditional
or
contingent on any attempt by such Person to exercise any of its rights under
any
of the other Transaction Documents against such party or against any other
Person, including but not limited to, any Grantor.
(c) Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions
hereof or thereof or affecting the validity or enforceability of such provision
in any other jurisdiction.
(d) This
Agreement, subject to the Permitted Liens, shall create a continuing security
interest in the Collateral and shall (i) remain in full force and effect until
the indefeasible payment in full in cash of the Obligations, and (ii) be binding
on each Grantor and all other Persons who become bound as debtor to this
Agreement in accordance with Section 9-203(d) of the Code and shall inure,
together with all rights and remedies of the Collateral Agent and the Holders
hereunder, to the benefit of the Collateral Agent and the Holders and their
respective permitted successors, transferees and assigns. Without
limiting the generality of clause (ii) of the immediately preceding sentence,
without notice to any Grantor, the Collateral Agent and the Holders may assign
or otherwise transfer their rights and obligations under this Agreement and
any
of the other Transaction Documents, to any other Person and such other Person
shall thereupon become vested with all of the benefits in respect thereof
granted to the Collateral Agent and the Holders herein or
otherwise. Upon any such assignment or transfer, all references in
this Agreement to the Collateral Agent or any such Holder shall mean the
assignee of the Collateral Agent or such Holder. None of the rights
or obligations of any Grantor hereunder may be assigned or otherwise transferred
without the prior written consent of the Collateral Agent, and any such
assignment or transfer without the consent of the Collateral Agent shall be
null
and void.
-20-
(e) Upon
the indefeasible payment in full in cash of the Obligations, (i) this Agreement
and the security interests created hereby shall terminate and all rights to
the
Collateral shall revert to the respective Grantor that granted such security
interests hereunder, and (ii) the Collateral Agent will, upon any Grantor’s
request and at such Grantor’s expense, (A) return to such Grantor such of the
Collateral as shall not have been sold or otherwise disposed of or applied
pursuant to the terms hereof, and (B) execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such termination,
all without any representation, warranty or recourse whatsoever.
(f) THIS
AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE
LAWS OF THE STATE OF NEW YORK, EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF
LAW
AND EXCEPT TO THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION
AND
THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE SECURITY INTEREST CREATED
HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE
GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW
YORK.
(g) ANY
LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY DOCUMENT
RELATED HERETO MAY BE BROUGHT IN XXX XXXXXX XX XXX XXXXX XX XXX XXXX IN THE
COUNTY OF NEW YORK OR THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT
OF
NEW YORK, AND APPELLATE COURTS THEREOF, AND, BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH GRANTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
COURTS. EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING, WITHOUT LIMITATION,
ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUMNONCONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE BRINGING OF ANY SUCH ACTION, SUIT OR PROCEEDING IN SUCH RESPECTIVE
JURISDICTIONS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF
AS
IS DEEMED APPROPRIATE BY THE COURT.
(h) EACH
GRANTOR AND (BY ITS ACCEPTANCE OF THE BENEFITS OF THIS AGREEMENT) THE COLLATERAL
AGENT WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OF
THE OTHER TRANSACTION DOCUMENTS, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
ORAL OR WRITTEN STATEMENT OR OTHER ACTION OF THE PARTIES
HERETO.
-21-
(i) Each
Grantor irrevocably consents to the service of process of any of the aforesaid
courts in any such action, suit or proceeding by the mailing of copies thereof
by registered or certified mail (or any substantially similar form of mail),
postage prepaid, to any Grantor at its address provided herein, such service
to
become effective 10 days after such mailing.
(j) Nothing
contained herein shall affect the right of the Collateral Agent to serve process
in any other manner permitted by law or commence legal proceedings or otherwise
proceed against any Grantor or any property of any Grantor in any other
jurisdiction.
(k) Each
Grantor irrevocably and unconditionally waives any right it may have to claim
or
recover in any legal action, suit or proceeding referred to in this Section
any
special, exemplary, punitive or consequential damages.
(l) Section
headings herein are included for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.
(m) This
Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an
original, but all of which taken together constitute one in the same
Agreement.
(n) In
the event of any conflict between the terms of this Agreement, the Amendment
Agreement, or any of the other Transaction Documents or exhibits referred to
herein or therein, the terms of the Amendment Agreement shall
control.
[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]
-22-
IN
WITNESS WHEREOF, the Collateral Agent, the Required Holders and the Grantors
have each caused this Agreement to be executed and delivered by its officer
thereunto duly authorized, as of the date first above written.
CHARYS
HOLDING COMPANY, INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
Chief Executive Officer
|
||
Address:
0000 Xxxxxxxxx Xxxxxx
|
||
Xxxx,
Xxxxx X000, Xxxxxxx, Xxxxxxx 00000
|
||
Telephone:
000-000-0000
|
||
Facsimile:
000-000-0000
|
||
Email:
xxxx@xxxxxx.xxx
|
||
PERSONNEL
RESOURCES OF GEORGIA,
INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
000 Xxxxx Xxxxxxxxxxxx Xxxxx, Xxxxx 0X, Xxxxxxxxxx, Xxxxx Xxxxxxxx
00000
|
||
Telephone:
000-000-0000
|
||
Facsimile:
000-000-0000
|
||
CCI
TELECOM, INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
00000 Xxx Xxxx Xxxx, Xxx Xxxxxxx, Xxxxx 00000
|
||
Telephone:
000-000-0000
|
||
Facsimile:
000-000-0000
|
METHOD
IQ, INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
0000 Xxxxxxxx Xxxxxxx, Xxxxx 000, Xxxxxxxxxx, Xxxxxxx
00000
|
||
Telephone:
000-000-0000
|
||
Facsimile:
000-000-0000
|
||
VIASYS
SERVICES, INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
00 Xxxx Xxxx Xxxxx, Xxxxxxxx, Xxxxxxx 00000
|
||
Telephone:
000-000-0000
|
||
Facsimile:
000-000-0000
|
||
VIASYS
NETWORK SERVICES, INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
00 Xxxx Xxxx Xxxxx, Xxxxxxxx, Xxxxxxx 00000
|
||
Telephone:
000-000-0000
|
||
Facsimile:
000-000-0000
|
||
VSI
REAL ESTATE HOLDING, INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
00 Xxxx Xxxx Xxxxx, Xxxxxxxx, Xxxxxxx 00000
|
||
Telephone:
000-000-0000
|
||
Facsimile:
000-000-0000
|
CROCHET
AND BOREL SERVICES, INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
000 Xxxx Xxxx Xxxxxxx, Xxxx Xxxxxx, Xxxxx 00000
|
||
Telephone:
000-000-0000
|
||
Facsimile:
000-000-0000
|
||
DIGITAL
COMMUNICATION SERVICES, INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
00 Xxxxx 0xx Xxxxxx, Xxxxxx Xxxxx, Xxxxxxx 00000
|
||
AYIN
HOLDING COMPANY INC.
|
||
By:
|
||
Name:
Xxxxx X. Xxx, Xx.
|
||
Title:
|
||
Address:
|
||
Telephone:
|
||
Facsimile:
|
THIS
AMENDED AND RESTATED SECURITY AGREEMENT ACCEPTED BY:
IMPERIUM
ADVISERS, LLC
|
||
as
Collateral Agent
|
||
By:
|
||
Name:
|
Xxxxxxx
Xxxxxxx
|
|
Title:
|
General
Counsel
|
|
Address:
|
000
Xxxx 00xx Xxxxxx
|
|
00xx
Xxxxx
|
||
Xxx
Xxxx, XX 00000
|
||
Telephone:
|
(000)
000-0000
|
|
Facsimile:
|
(000)
000-0000
|
|
IMPERIUM
MASTER FUND, LTD.
|
||
as
Noteholder
|
||
By:
|
||
Name:
|
Xxxxxxx
Xxxxxxx
|
|
Title:
|
General
Counsel
|
|
Address:
|
c/o
Imperium Advisers, LLC
|
|
000
Xxxx 00xx Xxxxxx
|
||
00xx
Xxxxx
|
||
Xxx
Xxxx, XX 00000
|
||
Telephone:
|
(000)
000-0000
|
|
Facsimile:
|
(000)
000-0000
|
|
XXX
FAMILY TRUST
|
||
as
Noteholder
|
||
By:
|
||
Name:
|
||
Title:
|
||
Address:
|
c/o
Imperium Advisers, LLC
|
|
000
Xxxx 00xx Xxxxxx
|
||
00xx
Xxxxx
|
||
Xxx
Xxxx, XX 00000
|
||
Telephone:
|
(000)
000-0000
|
|
Facsimile:
|
(000)
000-0000
|
|
XXXX
XXXXXXXXXX
|
||
as
Noteholder
|
||
Address:
|
c/o
Imperium Advisers, LLC
|
|
000
Xxxx 00xx Xxxxxx
|
||
00xx
Xxxxx
|
||
Xxx
Xxxx, XX 00000
|
||
Telephone:
|
(000)
000-0000
|
|
Facsimile:
|
(000)
000-0000
|
SCHEDULE
I
LEGAL
NAMES; ORGANIZATIONAL IDENTIFICATION NUMBERS; STATES OR
JURISDICTION
OF ORGANIZATION
Charys
Holding Company, Inc.
0000
Xxxxxxxxx Xxxxxx Xxxx
Xxxxx
X000
Xxxxxxx,
XX 00000
|
DE
|
3791748
|
Personnel
Resources of Georgia, Inc.
000
X Xxxxxxx Xx
Xxxxxxxxxx,
XX 00000
|
GA
|
0104816
|
CCI
Telecom, Inc.
00000
X. Xxxxxx Xxxxxxx
Xxxxx
000
Xxxxxxx,
XX 00000
|
NV
|
X-00000-0000
|
Xxxxxx
IQ, Inc.
0000
Xxxxxxxx Xxxx
Xxxxx
000
Xxxxxxxxxx,
XX 00000
|
GA
|
0153426
|
Viasys
Services, Inc.
0000
Xxxxx Xxxxx
Xxxxxxxx,
XX 00000
|
FL
|
G09210
|
Viasys
Network Services, Inc.
0000
Xxxxx Xxxxx
Xxxxxxxx,
XX 00000
|
FL
|
P05000012213
|
VSI
Real Estate Holding, Inc.
|
FL
|
P06000019107
|
Crochet
& Borel Services, Inc.
000
Xxxx Xxxx Xxx
Xxxx
Xxxxxx, XX 00000
|
TX
|
138054100
|
Digital
Communication Services, Inc.
00
Xxxxx 0xx
Xxxxxx
Xxxxx, XX 00000
|
KY
|
0416787
|
Ayin
Holding Company Inc.
00000
XX 000
Xxxxx
000
Xxxxxxx,
XX 00000
|
DE
|
4147158
|
SCHEDULE
II
LEGAL
NAMES; ORGANIZATIONAL IDENTIFICATION NUMBERS; STATES OR
JURISDICTION
OF ORGANIZATION
LFC,
Inc.
00000
XX 000
Xxxxx
000
Xxxxxxx,
XX 00000
|
DE
|
4145595
|
Aeon
Technologies, Inc.
00000
X. Xxxxxx Xxxxxxx
Xxxxx
000
Xxxxxxx,
XX 00000
|
NV
|
C28977-2000
|
Berkshire
Wireless, Inc.
000
Xxxxxxxx Xx
Xxx,
XX 00000
|
MA
|
000606988
|
CCI
Integrated Solutions, Inc.
00000
X. Xxxxxx Xxxxxxx
Xxxxx
000
Xxxxxxx,
XX 00000
|
TX
|
01602617
|
Xxxxxxxx
Site Acq., Inc.
000
Xxxxxxxxxxxx Xx
Xxxxxxxxx,
XX 00000
|
LA
|
34675000D
|
Ayin
Tower Management Services, Inc.
00000
XX 000
Xxxxx
000
Xxxxxxx,
XX 00000
|
DE
|
4233831
|
Complete
Tower Sources, Inc.
000
Xxxxxxx Xxxx
Xxxxxxxx,
XX 00000
|
LA
|
35400877D
|
Cotton
Restoration of Central Texas, LP
00000
XX Xxxxxxx
Xxxxxxx,
XX 00000
|
TX
|
800008991
|
Cotton
Commercial USA, LP
00000
XX Xxxxxxx
Xxxxxxx,
XX 00000
|
TX
|
800433352
|
Cotton
Holdings 1, Inc.
00000
XX Xxxxxxx
Xxxxxxx,
XX 00000
|
DE
|
3451808
|
C&B/Cotton
Holdings, Inc.
00000
XX Xxxxxxx
Xxxxxxx,
XX 00000
|
DE
|
4236638
|
EXHIBIT
A
ASSIGNMENT
FOR SECURITY
[TRADEMARKS]
[PATENTS] [COPYRIGHTS]
WHEREAS,
______________________________ (the “Assignor”) [has
adopted, used and is using, and holds all right, title and interest in and
to,
the trademarks and service marks listed on the annexed Schedule 1A,
which trademarks and service marks are registered or applied for in the United
States Patent and Trademark Office (the “Trademarks”)] [holds all right,
title and interest in the letter patents, design patents and utility patents
listed on the annexed Schedule 1A, which patents are issued or
applied for in the United States Patent and Trademark Office (the
“Patents”)] [holds all right, title and interest in the copyrights listed
on the annexed Schedule 1A, which copyrights are registered in the United
States Copyright Office (the “Copyrights”)];
WHEREAS,
the Assignor has entered into an Amended and Restated Security Agreement, dated
as of April 5, 2007 (as amended, restated or otherwise modified from time to
time the “Security Agreement”), in favor IMPERIUM ADVISERS, LLC, as
collateral agent for certain purchasers (the “Assignee”);
WHEREAS,
pursuant to the Security Agreement, the Assignor has assigned to the Assignee
and granted to the Assignee for the benefit of the Holders (as defined in the
Security Agreement) a continuing security interest in all right, title and
interest of the Assignor in, to and under the [Trademarks, together with, among
other things, the good-will of the business symbolized by the Trademarks]
[Patents] [Copyrights] and the applications and registrations thereof, and
all
proceeds thereof, including, without limitation, any and all causes of action
which may exist by reason of infringement thereof and any and all damages
arising from past, present and future violations thereof (the
“Collateral”), to secure the payment, performance and observance of the
“Obligations” (as defined in the Security Agreement);
NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency
of
which are hereby acknowledged, the Assignor does hereby pledge, convey, sell,
assign, transfer and set over unto the Assignee and grants to the Assignee
for
the benefit of the Holders a continuing security interest in the Collateral
to
secure the prompt payment, performance and for the benefit of the Holders
observance of the Obligations.
The
Assignor does hereby further acknowledge and affirm that the rights and remedies
of the Assignee with respect to the Collateral are more fully set forth in
the
Security Agreement, the terms and provisions of which are hereby incorporated
herein by reference as if fully set forth herein.
IN
WITNESS WHEREOF, the Assignor has caused this Assignment to be duly executed
by
its officer thereunto duly authorized as of _____________, 20__
[GRANTORS]
|
|||
By:
|
|||
Name:
|
|||
Title:
|
STATE
OF
____________
ss.:
COUNTY
OF
__________
On
this
____ day of _______________, 20__, before me personally came ________________,
to me known to be the person who executed the foregoing instrument, and who,
being duly sworn by me, did depose and say that s/he is the ________________
of
_______________________________________, a ____________________, and that s/he
executed the foregoing instrument in the firm name of
_______________________________________, and that s/he had authority to sign
the
same, and s/he acknowledged to me that he executed the same as the act and
deed
of said firm for the uses and purposes therein mentioned.
SCHEDULE
1A TO ASSIGNMENT FOR SECURITY
[Trademarks
and Trademark Applications]
[Patent
and Patent Applications]
[Copyright
and Copyright Applications]
Owned
by
|
EXHIBIT
B
ASSUMPTION
AGREEMENT
ASSUMPTION
AGREEMENT, dated as of _________, _____ made by __________________, a __________
corporation (the “Additional Grantor”), in favor of the Holders pursuant to the
Amendment Agreement referred to below. All capitalized terms not defined herein
shall have the meaning ascribed to them in such Amendment
Agreement.
W
I T N E
S S E T H :
WHEREAS,
Charys Holding Company, Inc.,
a Delaware corporation (the “Company”), and the Holders have entered into an
Amendment Agreement, dated as of April 5, 2007 (as amended, supplemented or
otherwise modified from time to time, the “Amendment Agreement”);
WHEREAS,
in connection with the
Amendment Agreement, the Company and its subsidiaries (other than the Additional
Grantor) have entered into an amended and restated Security Agreement, dated
as
of the date of the Amendment Agreement (as amended, supplemented or otherwise
modified from time to time, the “Security Agreement”) in favor of the
Holders;
WHEREAS,
the Amendment Agreement
requires the Additional Grantor to become a party to the Security Agreement;
and
WHEREAS,
the Additional Grantor has
agreed to execute and deliver this Assumption Agreement in order to become
a
party to the Security Agreement;
NOW,
THEREFORE, IT IS AGREED:
1. Security
Agreement. By executing and delivering this Assumption Agreement,
the Additional Grantor hereby becomes a party to the Security Agreement as
a
Grantor thereunder with the same force and effect as if originally named therein
as a Grantor and, without limiting the generality of the foregoing, hereby
expressly assumes all obligations and liabilities of a Grantor
thereunder. The Additional Grantor hereby represents and warrants
that each of the representations and warranties contained in Section 4 of the
Security Agreement is true and correct on and as the date hereof as to such
Additional Grantor (after giving effect to this Assumption Agreement) as if
made
on and as of such date.
2. Governing
Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE
TO
CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW
YORK.
3. Controlling
Agreement. In the event of any conflict between the provisions of
this Assumption Agreement, the Amendment Agreement, and any of the other
Transaction Documents, the terms of the Amendment Agreement shall
control.
IN
WITNESS WHEREOF, the undersigned has
caused this Assumption Agreement to be duly executed and delivered as of the
date first above written.
[ADDITIONAL
GRANTOR]
|
||
By:
|
||
Title:
|
||
Name:
|