Document:

exv10w1

Exhibit 10.1

EXECUTION COPY

COLLATERAL AGREEMENT

dated and effective as of March 4, 2011,

among

CLAIRE’S STORES, INC.,

as Issuer,

THE PLEDGORS PARTY HERETO,

and

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

as Collateral Agent

Notwithstanding anything herein to the contrary, (i) the liens and security interests granted to
the Collateral Agent pursuant to this Agreement are expressly subject and subordinate to the liens
and security interests granted to Credit Suisse AG, Cayman Islands Branch (f/k/a Credit Suisse,
Cayman Islands Branch), as collateral agent (and its permitted successors), for the benefit of the
secured parties referred to below, pursuant to the Guarantee and Collateral Agreement dated as of
May 29, 2007 (as amended, amended and restated, supplemented or otherwise modified from time to
time), from the Issuer and the other “Pledgors” referred to therein, in favor of Credit Suisse AG,
Cayman Islands Branch (f/k/a Credit Suisse, Cayman Islands Branch), as collateral agent for the
benefit of the secured parties referred to therein, and (ii) the exercise of any right or remedy by
the Collateral Agent hereunder is subject to the limitations and provisions of the Intercreditor
Agreement dated as of March 4, 2011 (as amended, restated, supplemented or otherwise modified from
time to time, the “Intercreditor Agreement”), by and among Credit Suisse AG, Cayman Islands
Branch, in its capacity as Credit Agreement Agent, The Bank of New York Mellon Trust Company, N.A.,
in its capacity as Trustee and Collateral Agent, Claire’s Inc., the Issuer and the Subsidiaries
party thereto. In the event of any conflict between the terms of the Intercreditor Agreement and
the terms of this agreement, the terms of the Intercreditor Agreement shall govern.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	Section 1.01. Indenture
	 	 	1	 
	Section 1.02. Other Defined Terms
	 	 	2	 
	ARTICLE II 
	 	 	 	 
	PLEDGE OF SECURITIES
	 	 	 	 
	Section 2.01. Pledge
	 	 	7	 
	Section 2.02. Delivery of the Pledged Collateral
	 	 	8	 
	Section 2.03. Representations, Warranties and Covenants
	 	 	10	 
	Section 2.04. Registration in Nominee Name; Denominations
	 	 	11	 
	Section 2.05. Voting Rights; Dividends and Interest, Etc.
	 	 	12	 
	ARTICLE III 
	 	 	 	 
	SECURITY INTERESTS IN OTHER PERSONAL PROPERTY 
	 	 	 	 
	Section 3.01. Security Interest:
	 	 	14	 
	Section 3.02. Representations and Warranties
	 	 	18	 
	Section 3.04. Other Actions
	 	 	21	 
	Section 3.05. Covenants Regarding Patent, Trademark and Copyright Collateral
	 	 	21	 
	Section 3.06. Further Assurances; Additional Security
	 	 	23	 
	ARTICLE IV
	 	 	 	 
	REMEDIES
	 	 	 	 
	Section 4.01. Remedies Upon Default
	 	 	25	 
	Section 4.02. Application of Proceeds
	 	 	26	 
	Section 4.03. Securities Act, Etc.
	 	 	27	 
	ARTICLE V 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	Section 5.01. Notices
	 	 	28	 
	Section 5.02. Security Interest Absolute
	 	 	28	 
	Section 5.03. Limitation By Law
	 	 	28	 
	Section 5.04. Binding Effect; Several Agreement
	 	 	29	 
	Section 5.05. Successors and Assigns
	 	 	29	 
	Section 5.06. Collateral Agent’s Fees and Expenses; Indemnification
	 	 	29	 
	Section 5.07. Collateral Agent Appointed Attorney-in-Fact
	 	 	30	 

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	 	 	Page	 
	Section 5.08. GOVERNING LAW
	 	 	31	 
	Section 5.09. Waivers; Amendment
	 	 	31	 
	Section 5.10. WAIVER OF JURY TRIAL
	 	 	31	 
	Section 5.11. Severability
	 	 	31	 
	Section 5.12. Counterparts
	 	 	32	 
	Section 5.13. Headings
	 	 	32	 
	Section 5.14. Jurisdiction; Consent to Service of Process
	 	 	32	 
	Section 5.15. Termination or Release
	 	 	32	 
	Section 5.16. Additional Subsidiaries
	 	 	33	 
	ARTICLE VI
	 	 	 	 
	INTERCREDITOR AGREEMENT
	 	 	 	 
	Section 6.01. Intercreditor Agreement Controls
	 	 	34	 
	Section 6.02. Discharge
	 	 	34	 
	ARTICLE VII
	 	 	 	 
	THE COLLATERAL AGENT
	 	 	 	 

	 	 	 

	Schedules
	 	 
	Schedule I
	 	Subsidiary Parties
	Schedule II
	 	Pledged Stock; Debt Securities
	Schedule III
	 	Intellectual Property
	Schedule IV
	 	Filing Jurisdictions
	Schedule V
	 	Commercial Tort Claims
	Schedule VI
	 	Matters Relating to Accounts and Inventory
	Exhibits
	 	 
	Exhibit I
	 	Form of Supplement to the Collateral Agreement

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          COLLATERAL AGREEMENT dated and effective as of March 4, 2011 (this “Agreement”), among
CLAIRE’S STORES, INC., a Florida corporation (the “Issuer”), each Subsidiary of the Company
identified on Schedule I hereto (each such Subsidiary, together with the Issuer and any Subsidiary
of the Company that becomes a party hereto pursuant to Section 5.16 hereof, the “Pledgors,”
and each, a “Pledgor”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as collateral
agent (in such capacity, the “Collateral Agent”) for the Indenture Secured Parties (as
defined below).

          Pursuant to the terms, conditions and provisions of (a) the Indenture dated as of March 4,
2011, among Claire’s Escrow Corporation, a Delaware corporation (“Claire’s Escrow”), and
The Bank of New York Mellon Trust Company, N.A., as trustee (in such capacity, the
“Trustee”) and Collateral Agent, as supplemented by the Supplemental Indenture dated March
4, 2011 among the Issuer, the Issuer’s Subsidiaries named therein, the Trustee and the Collateral
Agent (such agreement, as amended, amended and restated, supplemented or otherwise modified from
time to time, the “Indenture”), and (b) the Purchase Agreement dated February 17, 2011 (as
amended, amended and restated, supplemented or otherwise modified from time to time, the
“Purchase Agreement”) among Claire’s Escrow, the Issuer, the Issuer’s Subsidiaries named
therein and the representatives of the several parties named in Schedule A thereto, the Issuer has
assumed the obligations of Claire’s Escrow with respect to $450,000,000 in aggregate principal
amount of 8.875% Senior Secured Second Lien Notes due 2019 (as such notes may be amended, amended
and restated, supplemented or otherwise modified from time to time, the “Notes”) upon the
terms and subject to the conditions contained therein.

          The Issuer and each other Pledgor will receive substantial benefits from the execution,
delivery and performance of the obligations under the Indenture and the other Noteholder Documents
and each is, therefor, willing to enter into this Agreement.

          This Agreement is given by each Pledgor in favor of the Collateral Agent for the benefit of
the Indenture Secured Parties to secure the payment and performance of all of the Noteholder Claims
(as hereinafter defined).

          It is a requirement of the Indenture and the Purchase Agreement that each Pledgor execute and
deliver the applicable Noteholder Documents, including this Agreement.

          Accordingly, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

          Section 1.01. Indenture. (a) Capitalized terms used in this Agreement and not
otherwise defined herein have the respective meanings assigned thereto in the Indenture. All
capitalized terms defined in the New York UCC (as defined herein) and not defined in this Agreement
have the meanings specified therein. The term “instrument” shall have the meaning specified in
Article 9 of the New York UCC.

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          (b) The rules of construction specified in Section 1.04 of the Indenture also apply to this
Agreement.

          Section 1.02. Other Defined Terms. As used in this Agreement, the following terms
have the meanings specified below:

          “Account Debtor” means any person who is or who may become obligated to any Pledgor
under, with respect to or on account of an Account, Chattel Paper,
General Intangibles, Instruments or Investment Property.

          “Article 9 Collateral” has the meaning assigned to such term in Section 3.01.

          “Claire’s Escrow” has the meaning assigned to such term in the preliminary statement
of this Agreement.

          “Collateral” means the collective reference to Article 9 Collateral and Pledged
Collateral.

          “Collateral Requirement” shall mean the requirement that:

     (a) in the case of any person that becomes a Guarantor under the Indenture after the Issue
Date, the Collateral Agent shall have received a supplement to this Agreement, in the form attached
hereto as Exhibit I, duly executed and delivered on behalf of such Guarantor;

     (b) in the case of any person that becomes a “first tier” Foreign Subsidiary directly owned by
the Issuer or any Pledgor after the Issue Date, subject to Section 3.06(f) hereof, the Collateral
Agent shall have received, as promptly as practicable following such event (unless the Collateral
Agent, in its sole discretion, shall have waived such requirement), a Foreign Pledge Agreement,
duly executed and delivered on behalf of such Foreign Subsidiary and the direct parent company of
such Foreign Subsidiary; provided, that such a pledge would not violate any applicable law
or agreements with other shareholders or joint venture partners;

     (c) after the Issue Date, (i) all the outstanding Equity Interests of (A) any person that
becomes a Guarantor under the Indenture after the Issue Date and (B) subject to Section 3.06(f)
hereof, all the Equity Interests that are acquired by any Pledgor after the Issue Date shall have
been pledged pursuant to this Agreement or a Foreign Pledge Agreement; provided, that in no
event shall more than 65% of the issued and outstanding voting Equity Interests of (1) any “first
tier” Foreign Subsidiary or (2) any “first tier” Qualified CFC Holding Company directly owned by
such Pledgor be pledged to secure the Noteholder Claims, and in no event shall any of the issued
and outstanding Equity Interests of any Foreign Subsidiary that is not a “first tier” Foreign
Subsidiary of a Pledgor or any Qualified CFC Holding Company that is not a “first tier” Subsidiary
of a Pledgor be pledged to secure the Noteholder Claims, and (ii) subject to the Intercreditor
Agreement, the Collateral Agent (or a bailee on behalf of the Collateral Agent) shall have received
all certificates or other instruments (if any) representing such Equity Interests, together with
stock powers or other instruments of transfer with respect thereto endorsed in blank;

     (d) except as otherwise contemplated by any Security Document, all documents and instruments,
including Uniform Commercial Code financing statements, required by law or

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reasonably requested by
the Collateral Agent to be filed, registered or recorded to create the Liens intended to be created
by the Security Documents (in each case, including any supplements thereto) and perfect such Liens
to the extent required by, and with the priority required by, the Security Documents, shall have
been filed, registered or recorded or delivered to the Collateral Agent for filing, registration or
the recording concurrently with, or promptly following, the execution and delivery of each such
Security Document;

     (e) within 30 days after the date hereof, the Collateral Agent shall be listed as a co-loss
payee on property and casualty insurance policies and as an additional insured on liability
insurance policies;

     (f) after the Issue Date, the Collateral Agent shall have received (i) such other Security
Documents as may be required to be delivered pursuant to Section 3.06 hereof, and (ii) upon
reasonable request by the Collateral Agent, evidence of compliance with any other requirements of
Section 3.06 hereof;

     (g) all Indebtedness of the Borrower and each Subsidiary having, in the case of each instance
of Indebtedness, an aggregate principal amount in excess of $5.0 million (other than (A)
intercompany current liabilities incurred in the ordinary course of business in connection with the
cash management operations of the Borrower and the Subsidiaries or (B) to the extent that a pledge
of such promissory note or instrument would violate applicable law) that is owing to any Pledgor
shall be evidenced by a promissory note or an instrument and shall have been pledged pursuant to
this Agreement, and (ii) subject to the Intercreditor Agreement, the Collateral Agent (or a bailee
on behalf of the Collateral Agent) shall have received all such promissory notes or instruments,
together with note powers or other instruments of transfer with respect thereto endorsed in blank;
and

          (h) except as otherwise contemplated by any Security Document, each Pledgor shall have
obtained all consents and approvals required to be obtained by it in connection with (i) the
execution and delivery of all Security Documents (or supplements thereto) to which it is a party
and the granting by it of the Liens thereunder and (ii) the performance of its obligations
thereunder.

          “Copyright License” means any written agreement, now or hereafter in effect, granting
any right to any Pledgor under any Copyright now or hereafter owned by any third party, and all
rights of any Pledgor under any such agreement (including, without limitation, any such rights that
such Pledgor has the right to license).

          “Copyrights” means all of the following now owned or hereafter acquired by any
Pledgor: (a) all copyright rights in any work subject to the copyright laws of the United States
or any other country, whether as author, assignee, transferee or otherwise, (b) all registrations
and applications for registration of any such Copyright in the United States or any other country,
including registrations, supplemental registrations and pending applications for registration in
the United States Copyright Office and the right to obtain all renewals thereof, including those
listed on Schedule III, (c) all claims for, and rights to sue for, past or future
infringements of any of the foregoing and (d) all income, royalties, damages and payments now or
hereafter due and payable
with respect to any of the foregoing, including damages and payments for past or future
infringement thereof.

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          “Credit Agreement Agent” has the meaning assigned to such term in the Intercreditor
Agreement.

          “Discharge” shall mean the satisfaction and discharge (pursuant to Article XII of the
Indenture), defeasance (pursuant to Article VIII of the Indenture) or other satisfaction in full of
the Noteholder Claims.

          “Discharge of Senior Lender Claims” has the meaning assigned to such term in the
Intercreditor Agreement.

          “Federal Securities Laws” has the meaning assigned to such term in Section 4.03.

          “First Priority Designated Agent” has the meaning assigned to such term in the
Intercreditor Agreement.

          “Foreign Pledge Agreement” shall mean a pledge agreement with respect to the Pledged
Collateral that constitutes Equity Interests of a “first tier” Foreign Subsidiary;
provided, that in no event shall more than 65% of the issued and outstanding voting Equity
Interests of such Foreign Subsidiary be pledged to secure the Noteholder Claims.

          “General Intangibles” means all “General Intangibles” as defined in the New York UCC,
including all choses in action and causes of action and all other intangible personal property of
any Pledgor of every kind and nature (other than Accounts) now owned or hereafter acquired by any
Pledgor, including corporate or other business records, indemnification claims, contract rights
(including rights under leases, whether entered into as lessor or lessee, Swap Agreements and other
agreements), Intellectual Property (but excluding “intent-to-use” applications for trademark or
service mark registrations filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051,
unless and until an Amendment to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of
the Lanham Act has been filed, to the extent that, and solely during the period for which, any
assignment of an “intent-to-use” application prior to such filing would violate the Lanham Act),
goodwill, registrations, franchises, tax refund claims and any guarantee, claim, security interest
or other security held by or granted to any Pledgor to secure payment by an Account Debtor of any
of the Accounts.

          “Governmental Authority” shall mean any federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory or legislative body.

          “Indenture” has the meaning assigned to such term in the preliminary statement of this
Agreement.

          “Indenture Secured Parties” has the meaning assigned to such term in the Intercreditor
Agreement.

          “Intellectual Property” means all intellectual property of every kind and nature now
owned or hereafter acquired by any Pledgor, including inventions, designs, Patents,
Copyrights, Trademarks, Patent Licenses, Copyright Licenses, Trademark Licenses, trade

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secrets, domain names, confidential or proprietary technical and business information, know-how,
show-how or other data or information and all related documentation.

          “Intellectual Property Security Agreement” means a security agreement in the form
hereof or a short form hereof.

          “Intercreditor Agreement” means the intercreditor agreement dated as of March 4,
2011, among Claire’s Inc., the Issuer, the other Pledgors, the Credit Agreement Agent, the Trustee
and the Collateral Agent.

          “IP Agreements” means all material Copyright Licenses, Patent Licenses, Trademark
Licenses, and all other agreements, permits, consents, orders and franchises relating to the
license, development, use or disclosure of any material Intellectual Property to which a Pledgor,
now or hereafter, is a party or a beneficiary.

          “Issuer” has the meaning assigned to such term in the preliminary statement of this
Agreement.

          “Material Adverse Effect” means a material adverse effect on the business, property,
operations or condition of the Issuer and the Subsidiaries, taken as a whole, or the validity or
enforceability of any of the material Noteholder Documents or the rights and remedies of the
Collateral Agent, the Trustee and the Holders thereunder.

          “New York UCC” means the Uniform Commercial Code as from time to time in effect in the
State of New York.

          “Noteholder Claims” has the meaning assigned to such term in the Intercreditor
Agreement.

          “Noteholder Documents” has the meaning assigned to such term in the Intercreditor
Agreement.

          “Notes” has the meaning assigned to such term in the preliminary statement of this
Agreement.

          “Patent License” means any written agreement, now or hereafter in effect, granting to
any Pledgor any right to make, use or sell any invention covered by a Patent, now or hereafter
owned by any third party (including, without limitation, any such rights that such Pledgor has the
right to license).

          “Patents” means all of the following now owned or hereafter acquired by any Pledgor:
(a) all letters patent of the United States or the equivalent thereof in any other country or
jurisdiction, including those listed on Schedule III, and all applications for letters
patent of the United States or the equivalent thereof in any other country or jurisdiction,
including those listed on Schedule III, (b) all provisionals, reissues, extensions,
continuations, divisions, continuations-in- part, reexaminations or revisions thereof, and the
inventions disclosed or claimed therein, including the right to make, use, import and/or sell the
inventions disclosed or claimed therein,

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(c) all claims for, and rights to sue for, past or future infringements of any of the
foregoing and (d) all income, royalties, damages and payments now or hereafter due and payable with
respect to any of the foregoing, including damages and payments for past or future infringement
thereof.

          “Permitted Liens” has the meaning assigned to such term in the Indenture.

          “Pledged Collateral” has the meaning assigned to such term in Section 2.01.

          “Pledged Debt Securities” has the meaning assigned to such term in Section 2.01.

          “Pledged Securities” means any promissory notes, stock certificates or other
certificated securities now or hereafter included in the Pledged Collateral, including all
certificates, instruments or other documents representing or evidencing any Pledged Collateral.

          “Pledged Stock” has the meaning assigned to such term in Section 2.01.

          “Pledgor” has the meaning assigned to such term in the preliminary statement of this
Agreement.

          “Qualified CFC Holding Company” shall mean a Wholly-owned Subsidiary of the Issuer (a)
that is a Delaware limited liability company that is treated as a disregarded entity for U.S.
federal income tax purposes, (b) the primary asset of which consists of Equity Interests in either
(i) one or more Foreign Subsidiaries or (ii) one or more other Qualified CFC Holding Companies and
(c) has no outstanding Guarantee of Indebtedness of the Issuer or any Domestic Subsidiary.

          “Real Property” shall mean, collectively, all right, title and interest (including any
leasehold estate) in and to any and all parcels of or interests in real property owned in fee or
leased by any Pledgor, together with, in each case, all easements, hereditaments and appurtenances
relating thereto, and all improvements and appurtenant fixtures incidental to the ownership or
lease thereof.

          “Security Interest” has the meaning assigned to such term in Section 3.01.

          “Senior Lender Claims” has the meaning assigned to such term in the Intercreditor
Agreement.

          “Senior Lender Documents” has the meaning assigned to such term in the Intercreditor
Agreement.

          “Trademark License” means any written agreement, now or hereafter in effect, granting
to any Pledgor any right to use any Trademark now or hereafter owned by any third party (including,
without limitation, any such rights that such Pledgor has the right to license).

          “Trademarks” means all of the following now owned or hereafter acquired by any
Pledgor: (a) all trademarks, service marks, corporate names, company names, business names,
fictitious business names, trade styles, trade dress, logos, other source or business identifiers,
designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all

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registrations thereof (if any), and all registration and recording applications filed in
connection therewith, including registrations and registration applications in the United States
Patent and Trademark Office or any similar offices in any State of the United States or any other
country or any political subdivision thereof (except for “intent-to-use” applications for trademark
or service mark registrations filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051,
unless and until an Amendment to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of
the Lanham Act has been filed, to the extent that any assignment of an “intent-to-use” application
prior to such filing would violate the Lanham Act), and all renewals thereof, including those
listed on Schedule III, (b) all goodwill associated therewith or symbolized thereby, (c)
all claims for, and rights to sue for, past or future infringements of any of the foregoing and (d)
all income, royalties, damages and payments now or hereafter due and payable with respect to any of
the foregoing, including damages and payments for past or future infringement thereof.

ARTICLE II

PLEDGE OF SECURITIES

          Section 2.01. Pledge. Subject to the immediately following paragraph, as security for
the payment or performance, as the case may be, in full of the Noteholder Claims, each Pledgor
hereby assigns and pledges to the Collateral Agent, its successors and permitted assigns, for the
ratable benefit of the Indenture Secured Parties, and hereby grants to the Collateral Agent, its
successors and permitted assigns, for the ratable benefit of the Indenture Secured Parties, a
security interest in all of such Pledgor’s right, title and interest in, to and under (a) the
Equity Interests directly owned by it (including those listed on Schedule II) and any other Equity
Interests obtained in the future by such Pledgor and any certificates representing all such Equity
Interests (the “Pledged Stock”); provided that the Pledged Stock shall not include (i)(A)
more than 65% of the issued and outstanding voting Equity Interests of any “first tier” Foreign
Subsidiary directly owned by such Pledgor, (B) more than 65% of the issued and outstanding voting
Equity Interests of any “first tier” Qualified CFC Holding Company directly owned by such Pledgor,
(C) any issued and outstanding Equity Interest of any Foreign Subsidiary that is not a first tier
Foreign Subsidiary, or (D) any issued and outstanding Equity Interests of any Qualified CFC Holding
Company that is not a “first tier” Qualified CFC Holding Company, (ii) to the extent applicable
law_requires that a Subsidiary of such Pledgor issue directors’ qualifying shares or
similar shares, such shares or nominee or other similar shares, (iii) any Equity Interests with
respect to which a grant of security is not required by reason of Section 3.06 hereof, or (iv) any
Equity Interests of a Subsidiary to the extent that, as of the Issue Date, and for so long as, such
a pledge of such Equity Interests would violate applicable law or an enforceable contractual
obligation binding on or relating to such Equity Interests; (b)(i) the debt obligations listed
opposite the name of such Pledgor on Schedule II, (ii) any debt securities in the future issued to
such Pledgor and (iii) the certificates, promissory notes and any other instruments, if any,
evidencing such debt securities (the “Pledged Debt Securities”); (c) subject to Section
2.05 hereof, all payments of principal or interest, dividends, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of, in exchange for or
upon the conversion of, and all other proceeds received in respect of, the property referred to in

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clauses (a) and (b) above; (d) subject to Section 2.05 hereof, all rights and privileges of such
Pledgor with respect to the securities and other property referred to in clauses (a), (b) and
(c) above; and (e) all proceeds of any of the foregoing (the items referred to in clauses (a)
through (e) above being collectively referred to as the “Pledged Collateral”).

          The securities of a Subsidiary of the Company will constitute Pledged Collateral only to the
extent that such securities can secure the Noteholder Claims without Rule 3-16 of Regulation S-X
under the Securities Act (or any other law, rule or regulation) requiring separate financial
statements of such Subsidiary to be filed with the SEC (or any other governmental agency). In
addition, notwithstanding anything to the contrary provided herein, in the event that Rule 3-16 of
Regulation S-X under the Securities Act is amended, modified or interpreted by the SEC to require
(or is replaced with another rule or regulation, or any other law, rule or regulation is adopted,
which would require) the filing with the SEC (or any other governmental agency) of separate
financial statements of any Subsidiary of the Company due to the fact that such Subsidiary’s
securities secure the Noteholder Claims, then the securities of such Subsidiary will not be subject
to the Liens securing the Noteholder Claims and will automatically be deemed not to be part of the
Pledged Collateral but only to the extent necessary not to be subject to such requirement and only
for so long as required to not be subject to the requirement. In such event, this Agreement may be
amended or modified, without the consent of any Indenture Secured Party, to the extent necessary to
release the security interests in favor of the Collateral Agent on the Equity Interests or other
securities that are so deemed to no longer constitute part of the Pledged Collateral for the
relevant Noteholder Claim. In the event that Rule 3-16 of Regulation S-X under the Securities Act
is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or
regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s
securities to secure the Noteholder Claims in excess of the amount then pledged without the filing
with the SEC (or any other governmental agency) of separate financial statements of such
Subsidiary, then the securities of such Subsidiary will automatically be deemed to be a part of the
Pledged Collateral but only to the extent permitted to not be subject to any such financial
statement requirement. In such event, this Agreement may be amended or modified, without the
consent of any Indenture Secured Party, to the extent necessary to subject to the Liens under the
Pledged Collateral such additional securities. In accordance with the limitations set forth
herein, as of the date hereof, the Pledged Collateral will include the securities of the
Subsidiaries only to the extent that the applicable value of such securities (on a
Subsidiary-by-Subsidiary basis) is less than twenty percent (20%) of the aggregate principal amount
of the Notes (including any additional Notes) outstanding.

          TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest, powers,
privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its
successors and permitted assigns, for the ratable benefit of the Indenture Secured Parties,
forever; subject, however, to the terms, covenants and conditions hereinafter set
forth.

          Section 2.02. Delivery of the Pledged Collateral. (a) Subject to the terms of the
Intercrditor Agreement, each Pledgor agrees promptly to deliver or cause to be delivered to the
Collateral Agent, for the ratable benefit of the Indenture Secured Parties, any and all Pledged
Securities to the extent such Pledged Securities are either (i) Equity Interests or (ii) promissory
notes or other instruments evidencing Indebtedness required to be delivered pursuant to

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paragraph (b) of this Section
2.02. Subject to the terms of the Intercreditor Agreement, if any Pledged Stock that is
uncertificated on the date hereof shall hereafter become certificated, the applicable Pledgor shall
promptly cause the certificate or certificates representing Pledged Stock to be delivered to the
Collateral Agent, as agent for the Indenture Secured Parties, together with the accompanying stock
powers or other documentation required by Section 2.02(c). None of the Pledgors shall permit any
other party to “control” (for purposes of Section 8-106 of the New York UCC (or any analogous
provision of the Uniform Commercial Code in effect in the jurisdiction whose law applies)) any
uncertificated securities that constitute Pledged Collateral other than the Collateral Agent, as
agent for the Indenture Secured Parties, and the First Priority Designated Agent.

          (b) To the extent permitted by and subject to the terms of the Intercreditor Agreement, each
Pledgor will cause any Indebtedness for borrowed money having an aggregate principal amount in
excess of $5.0 million (other than (i) intercompany current liabilities incurred in the ordinary
course of business in connection with the cash management operations of the Issuer and its
Subsidiaries or (ii) to the extent that a pledge of such promissory note or instrument would
violate applicable law) owed to such Pledgor by any person to be evidenced by a duly executed
promissory note that is pledged and delivered to the Collateral Agent, for the ratable benefit of
the Indenture Secured Parties, pursuant to the terms hereof. Subject to the terms of the
Intercreditor Agreement, to the extent any such promissory note is a demand note, each Pledgor
party thereto agrees, if requested by the Collateral Agent, to immediately demand payment
thereunder upon an Event of Default specified under Section 6.01(i), (ii), (iv), (vii) or (viii) of
the Indenture unless such demand would not be commercially reasonable or would otherwise expose
such Pledgor to liability to the maker.

          (c) Subject to the terms of the Intercreditor Agreement, upon delivery to the Collateral
Agent, (i) any Pledged Securities required to be delivered pursuant to the foregoing paragraphs (a)
and (b) of this Section 2.02 shall be accompanied by stock powers or note powers, as applicable,
duly executed in blank or other instruments of transfer and such other instruments and documents as
the Collateral Agent may reasonably request and (ii) all other property comprising part of the
Pledged Collateral delivered pursuant to the terms of this Agreement shall be accompanied to the
extent necessary to perfect the security interest in or allow realization on the Pledged Collateral
by proper instruments of assignment duly executed by the applicable Pledgor and such other
instruments or documents (including issuer acknowledgments in respect of uncertificated securities)
as the Collateral Agent may reasonably request. Each delivery of Pledged Securities shall be
accompanied by a schedule describing the securities, which schedule shall be attached hereto as
Schedule II (or a supplement to Schedule II, as applicable) and made a part hereof;
provided that failure to attach any such schedule hereto shall not affect the validity of
such pledge of such Pledged Securities. Each schedule so delivered shall supplement any prior
schedules so delivered.

          (d) To the extent permitted by and subject to the terms of the Intercreditor Agreement, in the
event any Pledged Securities constitute uncertificated securities, each Pledgor shall either (i)
cause the issuer to agree to comply with instructions from the Collateral Agent without further
consent of any Pledgor or (ii) cause the issuer to register the Collateral Agent as the registered
owner of such uncertificated security.

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          Section 2.03. Representations, Warranties and Covenants. The Pledgors, jointly and
severally, represent, warrant and covenant to and with the Collateral Agent, for the ratable
benefit of the Indenture Secured Parties, that:

          (a) Schedule II correctly sets forth the percentage of the issued and outstanding
shares of each class of the Equity Interests of the issuer thereof represented by such Pledged
Stock and includes all Equity Interests, debt securities and promissory notes or instruments
evidencing Indebtedness required to be (i) pledged in order to satisfy the Collateral Requirement,
or (ii) delivered pursuant to Section 2.02(b);

          (b) the Pledged Stock and Pledged Debt Securities (solely with respect to Pledged Debt
Securities issued by a person that is not a Subsidiary of the Issuer or an Affiliate of any such
subsidiary, to the best of each Pledgor’s knowledge) have been duly and validly authorized and
issued by the issuers thereof and (i) in the case of Pledged Stock, are fully paid and
nonassessable (other than with respect to Pledged Stock consisting of membership interests of
limited liability companies to the extent provided in Sections 18-502 and 18-607 of the Delaware
Limited Liability Company Act) and (ii) in the case of Pledged Debt Securities (solely with respect
to Pledged Debt Securities issued by a person that is not a Subsidiary of the Issuer or an
Affiliate of any such subsidiary, to the best of each Pledgor’s knowledge) are legal, valid and
binding obligations of the issuers thereof, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, general equitable principles (whether considered in a proceeding at
law or in equity) and an implied covenant of good faith and fair dealing;

          (c) except for the security interests granted hereunder, each Pledgor (i) is and, subject to
any transfers made in compliance with the Indenture, will continue to be the direct owner,
beneficially and of record, of the Pledged Securities indicated on Schedule II as owned by
such Pledgor, (ii) holds the same free and clear of all Liens, other than Permitted Liens, (iii)
will make no assignment, pledge, hypothecation or transfer of, or create or permit to exist any
security interest in or other Lien on, the Pledged Collateral, other than pursuant to a transaction
permitted by the Indenture and other than Permitted Liens and (iv) subject to the rights of such
Pledgor under the Noteholder Documents to dispose of Pledged Collateral, will use commercially
reasonable efforts to defend its title or interest hereto or therein against any and all Liens
(other than Permitted Liens), however arising, of all persons;

          (d) other than as set forth in the Indenture, and except for restrictions and limitations
imposed by the Noteholder Documents or securities laws generally or otherwise permitted to exist
pursuant to the terms of the Indenture, the Pledged Stock (other than partnership interests) is and
will continue to be freely transferable and assignable, and none of the Pledged Stock is or will be
subject to any option, right of first refusal, shareholders agreement, charter or by-law provisions
or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the
pledge of such Pledged Stock hereunder, the sale or disposition thereof pursuant hereto or the
exercise by the Collateral Agent of rights and remedies hereunder;

          (e) each Pledgor has the power and authority to pledge the Pledged Collateral pledged by it
hereunder in the manner hereby done or contemplated;

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          (f) other than as set forth in the Indenture, no consent or approval of any Governmental
Authority, any securities exchange or any other person was or is necessary to the validity of the
pledge effected hereby (other than such as have been obtained and are in full force and effect);

          (g) by virtue of the execution and delivery by the Pledgors of this Agreement and the Foreign
Pledge Agreements, when any Pledged Securities (including Pledged Stock of any Domestic Subsidiary,
any Qualified CFC Holding Company or any foreign stock covered by a Foreign Pledge Agreement) are
delivered to the Collateral Agent, for the ratable benefit of the Indenture Secured Parties, in
accordance with this Agreement and a financing statement covering such Pledged Securities is filed
in the appropriate filing office, the Collateral Agent will obtain, for the ratable benefit of the
Indenture Secured Parties, a legal, valid and perfected lien upon and security interest in such
Pledged Securities under the New York UCC, subject only to Permitted Liens, as security for the
payment and performance of the Noteholder Claims;

          (h) each Pledgor that is an issuer of the Pledged Collateral confirms that it has received
notice of the security interest granted hereunder and consents to such security interest and agrees
to transfer record ownership of the securities issued by it in connection with any request by the
Collateral Agent; and

          (i) the Pledgors shall not amend, or permit to be amended, the limited liability company
agreement (or operating agreement or similar agreement) or partnership agreement of any Subsidiary
of any Pledgor whose Equity Interests are, or are required to be, Collateral in a manner to cause
such Equity Interests to not constitute a security under Section 8-103 of the New York UCC or the
corresponding code or statute of any other applicable jurisdiction unless such Pledgor shall have
first delivered 30 days written notice to the Collateral Agent and shall have taken all actions
contemplated hereby and as otherwise reasonably required by the Collateral Agent to maintain the
security interest of the Collateral Agent therein as a valid, perfected, second priority security
interest.

          Section 2.04. Registration in Nominee Name; Denominations. To the extent permitted by
and subject to the Intercreditor Agreement, the Collateral Agent, on behalf of the Indenture
Secured Parties, shall have the right (in its sole and absolute discretion) to hold the Pledged
Securities in the name of the applicable Pledgor, endorsed or assigned in blank or in favor of the
Collateral Agent or, if an Event of Default shall have occurred and be continuing, in its own name
as pledgee or the name of a nominee (as pledgee or as sub-agent). Each Pledgor will promptly give
to the Collateral Agent copies of any notices or other communications received by it with respect
to Pledged Securities registered in the name of such Pledgor. To the extent permitted by and
subject to the Intercreditor Agreement, if an Event of Default shall have occurred and be
continuing, the Collateral Agent shall have the right to exchange the certificates representing
Pledged Securities for certificates of smaller or larger denominations for any purpose consistent
with this Agreement. To the extent permitted by and subject to the Intercreditor Agreement, each
Pledgor shall use its commercially reasonable efforts to cause any issuer of Pledged Securities
that is not a party to this Agreement to comply with a request by the Collateral Agent, pursuant to
this Section 2.04, to exchange certificates representing Pledged Securities of such issuer for
certificates of smaller or larger denominations.

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          Section 2.05. Voting Rights; Dividends and Interest, Etc. (a) Unless and until an
Event of Default shall have occurred and be continuing and the Collateral Agent shall have given
notice to the relevant Pledgors of the Collateral Agent’s intention to exercise its rights
hereunder (to the extent permitted by the Intercreditor Agreement):

     (i) Each Pledgor shall be entitled to exercise any and all voting and/or other
consensual rights and powers inuring to an owner of Pledged Collateral or any part thereof
for any purpose consistent with the terms of this Agreement, the Indenture and the other
Noteholder Documents; provided that, except as permitted under the Indenture, such
rights and powers shall not be exercised in any manner that could materially and adversely
affect the rights inuring to a holder of any Pledged Collateral, the rights and remedies of
any of the Collateral Agent or the other Indenture Secured Parties under this Agreement, the
Indenture or any other Noteholder Document or the ability of the Indenture Secured Parties
to exercise the same.

     (ii) The Collateral Agent shall promptly execute and deliver to each Pledgor, or cause
to be executed and delivered to such Pledgor, all such proxies, powers of attorney and other
instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor
to exercise the voting and/or consensual rights and powers it is entitled to exercise
pursuant to subparagraph (i) above.

     (iii) Each Pledgor shall be entitled to receive and retain any and all dividends,
interest, principal and other distributions paid on or distributed in respect of the Pledged
Collateral to the extent and only to the extent that such dividends, interest, principal and
other distributions are permitted by, and otherwise paid or distributed in accordance with,
the terms and conditions of the Indenture, the other Noteholder Documents and applicable
laws; provided that (A) any noncash dividends, interest, principal or other
distributions, payments or other consideration in respect thereof, including any rights to
receive the same to the extent not so distributed or paid, that would constitute Pledged
Securities, whether resulting from a subdivision, combination or reclassification of the
outstanding Equity Interests of the issuer of any Pledged Securities, received in exchange
for Pledged Securities or any part thereof, or in redemption thereof, as a result of any
merger, consolidation, acquisition or other exchange of assets to which such issuer may be a
party or otherwise and (B) any non-cash dividends and other distributions paid or payable in
respect of any Pledged Securities that would constitute Pledged Securities in connection
with a partial or total liquidation or dissolution or in connection with a reduction of
capital, capital surplus or paid in surplus, shall be and become part of the Pledged
Collateral, and, if received by any Pledgor, shall not be commingled by such Pledgor with
any of its other funds or property but, subject to the Intercreditor Agreement, shall be
held separate and apart therefrom, shall be held in trust for the benefit of the Collateral
Agent, for the ratable benefit of the Indenture Secured Parties, and shall be forthwith
delivered to the Collateral Agent, for the ratable benefit of the Indenture Secured Parties,
in the same form as so received (duly endorsed by such Pledgor).

          (b) Subject to the terms of the Intercreditor Agreement, upon the occurrence and during the
continuance of an Event of Default and after notice by the Collateral Agent to the

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Issuer of the Collateral Agent’s intention to exercise its rights hereunder, all rights of any
Pledgor to dividends, interest, principal or other distributions that such Pledgor is authorized to
receive pursuant to paragraph (a)(iii) of this Section 2.05 shall cease, and all such rights shall
thereupon become vested, for the ratable benefit of the Indenture Secured Parties, in the
Collateral Agent which shall have the sole and exclusive right and authority to receive and retain
such dividends, interest, principal or other distributions; provided, however, that even
after the occurrence of an Event of Default, any Pledgor may continue to exercise dividend and
distribution rights solely to the extent permitted under Sections 4.07(b)(xii) and 4.07(b)(xiii)(A)
of the Indenture. Subject to the Intercreditor Agreement, all dividends, interest, principal or
other distributions received by any Pledgor contrary to the provisions of this Section 2.05 shall
not be commingled by such Pledgor with any of its other funds or property but shall be held
separate and apart therefrom, shall be held in trust for the benefit of the Collateral Agent, for
the ratable benefit of the Indenture Secured Parties, and shall be forthwith delivered to the
Collateral Agent, for the ratable benefit of the Indenture Secured Parties, in the same form as so
received (endorsed by such Pledgor). Any and all money and other property paid over to or received
by the Collateral Agent pursuant to the provisions of this paragraph (b) shall be retained by the
Collateral Agent in an account to be established by the Collateral Agent upon receipt of such money
or other property and shall be applied in accordance with the provisions of Section 4.02 hereof.
After all Events of Default have been cured or waived and the Issuer has delivered to the
Collateral Agent a certificate to that effect, the Collateral Agent shall promptly repay to each
Pledgor (without interest) all dividends, interest, principal or other distributions that such
Pledgor would otherwise be permitted to retain pursuant to the terms of paragraph (a)(iii) of this
Section 2.05 and that remain in such account.

          (c) Subject to the terms of the Intercreditor Agreement, upon the occurrence and during the
continuance of an Event of Default and after notice by the Collateral Agent to the Issuer of the
Collateral Agent’s intention to exercise its rights hereunder, all rights of any Pledgor to
exercise the voting and/or consensual rights and powers it is entitled to exercise pursuant to
paragraph (a)(i) of this Section 2.05, and the obligations of the Collateral Agent under paragraph
(a)(ii) of this Section 2.05, shall cease, and all such rights shall thereupon become vested in the
Collateral Agent, for the ratable benefit of the Indenture Secured Parties, which shall have the
sole and exclusive right and authority to exercise such voting and consensual rights and powers;
provided that, subject to the terms of the Intercreditor Agreement and the Indenture,
unless the Collateral Agent shall have received written objections from at least a majority of the
Holders of the Notes then outstanding, the Collateral Agent shall have the right from time to time
following and during the continuance of an Event of Default to permit the Pledgors to exercise such
rights. After all Events of Default have been cured or waived and the Issuer has delivered to the
Collateral Agent a certificate to that effect, each Pledgor shall have the right to exercise the
voting and/or consensual rights and powers that such Pledgor would otherwise be entitled to
exercise pursuant to the terms of paragraph (a)(i) above.

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ARTICLE III

SECURITY INTERESTS IN OTHER PERSONAL PROPERTY

          Section 3.01. Security Interest. (a) As security for the payment or performance when
due (whether at the stated maturity, by acceleration or otherwise), as the case may be, in full of
the Noteholder Claims, each Pledgor hereby assigns and pledges to the Collateral Agent, its
successors and permitted assigns, for the ratable benefit of the Indenture Secured Parties, and
hereby grants to the Collateral Agent, its successors and permitted assigns, for the ratable
benefit of the Indenture Secured Parties, a security interest (the “Security Interest”) in
all right, title and interest in or to any and all of the following assets and properties now owned
or at any time hereafter acquired by such Pledgor or in which such Pledgor now has or at any time
in the future may acquire any right, title or interest (collectively, the “Article 9
Collateral”):

          (i) all Accounts;

          (ii) all Chattel Paper;

          (iii) all Documents;

          (iv) all Equipment;

          (v) all General Intangibles;

          (vi) all Instruments;

          (vii) all Inventory;

          (viii) all Investment Property;

          (ix) all Letter of Credit Rights;

          (x) all Commercial Tort Claims;

        (xi) all other personal property not otherwise described above (except for property
specifically excluded from any defined term used in any of the foregoing clauses);

        (xii) all books and records pertaining to the Article 9 Collateral; and

        (xiii) to the extent not otherwise included, all proceeds, Supporting Obligations and
products of any and all of the foregoing and all collateral security and guarantees given by
any person with respect to any of the foregoing.

Notwithstanding anything to the contrary in this Agreement, this Agreement shall not constitute a
grant of a security interest in (a) any vehicle covered by a certificate of title or ownership,
whether now owned or hereafter acquired, (b) any assets (including Equity Interests), whether now
owned or hereafter acquired, with respect to which the Collateral Requirement or the other

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paragraphs of Section 3.06 hereof would not be required to be satisfied by reason of Section
3.06(f) hereof if hereafter acquired, (c) any property excluded from the definition of Pledged
Collateral by virtue of the proviso to Section 2.01 hereof, (d) any Letter of Credit Rights to the
extent any Pledgor is required by applicable law to apply the proceeds of a drawing of such Letter
of Credit for a specified purpose, (e) any Pledgor’s right, title or interest in any license,
contract or agreement to which such Pledgor is a party or any of its right, title or interest
thereunder to the extent, but only to the extent, that such a grant would, under the terms of such
license, contract or agreement, result in a breach of the terms of, or constitute a default under,
or result in the abandonment, invalidation or unenforceability of, any license, contract or
agreement to which such Pledgor is a party (other than to the extent that any such term would be
rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the New York UCC or any
other applicable law (including, without limitation, Title 11 of the United States Code) or
principles of equity); provided that immediately upon the ineffectiveness, lapse or
termination of any such provision, the Collateral shall include, and such Pledgor shall be deemed
to have granted a security interest in, all such rights and interests as if such provision had
never been in effect; (f) any Equipment owned by any Pledgor that is subject to a purchase money
lien or a Capital Lease Obligation if the contract or other agreement in which such Lien is granted
(or the documentation providing for such Capital Lease Obligation) prohibits or requires the
consent of any person other than the Pledgors as a condition to the creation of any other security
interest on such Equipment or (g) any Equity Interests or other securities of any of the Pledgors
to the extent that the pledge of such securities results in the Issuer’s being required to file
separate financial statements of such Pledgor with the SEC, but only to the extent necessary not to
be subject to such requirement and only for so long as such requirement is in existence.

          (b) Each Pledgor hereby irrevocably authorizes the Collateral Agent at any time and from time
to time to file in any relevant jurisdiction any initial financing statements (including fixture
filings) with respect to the Article 9 Collateral or any part thereof and amendments thereto that
contain the information required by Article 9 of the Uniform Commercial Code of each applicable
jurisdiction for the filing of any financing statement or amendment, including (i) whether such
Pledgor is an organization, the type of organization and any organizational identification number
issued to such Pledgor, (ii) in the case of a financing statement filed as a fixture filing, a
sufficient description of the real property to which such Article 9 Collateral relates and (iii) a
description of collateral that describes such property in any other manner as the Collateral Agent
may reasonably determine is necessary or advisable to ensure the perfection of the security
interest in the Article 9 Collateral granted under this Agreement, including describing such
property as “all assets” or “all property”. Each Pledgor agrees to provide such information to the
Collateral Agent promptly upon request.

          The Collateral Agent is further authorized to file with the United States Patent and Trademark
Office or United States Copyright Office (or any successor office) such documents as may be
reasonably necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing
or protecting the Security Interest granted by each Pledgor, without the signature of such Pledgor,
and naming such Pledgor or the Pledgors as debtors and the Collateral Agent as secured party.
Notwithstanding anything to the contrary herein, no Pledgor shall be required to take any action
under the laws of any jurisdiction other than the United States (or any political subdivision
thereof) and its territories and possessions for the purpose of perfecting the Security

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Interest in any Article 9 Collateral of such Pledgor constituting Patents, Trademarks or
Copyrights unless required by the Collateral Agent in its reasonable discretion.

          (c) The Security Interest is granted as security only and shall not subject the Collateral
Agent or any other Indenture Secured Party to, or in any way alter or modify, any obligation or
liability of any Pledgor with respect to or arising out of the Article 9 Collateral.

          Section 3.02. Representations and Warranties. The Pledgors jointly and severally
represent and warrant to the Collateral Agent and the Indenture Secured Parties that:

          (a) Each Pledgor has good and valid rights in and title to the Article 9 Collateral with
respect to which it has purported to grant a Security Interest hereunder and has full power and
authority to grant to the Collateral Agent the Security Interest in such Article 9 Collateral
pursuant hereto and to execute, deliver and perform its obligations in accordance with the terms of
this Agreement, without the consent or approval of any other person other than any consent or
approval that has been obtained and is in full force and effect or has otherwise been disclosed
herein or in the Indenture.

          (b) The information set forth in the schedules attached hereto is correct and complete, in all
material respects, as of the Issue Date. The Uniform Commercial Code financing statements
(including fixture filings, as applicable) or other appropriate filings, recordings or
registrations containing a description of the Article 9 Collateral that have been prepared by the
Collateral Agent for filing in each governmental, municipal or other office specified in
Schedule IV (or specified by notice from the Issuer to the Collateral Agent after the Issue
Date in the case of filings, recordings or registrations required by Section 3.06 hereof)
constitute all the filings, recordings and registrations (except to the extent that filings are
required to be made in the United States Patent and Trademark Office and the United States
Copyright Office, or any similar office in any other jurisdiction, in order to perfect the Security
Interest in Article 9 Collateral consisting of United States Patents, United States registered
Trademarks and United States registered Copyrights) that are necessary to publish notice of and
protect the validity of and to establish a legal, valid and perfected security interest in favor of
the Collateral Agent (for the ratable benefit of the Indenture Secured Parties) in respect of all
Article 9 Collateral in which the Security Interest may be perfected by filing, recording or
registration in the United States (or any political subdivision thereof) and its territories and
possessions, and no further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary in any such jurisdiction, except as provided under applicable law with
respect to the filing of continuation statements or amendments. Each Pledgor represents and
warrants that a fully executed Intellectual Property Security Agreement containing a description of
all Article 9 Collateral consisting of Intellectual Property with respect to United States Patents
(and Patents for which United States applications are pending), United States registered Trademarks
(and Trademarks for which United States registration applications are pending) and United States
registered Copyrights (and Copyrights for which United States registration applications are
pending) has been delivered to the Collateral Agent for recording with the United States Patent and
Trademark Office and the United States Copyright Office pursuant to 35 U.S.C. § 261, 15 U.S.C. §
1060 or 17 U.S.C. § 205 and the regulations thereunder, as applicable, and reasonably requested by
the Collateral Agent, to protect the validity of and to establish a legal, valid and perfected
security interest in favor of the Collateral Agent, for the ratable benefit of the Indenture

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Secured Parties, in respect of all Article 9 Collateral consisting of such Intellectual
Property in which a security interest may be perfected by recording with the United States Patent
and Trademark Office and the United States Copyright Office, and no further or subsequent filing,
refiling, recording, rerecording, registration or reregistration is necessary (other than the
Uniform Commercial Code financings statements referred to above, and other than such actions as are
necessary to perfect the Security Interest with respect to any Article 9 Collateral consisting of
United States Patents, Trademarks and Copyrights (or registration or application for registration
thereof) acquired or developed after the date hereof).

          (c) The Security Interest constitutes (i) a legal and valid security interest in all the
Article 9 Collateral securing the payment and performance of the Noteholder Claims, (ii) subject to
the filings described in Section 3.02(b), a perfected security interest in all Article 9 Collateral
in which a security interest may be perfected by filing, recording or registering a financing
statement or analogous document in the United States (or any political subdivision thereof) and its
territories and possessions pursuant to the Uniform Commercial Code or other applicable law in such
jurisdictions and (iii) a security interest that shall be perfected in all Article 9 Collateral in
which a security interest may be perfected upon the receipt and recording of the Intellectual
Property Security Agreement with the United States Patent and Trademark Office and the United
States Copyright Office, as applicable. The Security Interest is and shall be prior to any other
Lien on any of the Article 9 Collateral other than Permitted Liens.

          (d) The Article 9 Collateral is owned by the Pledgors free and clear of any Lien, other than
Permitted Liens. None of the Pledgors has filed or consented to the filing of (i) any financing
statement or analogous document under the Uniform Commercial Code or any other applicable laws
covering any Article 9 Collateral, (ii) any assignment in which any Pledgor assigns any Article 9
Collateral or any security agreement or similar instrument covering any Article 9 Collateral with
the United States Patent and Trademark Office or the United States Copyright Office or (iii) any
assignment in which any Pledgor assigns any Article 9 Collateral or any security agreement or
similar instrument covering any Article 9 Collateral with any foreign governmental, municipal or
other office, which financing statement or analogous document, assignment, security agreement or
similar instrument is still in effect, except, in each case, for Permitted Liens.

          (e) None of the Pledgors holds any Commercial Tort Claim individually in excess of $5.0
million as of the Issue Date except as indicated on Schedule V.

          (f) Except as set forth in Schedule VI, as of the Issue Date, all Accounts have been
originated by the Pledgors and all Inventory has been produced or acquired by the Pledgors in the
ordinary course of business.

          (g) As to itself and its Article 9 Collateral consisting of Intellectual Property (the
“Intellectual Property Collateral”), to the best of each Pledgor’s knowledge:

          (i) Schedule III hereto includes all of the material Patents, Trademarks,
Copyrights owned by such Pledgor as of the date hereof.

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     (ii) The Intellectual Property Collateral is subsisting and has not been adjudged
invalid or unenforceable in whole or part (except for office actions issued in the ordinary
course by the United States Patent and Trademark Office or any similar office in any foreign
jurisdiction), and, to the best of such Pledgor’s knowledge, is valid and enforceable,
except as would not reasonably be expected to have a Material Adverse Effect. Such Pledgor
is not aware of any uses of any item of Intellectual Property Collateral that would be
expected to lead to such item becoming invalid or unenforceable, except as would not
reasonably be expected to have a Material Adverse Effect.

     (iii) Such Pledgor has made or performed all commercially reasonable acts, including
without limitation filings, recordings and payment of all required fees and taxes, required
to maintain and protect its interest in each and every item of Intellectual Property
Collateral in full force and effect in the United States and such Pledgor has used proper
statutory notice in connection with its use of each Patent, Trademark and Copyright in the
Intellectual Property Collateral, in each case, except to the extent that the failure to do
so would not reasonably be expected to have a Material Adverse Effect.

     (iv) With respect to each IP Agreement, the absence, termination or violation of which
would reasonably be expected to have a Material Adverse Effect: (A) such Pledgor has not
received any notice of termination or cancellation under such IP Agreement; (B) such Pledgor
has not received any notice of a breach or default under such IP Agreement, which breach or
default has not been cured or waived; and (C) neither such Pledgor nor any other party to
such IP Agreement is in breach or default thereof in any material respect, and no event has
occurred that, with notice or lapse of time or both, would constitute such a breach or
default or permit termination, modification or acceleration under such IP Agreement.

     (v) Except as would not reasonably be expected to have a Material Adverse Effect, no
Pledgor or Intellectual Property Collateral is subject to any outstanding consent,
settlement, decree, order, injunction, judgment or ruling restricting the use of any
Intellectual Property Collateral or that would impair the validity or enforceability of such
Intellectual Property Collateral.

          Section 3.03. Covenants. (a) Each Pledgor agrees to provide at least 10 days’ prior
written notice to the Collateral Agent of any change (i) in its corporate or organization name,
(ii) in its identity or type of organization or corporate structure, (iii) in its Federal Taxpayer
Identification Number or organizational identification number or (iv) in its “location” (determined
as provided in UCC Section 9-307). Each Pledgor agrees promptly to provide the Collateral Agent
with certified organizational documents reflecting any of the changes described in the immediately
preceding sentence. Each Pledgor agrees not to effect or permit any change referred to in the
first sentence of this paragraph (a) unless all filings have been made, or will have been made
within any applicable statutory period, under the Uniform Commercial Code or otherwise that are
required in order for the Collateral Agent to continue at all times following such change to have a
valid, legal and perfected second priority security interest in all the Article 9 Collateral, for
the ratable benefit of the Indenture Secured Parties. Each Pledgor agrees promptly to notify the
Collateral Agent if any material portion of the Article 9 Collateral owned or held by such Pledgor
is damaged or destroyed.

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          (b) Subject to the rights of such Pledgor under the Noteholder Documents to dispose of
Collateral, each Pledgor shall, at its own expense, use commercially reasonable efforts to defend
title to the Article 9 Collateral against all persons and to defend the Security Interest of the
Collateral Agent, for the ratable benefit of the Indenture Secured Parties, in the Article 9
Collateral and the priority thereof against any Lien that is not a Permitted Lien.

          (c) Each Pledgor agrees, at its own expense, to execute, acknowledge, deliver and cause to be
duly filed all such further instruments and documents and take all such actions as the Collateral
Agent may from time to time reasonably request to better assure, preserve, protect and perfect the
Security Interest and the rights and remedies created hereby, including the payment of any fees and
taxes required in connection with the execution and delivery of this Agreement and the granting of
the Security Interest and the filing of any financing statements (including fixture filings) or
other documents in connection herewith or therewith. Subject to the Intercreditor Agreement, any
amount payable under or in connection with any of the Article 9 Collateral that is in excess of
$5.0 million shall be or become evidenced by any promissory note or other instrument, such note or
instrument shall be promptly pledged and delivered to the Collateral Agent, for the ratable benefit
of the Indenture Secured Parties, duly endorsed by the applicable Pledgor.

          Without limiting the generality of the foregoing, each Pledgor hereby authorizes the
Collateral Agent, with prompt notice thereof to the Pledgors, to supplement this Agreement by
supplementing Schedule III or adding additional schedules hereto to specifically identify
any asset or item that may constitute material Copyrights, Patents, Trademarks, Copyright Licenses,
Patent Licenses or Trademark Licenses; provided that any Pledgor shall have the right,
exercisable within 30 days after the Issuer has been notified by the Collateral Agent of the
specific identification of such Article 9 Collateral, to advise the Collateral Agent in writing of
any inaccuracy of the representations and warranties made by such Pledgor hereunder with respect to
such Article 9 Collateral. Each Pledgor agrees that it will use its commercially reasonable
efforts to take such action as shall be necessary in order that all representations and warranties
hereunder shall be true and correct with respect to such Article 9 Collateral within 30 days after
the date it has been notified by the Collateral Agent of the specific identification of such
Article 9 Collateral.

          (d) Subject to the Intercreditor Agreement, after the occurrence of an Event of Default and
during the continuance thereof, the Collateral Agent shall have the right to verify under
reasonable procedures the validity, amount, quality, quantity, value, condition and status of, or
any other matter relating to, the Article 9 Collateral, including, in the case of Accounts or
Article 9 Collateral in the possession of any third person, by contacting Account Debtors or the
third person possessing such Article 9 Collateral for the purpose of making such a verification.
The Collateral Agent shall have the right to share any information it gains from such inspection or
verification with any Indenture Secured Party.

          (e) Subject to the Intercreditor Agreement, at its option, the Collateral Agent may discharge
past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any
time levied or placed on the Article 9 Collateral and not a Permitted Lien, and may pay for the
maintenance and preservation of the Article 9 Collateral to the extent any Pledgor fails to do so
as required by the Indenture or this Agreement, and each Pledgor jointly

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and severally agrees to reimburse the Collateral Agent on demand for any reasonable payment
made or any reasonable expense incurred by the Collateral Agent pursuant to the foregoing
authorization; provided, however, that nothing in this Section 3.03(e) shall be
interpreted as excusing any Pledgor from the performance of, or imposing any obligation on the
Collateral Agent or any Indenture Secured Party to cure or perform, any covenants or other promises
of any Pledgor with respect to taxes, assessments, charges, fees, Liens, security interests or
other encumbrances and maintenance as set forth herein or in the other Noteholder Documents.

          (f) Each Pledgor (rather than the Collateral Agent or any Indenture Secured Party) shall
remain liable for the observance and performance of all the conditions and obligations to be
observed and performed by it under each contract, agreement or instrument relating to the Article 9
Collateral and each Pledgor jointly and severally agrees to indemnify and hold harmless the
Collateral Agent and the Indenture Secured Parties from and against any and all liability for such
performance.

          (g) None of the Pledgors shall make or permit to be made an assignment, pledge or
hypothecation of the Article 9 Collateral or shall grant any other Lien in respect of the Article 9
Collateral, except as permitted by the Indenture and the other provisions hereof. None of the
Pledgors shall make or permit to be made any transfer of the Article 9 Collateral and each Pledgor
shall remain at all times in possession of the Article 9 Collateral owned by it, except as
permitted by the Indenture and the other provisions hereof.

          (h) None of the Pledgors will, without the Collateral Agent’s prior written consent (which
consent shall not be unreasonably withheld), grant any extension of the time of payment of any
Accounts included in the Article 9 Collateral, compromise, compound or settle the same for less
than the full amount thereof, release, wholly or partly, any person liable for the payment thereof
or allow any credit or discount whatsoever thereon, other than extensions, credits, discounts,
compromises or settlements granted or made in the ordinary course of business and consistent with
prudent business practices or as otherwise permitted under the Indenture.

          (i) Subject to the Intercreditor Agreement, each Pledgor irrevocably makes, constitutes and
appoints the Collateral Agent (and all officers, employees or agents designated by the Collateral
Agent) as such Pledgor’s true and lawful agent (and attorney-in-fact) for the purpose, during the
continuance of an Event of Default, of making, settling and adjusting claims in respect of Article
9 Collateral under policies of insurance, endorsing the name of such Pledgor on any check, draft,
instrument or other item of payment for the proceeds of such policies of insurance and for making
all determinations and decisions with respect thereto. Subject to the Intercreditor Agreement, in
the event that any Pledgor at any time or times shall fail to obtain or maintain any of the
policies of insurance required hereby or under the Indenture or to pay any premium in whole or part
relating thereto, the Collateral Agent may, without waiving or releasing any obligation or
liability of the Pledgors hereunder or any Event of Default, in its sole discretion, obtain and
maintain such policies of insurance and pay such premium and take any other actions with respect
thereto as the Collateral Agent reasonably deems advisable. All sums disbursed by the Collateral
Agent in connection with this Section 3.03(i), including reasonable attorneys’ fees, court costs,
expenses and other charges relating thereto, shall be payable, upon

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demand, by the Pledgors to the Collateral Agent and shall be additional Noteholder Claims
secured hereby.

          Section 3.04. Other Actions. Subject to the terms of the Intercreditor Agreement, in
order to further ensure the attachment, perfection and priority of, and the ability of the
Collateral Agent to enforce, for the ratable benefit of the Indenture Secured Parties, the
Collateral Agent’s security interest in the Article 9 Collateral, each Pledgor agrees, in each case
at such Pledgor’s own expense, to take the following actions with respect to the following Article
9 Collateral:

          (a) Instruments and Tangible Chattel Paper. If any Pledgor shall at any time hold or
acquire any Instruments (other than checks received and processed in the ordinary course of
business) or Tangible Chattel Paper evidencing an amount in excess of $5.0 million, such Pledgor
shall forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied by such
instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time
to time reasonably request.

          (b) Investment Property. Except to the extent otherwise provided in Article
II, if any Pledgor shall at any time hold or acquire any Certificated Security, such Pledgor
shall forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied by such
instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time
to time reasonably specify. If any security of a domestic issuer now owned or hereafter acquired
by any Pledgor is uncertificated and is issued to such Pledgor or its nominee directly by the
issuer thereof, such Pledgor shall promptly notify the Collateral Agent of such uncertificated
securities and (i) upon the Collateral Agent’s reasonable request or (ii) upon the occurrence and
during the continuance of an Event of Default, such Pledgor shall either (x) cause the issuer to
agree to comply with instructions from the Collateral Agent as to such security, without further
consent of any Pledgor or such nominee, or (y) cause the issuer to register the Collateral Agent as
the registered owner of such security.

          (c) Commercial Tort Claims. If any Pledgor shall at any time hold or acquire a
Commercial Tort Claim in an amount reasonably estimated to exceed $5.0 million, such Pledgor shall
promptly notify the Collateral Agent thereof in a writing signed by such Pledgor, including a
summary description of such claim, and grant to the Collateral Agent in writing a security interest
therein and in the proceeds thereof, all under the terms and provisions of this Agreement.

          Section 3.05. Covenants Regarding Patent, Trademark and Copyright Collateral. Except
as permitted by the Indenture: (a) Each Pledgor agrees that it will not knowingly do any act or
omit to do any act (and will exercise commercially reasonable efforts to prevent its licensees from
doing any act or omitting to do any act) whereby any Patent that is material to the normal conduct
of such Pledgor’s business may become prematurely invalidated, abandoned, lapsed or dedicated to
the public, and agrees that it shall take commercially reasonable steps with respect to any
material products covered by any such Patent as necessary and sufficient to establish and preserve
its rights under applicable patent laws.

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          (b) Each Pledgor will, and will use its commercially reasonable efforts to cause its
licensees or its sublicensees to, for each material Trademark necessary to the normal conduct of
such Pledgor’s business, (i) maintain such Trademark in full force free from any adjudication of
abandonment or invalidity for non-use, (ii) maintain the quality of products and services offered
under such Trademark, (iii) display such Trademark with notice of federal or foreign registration
or claim of trademark or service mark as required under applicable law and (iv) not knowingly use
or knowingly permit its licensees’ use of such Trademark in violation of any third-party rights.

          (c) Each Pledgor will, and will use its commercially reasonable efforts to cause its licensees
or its sublicensees to, for each work covered by a material Copyright necessary to the normal
conduct of such Pledgor’s business that it publishes, displays and distributes, use a copyright
notice as necessary and sufficient to establish and preserve its rights under applicable copyright
laws.

          (d) Each Pledgor shall notify the Collateral Agent promptly if it knows that any Patent,
Trademark or Copyright material to the normal conduct of such Pledgor’s business may imminently
become abandoned, lapsed or dedicated to the public, or of any materially adverse determination or
development, excluding office actions and similar determinations or developments in the United
States Patent and Trademark Office, United States Copyright Office, any court or any similar office
of any country, regarding such Pledgor’s ownership of any such material Patent, Trademark or
Copyright or its right to register or to maintain the same.

          (e) Each Pledgor, either itself or through any agent, employee, licensee or designee, shall
(i) inform the Collateral Agent on an annual basis of each application by itself, or through any
agent, employee, licensee or designee, for any Patent with the United States Patent and Trademark
Office and each registration of any Trademark or Copyright with the United States Patent and
Trademark Office, the United States Copyright Office or any comparable office or agency in any
other country filed during the preceding twelve-month period, and (ii) upon the reasonable request
of the Collateral Agent, execute and deliver any and all agreements, instruments, documents and
papers as the Collateral Agent may reasonably request to evidence the Collateral Agent’s security
interest in such Patent, Trademark or Copyright.

          (f) Each Pledgor shall exercise its reasonable business judgment consistent with the practice
in any proceeding before the United States Patent and Trademark Office, the United States Copyright
Office or any comparable office or agency in any other country with respect to maintaining and
pursuing each application relating to any Patent, Trademark and/or Copyright (and obtaining the
relevant grant or registration) material to the normal conduct of such Pledgor’s business and to
maintain (i) each issued Patent and (ii) the registrations of each Trademark and each Copyright
that is material to the normal conduct of such Pledgor’s business, including, when applicable and
necessary in such Pledgor’s reasonable business judgment, timely filings of applications for
renewal, affidavits of use, affidavits of incontestability and payment of maintenance fees, and, if
any Pledgor believes necessary in its reasonable business judgment, to initiate opposition,
interference and cancellation proceedings against third parties.

          (g) In the event that any Pledgor knows or has reason to know that any Article 9 Collateral
consisting of a Patent, Trademark or Copyright material to the normal

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conduct of its
business has been or is about to be materially infringed, misappropriated or diluted by a
third party, such Pledgor shall promptly notify the Collateral Agent and shall, if such Pledgor
deems it necessary in its reasonable business judgment, promptly sue and recover any and all
damages, and take such other actions as are reasonably appropriate under the circumstances.

          Section 3.06. Further Assurances; Additional Security

          (a) Each Pledgor agrees to execute any and all further documents, financing statements,
agreements and instruments, and take all such further actions (including the filing and recording
of financing statements, fixture filings, mortgages and other documents and recordings of Liens in
stock registries), that may be required under any applicable law, or that the Collateral Agent may
reasonably request, to satisfy the Collateral Requirement and to cause the Collateral Requirement
to be and remain satisfied, all at the expense of the Issuer and provide to the Collateral Agent,
from time to time upon reasonable request, evidence as to the perfection and priority of the Liens
created or intended to be created by this Agreement and the other Noteholder Documents.

          (b) If any asset (including any owned Real Property (other than owned Real Property covered by
paragraph (c) below) or improvements thereto or any interest therein) that has an individual fair
market value in an amount greater than $5.0 million is acquired by the Issuer or any other Pledgor
after the Issue Date or owned by an entity at the time it becomes a Pledgor (in each case other
than (x) assets constituting Collateral under a Security Document that become subject to the Lien
of such Security Document upon acquisition thereof and (y) assets that are not required to become
subject to Liens in favor of the Collateral Agent pursuant to clause (f) below or the Security
Documents) the Issuer will (i) notify the Collateral Agent thereof and (ii) cause such asset to be
subjected to a Lien securing the Noteholder Claims and take, and cause the other Pledgors to take,
such actions as shall be necessary or reasonably requested by the Collateral Agent to grant and
perfect such Liens, including actions described in paragraph (a) of this Section 3.06, all at the
expense of the Issuer, subject to paragraph (f) below.

          (c) The Issuer or the applicable Pledgors shall promptly notify the Collateral Agent of the
acquisition of, and grant and cause each of the other applicable Pledgors to grant to the
Collateral Agent security interests and mortgages in, such owned Real Property of the Issuer or any
such Pledgor, to the extent acquired after the Issue Date and having a value at the time of
acquisition in excess of $5.0 million, pursuant to a mortgage, deed of trust or similar agreement
and constituting valid and enforceable Liens subject to no other Liens except Permitted Liens at
the time of perfection thereof, record or file, and cause each such other applicable Pledgor to
record or file, such mortgage or instruments related thereto in such manner and in such places as
is required by law to establish, perfect, preserve and protect the Liens in favor of the Collateral
Agent granted pursuant to such mortgage or instrument and pay, and cause each such other applicable
Pledgor to pay, in full, all taxes, fees and other charges payable in connection therewith, in each
case subject to paragraph (f) below.

          (d) If any additional direct or indirect Subsidiary of the Issuer is formed or acquired after
the Issue Date (with any Subsidiary redesignation resulting in an Unrestricted Subsidiary becoming
a Restricted Subsidiary being deemed to constitute the acquisition of a

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Subsidiary) and if such
Subsidiary is a Guarantor under the Indenture, within five Business Days
after the date such Subsidiary is formed or acquired, notify the Collateral Agent and the
Holders thereof and, within 20 Business Days after the date such Subsidiary is formed or acquired
or such longer period as the Collateral Agent shall agree, cause the Collateral Requirement to be
satisfied with respect to such Subsidiary and with respect to any Equity Interest in or
Indebtedness of such Subsidiary owned by or on behalf of any Pledgor, subject to paragraph (f)
below.

          (e) If any additional Foreign Subsidiary of the Issuer is formed or acquired after the Issue
Date (with any Subsidiary redesignation resulting in an Unrestricted Subsidiary becoming a
Restricted Subsidiary being deemed to constitute the acquisition of a Subsidiary) and if such
Subsidiary is a “first tier” Foreign Subsidiary, within five Business Days after the date such
Foreign Subsidiary is formed or acquired, notify the Collateral Agent and the Holders thereof and,
within 20 Business Days after the date such Foreign Subsidiary is formed or acquired (or such
longer period as the Credit Agreement Agent shall agree), cause the Collateral a Requirement to be
satisfied with respect to any Equity Interest in such Foreign Subsidiary owned by or on behalf of
any Pledgor, subject to paragraph (f) below.

          (f) The Collateral Requirement and the other provisions of this Section 3.06 need not be
satisfied with respect to (i) any interests in Real Property held by the Issuer or any of its
Subsidiaries as a lessee under a lease or that has an individual fair market value in an amount
less than $5.0 million, (ii) any vehicle, (iii) cash, deposit accounts and securities accounts,
(iv) any Equity Interests (other than in the case of any person which is a Restricted Subsidiary,
Equity Interests in such person issued or acquired after such person became a Restricted
Subsidiary) if, and to the extent that, and for so long as (A) doing so would violate applicable
law or a contractual obligation binding on such Equity Interests and (B) with respect to
contractual obligations applicable to Equity Interests acquired after May 29, 2007, such obligation
existed at the time of the acquisition thereof and was not created or made binding on such Equity
Interests in contemplation of or in connection with the acquisition of such Restricted Subsidiary,
(v) any other assets to the extent that, and for so long as, taking such actions would violate
applicable law or an enforceable contractual obligation binding on such assets, provided, in the
case of contractual obligations applicable to assets acquired after May 29, 2007, that such
contractual obligation existed at the time of the acquisition thereof and was not created or made
binding on such assets in contemplation or in connection with the acquisition of such assets
(except in the case of assets acquired with Indebtedness permitted pursuant to Section 4.09(b)(iv)
of the Indenture that is secured by a Permitted Lien) or (vi) assets covered by a certificate of
title or ownership title to the extent that a Lien therein cannot be perfected by the filing of a
UCC financing statement in the jurisdiction of organization of the Issuer or the applicable
Pledgor; provided, that, upon the reasonable request of the Collateral Agent, the Issuer
shall, and shall cause any applicable Restricted Subsidiary to, use commercially reasonable efforts
to have waived or eliminated any contractual obligation of the types described in clauses (iv) and
(v) above. Further, the Security Interest shall not be required to be perfected in any other
assets to the extent the Credit Agreement Agent has not perfected a security interest therein.

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ARTICLE IV

REMEDIES

          Section 4.01. Remedies Upon Default. Upon the occurrence and during the continuance
of an Event of Default and subject to the Intercreditor Agreement, each Pledgor agrees to deliver
each item of Collateral to the Collateral Agent on demand, and it is agreed that the Collateral
Agent shall have the right to take any of or all the following actions at the same or different
times: (a) with respect to any Article 9 Collateral consisting of Intellectual Property, on
demand, to cause the Security Interest to become an assignment, transfer and conveyance of any of
or all such Article 9 Collateral by the applicable Pledgors to the Collateral Agent or to license
or sublicense, whether general, special or otherwise, and whether on an exclusive or a nonexclusive
basis, any such Article 9 Collateral throughout the world on such terms and conditions and in such
manner as the Collateral Agent shall determine (other than in violation of any then-existing
licensing arrangements to the extent that waivers thereunder cannot be obtained with the use of
commercially reasonable efforts, which each Pledgor hereby agrees to use) and (b) with or without
legal process and with or without prior notice or demand for performance, to take possession of the
Article 9 Collateral and without liability for trespass to the applicable Pledgor to enter any
premises where the Article 9 Collateral may be located for the purpose of taking possession of or
removing the Article 9 Collateral and, generally, to exercise any and all rights afforded to a
secured party under the applicable Uniform Commercial Code or other applicable law. Without
limiting the generality of the foregoing, each Pledgor agrees that the Collateral Agent shall have
the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of
all or any part of the Collateral at a public or private sale or at any broker’s board or on any
securities exchange, for cash, upon credit or for future delivery as the Collateral Agent shall
deem appropriate. The Collateral Agent shall be authorized in connection with any sale of a
security (if it deems it advisable to do so) pursuant to the foregoing to restrict the prospective
bidders or purchasers to persons who represent and agree that they are purchasing such security for
their own account, for investment, and not with a view to the distribution or sale thereof. Upon
consummation of any such sale of Collateral pursuant to this Section 4.01, the Collateral Agent
shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold. Each such purchaser at any such sale shall hold the property sold absolutely,
free from any claim or right on the part of any Pledgor, and each Pledgor hereby waives and
releases (to the extent permitted by law) all rights of redemption, stay, valuation and appraisal
that such Pledgor now has or may at any time in the future have under any rule of law or statute
now existing or hereafter enacted.

          The Collateral Agent shall give the applicable Pledgors 10 Business Days’ written notice
(which each Pledgor agrees is reasonable notice within the meaning of Section 9-611 of the New York
UCC or its equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale
of Collateral. Such notice, in the case of a public sale, shall state the time and place for such
sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the
board or exchange at which such sale is to be made and the day on which the Collateral, or portion
thereof, will first be offered for sale at such board or exchange. Any such public sale shall be
held at such time or times within ordinary business hours and at such place or places as the
Collateral Agent may fix and state in the notice (if any) of such sale. At any such sale, the

25

 

Collateral, or the portion thereof, to be sold may be sold in one lot as an entirety or in
separate parcels, as the Collateral Agent may (in its sole and absolute discretion) determine. The
Collateral Agent shall not be obligated to make any sale of any Collateral if it shall determine
not to do so, regardless of the fact that notice of sale of such Collateral shall have been given.
The Collateral Agent may, without notice or publication, adjourn any public or private sale or
cause the same to be adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may, without further notice, be made at the time and place to which the same
was so adjourned. In the case of any sale of all or any part of the Collateral made on credit or
for future delivery, the Collateral so sold may be retained by the Collateral Agent until the sale
price is paid by the purchaser or purchasers thereof, but the Collateral Agent shall not incur any
liability in the event that any such purchaser or purchasers shall fail to take up and pay for the
Collateral so sold and, in the case of any such failure, such Collateral may be sold again upon
notice given in accordance with provisions above. At any public (or, to the extent permitted by
law, private) sale made pursuant to this Section 4.01, any Indenture Secured Party may bid for or
purchase in cash, free (to the extent permitted by law) from any right of redemption, stay,
valuation or appraisal on the part of any Pledgor (all such rights being also hereby waived and
released to the extent permitted by law), the Collateral or any part thereof offered for sale and
may make payment on account thereof by using any claim then due and payable to such Indenture
Secured Party from any Pledgor as a credit against the purchase price, and may make payment on
account thereof by using any claim then due and payable to such Indenture Secured Party from any
Pledgor as a credit against the purchase price, and such Indenture Secured Party may, upon
compliance with the terms of sale, hold, retain and dispose of such property in accordance with
Section 4.02 hereof without further accountability to any Pledgor therefor. For purposes hereof, a
written agreement to purchase the Collateral or any portion thereof shall be treated as a sale
thereof; the Collateral Agent shall be free to carry out such sale pursuant to such agreement and
no Pledgor shall be entitled to the return of the Collateral or any portion thereof subject
thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an
agreement all Events of Default shall have been remedied and the Noteholder Claims have been
Discharged. As an alternative to exercising the power of sale herein conferred upon it, the
Collateral Agent may proceed by a suit or suits at law or in equity to foreclose this Agreement and
to sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts
having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale
pursuant to the provisions of this Section 4.01 shall be deemed to conform to the commercially
reasonable standards as provided in Section 9-610(b) of the New York UCC or its equivalent in other
jurisdictions.

          Section 4.02. Application of Proceeds. Subject to the Intecreditor Agreement, the
Collateral Agent shall promptly apply the proceeds, moneys or balances of any collection or sale of
Collateral, as well as any Collateral consisting of cash, as follows: FIRST, to the payment of all
costs and expenses and indemnification obligations incurred by the Collateral Agent or the Trustee
in connection with such collection or sale or otherwise in connection with this Agreement, any
other Noteholder Documents or any of the Noteholder Claims, including without limitation all court
costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made
by the Collateral Agent or the Trustee hereunder or under any other Noteholder Document on behalf
of any Pledgor, any other costs or expenses incurred in connection with the exercise of any right
or remedy hereunder or under any other Noteholder

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Document, and all other fees, indemnities and other amounts owing or reimbursable to the
Collateral Agent or the Trustee under any Noteholder Document in its capacity as such; SECOND, to
the payment in full of the Noteholder Claims (the amounts so applied to be distributed among the
Indenture Secured Parties pro rata in accordance with the respective amounts of the Noteholder
Claims owed to them on the date of any such distribution); and THIRD, to the Issuer, its successors
or assigns or as a court of competent jurisdiction may otherwise direct.

          Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale
granted by statute or under a judicial proceeding), the receipt of the purchase money by the
Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser
or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to
see to the application of any part of the purchase money paid over to the Collateral Agent or such
officer or be answerable in any way for the misapplication thereof.

          If, after receipt of any payment which is applied to the payment of all or any part of any
Noteholder Claims, the Collateral Agent, Trustee or any Holder is for any reason compelled to
surrender such payment or proceeds to any person because such payment or application of proceeds is
invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference,
impermissible set-off, or a diversion of trust funds, or for any other reason, then the Noteholder
Claims or part thereof intended to be satisfied shall be revived and continued and this Agreement
shall continue in full force as if such payment or proceeds had not been received by such
Collateral Agent, Trustee or Holder and the Issuer shall be liable to pay to such Collateral Agent,
Trustee and the Holders, and shall indemnify the Collateral Agent, Trustee and the Holders and
holds the Collateral Agent, Trustee and the Holders harmless for the amount of such payment or
proceeds surrendered. The provisions of this paragraph shall be and remain effective
notwithstanding any contrary action which may have been taken by the Collateral Agent, Trustee or
any Holder in reliance upon such payment or application of proceeds, and any such contrary action
so taken shall be without prejudice to the Collateral Agent’s, Trustee’s and the Holders’ rights
under this Agreement and shall be deemed to have been conditioned upon such payment or application
of proceeds having become final and irrevocable. The provisions of this paragraph shall survive
the termination of this Agreement.

          Section 4.03. Securities Act, Etc. In view of the position of the Pledgors in
relation to the Pledged Collateral, or because of other current or future circumstances, a question
may arise under the Securities Act of 1933, as now or hereafter in effect, or any similar federal
statute hereafter enacted analogous in purpose or effect (such Act and any such similar statute as
from time to time in effect being called the “Federal Securities Laws”) with respect to any
disposition of the Pledged Collateral permitted hereunder. Each Pledgor understands that
compliance with the Federal Securities Laws might very strictly limit the course of conduct of the
Collateral Agent if the Collateral Agent were to attempt to dispose of all or any part of the
Pledged Collateral, and might also limit the extent to which or the manner in which any subsequent
transferee of any Pledged Collateral could dispose of the same. Similarly, there may be other
legal restrictions or limitations affecting the Collateral Agent in any attempt to dispose of all
or part of the Pledged Collateral under applicable Blue Sky or other state securities laws or
similar laws analogous in purpose or effect. Each Pledgor acknowledges and agrees that in light

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of such restrictions and limitations, the Collateral Agent, in its sole and absolute
discretion, (a) may proceed to make such a sale whether or not a registration statement for the
purpose of registering such Pledged Collateral or part thereof shall have been filed under the
Federal Securities Laws or, to the extent applicable, Blue Sky or other state securities laws and
(b) may approach and negotiate with a single potential purchaser to effect such sale. Each Pledgor
acknowledges and agrees that any such sale might result in prices and other terms less favorable to
the seller than if such sale were a public sale without such restrictions. In the event of any
such sale, the Collateral Agent shall incur no responsibility or liability for selling all or any
part of the Pledged Collateral at a price that the Collateral Agent, in its sole and absolute
discretion, may in good faith deem reasonable under the circumstances, notwithstanding the
possibility that a substantially higher price might have been realized if the sale were deferred
until after registration as aforesaid or if more than a single purchaser were approached. The
provisions of this Section 4.03 will apply notwithstanding the existence of a public or private
market upon which the quotations or sales prices may exceed substantially the price at which the
Collateral Agent sells.

ARTICLE V

MISCELLANEOUS

          Section 5.01. Notices. All communications and notices hereunder shall (except as
otherwise permitted herein) be in writing and given as provided in Section 13.02 of the Indenture.
All communications and notices hereunder to any Pledgor shall be given to it in care of the Issuer,
with such notice to be given as provided in Section 13.02 of the Indenture.

          Section 5.02. Security Interest Absolute. All rights of the Collateral Agent
hereunder, the Security Interest in the Article 9 Collateral, the security interest in the Pledged
Collateral and all obligations of each Pledgor hereunder shall be absolute and unconditional
irrespective of (a) any lack of validity or enforceability of the Indenture, any other Noteholder
Document, any agreement with respect to any of the Noteholder Claims or any other agreement or
instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment
of, or in any other term of, all or any of the Noteholder Claims, or any other amendment or waiver
of or any consent to any departure from the Indenture, any other Noteholder Document or any other
agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or departure from any
guarantee, securing or guaranteeing all or any of the Noteholder Claims or (d) any other
circumstance that might otherwise constitute a defense available to, or a discharge of, any Pledgor
in respect of the Noteholder Claims or this Agreement (other than a defense of payment or
performance).

          Section 5.03. Limitation By Law. All rights, remedies and powers provided in this
Agreement may be exercised only to the extent that the exercise thereof does not violate any
applicable provision of law, and all the provisions of this Agreement are intended to be subject to
all applicable mandatory provisions of law that may be controlling and to be limited to the extent

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necessary so that they shall not render this Agreement invalid, unenforceable, in whole or in
part, or not entitled to be recorded, registered or filed under the provisions of any applicable
law.

          Section 5.04. Binding Effect; Several Agreement. This Agreement shall become
effective as to any party to this Agreement when a counterpart hereof executed on behalf of such
party shall have been delivered to the Collateral Agent and a counterpart hereof shall have been
executed on behalf of the Collateral Agent, and thereafter shall be binding upon such party and the
Collateral Agent and their respective permitted successors and assigns, and shall inure to the
benefit of such party, the Collateral Agent and the other Indenture Secured Parties and their
respective permitted successors and assigns, except that no party shall have the right to assign or
transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any
such assignment or transfer shall be void) except as expressly contemplated by this Agreement or
the Indenture. This Agreement shall be construed as a separate agreement with respect to each
party and may be amended, modified, supplemented, waived or released with respect to any party
without the approval of any other party and without affecting the obligations of any other party
hereunder.

          Section 5.05. Successors and Assigns. Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the permitted successors and
assigns of such party; and all covenants, promises and agreements by or on behalf of any Pledgor or
the Collateral Agent that are contained in this Agreement shall bind and inure to the benefit of
their respective permitted successors and assigns; provided that no Pledgor may assign, transfer or
delegate any of its rights or obligations under this Agreement without the prior written consent of
the Collateral Agent. The Collateral Agent hereunder shall at all times be the same person that is
the Collateral Agent under the Indenture. Written notice of resignation by the Collateral Agent
pursuant to the Indenture shall also constitute notice of resignation as the Collateral Agent under
this Agreement. Upon the acceptance of any appointment as the Collateral Agent under the Indenture
by a successor Collateral Agent, that successor Collateral Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent
pursuant hereto.

          Section 5.06. Collateral Agent’s Fees and Expenses; Indemnification. (a) The parties
hereto agree that the Collateral Agent shall be entitled to reimbursement of its expenses incurred
hereunder as provided in Section 7.07 of the Indenture.

          (b) Without limitation of its indemnification obligations under the other Noteholder
Documents, each Pledgor jointly and severally agrees to indemnify the Collateral Agent, the
Trustee, the Holders, each of their respective Affiliates and each of their respective directors,
trustees, officers, employees, agents and advisors (each such Person being called an
“Indemnitee”) and the other Indemnitees against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses, including reasonable counsel
fees, charges and disbursements, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of, (i) the execution, delivery or performance of this Agreement or
any other Noteholder Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto and thereto of their respective obligations thereunder or the
consummation of the transactions contemplated by the Indenture and hereby, (ii) the use of proceeds
of the Notes or (iii) any claim, litigation, investigation or proceeding relating to any of

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the foregoing, or to the Collateral, whether or not any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee.

          (c) Any such amounts payable as provided hereunder shall be additional Noteholder Claims
secured hereby and by the other Security Documents. The provisions of this Section 5.06 shall
remain operative and in full force and effect regardless of the termination of this Agreement or
any other Noteholder Document, the consummation of the transactions contemplated hereby, the
repayment of any of the Noteholder Claims, the invalidity or unenforceability of any term or
provision of this Agreement or any other Noteholder Document, or any investigation made by or on
behalf of the Collateral Agent or any other Indenture Secured Party. All amounts due under this
Section 5.06 shall be payable on written demand therefor. All obligations of each Pledgor under
this Section 5.06 shall survive termination of this Agreement.

          Section 5.07. Collateral Agent Appointed Attorney-in-Fact. Each Pledgor hereby
appoints the Collateral Agent the attorney-in-fact of such Pledgor for the purpose of carrying out
the provisions of this Agreement and taking any action and executing any instrument that the
Collateral Agent may deem necessary or advisable to accomplish the purposes hereof, which
appointment is irrevocable and coupled with an interest. Subject to the Intercreditor Agreement,
the Collateral Agent shall have the right, upon the occurrence and during the continuance of an
Event of Default, with full power of substitution either in the Collateral Agent’s name or in the
name of such Pledgor, (a) to receive, endorse, assign or deliver any and all notes, acceptances,
checks, drafts, money orders or other evidences of payment relating to the Collateral or any part
thereof, (b) to demand, collect, receive payment of, give receipt for and give discharges and
releases of all or any of the Collateral, (c) to ask for, demand, sue for, collect, receive and
give acquittance for any and all moneys due or to become due under and by virtue of any Collateral,
(d) to sign the name of any Pledgor on any invoice or bill of lading relating to any of the
Collateral, (e) to send verifications of Accounts to any Account Debtor, (f) to commence and
prosecute any and all suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any
rights in respect of any Collateral, (g) to settle, compromise,
compound, adjust or_defend
any actions, suits or proceedings relating to all or any of the Collateral and (h) to use, sell,
assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of
the Collateral, and to do all other acts and things necessary to carry out the purposes of this
Agreement, as fully and completely as though the Collateral Agent were the absolute owner of the
Collateral for all purposes; provided that nothing herein contained shall be construed as requiring
or obligating the Collateral Agent to make any commitment or to make any inquiry as to the nature
or sufficiency of any payment received by the Collateral Agent, or to present or file any claim or
notice, or to take any action with respect to the Collateral or any part thereof or the moneys due
or to become due in respect thereof or any property covered thereby. The Collateral Agent and the
other Indenture Secured Parties shall be accountable only for amounts actually received as a result
of the exercise of the powers granted to them herein, and neither they nor their officers,
directors, employees or agents shall be

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responsible to any Pledgor for any act or failure to act hereunder, except for their own gross
negligence or willful misconduct.

          Section 5.08. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

          Section 5.09. Waivers; Amendment. (a) No failure or delay by the Collateral Agent or
any Holder in exercising any right, power or remedy hereunder or under any other Noteholder
Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right, power or remedy, or any abandonment or discontinuance of steps to enforce such a right,
power or remedy, preclude any other or further exercise thereof or the exercise of any other right,
power or remedy. The rights, powers and remedies of the Collateral Agent and the Holders hereunder
and under the other Noteholder Documents are cumulative and are not exclusive of any rights, powers
or remedies that they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by any Pledgor therefrom shall in any event be effective unless the same
shall be permitted by paragraph (b) of this Section 5.09, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No notice or demand
on any Pledgor in any case shall entitle any Pledgor to any other or further notice or demand in
similar or other circumstances.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Collateral Agent and the
Pledgor or Pledgors with respect to which such waiver, amendment or modification is to apply,
subject to any consent required in accordance with the Indenture.

          Section 5.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OTHER NOTEHOLDER DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.10.

          Section 5.11. Severability. In the event any one or more of the provisions contained
in this Agreement or in any other Noteholder Document should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
contained herein and therein shall not in any way be affected or impaired thereby. The parties
shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

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          Section 5.12. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which when taken together shall
constitute but one contract, and shall become effective as provided in Section 5.04 hereof.
Delivery of an executed counterpart to this Agreement by facsimile transmission or electronic mail
shall be as effective as delivery of a manually signed original.

          Section 5.13. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and are not to affect
the construction of, or to be taken into consideration in interpreting, this Agreement.

          Section 5.14. Jurisdiction; Consent to Service of Process. (a) Each party to this
Agreement hereby irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the United States of
America sitting in New York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or any other Noteholder Documents, or for
recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such federal court. Each
of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement shall affect any right that the Collateral Agent
or any Holder may otherwise have to bring any action or proceeding relating to this Agreement or
any other Noteholder Document against any Pledgor, or its properties, in the courts of any
jurisdiction.

          (b) Each party to this Agreement hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have to
the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement
or any other Noteholder Document in any New York State or federal court. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          Section 5.15. Termination or Release. (a) Subject to the terms of the Intercreditor
Agreement, this Agreement, the pledges made herein, the Security Interest and all other security
interests granted hereby shall terminate when all the Noteholder Claims (other than contingent or
unliquidated obligations or liabilities not then due) have been Discharged.

          (b) Subject to the terms of the Intercreditor Agreement, a Pledgor (other than the Issuer)
shall automatically be released from its obligations hereunder and the security interests in the
Collateral of such Pledgor shall be automatically released upon the consummation of any transaction
permitted by the Indenture as a result of which such Pledgor ceases to be a Restricted Subsidiary
of the Issuer or otherwise ceases to be a Guarantor; provided that such portion of the
Holders as shall be required by the terms of the Indenture to have consented to such transaction
(to the extent such consent is required by the Indenture) shall have consented thereto and the
terms of such consent did not provide otherwise.

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          (c) Subject to the terms of the Intercreditor Agreement, upon any sale or other transfer by
any Pledgor of any Collateral that is permitted under the Indenture to any person that is not a
Pledgor, or upon the effectiveness of any written consent to the release of the security interest
granted hereby in any Collateral pursuant to the Indenture, the security interest in such
Collateral shall be automatically released.

          (d) Upon the transfer by any Pledgor of Equity Interests in a “first tier” Foreign Subsidiary
or “first tier” Qualified CFC Holding Company to a “first tier” Foreign Subsidiary or “first tier”
Qualified CFC Holding Company in a transaction permitted under the Indenture and subject to the
terms of the Intercreditor Agreement, the pledge of Equity Interests so transferred shall be
automatically released.

          (e) Subject to the terms of the Intercreditor Agreement, upon the release of any property or
assets securing the Senior Lender Claims (including all commitments and letters of credit
thereunder), the Security Interest and all other security interests granted hereby shall be
automatically released; provided, however, that if the Issuer or any Pledgor subsequently
incurs Senior Lender Claims that are secured by liens on property or assets of the Issuer or any
Pledgor of the type constituting the Collateral and the related Liens are incurred in reliance on
clause 6(C) of the definition of Permitted Liens, then the Issuer and its Restricted Subsidiaries
shall reinstitute the Security Interest and any other security interests granted hereby, which, in
the case of any subsequent Senior Lender Claims will be second-priority Liens on the Collateral
securing such Senior Lender Claims to the same extent provided by the Security Documents and on the
terms and conditions of the security documents relating to such Senior Lender Claims, with the
second-priority Lien held by either the administrative agent, collateral agent or other
representative for such Senior Lender Claims or by a collateral agent or other representative
designated by the Issuer to hold the second-priority Liens for the benefit of the Holders of the
Notes and subject to an intercreditor agreement providing such administrative agent or collateral
agent substantially the same rights and powers afforded under the Intercreditor Agreement.

          (f) In connection with any termination or release pursuant to paragraphs (a) through (e) of
this Section 5.15, the Collateral Agent shall execute and deliver to any Pledgor, at such Pledgor’s
expense, all documents that such Pledgor shall reasonably request to evidence such termination or
release (including, without limitation, UCC termination statements) and will duly assign and
transfer to such Pledgor such of the Pledged Collateral that may be in the possession of the
Collateral Agent and has not theretofore been sold or otherwise applied or released pursuant to
this Agreement; provided that the Collateral Agent shall not be required to take any action
under this Section 5.15(f) unless such Pledgor shall have delivered to the Collateral Agent
together with such request, which may be incorporated into such request, (i) a reasonably detailed
description of the Collateral, which in any event shall be sufficient to effect the appropriate
termination or release without affecting any other Collateral, and (ii) a certificate of a
Responsible Officer of the Issuer or such Pledgor certifying that the transaction giving rise to
such termination or release is permitted by the Indenture and was consummated in compliance with
the Noteholder Documents. Any execution and delivery of documents pursuant to this Section 5.15
shall be without recourse to or warranty by the Collateral Agent.

          Section 5.16. Additional Subsidiaries. Upon execution and delivery by the Collateral
Agent and any Subsidiary that is required to become a party hereto by Section 3.06

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hereof of an instrument in the form of Exhibit I hereto, such Subsidiary shall become a
Pledgor hereunder with the same force and effect as if originally named as a Pledgor herein. The
execution and delivery of any such instrument shall not require the consent of any other party to
this Agreement. The rights and obligations of each party to this Agreement shall remain in full
force and effect notwithstanding the addition of any new party to this Agreement.

ARTICLE VI

INTERCREDITOR AGREEMENT

          Section 6.01. Intercreditor Agreement Controls. Notwithstanding anything herein to
the contrary, the lien and security interests granted to the Collateral Agent hereunder are subject
to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms
of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement shall
govern and control.

          Section 6.02. Discharge. Notwithstanding anything herein to the contrary, for so long
as a Discharge of Senior Lender Claims shall not have occurred and the Senior Lender Documents
shall require the delivery of possession and control to the First Priority Designated Agent of
Collateral, any covenant hereunder requiring (or any representation or warranty hereunder to the
extent that it would have the effect of requiring) the delivery of possession and control to the
Collateral Agent of Collateral shall be deemed to have been satisfied (or, in the case of any
representation and warranty, shall be deemed to be true) if, prior to the Discharge of Senior
Lender Claims, such possession or control shall have been delivered to the First Priority
Designated Agent, as provided in the Intercreditor Agreement.

ARTICLE VII

THE COLLATERAL AGENT

          The Collateral Agent shall not have any duties or obligations except those expressly set forth
herein. Without limiting the generality of the foregoing, the Collateral Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of
whether an Event of Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated hereby
that the Collateral Agent is required to exercise as directed in writing by the Trustee;
provided that the Collateral Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Collateral Agent to liability, or for
which it is not indemnified to its satisfaction, or that is contrary to this Agreement,
applicable law;

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     (c) shall not be liable for any action taken or not taken by it (1) with the consent or
at the request of any Indenture Secured Party or (2) in the absence of its own gross
negligence or willful misconduct or (3) in reliance on a certificate of an authorized
officer of the Issuer stating that such action is permitted by the terms of this Agreement;

     (d) shall not be responsible for or have any duty to ascertain or inquire into (1) any
statement, warranty or representation made in or in connection with this Agreement, (2) the
contents of any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (3) the performance or observance by any other Person
of any of the covenants, agreements or other terms or conditions set forth herein or therein
or the occurrence of any Default or Event of Default, (4) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Security Document or any other
agreement, instrument or document, or the creation, perfection or priority of any Lien
purported to be created by the Security Interest, (5) the value or the sufficiency of any
Collateral or (6) the satisfaction of any condition set forth in any agreement, other than
to confirm receipt of items expressly required to be delivered to the Collateral Agent.

          In addition:

     (a) The duties and obligations of the Collateral Agent shall be determined solely by
the express provisions of this Agreement and the Collateral Agent shall not be liable except
for the performance of such duties and obligations as are specifically set out in this
Agreement. The Collateral Agent shall be under no liability to any party hereto by reason
of any failure on the part of any other party hereto or any maker, guarantor, endorser or
other signatory of any document or any other Person to perform such Person’s obligations
under any such document.

     (b) The Collateral Agent shall not be responsible in any manner for the validity,
enforceability or sufficiency of this Agreement, the Security Interest or any Collateral
delivered to it, or for the value or collectability of any Obligations or other instrument,
if any, so delivered, or for any representations made or obligations assumed by any party
other than the Collateral Agent. The Collateral Agent shall not be bound to examine or
inquire into or be liable for any defect or failure in the right or title of the Issuer to
all or any of the assets whether such defect or failure was known to the Collateral Agent or
might have been discovered upon examination or inquiry and whether capable of remedy or not.

     (c) The Collateral Agent shall not be responsible for any unsuitability, inadequacy,
expiration or unfitness of any security interest created hereunder or pursuant to any other
document pertaining to this matter nor shall it be obligated to make any investigation into,
and shall be entitled to assume, the adequacy and fitness of any security interest created
hereunder or pursuant to any other document pertaining to this matter.

     (d) The Collateral Agent shall not be liable for any error of judgment, or for any act
done or step taken or omitted by it in good faith.

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     (e) The Collateral Agent may seek the advice, at the expense of the Issuer, of legal
counsel in the event of any dispute or question as to the construction of any of the
provisions of this Agreement or its duties hereunder or under any document or applicable
law, and it shall incur no liability and shall be fully protected in respect of any action
taken, omitted or suffered by it in good faith in accordance with the advice or written
opinion of such counsel.

     (f) The Collateral Agent shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, approval or other paper or document.

     (g) In no event shall the Collateral Agent be liable for any indirect, special,
punitive or consequential loss or damage of any kind whatsoever, including, but not limited
to, lost profits, even if such loss or damage was foreseeable or it has been advised of the
likelihood of such loss or damage and regardless of the form of action.

     (h) In no event shall the Collateral Agent be liable for any failure or delay in the
performance of its obligations hereunder because of circumstances beyond its control,
including, but not limited to, acts of God, flood, war (whether declared or undeclared),
terrorism, strikes, work stoppages, civil or military disturbances, nuclear or natural
catastrophes, fire, riot, embargo, loss or malfunctions of utilities, communications or
computer (software and hardware) services, government action, including any laws,
ordinances, regulations, governmental action or the like which delay, restrict or prohibit
the providing of the services contemplated by this Agreement.

     (i) The Collateral Agent shall be entitled to seek written directions from the Trustee
prior to taking any action under this Agreement, or any Collateral instrument or any of the
other Loan Documents.

     (j) The Collateral Agent shall have no responsibility for or liability with respect to
monitoring compliance of any other party to this Agreement or any other document related
hereto or thereto. The Collateral Agent has no duty to monitor the value or rating of any
Collateral on an ongoing basis.

     (k) No provision of this Agreement shall require the Collateral Agent to expend,
advance or risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder or in the exercise of any of its rights or powers hereunder
unless it is indemnified to its satisfaction and the Collateral Agent shall have no
liability to any person for any loss occasioned by any delay in taking or failure to take
any such action while it is awaiting an indemnity satisfactory to it.

     (l) Whenever in the administration of this Agreement the Collateral Agent shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Collateral Agent (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, may conclusively rely upon
instructions from the Trustee.

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     (m) The Collateral Agent may act and rely and shall be protected in acting and relying
in good faith on the opinion or advice of, or information obtained from, any counsel,
accountant, investment banker, appraiser or other expert or adviser, whether retained or
employed by the Trustee or by the Collateral Agent.

     (n) The Collateral Agent may employ or retain such counsel, accountants, sub-agent,
agent or attorney in fact, appraisers or other experts or advisers as it may reasonably
require for the purpose of determining and discharging its rights and duties hereunder and
shall not be responsible for the actions of any parties it appoints with due care.

     (o) The Collateral Agent may request that the Issuer or other parties deliver a
certificate setting forth the names of individuals and/or titles of officers authorized at
such time to take specified actions pursuant to this Agreement.

     (p) Money held by the Collateral Agent in trust hereunder need not be segregated from
other funds except to the extent required by law. The Collateral Agent shall be under no
liability for interest on any money received by it hereunder except as otherwise agreed in
writing.

     (q) Beyond the exercise of reasonable care in the custody thereof, the Collateral Agent
shall have no duty as to any Collateral in its possession or control or in the possession or
control of any agent or bailee or any income thereon or as to preservation of rights against
prior parties or any other rights pertaining thereto and the Collateral Agent shall not be
responsible for filing any financing or continuation statements or recording any documents
or instruments in any public office at any time or times or otherwise perfecting or
maintaining the perfection of any security interest in the Collateral. All such duties
shall be the duty of the Issuer. The Collateral Agent shall be deemed to have exercised
reasonable care in the custody of the Collateral in its possession if the Collateral is
accorded treatment substantially equal to that which it accords similar collateral and shall
not be liable or responsible for any loss or diminution in the value of any of the
Collateral, by reason of the act or omission of any carrier, forwarding agency or other
agent or bailee.

     (r) The Collateral Agent shall have no duty to ascertain or inquire as to or monitor
the performance or observance of any of the terms of the Indenture, this Agreement or
documents by any other Person.

     (s) The Issuer shall defend, indemnify, and hold harmless the Collateral Agent (which
for purposes of this paragraph (s) shall be deemed to include its officers, directors,
employees and agents) from and against any claims, demands, penalties, fines, liabilities,
settlements, damages or reasonable costs or expenses of whatever kind or nature, known or
unknown, contingent or otherwise, arising out of the following in respect of the Collateral:
(w) the presence, disposal, release, or threatened release of any Hazardous Materials which
are on, from, or affecting the soil, water, vegetation, buildings, personal property,
persons or animals; (x) any personal injury (including wrongful death) or property damage
(real or personal) arising out of or related to such

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Hazardous Materials; (y) any lawsuit brought or threatened, settlement reached, or
government order relating to such Hazardous Materials, and/or (z) any violation of laws,
orders, regulations, requirements or demands of government authorities, which are based upon
or in any way related to such Hazardous Materials including, reasonable attorney and
consultant fees and expenses, reasonable investigation and laboratory fees, court costs, and
reasonable litigation expenses, except, in each case, where such claims, demands, penalties,
fines, liabilities, settlements, damages, costs or expenses arise solely from the gross
negligence, bad faith or willful misconduct of the Collateral Agent as determined in a
final, non-appealable order of a court of competent jurisdiction. For purposes of this
paragraph, “Hazardous Materials” includes radioactive materials, hazardous materials,
hazardous wastes, hazardous or toxic substances defined in the U.S. Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C.
§9601, et. seq.) (“CERCLA”), the Hazardous Materials Transportation Act, as amended (49
U.S.C. Sections 5108, et seq.), the Resource Conservation and Recovery Act, as amended (42
U.S.C. Sections 6901, et seq.), and in the regulations adopted and publications promulgated
pursuant thereto, or any other Federal, state or local environmental law, ordinance, rule,
or regulation. The provisions of this paragraph shall be in addition to any and all other
obligations and liabilities Holdings may have to the Collateral Agent at common law, and
shall survive the termination of this Agreement, and the resignation or removal of the
Trustee.

     (t) The Collateral Agent reserves the right to conduct an environmental audit prior to
foreclosing on any real estate Collateral or mortgage Collateral. The Collateral Agent
reserves the right to forebear from foreclosing in its own name if to do so may expose it to
undue risk.

     (u) Upon any payment or distribution of assets hereunder, the Collateral Agent, and the
Indenture Secured Parties shall be entitled to conclusively rely upon any order or decree
entered by any court of competent jurisdiction in which an Insolvency or Liquidation
Proceeding is pending, or a certificate of the trustee in bankruptcy, liquidating trustee,
custodian, receiver, assignee for the benefit of creditors, agent or other person making
such payment or distribution in the Insolvency or Liquidation Proceeding, delivered to the
Collateral Agent, for the purpose of ascertaining the persons entitled to participate in
such payment or distribution, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto.

     (v) In the event that, following a foreclosure in respect of any mortgaged Real
Property, the Collateral Agent acquires title to any portion of such mortgaged Real Property
or takes any managerial action of any kind in regard thereto in order to carry out any
fiduciary or trust obligation for the benefit of another, which in the Collateral Agent’s
sole discretion may cause the Collateral Agent to be considered an “owner or operator” under
the provisions of CERCLA or otherwise cause the Collateral Agent to incur liability under
CERCLA or any other Federal, state or local law, the Collateral Agent reserves the right,
instead of taking such action, to either resign as Collateral Agent or arrange for the
transfer of the title or control of the asset to a court-appointed receiver.

38

 

     (w) The rights and protections of the Collateral Agent set forth herein shall also be
applicable to the Collateral Agent in its roles as mortgagee, beneficiary, pledgee or any of
its other roles (including as Collateral Agent) under any documents related to the
Collateral.

     (x) Nothing in this Agreement, expressed or implied, is intended to or shall be so
construed as to impose upon the Collateral Agent any obligations in respect of any
Noteholder Document or any Collateral except as expressly set forth herein or therein.

     (y) The Collateral Agent may resign at any time by giving written notice thereof to the
Issuer and the Trustee, provided that no such resignation shall take effect until a
successor Collateral Agent has been appointed and has agreed to act as such under this
Agreement. Upon any such resignation, the Issuer shall promptly (and no later than within
30 days) appoint a successor to the Collateral Agent. Upon the acceptance of any
appointment as Collateral Agent hereunder by a successor Collateral Agent, such successor
Collateral Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Collateral Agent, and the retiring Collateral Agent
shall be discharged from its duties and obligations. After any retiring Collateral Agent’s
resignation as Collateral Agent, the provisions of this Agreement shall inure to its benefit
as to any actions taken or omitted to be taken by it while it was Collateral Agent. If the
Issuer fails to appoint a successor Collateral Agent within 30 days, the Collateral Agent
may petition a court of competent jurisdiction to do so.

     (z) The Collateral Agent may act through its agents and attorneys and shall not be
liable for the acts or omissions of any such agent or attorney appointed with due care by it
hereunder.

     (aa) No failure to exercise nor any delay in exercising on the part of the Collateral
Agent, any right, power or privilege hereunder, shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, power or privilege hereunder preclude any other
or future exercise thereof or the exercise or any other right, power or privilege. The
rights and remedies hereunder provided are cumulative and may be exercised singly or
concurrently, and are not exclusive of any rights and remedies provided by law.

[Signature Page Follows]

39

 

          IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written.

	 	 	 	 	 
	 	CLAIRE’S STORES, INC.

 	 
	 	By:  	/s/
J. Per Brodin
	 
	 	 	Name:  	J. Per Brodin	 
	 	 	Title:  	Executive Vice President 

and Chief Financial
Officer
	 
	 
	 	CLAIRE’S BOUTIQUES, INC.

CSI CANADA LLC

CLAIRE’S PUERTO RICO CORP.

CBI DISTRIBUTING CORP.

CLAIRE’S CANADA CORP.

BMS DISTRIBUTING CORP.

 	 

	 	By:  	/s/
J.
Per Brodin
 	 
	 	 	Name:  	J.
Per Brodin 	 
	 	 	Title:  	Executive Vice President 

and Chief Financial
Officer
	 
	 
	 	 
	 	CSI CANADA LLC.

 	 
	 	By:  	/s/
J. Per Brodin
	 
	 	 	Name:  	J. Per Brodin	 
	 	 	Title:  	Manager
	 

[Collateral Agreement]

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST 

COMPANY, N.A.,

as Collateral Agent

 	 
	 	By:  	/s/
Geraldine Creswell	 
	 	 	Name:  	Geraldine Creswell	 
	 	 	Title:  	Vice President 	 

[Collateral Agreement]

 

 

ACKNOWLEDGEMENT AND CONSENT

March 4, 2011

          The undersigned hereby acknowledges receipt of a copy of the Collateral Agreement dated as of
March 4, 2011 (the “Agreement”), made by the Pledgors parties thereto for the benefit of
The Bank of New York Mellon Trust Company, N.A., as Collateral Agent. The undersigned agrees for
the benefit of the Collateral Agent and the Holders as follows:

          The undersigned acknowledges that its Equity Interests (as defined in the Agreement) have been
pledged pursuant to the terms of the Agreement and will comply with all actions that may be
required of it pursuant to Section 2.05 and 2.04(b) of the Agreement.

[Signature on the following page]

[Acknowledgement and Consent]

 

 

     IN WITNESS WHEREOF, the undersigned has duly executed this acknowledgement and consent as
of the first date written above.

	 	 	 	 	 
	 	CLAIRE’S STORES CANADA CORP.

 	 
	 	By:  	/s/
J.
Per Brodin	 
	 	 	Name:  	J. Per Brodin	 
	 	 	Title:  	Executive Vice President 

and Chief Financial
Officer
	 
	 

	 	 	 	 

	 

	 	Address for Notices:	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Fax:

[Acknowledgement and Consent]

 

 

Exhibit I

to Collateral Agreement

          SUPPLEMENT NO. ______ dated as of _____________ (this “Supplement”), to the Collateral
Agreement dated as of March 4, 2011 (the “Collateral Agreement”), among CLAIRE’S STORES,
INC., a Florida corporation (the “Issuer”), each Pledgor party thereto from time to time
and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as collateral agent (in such capacity, the
“Collateral Agent”) for the Indenture Secured Parties (as defined in the Collateral
Agreement).

     A. Reference is made to the Indenture dated as of March 4, 2011 (as supplemented by the
Supplemental Indenture dated March 4, 2011 and as further amended, restated, supplemented, waived
or otherwise modified from time to time, the “Indenture”), among the Issuer, the Guarantors
party thereto from time to time, and The Bank of New York Mellon Trust Company, N.A., as trustee
and collateral agent.

     B. Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Indenture and the Collateral Agreement.

     C. The Pledgors have entered into the Collateral Agreement pursuant to the Indenture. Section
5.16 of the Collateral Agreement provides that additional Subsidiaries may become Pledgors under
the Collateral Agreement by execution and delivery of an instrument in the form of this Supplement.
The undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement in
accordance with the requirements of the Collateral Agreement to become a Pledgor under the
Collateral Agreement as consideration for the Notes previously purchased.

          Accordingly, the Collateral Agent and the New Subsidiary agree as follows:

          SECTION 1. In accordance with Section 5.16 of the Collateral Agreement, the New Subsidiary by
its signature below becomes a Pledgor under the Collateral Agreement with the same force and effect
as if originally named therein as a Pledgor, and the New Subsidiary hereby (a) agrees to all the
terms and provisions of the Collateral Agreement applicable to it as a Pledgor thereunder and (b)
represents and warrants that the representations and warranties made by it as a Pledgor thereunder
are true and correct, in all material respects, on and as of the date hereof. In furtherance of
the foregoing, the New Subsidiary, as security for the payment and performance in full of the
Noteholder Claims (as defined in the Collateral Agreement), does hereby create and grant to the
Collateral Agent, for the ratable benefit of the Indenture Secured Parties, a security interest in
and Lien on all the New Subsidiary’s right, title and interest in and to the Collateral (as defined
in the Collateral Agreement) of the New Subsidiary. Each reference to a “Pledgor” in the
Collateral Agreement shall be deemed to include the New Subsidiary. The Collateral Agreement is
hereby incorporated herein by reference.

          SECTION 2. The New Subsidiary represents and warrants to the Collateral Agent and the other
Indenture Secured Parties that this Supplement has been duly authorized, executed and delivered by
it and constitutes its legal, valid and binding obligation, enforceable against it in accordance
with its terms, subject to (i) the effects of bankruptcy, insolvency, moratorium, reorganization,
fraudulent conveyance or other similar laws affecting creditors’

I-1

 

rights generally, (ii) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law) and (iii) implied covenants of good faith and fair dealing.

          SECTION 3. This Agreement may be executed in two or more counterparts, each of which shall
constitute an original but all of which when taken together shall constitute but one contract.
This Supplement shall become effective when (a) the Collateral Agent shall have received a
counterpart of this Supplement that bears the signature of the New Subsidiary and (b) the
Collateral Agent has executed a counterpart hereof.

          SECTION 4. The New Subsidiary hereby represents and warrants that (a) set forth on
Schedule I attached hereto is a true and correct schedule of all the Pledged Securities of
the New Subsidiary as of the date hereof, (b) set forth on Schedule II attached hereto is a
true and correct schedule of all of the Patents, Trademarks and Copyrights of the New Subsidiary as
of the date hereof, (c) set forth on Schedule III attached hereto is a true and correct
schedule of all Commercial Tort Claims of the New Subsidiary individually in excess of $5.0 million
as of the date hereof and (d) set forth under its signature hereto, is the true and correct legal
name of the New Subsidiary, its jurisdiction of formation and the location of its chief executive
office.

          SECTION 5. Except as expressly supplemented hereby, the Collateral Agreement shall remain in
full force and effect.

          SECTION 6. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS SUPPLEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          SECTION 7. In the event any one or more of the provisions contained in this Supplement should
be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein and in the Collateral Agreement shall not in any way
be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable provisions.

          SECTION 8. All communications and notices hereunder shall be in writing and given as provided
in Section 5.01 of the Collateral Agreement.

          SECTION 9. The New Subsidiary agrees to reimburse the Collateral Agent for its reasonable
out-of-pocket expenses in connection with this Supplement, including the reasonable fees,
disbursements and other charges of counsel for the Collateral Agent.

I-2

 

          IN WITNESS WHEREOF, the New Subsidiary and the Collateral Agent have duly executed this
Supplement to the Collateral Agreement as of the day and year first above written.

	 	 	 	 	 
	 	[Name of New Subsidiary]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Legal Name:

Jurisdiction of Formation:

Location of Chief Executive Office:

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

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

I-3

 

	 	 	 	 	 

Schedule I

to Supplement No. ____ to the

Collateral Agreement

Pledged Securities of the New Subsidiary

EQUITY INTERESTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Number of Issuer	 	 	 	 	 	 	Number and Class of	 	 	Percentage of	 
	Certificate	 	 	Registered Owner	 	 	Equity Interest	 	 	Equity Interests	 
	 
	 

DEBT SECURITIES

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer	 	Principal Amount	 	Date of Note	 	Maturity Date

 

 

Schedule II

to Supplement No. ____ to the

Collateral Agreement

PATENTS, TRADEMARKS AND COPYRIGHTS

 

 

Schedule III

to Supplement No. ____ to the

Collateral Agreement

COMMERCIAL TORT CLAIMS

 

 

Schedule I

to Collateral Agreement

SUBSIDIARY LOAN PARTIES

	1.	 	BMS Distributing Corp.

	2.	 	CBI Distributing Corp.

	3.	 	Claire’s Boutiques, Inc.

	4.	 	Claire’s Canada Corp.

	5.	 	Claire’s Puerto Rico Corp.

	6.	 	CSI Canada LLC

 

 

Schedule II

to Collateral Agreement

PLEDGED SECURITIES

EQUITY INTERESTS

	 	 	 	 	 	 	 	 	 
	Name of Owner	 	Name of Issuer	 	Certificate Number	 	Class of Stock	 	Number of Shares or Other Interests
	Claire’s Stores, Inc.
	 	Claire’s Puerto Rico Corp.	 	001	 	Common	 	10
	Claire’s Stores, Inc.
	 	CBI Distributing Corp.	 	1	 	Common	 	100
	Claire’s Boutiques, Inc.
	 	CBI Distributing Corp.	 	2	 	Common	 	80
	Claire’s Stores, Inc.
	 	Claire’s Boutiques, Inc.	 	1	 	Common	 	100
	Claire’s Stores, Inc.
	 	Claire’s Canada  Corp.	 	R-1	 	Common	 	100
	Claire’s Stores, Inc.
	 	Claire’s Canada Corp.	 	R-2	 	Common	 	1
	Claire’s Canada Corp.
	 	Claire’s Stores Canada Corp.	 	C-4	 	Common	 	6,500,065
	Claire’s Canada Corp.
	 	Claire’s Stores Canada Corp.	 	C-6	 	Common	 	3,250,000
	CBI Distributing Corp.
	 	BMS Distributing Corp.	 	01	 	Common	 	1,000
	Claire’s Canada Corp.
	 	CSI Canada LLC	 	1	 	Membership Interests	 	1 Membership Unit
	Claire’s Stores, Inc.
	 	Claire’s Swiss  Holdings LLC	 	1	 	Membership Interests	 	65 Membership Interests

 

 

DEBT SECURITIES

	 	 	 	 	 	 	 
	Name of Issuer	 	Principal Amount	 	Date of Note	 	Maturity Date
	Claire’s
Stores Canada Corp.

	 	$63,000,000 CAD
	 	January 31, 2010
	 	January 31, 2020

 

 

Schedule III

to Collateral Agreement

PATENTS, TRADEMARKS AND COPYRIGHTS

Trademark Registrations

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Trademark	 	 	Reg. No.	 	 	Owner	 	 	Classes	 	 	Status
	...IT’S AT CLAIRE’S

	 	 	3,817,929	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	C Swirl

	 	 	3,512,546	 	 	CBI Distributing Corp.
	 	 	4, 14, 16, 20, 26	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE

	 	 	2,813,344	 	 	CBI Distributing Corp.
	 	 	28	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,908,860	 	 	CBI Distributing Corp.
	 	 	20	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,978,984	 	 	CBI Distributing Corp.
	 	 	16	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,967,212	 	 	CBI Distributing Corp.
	 	 	20	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,908,861	 	 	CBI Distributing Corp.
	 	 	26	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	3,190,840	 	 	CBI Distributing Corp.
	 	 	21	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	3,190,839	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,925,470	 	 	CBI Distributing Corp.
	 	 	25	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	1,891,172	 	 	CBI Distributing Corp.
	 	 	25	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,919,171	 	 	CBI Distributing Corp.
	 	 	21	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,951,866	 	 	CBI Distributing Corp.
	 	 	3	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,908,858	 	 	CBI Distributing Corp.
	 	 	11	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,908,859	 	 	CBI Distributing Corp.
	 	 	16	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,996,103	 	 	CBI Distributing Corp.
	 	 	14	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,908,857	 	 	CBI Distributing Corp.
	 	 	9	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,900,024	 	 	CBI Distributing Corp.
	 	 	24	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	2,974,652	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	1,890,335	 	 	CBI Distributing Corp.
	 	 	42	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	1,925,359	 	 	CBI Distributing Corp.
	 	 	14	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	3,319,826	 	 	CBI Distributing Corp.
	 	 	3	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S

	 	 	1,929,317	 	 	CBI Distributing Corp.
	 	 	5	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S ACCESSORIES

	 	 	1,946,557	 	 	CBI Distributing Corp.
	 	 	42	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S ACCESSORIES

	 	 	1,956,047	 	 	CBI Distributing Corp.
	 	 	42	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S
ACCESSORIES &
Design

	 	 	2,294,937	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S BOUTIQUES
& Design

	 	 	1,514,045	 	 	CBI Distributing Corp.
	 	 	42	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	2,908,867	 	 	CBI Distributing Corp.
	 	 	20	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	2,908,191	 	 	CBI Distributing Corp.
	 	 	26	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	2,908,868	 	 	CBI Distributing Corp.
	 	 	25	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	2,908,863	 	 	CBI Distributing Corp.
	 	 	9	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	2,908,862	 	 	CBI Distributing Corp.
	 	 	3	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	3,343,775	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	2,908,866	 	 	CBI Distributing Corp.
	 	 	18	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	2,908,865	 	 	CBI Distributing Corp.
	 	 	14	 	 	Registered

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Trademark	 	 	Reg. No.	 	 	Owner	 	 	Classes	 	 	Status
	CLAIRE’S CLUB

	 	 	2,992,613	 	 	CBI Distributing Corp.
	 	 	21	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S CLUB

	 	 	2,908,864	 	 	CBI Distributing Corp.
	 	 	11	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S ETC.

	 	 	2,064,149	 	 	CBI Distributing Corp.
	 	 	42	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S ETC.

	 	 	2,065,959	 	 	CBI Distributing Corp.
	 	 	42	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S (logo)

	 	 	3,602,239	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CLAIRE’S (stylized)

	 	 	2,623,039	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ICING

	 	 	3,743,653	 	 	CBI Distributing Corp.
	 	 	3, 9, 14, 18, 20,
25, 26, 35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ICING BY CLAIRE’S

	 	 	3,050,863	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ICING BY CLAIRE’S

	 	 	3,475,495	 	 	CBI Distributing Corp.
	 	 	14	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	THE ICING

	 	 	3,461,876	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	THE ICING

	 	 	1,466,727	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	THE ICING

	 	 	2,762,642	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	THE ICING
ACCESSORIES &
Design

	 	 	2,234,841	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SENSITIVE SOLUTIONS

	 	 	1,951,435	 	 	CBI Distributing Corp.
	 	 	14	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	WHERE GETTING READY
IS HALF THE FUN

	 	 	2,664,513	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	WHERE THROWING A
PARTY IS ALL THE
FUND

	 	 	3,136,920	 	 	CBI Distributing Corp.
	 	 	41	 	 	Registered
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BEE WHO YOU WANNA BE

	 	 	2,888,867	 	 	CBI Distributing Corp.
	 	 	35	 	 	Registered

 

 

Schedule IV

to Collateral Agreement

FILING JURISDICTIONS

          COLORADO:

	1.	 	Claire’s Boutiques, Inc.

          DELAWARE:

	1.	 	BMS Distributing Corp.

	2.	 	CBI Distributing Corp.

	3.	 	Claire’s Canada Corp.

	4.	 	Claire’s Puerto Rico Corp.

	5.	 	CSI Canada LLC

          FLORIDA:

	1.	 	Claire’s Stores, Inc.

 

 

Schedule V

to Collateral Agreement

COMMERCIAL TORT CLAIMS

NONE.

 

 

Schedule VI

to Collateral Agreement

MATTERS RELATING TO ACCOUNTS AND INVENTORY

NONE.exv10w2

Exhibit 10.2

EXECUTION COPY

INTERCREDITOR AGREEMENT

          THIS INTERCREDITOR AGREEMENT is dated as of March 4, 2011, among (i) CREDIT SUISSE AG, CAYMAN
ISLANDS BRANCH (f/k/a Credit Suisse, Cayman Islands Branch), in its capacity as Credit Agreement
Agent, and each Other First Lien Obligations Agent from time to time party hereto, each in its
capacity as First Lien Agent, (ii) THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee and
collateral agent, and each collateral agent for any Future Second Lien Indebtedness from time to
time party hereto, each in its capacity as Second Priority Agent, and (iii) CLAIRE’S INC., a
Delaware corporation (“Holdings”), CLAIRE’S STORES, INC., a Florida corporation (the “Company”),
and each Subsidiary of the Company listed on Schedule I hereto or that becomes a party hereto
pursuant to Section 8.21 below.

          A. The Company is party to the Credit Agreement dated as of May 29, 2007 (as amended, amended
and restated, replaced, refinanced, supplemented or otherwise modified from time to time, the
“Credit Agreement”) among Holdings, the Company, the lenders and other parties party thereto from
time to time, and Credit Suisse AG, Cayman Islands Branch (f/k/a Credit Suisse, Cayman Islands
Branch), as administrative agent for the lenders. The Obligations pursuant to the Credit Agreement
has been designated by the Company as Senior Lender Claims hereunder.

          B. The Company is party to the Indenture dated as of March 4, 2011, among Claire’s Escrow
Corporation, a Delaware corporation (“Claire’s Escrow”), and The Bank of New York Mellon Trust
Company, N.A., as Trustee, as supplemented by the Supplemental Indenture dated March 4, 2011 among
Claire’s Escrow, the Company, the Company’s Subsidiaries named therein and the Trustee (such
agreement, as amended, amended and restated, supplemented or otherwise modified from time to time,
the “Second Priority Senior Secured Notes Indenture”). The Obligations of the Company and certain
of the Company’s Subsidiaries under the Second Priority Senior Secured Notes Indenture, the Notes
and the other Noteholder Documents constitute Second Priority Claims hereunder.

          Accordingly, in consideration of the foregoing, the mutual covenants and obligations herein
set forth and for other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

          SECTION 1. Definitions.

          1.1. Defined Terms. As used in this Agreement, the following terms have the meanings
specified below:

          “Affiliate” shall mean, when used with respect to a specified person, another person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the person specified.

 

 

          “Agreement” shall mean this Agreement, as amended, renewed, extended, supplemented or
otherwise modified from time to time in accordance with the terms hereof.

          “Bankruptcy Law” shall mean Title 11 of the United States Code and any similar Federal, state
or foreign law for the relief of debtors.

          “Closing Date” shall mean March 4, 2011.

          “Common Collateral” shall mean all of the assets of any Grantor, whether real, personal or
mixed, constituting both Senior Lender Collateral and Second Priority Collateral, including without
limitation any assets in which the First Lien Agents are automatically deemed to have a Lien
pursuant to the provisions of Section 2.3.

          “Company” shall have the meaning set forth in the preamble.

          “Comparable Second Priority Collateral Document” shall mean, in relation to any Common
Collateral subject to any Lien created under any Senior Collateral Document, those Second Priority
Collateral Documents that create a Lien on the same Common Collateral, granted by the same Grantor.

          “Control” shall mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a person, whether through the ownership of voting
securities, by contract or otherwise, and “Controlling” and “controlled” shall have meanings
correlative thereto.

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

          “Credit Agreement Agent” shall mean Credit Suisse AG, Cayman Islands Branch, in its capacity
as administrative agent for the Senior Lenders under the Credit Agreement and the other Senior
Lender Documents entered into pursuant to the Credit Agreement, together with its successors in
such capacity.

          “Domestic Subsidiary” shall have the meaning set forth in the Term Credit Agreement.

          “DIP Financing” shall have the meaning set forth in Section 6.1.

          “Discharge of Senior Lender Claims” shall mean, except to the extent otherwise provided in
Section 5.7 below, payment in full in cash (except for contingent indemnities and cost and
reimbursement obligations to the extent no claim has been made) of (a) all Obligations in respect
of all outstanding Senior Lender Claims and, with respect to letters of credit or letter of credit
guaranties outstanding thereunder, delivery of cash collateral or backstop letters of credit in
respect thereof in compliance with the Credit Agreement, in each case after or concurrently with
the termination of all commitments to extend credit thereunder and (b) any other Senior Lender
Claims that are due and payable or otherwise accrued and owing at or prior to the time such
principal and interest are paid; provided that the Discharge of Senior Lender Claims shall not be
deemed to have occurred if such payments are made with the proceeds of other Senior Lender Claims
that constitute an exchange or replacement for or a refinancing of such

2

 

Obligations or Senior Lender Claims. In the event the Senior Lender Claims are modified and
the Obligations are paid over time or otherwise modified pursuant to Section 1129 of the Bankruptcy
Code, the Senior Lender Claims shall be deemed to be discharged when the final payment is made, in
cash, in respect of such indebtedness and any obligations pursuant to such new indebtedness shall
have been satisfied.

          “First Lien Agent” shall mean each of (a) the Credit Agreement Agent and (b) any Other First
Priority Lien Obligations Agent.

          “First Lien Designated Agent” shall mean such agent or trustee as is designated “First
Priority Designated Agent” by Senior Lenders holding a majority in principal amount of the Senior
Lender Claims then outstanding; it being understood that as of the date of this Agreement and for
so long as any Obligations under the Credit Agreement remain outstanding, the Credit Agreement
Agent shall be so designated First Priority Designated Agent.

          “Future Second Lien Indebtedness” shall mean Indebtedness or Obligations (other than
Noteholder Claims) of the Company and its Subsidiaries that are to be equally and ratably secured
with the Noteholder Claims and are so designated by the Company as Future Second Lien Indebtedness
in accordance with Section 8.22 hereof; provided, however, that such Future Second Lien
Indebtedness is permitted to be so incurred in accordance with any Senior Lender Documents and any
Second Priority Documents, as applicable.

          “Grantors” shall mean the Company, Holdings and each of the Company’s Subsidiaries that has
executed and delivered a Second Priority Collateral Document or a Senior Collateral Document.

          “Indebtedness” shall mean and include all obligations that constitute “Indebtedness” within
the meaning of the Second Priority Senior Secured Notes Indenture, the Credit Agreement or the
Other First Priority Lien Obligations Credit Documents.

          “Indenture Secured Parties” shall mean the Persons holding Noteholder Claims, including the
Trustee.

          “Insolvency or Liquidation Proceeding” shall mean (a) any voluntary or involuntary case or
proceeding under any Bankruptcy Law with respect to any Grantor, (b) any other voluntary or
involuntary insolvency, reorganization or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding with respect to any Grantor or with
respect to any of its assets, (c) any liquidation, dissolution, reorganization or winding up of any
Grantor whether voluntary or involuntary and whether or not involving insolvency or bankruptcy or
(d) any assignment for the benefit of creditors or any other marshalling of assets and liabilities
of any Grantor.

          “Joinder Agreement” shall mean an agreement in form and substance substantially similar to
Exhibit A hereto, including with appropriate adjustments as permitted by Section 8.22
hereof.

          “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien,
hypothecation, pledge, charge, security interest or similar encumbrance in or on such asset and

3

 

(b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease
or title retention agreement (or an financing lease having substantially the same economic effect
as any of the foregoing) relating to such asset.

          “Loan Documents” means the Credit Agreement and the other “Loan Documents” as defined in the
Credit Agreement.

          “Noteholder Claims” shall mean all Obligations in respect of the Notes or arising under the
Noteholder Documents or any of them, including all fees and expenses of the Trustee thereunder.

          “Noteholder Collateral” shall mean all of the assets of any Grantor, whether real, personal or
mixed, with respect to which a Lien is granted as security for any Noteholder Claim.

          “Noteholder Collateral Agreement” shall mean the Collateral Agreement dated as of March 4,
2011, among the Company, certain other Grantors and The Bank of New York Mellon Trust Company,
N.A., as collateral agent, in respect of the Second Priority Senior Secured Notes Indenture, as the
same may be amended, restated, supplemented or otherwise modified from time to time.

          “Noteholder Collateral Documents” shall mean the Noteholder Collateral Agreement and any other
document or instrument pursuant to which a Lien is granted by any Grantor to secure any Noteholder
Claims or under which rights or remedies with respect to any such Lien are governed.

          “Noteholder Documents” shall mean (a) the Second Priority Senior Secured Notes Indenture, the
Notes, the Noteholder Collateral Documents and (b) any other related document or instrument
executed and delivered pursuant to any Noteholder Document described in clause (a) above evidencing
or governing any Obligations thereunder.

          “Notes” shall mean the Second Lien Notes and any additional notes issued under the Second
Priority Senior Secured Notes Indenture by the Company, to the extent permitted by the Second
Priority Senior Secured Notes Indenture, the Credit Agreement, the Other First Priority Lien
Obligations Credit Documents, any other Senior Lender Documents and any Second Priority Document,
as applicable.

          “Obligations” shall mean, with respect to any Person, any payment, performance or other
obligations of such Person of any kind, including, without limitation, any liability of such Person
on any claim, whether or not the right of any creditor to payment in respect of such claim is
reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed,
legal, equitable, secured or unsecured, and whether or not such claim is discharged, stayed or
otherwise affected by any Insolvency or Liquidation Proceeding. Without limiting the generality of
the foregoing, the Obligations of any Grantor under any Senior Lender Document or Second Priority
Document include the obligations to pay principal, interest (including interest accrued on or
accruing after the commencement of any Insolvency or Liquidation Proceeding, whether or not a claim
for post-filing interest is allowed in such proceeding) or premium on any Indebtedness, letter of
credit commissions (if applicable), charges, expenses, fees, attorneys’ fees and disbursements,
indemnities and other amounts payable by such Grantor to reimburse any

4

 

amount in respect of any of the foregoing that any Senior Lender or Second Priority Secured
Party, in its sole discretion, many elect to pay or advance on behalf of such Grantor.

          “Officers’ Certificate” shall have the meaning set forth in the Second Priority Senior Secured
Notes Indenture.

          “Other First Priority Lien Obligations ” means all Obligations owing under any Other First
Priority Lien Obligations Document; provided, however, for the avoidance of doubt, none of the
Obligations under the Credit Agreement or any other Loan Document shall constitute Other First
Priority Lien Obligations.

          “Other First Priority Lien Obligations Agent ” shall mean, with respect to any Other First
Priority Lien Obligations Credit Document, the Person elected, designated or appointed as the
administrative agent, trustee, collateral agent or similar representative with respect to such
Other First Priority Lien Obligations Credit Document by or on behalf of the holders of such Other
First Priority Lien Obligations, and its respective successors in such capacity.

          “Other First Priority Lien Obligations Credit Document ” means any (a) instruments, agreements
or documents evidencing debt facilities or commercial paper facilities, providing for revolving
credit loans, term loans, receivables financing (including through the sale of receivables to
lenders or to special purpose entities formed to borrow from lenders against such receivables) or
letters of credit, (b) debt securities, indentures and/or other forms of debt financing (including
convertible or exchangeable debt instruments or bank guarantees or bankers’ acceptances), or (c)
instruments or agreements evidencing any other indebtedness, in each case in respect of which a
First Lien Agent has become a party hereto in accordance with Section 8.22 hereof.

          “Other First Priority Lien Obligations Documents ” means each Other First Priority Lien
Obligations Credit Document and each Other First Priority Lien Obligations Security Document
related thereto.

          “Other First Priority Lien Obligations Security Documents ” means any security agreement or
any other document now existing or entered into after the date hereof that create Liens on any
assets or properties of any Grantor to secure any Other First Priority Lien Obligations.

          “Person” shall mean any natural person, corporation, business trust, joint venture,
association, company, partnership, limited liability company or government, individual or family
trusts, or any agency or political subdivision thereof.

          “Pledged Collateral” shall mean the Common Collateral in the possession of any First Lien
Agent (or its agents or bailees), to the extent that possession thereof perfects a Lien thereon
under the Uniform Commercial Code.

          “Recovery” shall have the meaning set forth in Section 6.4.

          “Required Lenders” shall mean, with respect to any Senior Lender Documents, those Senior
Lenders the approval of which is required to approve an amendment or modification

5

 

of, termination or waiver of any provision of or consent to any departure from such Senior
Lender Documents (or would be required to effect such consent under this Agreement if such consent
were treated as an amendment of the Senior Lender Documents).

          “Second Lien Notes” shall mean the Company’s 8.875% Senior Secured Second Lien Notes due 2019,
issued pursuant to the Second Priority Senior Secured Notes Indenture and any notes issued by the
Company in exchange for, and as contemplated by, the Second Lien Notes and the related registration
rights agreement with substantially identical terms as the Second Lien Notes.

          “Second Priority Agents” shall mean (a) the Trustee as agent for the Indenture Secured Parties
and (b) the collateral agent for any Future Second Lien Indebtedness (including the Trustee).

          “Second Priority Claims” shall mean the Noteholder Claims and all other Obligations in respect
of, or arising under, the Second Priority Documents, including all fees and expenses of the
collateral agent for any Future Second Lien Indebtedness.

          “Second Priority Collateral” shall mean the Noteholder Collateral and all of the assets of any
Grantor, whether real, personal or mixed, with respect to which a Lien is granted as security for
any Second Priority Claim.

          “Second Priority Collateral Agreements” shall mean the Noteholder Collateral Agreement and any
comparable agreement with respect to any Future Second Lien Indebtedness.

          “Second Priority Collateral Documents” shall mean the Noteholder Collateral Documents and any
other agreement, document or instrument pursuant to which a Lien is now or hereafter granted
securing any Second Priority Claims or under which rights or remedies with respect to such Liens
are at any time governed.

          “Second Priority Designated Agent” shall mean such agent or trustee as is designated “Second
Priority Designated Agent” by Second Priority Secured Parties holding a majority in principal
amount of the Second Priority Claims then outstanding; it being understood that as of the date of
this Agreement and for so long as any Obligations under the Second Priority Senior Secured Notes
Indenture remain outstanding, the Trustee shall be so designated Second Priority Designated Agent.

          “Second Priority Documents” shall mean the Noteholder Documents and any other document or
instrument evidencing or governing any Future Second Lien Indebtedness.

          “Second Priority Lien” shall mean any Lien on any assets of the Company or any other Grantor
securing any Second Priority Claims.

          “Second Priority Secured Parties” shall mean the Indenture Secured Parties and all other
Persons holding any Second Priority Claims, including the collateral agent for any Future Second
Lien Indebtedness.

6

 

          “Second Priority Senior Secured Notes Indenture” shall have the meaning set forth in the
recitals.

          “Secured Hedge Agreements” shall mean each Swap Agreement that (i) is in effect on the Closing
Date with a counterparty that is a Senior Lender or an agent or an Affiliate of a Senior Lender as
of the Closing Date or (ii) is entered into after the Closing Date with any counterparty that is a
Senior Lender or an agent or an Affiliate of a Senior Lender at the time such Swap Agreement is
entered into.

          “Senior Collateral Agreement” shall mean the Guarantee and Collateral Agreement dated as of
May 29, 2007, among the Company, Holdings, the other Grantors party thereto, and Credit Suisse AG,
Cayman Islands Branch (f/k/a Credit Suisse, Cayman Islands Branch), as administrative agent for the
secured parties referred to therein.

          “Senior Collateral Documents” shall mean the Senior Collateral Agreement, the Other First
Priority Lien Obligations Security Documents and any security agreement, mortgage or other
agreement, document or instrument pursuant to which a Lien is now or hereafter granted securing any
Senior Lender Claims or under which rights or remedies with respect to such Lien are at any time
governed.

          “Senior Lender Cash Management Obligations” shall mean, with respect to any Grantor, the due
and punctual payment and performance of all obligations of such Grantor in respect of overdrafts
and related liabilities owed to a Senior Lender under the Credit Agreement or any of its Affiliates
(or any other Person designated by the Company as a provider of cash management services and
entitled to the benefit of the Senior Collateral Agreement) and arising from cash management
services (including treasury, depository, overdraft, credit or debit card, electronic funds
transfer, Automated Clearing House services and other cash management arrangements).

          “Senior Lender Claims” shall mean all Obligations arising under the Credit Agreement, the
Other First Priority Lien Obligations Credit Documents and any other Senior Lender Documents,
whether or not such Obligations constitute Indebtedness, including, without limitation, (a)
Obligations arising under Secured Hedge Agreements, (b) Senior Lender Cash Management Obligations
and (c) Obligations under any credit agreement that is an exchange or replacement for or an
extension, increase or refinancing of any other Senior Lender Claims. Senior Lender Claims shall
include all interest and expenses accrued or accruing (or that would, absent the commencement of an
Insolvency or Liquidation Proceeding, accrue) after the commencement of an Insolvency or
Liquidation Proceeding in accordance with and at the rate specified in the relevant Senior Lender
Documents whether or not the claim for such interest or expenses is allowed or allowable as a claim
in such Insolvency or Liquidation Proceeding.

          “Senior Lender Collateral” shall mean all of the assets of any Grantor, whether real, personal
or mixed, with respect to which a Lien is granted as security for any Senior Lender Claim.

          “Senior Lender Documents” shall mean the Loan Documents, the Other First Priority Lien
Obligations Documents, the Senior Collateral Documents and each of the other

7

 

agreements, documents and instruments (including each agreement, document or instrument
providing for or evidencing a Senior Lender Hedging Obligation or Senior Lender Cash Management
Obligation) providing for, evidencing or securing any Senior Lender Claim, including, without
limitation, any Obligation under the Credit Agreement and any other related document or instrument
executed or delivered pursuant to any such document at any time or otherwise evidencing or securing
any Indebtedness arising under any such document.

          “Senior Lender Hedging Obligations” shall mean any Obligations under Secured Hedge Agreements.

          “Senior Lenders” shall mean the Persons holding Senior Lender Claims, including the First Lien
Agents.

          “Subsidiary” shall mean any “Subsidiary” of the Company as defined in the Credit Agreement.

          “Swap Agreement” shall mean any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided, that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of Holdings, the Company or any of the
Subsidiaries shall be a Swap Agreement.

          “Trustee” shall mean The Bank of New York Mellon Trust Company, N.A., in its capacity as
trustee under the Second Priority Senior Secured Notes Indenture and as collateral agent under the
Noteholder Collateral Documents, and its successors in such capacity.

          “Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code as from time to time
in effect in the State of New York.

          1.2. Terms Generally. The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified in accordance with this Agreement,
(b) any reference herein to any Person shall be construed to include such Person’s successors and
assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision hereof,
(d) all references herein to Sections shall be construed to refer to Sections of this Agreement and
(e) the words “asset” and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

8

 

          SECTION 2. Lien Priorities.

          2.1. Subordination of Liens. Notwithstanding (i) the date, time, method, manner or
order of filing or recordation of any document or instrument or grant, attachment or perfection
(including any defect or deficiency or alleged defect or deficiency in any of the foregoing) of any
Liens granted to the Second Priority Secured Parties on the Common Collateral or of any Liens
granted to any First Lien Agent or Senior Lenders on the Common Collateral, (ii) any provision of
the UCC, the Bankruptcy Code, or any applicable law or the Second Priority Documents or the Senior
Lender Documents, (iii) whether any First Lien Agent, either directly or through agents, holds
possession of, or has control over, all or any part of the Common Collateral, (iv) the fact that
any such Liens may be subordinated, voided, avoided, invalidated or lapsed or (v) any other
circumstance of any kind or nature whatsoever, each Second Priority Agent, on behalf of itself and
each applicable Second Priority Secured Party, hereby agrees that: (a) any Lien on the Common
Collateral securing any Senior Lender Claims now or hereafter held by or on behalf of any First
Lien Agent or any Senior Lenders or any agent or trustee therefor regardless of how acquired,
whether by grant, statute, operation of law, subrogation or otherwise, shall have priority over and
be senior in all respects and prior to any Lien on the Common Collateral securing any Second
Priority Claims and (b) any Lien on the Common Collateral securing any Second Priority Claims now
or hereafter held by or on behalf of the Trustee or any Second Priority Secured Parties or any
agent or trustee therefor regardless of how acquired, whether by grant, statute, operation of law,
subrogation or otherwise, shall be junior and subordinate in all respects to all Liens on the
Common Collateral securing any Senior Lender Claims. All Liens on the Common Collateral securing
any Senior Lender Claims shall be and remain senior in all respects and prior to all Liens on the
Common Collateral securing any Second Priority Claims for all purposes, whether or not such Liens
securing any Senior Lender Claims are subordinated to any Lien securing any other obligation of the
Company, any other Grantor or any other Person.

          2.2. Prohibition on Contesting Liens. Each Second Priority Agent, for itself and on
behalf of each applicable Second Priority Secured Party, and each First Lien Agent, for itself and
on behalf of each Senior Lender in respect of which it serves as First Lien Agent, agrees that it
shall not (and hereby waives any right to) take any action to challenge, contest or support any
other Person in contesting or challenging, directly or indirectly, in any proceeding (including any
Insolvency or Liquidation Proceeding), the validity, perfection, priority or enforceability of (a)
a Lien securing any Senior Lender Claims held (or purported to be held) by or on behalf of any
First Lien Agent or any of the Senior Lenders or any agent or trustee therefor in any Senior Lender
Collateral or (b) a Lien securing any Second Priority Claims held (or purported to be held) by or
on behalf of any Second Priority Secured Party in the Common Collateral, as the case may be;
provided, however, that nothing in this Agreement shall be construed to prevent or impair the
rights of any First Lien Agent or any Senior Lender to enforce this Agreement (including the
priority of the Liens securing the Senior Lender Claims as provided in Section 2.1) or any of the
Senior Lender Documents.

          2.3. No New Liens. So long as the Discharge of Senior Lender Claims has not occurred
and subject to Section 6, each Second Priority Agent agrees, for itself and on behalf of each
applicable Second Priority Secured Party, whether or not any Insolvency or Liquidation Proceeding
has been commenced by or against the Company or any other Grantor, that it shall

9

 

not acquire or hold any Lien on any assets of the Company or any other Grantor securing any
Second Priority Claims that are not also subject to the first-priority Lien in respect of the
Senior Lender Claims under the Senior Lender Documents. If any Second Priority Agent or any Second
Priority Secured Party shall (nonetheless and in breach hereof) acquire or hold any Lien on any
collateral that is not also subject to the first-priority Lien in respect of the Senior Lender
Claims under the Senior Lender Documents, then such Second Priority Agent shall, without the need
for any further consent of any party and notwithstanding anything to the contrary in any other
document, be deemed to also hold and have held such lien for the benefit of the First Lien Agents
as security for the Senior Lender Claims (subject to the lien priority and other terms hereof) and
shall promptly notify each First Lien Agent in writing of the existence of such Lien and in any
event take such actions as may be requested by any First Lien Agent to assign or release such Liens
to the First Lien Agents (and/or each of its designee) as security for the applicable Senior Lender
Claims.

          2.4. Perfection of Liens. Neither the First Lien Agents nor the Senior Lenders shall
be responsible for perfecting and maintaining the perfection of Liens with respect to the Common
Collateral for the benefit of the Second Priority Agents and the Second Priority Secured Parties.
Neither the Second Priority Agents nor the Second Priority Secured Parties shall be responsible for
perfecting and maintaining the perfection of Liens with respect to the Common Collateral for the
benefit of the First Lien Agents and the Senior Lenders. The provisions of this Agreement are
intended solely to govern the respective Lien priorities as between the Senior Lenders and the
Second Priority Secured Parties and shall not impose on the First Lien Agents, the Second Priority
Agents, the Second Priority Secured Parties or the Senior Lenders or any agent or trustee therefor
any obligations in respect of the disposition of proceeds of any Common Collateral which would
conflict with prior perfected claims therein in favor of any other Person or any order or decree of
any court or governmental authority or any applicable law.

          2.5. Waiver of Marshalling. Until the Discharge of Senior Lender Claims, each Second
Priority Agent, on behalf of itself and the applicable Second Priority Secured Parties, agrees not
to assert and hereby waives, to the fullest extent permitted by law, any right to demand, request,
plead or otherwise assert or otherwise claim the benefit of, any marshalling, appraisal, valuation
or other similar right that may otherwise be available under applicable law with respect to the
Common Collateral or any other similar rights a junior secured creditor may have under applicable
law.

          SECTION 3. Enforcement.

          3.1. Exercise of Remedies.

     (a) So long as the Discharge of Senior Lender Claims has not occurred, whether or not any
Insolvency or Liquidation Proceeding has been commenced by or against the Company or any other
Grantor, (i) no Second Priority Agent or any Second Priority Secured Party will (x) exercise or
seek to exercise any rights or remedies (including setoff or recoupment) with respect to any Common
Collateral or any other security in respect of any applicable Second Priority Claims, or exercise
any right under any lockbox agreement, control agreement, landlord waiver or bailee’s letter or
similar agreement or arrangement, or institute any action or

10

 

proceeding with
respect to such rights or remedies (including any action of foreclosure), (y) contest, protest
or object to any foreclosure proceeding or action brought with respect to the Common Collateral or
any other collateral by any First Lien Agent or any Senior Lender in respect of the Senior Lender
Claims, the exercise of any right by any First Lien Agent or any Senior Lender (or any agent or
sub-agent on their behalf) in respect of the Senior Lender Claims under any lockbox agreement,
control agreement, landlord waiver or bailee’s letter or similar agreement or arrangement to which
any Second Priority Agent or any Second Priority Secured Party either is a party or may have rights
as a third party beneficiary, or any other exercise by any such party, of any rights and remedies
relating to the Common Collateral or any other collateral under the Senior Lender Documents or
otherwise in respect of Senior Lender Claims, or (z) object to the forbearance by the Senior
Lenders from bringing or pursuing any foreclosure proceeding or action or any other exercise of any
rights or remedies relating to the Common Collateral or any other collateral in respect of Senior
Lender Claims and (ii) except as otherwise provided herein, each First Lien Agent and the Senior
Lenders shall have the exclusive right to enforce rights, exercise remedies (including setoff and
the right to credit bid their debt) and make determinations regarding the release, disposition or
restrictions with respect to the Common Collateral without any consultation with or the consent of
any Second Priority Agent or any Second Priority Secured Party; provided, however, that (A) in any
Insolvency or Liquidation Proceeding commenced by or against the Company or any other Grantor, each
Second Priority Agent may file a proof of claim or statement of interest with respect to the
applicable Second Priority Claims (B) each Second Priority Agent may take any action (not adverse
to the prior Liens on the Common Collateral securing the Senior Lender Claims, or the rights of
either First Lien Agent or the Senior Lenders to exercise remedies in respect thereof) in order to
create, prove, perfect, preserve or protect (but not enforce) its rights in, and perfection and
priority of its Lien on, the Common Collateral and (C) each Second Priority Agent may file any
pleadings, objections, motions or agreements which assert rights available to unsecured creditors
of the Company or any other Grantor arising under any Insolvency or Liquidation Proceeding or
applicable non-bankruptcy law. In exercising rights and remedies with respect to the Senior Lender
Collateral, each First Lien Agent and the Senior Lenders may enforce the provisions of the Senior
Lender Documents and exercise remedies thereunder, all in such order and in such manner as they may
determine in the exercise of their sole discretion. Such exercise and enforcement shall include
the rights of an agent appointed by them to sell or otherwise dispose of Common Collateral or other
collateral upon foreclosure, to incur expenses in connection with such sale or disposition, and to
exercise all the rights and remedies of a secured lender under the uniform commercial code of any
applicable jurisdiction and of a secured creditor under Bankruptcy Laws of any applicable
jurisdiction.

     (b) So long as the Discharge of Senior Lender Claims has not occurred, each Second Priority
Agent, on behalf of itself and each applicable Second Priority Secured Party, agrees that it will
not take or receive any Common Collateral or other collateral or any proceeds of Common Collateral
or other collateral in connection with the exercise of any right or remedy (including setoff or
recoupment) with respect to any Common Collateral or other collateral in respect of the applicable
Second Priority Claims. Without limiting the generality of the foregoing, unless and until the
Discharge of Senior Lender Claims has occurred, except as expressly provided in the proviso in
clause (ii) of Section 3.1(a), the sole right of the Second Priority Agents and the Second Priority
Secured Parties with respect to the Common Collateral or any other collateral is to hold a Lien on
the Common Collateral or such other collateral in respect of the applicable

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Second Priority Claims pursuant to the Second Priority Documents, as applicable, for the
period and to the extent granted therein and to receive a share of the proceeds thereof, if any,
after the Discharge of Senior Lender Claims has occurred.

     (c) Subject to the proviso in clause (ii) of Section 3.1(a) above, (i) each Second Priority
Agent, for itself and on behalf of each applicable Second Priority Secured Party, agrees that no
Second Priority Agent or any Second Priority Secured Party will take any action that would hinder
any exercise of remedies undertaken by any First Lien Agent or Senior Lenders with respect to the
Common Collateral or any other collateral under the Senior Lender Documents, including any sale,
lease, exchange, transfer or other disposition of the Common Collateral or such other collateral,
whether by foreclosure or otherwise, and (ii) each Second Priority Agent, for itself and on behalf
of each applicable Second Priority Secured Party, hereby waives any and all rights it or any Second
Priority Secured Party may have as a junior lien creditor or otherwise to object to the manner in
which any First Lien Agent or Senior Lenders seek to enforce or collect the Senior Lender Claims or
the Liens granted in any of the Senior Lender Collateral, regardless of whether any action or
failure to act by or on behalf of any First Lien Agent or Senior Lenders is adverse to the
interests of the Second Priority Secured Parties.

     (d) Each Second Priority Agent hereby acknowledges and agrees that no covenant, agreement or
restriction contained in any applicable Second Priority Document shall be deemed to restrict in any
way the rights and remedies of any First Lien Agent or Senior Lenders with respect to the Senior
Lender Collateral as set forth in this Agreement and the Senior Lender Documents.

          3.2. Cooperation. Subject to the proviso in clause (ii) of Section 3.1(a), each
Second Priority Agent, on behalf of itself and each applicable Second Priority Secured Party,
agrees that, unless and until the Discharge of Senior Lender Claims has occurred, it will not
commence, or join with any Person (other than the Senior Lenders and any First Lien Agent upon the
request thereof) in commencing, any enforcement, collection, execution, levy or foreclosure action
or proceeding with respect to any Lien held by it in the Common Collateral or any other collateral
under any of the applicable Second Priority Documents or otherwise in respect of the applicable
Second Priority Claims relating to the Common Collateral.

          3.3. Actions Upon Breach. If any Second Priority Secured Party, in contravention of
the terms of this Agreement, in any way takes, attempts to or threatens to take any action with
respect to the Common Collateral (including, without limitation, any attempt to realize upon or
enforce any remedy with respect to this Agreement), this Agreement shall create an irrebuttable
presumption and admission by such Second Priority Secured Party that relief against such Second
Priority Secured Party by injunction, specific performance and/or other appropriate equitable
relief is necessary to prevent irreparable harm to the Senior Lenders, it being understood and
agreed by each Second Priority Agent on behalf of each applicable Second Priority Secured Party
that (i) the Senior Lenders’ damages from its actions may at that time be difficult to ascertain
and may be irreparable, and (ii) each Second Priority Secured Party waives any defense that the
Grantors and/or the Senior Lenders cannot demonstrate damage and/or can be made whole by the
awarding of damages.

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          SECTION 4. Payments.

          4.1. Application of Proceeds. So long as the Discharge of Senior Lender Claims has
not occurred, the Common Collateral and any other collateral in respect of the Second Priority
Claims or proceeds thereof received in connection with the sale or other disposition of, or
collection on, such Common Collateral or other collateral upon the exercise of remedies as a
secured party, shall be applied by the First Lien Agents to the Senior Lender Claims in such order
as specified in the relevant Senior Lender Documents until the Discharge of Senior Lender Claims
has occurred. Upon the Discharge of Senior Lender Claims, subject to Section 5.7 hereof, each of
the First Lien Agents shall deliver promptly to the Second Priority Designated Agent any Common
Collateral or proceeds thereof held by it in the same form as received, with any necessary
endorsements or as a court of competent jurisdiction may otherwise direct to be applied by the
Second Priority Designated Agent ratably to the Second Priority Claims in such order as specified
in the Second Priority Documents.

          4.2. Payments Over. Any Common Collateral or other collateral in respect of the
Second Priority Claims or proceeds thereof received by any Second Priority Agent or any Second
Priority Secured Party in connection with the exercise of any right or remedy (including setoff or
recoupment) relating to the Common Collateral or such other collateral prior to the Discharge of
Senior Lender Claims shall be segregated and held in trust for the benefit of and forthwith paid
over to the First Priority Designated Agent (and/or its designees) for the benefit of the Senior
Lenders in the same form as received, with any necessary endorsements or as a court of competent
jurisdiction may otherwise direct. The First Lien Agents are each hereby individually authorized
to make any such endorsements as agent for any Second Priority Agent or any such Second Priority
Secured Party. This authorization is coupled with an interest and is irrevocable.

          SECTION 5. Other Agreements.

          5.1. Releases.

     (a) If, at any time any Grantor or the holder of any Senior Lender Claim delivers notice to
each Second Priority Agent that any specified Common Collateral (including all or substantially all
of the equity interests of a Grantor or any of its Subsidiaries) (including for such purpose, in
the case of the sale of equity interests in any Subsidiary, any Common Collateral held by such
Subsidiary or any direct or indirect Subsidiary thereof) is (A) sold, transferred or otherwise
disposed of:

          (i) by the owner of such Common Collateral in a transaction permitted under each Credit
Agreement, the Other First Priority Lien Obligations Credit Documents, the Second Priority Senior
Secured Notes Indenture and each other Senior Lender Document and Second Priority Document (if
any); or

          (ii) during the existence of any Event of Default under (and as defined in) any Credit
Agreement or the Other First Priority Lien Obligations Credit Documents to the extent that any of
the First Lien Agents has consented to such sale, transfer or disposition; or

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(B) or otherwise released as permitted by each Credit Agreement and the Other First Priority Lien
Obligations Credit Documents,

then (whether or not any Insolvency or Liquidation Proceeding is pending at the time) the Liens in
favor of the Second Priority Secured Parties upon such Common Collateral will automatically be
released and discharged as and when, but only to the extent, such Liens on such Common Collateral
securing Senior Lender Claims are released and discharged. Upon delivery to each Second Priority
Agent of a notice from any First Lien Agent stating that any release of Liens securing or
supporting the Senior Lender Claims has become effective (or shall become effective upon each
Second Priority Agent’s release) (whether in connection with a sale of such assets by the relevant
Grantor pursuant to the preceding sentence or otherwise), each Second Priority Agent will promptly
execute and deliver such instruments, releases, termination statements or other documents delivered
to it confirming such release on customary terms at the expense of the Company. In the case of the
sale of all or substantially all of the capital stock of a Grantor or any of its Subsidiaries, the
guarantee in favor of the Second Priority Secured Parties, if any, made by such Grantor or
Subsidiary will automatically be released and discharged as and when, but only to the extent, the
guarantee by such Grantor or Subsidiary of Senior Lender Claims is released and discharged.

     (b) Each Second Priority Agent, until Discharge of Senior Lender Claims, for itself and on
behalf of each applicable Second Priority Secured Party, hereby irrevocably constitutes and
appoints each First Lien Agent and any officer or agent of such First Lien Agent, with full power
of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority
in the place and stead of each Second Priority Agent or such holder or in such First Lien Agent’s
own name, from time to time in such First Lien Agent’s discretion, for the purpose of carrying out
the terms of this Section 5.1, to take any and all appropriate action and to execute any and all
documents and instruments that may be necessary or desirable to accomplish the purposes of this
Section 5.1, including any termination statements, endorsements or other instruments of transfer or
release.

     (c) Unless and until the Discharge of Senior Lender Claims has occurred, each Second Priority
Agent, for itself and on behalf of each applicable Second Priority Secured Party, hereby consents
to the application, whether prior to or after a default, of proceeds of Common Collateral or other
collateral to the repayment of Senior Lender Claims pursuant to the Senior Lender Documents;
provided that nothing in this Section 5.1(c) shall be construed to prevent or impair the rights of
the Second Priority Agents or the Second Priority Secured Parties to receive proceeds in connection
with the Second Priority Claims not otherwise in contravention of this Agreement.

          5.2. Insurance. Unless and until the Discharge of Senior Lender Claims has occurred,
each First Lien Agent and the Senior Lenders shall have the sole and exclusive right, subject to
the rights of the Grantors under the Senior Lender Documents, to adjust settlement for any
insurance policy covering the Common Collateral or any other collateral in respect of the Second
Priority Claims in the event of any loss thereunder and to approve any award granted in any
condemnation or similar proceeding affecting the Common Collateral or such other collateral. Unless
and until the Discharge of Senior Lender Claims has occurred, all proceeds of any such policy and
any such award if in respect of the Common Collateral or such other

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collateral shall be paid (a) first, prior to the occurrence of the Discharge of Senior Lender
Claims, to the First Lien Agents for the benefit of Senior Lenders pursuant to the terms of the
Senior Lender Documents, (b) second, after the occurrence of the Discharge of Senior Lender Claims,
to the Second Priority Agents for the benefit of the Second Priority Secured Parties pursuant to
the terms of the applicable Second Priority Documents and (c) third, if no Second Priority Claims
are outstanding, to the owner of the subject property, such other person as may be entitled thereto
or as a court of competent jurisdiction may otherwise direct. If any Second Priority Agent or any
Second Priority Secured Party shall, at any time, receive any proceeds of any such insurance policy
or any such award in contravention of this Agreement, it shall pay such proceeds over to any First
Lien Agent in accordance with the terms of Section 4.2.

          5.3. Amendments to Second Priority Collateral Documents.

     (a) So long as the Discharge of Senior Lender Claims has not occurred, without the prior
written consent of the First Lien Agents, no Second Priority Collateral Document may be amended,
supplemented or otherwise modified or entered into to the extent such amendment, supplement or
modification, or the terms of any new Second Priority Collateral Document, would be prohibited by
or inconsistent with any of the terms of this Agreement. Each applicable Second Priority
Collateral Document executed as of the date hereof shall include the following language (or
language to similar effect approved by the First Lien Agents):

     “Notwithstanding anything herein to the contrary, (i) the liens and security interests granted
to the [applicable Second Priority Agent] pursuant to this agreement are expressly subject and
subordinate to the liens and security interests granted to Credit Suisse AG, Cayman Islands Branch
(f/k/a Credit Suisse, Cayman Islands Branch), as collateral agent (and its permitted successors),
for the benefit of the secured parties referred to below, pursuant to the Guarantee and Collateral
Agreement dated as of May 29, 2007 (as amended, amended and restated, supplemented or otherwise
modified from time to time), from the Company and the other “Pledgors” referred to therein, in
favor of Credit Suisse, AG Cayman Islands Branch (f/k/a Credit Suisse, Cayman Islands Branch), as
collateral agent for the benefit of the secured parties referred to therein, [and to the liens and
security interests granted to [Other First Priority Lien Obligations Collateral Agent] pursuant to
[Other First Priority Lien Obligations Security Document] (as amended, supplemented or otherwise
modified from time to time)], and (ii) the exercise of any right or remedy by the [applicable
Second Priority Agent] hereunder is subject to the limitations and provisions of the Intercreditor
Agreement dated as of March 4, 2011 (as amended, restated, supplemented or otherwise modified from
time to time, the “Intercreditor Agreement”), by and among Credit Suisse AG, Cayman Islands Branch,
in its capacity as Credit Agreement Agent, The Bank of New York Mellon Trust Company, N.A., in its
capacity as Trustee, Holdings, the Company and the subsidiaries party thereto. In the event of any
conflict between the terms of the Intercreditor Agreement and the terms of this agreement, the
terms of the Intercreditor Agreement shall govern.”

     (b) In the event that the First Lien Agents or the Senior Lenders enter into any amendment,
waiver or consent in respect of or replace any of the Senior Collateral Document for the purpose of
adding to, or deleting from, or waiving or consenting to any departures from any provisions of, any
Senior Collateral Document or changing in any manner the rights of the First Lien Agents, the
Senior Lenders, the Company or any other Grantor thereunder (including the

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release of any Liens in Senior Lender Collateral), then such amendment, waiver or consent
shall apply automatically to any comparable provision of each Comparable Second Priority Collateral
Document without the consent of any Second Priority Agent or any Second Priority Secured Party and
without any action by any Second Priority Agent, any Second Priority Senior Secured Party, the
Company or any other Grantor; provided, that such amendment, waiver or consent does not materially
adversely affect the rights of the Second Priority Secured Parties or the interests of the Second
Priority Secured Parties in the Second Priority Collateral and not the other creditors of the
Company or such Grantor, as the case may be, that have a security interest in the affected
collateral in a like or similar manner (without regard to the fact that the Lien of such Senior
Collateral Document is senior to the Lien of the Comparable Second Priority Collateral Document).
The relevant First Lien Agent may give written notice of such amendment, waiver or consent to each
Second Priority Agent; provided that the failure to give such notice shall not affect the
effectiveness of such amendment, waiver or consent with respect to the provisions of any Second
Priority Collateral Document as set forth in this Section 5.3(b).

     (c) Anything contained herein to the contrary notwithstanding, until the Discharge of Senior
Lender Claims has occurred, no Second Priority Collateral Document shall be entered into unless the
collateral covered thereby is also subject to a perfected first-priority interest in favor of the
First Lien Agents for the benefit of the Senior Lenders pursuant to the Senior Collateral
Documents.

          5.4. Rights As Unsecured Creditors. Notwithstanding anything to the contrary in this
Agreement, the Second Priority Agents and the Second Priority Secured Parties may exercise rights
and remedies as an unsecured creditor against the Company or any Grantor that has guaranteed the
Second Priority Claims in accordance with the terms of the applicable Second Priority Documents and
applicable law, in each case to the extent not inconsistent with the provisions of this Agreement.
Nothing in this Agreement shall prohibit the receipt by any Second Priority Agent or any Second
Priority Secured Party of the required payments of interest and principal so long as such receipt
is not the direct or indirect result of (a) the exercise by any Second Priority Agent or any Second
Priority Secured Party of rights or remedies as a secured creditor in respect of Common Collateral
or other collateral or (b) enforcement in contravention of this Agreement of any Lien in respect of
Second Priority Claims held by any of them. In the event any Second Priority Agent or any Second
Priority Secured Party becomes a judgment lien creditor or other secured creditor in respect of
Common Collateral or other collateral as a result of its enforcement of its rights as an unsecured
creditor in respect of Second Priority Claims or otherwise, such judgment or other lien shall be
subordinated to the Liens securing Senior Lender Claims on the same basis as the other Liens
securing the Second Priority Claims are so subordinated to such Liens securing Senior Lender Claims
under this Agreement. Nothing in this Agreement impairs or otherwise adversely affects any rights
or remedies the First Lien Agents or the Senior Lenders may have with respect to the Senior Lender
Collateral.

          5.5. First Lien Agents as Gratuitous Bailees for Perfection.

     (a) Each First Lien Agent agrees to hold the Pledged Collateral that is part of the Common
Collateral that is in its possession or control (or in the possession or control of its agents or
bailees) as gratuitous bailee for each Second Priority Agent and any assignee solely for the
purpose of perfecting the security interest granted in such Pledged Collateral pursuant to the

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Second Priority Collateral Agreements, subject to the terms and conditions of this Section 5.5
(such bailment being intended, among other things, to satisfy the requirements of Sections
8-106(d)(3), 8-301(a)(2) and 9-313(c) of the UCC).

     (b) In the event that any First Lien Agent (or its agent or bailees) has Lien filings against
Intellectual Property (as defined in the Senior Collateral Agreement) that is part of the Common
Collateral that are necessary for the perfection of Liens in such Common Collateral, such First
Lien Agent agrees to hold such Liens as gratuitous bailee for each Second Priority Agent and any
assignee solely for the purpose of perfecting the security interest granted in such Liens pursuant
to the Second Priority Collateral Agreements, subject to the terms and conditions of this Section
5.5.

     (c) Except as otherwise specifically provided herein (including Sections 3.1 and 4.1), until
the Discharge of Senior Lender Claims has occurred, any First Lien Agent shall be entitled to deal
with the Pledged Collateral in accordance with the terms of the Senior Lender Documents as if the
Liens under the Second Priority Collateral Documents did not exist. The rights of the Second
Priority Agents and the Second Priority Secured Parties with respect to such Pledged Collateral
shall at all times be subject to the terms of this Agreement.

     (d) The First Lien Agents shall have no obligation whatsoever to any Second Priority Agent or
any Second Priority Secured Party to assure that the Pledged Collateral is genuine or owned by the
Grantors or to protect or preserve rights or benefits of any Person or any rights pertaining to the
Common Collateral except as expressly set forth in this Section 5.5. The duties or responsibilities
of the First Lien Agents under this Section 5.5 shall be limited solely to holding the Pledged
Collateral as gratuitous bailee for each Second Priority Agent for purposes of perfecting the Lien
held by the Second Priority Secured Parties.

     (e) The First Lien Agents shall not have by reason of the Second Priority Collateral
Documents or this Agreement or any other document a fiduciary relationship in respect of any Second
Priority Agent or any Second Priority Secured Party and the Second Priority Agents and the Second
Priority Secured Parties hereby waive and release the First Lien Agents from all claims and
liabilities arising pursuant to the First Lien Agents’ role under this Section 5.5, as agent and
gratuitous bailee with respect to the Common Collateral.

     (f) Upon the Discharge of Senior Lender Claims, the relevant First Lien Agent shall deliver
to the Second Priority Designated Agent the remaining Pledged Collateral (if any) and to the extent
such Pledged Collateral is in the possession or control of such First Lien Agent (or its agents or
bailees) together with any necessary endorsements (or otherwise allow the Second Priority
Designated Agent to obtain control of such Pledged Collateral) or as a court of competent
jurisdiction may otherwise direct. The Company shall take such further action as is required to
effectuate the transfer contemplated hereby and shall indemnify the First Lien Agents for loss or
damage suffered by any First Lien Agent as a result of such transfer except for loss or damage
suffered by any First Lien Agent as a result of its own willful misconduct, gross negligence or bad
faith. The First Lien Agents have no obligation to follow instructions from any Second Priority
Agent in contravention of this Agreement.

17

 

     (g) Neither the First Lien Agents nor the Senior Lenders shall be required to marshal any
present or future collateral security for the Company’s or its Subsidiaries’ obligations to the
First Lien Agents or the Senior Lenders under the Credit Agreement or the Senior Collateral
Documents or any assurance of payment in respect thereof or to resort to such collateral security
or other assurances of payment in any particular order, and all of their rights in respect of such
collateral security or any assurance of payment in respect thereof shall be cumulative and in
addition to all other rights, however existing or arising.

          5.6. Second Priority Designated Agent as Gratuitous Bailee for Perfection.

     (a) Upon the Discharge of Senior Lender Claims, the Second Priority Designated Agent agrees
to hold the Pledged Collateral that is part of the Common Collateral in its possession or control
(or in the possession or control of its agents or bailees) as gratuitous bailee for the other
Second Priority Agents and any assignee solely for the purpose of perfecting the security interest
granted in such Pledged Collateral pursuant to the applicable Second Priority Collateral Agreement,
subject to the terms and conditions of this Section 5.6.

     (b) In the event that the Second Priority Designated Agent (or its agent or bailees) has Lien
filings against Intellectual Property (as defined in the Senior Collateral Agreement) that is part
of the Common Collateral that are necessary for the perfection of Liens in such Common Collateral,
upon the Discharge of Senior Lender Claims, the Second Priority Designated Agent agrees to hold
such Liens as gratuitous bailee for the other Second Priority Agents and any assignee solely for
the purpose of perfecting the security interest granted in such Liens pursuant to the applicable
Second Priority Collateral Agreement, subject to the terms and conditions of this Section 5.6.

     (c) The Second Priority Designated Agent, in its capacity as gratuitous bailee, shall have no
obligation whatsoever to the other Second Priority Agents to assure that the Pledged Collateral is
genuine or owned by the Grantors or to protect or preserve rights or benefits of any Person or any
rights pertaining to the Common Collateral except as expressly set forth in this Section 5.6. The
duties or responsibilities of the Second Priority Designated Agent under this Section 5.6 upon the
Discharge of Senior Lender Claims shall be limited solely to holding the Pledged Collateral as
gratuitous bailee for the other Second Priority Agents for purposes of perfecting the Lien held by
the applicable Second Priority Secured Parties.

     (d) The Second Priority Designated Agent shall not have by reason of the Second Priority
Collateral Documents or this Agreement or any other document a fiduciary relationship in respect of
the other Second Priority Agents (or the Second Priority Secured Parties for which such other
Second Priority Agents are agents) and the other Second Priority Agents hereby waive and release
the Second Priority Designated Agent from all claims and liabilities arising pursuant to the Second
Priority Designated Agent’s role under this Section 5.6, as agent and gratuitous bailee with
respect to the Common Collateral.

     (e) In the event that the Second Priority Designated Agent shall cease to be so designated
the Second Priority Designated Agent pursuant to the definition of such term, the then Second
Priority Designated Agent shall deliver to the successor Second Priority Designated Agent, to the
extent that it is legally permitted to do so, the remaining Pledged Collateral (if any), together

18

 

with any necessary endorsements (or otherwise allow the successor Second Priority Designated
Agent to obtain control of such Pledged Collateral) or as a court of competent jurisdiction may
otherwise direct, and such successor Second Priority Designated Agent shall perform all duties of
the Second Priority Designated Agent as set forth herein. The Company shall take such further
action as is required to effectuate the transfer contemplated hereto and shall indemnify the Second
Priority Designated Agent for loss or damage suffered by the Second Priority Designated Agent as a
result of such transfer except for loss or damage suffered by the Second Priority Designated Agent
as a result of its own willful misconduct, gross negligence or bad faith. The Second Priority
Designated Agent has no obligation to follow instructions from the successor Second Priority
Designated Agent in contravention of this Agreement.

          5.7. Release Upon Discharge of Senior Lender Claims; No Release If Event of Default;
Reinstatement.

     (a) Except as otherwise provided in clause (b) and (c) of this Section 5.7, upon the
Discharge of Senior Lender Claims and the concurrent release of the Liens securing Senior Lender
Claims, the Liens in favor of the Second Priority Secured Parties shall automatically be released
and discharged.

     (b) Notwithstanding any other provisions contained in this Agreement, if an Event of Default
(as defined in the Second Priority Senior Secured Notes Indenture or any other Second Priority
Document, as applicable) exists on the date of Discharge of Senior Lender Claims, the Second
Priority Liens on the Second Priority Collateral securing the Second Priority Claims relating to
such Event of Default will not be released, except to the extent such Second Priority Collateral or
any portion thereof was disposed of in order to repay Senior Lender Claims secured by such Second
Priority Collateral, and thereafter the applicable Second Priority Agent will have the right to
foreclose upon such Second Priority Collateral (but in such event, the Liens on such Second
Priority Collateral securing the applicable Second Priority Claims will be released when such Event
of Default and all other Events of Default under the Second Priority Senior Secured Notes Indenture
or any other Second Priority Document, as applicable, cease to exist).

     (c) If, at any time after the Discharge of Senior Lender Claims has occurred, the Company
incurs and designates any Senior Lender Claims, then such Discharge of Senior Lender Claims shall
automatically be deemed not to have occurred for all purposes of this Agreement (other than with
respect to any actions taken prior to the date of such designation as a result of the occurrence of
such first Discharge of Senior Lender Claims), and the applicable agreement governing such Senior
Lender Claims shall automatically be treated as the Credit Agreement for all purposes of this
Agreement, including for purposes of the Lien priorities and rights in respect of Common Collateral
set forth herein and the granting by the First Lien Agents of amendments, waivers and consents
hereunder. Upon receipt of notice of such designation (including the identity of any new First
Lien Agent), each Second Priority Agent shall promptly (i) enter into such documents and agreements
(at the expense of the Company), including amendments or supplements to this Agreement, as the
Company or such new First Lien Agent shall reasonably request in writing in order to provide the
new First Lien Agent the rights of the First Lien Agents contemplated hereby and (ii) to the extent
then held by any Second Priority Agent, deliver to either First Lien Agent the Pledged Collateral
that is Common Collateral

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together with any necessary endorsements (or otherwise allow such First Lien Agent to obtain
possession or control of such Pledged Collateral).

          SECTION 6. Insolvency or Liquidation Proceedings.

          6.1. Financing Issues. If the Company or any other Grantor shall be subject to any
Insolvency or Liquidation Proceeding and any First Lien Agent shall desire to permit the use of
cash collateral or to permit the Company or any other Grantor to obtain financing under Section 363
or Section 364 of Title 11 of the United States Code or any similar provision in any Bankruptcy Law
(“DIP Financing”), then each Second Priority Agent, on behalf of itself and each applicable Second
Priority Secured Party, agrees that it will raise no objection to, and will not support any
objection to, and will not otherwise contest (a) such use of cash collateral or DIP Financing and
will not request adequate protection or any other relief in connection therewith (except to the
extent permitted by Section 6.3) and, to the extent the Liens securing the Senior Lender Claims
under the Senior Lender Documents are subordinated or pari passu with such DIP Financing, will
subordinate its Liens in the Common Collateral and any other collateral to such DIP Financing (and
all Obligations relating thereto) on the same basis as the other Liens securing the Second Priority
Claims are so subordinated to Liens securing Senior Lender Claims under this Agreement, (b) any
motion for relief from the automatic stay or from any injunction against foreclosure or enforcement
in respect of Senior Lender Claims made by any First Lien Agent or any holder of Senior Lender
Claims, (c) any lawful exercise by any holder of Senior Lender Claims of the right to credit bid
Senior Lender Claims at any sale in foreclosure of Senior Lender Collateral, (d) any other request
for judicial relief made in any court by any holder of Senior Lender Claims relating to the lawful
enforcement of any Lien on Senior Lender Collateral or (e) any order relating to a sale of assets
of any Grantor for which any First Lien Agent has consented that provides, to the extent the sale
is to be free and clear of Liens, that the Liens securing the Senior Lender Claims and the Second
Priority Claims will attach to the proceeds of the sale on the same basis of priority as the Liens
securing the Senior Lender Collateral do to the Liens securing the Second Priority Collateral in
accordance with this Agreement.

          6.2. Relief from the Automatic Stay. Until the Discharge of Senior Lender Claims has
occurred, each Second Priority Agent, on behalf of itself and each applicable Second Priority
Secured Party, agrees that none of them shall seek relief from the automatic stay or any other stay
in any Insolvency or Liquidation Proceeding in respect of the Common Collateral or any other
collateral, without the prior written consent of all First Lien Agents.

          6.3. Adequate Protection. Each Second Priority Agent, on behalf of itself and each
applicable Second Priority Secured Party, agrees that none of them shall contest (or support any
other Person contesting) (a) any request by any First Lien Agent or Senior Lenders for adequate
protection or (b) any objection by any First Lien Agent or Senior Lenders to any motion, relief,
action or proceeding based on such First Lien Agent’s or the Senior Lenders’ claiming a lack of
adequate protection. Notwithstanding the foregoing, in any Insolvency or Liquidation Proceeding,
(i) if the Senior Lenders (or any subset thereof) are granted adequate protection in the form of
additional collateral in connection with any DIP Financing or use of cash collateral under Section
363 or Section 364 of Title 11 of the United States Bankruptcy Code or any similar Bankruptcy Law,
then each Second Priority Agent, on behalf of itself and any applicable Second Priority Secured
Party, (A) may seek or request adequate protection in the

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form of a replacement Lien on such additional collateral, which Lien is subordinated to the
Liens securing the Senior Lender Claims and such DIP Financing (and all Obligations relating
thereto) on the same basis as the other Liens securing the Second Priority Claims are so
subordinated to the Liens securing Senior Lender Claims under this Agreement and (B) agrees that it
will not seek or request, and will not accept, adequate protection in any other form, and (ii) in
the event any Second Priority Agent, on behalf of itself or any applicable Second Priority Secured
Party, seeks or requests adequate protection and such adequate protection is granted in the form of
additional collateral, then such Second Priority Agent, on behalf of itself or each such Second
Priority Secured Party, agrees that the First Lien Agents shall also be granted a senior Lien on
such additional collateral as security for the applicable Senior Lender Claims and any such DIP
Financing and that any Lien on such additional collateral securing the Second Priority Claims shall
be subordinated to the Liens on such collateral securing the Senior Lender Claims and any such DIP
Financing (and all Obligations relating thereto) and any other Liens granted to the Senior Lenders
as adequate protection on the same basis as the other Liens securing the Second Priority Claims are
so subordinated to such Liens securing Senior Lender Claims under this Agreement.

          6.4. Avoidance Issues. If any Senior Lender is required in any Insolvency or
Liquidation Proceeding or otherwise to turn over or otherwise pay to the estate of the Company or
any other Grantor (or any trustee, receiver or similar person therefor), because the payment of
such amount was declared to be fraudulent or preferential in any respect or for any other reason,
any amount (a “Recovery”), whether received as proceeds of security, enforcement of any right of
setoff or otherwise, then as among the parties hereto the Senior Lender Claims shall be deemed to
be reinstated to the extent of such Recovery and to be outstanding as if such payment had not
occurred and the Senior Lenders shall be entitled to a Discharge of Senior Lender Claims with
respect to all such recovered amounts and shall have all rights hereunder until such time. If this
Agreement shall have been terminated prior to such Recovery, this Agreement shall be reinstated in
full force and effect, and such prior termination shall not diminish, release, discharge, impair or
otherwise affect the obligations of the parties hereto.

          6.5. Application. This Agreement shall be applicable prior to and after the
commencement of any Insolvency or Liquidation Proceeding. All references herein to any Grantor
shall apply to any trustee for such Person and such Person as debtor in possession. The relative
rights as to the Common Collateral and other collateral and proceeds thereof shall continue after
the filing thereof on the same basis as prior to the date of the petition, subject to any court
order approving the financing of, or use of cash collateral by, any Grantor.

          6.6. Waivers. Until the Discharge of Senior Lender Claims has occurred, each Second
Priority Agent, on behalf of itself and each applicable Second Priority Secured Party, (a) will not
assert or enforce any claim under Section 506(c) of the United States Bankruptcy Code senior to or
on a parity with the Liens securing the Senior Lender Claims for costs or expenses of preserving or
disposing of any Common Collateral or other collateral, and (b) waives any claim it may now or
hereafter have arising out of the election by any Senior Lender of the application of Section
1111(b)(2) of the Bankruptcy Code.

21

 

          SECTION 7. Reliance; Waivers; etc.

          7.1. Reliance. The consent by the Senior Lenders to the execution and delivery of
the Second Priority Documents to which the Senior Lenders have consented and all loans and other
extensions of credit made or deemed made on and after May 29, 2007 by the Senior Lenders to the
Company or any Subsidiary shall be deemed to have been given and made in reliance upon this
Agreement. Each Second Priority Agent, on behalf of itself and each applicable Second Priority
Secured Party, acknowledges that it and the applicable Second Priority Secured Parties is not
entitled to rely on any credit decision or other decisions made by any First Lien Agent or any
Senior Lender in taking or not taking any action under the applicable Second Priority Document or
this Agreement.

          7.2. No Warranties or Liability. Neither any First Lien Agent nor any Senior Lender
shall have been deemed to have made any express or implied representation or warranty upon which
the Second Priority Agent or the Second Priority Secured Parties may rely, including with respect
to the execution, validity, legality, completeness, collectibility or enforceability of any of the
Senior Lender Documents, the ownership of any Common Collateral or the perfection or priority of
any Liens thereon. The Senior Lenders will be entitled to manage and supervise their respective
loans and extensions of credit under the Senior Lender Documents in accordance with law and as they
may otherwise, in their sole discretion, deem appropriate, and the Senior Lenders may manage their
loans and extensions of credit without regard to any rights or interests that any Second Priority
Agent or any of the Second Priority Secured Parties have in the Common Collateral or otherwise,
except as otherwise provided in this Agreement. Neither any First Lien Agent nor any Senior Lender
shall have any duty to any Second Priority Agent or any Second Priority Secured Party to act or
refrain from acting in a manner that allows, or results in, the occurrence or continuance of an
event of default or default under any agreements with the Company or any Subsidiary thereof
(including the Second Priority Documents), regardless of any knowledge thereof that they may have
or be charged with. Except as expressly set forth in this Agreement, the First Lien Agents, the
Senior Lenders, the Second Priority Agents and the Second Priority Secured Parties have not
otherwise made to each other, nor do they hereby make to each other, any warranties, express or
implied, nor do they assume any liability to each other with respect to (a) the enforceability,
validity, value or collectibility of any of the Second Priority Claims, the Senior Lender Claims or
any guarantee or security which may have been granted to any of them in connection therewith, (b)
the Company’s title to or right to transfer any of the Common Collateral or (c) any other matter
except as expressly set forth in this Agreement.

          7.3. Obligations Unconditional. All rights, interests, agreements and obligations of
the First Lien Agents and the Senior Lenders, and the Second Priority Agents and the Second
Priority Secured Parties, respectively, hereunder shall remain in full force and effect
irrespective of:

     (a) any lack of validity or enforceability of any Senior Lender Documents or any Second
Priority Documents;

     (b) any change in the time, manner or place of payment of, or in any other terms of, all or
any of the Senior Lender Claims or Second Priority Claims, or any amendment or waiver or other
modification, including any increase in the amount thereof, whether by course of conduct

22

 

or otherwise, of the terms of the Credit Agreement or any other Senior Lender Document or of
the terms of the Second Priority Senior Secured Notes Indenture or any other Second Priority
Document;

     (c) any exchange of any security interest in any Common Collateral or any other collateral, or
any amendment, waiver or other modification, whether in writing or by course of conduct or
otherwise, of all or any of the Senior Lender Claims or Second Priority Claims or any guarantee
thereof;

     (d) the commencement of any Insolvency or Liquidation Proceeding in respect of the Company or
any other Grantor; or

     (e) any other circumstances that otherwise might constitute a defense available to, or a
discharge of, the Company or any other Grantor in respect of the Senior Lender Claims, or of any
Second Priority Agent or any Second Priority Secured Party in respect of this Agreement.

          SECTION 8. Miscellaneous.

          8.1. Conflicts. Subject to Section 8.19, in the event of any conflict between the
provisions of this Agreement and the provisions of any Senior Lender Document or any Second
Priority Document, the provisions of this Agreement shall govern.

          8.2. Continuing Nature of this Agreement; Severability. Subject to Section 6.4, this
Agreement shall continue to be effective until the Discharge of Senior Lender Claims shall have
occurred or such later time as all the Obligations in respect of the Second Priority Claims shall
have been paid in full. This is a continuing agreement of lien subordination and the Senior Lenders
may continue, at any time and without notice to each Second Priority Agent or any Second Priority
Secured Party, to extend credit and other financial accommodations and lend monies to or for the
benefit of the Company or any other Grantor constituting Senior Lender Claims in reliance hereon.
The terms of this Agreement shall survive, and shall continue in full force and effect, in any
Insolvency or Liquidation Proceeding. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          8.3. Amendments; Waivers. No amendment, modification or waiver of any of the
provisions of this Agreement by any Second Priority Agent or any First Lien Agent shall be deemed
to be made unless the same shall be in writing signed on behalf of the party making the same or its
authorized agent and each waiver, if any, shall be a waiver only with respect to the specific
instance involved and shall in no way impair the rights of the parties making such waiver or the
obligations of the other parties to such party in any other respect or at any other time. The
Company and the other Grantors shall not have any right to consent to or approve any amendment,
modification or waiver of any provision of this Agreement except to the extent their rights are
adversely affected. Notwithstanding anything in this Section 8.3 to the contrary, this Agreement
may be amended from time to time at the request of the Company, at the Company’s expense, and
without the consent of any Second Priority Agent, any First Lien Agent, any Senior Lender or any
Second Priority Secured Party to (i) add other parties holding Future Second Lien

23

 

Indebtedness (or any agent or trustee therefor) to the extent such Indebtedness is not
prohibited by the Credit Agreement, the Other First Priority Lien Obligations Credit Documents, the
Second Priority Senior Secured Notes Indenture or any other Second Priority Document governing
Future Second Lien Indebtedness, (ii) add other parties holding Obligations arising under the Other
First Priority Lien Obligations Credit Documents (or any agent or trustee thereof) to the extent
such Obligations are not prohibited by the Credit Agreement, the Other First Priority Lien
Obligations Credit Documents, the Second Priority Senior Secured Notes Indenture or any other
Second Priority Document governing Future Second Lien Indebtedness and (iii) in the case of Future
Second Lien Indebtedness, (a) establish that the Lien on the Common Collateral securing such Future
Second Lien Indebtedness shall be junior and subordinate in all respects to all Liens on the Common
Collateral securing any Senior Lender Claims and shall share in the benefits of the Common
Collateral equally and ratably with all Liens on the Common Collateral securing any Second Priority
Claims, and (b) provide to the holders of such Future Second Lien Indebtedness (or any agent or
trustee thereof) the comparable rights and benefits (including any improved rights and benefits
that have been consented to by the First Lien Agents) as are provided to the holders of Second
Priority Claims under this Agreement. Any such additional party, each First Lien Agent and each
Second Priority Agent shall be entitled to rely on the determination of officers of the Company
that such modifications do not violate the Credit Agreement, the Other First Priority Lien
Obligations Credit Documents, the Second Priority Senior Secured Notes Indenture or any other
Second Priority Document governing Future Second Lien Indebtedness if such determination is set
forth in an Officers’ Certificate delivered to such party, the First Lien Agents and each Second
Priority Agent; provided, however, that such determination will not affect whether or not the
Company has complied with its undertakings in the Credit Agreement, the Other First Priority Lien
Obligations Credit Documents, the Senior Collateral Documents, the Second Priority Senior Secured
Notes Indenture, any other Second Priority Document governing Future Second Lien Indebtedness, the
Second Priority Collateral Documents or this Agreement.

          8.4. Information Concerning Financial Condition of the Company and the Subsidiaries.
Neither any First Lien Agent nor any Senior Lender shall have any obligation to the Second Priority
Agent or any Second Priority Secured Party to keep the Second Priority Agent or any Second Priority
Secured Party informed of, and the Second Priority Agent and the Second Priority Secured Parties
shall not be entitled to rely on the First Lien Agents or the Senior Lenders with respect to, (a)
the financial condition of the Company and the Subsidiaries and all endorsers, pledgors and/or
guarantors of the Second Priority Claims or the Senior Lender Claims and (b) all other
circumstances bearing upon the risk of nonpayment of the Second Priority Claims or the Senior
Lender Claims. Neither any Second Priority Agent nor any Second Priority Secured Party shall have
any obligation to any First Lien Agent or any Senior Lender to keep any First Lien Agent or any
Senior Lender informed of, and the First Lien Agents and the Senior Lenders shall not be entitled
to rely on the Second Priority Agents or the Second Priority Secured Parties with respect to, (a)
the financial condition of the Company and the Subsidiaries and all endorsers, pledgors and/or
guarantors of the Second Priority Claims or the Senior Lender Claims and (b) all other
circumstances bearing upon the risk of nonpayment of the Second Priority Claims or the Senior
Lender Claims. The First Lien Agents, the Senior Lenders, each Second Priority Agent and the
Second Priority Secured Parties shall have no duty to advise any other party hereunder of
information known to it or them regarding such condition or any such circumstances or otherwise.
In the event that any First Lien Agent, any Senior Lender, any

24

 

Second Priority Agent or any Second Priority Secured Party, in its or their sole
discretion, undertakes at any time or from time to time to provide any such information to any
other party, it or they shall be under no obligation (w) to make, and the First Lien Agents, the
Senior Lenders, the Second Priority Agents and the Second Priority Secured Parties shall not make,
any express or implied representation or warranty, including with respect to the accuracy,
completeness, truthfulness or validity of any such information so provided, (x) to provide any
additional information or to provide any such information on any subsequent occasion, (y) to
undertake any investigation or (z) to disclose any information that, pursuant to accepted or
reasonable commercial finance practices, such party wishes to maintain confidential or is otherwise
required to maintain confidential.

          8.5. Subrogation. Each Second Priority Agent, on behalf of itself and each
applicable Second Priority Secured Party, hereby waives any rights of subrogation it may acquire as
a result of any payment hereunder until the Discharge of Senior Lender Claims has occurred.

          8.6. Application of Payments. Except as otherwise provided herein, all payments
received by the Senior Lenders may be applied, reversed and reapplied, in whole or in part, to such
part of the Senior Lender Claims as the Senior Lenders, in their sole discretion, deem appropriate,
consistent with the terms of the Senior Lender Documents. Except as otherwise provided herein,
each Second Priority Agent, on behalf of itself and each applicable Second Priority Secured Party,
assents to any such extension or postponement of the time of payment of the Senior Lender Claims or
any part thereof and to any other indulgence with respect thereto, to any substitution, exchange or
release of any security that may at any time secure any part of the Senior Lender Claims and to the
addition or release of any other Person primarily or secondarily liable therefor.

          8.7. Consent to Jurisdiction; Waivers. The parties hereto consent to the
nonexclusive jurisdiction of any state or federal court located in New York, New York (the “New
York Courts”), and consent that all service of process may be made by registered mail directed to
such party as provided in Section 8.8 for such party. Service so made shall be deemed to be
completed three days after the same shall be posted as aforesaid. The parties hereto waive any
objection to any action instituted hereunder in any such court based on forum non conveniens, and
any objection to the venue of any action instituted hereunder in any such court. Each of the
parties hereto waives any right it may have to trial by jury in respect of any litigation based on,
or arising out of, under or in connection with this Agreement, or any course of conduct, course of
dealing, verbal or written statement or action of any party hereto in connection with the subject
matter hereof.

          8.8. Notices. All notices to the Second Priority Secured Parties and the Senior
Lenders permitted or required under this Agreement may be sent to the Trustee, the First Lien
Agents or any Second Priority Agent as provided in the Second Priority Senior Secured Notes
Indenture, the Credit Agreement, the Other First Priority Lien Obligations Credit Documents, the
other relevant Senior Lender Documents or the other relevant Second Priority Documents, as
applicable. Unless otherwise specifically provided herein, any notice or other communication
herein required or permitted to be given shall be in writing and may be personally served,
telecopied, electronically mailed or sent by courier service or U.S. mail and shall be deemed to
have been given when delivered in person or by courier service, upon receipt of a telecopy or

25

 

electronic mail or upon receipt via U.S. mail (registered or certified, with postage prepaid
and properly addressed). For the purposes hereof, the addresses of the parties hereto shall be as
set forth below each party’s name on the signature pages hereto, or, as to each party, at such
other address as may be designated by such party in a written notice to all of the other parties.
The First Lien Agents hereby agree to promptly notify each Second Priority Agent upon payment in
full in cash of all Obligations under the applicable Senior Lender Documents (except for contingent
indemnities and cost and reimbursement obligations to the extent no claim therefor has been made).

          8.9. Further Assurances. Each of the Second Priority Agents, on behalf of itself and
each applicable Second Priority Secured Party, and each applicable First Lien Agent, on behalf of
itself and each Senior Lender, agrees that each of them shall take such further action and shall
execute and deliver to each other First Lien Agent and Second Priority Agent, the Second Priority
Secured Parties and the Senior Lenders such additional documents and instruments (in recordable
form, if requested) as each other First Lien Agent and Second Priority Agent, the Second Priority
Secured Parties or the Senior Lenders may reasonably request, at the expense of the Company, to
effectuate the terms of and the lien priorities contemplated by this Agreement.

          8.10. Governing Law. This Agreement has been delivered and accepted in and shall be
deemed to have been made in New York, New York and shall be interpreted, and the rights and
liabilities of the parties bound hereby determined, in accordance with the laws of the State of New
York.

          8.11. Binding on Successors and Assigns. This Agreement shall be binding upon the
First Lien Agents, the Senior Lenders, the Second Priority Agents, the Second Priority Secured
Parties, Holdings, the Company, the Company’s Subsidiaries party hereto and their respective
permitted successors and assigns.

          8.12. Specific Performance. Each First Lien Agent may demand specific performance of
this Agreement. Each Second Priority Agent, on behalf of itself and each applicable Second
Priority Secured Party, hereby irrevocably waives any defense based on the adequacy of a remedy at
law and any other defense that might be asserted to bar the remedy of specific performance in any
action that may be brought by either First Lien Agent.

          8.13. Section Titles. The section titles contained in this Agreement are and shall
be without substantive meaning or content of any kind whatsoever and are not a part of this
Agreement.

          8.14. Counterparts. This Agreement may be executed in one or more counterparts,
including by means of facsimile, each of which shall be an original and all of which shall together
constitute one and the same document.

          8.15. Authorization. By its signature, each Person executing this Agreement on
behalf of a party hereto represents and warrants to the other parties hereto that it is duly
authorized to execute this Agreement. The First Lien Agents represent and warrant that this

26

 

Agreement is binding upon the Senior Lenders. The Trustee represents and warrants that this
Agreement is binding upon the Indenture Secured Parties.

          8.16. No Third Party Beneficiaries; Successors and Assigns. This Agreement and the
rights and benefits hereof shall inure to the benefit of, and be binding upon, each of the parties
hereto and their respective successors and assigns and shall inure to the benefit of each of, and
be binding upon, the holders of Senior Lender Claims and Second Priority Claims. No other Person
shall have or be entitled to assert rights or benefits hereunder.

          8.17. Effectiveness. This Agreement shall become effective when executed and
delivered by the parties hereto. This Agreement shall be effective both before and after the
commencement of any Insolvency or Liquidation Proceeding. All references to the Company or any
other Grantor shall include the Company or any other Grantor as debtor and debtor-in-possession and
any receiver or trustee for the Company or any other Grantor (as the case may be) in any Insolvency
or Liquidation Proceeding.

          8.18. First Lien Agents and Second Priority Agents. It is understood and agreed that
(a) Credit Suisse AG, Cayman Islands Branch, is entering into this Agreement in its capacity as
administrative agent under the Credit Agreement and the provisions of Article VIII of the Credit
Agreement applicable to Credit Suisse AG, Cayman Islands Branch, as administrative agent thereunder
shall also apply to Credit Suisse AG, Cayman Islands Branch, as Credit Agreement Agent hereunder,
and (b) The Bank of New York Mellon Trust Company, N.A. is entering into this Agreement in its
capacity as Trustee pursuant to the Indenture and Collateral Agent pursuant to the Noteholder
Collateral Agreement and, as such is entitled to all rights, privileges, protections, benefits,
immunities and indemnities provided in the Indenture and the Noteholder Collateral Agreement.

          8.19. Relative Rights. Notwithstanding anything in this Agreement to the contrary
(except to the extent contemplated by Section 5.3(b)), nothing in this Agreement is intended to or
will (a) amend, waive or otherwise modify the provisions of the Credit Agreement, the Other First
Priority Lien Obligations Credit Documents, the Second Priority Senior Secured Notes Indenture or
any other Senior Lender Documents or Second Priority Documents entered into in connection with the
Credit Agreement, tthe Other First Priority Lien Obligations Credit Documents, the Second Priority
Senior Secured Notes Indenture or any other Senior Lender Document or Second Priority Document or
permit Holdings, the Company or any Subsidiary to take any action, or fail to take any action, to
the extent such action or failure would otherwise constitute a breach of, or default under, the
Credit Agreement or any other Senior Lender Documents entered into in connection with the Credit
Agreement, the Other First Priority Lien Obligations Credit Documents, the Second Priority Senior
Secured Notes Indenture or any other Second Priority Documents, (b) change the relative priorities
of the Senior Lender Claims or the Liens granted under the Senior Lender Documents on the Common
Collateral (or any other assets) as among the Senior Lenders, (c) otherwise change the relative
rights of the Senior Lenders in respect of the Common Collateral as among such Senior Lenders or
(d) obligate Holdings, the Company or any Subsidiary to take any action, or fail to take any
action, that would otherwise constitute a breach of, or default under, the Credit Agreement, the
Other First Priority Lien Obligations Credit Documents or any other Senior Lender Document entered
into in connection with the Credit Agreement, the Other First Priority Lien Obligations Credit

27

 

Documents, the Second Priority Senior Secured Notes Indenture or any other Second Priority
Documents.

          8.20. References. Notwithstanding anything to the contrary in this Agreement, any
references contained herein to any Section, clause, paragraph, definition or other provision of the
Second Priority Senior Secured Notes Indenture (including any definition contained therein) shall
be deemed to be a reference to such Section, clause, paragraph, definition or other provision as in
effect on the date of this Agreement; provided that any reference to any such Section, clause,
paragraph or other provision shall refer to such Section, clause, paragraph or other provision of
the Second Priority Senior Secured Notes Indenture, as applicable (including any definition
contained therein), as amended or modified from time to time if such amendment or modification has
been (1) made in accordance with the Second Priority Senior Secured Notes Indenture, and (2)
approved in writing by, or on behalf of, the requisite Senior Lenders as are needed under the terms
of the Credit Agreement and the Other First Priority Lien Obligations Credit Documents, to approve
such amendment or modification.

          8.21. Supplements. Upon the execution by any Subsidiary of the Company of a
supplement hereto in form and substance satisfactory to the First Lien Agent, such Subsidiary shall
be a party to this Agreement and shall be bound by the provisions hereof to the same extent as the
Company and each other Grantor are so bound.

          8.22. Joinder Requirements. The Company may designate additional obligations as
Other First Priority Lien Obligations or Future Second Lien Indebtedness only if the incurrence of
such obligations is permitted under each of the Credit Agreement, the Second Priority Senior
Secured Notes Indenture and this Agreement. If so permitted, the Company shall (i) notify each
First Lien Agent and Second Priority Agent in writing of such designation and (ii) cause the
applicable Other First Priority Lien Obligations Administrative Agent and the applicable Other
First Priority Lien Obligations Collateral Agent or the administrative agent or trustee and
collateral agent for such Future Second Lien Indebtedness to execute and deliver to each First Lien
Agent and Second Priority Agent, a Joinder Agreement substantially in the form of Exhibit A hereto
(with appropriate adjustments in the case of Future Second Lien Indebtedness). Notwithstanding
anything to the contrary set forth in this Section 8.22 or in Section 8.3 hereof, any First Lien
Agent and/or any Second Priority Agent may, and, at the request of the Company, shall, in each
case, without the consent of any other First Lien Agent or Second Priority Agent, any Senior Lender
or any Second Priority Secured Party, enter into a supplemental agreement (which may take the form
of an amendment, an amendment and restatement or a supplement of this Agreement) to facilitate the
designation of such additional obligations as Other First Priority Lien Obligations or Future
Second Lien Indebtedness. Any such amendment may, among other things, (i) add other parties holding
Future Second Lien Indebtedness (or any agent or trustee therefor) to the extent such Indebtedness
is not prohibited by the Credit Agreement, the Other First Priority Lien Obligations Credit
Documents, the Second Priority Senior Secured Notes Indenture or any other Second Priority Document
governing Future Second Lien Indebtedness, (ii) add other parties holding Obligations arising under
the Other First Priority Lien Obligations Credit Documents (or any agent or trustee thereof) to the
extent such Obligations are not prohibited by the Credit Agreement, the Other First Priority Lien
Obligations Credit Documents, the Second Priority Senior Secured Notes Indenture or any other
Second Priority Document governing Future Second Lien Indebtedness,

28

 

(iii) in the case of Future Second Lien Indebtedness, (a) establish that the Lien on the
Common Collateral securing such Future Second Lien Indebtedness shall be junior and subordinate in
all respects to all Liens on the Common Collateral securing any Senior Lender Claims and shall
share in the benefits of the Common Collateral equally and ratably with all Liens on the Common
Collateral securing any Second Priority Claims, and (b) provide to the holders of such Future
Second Lien Indebtedness (or any agent or trustee thereof) the comparable rights and benefits
(including any improved rights and benefits that have been consented to by the First Lien Agents)
as are provided to the holders of Second Priority Claims under the foregoing Agreement prior to the
incurrence of such Future Second Lien Indebtedness, and (iv) in the case of Obligations arising
under Other First Priority Lien Obligations Credit Documents, (a) establish that the Lien on the
Common Collateral securing such Obligations shall be superior in all respects to all Liens on the
Common Collateral securing any Second Priority Claims and any Future Second Lien Indebtedness and
shall share in the benefits of the Common Collateral equally and ratably with all Liens on the
Common Collateral securing any other Senior Lender Claims, and (b) provide to the holders of such
Obligations arising under the Other First Priority Lien Obligations Credit Documents (or any agent
or trustee thereof) the comparable rights and benefits as are provided to the holders of Senior
Lender Claims under the foregoing Agreement prior to the incurrence of such Obligations. Any such
additional party, each First Lien Agent and each Second Priority Agent shall be entitled to rely on
the determination of officers of the Company that such modifications do not violate the Credit
Agreement, the Other First Priority Lien Obligations Credit Documents, the Second Priority Senior
Secured Notes Indenture or any other Second Priority Document governing Future Second Lien
Indebtedness if such determination is set forth in an officers’ certificate delivered to such
party, the First Lien Agents and each Second Priority Agent; provided, however, that such
determination will not affect whether or not the Company has complied with its undertakings in the
Credit Agreement, the Other First Priority Lien Obligations Credit Documents, the Senior Collateral
Documents, the Second Priority Senior Secured Notes Indenture, any other Second Priority Document
governing Future Second Lien Indebtedness or the Second Priority Collateral Documents.

          8.23. Intercreditor Agreements. Each party hereto agrees that the Senior Lenders (as
among themselves) and the Second-Priority Secured Parties (as among themselves) may each enter into
intercreditor agreements (or similar arrangements) with the applicable First Lien Agent or Second
Priority Agent governing the rights, benefits and privileges as among the Senior Lenders or the
Second-Priority Secured Parties, as the case may be, in respect of the Common Collateral, this
Agreement and the other Senior Collateral Documents or Second Priority Collateral Documents, as the
case may be, including as to application of proceeds of the Common Collateral, voting rights,
control of the Common Collateral and waivers with respect to the Common Collateral, in each case so
long as (A) the terms thereof do not violate or conflict with the provisions of this Agreement or
the other Senior Collateral Documents or Second Priority Collateral Documents, as the case maybe,
(B) in the case of any such intercreditor agreement (or similar arrangement) affecting any Senior
Lenders, the First Lien Agent acting on behalf of such Senior Lenders agrees in its sole discretion
to enter into any such intercreditor agreement (or similar arrangement) and (C) in the case of any
such intercreditor agreement (or similar arrangement) affecting the Senior Lenders holding Senior
Lender Claims under the Credit Agreement, such intercreditor agreement (or similar arrangement) is
permitted under the Credit Agreement or the Required Lenders otherwise authorize the applicable
First Lien Agent to enter into any such intercreditor agreement (or similar arrangement).
Notwithstanding the

29

 

preceding clauses (B) and (C), to the extent that the applicable First Lien Agent is not
authorized to enter into any such intercreditor agreement (or similar arrangement) or does not
agree to enter into such intercreditor agreement (or similar arrangement ), such intercreditor
agreement (or similar arrangement) shall not be binding upon the applicable First Lien Agent but,
subject to the immediately succeeding sentence, may still bind the other parties party thereto. In
any event, if a respective intercreditor agreement (or similar arrangement) exists, the provisions
thereof shall not be (or be construed to be) an amendment, modification or other change to this
Agreement or any other Senior Collateral Document or Second Priority Collateral Document, and the
provisions of this Agreement and the other Senior Collateral Documents and Second Priority
Collateral Documents shall remain in full force and effect in accordance with the terms hereof and
thereof (as such provisions may be amended, modified or otherwise supplemented from time to time in
accordance with the terms thereof, including to give effect to any intercreditor agreement (or
similar arrangement)).

[Remainder of page intentionally left blank]

30

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	CREDIT SUISSE AG, CAYMAN ISLANDS

BRANCH (f/k/a Credit Suisse, Cayman Islands
Branch),

as Credit Agreement Agent	 
	 
	 	By:  	/s/
Christopher Reo Day	 
	 	 	Name:  	Christopher Reo Day	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	/s/
Sanja Gazahi	 
	 	 	Name:  	Sanja Gazahi	 
	 	 	Title:  	Associate	 
	 

	 	 	 	 	 
	 	Address: 	Eleven Madison Avenue
	 	 	 	New York, NY 10010	 	 
	 	Attention: Agency Group

Telecopier: (212) 325-8304
 	 

Intercreditor Agreement Signature Page

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST 

COMPANY, N.A.,

as Trustee

 	 
	 	By:  	/s/
Geraldine Creswell 	 
	 	 	Name:  	Geraldine Creswell 	 
	 	 	Title:  	Vice President	 
	 
	 	Address: 10161 Centurion Parkway

Jacksonville, FL 32256

Attention: Corporate Trust Administration

Telecopier: (904) 645-1921
 	 

Intercreditor Agreement Signature Page

 

 

	 	 	 	 	 
	 	CLAIRE’S INC.

 	 
	 	By:  	/s/
J. Per Brodin	 
	 	 	Name:  	J. Per Brodin	 
	 	 	Title:  	Executive Vice President 

and Chief Financial
Officer
	 
	 
	 	CLAIRE’S STORES, INC.

 	 
	 	By:  	/s/
J. Per
Brodin	 
	 	 	Name:  	J. Per
Brodin	 
	 	 	Title:  	Executive Vice President 

and Chief Financial
Officer
	 
	 

	 	 	 	 	 
	 	 CLAIRE’S BOUTIQUES, INC.
 
	 	 CSI CANADA LLC
 	 
	 	 CLAIRE’S PUERTO RICO CORP.
 	 
	 	 CBI DISTRIBUTING CORP.
 	 
	 	 CLAIRE’S CANADA CORP.
 	 
	 	BMS DISTRIBUTING CORP.

 	 
	 	By:  	/s/
J. Per Brodin	 
	 	 	Name:  	J. Per Brodin	 
	 	 	Title:  	Executive Vice President 

and Chief Financial
Officer
	 
	 
	 	CSI CANADA LLC.

 	 
	 	By:  	/s/
J. Per Brodin	 
	 	 	Name:  	J. Per Brodin	 
	 	 	Title:  	Manager
	 

Intercreditor Agreement

 

 

SCHEDULE I

CLAIRE’S BOUTIQUES, INC.

CSI CANADA LLC

CLAIRE’S PUERTO RICO CORP.

CBI DISTRIBUTING CORP.

CLAIRE’S CANADA CORP.

BMS DISTRIBUTING CORP.

 

 

EXHIBIT A

Joinder Agreement

JOINDER AGREEMENT

          JOINDER AGREEMENT (this “Agreement”) dated as of [___] [__], [____], among [____________]
(the “New Agent”), as an Other First Priority Lien Obligations Agent, CREDIT SUISSE AG, CAYMAN
ISLANDS BRANCH as Credit Agreement Agent, The Bank of New York Mellon Trust Company, N.A., as
Trustee, and CLAIRE’S STORES, INC. (on behalf of itself and its subsidiaries), and any other First
Lien Agent and other Second Priority Agent from time to time a party hereto.

          This Agreement is supplemental to that certain Intercreditor Agreement, dated as of March 4,
2011 (as the same may be amended, restated, supplemented or otherwise modified from time to time,
the “Intercreditor Agreement”), between [________]. This Agreement has been entered into to record
the accession of the New Agent as Other First Priority Lien Obligations Agent under the
Intercreditor Agreement.

Definitions

          Capitalized terms used but not defined herein shall have the meanings assigned thereto in the
Intercreditor Agreement.

SECTION 1.

Accession

          1.1. The New Agent agrees to become, with immediate effect, a party to and agrees to be bound
by the terms of, the Intercreditor Agreement as an Other First Priority Lien Obligations Agent as
if it had originally been party to the Intercreditor Agreement as an Other First Priority Lien
Obligations Agent.

          1.2. The New Agent confirm that its address details for notices pursuant to the Intercreditor
Agreement are as follows: [_____________].

          1.3. Each party to this Agreement (other than the New Agent) confirms the acceptance of the
New Agent as an Other First Priority Lien Obligations Agent for purposes of the Intercreditor
Agreement.

          1.4. [________] is acting in the capacity of Other First Priority Lien Obligations Agent
solely for the Secured Parties under [_____________].

Intercreditor
Agreement Signature Page

 

 

SECTION 2.

Miscellaneous

          2.1. This Agreement shall be construed in accordance with and governed by the law of the
State of New York.

          2.2. This Agreement may be executed in counterparts, each of which shall constitute an
original but all of which when taken together shall constitute a single contract. Delivery of an
executed signature page to this Agreement by facsimile transmission shall be as effective as
delivery of a manually signed counterpart of this Agreement.

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

[INSERT SIGNATURE BLOCKS]

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