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AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

Indenture Agreement

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT | Document Parties: AEG PHOTOCONDUCTOR CORPORATION | BIOLUCENT, LLC | CRUISER, INC | Cytyc Corporation | CYTYC DEVELOPMENT COMPANY LLC | CYTYC INTERIM, INC | CYTYC INTERNATIONAL, INC | CYTYC PRENATAL PRODUCTS CORP | CYTYC SURGICAL PRODUCTS II, LIMITED PARTNERSHIP | CYTYC SURGICAL PRODUCTS III, INC | CYTYC SURGICAL PRODUCTS, LIMITED PARTNERSHIP | DIRECT RADIOGRAPHY CORP | Goldman Sachs Credit Partners LP | HOLOGIC LIMITED PARTNERSHIP | Hologic, Inc | R2 TECHNOLOGY, INC | SST MERGER CORP | SUROS SURGICAL SYSTEMS, INC | THUNDER TECH CORP You are currently viewing:
This Indenture Agreement involves

AEG PHOTOCONDUCTOR CORPORATION | BIOLUCENT, LLC | CRUISER, INC | Cytyc Corporation | CYTYC DEVELOPMENT COMPANY LLC | CYTYC INTERIM, INC | CYTYC INTERNATIONAL, INC | CYTYC PRENATAL PRODUCTS CORP | CYTYC SURGICAL PRODUCTS II, LIMITED PARTNERSHIP | CYTYC SURGICAL PRODUCTS III, INC | CYTYC SURGICAL PRODUCTS, LIMITED PARTNERSHIP | DIRECT RADIOGRAPHY CORP | Goldman Sachs Credit Partners LP | HOLOGIC LIMITED PARTNERSHIP | Hologic, Inc | R2 TECHNOLOGY, INC | SST MERGER CORP | SUROS SURGICAL SYSTEMS, INC | THUNDER TECH CORP

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Title: AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT
Governing Law: New York     Date: 7/17/2008
Industry: Medical Equipment and Supplies     Sector: Healthcare

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT, Parties: aeg photoconductor corporation , biolucent  llc , cruiser  inc , cytyc corporation , cytyc development company llc , cytyc interim  inc , cytyc international  inc , cytyc prenatal products corp , cytyc surgical products ii  limited partnership , cytyc surgical products iii  inc , cytyc surgical products  limited partnership , direct radiography corp , goldman sachs credit partners lp , hologic limited partnership , hologic  inc , r2 technology  inc , sst merger corp , suros surgical systems  inc , thunder tech corp
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Exhibit 10.2

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

dated as of July 17, 2008

between

EACH OF THE GRANTORS PARTY HERETO

and

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Collateral Agent

 


TABLE OF CONTENTS

 

          PAGE
SECTION 1.     DEFINITIONS; GRANT OF SECURITY    1
    1.1    General Definitions    1
    1.2    Definitions; Interpretation    7
SECTION 2.     GRANT OF SECURITY    8
    2.1    Grant of Security    8
    2.2    Certain Limited Exclusions    8
SECTION 3.     SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE    9
    3.1    Security for Obligations    9
    3.2    Continuing Liability Under Collateral    10
SECTION 4.     CERTAIN PERFECTION REQUIREMENTS    10
    4.1    Delivery Requirements    10
    4.2    Control Requirements    10
    4.3    Intellectual Property Recording Requirements    11
    4.4    Other Actions    13
    4.5    Timing and Notice    13
SECTION 5.     REPRESENTATIONS AND WARRANTIES    14
    5.1    Grantor Information & Status    14
    5.2    Collateral Identification, Special Collateral    14
    5.3    Ownership of Collateral and Absence of Other Liens    15
    5.4    Status of Security Interest    16
    5.5    Goods & Receivables    16
    5.6    Pledged Equity Interests, Investment Related Property    17
    5.7    Intellectual Property    17
    5.8    Miscellaneous    19
SECTION 6.     COVENANTS AND AGREEMENTS    19
    6.1    Grantor Information & Status    19
    6.2    Collateral Identification; Special Collateral    19
    6.3    Ownership of Collateral and Absence of Other Liens    20
    6.4    Status of Security Interest    20
    6.5    Goods & Receivables    20
    6.6    Pledged Equity Interests, Investment Related Property    22
    6.7    Intellectual Property    24
    6.8    Miscellaneous    26
SECTION 7.     ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS    26
    7.1    Access; Right of Inspection    26
    7.2    Further Assurances    26
    7.3    Additional Grantors    27
SECTION 8.     COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT    28
    8.1    Power of Attorney    28

 

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    8.2    No Duty on the Part of Collateral Agent or Secured Parties    29
SECTION 9.     REMEDIES    29
    9.1    Generally    29
    9.2    Application of Proceeds    30
    9.3    Sales on Credit    31
    9.4    Investment Related Property    31
    9.5    Grant of Intellectual Property License    31
    9.6    Intellectual Property    32
    9.7    Cash Proceeds; Deposit Accounts    33
SECTION 10.     COLLATERAL AGENT    34
SECTION 11.     CONTINUING SECURITY INTEREST; TRANSFER OF LOANS    34
SECTION 12.     STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM    35
SECTION 13.     MISCELLANEOUS    35
SECTION 14.     AMENDMENT AND RESTATEMENT    36
SECTION 15.     REAFFIRMATION AND GRANT OF SECURITY INTERESTS    36
SCHEDULE 5.1 — GENERAL INFORMATION   
SCHEDULE 5.2 — COLLATERAL IDENTIFICATION   
SCHEDULE 5.4 — FINANCING STATEMENTS   
SCHEDULE 5.5 — LOCATION OF EQUIPMENT AND INVENTORY   
SCHEDULE 5.6 — PLEDGED EQUITY INTERESTS   
SCHEDULE 5.7 — INTELLECTUAL PROPERTY   
EXHIBIT A — PLEDGE SUPPLEMENT   
EXHIBIT B — UNCERTIFICATED SECURITIES CONTROL AGREEMENT   
EXHIBIT C — SECURITIES ACCOUNT CONTROL AGREEMENT   
EXHIBIT D — DEPOSIT ACCOUNT CONTROL AGREEMENT   
EXHIBIT E — TRADEMARK SECURITY AGREEMENT   
EXHIBIT F — COPYRIGHT SECURITY AGREEMENT   
EXHIBIT G — PATENT SECURITY AGREEMENT   

 

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This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT dated as of July 17, 2008 between Hologic, Inc. (the “ Borrower ”) and certain domestic subsidiaries of the Borrower party hereto from time to time, whether as an original signatory hereto or as an Additional Grantor (as herein defined) (other than the Collateral Agent, each, a “ Grantor ”), and Goldman Sachs Credit Partners L.P. (“ GSCP ”), as collateral agent for the Secured Parties (as herein defined) (in such capacity as collateral agent, together with its successors and permitted assigns, the “ Collateral Agent ”).

RECITALS:

WHEREAS , the Borrower and certain of the other Grantors entered into a Pledge and Security Agreement dated as of October 22, 2007 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the “ Existing Security Agreement ”) with the Collateral Agent;

WHEREAS , subject to the terms and conditions of that certain Amended and Restated Credit and Guaranty Agreement dated as of the date hereof (as it may be refinanced, amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement” ) by and among the Borrower, the other Grantors party thereto, as Guarantors, the Collateral Agent, the other Agents party thereto and the Lenders party thereto from time to time;

WHEREAS , subject to the terms and conditions of the Credit Agreement, certain Grantors may enter into one or more Hedge Agreements with one or more Lender Counterparties;

WHEREAS , in consideration of the extensions of credit and other accommodations of the Lenders and the Lender Counterparties as set forth in the Credit Agreement and the Hedge Agreements, respectively, each Grantor has agreed to secure such Grantor’s obligations under the Credit Documents and the Hedge Agreements as set forth herein; and

WHEREAS , pursuant to Section 3.2(j)(i) of the Credit Agreement, the Grantors are required to execute and deliver certain agreements and documents in order to perfect or continue the perfection of the Collateral Agent’s security interest in the Collateral on the terms set forth herein and accordingly are hereby amending and restating the Existing Security Agreement in its entirety as set forth herein in order to assure such perfection and/or continued perfection, as the case may be;

NOW, THEREFORE , in consideration of the premises and the agreements, provisions and covenants herein contained, each Grantor and the Collateral Agent agree as follows:

SECTION 1. DEFINITIONS; GRANT OF SECURITY.

1.1 General Definitions. In this Agreement, the following terms shall have the following meanings:

Additional Grantors ” shall have the meaning assigned in Section 7.3.

Agreement ” shall mean this Amended and Restated Pledge and Security Agreement dated as of July 17, 2008, as it may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, in accordance with the terms of the Credit Agreement.

 


Borrower ” shall have the meaning set forth in the preamble.

Cash Proceeds ” shall have the meaning assigned in Section 9.7.

Collateral ” shall have the meaning assigned in Section 2.1.

Collateral Account ” shall mean any account established by the Collateral Agent.

Collateral Agent ” shall have the meaning set forth in the preamble.

Collateral Records ” shall mean books, records, ledger cards, files, correspondence, customer lists, supplier lists, blueprints, technical specifications, manuals, computer software and related documentation, computer printouts, tapes, disks and other electronic storage media and related data processing software and similar items that at any time evidence or contain information relating to any of the Collateral or are otherwise necessary or helpful in the collection thereof or realization thereupon.

Collateral Support ” shall mean all property (real or personal) assigned, hypothecated or otherwise securing any Collateral and shall include any security agreement or other agreement granting a lien or security interest in such real or personal property.

Control ” shall mean: (1) with respect to any Deposit Accounts, control within the meaning of Section 9-104 of the UCC, (2) with respect to any Securities Accounts, Security Entitlements, Commodity Contract or Commodity Account, control within the meaning of Section 9-106 of the UCC, (3) with respect to any Uncertificated Securities, control within the meaning of Section 8-106(c) of the UCC, (4) with respect to any Certificated Security, control within the meaning of Section 8-106(a) or (b) of the UCC, (5) with respect to any Electronic Chattel Paper, control within the meaning of Section 9-105 of the UCC, (6) with respect to Letter-of-Credit Rights, control within the meaning of Section 9-107 of the UCC and (7) with respect to any “transferable record”(as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction), control within the meaning of Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in the jurisdiction relevant to such transferable record.

Copyright Licenses ” shall mean any and all agreements, licenses and covenants (whether or not in writing) providing for the granting of any right in or to any Copyright or otherwise providing for a covenant not to sue (whether such Grantor is licensee or licensor thereunder) including, without limitation, each agreement required to be listed in Schedule 5.2(II) under the heading “Copyright Licenses” (as such schedule may be amended or supplemented from time to time).

Copyright Security Agreement ” means a Copyright Security Agreement substantially in the form of Exhibit F.

Copyrights ” shall mean all United States, and foreign copyrights (including Community designs), including but not limited to copyrights in software and all rights in and to databases, and all Mask Works (as defined under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or unregistered and whether or not the underlying works of authorship have

 

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been published, moral rights, reversionary interests, termination rights, and, with respect to any and all of the foregoing: (i) all registrations and applications therefor including, without limitation, the registrations and applications required to be listed in Schedule 5.2(II) under the heading “Copyrights” (as such schedule may be amended or supplemented from time to time), (ii) all extensions and renewals thereof, (iii) the right to sue or otherwise recover for past, present and future infringements thereof, and (iv) all Proceeds of the foregoing, including, without limitation, licenses, fees, royalties, income, payments, claims, damages and proceeds of suit now or hereafter due and/or payable with respect thereto, and (v) all other rights of any kind accruing thereunder or pertaining thereto throughout the world.

Credit Agreement ” shall have the meaning set forth in the recitals.

Excluded Asset ” shall mean any asset of any Grantor excluded from the security interest hereunder by virtue of Section 2.2 hereof but only to the extent, and for so long as, so excluded thereunder.

Excluded Foreign Equity Interests ” shall mean (i) the capital stock of and/or any other equity interests in any Foreign Subsidiary that is not a First-Tier Foreign Subsidiary and (ii) the capital stock of any First-Tier Foreign Subsidiary not required to be pledged pursuant to the terms of Section 5.10(b) of the Credit Agreement.

Existing Security Agreement ” shall have the meaning set forth in the recitals.

Foreign Intellectual Property ” shall mean any Collateral (whether now owned or existing or hereafter acquired, created, developed or arising) consisting of foreign, international, or multi-national issued/registered Patents, registered Trademarks, registered Copyrights, or any applications for the foregoing.

Grantors ” shall have the meaning set forth in the preamble.

GSCP ” shall have the meaning set forth in the preamble.

Indemnitee ” shall mean the Collateral Agent, and its and its Affiliates’ officers, partners, directors, trustees, employees, agents.

Insurance ” shall mean (i) all insurance policies covering any or all of the Collateral (regardless of whether the Collateral Agent is the loss payee thereof) and (ii) any key man life insurance policies.

Intellectual Property ” shall mean, the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under the laws of the United States (or of any state or political subdivision thereof) or of any Foreign Jurisdiction or otherwise, including without limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets, and the Trade Secret Licenses, and the right to sue or otherwise recover for past, present and future infringement or other impairment thereof, including the right to receive all Proceeds therefrom, including without limitation license fees, royalties, income, payments, claims, damages and proceeds of suit, now or hereafter due and/or payable with respect thereto.

Intellectual Property Licenses ” shall mean, collectively, the Copyright Licenses, Patent Licenses, Trademark Licenses and Trade Secret Licenses.

 

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Investment Accounts ” shall mean the Collateral Account, Securities Accounts, Commodities Accounts and Deposit Accounts.

Investment Related Property ” shall mean: (i) all “investment property” (as such term is defined in Article 9 of the UCC) and (ii) all of the following (regardless of whether classified as investment property under the UCC): all Pledged Equity Interests, Pledged Debt, the Investment Accounts and certificates of deposit.

Majority Holder ” shall have the meaning set forth in Section 10.

Material Intellectual Property ” shall mean any item of Intellectual Property included in the Collateral which is material to the business of the Grantors, taken as a whole, or is otherwise of material value to the Grantors, taken as a whole.

Non-Assignable Contract ” shall mean any agreement, contract or license to which any Grantor is a party that by its terms purports to restrict or prevent the assignment or granting of a security interest therein (either by its terms or by any federal or state statutory prohibition or otherwise irrespective of whether such prohibition or restriction is enforceable under Section 9-406 through 409 of the UCC).

Patent Licenses ” shall mean all agreements, licenses and covenants (whether or not in writing) providing for the granting of any right in or to any Patent or otherwise providing for a covenant not to sue (whether such Grantor is licensee or licensor thereunder), including, without limitation, each agreement required to be listed in Schedule 5.2(II) under the heading “Patent Licenses” (as such schedule may be amended or supplemented from time to time).

Patent Security Agreement ” means a Patent Security Agreement substantially in the form of Exhibit G.

Patents ” shall mean all United States and foreign patents and certificates of invention, inventions or similar industrial property rights, and applications for any of the foregoing, including, but not limited to: (i) each patent and patent application required to be listed in Schedule 5.2(II) under the heading “Patents” (as such schedule may be amended or supplemented from time to time), (ii) all reissues, divisions, continuations, continuations-in-part, extensions, renewals, and reexaminations thereof, (iii) all improvements thereto, (iv) the right to sue or otherwise recover for past, present and future infringements thereof, (v) all Proceeds of the foregoing, including, without limitation, license fees, royalties, income, payments, claims, damages, and proceeds of suit now or hereafter due and/or payable with respect thereto, and (vi) all other rights of any kind accruing thereunder or pertaining thereto throughout the world.

Pledged Debt ” shall mean all indebtedness for borrowed money owed to such Grantor, whether or not evidenced by any Instrument, including, without limitation, all indebtedness described on Schedule 5.2(I) under the heading “Pledged Debt” (as such schedule may be amended or supplemented from time to time), issued by the obligors named therein, the instruments, if any, evidencing such any of the foregoing, and all interest, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing.

Pledged Equity Interests ” shall mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests and any other participation or interests in any equity or profits of any business entity including, without limitation, any trust.

 

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Pledged LLC Interests ” shall mean, other than any Excluded Asset, all interests in any limited liability company and each series thereof owned by any Grantor, including, without limitation, all limited liability company interests listed on Schedule 5.2(I) under the heading “Pledged LLC Interests” (as such schedule may be amended or supplemented from time to time) and the certificates, if any, representing such limited liability company interests and any interest of such Grantor on the books and records of such limited liability company or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such limited liability company interests that constitutes “Collateral” hereunder.

Pledged Partnership Interests ” shall mean, other than any Excluded Asset, all interests in any general partnership, limited partnership, limited liability partnership or other partnership owned by any Grantor, including, without limitation, all partnership interests listed on Schedule 5.2(I) under the heading “Pledged Partnership Interests” (as such schedule may be amended or supplemented from time to time) and the certificates, if any, representing such partnership interests and any interest of such Grantor on the books and records of such partnership or on the books and records of any securities intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such partnership interests that constitutes “Collateral” hereunder.

Pledged Stock ” shall mean, other than any Excluded Asset, all shares of capital stock owned by any Grantor, including, without limitation, all shares of capital stock described on Schedule 5.2(I) under the heading “Pledged Stock” (as such schedule may be amended or supplemented from time to time), and the certificates, if any, representing such shares and any interest of such Grantor in the entries on the books of the issuer of such shares or on the books of any securities intermediary pertaining to such shares, and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares that constitutes “Collateral” hereunder.

Pledge Supplement ” shall mean an agreement substantially in the form of Exhibit A hereto.

Receivables ” shall mean all rights to payment, whether or not earned by performance, for goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services rendered or to be rendered, including, without limitation all such rights constituting or evidenced by any Account, Chattel Paper, Instrument, General Intangible or Investment Related Property, together with all of Grantor’s rights, if any, in any goods or other property giving rise to such right to payment and all Collateral Support and Supporting Obligations related thereto and all Receivables Records.

Receivables Records ” shall mean (i) all original copies of all documents, instruments or other writings or electronic records or other Records evidencing the Receivables, (ii) all books, correspondence, credit or other files, Records, ledger sheets or cards, invoices, and other papers relating to Receivables, including, without limitation, all tapes, cards, computer tapes, computer discs, computer runs, record keeping systems and other papers and documents relating to the Receivables, whether in the possession or under the control of Grantor or any computer bureau or agent from time to time acting for Grantor or otherwise, (iii) all evidences of

 

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the filing of financing statements and the registration of other instruments in connection therewith, and amendments, supplements or other modifications thereto, notices to other creditors, secured parties or agents thereof, and certificates, acknowledgments, or other writings, including, without limitation, lien search reports, from filing or other registration officers, (iv) all credit information, reports and memoranda relating thereto and (v) all other written or non-written forms of information related in any way to the foregoing or any Receivable.

Secured Obligations ” shall have the meaning assigned in Section 3.1.

Secured Parties ” shall mean the Agents, Lenders, the Issuing Bank, the Lender Counterparties and the Cash Management Providers and shall include, without limitation, all former Agents, Lenders and Lender Counterparties to the extent that any Obligations owing to such Persons were incurred while such Persons were Agents, Lenders or Lender Counterparties and such Obligations have not been paid or satisfied in full.

Securities ” shall mean any stock, shares, partnership interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

Specified German Patents ” shall mean the patents issued/registered in the Republic of Germany, each of which is identified in Schedule 5.2(II) as a “Specified German Patent.”

Trademark Licenses ” shall mean any and all agreements, licenses and covenants (whether or not in writing) providing for the granting of any right in or to any Trademark or otherwise providing for a covenant not to sue or permitting co-existence (whether such Grantor is licensee or licensor thereunder), including, without limitation, each agreement required to be listed in Schedule 5.2(II) under the heading “Trademark Licenses” (as such schedule may be amended or supplemented from time to time).

Trademark Security Agreement ” means a Trademark Security Agreement substantially in the form of Exhibit E.

Trademarks ” shall mean all United States, and foreign trademarks, trade names, trade dress, corporate names, company names, business names, fictitious business names, Internet domain names, service marks, certification marks, collective marks, logos, other source or business identifiers, designs and general intangibles of a like nature, whether or not registered, and with respect to any and all of the foregoing: (i) all registrations and applications therefor including, without limitation, the registrations and applications required to be listed in Schedule 5.2(II) under the heading “Trademarks” (as such schedule may be amended or supplemented from time to time), (ii) all extensions or renewals of any of the foregoing, (iii) all of the goodwill of the business connected with the use of and symbolized by the foregoing, (iv) the right to sue for past, present and future infringement or dilution of any of the foregoing or for any injury to the related goodwill, (v) all Proceeds of the foregoing, including, without limitation, license fees, royalties, income, payments, claims, damages, and proceeds of suit now or hereafter due and/or payable with respect thereto, and (vi) all other rights of any kind accruing thereunder or pertaining thereto throughout the world.

 

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Trade Secret Licenses ” shall mean any and all agreements (whether or not in writing) providing for the granting of any right in or to Trade Secrets (whether such Grantor is licensee or licensor thereunder) including, without limitation, each agreement required to be listed in Schedule 5.2(II) under the heading “Trade Secret Licenses” (as such schedule may be amended or supplemented from time to time).

Trade Secrets ” shall mean all trade secrets and all other confidential or proprietary information and know-how whether or not such Trade Secret has been reduced to a writing or other tangible form, including all documents and things embodying, incorporating, or referring in any way to such Trade Secret, including but not limited to: (i) the right to sue or otherwise recover for past, present and future misappropriation or other violation thereof, (ii) all Proceeds of the foregoing, including, without limitation, license fees, royalties, income, payments, claims, damages, and proceeds of suit now or hereafter due and/or payable with respect thereto; and (iii) all other rights of any kind accruing thereunder or pertaining thereto throughout the world.

UCC ” shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided , however , that in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of, or remedies with respect to, any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions hereof relating to such perfection, priority or remedies.

United States ” shall mean the United States of America.

1.2 Definitions; Interpretation

(a) In this Agreement, the following capitalized terms shall have the meaning given to them in the UCC (and, if defined in more than one Article of the UCC, shall have the meaning given in Article 9 thereof): Account, Account Debtor, As-Extracted Collateral, Bank, Certificated Security, Chattel Paper, Consignee, Consignment, Consignor, Commercial Tort Claims, Commodity Account, Commodity Contract, Deposit Account, Document, Entitlement Order, Equipment, Electronic Chattel Paper, Farm Products, Fixtures, General Intangibles, Goods, Health-Care-Insurance Receivable, Instrument, Inventory, Letter-of-Credit Right, Manufactured Home, Money, Payment Intangible, Proceeds, Record, Securities Account, Securities Intermediary, Security Certificate, Security Entitlement, Supporting Obligations, Tangible Chattel Paper and Uncertificated Security.

(b) All other capitalized terms used herein (including the preamble and recitals hereto) and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement. The incorporation by reference of terms defined in the Credit Agreement shall survive any termination of the Credit Agreement until this agreement is terminated as provided in Section 11 hereof. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. References herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. The use herein of the word “include” or “including”, when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation” or “but not limited to” or words of similar import) is used

 

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with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. The terms lease and license shall include sub-lease and sub-license, as applicable. If any conflict or inconsistency exists between this Agreement and the Credit Agreement, the Credit Agreement shall govern. All references herein to provisions of the UCC shall include all successor provisions under any subsequent version or amendment to any Article of the UCC.

SECTION 2. GRANT OF SECURITY.

2.1 Grant of Security. Each Grantor hereby grants to the Collateral Agent a security interest in and continuing lien on all of such Grantor’s right, title and interest in, to and under all personal property of such Grantor including, but not limited to the following, in each case whether now owned or existing or hereafter acquired, created, developed or arising and wherever located (all of which being hereinafter collectively referred to as the “ Collateral ”):

(a) Accounts;

(b) Chattel Paper;

(c) Documents;

(d) General Intangibles;

(e) Goods (including, without limitation, Inventory and Equipment);

(f) Instruments;

(g) Insurance;

(h) Intellectual Property;

(i) Investment Related Property (including, without limitation, Deposit Accounts);

(j) Letter-of-Credit Rights;

(k) Money;

(l) Receivables and Receivable Records;

(m) Commercial Tort Claims now or hereafter described on Schedule 5.2;

(n) to the extent not otherwise included above, all other personal property of any kind and all Collateral Records, Collateral Support and Supporting Obligations relating to any of the foregoing; and

(o) to the extent not otherwise included above, all Proceeds, products, accessions, rents and profits of or in respect of any of the foregoing.

2.2 Certain Limited Exclusions. Notwithstanding anything herein to the contrary, in no event shall the Collateral include or the security interest granted under Section 2.1 hereof attach to (a) any lease, license, contract or agreement to which any Grantor is a party, or any of its

 

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rights or interests thereunder, if and to the extent that a security interest is prohibited by or would be in violation of (i) any law, rule or regulation applicable to such Grantor, or (ii) a term, provision or condition of any such lease, license, contract, property right or agreement (unless such law, rule, regulation, term, provision or condition would be rendered ineffective with respect to the creation of the security interest hereunder pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity); provided , however , that the Collateral shall include (and such security interest shall attach) immediately at such time as the contractual or legal prohibition shall no longer be applicable and to the extent severable, shall attach immediately to any portion of such lease, license, contract or agreement not subject to the prohibitions specified in subclause (i) or (ii) of clause (a) of this Section 2.2; provided further that the exclusions referred to in clause (a) of this Section 2.2 shall not include any Proceeds of any such lease, license, contract or agreement; (b) any of the outstanding capital stock of or other equity interest in a First-Tier Foreign Subsidiary (to the extent such capital stock or other equity interest is not excluded from the Collateral pursuant to clause (ii) of the definition of Excluded Foreign Equity Interests) in excess of 65% of the voting power of all classes of capital stock of such First-Tier Foreign Subsidiary entitled to vote; provided that immediately upon the amendment of the Internal Revenue Code to allow the pledge of a greater percentage of the voting power of capital stock in a First-Tier Foreign Subsidiary without adverse tax consequences, the Collateral shall include, and the security interest granted by each Grantor shall attach to, such greater percentage of capital stock of each First-Tier Foreign Subsidiary; (c) any Excluded Foreign Equity Interests; provided , however , that, subject to the 65% limit specified in clause (b) of this Section 2.2, the Collateral shall include (and such security interest shall attach) to the capital stock of First-Tier Foreign Subsidiaries to the extent so required by the terms of Section 5.10(b) of the Credit Agreement; (d) any “intent-to-use” application for trademark or service mark registration filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. §1051, prior to the filing under Section 1(c) or Section 1(d) of the Lanham Act of a “Statement of Use” or an “Amendment to Allege Use” with respect thereto, solely to the extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein prior to such filing would impair the validity or enforceability of any registration that issues from such intent-to-use trademark or service mark application under applicable federal law; (e) any property and/or assets of Grantors (other than, for purposes of the $20,000,000 limit below, (i) Intellectual Property, (ii) Investment proceeds or (iii) inter-company loan proceeds) located outside of the United States, provided that the aggregate value of such property and assets does not exceed $20,000,000; or (f) any Third Wave Shares prior to satisfaction of the Third Wave Condition; provided , however , that the Collateral shall include and such security interest shall immediately and automatically attach to all Third Wave Shares immediately upon the satisfaction of the Third Wave Condition without any further action by any Person.

SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE.

3.1 Security for Obligations. This Agreement secures, and the Collateral is collateral security for, the prompt and complete payment or performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all Obligations with respect to every Grantor (the “ Secured Obligations ”).

 

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3.2 Continuing Liability Under Collateral. Notwithstanding anything herein to the contrary, (i) each Grantor shall remain liable for all obligations under the Collateral and nothing contained herein is intended or shall be a delegation of duties to the Collateral Agent or any Secured Party, (ii) each Grantor shall remain liable under each of the agreements included in the Collateral, including, without limitation, any agreements relating to Pledged Partnership Interests or Pledged LLC Interests, to perform all of the obligations undertaken by it thereunder all in accordance with and pursuant to the terms and provisions thereof and neither the Collateral Agent nor any Secured Party shall have any obligation or liability under any of such agreements by reason of or arising out of this Agreement or any other document related thereto nor shall the Collateral Agent nor any Secured Party have any obligation to make any inquiry as to the nature or sufficiency of any payment received by it or have any obligation to take any action to collect or enforce any rights under any agreement included in the Collateral, including, without limitation, any agreements relating to Pledged Partnership Interests or Pledged LLC Interests, and (iii) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral.

SECTION 4. CERTAIN PERFECTION REQUIREMENTS

4.1 Delivery Requirements.

(a) With respect to any Certificated Securities included in the Collateral, each Grantor shall deliver to the Collateral Agent the Security Certificates evidencing such Certificated Securities duly indorsed by an effective indorsement (within the meaning of Section 8-107 of the UCC), or accompanied by share transfer powers or other instruments of transfer duly endorsed by such an effective endorsement, in each case, to the Collateral Agent or in blank. In addition, each Grantor shall cause any certificates evidencing any Pledged Equity Interests included in the Collateral, including, without limitation, any Pledged Partnership Interests included in the Collateral or Pledged LLC Interests included in the Collateral, to be similarly delivered to the Collateral Agent regardless of whether such Pledged Equity Interests constitute Certificated Securities. Notwithstanding the foregoing, the delivery requirements set forth in this Section 4.1(a) shall not apply to any certificates evidencing shares valued at less than $50,000 individually or $250,000 in the aggregate; provided that such exception shall not apply to any certificates evidencing the equity interests in the Borrower’s Subsidiaries.

(b) With respect to any Instruments or Tangible Chattel Paper included in the Collateral, each Grantor shall deliver to the Collateral Agent all such Instruments or Tangible Chattel Paper to the Collateral Agent duly indorsed in blank; provided , however , that such delivery requirement shall not apply to any Instruments or Tangible Chattel Paper having a face amount of less than $1,000,000 individually or $5,000,000 in the aggregate.

4.2 Control Requirements.

(a) With respect to any Deposit Accounts, Securities Accounts, Security Entitlements, Commodity Accounts and Commodity Contracts included in the Collateral, each Grantor shall ensure that the Collateral Agent has Control thereof; provided , however , that such Control requirement shall not apply to any (i) Deposit Accounts with a value of less than, or having funds or other assets credited thereto with a value of less than, $250,000 individually or $1,000,000 in the aggregate, Deposit Accounts specifically and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of a Grantor’s employees, and Deposit Accounts specifically and exclusively used for cash collateral to secure letters of credit permitted under the Credit Agreement and (ii) Securities Accounts, Security Entitlements, Commodity Accounts and Commodity Contracts with a value of less than, or having funds or other assets credited thereto with a value of less than, $250,000 individually or

 

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$1,000,000 in the aggregate. With respect to any Securities Accounts or Securities Entitlements, such Control shall be accomplished by the Grantor causing the Securities Intermediary maintaining such Securities Account or Security Entitlement to enter into an agreement substantially in the form of Exhibit C hereto (or such other agreement in form and substance reasonably satisfactory to the Collateral Agent) pursuant to which the Securities Intermediary shall agree to comply with the Collateral Agent’s Entitlement Orders without further consent by such Grantor. With respect to any Deposit Account, each Grantor shall cause the depositary institution maintaining such account to enter into an agreement substantially in the form of Exhibit D hereto (or such other agreement in form and substance reasonably satisfactory to the Collateral Agent), pursuant to which the Bank shall agree to comply with the Collateral Agent’s instructions with respect to disposition of funds in the Deposit Account without further consent by such Grantor. With respect to any Commodity Accounts or Commodity Contracts each Grantor shall cause Control in favor of the Collateral Agent in a manner reasonably acceptable to the Collateral Agent.

(b) With respect to any Uncertificated Security included in the Collateral (other than any Uncertificated Securities constituting Collateral credited to a Securities Account), each Grantor shall cause the issuer of such Uncertificated Security to either (i) register the Collateral Agent as the registered owner thereof on the books and records of the issuer or (ii) execute an agreement substantially in the form of Exhibit B hereto (or such other agreement in form and substance reasonably satisfactory to the Collateral Agent), pursuant to which such issuer agrees to comply with the Collateral Agent’s instructions with respect to such Uncertificated Security without further consent by such Grantor.

(c) With respect to any Letter-of-Credit Rights included in the Collateral (other than any Letter-of-Credit Rights constituting a Supporting Obligation for a Receivable in which the Collateral Agent has a valid and perfected security interest) with a value in excess of $250,000 individually or $1,000,000 in the aggregate, the Grantor shall ensure that Collateral Agent has Control thereof by obtaining the written consent of each issuer of each related letter of credit to the assignment of the proceeds of such letter of credit to the Collateral Agent.

(d) With respect any Electronic Chattel Paper or “transferable record”(as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction) included in the Collateral, the Grantor shall ensure that the Collateral Agent has Control thereof; provided , however , that such Control requirement shall not apply to any Electronic Chattel Paper or transferable record having a face amount of less than $1,000,000 individually or $5,000,000 in the aggregate.

4.3 Intellectual Property Recording Requirements.

(a) In the case of any Collateral (whether now owned or existing or hereafter acquired, created, developed or arising) consisting of issued U.S. Patents or pending U.S. Patent applications, the Grantor shall execute and deliver to the Collateral Agent a Patent Security Agreement in substantially the form of Exhibit G hereto (or a supplement thereto) covering all such Patents in appropriate form for recordation with the United States Patent and Trademark Office with respect to the security interest of the Collateral Agent.

(b) In the case of any Collateral (whether now owned or existing or hereafter acquired, created, developed or arising) consisting of registered U.S. Trademarks or pending U.S. Trademark applications, the Grantor shall execute and deliver to the Collateral Agent a

 

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Trademark Security Agreement in substantially the form of Exhibit E hereto (or a supplement thereto) covering all such Trademarks, in appropriate form for recordation with the United States Patent and Trademark Office with respect to the security interest of the Collateral Agent.

(c) In the case of any Collateral (whether now owned or existing or hereafter acquired, created, developed or arising) consisting of registered U.S. Copyrights or pending U.S. Copyright applications, or consisting of exclusive Copyright Licenses that constitute Material Intellectual Property in respect of registered U.S. Copyrights for which any Grantor is the licensee, the Grantor shall execute and deliver to the Collateral Agent a Copyright Security Agreement in substantially the form of Exhibit F hereto (or a supplement thereto) covering all such Copyright and exclusive Copyright Licenses, in appropriate form for recordation with the United States Copyright Office with respect to the security interest of the Collateral Agent.

(d) Subject to the timing requirements set forth in the last sentence of this Section 4.3(d) and the proviso to Section 5.10(a) of the Credit Agreement, in the case of any Foreign Intellectual Property, each Grantor shall (i) execute, deliver to the Collateral Agent, and record security agreements (or supplements thereto), covering all such Foreign Intellectual Property in appropriate form for recordation with the applicable foreign, international or multi-national registers, to insure the validity, perfection and priority of the security interests of the Collateral Agent, and (ii) take such additional actions or make such additional filings or recordings as may be necessary or advisable, under the laws of the applicable Foreign Jurisdiction to insure the validity, perfection and priority of the security interest of the Collateral Agent (all such actions being referred to herein collectively as “ Foreign IP Perfection Filings ”); provided , however , that the foregoing requirements shall not apply with respect to any single Foreign Jurisdiction in which effective Foreign IP Perfection Filings have not been made if the consolidated revenues derived from the operations of the Borrower and its Subsidiaries in such jurisdiction are less than 5% of the consolidated revenues derived from all of the operations of the Borrower and its Subsidiaries for the four Fiscal Quarter period (the “ Measurement Period ”) ending on the last day of the Fiscal Quarter or Fiscal Year, as the case may be, for which financial statements are required to be delivered pursuant to Section 5.1(b) or 5.1(c), respectively, of the Credit Agreement (the “ Due Date ”) or if the making of such filings remains subject to the expiration of any grace period therefor contained in this Section 4.3(d) and/or Section 4.5 of this Agreement or Section 5.10(a) of the Credit Agreement; provided further that in no event shall the consolidated revenues for such Measurement Period derived from the operations of the Borrower and its Subsidiaries in all Foreign Jurisdictions in which effective Foreign IP Perfection Filings have not been made exceed 15% of the consolidated revenues of all operations of the Borrower and its Subsidiaries for such Measurement Period (the “ Overall Cap ”) (unless the making of such filing remains subject to the expiration of any grace period therefor contained in this Section 4.3(d) and/or Section 4.5 of this Agreement or Section 5.10(a) of the Credit Agreement). Subject to the timing and notice requirements set forth in Section 4.5 of this Agreement and the proviso to Section 5.10(a) of the Credit Agreement, the Borrower shall make, and shall cause each other relevant applicable Grantor to make, all such Foreign IP Perfection Filings as may be necessary or advisable under the laws of the respective applicable jurisdictions to insure the validity, perfection and priority of the security interests of the Collateral Agent in all Foreign Intellectual Property of the Grantors registered or issued in (x) the Republic of Germany and the United Kingdom, within 90 days after the date on which such Foreign Intellectual Property is acquired, created, developed or arises (such filings in respect of the Specified German Patents to be made on or prior to the date that is 30 days after the Restatement Date), and (y) such other Foreign Jurisdiction(s) as may be necessary to cause the Overall Cap not to be exceeded, within 90 days after the Due Date for the financial statements in respect of any respective applicable Measurement Period, as the case may be.

 

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4.4 Other Actions.

(a) If any issuer of any Pledged Equity Interest constituting Collateral is organized under the laws of a Foreign Jurisdiction, the Grantor in respect thereof shall take such additional actions, including, without limitation, causing the issuer to register the pledge of such Pledged Equity Interests on its books and records or making such filings or recordings, in each case as may be necessary or reasonably advisable, under the laws of such issuer’s jurisdiction, to insure the validity, perfection and priority of the security interest of the Collateral Agent in such Pledged Equity Interests.

(b) With respect to any Pledged Partnership Interests and Pledged LLC Interests included in the Collateral, if the Grantors own less than 100% of the equity interests in any issuer of such Pledged Partnership Interests or Pledged LLC Interests constituting Collateral, the Grantors shall use their commercially reasonable efforts to obtain the consent of each other holder of partnership interest or limited liability company interests in such issuer to the security interest of the Collateral Agent hereunder and following an Event of Default, the transfer of such Pledged Partnership Interests and Pledged LLC Interests constituting Collateral to the Collateral Agent of its designee, and to the substitution of the Collateral Agent or its designee as a partner or member with all the rights and powers related thereto. Each Grantor consents to the grant by each other Grantor of a Lien in all Investment Related Property constituting Collateral to the Collateral Agent and without limiting the generality of the foregoing consents to the transfer of any Pledged Partnership Interest and any Pledged LLC Interest constituting Collateral to the Collateral Agent or its designee following an Event of Default for the purposes of enabling the Collateral Agent to exercise rights and remedies under Section 9 hereof and to the substitution of the Collateral Agent or its designee as a partner in any partnership or as a member in any limited liability company with all the rights and powers related thereto.

(c) With respect to any Goods in excess of $100,000 individually or $1,000,000 in the aggregate, which is covered by a certificate of title under a statute of any jurisdiction under the law of which indication of a security interest on such certificate is required as a condition of perfection thereof, upon the reasonable request of the Collateral Agent, (A) provide information with respect to any such Goods (B) execute and file with the registrar of motor vehicles or other appropriate authority in such jurisdiction an application or other document requesting the notation or other indication of the security interest created hereunder on such certificate of title, and (C) deliver to the Collateral Agent copies of all such applications or other documents filed during such calendar quarter and copies of all such certificates of title issued during such calendar quarter indicating the security interest created hereunder in the items of Goods covered thereby.

4.5 Timing and Notice. With respect to any Collateral in existence on the Restatement Date, each Grantor shall comply with the requirements of Section 4 on the Restatement Date (or in the case of Section 4.3(d) hereof, such other dates as set forth therein) and with respect to any Collateral hereafter acquired, created, developed or arising such Grantor shall comply with the requirements of Section 4 hereof: (a) in the case of any Collateral other than Foreign Intellectual Property, within 45 days after such Collateral is acquired, created, developed or otherwise arises; and (b) in the case of any Collateral that is Foreign Intellectual Property, within 90 days after such Collateral is acquired, created, developed or otherwise arises (subject to the timing requirements set forth in the proviso to Section 5.10(a) to the Credit Agreement); provided, in any such case, that the Collateral Agent may grant an extension therefor if the applicable Grantor in respect thereof is using commercially reasonable efforts to comply with such requirements. Each Grantor shall promptly inform the Collateral Agent of its acquisition, creation or development of any Collateral for which any action is required by Section 4 hereof.

 

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SECTION 5. REPRESENTATIONS AND WARRANTIES.

Each Grantor hereby represents and warrants, on each Credit Date (other than Credit Dates for any Loans the proceeds of which are used solely to fund the Third Wave Consideration and Related Expenditures) that the following statements are true and correct; provided , however , that no Grantor shall or shall be deemed to have made any representation or warranty in respect of any Third Wave Shares prior to satisfaction of the Third Wave Condition:

5.1 Grantor Information & Status .

(a) Schedule 5.1(A) & (B) (as such schedule may be amended or supplemented from time to time) sets forth under the appropriate headings: (1) the full legal name of such Grantor, (2) all trade names or other names under which such Grantor currently conducts business, (3) the type of organization of such Grantor, (4) the jurisdiction of organization of such Grantor, (5) its organizational identification number, if any, and (6) the jurisdiction where the chief executive office or its sole place of business (or the principal residence if such Grantor is a natural person) is located.

(b) Except as provided on Schedule 5.1(C) (as such schedule may be amended or supplemented from time to time), it has not changed its name, jurisdiction of organization, chief executive office or sole place of business (or principal residence if such Grantor is a natural person) or its corporate structure in any way (e.g., by merger, consolidation, change in corporate form or otherwise) and has not done business under any other name, in each case, within the past five (5) years.

(c) It has not within the last five (5) years become bound (whether as a result of merger or otherwise) as debtor under a security agreement entered into by another Person, which has not heretofore been terminated other than the agreements identified on Schedule 5.1(D) hereof (as such schedule may be amended or supplemented from time to time).

(d) Such Grantor has been duly organized and is validly existing as an entity of the type as set forth opposite such Grantor’s name on Schedule 5.1(A) solely under the laws of the jurisdiction as set forth opposite such Grantor’s name on Schedule 5.1(A) and remains duly existing as such. Such Grantor has not filed any certificates of dissolution or liquidation, any certificates of domestication, transfer or continuance in any other jurisdiction.

(e) No Grantor is a “transmitting utility” (as defined in Section 9-102(a)(80) of the UCC).

5.2 Collateral Identification, Special Collateral.

(a) On the Restatement Date and within 30 days following the completion of the most recent Fiscal Quarter prior to a Credit Date, Schedule 5.2 (as such schedule may be amended or supplemented from time to time) sets forth under the appropriate headings all of such Grantor’s: (1) Pledged Equity Interests constituting Collateral, other than any Pledged Equity Interests valued at less than $50,000 individually or $250,000 in the aggregate, provided that such exception shall not apply to any Pledged Equity Interests evidencing the equity interests in the Borrower’s Subsidiaries, (2) Pledged Debt other than any Pledged Debt having a face amount of

 

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less than $250,000 individually or $1,000,000 in the aggregate, (3) Securities Accounts, Security Entitlements, Commodity Accounts and Commodity Contracts other than any Securities Accounts, Security Entitlements, Commodity Accounts and Commodity Contracts having a value of less than, or having funds or other assets credited thereto with a value of less than, $250,000 individually or $1,000,000 in the aggregate, (4) Deposit Accounts other than any Deposit Accounts holding less than $250,000 individually or $1,000,000 in the aggregate, (5) United States and foreign registrations of and applications for Patents, Trademarks, and Copyrights owned by such Grantor constituting Material Intellectual Property, (6) Patent Licenses, Trademark Licenses, Trade Secret Licenses and Copyright Licenses constituting Material Intellectual Property other than employment related agreements or consulting agreements with individuals to the extent that such agreements can be characterized as Patent Licenses, Trademark Licenses, Trade Secret Licenses and/or Copyright Licenses, (7) Commercial Tort Claims other than any Commercial Tort Claims having a value of less than $500,000 individually and $2,000,000 in the aggregate, (8) Letter-of-Credit Rights for letters of credit other than any Letters of Credit Rights worth less than $250,000 individually or $1,000,000 in the aggregate, (9) other than with salesman, servicemen, customers or such items in transit, under repair or with assemblers, the name and address of any warehouseman, bailee or other third party in possession of any Inventory, Equipment and other tangible personal property other than any Inventory, Equipment or other tangible person property having a value less than $1,000,000 individually or $5,000,000 in the aggregate, and (10) Material Contracts. Within 30 days following the completion of the most recent Fiscal Quarter prior to a Credit Date, such Grantor shall supplement such schedules as necessary to ensure that such schedules are accurate.

(b) None of the Collateral in excess of $500,000 individually or $2,000,0


 
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