Document:

Ex-4.1

 

Exhibit 4.1

EXECUTION VERSION

ZIFF DAVIS MEDIA INC.

AND EACH OF THE GUARANTORS PARTY HERETO

SENIOR SECURED FLOATING RATE NOTES DUE 2012

INDENTURE

Dated as of April 22, 2005

U.S. BANK NATIONAL ASSOCIATION

Trustee

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	Trust Indenture	 	 	 
	Act Section	 	Indenture Section	 
	310(a)(1)
	 	 	7.10	 
	(a)(2)
	 	 	7.10	 
	(a)(3)
	 	 	N.A.	 
	(a)(4)
	 	 	N.A.	 
	(a)(5)
	 	 	7.10	 
	(b)
	 	 	7.10	 
	(c)
	 	 	N.A.	 
	311(a)
	 	 	7.11	 
	(b)
	 	 	7.11	 
	(c)
	 	 	N.A.	 
	312(a)
	 	 	2.05	 
	(b)
	 	 	13.03	 
	(c)
	 	 	13.03	 
	313(a)
	 	 	7.06	 
	(b)(1)
	 	 	10.03	 
	(b)(2)
	 	 	7.06; 7.07	 
	(c)
	 	 	7.06; 10.05;13.02	 
	(d)
	 	 	7.06	 
	314(a)
	 	 	4.03; 13.02; 13.05	 
	(b)
	 	 	10.04	 
	(c)(1)
	 	 	13.04	 
	(c)(2)
	 	 	13.04	 
	(c)(3)
	 	 	N.A.	 
	(d)
	 	 	10.05; 10.06; 10.07	 
	(e)
	 	 	13.05	 
	(f)
	 	 	N.A.	 
	315(a)
	 	 	7.01	 
	(b)
	 	 	7.05; 13.02	 
	(c)
	 	 	7.01	 
	(d)
	 	 	7.01	 
	(e)
	 	 	6.11	 
	316(a) (last sentence)
	 	 	2.09	 
	(a)(1)(A)
	 	 	6.05	 
	(a)(1)(B)
	 	 	6.04	 
	(a)(2)
	 	 	N.A.	 
	(b)
	 	 	6.07	 
	(c)
	 	 	2.12	 
	317(a)(1)
	 	 	6.08	 
	(a)(2)
	 	 	6.09	 
	(b)
	 	 	2.04	 
	318(a)
	 	 	13.01	 
	(b)
	 	 	N.A.	 
	(c)
	 	 	13.01	 

N.A. means not applicable.

* This Cross Reference Table is not part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	

	 	ARTICLE 1	 	 	 	 
	

	 	DEFINITIONS AND INCORPORATION	 	 	 	 
	

	 	BY REFERENCE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	Section 1.02

	 	Other Definitions
	 	 	28	 
	Section 1.03

	 	Incorporation by Reference of Trust Indenture Act
	 	 	28	 
	Section 1.04

	 	Rules of Construction
	 	 	29	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 2	 	 	 	 
	

	 	THE NOTES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01

	 	Form and Dating
	 	 	29	 
	Section 2.02

	 	Execution and Authentication
	 	 	30	 
	Section 2.03

	 	Registrar and Paying Agent
	 	 	30	 
	Section 2.04

	 	Paying Agent to Hold Money in Trust
	 	 	30	 
	Section 2.05

	 	Holder Lists
	 	 	31	 
	Section 2.06

	 	Transfer and Exchange
	 	 	31	 
	Section 2.07

	 	Replacement Notes
	 	 	42	 
	Section 2.08

	 	Outstanding Notes
	 	 	43	 
	Section 2.09

	 	Treasury Notes
	 	 	43	 
	Section 2.10

	 	Temporary Notes
	 	 	43	 
	Section 2.11

	 	Cancellation
	 	 	43	 
	Section 2.12

	 	Defaulted Interest
	 	 	44	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 3	 	 	 	 
	

	 	REDEMPTION AND PREPAYMENT	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01

	 	Notices to Trustee
	 	 	44	 
	Section 3.02

	 	Selection of Notes to Be Redeemed or Purchased
	 	 	44	 
	Section 3.03

	 	Notice of Redemption
	 	 	45	 
	Section 3.04

	 	Effect of Notice of Redemption
	 	 	46	 
	Section 3.05

	 	Deposit of Redemption or Purchase Price
	 	 	46	 
	Section 3.06

	 	Notes Redeemed or Purchased in Part
	 	 	46	 
	Section 3.07

	 	Optional Redemption
	 	 	46	 
	Section 3.08

	 	Mandatory Redemption
	 	 	47	 
	Section 3.09

	 	Offer to Purchase by Application of Excess Proceeds
	 	 	47	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 4	 	 	 	 
	

	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01

	 	Payment of Notes
	 	 	49	 
	Section 4.02

	 	Maintenance of Office or Agency
	 	 	49	 
	Section 4.03

	 	Reports
	 	 	49	 
	Section 4.04

	 	Compliance Certificate
	 	 	50	 
	Section 4.05

	 	Taxes
	 	 	51	 
	Section 4.06

	 	Stay, Extension and Usury Laws
	 	 	51	 
	Section 4.07

	 	Restricted Payments
	 	 	51	 
	Section 4.08

	 	Dividend and Other Payment Restrictions Affecting Subsidiaries
	 	 	55	 
	Section 4.09

	 	Incurrence of Indebtedness and Issuance of Preferred Stock
	 	 	56	 
	Section 4.10

	 	Asset Sales
	 	 	60	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 4.11

	 	Transactions with Affiliates
	 	 	61	 
	Section 4.12

	 	Liens
	 	 	63	 
	Section 4.13

	 	Business Activities
	 	 	63	 
	Section 4.14

	 	Corporate Existence
	 	 	63	 
	Section 4.15

	 	Offer to Repurchase Upon Change of Control
	 	 	63	 
	Section 4.16

	 	No Amendment to Subordination Provisions
	 	 	65	 
	Section 4.17

	 	Payments for Consent
	 	 	65	 
	Section 4.18

	 	Additional Note Guarantees
	 	 	65	 
	Section 4.19

	 	Designation of Restricted and Unrestricted Subsidiaries
	 	 	66	 
	Section 4.20

	 	Further Assurances; Insurance
	 	 	66	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 5	 	 	 	 
	

	 	SUCCESSORS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01

	 	Merger, Consolidation, or Sale of Assets
	 	 	67	 
	Section 5.02

	 	Successor Corporation Substituted
	 	 	68	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 6	 	 	 	 
	

	 	DEFAULTS AND REMEDIES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01

	 	Events of Default
	 	 	68	 
	Section 6.02

	 	Acceleration
	 	 	70	 
	Section 6.03

	 	Other Remedies
	 	 	71	 
	Section 6.04

	 	Waiver of Past Defaults
	 	 	71	 
	Section 6.05

	 	Control by Majority
	 	 	71	 
	Section 6.06

	 	Limitation on Suits
	 	 	71	 
	Section 6.07

	 	Rights of Holders of Notes to Receive Payment
	 	 	72	 
	Section 6.08

	 	Collection Suit by Trustee
	 	 	72	 
	Section 6.09

	 	Trustee May File Proofs of Claim
	 	 	72	 
	Section 6.10

	 	Priorities
	 	 	73	 
	Section 6.11

	 	Undertaking for Costs
	 	 	73	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 7	 	 	 	 
	

	 	TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01

	 	Duties of Trustee
	 	 	73	 
	Section 7.02

	 	Rights of Trustee
	 	 	74	 
	Section 7.03

	 	Individual Rights of Trustee
	 	 	75	 
	Section 7.04

	 	Trustee’s Disclaimer
	 	 	75	 
	Section 7.05

	 	Notice of Defaults
	 	 	75	 
	Section 7.06

	 	Reports by Trustee to Holders of the Notes
	 	 	75	 
	Section 7.07

	 	Compensation and Indemnity
	 	 	76	 
	Section 7.08

	 	Replacement of Trustee
	 	 	76	 
	Section 7.09

	 	Successor Trustee by Merger, etc
	 	 	77	 
	Section 7.10

	 	Eligibility; Disqualification
	 	 	77	 
	Section 7.11

	 	Preferential Collection of Claims Against Company
	 	 	78	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 8	 	 	 	 
	

	 	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.01

	 	Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	78	 
	Section 8.02

	 	Legal Defeasance and Discharge
	 	 	78	 
	Section 8.03

	 	Covenant Defeasance
	 	 	78	 
	Section 8.04

	 	Conditions to Legal or Covenant Defeasance
	 	 	79	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 8.05

	 	Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions
	 	 	80	 
	Section 8.06

	 	Repayment to Company
	 	 	81	 
	Section 8.07

	 	Reinstatement
	 	 	81	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 9	 	 	 	 
	

	 	AMENDMENT, SUPPLEMENT AND WAIVER	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.01

	 	Without Consent of Holders of Notes
	 	 	81	 
	Section 9.02

	 	With Consent of Holders of Notes
	 	 	82	 
	Section 9.03

	 	Compliance with Trust Indenture Act
	 	 	83	 
	Section 9.04

	 	Revocation and Effect of Consents
	 	 	84	 
	Section 9.05

	 	Notation on or Exchange of Notes
	 	 	84	 
	Section 9.06

	 	Trustee to Sign Amendments, etc
	 	 	84	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 10	 	 	 	 
	

	 	COLLATERAL AND SECURITY	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.01

	 	Equal and Ratable Sharing of Collateral by Holders of First Lien Debt; Sharing Confirmation
	 	 	84	 
	Section 10.02

	 	Ranking of Second Priority Liens
	 	 	85	 
	Section 10.03

	 	Security Agreements
	 	 	85	 
	Section 10.04

	 	Recording and Opinions
	 	 	86	 
	Section 10.05

	 	Release of Collateral
	 	 	87	 
	Section 10.06

	 	Certificates of the Company
	 	 	87	 
	Section 10.07

	 	Certificates of the Trustee
	 	 	87	 
	Section 10.08

	 	Authorization of Actions to Be Taken by the Trustee Under the Security Agreements
	 	 	88	 
	Section 10.09

	 	Authorization of Receipt of Funds by the Trustee Under the Security Agreements
	 	 	88	 
	Section 10.10

	 	Termination of Security Interest in Respect of the Notes
	 	 	88	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 11	 	 	 	 
	

	 	NOTE GUARANTEES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.01

	 	Guarantee
	 	 	89	 
	Section 11.02

	 	Limitation on Guarantor Liability
	 	 	90	 
	Section 11.03

	 	Execution and Delivery of Note Guarantee
	 	 	90	 
	Section 11.04

	 	Guarantors May Consolidate, etc., on Certain Terms
	 	 	90	 
	Section 11.05

	 	Releases
	 	 	91	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 12	 	 	 	 
	

	 	SATISFACTION AND DISCHARGE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.01

	 	Satisfaction and Discharge
	 	 	92	 
	Section 12.02

	 	Application of Trust Money
	 	 	93	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE 13	 	 	 	 
	

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 13.01

	 	Trust Indenture Act Controls
	 	 	93	 
	Section 13.02

	 	Notices
	 	 	93	 
	Section 13.03

	 	Communication by Holders of Notes with Other Holders of Notes
	 	 	94	 
	Section 13.04

	 	Certificate and Opinion as to Conditions Precedent
	 	 	94	 
	Section 13.05

	 	Statements Required in Certificate or Opinion
	 	 	95	 
	Section 13.06

	 	Rules by Trustee and Agents
	 	 	95	 
	Section 13.07

	 	No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	95	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 13.08

	 	Governing Law
	 	 	95	 
	Section 13.09

	 	No Adverse Interpretation of Other Agreements
	 	 	96	 
	Section 13.10

	 	Successors
	 	 	96	 
	Section 13.11

	 	Severability
	 	 	96	 
	Section 13.12

	 	Counterpart Originals
	 	 	96	 
	Section 13.13

	 	Table of Contents, Headings, etc
	 	 	96	 

EXHIBITS

	 	 	 
	Exhibit A

	 	FORM OF NOTE
	Exhibit B

	 	FORM OF CERTIFICATE OF TRANSFER
	Exhibit C

	 	FORM OF CERTIFICATE OF EXCHANGE
	Exhibit D

	 	FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
	Exhibit E

	 	FORM OF NOTATION OF GUARANTEE
	Exhibit F

	 	FORM OF SUPPLEMENTAL INDENTURE
	Exhibit G

	 	FORM OF COLLATERAL TRUST AGREEMENTS
	Exhibit H1

	 	FORM OF COPYRIGHT AGREEMENT
	Exhibit H2

	 	FORM OF PLEDGE AGREEMENT
	Exhibit H3

	 	FORM OF TRADEMARK AGREEMENT

iv

 

     INDENTURE dated as of April 22, 2005 among Ziff Davis Media Inc., a Delaware corporation, the
Guarantors (as defined) and U.S. Bank National Association, as trustee.

     The Company, the Guarantors and the Trustee agree as follows for the benefit of each other and
for the equal and ratable benefit of the Holders (as defined) of the Senior Secured Floating Rate
Notes due 2012 (the “Notes”):

ARTICLE 1

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01 Definitions.

     “144A Global Note” means a Global Note substantially in the form of Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of,
and registered in the name of, the Depositary or its nominee that will be issued in a denomination
equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

     “2009 Subordinated Note Indenture” means that certain indenture, dated as of August 12, 2002,
among the Company, the guarantors named therein and Deutsche Bank Trust Company Americas, as
trustee.

     “2010 Subordinated Note Indenture” means that certain indenture, dated as of July 21, 2000,
among the Company, the guarantors named therein and Bankers Trust Company, as trustee.

     “Acquired Debt” means, with respect to any specified Person:

     (1) Indebtedness of any other Person existing at the time such other Person is merged
with or into or became a Subsidiary of such specified Person, whether or not such
Indebtedness is incurred in connection with, or in contemplation of, such other Person
merging with or into, or becoming a Restricted Subsidiary of, such specified Person; and

     (2) Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

     “Additional Notes” means additional Notes (other than the Initial Notes) issued from time to
time under this Indenture in accordance with Sections 2.02 and 4.09 hereof, as part of the same
series as the Initial Notes.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control,” as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise;
provided that beneficial ownership of 10% or more of the Voting Stock of a Person will be deemed to
be control. For purposes of this definition, the terms “controlling,” “controlled by” and “under
common control with” have correlative meanings.

     “Agent” means any Registrar, co-registrar, Paying Agent or additional paying agent.

     “Applicable Eurodollar Rate” means, for each quarterly period during which any Note is
outstanding subsequent to the initial quarterly period, 600 basis points over the rate determined
by the

1

 

Company (notice of such rate to be sent to the Trustee by the Company on the date of
determination thereof) equal to the applicable British Bankers’ Association LIBOR rate for deposits
in U.S. dollars for a period of three months as reported by any generally recognized financial
information service as of 11:00 a.m. (London time) two Business Days prior to the first day of such
quarterly period; provided that, if no such British Bankers’ Association LIBOR rate is available to
the Company, the Applicable Eurodollar Rate for the relevant quarterly period shall instead be the
rate at which Bear, Stearns & Co. Inc. or one of its affiliate banks offers to place deposits in
U.S. dollars with first-class banks in the London interbank market for a period of three months at
approximately 11:00 a.m. (London time) two Business Days prior to the first day of such quarterly
period, in amounts equal to $1.0 million. Notwithstanding the foregoing, the Applicable Eurodollar
Rate for the initial quarterly period shall be 9.14475%.

     “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream
that apply to such transfer or exchange.

     “Asset Sale” means:

     (1) the sale, lease, conveyance or other disposition of any assets or rights; provided
that the sale, lease, conveyance or other disposition of all or substantially all of the
assets of the Company and its Restricted Subsidiaries taken as a whole will be governed by
the provisions of this Indenture described in Sections 4.15 and/or 5.01 hereof and not by
the provisions of Section 4.10 hereof; and

     (2) the issuance of Equity Interests in any of the Company’s Restricted Subsidiaries or
the sale of Equity Interests in any of its Restricted Subsidiaries.

     Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale:

     (1) any single transaction or series of related transactions that involves assets
having a fair market value of less than $2.0 million;

     (2) a transfer of assets between or among the Company and its Restricted Subsidiaries;

     (3) an issuance of Equity Interests by a Restricted Subsidiary of the Company to the
Company or to a Restricted Subsidiary of the Company;

     (4) the disposition, sale or lease of products, services, accounts receivable,
inventory, equipment, including, without limitation, the sale or lease of databases,
software, subscriber lists or office or laboratory space or the licensing of intellectual
property in the ordinary course of business and any sale or other disposition of damaged,
worn-out or obsolete assets whether or not in the ordinary course of business;

     (5) the sale or other disposition of cash or Cash Equivalents;

     (6) the factoring of accounts receivable arising in the ordinary course of business
pursuant to arrangements customary in the publishing industry;

     (7) a Restricted Payment that does not violate Section 4.07 hereof or a Permitted
Investment; and

     (8) foreclosures on assets.

2

 

     “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief
of debtors.

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to
have beneficial ownership of all securities that such “person” has the right to acquire by
conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned”
have a corresponding meaning.

     “Board of Directors” means:

     (1) with respect to a corporation, the Board of Directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

     (2) with respect to a partnership, the Board of Directors of the general partner of the
partnership;

     (3) with respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

     (4) with respect to any other Person, the board or committee of such Person serving a
similar function.

     “Broker-Dealer” has the meaning set forth in the Registration Rights Agreement.

     “Business Day” means any day other than a Legal Holiday.

     “Capital Lease Obligation” means, at the time any determination is to be made, the amount of
the liability in respect of a capital lease that would at that time be required to be capitalized
on a balance sheet prepared in accordance with GAAP, and the Stated Maturity thereof shall be the
date of the last payment of rent or any other amount due under such lease.

     “Capital Stock” means:

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

     (3) in the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

     (4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person, but
excluding from all of the foregoing any debt securities convertible into Capital Stock,
whether or not such debt securities include any right of participation with Capital Stock.

     “Cash Equivalents” means:

3

 

     (1) United States dollars;

     (2) securities issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States government (provided that
the full faith and credit of the United States is pledged in support of those securities)
having maturities of not more than 12 months from the date of acquisition;

     (3) certificates of deposit and eurodollar time deposits with maturities of six months
or less from the date of acquisition, bankers’ acceptances with maturities not exceeding 12
months and overnight bank deposits, in each case, with any domestic commercial bank having
capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or
better;

     (4) repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (2) and (3) above entered into with any
financial institution meeting the qualifications specified in clause (3) above;

     (5) commercial paper having a rating of no lower than “A-2” from Moody’s or “P2” from
S&P and, in each case, maturing within 12 months after the date of acquisition;

     (6) money market funds at least 95% of the assets of which constitute Cash Equivalents
of the kinds described in clauses (1) through (5) of this definition; and

     (7) readily marketable direct obligations issued by any state of the United States or
any political subdivision thereof, in either case having one of the two highest rating
categories obtainable from either Moody’s or S&P.

     “Casualty Event” means any taking under power of eminent domain or similar proceeding and any
insured loss, in each case in excess of $2.0 million and relating to property or other assets that
constituted Collateral.

     “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of the Company and its Restricted Subsidiaries
taken as a whole to any “person” (as that term is used in Section 13(d) of the Exchange Act)
other than the Permitted Holders and their Related Parties;

     (2) the adoption of a plan relating to the liquidation or dissolution of the Company;

     (3) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as defined above), other than the
Permitted Holders and their Related Parties, becomes the Beneficial Owner, directly or
indirectly, of more than 50% of the Voting Stock of the Company, measured by voting power
rather than number of shares; or

     (4) the first day on which a majority of the members of the Board of Directors of the
Company are not Continuing Directors.

4

 

     “Class” means (1) in the case of Second Lien Debt, every Series of Second Lien Debt, taken
together, and (2) in the case of First Lien Debt, every Series of First Lien Debt, taken together.

     “Clearstream” means Clearstream Banking, S.A.

     “Collateral” means all properties and assets at any time owned or acquired by the Company or
any of the other Pledgors, except:

     (1) Excluded Assets;

     (2) any properties and assets in which the Collateral Trustee is required to release
its Liens pursuant to the provisions as described in the Collateral Trust Agreement; and

     (3) any properties and assets that no longer secure the Notes or any Obligations in
respect thereof pursuant to the provisions as described in the Collateral Trust Agreement,

     provided that, in the case of clauses (2) and (3), if such Liens are required to be released as a
result of the sale, transfer or other disposition of any properties or assets of the Company or any
other Pledgor, such assets or properties will cease to be excluded from the Collateral if the
Company or any other Pledgor thereafter acquires or reacquires such assets or properties.

     “Collateral Trust Agreement” means the Collateral Trust Agreement, dated as of April 22, 2005,
among the Company, the other Pledgors from time to time party thereto, the Trustee and the
Collateral Trustee, as such agreement may be amended, modified or supplemented from time to time.

     “Collateral Trustee” means U.S. Bank National Association, in its capacity as Collateral
Trustee under the Collateral Trust Agreement, together with its successors in such capacity.

     “Company” means Ziff Davis Media Inc., and any and all successors thereto.

     “Consolidated Cash Flow” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period plus, without duplication:

     (1) an amount equal to any extraordinary loss plus any net loss realized by such Person
or any of its Restricted Subsidiaries in connection with an Asset Sale (without giving
effect to the threshold set forth in the definition thereof) or Casualty Event, to the
extent such losses were deducted in computing such Consolidated Net Income; plus

     (2) provision for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period, to the extent that such provision for taxes was deducted in
computing such Consolidated Net Income; plus

     (3) the Fixed Charges of such Person and its Restricted Subsidiaries for such period,
to the extent that such Fixed Charges were deducted in computing such Consolidated Net
Income; plus

     (4) depreciation, amortization (including amortization of intangibles but excluding
amortization of prepaid cash expenses that were paid in a prior period) and other non-cash
expenses (excluding any such non-cash expense to the extent that it represents an accrual of
or reserve for cash expenses in any future period or amortization of a prepaid cash expense
that was paid in a prior period) of such Person and its Restricted Subsidiaries for such
period to the extent

5

 

that such depreciation, amortization and other non-cash expenses were deducted in
computing such Consolidated Net Income; minus

     (5) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business, plus

     (6) all non-cash charges relating to employee benefit or other management compensation
plans of the Company or any of its Restricted Subsidiaries or any non-cash compensation
charge arising from any grant of stock, stock options or other equity-based awards of the
Company or any of its Restricted Subsidiaries (excluding in each case any non-cash charge to
the extent that it represents an accrual of or reserve for cash expenses in any future
period or amortization of a prepaid cash expense incurred in a prior period), in each case,
to the extent that such non-cash charges were deducted in computing Consolidated Net Income;
plus

     (7) all items classified as extraordinary, unusual or nonrecurring non-cash losses or
charges (including, without limitation, severance, relocation and other restructuring costs)
and related tax effects according to GAAP to the extent such non-cash charges or losses were
deducted in computing Consolidated Net Income; minus

     (8) any fees, expenses or charges related to any Equity Offering, Permitted Investment,
acquisition or recapitalization or Indebtedness permitted to be incurred by this Indenture
(whether or not consummated); plus

     (9) the amount of any minority interest expense deducted in calculating Consolidated
Net Income; minus

     (10) non-cash items increasing Consolidated Net Income for such period, other than the
accrual of revenue in the ordinary course of business,

in each case, on a consolidated basis and determined in accordance with GAAP.

     “Consolidated Net Assets” means, with respect to the Company, the total of all assets
appearing on the consolidated balance sheet of the Company and its majority owned or Wholly Owned
Restricted Subsidiaries, as determined on a consolidated basis in accordance with GAAP.

     “Consolidated Net First Lien Indebtedness” means the aggregate amount of First Lien Debt of
the Company and its Restricted Subsidiaries (net of cash and Cash Equivalents on a consolidated
basis on the date of determination) on a consolidated basis outstanding at the date of
determination.

     “Consolidated Net Income” means, with respect to any specified Person for any period, the
aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that:

     (1) the Net Income of any Person that is not a Restricted Subsidiary or that is
accounted for by the equity method of accounting will be included only to the extent of the
amount of dividends or similar distributions paid in cash to the specified Person or a
Restricted Subsidiary of the Person;

     (2) the Net Income of any Restricted Subsidiary will be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted Subsidiary
of that Net Income is not at the date of determination permitted without any prior
governmental approval

6

 

(that has not been obtained) or, directly or indirectly, by operation of the terms of
its charter or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Restricted Subsidiary or its stockholders (except
to the extent of the amount of dividends or distributions that have actually been paid in
the calculation period);

     (3) the cumulative effect of a change in accounting principles will be excluded; and

     (4) the net loss of any Person that is not a Restricted Subsidiary will be excluded.

     “Consolidated Net Indebtedness” means the aggregate amount of Indebtedness of the Company and
its Restricted Subsidiaries (net of cash and Cash Equivalents on a consolidated basis on the date
of determination) on a consolidated basis outstanding at the date of determination.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who:

     (1) was a member of such Board of Directors on the date of this Indenture; or

     (2) was nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of Directors at the
time of such nomination or election.

     “Copyright Agreement” means the First Lien Copyright Security Agreement, dated as of April 22,
2005, among the Company, the Guarantors party thereto, the other grantors party thereto from time
to time and the Collateral Trustee, as such agreement may be amended, modified or supplemented from
time to time.

     “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in
Section 13.02 hereof or such other address as to which the Trustee may give notice to the Company.

     “Credit Facilities” means, one or more indentures, agreements, debt facilities or commercial
paper facilities, in each case, providing for revolving credit loans, term loans, receivables
financing (including through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of credit, in each case, as
amended, restated, modified, renewed, refunded, replaced (whether upon or after termination or
otherwise) or refinanced (including by means of sales of debt securities to institutional
investors) in whole or in part from time to time.

     “Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto.

     “Default” means any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.

     “Definitive Note” means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06 hereof, substantially in the form of Exhibit A hereto except
that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges
of Interests in the Global Note” attached thereto.

     “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.03 hereof as the Depositary with respect to the Notes, and
any and

7

 

all successors thereto appointed as depositary hereunder and having become such pursuant to
the applicable provision of this Indenture.

     “Designated Non-Cash Consideration” means any non-cash consideration received by the Company
or any of its Restricted Subsidiaries in connection with an Asset Sale that is designated as
Designated Non-Cash Consideration pursuant to an officers’ certificate setting forth the Fair
Market Value of such non-cash consideration and the basis for such valuation.

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case, at the option
of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the
date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock that
would constitute Disqualified Stock solely because the holders of the Capital Stock have the right
to require the Company to repurchase such Capital Stock upon the occurrence of a change of control,
asset sale or other corporate events will not constitute Disqualified Stock if the terms of such
Capital Stock provide that the Company may not repurchase or redeem any such Capital Stock pursuant
to such provisions unless such repurchase or redemption complies with Section 4.07 hereof. The
amount of Disqualified Stock deemed to be outstanding at any time for purposes of this Indenture
will be the maximum amount that the Company and its Restricted Subsidiaries may become obligated to
pay upon the maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified
Stock, exclusive of accrued dividends.

     “Domestic Subsidiary” means any Restricted Subsidiary of the Company that was formed under the
laws of the United States or any state of the United States or the District of Columbia or that
guarantees or otherwise provides direct credit support for any Indebtedness of the Company.

     “Equally and Ratably” means, in reference to sharing of Liens or proceeds thereof as between
holders of Secured Debt within the same Class, that such Liens or proceeds:

     (1) will be allocated and distributed first to the Secured Debt Representative for each
outstanding Series of Secured Debt within that Class, for the account of the holders of such
Series of Secured Debt, ratably in proportion to the principal of, and interest and premium
(if any) and reimbursement obligations (contingent or otherwise) with respect to letters of
credit, if any, outstanding (whether or not drawings have been made under such letters of
credit) on each outstanding Series of Secured Debt within that Class when the allocation or
distribution is made, and thereafter, and

     (2) will be allocated and distributed (if any remain after payment in full of all of
the principal of, and interest and premium (if any) and reimbursement obligations
(contingent or otherwise) with respect to letters of credit, if any, outstanding (whether or
not drawings have been made on such letters of credit) on all outstanding Secured
Obligations within that Class) to the Secured Debt Representative for each outstanding
Series of Secured Debt within that Class, for the account of the holders of any remaining
Secured Obligations within that Class, ratably in proportion to the aggregate unpaid amount
of such remaining Secured Obligations within that Class due and demanded (with written
notice to the applicable Secured Debt Representative and the Collateral Trustee) prior to
the date such distribution is made.

     “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

8

 

     “Equity Offering” means a public or private offering of common equity securities effected by
the Company or the Company’s direct or indirect parent company (so long as the proceeds of such
equity offering are substantially concurrently contributed to the Company).

     “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear system.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange Notes” means the Notes issued in the Exchange Offer pursuant to Section 2.06(f)
hereof.

     “Exchange Offer” has the meaning set forth in the Registration Rights Agreement.

     “Exchange Offer Registration Statement” has the meaning set forth in the Registration Rights
Agreement.

     “Excluded Assets” means each of the following:

     (1) any lease, license, contract, property right or agreement to which the Company or
any other Pledgor is a party or bound or any of its rights or interests thereunder if and
only for so long as the grant of a Lien under the Security Documents will constitute or
result in a breach, forfeiture, termination or default under any such lease, license,
contract, property right or agreement (other than to the extent that any such term would be
rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform
Commercial Code of any relevant jurisdiction or any other applicable law or principles of
equity); provided that such lease, license, contract, property right or agreement will be an
Excluded Asset only to the extent and for so long as the consequences specified above will
result and will cease to be an Excluded Asset and will become subject to the Lien granted
under the Security Documents, immediately and automatically, at such time as such
consequences will no longer result;

     (2) real property owned by the Company or any other Pledgor that has a Fair Market
Value not exceeding $5.0 million in the aggregate, or any real property leased by the
Company or any other Pledgor;

     (3) all “securities” of any of the Company’s “affiliates” (as the terms “securities”
and “affiliates” are used in Rule 3-16 of Regulation S-X under the Securities Act); and

     (4) any other property or assets in which a Lien cannot be perfected by the filing of a
financing statement under the Uniform Commercial Code of the relevant jurisdiction, so long
as the aggregate Fair Market Value of all such property and assets does not at any one time
exceed $10.0 million or, if greater, 5.0% of the aggregate Fair Market Value of all
properties and assets of the Company and the other Pledgors.

     “Existing Indebtedness” means Indebtedness of the Company and its Subsidiaries in existence on
the date of this Indenture, until such amounts are repaid.

     “Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated
willing seller, determined in good faith by the Board of Directors of the Company (unless otherwise
provided in this Indenture).

9

 

     “First Lien Debt” means:

     (1) the Notes issued on the date of this Indenture (including any related Exchange
Notes); and

     (2) any other Indebtedness of the Company (including Additional Notes) that is secured
Equally and Ratably with the Notes by a First Priority Lien that was permitted to be
incurred and so secured under each applicable Secured Debt Document; provided that:

     (a) on or before the date on which such Indebtedness is incurred by the Company, such
Indebtedness is designated by the Company, in an Officers’ Certificate delivered to each
Secured Debt Representative and the Collateral Trustee, as “First Lien Debt” for the
purposes of this Indenture and the Collateral Trust Agreement; provided that no Series of
Secured Debt may be designated as both First Lien Debt and Second Lien Debt;

     (b) such Indebtedness is governed by an indenture, credit agreement or other agreement
that includes a Lien Sharing and Priority Confirmation; and

     (c) all requirements set forth in the Collateral Trust Agreement as to the
confirmation, grant or perfection of the Collateral Trustee’s Liens to secure such
Indebtedness or Obligations in respect thereof are satisfied (and the satisfaction of such
requirements and the other provisions of this clause (c) will be conclusively established if
the Company delivers to the Collateral Trustee an Officers’ Certificate stating that such
requirements and other provisions have been satisfied and that such Indebtedness is “First
Lien Debt”).

     “First Lien Documents” means the Secured Documents as related to the Notes or other First Lien
Debt.

     “First Lien Leverage Ratio” means, with respect to any Person as of any date of determination,
the ratio of (x) the Consolidated Net First Lien Indebtedness of such Person as of such date of
determination to (y) the Consolidated Cash Flow of such Person for the four full fiscal quarters
ending on or immediately preceding such date of determination for which financial statements are
publicly available (exclusive of amounts attributable to discontinued operations, as determined in
accordance with GAAP, or operations and businesses disposed of prior to the date of determination).

     In the event that the referent Person or any of its Subsidiaries incurs, assumes, guarantees
or redeems any First Lien Debt or issues or redeems preferred stock subsequent to the commencement
of the period for which the First Lien Leverage Ratio is being calculated but on or prior to the
date on which the event for which the calculation of the First Lien Leverage Ratio is made, then
the First Lien Leverage Ratio shall be calculated giving pro forma effect to that incurrence,
assumption, guarantee or redemption of First Lien Debt, or that issuance or redemption of preferred
stock and the use of the proceeds therefrom, as if the same had occurred at the beginning of the
applicable four-quarter reference period.

     For purposes of making the computation referred to above, acquisitions that have been made by
the Company or any of its Subsidiaries, including all mergers or consolidations and any related
financing transactions, during the four-quarter reference period shall be deemed to have occurred
on the first day of the four-quarter reference period and Consolidated Cash Flow for that reference
period shall be calculated to include the Consolidated Cash Flow of the acquired entities on a pro
forma basis after giving effect to cost savings reasonably expected to be realized in connection
with that acquisition, as determined in good faith by the chief financial officer of the Company
(regardless of whether those cost savings could then be

10

 

reflected in pro forma financial statements under GAAP, Regulation S-X promulgated by the SEC
or any other regulation or policy of the SEC).

     “First Lien Obligations” means First Lien Debt and all other Obligations in respect thereof.

     “First Lien Representative” means:

     (1) in the case of the Notes, the Trustee; or

     (2) in the case of any other Series of First Lien Debt, the trustee, agent or
representative of the holders of such Series of First Lien Debt who maintains the transfer
register for such Series of First Lien Debt and (a) is appointed as a First Lien
Representative (for purposes related to the administration of the Security Documents)
pursuant to the indenture, credit agreement or other agreement governing such Series of
First Lien Debt, together with its successors in such capacity, and (b) has become a party
to the Collateral Trust Agreement by executing a joinder in the form required under the
Collateral Trust Agreement.

     “First Priority Liens” means a Lien granted by a Security Document to the Collateral Trustee,
at any time, upon any property of the Company or any other Pledgor to secure First Lien
Obligations.

     “Fixed Charges” means, with respect to any specified Person for any period, the sum, without
duplication, of:

     (1) the consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued, including, without limitation, amortization of
debt issuance costs and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all payments
associated with Capital Lease Obligations, commissions, discounts and other fees and charges
incurred in respect of letter of credit or bankers’ acceptance financings, and net of the
effect of all payments made or received pursuant to Hedging Obligations in respect of
interest rates; plus

     (2) the consolidated interest expense of such Person and its Restricted Subsidiaries
that was capitalized during such period; plus

     (3) any interest on Indebtedness of another Person that is guaranteed by such Person or
one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of
its Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon; plus

     (4) the product of (a) all dividends, whether paid or accrued and whether or not in
cash, on any series of preferred stock of such Person or any of its Restricted Subsidiaries,
other than dividends on Equity Interests payable solely in Equity Interests of the Company
(other than Disqualified Stock) or to the Company or a Restricted Subsidiary of the Company,
times (b) a fraction, the numerator of which is one and the denominator of which is one
minus the then current combined federal, state and local statutory tax rate of such Person,
expressed as a decimal, in each case, determined on a consolidated basis in accordance with
GAAP.

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such

11

 

other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are in effect on the date of this Indenture.

     “Global Note Legend” means the legend set forth in Section 2.06(g)(2) hereof, which is
required to be placed on all Global Notes issued under this Indenture.

     “Global Notes” means, individually and collectively, each of the Restricted Global Notes and
the Unrestricted Global Notes deposited with or on behalf of and registered in the name of the
Depository or its nominee, substantially in the form of Exhibit A hereto and that bears the Global
Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached
thereto, issued in accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(f)
hereof.

     “Government Securities” means direct obligations of, or obligations guaranteed by, the United
States of America, and the payment for which the United States pledges its full faith and credit.

     “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any manner including, without
limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements
in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or
services, to take or pay or to maintain financial statement conditions or otherwise).

     “Guarantors” means each of:

     (1) Ziff Davis Publishing Holdings Inc., Ziff Davis Publishing Inc., Ziff Davis
Development Inc., Ziff Davis Internet Inc. and Holdings; and

     (2) any other Domestic Subsidiary of the Company that executes a Note Guarantee in
accordance with the provisions of this Indenture,

and their respective successors and assigns, in each case, until the Note Guarantee of such Person
has been released in accordance with the provisions of this Indenture.

     “Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person under:

     (1) interest rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements;

     (2) other agreements or arrangements designed to manage interest rates or interest rate
risk; and

     (3) other agreements or arrangements designed to protect such Person against
fluctuations in currency exchange rates or commodity prices.

     “Holder” means a Person in whose name a Note is registered.

     “Holdings” means Ziff Davis Holdings Inc., a Delaware corporation.

12

 

     “IAI Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing
the Global Note Legend and the Private Placement Legend and deposited with or on behalf of and
registered in the name of the Depositary or its nominee that will be issued in a denomination equal
to the outstanding principal amount of the Notes sold to Institutional Accredited Investors

     “Immaterial Subsidiary” means, as of any date, any Restricted Subsidiary whose total assets,
as of that date, are less than $100,000 and whose total revenues for the most recent 12-month
period do not exceed $100,000; provided that a Restricted Subsidiary will not be considered to be
an Immaterial Subsidiary if it, directly or indirectly, guarantees or otherwise provides direct
credit support for any Indebtedness of the Company.

     “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person
(excluding accrued expenses and trade payables), whether or not contingent:

     (1) in respect of borrowed money;

     (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit
(or reimbursement agreements in respect thereof);

     (3) in respect of banker’s acceptances;

     (4) representing Capital Lease Obligations;

     (5) representing the balance deferred and unpaid of the purchase price of any property
or services due more than twelve months after such property is acquired or such services are
completed; or

     (6) representing any Hedging Obligations,

     if and to the extent any of the preceding items (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in
accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others
secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed
by the specified Person) and, to the extent not otherwise included, the Guarantee by the specified
Person of any Indebtedness of any other Person.

     “Indenture” means this Indenture, as amended or supplemented from time to time.

     “Indirect Participant” means a Person who holds a beneficial interest in a Global Note through
a Participant.

     “Initial Notes” means the first $205,000,000 aggregate principal amount of Notes issued under
this Indenture on the date hereof.

     “Initial Purchasers” means Bear, Stearns & Co. Inc. and Lehman Brothers Inc.

     “Insolvency or Liquidation Proceeding” means:

     (1) any case commenced by or against the Company or any other Pledgor under Title 11,
U.S. Code or any similar federal or state law for the relief of debtors, any other
proceeding for the reorganization, recapitalization or adjustment or marshalling of the
assets or liabilities of the

13

 

Company or any other Pledgor, any receivership or assignment for the benefit of
creditors relating to the Company or any other Pledgor or any similar case or proceeding
relative to the Company or any other Pledgor or its creditors, as such, in each case whether
or not voluntary;

     (2) any liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to the Company or any other Pledgor, in each case whether or not voluntary
and whether or not involving bankruptcy or insolvency; or

     (3) any other proceeding of any type or nature in which substantially all claims of
creditors of the Company or any other Pledgor are determined and any payment or distribution
is or may be made on account of such claims.

     “Institutional Accredited Investor” means an institution that is an “accredited investor” as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, who are not also QIBs.

     “Investments” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other
obligations), advances or capital contributions (excluding commission, travel and similar advances
to officers and employees made in the ordinary course of business), purchases or other acquisitions
for consideration of Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in accordance with GAAP.
If the Company or any Subsidiary of the Company sells or otherwise disposes of any Equity Interests
of any direct or indirect Subsidiary of the Company such that, after giving effect to any such sale
or disposition, such Person is no longer a Subsidiary of the Company, the Company will be deemed to
have made an Investment on the date of any such sale or disposition equal to the Fair Market Value
of the Company’s Investments in such Subsidiary that were not sold or disposed of in an amount
determined as provided in Section 4.07(c) hereof. Except as otherwise provided in this Indenture,
the amount of an Investment will be determined at the time the Investment is made and without
giving effect to subsequent changes in value.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or at a place of payment are authorized by law, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such
payment for the intervening period.

     “Letter of Transmittal” means the letter of transmittal to be prepared by the Company and sent
to all Holders of the Notes for use by such Holders in connection with the Exchange Offer.

     “Leverage Ratio” means, with respect to any Person as of any date of determination, the ratio
of (x) the Consolidated Net Indebtedness of such Person as of such date of determination to (y) the
Consolidated Cash Flow of such Person for the four full fiscal quarters ending on or immediately
preceding such date of determination for which financial statements are publicly available
(exclusive of amounts attributable to discontinued operations, as determined in accordance with
GAAP, or operations and businesses disposed of prior to the date of determination).

     In the event that the referent Person or any of its Subsidiaries incurs, assumes, guarantees
or redeems any Indebtedness (other than revolving credit borrowings) or issues or redeems preferred
stock subsequent to the commencement of the period for which the Leverage Ratio is being calculated
but on or prior to the date on which the event for which the calculation of the Leverage Ratio is
made, then the

14

 

Leverage Ratio shall be calculated giving pro forma effect to that incurrence, assumption,
guarantee or redemption of Indebtedness, or that issuance or redemption of preferred stock and the
use of the proceeds therefrom, as if the same had occurred at the beginning of the applicable
four-quarter reference period.

     For purposes of making the computation referred to above, acquisitions that have been made by
the Company or any of its Subsidiaries, including all mergers or consolidations and any related
financing transactions, during the four-quarter reference period shall be deemed to have occurred
on the first day of the four-quarter reference period and Consolidated Cash Flow for that reference
period shall be calculated to include the Consolidated Cash Flow of the acquired entities on a pro
forma basis after giving effect to cost savings reasonably expected to be realized in connection
with that acquisition, as determined in good faith by the chief financial officer of the Company
(regardless of whether those cost savings could then be reflected in pro forma financial statements
under GAAP, Regulation S-X promulgated by the SEC or any other regulation or policy of the SEC).

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title retention agreement,
any lease in the nature thereof, any option or other agreement to sell or give a security interest
under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

     “Lien Sharing and Priority Confirmation” means:

     (1) as to any Series of Second Lien Debt, the written agreement of the holders of such
Series of Second Lien Debt, as set forth in the indenture, credit agreement or other
agreement governing such Series of Second Lien Debt, for the enforceable benefit of all
holders of each existing and future Series of First Lien Debt, each existing and future
First Lien Representative and each existing and future holder of Permitted Prior Liens:

          (a) that all Second Lien Obligations will be and are secured Equally and Ratably by all
Second Priority Liens at any time granted by the Company or any other Pledgor to secure any
Obligations in respect of such Series of Second Lien Debt, whether or not upon property
otherwise constituting collateral for such Series of Second Lien Debt, and that all such
Second Priority Liens will be enforceable by the Collateral Trustee for the benefit of all
holders of Second Lien Obligations Equally and Ratably;

          (b) that the holders of Obligations in respect of such Series of Second Lien Debt are
bound by the provisions of the Collateral Trust Agreement, including the provisions relating
to the ranking of Second Priority Liens and the order of application of proceeds from the
enforcement of Second Priority Liens; and

     (c) consenting to and directing the Collateral Trustee to perform its obligations under
the Collateral Trust Agreement and the other Security Documents; and

     (2) as to any Series of First Lien Debt, the written agreement of the holders of such
Series of First Lien Debt, as set forth in the indenture, credit agreement or other
agreement governing such Series of First Lien Debt, for the enforceable benefit of all
holders of each Series of Second Lien Debt, each Second Lien Representative and each
existing and future holder of Permitted Prior Liens:

          (a) that all First Lien Obligations will be and are secured Equally and Ratably by all
First Priority Liens at any time granted by the Company or any other Pledgor to secure any

15

 

Obligations in respect of such Series of First Lien Debt, whether or not upon property
otherwise constituting collateral for such Series of First Lien Debt, and that all such First
Priority Liens will be enforceable by the Collateral Trustee for the benefit of all holders
of First Lien Obligations Equally and Ratably;

          (b) that the holders of Obligations in respect of such Series of First Lien Debt are
bound by the provisions of the Collateral Trust Agreement, including the provisions relating
to the ranking of First Priority Liens and the order of application of proceeds from
enforcement of First Priority Liens; and

          (c) consenting to and directing the Collateral Trustee to perform its obligations under
the Collateral Trust Agreement and the other Security Documents.

     “Liquidated Damages” means all liquidated damages then owing pursuant to the Registration
Rights Agreement.

     “Moody’s” means Moody’s Investor Services, Inc.

     “Net Income” means, with respect to any specified Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however:

     (1) any gain or loss, together with any related provision for taxes on such gain or
loss, realized in connection with: (a) any Asset Sale; or (b) the disposition of any
securities by such Person or any of its Restricted Subsidiaries or the extinguishment of any
Indebtedness of such Person or any of its Restricted Subsidiaries; and

     (2) any extraordinary gain or loss, together with any related provision for taxes on
such extraordinary gain or loss.

     “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash
received upon the sale or other disposition of any non-cash consideration received in any Asset
Sale), net of the costs relating to such Asset Sale, including, without limitation, legal,
accounting and investment banking fees, and sales commissions, and any relocation expenses incurred
as a result of the Asset Sale, taxes paid or payable as a result of the Asset Sale, in each case,
after taking into account any available tax credits or deductions and any tax sharing arrangements,
amounts required to be applied to the repayment of Indebtedness where payment of such Indebtedness
is secured by a Lien on the asset or assets that were the subject of such Asset Sale and any
reserve for adjustment in respect of the sale price of such asset or assets established in
accordance with GAAP.

     “Non-Recourse Debt” means Indebtedness:

     (1) as to which neither the Company nor any of its Restricted Subsidiaries (a) provides
credit support of any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise,
or (c) constitutes the lender;

     (2) no default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would
permit upon notice, lapse of time or both any holder of any other Indebtedness of the
Company or

16

 

any of its Restricted Subsidiaries to declare a default on such other Indebtedness or
cause the payment of the Indebtedness to be accelerated or payable prior to its Stated
Maturity; and

     (3) as to which the lenders have been notified in writing that they will not have any
recourse to the stock or assets of the Company or any of its Restricted Subsidiaries.

     “Non-U.S. Person” means a Person who is not a U.S. Person.

     “Note Documents” means this Indenture, the Notes, the Note Guarantees, the Collateral Trust
Agreement and the Security Agreements.

     “Note Guarantee” means the Guarantee by each Guarantor of the Company’s obligations under this
Indenture and the Notes, executed pursuant to the provisions of this Indenture.

     “Notes” has the meaning assigned to it in the preamble to this Indenture. The Initial Notes
and the Additional Notes shall be treated as a single class for all purposes under this Indenture,
and unless the context otherwise requires, all references to the Notes shall include the Initial
Notes and any Additional Notes.

     “Obligations” means any principal (including reimbursement obligations with respect to letters
of credit whether or not drawn), interest (including, to the extent legally permitted, all interest
accrued thereon after the commencement of any Insolvency or Liquidation Proceeding at the rate,
including any applicable post-default rate, specified in the Secured Debt Documents, even if such
interest is not enforceable, allowable or allowed as a claim in such proceeding), premium (if any),
fees, indemnifications, reimbursements, damages, expenses and other liabilities payable under the
documentation governing any Indebtedness.

     “Offering Memorandum” means the offering memorandum of the Company, dated April 18, 2005,
relating to the initial offering of the Notes.

     “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person.

     “Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers of
the Company, one of whom must be the principal executive officer, the principal financial officer,
the treasurer or the principal accounting officer of the Company, that meets the requirements of
Section 13.05 hereof.

     “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 13.05 hereof. The counsel may be an employee of or
counsel to the Company, any Subsidiary of the Company or the Trustee.

     “Parent” means any direct or indirect parent of the Company.

     “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to
DTC, shall include Euroclear and Clearstream).

17

 

     “Permitted Business” means the lines of business conducted by the Company and its Subsidiaries
on the date of this Indenture and any businesses similar, incidental or ancillary thereto or that
constitutes a reasonable extension or expansion thereof.

     “Permitted Holder” means WSP.

     “Permitted Investments” means:

     (1) any Investment in the Company or in a Restricted Subsidiary;

     (2) any Investment in Cash Equivalents;

     (3) any Investment by the Company or any Restricted Subsidiary in a Person, if as a
result of such Investment:

     (a) such Person becomes a Restricted Subsidiary; or

     (b) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into, the
Company or a Restricted Subsidiary;

     (4) any Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10 hereof;

     (5) any acquisition of assets or Capital Stock solely in exchange for the issuance of
Equity Interests (other than Disqualified Stock) of the Company;

     (6) any Investments received in compromise or resolution of (A) obligations of trade
creditors or customers that were incurred in the ordinary course of business of the Company
or any of its Restricted Subsidiaries, including pursuant to any plan of reorganization or
similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; or
(B) litigation, arbitration or other disputes with Persons who are not Affiliates;

     (7) Investments represented by Hedging Obligations;

     (8) loans and advances to or guarantees of third-party loans to officers, directors,
employees or consultants for bona fide business purposes in an aggregate principal amount
not to exceed $2.0 million in each year and $5.0 million in the aggregate;

     (9) repurchases of the Notes;

     (10) Investments consisting of licenses or leases of intellectual property in the
ordinary course of business;

     (11) any Investment acquired by the Company or any Restricted Subsidiary:

     (a) in exchange for any other Investment or accounts receivable held by the
Company or any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such other
Investment or accounts receivable, or

18

 

     (b) as a result of a foreclosure by the Company or any Restricted Subsidiary
with respect to any secured Investment or other transfer of title with respect to
any secured Investment in default;

     (12) Investments consisting of the licensing or contribution of intellectual property
pursuant to joint marketing arrangements with other Persons;

     (13) Investments consisting of purchases and acquisitions of inventory, supplies,
materials and equipment or licenses or leases of intellectual property, in any case, in the
ordinary course of business;

     (14) Investments consisting of endorsements for collection or deposit in the ordinary
course of business;

     (15) Guarantees by the Company or any Restricted Subsidiary of Indebtedness otherwise
permitted to be incurred by the Company or such Restricted Subsidiary, as the case may be,
under this Indenture;

     (16) any Investments existing on the date of this Indenture;

     (17) the conversion or exchange of any Permitted Investment for another Investment
without additional consideration; and

     (18) other Investments in any Person other than an Affiliate of the Company having an
aggregate Fair Market Value (measured on the date each such Investment was made and without
giving effect to subsequent changes in value), when taken together with all other
Investments made pursuant to this clause (18) that are at the time outstanding not to exceed
$25.0 million.

     “Permitted Liens” means:

     (1) Liens created pursuant to the Security Documents securing:

     (a) Equally and Ratably, the Notes and any future First Lien Debt (including
Additional Notes), permitted to be incurred pursuant to clause (1) of the definition
of Permitted Debt; and

     (b) any future Second Lien Debt permitted to be incurred pursuant to clause
(15) of the definition of Permitted Debt;

     (2) Liens in favor of the Company or the Guarantors;

     (3) Liens on property of a Person existing at the time such Person is merged with or
into or consolidated with the Company or any Subsidiary of the Company; provided that such
Liens were in existence prior to the contemplation of such merger or consolidation and do
not extend to any assets other than those of the Person merged into or consolidated with the
Company or the Subsidiary;

     (4) Liens on property (including Capital Stock) existing at the time of acquisition of
the property by the Company or any Subsidiary of the Company; provided that such Liens were
in existence prior to, such acquisition, and not incurred in contemplation of, such
acquisition;

19

 

     (5) Liens to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the ordinary course of
business;

     (6) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
clause (4) of Section 4.09(b) hereof, covering only the assets acquired with or financed by
such Indebtedness;

     (7) Liens existing on the date of this Indenture;

     (8) Liens for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided that any reserve or other appropriate
provision as is required in conformity with GAAP has been made therefor;

     (9) Liens imposed by law, such as carriers’, repairman’s, warehousemen’s, landlord’s
and mechanics’ Liens, in each case, incurred in the ordinary course of business;

     (10) survey exceptions, defects or irregularities in title, easements or reservations
of, or rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other restrictions as to the use of
real property that were not incurred in connection with Indebtedness and that do not in the
aggregate materially adversely affect the value of said properties or materially impair
their use in the operation of the business of such Person;

     (11) Liens created for the benefit of (or to secure) the Notes (or the Note
Guarantees);

     (12) Liens to secure any Permitted Refinancing Indebtedness permitted to be incurred
under this Indenture; provided, however, that:

     (a) the new Lien shall be limited to all or part of the same property and
assets that secured or, under the written agreements pursuant to which the original
Lien arose, could secure the original Lien (plus improvements and accessions to,
such property or proceeds or distributions thereof); and

     (b) the Indebtedness secured by the new Lien is not increased to any amount
greater than the sum of (x) the outstanding principal amount, or, if greater,
committed amount, of the Permitted Refinancing Indebtedness and (y) an amount
necessary to pay any fees and expenses, including premiums, related to such renewal,
refunding, refinancing, replacement, defeasance or discharge;

     (13) Liens arising out of consignment or similar arrangements for the sale of goods in
the ordinary course of business;

     (14) licenses, sublicenses, leases or subleases granted to others that do not
materially interfere with the ordinary course of business of the Company and its Restricted
Subsidiaries, taken as a whole;

     (15) Liens incurred or pledges or deposits made in connection with workmen’s
compensation, unemployment insurance and other types of social security or other insurance-

20

 

related obligations (including, without limitation, pledges or deposits securing
liability to insurance carriers under insurance or self-insurance arrangements);

     (16) Liens incurred in the ordinary course of business of the Company or any Subsidiary
of the Company with respect to obligations that do not exceed $10.0 million at any one time
outstanding;

     (17) deposits to secure the performance of tenders, bids, sales, trade and government
contracts, leases, statutory obligations, surety, appeal, and supersedes bonds, customs,
performance and return-of-money bonds and other obligations of a like nature in the ordinary
course of business whether pursuant to statutory requirements, common law or consensual
arrangements;

     (18) any interest or title of a lessor under any lease entered into by the Company or
any Restricted Subsidiary in the ordinary course of business;

     (19) any interest or title of any lessee under any leases or subleases of real property
of the Company or any Restricted Subsidiary;

     (20) Liens in respect of judgments not constituting an Event of Default;

     (21) customary rights of setoff, revocation, refund or chargeback under deposit
agreements or under the UCC of banks or other financial institutions where the Company or
any Restricted Subsidiary maintains deposits in the ordinary course of business;

     (22) Liens arising by operation of law or contract on insurance policies and the
proceeds thereof to secure premiums thereunder;

     (23) Liens in favor of cash sellers under Article 2 of the UCC;

     (24) Liens on specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of banker’s acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of such inventory
or other goods;

     (25) Liens securing reimbursement obligations with respect to commercial letters of
credit which encumber documents and other property relating to such letters of credit and
products and proceeds thereof;

     (26) Liens encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual, or warranty requirements of the Company or any Restricted
Subsidiary, including rights of offset and set-off;

     (27) Liens encumbering initial deposits and margin deposits, and similar Liens
attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary
course of business;

     (28) Liens solely on any cash earnest money deposits made by the Company or any
Restricted Subsidiary in connection with any letter of intent or purchase agreement entered
into by it in compliance with Section 4.09 hereof;

21

 

     (29) Liens securing Hedging Obligations that are permitted by this Indenture to be
incurred; and

     (30) Liens relating solely to assets to be sold in any Asset Sale permitted by this
Indenture arising pursuant to the sale agreements governing such Asset Sale.

     “Permitted Payments to Parent” means, without duplication as to amounts:

     (1) the payment of dividends, other distributions, loans, advances or other amounts by
the Company to Parent to pay corporate overhead incurred in the ordinary course of business;
and

     (2) for so long as the Company is a member of a group filing a consolidated or combined
tax return with the Parent, payments to the Parent in respect of an allocable portion of the
tax liabilities of such group that is attributable to the Company and its Subsidiaries,
taking into account any carryovers and carrybacks of tax attributes (such as net operating
losses) of the Company and such Subsidiaries from other taxable years (“Tax Payments”). Any
Tax Payments received from the Company shall be paid over to the appropriate taxing
authority within 30 days of the Parent’s receipt of such Tax Payments or refunded to the
Company.

     “Permitted Prior Liens” means:

     (1) Liens described in clauses (3), (4), (6) or (7) of the definition of “Permitted
Liens”; and

     (2) Permitted Liens that arise by operation of law and are not voluntarily granted, to
the extent entitled by law to priority over the Liens created by the Security Documents.

     “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its
Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to renew,
refund, refinance, replace, restructure, defease or discharge other Indebtedness of the Company or
any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

     (1) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness renewed, refunded, refinanced, replaced, defeased or
discharged (plus all accrued interest on the Indebtedness and the amount of all fees and
expenses, including premiums, incurred in connection therewith);

     (2) such Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than
the Weighted Average Life to Maturity of, the Indebtedness being renewed, refunded,
refinanced, replaced, defeased or discharged;

     (3) if the Indebtedness being renewed, refunded, refinanced, replaced, defeased or
discharged is subordinated in right of payment to the Notes, such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of, and is
subordinated in right of payment to, the Notes on terms at least as favorable to the Holders
of Notes as those contained in the documentation governing the Indebtedness being renewed,
refunded, refinanced, replaced, defeased or discharged; and

22

 

     (4) such Indebtedness is incurred either by the Company or by the Restricted Subsidiary
who is the obligor on the Indebtedness being renewed, refunded, refinanced, replaced,
defeased or discharged.

     “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company or government or
other entity.

     “Pledge Agreement” means the First Lien Security Agreement, dated as of April 22, 2005, the
Company, the Guarantors party thereto, the other grantors party thereto from time to time and the
Collateral Trustee, as such agreement may be amended, modified or supplemented from time to time.

     “Pledgors” means the Company, the Guarantors (but not including Holdings) and any other Person
(if any) that provides collateral security for any Secured Obligations.

     “Private Placement Legend” means the legend set forth in Section 2.06(g)(1) hereof to be
placed on all Notes issued under this Indenture except where otherwise permitted by the provisions
of this Indenture.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of April 22,
2005, among the Company, the Guarantors and the other parties named on the signature pages thereof,
as such agreement may be amended, modified or supplemented from time to time and, with respect to
any Additional Notes, one or more registration rights agreements among the Company, the Guarantors
and the other parties thereto, as such agreement(s) may be amended, modified or supplemented from
time to time, relating to rights given by the Company to the purchasers of Additional Notes to
register such Additional Notes under the Securities Act.

     “Regulation S” means Regulation S promulgated under the Securities Act.

     “Regulation S Global Note” means a Global Note substantially in the form of Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of
and registered in the name of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Rule 903 of Regulation S.

     “Related Party” means:

     (1) any controlling stockholder, 80% (or more) owned Subsidiary, or immediate family
member (in the case of an individual) of any Principal; or

     (2) any trust, corporation, partnership, limited liability company or other entity, the
beneficiaries, stockholders, partners, members, owners or Persons beneficially holding an
80% or more controlling interest of which consist of any one or more Principals and/or such
other Persons referred to in the immediately preceding clause (1).

     “Responsible Officer,” when used with respect to the Trustee, means any officer within the
Corporate Trust Administration of the Trustee (or any successor group of the Trustee) or any other
officer of the Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

23

 

     “Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.

     “Restricted Global Note” means a Global Note bearing the Private Placement Legend.

     “Restricted Investment” means an Investment other than a Permitted Investment.

     “Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary.

     “Rule 144” means Rule 144 promulgated under the Securities Act.

     “Rule 144A” means Rule 144A promulgated under the Securities Act.

     “Rule 903” means Rule 903 promulgated under the Securities Act.

     “Rule 904” means Rule 904 promulgated under the Securities Act.

     “S&P” means Standard & Poor’s, a division of the McGraw-Hill Companies, Inc.

     “SEC” means the Securities and Exchange SEC.

     “Sale of Collateral” means any Asset Sale involving a sale or other disposition of Collateral.

     “Second Lien Debt” means any Indebtedness of the Company (including second-priority notes)
that is secured Equally and Ratably by a Second Priority Lien that was permitted to be incurred and
so secured under each applicable Secured Debt Document; provided that:

     (1) on or before the date on which such Indebtedness is incurred by the Company, such
Indebtedness is designated by the Company, in an Officers’ Certificate delivered to each
Secured Debt Representative and the Collateral Trustee, as “Second Lien Debt” for the
purposes of this Indenture and the Collateral Trust Agreement; provided that no Series of
Secured Debt may be designated as both First Lien Debt and Second Lien Debt;

     (2) such Indebtedness is governed by an indenture, credit agreement or other agreement
that includes a Lien Sharing and Priority Confirmation; and

     (3) all requirements set forth in the Collateral Trust Agreement as to the
confirmation, grant or perfection of the Collateral Trustee’s Liens to secure such
Indebtedness or Obligations in respect thereof are satisfied (and the satisfaction of such
requirements and the other provisions of this clause (3) will be conclusively established if
the Company delivers to the Collateral Trustee an Officers’ Certificate stating that such
requirements and other provisions have been satisfied and that such Indebtedness is “Second
Lien Debt”).

     “Second Lien Documents” means the Secured Debt Documents as related to Second Lien Debt.

     “Second Lien Obligations” means Second Lien Debt and all other Obligations in respect thereof.

     “Second Lien Representative” means in the case of any Series of Second Lien Debt, the trustee,
agent or representative of the holders of such Series of Second Lien Debt who maintains the
transfer register for such Series of Second Lien Debt and (a) is appointed as a Second Lien
Representative (for purposes related to the administration of the security documents) pursuant to
the indenture, credit

24

 

agreement or other agreement governing such Series of Second Lien Debt, together with its
successors in such capacity, and (b) has become a party to the Collateral Trust Agreement by
executing a joinder in the form required under the Collateral Trust Agreement.

     “Second Priority Liens” means a Lien granted by a Security Document to the Collateral Trustee,
at any time, upon any property of the Company or any other Pledgor to secure Second Lien
Obligations.

     “Secured Debt” means any First Lien Debt and any Second Lien Debt.

     “Secured Debt Documents” means First Lien Documents and Second Lien Documents.

     “Secured Debt Representative” means any First Lien Representative and any Second Lien
Representative.

     “Secured Liens” means all First Priority Liens and all Second Priority Liens.

     “Secured Obligations” means all First Lien Obligations and all Second Lien Obligations.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Security Agreements” means the Trademark Agreement, the Pledge Agreement and the Copyright
Agreement.

     “Security Documents” means the Collateral Trust Agreement, each of the Security Agreements,
each Lien Sharing and Priority Confirmation, and all security documents, collateral assignments,
mortgages, deeds of trust, collateral agency agreements, control agreements or other grants or
transfers for security executed and delivered by the Company or any other Pledgor creating (or
purporting to create) a Lien upon Collateral in favor of the Collateral Trustee, in each case, as
amended, modified, renewed, restated or replaced, in whole or in part, from time to time, in
accordance with its terms and the provisions as described in the Collateral Trust Agreement.

     “Series of First Lien Debt” means, severally, the Notes and each other issue or series of
First Lien Debt for which a single transfer register is maintained.

     “Series of Second Lien Debt” means, severally, any issue or series of Second Lien Debt for
which a single transfer register is maintained.

     “Series of Secured Debt” means each Series of First Lien Debt and each Series of Second Lien
Debt.

     “Shelf Registration Statement” means the Shelf Registration Statement as defined in the
Registration Rights Agreement.

     “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as
such Regulation is in effect on the date of this Indenture.

     “Stated Maturity” means, with respect to any installment of interest or principal on any
series of Indebtedness, the date on which the payment of interest or principal was scheduled to be
paid in the documentation governing such Indebtedness as of the date of this Indenture, and will
not include any

25

 

contingent obligations to repay, redeem or repurchase any such interest or principal prior to
the date originally scheduled for the payment thereof.

     “Subordinated Note Indentures” means the 2010 Subordinated Note Indenture and the 2009
Subordinated Note Indenture.

     “Subordinated Notes” means the 12% Senior Subordinated Notes due 2010 issued by the Company
pursuant to the 2010 Subordinated Note Indenture and the Senior Subordinated Compounding Notes due
2009 issued by the Company pursuant to the 2009 Subordinated Note Indenture.

     “Subsidiary” means, with respect to any specified Person:

     (1) any corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency and after giving effect to any voting agreement or stockholders’ agreement
that effectively transfers voting power) to vote in the election of directors, managers or
trustees of the corporation, association or other business entity is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person (or a combination thereof); and

     (2) any partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general partners of
which are that Person or one or more Subsidiaries of that Person (or any combination
thereof).

     “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

     “Total Interest Expense” means, with respect to any Person for any period, the sum, without
duplication, of:

     (1) the consolidated interest expense on Indebtedness determined in accordance with
GAAP of such Person and its Restricted Subsidiaries for such period, whether paid or accrued
in the relevant period, but excluding, without limitation, amortization and write-off of
debt issuance costs, dividends (including, without limitation, dividends on preferred stock)
and net payments, if any, pursuant to Hedging Obligations; plus

     (2) the component of consolidated interest of such Person and its Restricted
Subsidiaries that was capitalized during such period; plus

     (3) any interest payment paid by such Person on Indebtedness of another Person that is
Guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on
assets of such Person or one of its Restricted Subsidiaries, whether or not such Guarantee
or Lien is called upon and limited to the amount of such Guarantee or the fair market value
of the property secured by such Lien, as the case may be.

     “Trademark Agreement” means the First Lien Trademark Security Agreement, dated as of April 22,
2005, among the Company, the Guarantors party thereto, the other grantors party thereto from time
to time and the Collateral Trustee, as such agreement may be amended, modified or supplemented from
time to time.

     “Trustee” means U.S. Bank National Association until a successor replaces it in accordance
with the applicable provisions of this Indenture and thereafter means the successor serving
hereunder.

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     “Unrestricted Definitive Note” means a Definitive Note that does not bear and is not required
to bear the Private Placement Legend.

     “Unrestricted Global Note” means a Global Note that does not bear and is not required to bear
the Private Placement Legend.

     “Unrestricted Subsidiary” means any Subsidiary of the Company that is designated by the Board
of Directors of the Company as an Unrestricted Subsidiary pursuant to a resolution of the Board of
Directors, but only to the extent that such Subsidiary:

     (1) has no Indebtedness other than Non-Recourse Debt;

     (2) except as permitted by Section 4.11 hereof, is not party to any agreement,
contract, arrangement or understanding with the Company or any Restricted Subsidiary of the
Company unless the terms of any such agreement, contract, arrangement or understanding are
no less favorable to the Company or such Restricted Subsidiary than those that might be
obtained at the time from Persons who are not Affiliates of the Company;

     (3) is a Person with respect to which neither the Company nor any Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity
Interests or (b) to maintain or preserve such Person’s financial condition or to cause such
Person to achieve any specified levels of operating results; and

     (4) has not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Company or any Restricted Subsidiaries.

     “U.S. Person” means a U.S. Person as defined in Rule 902(k) promulgated under the Securities
Act.

     “Voting Stock” of any specified Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the Board of Directors of such Person.

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing:

     (1) the sum of the products obtained by multiplying (a) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect of the Indebtedness, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date
and the making of such payment; by

     (2) the then outstanding principal amount of such Indebtedness.

     “Wholly Owned Restricted Subsidiary” of any specified Person means a Restricted Subsidiary of
such Person all of the outstanding Capital Stock or other ownership interests of which (other than
directors’ qualifying shares) will at the time be owned by such Person or by one or more Wholly
Owned Restricted Subsidiaries of such Person and one or more Wholly Owned Subsidiaries of such
Person.

     “WSP” means Willis Stein & Partners II, L.P., Willis Stein & Partners III, L.P., Willis Stein
& Partners Dutch, L.P., Willis Stein & Partners Dutch III-A, L.P., Willis Stein & Partners Dutch
III-B, L.P.,

27

 

and Willis Stein & Partners III-C, L.P. and funds associated with or limited partners of any
of the foregoing.

Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	“Affiliate Transaction”
	 	 	4.11	 
	“Asset Sale Offer”
	 	 	3.09	 
	“Authentication Order”
	 	 	2.02	 
	“Change of Control Offer”
	 	 	4.15	 
	“Change of Control Payment”
	 	 	4.15	 
	“Change of Control Payment Date”
	 	 	4.15	 
	“Covenant Defeasance”
	 	 	8.03	 
	“DTC”
	 	 	2.03	 
	“Event of Default”
	 	 	6.01	 
	“Excess Proceeds”
	 	 	4.10	 
	“incur”
	 	 	4.09	 
	“Legal Defeasance”
	 	 	8.02	 
	“Offer Amount”
	 	 	3.09	 
	“Offer Period”
	 	 	3.09	 
	“Paying Agent”
	 	 	2.03	 
	“Permitted Debt”
	 	 	4.09	 
	“Payment Default”
	 	 	6.01	 
	“Purchase Date”
	 	 	3.09	 
	“Redemption Date”
	 	 	3.07	 
	“Registrar”
	 	 	2.03	 
	“Restricted Payments”
	 	 	4.07	 

Section 1.03 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture.

     The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Notes;

     “indenture security Holder” means a Holder of a Note;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the Notes and the Note Guarantees means the Company and the Guarantors,
respectively, and any successor obligor upon the Notes and the Note Guarantees, respectively.

     All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by SEC rule under the TIA have the meanings so assigned to them.

28

 

Section 1.04 Rules of Construction.

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and in the plural include the singular;

     (5) “will” shall be interpreted to express a command;

     (6) provisions apply to successive events and transactions; and

     (7) references to sections of or rules under the Securities Act will be deemed to
include substitute, replacement of successor sections or rules adopted by the SEC from time
to time.

ARTICLE 2

THE NOTES

Section 2.01 Form and Dating.

     (a) General. The Notes and the Trustee’s certificate of authentication will be
substantially in the form of Exhibit A hereto. The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage. Each Note will be dated the date of
its authentication. The Notes shall be in denominations of $1,000 and integral multiples thereof.

     The terms and provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Company, the Guarantors and the Trustee, by their execution
and delivery of this Indenture, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be controlling.

     (b) Global Notes. Notes issued in global form will be substantially in the form of
Exhibit A hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of
Interests in the Global Note” attached thereto). Notes issued in definitive form will be
substantially in the form of Exhibit A hereto (but without the Global Note Legend thereon and
without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global
Note will represent such of the outstanding Notes as will be specified therein and each shall
provide that it represents the aggregate principal amount of outstanding Notes from time to time
endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby
may from time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in
the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee
or the Custodian, at the direction of the Trustee, in accordance with instructions given by the
Holder thereof as required by Section 2.06 hereof.

     (c) Euroclear and Clearstream Procedures Applicable. The provisions of the
“Operating Procedures of the Euroclear System” and “Terms and Conditions Governing Use of
Euroclear” and the

29

 

“General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream
will be applicable to transfers of beneficial interests in the Regulation S Global Note that are
held by Participants through Euroclear or Clearstream.

Section 2.02 Execution and Authentication.

     At least one Officer must sign the Notes for the Company by manual or facsimile
signature.

     If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

     A Note will not be valid until authenticated by the manual signature of the Trustee. The
signature will be conclusive evidence that the Note has been authenticated under this Indenture.

     The Trustee will, upon receipt of a written order of the Company signed by two Officers (an
“Authentication Order”), authenticate and deliver Notes for original issue that may be validly
issued under this Indenture, including any Additional Notes up to the aggregate principal amount
stated in such Authentication Order. The aggregate principal amount of Notes outstanding at any
time may not exceed the aggregate principal amount of Notes authorized for issuance by the Company
pursuant to one or more Authentication Orders, except as provided in Section 2.07 hereof.

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of
the Company.

Section 2.03 Registrar and Paying Agent.

     The Company will maintain an office or agency where Notes may be presented for
registration of transfer or for exchange (“Registrar”) and an office or agency where Notes may be
presented for payment (“Paying Agent”). The Registrar will keep a register of the Notes and of
their transfer and exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term “Registrar” includes any co-registrar and the term “Paying
Agent” includes any additional paying agent. The Company may change any Paying Agent or Registrar
without notice to any Holder. The Company will notify the Trustee in writing of the name and
address of any Agent not a party to this Indenture. If the Company fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

     The Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with
respect to the Global Notes.

     The Company initially appoints the Trustee to act as the Registrar and Paying Agent and to act
as Custodian with respect to the Global Notes.

Section 2.04 Paying Agent to Hold Money in Trust.

     The Company will require each Paying Agent other than the Trustee to agree in writing
that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held
by the Paying Agent for the payment of principal, premium or Liquidated Damages, if any, or
interest on the Notes, and will notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The

30

 

Company at any time may require a Paying Agent to pay all money held by it to the Trustee.
Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) will
have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it
will segregate and hold in a separate trust fund for the benefit of the Holders all money held by
it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the Company, the
Trustee will serve as Paying Agent for the Notes.

Section 2.05 Holder Lists.

     The Trustee will preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of all Holders and shall otherwise comply
with TIA § 312(a). If the Trustee is not the Registrar, the Company will furnish to the Trustee at
least seven Business Days before each interest payment date and at such other times as the Trustee
may request in writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of the Holders of Notes and the Company shall otherwise comply
with TIA § 312(a).

Section 2.06 Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred except
as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged
by the Company for Definitive Notes if:

     (1) the Company delivers to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary or that it is no longer a clearing agency
registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Company within 120 days after the date of such notice from the Depositary;

     (2) the Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Definitive Notes and delivers a written notice to such
effect to the Trustee;  or

     (3) there has occurred and is continuing a Default or Event of Default with respect to
the Notes.

     Upon the occurrence of either of the preceding events in (1) or (2) above, Definitive Notes
shall be issued in such names as the Depositary shall instruct the Trustee. Global Notes also may
be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every
Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion
thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be authenticated and
delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged for
another Note other than as provided in this Section 2.06(a), however, beneficial interests in a
Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof.

     (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer
and exchange of beneficial interests in the Global Notes will be effected through the Depositary,
in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act. Transfers of beneficial
interests in the Global Notes also will

31

 

require compliance with either subparagraph (1) or (2) below, as applicable, as well as one or
more of the other following subparagraphs, as applicable:

     (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in
any Restricted Global Note may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided, however, that
prior to the expiration of the Restricted Period, transfers of beneficial interests in the
Regulation S Global Note may not be made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser). Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note. No written orders or instructions shall
be required to be delivered to the Registrar to effect the transfers described in this
Section 2.06(b)(1).

     (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar either:

     (A) both:

     (i) a written order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to credit or cause to be credited a
beneficial interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged; and

     (ii) instructions given in accordance with the Applicable
Procedures containing information regarding the Participant account to be
credited with such increase; or

     (B) both:

     (i) a written order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to cause to be issued a Definitive Note
in an amount equal to the beneficial interest to be transferred or
exchanged; and

     (ii) instructions given by the Depositary to the Registrar
containing information regarding the Person in whose name such Definitive
Note shall be registered to effect the transfer or exchange referred to in
(1) above.

     Upon consummation of an Exchange Offer by the Company in accordance with Section 2.06(f) hereof,
the requirements of this Section 2.06(b)(2) shall be deemed to have been satisfied upon receipt by
the Registrar of the instructions contained in the Letter of Transmittal delivered by the Holder of
such beneficial interests in the Restricted Global Notes. Upon satisfaction of all of the
requirements for transfer or exchange of beneficial interests in Global Notes contained in this
Indenture and the Notes or otherwise applicable under the Securities Act, the Trustee shall adjust
the principal amount of the relevant Global Note(s) pursuant to Section 2.06(h) hereof.

     (3) Transfer of Beneficial Interests to Another Restricted Global Note. A beneficial
interest in any Restricted Global Note may be transferred to a Person who takes delivery
thereof

32

 

in the form of a beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.06(b)(2) above and the Registrar receives the
following:

     (A) if the transferee will take delivery in the form of a beneficial interest
in the 144A Global Note, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications in item (1) thereof;

     (B) if the transferee will take delivery in the form of a beneficial interest
in the Regulation S Global Note, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in item (2) thereof; and

     (C) if the transferee will take delivery in the form of a beneficial interest
in the IAI Global Note, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications, certificates and Opinion of
Counsel required by item (3) thereof, if applicable.

     (4) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for
Beneficial Interests in an Unrestricted Global Note. A beneficial interest in any
Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer
complies with the requirements of Section 2.06(b)(2) above and:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of the beneficial
interest to be transferred, in the case of an exchange, or the transferee, in the
case of a transfer, certifies in the applicable Letter of Transmittal that it is not
(i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange
Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company;

     (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

     (D) the Registrar receives the following:

     (i) if the holder of such beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a beneficial
interest in an Unrestricted Global Note, a certificate from such holder in
the form of Exhibit C hereto, including the certifications in item (1)(a)
thereof; or

     (ii) if the holder of such beneficial interest in a
Restricted Global Note proposes to transfer such beneficial interest to a
Person who shall take delivery thereof in the form of a beneficial interest
in an Unrestricted Global Note, a certificate from such holder in the form
of Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably

33

 

acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer contained
herein and in the Private Placement Legend are no longer required in order to
maintain compliance with the Securities Act.

     If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an
Unrestricted Global Note has not yet been issued, the Company shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or
more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal
amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above.

     Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to
Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global
Note.

     (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

     (1) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes. If
any holder of a beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a Restricted Definitive Note or to transfer such beneficial interest
to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then,
upon receipt by the Registrar of the following documentation:

     (A) if the holder of such beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for a Restricted Definitive Note, a
certificate from such holder in the form of Exhibit C hereto, including the
certifications in item (2)(a) thereof;

     (B) if such beneficial interest is being transferred to a QIB in accordance
with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (1) thereof;

     (C) if such beneficial interest is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904, a certificate to the
effect set forth in Exhibit B hereto, including the certifications in item (2)
thereof;

     (D) if such beneficial interest is being transferred pursuant to an exemption
from the registration requirements of the Securities Act in accordance with Rule
144, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(a) thereof;

     (E) if such beneficial interest is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements
of the Securities Act other than those listed in subparagraphs (B) through (D)
above, a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof, if
applicable;

     (F) if such beneficial interest is being transferred to the Company or any of
its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof; or

34

 

     (G) if such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company shall execute and the Trustee shall
authenticate and deliver to the Person designated in the instructions a Definitive Note in the
appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest in
a Restricted Global Note pursuant to this Section 2.06(c) shall be registered in such name or names
and in such authorized denomination or denominations as the holder of such beneficial interest
shall instruct the Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Notes to the Persons in whose
names such Notes are so registered. Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.06(c)(1) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained therein.

     (2) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes.
A holder of a beneficial interest in a Restricted Global Note may exchange such beneficial
interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a
Person who takes delivery thereof in the form of an Unrestricted Definitive Note only if:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the holder of such beneficial
interest, in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (i) a
Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes
or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company;

     (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

     (D) the Registrar receives the following:

     (i) if the holder of such beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for an
Unrestricted Definitive Note, a certificate from such holder in the form of
Exhibit C hereto, including the certifications in item (1)(b) thereof; or

     (ii) if the holder of such beneficial interest in a
Restricted Global Note proposes to transfer such beneficial interest to a
Person who shall take delivery thereof in the form of an Unrestricted
Definitive Note, a certificate from such holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the

35

 

Private Placement Legend are no longer required in order to maintain compliance with
the Securities Act.

     (3) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes.
If any holder of a beneficial interest in an Unrestricted Global Note proposes to exchange
such beneficial interest for a Definitive Note or to transfer such beneficial interest to a
Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction
of the conditions set forth in Section 2.06(b)(2) hereof, the Trustee will cause the
aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant
to Section 2.06(h) hereof, and the Company will execute and the Trustee will authenticate
and deliver to the Person designated in the instructions a Definitive Note in the
appropriate principal amount. Any Definitive Note issued in exchange for a beneficial
interest pursuant to this Section 2.06(c)(3) will be registered in such name or names and in
such authorized denomination or denominations as the holder of such beneficial interest
requests through instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the
Persons in whose names such Notes are so registered. Any Definitive Note issued in exchange
for a beneficial interest pursuant to this Section 2.06(c)(3) will not bear the Private
Placement Legend.

     (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

     (1) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes. If
any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial
interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a
Person who takes delivery thereof in the form of a beneficial interest in a Restricted
Global Note, then, upon receipt by the Registrar of the following documentation:

     (A) if the Holder of such Restricted Definitive Note proposes to exchange such
Note for a beneficial interest in a Restricted Global Note, a certificate from such
Holder in the form of Exhibit C hereto, including the certifications in item (2)(b)
thereof;

     (B) if such Restricted Definitive Note is being transferred to a QIB in
accordance with Rule 144A, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (1) thereof;

     (C) if such Restricted Definitive Note is being transferred to a Non-U.S.
Person in an offshore transaction in accordance with Rule 903 or Rule 904, a
certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (2) thereof;

     (D) if such Restricted Definitive Note is being transferred pursuant to an
exemption from the registration requirements of the Securities Act in accordance
with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (3)(a) thereof;

     (E) if such Restricted Definitive Note is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements
of the Securities Act other than those listed in subparagraphs (B) through (D)
above, a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof, if
applicable;

36

 

     (F) if such Restricted Definitive Note is being transferred to the Company or
any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof; or

     (G) if such Restricted Definitive Note is being transferred pursuant to an
effective registration statement under the Securities Act, a certificate to the
effect set forth in Exhibit B hereto, including the certifications in item (3)(c)
thereof,

the Trustee will cancel the Restricted Definitive Note, increase or cause to be
increased the aggregate principal amount of, in the case of clause (A) above, the
appropriate Restricted Global Note, in the case of clause (B) above, the 144A Global
Note, in the case of clause (C) above, the Regulation S Global Note, and in all
other cases, the IAI Global Note.

     (2) Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.
A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in
an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note
only if:

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person
participating in the distribution of the Exchange Notes or (iii) a Person who is an
affiliate (as defined in Rule 144) of the Company;

     (B) such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement;

     (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer
Registration Statement in accordance with the Registration Rights Agreement; or

     (D) the Registrar receives the following:

     (i) if the Holder of such Definitive Notes proposes to
exchange such Notes for a beneficial interest in the Unrestricted Global
Note, a certificate from such Holder in the form of Exhibit C hereto,
including the certifications in item (1)(c) thereof; or

     (ii) if the Holder of such Definitive Notes proposes to
transfer such Notes to a Person who shall take delivery thereof in the form
of a beneficial interest in the Unrestricted Global Note, a certificate from
such Holder in the form of Exhibit B hereto, including the certifications in
item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer
is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

37

 

     Upon satisfaction of the conditions of any of the subparagraphs in this Section
2.06(d)(2), the Trustee will cancel the Definitive Notes and increase or cause to be
increased the aggregate principal amount of the Unrestricted Global Note.

     (3) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.
A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial
interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note
at any time. Upon receipt of a request for such an exchange or transfer, the Trustee will
cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the
aggregate principal amount of one of the Unrestricted Global Notes.

     If any such exchange or transfer from a Definitive Note to a beneficial interest is
effected pursuant to subparagraphs (2)(B), (2)(D) or (3) above at a time when an
Unrestricted Global Note has not yet been issued, the Company will issue and, upon receipt
of an Authentication Order in accordance with Section 2.02 hereof, the Trustee will
authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to
the principal amount of Definitive Notes so transferred.

     (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by
a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section
2.06(e), the Registrar will register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder must present or surrender to the
Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in
form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized
in writing. In addition, the requesting Holder must provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this
Section 2.06(e).

     (1) Restricted Definitive Notes to Restricted Definitive Notes. Any Restricted
Definitive Note may be transferred to and registered in the name of Persons who take
delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the
following:

     (A) if the transfer will be made pursuant to Rule 144A, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (1) thereof;

     (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the
transferor must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (2) thereof; and

     (C) if the transfer will be made pursuant to any other exemption from the
registration requirements of the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if applicable.

     (2) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted
Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note
or transferred to a Person or Persons who take delivery thereof in the form of an
Unrestricted Definitive Note if:

38

 

     (A) such exchange or transfer is effected pursuant to the Exchange Offer in
accordance with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person
participating in the distribution of the Exchange Notes or (iii) a Person who is an
affiliate (as defined in Rule 144) of the Company;

     (B) any such transfer is effected pursuant to the Shelf Registration Statement
in accordance with the Registration Rights Agreement;

     (C) any such transfer is effected by a Broker-Dealer pursuant to the Exchange
Offer Registration Statement in accordance with the Registration Rights Agreement;
or

     (D) the Registrar receives the following:

     (i) if the Holder of such Restricted Definitive Notes
proposes to exchange such Notes for an Unrestricted Definitive Note, a
certificate from such Holder in the form of Exhibit C hereto, including the
certifications in item (1)(d) thereof; or

     (ii) if the Holder of such Restricted Definitive Notes
proposes to transfer such Notes to a Person who shall take delivery thereof
in the form of an Unrestricted Definitive Note, a certificate from such
Holder in the form of Exhibit B hereto, including the certifications in item
(4) thereof;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests, an Opinion of Counsel in form reasonably acceptable to the Registrar to
the effect that such exchange or transfer is in compliance with the Securities Act
and that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities
Act.

     (3) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of
Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof
in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such
a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the
instructions from the Holder thereof.

     (f) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with
the Registration Rights Agreement, the Company will issue and, upon receipt of an Authentication
Order in accordance with Section 2.02 hereof, the Trustee will authenticate and deliver:

     (1) one or more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Restricted Global Notes accepted for
exchange in the Exchange Offer by Persons that certify in the applicable Letters of
Transmittal that (A) they are not Broker-Dealers, (B) they are not participating in a
distribution of the Exchange Notes and (C) they are not affiliates (as defined in Rule 144)
of the Company; and

     (2) Unrestricted Definitive Notes in an aggregate principal amount equal to the
principal amount of the Restricted Definitive Notes accepted for exchange in the Exchange
Offer by Persons that certify in the applicable Letters of Transmittal that (A) they are not
Broker-Dealers,

39

 

(B) they are not participating in a distribution of the Exchange Notes and (C) they are
not affiliates (as defined in Rule 144) of the Company.

     Concurrently with the issuance of such Notes, the Trustee will cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and the Company will
execute and the Trustee will authenticate and deliver to the Persons designated by the Holders of
Definitive Notes so accepted Unrestricted Definitive Notes in the appropriate principal amount.

     (g) Legends. The following legends will appear on the face of all Global Notes and
Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable
provisions of this Indenture.

     (1) Private Placement Legend.

     (A) Except as permitted by subparagraph (B) below, each Global Note and each
Definitive Note (and all Notes issued in exchange therefor or substitution thereof)
shall bear the legend in substantially the following form:

“THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT. THE HOLDER OF THE SECURITY
EVIDENCED HEREBY AGREES FOR THE BENEFIT OF ZIFF DAVIS MEDIA INC. THAT (A) SUCH SECURITY MAY BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO A PERSON WHO THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (b) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
“ACCREDITED INVESTOR” (AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE SECURITIES ACT) THAT,
PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS
AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN
RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL
ACCEPTABLE TO ZIFF DAVIS MEDIA INC. THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT OR (e) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF ZIFF DAVIS MEDIA INC. SO
REQUESTS), (2) TO ZIFF DAVIS MEDIA INC. OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND,
IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE”

40

 

     (B) Notwithstanding the foregoing, any Global Note or Definitive Note issued
pursuant to subparagraphs (b)(4), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2), (e)(3) or
(f) of this Section 2.06 (and all Notes issued in exchange therefor or substitution
thereof) will not bear the Private Placement Legend.

     (2) Global Note Legend. Each Global Note will bear a legend in substantially the
following form:

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR
ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO
ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

     (h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial
interests in a particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global
Note will be returned to or retained and canceled by the Trustee in accordance with Section 2.11
hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial
interest in another Global Note or for Definitive Notes, the principal amount of Notes represented
by such Global Note will be reduced accordingly and an endorsement will be made on such Global Note
by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and
if the beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note, such other Global Note will be
increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

     (i) General Provisions Relating to Transfers and Exchanges.

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     (1) To permit registrations of transfers and exchanges, the Company will execute and
the Trustee will authenticate Global Notes and Definitive Notes upon receipt of an
Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request.

     (2) No service charge will be made to a Holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to Sections 2.10,
3.06, 3.09, 4.10, 4.15 and 9.05 hereof).

     (3) The Registrar will not be required to register the transfer of or exchange of any
Note selected for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part.

     (4) All Global Notes and Definitive Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Notes will be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this Indenture, as the
Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

     (5) Neither the Registrar nor the Company will be required:

     (A) to issue, to register the transfer of or to exchange any Notes during a
period beginning at the opening of business 15 days before the day of any selection
of Notes for redemption under Section 3.02 hereof and ending at the close of
business on the day of selection;

     (B) to register the transfer of or to exchange any Note selected for redemption
in whole or in part, except the unredeemed portion of any Note being redeemed in
part; or

     (C) to register the transfer of or to exchange a Note between a record date and
the next succeeding interest payment date.

     (6) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and none of the Trustee,
any Agent or the Company shall be affected by notice to the contrary.

     (7) The Trustee will authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.02 hereof.

     (8) All certifications, certificates and Opinions of Counsel required to be submitted
to the Registrar pursuant to this Section 2.06 to effect a registration of transfer or
exchange may be submitted by facsimile.

Section 2.07 Replacement Notes.

     If any mutilated Note is surrendered to the Trustee or the Company and the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any Note, the Company
will issue and the Trustee, upon receipt of an Authentication Order, will authenticate a
replacement Note if the Trustee’s

42

 

requirements are met. If required by the Trustee or the Company, an indemnity bond must be
supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect
the Company, the Trustee, any Agent and any authenticating agent from any loss that any of them may
suffer if a Note is replaced. The Company may charge for its expenses in replacing a Note.

     Every replacement Note is an additional obligation of the Company and will be entitled to all
of the benefits of this Indenture equally and proportionately with all other Notes duly issued
hereunder.

Section 2.08 Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the Trustee except
for those canceled by it, those delivered to it for cancellation, those reductions in the interest
in a Global Note effected by the Trustee in accordance with the provisions hereof, and those
described in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof, a
Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the
Note; however, Notes held by the Company or a Subsidiary of the Company shall not be deemed to be
outstanding for purposes of Section 3.07(a) hereof.

     If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a protected purchaser.

     If the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to
be outstanding and interest on it ceases to accrue.

     If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date,
then on and after that date such Notes will be deemed to be no longer outstanding and will cease to
accrue interest.

Section 2.09 Treasury Notes.

     In determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Company or any Guarantor, or by
any Person directly or indirectly controlling or controlled by or under direct or indirect common
control with the Company or any Guarantor, will be considered as though not outstanding, except
that for the purposes of determining whether the Trustee will be protected in relying on any such
direction, waiver or consent, only Notes that the Trustee knows are so owned will be so
disregarded.

Section 2.10 Temporary Notes.

     Until certificates representing Notes are ready for delivery, the Company may prepare and
the Trustee, upon receipt of an Authentication Order, will authenticate temporary Notes. Temporary
Notes will be substantially in the form of certificated Notes but may have variations that the
Company considers appropriate for temporary Notes and as may be reasonably acceptable to the
Trustee. Without unreasonable delay, the Company will prepare and the Trustee will authenticate
definitive Notes in exchange for temporary Notes.

     Holders of temporary Notes will be entitled to all of the benefits of this Indenture.

Section 2.11 Cancellation.

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     The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar
and Paying Agent will forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else will cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and will destroy canceled
Notes (subject to the record retention requirement of the Exchange Act). Certification of the
destruction of all canceled Notes will be delivered to the Company. The Company may not issue new
Notes to replace Notes that it has paid or that have been delivered to the Trustee for
cancellation.

Section 2.12 Defaulted Interest.

     If the Company defaults in a payment of interest on the Notes, it will pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 4.01 hereof. The Company will notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note and the date of the
proposed payment. The Company will fix or cause to be fixed each such special record date and
payment date; provided that no such special record date may be less than 10 days prior to the
related payment date for such defaulted interest. At least 15 days before the special record date,
the Company (or, upon the written request of the Company, the Trustee in the name and at the
expense of the Company) will mail or cause to be mailed to Holders a notice that states the special
record date, the related payment date and the amount of such interest to be paid.

ARTICLE 3

REDEMPTION AND PREPAYMENT

Section 3.01 Notices to Trustee.

     If the Company elects to redeem Notes pursuant to the optional redemption provisions of
Section 3.07 hereof, it must furnish to the Trustee, at least 30 days but not more than 60 days
before a redemption date, an Officers’ Certificate setting forth:

     (1) the clause of this Indenture pursuant to which the redemption shall occur;

     (2) the redemption date;

     (3) the principal amount of Notes to be redeemed; and

     (4) the redemption price.

Section 3.02 Selection of Notes to Be Redeemed or Purchased.

     If less than all of the Notes are to be redeemed or purchased in an offer to purchase at
any time, the Trustee will select Notes for redemption as follows::

     (1) if the Notes are listed on any national securities exchange, in compliance with the
requirements of the principal national securities exchange on which the Notes are listed; or

     (2) if the Notes are not listed on any national securities exchange, on a pro rata
basis.

     In the event of partial redemption or purchase by lot, the particular Notes to be redeemed or
purchased will be selected, unless otherwise provided herein, not less than 30 nor more than 60
days prior

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to the redemption or purchase date by the Trustee from the outstanding Notes not previously
called for redemption or purchase.

     The Trustee will promptly notify the Company in writing of the Notes selected for redemption
or purchase and, in the case of any Note selected for partial redemption or purchase, the principal
amount thereof to be redeemed or purchased. Notes and portions of Notes selected will be in
amounts of $1,000 or whole multiples of $1,000; except that if all of the Notes of a Holder are to
be redeemed or purchased, the entire outstanding amount of Notes held by such Holder, even if not a
multiple of $1,000, shall be redeemed or purchased. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or purchase also apply to
portions of Notes called for redemption or purchase.

Section 3.03 Notice of Redemption.

     Subject to the provisions of Section 3.09 hereof, at least 30 days but not more than 60
days before a redemption date, the Company will mail or cause to be mailed, by first class mail, a
notice of redemption to each Holder whose Notes are to be redeemed at its registered address,
except that redemption notices may be mailed more than 60 days prior to a redemption date if the
notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of
this Indenture pursuant to Articles 8 or 12 hereof.

     The notice will identify the Notes to be redeemed and will state:

     (1) the redemption date;

     (2) the redemption price;

     (3) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the redemption date upon surrender of such Note, a new
Note or Notes in principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Note;

     (4) the name and address of the Paying Agent;

     (5) that Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

     (6) that, unless the Company defaults in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the redemption date;

     (7) the paragraph of the Notes and/or Section of this Indenture pursuant to which the
Notes called for redemption are being redeemed; and

     (8) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

     At the Company’s request, the Trustee will give the notice of redemption in the Company’s name
and at its expense; provided, however, that the Company has delivered to the Trustee, at least 45
days prior to the redemption date, an Officers’ Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided in the preceding
paragraph.

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Section 3.04 Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called
for redemption become irrevocably due and payable on the redemption date at the redemption price;
provided that any defect in or failure to give notice prescribed by this paragraph shall not affect
the validity of the proceedings for the redemption of any note. A notice of redemption may not be
conditional.

Section 3.05 Deposit of Redemption or Purchase Price.

     One Business Day prior to the redemption or purchase date, the Company will deposit with
the Trustee or with the Paying Agent money sufficient to pay the redemption or purchase price of
and accrued interest and Liquidated Damages, if any, on all Notes to be redeemed or purchased on
that date. The Trustee or the Paying Agent will promptly return to the Company any money deposited
with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the
redemption or purchase price of, and accrued interest and Liquidated Damages, if any, on, all Notes
to be redeemed or purchased.

     If the Company complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest will cease to accrue on the Notes or the portions of Notes
called for redemption or purchase. If a Note is redeemed or purchased on or after an interest
record date but on or prior to the related interest payment date, then any accrued and unpaid
interest shall be paid to the Person in whose name such Note was registered at the close of
business on such record date. If any Note called for redemption or purchase is not so paid upon
surrender for redemption or purchase because of the failure of the Company to comply with the
preceding paragraph, interest shall be paid on the unpaid principal, from the redemption or
purchase date until such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Notes and in Section 4.01 hereof.

Section 3.06 Notes Redeemed or Purchased in Part.

     Upon surrender of a Note that is redeemed or purchased in part, the Company will issue
and, upon receipt of an Authentication Order, the Trustee will authenticate for the Holder at the
expense of the Company a new Note equal in principal amount to the unredeemed or unpurchased
portion of the Note surrendered.

Section 3.07 Optional Redemption.

     (a) At any time prior to May 1, 2006, the Company may on any one or more occasions redeem
up to 35% of the aggregate principal amount of Notes issued under this Indenture at a redemption
price equal to 100% of the principal amount thereof plus the Applicable Eurodollar Rate then in
effect, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date,
with the net cash proceeds of one or more Equity Offerings; provided that:

     (1) at least 65% of the aggregate principal amount of Notes originally issued under
this Indenture (excluding Notes held by the Company and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption; and

     (2) the redemption occurs within 90 days of the date of the closing of such Equity
Offering.

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     (b) Except pursuant to the preceding paragraph, the Notes will not be redeemable at
the Company’s option prior to May 1, 2007.

     (c) On or after May 1, 2007, the Company may redeem all or a part of the Notes upon
not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages
of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if
any, on the Notes redeemed to the applicable redemption date, if redeemed during the twelve-month
period beginning on May 1 of the years indicated below, subject to the rights of Holders on the
relevant record date to receive interest on the relevant interest payment date:

	 	 	 	 	 
	Year	 	Percentage	 
	2007
	 	 	103.000	%
	2008
	 	 	102.000	%
	2009
	 	 	101.000	%
	2010 and thereafter
	 	 	100.000	%

     Unless the Company defaults in the payment of the redemption price, interest will cease to
accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

     (d) Any redemption pursuant to this Section 3.07 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 hereof.

Section 3.08 Mandatory Redemption.

     The Company is not required to make mandatory redemption or sinking fund payments with
respect to the Notes.

Section 3.09 Offer to Purchase by Application of Excess Proceeds.

     In the event that, pursuant to Section 4.10 hereof, the Company is required to commence
an offer to all Holders to purchase Notes (an “Asset Sale Offer”), it will follow the procedures
specified below.

     The Asset Sale Offer shall be made to all Holders and all holders of other Indebtedness that
is pari passu with the Notes containing provisions similar to those set forth in this Indenture
with respect to offers to purchase or redeem with the proceeds of sales of assets. The Asset Sale
Offer will remain open for a period of at least 20 Business Days following its commencement and not
more than 30 Business Days, except to the extent that a longer period is required by applicable law
(the “Offer Period”). No later than three Business Days after the termination of the Offer Period
(the “Purchase Date”), the Company will apply all Excess Proceeds (the “Offer Amount”) to the
purchase of Notes and such other pari passu Indebtedness (on a pro rata basis, if applicable) or,
if less than the Offer Amount has been tendered, all Notes and other Indebtedness tendered in
response to the Asset Sale Offer. Payment for any Notes so purchased will be made in the same
manner as interest payments are made.

     If the Purchase Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Liquidated Damages, if any, will be paid
to the Person in whose name a Note is registered at the close of business on such record date, and
no additional interest will be payable to Holders who tender Notes pursuant to the Asset Sale
Offer.

     Upon the commencement of an Asset Sale Offer, the Company will send, by first class mail, a
notice to the Trustee and each of the Holders, with a copy to the Trustee. The notice will contain
all

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instructions and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer. The notice, which will govern the terms of the Asset Sale Offer, will state:

     (1) that the Asset Sale Offer is being made pursuant to this Section 3.09 and Section
4.10 hereof and the length of time the Asset Sale Offer will remain open;

     (2) the Offer Amount, the purchase price and the Purchase Date;

     (3) that any Note not tendered or accepted for payment will continue to accrue
interest;

     (4) that, unless the Company defaults in making such payment, any Note accepted for
payment pursuant to the Asset Sale Offer will cease to accrue interest after the Purchase
Date;

     (5) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may
elect to have Notes purchased in integral multiples of $1,000 only;

     (6) that Holders electing to have Notes purchased pursuant to any Asset Sale Offer will
be required to surrender the Note, with the form entitled “Option of Holder to Elect
Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the
Company, a Depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice at least three days before the Purchase Date;

     (7) that Holders will be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than the expiration
of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Note purchased;

     (8) that, if the aggregate principal amount of Notes and other pari passu Indebtedness
surrendered by holders thereof exceeds the Offer Amount, the Company will select the Notes
and other pari passu Indebtedness to be purchased on a pro rata basis based on the principal
amount of Notes and such other pari passu Indebtedness surrendered (with such adjustments as
may be deemed appropriate by the Company so that only Notes in denominations of $1,000, or
integral multiples thereof, will be purchased); and

     (9) that Holders whose Notes were purchased only in part will be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered (or transferred by
book-entry transfer).

     On or before the Purchase Date, the Company will, to the extent lawful, accept for payment, on
a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof tendered
pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all Notes
tendered, and will deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating that such Notes or portions thereof were accepted
for payment by the Company in accordance with the terms of this Section 3.09. The Company, the
Depositary or the Paying Agent, as the case may be, will promptly (but in any case not later than
five days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the
purchase price of the Notes tendered by such Holder and accepted by the Company for purchase, and
the Company will promptly issue a new Note, and the Trustee, upon written request from the Company,
will authenticate and mail or deliver (or cause to be transferred by book entry) such new Note to
such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any
Note not so accepted shall be promptly mailed or

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delivered by the Company to the Holder thereof. The Company will publicly announce the
results of the Asset Sale Offer on the Purchase Date.

     Other than as specifically provided in this Section 3.09, any purchase pursuant to this
Section 3.09 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

ARTICLE 4

COVENANTS

Section 4.01 Payment of Notes.

     The Company will pay or cause to be paid the principal of, premium, if any, and interest
and Liquidated Damages, if any, on, the Notes on the dates and in the manner provided in the Notes.
Principal, premium, if any, and interest and Liquidated Damages, if any will be considered paid on
the date due if the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of
10:00 a.m. Eastern Time on the due date money deposited by the Company in immediately available
funds and designated for and sufficient to pay all principal, premium, if any, and interest then
due. The Company will pay all Liquidated Damages, if any, in the same manner on the dates and in
the amounts set forth in the Registration Rights Agreement.

     The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Liquidated Damages (without regard to any applicable grace period) at the same rate to
the extent lawful.

Section 4.02 Maintenance of Office or Agency.

     The Company will maintain in the Borough of Manhattan, the City of New York, an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or
co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The Company will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. If at any time the Company fails to maintain any such
required office or agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission will in any
manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, the City of New York for such purposes. The Company will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

     The Company hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.03 hereof.

Section 4.03 Reports.

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     (a) Whether or not required by the rules and regulations of the SEC, so long as any Notes
are outstanding, the Company will furnish to the Holders of Notes or cause the Trustee to furnish
to the Holders of Notes, within the time periods specified in the SEC’s rules and regulations:

     (1) all quarterly and annual reports that would be required to be filed with the SEC on
Forms 10-Q and 10-K if the Company were required to file reports; and

     (2) all current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports.

     All such reports will be prepared in all material respects in accordance with all of the rules
and regulations applicable to such reports. Each annual report on Form 10-K will include a report
on the Company’s consolidated financial statements by the Company’s certified independent
accountants. In addition, the Company will file a copy of each of the reports referred to in
clauses (1) and (2) above with the SEC for public availability within the time periods specified in
the rules and regulations applicable to such reports (unless the SEC will not accept such a filing)
and will post the reports on its website within those time periods.

     If, at any time, the Company is no longer subject to the periodic reporting requirements of
the Exchange Act for any reason, the Company will nevertheless continue filing the reports
specified in the preceding paragraphs of this Section 4.03 with the SEC within the time periods
specified above unless the SEC will not accept such a filing. The Company will not take any action
for the purpose of causing the SEC not to accept any such filings. If, notwithstanding the
foregoing, the SEC will not accept the Company’s filings for any reason, the Company will post the
reports referred to in the preceding paragraph on its website within the time periods that would
apply if the Company were required to file those reports with the SEC.

     (b) For so long as any Notes remain outstanding, if at any time they are not
required to file with the SEC the reports required by paragraph (a) of this Section 4.03, the
Company and the Guarantors will furnish to the Holders and to securities analysts and prospective
investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.

Section 4.04 Compliance Certificate.

     (a) The Company and each Guarantor (to the extent that such Guarantor is so required
under the TIA) shall deliver to the Trustee, within 90 days after the end of each fiscal year, an
Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries
during the preceding fiscal year has been made under the supervision of the signing Officers with a
view to determining whether the Company has kept, observed, performed and fulfilled its obligations
under this Indenture and the Security Documents, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Company has kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and Security Documents
and is not in default in the performance or observance of any of the terms, provisions and
conditions of this Indenture or Security Documents (or, if a Default or Event of Default has
occurred, describing all such Defaults or Events of Default of which he or she may have knowledge
and what action the Company is taking or proposes to take with respect thereto) and that to the
best of his or her knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Notes is prohibited or if such
event has occurred, a description of the event and what action the Company is taking or proposes to
take with respect thereto.

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     (b) So long as not contrary to the then current recommendations of the American
Institute of Certified Public Accountants, the year-end financial statements delivered pursuant to
Section 4.03 above shall be accompanied by a written statement of the Company’s independent public
accountants (who shall be a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to their attention that
would lead them to believe that the Company has violated any provisions of Article 4 or Article 5
hereof or, if any such violation has occurred, specifying the nature and period of existence
thereof, it being understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.

     (c) So long as any of the Notes are outstanding, the Company will deliver to the
Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an Officers’
Certificate specifying such Default or Event of Default and what action the Company is taking or
proposes to take with respect thereto.

Section 4.05 Taxes.

     The Company will pay, and will cause each of its Subsidiaries to pay, prior to
delinquency, all material taxes, assessments, and governmental levies except such as are contested
in good faith and by appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of the Notes.

Section 4.06 Stay, Extension and Usury Laws.

     The Company and each of the Guarantors covenants (to the extent that it may lawfully do
so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Company and each of the Guarantors (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but
shall suffer and permit the execution of every such power as though no such law has been enacted.

Section 4.07 Restricted Payments.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly:

     (1) declare or pay any dividend or make any other payment or distribution on account of
the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation involving the Company
or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Company’s
or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other
than dividends or distributions payable in Equity Interests (other than Disqualified Stock)
of the Company and other than dividends or distributions payable to the Company or a
Restricted Subsidiary of the Company);

     (2) purchase, redeem or otherwise acquire or retire for value (including without
limitation, in connection with any merger or consolidation involving the Company) any Equity
Interests of the Company or any direct or indirect parent of the Company;

51

 

     (3) make any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness of the Company or any Guarantor that is
contractually subordinated to the Notes or to any Note Guarantee (excluding any intercompnay
Indebtedness between or among the Company and any of its Restricted Subsidiaries), except a
payment of interest or principal at the Stated Maturity thereof; or

     (4) make any Restricted Investment (all such payments and other actions set forth in
these clauses (1) through (4) above being collectively referred to as “Restricted
Payments”),

     unless, at the time of and after giving effect to such Restricted Payment:

     (1) no Default or Event of Default has occurred and is continuing or would occur as a
consequence of such Restricted Payment;

     (2) the Company would, at the time of such Restricted Payment and after giving pro
forma effect thereto as if such Restricted Payment had been made at the beginning of the
applicable four-quarter period, have been permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Leverage Ratio test set forth in Section 4.09(a) hereof; and

     (3) such Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Company and its Restricted Subsidiaries since the date of this
Indenture (excluding Restricted Payments permitted by clauses (2), (3), (4), (6), (7), (8),
(9), (10) and (11) of paragraph (b) of this Section 4.07), is less than the sum, without
duplication of:

     (A) (i) the aggregate Consolidated Cash Flow of the Company for the period
(taken as one accounting period) from the beginning of the fiscal quarter commencing
on January 1, 2005 to the end of the Company’s most recently ended fiscal quarter
for which financial statements are publicly available at the time of such Restricted
Payment (or, in the event aggregate Consolidated Cash Flow for such period is a
deficit, then minus such deficit) less (ii) 1.4 times the aggregate Total Interest
Expense of the Company for such period; plus

     (B) 100% of the aggregate net proceeds (including the Fair Market Value of
assets other than cash) received by the Company since the date of this Indenture as
a contribution to its common equity capital or from the issue or sale of Equity
Interests of the Company (other than Disqualified Stock) or from the issue or sale
of convertible or exchangeable Disqualified Stock or convertible or exchangeable
debt securities of the Company that have been converted into or exchanged for such
Equity Interests (other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of the Company); plus

     (C) to the extent that any Restricted Investment that was made after the date
of this Indenture is sold or otherwise liquidated or repaid, the cash return of
capital with respect to such Restricted Investment (less the cost of disposition, if
any); plus

     (D) to the extent that any Unrestricted Subsidiary designated as such after the
date of this Indenture is redesignated as a Restricted Subsidiary after the date of
this Indenture, the Fair Market Value of the Company’s Investment in such Subsidiary
as of the date of such redesignation; plus

52

 

     (E) 100% of any dividends received by the Company or a Restricted Subsidiary
after the date of this Indenture from an Unrestricted Subsidiary, to the extent that
such dividends were not otherwise included in the Consolidated Net Income of the
Company for such period.

     (b) The provisions of Section 4.07(a) hereof will not prohibit:

     (1) the payment of any dividend or the consummation of any irrevocable redemption
within 90 days after the date of declaration of the dividend or giving of the redemption
notice, as the case may be, if at the date of declaration or notice, the dividend or
redemption payment would have complied with the provisions of this Indenture;

     (2) the making of any Restricted Payment in exchange for, or out of the net cash
proceeds of the substantially concurrent sale (other than to a Subsidiary of the Company)
of, Equity Interests of the Company (other than Disqualified Stock) or from the
substantially concurrent contribution of common equity capital to the Company; provided that
the amount of any such net cash proceeds that are utilized for any such Restricted Payment
will be excluded from clause (3)(B) of Section 4.07(a) hereof;

     (3) the repurchase, redemption, defeasance or other acquisition or retirement for value
of Indebtedness of the Company or any Guarantor that is contractually subordinated to the
Notes or to any Note Guarantee with the net cash proceeds from a substantially concurrent
incurrence of Permitted Refinancing Indebtedness;

     (4) the payment of any dividend (or, in the case of any partnership or limited
liability company, any similar distribution) by a Restricted Subsidiary of the Company to
the holders of its Equity Interests on a pro rata basis;

     (5) the repurchase, redemption or other acquisition or retirement for value (or any
dividend or distribution made to fund such repurchase, redemption or other acquisition or
retirement for value) of any Equity Interests of the Company or any Restricted Subsidiary of
the Company or Parent held by any current or former officer, director, employee or
consultant (or any estate, spouse or former spouse of the foregoing) of the Company, any of
its Restricted Subsidiaries or Parent pursuant to any equity subscription agreement, stock
option agreement, shareholders’ agreement or similar agreement; provided that the aggregate
price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not
exceed $2.0 million in any twelve-month period; provided that:

     (A) the Company may carry forward and make in a subsequent calendar year, in
addition to the amounts permitted for such calendar year, the amount of such
repurchases, redemptions or other acquisitions or retirements for value permitted to
have been made but not made in any calendar year; and

     (B) such amount in any calendar year may be increased by the cash proceeds of
key man life insurance policies received by the Company and its Restricted
Subsidiaries after the date of this Indenture less any amount previously applied to
the payment of Restricted Payments pursuant to this clause (5);

     (6) the repurchase of Equity Interests deemed to occur upon the exercise of stock
options or warrants to the extent such Equity Interests represent a portion of the exercise
price of those stock options or warrants;

53

 

     (7) the declaration and payment of regularly scheduled or accrued dividends to holders
of any class or series of Disqualified Stock of the Company or any Restricted Subsidiary of
the Company issued on or after the date of this Indenture in accordance with the Leverage
Ratio test described in Section 4.09 hereof;

     (8) so long as no Default has occurred and is continuing or would be caused thereby,
the repurchase, redemption or other acquisition or retirement for value of the Subordinated
Notes outstanding on the date of this Indenture; provided that the First Lien Leverage Ratio
for the Company’s most recently ended four full fiscal quarters for which financial
statements are publicly available immediately preceding the date of such repurchase,
redemption or other acquisition or retirement, would have been no greater than 4.5 to 1.0,
determined on a pro forma basis (including a pro forma application of the net proceeds
therefrom), as if such repurchase, redemption or other acquisition or retirement had
occurred at the beginning of such four-quarter period;

     (9) payments not to exceed $250,000 in the aggregate solely to enable either of the
Company or Parent, as the case may be, to make payments to holders of its Capital Stock in
lieu of the issuance of fractional shares of its Capital Stock

     (10) the purchase of Equity Interests in a Subsidiary of the Company that were not
previously owned by the Company or a Subsidiary of the Company so long as after giving
effect to such purchase such Subsidiary is a Restricted Subsidiary of the Company;

     (11) upon the occurrence of a Change of Control and within 60 days after the completion
of the offer to repurchase the Notes pursuant to this Indenture (including the repurchase of
Notes tendered), any purchase or redemption of subordinated Indebtedness required pursuant
to the terms thereof as a result of such Change of Control at a purchase price not to exceed
the outstanding principal amount thereof, plus any accrued and unpaid interest and premium,
plus Liquidated Damages, if any; provided, however, that:;

     (A) at the time of such repurchase or redemption no Event of Default shall have
occurred an be continuing (or would result therefrom);

     (B) the Company would be able to incur an additional $1.00 of Indebtedness
pursuant to Leverage Ratio test set forth in Section 4.09 hereof after giving pro
forma effect to such Restricted Payment, and

     (C) such repurchase or redemption shall be included in the calculation of the
amount of Restricted Payments pursuant to the second clause (3) of Section 4.07(a)
hereof;

     (12) Permitted Payments to Parent; and

     (13) so long as no Default has occurred and is continuing or would be caused thereby,
other Restricted Payments in an aggregate amount not to exceed $10.0 million since the date
of this Indenture.

     (c) The amount of all Restricted Payments (other than cash) will be the Fair Market
Value on the date of the Restricted Payment of the asset(s) or securities proposed to be
transferred or issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to
the Restricted Payment. The Fair Market Value of any assets or securities that are required to be
valued by this Section 4.07 will be

54

 

determined by the Board of Directors of the Company whose resolution with respect thereto will
be delivered to the Trustee. The Board of Directors’ determination must be based upon an opinion or
appraisal issued by an accounting, appraisal or investment banking firm of national standing if the
Fair Market Value exceeds $20.0 million.

Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create or permit to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to:

     (1) pay dividends or make any other distributions on its Capital Stock to the Company
or any of its Restricted Subsidiaries or with respect to any other interest or participation
in, or measured by, its profits, or pay any indebtedness owed to the Company or any of its
Restricted Subsidiaries;

     (2) make loans or advances to the Company or any of its Restricted Subsidiaries; or

     (3) sell, lease or transfer any of its properties or assets to the Company or any of
its Restricted Subsidiaries.

     (b) The restrictions in Section 4.08(a) hereof will not apply to encumbrances or
restrictions existing under or by reason of:

     (1) agreements governing Existing Indebtedness as in effect on the date of this
Indenture and any amendments, restatements, modifications, renewals, supplements,
refundings, replacements or refinancings of those agreements; provided that the amendments,
restatements, modifications, renewals, supplements, refundings, replacements or refinancings
are not materially more restrictive, taken as a whole, with respect to such dividend and
other payment restrictions than those contained in those agreements on the date of this
Indenture;

     (2) this Indenture, the Notes and the Note Guarantees, and the Security Documents;

     (3) applicable law, rule, regulation or order;

     (4) any agreement or instrument binding a Person acquired by the Company or any of its
Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent
such agreement or instrument was entered into in connection with or in contemplation of such
acquisition), which encumbrance or restriction is not applicable to any Person, or the
properties or assets of any Person, other than the Person, or the property or assets of the
Person, so acquired; provided that, in the case of Indebtedness, such Indebtedness was
permitted by the terms of this Indenture to be incurred;

     (5) customary non-assignment provisions in contracts and licenses entered into in the
ordinary course of business;

     (6) purchase money obligations for property acquired in the ordinary course of business
and Capital Lease Obligations that impose restrictions on the property purchased or leased
of the nature described in clause (3) of Section 4.08(a) hereof;

55

 

     (7) any agreement for the sale or other disposition of assets or Capital Stock,
including customary restrictions on a Restricted Subsidiary that restricts distributions by
that Restricted Subsidiary pending its sale or other disposition;

     (8) Permitted Refinancing Indebtedness; provided that the restrictions contained in the
agreements governing such Permitted Refinancing Indebtedness are not materially more
restrictive, taken as a whole, than those contained in the agreements governing the
Indebtedness being refinanced;

     (9) Liens permitted to be incurred under the provisions of Section 4.12 hereof that
limit the right of the debtor to dispose of the assets subject to such Liens;

     (10) provisions limiting the disposition or distribution of assets or property in joint
venture agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements
and other similar agreements entered into with the approval of the Company’s Board of
Directors, which limitation is applicable only to the assets that are the subject of such
agreements;

     (11) restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business;

     (12) any encumbrances or restrictions of the type referred to in clauses (1), (2) and
(3) of Section 4.08(a) hereof imposed by any amendment, modification, restatement, renewal,
increase, supplement, refunding, replacement or refinancing of the contracts, instruments or
obligations referred to clauses (1) through (3) above; provided that such amendment,
modification, restatement, renewal, increase, supplement, refunding, replacement or
refinancing is (in the good faith judgment of the Board of Directors) no more restrictive,
taken as a whole, with respect to such dividend and other payment restrictions than those
contained in such contracts, instruments or obligations prior to such amendment,
modification, restatement, renewal, increase, supplement, refunding, replacement or
refinancing;

     (13) restrictions contained in agreements governing Indebtedness incurred by Foreign
Subsidiaries permitted to be incurred under Section 4.09 hereof; and

     (14) any agreement relating to a sale and leaseback transaction or Capital Lease
Obligation, but only on the property subject to such transaction or Capital Lease Obligation
and only to the extent that such restrictions or encumbrances are customary with respect to
a sale and leaseback transaction or Capital Lease Obligation.

Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any
Indebtedness (including Acquired Debt), and the Company shall not issue any Disqualified Stock and
shall not permit any of its Restricted Subsidiaries to issue any shares of preferred stock;
provided, however, that the Company may incur Indebtedness (including Acquired Debt) or issue
Disqualified Stock, and the Guarantors may incur Indebtedness (including Acquired Debt) or issue
preferred stock, if the Leverage Ratio for the Company’s most recently ended four full fiscal
quarters for which financial statements are publicly available immediately preceding the date on
which such additional Indebtedness is incurred or such Disqualified Stock or such preferred stock
is issued, as the case may be, would have been no greater than 7.0 to 1, determined on a pro forma
basis (including a pro forma application of the net proceeds therefrom), as if

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the additional Indebtedness had been incurred or the Disqualified Stock or the preferred stock
had been issued, as the case may be, at the beginning of such four-quarter period.

     (b) The provisions of Section 4.09(a) hereof will not prohibit the incurrence of any
of the following items of Indebtedness (collectively, “Permitted Debt”):

     (1) the incurrence by the Company and any Guarantor of Indebtedness and letters of
credit under Credit Facilities in an aggregate principal amount at any one time outstanding
under this clause (1)(with letters of credit being deemed to have a principal amount equal
to the maximum face amount thereunder whether or not drawn and revolving credit facilities
measured at entry of such facility, not at the date of drawdown) not to exceed the greater
of (x) $20.0 million or (y) 50% of Consolidated Cash Flow for the most recently ended four
full fiscal quarters for which financial statements are publicly available;

     (2) the incurrence by the Company and its Restricted Subsidiaries of the Existing
Indebtedness;

     (3) the incurrence by the Company and the Guarantors of Indebtedness represented by the
Notes and the related Note Guarantees to be issued on the date of this Indenture and the
Exchange Notes and the related Note Guarantees to be issued pursuant to the Registration
Rights Agreement;

     (4) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money obligations,
in each case, incurred for the purpose of financing all or any part of the purchase price or
cost of design, construction, installation or improvement or lease of property, plant or
equipment used in the business of the Company or any of its Restricted Subsidiaries, in an
aggregate principal amount, including all Permitted Refinancing Indebtedness incurred to
renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant
to this clause (4), not to exceed $15.0 million;

     (5) the incurrence by the Company or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to renew,
refund, refinance, replace, defease or discharge any Indebtedness (other than intercompany
Indebtedness) that was permitted by this Indenture to be incurred under Section 4.09(a)
hereof or clauses (2), (3), (4), (5), (8), (9), (13), (14) or (15) of this Section 4.09(b);

     (6) the incurrence by the Company or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among the Company and any of its Restricted Subsidiaries; provided,
however, that:

     (A) if the Company or any Guarantor is the obligor on such Indebtedness and the
payee is not the Company or a Guarantor, such Indebtedness must be expressly
subordinated to the prior payment in full in cash of all Obligations then due with
respect to the Notes, in the case of the Company, or the Note Guarantee, in the case
of a Guarantor; and

     (B) (1) any subsequent issuance or transfer of Equity Interests that results in
any such Indebtedness being held by a Person other than the Company or a Restricted
Subsidiary of the Company and (2) any sale or other transfer of any such
Indebtedness to a Person that is not either the Company or a Restricted Subsidiary
of the Company,

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will be deemed, in each case, to constitute an incurrence of such Indebtedness by the
Company or such Restricted Subsidiary, as the case may be, that was not permitted by this
clause (6);

     (7) the issuance by any of the Company’s Restricted Subsidiaries to the Company or to
any of its Restricted Subsidiaries of shares of preferred stock; provided, however, that:

     (A) any subsequent issuance or transfer of Equity Interests that results in any
such preferred stock being held by a Person other than the Company or a Restricted
Subsidiary of the Company; and

     (B) any sale or other transfer of any such preferred stock to a Person that is
not either the Company or a Restricted Subsidiary of the Company,

will be deemed, in each case, to constitute an issuance of such preferred stock by such
Restricted Subsidiary that was not permitted by this clause (7);

     (8) the incurrence by the Company or any of its Restricted Subsidiaries of Hedging
Obligations in the ordinary course of business;

     (9) the guarantee by the Company or any of the Guarantors of Indebtedness of the
Company or a Restricted Subsidiary of the Company that was permitted to be incurred by
another provision of this Section 4.09; provided that if the Indebtedness being guaranteed
is subordinated to or pari passu with the Notes, then the Guarantee shall be subordinated or
pari passu, as applicable, to the same extent as the Indebtedness guaranteed;

     (10) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness in respect of workers’ compensation claims, self-insurance obligations,
bankers’ acceptances, completion guarantees (including related letters of credit),
performance, surety, appeal and other similar bonds in the ordinary course of business;

     (11) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently drawn against insufficient funds, so long as such
Indebtedness is covered within five Business Days;

     (12) the incurrence by the Company or any Restricted Subsidiary of Indebtedness arising
from agreements of the Company or such Restricted Subsidiary providing for indemnification,
adjustment of purchase price or similar obligation, in each case, incurred or assumed in
connection with the acquisition or disposition of any business, assets or Capital Stock of a
Subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring all or
any portion of such business, assets or a Subsidiary for the purpose of financing such
acquisition;

     (13) the incurrence by the Company or any Restricted Subsidiary of Indebtedness
constituting reimbursement obligations with respect to letters of credit issued in the
ordinary course of business, including, without limitation, letters of credit to procure raw
materials;

     (14) the incurrence by Foreign Subsidiaries of the Company of Indebtedness in the
ordinary course of business for working capital purposes in an amount not to exceed $5.0
million at any time outstanding;

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     (15) the incurrence by the Company or any Restricted Subsidiary of Second Lien Debt for
the sole purpose of repurchasing, redeeming or otherwise acquiring or retiring for value the
Subordinated Notes outstanding on the date of this Indenture; provided that the First Lien
Leverage Ratio for the Company’s most recently ended four full fiscal quarters for which
financial statements are publicly available immediately preceding the date of such
incurrence, would have been no greater than 4.5 to 1.0, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if such incurrence had
occurred at the beginning of such four-quarter period; and

     (16) the incurrence by the Company or any of its Restricted Subsidiaries of additional
Indebtedness in an aggregate principal amount (or accreted value, as applicable) at any time
outstanding, including all Permitted Refinancing Indebtedness incurred to renew, refund,
refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause
(16), not to exceed $35.0 million.

     The Company shall not incur, and shall not permit any Guarantor to incur, any Indebtedness
(including Permitted Debt) that is contractually subordinated in right of payment to any other
Indebtedness of the Company or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Notes and the applicable Note Guarantee on substantially
identical terms; provided, however, that no Indebtedness will be deemed to be contractually
subordinated in right of payment to any other Indebtedness of the Company solely by virtue of being
unsecured or by virtue of being secured on a first or junior Lien basis.

     For purposes of determining compliance with this Section 4.09, in the event that an item of
proposed Indebtedness meets the criteria of more than one of the categories of Permitted Debt
described in clauses (1) through (16) above or is entitled to be incurred pursuant to Section
4.09(a) hereof, the Company will be permitted to classify such item of Indebtedness on the date of
its incurrence, or later reclassify all or a portion of such item of Indebtedness, in any manner
that complies with this Section 4.09. The accrual of interest, the accretion or amortization of
original issue discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, the reclassification of preferred stock as Indebtedness due to a
change in accounting principles, and the payment of dividends on Disqualified Stock in the form of
additional shares of the same class of Disqualified Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Stock for purposes of this Section 4.09.
Notwithstanding any other provision of this Section 4.09, the maximum amount of Indebtedness that
the Company or any Restricted Subsidiary may incur pursuant to this Section 4.09 shall not be
deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values.

          The amount of any Indebtedness outstanding as of any date will be:

          (1) the accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount;

          (2) the principal amount of the Indebtedness, in the case of any other Indebtedness; and

          (3) in respect of Indebtedness of another Person secured by a Lien on the assets of the
specified Person, the lesser of:

     (A) the Fair Market Value of such assets at the date of determination; and

     (B) the amount of the Indebtedness of the other Person.

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Section 4.10 Asset Sales.

     The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

     (1) the Company (or the Restricted Subsidiary, as the case may be) receives
consideration at least equal to the Fair Market Value of the assets or Equity Interests
issued or sold or otherwise disposed of; and

     (2) at least 75% of the consideration received in the Asset Sale by the Company or such
Restricted Subsidiary is in the form of cash or Cash Equivalents. For purposes of this
provision, each of the following shall be deemed to be cash:

     (A) any liabilities, as shown on the Company’s most recent consolidated balance
sheet, of the Company or any Restricted Subsidiary (other than contingent
liabilities and liabilities that are by their terms subordinated to the Notes or any
Note Guarantee) that are assumed by the transferee of any such assets who releases
the Company or such Restricted Subsidiary from further liability;

     (B) any securities, notes or other obligations received by the Company or any
such Restricted Subsidiary from such transferee that are, within 180 days of their
receipt, converted by the Company or such Restricted Subsidiary into cash or Cash
Equivalents, to the extent of the cash or Cash Equivalents received in that
conversion; and

     (C) any Designated Non-Cash Consideration received by the Company or any of its
Restricted Subsidiaries in any Asset Sale having a Fair Market Value, taken together
with all other Designated Non-Cash Consideration received pursuant to this clause
(c) that is at the time outstanding, not to exceed 3.5% of Consolidated Net Assets
at the time of receipt of such Designated Non-Cash Consideration.

     Within 365 days after the receipt of any Net Proceeds from an Asset Sale that constitutes a
Sale of Collateral or from a Casualty Event, the Company (or the Restricted Subsidiary that owned
those assets, as the case may be) shall apply those Net Proceeds to purchase other long-term assets
that would constitute Collateral or to repay First Lien Debt.

     Within 365 days after the receipt of any Net Proceeds from an Asset Sale (other than a Sale of
Collateral), the Company (or the applicable Restricted Subsidiary, as the case may be) may apply
such Net Proceeds:

     (1) to repay Indebtedness and other Obligations under a Credit Facility or to reduce
Indebtedness or other Obligations of a Restricted Subsidiary that is not a Guarantor, other
than Indebtedness owed to the Company or a Restricted Subsidiary;

     (2) to acquire all or substantially all of the assets of, or any Capital Stock of,
another Permitted Business, if, after giving effect to any such acquisition of Capital
Stock, the Permitted Business is or becomes a Restricted Subsidiary of the Company;

     (3) to make a capital expenditure; or

     (4) to acquire other assets that are not classified as current assets under GAAP and
that are used or useful in a Permitted Business.

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     Any Net Proceeds from Asset Sales that are not applied or invested as provided in the second
paragraph of this Section 4.10 will constitute “Excess Proceeds.” When the aggregate amount of
Excess Proceeds exceeds $20.0 million, within 30 days thereof, the Company shall make an Asset Sale
Offer to all Holders of Notes and all holders of other Indebtedness that is pari passu with the
Notes containing provisions similar to those set forth in this Indenture with respect to offers to
purchase or redeem with the proceeds of sales of assets to purchase the maximum principal amount of
Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds. The
offer price in any Asset Sale Offer will be equal to 100% of the principal amount plus accrued and
unpaid interest and Liquidated Damages, if any, to the date of purchase, and will be payable in
cash. If any Excess Proceeds remain after the consummation of an Asset Sale Offer, the Company may
use those Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the
aggregate principal amount of Notes and other pari passu Indebtedness tendered into such Asset Sale
Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes and such other pari
passu Indebtedness to be purchased on a pro rata basis. Upon completion of each Asset Sale Offer,
the amount of Excess Proceeds will be reset at zero.

     The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the
extent that the provisions of any securities laws or regulations conflict with the provisions of
Section 3.09 hereof or this Section 4.10, the Company shall comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations under Section 3.09
hereof or this Section 4.10 by virtue of such compliance.

Section 4.11 Transactions with Affiliates.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or
assets to, or purchase any property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of the Company (each, an “Affiliate Transaction”), unless:

     (1) the Affiliate Transaction is on terms that are no less favorable to the Company or
the relevant Restricted Subsidiary than those that would have been obtained in a comparable
transaction by the Company or such Restricted Subsidiary with an unrelated Person; and

     (2) the Company delivers to the Trustee:

     (A) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $5.0 million, a
resolution of the Board of Directors of the Company set forth in an Officers’
Certificate certifying that such Affiliate Transaction complies with clause (1) of
this Section 4.11(a) and that such Affiliate Transaction has been approved by a
majority of the disinterested members of the Board of Directors of the Company; and

     (B) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $20.0 million, an
opinion as to the fairness to the Company or such Subsidiary of such Affiliate
Transaction from a financial point of view issued by an accounting, appraisal or
investment banking firm of national standing.

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     (b) The following items will not be deemed to be Affiliate Transactions and,
therefore, will not be subject to the provisions of Section 4.11(a) hereof:

     (1) any employment or consulting agreement, employee benefit plan, officer or director
indemnification agreement or any similar arrangement entered into by the Company or any of
its Restricted Subsidiaries in the ordinary course of business and payments pursuant
thereto;

     (2) transactions between or among the Company and/or its Restricted Subsidiaries;

     (3) transactions with a Person (other than an Unrestricted Subsidiary of the Company)
that is an Affiliate of the Company solely because the Company owns, directly or through a
Restricted Subsidiary, an Equity Interest in, or controls, such Person;

     (4) payment of reasonable directors’ fees and expenses to Persons who are not otherwise
Affiliates of the Company;

     (5) any issuance of Equity Interests (other than Disqualified Stock) of the Company to
Affiliates of the Company;

     (6) Restricted Payments that do not violate Section 4.07 hereof;

     (7) payments, loans or advances to employees incurred in the ordinary course of
business or approved by the Board of Directors not to exceed $1.0 million in the aggregate
at any one time outstanding;

     (8) any contracts or arrangements between the Company and USApubs Inc. (or any of its
subsidiaries, successors or assigns) entered into in the ordinary course of business
consistent with past practice, except and to the extent that the aggregate net amount of all
such payments and consideration relating thereto exceeds $10.0 million;

     (9) Permitted Payments to Parent;

     (10) transactions permitted by the provisions of Section 5.01 hereof;

     (11) transactions with customers, clients, suppliers, purchasers or sellers of goods or
services, in each case in the ordinary course of business and otherwise in compliance with
the terms of this Indenture that are fair to the Company and any Restricted Subsidiary, as
applicable, or on terms at least as favorable as might reasonably have been obtained at such
time from an unaffiliated party;

     (12) payments by the Company or any Restricted Subsidiary, directly or indirectly, to
WSP made for any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation, in connection
with acquisitions or divestitures, which payments are approved by the Board of Directors in
an amount not to exceed $5.0 million;

     (13) performance of obligations of the Company or any Restricted Subsidiary under the
terms of any agreement to which the Company or such Restricted Subsidiary is a party or
bound as of the date of this Indenture and which is described in the Offering Memorandum
under the caption “Certain Relationships and Related Transactions” as such agreements may be
amended or modified from time to time; provided, however, the existence of, or the
performance by the

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Company or any Restricted Subsidiary of obligations under any future amendment to any
such agreement shall be permitted by this clause to the extent that the terms of any such
amendment are not disadvantageous to the holders of Notes in any material respect;

     (14) the grant of stock options, restricted stock or similar rights to employees,
officers, directors or consultants pursuant to plans approved by the Board of Directors; and

     (15) payment of earnouts, transaction bonuses, commissions, finder’s fees, special
payments or other compensation to current or former employees, officers, directors or
consultants of the Company or any Restricted Subsidiary in connection with any Permitted
Investment described in clause (3) thereof or any such payments to current or former
employees, officers, directors or consultants in the Person in which such Investment is
made.

Section 4.12 Liens.

     The Company shall not and shall not permit any of its Restricted Subsidiaries to, create,
incur, assume or otherwise cause or suffer to exist or become effective any Lien of any kind (other
than Permitted Liens) upon any of their property or assets, now owned or hereafter acquired.

Section 4.13 Business Activities.

     The Company shall not, and shall not permit any of its Restricted Subsidiaries to, engage
in any business other than Permitted Businesses, except to such extent as would not be material to
the Company and its Restricted Subsidiaries taken as a whole.

Section 4.14 Corporate Existence.

     Subject to Article 5 hereof, the Company shall do or cause to be done all things
necessary to preserve and keep in full force and effect:

     (1) its corporate existence, and the corporate, partnership or other existence of each
of its Subsidiaries, in accordance with the respective organizational documents (as the same
may be amended from time to time) of the Company or any such Subsidiary; and

     (2) the rights (charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided, however, that the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence of any of its
Subsidiaries, if the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its Subsidiaries, taken
as a whole, and that the loss thereof is not adverse in any material respect to the Holders
of the Notes.

Section 4.15 Offer to Repurchase Upon Change of Control.

     (a) Upon the occurrence of a Change of Control, the Company shall make an offer (a
“Change of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an
integral multiple of $1,000) of that Holder’s Notes at a purchase price in cash equal to 101% of
the aggregate principal amount of Notes repurchased plus accrued and unpaid interest and Liquidated
Damages, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders
on the relevant record date to receive interest due on the relevant interest payment date (the
“Change of Control Payment”). Within 30 days following any Change of Control, the Company shall
mail a notice to each Holder describing the transaction or transactions that constitute the Change
of Control and stating:

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     (1) that the Change of Control Offer is being made pursuant to this Section 4.15 and
that all Notes tendered will be accepted for payment;

     (2) the purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the “Change of Control
Payment Date”);

     (3) that any Note not tendered will continue to accrue interest;

     (4) that, unless the Company defaults in the payment of the Change of Control Payment,
all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue
interest after the Change of Control Payment Date;

     (5) that Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes, with the form entitled “Option of Holder to
Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the
Paying Agent at the address specified in the notice prior to the close of business on the
third Business Day preceding the Change of Control Payment Date;

     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the
Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of Notes delivered for purchase, and a
statement that such Holder is withdrawing his election to have the Notes purchased; and

     (7) that Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $1,000 in principal amount or an integral multiple
thereof.

     The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a Change in Control. To
the extent that the provisions of any securities laws or regulations conflict with the provisions
of Sections 3.09 or 4.15 hereof, the Company shall comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under Section 3.09 hereof or
this Section 4.15 by virtue of such compliance.

     (b) On the Change of Control Payment Date, the Company shall, to the extent lawful:

     (1) accept for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

     (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and

     (3) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Company.

     The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of
Control Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be

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transferred by book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided that each new Note will be in a
principal amount of $1,000 or an integral multiple of $1,000. The Company will publicly announce
the results of the Change of Control Offer on or as soon as practicable after the Change of Control
Payment Date.

     (c) Notwithstanding anything to the contrary in this Section 4.15, the Company will
not be required to make a Change of Control Offer upon a Change of Control if (1) a third party
makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.15 and Section 3.09 hereof and purchases all Notes
properly tendered and not withdrawn under the Change of Control Offer, or (2) notice of redemption
has been given pursuant to Section 3.07 hereof, unless and until there is a default in payment of
the applicable redemption price.

Section 4.16 No Amendment to Subordination Provisions.

     Without the consent of the Holders of at least a majority in aggregate principal amount
of the Notes then outstanding, the Company shall not amend, modify or alter the Subordinated Note
Indentures in any way to :

     (1) increase the rate of or change the time for payment of interest on any
Subordinated Notes;

     (2) increase the principal of, advance the final maturity date of or shorten the
Weighted Average Life to Maturity of any Subordinated Notes;

     (3) alter the redemption provisions or the price or terms at which the Company is
required to offer to purchase any Subordinated Notes in a manner that is materially
detrimental to the Holders of the Notes; or

     (4) amend the provisions of or definitions related to (i) Article 10 of the 2010
Subordinated Note Indenture and (ii) Article X of the 2009 Subordinated Note Indenture (each
of which relate to subordination) in a manner that is materially detrimental to the Holders
of the Notes.

Section 4.17 Payments for Consent.

     The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any
Holder of Notes for or as an inducement to any consent, waiver or amendment of any of the terms or
provisions of this Indenture or the Notes unless such consideration is offered to be paid and is
paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set forth
in the solicitation documents relating to such consent, waiver or agreement.

Section 4.18 Additional Note Guarantees.

     If the Company or any of its Restricted Subsidiaries acquires or creates another Domestic
Subsidiary after the date of this Indenture, then that newly acquired or created Domestic
Subsidiary will become a Guarantor and execute a supplemental indenture and deliver an Opinion of
Counsel satisfactory to the Trustee within 30 business days of the date on which it was acquired or
created; provided that any Domestic Subsidiary that constitutes an Immaterial Subsidiary need not
become a Guarantor until such time as it ceases to be an Immaterial Subsidiary; provided further
that any Domestic Subsidiary that has properly been designated as an Unrestricted Subsidiary in
accordance with this Indenture shall not be

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required to become a Guarantor so long as it continues to constitute an Unrestricted
Subsidiary. The form of such Note Guarantee is attached as Exhibit E hereto.

Section 4.19 Designation of Restricted and Unrestricted Subsidiaries.

     The Board of Directors of the Company may designate any Restricted Subsidiary to be an
Unrestricted Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary
is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding
Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary designated as
Unrestricted will be deemed to be an Investment made as of the time of the designation and will
reduce the amount available for Restricted Payments under Section 4.07 hereof or under one or more
clauses of the definition of Permitted Investments, as determined by the Company. That designation
will only be permitted if the Investment would be permitted at that time and if the Restricted
Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. The Board of Directors of
the Company may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if that
redesignation would not cause a Default.

     Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced
to the Trustee by filing with the Trustee a certified copy of a resolution of the Board of
Directors giving effect to such designation and an Officers’ Certificate certifying that such
designation complied with the preceding conditions and was permitted by Section 4.07 hereof. If,
at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an
Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of
this Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred by a
Restricted Subsidiary of the Company as of such date and, if such Indebtedness is not permitted to
be incurred as of such date under Section 4.09 hereof, the Company will be in default of such
covenant. The Board of Directors of the Company may at any time designate any Unrestricted
Subsidiary to be a Restricted Subsidiary of the Company; provided that such designation will be
deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company of any
outstanding Indebtedness of such Unrestricted Subsidiary, and such designation will only be
permitted if (1) such Indebtedness is permitted under Section 4.09 hereof calculated on a pro forma
basis as if such designation had occurred at the beginning of the four-quarter reference period;
and (2) no Default or Event of Default would be in existence following such designation.

Section 4.20 Further Assurances; Insurance.

     (a) The Company and the Pledgors shall do or cause to be done all acts and things that
may be required, or that the Collateral Trustee from time to time may reasonably request, to assure
and confirm that the Collateral Trustee holds, for the benefit of the holders of Secured
Obligations, duly created and enforceable and perfected Liens upon the Collateral (including any
property or assets that are acquired or otherwise become Collateral after the Notes are issued), in
each case, as contemplated by, and with the Lien priority required under, the Secured Debt
Documents;

     (b) Upon the reasonable request of the Collateral Trustee or any Secured Debt
Representative at any time and from time to time, the Company and the Pledgors shall promptly
execute, acknowledge and deliver such Security Documents, instruments, certificates, notices and
other documents, and take such other actions as shall be reasonably required, or that the
Collateral Trustee may reasonably request, to create, perfect, protect, assure or enforce the Liens
and benefits intended to be conferred, in each case as contemplated by the Secured Debt Documents
for the benefit of the holders of Secured Obligations;

     (c) The Company and the Pledgors shall:

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     (1) keep their properties adequately insured at all times by financially sound and
reputable insurers;

     (2) maintain such other insurance, to such extent and against such risks (and with such
deductibles, retentions and exclusions), as is customary with companies in the same or
similar businesses operating in the same or similar locations;

     (3) maintain such other insurance as may be required by law; and

     (4) maintain title insurance on all real property Collateral insuring the Collateral
Trustee’s Lien on that property, subject only to Permitted Prior Liens and other exceptions
to title approved by the Collateral Trustee; and

     (d) Upon the request of the Collateral Trustee, the Company and each Guarantor
(other than Holdings) shall furnish to the Collateral Trustee full information as to their property
and liability insurance carriers; holders of Secured Obligations, as a class, will be named as
additional insureds, with a suspension of subrogation rights, on all insurance policies of the
Company and the Pledgors and the Collateral Trustee will be named as loss payee, with 30 days’ (10
days’ for non-payment of premiums) notice of cancellation or material change, on all property and
casualty insurance policies of the Company and the Pledgors.

ARTICLE 5

SUCCESSORS

Section 5.01 Merger, Consolidation, or Sale of Assets.

     The Company shall not, directly or indirectly: (i) consolidate or merge with or into
another Person (whether or not the Company is the surviving corporation); or (2) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the properties or assets of
the Company and its Restricted Subsidiaries taken as a whole, in one or more related transactions,
to another Person, unless:

     (1) either:

     (A) the Company is the surviving corporation; or

     (B) the Person formed by or surviving any such consolidation or merger (if
other than the Company) or to which such sale, assignment, transfer, conveyance or
other disposition has been made is either (i) a corporation organized or existing
under the laws of the United States, any state of the United States or the District
of Columbia or (ii) is a partnership or limited liability company organized or
existing under the laws of the United States, any state thereof or the District of
Columbia that has at least one Restricted Subsidiary that is a corporation organized
or existing under the laws of the United States, any state thereof or the District
of Columbia which corporation becomes a co-issuer of the Notes pursuant to a
supplemental indenture duly and validly executed by the Trustee;

     (2) the Person formed by or surviving any such consolidation or merger (if other than
the Company) or the Person to which such sale, assignment, transfer, conveyance or other
disposition has been made assumes all the obligations of the Company under the Notes, this
Indenture, the Registration Rights Agreement and the Security Documents pursuant to
agreements reasonably satisfactory to the Trustee;

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     (3) immediately after such transaction, no Default or Event of Default exists; and

     (4) the Company or the Person formed by or surviving any such consolidation or merger
(if other than the Company), or to which such sale, assignment, transfer, conveyance or
other disposition has been made would, on the date of such transaction after giving pro
forma effect thereto and any related financing transactions as if the same had occurred at
the beginning of the applicable four-quarter period:

     (A) be permitted to incur at least $1.00 of additional Indebtedness pursuant to
the Leverage Ratio test set forth in Section 4.09(a) hereof; and

     (B) have a Leverage Ratio that is no greater than the Leverage Ratio of the
Company immediately prior to such transaction.

     In addition, the Company shall not, directly or indirectly, lease all or substantially all of
its properties or assets, in one or more related transactions, to any other Person. This Section
5.01 will not apply to:

     (1) a merger of the Company with an Affiliate solely for the purpose of reincorporating
the Company in another jurisdiction; or

     (2) any consolidation or merger, or any sale, assignment, transfer, conveyance, lease
or other disposition of assets between or among the Company and its Restricted Subsidiaries.

Section 5.02 Successor Corporation Substituted.

     Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the properties or assets of the Company in a
transaction that is subject to, and that complies with the provisions of, Section 5.01 hereof, the
successor Person formed by such consolidation or into or with which the Company is merged or to
which such sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed
to, and be substituted for (so that from and after the date of such consolidation, merger, sale,
assignment, transfer, lease, conveyance or other disposition, the provisions of this Indenture
referring to the “Company” shall refer instead to the successor Person and not to the Company), and
may exercise every right and power of the Company under this Indenture with the same effect as if
such successor Person had been named as the Company herein; provided, however, that the predecessor
Company shall not be relieved from the obligation to pay the principal of and interest on the Notes
except in the case of a sale of all of the Company’s assets in a transaction that is subject to,
and that complies with the provisions of, Section 5.01 hereof.

ARTICLE 6

DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

     Each of the following is an “Event of Default”:

     (1) default for 30 days in the payment when due of interest on, or Liquidated Damages,
if any, with respect to, the Notes;

     (2) default in the payment when due (at maturity, upon redemption or otherwise) of the
principal of, or premium, if any, on, the Notes;

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     (3) failure by the Company or any of its Restricted Subsidiaries for 60 days after
notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding voting as a single class to comply with any of the
other agreements in this Indenture or the Security Documents;

     (4) default under any mortgage, indenture or instrument under which there may be issued
or by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the
Company or any of its Restricted Subsidiaries), whether such Indebtedness or Guarantee now
exists, or is created after the date of this Indenture, if that default:

     (A) is caused by a failure to pay principal of, or interest or premium, if any,
on, such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”); or

     (B) results in the acceleration of such Indebtedness prior to its express
maturity,

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment
Default or the maturity of which has been so accelerated, aggregates $15.0 million
or more;

     (5) failure by the Company or any of its Restricted Subsidiaries to pay final judgments
aggregating in excess of $15.0 million, which judgments are not paid, discharged or stayed
for a period of 60 consecutive days after such judgments have become final and
non-appealable, and in the event such judgment is covered by insurance, an enforcement
proceeding has been commenced by any creditor upon such judgment or decree that is not
promptly stayed;

     (6) except as permitted by this Indenture, any Note Guarantee is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in full force and
effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies or
disaffirms its obligations under its Note Guarantee;

     (7) the occurrence of any of the following:

     (A) except as permitted by this Indenture, any Security Document ceases for any
reason to be fully enforceable; provided, that it will not be an Event of Default
under this clause (7)(a) if the sole result of the failure of one or more Security
Documents to be fully enforceable is that any First Priority Lien purported to be
granted under such Security Documents on Collateral, individually or in the
aggregate, having a Fair Market Value of not more than $10.0 million ceases to be an
enforceable and perfected (to the extent such Collateral may be perfected pursuant
to UCC filings, mortgage filings, and domestic intellectual property filings)
first-priority Lien, subject only to Permitted Prior Liens;

     (B) any First Priority Lien purported to be granted under any Security Document
on Collateral, individually or in the aggregate, having a Fair Market Value in
excess of $10.0 million ceases to be an enforceable and perfected (to the extent
such Collateral may be perfected pursuant to UCC filings, mortgage filings, and
domestic intellectual property filings) first-priority Lien, subject only to
Permitted Prior Liens; or

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     (C) the Company or any other Pledgor, or any Person acting on behalf of any of
them, denies or disaffirms, in writing, any obligation of the Company or any other
Pledgor set forth in or arising under any Security Document;

     (8) the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any group of Restricted Subsidiaries of the Company that, taken together, would
constitute a Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

     (A) commences a voluntary case,

     (B) consents to the entry of an order for relief against it in an involuntary
case,

     (C) consents to the appointment of a custodian of it or for all or
substantially all of its property,

     (D) makes a general assignment for the benefit of its creditors, or

     (E) generally is not paying its debts as they become due; and

     (9) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (A) is for relief against the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary in an
involuntary case;

     (B) appoints a custodian of the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary or for all
or substantially all of the property of the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a Significant
Subsidiary; or

     (C) orders the liquidation of the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days.

Section 6.02 Acceleration.

     In the case of an Event of Default specified in clause (8) or (9) of Section 6.01 hereof,
with respect to the Company, any Restricted Subsidiary of the Company that is a Significant
Subsidiary or any group of Restricted Subsidiaries of the Company that, taken together, would
constitute a Significant Subsidiary, all outstanding Notes will become due and payable immediately
without further action or notice. If any other Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes
may declare all the Notes to be due and payable immediately.

     Upon any such declaration, the Notes shall become due and payable immediately.

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     The Holders of a majority in aggregate principal amount of the then outstanding Notes by
written notice to the Trustee may, on behalf of all of the Holders, rescind an acceleration and its
consequences, if the rescission would not conflict with any judgment or decree and if all existing
Events of Default (except nonpayment of principal, interest or premium or Liquidated Damages, if
any, that has become due solely because of the acceleration) have been cured or waived.

Section 6.03 Other Remedies.

     If an Event of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal, premium and Liquidated Damages, if any, and interest on
the Notes or to enforce the performance of any provision of the Notes, Security Documents or this
Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a Note
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 6.04 Waiver of Past Defaults.

     Holders of not less than a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may on behalf of the Holders of all of the Notes waive an existing
Default or Event of Default and its consequences hereunder, except a continuing Default or Event of
Default in the payment of the principal of, premium and Liquidated Damages, if any, or interest on,
the Notes (including in connection with an offer to purchase); provided, however, that the Holders
of a majority in aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that resulted from such
acceleration. Upon any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

Section 6.05 Control by Majority.

     Holders of a majority in aggregate principal amount of the then outstanding Notes may
direct the time, method and place of conducting any proceeding for exercising any remedy available
to the Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse
to follow any direction that conflicts with law or this Indenture that the Trustee determines may
be unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in
personal liability or require the Trustee to incur unrecovered or non reimbursable costs.

Section 6.06 Limitation on Suits.

     Except in the case of an Event of Default specified in clause (1) or (2) of Section 6.01
hereof, a Holder may pursue a remedy with respect to this Indenture or the Notes only if:

     (1) such Holder gives to the Trustee written notice that an Event of Default is
continuing;

     (2) Holders of at least 25% in aggregate principal amount of the then outstanding Notes
make a written request to the Trustee to pursue the remedy;

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     (3) such Holder or Holders offer and, if requested, provide to the Trustee security or
indemnity reasonably satisfactory to the Trustee against any loss, liability or expense;

     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of security or indemnity; and

     (5) during such 60-day period, Holders of a majority in aggregate principal amount of
the then outstanding Notes do not give the Trustee a direction inconsistent with such
request.

     A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

Section 6.07 Rights of Holders of Notes to Receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Note
to receive payment of principal, premium and Liquidated Damages, if any, and interest on the Note,
on or after the respective due dates expressed in the Note (including in connection with an offer
to purchase), or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder; provided that a Holder
shall not have the right to institute any such suit for the enforcement of payment if and to the
extent that the institution or prosecution thereof or the entry of judgment therein would, under
applicable law, result in the surrender, impairment, waiver or loss of the Lien of this Indenture
upon any property subject to such Lien.

Section 6.08 Collection Suit by Trustee.

     If an Event of Default specified in Section 6.01(1) or (2) hereof occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Company for the whole amount of principal of, premium and Liquidated
Damages, if any, and interest remaining unpaid on, the Notes and interest on overdue principal and,
to the extent lawful, interest and such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

Section 6.09 Trustee May File Proofs of Claim.

     The Trustee is authorized to file such proofs of claim and other papers or documents as
may be necessary or advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), its creditors or its property and shall be entitled and
empowered to collect, receive and distribute any money or other property payable or deliverable on
any such claims and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 7.07 hereof. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien
on, and shall be paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of

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reorganization, arrangement, adjustment or composition affecting the Notes or the rights of
any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

Section 6.10 Priorities.

     If the Trustee collects any money pursuant to this Article 6, it shall pay out the money
in the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expenses and liabilities incurred, and all
advances made, by the Trustee and the costs and expenses of collection;

     Second: to Holders of Notes for amounts due and unpaid on the Notes for principal,
premium and Liquidated Damages, if any, and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for principal,
premium and Liquidated Damages, if any and interest, respectively; and

     Third: to the Company or to such party as a court of competent jurisdiction shall
direct.

     The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

Section 6.11 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an undertaking to pay the
costs of the suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits
and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not
apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a
suit by Holders of more than 10% in aggregate principal amount of the then outstanding Notes.

ARTICLE 7

TRUSTEE

Section 7.01 Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee will exercise such
of the rights and powers vested in it by this Indenture, and use the same degree of care and skill
in its exercise, as a prudent person would exercise or use under the circumstances in the conduct
of such person’s own affairs.

     (b) Except during the continuance of an Event of Default:

     (1) the duties of the Trustee will be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are specifically set
forth in this Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

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     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee will examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture.

     (c) The Trustee may not be relieved from liabilities for its own negligent action,
its own negligent failure to act, or its own willful misconduct, except that:

     (1) this paragraph does not limit the effect of paragraph (b) of this Section 7.01;

     (2) the Trustee will not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

     (3) the Trustee will not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to Section 6.05 hereof.

     (d) Whether or not therein expressly so provided, every provision of this Indenture
that in any way relates to the Trustee is subject to paragraphs (a), (b), and (c) of this Section
7.01.

     (e) No provision of this Indenture will require the Trustee to expend or risk its
own funds or incur any liability. The Trustee will be under no obligation to exercise any of its
rights and powers under this Indenture at the request of any Holders or otherwise, unless such
Holder or other persons has offered to the Trustee security and indemnity satisfactory to it
against any loss, liability or expense.

     (f) The Trustee will not be liable for interest on any money received by it except
as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not
be segregated from other funds except to the extent required by law.

Section 7.02 Rights of Trustee.

     (a) The Trustee may conclusively rely upon any document believed by it to be genuine and
to have been signed or presented by the proper Person. The Trustee need not investigate any fact
or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel or both. The Trustee will not be liable for any action it
takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of
Counsel. The Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel will be full and complete authorization and protection from liability in respect
of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

     (c) The Trustee may act through its attorneys and agents and will not be responsible
for the misconduct or negligence of any agent appointed with due care.

     (d) The Trustee will not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture.

     (e) Unless otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Company will be sufficient if signed by an Officer of the Company.

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     (f) The Trustee will be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders unless such
Holders have offered to the Trustee reasonable indemnity or security against the losses,
liabilities and expenses that might be incurred by it in compliance with such request or direction.

     (g) Except with respect to Section 4.01 hereof, the Trustee shall have no duty to
inquire as to the performance of the Company with respect to the covenants contained Article 4
hereof. In addition, the Trustee shall not be deemed to have knowledge of an Event of Default
except (i) any Default or Event of Default occurring pursuant Sections 4.01, 6.01(1) or 6.01(2)
hereof or (ii) any Default or Event of Default which the Trustee shall have received written
notification or received actual knowledge.

     (h) Delivery of reports, information and documents to the Trustee pursuant to
Section 4.03 hereof is for informational purposes only and the Trustee’s receipt of the foregoing
shall not constitute constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any covenants hereunder (as
to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

Section 7.03 Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Notes and may otherwise deal with the Company or any Affiliate of the Company with the same rights
it would have if it were not Trustee. However, in the event that the Trustee acquires any
conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee (if this Indenture has been qualified under the TIA) or resign.
Any Agent may do the same with like rights and duties. The Trustee is also subject to Sections
7.10 and 7.11 hereof.

Section 7.04 Trustee’s Disclaimer.

     The Trustee will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Company’s use of the
proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any
provision of this Indenture, it will not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it will not be responsible for any
statement or recital herein or any statement in the Notes or any other document in connection with
the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

Section 7.05 Notice of Defaults.

     If a Default or Event of Default occurs and is continuing and if it is known to the
Trustee, the Trustee will mail to Holders of Notes a notice of the Default or Event of Default
within 90 days after it occurs. Except in the case of a Default or Event of Default in payment of
principal of, premium or Liquidated Damages, if any, or interest on, any Note, the Trustee may
withhold the notice if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of the Holders of the Notes.

Section 7.06 Reports by Trustee to Holders of the Notes.

     (a) Within 60 days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee will mail to the Holders of the
Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no
event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date,
no report need be

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transmitted). The Trustee also will comply with TIA § 313(b)(2). The Trustee will also
transmit by mail all reports as required by TIA § 313(c).

     (b) A copy of each report at the time of its mailing to the Holders of Notes will be
mailed by the Trustee to the Company and filed by the Trustee with the SEC and each stock exchange
on which the Notes are listed in accordance with TIA § 313(d). The Company will promptly notify
the Trustee when the Notes are listed on any stock exchange.

Section 7.07 Compensation and Indemnity.

     (a) The Company will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder. The Trustee’s compensation will not be
limited by any law on compensation of a trustee of an express trust. The Company will reimburse
the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred
or made by it in addition to the compensation for its services. Such expenses will include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

     (b) The Company and the Guarantors will indemnify the Trustee against any and all
losses, liabilities or expenses incurred by it arising out of or in connection with the acceptance
or administration of its duties under this Indenture, including the costs and expenses of enforcing
this Indenture against the Company and the Guarantors (including this Section 7.07) and defending
itself against any claim (whether asserted by the Company, the Guarantors, any Holder or any other
Person) or liability in connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such loss, liability or expense may be attributable to its
negligence or bad faith. The Trustee will notify the Company promptly of any claim for which it
may seek indemnity. Failure by the Trustee to so notify the Company will not relieve the Company
or any of the Guarantors of their obligations hereunder. The Company or such Guarantor will defend
the claim and the Trustee will cooperate in the defense. The Trustee may have separate counsel and
the Company will pay the reasonable fees and expenses of such counsel. Neither the Company nor any
Guarantor need pay for any settlement made without its consent, which consent will not be
unreasonably withheld.

     (c) The obligations of the Company and the Guarantors under this Section 7.07 will
survive the satisfaction and discharge of this Indenture.

     (d) To secure the Company’s and the Guarantors’ payment obligations in this Section
7.07, the Trustee will have a Lien prior to the Notes on all money or property held or collected by
the Trustee, except that held in trust to pay principal and interest on particular Notes. Such
Lien will survive the satisfaction and discharge of this Indenture.

     (e) When the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.01(8) or (9) hereof occurs, the expenses and the compensation for the
services (including the fees and expenses of its agents and counsel) are intended to constitute
expenses of administration under any Bankruptcy Law.

     (f) The Trustee will comply with the provisions of TIA § 313(b)(2) to the extent
applicable.

Section 7.08 Replacement of Trustee.

     (a) A resignation or removal of the Trustee and appointment of a successor Trustee will
become effective only upon the successor Trustee’s acceptance of appointment as provided in this
Section 7.08.

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     (b) The Trustee may resign in writing at any time and be discharged from the trust
hereby created by so notifying the Company. The Holders of a majority in aggregate principal
amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and the
Company in writing. The Company may remove the Trustee if:

     (1) the Trustee fails to comply with Section 7.10 hereof;

     (2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

     (3) a custodian or public officer takes charge of the Trustee or its property; or

     (4) the Trustee becomes incapable of acting.

     (c) If the Trustee resigns or is removed or if a vacancy exists in the office of
Trustee for any reason, the Company will promptly appoint a successor Trustee. Within one year
after the successor Trustee takes office, the Holders of a majority in aggregate principal amount
of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.

     (d) If a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company, or the Holders of at least 10% in
aggregate principal amount of the then outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

     (e) If the Trustee, after written request by any Holder who has been a Holder for at
least six months, fails to comply with Section 7.10 hereof, such Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (f) A successor Trustee will deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee
will become effective, and the successor Trustee will have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee will mail a notice of its succession to
Holders. The retiring Trustee will promptly transfer all property held by it as Trustee to the
successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant
to this Section 7.08, the Company’s obligations under Section 7.07 hereof will continue for the
benefit of the retiring Trustee.

Section 7.09 Successor Trustee by Merger, etc.

     If the Trustee consolidates, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the successor corporation without any
further act will be the successor Trustee.

Section 7.10 Eligibility; Disqualification.

     There will at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition.

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     This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b).

Section 7.11 Preferential Collection of Claims Against Company.

     The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may at any time, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers’ Certificate, elect to have either Section 8.02 or 8.03 hereof
be applied to all outstanding Notes upon compliance with the conditions set forth below in this
Article 8.

Section 8.02 Legal Defeasance and Discharge.

     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this
Section 8.02, the Company and each of the Guarantors will, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be deemed to have been discharged from their
obligations with respect to all outstanding Notes (including the Note Guarantees) on the date the
conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose,
Legal Defeasance means that the Company and the Guarantors will be deemed to have paid and
discharged the entire Indebtedness represented by the outstanding Notes (including the Note
Guarantees), which will thereafter be deemed to be “outstanding” only for the purposes of Section
8.05 hereof and the other Sections of this Indenture referred to in clauses (1) and (2) below, and
to have satisfied all their other obligations under such Notes, the Note Guarantees and this
Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following provisions which will survive until
otherwise terminated or discharged hereunder:

     (1) the rights of Holders of outstanding Notes to receive payments in respect of the
principal of, or interest or premium and Liquidated Damages, if any, on, such Notes when
such payments are due from the trust referred to in Section 8.04 hereof;

     (2) the Company’s obligations with respect to such Notes under Article 2 and Section
4.02 hereof;

     (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s and the Guarantors’ obligations in connection therewith; and

     (4) this Article 8.

     Subject to compliance with this Article 8, the Company may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

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     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this
Section 8.03, the Company and each of the Guarantors will, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be released from each of their obligations under the
covenants contained in Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.18,
4.19 and 4.20 hereof and clause (4) of Section 5.01 hereof with respect to the outstanding Notes on
and after the date the conditions set forth in Section 8.04 hereof are satisfied (hereinafter,
“Covenant Defeasance”), and the Notes will thereafter be deemed not “outstanding” for the purposes
of any direction, waiver, consent or declaration or act of Holders (and the consequences of any
thereof) in connection with such covenants, but will continue to be deemed “outstanding” for all
other purposes hereunder (it being understood that such Notes will not be deemed outstanding for
accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes and Note Guarantees, the Company and the Guarantors may omit to comply with and
will have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply will not constitute a Default or an Event of Default
under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such
Notes and Note Guarantees will be unaffected thereby. In addition, upon the Company’s exercise
under Section 8.01 hereof of the option applicable to this Section 8.03, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(3) through 6.01(5)
and 6.01(7) hereof will not constitute Events of Default.

Section 8.04 Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance under either Section
8.02 or 8.03 hereof:

     (1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes, cash in U.S. dollars, non-callable Government Securities, or a
combination of cash in U.S. dollars and non-callable Government Securities, in amounts as
will be sufficient, in the opinion of a nationally recognized investment bank, appraisal
firm or firm of independent public accountants, to pay the principal of, or interest and
premium and Liquidated Damages, if any, on, the outstanding Notes on the stated date for
payment thereof or on the applicable redemption date, as the case may be, and the Company
must specify whether the Notes are being defeased to such stated date for payment or to a
particular redemption date;

     (2) in the case of an election under Section 8.02 hereof, the Company must deliver to
the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that:

     (A) the Company has received from, or there has been published by, the Internal
Revenue Service a ruling; or

     (B) since the date of this Indenture, there has been a change in the applicable
federal income tax law,

in either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of the outstanding Notes will not recognize income, gain
or loss for federal income tax purposes as a result of such Legal Defeasance and
will be subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such Legal Defeasance had not
occurred;

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     (3) in the case of an election under Section 8.03 hereof, the Company must deliver to
the Trustee an Opinion of Counsel confirming that the Holders of the outstanding Notes will
not recognize income, gain or loss for federal income tax purposes as a result of such
Covenant Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Covenant Defeasance
had not occurred;

     (4) no Default or Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit) and the deposit will not result in a breach or violation of,
or constitute a default under, any other instrument to which the Company or any Guarantor is
a party or by which the Company or any Guarantor is bound;

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) to which the Company or any of its Subsidiaries is a party or by which
the Company or any of its Subsidiaries is bound;

     (6) the Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders of Notes over
the other creditors of the Company with the intent of defeating, hindering, delaying or
defrauding any creditors of the Company or others; and

     (7) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the
Covenant Defeasance have been complied with.

Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions.

     Subject to Section 8.06 hereof, all money and non-callable Government Securities
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in
respect of the outstanding Notes will be held in trust and applied by the Trustee, in accordance
with the provisions of such Notes and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Notes of all sums due and to become due thereon in respect of principal,
premium and Liquidated Damages, if any, and interest, but such money need not be segregated from
other funds except to the extent required by law.

     The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable Government Securities deposited pursuant to Section
8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the outstanding Notes.

     Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to
the Company from time to time upon the request of the Company any money or non-callable Government
Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in
excess of the amount thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

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Section 8.06 Repayment to Company.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, premium or Liquidated Damages, if any, or interest on,
any Note and remaining unclaimed for two years after such principal, premium or Liquidated Damages,
if any, or interest has become due and payable shall be paid to the Company on its request or (if
then held by the Company) will be discharged from such trust; and the Holder of such Note will
thereafter be permitted to look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as
trustee thereof, will thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the Company cause to be
published once, in the New York Times and The Wall Street Journal (national edition), notice that
such money remains unclaimed and that, after a date specified therein, which will not be less than
30 days from the date of such notification or publication, any unclaimed balance of such money then
remaining will be repaid to the Company.

Section 8.07 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any U.S. dollars or non-callable
Government Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason
of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s and the Guarantors’ obligations under this
Indenture and the Notes and the Note Guarantees will be revived and reinstated as though no deposit
had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent
is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the case
may be; provided, however, that, if the Company makes any payment of principal of, premium or
Liquidated Damages, if any, or interest on, any Note following the reinstatement of its
obligations, the Company will be subrogated to the rights of the Holders of such Notes to receive
such payment from the money held by the Trustee or Paying Agent.

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

     Notwithstanding Section 9.02 of this Indenture, the Company, the Guarantors and the
Trustee may amend or supplement this Indenture or the Notes or the Note Guarantees without the
consent of any Holder of Note:

     (1) to cure any ambiguity, defect or inconsistency;

     (2) to provide for uncertificated Notes in addition to or in place of certificated
Notes;

     (3) to provide for the assumption of the Company’s or a Guarantor’s obligations to the
Holders of the Notes and Note Guarantees by a successor to the Company or such Guarantor
pursuant to Article 5 or Article 11 hereof;

     (4) to make any change that would provide any additional rights or benefits to the
Holders of the Notes or that does not adversely affect the legal rights hereunder of any
Holder;

     (5) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

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     (6) to conform the text of this Indenture, the Notes, the Note Guarantees, or the
Security Documents to any provision of the “Description of Notes” section of the Offering
Memorandum, to the extent that such provision in that “Description of Notes” was intended to
be a verbatim recitation of a provision of this Indenture the Notes, the Note Guarantees, or
the Security Documents;

     (7) to provide for the issuance of Additional Notes in accordance with the limitations
set forth in this Indenture as of the date hereof;

     (8) to make, complete or confirm any grant of Collateral permitted or required by
this Indenture or any of the Security Documents or any release of Collateral that becomes
effective as set forth in this Indenture or any of the Security Documents; or

     (9) to allow any Guarantor to execute a supplemental indenture and/or a Note
Guarantee with respect to the Notes.

     Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 7.02 hereof, the Trustee will join with the Company
and the Guarantors in the execution of any amended or supplemental indenture authorized or
permitted by the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee will not be obligated to enter into
such amended or supplemental indenture that affects its own rights, duties or immunities under this
Indenture or otherwise.

Section 9.02 With Consent of Holders of Notes.

     Except as provided below in this Section 9.02, the Company and the Trustee may amend or
supplement this Indenture (including, without limitation, Section 3.09, 4.10 and 4.15 hereof) and
the Notes and the Note Guarantees with the consent of the Holders of at least a majority in
aggregate principal amount of the then outstanding Notes (including, without limitation, Additional
Notes, if any) voting as a single class (including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the Notes), and, subject to
Sections 6.04 and 6.07 hereof, any existing Default or Event of Default (other than a Default or
Event of Default in the payment of the principal of, premium or Liquidated Damages, if any, or
interest on, the Notes, except a payment default resulting from an acceleration that has been
rescinded) or compliance with any provision of this Indenture or the Notes or the Note Guarantees
may be waived with the consent of the Holders of a majority in aggregate principal amount of the
then outstanding Notes (including, without limitation, Additional Notes, if any) voting as a single
class (including, without limitation, consents obtained in connection with a tender offer or
exchange offer for, or purchase of, the Notes). In addition, any amendment to, or waiver of, the
provisions of this Indenture or any Security Document that has the effect of releasing all or
substantially all of the Collateral from Liens, or the Liens, securing the Notes will require the
consent of Holders of at least 66?% in aggregate principal amount of the Notes then outstanding.
Section 2.08 hereof shall determine which Notes are considered to be “outstanding” for purposes of
this Section 9.02.

     Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the
Trustee will join with the Company and the Guarantors in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture directly affects the Trustee’s
own rights, duties or immunities under

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this Indenture or otherwise, in which case the Trustee may in its discretion, but will not be
obligated to, enter into such amended or supplemental Indenture.

     It is not be necessary for the consent of the Holders of Notes under this Section 9.02 to
approve the particular form of any proposed amendment, supplement or waiver, but it is sufficient
if such consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company will mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, will not, however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount of the Notes then outstanding voting as a single class may
waive compliance in a particular instance by the Company with any provision of this Indenture or
the Notes or the Note Guarantees. However, without the consent of each Holder affected, an
amendment, supplement or waiver under this Section 9.02 may not (with respect to any Notes held by
a non-consenting Holder):

     (1) reduce the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

     (2) reduce the principal of or change the fixed maturity of any Note or alter or waive
any of the provisions with respect to the redemption of the Notes (except as provided above
with respect to Sections 3.09, 4.10 and 4.15 hereof);

     (3) reduce the rate of or change the time for payment of interest, including default
interest, on any Note;

     (4) waive a Default or Event of Default in the payment of principal of, or premium or
Liquidated Damages, if any, or interest on, the Notes (except a rescission of acceleration
of the Notes by the Holders of at least a majority in aggregate principal amount of the then
outstanding Notes and a waiver of the payment default that resulted from such acceleration);

     (5) make any Note payable in money other than that stated in the Notes;

     (6) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of, or interest
or premium or Liquidated Damages, if any, on, the Notes;

     (7) waive a redemption payment with respect to any Note (other than a payment required
by Sections 3.09, 4.10 or 4.15 hereof);

     (8) release any Guarantor from any of its obligations under its Note Guarantee or this
Indenture, except in accordance with the terms of this Indenture; or

     (9) make any change in the preceding amendment and waiver provisions.

Section 9.03 Compliance with Trust Indenture Act.

     Every amendment or supplement to this Indenture or the Notes will be set forth in a
amended or supplemental indenture that complies with the TIA as then in effect.

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Section 9.04 Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

Section 9.05 Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment, supplement or waiver on
any Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee
shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

     Failure to make the appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

Section 9.06 Trustee to Sign Amendments, etc.

     The Trustee will sign any amended or supplemental indenture authorized pursuant to this
Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Company may not sign an amended or supplemental indenture until
the Board of Directors of the Company approves it. In executing any amended or supplemental
indenture, the Trustee will be entitled to receive and (subject to Section 7.01 hereof) will be
fully protected in relying upon, in addition to the documents required by Section 13.04 hereof, an
Officers’ Certificate and an Opinion of Counsel stating that the execution of such amended or
supplemental indenture is authorized or permitted by this Indenture.

ARTICLE 10

COLLATERAL AND SECURITY

Section 10.01 Equal and Ratable Sharing of Collateral by Holders of First Lien Debt; Sharing
Confirmation.

     Notwithstanding (1) anything to the contrary contained in the Security Documents, (2) the
time of incurrence of any Series of First Lien Debt, (3) the order or method of attachment or
perfection of any Liens securing any Series of First Lien Debt, (4) the time or order of filing or
recording of financing statements, mortgages or other documents filed or recorded to perfect any
Lien upon any Collateral, (5) the time of taking possession or control over any Collateral, (6)
that any First Priority Lien may not have been perfected or may be or have become subordinated, by
equitable subordination or otherwise, to any other Lien or (7) the rules for determining priority
under any law governing relative priorities of Liens:

     (A) all First Priority Liens at any time granted by the Company or any other
Pledgor shall secure, Equally and Ratably, all present and future First Lien
Obligations; and

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     (B) all proceeds of all First Priority Liens at any time granted by the Company
or any other Pledgor shall be allocated and distributed Equally and Ratably on
account of the First Lien Debt and other First Lien Obligations.

     This Section 10.01 is intended for the benefit of, and will be enforceable as a
third party beneficiary by, each present and future holder of First Lien Obligations, each present
and future First Lien Representative and the Collateral Trustee as holder of First Priority Liens.
The Company shall not incur any future Series of First Lien Debt unless the agreement governing
such Series of First Lien Debt provides that the First Lien Representative of such future Series
of First Lien Debt delivers a Lien Sharing and Priority Confirmation at the time of incurrence of
such Series of First Lien Debt.

Section 10.02 Ranking of Second Priority Liens.

     The Company shall not incur any future Series of Second Lien Debt unless the agreement
governing such Series of Second Lien Debt provides that:

     (A) notwithstanding (1) anything to the contrary contained in the Security
Documents, (2) the time of incurrence of any Series of Secured Debt, (3) the order
or method of attachment or perfection of any Liens securing any Series of Secured
Debt, (4) the time or order of filing or recording of financing statements,
mortgages or other documents filed or recorded to perfect any Lien upon any
Collateral, (5) the time of taking possession or control over any Collateral, (6)
that any First Priority Lien may not have been perfected or may be or have become
subordinated, by equitable subordination or otherwise, to any other Lien or (7) the
rules for determining priority under any law governing relative priorities of Liens,
all Second Priority Liens at any time granted by the Company or any other Pledgor
will be subject and subordinate to all First Priority Liens securing First Priority
Obligations;

     (B) the provisions required by sub clause (A) of this Section 10.02 (i) are
intended for the benefit of, and will be enforceable as a third party beneficiary
by, each present and future holder of First Lien Obligations, each present and
future First Lien Representative and the Collateral Trustee as holder of First
Priority Liens and (ii) that no other Person will be entitled to rely on, have the
benefit of or enforce the provisions required by sub clause (A) of this Section
10.02; and

     (C) the Second Lien Representative of each Series of Second Lien Debt shall be
required to deliver a Lien Sharing and Priority Confirmation to the Collateral
Trustee and each First Lien Representative at the time of incurrence of such Series
of Second Lien Debt.

Section 10.03 Security Agreements.

     The due and punctual payment of the principal of and interest and Liquidated Damages, if
any, on the Notes when and as the same shall be due and payable, whether on an interest payment
date, at maturity, by acceleration, repurchase, redemption or otherwise, and interest on the
overdue principal of and interest and Liquidated Damages (to the extent permitted by law), if any,
on the Notes and performance of all other obligations of the Company to the Holders of Notes or the
Trustee under this Indenture and the Notes, according to the terms hereunder or thereunder, are
secured as provided in the Security Agreements which the Company has entered into simultaneously
with the execution of this Indenture and which are attached as Exhibits H1, H2 and H3. Each Holder
of Notes, by its acceptance thereof, consents and agrees to the terms of the Security Agreements
(including, without limitation, the

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provisions providing for foreclosure and release of Collateral) as the same may be in effect
or may be amended from time to time in accordance with its terms and authorizes and directs the
Collateral Trustee to enter into the Security Agreements and to perform its obligations and
exercise its rights thereunder in accordance therewith. The Company will deliver to the Trustee
copies of all documents delivered to the Collateral Trustee pursuant to the Security Agreements,
and shall do or cause to be done all such acts and things as may be necessary or proper, or as may
be required by the provisions of the Security Agreements, to assure and confirm to the Trustee and
the Collateral Trustee the security interest in the Collateral contemplated hereby, by the Security
Agreements or any part thereof, as from time to time constituted, so as to render the same
available for the security and benefit of this Indenture and of the Notes secured hereby, according
to the intent and purposes herein expressed. The Company shall take, and shall cause its
Subsidiaries to take, upon request of the Trustee, any and all actions reasonably required to cause
the Security Agreements to create and maintain, as security for the Obligations of the Company
hereunder, a valid and enforceable perfected First Priority Lien in and on all the Collateral (to
the extent such Collateral may be perfected pursuant to UCC filings, mortgage filings and domestic
intellectual property filings), in favor of the Collateral Trustee for the benefit of the Holders
of Notes, superior to and prior to the rights of all third Persons (other than holders of other
First Lien Debt Obligations) and subject to no Liens other than Permitted Liens.

Section 10.04 Recording and Opinions.

     (a) The Company will furnish to the Trustee simultaneously with the execution and
delivery of this Indenture an Opinion of Counsel either:

     (1) stating that, in the opinion of such counsel, all action has been taken with
respect to the recording, registering and filing of this Indenture, financing statements or
other instruments necessary to make effective the Lien intended to be created by the
Security Agreements, and reciting with respect to the security interests in the Collateral,
the details of such action; or

     (2) stating that, in the opinion of such counsel, no such action is necessary to make
such Lien effective.

     (b) The Company will furnish to the Collateral Trustee and the Trustee on May 1 in
each year beginning with May 1, 2006, an Opinion of Counsel, dated as of such date, either:

     (1) (A) stating that, in the opinion of such counsel, action has been taken with
respect to the recording, registering, filing, re-recording, re-registering and re-filing of
all supplemental indentures, financing statements, continuation statements or other
instruments of further assurance as is necessary to maintain the Lien of the Security
Agreements and reciting with respect to the security interests in the Collateral the details
of such action or referring to prior Opinions of Counsel in which such details are given,
and (B) stating that, in the opinion of such counsel, based on relevant laws as in effect on
the date of such Opinion of Counsel, all financing statements and continuation statements
have been executed and filed that are necessary as of such date and during the succeeding 12
months fully to preserve and protect, to the extent such protection and preservation are
possible by filing, the rights of the Holders of Notes and the Collateral Trustee and the
Trustee hereunder and under the Security Agreements with respect to the security interests
in the Collateral;

     (2) stating that, in the opinion of such counsel, no such action is necessary to
maintain such Lien and assignment.

     (c) The Company will otherwise comply with the provisions of TIA §314(b).

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     (d) To the extent applicable, the Company will cause TIA §313(b), relating to
reports, and TIA §314(d), relating to the release of property or securities subject to the Lien of
the Security Agreements, to be complied with. Any certificate or opinion required by TIA §314(d)
may be made by an officer of the Company except in cases where TIA §314(d) requires that such
certificate or opinion be made by an independent Person, which Person will be an independent
engineer, appraiser or other expert selected by or reasonably satisfactory to the Trustee.
Notwithstanding anything to the contrary in this paragraph, the Company will not be required to
comply with all or any portion of TIA §314(d) if it determines, in good faith based on advice of
counsel, that under the terms of TIA §314(d) and/or any interpretation or guidance as to the
meaning thereof of the SEC and its staff, including “no action” letters or exemptive orders, all or
any portion of TIA §314(d) is inapplicable to one or a series of released Collateral.

Section 10.05 Release of Collateral.

     (a) Collateral will be released from the Lien and security interest created by the
Security Agreements at any time or from time to time in accordance with the provisions of the
Security Agreements.

     (b) At any time when a Default or Event of Default has occurred and is continuing
and the maturity of the Notes has been accelerated (whether by declaration or otherwise) and the
Trustee has delivered a notice of acceleration to the Collateral Trustee, no release of Collateral
pursuant to the provisions of the Security Agreements will be effective as against the Holders of
Notes.

     (c) The release of any Collateral from the terms of this Indenture and the Security
Agreements will not be deemed to impair the security under this Indenture in contravention of the
provisions hereof if and to the extent the Collateral is released pursuant to the terms of the
Security Agreements. To the extent applicable, the Company will cause TIA § 313(b), relating to
reports, and TIA § 314(d), relating to the release of property or securities from the Lien and
security interest of the Security Agreements and relating to the substitution therefor of any
property or securities to be subjected to the Lien and security interest of the Security
Agreements, to be complied with. Any certificate or opinion required by TIA § 314(d) may be made
by an Officer of the Company except in cases where TIA § 314(d) requires that such certificate or
opinion be made by an independent Person, which Person will be an independent engineer, appraiser
or other expert selected or approved by the Trustee and the Collateral Trustee in the exercise of
reasonable care.

Section 10.06 Certificates of the Company.

     The Company will furnish to the Trustee and the Collateral Trustee, prior to each
proposed release of Collateral pursuant to the Security Agreements:

     (1) all documents required by TIA §314(d); and

     (2) an Opinion of Counsel, which may be rendered by internal counsel to the Company, to
the effect that all of the conditions precedent under this Indenture and the TIA for the
release of such Collateral have been satisfied, including without limitation, documents
required by TIA §314(d).

     The Trustee may, to the extent permitted by Sections 7.01 and 7.02 hereof, accept as
conclusive evidence of compliance with the foregoing provisions the appropriate statements
contained in such documents and such Opinion of Counsel.

Section 10.07 Certificates of the Trustee.

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     In the event that the Company wishes to release Collateral in accordance with the
Security Agreements and has delivered the certificates and documents required by the Security
Agreements and Sections 10.05 and 10.06 hereof, the Trustee will determine whether it has received
all documentation required by TIA § 314(d) in connection with such release and, based on such
determination and the Opinion of Counsel delivered pursuant to Section 10.06(2) hereof, will
deliver a certificate to the Collateral Trustee setting forth such determination.

Section 10.08 Authorization of Actions to Be Taken by the Trustee Under the Security
Agreements.

     Subject to the provisions of Section 7.01 and 7.02 hereof, the Trustee may, in its sole
discretion and without the consent of the Holders of Notes, direct, on behalf of the Holders of
Notes, the Collateral Trustee in accordance with the Collateral Trust Agreement to take all actions
it deems necessary or appropriate in order to:

     (1) enforce any of the terms of the Security Agreements; and

     (2) collect and receive any and all amounts payable in respect of the Obligations of
the Company hereunder.

     The Trustee will have power to institute and maintain such suits and proceedings as it may
deem expedient to prevent any impairment of the Collateral by any acts that may be unlawful or in
violation of the Security Agreements or this Indenture, and such suits and proceedings as the
Trustee may deem expedient to preserve or protect its interests and the interests of the Holders of
Notes in the Collateral (including power to institute and maintain suits or proceedings to restrain
the enforcement of or compliance with any legislative or other governmental enactment, rule or
order that may be unconstitutional or otherwise invalid if the enforcement of, or compliance with,
such enactment, rule or order would impair the security interest hereunder or be prejudicial to the
interests of the Holders of Notes or of the Trustee).

Section 10.09 Authorization of Receipt of Funds by the Trustee Under the Security Agreements.

     The Trustee is authorized to receive any funds for the benefit of the Holders of Notes
distributed under the Security Agreements, and to make further distributions of such funds to the
Holders of Notes according to the provisions of this Indenture.

Section 10.10 Termination of Security Interest in Respect of the Notes.

     The Collateral Trustee’s Secured Liens upon the Collateral will no longer secure the
Notes outstanding under this Indenture or any other Obligations under this Indenture, and the right
of the Holders of the Notes and such Obligations to the benefits and proceeds of the Collateral
Trustee’s Secured Liens on the Collateral will automatically terminate and be discharged with no
further action on the part of any Person:

     (1) upon satisfaction and discharge of this Indenture pursuant to Article 12 hereof;

     (2) upon Legal Defeasance or Covenant Defeasance

     (3) upon payment in full and discharge of all Notes outstanding under this Indenture
and all Obligations that are outstanding, due and payable under this Indenture at the time
the Notes are paid in full and discharged; or

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     (4) in whole or in part, with the consent of at least 66?% of the Holders of the Notes.

     The Trustee will execute and deliver any document reasonably requested by the Company (at the
expense of Company) to evidence any release of the Collateral provided in this Indenture.

ARTICLE 11

NOTE GUARANTEES

Section 11.01 Guarantee.

     (a) Subject to this Article 11, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and
to the Trustee and its successors and assigns, irrespective of the validity and enforceability of
this Indenture, the Notes or the obligations of the Company hereunder or thereunder, that:

     (1) the principal of, premium and Liquidated Damages, if any, and interest on, the
Notes will be promptly paid in full when due, whether at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest on the Notes,
if any, if lawful, and all other obligations of the Company to the Holders or the Trustee
hereunder or thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and

     (2) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

     Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

     (b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenant that this Note Guarantee will not be discharged
except by complete performance of the obligations contained in the Notes and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to
the Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting
in relation to either the Company or the Guarantors, any amount paid by either to the Trustee or
such Holder, this Note Guarantee, to the extent theretofore discharged, will be reinstated in full
force and effect.

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation
in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of
all obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors,
on the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes
of this Note Guarantee, notwithstanding any

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stay, injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (2) in the event of any declaration of acceleration of such
obligations as provided in Article 6 hereof, such obligations (whether or not due and payable) will
forthwith become due and payable by the Guarantors for the purpose of this Note Guarantee. The
Guarantors will have the right to seek contribution from any non-paying Guarantor so long as the
exercise of such right does not impair the rights of the Holders under the Note Guarantee.

Section 11.02 Limitation on Guarantor Liability.

     Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is
the intention of all such parties that the Note Guarantee of such Guarantor not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders
and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be limited
to the maximum amount that will, after giving effect to such maximum amount and all other
contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after
giving effect to any collections from, rights to receive contribution from or payments made by or
on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this
Article 11, result in the obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.

Section 11.03 Execution and Delivery of Note Guarantee.

     To evidence its Note Guarantee set forth in Section 11.01 hereof, each Guarantor hereby
agrees that a notation of such Note Guarantee substantially in the form attached as Exhibit E
hereto will be endorsed by an Officer of such Guarantor on each Note authenticated and delivered by
the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its
Officers.

     Each Guarantor hereby agrees that its Note Guarantee set forth in Section 11.01 hereof will
remain in full force and effect notwithstanding any failure to endorse on each Note a notation of
such Note Guarantee.

     If an Officer whose signature is on this Indenture or on the Note Guarantee no longer holds
that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed,
the Note Guarantee will be valid nevertheless.

     The delivery of any Note by the Trustee, after the authentication thereof hereunder, will
constitute due delivery of the Note Guarantee set forth in this Indenture on behalf of the
Guarantors.

     In the event that the Company or any of its Restricted Subsidiaries creates or acquires any
Domestic Subsidiary after the date of this Indenture, if required by Section 4.18 hereof, the
Company will cause such Domestic Subsidiary to comply with the provisions of Section 4.18 hereof
and this Article 11, to the extent applicable.

Section 11.04 Guarantors May Consolidate, etc., on Certain Terms.

     Except as otherwise provided in Section 11.05 hereof, no Guarantor may sell or otherwise
dispose of all or substantially all of its assets to, or consolidate with or merge with or into
(whether or not such Guarantor is the surviving Person) another Person, other than the Company or
another Guarantor, unless:

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     (1) immediately after giving effect to such transaction, no Default or Event of Default
exists; and

     (2) either:

          (a) subject to Section 11.05 hereof, the Person acquiring the property in any such sale
or disposition or the Person formed by or surviving any such consolidation or merger
unconditionally assumes all the obligations of that Guarantor under this Indenture, its Note
Guarantee and the Registration Rights Agreement on the terms set forth herein or therein,
pursuant to a supplemental indenture and appropriate Security Documents in form and
substance reasonably satisfactory to the Trustee; or

          (b) the Net Proceeds of such sale or other disposition are applied in accordance with
the applicable provisions of this Indenture, including without limitation, Section 4.10
hereof.

     In case of any such consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the Note Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of this Indenture to be performed by the
Guarantor, such successor Person will succeed to and be substituted for the Guarantor with the same
effect as if it had been named herein as a Guarantor. Such successor Person thereupon may cause to
be signed any or all of the Note Guarantees to be endorsed upon all of the Notes issuable hereunder
which theretofore shall not have been signed by the Company and delivered to the Trustee. All the
Note Guarantees so issued will in all respects have the same legal rank and benefit under this
Indenture as the Note Guarantees theretofore and thereafter issued in accordance with the terms of
this Indenture as though all of such Note Guarantees had been issued at the date of the execution
hereof.

     Except as set forth in Articles 4 and 5 hereof, and notwithstanding clauses 2(a) and (b)
above, nothing contained in this Indenture or in any of the Notes will prevent any consolidation or
merger of a Guarantor with or into the Company or another Guarantor, or will prevent any sale or
conveyance of the property of a Guarantor as an entirety or substantially as an entirety to the
Company or another Guarantor.

Section 11.05 Releases.

     (a) In the event of any sale or other disposition of all or substantially all of the
assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or other
disposition of all of the Capital Stock of any Guarantor, in each case to a Person that is not
(either before or after giving effect to such transactions) the Company or a Restricted Subsidiary
of the Company, then such Guarantor (in the event of a sale or other disposition, by way of merger,
consolidation or otherwise, of all of the Capital Stock of such Guarantor) or the corporation
acquiring the property (in the event of a sale or other disposition of all or substantially all of
the assets of such Guarantor) will be released and relieved of any obligations under its Note
Guarantee; provided that the Net Proceeds of such sale or other disposition are applied in
accordance with the applicable provisions of this Indenture, including without limitation Section
4.10 hereof. Upon delivery by the Company to the Trustee of an Officers’ Certificate and an
Opinion of Counsel to the effect that such sale or other disposition was made by the Company in
accordance with the provisions of this Indenture, including without limitation Section 4.10 hereof,
the Trustee will execute any documents reasonably required in order to evidence the release of any
Guarantor from its obligations under its Note Guarantee.

91

 

     (b) Upon designation of any Guarantor as an Unrestricted Subsidiary in accordance with the
terms of this Indenture, such Guarantor will be released and relieved of any obligations under its
Note Guarantee.

     (c) Upon Legal Defeasance in accordance with Article 8 hereof or satisfaction and discharge of
this Indenture in accordance with Article 12 hereof, each Guarantor will be released and relieved
of any obligations under its Note Guarantee.

     (d) In the case of Holdings’ Note Guarantee, upon legal defeasance or satisfaction and
discharge of the Subordinated Note Indentures in compliance with the terms of such Subordinated
Note Indentures.

     Any Guarantor not released from its obligations under its Note Guarantee as provided in this
Section 11.05 will remain liable for the full amount of principal of and interest and premium and
Liquidated Damages, if any, on the Notes and for the other obligations of any Guarantor under this
Indenture as provided in this Article 11.

ARTICLE 12

SATISFACTION AND DISCHARGE

Section 12.01 Satisfaction and Discharge.

     This Indenture will be discharged and will cease to be of further effect as to all Notes
issued hereunder, when:

     (1) either:

          (a) all Notes that have been authenticated, except lost, stolen or destroyed Notes that
have been replaced or paid and Notes for whose payment money has theretofore been deposited
in trust and thereafter repaid to the Company, have been delivered to the Trustee for
cancellation; or

          (b) all Notes that have not been delivered to the Trustee for cancellation have become
due and payable by reason of the mailing of a notice of redemption or otherwise or will
become due and payable within one year and the Company or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust solely for the
benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient, without consideration of any
reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes not
delivered to the Trustee for cancellation for principal, premium and Liquidated Damages, if
any, and accrued interest to the date of maturity or redemption;

          (2) no Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit) and the deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which the Company or any Guarantor is a
party or by which the Company or any Guarantor is bound;

          (3) the Company or any Guarantor has paid or caused to be paid all sums payable by it
under this Indenture; and

92

 

          (4) the Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at maturity or on the
redemption date, as the case may be.

In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

     Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (b) of clause (1) of this Section 12.01, the provisions of
Sections 12.02 and 8.06 hereof will survive. In addition, nothing in this Section 12.01 will be
deemed to discharge those provisions of Section 7.07 hereof, that, by their terms, survive the
satisfaction and discharge of this Indenture.

Section 12.02 Application of Trust Money.

     Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee
pursuant to Section 12.01 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal (and premium and Liquidated Damages, if any) and
interest for whose payment such money has been deposited with the Trustee; but such money need not
be segregated from other funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 12.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 12.01 hereof;
provided that if the Company has made any payment of principal of, premium or Liquidated Damages,
if any, or interest on, any Notes because of the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Notes to receive such payment from the
money or Government Securities held by the Trustee or Paying Agent.

ARTICLE 13

MISCELLANEOUS

Section 13.01 Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the duties imposed
by TIA §318(c), the imposed duties will control.

Section 13.02 Notices.

     Any notice or communication by the Company, any Guarantor or the Trustee to the others is
duly given if in writing and delivered in Person or by first class mail (registered or certified,
return receipt requested), facsimile transmission or overnight air courier guaranteeing next day
delivery, to the others’ address:

93

 

If to the Company and/or any Guarantor:

Ziff Davis Media Inc.

28 East 28th Street

New York, New York 10016

Facsimile No.: (212) ___-___

Attention: General Counsel

With a copy to:

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, Illinois 60601

Facsimile No.: (312) 861-2200

Attention: Gerald Nowak, Esq.

If to the Trustee:

U.S. Bank National Association

60 Livingston Avenue

St. Paul, Minnesota 55107-2292

Facsimile No.: (651) 495-3918

Attention: Rick Prokosch

     The Company, any Guarantor or the Trustee, by notice to the others, may designate additional
or different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) will be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery.

     Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication will also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it will not affect its sufficiency with
respect to other Holders.

     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

     If the Company mails a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

Section 13.03 Communication by Holders of Notes with Other Holders of Notes.

     Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else
shall have the protection of TIA § 312(c).

Section 13.04 Certificate and Opinion as to Conditions Precedent.

94

 

     Upon any request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee:

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 13.05 hereof) stating that,
in the opinion of the signers, all conditions precedent and covenants, if any, provided for
in this Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 13.05 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been satisfied.

Section 13.05 Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) must
comply with the provisions of TIA § 314(e) and must include:

     (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been satisfied; and

     (4) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

Section 13.06 Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The
Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its
functions.

Section 13.07 No Personal Liability of Directors, Officers, Employees and Stockholders.

     No past, present or future director, officer, employee, incorporator or stockholder
(other than Holdings’ with respect to its Note Guarantee) of the Company or any Guarantor, as such,
will have any liability for any obligations of the Company or the Guarantors under the Note
Documents or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for issuance of the Notes. The waiver may not be
effective to waive liabilities under the federal securities laws.

Section 13.08 Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS
INDENTURE, THE NOTES AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT

95

 

THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

Section 13.09 No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or debt agreement
of the Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

Section 13.10 Successors.

     All agreements of the Company in this Indenture and the Notes will bind its successors.
All agreements of the Trustee in this Indenture will bind its successors. All agreements of each
Guarantor in this Indenture will bind its successors, except as otherwise provided in Section 11.05
hereof.

Section 13.11 Severability.

     In case any provision in this Indenture or in the Notes is invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions will not in
any way be affected or impaired thereby.

Section 13.12 Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy will be an
original, but all of them together represent the same agreement.

Section 13.13 Table of Contents, Headings, etc.

     The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to be considered a
part of this Indenture and will in no way modify or restrict any of the terms or provisions hereof.

[Signatures on following page]

96

 

SIGNATURES

Dated as of April 22, 2005

	 	 	 	 	 
	 	ZIFF DAVIS MEDIA INC.

 	 
	 	By:  	/s/ Bart Catalane
 	 
	 	 	Name:  	Bart W. Catalane 	 
	 	 	Title:  	President and Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	ZIFF DAVIS HOLDINGS INC.

 	 
	 	By:  	/s/ Bart Catalane
 	 
	 	 	Name:  	Bart W. Catalane 	 
	 	 	Title:  	President and Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	ZIFF DAVIS PUBLISHING HOLDINGS INC.

 	 
	 	By:  	/s/ Bart Catalane
 	 
	 	 	Name:  	Bart W. Catalane 	 
	 	 	Title:  	President and Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	ZIFF DAVIS PUBLISHING INC.

 	 
	 	By:  	/s/ Bart Catalane
 	 
	 	 	Name:  	Bart W. Catalane 	 
	 	 	Title:  	President and Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	ZIFF DAVIS DEVELOPMENT INC.

 	 
	 	By:  	/s/ Bart Catalane
 	 
	 	 	Name:  	Bart W. Catalane 	 
	 	 	Title:  	President and Chief Operating Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ZIFF DAVIS INTERNET INC.

 	 
	 	By:  	/s/ Bart Catalane
 	 
	 	 	Name:  	Bart W. Catalane 	 
	 	 	Title:  	President and Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Richard Prokosch
 	 
	 	 	Name:  	Richard Prokosch 	 
	 	 	Title:  	Trust Officer 	 
	 

 

 

EXHIBIT A

[Face of Note]

CUSIP/CINS                     

Senior Secured Floating Rate Notes due 2012

			
	No. ___
	 	$                    

ZIFF DAVIS MEDIA INC.

promises to pay to                      or registered assigns,

the principal sum of                                                                                  DOLLARS on
                    , 2012.

Interest Payment Dates:                      ,                     ,                      and                     

Record Dates:                      ,                     ,                      and                     

Dated: April 22, 2005

	 	 	 	 	 	 	 
	 	 	ZIFF DAVIS MEDIA INC.  
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 

This is one of the Notes referred to

in the within-mentioned Indenture:

U.S. BANK NATIONAL ASSOCIATION
 as
Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	Authorized Signatory	 	 

A-1

 

[Back of Note]

Senior Secured Floating Rate Notes due 2012

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

     Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     (1) Interest. Ziff Davis Media Inc., a Delaware corporation (the
“Company”), promises to pay interest on the principal amount of this Note at a rate equal to
the Applicable Eurodollar Rate (as defined in the Indenture) in effect from time to time
per annum from April 22, 2005 until maturity and shall pay the Liquidated Damages, if any,
payable pursuant to Section 5 of the Registration Rights Agreement referred to below. The
Company will pay interest and Liquidated Damages, if any, quarterly in arrears on February
1, May 1, August 1 and November 1 of each year, or if any such day is not a Business Day, on
the next succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes
will accrue from the most recent date to which interest has been paid or, if no interest has
been paid, from the date of issuance; provided that if there is no existing Default in the
payment of interest, and if this Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall accrue from
such next succeeding Interest Payment Date; provided further that the first Interest Payment
Date shall be August 1, 2005 and the initial Applicable Eurodollar Rate shall be 9.14475%.
The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a
rate that is 1% per annum in excess of the rate then in effect to the extent lawful; it will
pay interest (including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest and Liquidated Damages, if any, (without regard to any
applicable grace periods) from time to time on demand at the same rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     (2) Method of Payment. The Company will pay interest on the Notes
(except defaulted interest) and Liquidated Damages, if any, to the Persons who are
registered Holders of Notes at the close of business on the January 15, April 15, July 15
and October 15 next preceding the Interest Payment Date, even if such Notes are canceled
after such record date and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest. The Notes will be payable
as to principal, premium and Liquidated Damages, if any, and interest at the office or
agency of the Company maintained for such purpose within or without the City and State of
New York, or, at the option of the Company, payment of interest and Liquidated Damages, if
any, may be made by check mailed to the Holders at their addresses set forth in the register
of Holders; provided that payment by wire transfer of immediately available funds will be
required with respect to principal of and interest, premium and Liquidated Damages, if any,
on, all Global Notes and all other Notes the Holders of which will have provided wire
transfer instructions to the Company or the Paying Agent. Such payment will be in such coin
or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts.

     (3) Paying Agent, Registrar And Collateral Trustee. Initially, U.S.
Bank National Association, the Trustee under the Indenture, will act as Paying Agent,
Registrar and Collateral

A-2

 

Trustee. The Company may change any Paying Agent or Registrar without notice to any
Holder. The Company or any of its Subsidiaries may act as Paying Agent or Registrar.

     (4) Indenture and Security Agreements. The Company issued the Notes
under an Indenture dated as of April 22, 2005 (the “Indenture”) among the Company, the
Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture
and those made part of the Indenture by reference to the TIA. The Notes are subject to all
such terms, and Holders are referred to the Indenture and such Act for a statement of such
terms. To the extent any provision of this Note conflicts with the express provisions of
the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes
are secured by a pledge of Collateral (as defined in the Indenture) pursuant to the Security
Agreements referred to in the Indenture. The Indenture does not limit the aggregate
principal amount of Notes that may be issued thereunder.

     (5) Optional Redemption.

     (a) Except as set forth in subparagraph (b) of this Paragraph 5, the Company will
not have the option to redeem the Notes prior to May 1, 2007. On or after May 1, 2007, the Company
may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth below plus accrued and
unpaid interest and Liquidated Damages, if any, on the Notes redeemed to the applicable redemption
date, if redeemed during the twelve-month period beginning on May 1 of the years indicated below,
subject to the rights of Holders on the relevant record date to receive interest on the relevant
interest payment date:

	 	 	 	 	 
	Year	 	Percentage	 
	2007
	 	 	103.000	%
	2008
	 	 	102.000	%
	2009
	 	 	101.000	%
	2010 and thereafter
	 	 	100.000	%

     Unless the Company defaults in the payment of the redemption price, interest will cease to
accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

     (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any
time prior to May 1, 2006, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes issued under the Indenture at a redemption price equal to 100%
of the principal amount plus the Applicable Eurodollar Rate then in effect, plus accrued and unpaid
interest and Liquidated Damages, if any, to the redemption date, with the net cash proceeds of one
or more Equity Offerings; provided that at least 65% in aggregate principal amount of the Notes
originally issued under the Indenture (excluding Notes held by the Company and its Subsidiaries)
remains outstanding immediately after the occurrence of such redemption and that such redemption
occurs within 90 days of the date of the closing of such Equity Offering.

     (6) Mandatory Redemption.

     The Company is not be required to make mandatory redemption or sinking fund payments with
respect to the Notes.

     (7) Repurchase at the Option of Holder.

A-3

 

          (a) Upon the occurrence of a Change of Control, the Company make an offer (a “Change of
Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of each Holder’s Notes at a purchase price in cash equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest and Liquidated Damages,
if any, thereon to the date of purchase, subject to the rights of Holders on the relevant
record date to receive interest due on the relevant interest payment date (the “Change of
Control Payment”). Within 30 days following any Change of Control, the Company will mail a
notice to each Holder setting forth the procedures governing the Change of Control Offer as
required by the Indenture.

          (b) If the Company or a Restricted Subsidiary of the Company consummates any Asset
Sales, when the aggregate amount of Excess Proceeds exceeds $20.0 million, within 30 days
thereof, the Company will commence an offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set
forth in the Indenture with respect to offers to purchase or redeem with the proceeds of
sales of assets (an “Asset Sale Offer”) pursuant to Section 3.09 of the Indenture to
purchase the maximum principal amount of Notes (including any Additional Notes) and such
other pari passu Indebtedness that may be purchased out of the Excess Proceeds at an offer
price in cash in an amount equal to 100% of the principal amount thereof plus accrued and
unpaid interest and Liquidated Damages, if any, thereon to the date of purchase, in
accordance with the procedures set forth in the Indenture. If any Excess Proceeds remain
after the consummation of an Asset Sale Offer, the Company may use such deficiency for any
purpose not otherwise prohibited by the Indenture. If the aggregate principal amount of
Notes and other pari passu Indebtedness tendered into such Asset Sale Offer exceeds the
amount of Excess Proceeds, the Trustee shall select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata basis. Holders of Notes that are the subject of
an offer to purchase will receive an Asset Sale Offer from the Company prior to any related
purchase date and may elect to have such Notes purchased by completing the form entitled
“Option of Holder to Elect Purchase” attached to the Notes.

     (8) Notice of Redemption. Notice of redemption will be mailed at
least 30 days but not more than 60 days before the redemption date to each Holder whose
Notes are to be redeemed at its registered address, except that redemption notices may be
mailed more than 60 days prior to a redemption date if the notice is issued in connection
with a defeasance of the Notes or a satisfaction or discharge of the Indenture. Notes in
denominations larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed.

     (9) Denominations, Transfer, Exchange. The Notes are in registered
form without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture.
The Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a Holder to pay
any taxes and fees required by law or permitted by the Indenture. The Company need not
exchange or register the transfer of any Note or portion of a Note selected for redemption,
except for the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

     (10) Persons Deemed Owners. The registered Holder of a Note may be
treated as its owner for all purposes.

A-4

 

     (11) Amendment, Supplement and Waiver. Subject to certain
exceptions, the Indenture or the Notes or the Note Guarantees may be amended or supplemented
with the consent of the Holders of at least a majority in aggregate principal amount of the
then outstanding Notes including Additional Notes, if any, voting as a single class, and any
existing Default or Event or Default or compliance with any provision of the Indenture or
the Notes or the Note Guarantees may be waived with the consent of the Holders of a majority
in aggregate principal amount of the then outstanding Notes including Additional Notes, if
any, voting as a single class. Without the consent of any Holder of a Note, the Indenture
or the Notes or the Note Guarantees may be amended or supplemented to cure any ambiguity,
defect or inconsistency, to provide for uncertificated Notes in addition to or in place of
certificated Notes, to provide for the assumption of the Company’s or a Guarantor’s
obligations to Holders of the Notes and Note Guarantees in case of a merger or
consolidation, to make any change that would provide any additional rights or benefits to
the Holders of the Notes or that does not adversely affect the legal rights under the
Indenture of any such Holder, to comply with the requirements of the SEC in order to effect
or maintain the qualification of the Indenture under the TIA, to conform the text of the
Indenture, the Security Documents or the Notes to any provision of the “Description of
Notes” section of the Company’s Offering Memorandum dated April 18, 2005, relating to the
initial offering of the Notes, to the extent that such provision in that “Description of
Notes” was intended to be a verbatim recitation of a provision of the Indenture, the Note
Guarantees ,the Security Documents or the Notes; to provide for the issuance of Additional
Notes in accordance with the limitations set forth in the Indenture, or to allow any
Guarantor to execute a supplemental indenture to the Indenture and/or a Note Guarantee with
respect to the Notes.

     (12) Defaults and Remedies. Events of Default include: (i) default
for 30 days in the payment when due of interest on, or Liquidated Damages, if any, with
respect to the Notes; (ii) default in the payment when due (upon maturity, upon redemption
or otherwise) of the principal of, or premium, if any, on, the Notes, (iii) failure by the
Company or any of its Restricted Subsidiaries for 60 days after notice to the Company by the
Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then
outstanding voting as a single class to comply with any of the other agreements in the
Indenture the Security Documents; (iv) default under certain other agreements relating to
Indebtedness of the Company which default (a) is caused by the failure to pay principal of,
or interest or premium, on such Indebtedness prior to the expiration of the grace period
provided for in the applicable agreement on the date of such default (a “Payment Default”)
or (b) results in the acceleration of such Indebtedness prior to its express maturity, and,
in each case, the principal amount of such Indebtedness, together with the principal amount
of any other such Indebtedness for which there has been a Payment Default or the maturity of
which has been so accelerated, aggregates $15.0 million or more; (v) certain final judgments
for the payment of money aggregating in excess of $15.0 million that are not paid,
discharged or stayed for a period of 60 consecutive days after such judgments have become
final and non-appealable; (vi) except as permitted by the Indenture, any Note Guarantee is
held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to
be in full force and effect or any Guarantor or any Person acting on its behalf denies or
disaffirms its obligations under such Guarantor’s Note Guarantee, (vii) (a) subject to
certain exceptions and thresholds provided in the Indenture, any Security Document or any
First Priority Lien purported to be granted under any Security Document on Collateral ceases
to be enforceable (and, in the case of a First Priority Lien, perfected) or the Company or
any other Pledgor, or any Person acting on behalf of any of them, denies or disaffirms, in
writing, any obligation of such Pledgor set forth in or arising under any Security Document,
(viii) certain events of bankruptcy or insolvency with respect to the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries that, taken together, would constitute a Significant Subsidiary. If any Event
of Default occurs and is continuing, the Trustee or the Holders of at least 25% in

A-5

 

aggregate principal amount of the then outstanding Notes may declare all the Notes to
be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of
Default arising from certain events of bankruptcy or insolvency, all outstanding Notes will
become due and payable immediately without further action or notice. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then outstanding
Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of principal or interest or
premium or Liquidated Damages, if any,) if it determines that withholding notice is in their
interest. The Holders of a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind an
acceleration or waive any existing Default or Event of Default and its consequences under
the Indenture except a continuing Default or Event of Default in the payment of interest or
premium or Liquidated Damages, if any, on, or the principal of, the Notes. The Company is
required to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required, upon becoming aware of any Default or Event of
Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

     (13) Trustee Dealings with Company. The Trustee, in its individual
or any other capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if
it were not the Trustee.

     (14) No Recourse Against Others. A director, officer, employee,
incorporator or stockholder (other than Holdings’ with respect to its Note Guarantee) of the
Company or any of the Guarantors, as such, will not have any liability for any obligations
of the Company or the Guarantors under the Notes, the Note Guarantees or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or their creation.
Each Holder by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for the issuance of the Notes.

     (15) Authentication. This Note will not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.

     (16) Abbreviations. Customary abbreviations may be used in the name
of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by
the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

     (17) Additional Rights of Holders of Restricted Global Notes and
Restricted Definitive Notes. In addition to the rights provided to Holders of Notes
under the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes will
have all the rights set forth in the Registration Rights Agreement dated as of April 22,
2005, among the Company, the Guarantors and the other parties named on the signature pages
thereof or, in the case of Additional Notes, Holders of Restricted Global Notes and
Restricted Definitive Notes will have the rights set forth in one or more registration
rights agreements, if any, among the Company, the Guarantors and the other parties thereto,
relating to rights given by the Company and the Guarantors to the purchasers of any
Additional Notes (collectively, the “Registration Rights Agreement”).

A-6

 

     (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP
numbers to be printed on the Notes, and the Trustee may use CUSIP numbers in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of
such numbers either as printed on the Notes or as contained in any notice of redemption, and
reliance may be placed only on the other identification numbers placed thereon.

     (19) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE GUARANTEES WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Ziff Davis Media Inc.

28 East 28th Street

New York, New York 10016

Attention: General Counsel

A-7

 

Assignment Form

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:                                                                                 

	 	 
	                                        (Insert assignee’s legal name)

	 	 
	 
	 	 
	                                                                                                                                                                                                                            
	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	 	 
	                                                                                                                                                                                                                            
	 
	 	 
	                                                                                                                                                                                                                            
	 
	 	 
	                                                                                                                                                                                                                            
	 
	 	 
	                                                                                                                                                                                                                            
	(Print or type assignee’s name, address and zip code)

and irrevocably appoint                                                                                                                                                                 
to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date:                     

	 	 	 
	

	 	Your Signature:                                                                                               
	

	 	                      (Sign exactly as your name appears on the face of this Note)

Signature Guarantee*:                                         

	* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).	 	 

A-8

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.10
or 4.15 of the Indenture, check the appropriate box below:

—  Section 4.10                                                               —  Section 4.15

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$                    

Date:                     

	 	 	 
	

	 	Your Signature:                                                                  
	

	 	                (Sign exactly as your name appears on the face of this Note)
	 
	 	 
	

	 	Tax Identification No.:                                                           

Signature Guarantee*:                                         

	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-9

 

Schedule of Exchanges of Interests in the Global Note *

     The following exchanges of a part of this Global Note for an interest in another Global
Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for
an interest in this Global Note, have been made:

	 	 	 
	 	 	 	 	 	 	 	 	Principal Amount	 	 	 
	 	 	Amount of decrease in	 	 	Amount of increase in	 	 	at maturity of this	 	 	 
	 	 	Principal Amount	 	 	Principal Amount	 	 	Global Note following	 	 	Signature of authorized
	 	 	at maturity of	 	 	at maturity of	 	 	such decrease	 	 	officer of Trustee or
	Date of Exchange	 	this Global Note	 	 	this Global Note	 	 	(or increase)	 	 	Custodian

	*	 	This schedule should be included only if the Note is issued in global form.

A-10

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Ziff Davis Media Inc.

28 East 28th Street

New York, New York 10016

U.S. Bank National Association

60 Livingston Avenue

St. Paul, Minnesota 55107-2292

     Re: Senior Secured Floating Rate Notes due 2012

     Reference is hereby made to the Indenture, dated as of April 22, 2005 (the “Indenture”), among
Ziff Davis Media Inc., as issuer (the “Company”), the Guarantors party thereto and U.S. Bank
National Association, as trustee. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

                                             , (the “Transferor”) owns and proposes to transfer the Note[s] or interest
in such Note[s] specified in Annex A hereto, in the principal amount of $                     in such
Note[s] or interests (the “Transfer”), to                                          (the “Transferee”), as
further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby
certifies that:

[CHECK ALL THAT APPLY]

     1.  ̈ Check if Transferee will take delivery of a beneficial interest in the 144A
Global Note or a Restricted Definitive Note pursuant to Rule 144A. The Transfer is being
effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933, as amended
(the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Note for its own account,
or for one or more accounts with respect to which such Person exercises sole investment discretion,
and such Person and each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A, and such Transfer is in
compliance with any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Restricted
Definitive Note and in the Indenture and the Securities Act.

     2.  ̈ Check if Transferee will take delivery of a beneficial interest in the
Regulation S Global Note or a Restricted Definitive Note pursuant to Regulation S. The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is
not being made to a Person in the United States and (x) at the time the buy order was originated,
the Transferee was outside the United States or such Transferor and any Person acting on its behalf
reasonably believed and believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated offshore securities
market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b)
of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to
evade the registration requirements of the Securities Act and (iv) if the proposed transfer is
being made prior to the expiration of

B-1

 

the Restricted Period, the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Upon
consummation of the proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the restrictions on Transfer
enumerated in the Private Placement Legend printed on the Regulation S Global Note and/or the
Restricted Definitive Note and in the Indenture and the Securities Act.

     3.  ̈ Check and complete if Transferee will take delivery of a beneficial interest
in the IAI Global Note or a Restricted Definitive Note pursuant to any provision of the Securities
Act other than Rule 144A or Regulation S. The Transfer is being effected in compliance with
the transfer restrictions applicable to beneficial interests in Restricted Global Notes and
Restricted Definitive Notes and pursuant to and in accordance with the Securities Act and any
applicable blue sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

     (a)  ̈ such Transfer is being effected pursuant to and in accordance with Rule
144 under the Securities Act;

or

     (b)  ̈ such Transfer is being effected to the Company or a subsidiary thereof;

or

     (c)  ̈ such Transfer is being effected pursuant to an effective registration
statement under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act;

or

     (d)  ̈ such Transfer is being effected to an Institutional Accredited Investor
and pursuant to an exemption from the registration requirements of the Securities Act
other than Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further
certifies that it has not engaged in any general solicitation within the meaning of
Regulation D under the Securities Act and the Transfer complies with the transfer
restrictions applicable to beneficial interests in a Restricted Global Note or Restricted
Definitive Notes and the requirements of the exemption claimed, which certification is
supported by (1) a certificate executed by the Transferee in the form of Exhibit D to the
Indenture and (2) if such Transfer is in respect of a principal amount of Notes at the
time of transfer of less than $250,000, an Opinion of Counsel provided by the Transferor
or the Transferee (a copy of which the Transferor has attached to this certification), to
the effect that such Transfer is in compliance with the Securities Act. Upon consummation
of the proposed transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the IAI Global Note and/or the
Restricted Definitive Notes and in the Indenture and the Securities Act.

     4.  ̈ Check if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note or of an Unrestricted Definitive Note.

     (a)  ̈ Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement

B-2

 

Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

     (b)  ̈ Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being
effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the restrictions on transfer contained
in the Indenture and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject
to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

     (c)  ̈ Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being
effected pursuant to and in compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any State of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or
Restricted Definitive Notes and in the Indenture.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 
	 	 	                                                                                                    
	 	 	           [Insert Name of Transferor]
	 
	 	 	 	 
	

	 	By:
	 	                                                                                        
	

	 	 	 	Name:
	

	 	 	 	Title:
	Dated:                                         
	 	 	 	 

B-3

 

ANNEX A TO CERTIFICATE OF TRANSFER

	1.  	The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

	 	(a)  	 ̈ a beneficial interest in the:

	 	(i)  	 ̈ 144A Global Note (CUSIP                     ), or
	 
	 	(ii)  	 ̈ Regulation S Global Note (CUSIP                     ), or
	 
	 	(iii)  	 ̈ IAI Global Note (CUSIP                     ); or

	 	(b)  	 ̈ a Restricted Definitive Note.

	2.  	After the Transfer the Transferee will hold:

[CHECK ONE]

	 	(a)  	 ̈ a beneficial interest in the:

	 	(i)  	 ̈ 144A Global Note (CUSIP                     ), or
	 
	 	(ii)  	 ̈ Regulation S Global Note (CUSIP                     ), or
	 
	 	(iii)  	 ̈ IAI Global Note (CUSIP                     ); or
	 
	 	(iv)  	 ̈ Unrestricted Global Note (CUSIP                     ); or

	 	(b)  	 ̈ a Restricted Definitive Note; or
	 
	 	(c)  	 ̈ an Unrestricted Definitive Note,

	 	   	in accordance with the terms of the Indenture.

B-4

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Ziff Davis Media Inc.

28 East 28th Street

New York, New York 10016

U.S. Bank National Association

60 Livingston Avenue

St. Paul, Minnesota 55107-2292

     Re: Senior Secured Floating Rate Notes due 2012

(CUSIP                     )

     Reference is hereby made to the Indenture, dated as of April 22, 2005 (the “Indenture”), among
Ziff Davis Media Inc., as issuer (the “Company”), the Guarantors party thereto and U.S. Bank
National Association, as trustee. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

                                             , (the “Owner”) owns and proposes to exchange the Note[s] or
interest in such Note[s] specified herein, in the principal amount of $                     in such Note[s]
or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies that:

     1. Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

     (a)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to
beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global
Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in
accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the beneficial interest
in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

     (b)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to
Unrestricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest
in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the Restricted Global
Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

     (c)  ̈ Check if Exchange is from Restricted Definitive Note to beneficial interest in an
Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note
for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is

C-1

 

being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not required in order
to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired
in compliance with any applicable blue sky securities laws of any state of the United States.

     (d)  ̈ Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive
Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

     2. Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

     (a)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to
Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in
a Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner
hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account
without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the
Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

     (b)  ̈ Check if Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note
for a beneficial interest in the [CHECK ONE]  ̈144A Global Note,  ̈Regulation S Global
Note,  ̈IAI Global Note with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities Act, and in
compliance with any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial
interest issued will be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 	 	 
	

	 	 	 	 
	 	 
	

	 	 	 	[Insert Name of Transferor]	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 

C-2

 

Dated: ______________________

C-3

 

EXHIBIT D

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Ziff Davis Media Inc.

28 East 28th Street

New York, New York 10016

U.S. Bank National Association

60 Livingston Avenue

St. Paul, Minnesota 55107-2292

     Re: Senior Secured Floating Rate Notes due 2012

     Reference is hereby made to the Indenture, dated as of April 22, 2005 (the “Indenture”), among
Ziff Davis Media Inc., as issuer (the “Company”), the guarantors party thereto and U.S. Bank
National Association, as trustee. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

     In connection with our proposed purchase of $                     aggregate principal amount of:

     (a)  ̈ a beneficial interest in a Global Note, or

     (b)  ̈ a Definitive Note,

     we confirm that:

     1. We understand that any subsequent transfer of the Notes or any interest therein is subject
to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended
(the “Securities Act”).

     2. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for
which we are acting as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Company or any subsidiary thereof, (B) in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C)
to an institutional “accredited investor” (as defined below) that, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a
signed letter substantially in the form of this letter and, if such transfer is in respect of a
principal amount of Notes, at the time of transfer of less than $250,000, an Opinion of Counsel in
form reasonably acceptable to the Company to the effect that such transfer is in compliance with
the Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation S under
the Securities Act, (E) pursuant to the provisions of Rule 144(k) under the Securities Act or (F)
pursuant to an effective registration statement under the Securities Act, and we further agree to
provide to any Person purchasing the Definitive Note or beneficial interest in a Global Note from
us in a transaction meeting the requirements of clauses (A) through (E) of this paragraph a notice advising such purchaser
that resales thereof are restricted as stated herein.

D-1

 

     3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Company such certifications, legal opinions and other
information as you and the Company may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

     4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

     5. We are acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

     You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 	 	 
	

	 	 	 	 
	 	 
	

	 	 	 	       [Insert Name of Accredited Investor]
	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Dated:                                         
	 	 	 	 	 	 

D-2

 

EXHIBIT E

FORM OF NOTATION OF GUARANTEE

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture dated as of April 22, 2005 (the
"Indenture”) among Ziff Davis Media Inc., (the “Company"), the Guarantors party thereto and U.S.
Bank National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the
principal of, premium and Liquidated Damages, if any, and interest on, the Notes, whether at
maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on
overdue principal of and interest on the Notes, if any, if lawful, and the due and punctual
performance of all other obligations of the Company to the Holders or the Trustee all in accordance
with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of
any Notes or any of such other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. The obligations of the Guarantors to the Holders of Notes and to the
Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in Article 11 of
the Indenture and reference is hereby made to the Indenture for the precise terms of the Note
Guarantee.

     Capitalized terms used but not defined herein have the meanings given to them in the
Indenture.

	 	 	 	 	 
	 	 	[Name of Guarantor(s)]
	 
	 	 	 	 
	

	 	 	 	By:                                                                                                     
	

	 	 	 	Name:
	

	 	 	 	Title:

E-1

 

EXHIBIT F

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

     Supplemental Indenture (this “Supplemental Indenture”), dated as of                     ,
200___, among                                          (the “Guaranteeing Subsidiary”), a subsidiary of Ziff Davis Media
Inc. (or its permitted successor), a Delaware corporation (the “Company”), the Company, the other
Guarantors (as defined in the Indenture referred to herein) and U.S. Bank National Association, as
trustee under the Indenture referred to below (the “Trustee”).

W I T N E S S E T H

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
"Indenture”), dated as of April 22, 2005 providing for the issuance of Senior Secured Floating
Rate Notes due 2012 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have
the meanings assigned to them in the Indenture.

     2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee
and in the Indenture including but not limited to Article 11 thereof.

     4. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary, as such, shall have
any liability for any obligations of the Company or any Guaranteeing Subsidiary under the Notes,
any Note Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of the Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a waiver is against
public policy.

     5. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS
OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

F-1

 

     6. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     7. Effect of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     8. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary
and the Company.

F-2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

     Dated:                     , 20___

	 	 	 	 	 
	 	 	[Guaranteeing Subsidiary]
	 
	 	 	 	 
	

	 	By:
	 	                                                                                
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Ziff Davis Media Inc.
	 
	 	 	 	 
	

	 	By:
	 	                                                                                
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Ziff Davis Holdings Inc.
	 
	 	 	 	 
	

	 	By:
	 	                                                                                
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Ziff Davis Publishing Holdings Inc.
	 
	 	 	 	 
	

	 	By:
	 	                                                                                
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Ziff Davis Publishing Inc.
	 
	 	 	 	 
	

	 	By:
	 	                                                                                
	

	 	 	 	Name:
	

	 	 	 	Title
	 
	 	 	 	 
	 	 	Ziff Davis Development Inc.
	 
	 	 	 	 
	

	 	By:
	 	                                                                                
	

	 	 	 	Name:
	

	 	 	 	Title
	 
	 	 	 	 
	 	 	Ziff Davis Internet Inc.
	 
	 	 	 	 
	

	 	By:
	 	                                                                                
	

	 	 	 	Name:
	

	 	 	 	Title
	 
	 	 	 	 
	 	 	U.S. Bank National Association,
	 	 	as Trustee
	 
	 	 	 	 
	

	 	By:
	 	                                                                                
	

	 	 	 	Authorized Signatory

F-3

 

EXHIBIT G

FORM OF COLLATERAL TRUST AGREEMENT

G-1

 

EXHIBIT H1

FORM OF SECURITY COPYRIGHT

 

 

EXHIBIT H2

FORM OF PLEDGE AGREEMENT

 

 

EXHIBIT H3

FORM OF TRADEMARK AGREEMENTEx-4.2

 

Exhibit 4.2

FIRST LIEN SECURITY AGREEMENT

dated as of April 22, 2005

among

ZIFF DAVIS MEDIA INC.,

each Guarantor and

the other Grantors party hereto from time to time

and

U.S. BANK NATIONAL ASSOCIATION,

as Collateral Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	Section 1. DEFINITIONS
	 	 	2	 
	 	 	 	 	 
	Section 2. GRANT OF SECURITY
	 	 	9	 
	 	 	 	 	 
	Section 3. SECURITY FOR OBLIGATIONS
	 	 	10	 
	 	 	 	 	 
	Section 4. REPRESENTATIONS AND WARRANTIES AND COVENANTS
	 	 	11	 
	 	 	 	 	 
	Section 5. ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES
	 	 	19	 
	 	 	 	 	 
	Section 6. COLLATERAL TRUSTEE APPOINTED ATTORNEY-IN-FACT, IRREVOCABLE POWER OF ATTORNEY
	 	 	21	 
	 	 	 	 	 
	Section 7. REMEDIES
	 	 	22	 
	 	 	 	 	 
	Section 8. COLLATERAL TRUSTEE
	 	 	25	 
	 	 	 	 	 
	Section 9. CONTINUING SECURITY INTEREST; TRANSFER OF FIRST LIEN OBLIGATIONS
	 	 	27	 
	 	 	 	 	 
	Section 10. STANDARD OF CARE; COLLATERAL TRUSTEE MAY PERFORM
	 	 	28	 
	 	 	 	 	 
	Section 11. INDEMNITY AND EXPENSES
	 	 	28	 
	 	 	 	 	 
	Section 12. MISCELLANEOUS
	 	 	29	 
	 	 	 	 	 
	SCHEDULE I – GENERAL INFORMATION
	 	 	 	 
	SCHEDULE II – LOCATION OF INVENTORY AND EQUIPMENT
	 	 	 	 
	SCHEDULE III – INVESTMENT RELATED PROPERTY
	 	 	 	 
	SCHEDULE IV – MATERIAL CONTRACTS
	 	 	 	 
	SCHEDULE V – LETTERS OF CREDIT
	 	 	 	 
	SCHEDULE VI – INTELLECTUAL PROPERTY
	 	 	 	 
	SCHEDULE VII – COMMERCIAL TORT CLAIMS
	 	 	 	 

EXHIBIT A – PLEDGE SUPPLEMENT

EXHIBIT B – JOINDER AGREEMENT

  i

 

 

          This FIRST LIEN SECURITY AGREEMENT, dated as of April 22, 2005 (as amended or otherwise
modified from time to time, this “Agreement”), between each of ZIFF DAVIS MEDIA INC. (the
“Company,” each of the Guarantors listed on the signature pages hereof and any other Person that
executes a Joinder Agreement each, a “Grantor” and collectively, the “Grantors”), and U.S. BANK
NATIONAL ASSOCIATION acting in the capacity of Collateral Trustee for the benefit of the Secured
Parties (as defined in the Collateral Trust Agreement referred to below), together with its
successors and assigns (in such capacity, the “Collateral Trustee”).

RECITALS:

          WHEREAS, reference is made to that certain Indenture, dated as of the date hereof (as amended,
supplemented, amended and restated or otherwise modified and in effect from time to time, the
“Indenture”) among the Company, the other Grantors party thereto from time to time and U.S. Bank
National Association, as trustee (in such capacity and together with its successors in such
capacity, the “Trustee”) pursuant to which the Company intends to issue Senior Secured Floating
Rate Notes due 2012 (including any related exchange notes, the
“Notes”) in an aggregate principal
amount of $205,000,000.

          WHEREAS, pursuant to the Indenture, the Grantors (other than the Company) will guarantee
payment of the Notes and all other Secured Obligations (as defined in the Collateral Trust
Agreement referred to below).

          WHEREAS, the Grantors may, from time to time, incur additional future Secured Debt and any
Hedging Obligations related thereto (as defined in the Collateral Trust Agreement referred to
below) in an amount not to exceed
$[        ] outstanding at any time that will, subject to the terms
and conditions of the Indenture, be secured on a first priority basis or a second priority basis,
as the case may be.

          WHEREAS, the Indenture contemplates that, when issued, the Notes and all other First Lien
Obligations, will be secured Equally and Ratably (as defined in the Collateral Trust Agreement)
with other future First Lien Obligations (as defined in the Collateral Trust Agreement), by Liens
on all present and future Collateral (as defined herein).

          WHEREAS, in order to cause the First Priority Liens (as defined in the Collateral Trust
Agreement referred to below) encumbering the Collateral and created herein to secure Equally and
Ratably, the First Lien Obligations (as defined in the Collateral Trust Agreement referred to
below) and all other future First Lien Obligations, the Company and the other Grantors will enter
into a collateral trust arrangement pursuant to the Collateral Trust Agreement, dated as of the
date hereof (as amended or otherwise modified from time to time, the “Collateral Trust Agreement”),
among the Grantors, the Trustee, the other Secured Debt Representatives (as defined in the
Collateral Trust Agreement referred to below) party thereto from time to time and the Collateral
Trustee.

          WHEREAS, in order to cause any Second Priority Liens (as defined in the Collateral Trust
Agreement referred to below) encumbering the Collateral to secure Equally and Ratably any future
Second Lien Obligations (as defined in the Collateral Trust Agreement

 

 

referred to below), the Company and the other Grantors will enter into a collateral trust
arrangement pursuant to the Collateral Trust Agreement and a pledge and security agreement on
substantially the same terms and conditions as this Agreement and granting to the Collateral
Trustee for the benefits of the holders of Second Lien Obligations a second priority security
interest in the Collateral, among the Grantors, the Trustee, the other Secured Debt Representatives
party thereto from time to time and the Collateral Trustee.

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

          Section 1.    DEFINITIONS

          (a)    General Definitions. In this Agreement, the following terms shall have the
following meanings:

          “Account Debtor” shall mean each Person who is obligated on a Receivable or any Supporting
Obligation related thereto.

          “Accounts” shall mean all “accounts” as defined in Article 9 of the UCC.

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

          “Authenticate” shall mean “authenticate” as defined in Article 9 of the UCC.

          “Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy”, as now
and hereafter in effect, or any successor statute.

          “Capital Stock” shall have the meaning set forth in the Indenture.

          “Cash Proceeds” shall mean all proceeds of any Collateral consisting of cash, checks and other
near-cash items.

          “Chattel Paper” shall mean all “chattel paper” as defined in Article 9 of the UCC, including,
without limitation, “electronic chattel paper” or “tangible chattel paper”, as each term is defined
in the UCC.

          “Closing Date” shall mean the date of the Indenture.

          “Collateral” shall have the meaning set forth in Section 2.1 hereof.

          “Collateral Trust Agreement” shall have the meaning set forth in the recitals.

          “Collateral Trustee” shall have the meaning set forth in the preamble.

          “Collateral Records” shall mean books, records, ledger cards, files, correspondence, customer
lists, blueprints, technical specifications, manuals, computer software, computer printouts, tapes,
disks and other electronic storage media and related data processing

2

 

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.

          “Commercial Tort Claims” shall mean all “commercial tort claims” as defined in the UCC,
including, without limitation, all commercial tort claims listed and described with specification
on Schedule VII hereto (as such Schedule may be amended or supplemented from time to time).

          “Commodities Accounts” (i) shall mean all “commodity accounts” as defined in Article 9 of the
UCC and (ii) shall include, without limitation, all of the accounts listed on Schedule III hereto
under the heading “Commodities Accounts” (as such Schedule may be amended or supplemented from time
to time).

          “Copyright Licenses” shall mean any and all agreements granting any right in, to or under
Copyrights (whether such Grantor is licensee or licensor thereunder) including, without limitation,
each agreement referred to in Schedule VI(B) (as such Schedule may be amended or supplemented from
time to time).

          “Copyrights” shall mean all United States, state and foreign copyrights, including but not
limited to copyrights in software and databases, and all Mask Works (as defined under 17 U.S.C.
§901 of the U.S. Copyright Act), whether registered or unregistered, now or hereafter in force
throughout the world, all registrations and applications for any of the foregoing including,
without limitation, the registrations and applications referred to in Schedule VI(A) (as such
Schedule may be amended or supplemented from time to time), all rights corresponding thereto
throughout the world, all extensions and renewals of any thereof, the right to sue for past,
present and future infringements of any of the foregoing, and all proceeds of the foregoing,
including, without limitation, licenses, royalties, income, payments, claims, damages, and proceeds
of suit.

          “Deposit Accounts” (i) shall mean all “deposit accounts” as defined in Article 9 of the UCC
and (ii) shall include, without limitation, all of the accounts listed on Schedule III hereto under
the heading “Deposit Accounts” (as such Schedule may be amended or supplemented from time to time).

          “Documents” shall mean all “documents” as defined in Article 9 of the UCC.

          “Documents Evidencing Goods” shall mean all Documents evidencing, representing or issued in
connection with Goods.

          “Equipment” shall mean: (i) all “equipment” as defined in the UCC, (ii) all machinery,
manufacturing equipment, data processing equipment, computers, office equipment, furnishings,
furniture, appliances, and tools (in each case, regardless of whether characterized as equipment
under the UCC), (iii) all Fixtures and (iv) all accessions or additions thereto, all parts thereof,
whether or not at any time of determination incorporated or installed therein or attached thereto,
and all replacements therefor, wherever located, now or hereafter existing.

3

 

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and any successor thereto.

          “Event of Default” shall have the meaning assigned in the Indenture.

          “Excluded Collateral” shall have the meaning assigned in Section 2(b).

          “Fixtures” shall mean all “fixtures” as defined in Article 9 of the UCC.

          “General Intangibles” (i) shall mean all “general intangibles” as defined in Article 9 of the
UCC and (ii) shall include, without limitation, all interest rate or currency protection or hedging
arrangements, all contracts, all tax refunds and all licenses, permits, concessions and
authorizations, (in each case, regardless of whether characterized as general intangibles under the
UCC).

          “Goods” (i) shall mean all “goods” as defined in Article 9 of the UCC and (ii) shall include,
without limitation, all Inventory, Equipment, Documents Evidencing Goods and Software Embedded In
Goods.

          “ Guarantors “ means each of :

     (1) Ziff Davis Publishing Holdings Inc., Ziff Davis Publishing Inc., Ziff Davis
Development Inc. and Ziff Davis Internet Inc; and

     (2) any other Domestic Subsidiary of Ziff Davis that executes a Note Guarantee in accordance
with the provisions of the Indenture, and their respective successors and assigns, in each case,
until the Note Guarantee of such Person has been released in accordance with the provisions of the
indenture.

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

          “Indenture” shall have the meaning set forth in the recitals.

          “Instruments” shall mean all “instruments” as defined in Article 9 of the UCC.

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

          “Intellectual Property” shall mean, collectively, the Copyrights, the Copyright Licenses, the
Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets, and the
Trade Secret Licenses.

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

4

 

          “Inventory” shall mean: (i) all “inventory” as defined in the UCC and (ii) all goods held for
sale or lease or to be furnished under contracts of service or so leased or furnished, all raw
materials, work in process, finished goods, and materials used or consumed in the manufacture,
packing, shipping, advertising, selling, leasing, furnishing or production of such inventory or
otherwise used or consumed in the Grantor’s business; all goods in which the Grantor has an
interest in mass or a joint or other interest or right of any kind; and all goods which are
returned to or repossessed by the Grantor, and all accessions thereto and products thereof (in each
case, regardless of whether characterized as inventory under the UCC).

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

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

          “Joinder Agreement” means an agreement in the substantially the form of Exhibit B hereto
whereby an additional person becomes a Grantor hereunder as required by the Indenture or any other
Secured Debt Document.

          “Letter of Credit Right” shall mean “letter-of-credit right” as defined in the UCC.

          “Lien” shall mean any lien, mortgage, pledge, assignment, security interest, charge or
encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale
or other Title retention agreement, and any lease in the nature thereof) and any option, trust or
other preferential arrangement having the practical effect of any of the foregoing.

          “Material Adverse Effect” shall mean a material adverse effect on (i) the properties or assets
of Grantor and its subsidiaries taken as a whole; (ii) the ability of the Grantor to fully and
timely perform its Secured Obligations; (iii) the legality, validity, binding effect or
enforceability against the Grantor of a Transaction Document to which it is a party; or (iv) the
rights, remedies and benefits, taken as a whole, available to, or conferred upon, any agent and
Collateral Trustee under any Secured Obligation.

          “Material Contract” shall mean any contract or other arrangement to which any Grantor is a
party for which breach, nonperformance, cancellation or failure to renew could reasonably be
expected to have a Material Adverse Effect.

          “Money” shall mean “money” as defined in the UCC.

          “Non-Assignable Contract” shall mean any agreement, contract or license to which any Grantor
is a party that by its terms purport 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 9-409 of the UCC).

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          “Patent Licenses” shall mean all agreements granting any right in, to, or under Patents
(whether such Grantor is licensee or licensor thereunder) including without limitation, each
agreement referred to in Schedule VI(D) hereto (as such Schedule may be amended or supplemented
from time to time).

          “Patents” shall mean all United States, state and foreign patents and applications for letters
patent, including, but not limited to, each patent and patent application referred to in Schedule
VI(C) hereto (as such Schedule may be amended or supplemented from time to time), all reissues,
divisions, continuations, continuations-in-part, extensions, renewals, and reexaminations of any of
the foregoing, all rights corresponding thereto throughout the world, the right to sue for past,
present and future infringements of any of the foregoing and all proceeds of the foregoing
including, without limitation, royalties, income, payments, claims, damages, and proceeds of suit.

          “Payment Intangible” shall have the meaning specified in Article 9 of the UCC.

          “Permitted Lien” shall have the meaning assigned to such term in the Indenture or other
Secured Debt Document.

          “Permitted Sale” shall mean those sales, transfers or assignments permitted by the Indenture
and the other Secured Debt Document.

          “Person” shall mean and include natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships, joint stock companies,
joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business
trusts or other organizations, whether or not legal entities, and governmental authorities.

          “Pledged Debt” shall mean all indebtedness for borrowed money owed to such Grantor, evidenced
by any instrument or promissory note, including, without limitation, all indebtedness described on
Schedule III hereto under the heading “Pledged Debt” (as such Schedule may be amended or
supplemented from time to time).

          “Proceeds” shall mean: (i) all “proceeds” as defined in Article 9 of the UCC, (ii) payments
or distributions made with respect to any Investment Related Property and (iii) whatever is
receivable or received when Collateral or proceeds are sold, leased, licensed, exchanged, collected
or otherwise disposed of, whether such disposition is voluntary or involuntary.

          “Receivables” shall mean all (i) Accounts, (ii) Chattel Paper, (iii) Payment Intangibles, (iv)
Instruments and (v) to the extent not otherwise covered above, all other 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, regardless of how classified under
the UCC 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.

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          “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 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 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.

          “Record” shall have the meaning specified in the UCC.

          “Registered Organization” shall mean an organization organized solely under the law of a
single State or the United States and as to which the State or the United States must maintain a
public record showing the organization to have been organized.

          “Representation Date” shall mean each of (i) the date hereof and (ii) each day on which a
First Lien Secured Debt is incurred or issued.

          “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.

          “Securities Accounts” (i) shall mean all “securities accounts” as defined in Article 8 of the
UCC and (ii) shall include, without limitation, all of the accounts listed on Schedule III hereto
under the heading “Securities Accounts” (as such Schedule may be amended or supplemented from time
to time).

          “Software Embedded in Goods” means, with respect to any Goods, any computer program embedded
in Goods and any supporting information provided in connection with a transaction relating to the
program if (i) the program is associated with the Goods in such a manner that it customarily is
considered part of the Goods or (ii) by becoming the owner of the Goods a person acquires a right
to use the program in connection with the Goods.

          “State” shall mean a State of the United States, the District of Columbia, Puerto Rico, the
United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of
the United States.

          “Supporting Obligation” shall mean all “supporting obligations” as defined in the UCC.

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          “Trade Secret Licenses” shall mean any and all agreements granting any right in or to Trade
Secrets (whether such Grantor is licensee or licensor thereunder) including, without limitation,
each agreement referred to in Schedule VI(G) hereto (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 (all of the foregoing being collectively called a “Trade Secret”), whether
or not reduced to a writing or other tangible form, including all documents and things embodying,
incorporating, or referring in any way to such Trade Secret, the right to sue for past, present and
future infringement of any Trade Secret, and all proceeds of the foregoing, including, without
limitation, royalties, income, payments, claims, damages, and proceeds of suit.

          “Trademark Licenses” shall mean any and all agreements granting any right in or to Trademarks
(whether such Grantor is licensee or licensor thereunder) including, without limitation, each
agreement referred to in Schedule VI(F) hereto (as such Schedule may be amended or supplemented
from time to time).

          “Trademarks” shall mean all United States, state and foreign trademarks, service marks,
certification marks, collective marks, trade names, corporate names, d/b/as, business names,
fictitious business names, internet domain names, trade styles, logos, other source or business
identifiers, designs and general intangibles of a like nature, rights of publicity and privacy
pertaining to the right to use names likeness and biographical data as real, all registrations and
applications for any of the foregoing including, but not limited to, the registrations and
applications referred to in Schedule VI(E) hereto (as such Schedule may be amended or supplemented
from time to time), the goodwill of the business symbolized by the foregoing, the right to sue for
past, present and future infringement or dilution of any of the foregoing or for any injury to
goodwill, and all proceeds of the foregoing, including, without limitation, royalties, income,
payments, claims, damages, and proceeds of suit.

          “Trustee” shall have the meaning set forth in the recitals.

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

          (b)    Definitions; Interpretation. All capitalized terms used herein (including
the preamble and recitals hereto) and not otherwise defined herein shall have the meanings ascribed
thereto in the Collateral Trust Agreement or, if not defined therein, in the UCC. With respect to
terms defined in more than one article of the UCC, unless otherwise specified such terms shall have
the meaning specified in Article 9 of the UCC. References to “Sections,” “Exhibits” “Annexes” and
“Schedules” shall be to Sections, Exhibits, Annexes and Schedules, as the case may be, of this
Agreement (as such Sections, Exhibits, Annexes and Schedules may be amended or supplemented from
time to time in accordance with the terms of this Agreement), unless otherwise specifically
provided. Section headings in this Agreement are included herein for convenience of reference only
and shall not constitute a part of this Agreement for any other purpose or be given any substantive
effect. Any of the terms defined herein may, unless the context otherwise requires, be used in the
singular or the plural, depending on the reference. The

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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
nonlimiting language (such as “without limitation” or “but not limited to” or words of similar
import) is used 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. If
any conflict or inconsistency exists between this Agreement and the Collateral Trust Agreement, the
Collateral Trust 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

          (a)    Grant of Security. Each Grantor hereby grants to the Collateral Trustee for
the benefit of the holders of the First Lien Obligations a security interest 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 or arising and wherever located (all of which being hereinafter collectively
referred to as the “Collateral”, as defined in Section 1.1):

          (1) Documents;

          (2) General Intangibles;

          (3) Goods (including, without limitation, Documents Representing Goods and
Software Embedded in Goods);

          (4) Insurance;

          (5) Intellectual Property;

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

          (7) Letter of Credit Rights and letters of credit;

          (8) Money;

          (9) Receivables and Receivable Records;

          (10) Commercial Tort Claims;

          (11) to the extent not otherwise included above, Material Contracts, motor
vehicles, choses in action and all other personal property of any kind and all Collateral
Records, Collateral Support and Supporting Obligations relating to any of the foregoing;
and

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

          (b)    Certain Limited Exclusions. Notwithstanding anything herein to the contrary,
in no event shall the security interest granted under Section 2.1 hereof attach to nor shall
“Collateral” include: (a) any lease, license, contract, property right or agreement to which Ziff
Davis or any other Grantor is a party or bound or any of its rights or interests thereunder if and
only for so long as the grant of a Lien under the security documents will constitute or result in a
breach, forfeiture, termination or default under any such lease, license, contract, property right
or agreement (other than to the extent that any such term would be rendered ineffective pursuant to
Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code of any relevant jurisdiction
or any other applicable law or principles of equity); provided that such lease, license, contract,
property right or agreement will be an Excluded Asset only to the extent and for so long as the
consequences specified above will result and will cease to be an Excluded Asset and will become
subject to the Lien granted under the security documents, immediately and automatically, at such
time as such consequences will no longer result; (b) real property owned by Ziff Davis or any other
Pledgor that has a Fair Market Value not exceeding $5.0 million in the aggregate, or any real
property leased by Ziff Davis or any other Pledgor; (c) all “securities” of any of Ziff Davis’s
“affiliates” (as the terms “securities” and “affiliates” are used in Rule 3-16 of Regulation S-X
under the Securities Act); (d) any other property or assets in which a Lien cannot be perfected by
the filing of a financing statement under the Uniform Commercial Code of the relevant jurisdiction,
so long as the aggregate Fair Market Value of all such property and assets does not at any one time
exceed $10.0 million or, if greater, 5.0% of the aggregate Fair Market Value of all properties and
assets of Ziff Davis and the other Grantors; and (e) any application to register a Trademark prior
to the filing under applicable law of a verified statement of use (or the equivalent) for such
Trademark, to the extent the creation of a security interest in such Trademark, or the grant of a
mortgage on such Trademark, would void or invalidate such Trademark; provided that any such
application to register a Trademark shall be an Excluded Collateral only until the filing under
applicable law of a verified statement of use (or the equivalent) for such Trademark (collectively,
assets described in clauses (a)-(d) above, the “Excluded Collateral”).

          (c)    Notwithstanding anything to the contrary contained herein, no Grantor shall
be required to take any action that would be required herein with respect to any property
constituting Excluded Collateral and none of the representations and warranties contained herein
shall be deemed to apply to any property constituting Excluded Collateral.

          Section 3.    SECURITY FOR OBLIGATIONS.

          (a)    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 First Lien Obligations.

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          (b)    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 Trustee
or any Secured Party and (ii) each Grantor shall remain liable under each of the agreements, 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 Trustee 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 Trustee 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, (iii) the exercise by the Collateral Trustee of any of its
rights hereunder shall not release the Grant from any of its duties or obligations under the
contracts and agreements included in the Collateral.

               Section 4.    REPRESENTATIONS AND WARRANTIES AND COVENANTS.

               (a)    Generally.

          (i) Representations and Warranties. Each Grantor hereby represents
and warrants, on each Representation Date, that:

          (1) it owns the Collateral purported to be owned by it or otherwise has
the rights it purports to have in each item of Collateral and, as to all Collateral
whether now existing or hereafter acquired, will continue to own or have such rights in
each item of the Collateral, in each case free and clear of any and all Liens, rights or
claims of all other Persons other than Permitted Liens, including, without limitation,
liens arising as a result of such Grantor becoming bound (as a result of merger or
otherwise) as debtor under a security agreement entered into by another Person;

          (2) such Grantor has been duly organized as the type of entity listed on
Schedule I(a) hereof opposite its name under the laws of the jurisdiction listed on
Schedule I(a) hereof opposite its name and remains duly existing as such. Such Grantor
has not filed any certificates of domestication, transfer or continuance in any other
jurisdiction.

          (3) the execution and delivery of this Agreement by such Grantor and the
performance by it of its obligations under this Agreement are within its corporate or
other powers and have been duly authorized by all necessary corporate or other action;

          (4) (A) upon the filing of UCC financing statements naming each Grantor as
debtor and the Collateral Trustee as secured party and describing the Collateral in the
filing offices set forth opposite such Grantor’s name on Schedule I(E) hereof (as such
Schedule may be amended or supplemented from time to time) and other filings delivered by
each Grantor, (B) upon recordation of the security interests granted to the Collateral
Trustee hereunder in Intellectual Property in the applicable United States Patent and
Trademark Office and the United States Copyright Office, the

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security interests with respect to Collateral that can be perfected by filing a UCC
Financing Statement or a filing in the United States Patent and Trademark Office or the
United States Copyright Office granted to the Collateral Trustee hereunder constitute
valid and perfected first priority Liens (subject in the case of priority only to
Permitted Liens);

          (5) other than the financing statements filed in favor of the Collateral
Trustee, no effective UCC financing statement, fixture filing or other instrument similar
in effect under any applicable law covering all or any part of the Collateral is on file
in any filing or recording office except for (x) financing statements for which proper
termination statements have been delivered to the Collateral Trustee for filing and (y)
financing statements filed in connection with Permitted Liens;

          (6) no authorization, approval or other action by, and no notice to or
filing with, any Governmental Authority or regulatory body is required for either (i) the
grant by the Grantor of the Liens purported to be created in favor of the Collateral
Trustee hereunder or (ii) the exercise by Collateral Trustee of any rights or remedies in
respect of any Collateral (whether specifically granted or created hereunder or created
or provided for by applicable law), except (A) for the filings contemplated by clause (4)
above and (B) as may be required, in connection with the disposition of any Investment
Related Property, by laws generally affecting the offering and sale of Securities and as
may be required under federal laws pertaining to Intellectual Property;

          (7) except with respect to any Intellectual Property, all actions and
consents, including all filings, notices, registrations and recordings necessary or
desirable for the exercise by the Collateral Trustee of the rights provided for in this
Agreement or the exercise of remedies in respect of the Collateral have been made or
obtained;

          (8) it has indicated on Schedule I(A) hereto (as such Schedule may be
amended or supplemented from time to time): (w) the type of organization of such
Grantor, (x) the jurisdiction of organization of such Grantor, (y) its organizational
identification number, if any, and (z) the jurisdiction where the chief executive office
or its sole place of business is (or if such Grantor is a natural person principal
residence and principal place of business), and for the one-year period preceding the
date hereof has been, located.

          (9) the full legal name of such Grantor is as set forth on Schedule I(A)
and, as of the date hereof, it has not done in the last five (5) years, and does not do,
business under any other name (including any trade-name or fictitious business name)
except for those names set forth on Schedule I(B) (as such Schedule may be amended or
supplemented from time to time);

          (10) except as provided on Schedule I(C), it has not changed its name,
jurisdiction of organization, and as of the date hereof it has not changed its, chief
executive office or sole place of business (or, if such Grantor is a natural person,

12

 

principal residence or principal place of business) or its corporate structure in
any way (e.g., by merger, consolidation, change in corporate form or otherwise) within
the past five (5) years;

          (11) such Grantor 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 I(D) hereof (as such Schedule may be amended or
supplemented from time to time);

          (12) with respect to each agreement identified on Schedule I(D), it has
indicated on Schedule I(A) and Schedule I(B) the information required pursuant to Section
I(a)(iii) and (iv) with respect to the Grantor under each such agreement;

          (13) all information supplied by each Grantor with respect to any of the
Collateral (taken as a whole) is accurate and complete in all material respects; and

          (14) none of the Collateral in the aggregate value of $10,000 or more
constitutes, or is the Proceeds of, “farm products” (as defined in the UCC).

          (ii) Covenants and Agreements. The Grantor hereby covenants and
agrees that:

          (1) except for the security interest created by this Agreement, it shall
not create or suffer to exist any Lien upon or with respect to any of the Collateral,
except Permitted Liens, and such Grantor shall defend the Collateral against all Persons
at any time claiming any interest therein;

          (2) without limiting any prohibitions or restrictions on mergers in the
Indenture, it shall not change such Grantor’s legal name, identity, corporate structure
(e.g., by merger, consolidation, change in corporate form or otherwise), office, type of
organization or jurisdiction of organization or establish any trade names unless it shall
have (a) notified the Collateral Trustee in writing at least thirty (30) days prior to
any such change or establishment, identifying such new proposed legal name, identity,
corporate structure, office, jurisdiction of organization or trade name and providing
such other information in connection therewith as the Collateral Trustee may reasonably
request and (b) taken all actions necessary or advisable to maintain the continuous
validity, perfection and the same or better priority of the Collateral Trustee’s security
interest in the Collateral granted or intended to be granted and agreed to hereby;

          (3) upon such Grantor or any officer of such Grantor obtaining knowledge
thereof, it shall promptly notify the Collateral Trustee in writing of any event that may
materially and adversely affect the value of any material portion of the Collateral, the
ability of the Grantor or the Collateral Trustee to dispose of a material portion of the
Collateral, the rights and remedies of the Collateral Trustee in relation thereto,
including, without limitation, the levy of any legal process against the Collateral or
any material portion thereof;

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          (4) it shall not take or permit any action which could impair the
Collateral Trustee’s rights except that no action permitted to be taken under any Secured
Debt Document shall be deemed to violate this clause (4) in the Collateral; and

               (b)    Equipment and Inventory.

          (i) Representations and Warranties. The Grantor represents and
warrants, on each Representation Date, that:

          (1) as of the date hereof, all of the Equipment and Inventory included in
the Collateral is kept for the past five (5) years only at the locations specified in
Schedule II hereto (as such Schedule may be amended or supplemented from time to time);
and

          (2) none of the Inventory or Equipment is in the possession of an issuer
of a negotiable document (as defined in Section 7-104 of the UCC) therefor.

          (ii) Covenants and Agreements. The Grantor covenants and agrees
that:

          (1) it shall not deliver any Document Evidencing any Goods to any Person
other than the issuer of such Document to claim the Goods evidenced therefor or the
Collateral Trustee;

               (c)    Receivables.

          (i) Covenants and Agreements: The Grantor hereby covenants and
agrees that:

          (1) it shall keep and maintain at its own cost and expense satisfactory
and complete records of the Receivables in accordance with GAAP;

          (2) it shall not amend, modify, terminate or waive any provision of any
Receivable in any manner which could reasonably be expected to have a Material Adverse
Effect. Other than in the ordinary course of business, and except as otherwise provided
in subsection (4) below, following an Event of Default, such Grantor shall not (w) grant
any extension or renewal of the time of payment of any Receivable, (x) compromise or
settle any dispute, claim or legal proceeding with respect to any Receivable for less
than the total unpaid balance thereof, (y) release, wholly or partially, any Person
liable for the payment thereof, or (z) allow any credit or discount thereon;

          (3) it shall mark conspicuously, in form and manner reasonably
satisfactory to the Collateral Trustee, all Chattel Paper and Instruments (other than
items to be deposited for collection) representing debt with a Fair Market Value of
$100,000 (other than any delivered to the Collateral Trustee as provided herein;

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          (4) except as otherwise provided in this subsection, each Grantor shall
continue to collect all material amounts due (subject to paragraph 2 above) or to become
due to such Grantor under the Receivables and any Supporting Obligation and diligently
exercise each material right (except to the extent such failure would not reasonably be
expected to cause a Material Adverse Effect) it may have under any Receivable, any
Supporting Obligation or Collateral Support, in each case, at its own expense. At any
time following the occurrence and during the continuation of an Event of Default and the
Collateral Trustee notifies the Grantors as provided in the Indenture, the Collateral
Trustee may: (1) direct the Account Debtors under any Receivables to make payment of all
amounts due or to become due to such Grantor thereunder directly to the Collateral
Trustee; (2) notify, or require the Grantor to notify, each Person maintaining a lockbox
or similar arrangement to which Account Debtors under any Receivables have been directed
to make payment to remit all amounts representing collections on checks and other payment
items from time to time sent to or deposited in such lockbox or other arrangement
directly to the Collateral Trustee; and (3) enforce, at the expense of such Grantor,
collection of any such Receivables and to adjust, settle or compromise the amount or
payment thereof, in the same manner and to the same extent as such Grantor might have
done. If the Collateral Trustee notifies the Grantor that it has elected to collect the
Receivables in accordance with the preceding sentence, any payments of Receivables
received by such Grantor shall be forthwith (and in any event within two (2) Business
Days) deposited by such Grantor in the exact form received, duly indorsed by such Grantor
to the Collateral Trustee if required, in an account maintained under the sole dominion
and control of the Collateral Trustee, and until so turned over, all amounts and proceeds
(including checks and other instruments) received by such Grantor in respect of the
Receivables, any Supporting Obligation or Collateral Support shall be received in trust
for the benefit of the Collateral Trustee hereunder and shall be segregated from other
funds of such Grantor and such Grantor shall not adjust, settle or compromise the amount
or payment of any Receivable, or release wholly or partly any Account Debtor or obligor
thereof, or allow any credit or discount thereon; and

               (d)    Pledged Equity Interests and Pledged Debt

          (i) Representations and Warranties. The Grantor hereby represents
and warrants, on each Representation Date, that:

          (1) Schedule III hereto (as such Schedule may be amended or supplemented
from time to time) sets forth under the heading “Pledged Debt” all of the Pledged Debt
owned by the applicable Grantor;

          (ii) Covenants and Agreements. The Grantor hereby covenants and
agrees that:

          (1) it shall notify the Collateral Trustee of any default under any Pledged
Debt that has caused, either in any case or in the aggregate, a Material Adverse Effect; and

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          (iii) Delivery and Control of Pledged Debt. With respect to any
Pledged Debt in excess of $100,000 individually or $1,000,000 in the aggregate that is
evidenced by, or constitutes Pledged Debt, the Grantor shall cause each originally executed
copy thereof to be delivered to the Collateral Trustee (or its agent or designee)
appropriately indorsed to the Collateral Trustee or indorsed in blank: (a) with respect to
any such Pledged Debt in existence on the date hereof, on or prior to the date hereof and
(b) with respect to any such Pledged Debt hereafter arising, within ten (10) days of such
Grantor acquiring rights therein.

               (e)    Intellectual Property.

          (i) Representations and Warranties. Except as disclosed in Schedule
VI(H) (as such Schedule may be amended or supplemented from time to time), the applicable
Grantor hereby represents and warrants, on each Representation Date, that:

          (1) Schedule VI (as such Schedule may be amended or supplemented from time
to time) sets forth a true and complete list of (i) all United States and foreign issued
Patents and applications for Patents owned by such Grantor, all United States, state and
foreign registrations of, and applications for, Trademarks owned by such Grantor, and all
United States and foreign registrations of, and applications for, Copyrights owned by
such Grantor and (ii) all Patent Licenses, Trademark Licenses and Copyright Licenses
granting rights in any Patents, Trademarks or Copyrights owned by such Grantor and any
other Patent Licenses, Trademark Licenses and Copyright Licenses that are material to the
business of such Grantor (expressly excluding, without limitation, (i) licenses for
commercially available software with a per-license cost, or annual license fee of, less
than $1,000 and (ii) shrink-wrap and click-through licenses);

          (2) it is the owner of record of all of its respective Patents set forth
in Schedule VI(C), all of its respective Trademarks set forth in Schedule VI(E), and all
of its respective Copyrights set forth in Schedule VI(A);

          (3) it is the sole and exclusive owner of the entire right, title, and
interest in and to all of its respective Patents set forth in Schedule VI(C), all of its
respective Trademarks set forth in Schedule VI(E), and all of its respective Copyrights
set forth in Schedule VI(A) (as such Schedules may be amended or supplemented from time
to time), and, to the knowledge of Grantor, owns or has the valid right to use all other
Intellectual Property used in or necessary to conduct its business, free and clear of all
Liens, except for Permitted Liens set forth on Schedules VI(B), (D), (F) and (G) (as each
may be amended or supplemented from time to time);

          (4) none of the Intellectual Property owned by Grantor that is material to
Grantor’s business (“Material Intellectual Property”), and to Grantor’s knowledge,
licensed to Grantor has been adjudged invalid or unenforceable, in whole or in part and,
subject to the exercise of Grantor’s reasonable business judgment, Grantor has performed
all acts and has paid all renewal, maintenance, and other fees

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and taxes required to maintain each and every registration and application of
Copyrights, Patents and Trademarks it owns in full force and effect;

          (5) no action or proceeding before any court or administrative authority
has been filed, or to the knowledge of Grantor, is threatened, against Grantor
challenging such Grantor’s right to register, the validity of, or such Grantor’s rights
in any Material Intellectual Property;

          (6) to the knowledge of Grantor, the conduct of such Grantor’s business
does not infringe upon any trademark, patent, copyright, trade secret or similar
intellectual property right owned or controlled by a third party, and no claim is
pending, or to Grantor’s knowledge, threatened, has been made that the conduct of such
Grantor’s business or the use of any Intellectual Property owned or used by Grantor
violates any such rights of any third party;

          (7) to the knowledge of Grantor, no third party is infringing upon any
Material Intellectual Property;

          (8) to the knowledge of Grantor, there is no effective financing statement
or other document or instrument now executed, or on file or recorded in any public
office, granting a security interest in or otherwise encumbering any part of the
Intellectual Property of the Grantor, other than in favor of the Collateral Trustee; and

          (9) with respect to each material Intellectual Property License: (i) such
license is valid and binding and in full force and effect; (ii) such Grantor has not
received any notice of termination or cancellation under such license; (iii) such Grantor
has not received any notice of a breach or default under such license, which breach or
default has not been cured; and (iv) such Grantor is not in breach or default in any
material respect, and no event has occurred that, with notice and/or lapse of time, would
constitute such a breach or default or permit termination, modification or acceleration
under such license..

          (ii) Covenants and Agreements. each Grantor hereby covenants and
agrees as follows:

          (1) except for Intellectual Property that is not in use or has negligible
value, and otherwise subject to Grantor’s exercise of its reasonable business judgment,
Grantor shall not do any act or omit to do any act whereby any of the Material
Intellectual Property may lapse, or become abandoned, dedicated to the public, or
unenforceable, or which would adversely affect the validity, grant, or enforceability of
the security interest granted therein;

          (2) except for copyrights of negligible value, and otherwise subject to
Grantor’s exercise of its reasonable business judgment, Grantor shall, within ninety (90)
days of the creation or acquisition of any Copyrightable work that is material to the
business of Grantor, apply to register the Copyright in such work in the United States
Copyright Office;

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          (3) it shall promptly notify the Collateral Trustee if it knows or has
reason to know that any item of the Material Intellectual Property has become or may
reasonably be expected to imminently become (a) abandoned or dedicated to the public or
placed in the public domain, (b) invalid or unenforceable, or (c) subject to any adverse
determination or development (including the institution of proceedings) in any action or
proceeding in the United States Patent and Trademark Office, the United States Copyright
Office, and state registry;

          (4) except with respect to Intellectual Property that is no longer in use
or is of negligible value, and otherwise subject to Grantor’s exercise of its reasonable
business judgment, it shall take all reasonable steps in the United States Patent and
Trademark Office, the United States Copyright Office, any state registry or any foreign
counterpart of the foregoing, to pursue any application and maintain any registration of
each Trademark, Patent, and Copyright owned by any Grantor and that is now or shall
become included in the Material Intellectual Property including, but not limited to,
those items on Schedule VI(E), (C) and (A) (as each may be amended or supplemented from
time to time);

          (5) in the event that any Material Intellectual Property is infringed,
misappropriated, or diluted by a third party, subject to Grantor’s exercise of its
reasonable business judgment, such Grantor shall promptly take all reasonable actions to
stop such infringement, misappropriation, or dilution to protect its exclusive rights in
such Material Intellectual Property including, but not limited to, the initiation of a
suit for injunctive relief and to recover damages;

          (6) it shall promptly (but in any event within thirty (30) days) report to
the Collateral Trustee (i) the filing of any application to register any Intellectual
Property whether it owns in whole or in part or, to the knowledge of Grantor, that it is
exclusively licensing from a third party with the United States Patent and Trademark
Office, the United States Copyright Office, or any state registry of the foregoing
(whether such application is filed by such Grantor or through any agent, employee,
licensor, licensee, or designee thereof), (ii) the registration of any such Intellectual
Property by any such office, or (iii) the acquisition of any application or registration
of Intellectual Property and, in each case, shall execute and deliver to the Collateral
Trustee a completed Pledge Supplement, substantially in the form of Annex A
attached hereto, together with all Supplements to Schedules thereto or a signed
counterpart of a Trademark Security Agreement, Patent Security Agreement, or Copyright
Security Agreement substantially in the form of Annexes B, C, and D, as applicable
together with all supplements to the schedules thereto;

          (7) except with the prior consent of the Collateral Trustee or as
permitted under the Secured Debt Documents, each Grantor shall not execute, and there
will not be on file in any public office, any effective financing statement or other
document or instruments, except financing statements or other documents or instruments
filed or to be filed in favor of the Collateral Trustee and each Grantor shall not sell,
assign, transfer, license, grant any option, or create or suffer to exist any Lien upon
or with respect to the Intellectual Property, except for the Permitted Liens and the

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Lien created by and under this Security Agreement and the other Transaction
Documents; and

     (8) to the extent required by law, it shall use commercially reasonable
efforts to use proper statutory notice in connection with its use of any of the Material
Intellectual Property.

     (f)    Commercial Tort Claims

    (i) Representations and Warranties. each Grantor hereby represents
and warrants, on each Representation Date, that Schedule VII (as such Schedule may be
amended or supplemented from time to time) sets forth all Commercial Tort Claims of each
Grantor in excess of $500,000 individually or $1,000,000 in the aggregate; and

     (1) Covenants and Agreements. each Grantor hereby covenants and
agrees that with respect to any Commercial Tort Claim in excess of $100,000 individually
or $1,000,000 in the aggregate hereafter arising it shall deliver to the Collateral
Trustee a completed Pledge Supplement, substantially in the form of Annex A attached
hereto, together with all Supplements to Schedules thereto, identifying such new
Commercial Tort Claims.

     Section 5.    ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES.

     (a)    Access; Right of Inspection. The Collateral Trustee, at its own cost, shall
at all times, after reasonable notice, have full and free access during normal business hours to
all the books, correspondence and records of each Grantor, and the Collateral Trustee and its
representatives may examine the same, take extracts therefrom and make photocopies thereof, and
each Grantor agrees to render to the Collateral Trustee, at such Grantor’s cost and expense, such
clerical and other assistance as may be reasonably requested with regard thereto. The Collateral
Trustee and its representatives shall at all times also have the right to enter any premises of
each Grantor and inspect any property of each Grantor where any of the Collateral of such Grantor
granted pursuant to this Agreement is located for the purpose of inspecting the same, observing its
use or otherwise protecting its interests therein.

     (b)    Further Assurances.

     (i) each Grantor agrees that from time to time, at the expense of such
Grantor, that it shall promptly Authenticate, execute and deliver all further instruments
and documents, and take all further action, that may be necessary or desirable, or that the
Collateral Trustee may reasonably request, in order to create and/or maintain the validity,
perfection or priority of and protect any security interest granted or purported to be
granted hereby or to enable the Collateral Trustee to exercise and enforce its rights and
remedies hereunder with respect to any Collateral, provided, however, that this shall not
require delivery or control of any Collateral for which delivery or control is not otherwise
expressly required hereunder. Without limiting the generality of the foregoing, each
Grantor shall:

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     (1) file such financing or continuation statements, or amendments thereto,
and execute and deliver such other agreements, instruments, endorsements, powers of
attorney or notices, as may be necessary or desirable, or as the Collateral Trustee may
reasonably request, in order to perfect and preserve the security interests granted or
purported to be granted hereby;

     (2) take all actions necessary to ensure the recordation of appropriate
evidence of the liens and security interest granted hereunder in the Intellectual
Property with any intellectual property registry in which said Intellectual Property is
registered or in which an application for registration is pending including, without
limitation, the United States Patent and Trademark Office, the United States Copyright
Office, the various Secretaries of State;

     (3) at any reasonable time, upon reasonable request by the Collateral
Trustee, exhibit the Collateral to and allow inspection of the Collateral by the
Collateral Trustee, or persons designated by the Collateral Trustee; and

     (4) at the Collateral Trustee’s reasonable request, appear in and defend
any action or proceeding that may affect the Collateral Trustee’s security interest in
all or any part of the Collateral.

    (ii) Each Grantor hereby authorizes the filing of any financing statements or
continuation statements, and amendments to financing statements, or any similar document in
any jurisdictions and with any filing offices as the Collateral Trustee may determine, in
its sole discretion, are necessary or advisable to perfect or otherwise protect the security
interest granted to the Collateral Trustee herein. Such financing statements may describe
the Collateral in the same manner as described herein or may contain an indication or
description of collateral that describes such property in any other manner as the Collateral
Trustee may determine, in its sole discretion, is necessary, advisable or prudent to ensure
the perfection of the security interest in the Collateral granted to the Collateral Trustee
herein, including, without limitation, describing such property as “all assets,” “all
personal property, whether now owned or hereafter acquired” or “this financing statement
covers all assets of the Grantor, whether now existing or hereafter arising.” Each Grantor
shall furnish to the Collateral Trustee from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection with the
Collateral as the Collateral Trustee may reasonably request, all in reasonable detail.

    (iii) each Grantor hereby authorizes the Collateral Trustee to modify this
Agreement after obtaining such Grantor’s approval of or signature to such modification by
amending Schedule VI hereto (as such Schedule may be amended or supplemented from time to
time) to include reference to any right, Title or interest in any existing Intellectual
Property or any Intellectual Property acquired or developed by any Grantor after the
execution hereof.

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     Section 6.    COLLATERAL TRUSTEE APPOINTED ATTORNEY-IN-FACT, IRREVOCABLE POWER OF
ATTORNEY.Each grantor hereby irrevocably appoints the Collateral Trustee (such appointment being
coupled with an interest) as such grantor’s attorney-in-fact, with full authority in the place and
stead of such grantor and in the name of such grantor, the Collateral Trustee or otherwise, from
time to time in the Collateral Trustee’s discretion to take any action and to execute any
instrument that the Collateral Trustee may deem reasonably necessary or advisable to accomplish the
purposes of this agreement, including, without limitation, the following:

     (i) upon the occurrence and during the continuance of any Event of Default,
upon one business day’s notice, or if necessary in the Collateral Trustee’s reasonable
judgment to protect the Collateral, to obtain and adjust insurance required to be maintained
by such Grantor or paid to the Collateral Trustee pursuant to the Transaction Documents;

     (ii) upon the occurrence and during the continuance of any Event of Default,
upon one business day’s notice, or if necessary in the Collateral Trustee’s reasonable
judgment to protect the Collateral, to ask for, demand, collect, sue for, recover, compound,
receive and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

     (iii) upon the occurrence and during the continuance of any Event of Default,
to receive, endorse and collect any drafts or other instruments, documents and chattel paper
in connection with clause (b) above;

     (iv) upon the occurrence and during the continuance of any Event of Default,
to file any claims or take any action or institute any proceedings that the Collateral
Trustee may deem necessary or desirable for the collection of any of the Collateral or
otherwise to enforce the rights of the Collateral Trustee with respect to any of the
Collateral;

     (v) to prepare, sign, and file for recordation in any intellectual property
registry, appropriate evidence of the lien and security interest granted herein in the
Intellectual Property in the name of such Grantor as assignor;

     (vi) to take or cause to be taken all actions necessary to perform or comply
or cause performance or compliance with the terms of this Agreement, including, without
limitation, access to pay or discharge taxes or Liens (other than Permitted Liens) levied or
placed upon or threatened against the Collateral, the legality or validity thereof and the
amounts necessary to discharge the same to be determined by the Collateral Trustee in its
sole discretion, any such payments made by the Collateral Trustee to become obligations of
such Grantor to the Collateral Trustee, due and payable immediately without demand; and

     (vii) upon the occurrence and during the continuance of any Event of Default,
generally to sell, transfer, lease, license, pledge, make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though

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the Collateral Trustee were the absolute owner thereof for all purposes, and to do, at
the Collateral Trustee’s option and such Grantor’s expense, at any time or from time to
time, all acts and things that the Collateral Trustee deems reasonably necessary to protect,
preserve or realize upon the Collateral and the Collateral Trustee’s security interest
therein in order to effect the intent of this Agreement, all as fully and effectively as
such Grantor might do.

     Section 7.    REMEDIES.

     (a)    Generally.

    (i) If any Event of Default shall have occurred and be continuing, the
Collateral Trustee may exercise in respect of the Collateral, in addition to all other
rights and remedies provided for herein or otherwise available to it at law or in equity,
all the rights and remedies of the Collateral Trustee on default under the UCC (whether or
not the UCC applies to the affected Collateral) to collect, enforce or satisfy any First
Lien Obligations then owing, whether by acceleration or otherwise, and also may pursue any
of the following separately, successively or simultaneously:

     (1) require any Grantor to, and each Grantor hereby agrees that it shall
at its expense and promptly upon request of the Collateral Trustee forthwith, assemble
all or part of the Collateral as directed by the Collateral Trustee and make it available
to the Collateral Trustee at a place to be designated by the Collateral Trustee that is
reasonably convenient to both parties;

     (2) enter onto the property where any Collateral is located and take
possession thereof with or without judicial process;

     (3) prior to the disposition of the Collateral, store, process, repair or
recondition the Collateral or otherwise prepare the Collateral for disposition in any
manner to the extent the Collateral Trustee deems appropriate;

     (4) without notice except as specified below or under the UCC, sell,
assign, lease, license (on an exclusive or nonexclusive basis) or otherwise dispose of
the Collateral or any part thereof in one or more parcels at public or private sale, at
any of the Collateral Trustee’s offices or elsewhere, for cash, on credit or for future
delivery, at such time or times and at such price or prices and upon such other terms as
the Collateral Trustee may deem commercially reasonable; and

    (ii) The Collateral Trustee or any Secured Party may be the purchaser of any
or all of the Collateral at any public or private (to the extent to portion of the
Collateral being privately sold is of a kind that is customarily sold on a recognized market
or the subject of widely distributed standard price quotations) sale in accordance with the
UCC and the Collateral Trustee, as Collateral Trustee for and representative of the Secured
Parties, shall be entitled, for the purpose of bidding and making settlement or payment of
the purchase price for all or any portion of the Collateral sold at any such sale made in
accordance with the UCC, to use and apply any of the First Lien Obligations as a

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credit on account of the purchase price for any Collateral payable by the Collateral
Trustee at such sale. Each purchaser at any such sale shall hold the property sold
absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby
waives (to the extent permitted by applicable law) all rights of redemption, stay and/or
appraisal which it now has or may at any time in the future have under any rule of law or
statute now existing or hereafter enacted. Each Grantor agrees that, to the extent notice
of sale shall be required by law, at least ten (10) days notice to such Grantor of the time
and place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Collateral Trustee shall not be obligated to make
any sale of Collateral regardless of notice of sale having been given. The Collateral
Trustee 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 agrees that it would not be commercially
unreasonable for the Collateral Trustee to dispose of the Collateral or any portion thereof
by using Internet sites that provide for the auction of assets of the types included in the
Collateral or that have the reasonable capability of doing so, or that match buyers and
sellers of assets. Each Grantor hereby waives any claims against the Collateral Trustee
arising by reason of the fact that the price at which any Collateral may have been sold at
such a private sale was less than the price which might have been obtained at a public sale,
even if the Collateral Trustee accepts the first offer received and does not offer such
Collateral to more than one offeree. If the proceeds of any sale or other disposition of
the Collateral are insufficient to pay all the First Lien Obligations, each Grantor shall be
liable for the deficiency and the fees of any attorneys employed by the Collateral Trustee
to collect such deficiency. each Grantor further agrees that a breach of any of the
covenants contained in this Section will cause irreparable injury to the Collateral Trustee,
that the Collateral Trustee has no adequate remedy at law in respect of such breach and, as
a consequence, that each and every covenant contained in this Section shall be specifically
enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert
any defenses against an action for specific performance of such covenants except for a
defense that no default has occurred giving rise to the First Lien Obligations becoming due
and payable prior to their stated maturities. Nothing in this Section shall in any way
alter the rights of the Collateral Trustee hereunder.

    (iii) Upon the occurrence and during the continuance of any Event of Default,
the Collateral Trustee may sell the Collateral without giving any warranties as to the
Collateral. The Collateral Trustee may specifically disclaim or modify any warranties of
title or the like. This procedure will not be considered to adversely effect the commercial
reasonableness of any sale of the Collateral.

    (iv) The Collateral Trustee shall have no obligation to marshall any of the
Collateral.

    (v) Upon the occurrence and during the continuance of any Event of Default,
the Collateral Trustee shall have the right to notify, or require each Grantor to notify,
any obligors with respect to amounts due or to become due to such Grantor in respect of the
Collateral after notice to the Grantors, of the existence of the security

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interest created herein, to direct such obligors to make payment of all such amounts
directly to the Collateral Trustee, and, upon such notification and at the expense of such
Grantor, to enforce collection of any such amounts and to adjust, settle or compromise the
amount or payment thereof, in the same manner and to the same extent as such Grantor might
have done;

     (1) all amounts and proceeds (including checks and other instruments)
received by any Grantor in respect of amounts due to such Grantor in respect
of the Collateral or any portion thereof shall be received in trust for the
benefit of the Collateral Trustee hereunder, shall be segregated from other
funds of such Grantor and shall be forthwith paid over or delivered to the
Collateral Trustee in the same form as so received (with any necessary
endorsement) to be held as cash Collateral and applied as provided by the
Section in this Agreement relating to Cash Proceeds (Section 8(d) hereof);
and

     (2) Grantors shall not adjust, settle or compromise the amount or
payment of any such amount or release wholly or partly any obligor with
respect thereto or allow any credit or discount thereon.

     (b)    Application of Proceeds. All proceeds received by the Collateral Trustee in
respect of any sale, any collection from, or other realization upon all or any part of the
Collateral shall be applied in full or in part by the Collateral Trustee against, the First Lien
Obligations in accordance with the Collateral Trust Agreement.

     (c)    Sales on Credit. If Collateral Trustee sells any of the Collateral upon
credit, Grantor will be credited only with payments actually made by purchaser and received by
Collateral Trustee and applied to indebtedness of the Purchaser. In the event the purchaser fails
to pay for the Collateral, Collateral Trustee may resell the Collateral and Grantor shall be
credited with proceeds of the sale.

     (d)    Cash & Cash Proceeds. If an Event of Default shall have occurred and be
continuing, (1) the Collateral Trustee shall have the right to apply the balance from any Deposit
Account or instruct the bank at which any Deposit Account is maintained to pay the balance of any
Deposit Account to or for the benefit of the Collateral Trustee and (2) all Cash and Cash Proceeds
shall be held by such Grantor in trust for the Collateral Trustee, segregated from other funds of
such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Collateral
Trustee in the exact form received by such Grantor (duly indorsed by such Grantor to the Collateral
Trustee, if required) and held by the Collateral Trustee. All such funds from any Deposit Account,
Cash and Cash Proceeds or any other Money held by the Collateral Trustee may, in the sole
discretion of the Collateral Trustee, (A) be held by the Collateral Trustee for the ratable benefit
of each Secured Party, as collateral security for the First Lien Obligations (whether matured or
unmatured) and/or (B) then or at any time thereafter may be applied by the Collateral Trustee
against the First Lien Obligations then due and owing in accordance with the Collateral Trust
Agreement.

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     (e)    Intellectual Property. In addition to the rights and remedies specified
above, the following provisions shall also be applicable to Intellectual Property.

    (i) Anything contained herein to the contrary notwithstanding, upon the
occurrence and during the continuation of an Event of Default:

     (1) the Collateral Trustee shall have the right (but not the obligation) ,
upon one business day’s notice, or if necessary in the Collateral Trustee’s reasonable
judgment to protect the Collateral, to bring suit or otherwise commence any action or
proceeding in the name of any Grantor, the Collateral Trustee or otherwise, in the
Collateral Trustee’s sole discretion, to enforce any Intellectual Property, in which
event such Grantor shall, at the request of the Collateral Trustee, do any and all lawful
acts and execute any and all documents required by the Collateral Trustee in aid of such
enforcement and such Grantor shall promptly, upon demand, reimburse and indemnify the
Collateral Trustee as provided in the Section in this Agreement relating to indemnity and
expenses in connection with the exercise of its rights under this Section, and, to the
extent that the Collateral Trustee shall elect not to bring suit to enforce any
Intellectual Property as provided in this Section, each Grantor, subject to its exercise
of its reasonable business judgment, agrees to use all commercially reasonable measures,
whether by action, suit, proceeding or otherwise, to prevent the infringement of any of
the Intellectual Property by others and for that purpose agrees to diligently maintain
any action, suit or proceeding against any Person so infringing as shall be necessary to
prevent such infringement; and

     (2) upon written demand from the Collateral Trustee, each Grantor shall
grant, assign, convey or otherwise transfer to the Collateral Trustee or such Collateral
Trustee’s designee all of such Grantor’s right, title and interest in and to the
Intellectual Property, subject to Grantor’s retention of a non-exclusive license in such
Intellectual Property as necessary for Grantor to continue to conduct its business, and
shall execute and deliver to the Collateral Trustee such documents as are necessary or
appropriate to carry out the intent and purposes of this Agreement;

    (ii) Solely for the purpose of enabling the Collateral Trustee to exercise
rights and remedies under this Section 7 and at such time as the Collateral Trustee shall be
lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to the
Collateral Trustee, to the extent it has the right to do so, an irrevocable, nonexclusive
worldwide license (exercisable without payment of royalty or other compensation to such
Grantor), subject, in the case of Trademarks, to sufficient rights to quality control and
inspection in favor of the Trademark Owner to avoid the risk of invalidation of said
Trademarks, to use, operate under, license, or sublicense any Intellectual Property now or
hereafter owned by or licensed to such Grantor.

     Section 8.    COLLATERAL TRUSTEE.

     The Collateral Trustee has been appointed to act as Collateral Trustee hereunder by each
Secured Party either pursuant to the Secured Debt Documents or by their acceptance of

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the benefits hereof. The Collateral Trustee shall be obligated, and shall have the right
hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and
to take or refrain from taking any action (including, without limitation, the release or
substitution of Collateral), solely in accordance with this Agreement and the Collateral Trust
Agreement. Without the written consent of the Collateral Trustee that would be affected thereby,
no amendment, modification, termination, or consent shall be effective if the effect thereof would
release all or substantially all of the Collateral except as expressly provided herein. In
furtherance of the foregoing provisions of this Section, each Secured Party, by its acceptance of
the benefits hereof, agrees that it shall have no right individually to realize upon any of the
Collateral hereunder, it being understood and agreed by such Secured Party that all rights and
remedies hereunder may be exercised solely by the Collateral Trustee for the benefit of each
Secured Party in accordance with the terms of this Section and the Collateral Trustee. Collateral
Trustee may resign or be removed and be replaced in accordance with the Collateral Trust Agreement.

     The Collateral Trustee’s Liens on the Collateral will be released automatically with no
further action on the part of any Person:

	(1)  	in whole, upon (a) payment in full and discharge of all outstanding Secured Debt and (b)
termination or expiration of all commitments to extend credit under all Secured Debt Documents
and the cancellation or termination or cash collateralization (at the lower of (1) 105% of the
aggregate undrawn amount and (2) the percentage of the aggregate undrawn amount required for
release of Liens under the terms of the applicable Secured Debt Documents) of all outstanding
letters of credit issued pursuant to any Secured Debt Documents;

	(2)  	as to any Collateral that is sold, transferred or otherwise disposed of by the Company or any
other Pledgor to a Person that is not (either before or after such sale, transfer or
disposition) the Company or a Restricted Subsidiary of Ziff Davis in a transaction or other
circumstance that complies with the “Asset Sale” provisions of the indenture and is permitted
by all of the other Secured Debt Documents, at the time of such sale, transfer or other
disposition or to the extent of the interest sold, transferred or otherwise disposed of;
provided that the collateral trustee’s Liens upon the Collateral will not be released if the
sale or disposition is subject to Section 5.01 of the Indenture;

	(3)  	as to a release of less than all or substantially all of the Collateral, if consent to the
release of all Secured Liens on such Collateral has been given by an Act of Required
Debtholders; and

	(4)  	as to a release of all or substantially all of the Collateral, if (a) consent to the release
of that Collateral has been given by the requisite percentage or number of holders of each
Series of Secured Debt at the time outstanding as provided for in the applicable Secured Debt
Documents, and (b) the Company has delivered an officers’ certificate to the Collateral
Trustee certifying that all such necessary consents have been obtained.

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          Section 9.    CONTINUING SECURITY INTEREST; TRANSFER OF FIRST LIEN OBLIGATIONS

          This Agreement shall create a continuing security interest in the Collateral and shall remain
in full force and effect until this Agreement is terminated and Collateral released from the
security interest in accordance with the Collateral Trust Agreement. Any other contingent
obligation included in the First Lien Obligations shall be binding upon each Grantor, its
successors and assigns, and inure, together with the rights and remedies of the Collateral Trustee
hereunder, to the benefit of the Collateral Trustee and its successors, transferees and assigns.
Without limiting the generality of the foregoing, but subject to the terms of the Secured Debt
Documents, each Secured Party may assign or otherwise transfer any First Lien Obligations held by
it to any other Person, and such other Person shall thereupon become vested with all the benefits
in respect thereof granted to each Secured Party herein or otherwise.

          Subject to subsections (b), (c) and (d) of Section 10.03 of the Indenture, Collateral may be
released from the Lien and security interest created by the Security Agreements at any time or from
time to time in accordance with the provisions of the Security Agreements. In addition, upon the
request of the Company pursuant to an Officers’ Certificate certifying that all conditions
precedent hereunder have been met and stating whether or not such release is in connection with an
Asset Sale and (at the sole cost and expense of the Company) the Collateral Trustee will release
Collateral that is sold, conveyed or disposed of in compliance with the provisions of the
Indenture; provided that if such sale, conveyance or disposition constitutes an Asset Sale, the
Company will apply the Net Proceeds in accordance with Section 4.10 of the Indenture. Upon receipt
of such Officers’ Certificate the Collateral Trustee shall execute, deliver or acknowledge any
necessary or proper instruments of termination, satisfaction or release to evidence the release of
any Collateral permitted to be released pursuant to the Indenture or the Security Agreements.

     (i) No Collateral may be affirmatively released from the Lien and security interest
created by the Security Agreements pursuant to the provisions of the Security Agreements unless the
certificate required by Section 10.03 of the Indenture has been delivered to the Collateral
Trustee.

     (ii) At any time when a Default or Event of Default has occurred and is continuing
and the maturity of the Notes has been accelerated (whether by declaration or otherwise) and the
Trustee has delivered a notice of acceleration to the Collateral Trustee, no release of Collateral
pursuant to the provisions of the Security Agreements will be effective as against the Holders of
Notes (as defined in the Indenture).

     (iii) The release of any Collateral from the terms of the Indenture and the Security
Agreements will not be deemed to impair the security under the Indenture in contravention of the
provisions hereof if and to the extent the Collateral is released pursuant to the terms of the
Security Agreements. To the extent applicable, the Company will cause TIA § 313(b), relating to
reports, and TIA § 314(d), relating to the release of property or securities from the Lien and
security interest of the Security Agreements and relating to the substitution therefor of any
property or securities to be subjected to the Lien and security interest of the Security
Agreements, to be complied with. Any certificate or opinion required by TIA § 314(d) may be

27

 

made by an Officer of the Company except in cases where TIA § 314(d) requires that such
certificate or opinion be made by an independent Person, which Person will be an independent
engineer, appraiser or other expert selected or approved by the Trustee (as defined in the
Indenture) and the Collateral Trustee in the exercise of reasonable care.

     Section 10.    STANDARD OF CARE; COLLATERAL TRUSTEE MAY PERFORM.

     The powers conferred on the Collateral Trustee hereunder are solely to protect its interest in
the Collateral and the interests of the Secured Parties and shall not impose any duty upon it to
exercise any such powers. Except for the exercise of reasonable care in the custody of any
Collateral in its possession and the accounting for moneys actually received by it hereunder, the
Collateral Trustee 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.
The Collateral Trustee shall be deemed to have exercised reasonable care in the custody and
preservation of Collateral in its possession if such Collateral is accorded treatment substantially
equal to that which the Collateral Trustee accords its own property. Neither the Collateral
Trustee nor any of its directors, officers, employees or agents shall be liable for failure to
demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or
shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of
any Grantor or otherwise. If any Grantor fails to perform any agreement contained herein, the
Collateral Trustee may itself perform, or cause performance of, such agreement, and the expenses of
the Collateral Trustee incurred in connection therewith shall be payable by each Grantor and
pending such payment shall be included in the obligations secured hereby.

     Section 11.    INDEMNITY AND EXPENSES.

     (i) Each Grantor agrees to indemnify each Indemnitee in accordance with the
Collateral Trust Agreement.

     (ii) Expenses. Each Grantor agrees to pay promptly all the actual costs and
reasonable expenses of creating and perfecting Liens in favor of Collateral Trustee, for the
benefit of each Secured Party pursuant hereto, including search, filing and recording fees,
expenses and taxes, stamp or documentary taxes, search fees, title insurance premiums and
reasonable fees, expenses and disbursements of counsel to Collateral Trustee and of counsel
providing any opinions that Collateral Trustee may request in respect of the Collateral or
the Liens created pursuant to the Security Documents; all the actual costs and reasonable
fees, expenses and disbursements of any auditors, accountants, consultants or appraisers;
all the actual costs and reasonable expenses (including the reasonable fees, expenses and
disbursements of any appraisers, consultants, advisors and agents employed or retained by
Collateral Trustee and its counsel) in connection with the custody or preservation of any of
the Collateral; and after the occurrence of a Default or an Event of Default, all costs and
expenses, including reasonable attorneys’ fees (including allocated costs of internal
counsel) and costs of settlement, incurred by Collateral Trustee in enforcing any First Lien
Obligations of or in

28

 

collecting any payments due from any Grantor hereunder or under the other Secured Debt
Documents by reason of such Default or Event of Default (including in connection with the
sale of, collection from, or other realization upon any of the Collateral) or in connection
with any refinancing or restructuring of the credit arrangements provided hereunder in the
nature of a “work-out” or pursuant to any insolvency or bankruptcy cases or proceedings.

     Section 12.    MISCELLANEOUS.

     (a)    Notices. Any notice required or permitted to be given under this Agreement
shall be given in accordance with Section 7.6 of the Collateral Trust Agreement.

     (b)    Amendments and Waivers.

     (i) Collateral Trustee’s Consent. Subject to Section 7.1 of the
Collateral Trust Agreement no amendment, modification, termination or waiver of any
provision of this Agreement, or consent to any departure by any Grantor therefrom, shall in
any event be effective without the written concurrence of the Collateral Trustee.

     (ii) No Waiver; Remedies Cumulative. No failure or delay on the part
of the Collateral Trustee in the exercise of any power, right or privilege hereunder or
under any other Secured Debt Document shall impair such power, right or privilege or be
construed to be a waiver of any default or acquiescence therein, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further exercise
thereof or of any other power, right or privilege. All rights, powers and remedies existing
under this Agreement and the other Secured Debt Documents are cumulative, and not exclusive
of, any rights or remedies otherwise available. Any forbearance or failure to exercise, and
any delay in exercising, any right, power or remedy hereunder shall not impair any such
right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the
further exercise of any such right, power or remedy.

     (c)    Successors and Assigns. This Agreement shall be binding upon the parties
hereto and their respective successors and permitted assigns including all persons who become bound
as debtor to this Agreement. No Grantor shall, without the prior written consent of the Collateral
Trustee, assign any right, duty or obligation hereunder.

     (d)    Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or would otherwise be within the
limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default
if such action is taken or condition exists.

     (e)    Survival of Representations, Warranties and Agreements. All representations,
warranties and agreements made herein shall survive the execution and delivery hereof.

29

 

     (f)    Marshaling; Payments Set Aside. Collateral Trustee shall not be under any
obligation to marshal any assets in favor of any Grantor or any other Person or against or in
payment of any or all of the First Lien Obligations.

     (g)    Severability. In case any provision in or obligation hereunder shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

     (h)    Headings. Section headings herein are included herein for convenience of
reference only and shall not constitute a part hereof for any other purpose or be given any
substantive effect.

     (i)    APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK.

     (j)    CONSENT TO JURISDICTION. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY
GRANTOR ARISING OUT OF OR RELATING HERETO OR ANY OTHER TRANSACTION DOCUMENT, OR ANY OF THE
OBLIGATIONS, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE,
COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH GRANTOR, FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY ACCEPTS GENERALLY AND UNCONDITIONALLY THE
NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;
AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE GRANTOR AT ITS ADDRESS
PROVIDED IN ACCORDANCE WITH SECTION 7.6 OF THE COLLATERAL TRUST AGREEMENT; AGREES THAT SUCH
SERVICE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE GRANTOR IN ANY SUCH
PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY
RESPECT; AND AGREES COLLATERAL TRUSTEE RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER
JURISDICTION.

     (k)    WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER
OR UNDER ANY OF THE OTHER SECURED DEBT DOCUMENTS. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS
AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH

30

 

PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT
EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO
FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER
THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 13(K) AND EXECUTED BY EACH
OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

     (l)    Counterparts. This Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.

     (m)    Effectiveness. This Agreement shall become effective upon the execution of a
counterpart hereof by each of the parties hereto and receipt by Grantors and the Collateral Trustee
of written or telephonic notification of such execution and authorization of delivery thereof.

     (n)    Entire Agreement. This Agreement and the other Secured Debt Documents embody
the entire agreement and understanding between Grantors and the Collateral Trustee and supersede
all prior agreements and understandings between such parties relating to the subject matter hereof
and thereof. Accordingly, the Secured Debt Documents may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties.

31

 

     IN WITNESS WHEREOF, each Grantor and the Collateral Trustee have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly authorized as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	ZIFF DAVIS MEDIA INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Bart Catalane	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name: Bart W. Catalane	 	 
	

	 	 	 	Title: President and Chief Operating Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	ZIFF DAVIS PUBLISHING HOLDINGS INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Bart Catalane	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name: Bart W. Catalane	 	 
	

	 	 	 	Title: President and Chief Operating Officer	 	 
	 
	 	 	 	 	 	 
	 	 	ZIFF DAVIS PUBLISHING INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Bart Catalane	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name: Bart W. Catalane	 	 
	

	 	 	 	Title: President and Chief Operating Officer	 	 
	 
	 	 	 	 	 	 
	 	 	ZIFF DAVIS DEVELOPMENT INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Bart Catalane	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name: Bart W. Catalane	 	 
	

	 	 	 	Title: President and Chief Operating Officer	 	 
	 
	 	 	 	 	 	 
	 	 	ZIFF DAVIS INTERNET INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Bart Catalane	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name: Bart W. Catalane	 	 
	

	 	 	 	Title: President and Chief Operating Officer	 	 

S-VII-1

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK
NATIONAL ASSOCIATION, as Collateral Trustee	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Richard Prokosch	 	 
	 	 	 	 	 	 	 
	

	 	Name: Richard Prokosch	 	 
	

	 	Title: Trust Officer	 	 

S-VII-2

 

EXHIBIT A

PLEDGE SUPPLEMENT

     This PLEDGE SUPPLEMENT, dated [mm/dd/yy], is delivered by [NAME OF GRANTOR OR GRANTORS] a
[NAME OF STATE OF INCORPORATION] [Corporation] (the “Grantor”) pursuant to the Pledge and Security
Agreement, dated as of [mm/dd/yy] (as it may be from time to time amended, restated, modified or
supplemented, the “Security Agreement”), among [NAME OF COMPANY], the other Debtors named therein,
and [NAME OF COLLATERAL TRUSTEE], as the Collateral Trustee. Capitalized terms used herein not
otherwise defined herein shall have the meanings ascribed thereto in the Security Agreement.

     [The][Each] Grantor hereby confirms the grant to the Collateral Trustee set forth in the
Security Agreement of, and does hereby grant to the Collateral Trustee, a security interest in all
of such Grantor’s right, title and interest in and to all [Investment Related Property][Letter of
Credit Rights] including, without limitation, those specified on the Schedule attached hereto and
agrees that such attached schedule shall supplement and become a part of Schedule [III][V] to the
Security Agreement. Grantor represents and warrants that the attached Schedule is a true and
correct list of all [Investment Related Property][Letter of Credit Rights] in which it has rights
and that it has complied with all provisions of the Security Agreement relating thereto and that
the Collateral Trustee has a valid, perfected first priority security interest therein.

     IN WITNESS WHEREOF, New Grantor has caused this Pledge Supplement to be duly executed and
delivered by its duly authorized officer as of [mm/dd/yy].

	 	 	 	 	 	 	 
	 	 	[NAME OF GRANTOR]	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name:
	 	 
	

	 	 	 	Title:	 	 

 

 

EXHIBIT B

JOINDER AGREEMENT

     This JOINDER AGREEMENT, dated [mm/dd/yy], is delivered by [NAME OF NEW GRANTOR] a [NAME OF
STATE OF INCORPORATION] [Corporation] (the “New Grantor”) pursuant to the Pledge and Security
Agreement, dated as of [mm/dd/yy] (as it may be from time to time amended, restated, modified or
supplemented, the “Security Agreement”), among [NAME OF COMPANY], the other Debtors named therein,
and [NAME OF COLLATERAL TRUSTEE], as the Collateral Trustee. Capitalized terms used herein not
otherwise defined herein shall have the meanings ascribed thereto in the Security Agreement.

     New Grantor hereby confirms the grant to the Collateral Trustee set forth in the Security
Agreement of, and does hereby grant to the Collateral Trustee, a security interest in all of New
Grantor’s right, Title and interest in and to all Collateral to secure the First Lien Obligations,
in each case whether now or hereafter existing or in which New Grantor now has or hereafter
acquires an interest and wherever the same may be located. From and after the date hereof, New
Grantor shall be a “Grantor” for all purposes of the Security Agreement. New Grantor hereby makes
all of the representations and warranties set forth in the Security Agreement. New Grantor
represents and warrants that the attached Supplements to Schedules accurately and completely set
forth all additional information required pursuant to the Security Agreement and hereby agrees that
such Supplements to Schedules shall constitute part of the Schedules to the Security Agreement.

     IN WITNESS WHEREOF, New Grantor has caused this Joinder Agreement to be duly executed and
delivered by its duly authorized officer as of [mm/dd/yy].

	 	 	 	 	 	 	 
	 	 	[NAME OF NEW GRANTOR]	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name:
	 	 
	

	 	 	 	Title:

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