Document:

exv10w29

Exhibit 10.29

SECURITY AGREEMENT

          SECURITY AGREEMENT, dated as of April 26, 2011 (as it may be amended, restated, amended and
restated, supplemented or otherwise modified from time to time, this “Agreement”), made by NORTEK,
INC., a Delaware corporation (the “Borrower”), the other Persons listed on the signature pages
hereof and the Additional Grantors (as hereinafter defined) (the Borrower, the Persons so listed
and the Additional Grantors being, collectively, the “Grantors”), to UBS AG, STAMFORD BRANCH, as
collateral agent (in such capacity, together with any successor collateral agent, the “Collateral
Agent”) for the Secured Parties.

PRELIMINARY STATEMENTS

          (1) The Borrower and the other Loan Parties party thereto have entered into a Credit Agreement
dated of even date herewith (said Credit Agreement, as it may hereafter be amended, restated,
amended and restated, supplemented or otherwise modified from time to time, being the “Credit
Agreement”) with the Lenders and the agents party thereto.

          (2) Pursuant to the Credit Agreement, the Grantors are entering into this Agreement in order
to grant to the Collateral Agent for the ratable benefit of the Secured Parties a security interest
in the Collateral (as hereinafter defined).

          (3) It is a condition precedent to the making of Loans by the Lenders under the Credit
Agreement and the entry into Secured Hedge Agreements by the Hedge Banks that the Grantors shall
have granted the assignment and security interest and made the pledge and assignment contemplated
by this Agreement.

          (4) Each Grantor will derive substantial direct and indirect benefit from the transactions
contemplated by the Loan Documents.

          (5) Terms defined in the Credit Agreement and not otherwise defined in this Agreement are used
in this Agreement as defined in the Credit Agreement. Further, unless otherwise defined in this
Agreement or in the Credit Agreement, terms defined in Article 8 or 9 of the UCC (as defined below)
are used in this Agreement as such terms are defined in such Article 8 or 9 (including, without
limitation, Accounts, Certificated Security, Chattel Paper, Commercial Tort Claims, Commodity
Accounts, Commodity Contract, Deposit Accounts, Documents, Equipment, Farm Products, Financial
Assets, Fixtures, General Intangibles, Goods, Instruments, Inventory, Investment Property, Letter
of Credit Rights, Securities Accounts, Securities Intermediary, Security, Security Entitlements and
Supporting Obligations). Additionally, the following terms shall have the following meanings:

          “ABL Administrative Agent” shall have the meaning specified in the Intercreditor Agreement.

          “Additional Grantor” shall have the meaning specified in Section 18(b).

          “After-Acquired Intellectual Property” shall have the meaning specified in Section 10(g).

          “Agreement
Collateral” shall have the meaning specified in Section 1(p).

          “Assigned
Agreements” shall have the meaning specified in Section 1(p).

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          “Collateral” shall have the meaning specified in Section 1.

          “Computer
Software” shall have the meaning specified in Section 1(q)(iv).

          “Copyrights”
shall have the meaning specified in Section 1(q)(iii).

          “Commodity Account Control Agreement” shall mean an agreement in form reasonably satisfactory
to the Collateral Agent sufficient to grant the Collateral Agent Control over a specified
Commodity Account.

          “Control” shall mean (i) in the case of each Deposit Account, “control,” as such term is
defined in Section 9-104 of the UCC, (ii) in the case of any Security Entitlement, “control,” as
such term is defined in Section 8-106 of the UCC and (iii) in the case of any Commodity Contract,
“control,” as such term is defined in Section 9-106 of the UCC.

          “Control Agreements” shall mean, collectively, the Deposit Account Control Agreements, the
Securities Account Control Agreements and the Commodity Account Control Agreements.

          “Deposit Account Control Agreement” shall mean an agreement in form reasonably satisfactory
to the Collateral Agent sufficient to grant the Collateral Agent Control over a specified Deposit
Account.

          “Excluded Accounts” shall mean each of the following, but in each case only to the extent
that Control of the same has not been provided to or for the benefit of any other creditor or as
security for any other obligations:

     (i) all Deposit Accounts maintained by the Grantors solely for the purpose of making
current payments of or maintaining funds in respect of current obligations for payroll
taxes, sales tax, 40IK funds or other similar tax or employee benefit obligations in the
ordinary course of business;

     (ii) for a period of not more than 30 days (or such longer period as may be approved
by the Collateral Agent in its sole discretion) following any Permitted Acquisition of a
new Subsidiary, the Deposit Accounts, Securities Accounts and Commodity Accounts of such
new Subsidiary; and

     (iii) any Deposit Accounts, Securities Accounts and Commodity Accounts as to which the
aggregate collected balances thereof, taken as a whole, do not exceed $10,000,000 (provided
that the collected balances of any one such account shall not exceed $5,000,000) (or in
each case such greater amount as may be agreed from time to time by the Collateral Agent in
its discretion).

          “Excluded Equity” shall mean each of the following:

     (i) Equity Interests of any Foreign Restricted Subsidiary to the extent (and only to
the extent) that, when aggregated with all of the other Equity Interests in such Foreign
Restricted Subsidiary pledged by any Loan Party, the pledge thereof hereunder would result
in more than 66% of the total combined voting power of all classes of Equity Interests in
such Foreign Restricted Subsidiary entitled to vote to be pledged hereunder;

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     (ii) Equity Interests in Foreign Subsidiaries whose revenue and assets do not meet the
thresholds set forth in clause (y) of Section 6.12(d) of the Credit Agreement; and

     (iii) Equity Interests in Foreign Subsidiaries that are organized under the laws of the
People’s Republic of China.

          “Indemnified Party” shall have the meaning specified in Section 17(a).

          “Intellectual
Property” shall have the meaning specified in Section 1(q)(ix).

          “Intellectual
Property Collateral” shall have the meaning specified in Section 1(q).

          “Intellectual Property Security Agreement” shall have the meaning specified in Section 10(f).

          “Intercreditor Agreement” shall have the meaning specified in Section 25.

          “IP
Agreements” shall have the meaning specified in Section 1(q)(viii).

          “IP Security Agreement Supplement” shall have the meaning specified in Section
10(g).

          “Patents”
shall have the meaning specified in Section 1(q)(i).

          “Pledged Account Bank” shall have the meaning specified in Section 5(b)

          “Pledged
Debt” shall have the meaning specified in Section 1(o)(i).

          “Pledged Deposit Accounts” means all Deposit Accounts of the Grantors other than Excluded
Accounts.

          “Pledged Equity” shall have the meaning specified in Section
1(o)(ii).

          “Receivables” shall have the meaning specified in
Section 1(n).

          “Related Contracts” shall have the meaning specified in Section
1(n).

          “Release Date” shall have the meaning specified in Section 20.

          “Secured Obligations” shall have the meaning specified in Section
2.

          “Securities Account Control Agreement” shall mean an agreement in form reasonably satisfactory
to the Collateral Agent sufficient to grant the Collateral Agent Control with respect to a
specified Securities Account.

          “Security Agreement Supplement” shall have the meaning specified in Section 18(b).

          “Security
Collateral” shall have the meaning specified in Section 1(o).

          “Subagent” shall have the meaning specified in Section 15(b).

          “Trademarks”
shall have the meaning specified in Section 1(q)(ii).

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          “Trade
Secrets” shall have the meaning specified in Section 1(q)(v).

          NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make
Loans under the Credit Agreement and to induce the Hedge Banks to enter into Secured Hedge
Agreements from time to time, each Grantor hereby agrees with the Collateral Agent for the ratable
benefit of the Secured Parties as follows:

          Section 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent,
for the ratable benefit of the Secured Parties, a security interest in, such Grantor’s right, title
and interest in and to the following, in each case, as to each type of property described below,
whether now owned or hereafter acquired by such Grantor, wherever located, and whether now or
hereafter existing or arising (collectively, the “Collateral”):

     (a) all Accounts;

     (b) all cash and Cash Equivalents;

     (c) all Chattel Paper;

     (d) all Commercial Tort Claims described on Schedule 13 to the Perfection Certificate;

     (e) all Deposit Accounts;

     (f) all Documents;

     (g) all Equipment;

     (h) all Farm Products;

     (i) all Fixtures;

     (j) all General Intangibles;

     (k) all Goods;

     (1) all Instruments;

     (m) all Inventory;

     (n) all Letter-of-Credit Rights, all other obligations of any kind, whether or not
arising out of or in connection with the sale or lease of goods or the rendering of services
and whether or not earned by performance (together with all Accounts, Chattel Paper,
Instruments, Deposit Accounts, General Intangibles and Letter-of-Credit Rights, the
“Receivables”) and all rights now or hereafter existing in and to all Supporting Obligations
and in and to all security agreements, mortgages, Liens, leases, letters of credit and other
contracts securing or otherwise relating to the Receivables (the “Related Contracts”);

     (o) the following (the “Security Collateral”):

     (i) all indebtedness from time to time owed to such Grantor, including without
limitation, all promissory notes or instruments, if any, evidencing such

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indebtedness, all indebtedness owed to such Grantor pursuant to the Intercompany Note and
the instruments set forth on Schedule 10 to the Perfection Certificate (the “Pledged
Debt”), and all interest, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of the
Pledged Debt;

     (ii) all Equity Interests, other than Excluded Equity, from time to time acquired,
owned or held by such Grantor in any manner, including, without limitation, the Equity
Interests of each Grantor set forth opposite such Grantor’s name on and otherwise described
on Schedule 9 to the Perfection Certificate, and the certificates, if any, representing
such shares or units or other Equity Interests (collectively, the “Pledged Equity”), and
all dividends, distributions, return of capital, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in exchange for
any or all of such shares or other Equity Interests and all subscription warrants, rights
or options issued thereon or with respect thereto;

     (iii) all Investment Property and all Financial Assets (including, without
limitation, all Securities, Security Entitlements and Securities Accounts), the
certificates or instruments, if any, representing or evidencing such Investment Property
or Financial Assets and all dividends, distributions, return of capital, interest, cash,
instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange therefor and all subscription warrants, rights or
options issued thereon or with respect thereto; and

     (iv) all rights and privileges of such Grantor with respect to the securities and
other property referred to in clauses (i), (ii) and (iii) above;

     (p) all contracts and agreements between any Grantor and one or more additional parties
(including, without limitation, any Swap Contracts, licensing agreements and any partnership
agreements, joint venture agreements, limited liability company agreements), the Related Contracts
and the IP Agreements (as hereinafter defined), in each case as such agreements may be amended,
restated, amended and restated, supplemented or otherwise modified from time to time
(collectively, the “Assigned Agreements”), including, without limitation, (i) all rights of such
Grantor to receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii)
all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty
with respect to the Assigned Agreements, (iii) claims of such Grantor for damages arising out of
or for breach of or default under the Assigned Agreements, to perform thereunder and to compel
performance and otherwise exercise all remedies thereunder (all such Collateral being the
“Agreement Collateral”);

     (q) the following (collectively, the “Intellectual Property Collateral”):

     (i) all patents, patent applications, utility models and statutory invention
registrations, all inventions claimed or disclosed therein and all improvements thereto
(“Patents”);

     (ii) all trademarks, service marks, domain names, trade dress, logos, designs,
slogans, trade names, business names, corporate names and other source identifiers,
whether registered or unregistered (provided that no security interest shall be granted in
United States intent-to-use trademark applications to the extent that, and solely during
the period in which, the grant of a security interest therein would impair the validity or

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enforceability of such intent-to-use trademark applications under applicable federal law),
together, in each case, with the goodwill symbolized thereby (“Trademarks”);

     (iii) all copyrights, including, without limitation, copyrights in Computer Software
(as hereinafter defined), internet web sites and the content thereof, whether registered
or unregistered (“Copyrights”);

     (iv) all computer software, programs and databases (including, without limitation,
source code, object code and all related applications and data files), firmware and
documentation and materials relating thereto, together with any and all maintenance
rights, service rights, programming rights, hosting rights, test rights, improvement
rights, renewal rights and indemnification rights and any substitutions, replacements,
improvements, error corrections, updates and new versions of any of the foregoing
(“Computer Software”);

     (v) all confidential and proprietary information of the Grantor, including, without
limitation, know-how, trade secrets, manufacturing and production processes and
techniques, inventions, research and development information, databases and data,
including, without limitation, technical data, financial, marketing and business data,
pricing and cost information, business and marketing plans and customer and supplier lists
and information (collectively, “Trade Secrets”), and all other intellectual, industrial
and intangible property of any type, including, without limitation, industrial designs and
mask works;

     (vi) all registrations and applications for registration for any of the foregoing,
including, without limitation, those registrations and applications for registration set
forth in Schedule 12 to the Perfection Certificate, together with all reissues, divisions,
continuations, continuations-in-part, extensions, renewals and reexaminations thereof;

     (vii) all tangible embodiments of the foregoing, all rights in the foregoing provided
by international treaties or conventions, all rights corresponding thereto throughout the
world and all other rights of any kind whatsoever of such Grantor accruing thereunder or
pertaining thereto;

     (viii) all agreements, permits, consents, orders and franchises relating to the
license, development, use or disclosure of any of the foregoing to which such Grantor, now
or hereafter, is a party or a beneficiary (“IP Agreements”); and

     (ix) any and all claims for damages and injunctive relief for past, present and
future infringement, dilution, misappropriation, violation, misuse or breach with respect
to any of the foregoing, with the right, but not the obligation, to sue for and collect,
or otherwise recover, such damages (the property described in this
Section 1(q) is
referred to herein as the “Intellectual Property”);

     (r) all books and records (including, without limitation, customer lists, credit files,
printouts and other computer output materials and records) of such Grantor pertaining to any of the
Collateral;

     (s) all other tangible and intangible personal property of whatever nature whether or not
covered by Article 9 of the UCC; and

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     (t) all proceeds of, collateral for, income, royalties and other payments now or
hereafter due and payable with respect to and Supporting Obligations relating to, any and
all of the Collateral (including, without limitation, proceeds, collateral and supporting
obligations that constitute property of the types described in clauses (a) through (t) of
this Section 1) and, to the extent not otherwise included, all payments under insurance
(whether or not the Collateral Agent is the loss payee thereof), or any indemnity, warranty
or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the
foregoing Collateral;

provided that notwithstanding anything to the contrary in this Agreement, this Agreement shall not
constitute a grant of a security interest in any (A) motor vehicles or other assets that are
subject to certificates of title, except to the extent perfection of a security interest therein
may be accomplished by filing of financing statements; (B) any Equipment that is subject to a
purchase money lien or capital lease permitted under the Credit Agreement to the extent the
documents relating to such purchase money lien or capital lease would not permit such Equipment to
be subject to the security interest created hereby; (C) any Letter-of-Credit Rights to the extent
the applicable Grantor is required by applicable law to apply the Proceeds thereof for a specified
purpose; or (D) any General Intangible, Investment Property (other than (i) any Equity Interests of
a wholly-owned Subsidiary of a Grantor required to be pledged hereunder or (ii) any other Equity
Interests of a Subsidiary of a Grantor required to be pledged hereunder unless such restrictions
are permitted to exist under the Credit Agreement) or Assigned Agreement to the extent that (but
only as long as) (a) the grant of a security interest in any General Intangible would violate any
applicable law or (b) the terms thereof or the agreement governing such General Intangible or
Investment Property (after giving effect to Sections 9-406, 9-407 and 9-408 of the UCC) (i) validly
prohibit the assignment of or granting a security interest in such General Intangible, Investment
Property or Assigned Agreement or (ii) validly permit the termination (by reason of such assignment
or security interest) of such Assigned Agreement or the agreement governing such General Intangible
or Investment Property; provided further that, that notwithstanding the foregoing, (i) all rights
to payment for money due or to become due pursuant to any such excluded Collateral shall be subject
to the security interests created by this Agreement and (ii) such excluded Collateral shall
otherwise be subject to the security interests created by this Agreement upon receiving any
necessary approvals or waivers permitting the assignment thereof, which the applicable Grantor
shall use commercially reasonable efforts to obtain (the assets in clauses (A) through (D) are
referred to as “Excluded Property”).

     Notwithstanding the foregoing, the terms “Pledged Equity,” “Security Collateral” and
“Collateral” shall not include any Equity Interests of any Foreign Subsidiary to the extent (and
only to the extent) that, when aggregated with all of the other Equity Interests in such Foreign
Subsidiary pledged by any Loan Party, the pledge thereof hereunder would result in more than 66%
of the total combined voting power of all classes of Equity Interests in such Foreign Subsidiary
entitled to vote to be pledged hereunder.

          Section 2. Security for Obligations. This Agreement secures, in the case of each
Grantor, the payment of all Obligations of such Grantor now or hereafter existing under the Loan
Documents, whether direct or indirect, absolute or contingent, and whether for principal,
reimbursement obligations, interest (including interest and fees that accrue after the
commencement by or against any Grantor of any proceeding under any Debtor Relief Laws naming such
Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding), fees, premiums, penalties, indemnifications, contract causes of
action, costs, expenses or otherwise (all such obligations being the “Secured Obligations”).

          Section 3. Grantors Remain Liable. Anything herein to the contrary
notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included
in such Grantor’s Collateral to the extent set forth therein to perform all of its duties and
obligations thereunder to

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the same extent as if this Agreement had not been executed, (b) the exercise by the Collateral
Agent of any of the rights hereunder shall not release any Grantor from any of its duties or
obligations under the contracts and agreements included in the Collateral and (c) no Secured Party
shall have any obligation or liability under the contracts and agreements included in the
Collateral by reason of this Agreement or any other Loan Document, nor shall any Secured Party be
obligated to perform any of the obligations or duties of any Grantor thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

          Section 4. Delivery and Control of Security Collateral. Subject to Section 6.12(d) of
the Credit Agreement, (a) (i) all certificates representing or evidencing the Pledged Equity and
(ii) all instruments representing or evidencing the Pledged Debt (excluding, unless an Event of
Default has occurred and is continuing, Pledged Debt, on an individual basis, not in excess of
$2,500,000), shall be promptly delivered to and held by or on behalf of the Collateral Agent
pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by
duly executed instruments of transfer or assignment in blank, all in form and substance
satisfactory to the Collateral Agent; provided that, unless an Event of Default shall have
occurred and be continuing, with respect to intercompany indebtedness evidenced by an instrument
previously delivered to the Collateral Agent, the Grantors shall only be required to deliver
updates to any such instrument concurrently with the delivery of the financial statements under
Sections 6.01(a) and (b) of the Credit Agreement, except to the extent that the face value of any
such instrument is increased. During the continuation of an Event of Default, the Collateral Agent
shall have the right, at any time in its discretion and without notice to any Grantor, to (i)
transfer to or to register in the name of the Collateral Agent or any of its nominees any or all
of the Security Collateral, subject only to the revocable rights specified in Section 11(a), (ii)
exchange certificates or instruments representing or evidencing Security Collateral for
certificates or instruments of smaller or larger denominations, and (iii) convert Security
Collateral consisting of financial assets credited to any Securities Account to Security
Collateral consisting of financial assets held directly by the Collateral Agent, and to convert
Security Collateral consisting of financial assets held directly by the Collateral Agent to
Security Collateral consisting of financial assets credited to any Securities Account.

          (b) With respect to any Security Collateral in which any Grantor has any right, title or
interest and that constitutes an uncertificated security, such Grantor will promptly notify the
Collateral Agent thereof and, (i) if so requested by the Collateral Agent with respect to any such
Security Collateral (which request shall only be made with respect to Security Collateral as to
which the actions described in this Section 4(b) have not been taken to the extent that the
aggregate value thereof is in excess of $1,000,000 or (ii) solely in the case of Security
Collateral representing Equity Interests in a Subsidiary, upon the request of the Collateral Agent,
cause the issuer thereof either (x) to register the Collateral Agent as the registered owner of
such security or (y) to agree in an authenticated record with such Grantor and the Collateral Agent
that such issuer will comply with instructions with respect to such security originated by the
Collateral Agent without further consent of such Grantor, such authenticated record to be in form
and substance reasonably satisfactory to the Collateral Agent. During the continuation of an Event
of Default, with respect to any Security Collateral in which any Grantor has any right, title or
interest, promptly upon the request of the Collateral Agent, such Grantor will notify each such
issuer of Security Collateral that such Security Collateral is subject to the security interest
granted hereunder.

          (c) Except as otherwise set forth herein, if any amount payable under or in connection with
any of the Collateral shall be or become evidenced by any Instrument, certificated security or
Chattel Paper, such Instrument, certificated security or Chattel Paper shall be promptly delivered
to the Collateral Agent, duly endorsed in a manner satisfactory to the Collateral Agent, to be held
as Collateral pursuant to this Agreement and, if applicable, the Intercreditor Agreement, provided
that, unless an Event of Default has occurred and is continuing, the Grantors shall not be required
to

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deliver the same pursuant to this clause (c) to the extent that the aggregate value of the
Collateral not so delivered does not exceed $5,000,000.

          Section 5. Maintaining Electronic Chattel Paper, Transferable Records and
Letter-of-Credit Rights and Giving Notice of Commercial Tort Claims. Unless the Release Date
shall have occurred:

     (a) Each Grantor will maintain Deposit Accounts and Securities Accounts (other than
Excluded Accounts) only with a bank or securities intermediary, as applicable (which may
include the Collateral Agent) (a “Pledged Account Bank”) that has entered into a Deposit
Account Control Agreement or Securities Account Control Agreement, as applicable; provided
that with respect to any Deposit Accounts and Securities Account in existence on the date
hereof, the Grantors shall deliver Deposit Account Control Agreements and Securities
Account Control Agreements with respect thereto as soon as commercially practicable, but in
any event within sixty (60) days after the Closing Date (or such longer period as may be
agreed to by the Collateral Agent in its reasonable discretion). The Collateral Agent
hereby agrees that it will not, unless the ABL Administrative Agent has given same, deliver
a notice indicating that the Collateral Agent will take Control over a Deposit Account,
Securities Account or Commodity Account under any Control Agreement unless an Event of
Default has occurred and is continuing.

     (b) The Collateral Agent may, at any time and without notice to, or consent from, the
Grantor, transfer, or direct the transfer of, funds from the Pledged Deposit Accounts to
satisfy the Grantor’s obligations under the Loan Documents if an Event of Default shall
have occurred and be continuing.

     (c) Upon any termination by a Grantor of any Pledged Deposit Account, such Grantor will
immediately (i) transfer all funds and property held in such terminated Pledged Deposit
Account to another Pledged Deposit Account and (ii) notify all Account Debtors and any other
obligors that were making payments to such Pledged Deposit Account to make all future
payments to another Pledged Deposit Account, in each case so that the Collateral Agent shall
have a continuously perfected security interest in such Account Collateral, funds and
property.

     (d) Upon the occurrence of and during the continuation of an Event of Default, promptly
upon the request of the Collateral Agent, each Grantor will maintain (i) all Electronic
Chattel Paper with a value individually in excess of $500,000 or in the aggregate in excess
of $2,000,000 so that the Collateral Agent has control of the Electronic Chattel Paper in
the manner specified in Section 9-105 of the UCC and (ii) all transferable records so that
the Collateral Agent has control of the transferable records in the manner specified in
Section 16 of the Uniform Electronic Transactions Act, as in effect in the jurisdiction
governing such transferable record (“UETA”).

     (e) Each Grantor, by granting a security interest in its Receivables consisting of
Letter-of-Credit Rights to the Collateral Agent, intends to (and hereby does) assign to the
Collateral Agent its rights (including its contingent rights) to the proceeds of all Related
Contracts consisting of letters of credit of which it is or hereafter becomes a beneficiary
or assignee (except to the extent that the applicable Grantor is required by applicable law
to apply such proceeds to a specified purpose). If any Grantor is at any time a beneficiary
under a letter of credit now or hereafter issued in favor of such Grantor, and (i) the face
amount of such letter of credit is in excess of $1,000,000 individually or (ii) the face
amount of such letter of credit, together with the face amount of all other letters of
credit issued in favor of any Grantor in which the Collateral Agent does not have a
perfected security interest exceeds $2,500,000 in the aggregate, such

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Grantor shall promptly notify the Collateral Agent thereof and such Grantor shall use
commercially reasonable efforts to either (A) arrange for the issuer and any confirmer of
such letter of credit to consent to an assignment to the Collateral Agent of the proceeds
of any drawing under such letter of credit or (B) arrange for the Collateral Agent to
become the transferee beneficiary of such letter of credit, with the Collateral Agent
agreeing, in each case, that the proceeds of any drawing under such letter of credit are to
be applied as provided in the Credit Agreement.

     (f) Upon the occurrence of an Event of Default, each Grantor shall, promptly upon
request by the Collateral Agent, (i) notify (and such Grantor hereby authorizes the
Collateral Agent to notify) the issuer and each nominated Person with respect to each of the
Related Contracts consisting of letters of credit that the proceeds thereof have been
assigned to the Collateral Agent hereunder and any payments due or to become due in respect
thereof are to be made directly to the Collateral Agent or its designee and (ii) arrange for
the Collateral Agent to become the transferee beneficiary of such letter of credit.

     (g) Each Grantor will give prompt notice in writing (which notice shall reference this
Section 5(g)) to the Collateral Agent of any Commercial Tort Claim individually valued in
excess of $2,500,000 that may arise in the future, which notice shall describe such
Commercial Tort Claim and grant to the Collateral Agent a first priority security interest
thereto, all upon the terms of this Agreement.

          Section 6. Representations and Warranties. Each Grantor represents and warrants as
follows:

     (a) All Pledged Equity consisting of Certificated Securities and all Pledged Debt has
been delivered to the Collateral Agent in accordance herewith. If such Grantor is an issuer
of Security Collateral, such Grantor confirms that it has received notice of the security
interest granted hereunder.

     (b) Such Grantor is the legal and beneficial owner of the Collateral granted or
purported to be granted by such Grantor free and clear of any Lien, claim, option or right
of others, except for the security interest created under this Agreement, subject to Liens
permitted under Section 7.01 of the Credit Agreement. To the knowledge of the Grantors, no
effective financing statement or other instrument similar in effect covering all or any part
of the Collateral or listing such Grantor or any trade name of such Grantor as debtor is on
file in any recording office, except such as may have been filed in favor of the Collateral
Agent relating to the Loan Documents or as otherwise permitted under the Credit Agreement,
including with respect to the Collateral granted to the ABL Administrative Agent for the
benefit of the ABL Secured Parties (as defined in the Intercreditor Agreement).

     (c) All of the Equipment and Inventory of such Grantor having a value in excess of
$1,000,000 are located at the places specified therefor in Schedule 2(d) to the Perfection
Certificate or at another location as to which such Grantor has complied with the
requirements of Sections 8 and 9(b) of this Agreement. Such Grantor has obtained and
maintains insurance with respect to its Equipment and Inventory in compliance with Section
8(d) of this Agreement.

     (d) The Pledged Equity issued by the Borrower or any of its Restricted Subsidiaries
hereunder has been duly authorized and validly issued and is fully paid and non-assessable.
To the knowledge of the Grantor, the Pledged Debt pledged by such Grantor hereunder has been
duly authorized, authenticated or issued and delivered, is the legal, valid and binding
obligation of the

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issuers thereof, is evidenced by one or more promissory notes (which promissory notes have been
delivered to the Collateral Agent.

     (e) As of the date hereof, the Pledged Equity pledged by such Grantor constitutes the
percentage of the issued and outstanding Equity Interests of the issuers thereof indicated on
Schedule 9 to the Perfection Certificate. As of the date hereof, no Grantor has any Investment
Property or Financial Assets other than the Investment Property and Financial Assets listed on
Schedules 9 and 14 to the Perfection Certificate.

     (f) Each Grantor has good and valid rights in and title to the 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 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 the need for which has been specifically disclosed
herein or in the Credit Agreement.

     (g) The Perfection Certificate has been duly prepared, completed and executed by the Borrower
and the information set forth therein, including the exact legal name of each Grantor, is true,
accurate and complete.

     (h) This Agreement creates in favor of the Collateral Agent for the benefit of the Secured
Parties a valid security interest in the Collateral granted by such Grantor, securing the payment
of the Secured Obligations; and (i) when the financing statements set forth in Schedule 6 of the
Perfection Certificate are filed or recorded with the appropriate Governmental Authority referred
to therein with respect to the Collateral described therein in which a security interest may be
perfected by filing or recordation and (ii) upon the taking of possession or control by the
Collateral Agent of the Collateral described in Schedules 9, 10 and 15 of the Perfection
Certificate with respect to which a security interest may be perfected only by possession or
control, all filings and other actions necessary to perfect the security interest in the Collateral
granted by such Grantor have been duly made or taken and are in full force and effect; and such
security interest is, in the case of Term Priority Collateral, first priority and, in the case of
ABL Priority Collateral, second priority, subject to Liens permitted by Section 7.01 of the Credit
Agreement.

     (i) None of the Grantors has filed or consented to the filing of (i) any financing statement
or analogous document under the UCC or any other applicable laws covering any Collateral, (ii) any
assignment in which any Grantor assigns any Collateral or any security agreement or similar
instrument covering any Collateral with the United States Patent and Trademark Office or the United
States Copyright Office or (iii) any assignment in which any Grantor assigns any Collateral or any
security agreement or similar instrument covering any 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 Liens expressly
permitted pursuant to Section 7.01 of the Credit Agreement (including Liens granted to the ABL
Administrative Agent for the benefit of the ABL Secured Parties (as defined in the Intercreditor
Agreement)).

     (j) The Inventory that has been produced or distributed by such Grantor has been produced in
all material respects in compliance with all requirements of applicable law, including, without
limitation, the Fair Labor Standards Act.

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     (k) No amount payable to such Grantor under or in connection with any Receivable is
evidenced by any Instrument or Chattel Paper which has not been delivered to the Collateral
Agent to the extent otherwise required to be delivered hereunder (other than purchase
orders, supply agreements and invoices).

     (1) As to itself and its Intellectual Property Collateral:

     (i) To such Grantor’s knowledge, the operation of such Grantor’s business as
currently conducted and the use of the Intellectual Property in connection
therewith do not infringe, misappropriate or otherwise violate the intellectual
property rights of any third party, except for such infringements, individually or
in the aggregate, which could not reasonably be expected to have a Material Adverse
Effect;

     (ii) Such Grantor is the exclusive owner of all right, title and interest in
and to the material Intellectual Property Collateral, and is entitled to use all
material Intellectual Property Collateral subject only to the terms of the IP
Agreements, in each case as used in or necessary to its operations, except to the
extent such failure to own or possess such right to use, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect;

     (iii) The IP Agreements, patents, trademarks, service marks, trade names and
all applications for any of the foregoing included in the Intellectual Property
Collateral is set forth on Schedule 12 to the Perfection Certificate and such
schedule sets forth all such U.S. Intellectual Property and all U.S. IP Agreements
material to the operations of the Grantors; and

     (iv) None of such Grantor’s Intellectual Property material to the operations of
the Grantors, has been abandoned or has been adjudged invalid or unenforceable in
whole or part.

          Section 7. Further Assurances. (a) Each Grantor agrees that from time to time, at the
expense of such Grantor, such Grantor will promptly (or within such longer period of time as the
Collateral Agent may agree in its sole discretion) execute and deliver, or otherwise authenticate,
all further instruments and documents, and take all further action that may be reasonably
necessary or desirable, or that the Collateral Agent may reasonably request, in order to perfect
and protect any pledge or security interest granted or purported to be granted by such Grantor
hereunder or to enable the Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral of such Grantor. Without limiting the generality of the
foregoing, each Grantor will promptly with respect to Collateral of such Grantor:

     (i) mark conspicuously each document included in Inventory and, at the request
of the Collateral Agent if an Event of Default has occurred and is continuing, each
Chattel Paper, each Related Contract and each Assigned Agreement and, at the request
of the Collateral Agent, each of its records pertaining to such Collateral with a
legend, in form and substance satisfactory to the Collateral Agent, indicating that
such document, Chattel Paper, Related Contract, Assigned Agreement or Collateral is
subject to the security interest granted hereby

     (ii) execute or authenticate and file such financing or continuation
statements, or amendments thereto, and such other instruments or notices, as may be
reasonably necessary or desirable, or as the Collateral Agent may reasonably
request, in order to

- 12 -

 

perfect and preserve the security interest granted or purported to be granted by
such Grantor hereunder;

     (iii) execute and deliver to the Collateral Agent an executed Deposit Account
Control Agreement with respect to each Deposit Account of any Grantor owned,
maintained or established by any Grantor after the Closing Date (other than an
Excluded Account), including any such Deposit Account which at any time ceases to
be an Excluded Account (it being understood that, unless the ABL Administrative
Agent has given same, the Collateral Agent shall not give any instructions
directing the disposition of funds from time to time credited to any Deposit
Account or withhold any withdrawal rights from such Grantor with respect to funds
from time to time credited to any Deposit Account unless an Event of Default has
occurred and is continuing);

     (iv) if any Grantor shall, following the Closing Date, establish and maintain
any Securities Account or Commodity Account (other than an Excluded Account) with
any Securities Intermediary or Commodity Intermediary, such Grantor shall, within 30
days (or such longer period as the Collateral Agent may agree in its sole
discretion) of opening such Securities Account or Commodity Account, notify the
Collateral Agent thereof and deliver to the Collateral Agent an executed Control
Agreement with respect to such Securities Account or Commodity Account, as the case
may be (it being understood that the Collateral Agent shall not give any
instructions directing the disposition of funds from time to time credited to any
Securities Account or Commodities Account or withhold any withdrawal rights from
such Grantor with respect to funds from time to time credited to any Securities
Account or Commodities Account unless an Event of Default has occurred and is
continuing); and

     (v) deliver to the Collateral Agent evidence that all other action that the
Collateral Agent may deem reasonably necessary or desirable in order to perfect and
protect the security interest granted or purported to be granted by such Grantor
under this Agreement has been taken.

          (b) Each Grantor hereby authorizes the Collateral Agent to file one or more financing or
continuation statements, and amendments thereto, including, without limitation, one or more
financing statements indicating that such financing statements cover all assets or all personal
property (or words of similar effect) of such Grantor, in each case without the signature of such
Grantor, and regardless of whether any particular asset described in such financing statements
falls within the scope of the UCC or the granting clause of this Agreement. A photocopy or other
reproduction of this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law.

          (c) Each Grantor will furnish to the Collateral Agent from time to time statements and
schedules further identifying and describing the Collateral of such Grantor and such other reports
in connection with such Collateral as the Collateral Agent may reasonably request, all in
reasonable detail.

     (d) The Borrower Agent will furnish to the Collateral Agent, at any time upon the request of
the Collateral Agent if an Event of Default has occurred and is continuing, an opinion of counsel,
in form and substance reasonably satisfactory to the Collateral Agent, to the effect that all
financing or continuation statements have been filed, and all other action has been taken to
perfect continuously from the date hereof the security interest granted hereunder.

- 13 -

 

          (e) Each Loan Party shall at all times defend its title to Collateral and the Collateral
Agent’s Liens therein against all Persons, claims and demands whatsoever, except for Liens
permitted under Section 7.01 of the Credit Agreement.

          Section 8. As to Equipment and Inventory and Insurance. (a) Each Grantor will keep
its Equipment and Inventory (other than Inventory sold in the ordinary course of business or
pursuant to a disposition in accordance with Section 7.05 of the Credit Agreement) having a value
in excess of $1,000,000 at the places therefor specified in Section 2(d) to the Perfection
Certificate or at such other locations as such Grantor may determine from time to time, provided
that such Grantor shall give written notice to the Collateral Agent specifying any such other
location within 30 days’ after the first date on which any Equipment or Inventory is moved to such
location.

          (b) Each Grantor will promptly furnish to the Collateral Agent a statement respecting any loss
or damage exceeding $1,000,000 to any of the Inventory of such Grantor.

          (c) In producing its Inventory, each Grantor will comply in all material respects with all
requirements of applicable law, including, without limitation, the Fair Labor Standards Act.

          (d) Each Grantor will, at its own expense, maintain insurance with respect to its Equipment
and Inventory in such amounts, against such risks, in such form and with such insurers, as required
under Section 6.07 of the Credit Agreement. Without limitation to the foregoing, each Loan Party
shall maintain insurance with respect to the Collateral, covering casualty, hazard, public
liability, theft, malicious mischief, flood and other risks, in amounts, with endorsements and with
insurers (with a “Best Rating” of at least A7, unless otherwise approved by the Collateral Agent)
reasonably satisfactory to the Collateral Agent. All proceeds under each policy shall be payable to
the Collateral Agent. From time to time upon request, the Loan Parties shall deliver to the
Collateral Agent the originals or certified copies of its insurance policies and updated flood
plain searches. Unless the Collateral Agent shall agree otherwise, each policy of property
insurance shall include satisfactory endorsements: (i) showing the Collateral Agent as loss payee
or additional insured, as applicable; (ii) requiring the insurer to endeavor to provide 30 days
prior written notice to the Collateral Agent in the event of cancellation of the policy for any
reason whatsoever; and (iii) specifying that the interest of the Collateral Agent shall not be
impaired or invalidated by any act or neglect of any Loan Party or the owner of the property, nor
by the occupation of the premises for purposes more hazardous than are permitted by the policy. If
any Loan Party fails to provide and pay for any insurance, the Collateral Agent may, at its option,
but shall not be required to, procure the insurance and charge the Borrowers therefor. Each Loan
Party agrees to deliver to the Collateral Agent, promptly as rendered, copies of all material
reports made to insurance companies in respect of the insurance described herein. So long as no
Event of Default has occurred and is continuing, the Loan Parties may settle, adjust or compromise
any insurance claim, as long as the proceeds are delivered to the Collateral Agent as provided
above. If an Event of Default has occurred and is continuing, only the Collateral Agent shall be
authorized to settle, adjust and compromise such claims. Further, each Grantor will, at the request
of the Collateral Agent, duly execute and deliver instruments of assignment of such insurance
policies to comply with the requirements of the Loan Documents and cause the insurers to
acknowledge notice of such assignment.

          (e) So long as no Event of Default shall have occurred and be continuing, all insurance
payments, proceeds of insurance and any awards arising from condemnation of any Collateral received
by the Collateral Agent in connection with any loss, damage or destruction of any Collateral shall,
to the extent required, be applied to the Obligations in accordance with Section 2.05(b) of the
Credit Agreement, and the Collateral Agent may direct the applicable Pledged Account Bank to
release to such Grantor any such amount if and to the extent that any prepayment of Obligations is
required under the Credit Agreement in connection with the receipt of such amount and such
prepayment has been made.

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Reimbursement under any liability insurance maintained by any Grantor pursuant to this Section 8
may be paid directly to the Person who shall have incurred liability covered by such insurance.

          Section 9. Post-Closing Changes; Bailees; Collections on Assigned Agreements and
Accounts; Assigned Agreements. (a) No Grantor will change its name, type of organization,
jurisdiction of organization, organizational identification number, chief executive office or
location from those set forth in Schedule 1(a) and 2(a) to the Perfection Certificate without
giving notice thereof to the Collateral Agent within 30 days (or such longer period of time as the
Collateral Agent may agree) of such change and thereafter taking all action required by the
Collateral Agent for the purpose of perfecting or protecting the security interest granted by this
Agreement. Each Grantor will hold and preserve its records relating to the Collateral, including,
without limitation, the Assigned Agreements and Related Contracts.

          (b) If any Collateral of any Grantor is at any time in the possession or control of a
warehouseman, bailee or agent (including as set forth on Schedule 2(e) to the Perfection
Certificate) or is located at leased premises or mortgaged property, upon the request of the
Collateral Agent, such Grantor will (i) notify any such warehouseman, bailee, agent or landlord of
the security interest created hereunder, (ii) instruct any such warehouseman, bailee, agent or
landlord to hold all such Collateral solely for the Collateral Agent’s account subject only to the
Collateral Agent’s instructions, and (iii) if at any time the value of the Collateral in the
possession or control of such warehouseman, bailee, agent or landlord or located at such leased or
mortgaged premises exceeds or is reasonably likely to exceed $3,000,000, use commercially
reasonable efforts to (A) cause such warehouseman, bailee or agent to authenticate a record
acknowledging that it holds possession of such Collateral for the Collateral Agent’s benefit and
shall act solely on the instructions of the Collateral Agent without the further consent of the
Grantor or any other Person and make such authenticated record available to the Collateral Agent,
and (B) obtain a lien waiver from such warehouseman, bailee or agent or the applicable landlord or
mortgagee.

          (c) Except as otherwise provided in this subsection (c), each Grantor will continue to
collect, at its own expense, all amounts due or to become due such Grantor under the Receivables,
Assigned Agreements and Related Contracts. In connection with such collections, such Grantor may
take (and, at the Collateral Agent’s direction during the continuation of an Event of Default, may
take) such commercially reasonable action as such Grantor (or the Collateral Agent) may deem
necessary or advisable to enforce collection thereof; provided, however, that the Collateral Agent
shall have the right at any time upon the occurrence and during the continuance of an Event of
Default, to notify the obligors under any Receivables, Assigned Agreements and Related Contracts,
of the assignment of such Receivables, Assigned Agreements and Related Contracts, to the Collateral
Agent and to direct such obligors to make payment of all amounts due or to become due to such
Grantor thereunder directly to the Collateral Agent and, upon such notification and at the expense
of such Grantor, to enforce collection of any such Receivables, Assigned Contracts and Related
Contracts, to adjust, settle or compromise the amount or payment thereof, and to otherwise exercise
all rights with respect to such Receivables, Assigned Agreements and Related Contracts, including,
without limitation, those set forth set forth in Section 9-607 of the UCC. Upon the occurrence and
during the continuation of an Event of Default, (i) no Grantor will grant any extension with
respect to the time of payment of any Receivable or any amount due on any Assigned Agreement or
Related Contract, adjust, settle or compromise the amount or payment of any Receivable or any
amount due on any Assigned Agreement or Related Contract for less than the full amount thereof,
release wholly or partly any Account Debtor or obligor thereof, allow any credit or discount
thereon (except, in each case, in the ordinary course of business consistent with past practice
unless the Collateral Agent shall have notified such Grantor that its right to do so has been
terminated) or make any amendment, supplement or modification thereto, in each case in any manner
that could adversely affect the value thereof and (ii) the applicable Grantor shall deliver to the
Collateral Agent a copy of each material demand, notice or document received by it that questions
or calls into doubt the validity or enforceability of more than 5% of the aggregate amount of its
then outstanding Accounts. No

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Grantor will permit or consent to the subordination of its right to payment under any of the
Receivables, Assigned Agreements or Related Contracts to any other indebtedness or obligations of
the Account Debtor or obligor thereof.

          (d) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Receivables, Assigned Agreements and Related Contracts to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in accordance with
the terms of any agreement giving rise thereto. Neither the Collateral Agent nor any Secured Party
shall have any obligation or liability under any Receivable, Assigned Agreement or Related Contract
by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any Secured
Party of any payment relating thereto, nor shall the Collateral Agent, nor any Secured Party, be
obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any
Receivable, Assigned Agreement or Related Contract, to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the sufficiency of any
performance by any party thereunder, to present or file any claim, to take any action to enforce
any performance or to collect the payment of any amounts which may have been assigned to it or to
which it may be entitled at any time or times.

          (e) Each Grantor will at its expense: (i) maintain the Assigned Agreements to which it is a
party in full force and effect, enforce the Assigned Agreements to which it is a party in
accordance with the terms thereof and take all such action to such end as may be requested from
time to time by the Collateral Agent, except where the failure to do could not reasonably be
expected to have a Material Adverse Effect; and (ii) furnish to the Collateral Agent promptly upon
receipt thereof copies of all material notices, requests and other documents received by such
Grantor under or pursuant to any material Assigned Agreements to which it is a party, and from time
to time (A) furnish to the Collateral Agent such information and reports regarding the Assigned
Agreements and such other Collateral of such Grantor as the Collateral Agent may reasonably request
and (B) upon the reasonable request of the Collateral Agent, make to each other party to any
Assigned Agreement to which it is a party such demands and requests for information and reports or
for action as such Grantor is entitled to make thereunder.

          (f) Each Grantor hereby consents on its behalf and on behalf of its Restricted Subsidiaries to
the assignment and pledge to the Collateral Agent for benefit of the Secured Parties of each
Assigned Agreement to which it is a party by any other Grantor hereunder. Each Grantor agrees, and
has effectively so instructed each other party to each Assigned Agreement to which it is a party,
that all payments due or to become due under or in connection with such Assigned Agreement will be
made directly to a Pledged Deposit Account.

          Section 10.
As to Intellectual Property Collateral. (a) With respect to material
Intellectual Property Collateral, each Grantor agrees to take, at its expense, all commercially
reasonable steps, including, without limitation, in the U.S. Patent and Trademark Office, the U.S.
Copyright Office and any other governmental authority located in the United States, to (i) maintain
the validity and enforceability of such Intellectual Property Collateral and maintain such
Intellectual Property Collateral in full force and effect, and (ii) pursue the registration and
maintenance of each patent, trademark, or copyright registration or application, now or hereafter
included in such Intellectual Property Collateral of such Grantor, including, without limitation,
the payment of required fees and taxes, the filing of responses to office actions issued by the
U.S. Patent and Trademark Office, the U.S. Copyright Office or other governmental authorities, the
filing of applications for renewal or extension, the filing of affidavits under Sections 8 and 15
of the U.S. Trademark Act, the filing of divisional, continuation, continuation-in-part, reissue
and renewal applications or extensions, the payment of maintenance fees and the participation in
interference, reexamination, opposition, cancellation, infringement and misappropriation
proceedings. No Grantor shall, without the written consent of the Collateral Agent, discontinue use
of or otherwise

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abandon any of its material Intellectual Property Collateral, or abandon any right to file an
application for patent, trademark, or copyright, unless such Grantor shall have previously
determined that such use or the pursuit or maintenance of such Intellectual Property Collateral is
no longer desirable in the conduct of such Grantor’s business.

          (b) Each Grantor agrees promptly to notify the Collateral Agent if such Grantor becomes aware
that any item of material Intellectual Property Collateral may have become abandoned, placed in the
public domain, invalid or unenforceable, or of any adverse determination or development regarding
such Grantor’s ownership of any of such Intellectual Property Collateral or its right to register
the same or to keep and maintain and enforce the same, unless the maintenance of such Intellectual
Property Collateral is no longer desirable in the conduct of such Grantor’s business.

          (c) In the event that any Grantor becomes aware that any item of its Intellectual Property
Collateral is being infringed or misappropriated by a third party in any way that would reasonably
be expected to have a Material Adverse Effect, such Grantor shall promptly notify the Collateral
Agent and shall take such actions, at its expense, as such Grantor or the Collateral Agent deems
reasonable and appropriate under the circumstances to protect or enforce such Intellectual Property
Collateral, including, without limitation, suing for infringement or misappropriation and for an
injunction against such infringement or misappropriation.

          (d) No Grantor shall do or permit any act or knowingly omit to do any act whereby any of its
material Intellectual Property Collateral may lapse or become invalid or unenforceable or placed in
the public domain, unless the maintenance of such Intellectual Property Collateral is no longer
desirable in the conduct of such Grantor’s business.

          (e) Each Grantor shall take all commercially reasonable steps which it or the Collateral Agent
(during the continuation of an Event of Default) deems reasonable and appropriate under the
circumstances to preserve and protect each item of its material Intellectual Property Collateral,
including, without limitation, maintaining the quality of any and all products or services used or
provided in connection with any of the Trademarks, consistent with the quality of the products and
services as of the date hereof, and taking all steps necessary to ensure that all licensed users of
any of the Trademarks use such consistent standards of quality.

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

          (g) Each Grantor agrees that should it obtain an ownership interest in any item of the type
set forth in Section 1(q) of this Agreement that is not on the date hereof a part of the
Intellectual Property Collateral (“After-Acquired Intellectual Property”) (i) the provisions of
this Agreement shall automatically apply thereto, and (ii) any such After-Acquired Intellectual
Property and, in the case of trademarks, the goodwill symbolized thereby, shall automatically
become part of the Intellectual Property Collateral subject to the terms and conditions of this
Agreement with respect thereto. Each Grantor shall, concurrently with the delivery of financial
statements under Sections 6.01(a) and (b) of the Credit Agreement, execute and deliver to the
Collateral Agent, or otherwise authenticate, an agreement substantially in the form of Exhibit C
hereto or otherwise in form and substance satisfactory to the Collateral Agent (an “IP Security
Agreement Supplement”) covering such After-Acquired Intellectual

- 17 -

 

Property which IP Security Agreement Supplement shall be recorded with the U.S. Patent and
Trademark Office, the U.S. Copyright Office and any other governmental authorities necessary to
perfect the security interest hereunder in such After-Acquired Intellectual Property.

          (h) Nothing in this Agreement prevents any Grantor from discontinuing the use or maintenance
of any of its Intellectual Property Collateral to the extent permitted by the Credit Agreement if
such Grantor determines in its reasonable business judgment that such discontinuance is desirable
in the conduct of its business.

          Section 11. Voting Rights; Dividends; Etc. (a) So long as no Event of Default shall
have occurred and be continuing:

     (i) Each Grantor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Security Collateral of such Grantor or any part thereof for any
purpose; provided however, that such Grantor will not exercise or refrain from exercising
any such right if such action would have a material adverse effect on the value of the
Security Collateral or any part thereof.

     (ii) Each Grantor shall be entitled to receive and retain any and all dividends,
interest and other distributions paid in respect of the Security Collateral of such Grantor
if and to the extent that the payment thereof is not otherwise prohibited by the terms of
the Loan Documents; provided, however, that any and all dividends, interest and other
distributions paid or payable other than in cash in respect of, and instruments and other
property received, receivable or otherwise distributed in respect of, or in exchange for,
any Security Collateral shall be, and shall be forthwith delivered to the Collateral Agent
to hold as Security Collateral and shall, if received by such Grantor, be received in trust
for the benefit of the Collateral Agent, be segregated from the other property or funds of
such Grantor and be forthwith delivered to the Collateral Agent as Security Collateral in
the same form as so received (with any necessary indorsement).

     (iii) The Collateral Agent will execute and deliver (or cause to be executed and
delivered) to each Grantor all such proxies and other instruments as such Grantor may
reasonably request for the purpose of enabling such Grantor to exercise the voting and
other rights that it is entitled to exercise pursuant to paragraph (i) of this Section 11(a) above
and to receive the dividends or interest payments that it is authorized to
receive and retain pursuant to paragraph (ii) of this Section 11(a) above.

          (b) Upon the occurrence and during the continuance of an Event of Default:

     (i) All rights of each Grantor (x) to exercise or refrain from exercising the voting
and other consensual rights that it would otherwise be entitled to exercise pursuant to
Section 11(a)(i) of this Agreement shall, upon notice to such Grantor by the Collateral
Agent, cease and (y) to receive the dividends, interest and other distributions that it
would otherwise be authorized to receive and retain pursuant to Section 11(a)(ii) of this
Agreement shall automatically cease, and all such rights shall thereupon become vested in
the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from
exercising such voting and other consensual rights and to receive and hold as Security
Collateral such dividends, interest and other distributions.

     (ii) All dividends, interest and other distributions that are received by any Grantor
contrary to the provisions of paragraph (i) of this Section 11(b) shall be received in
trust for the benefit of the Collateral Agent, shall be segregated from other funds of such
Grantor and shall be

- 18 -

 

forthwith paid over to the Collateral Agent as Security Collateral in the same form as so
received (with any necessary indorsement).

     (c) Upon the occurrence and during the continuation of an Event of Default, the
Collateral Agent shall be authorized to exercise exclusive control over all Deposit
Accounts, Securities Accounts and Commodity Accounts (in each case other than Excluded
Accounts).

          Section 12. Transfers and Other Liens; Additional Shares. (a) Each Grantor agrees
that it will not (i) sell, assign or otherwise dispose of, or grant any option with respect to,
any of the Collateral, other than sales, assignments and other dispositions of Collateral, and
options relating to Collateral, permitted under the terms of the Credit Agreement, or (ii) create
or suffer to exist any Lien upon or with respect to any of the Collateral of such Grantor except
for the pledge, assignment and security interest created under this Agreement and Liens permitted
under the Credit Agreement.

          (b) Each Grantor agrees that it will (i) cause each issuer of the Pledged Equity pledged by
such Grantor not to issue any Equity Interests or other securities in addition to or in
substitution for the Pledged Equity issued by such issuer, except to such Grantor or to another
Grantor; provided that this clause (i) will not prohibit the issuance of any Equity
Interests by any Subsidiary in connection with any transaction described in Section 7.05(o) of the
Credit Agreement to the extent that such issuance constitutes an Investment in a joint venture
permitted by Section 7.05(o) of the Credit Agreement and (ii) pledge hereunder, promptly upon its
acquisition (directly or indirectly) thereof, any and all additional Equity Interests or other
securities (other than Excluded Equity).

          Section 13. Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby
irrevocably appoints the Collateral Agent such Grantor’s attorney-in-fact, with full authority in
the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to
time, in the Collateral Agent’s discretion, to take any action and to execute any instrument that
the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement
(but at the cost and expense of the Grantors), including, without limitation:

     (a) to endorse a Grantor’s name on any check, draft or other item of payment payable to
a Guarantor, including those constituting proceeds of any Collateral, or other proceeds of
Collateral (including proceeds of insurance) that come into the Collateral Agent’s
possession or control;

     (b) to obtain and adjust insurance required to be paid to the Collateral Agent; and

     (c) upon the occurrence and during the continuance of an Event of Default:

     (A) to ask for, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for moneys due and to become due under or in respect of any of the
Collateral;

     (B) to receive, indorse and collect any drafts or other instruments, documents and
Chattel Paper;

     (C) to (i) notify any Account Debtors of the assignment of any Grantor’s Accounts,
demand and enforce payment of any Grantor’s Accounts, by legal proceedings or otherwise, and
generally exercise any rights and remedies with respect to any Grantor’s Accounts; (ii)
settle, adjust, modify, compromise, discharge or release any Accounts or other Collateral,
or any legal proceedings brought to collect Accounts or Collateral; (iii) sell or assign any
Accounts and other

- 19 -

 

Collateral upon such terms, for such amounts and at such times as the Collateral Agent deems
advisable; (iv) take control, in any manner, of any proceeds of Collateral; (v) prepare,
file and sign a Grantor’s name to a proof of claim or other document in a bankruptcy of an
Account Debtor, or to any notice, assignment or satisfaction of Lien or similar document;
(vi) receive, open and dispose of mail addressed to a Grantor, and notify postal authorities
to change the address for delivery thereof to such address as the Collateral Agent may
designate; (vii) endorse any Chattel Paper, Document, Instrument, invoice, freight bill,
bill of lading, or similar document or agreement relating to any Accounts, Inventory or
other Collateral; (viii) use a Grantor’s stationery and sign its name to verifications of
Accounts and notices to Account Debtors; (ix) use the information recorded on or contained
in any data processing equipment and computer hardware and software relating to any
Collateral; or (x) take any action as may be necessary or appropriate to obtain payment
under any letter of credit or banker’s acceptance for which a Grantor is a beneficiary; and

     (D) to file any claims or take any action or institute any proceedings that the
Collateral Agent may deem necessary or desirable for the collection of any of the Collateral
or otherwise to enforce compliance with the terms and conditions of any Assigned Agreement
or the rights of the Collateral Agent with respect to any of the Collateral or any other
action as the Collateral Agent deems appropriate to fulfill any Grantor’s obligations under
the Loan Documents.

          Section 14. Collateral Agent May Perform. If any Grantor fails to perform any
agreement contained herein, the Collateral Agent may, but without any obligation to do so and
without notice, itself perform, or cause performance of, such agreement, and the expenses of the
Collateral Agent incurred in connection therewith shall be payable by such Grantor under Section 17
of this Agreement.

          Section 15. The Collateral Agent’s Duties. (a) The powers conferred on the Collateral
Agent hereunder are solely to protect the Secured Parties’ interest in the Collateral and shall not
impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral
in its possession and the accounting for moneys actually received by it hereunder, the Collateral
Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to
calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral,
whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the
taking of any necessary steps to preserve rights against any parties or any other rights pertaining
to any Collateral. The Collateral Agent shall be deemed to have exercised reasonable care in the
custody and preservation of any Collateral in its possession if such Collateral is accorded
treatment substantially equal to that which it accords its own property.

          (b) Anything contained herein to the contrary notwithstanding, the Collateral Agent may from
time to time, when the Collateral Agent in its reasonable discretion deems it to be necessary,
appoint one or more subagents (each a “Subagent”) for the Collateral Agent hereunder with respect
to all or any part of the Collateral. In the event that the Collateral Agent so appoints any
Subagent with respect to any Collateral, (i) the assignment and pledge of such Collateral and the
security interest granted in such Collateral by each Grantor hereunder shall be deemed for purposes
of this Agreement to have been made to such Subagent, in addition to the Collateral Agent, for the
ratable benefit of the Secured Parties, as security for the Secured Obligations of such Grantor,
(ii) such Subagent shall automatically be vested, in addition to the Collateral Agent, with all
rights, powers, privileges, interests and remedies of the Collateral Agent hereunder with respect
to such Collateral, and (iii) the term “Collateral Agent,” when used herein in relation to any
rights, powers, privileges, interests and remedies of the Collateral Agent with respect to such
Collateral, shall include such Subagent; provided, however, that no such Subagent

- 20 -

 

shall be authorized to take any action with respect to any such Collateral unless and except to
the extent expressly authorized in writing by the Collateral Agent.

          (c) All expenses of protecting, storing, warehousing, insuring, handling, maintaining and
shipping any Collateral, all Taxes payable with respect to any Collateral (including any sale
thereof), and all other payments required to be made by the Collateral Agent to any Person to
realize upon any Collateral, shall be borne and paid by the Grantors. The Collateral Agent shall
not be liable or responsible in any way for the safekeeping of any Collateral, for any loss or
damage thereto (except for reasonable care in its custody while Collateral is in the Collateral
Agent actual possession), for any diminution in the value thereof, or for any act or default of
any warehouseman, carrier, forwarding agency or other Person whatsoever, but the same shall be at
the Grantors’ sole risk.

          Section 16. Remedies. If any Event of Default shall have occurred and be continuing:

     (a) The Collateral Agent may exercise in respect of the Collateral, in addition to
other rights and remedies provided for herein or otherwise available to it, all the rights
and remedies of a secured party upon default under the UCC (whether or not the UCC applies
to the affected Collateral) and also may: (i) require each Grantor to, and each Grantor
hereby agrees that it will at its expense and upon request of the Collateral Agent
forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and
make it available to the Collateral Agent at a place and time to be designated by the
Collateral Agent that is reasonably convenient to both parties; (ii) without notice except
as specified below, sell the Collateral or any part thereof in one or more parcels at public
or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit
or for future delivery, and upon such other terms as the Collateral Agent may deem
commercially reasonable; (iii) occupy any premises owned or to the extent lawful and
permitted leased by any of the Grantors where the Collateral or any part thereof is
assembled or located for a reasonable period in order to effectuate its rights and remedies
hereunder or under law, without obligation to such Grantor in respect of such occupation;
and (iv) exercise any and all rights and remedies of any of the Grantors under or in
connection with the Collateral, or otherwise in respect of the Collateral, including,
without limitation, (A) any and all rights of such Grantor to demand or otherwise require
payment of any amount under, or performance of any provision of, the Receivables, Assigned
Agreements, Related Contracts and the other Collateral, (B) withdraw, or cause or direct the
withdrawal of, all funds and all other property held in or credited to any Deposit Account,
Securities Account or Commodity Account and (C) exercise all other rights and remedies with
respect to the Receivables, Assigned Agreements, the Related Contracts and the other
Collateral, including, without limitation, those set forth in Section 9-607 of the UCC. Each
Grantor agrees that, to the extent notice of sale shall be required by law, at least ten
(10) days’ notice to such Grantor of the time and place of any public sale or the time after
which any private sale is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice
of sale having been given. The Collateral Agent may adjourn any public or private sale from
time to time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so adjourned.

     (b) Any cash held by or on behalf of the Collateral Agent and all cash proceeds
received by or on behalf of the Collateral Agent in respect of any sale of, collection from,
or other realization upon all or any part of the Collateral may, in the discretion of the
Collateral Agent, be held by the Collateral Agent as collateral for, and/or then or at any
time thereafter applied (after payment of any amounts payable to the Collateral Agent
pursuant to Section 17 of this Agreement) in whole or in part by the Collateral Agent for
the ratable benefit of the Secured

- 21 -

 

Parties against, all or any part of the Secured Obligations, as set forth in Section 8.03 of the
Credit Agreement. Any surplus of such cash or cash proceeds held by or on the behalf of the
Collateral Agent and remaining after payment in full of all the Secured Obligations shall be paid
over to the applicable Grantor or to whomsoever may be lawfully entitled to receive such surplus.

     (c) All payments received by any Grantor under or in connection with any Assigned Agreement or
otherwise in respect of the Collateral shall be received in trust for the benefit of the Collateral
Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the
Collateral Agent in the same form as so received (with any necessary indorsement).

     (d) The Collateral Agent may, without notice to any Grantor except as required by law and at
any time or from time to time, charge, set-off and otherwise apply all or any part of the Secured
Obligations against any funds held with respect to any Deposit Account.

     (e) In the event of any sale or other disposition of any of the Intellectual Property
Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to such sale or other
disposition shall be included therein, and such Grantor shall supply to the Collateral Agent or its
designee such Grantor’s know-how and expertise, and documents and things relating to any
Intellectual Property Collateral subject to such sale or other disposition, and such Grantor’s
customer lists and other records and documents relating to such Intellectual Property Collateral
and to the manufacture, distribution, advertising and sale of products and services of such
Grantor.

     (f) If the Collateral Agent shall determine to exercise its right to sell all or any of the
Security Collateral of any Grantor pursuant to this Section 16, each Grantor agrees that, upon
request of the Collateral Agent, such Grantor will, at its own expense, do or cause to be done all
such other acts and things as may be necessary to make such sale of such Security Collateral or any
part thereof valid and binding and in compliance with applicable law.

     (g) The Collateral Agent is authorized, in connection with any sale of the Security Collateral
pursuant to this Section 16, to deliver or otherwise disclose to any prospective purchaser of the
Security Collateral: (i) any registration statement or prospectus, and all supplements and
amendments thereto; (ii) any information and projections; and (iii) any other information in its
possession relating to such Security Collateral.

     (h) Each Grantor acknowledges the impossibility of ascertaining the amount of damages that
would be suffered by the Secured Parties by reason of the failure by such Grantor to perform any of
the covenants contained in subsection (f) of this Section 16 above and, consequently, agrees that,
if such Grantor shall fail to perform any of such covenants, it will pay, as liquidated damages and
not as a penalty, an amount equal to the value of the Security Collateral on the date the
Collateral Agent shall demand compliance with subsection (f) of this Section 16 above.

     (i) For the purpose of enabling the Collateral Agent, during the continuance of an Event of
Default, to exercise rights and remedies under this Section 16 at such time as the Collateral
Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose,
each Grantor hereby grants to the Collateral Agent, to the extent assignable, an irrevocable,
non-exclusive license to use, license or sublicense any of the Intellectual Property Collateral
now owned or hereafter acquired by such Grantor, wherever the same may be located. Such license
shall include access to all media in which any of the licensed items may be recorded or stored and
to all computer programs used for the compilation or printout hereof to the extent

- 22 -

 

that such non-exclusive license does not violate the express terms of any agreement between
a Grantor and a third party governing the applicable Grantor’s use of such Intellectual
Property Collateral. If (i) an Event of Default shall have occurred and, by reason of cure,
waiver, modification, amendment or otherwise, no longer be continuing, (ii) no other Event
of Default shall have occurred and be continuing, (iii) an assignment or other transfer to
the Collateral Agent of any rights, title and interests in and to the Intellectual Property
Collateral shall have been previously made in accordance with the terms hereof and shall
have become absolute and effective, and (iv) the Obligations shall not have become
immediately due and payable, the Collateral Agent shall promptly execute and deliver to
such Grantor, at such Grantor’s sole cost and expense, such assignments or other transfer
as may be necessary to reassign to such Grantor any such rights, title and interests as may
have been assigned to the Collateral Agent; provided, after giving effect to such
reassignment, the Collateral Agent’s security interest granted pursuant hereto, as well as
all other rights and remedies of the Collateral Agent granted hereunder, shall continue to
be in full force and effect; and provided further, the rights, title and interest so
reassigned shall be free and clear of any other Liens granted by or on behalf of the
Collateral Agent and the Secured Parties.

     (j) Each Grantor recognizes that, by reason of certain prohibitions contained in the
Securities Act, and applicable state securities laws, the Collateral Agent may be
compelled, with respect to any sale of all or any part of the Security Collateral and
Investment Property, to limit purchasers to Persons who will agree, among other things, to
acquire such Security Collateral or Investment Property for their own account, for
investment and not with a view to the distribution or resale thereof. Each Grantor
acknowledges that any such private sales may be at prices and on terms less favorable to
the Collateral Agent than those obtainable through a public sale without such restrictions
(including a public offering made pursuant to a registration statement under the Securities
Act), and, so long as such private sale is made in a commercially reasonable manner and
that the Collateral Agent shall have no obligation to engage in public sales and no
obligation to delay the sale of any Security Collateral or Investment Property for the
period of time necessary to permit the issuer thereof to register it for a form of public
sale requiring registration under the Securities Act or under applicable state securities
laws, even if such issuer would agree to do so.

          Section 17. Indemnity and Expenses. (a) Each Grantor agrees to indemnify, defend and
save and hold harmless each Secured Party and each of their Affiliates and their respective
officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and
against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable and documented fees and expenses of counsel) that may be
incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in
connection with or resulting from this Agreement (including, without limitation, enforcement of
this Agreement), except to the extent such claim, damage, loss, liability or expense is found in a
final, non-appealable judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party’s bad faith, gross negligence or willful misconduct. The obligations of the
Grantors under this paragraph shall survive the termination of this Agreement (and any earlier
resignation or removal of the Collateral Agent or any Collateral Agent).

          (b) Each Grantor will upon demand pay to the Collateral Agent the amount of any and all
reasonable expenses, including, without limitation, the reasonable and documented fees and
out-of-pocket expenses of its counsel and of any experts and agents, that the Collateral Agent may
incur in connection with (i) the administration of this Agreement, (ii) the custody, preservation,
use or operation of, or the sale of, collection from or other realization upon, any of the
Collateral of such Grantor, (iii) the exercise or enforcement of any of the rights of the
Collateral Agent or the other Secured Parties hereunder or (iv) the failure by such Grantor to
perform or observe any of the provisions hereof; provided that, any

- 23 -

 

such payment or reimbursement to the Collateral Agent for fees and expenses of counsel with respect
to the administration of this Agreement and the custody and preservation of any of the Collateral
shall be limited to the reasonable and documented fees, out-of-pocket charges and disbursements of
one firm of counsel for the Collateral Agent, one firm of local counsel retained by the Collateral
Agent in each relevant local jurisdiction and one firm of special counsel retained by the
Collateral Agent for each relevant specialty.

          Section 18. Amendments; Waivers; Additional Grantors; Etc. (a) Subject to Section
11.01 of the Credit Agreement, no amendment or waiver of any provision of this Agreement, and no
consent to any departure by any Grantor herefrom, shall in any event be effective unless the same
shall be in writing and signed by (i) each Grantor (other than the Borrower) to which such
amendment or waiver is to apply, (ii) the Borrower and (iii) the Collateral Agent, and then such
waiver or consent shall be effective only in the specific instance and for the specific purpose
for which given. No failure on the part of the Collateral Agent or any other Secured Party to
exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right.

          (b) Upon the execution and delivery, or authentication, by any Person of a security agreement
supplement in substantially the form of Exhibit A hereto (each a “Security Agreement Supplement”),
such Person shall be referred to as an “Additional Grantor” and shall be and become a Grantor
hereunder, and each reference in this Agreement and the other Loan Documents to “Grantor” shall
also mean and be a reference to such Additional Grantor, and each reference in this Agreement and
the other Loan Documents to “Collateral” shall also mean and be a reference to the Collateral of
such Additional Grantor. Concurrently with the delivery or authentication by such Additional
Grantor of a Security Agreement Supplement, such Additional Grantor shall deliver a supplement to
the Perfection Certificate attaching supplemental Schedules 1 through 15 to the Perfection
Certificate and each reference in this Agreement and in the other Loan Documents to the Perfection
Certificate shall mean and be a reference to the Perfection Certificate as supplemented thereby.

          Section 19. Notices, Etc. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex communication or facsimile
transmission) and mailed, telegraphed, telecopied, telexed, faxed or delivered to it, if to any
Grantor, addressed to it in care of the Borrower at the Borrower’s address specified in
Section 11.02 of the Credit Agreement and if to the Collateral Agent, at its
address specified in Section 11.02 of the Credit Agreement. All such notices and
other communications shall be deemed to be given or made at such time as shall be set forth in
Section 11.02 of the Credit Agreement.

          Section 20. Continuing Security Interest; Assignments under the Credit Agreement. This Agreement shall create a continuing security interest in the Collateral and shall (a)
remain in full force and effect until the date (such date being the “Release Date”) of the payment
in full of all Obligations (other than (A) contingent indemnification obligations and (B)
obligations and liabilities under Secured Hedge Agreements), (b) be binding upon each Grantor, its
successors and assigns and (c) inure, together with the rights and remedies of the Collateral
Agent hereunder, to the benefit of the Secured Parties and their respective successors,
transferees and assigns. Without limiting the generality of the foregoing clause (c), any Lender
may assign or otherwise transfer all or any portion of its rights and obligations under the Credit
Agreement (including, without limitation, all or any portion of the Loans owing to it and the Note
or Notes, if any, held by it) to any other Person, and such other Person shall thereupon become
vested with all the benefits in respect thereof granted to such Lender herein or otherwise, in
each case as provided in Section 11.05 of the Credit Agreement.

-24-

 

          Section 21. Release; Termination. (a) Upon any sale, lease, transfer or other
disposition of any item of Collateral of any Grantor permitted by, and in accordance with, the
terms of the Loan Documents, or upon the effectiveness of any consent to the release of the
security interest granted hereby in any Collateral pursuant to Section 11.01 of the Credit
Agreement, or upon the release of any Grantor from its obligations under the applicable Guaranty,
if any, in accordance with the terms of the Loan Documents, the Collateral Agent will, at such
Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence the release of such item of Collateral from the assignment and
security interest granted hereby; provided, however, that (i) at the time of such request and such
release no Default shall have occurred and be continuing and (ii) such Grantor shall have
delivered to the Collateral Agent, at least ten Business Days prior to the date of the proposed
release (or such shorter period as may be reasonably acceptable to the Collateral Agent), a
written request for release describing the item of Collateral and the terms of the sale, lease,
transfer or other disposition in reasonable detail, including, without limitation, the price
thereof and any expenses in connection therewith, together with a form of release for execution by
the Collateral Agent and a certificate of such Grantor to the effect that the transaction is in
compliance with the Loan Documents and as to such other matters as the Collateral Agent may
request and (iii) the proceeds of any such sale, lease, transfer or other disposition required to
be applied, or any payment to be made in connection therewith, in accordance with Section 2.05 of
the Credit Agreement shall, to the extent so required, be paid or made to, or in accordance with
the instructions of, the Collateral Agent when and as required under Section 2.05 of the Credit
Agreement.

          (b) Upon the occurrence of the Release Date, the pledge and security interest granted hereby
shall terminate and all rights to the Collateral shall revert to the applicable Grantor. Upon any
such termination, the Collateral Agent will, at the applicable Grantor’s expense, execute and
deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such
termination.

          Section 22. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Delivery of an executed counterpart of
a signature page to this Agreement, or of any amendment or waiver of any provision of this
Agreement or of any Security Agreement Supplement, by telecopier or in “pdf” or similar format by
electronic mail, shall be effective as delivery of an original executed counterpart thereof.

          Section 23. The Mortgages. In the event that any of the Collateral hereunder is also
subject to a valid and enforceable Lien under the terms of any Mortgage and the terms of such
Mortgage are inconsistent with the terms of this Agreement, then with respect to such Collateral,
the terms of such Mortgage shall be controlling in the case of fixtures and real estate leases,
letting and licenses of, and contracts and agreements relating to the lease of, real property, and
the terms of this Agreement shall be controlling in the case of all other Collateral.

          Section 24. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

          Section 25. Post-Closing Requirement. Notwithstanding anything to the contrary
contained in this Agreement or the other Loan Documents:

          (a) within 30 days after the Closing Date (or such longer period as may be agreed to by the
Collateral Agent in its reasonable discretion), the Collateral Agent shall have received copies of
insurance certificates evidencing the insurance required to be maintained by the Borrower and the
Restricted Subsidiaries pursuant to Section 6.07 of the Credit Agreement, each of which shall be
endorsed or otherwise amended to include a “standard” or “New York” lender’s additional loss
payable or

- 25 -

 

additional mortgagee endorsement (as applicable) and shall name the Collateral Agent, as
additional insured, in form and substance reasonably satisfactory to the Administrative Agent; and

          (b) within 30 days after the Closing Date (or such longer period as may be agreed to by the
Collateral Agent in its reasonable discretion), the Grantors shall have filed all appropriate
recordations of release of previous security interests in each Grantor’s Intellectual Property
filed in connection with the Senior Secured Notes with the United States Patent and Trademark
Office or the United States Copyright Office (as the case may be), and shall provide evidence of
such filings to the Collateral Agent.

          Section 26. Intercreditor Agreement Prevails. Reference is made to the Lien
Subordination and Intercreditor Agreement dated as of April 26, 2011, among Bank of America, N.A.,
as collateral agent thereunder for the ABL Secured Parties (as defined in the Intercreditor
Agreement) referred to therein; UBS AG, Stamford Branch, as collateral agent for the Term Loan
Secured Parties (as defined in the Intercreditor Agreement); Nortek, Inc.; and the other
subsidiaries of Nortek, Inc. named therein (the “Intercreditor Agreement”). Notwithstanding any
other provision contained herein, this Agreement, the Liens created hereby and the rights,
remedies, duties and obligations provided for herein are subject in all respects to the provisions
of the Intercreditor Agreement. In the event of any conflict or inconsistency between the
provisions of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor
Agreement shall control.

[Remainder of Page Intentionally Blank]

- 26 -

 

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

	 	 	 	 	 
	 	NORTEK, INC.

 	 
	 	By:  	/s/ Edward J. Cooney
 	 
	 	 	Name:  	Edward J. Cooney 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

[Signature Page to Security Agreement]

 

 

AIGIS MECHTRONICS, INC.

BROAN-MEXICO HOLDINGS, INC.

BROAN-NUTONE LLC

BROAN-NUTONE STORAGE SOLUTIONS LP

CES GROUP, LLC

CES INTERNATIONAL LTD.

CLPK, LLC

ELAN HOME SYSTEMS, L.L.C.

ERGOTRON, INC.

GATES THAT OPEN, LLC

GEFEN, LLC

GOVERNAIR LLC

HUNTAIR, INC.

HUNTAIR MIDDLE EAST HOLDINGS, INC.

LINEAR LLC

LITE TOUCH, INC.

MAGENTA RESEARCH LTD.

MAMMOTH, INC.

NILES AUDIO CORPORATION

NORDYNE LLC

NORDYNE INTERNATIONAL, INC.

NORTEK INTERNATIONAL, INC.

NUTONE LLC

OMNIMOUNT SYSTEMS, INC.

OPERATOR SPECIALTY COMPANY, INC.

PACIFIC ZEPHYR RANGE HOOD INC.

PANAMAX LLC

RANGAIRE GP, INC.

RANGAIRE LP, INC.

SECURE WIRELESS, INC.

SPEAKERCRAFT, LLC

TEMTROL, LLC

THE AVC GROUP, LLC

XANTECH LLC

ZEPHYR VENTILATION, LLC

	 	 	 	 	 
	 	By:  	                     /s/ Edward J. Cooney
 	 
	 	 	Name:  	Edward J. Cooney 	 
	 	 	Title:  	Vice President and Treasurer

(of entity listed or as an officer of the managing
member, sole member or general partner) 	 
	 

[Signature Page to Security Agreement]

 

 

	 	 	 	 	 
	 	UBS AG, STAMFORD BRANCH, 

   as Collateral Agent

 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 

Banking Products Services, US 	 

	 	 	 	 	 
	 	By:  	                             /s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director 

Banking Products Services, US 	 
	 

[Signature Page to Security Agreement]

 

 

Exhibit A to the

Security Agreement

FORM OF SECURITY AGREEMENT SUPPLEMENT

[Date of Security Agreement Supplement]

UBS AG, Stamford Branch, as the Collateral Agent for

the Secured Parties referred to in the Credit

Agreement referred to below

                    

                    

Attn:                     

[Name of Borrower]

Ladies and Gentlemen:

          Reference is made to (i) the Credit Agreement, dated as of [___] (as
amended, restated, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among Nortek, Inc., a Delaware corporation (the “Borrower”), the other Loan
Parties party thereto, the Lenders party thereto, and UBS AG, Stamford Branch, as Collateral Agent
for the Lenders (“Collateral Agent”), and (ii) the Security Agreement, dated as of [ ] (as
amended, restated, amended and restated, supplemented or otherwise modified from time to time, the
“Security Agreement”), made by the Grantors from time to time party thereto in favor of the
Collateral Agent for the Secured Parties. Terms defined in the Security Agreement and not
otherwise defined herein are used herein as defined in the Security Agreement.

          SECTION 1. Grant of Security. Subject to Section 1 of the Security Agreement, the
undersigned hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties,
a security interest in all of its right, title and interest in and to the Collateral, whether now
owned or hereafter acquired by the undersigned, wherever located and whether now or hereafter
existing or arising.

          SECTION 2. Security for Obligations. The grant of a security interest in, the
Collateral by the undersigned under this Security Agreement Supplement and the Security Agreement
secures the payment of all Secured Obligations of the undersigned now or hereafter existing under
or in respect of the Loan Documents. Without limiting the generality of the foregoing, this
Security Agreement Supplement and the Security Agreement secures the payment of all amounts that
constitute part of the Secured Obligations and that would be owed by the undersigned to any Secured
Party under the Loan Documents but for the fact that such Secured Obligations are unenforceable or
not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving
a Loan Party.

          SECTION 3. Perfection Certificate. The undersigned has delivered concurrently
herewith a supplement to the Perfection Certificate attaching supplemental schedules 1 through 18
to the Perfection Certificate. Such supplemental Perfection Certificate has been duly prepared,
completed and executed by the undersigned and the information set forth therein, including the
exact legal name of the undersigned, is true, accurate and complete.

 

 

          SECTION 3. Representations and Warranties. The undersigned hereby makes each
representation and warranty set forth in Section 8 of the Security Agreement with respect to
itself and the Collateral granted by it.

          SECTION 4. Obligations Under the Security Agreement. The undersigned hereby agrees,
as of the date first above written, to be bound as a Grantor by all of the terms and provisions of
the Security Agreement to the same extent as each of the other Grantors. The undersigned further
agrees, as of the date first above written, that each reference in the Security Agreement to an
“Additional Grantor” or a “Grantor” shall also mean and be a reference to the undersigned, that
each reference to the “Collateral” or any part thereof shall also mean and be a reference to the
undersigned’s Collateral or part thereof, as the case may be, and that each reference in the
Security Agreement to a Schedule shall also mean and be a reference to the schedules attached
hereto.

          SECTION 5. Governing Law. This Security Agreement Supplement shall be governed by,
and construed in accordance with, the laws of the State of New York.

          SECTION 6. Intercreditor Agreement Prevails. Reference is made to the Lien
Subordination and Intercreditor Agreement dated as of [___], among Bank of
America, N.A., as collateral agent thereunder for the ABL Secured Parties (as defined in the
Intercreditor Agreement) referred to therein; UBS AG, Stamford Branch, as collateral agent for the
Term Loan Secured Parties (as defined in the Intercreditor Agreement); Nortek, Inc.; and the other
subsidiaries of Nortek, Inc. named therein (the “Intercreditor Agreement”). Notwithstanding any
other provision contained herein, this Agreement, the Liens created hereby and the rights,
remedies, duties and obligations provided for herein are subject in all respects to the provisions
of the Intercreditor Agreement. In the event of any conflict or inconsistency between the
provisions of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor
Agreement shall control.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ADDITIONAL GRANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

2

 

Exhibit B to the

Security Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT

          This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “IP Security
Agreement”) dated [___], is made by the Persons listed on the signature pages hereof
(collectively, the “Grantors”) in favor of UBS AG, Stamford Branch, as Collateral Agent (the
“Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred to
below).

          WHEREAS Nortek, Inc., a Delaware corporation (the “Borrower”) and the other Loan
Parties party thereto have entered into a Credit Agreement dated as of [___] (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), with UBS AG, Stamford Branch, as Collateral Agent, and the Lenders party thereto.
Terms defined in the Credit Agreement and not otherwise defined herein are used herein as defined
in the Credit Agreement.

          WHEREAS, as a condition precedent to the making of Loans by the Lenders under the Credit
Agreement, and the entry into agreements in connection with Hedging Obligations from time to time
by any counterparties thereto, each Grantor has executed and delivered that certain Security
Agreement dated [___] made by the Grantors to the Collateral Agent (as amended, restated,
amended and restated, supplemented or otherwise modified from time to time, the “Security
Agreement”).

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

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

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

	 	(a)	 	the patents and patent applications set forth in Schedule A hereto (the “Patents”);
	 
	 	(b)	 	the trademark and service mark registrations and applications set forth in
Schedule B hereto (provided that no security interest shall be granted in United States
intent-to-use trademark applications to the extent that, and solely during the period
in which, the grant of a security interest therein would impair the validity or
enforceability of such intent-to-use trademark applications under applicable federal
law), together with the goodwill symbolized thereby (the “Trademarks”);
	 
	 	(c)	 	all copyrights, whether registered or unregistered, now owned or hereafter
acquired by such Grantor, including, without limitation, the copyright registrations
and applications and exclusive copyright licenses set forth in Schedule C hereto (the
“Copyrights”);

 

 

	 	(d)	 	all reissues, divisions, continuations, continuations-in-part, extensions, renewals
and reexaminations of any of the foregoing, all rights in the foregoing provided by
international treaties or conventions, all rights corresponding thereto throughout the
world and all other rights of any kind whatsoever of such Grantor accruing thereunder or
pertaining thereto;
	 
	 	(e)	 	any and all claims for damages and injunctive relief for past, present and
future infringement, dilution, misappropriation, violation, misuse or breach with
respect to any of the foregoing, with the right, but not the obligation, to sue for and
collect, or otherwise recover, such damages; and
	 
	 	(f)	 	any and all proceeds of, collateral for, income, royalties and other payments
now or hereafter due and payable with respect to, and supporting obligations relating
to, any and all of the Collateral of or arising from any of the foregoing.

          SECTION 2. Security for Obligations. The grant of a security interest in, the
Collateral by each Grantor under this IP Security Agreement secures the payment of all Secured
Obligations of such Grantor now or hereafter existing under or in respect of the Loan Documents.
Without limiting the generality of the foregoing, this IP Security Agreement secures, as to each
Grantor, the payment of all amounts that constitute part of the Secured Obligations and that would
be owed by such Grantor to any Secured Party under the Loan Documents but for the fact that such
Secured Obligations are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving a Loan Party.

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

          SECTION 4. Execution in Counterparts. This IP Security Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be an original and
all of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this IP Security Agreement or of any supplement to this IP
Security Agreement, by telecopier or in “pdf” or similar format by electronic mail, shall be
effective as delivery of an original executed counterpart thereof.

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

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

          SECTION 7. Intercreditor Agreement Prevails. Reference is made to the Lien
Subordination and Intercreditor Agreement dated as of [___], among Bank of
America, N.A., as collateral agent thereunder for the ABL Secured Parties (as defined in the
Intercreditor Agreement) referred to therein; UBS AG, Stamford Branch, as collateral agent for the
Term Loan Secured Parties (as defined in the Intercreditor Agreement); Nortek, Inc.; and the other
subsidiaries of Nortek, Inc. named therein (the “Intercreditor Agreement”). Notwithstanding any
other provision contained herein, this Agreement, the Liens created hereby and the rights,
remedies, duties and obligations provided for herein are subject in all respects to the provisions
of

2

 

the Intercreditor Agreement. In the event of any conflict or inconsistency between the provisions
of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor Agreement
shall control.

[Remainder of Page Intentionally Blank]

3

 

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

	 	 	 	 	 
	 	[NAME OF BORROWER]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

4

 

Exhibit C to the

Security Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT

          This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT (this
“IP Security Agreement Supplement”) dated ____, 200_, is made by the Person listed on the
signature page hereof (the “Grantor”) in favor of UBS AG, Stamford Branch, as administrative agent
(the “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred to
below).

          WHEREAS Nortek, Inc., a Delaware corporation (the “Borrower”) and the other Loan
Parties party thereto have entered into a Credit Agreement dated as of [___] (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), with UBS AG, Stamford Branch, as Collateral Agent, and the Lenders party thereto. Terms
defined in the Credit Agreement and not otherwise defined herein are used herein as defined in the
Credit Agreement.

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

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

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

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

	 	(a)	 	the patents and patent applications set forth in Schedule A hereto (the “Patents”);
	 
	 	(b)	 	the trademark and service mark registrations and applications set forth in
Schedule B hereto (provided that no security interest shall be granted in United States
intent-to-use trademark applications to the extent that, and solely during the period
in which, the grant of a security interest therein would impair the validity or
enforceability of such intent-to-use trademark applications under applicable federal
law), together with the goodwill symbolized thereby (the “Trademarks”);
	 
	 	(c)	 	all copyrights, whether registered or unregistered, now owned or hereafter
acquired by such Grantor, including, without limitation, the copyright registrations
and applications and exclusive copyright licenses set forth in Schedule C hereto (the
“Copyrights”);

 

 

	 	(d)	 	all reissues, divisions, continuations, continuations-in-part, extensions, renewals
and reexaminations of any of the foregoing, all rights in the foregoing provided by
international treaties or conventions, all rights corresponding thereto throughout the
world and all other rights of any kind whatsoever of such Grantor accruing thereunder or
pertaining thereto;
	 
	 	(e)	 	any and all claims for damages and injunctive relief for past, present and
future infringement, dilution, misappropriation, violation, misuse or breach with
respect to any of the foregoing, with the right, but not the obligation, to sue for and
collect, or otherwise recover, such damages; and
	 
	 	(f)	 	any and all proceeds of, collateral for, income, royalties and other payments
now or hereafter due and payable with respect to, and supporting obligations relating
to, any and all of the Collateral of or arising from any of the foregoing.

          SECTION 2. Security for Obligations. The grant of a security interest in the
Additional Collateral by the Grantor under this IP Security Agreement Supplement secures the
payment of all Secured Obligations of the Grantor now or hereafter existing under or in respect of
the Loan Documents.

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

          SECTION 4. Grants.Rights and Remedies. This IP Security Agreement Supplement
has been entered into in conjunction with the provisions of the Security Agreement. The Grantor
does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the
rights and remedies of, the Collateral Agent with respect to the Additional Collateral are more
fully set forth in the Security Agreement, the terms and provisions of which are incorporated
herein by reference as if fully set forth herein.

          SECTION 5. Governing Law. This IP Security Agreement Supplement shall be governed by,
and construed in accordance with, the laws of the State of New York.

          SECTION 6. Execution in Counterparts. This IP Security Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be an original and
all of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this IP Security Agreement or of any supplement to this IP
Security Agreement, by telecopier or in “pdf” or similar format by electronic mail, shall be
effective as delivery of an original executed counterpart thereof.

          SECTION 7. Intercreditor Agreement Prevails. Reference is made to the Lien
Subordination and Intercreditor Agreement dated as of [___], among Bank of
America, N.A., as collateral agent thereunder for the ABL Secured Parties (as defined in the
Intercreditor Agreement) referred to therein; UBS AG, Stamford Branch, as collateral agent for the
Term Loan Secured Parties (as defined in the Intercreditor Agreement); Nortek, Inc.; and the other
subsidiaries of Nortek, Inc. named therein (the “Intercreditor Agreement”). Notwithstanding any
other provision contained herein, this Agreement, the Liens created hereby and the rights,
remedies, duties and obligations provided for herein are subject in all respects to the provisions
of the Intercreditor Agreement. In the event of any conflict or inconsistency between the
provisions of this Agreement and the Intercreditor Agreement, the provisions of the Intercreditor
Agreement shall control.

 

 

[Remainder of Page Intentionally Blank]

 

 

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

	 	 	 	 	 	 	 

	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:exv10w30

Exhibit 10.30

GUARANTY

Dated as of April 26, 2011

From

THE GUARANTORS NAMED HEREIN

and

THE ADDITIONAL GUARANTORS REFERRED TO HEREIN

as Guarantors

in favor of

THE SECURED PARTIES REFERRED TO IN

THE CREDIT AGREEMENT REFERRED TO HEREIN

 

 

T A B L E   O F   C O N T E N T S

	 	 	 	 	 
	Section	 	Page
	Section 1. Guaranty; Limitation of Liability
	 	 	1	 
	 
	Section 2. Guaranty Absolute
	 	 	2	 
	 
	Section 3. Waivers and Acknowledgments
	 	 	3	 
	 
	Section 4. Subrogation
	 	 	3	 
	 
	Section 5. Payments Free and Clear of Taxes, Etc
	 	 	4	 
	 
	Section 6. Representations and Warranties
	 	 	4	 
	 
	Section 7. Covenants
	 	 	4	 
	 
	Section 8. Amendments, Guaranty Supplements, Etc
	 	 	5	 
	 
	Section 9. Notices, Etc
	 	 	5	 
	 
	Section 10. No Waiver; Remedies
	 	 	5	 
	 
	Section 11. Right of Set-off
	 	 	5	 
	 
	Section 12. Indemnification
	 	 	6	 
	 
	Section 13. Subordination
	 	 	6	 
	 
	Section 14. Continuing Guaranty; Assignments under the Credit Agreement
	 	 	7	 
	 
	Section 15. Execution in Counterparts
	 	 	7	 
	 
	Section 16. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc
	 	 	7	 
	 
	 	 	 	 
	 
	Exhibit A — Guaranty Supplement
	 	 	 	 

 i 

 

 

GUARANTY

          GUARANTY, dated as of April 26, 2011, made by Nortek, Inc. (the “Borrower”), the Persons
listed on the signature pages hereof and the Additional Guarantors (as defined in Section 8(b))
(such Persons so listed and the Additional Guarantors being, collectively, the “Guarantors” and,
individually, each a “Guarantor”) in favor of the Secured Parties (as defined in the Credit
Agreement referred to below).

          PRELIMINARY STATEMENT. The Borrower and the other Loan Parties party thereto are parties to a
Credit Agreement, dated as of the date hereof (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”; the capitalized terms
defined therein and not otherwise defined herein being used herein as therein defined), with
certain Lenders party thereto, and UBS AG, Stamford Branch, as Administrative Agent and Collateral
Agent for such Lenders. Each Guarantor may receive, directly or indirectly, a portion of the
proceeds of the Loans under the Credit Agreement and will derive substantial direct and indirect
benefits from the transactions contemplated by the Credit Agreement. It is a condition precedent
to the making of Loans by Lenders under the Credit Agreement that each Guarantor shall have
executed and delivered this Guaranty.

          NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make
Loans under the Credit Agreement, each Guarantor, jointly and severally with each other Guarantor,
hereby agrees as follows:

          Section 1. Guaranty; Limitation of Liability. (a) Each Guarantor hereby absolutely,
unconditionally and irrevocably guarantees the punctual payment when due, whether at scheduled
maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all
Obligations of each other Loan Party now or hereafter existing under or in respect of the Loan
Documents (including, without limitation, any extensions, modifications, substitutions, amendments
or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or
contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes of
action, costs, expenses or otherwise (such Obligations being the “Guaranteed Obligations”), and
agrees to pay any and all documented out-of-pocket expenses (including, without limitation, fees
and expenses of counsel) incurred by the Administrative Agent or any other Secured Party in
enforcing any rights under this Guaranty or any other Loan Document. Without limiting the
generality of the foregoing, each Guarantor’s liability shall extend to all amounts that constitute
part of the Guaranteed Obligations and would be owed by any other Loan Party to any Secured Party
under or in respect of the Loan Documents but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such
other Loan Party.

          (b) Each Guarantor, and by its acceptance of this Guaranty, the Administrative Agent and each
other Secured Party, hereby confirms that it is the intention of all such Persons that this
Guaranty and the Obligations of each Guarantor hereunder not constitute a fraudulent transfer or
conveyance for purposes of Debtor Relief Laws, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to
this Guaranty and the Obligations of each Guarantor hereunder. To effectuate the foregoing
intention, the Administrative Agent, the other Secured Parties and the Guarantors hereby
irrevocably agree that the Obligations of each Guarantor under this Guaranty at any time shall be
limited to the maximum amount as will result in the Obligations of such Guarantor under this
Guaranty not constituting a fraudulent transfer or conveyance.

          (c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment
shall be required to be made to any Secured Party under this Guaranty or any
other guaranty, such Guarantor will contribute, to the maximum extent permitted by law, such
amounts to each other

 

 

Guarantor and each other guarantor so as to maximize the aggregate amount paid to the Secured
Parties under or in respect of the Loan Documents.

          Section 2. Guaranty Absolute. Each Guarantor guarantees that the Guaranteed Obligations will
be paid strictly in accordance with the terms of the Loan Documents, regardless of any Law now or
hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Secured
Party with respect thereto. The Obligations of each Guarantor under or in respect of this Guaranty
are independent of the Guaranteed Obligations or any other Obligations of any other Loan Party
under or in respect of the Loan Documents, and a separate action or actions may be brought and
prosecuted against each Guarantor to enforce this Guaranty, irrespective of whether any action is
brought against the Borrower or any other Loan Party or whether the Borrower or any other Loan
Party is joined in any such action or actions. The liability of each Guarantor under this Guaranty
shall be irrevocable, absolute and unconditional irrespective of, and each Guarantor hereby
irrevocably waives any defenses (other than indefeasible payment in full of the Guaranteed
Obligations) it may now have or hereafter acquire in any way relating to, any or all of the
following:

     (a) any lack of validity or enforceability of any Loan Document or any agreement or instrument
relating thereto;

     (b) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Guaranteed Obligations or any other Obligations of any other Loan Party under or in respect
of the Loan Documents, or any other amendment or waiver of or any consent to departure from any
Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting
from the extension of additional credit to any Loan Party or any of its Subsidiaries or otherwise;

     (c) any taking, exchange, release or non-perfection of any Collateral or any other collateral,
or any taking, release or amendment or waiver of, or consent to departure from, any other guaranty,
for all or any of the Guaranteed Obligations;

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

     (e) any change, restructuring or termination of the corporate structure or existence of any
Loan Party or any of its Subsidiaries;

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

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

     (h) any other circumstance (including, without limitation, any statute of limitations) or any
existence of or reliance on any representation by any Secured Party that might otherwise

2

 

     constitute a defense available to, or a discharge of, any Loan Party or any other guarantor or surety.

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

          Section 3. Waivers and Acknowledgments. (a) Each Guarantor hereby unconditionally and
irrevocably waives, to the fullest extent permitted by law, promptness, diligence, notice of
acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration,
protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this
Guaranty and any requirement that any Secured Party protect, secure, perfect or insure any Lien or
any property subject thereto or exhaust any right or take any action against any Loan Party or any
other Person or any Collateral.

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

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

          (d) Each Guarantor acknowledges that the Administrative Agent may, in accordance with the
terms of the Loan Documents, without notice to or demand upon such Guarantor and without affecting
the liability of such Guarantor under this Guaranty, foreclose under any mortgage by nonjudicial
sale, and each Guarantor hereby waives, to the fullest extent permitted by law, any defense to the
recovery by the Administrative Agent and the other Secured Parties against such Guarantor of any
deficiency after such nonjudicial sale and any defense or benefits that may be afforded by
applicable Law.

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

          (f) Each Guarantor acknowledges that it will receive substantial direct and indirect benefits
from the financing arrangements contemplated by the Loan Documents and that the waivers set forth
in Section 2 and this Section 3 are knowingly made in contemplation of such benefits.

          Section 4. Subrogation. Each Guarantor hereby unconditionally and irrevocably agrees not to
exercise any rights that it may now have or hereafter acquire against the Borrower, any other Loan
Party or any other insider guarantor that arise from the existence, payment, performance or
enforcement of such Guarantor’s Obligations under or in respect of this Guaranty or any other Loan
Document, including, without limitation, any right of subrogation, reimbursement, exoneration,
contribution or indemnification and any right to participate in any claim or remedy of any Secured
Party against the Borrower, any

3

 

other Loan Party or any other insider guarantor or any Collateral, whether or not such claim,
remedy or right arises in equity or under contract, statute or common law, including, without
limitation, the right to take or receive from the Borrower, any other Loan Party or any other
insider guarantor, directly or indirectly, in cash or other property or by set-off or in any other
manner, payment or security on account of such claim, remedy or right, unless and until all
Obligations shall have been paid in full (other than (A) contingent indemnification obligations as
to which no claim has been asserted and (B) Hedging Obligations as to which arrangements
satisfactory to the applicable Hedge Bank have been made). If any amount shall be paid to any
Guarantor in violation of the immediately preceding sentence at any time prior to payment in full
of all Obligations (other than (A) contingent indemnification obligations as to which no claim has
been asserted and (B) Hedging Obligations as to which arrangements satisfactory to the applicable
Hedge Bank have been made), such amount shall be received and held in trust for the benefit of the
Secured Parties, shall be segregated from other property and funds of such Guarantor and shall
forthwith be paid or delivered to the Administrative Agent in the same form as so received (with
any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations
and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with
the terms of the Loan Documents, or to be held as Collateral for any Guaranteed Obligations or
other amounts payable under this Guaranty thereafter arising. If (i) any Guarantor shall make
payment to any Secured Party of all or any part of the Guaranteed Obligations, and (ii) all
Obligations shall have been paid in full (other than (A) contingent indemnification obligations as
to which no claim has been asserted and (B) Hedging Obligations as to which arrangements
satisfactory to the applicable Hedge Bank have been made), the Secured Parties will, at such
Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents,
without recourse and without representation or warranty, necessary to evidence the transfer by
subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such
payment made by such Guarantor pursuant to this Guaranty.

          Section 5. Payments Free and Clear of Taxes, Etc. Any and all payments made by any Guarantor
under or in respect of this Guaranty or any other Loan Document shall be made in accordance with
Sections 2.12, 3.01 and 3.04(a)(ii) of the Credit Agreement, and such Guarantor shall make such
payments free and clear of and without deduction or withholding for any Taxes and shall pay or
indemnify each Secured Party for Indemnified Taxes and Other Taxes, in each case on the same terms
and to the same extent as if such Guarantor were a borrower under the Credit Agreement.

          Section 6. Representations and Warranties. Each Guarantor hereby makes each representation
and warranty made in the Loan Documents by the Borrower with respect to such Guarantor and each
Guarantor hereby further represents and warrants as follows:

     (a) There are no conditions precedent to the effectiveness of this Guaranty that have not been
satisfied or waived.

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

          Section 7. Covenants. Each Guarantor covenants and agrees that, until (i) all Obligations
shall have been paid in full (other than (A) contingent indemnification obligations as to which no
claim has been asserted and (B) Hedging Obligations as to which arrangements satisfactory to the
applicable

4

 

Hedge Bank have been made), such Guarantor will perform and observe, and cause each of its
Subsidiaries to perform and observe, all of the terms, covenants and agreements set forth in the
Loan Documents on its or their part to be performed or observed or that the Borrower has agreed to
cause such Guarantor or such Subsidiaries to perform or observe.

          Section 8. Amendments, Guaranty Supplements, Etc. (a) No amendment or waiver of any
provision of this Guaranty and no consent to any departure by any Guarantor therefrom shall in any
event be effective unless the same shall be in writing executed in accordance with and subject to
the terms and conditions of Section 11.01 of the Credit Agreement, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given.

          (b) Upon the execution and delivery by any Person of a guaranty supplement in substantially
the form of Exhibit A hereto (each, a “Guaranty Supplement”), (i) such Person shall be referred to
as an “Additional Guarantor” and shall become and be a Guarantor hereunder, and each reference in
this Guaranty to a “Guarantor” shall also mean and be a reference to such Additional Guarantor, and
each reference in any other Loan Document to a “Guarantor” shall also mean and be a reference to
such Additional Guarantor, and (ii) each reference herein to “this Guaranty”, “hereunder”, “hereof”
or words of like import referring to this Guaranty, and each reference in any other Loan Document
to the “Guaranty”, “thereunder”, “thereof” or words of like import referring to this Guaranty,
shall mean and be a reference to this Guaranty as supplemented by such Guaranty Supplement.

          Section 9. Notices, Etc. All notices and other communications provided for hereunder shall
be in writing (including telegraphic, telecopy or telex communication) and mailed, telegraphed,
tele-copied, telexed or delivered to the appropriate recipient, if to any Guarantor, addressed to
it in care of the Borrower at the Borrower’s address specified in Section 11.02 of the Credit
Agreement, if to the Administrative Agent or any Lender, at its address specified in Section 11.02
of the Credit Agreement, or, as to any party, at such other address as shall be designated by such
party in a written notice to each other party. All such notices and other communications shall,
when mailed, telegraphed, telecopied or telexed, be effective when deposited in the mails,
delivered to the telegraph company, transmitted by telecopier or confirmed by telex answerback,
respectively. Delivery by telecopier, or in “pdf” or similar format by electronic mail of an
executed counterpart of a signature page to any amendment or waiver of any provision of this
Guaranty or of any Guaranty Supplement to be executed and delivered hereunder shall be effective as
delivery of an original executed counterpart thereof.

          Section 10. No Waiver; Remedies. No failure on the part of any Secured Party to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further exercise thereof or
the exercise of any other right. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

          Section 11. Right of Set-off. Upon the occurrence and during the continuance of any Event of
Default, each Lender and each of their respective Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other
obligations at any time owing by such Lender, or such Affiliate to or for the credit or the account
of any Guarantor against any and all of the Obligations of such Guarantor now or hereafter existing
under the Loan Documents, irrespective of whether such Lender, or such Affiliate shall have made
any demand under this Guaranty or any other Loan Document and although such Obligations may be
unmatured. Each Agent and each Lender agrees promptly to notify such Guarantor after any such
set-off and application; provided, however, that the failure to give such notice shall not affect
the validity of such set-off and application. The rights of each

5

 

Agent and each Lender and their respective Affiliates under this Section are in addition to other
rights and remedies (including, without limitation, other rights of set-off) that such Agent, such
Lender and their respective Affiliates may have.

          Section 12. Indemnification. (a) Without limitation on any other Obligations of any
Guarantor or remedies of the Secured Parties under this Guaranty, each Guarantor shall, to the
fullest extent permitted by law, jointly and severally indemnify and hold harmless each Secured
Party and their respective Related Parties (each, an “Indemnified Party”) from any and all claims,
damages, losses, liabilities and reasonably related expenses (including, without limitation,
reasonable and documented fees and out-of-pocket expenses of counsel) that may be incurred by or
asserted against any Indemnified Party in connection with or as a result of any failure of any
Guaranteed Obligations to be the legal, valid and binding obligations of any Loan Party enforceable
against such Loan Party in accordance with their terms; provided that such indemnity shall not, as
to any Indemnified Party, be available to the extent that such losses, claims, damages, liabilities
or related expenses (x) are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the bad faith, gross negligence or willful misconduct
of such Indemnified Party or (y) result from a claim brought by such Guarantor against an
Indemnified Party for the material breach of such Indemnified Party’s obligations hereunder or
under any Loan Document, if such Guarantor has obtained a final and nonappealable judgment in its
favor on such claim as determined by a court of competent jurisdiction.

          (b) Each Guarantor hereby also agrees that none of the Indemnified Parties shall have any
liability (whether direct or indirect, in contract, tort or otherwise) to any of the Guarantors or
any of their respective Related Parties, and each Guarantor hereby agrees not to assert any claim
against any Indemnified Party on any theory of liability, for special, indirect, consequential or
punitive damages, in each case arising out of or otherwise relating to the Credit Agreement, the
actual or proposed use of the proceeds of the Loans, the Loan Documents or any of the transactions
contemplated by the Loan Documents.

          (c) Without prejudice to the survival of any of the other agreements of any Guarantor under
this Guaranty or any of the other Loan Documents, the agreements and obligations of each Guarantor
contained in Section 1(a) (with respect to enforcement expenses),
the last sentence of Section 2, Section 5 and this Section 12 shall survive the payment in
full of the Guaranteed Obligations and all of the other amounts payable under this Guaranty.

          Section 13. Subordination. Each Guarantor hereby subordinates any and all debts, liabilities
and other Obligations owed to such Guarantor by each other Loan Party (the “Subordinated
Obligations”) to the Guaranteed Obligations to the extent and in the manner hereinafter set forth
in this Section 13:

     (a) Prohibited Payments, Etc. Except during the continuance of an Event of Default under
Sections 8.01(a), (f) and (g) of the Credit Agreement, each Guarantor may receive regularly
scheduled payments from any other Loan Party on account of the Subordinated Obligations. After the
occurrence and during the continuance of any Event of Default under Sections 8.01(a), (f) and (g)
of the Credit Agreement, however, unless the Administrative Agent otherwise agrees, no Guarantor
shall demand, accept or take any action to collect any payment on account of the Subordinated
Obligations.

     (b) Prior Payment of Guaranteed Obligations. In any proceeding under any Debtor Relief Law
relating to any other Loan Party, each Guarantor agrees that the Secured Parties shall be entitled
to receive payment in full in cash of all Guaranteed Obligations (including all interest

6

 

and expenses accruing after the commencement of a proceeding under any Debtor Relief Law, whether
or not constituting an allowed claim in such proceeding (“Post Petition Interest”)) before such
Guarantor receives payment of any Subordinated Obligations.

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

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

          Section 14. Continuing Guaranty; Assignments under the Credit Agreement. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the payment in full of all
Obligations, (b) be binding upon the Guarantor, its successors and assigns and (c) inure to the
benefit of and be enforceable by the Secured Parties and their successors, transferees and assigns.
Without limiting the generality of clause (c) of the immediately preceding sentence, any Secured
Party may assign or otherwise transfer all or any portion of its rights and obligations under the
Credit Agreement (including, without limitation, all or any portion of the Loans owing to it) to
any other Person, and such other Person shall thereupon become vested with all the benefits in
respect thereof granted to such Secured Party herein or
otherwise, in each case as and to the extent provided in Section 11.05 of the Credit
Agreement. No Guarantor shall have the right to assign its rights hereunder or any interest herein
without the prior written consent of the Secured Parties.

          Section 15. Execution in Counterparts. This Guaranty and each amendment, waiver and consent
with respect hereto may be executed in any number of counterparts and by different parties thereto
in separate counterparts, each of which when so executed shall be deemed to be an original and all
of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Guaranty by telecopier or in “pdf” or similar format by
electronic mail shall be effective as delivery of an original executed counterpart of this
Guaranty.

          Section 16. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. (a) This Guaranty shall
be governed by, and construed in accordance with, the law of the State of New York.

          (b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH GUARANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS
OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE
SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS

7

 

GUARANTY OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF
THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING WILL BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT; PROVIDED THAT NOTHING IN THIS GUARANTY
OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY OR ANY OTHER LOAN
DOCUMENT AGAINST EACH GUARANTOR OR THEIR PROPERTIES IN THE COURTS OF ANY JURISDICTION. 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.

          (c) WAIVER OF VENUE. THE BORROWER AND EACH GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS GUARANTY OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

          (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE
MANNER PROVIDED FOR NOTICES IN SECTION 11.02 OF THE CREDIT AGREEMENT. NOTHING IN THIS GUARANTY
WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

          (e) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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 GUARANTY AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

8

 

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

	 	 	 	 	 
	 	NORTEK, INC., as the Borrower

 	 
	 	By:  	/s/ Almon C. Hall
 	 
	 	 	Name:  	Almon C. Hall 	 
	 	 	Title:  	Vice President and Chief Financial Officer 	 
	 

[Signature Page to Guaranty]

 

 

	 	 	 	 	 
	 	GUARANTORS:

AIGIS MECHTRONICS, INC.

BROAN-MEXICO HOLDINGS, INC.

BROAN-NUTONE LLC

BROAN-NUTONE STORAGE SOLUTIONS LP

CES GROUP, LLC

CES INTERNATIONAL LTD.

CLPK, LLC

ELAN HOME SYSTEMS, L.L.C.

ERGOTRON, INC.

GATES THAT OPEN, LLC

GEFEN, LLC

GOVERNAIR LLC

HUNTAIR, INC.

HUNTAIR MIDDLE EAST HOLDINGS, INC.

LINEAR LLC

LITE TOUCH, INC.

MAGENTA RESEARCH LTD.

MAMMOTH, INC.

NILES AUDIO CORPORATION

NORDYNE LLC

NORDYNE INTERNATIONAL, INC.

NORTEK INTERNATIONAL, INC.

NUTONE LLC

OMNIMOUNT SYSTEMS, INC.

OPERATOR SPECIALTY COMPANY, INC.

PACIFIC ZEPHYR RANGE HOOD INC.

PANAMAX LLC

RANGAIRE GP, INC.

RANGAIRE LP, INC.

SECURE WIRELESS, INC.

SPEAKERCRAFT, LLC

TEMTROL, LLC

THE AVC GROUP, LLC

XANTECH LLC

ZEPHYR VENTILATION, LLC

 	 
	 	By:  	/s/ Edward J. Cooney
 	 
	 	 	Name:  	Edward J. Cooney 	 
	 	 	Title:  	Vice President and Treasurer

(of entity listed or as an officer of the 

managing member, sole member or general 

partner) 
	 
	 

[Signature Page to Guaranty]

 

 

	 	 	 	 	 
	 	ACKNOWLEDGED:

UBS AG, STAMFORD BRANCH,

as Administrative Agent

 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director

Banking Products Services, US 	 
	 
	 	 	 
	 	By:  	          /s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director

Banking Products Services, US 	 
	 

[Signature Page to Guaranty]

 

 

Exhibit A

To The

Guaranty

FORM OF GUARANTY SUPPLEMENT

                         ,      

UBS AG, Stamford Branch, as Administrative Agent

[Address of Administrative Agent]

Attention:                     

Credit Agreement, dated as of April 26, 2011, among

Nortek, Inc., a Delaware corporation (the “Borrower”), the other

Loan Parties thereto, the Lenders party to the Credit Agreement,

UBS AG, Stamford Branch, as Administrative Agent and Collateral Agent for the Lenders.

Ladies and Gentlemen:

          Reference is made to the above-captioned Credit Agreement and to the Guaranty referred to
therein (such Guaranty, as in effect on the date hereof and as it may hereafter be amended,
restated, amended and restated, supplemented or otherwise modified from time to time, together with
this Guaranty Supplement, being the “Guaranty”). The capitalized terms defined in the Guaranty or
in the Credit Agreement and not otherwise defined herein are used herein as therein defined.

          Section 1. Guaranty; Limitation of Liability. (a) The undersigned hereby absolutely,
unconditionally and irrevocably guarantees the punctual payment when due, whether at scheduled
maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all
Obligations of each other Loan Party now or hereafter existing under or in respect of the Loan
Documents (including, without limitation, any extensions, modifications, substitutions, amendments
or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or
contingent, and whether for principal, interest, premium, fees, indemnities, contract causes of
action, costs, expenses or otherwise (such Obligations being the “Guaranteed Obligations”), and
agrees to pay any and all documented out-of-pocket expenses (including, without limitation, fees
and expenses of counsel) incurred by the Administrative Agent or any other Secured Party in
enforcing any rights under this Guaranty Supplement, the Guaranty, any Hedging Obligations or any
other Loan Document. Without limiting the generality of the foregoing, the undersigned’s liability
shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by
any other Loan Party to any Secured Party under or in respect of the Loan Documents but for the
fact that they are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving such other Loan Party.

          (b) The undersigned, and by its acceptance of this Guaranty Supplement, the Administrative
Agent and each other Secured Party, hereby confirms that it is the intention of all such Persons
that this Guaranty Supplement, the Guaranty and the Obligations of the undersigned hereunder and
there-under not constitute a fraudulent transfer or conveyance for purposes of Debtor Relief Law,
the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign,
federal or state law to the extent applicable to this Guaranty Supplement, the Guaranty and the
Obligations of the undersigned hereunder and thereunder. To effectuate the foregoing intention,
the Administrative Agent, the other Secured Parties and the undersigned hereby irrevocably agree
that the Obligations of the undersigned under this Guaranty Supplement and the Guaranty at any time
shall be limited to the maximum

A-1 

 

amount as will result in the Obligations of the undersigned under this Guaranty Supplement and the
Guaranty not constituting a fraudulent transfer or conveyance.

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

          Section 2. Obligations Under the Guaranty. The undersigned hereby agrees, as of the date
first above written, to be bound as a Guarantor by all of the terms and conditions of the Guaranty
to the same extent as each of the other Guarantors thereunder. The undersigned further agrees, as
of the date first above written, that each reference in the Guaranty to an “Additional Guarantor”
or a “Guarantor” shall also mean and be a reference to the undersigned, and each reference in any
other Loan Document to a “Guarantor” or a “Loan Party” shall also mean and be a reference to the
undersigned.

          Section 3. Representations and Warranties. The undersigned hereby makes each representation
and warranty set forth in Section 6 of the Guaranty to the same extent as each other Guarantor.

          Section 4. Delivery by Telecopier. Delivery of an executed counterpart of a signature page to
this Guaranty Supplement by telecopier or in “pdf” or similar format by electronic mail shall be
effective as delivery of an original executed counterpart of this Guaranty Supplement.

          Section 5. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc

          (a) This Guaranty Supplement shall be governed by, and construed in accordance with, the law
of the State of New York.

          (b) SUBMISSION TO JURISDICTION. THE UNDERSIGNED HEREBY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND THE UNDERSIGNED HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING WILL BE HEARD AND DETERMINED IN
SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL
COURT; PROVIDED THAT NOTHING IN THIS GUARANTY SUPPLEMNENT OR IN ANY OTHER LOAN DOCUMENT SHALL
AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION
OR PROCEEDING RELATING TO THIS GUARANTY SUPPLEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE
UNDERSIGNED OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. THE UNDERSIGNED 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.

          (c) WAIVER OF VENUE. THE UNDERSIGNED HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY

A-2 

 

APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY SUPPLEMENT OR ANY OTHER LOAN DOCUMENT IN ANY
COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. THE UNDERSIGNED HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

          (d) SERVICE OF PROCESS. THE UNDERSIGNED AND THE ADMINISTRATIVE AGENT EACH IRREVOCABLY
CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02 OF THE CREDIT
AGREEMENT. NOTHING IN THIS GUARANTY SUPPLEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THE CREDIT
AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

          (e) WAIVER OF JURY TRIAL. THE UNDERSIGNED AND THE ADMINISTRATIVE AGENT EACH HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
GUARANTY SUPPLEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). THE UNDERSIGNED CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 	 	[NAME OF ADDITIONAL GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Title:
	 	 

	 	 

A-3 

 

ACKNOWLEDGED:

UBS AG, STAMFORD BRANCH 

as
Administrative Agent

By:                                     

Name:

Title:

A-4

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